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ILC RoundtableAligning Performance MeasuresJESSE DEPRIEST
13 NOVEMBER 2018
Big Idea
Align company goals (Strategy)
with the plans of middle management
(Tactics)
and work performed by employees (Processes)
(Operations)
to ensure that everyone is pulling in the same direction
at the same time.
VALUE to CUSTOMER
JUST IN TIMEFLOW / PULL
(TPS)
JIDOKAQuality at the Source
ZERO DEFECTS ACCEPTEDABNORMALITY CONTROL
ANDON / LINE STOP(TPQ)
STANDARDIZATION + PROBLEM SOLVING4C and A3 Thinking. KATA. Visual Management / Order / 5S
TEAMS
DAILY MANAGEMENT SYSTEM
LEADERSHIP BEHAVIORS
KAIZEN
STABILITY in the 4M’s… Man / Woman, Machine, Method, MaterialTotal Productive Maintenance (TPM)
Leadership Commitment & Adaptation
THE HOUSE OF LEAN
Highest QualityLowest CostShortest Lead TimeReliable Delivery
BEST SAFETYHigh Morale
HEIJUNKA (LEVELING)S&OP or SIOP
Value Stream Mapping
TAKT TIMESMED
KANBANWIP regulation
Man / MachineseparationPOKA YOKE
PROCESS CONTROLY=Fx
Standardized Work
The
wor
ld o
f pro
blem
solv
ing.
.. … to im
prove the ‘systems’
KPI’s
KPI’s
KPI’s
SPC
TQM
DMAIC
Big Picture1. What are we trying to achieve?
(the Challenge, Target, Goal, Objective)and WHY? …
2. With what method?3. How will you know?
A couple of ideas… or methods …
to help get aligned.
20 Keys of Lean Iwao Kobayashi
HOSHIN KANRI (aka, Strategy, or Policy Deployment)
Hoshin Kanrithe X-Matrix
CASCADING A3’s
CASCADING KPI’s (SQDCP)Safety Quality Delivery Cost
ProductivityPeople
MAIN MAIN MAIN MAIN MAIN
SUB SUB SUB SUB SUB
PROCESS PROCESS PROCESS PROCESS PROCESS
A3, A3 A3, A3 A3, A3 A3, A3 A3, A3
Safety Quality Delivery CostProductivity
People
MAIN MAIN MAIN MAIN MAIN
SUB SUB SUB SUB SUB
PROCESS PROCESS PROCESS PROCESS PROCESS
A3, A3 A3, A3 A3, A3 A3, A3 A3, A3
Safety Quality Delivery CostProductivity
People
MAIN MAIN MAIN MAIN MAIN
SUB SUB SUB SUB SUB
PROCESS PROCESS PROCESS PROCESS PROCESS
A3, A3 A3, A3 A3, A3 A3, A3 A3, A3
TIER 3, CO LEADERSHIP
TIER 2, Management
Tier 1, Value CreatorsProcess
CASCADING KPI’s
CASCADING KATA
Conduct Experimentsto get there
Grasp the Current
Condition
Establish your Next
TargetCondition
Get the Direction orChallenge
1
2
3
4
The VisionTrue North
Kata1 (方) – Suffix Meaning "Way of Doing"
The Improvement Kata model comes from research into how Toyota manages people, which is summarized in the book “Toyota Kata”
VisionNext
TargetCondition
CurrentCondition Obstacles Challenge
CONNECTING STRATEGY & EXECUTION
BY MIKE ROTHER 15
Execution Strategy
Leaders establish the organizationʼs strategic concept (the “rallying point” or overall direction)
Managers develop people by coaching application practice of the Improvement Kata in the direction of the challenge
The role of Challenge in an organization
PLANNING EXECUTING
Understandthe Directionor Challenge(from level above)
Grasp theCurrent
Condition
Establish the Next Target Condition
ExperimentToward the
Target Condition
Current StateValue Stream
Mapping
Future State Value Stream
Mapping
Value StreamLevel
ProcessLevel
Company orOrganizationLevel
THE IK PATTERN CONNECTS THE LEVELSA Target Condition at one level is the Direction for the next level
Longer-Cycle Experiments
Short-Cycle Experiments
BY MIKE ROTHER 16
1 2 3 4
~3-5 year
1-2 year
90-day cycles
Process Team A
Process Team B
Process Team C
VisionNext
TargetCondition
BY MIKE ROTHER 17
TargetCondition
NextTarget
ConditionTarget
Condition
NextTarget
ConditionTarget
ConditionTypically a6-monthto 3-yeartime frame
Challenge
THE ROLE OFVALUE STREAM MAPPINGThis is a main intended role for VSM
https://www.slideshare.net/KarenMartinGroup/clarity-first-process-performance
CLARITYSimple, easy to understand –
PurposeProcessMetrics
SO we can see the truth.
behaviors
VALUE to CUSTOMER
JUST IN TIMEFLOW / PULL
(TPS)
JIDOKAQuality at the Source
ZERO DEFECTS ACCEPTEDABNORMALITY CONTROL
ANDON / LINE STOP(TPQ)
STANDARDIZATION + PROBLEM SOLVING4C and A3 Thinking. KATA. Visual Management / Order / 5S
TEAMS
DAILY MANAGEMENT SYSTEM
LEADERSHIP BEHAVIORS
KAIZEN
STABILITY in the 4M’s… Man / Woman, Machine, Method, MaterialTotal Productive Maintenance (TPM)
Leadership Commitment & Adaptation
THE HOUSE OF LEAN
Highest QualityLowest CostShortest Lead TimeReliable Delivery
BEST SAFETYHigh Morale
HEIJUNKA (LEVELING)S&OP or SIOP
Value Stream Mapping
TAKT TIMESMED
KANBANWIP regulation
Man / MachineseparationPOKA YOKE
PROCESS CONTROLY=Fx
Standardized Work
23