1 using the lean “tools” is the easy part! welcome to “sustaining lean”

1

Using the Lean “Tools” is the Easy Part!

Welcome toWelcome to“Sustaining Lean” “Sustaining Lean”

How are We doing with Our Lean How are We doing with Our Lean Implementations? Implementations?

Little or No Progress

SignificantProgress

Achieved World Class

Status2%2%

24%74%74%

Reference: Industry Week Magazine, 20072

How are We doing with Our Lean How are We doing with Our Lean Implementations? Implementations?

Manufacturing & Technology News September 30, 2011 edition reported:70% of reporting organizations reported a < 5% improvement in manufacturing costs as a result of Lean60% of respondents said their previous Lean improvements were not sustainableOnly 17% of respondents reported seeking long-term culture change in their organization

3

How are We doing with Our Lean How are We doing with Our Lean Implementations? (cont’d) Implementations? (cont’d)

Article conclusions: Most companies are getting a poor return on their investment in Lean and Six SigmaCompanies are far too focused on implementing Lean tools and processes rather than on basic execution

4

Issues to Sustaining Lean Issues to Sustaining Lean While often there is a spurt in activities and improvements early in the Lean implementation, this slows down and stalls when the organization begins to realize that:

•Lean is not a "magic pill" or "silver bullet" for the organization's problems

•A Lean implementation requires difficult and company-wide change, especially for top management.

5

Issues to Sustaining Lean Issues to Sustaining Lean • Not everyone thinks Lean applies to them (i.e., sales,

engineering, IT, accounting, human resources, and other key areas).

• Quick bottom line results do not appear, giving rise to questions about a payback from the investment in Lean.

• Top management support for the change necessary to implement Lean is limited or missing.

6

© 1998 - 2011 WCM Associates 7

Four Components of Lean

© 1998 - 2011 WCM Associates 8

Four Components of Lean

Four Components of Lean

Four Components of Lean

Policy Deployment – Mission and Policy Deployment – Mission and Behavioral ExpectationsBehavioral Expectations

Developing the Boundaries Developing the Boundaries for a Lean Culture! for a Lean Culture!

Remember, the Lean Remember, the Lean journey is 80% about people.journey is 80% about people.

11© 2007-2012 WCM Associates

Behavioral Expectation ExamplesBehavioral Expectation Examples

12

Your HR Policies – What Kind of Your HR Policies – What Kind of Company Leaders & Associates do Company Leaders & Associates do

You Say You Want?You Say You Want?

Performance

What?AcceptableUnacceptable

13© 2007-2011 WCM Associates

Your HR Policies – What Kind of Your HR Policies – What Kind of Company Leaders & Associates do You Company Leaders & Associates do You

Say You Want? (cont’d) Say You Want? (cont’d)

Performance

Cul

ture

What?

How?

Developing the Boundaries for a Developing the Boundaries for a Positive Culture with Positive Culture with

Behavioral ExpectationsBehavioral Expectations

Stop here if the Stop here if the organization’s Leadership organization’s Leadership Team is unwilling to model Team is unwilling to model

these expectations!these expectations!

15© 2007-2011 WCM Associates

Four Components of Lean

What is Organizational Culture?What is Organizational Culture? Culture is: • A set of rules and standards shared by members of an organization which produces behavior that falls within a range the organization considers proper and acceptable.• A learned process • Developed by the organization as a response to the working environment established by the organization’s Leadership Team

What is Organizational Culture?What is Organizational Culture? A culture is established in all organizations regardless of whether its development is guided or unguided.

Culture can have a positive or negative impact on the organization’s performance.

How do You Establish a Lean How do You Establish a Lean Culture?Culture?

A Lean culture is established in two parts:

• Part 1 – Developing a cultural framework or structure (this can be done quickly)

• Part 2 – Establishing a “people and team based” environment and filling in the framework (this generally takes years)

20

Developing a Cultural FrameworkDeveloping a Cultural FrameworkPart 1 – The Lean cultural framework isdeveloped and sets the boundariesfor a positive culture by:1) Establishing “Behavioral Expectations”

for the entire organization

2) Linking HR policies and procedures to the Behavioral Expectations and the Lean vision and implementation

3) Establishing organizational leadership and management principles

21

Part 1 Step 2 - HR Policies – Aligning Part 1 Step 2 - HR Policies – Aligning People Measures with the Culture & People Measures with the Culture &

Lean Implementation VisionLean Implementation Vision

Job Descriptions Performance Evaluations Promotions Reward Systems Bonus Systems Recruiting New Associate Orientation

Part 1 Step 3 – Part 1 Step 3 – Developing the Framework for a Developing the Framework for a

Positive Culture – Leadership Positive Culture – Leadership PrinciplesPrinciples

How Do We Begin How Do We Begin Implementing Culture Implementing Culture

Change in Our Company?Change in Our Company?

All Successful and All Successful and Sustainable Business Change Sustainable Business Change Starts with Top ManagementStarts with Top Management

24

Top Management Must Remember:Top Management Must Remember:

When problems in an organization occur (i.e. safety, scrap, poor quality, low productivity, etc.), 98% of them are a result of the organization’s systems – – not people. Top management must always take responsibility for these problems since management is responsible for the organization’s systems.

© 1998 - 2012 WCM Associates 25

““You will achieve the level of You will achieve the level of 5S that you demonstrate you 5S that you demonstrate you

want to achieve.”want to achieve.”

© 1998 - 2012 WCM Associates 26

Developing the People & Team Developing the People & Team Based Part of the CultureBased Part of the Culture

Using the established leadership andmanagement principles, this people &team based environment is developedthrough:Communication EmpowermentTeamwork

© 1998 - 2012 WCM Associates 27

© 1998 - 2012 WCM Associates 28

© 1998 - 2012 WCM Associates 29

Communication Supports Communication Supports Teamwork DevelopmentTeamwork Development

1) High levels of 2-way communication

2) Team members with diverse backgrounds

3) Common purpose/motivated by mission

4) Common goals/measurements

30

Communication Goals (via both Communication Goals (via both verbal & visual communication)verbal & visual communication)

1) Eliminate company rumors & gossip

2) Establish the mission/vision

3) Support the development of culture and empowerment

4) Establish organization’s goals and the group/individual responsibilities in achieving

5) Display company operational and goal status

© 1998 - 2012 WCM Associates 31© 1998 - 2012 WCM Associates

Empowering Environment Empowering Environment

Associates are recognized as the most valuable resource

Teamwork Decision making is delegated Openness, initiative, and risk taking are

promoted Accountability, credit, responsibility and

ownership are shared

© 1998 - 2012 WCM Associates 32© 1998 - 2012 WCM Associates

Empowerment Barriers Empowerment Barriers

Lack of trust Poor communication - can lead to lack of

clear expectations, lack of trust, fear Fear - people fear the unknown and

therefore resist change Lack of training - inadequate training

leads to confusion, frustration, and anger Lack of measurements - align systems to

vision

© 1998 - 2012 WCM Associates 33

Requirements for Teamwork to Requirements for Teamwork to Occur in Any OrganizationOccur in Any Organization

1) High levels of 2-way communication

2) Team members with diverse backgrounds

3) Common purpose/motivated by mission

4) Common goals/measurements

© 1998 - 2012 WCM Associates 34

Biggest Barriers to Teamwork in Biggest Barriers to Teamwork in OrganizationsOrganizations

1) The visible and invisible walls created by departmentalization (silos)

2) Lack of “systems thinking”

35

Thank You!Thank You!

Questions Questions

© 1998 - 2012 WCM Associates 36

Lean Cultural Elements ChecklistLean Cultural Elements Checklist Part 1 – Can be done quickly Establish “Behavioral Expectations” for

the entire organization Link HR policies and procedures to the

Lean vision and implementation Establish organizational leadership

and management principles Start Communicating

© 1998 - 2012 WCM Associates 37

Lean Cultural Elements ChecklistLean Cultural Elements Checklist

Part 2 – Can take years Complete communication system Empowerment Teamwork

© 1998 - 2012 WCM Associates 38

Contact Information:Contact Information:

Larry RubrichLarry RubrichWCM Associates LLCWCM Associates LLC

www.wcmfg.com260-637-8064260-637-8064

Email: rubrich@wcmfg.comEmail: rubrich@wcmfg.com