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Video located at http://youtu.be/Cs18sO-PrOw A 39 minute video on cultural reasons why Lean doesn't work at some companies and works well at other companies. It's true weather you are doing Lean in manufacturing, healthcare, start-ups, or any other industry it still applies. You'll also get 3 tools to help you diagnose and help you implement change properly.
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The Lean Way is led by Ankit Patel. Ankit’s personal vision is to help people, organizations and communities flourish by using the proven thinking and methodology associated with Lean Transformations.
Prior to founding The Lean Way Consulting, he was a Lean consultant with computer giant Dell, where he helped guide strategic planning at its multi-billion-dollar manufacturing, distribution, and re-manufacturing plants in Lebanon, TN. As part of his job, he coached plant executives, facilitated Kaizen events and trained Lean leaders at all levels of the organization.
Equally at home in healthcare, he has also worked with the world-renowned Cleveland Clinic, where he helped improve culture and processes in its internationally ranked Heart and Vascular Department.
Clients praise Ankit for his stabilizing influence during times of conflict and his balanced, calm leadership through all phases of Lean Transformations and other company change.
He holds a Master of Science degree in Positive Organizational Development from Case Western Reserve University, as well as a Bachelor of Science degree in Industrial Engineering from Georgia Tech. He lives with his wife in the greater Atlanta, GA.
Today’s Speaker Ankit Patel
Ankit Patel
Managing Director
The Lean Way Consulting
404.855.1634
www.TheLeanWayConsutling.com
Why Lean FailsAnkit Patel – Managing Partner with The Lean Way Consulting
TheLeanWayConsulting.com
Agenda
What is Lean
Why It Fails
Tools to Help
Emphasis on producing
Make to forecast
‘Push’ system
Machine/Structural utilization
Reduce cost and increase efficiency
Leadership by executive command
Specialized employees
Penalize mistakes
Blame people
Reactive
Inspect in Quality
Complexity
Functional Management Structure
Emphasis on customer service
Makes to actual customer demand
‘Pull’ system
Employee utilization
Reduce waste and add value
Leadership by vision and broad participation
Multi-functional employees
Educate
Identify and solve process failure
Proactive
Built in Quality
Simplicity
Manage by Value Stream
4
Traditional Lean enterprise
What is Lean
TheLeanWayConsulting.com
What is Lean
Lean different than Six Sigma
Six Sigma is about variation reduction
Six Sigma is mostly project based
Six Sigma is better used as a set of tools and project management method
Lean is a management system
Lean is an orientation
Muda – Waste
Mura – Uneven Flow
Muri – Overburdening
Lean done correctly will change a culture
TheLeanWayConsulting.com
Not Getting Results
2% of companies that do Lean get the expected results from it*
17.8% say continuous improvement programs led to major increases in
productivity**
82% of companies doing Lean say adopting significant culture change is the #1
challenge***
42% say top management commitment is the #1 Challenge***
52% want to implement Culture Changes for Continuous Improvement as
Strategic priority***
*2008 Industry Week Survey
**2007 IndustryWeek/Manufacturing Performance Institute Census of Manufacturers
**The Lean Benchmark Aberdeen Group
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Why?
•Developing a Strategy for Lean
•Effectively executing the strategyStrategy
•Moves too slow
•A few at the top trying to convince others to adoptMomentum
•“Not my job” or “Not real work” perception
•Focus on compliance vs. commitment
•Focus on attitudes and procedures vs actions and outcomes
•Natural immune response occurs
Behaviors
TheLeanWayConsulting.com
Tools
Cultural Analysis
Project Success Scorecard
Rate of Change Formula
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•True information kept secret at times
•Sharing information my harm or help me
•Decisions made based on “what’s best for me”
•Information does not flow and is kept oneself
•Feeling of sharing the information will not make a difference
•Decisions based on what top management wants and everyone else follows.
•Information valued only from a chosen few•Decisions made by a chosen few
•Information shared openly and freely
•Decisions made through sharing viewpoints
Collaborative Hero Based
PoliticalCommand
and Control
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Examples
1. Supervisor publicly ridicules line workers, line workers don’t mention say anything during production meetings, and any feedback is dismissed by the supervisor
2. Example conversations
1. Manager: “I can trust Rob, he’ll get this done”
2. Consultant: “Rob is overwhelmed and you can give this to Carol who seems capable”
3. Manager: “I’ll ask Rob what he thinks about Carol and if she’s capable since he’s mentoring her.”
3. CEO travels for sales calls regularly and is not in the office for day to day operations. When she meets with her direct reports 1x1 she will hear about what others executives are doing wrong and what is going on behind her back.
4. Surgeons, nurses, administrators, technicians, support functions, and vendors are brought into the discussion of how we can decrease the wait time for patients waiting for a special surgery. Rank is left at the door and there is open and clear communication with trust amongst all parties.
TheLeanWayConsulting.com
Scenarios That Work
IDEAL
SECONDARY
OUTLIER
Collaborative
Collaborative
Hero Based
Collaborative
Collaborative
Any other Culture
Hero Based
Hero Based
Political
Collaborative
C&C
Collaborative
Upper Culture
Direct Culture
Example 1Anvil’s ‘R’ Us
Largest customer Wyle E. Coyote
Wyle making suppliers go Lean
Leader sends mangers to training, hire a person “who has done Lean”
Opportunistic approach
First three projects successful, after that projects slowed
New customer – Black Smith Intl.
Shift to production and less problem solving
Team looses employees during the transition due to changing working conditions
Performance suffers to Wyle E. , on time delivery from 98% to 87%
In danger of loosing Wyle E. as a customer
TheLeanWayConsulting.com
Scenarios That Work
IDEAL
SECONDARY
OUTLIER
Collaborative
Collaborative
Hero Based
Collaborative
Collaborative
Any other Culture
Hero Based
Hero Based
Political
Collaborative
C&C
Collaborative
Upper Culture
Direct Culture
C&C
Hero Based
Example 2
General Hospital
MRI unit needs help with their patient wait times (HCAPS)
Seven distinct departments responsible for MRI unit
Hospital trying to do Lean and has a PMO office to deploy Lean
PM brought into the organization to help solve the problem
PM presents there is no single silver bullet and it’s a complex system of challenges
Management team doesn't know how to move forward
TheLeanWayConsulting.com
Scenarios That Work
IDEAL
SECONDARY
OUTLIER
Collaborative
Collaborative
Hero Based
Collaborative
Collaborative
Any other Culture
Hero Based
Hero Based
Political
Collaborative
C&C
Collaborative
Upper Culture
Direct Culture
Political
Hero Based
TheLeanWayConsulting.com
Scorecard Do you have a sponsor who is engaged and willing to give space for the team
to create a new environment? (Y/N)
Can you specify a scope of an area that you would like to improve? (Y/N)
Is there a performance challenge in the area? (Y/N)
What is your management culture? (1= Command and Control, 4 = Hero based 8 = Political gaming, 12 = Collaborative)
How are you planning to engage your employees? (1= Project leader with small team, 4= Project leader with large team, 8 = Kaizen events or other similar collaborative events, 12 = Collaborative events with daily management process to develop capacity)
How is process improvement viewed in your organization? (1= A way to save money, 4= A way to add value to the customer +#1 , 8= A way to build capacity and create a learning environment + #1, 12 = Use it as a strategic advantage + #1, #4,#8)
How long has the challenge been going on? (1= 1 month – 12= one year+)
Is there a financial estimate to the benefit that you would gain? (0 = Unknown, 1 = 5yr+ payback, 4= 3-5yr payback,8= 1-3yr payback, 12= <1yr payback)
* All Y/N must be Yes and a minimum score of 30 recommended (max 60)
TheLeanWayConsulting.com
Transformation Rate of Change
10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%
10% 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
15% 1.5 2.25 3 3.75 4.5 5.25 6 6.75 7.5 8.25 9 9.75 10.5 11.25 12 12.75 13.5 14.25 15
20% 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
25% 2.5 3.75 5 6.25 7.5 8.75 10 11.25 12.5 13.75 15 16.25 17.5 18.75 20 21.25 22.5 23.75 25
30% 3 4.5 6 7.5 9 10.5 12 13.5 15 16.5 18 19.5 21 22.5 24 25.5 27 28.5 30
35% 3.5 5.25 7 8.75 10.5 12.25 14 15.75 17.5 19.25 21 22.75 24.5 26.25 28 29.75 31.5 33.25 35
40% 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40
45% 4.5 6.75 9 11.25 13.5 15.75 18 20.25 22.5 24.75 27 29.25 31.5 33.75 36 38.25 40.5 42.75 45
50% 5 7.5 10 12.5 15 17.5 20 22.5 25 27.5 30 32.5 35 37.5 40 42.5 45 47.5 50
55% 5.5 8.25 11 13.75 16.5 19.25 22 24.75 27.5 30.25 33 35.75 38.5 41.25 44 46.75 49.5 52.25 55
60% 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60
65% 6.5 9.75 13 16.25 19.5 22.75 26 29.25 32.5 35.75 39 42.25 45.5 48.75 52 55.25 58.5 61.75 65
70% 7 10.5 14 17.5 21 24.5 28 31.5 35 38.5 42 45.5 49 52.5 56 59.5 63 66.5 70
75% 7.5 11.25 15 18.75 22.5 26.25 30 33.75 37.5 41.25 45 48.75 52.5 56.25 60 63.75 67.5 71.25 75
80% 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
85% 8.5 12.75 17 21.25 25.5 29.75 34 38.25 42.5 46.75 51 55.25 59.5 63.75 68 72.25 76.5 80.75 85
90% 9 13.5 18 22.5 27 31.5 36 40.5 45 49.5 54 58.5 63 67.5 72 76.5 81 85.5 90
95% 9.5 14.25 19 23.75 28.5 33.25 38 42.75 47.5 52.25 57 61.75 66.5 71.25 76 80.75 85.5 90.25 95
100% 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
% of Participants
%
T
i
m
e
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Summary
Cultural Analysis Tool
1. What is the direct and upper cultures today
2. Where do you need to take them
3. Find ways to enable those changes
Scorecard
30/60 means you can feel confident in the area you are trying to change
Rate of Change
Try to keep your projects in the green zone if you are doing a Lean transformation
TheLeanWayConsulting.com
Questions?
Contact Information
Ankit Patel
Managing Director
The Lean Way Consulting
404.855.1634
www.TheLeanWayConsutling.com
Next Webinar – May 14 , 2014 @ 2 pm ET.
“How to get navigate and overcome
the immune response to change”
