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© Lean & Mean Consulting. All rights reserved. 2015 © Lean & Mean Consulting. All rights reserved. 2016

16 / 16 World-Class Standards & Best Practices of Operational Excellence

Lean Leadership & Management System For Lean Leaders

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Training Objectives

1. Understanding the role and function of Management System in Lean Transformation

2. Providing knowledge on the four key elements of the Lean Management System

3. Providing Leaders with hands-on tools, standards and best practices to effectively manage Lean change on daily basis

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Agenda

1. Leader Standard Work

2. Visual Controls & Management

3. Daily Accountability

4. Leadership Discipline

5. Supporting Elements of a Lean Management System for Lean Leaders

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Management System for Lean Leaders

Module. 16

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The Missing Link in Lean: The Management System

Most Lean organizations are missing a critical ingredient: a Lean Management System TO SUSTAIN IT

Lean organizations are mostly focused on finding waste and eliminating them using Lean “tools”

To sustain Lean practices, we need a Lean management system

Lean cultures grow from powerful Lean management systems

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Areas of responsibility in Lean Culture

Who? Tool/System Lean Role

Leadership Lean Management System

Lead and sustain Lean initiative

Middle Management & Workforce

Lean Production Methods & Tools

Implement Lean and manage Lean

operations

Stra

tegi

c Ta

ctic

al

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Lean Culture grows from powerful Lean Management System

Work Systems & Processes

Behavior

Attitude

Culture

THE WAY WE ACT

THE WAY WE THINK

WASTE ELIMINATION

THE WAY WE BEHAVE

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Lean Management System Creates Process Focus and Drives Improvement

(1) Frequent focus on process health:

Visual Controls

(2) Improvement standard:

Visual Accountability

(3) Sustained

improvement: Leader Standard Work

PROCESS FOCUS

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Four Key Elements of the Lean Management System

1.

Leader Standard Work

2.

Visual Controls

3.

Daily Accountability

4.

Leadership Discipline

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What is Leader Standard Work?

A list of the tasks that must be done to sustain the Lean management system

Tasks typically include:

Audits

Meetings (daily accountability)

Continuous improvement projects

Focuses on the production/delivery process

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What is Leader Standard Work?

Leader standard work is a

Visual daily performance management system

that is:

Visual Drive Action

& Learning Timely

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Leader Standard Work Sustains and Extends Lean’s Gains

Lean gains


Imp

rove

me

nt

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Why Leader Standard Work?

Leader Standard Work is often the“missing link” to sustaining improvement


Continuous Improvement Ability

Ability to Sustain Improvements

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LSW Example: Supervisor

Once Daily

Shift to shift communication

Monitor production start up

Post KPI tracking sheets

Lead KPI board meeting in department

Attend KPI board meeting in value stream level

Audit standard work for one station

Gemba walk with a Team Leader

Set next day’s plans

Multiple Times Daily • Walk through the department

• Review visual boards and take action as needed

• Coach Team Leaders as needed

• Monitor stop and start times

Standard work for Supervisors is roughly 50% of their day

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Attributes of Visual Management Tools

Provides “understanding at a glance”

Emphasize graphics rather than numbers and words

Clear information actionable at the point of communication

Maintained by those carrying out the work

The first who detect abnormalities are those who perform the work

Linked to high level business metrics and objectives

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Example: Visual Control Metrics

Monthly Trend Chart

Shift-to-Shift Trend Chart

Pareto Chart

Cause & Effect

Gantt Chart

Monthly Trend Chart


Pareto Chart

Cause & Effect

Gantt Chart

Monthly Trend Chart


Pareto Chart

Cause & Effect

Gantt Chart

Safety Delivery Cost Quality

Note: Start with existing data and build up over time measures that your team is accountable for

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• Gaps? Trends? What is happening?

• Root causes? Why?

• Correct the problem –

implement containment

action?

• Prevent the problem –

permanent corrective action?

What needs to be done?

• Who does what?

• Any support needed? Who is going to do it?

• Prioritization?

• Deadline?

• Milestones?

When is it going to be done?

Visual metrics facilitates communication and identification of areas that need improvement

Productivity

Delivery

Quality

Customer Satisfaction

Sales per Employee

Cost Per Employee

First Call Resolution

SLA Metrics Met

Actual $3,200

Target $3,500

Actual $91.50

Target $78.39

Actual 80%

Target 95%

Actual 4.8

Target > 4 of 5

Actual 7.0

Target 9.0

Actual 5.0 hrs

Target 4.5 hrs

Actual 2 hr

Target 1 hrs

Customer Complaints

Actual 2.0

Target 1.0

Turnaround Time

Response Time

Overall Satisfaction

12108642

USL

Process Data

Sample N 100

StDev (Within) 2.25841

StDev (O v erall) 2.39212

LSL *

Target *

USL 9

Sample Mean 6.21762

Potential (Within) C apability

O v erall C apability

Pp *

PPL *

PPU 0.39

Ppk 0.39

C pm

C p

*

*

C PL *

C PU 0.41

C pk 0.41

O bserv ed Performance

PPM < LSL *

PPM > USL 130000.00

PPM Total 130000.00

Exp. Within Performance

PPM < LSL *

PPM > USL 108973.12

PPM Total 108973.12

Exp. O v erall Performance

PPM < LSL *

PPM > USL 122385.02

PPM Total 122385.02

Within

Overall

Process Capability of C2

12108642

USL

Process Data

Sample N 100



LSL *

Target *

USL 9

Sample Mean 6.21762



Pp *

PPL *

PPU 0.39

Ppk 0.39

C pm

C p

*

*

C PL *

C PU 0.41

C pk 0.41


PPM < LSL *

PPM > USL 130000.00

PPM Total 130000.00


PPM < LSL *

PPM > USL 108973.12

PPM Total 108973.12


PPM < LSL *

PPM > USL 122385.02

PPM Total 122385.02

Within

Overall


12108642

USL

Process Data

Sample N 100



LSL *

Target *

USL 9

Sample Mean 6.21762



Pp *

PPL *

PPU 0.39

Ppk 0.39

C pm

C p

*

*

C PL *

C PU 0.41

C pk 0.41


PPM < LSL *

PPM > USL 130000.00

PPM Total 130000.00


PPM < LSL *

PPM > USL 108973.12

PPM Total 108973.12


PPM < LSL *

PPM > USL 122385.02

PPM Total 122385.02

Within

Overall


Example of a visual metrics board

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Why do we use Activity Boards?

It is based on the belief that if significant information is shared with everybody, all people in the organization can participate in managing and improving the business collectively

It provides a means to further tie people’s creative resources together

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Example: Team Activity Board

Inventory

Cost/Productivity

Delivery

Quality

Safety

Daily / Weekly / Monthly Trend

Pareto Charts

6-Month Lean Business Plan

Problem Solving

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What is the Daily Accountability Process?

A series of brief review sessions (tier meetings)

Taking action to close gaps

Visualization of accountability - use of:

Visual controls

Activity boards

What are we

accountable

for each day?

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Example: Daily Accountability Steps

Review tasks which are due yesterday or today Completed = add green dot

Incomplete = add red dot, write new date, record reasons for the delay on the back of post-it

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Leadership Discipline

Disciplined leaders constantly have the PURPOSE in mind, and use the management systems to drive teams toward the next future state

Disciplined leaders are comfortable with taking chances and DESIRE the pressure to lead (in a humble manner)

Disciplined leaders are constantly LEARNING, coaching teams and looking for ways to improve the current state

Disciplined leaders harmonize the Lean Management System with Lean Production for maximum effectiveness

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Breakthrough

Breakthrough means improvement to a significantly higher level of performance

Lack of breakthrough for a business organization would place it in a position of regression in a competitive environment

Think BIG: Boldly Important Goals

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What Is Gemba?

The term Gemba means “the real place”

A gemba is literally any direct location where the action is taking place

Within the Lean culture it refers to the location where value is created and ultimately improved

The idea of gemba is simple: Go to the place

Observe the process

Talk with the people

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Objective of Gemba Walk (1)

The objective of Gemba walk is learning to assess the health of the Lean Management System

It is not to draw a map, or to solve a specific problem, or to Plan or Do or Check or Act

It is to understand the situation by involving everyone touching the process to understand purpose, process, and people

Once the situation is understood, improvement is possible and more likely to succeed

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Your Approach is Key

Show respect.

Your direct interaction with the employee(s) is important to the Gemba.

Make sure they feel respected to get the most out of your Gemba.

Great opportunity to strengthen your Lean culture.

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