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TRANSCRIPT
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Breakthrough Thinking … Thinking Differently
… Breakthrough Action Acting Differently, Delivering Differently
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The Time for change
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What is Lean?
Is it a Process Driven
methodology?
or a Way of Being?
An organisation’s way
of constantly Breaking
Through
Do we do this
just once?
In ONE word what is Lean to you?
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What is Lean?
Lean is a proven and successful business model. Many have tried to adopt it, adapt it, some successful, some not.
Adapted from John Shook, Lean Ent. Institute
Process People
Today – Balance, Lean Leadership Every Organization must address Purpose,
People, Process and Culture
BALANCED APPROACH
Lean Leadership
Purpose
Narrow View: § Tools § Cost Cutting § Process
Improvement
Broad View: § Systematic Thinking § Entire enterprise view § Business as a system
1980’s
1990’s
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Why Purpose?
Profits and Purpose • Purpose-Led companies outperform
• Employees stay
• Customers recommend
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Lean Defined
Lean is….. an Operational Excellence strategy….. a way of thinking and a toolset…….
Strategy
Toolset A Way
Lean is not part of the strategy, it is the strategy
Learn to apply the tools in the right place
at the right time
Don’t do Lean, be Lean
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Lean Doctrines
Toyota Production System (TPS) – Taiichi Ohno learned all he needed to know from:
Ford Motor Company Highland Park Plant Indy Car Racing American Supermarkets
Concept of FLOW Concept of JIT/PULL Concept of Quick
Change Overs
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Lean Defined: The Toyota Production System
The Toyota Production System
People and Partners
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The Lean Way and The Lean System
Problem Solving (CI & Learning
People & Partners (Respect,
Challenge, grow)
Process (Eliminate Waste)
Philosophy (Long-‐Term Thinking) The ‘Toyota Way’
The Toyota Purpose is to generate value for the customer, society and the economy The Toyota Executives understand their place in the history of the company
The Toyota Production System is about applying the principles of The Toyota Way.
The Toyota Production System (Technical) The Toyota Way (Social).
People and Partners
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Lean in a Manufacturing Environment
Lean has been very successfully implemented in the manufacturing environment helping companies like Toyota, Boeing, GE and Wiremold to improve flow and decrease waste in the pursuit of delivering customer value
A Lean business produces just what is needed, when it is needed with no additional effort, cost or time.
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The Service Company is Ripe for Lean
Lean is not just for manufacturing
Inefficiencies in the office are a big area of opportunity for Lean Thinking…
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Lean Defined
Lean is an Operational Excellence philosophy of continuous improvement in which waste (non-value adding activities) are identified and removed from value creating processes for the purpose of:
ü Reducing costs
ü Improving quality
ü Improving performance
ü Improving delivery
ü Adding flexibility
ü Increasing innovation
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What is the Difference?
VS.
Congested, overburdened
Flowing, Orderly, Fit for purpose
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What is the Difference?
VS.
“Record Time” World-Class
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Video Lean Defined – F1 Pit Stop 1950 and 2013
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“70% of Strategic failures are due to lack of Execution - it is rarely due to a lack of goals.”
Ram Charan Execution The Discipline of Getting Things Done
Execution
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Execution Cycle Reference: Adapted from Smith and Black’s Organisation Effectiveness Cycle
Market Changes, Industry & Competitor
Dynamics, Giovt. Regulation i.e. B-
BBEE
Leadership YOU
1. Right People 2. Right Skills 3. Right Processes 4. Right Metrics 5. Right Rewards 6. Right
Accountability
True North
Strategy / Value
Proposition
Operating Model
Behaviour (Culture)
Results
Customer Needs
Performance Gap
PURPOSE: Align strategy to
create customer value
Why we exist How we will we succeed
What we do Our GPS
What is most important right now? Who will do what?
Keep Score
Set Standards, Measure
Problem Solving
Kaizen, DMAIC, Lean, A3
Execution Cycle
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Execution Cycle – 5 Focus Areas
Reference: Adapted from Smith and Black’s Organisation Effectiveness Cycle
Keep Score
Problem Solving
YOULeadership
1. Right People2. Right Skills3. Right Processes4. Right Metrics5. Right Rewards6.Right Accountability
Vision & Values
Value Proposition
Operating Model
(system factors)
Behaviour (Culture)
Results
Customer Needs
Performance Gap
Market Changes, Industry & Competitor Dynamics
PURPOSE: Align Strategy to create
customer value
NEED FOR CHANGE
PURPOSE, VALUE AND YOUR CUSTOMER
SCOREING, LEARNING AND PROBLEM SOLVING
LEAN LEADERSHIP YOUR ROLE
ALIGNING YOUR RESOURCES TO EXECUTE
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Execution Cycle
Keep Score
Problem Solving
YOU Leadership
Right People Right Skills Right Processes Right Metrics Right Rewards Right Accountability
Vision & Values
Value Proposition
Operating Model
(system factors)
Behaviour (Culture)
Results
Customer Needs
Performance Gap
Market Changes, Industry & Competitor Dynamics
PURPOSE: Align Strategy to create customer value
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Importance of the Customer
“The single most important thing to
remember about any enterprise is that there are no results inside its walls.
The result of a business is a satisfied
customer”
- Peter Drucker
Define Value from a Customers Perspective
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Execution Cycle
Keep Score
Problem Solving
YOU Leadership
Right People Right Skills Right Processes Right Metrics Right Rewards Right Accountability
Vision & Values
Value Proposition
Operating Model
(system factors)
Behaviour (Culture)
Results
Customer Needs
Performance Gap
Market Changes, Industry & Competitor Dynamics
PURPOSE: Align Strategy to create customer value
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System Factors
Systems Drive Behavior! People in Similar Systems Will Exhibit Similar Behaviours
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Execution Cycle
Keep Score
Problem Solving
YOU Leadership
Right People Right Skills Right Processes Right Metrics Right Rewards Right Accountability
Vision & Values
Value Proposition
Operating Model
(system factors)
Behaviour (Culture)
Results
Customer Needs
Performance Gap
Market Changes, Industry & Competitor Dynamics
PURPOSE: Align Strategy to create customer value
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Video - Getting Behind a Number– ’13’
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Getting Behind a Number
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Getting Behind a Number
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Visual Management and Team Huddles
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Execution Cycle
Keep Score
Problem Solving
YOU Leadership
Right People Right Skills
Right Processes Right Metrics
Right Rewards Right Accountability
Vision & Values
Value Proposition
Operating Model
(system factors)
Behaviour (Culture)
Results
Customer Needs
Performance Gap
Market Changes, Industry & Competitor Dynamics
PURPOSE: Align Strategy to create customer value
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Lean Leadership FOLLOWING SUCCESS
“Leaders don’t create followers, they create more leaders.”
- Tom Peters
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Lean Leader
First, get each person to take initiative to solve problems and improve his/her job. Second, ensure that each person’s job is aligned to provide value for the customer and prosperity for the company.
The Leader’s job at Toyota…
“People are the most important asset of Toyota and the cause of the rise and fall of Toyota”
Dr. Eiji Toyoda, President, Toyota Motor Corporation
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3 Keys to Lean Leadership
1. Go see … Senior management must spend time on the shop floor
2. Ask why, use the “why” technique daily
3. Show respect, respect your staff
Fujio Cho, chairman of Toyota
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The Fifth “S” Sustain
Three factors that make team members feel engaged: 1. Tradition – Those who came before us did it 2. Program – A steady program of workshops to
reinforce changes 3. Management – How committed are they?
The Real Question about Lean – How do I sustain it?
The deeper question is: What do you have to change in your own management approach to make Lean sustainable?
There is no magic bullet – Lean Thinking runs deeper than any other organizational quick change approach as it requires persistence, discipline and a real commitment from Leadership.
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The Fifth “S” Sustain
Analogy: People join companies and leave bosses
§ They join a company for pay, benefits, work conditions and company culture
§ They leave bosses when they are unfair, inconsistent, and are always on people’s backs.
§ The same goes for sustaining Lean § People will join in if they feel it is part of the
company culture and they will opt out if their immediate bosses discourages them (either knowingly or not)
The Real Question about Lean – How do I sustain it?
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Video: The Power of Takt, Standard Work, One Piece-Flow and Pull
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Thank You!Rick McCarthy!
Managing Director!
Training, Leadership Consulting!
www.tlc-global.com!
0861 852 463!
082 323 6467!