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Lean 101:Lean 101:Lean 101:Lean 101:An introduction to Lean tools and An introduction to Lean tools and An introduction to Lean tools and An introduction to Lean tools and

methodologiesmethodologiesmethodologiesmethodologies

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Class objectiveClass objectiveClass objectiveClass objectiveProvide a practical demonstration on how the basic Lean tools (7 wastes, 5S, Standard work and the rapid improvement Kaizen event) can

transform government operations.

By the end of the course, participants will begin "thinking Lean," that is, thinking in terms of

continuously improving processes with Lean tools.

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Our Agenda Our Agenda Our Agenda Our Agenda 1. Welcome and

introductions2. What is Lean?3. 7 wastes4. 5S – Visual management5. Standard work6. Kaizen events7. Leading a Lean

transformation8. Wrap-up and evaluations

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Welcome and introductionsWelcome and introductionsWelcome and introductionsWelcome and introductions

Please share your:• Name• Agency and role • Why are you interested in Lean?

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What is Lean?

LEAN is a time-tested set of tools, and an organizational desire,

to reduce waste and defects within systems and processes,

by engaging your staff

to improve productivity, quality, staff morale, and customer service.

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What is Lean?What is Lean?What is Lean?What is Lean?• Refined by/attributed to

Toyota Motor Corporation (aka TPS)

• Has now been applied in all sectors, private and public, office and manufacturing

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Lean, Six Sigma, TQM????• All come from common origins of SPC –Statistical Process Control begun in 1920’s

• All focus on continuous process improvement

• All engage those who work in the process to identify and implement process improvements

• All provide tools that can be useful in improving process performance

• Lean has a strong focus on process efficiency, accountability, and a bias for action

Why focus on process?

• Nearly every tangible output; service or product, is created as the result of a process or series of processes (a system).

• It’s been shown that over 85% of the opportunity to improve those outputs, while reducing time and cost lie within the process itself.

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Process forms the base of every organization

Department

Program

Processes

“If you can’t

describe what

you do as a

process,

you don’t know

what you are

doing”

W. Edwards Deming

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Why Lean, why now?Why Lean, why now?Why Lean, why now?Why Lean, why now?Public agencies are being asked to do more with smaller budgets and a shrinking workforce.

So how can we continue to provide quality service to our customers?

Lean can help.Lean can help.Lean can help.Lean can help.

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• Engages the people who work in the processto improve the process

• Designed to bring measurable and sustainable improvements

• Characterizes activities as value-added or non value-added from the customer’s perspective

• Focus on eliminating the non value-added

How Lean worksHow Lean worksHow Lean worksHow Lean works

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Lead or elapsed time Lead or elapsed time Lead or elapsed time Lead or elapsed time • Lead time is a measure of how quickly we

fulfill a request for a product or service

• Lead time can be a strategic measure of competency

• Organizations with the shortest lead time are positioned to be credible and trustworthy

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Why focus on lead time?Why focus on lead time?Why focus on lead time?Why focus on lead time?• When you reduce lead time,

you can…• Improve productivity• Increase responsiveness• Improve quality• Improve performance

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1Typical timelineTypical timelineTypical timelineTypical timeline

Non-valueAdded

Value Added

Typically, less than 5% of process time is actually adding value to the service.

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What do we do about it?What do we do about it?What do we do about it?What do we do about it?

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Eliminate the waste so we use our resources to do the value-added work.

What do we do about it?What do we do about it?What do we do about it?What do we do about it?

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NonNonNonNon----value added = wastevalue added = wastevalue added = wastevalue added = waste

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Lean = Eliminating WasteLean = Eliminating Waste

NonNon--value added:value added:�� Defects, errorsDefects, errors

�� OverproductionOverproduction

�� TransportationTransportation

�� Movement Movement

�� WaitingWaiting

�� OverOver--processingprocessing

�� InventoryInventory

�� Underutilized ResourcesUnderutilized Resources

ValueValue--addedadded

*Typically 95 percent of all lead time is non-value added*

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How do we define valueHow do we define valueHow do we define valueHow do we define value----added?added?added?added?

• Customer is willing to pay for it

• Actually transforms a product or service

• Done correctly the first time

• Consumes resources without creating value for the customer (often CYA)

• Unpredictable – Low first pass yield

• Requires extra time, effort, or resources

ValueValueValueValue----added vs. Non valueadded vs. Non valueadded vs. Non valueadded vs. Non value----addedaddedaddedadded

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ValueValueValueValue----added activitiesadded activitiesadded activitiesadded activitiesTransform materials and information into products or services per the request of the customer

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NonNonNonNon----value added activitiesvalue added activitiesvalue added activitiesvalue added activitiesOperations that consume resources (labor and materials), but don’t transform the product or service

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Building a successful Lean Building a successful Lean Building a successful Lean Building a successful Lean transformationtransformationtransformationtransformation

7 Wastes7 Wastes 5S5S

StrategyStrategy

LeadershipLeadership

SustainmentSustainment

KaizenKaizen

TrainingTraining

PlanningPlanning

Lean Lean TransformationTransformation

Standard WorkStandard Work Incre

asin

g O

rgan

izati

on

al

Valu

e

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Lean office exercise:Lean office exercise:Lean office exercise:Lean office exercise:Round 1Round 1Round 1Round 1

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The seven wastes +1The seven wastes +1The seven wastes +1The seven wastes +1Fundamentals of Lean:Fundamentals of Lean:Fundamentals of Lean:Fundamentals of Lean:

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How do we identify waste?How do we identify waste?How do we identify waste?How do we identify waste?Lean defines them asLean defines them asLean defines them asLean defines them as:•Transportation•Overproduction•Motion•Defects •Waiting•Inventory•Extra processing•Underutilized creativity

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DefectsDefectsDefectsDefectsAny element of a product or service that does not meet or exceed a keykeykeykey customer requirement.

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What key requirements do What key requirements do What key requirements do What key requirements do customers have of you?customers have of you?customers have of you?customers have of you?

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Customers judge services by:Customers judge services by:Customers judge services by:Customers judge services by:• Speed – how quickly do I receive it once I

request it• Accuracy – the information is correct, and

responded to my request• Understandable – the information is easy to

read and understand • It is convenient for me to get it – I can get it

when I want it, not when you are willing to give it to me

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Defects also create:

• Re-work

• Re-inspection

• Employee

frustration

• More cost

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TransportationTransportationTransportationTransportation

The unnecessary movement of people, information, or materials during a process.

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Follow the bouncing paperwork

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WaitingWaitingWaitingWaitingPeople, parts, systems, or facilities idly waiting for a step in the process to be completed.

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Factoid

About 95% of the time that is required to produce a product or service is because of waiting.

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OverproductionOverproductionOverproductionOverproductionProducing more than our customer wants means that we have not allocated our resources appropriately. Also, we are likely producing less of something the customer does want.

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Examples of overproductionExamples of overproductionExamples of overproductionExamples of overproduction• We need 54 copies, but make 60, just in

case.• Print 5000 brochures because the price

per piece is cheaper, then inventory, store and finally recycle 2/3 of them.

• Print and distribute forms that frequently change.

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Inventory/storageInventory/storageInventory/storageInventory/storage• Buying and storing more products than the customer needs

• Filing and storing multiple copies of the same document

• Record retention policies

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MotionMotionMotionMotionAny people movement that does not add value to a product or service.

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Frequency of use analysis Frequency of use analysis Frequency of use analysis Frequency of use analysis physical filesphysical filesphysical filesphysical filesWhere should this item be located?

How about this one?

Number of times person accesses file in a day

Distance Carried (feet)2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

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2

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7

1

2

3 6

5

4Mail

File

Issuer

File

Review

Mail

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7 File

BeforeBeforeBeforeBefore

Start

End

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3/4

2

1

2

4

3

Mail

Issuers/depositors

Quality

Helptracking

Issuance Work Area

3

AfterAfterAfterAfter

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Extra ProcessingExtra ProcessingExtra ProcessingExtra ProcessingExamples:• Multiple inspections • Multiple signatures• Different ways to

produce the same product (no standard work)

• Batching

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Underutilized creativityUnderutilized creativityUnderutilized creativityUnderutilized creativity• People who work in the

process know the process best.

ButButButBut:• Do they have the tools,

training, and permission to improve it?

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Kaizen Toast VideoKaizen Toast VideoKaizen Toast VideoKaizen Toast Video1. Watch for examples

of the eight wastes in the following video.

2. Make a note of what you would do differently if you were making the toast.

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Lean office exercise:Lean office exercise:Lean office exercise:Lean office exercise:Round 2Round 2Round 2Round 2

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Fundamentals of Lean:Fundamentals of Lean:Fundamentals of Lean:Fundamentals of Lean:5S5S5S5S

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What is 5S?What is 5S?What is 5S?What is 5S?• Methodology for creating a clean, safe,

orderly, high performance work environment

• Some companies have added 6th “S” for a safety focus.

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The 5 “Ss”The 5 “Ss”The 5 “Ss”The 5 “Ss”• Sort• Set In Order• Shine• Standardize• Sustain

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BeforeBeforeBeforeBefore

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AfterAfterAfterAfter

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The numbers game:The numbers game:The numbers game:The numbers game:Round 1Round 1Round 1Round 1

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SSSSortortortort“When in doubt, move it out.”

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Example Example Example Example ---- SortSortSortSort

Distinguish between

necessary and unnecessary

items and information

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Sort Sort Sort Sort –––– process stepsprocess stepsprocess stepsprocess steps1. Identify what to sort

• Equipment that is no longer needed or does not work

• Excess office supplies• Out-dated data or

information• Books, catalogs and files

that are no longer used

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Sort Sort Sort Sort –––– process stepsprocess stepsprocess stepsprocess steps2. Identify where to sort

• Personal and public workspaces

• Walkways • Closets• Desks• Tables• Cabinets• Drawers

•Communication boards•Print, conference and lunch rooms•Storage and equipment rooms

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How much is enough?

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Helpful hintsHelpful hintsHelpful hintsHelpful hints• Determine if the item is necessary

• Usefulness• Does it function?• Do I need it for my job?

• Frequency of use• Quantity needed

• Don’t compromise• Decorative and personal items

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Red TaggingRed TaggingRed TaggingRed Tagging• Effective activity for sorting• Tag unneeded items and

get rid of them:• Recycle • Send to a different department• Store• Send to surplus services• Archive (per record retention schedule)• Send reusables to State Recycling Center

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Red TagRed TagRed TagRed TagStep 1: Sort

5 S TAG

DEPARTMENT: DIVISION: FIXED ASSET #:

ITEM DESCRIPTION:

TRANSFER TO __________ STORE __________ SURPLUS __________

ARCHIVE __________ SEND TO FREE OFFICE SUPPLY STORE __________

IDENTIFIED BY: DATE:

RECYCLE APPROPRIATELY ___________

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Electronic files Electronic files Electronic files Electronic files ---- SortSortSortSort• Email• Files on:

• Hard drive• Personal drive• Shared Drive

• Archiving

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Shared driveShared driveShared driveShared drive1. Develop a file structure to include projects,

meeting minutes, commonly shared files, etc.

2. Develop a consistent file naming scheme for folders.

3. Assign responsibility to clean out on a monthly basis.

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The numbers game:The numbers game:The numbers game:The numbers game:Round 2Round 2Round 2Round 2

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ShineShineShineShine

“The best cleaning is to not need cleaning.”

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SSSShine hine hine hine –––– What is it?What is it?What is it?What is it?• Cleaning from top to bottom• Daily maintenance• Taking preventive measures for ongoing

cleanliness

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Shine Shine Shine Shine –––– Why?Why?Why?Why?• Boost employee morale• Improve health and safety of employees• Develop sense of ownership in the office• Identify and eliminate root causes of cleanliness

issuesIf a workspace is getting dirtyfaster than it can be cleaned,the root cause of the problem

has not been identified.

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Shine Shine Shine Shine –––– process stepsprocess stepsprocess stepsprocess steps1. Effective execution

• Assign areas • Develop standard work• Set time limits• Encourage coordination• Ask an objective third party to conduct inspections

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Set In OrderSet In OrderSet In OrderSet In Order“A place for everything, and everything in its place.”

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Set in order Set in order Set in order Set in order –––– What is it?What is it?What is it?What is it?• Organize• A specific place for

everything• Accessibility• Procedures to find,

return and replenish items.

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Set in order Set in order Set in order Set in order –––– Why?Why?Why?Why?• Immediately recognize

items out of place, and an excessive or insufficient amount of items

• Eliminate time wasted locating items

• Improve customer service

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Set in order Set in order Set in order Set in order –––– process stepsprocess stepsprocess stepsprocess steps1. Create a standard procedure for organizing

and storing material, equipment and information.

2. Organize your work area and common work areas

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Where should this item be located?

How about this one?

Frequency of gets and put-awaysTimes/Day

Distance Carried (feet)2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

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Frequency of use analysis Frequency of use analysis Frequency of use analysis Frequency of use analysis ––––paper filespaper filespaper filespaper files

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Where should this file be located?

How about this one?

Frequency of use

Times/Month

# of Mouse Clicks to Open File1 2 3 4 5 6 7 8 9 10

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Frequency of use analysis Frequency of use analysis Frequency of use analysis Frequency of use analysis ––––electronic fileselectronic fileselectronic fileselectronic files

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5S desktop layout example5S desktop layout example5S desktop layout example5S desktop layout example

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“Set in order” rule of thumb“Set in order” rule of thumb“Set in order” rule of thumb“Set in order” rule of thumb• Arrange and label items so

that ANYONE can find them.

• YOUYOUYOUYOU should be able to find ANYTHING in your office in 30303030 seconds or less.

• ANYONEANYONEANYONEANYONE should be able to find ANYTHING in YOUR office in 60606060 seconds or less.

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How long would it takeHow long would it takeHow long would it takeHow long would it takeyou to find what you’re looking for you to find what you’re looking for you to find what you’re looking for you to find what you’re looking for

here?here?here?here?

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Versus HERE !!!Versus HERE !!!Versus HERE !!!Versus HERE !!!

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Or HERE !!!Or HERE !!!Or HERE !!!Or HERE !!!

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Visual managementVisual managementVisual managementVisual managementA communication device that tells, at a glance,

how work should be done.

1. Where items belong2. How many items3. Standard procedure 4. Work in progress

There is only one place to put each item

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Color coding strategyColor coding strategyColor coding strategyColor coding strategy• Visually indicates an item’s purpose• Example: Similar files are color-coded and

stored in the same location.

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Stock room – labeled and organized

Visual management Visual management Visual management Visual management examplesexamplesexamplesexamples

Stock room – each item labeled and bar-

coded for reorder

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The numbers game:The numbers game:The numbers game:The numbers game:Round 3Round 3Round 3Round 3

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StandardizeStandardizeStandardizeStandardize“See and recognize what needs to be done.”

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SSSStandardize tandardize tandardize tandardize –––– What is it?What is it?What is it?What is it?• Makes “Sort,” “Set in order” and “Shine”

habitual• Commitment from team members • Incorporate 5S into regular work routine

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Standardize Standardize Standardize Standardize –––– Why?Why?Why?Why?• Enhances organizational performance• Employees to develop ideas on improving 5S • Consistency

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Standardize Standardize Standardize Standardize –––– process stepsprocess stepsprocess stepsprocess steps1. Assign roles and responsibilities

2. Train

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SustainSustainSustainSustain

Kaizen Newspaper

Date: Page:______ of:______

Item No. Description of Problem Counter Measure Person Responsible Due Date

%

Complete Date Complete

Tool Boards Not Maintained Shadow all tools and have Kevin 1/22/2004

supervisor follow-up

Drill Press has frayed electrical cord Replace cord Maintenance 2/1/2004

Material replenishment not to adequate Mark lines on bins for daily Jim 2/5/2004

level fill level

Team Number:

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100

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50 75%

100

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100

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50 75%

100

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50 75%

100

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50 75%

100

25

50 75%

100

“The less self-discipline you need, the better.”

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SSSSustain ustain ustain ustain –––– What is it?What is it?What is it?What is it?• Effective, ongoing application of 5S in order to

improve organizational performance

• Maintaining a commitment to 5S

• Sustaining improvements is the most difficult part

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Sustain Sustain Sustain Sustain –––– Process stepsProcess stepsProcess stepsProcess steps1. CommunicationLeaders should:

• Discuss 5S at meetings • Continually express their

commitment to 5S • Recognize good 5S practices

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Sustain Sustain Sustain Sustain –––– process stepsprocess stepsprocess stepsprocess steps2. Set goals

• Action plans• Identify resources• Accountability

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4. Keep it fun• Friendly competition• Teamwork • Before and after

photographs • Positive reinforcement• Individual recognition

or rewards

Sustain Sustain Sustain Sustain –––– Process stepsProcess stepsProcess stepsProcess steps

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Standard workStandard workStandard workStandard workFundamentals of Lean:Fundamentals of Lean:Fundamentals of Lean:Fundamentals of Lean:

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What comes to mind when you What comes to mind when you What comes to mind when you What comes to mind when you think of standard work?think of standard work?think of standard work?think of standard work?

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Standard work is…Standard work is…Standard work is…Standard work is…• Foundation of Lean• The safest, highest quality, and most

efficient way known to perform a particular task and process

• The only acceptable way to do the task and process

• Continually improved

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3 critical elements:

1. Customer demand

2. The most efficient work routine (steps)

3. Cycle times (task and wait time combined)

Standard WorkStandard WorkStandard WorkStandard Work

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Standard work exerciseStandard work exerciseStandard work exerciseStandard work exercise

Let’s use what we have learned about standard work to draw a pig!

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Why standard work?Why standard work?Why standard work?Why standard work?• Focuses on the employee, not the

equipment or materials

• Reduces variation, increases consistency

• Improvements will not be sustained without it

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How could your work benefit from How could your work benefit from How could your work benefit from How could your work benefit from standard work?standard work?standard work?standard work?

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The standard work modelThe standard work modelThe standard work modelThe standard work model1. Define start and end points of the process2. Determine appropriate standard work requirements3. Gather required information4. Create standard work documents5. Train the supervisor6. Train employees7. Ask the 5 questions8. Run the process and observe results9. Make adjustments where needed

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Step 1: Define start and end pointsStep 1: Define start and end pointsStep 1: Define start and end pointsStep 1: Define start and end points• Choose part of value stream or process• Guidelines:

• Standard work for each key job function • Same jobs use same standard work• The end point will be the starting point for the

next standard work sequence• Example:

Start: Receipt of requestEnd: Completion of case file

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Step 2: Determine appropriate Step 2: Determine appropriate Step 2: Determine appropriate Step 2: Determine appropriate requirementsrequirementsrequirementsrequirements

• Title• Work area• Author• Revision date• Cycle time• Work sequence

• Safety requirements• Approvals• Document location

and ownership• Standard work in

process (WIP)

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Step 3: Gather required informationStep 3: Gather required informationStep 3: Gather required informationStep 3: Gather required information• Look for best practices • Work sequence • Cycle time • Standard WIP • Quality checks

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Step 4: Create standard work Step 4: Create standard work Step 4: Create standard work Step 4: Create standard work documentsdocumentsdocumentsdocuments

Do:• Keep it simple• Make it accessible• Easy to read• Make standard work

for each part of the process

• Continually make improvements

Don’t:• Put it in a drawer• Change processes

without changing standard work

• Make it difficult to change

• Give up!

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Step 5: Train the supervisorStep 5: Train the supervisorStep 5: Train the supervisorStep 5: Train the supervisor

Step 6: Train the employeesStep 6: Train the employeesStep 6: Train the employeesStep 6: Train the employees

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Step 7: Ask the 5 questionsStep 7: Ask the 5 questionsStep 7: Ask the 5 questionsStep 7: Ask the 5 questions1. Do you understand why you must follow

standard work?2. Are you willing to follow standard work?3. Can you show me that you can perform the

standard work?4. What are the consequences of choosing not to

follow standard work?5. What is the process for changing standard

work?

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Step 8: Run the process and Step 8: Run the process and Step 8: Run the process and Step 8: Run the process and observe resultsobserve resultsobserve resultsobserve results

• Look for:• Training needs • Inadequate processes• 7 forms of waste

• Supervisor must approve all changesStep 9: Make adjustments Step 9: Make adjustments Step 9: Make adjustments Step 9: Make adjustments

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there can be no Kaizen.”there can be no Kaizen.”there can be no Kaizen.”there can be no Kaizen.”“Where there is no standard,“Where there is no standard,“Where there is no standard,“Where there is no standard,

Taiichi OhnoVice-President, Toyota Motor Company

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KaizenKaizenKaizenKaizenFundamentals of Lean:Fundamentals of Lean:Fundamentals of Lean:Fundamentals of Lean:

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Kaizen Kaizen Kaizen Kaizen • A facilitated, rapid

improvement event

• Employee-driven improvements

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KaizenKaizenKaizenKaizen“To take it apart, and put it back together in a better way.”

Follows Deming’s cycle of Plan, Do, Check, Act (PDCA)

Define the Define the Define the Define the operation operation operation operation to be to be to be to be improvedimprovedimprovedimproved Standardize the Standardize the Standardize the Standardize the operationoperationoperationoperationStandardize the Standardize the Standardize the Standardize the new new new new operationoperationoperationoperation

Measure the Measure the Measure the Measure the standardizestandardizestandardizestandardized operationd operationd operationd operationInnovate to meet Innovate to meet Innovate to meet Innovate to meet the the the the requiremenrequiremenrequiremenrequirementstststs Gauge Gauge Gauge Gauge measuremmeasuremmeasuremmeasurements ents ents ents against the against the against the against the requiremenrequiremenrequiremenrequirementstststs

KaizenKaizenKaizenKaizen

1111 2222333344445555 6666

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The Kaizen eventThe Kaizen eventThe Kaizen eventThe Kaizen event

• Maps a current process• Identifies waste• Brainstorms

improvements• Maps future process• Assigns tasks

3-5 day improvement event in which a team:

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KaizenKaizenKaizenKaizenKaizen events use the swim lane mapping technique to map the current and future processes.

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Swim lane mappingSwim lane mappingSwim lane mappingSwim lane mapping

Time

People (job functions)

Tasks/Process

Three elements:

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People

(job

functions)

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IconsIconsIconsIcons

DECISION(Y or N)

TaskTime to

Complete

(in min.)

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IconsIconsIconsIcons

Storage / FileWait / Delay

Wait Time

(in days

or weeks)

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IconsIconsIconsIcons

Handoff

Electronic, phone, or fax

Physical (e.g. passing a paper item back and

forth)

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Building a swim lane mapBuilding a swim lane mapBuilding a swim lane mapBuilding a swim lane map

Accounting

Customer

Order Entry

Sales

Supplier

Shipping

Customer Service

Customer Calls in order.

Customer Service sends e-mail to Sales

Sales person is assigned to order and delivers paper copy of order to Order Entry

Order is now entered into the company’s data base.

An electronic order is sent to the supplier.

Swim Lane Mapping Metrics

DHS kaizen

Qty. Time Qty. Time

Tasks 18 44 minutes 7 19 minutes

Waits 5 52 hours 1 2 hours

Handoffs 5 1

File/Store 0 0

Decisions 3 1

Totals - 52 hrs - 44 min - 2 hrs - 19 min

95% Improvement

InvoicingCurrent Future

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DOC – Comparison Metrics

Current Scenario Handoffs Decisions Storage Waits Tasks

ECRC “best path” with 1 Transfer

18 12 10 24 for

29-155 Days

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381 min

Improved Scenario Handoffs Decisions Storage Waits Tasks

ECRC “best path” with 1 Transfer

11 9 10 2 for

2-31 Days

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192 min

Handoffs Decisions Storage Waits Tasks

Improvement 38% 25% 0 92% 33%

49%

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Leadership Leadership Leadership Leadership

Fundamentals of Lean:Fundamentals of Lean:Fundamentals of Lean:Fundamentals of Lean:

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Leading a Lean transformationLeading a Lean transformationLeading a Lean transformationLeading a Lean transformation

A leader’s role in implementing and

sustaining continuous process improvement

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SummarySummarySummarySummary• Continuous improvement (CI) yields:

• Improved service delivery• Improved employee morale• Increased capacity

• To create and sustain a CI culture requires the knowledge and commitment of the leaders of the organization.

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“Leadership is an action… not a

position.”Donald H. McGannon

“If your actions

inspire others to

learn more, do

more, or become

more, you are a

leader”

John Quincy Adams

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Managers and Leaders

� Managers keep the train

running on time toward an

established destination

� Leaders determine what the

appropriate destination is

and create an environment

where employees have the

permission and support to

help figure out the best ways

to get there

“If you don't know where you are going, you will wind up somewhere else.”

- Yogi Berra

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Is it improvement or just change?Is it improvement or just change?Is it improvement or just change?Is it improvement or just change?

“All the empowered, motivated, teamed-up, self-directed, incentivized, accountable, re-engineered, reorganized, or reinvented people you can muster, cannot compensate for a dysfunctional system.”

Peter ScholtesThe Leader’s Handbook

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“Making change is easy…“Making change is easy…“Making change is easy…“Making change is easy…making improvement is hard.”making improvement is hard.”making improvement is hard.”making improvement is hard.”

Ferdinand Porsche

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Implementing LeanImplementing LeanImplementing LeanImplementing LeanLean is a set of tools, but more importantly it is a philosophy that leaders must learn, exhibit and communicate to create and sustain a culture of continuous process improvement.

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Creating a cultureCreating a cultureCreating a cultureCreating a cultureChanging habits, behavior and the

way people think

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Culture exists on three levelsCulture exists on three levelsCulture exists on three levelsCulture exists on three levels• Espoused values – what leaders say

• Artifacts – what leaders do

• Assumptions – the unwritten rules that evolve from a combination of espoused values and artifacts

We change culture by action at the top two levels

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Espoused values Espoused values Espoused values Espoused values “What do we tell our peopleWhat do we tell our peopleWhat do we tell our peopleWhat do we tell our people”

• What you say matters.• How you say it matters.• Bringing about a transformation of culture is not the business of a program; it’s the business of leaders.• What are your personal core values? Do others know what they are?• Leaders should be predictable; when questions arise, staff should have a pretty good idea what you will say.

You won’t change culture flying under the radar

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Artifacts Artifacts Artifacts Artifacts “What do people see?What do people see?What do people see?What do people see?”

• Action – Do your actions match your words?• Accountability – Do you hold yourself accountable? Do

you hold others accountable for those things that are their responsibility?

• Role-modeling - Do you demonstrate the behavior you expect from your colleagues and co-workers?

• When something goes wrong, do you examine the process first, or immediately look for “who screwed up?”

• What types of people get promoted?

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Shared assumptionsShared assumptionsShared assumptionsShared assumptions“Our culture really is..Our culture really is..Our culture really is..Our culture really is..”

• This is the most powerful level of culture

• Unwritten rules are very slow to change

• Change comes from consistent, meaningful espoused values, and different behaviors

• The change you want to see in your area of influence starts with you.starts with you.starts with you.starts with you.

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Changing assumptionsChanging assumptionsChanging assumptionsChanging assumptions1. Adults are big kids – role-model the

behavior you hope to see from those around you

2. If something goes wrong, first understand what in the process may have contributed to it.

3. Stop being Ranger Rick, and start being Smokey Bear

4. Be substantially dissatisfied with the status quo

5. Leaders must learn, do, and teach

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Changing assumptionsChanging assumptionsChanging assumptionsChanging assumptions6. Apply the 5 ‘whys’7. Say ‘no’ to ‘yes’ people (if all 8 of us always

agree, we have 7 too many people in the room) 8. Hold people accountable – stop enabling

bad behavior. 9. Hire, keep and promote thoughtful risk

takers 10.Be courageous – drive out fear

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“The greatest barrier to

success is the fear of

failure”Sven Goran Ericksson

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Summary and conclusionSummary and conclusionSummary and conclusionSummary and conclusion• How the 7 wastes, 5S, standard work, and

Kaizen support a Lean transformation• Next steps• Questions?