lean transformation
TRANSCRIPT
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Lean Transformation for Medical Device Development and
Manufacturing
Lean Leadership: Anchoring Organizational Values To Lean Principles
Darren DolcemascoloKen Flaherty
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Agenda and Objectives
2
Introduction – Lean and Why Lean Efforts Often Fail to Yield Long Term Results
Lean Transformation – Bridging the Gap
Anchoring Values to Lean Principles, Aligning Principles to Systems, and Using Tools to Create Great Systems
Lean Leadership
Role of A Lean Leader
Managing for Daily Improvement
Q&A
ObjectivesToday’s Agenda
Understand why most lean programs fail to produce lasting results.
Understand Why a Lean Transformation Model Should be Based on Key Process Indicators (KPI) and Key Behavioral Indicators (KBI)
Understand How Strategy Deployment and A-3 Thinking Can be Used to Cascade Metrics and Goals Down to the front lines
Understand How to Operationalize Lean Daily Management and Daily Kaizen using A-3 and the Improvement Kata
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Introduction: What Lean Means
Taichi Ohno once said, “All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash, and we are reducing the time line by reducing the non-value adding wastes.”
But, he also said: “The Toyota style is not to create results by working hard. It is a system that says there is no limit to people’s creativity. People don’t go to Toyota to ‘work’ they go there to ‘think’.”
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Goal:
Highest Quality, Lowest Cost, Shortest Lead Time
Best Safety, High Morale
Just In TimeRight part-Right amount-Right
Time
JidokaQuality at the
Source
•Line Stop
•Visual Controls
•Error Proofing
•Andon
•5 Whys
Operational StabilityStandardized Work
PM/ TPM 5S
Leveled Production
•Flow
•Takt Time
•Pull
•Quick Changeover
Lean: Toyota Production System
Flexible, Capable,Highly Motivated
People
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Observations About Lean “Programs”
Executive Management often expresses a desire to “implement” lean practices for cost reduction, inventory reduction, faster time to market, etc.
Initial Rapid Improvement Events (Kaizen Events) yield promising results.
After a short period of time, level of engagement decreases.
There is a return to the status quo before “Lean Implementation.”
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Why Does Lean Fail to Yield Long Term Results
No Strategy and/or No method for cascading strategy from the boardroom to the front lines
No Way to Tie Company Guiding Principles to Actual Day to Day Activities.
No System for Daily Kaizen (Continuous Improvement)
No System for Daily Management
Little or No Leadership Engagement
“Expert” Driven / No Front-Line Engagement
Focus on “Implementing Tools” Rather than Solving Problems
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Closing the Gap
VALUES govern BEHAVIOR
PRINCIPLES govern CONSEQUENCES
thinking
behaviorCore values
Anchored to Guiding Principles
Desired
CULTURE“If principles govern consequences, value principles.”- Steven R. Covey
What we
value
Thinking
beliefs/attitude
GUIDING PRINCIPLES SUPPORTING PRINCIPLES
Measure what MattersAlign Behaviors with PerformanceCreate Value for the CustomerIdentify Cause & Effect Relationships
See RealityFocus on Long TermCreate Constancy of Purpose Enterprise Align Systems
Think SystemicallyAlignment Align Strategy
RE
SU
LT
SStabilize ProcessRely on Data
Focus on ProcessStandardize Processes
Embrace Scientific ThinkingInsist on Direct ObservationContinuous
Flow & Pull Value Focus on Value StreamImprovementAssure Quality at the Source Keep it Simple & VisualSeek Perfection Identify & Eliminate Waste
Integrate Improvement with Work
Empower & Involve EveryoneLead with Humility
Cultural Enablers Develop PeopleRespect Every Individual
Assure a Safe Environment
Aligning the Organization
EXERCISE – Anchoring Principles
1. Select an example of ONE of the Following:(Place on the left side of the grid)
1. Values (identify 3-4)
2. Strategic Objectives/Priorities (identify 3-4)
2. Select 3-4 Principles from ANY dimension(Place a check mark under the principle)
3. Identify key ROLE (L) Leader, (M) Manager, (A)
Associate.
EXERCISE – Anchoring Principles PART 1
3. Describe ideal behaviors for
each combination of principle and
selected (value or objective) (One for each Role – L, M, A)
L M A
Focus
Leaders define the strategic
direction of the organization that
captivates the voice of the
customer using strategy
deployment at all levels. Leaders
routinely communicate the
direction and transparently shares
organizational performance to
ALL levels on a regular basis.
Managers communicate the
strategic direction of the
organization in a simple, visual
manner with regular follow-up at
the worksite. Managers engage
in two-way communication to
ensure associates understand
how they affect the strategic
direction in their area.
Associates identify how
improvements in their area link
to the strategic direction and
objectives of the organization.
They also translate how the
work they do impacts their
area's goals and measures.
L M Aleaders managers associates
EXERCISE – Anchoring Principles PART 2
FOCUS HERE
behavior behavior “Ideal behavior”behavior behavior
TOOLS
SYSTEMS
PRINCIPLES
Behavior can be…Frequency
• Observed Duration• Described Intensity
Scope• RecordedRole
Levels of Observing Behavior
SPStrong
Positive
WWeak
XNot
Existent
SNStrong
Negative
Assessment Scale
(Objectives)
V.1
V.2
V.3
V.4
V.5
Key Behavior Indicators (KBI)
Mission
Vision
Strategic
Philosophy
C.1
C.2
C.3
C.4
C.5
W.1
W.2
W.3
W.4
W.5
W.1
W.2
W.3
W.4
W.5
S.1a S.1b S.1c
• Tool. 1• Tool. 2• Tool. 3• Tool. 4
• Tool. 1• Tool. 2• Tool. 3• Tool. 4• Tool. 5
• SubSystem.1.1c• Tool. 1• Tool. 2• Tool. 3
• SubSystem.1.2c• Tool. 1• Tool. 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
CE CPI EA R
G G G G G G
G
G G G G G G G G G G G G G
❺ ASSESS
Mapping Performance and Behavior for Alignment
Key Performance Indicators (KPI)
• Identify existing
culture
• Describe the desired
(ideal) culture
• Translate the desired
culture into specific
behaviors
• Align the
organizational
objectives, goals, &
measures
• Examine, adjust &
monitor
organizational
structures and work
processes (systems)
Mapping for Alignment Continued
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Where is Your Time Spent
Top
Management
Middle
Management
Supervisor
Front Line
Associate
Strategic Implementation
(Breakthrough)
Daily
Management
Kaizen
0% 25% 50% 75% 100%
Percent of Time
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What Lean Leaders Need to Learn
Managing from where the work takes place (gemba)
Developing themselves and others
Live the core values and principles (example; respect for people and continuous improvement)
Manage effectively from the gemba
Become a role model for discipline problem solving
Become a teacher and coach for disciplined problem solving
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Daily Management System
What is your dailysystem for: Understanding
performance? Modeling principle
based behavior Seeing waste and
eliminating waste? Discovering problems
and resolving problems? Continuously improving? Coaching and developing
staff?
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Visual Controls
Leader Standard Work
Managing Daily Performance
Managing Standard Work
Daily Problem Solving and Continuous Improvement
Employee Suggestion System
Start Up Huddles and Escalation Systems
Gemba Walks
Developing People / Coaching
Elements of a Daily Management System:
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Problem Solving Story
Theme (subject)
Background (Why I/We Chose Theme)
Current Situation
(Analysis of Problem(s) and Cause(s))
Countermeasures
(to address causes(s))
Implementation
Follow-Up
(Review/Evaluation Results – Unresolved Problems)
Future Actions
(New Countermeasures and/or Standardization)
Grasp
The
Situation
Plan
Do
Check
Act
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A3 Problem Solving Report Story
Theme:
Answers the question, “What are we trying to do?”
I. Problem Situation
•The Standard
•Current Situation
• Discrepancy/Extent of the ProblemRationale for picking up problem (importance to business
activity, goals and values of the organization)
II. Target/Goal
• Measurable description of what you
want to change;quantity, time
III. Cause Analysis
Problem:
Potential Causes
Most likely direct cause
Why?
Why?
Why?
Why?
Why?
Root Cause:
IV. Countermeasures
(Resulting from Cause Analysis)
• Temporary Measure
• Long Term Countermeasure
V. Implementation
What Where Who When
Action to Place Respons- Times,
be taken ible person Dates
Cost
VI. Follow-up
•Unresolved issues & actions to address them?
•How will you check effects?
• When will you check the effects?
• How will you report your findings?
•When will you report your findings?
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Daily Kaizen Using the Improvement Kata
kata - a routine you practice deliberately; a pattern that becomes a habit.
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The 5 Questions
1. What is the Target Condition?
2. What is the Actual Condition now?
3. What Obstacles do you think are preventing you from reaching the target condition? Which *one* are you addressing now?
4. What is your Next Step? (next PDCA / experiment) What do you expect?
5. When can we go and see what we have Learned from taking that step?
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Why the Improvement Kata Works
People consciously
practice new behaviors
each day.
In the long term, this
affects the
organization’s culture.
Over time, this
influences people’s
thinking and attitudes.
Adapted from Toyota Kata, p. 237
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Lean Programs fail to create a lasting culture change because the focus is often on the application of tools alone.
In order to effect culture change, we must adopt a principle-based architecture.
We must align our organization’s activities to its values/principles/strategy, and then measure KPI’s and KBI’s.
We must adopt a system for Daily Management and Daily Kaizen.
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Summary
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Questions?