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Using the Lean “Tools” is the Easy Part!
Welcome toWelcome to“Sustaining Lean” “Sustaining Lean”
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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
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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
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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
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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.
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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.
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Four Components of Lean
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Four Components of Lean
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Four Components of Lean
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Four Components of Lean
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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.
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Behavioral Expectation ExamplesBehavioral Expectation Examples
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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
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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?
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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!
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Four Components of Lean
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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
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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.
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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)
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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
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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
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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
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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
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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.
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““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.”
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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
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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
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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
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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
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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
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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
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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”
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Thank You!Thank You!
Questions Questions
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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
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Lean Cultural Elements ChecklistLean Cultural Elements Checklist
Part 2 – Can take years Complete communication system Empowerment Teamwork
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Contact Information:Contact Information:
Larry RubrichLarry RubrichWCM Associates LLCWCM Associates LLC
www.wcmfg.com260-637-8064260-637-8064
Email: [email protected]: [email protected]