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Breakthrough Thinking … Thinking Differently … Breakthrough Action Acting Differently, Delivering Differently

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Page 1: Breakthrough Thinking - TLC Globaltlc-global.com/wp-content/uploads/2015/10/KZN-Lean... · Breakthrough Thinking … Thinking Differently … Breakthrough Action ... adding activities)

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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!