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Introduction to LEAN
(for Leaders) March 2nd, 2018
Ian Marshall – Lean Champion
Canadian Manufacturers & Exporters
Objective
Ian Marshall – Canadian Manufacturers & Exporters
‘Discuss the key elements of LEAN Strategy’
Ian Marshall
Ian Marshall – Canadian Manufacturers & Exporters
In terms of LEAN/Continuous Improvement, how would you describe your organization’s level of maturity: Beginner
Intermediate
Advanced
Introduction
Ian Marshall – Canadian Manufacturers & Exporters
Results
Years 2-4 5-10
Intermediate
Beginner
Advanced
What is LEAN?
Ian Marshall – Canadian Manufacturers & Exporters
LEAN Definition
“LEAN is an Operations’ Strategy with a new set of Values to Engage People in Continuously Improving Safety, Morale, Quality, Cost and
Productivity.” Jeffrey Liker, author of The Toyota Way
Ian Marshall – Canadian Manufacturers & Exporters
Toyota Motor Company
St. Boniface Hospital Manitoba Housing
Winnipeg Police Service
New Flyer Industries
Ian Marshall – Canadian Manufacturers & Exporters
What level of improvement has your organization experienced with LEAN transformation? Can you quantify? <5% 5-20% >20%
Safety
Morale
Quality
Cost / productivity
Delivery / timeliness / responsiveness
Results So Far…
Ian Marshall – Canadian Manufacturers & Exporters
What is Culture?
Ian Marshall – Canadian Manufacturers & Exporters
Culture Definition
“Culture is the sum of people’s habits related
to how they get their work
done.”
Ian Marshall – Canadian Manufacturers & Exporters
David Mann, author of Creating a Lean Culture
Culture Definition
“Culture is not something to target
for change… An organizations
culture is the result of it’s Management
System!”
Ian Marshall – Canadian Manufacturers & Exporters
David Mann, author of Creating a Lean Culture
LEAN Transformation
“So many LEAN implementations fail, because Lean is too
easy!”
Ian Marshall – Canadian Manufacturers & Exporters
David Mann, author of Creating a Lean Culture
LEAN Transformation
“20% of LEAN Transformation is physical: layout, flow, pull, visual management,
daily huddles, standard work”
“80% is less obvious and more demanding!”
Ian Marshall – Canadian Manufacturers & Exporters
David Mann, author of Creating a Lean Culture
The Toyota Way
“These (concepts) are things companies (people) do not normally do. It’s difficult
to live the Toyota way of production.”
Fujio Cho, Chairman of Toyota
Ian Marshall – Canadian Manufacturers & Exporters
LEAN Transformation
“Managers must change from the habitual focus on results to a different
and less obvious focus on process”
Ian Marshall – Canadian Manufacturers & Exporters
David Mann, author of Creating a Lean Culture
1. VALUE DRIVEN PURPOSE
“What is our value driven purpose?”
5. CULTURE
“What is the basic thinking/mindset/assumptions
that underlie the transformation?”
2. PROCESS
“What is the work
to be done?”
3. PEOPLE
CAPABILITY
“What capabilities
do we need in our
people?”
4. LEADERSHIP
“What is the
management
system? What
behaviors are
required?”
Ian Marshall – Canadian Manufacturers & Exporters
John Shook – LEAN Transformation Model
Click on this link to hear John Shook explain his “LEAN Transformation Model”:
https://www.youtube.com/watch?v=oeRXOT8lv0g
Three Types of Improvement
Kaikaku - radical change
Kaizen Blitz - cross functional improvement
Kaizen – (daily) improvement
Ian Marshall – Canadian Manufacturers & Exporters
“The LEAN Turnaround”
Author Art Byrne
Ian Marshall – Canadian Manufacturers & Exporters
Management Fundamentals
Ian Marshall – Canadian Manufacturers & Exporters
• LEAN is the Strategy • The main objective is to deliver value to the customer • Don’t just do LEAN, be LEAN
• Lead from the Top • LEAN transformation is hard to do! • LEAN transformation is a multiyear effort
• Transform the People • Transforming the way people think and act is the real key to success • The Kaizen Team approach gives everyone a voice • Begin with a promise that nobody will be laid off as a result of LEAN
Art Byrne – author of The LEAN Turnaround
How far is your organization on…
LEAN as the (operations) Strategy
Engagement of the people (re LEAN)
Leadership from the top (re LEAN)
Progress so far…
Ian Marshall – Canadian Manufacturers & Exporters
LEAN Fundamentals
Ian Marshall – Canadian Manufacturers & Exporters
• Work to Takt time • Time available/daily customer demand = takt time
• One-Piece Flow • One-piece flow brings gains in quality and productivity
• Standard Work • Standard work encompasses the work, the work sequence and the tools, equipment, materials and time needed to do the work
• Connect to the customer using a pull system • Must establish takt time, one piece flow and standard work first!
Art Byrne – author of The LEAN Turnaround
Henry Ford on Standards
• “To standardize a method is to choose out of the many methods
the best one, and use it. Standardization means nothing unless it means standardizing upward.
• Today’s standardization, instead of being a barricade against
improvement, is the necessary foundation on which
tomorrow’s improvement will be based.
• If you think of “standardization” as the best that you know today,
but which is to be improved tomorrow - you get somewhere. But
if you think of standards as confining, then progress stops.”
Henry Ford - Today & Tomorrow 1924
Ian Marshall – Canadian Manufacturers & Exporters
How far is your organization on…
Working to Takt time
One-piece flow
Standard work
Pull
Progress so far…
Ian Marshall – Canadian Manufacturers & Exporters
Arctic Cat, St. Cloud, MN
• Communicate the “why”
• Create the environment
• Deliver results
Ian Marshall – Canadian Manufacturers & Exporters
Elements of LEAN Strategy
Three things to consider
Expected Results from
LEAN Transformation
Ian Marshall – Canadian Manufacturers & Exporters
• Lead times from weeks to days • Inventory turns quadrupled • 15% - 20% productivity improvement per year • 50% reduction in defects per year • 50% reduction in floor space • 4% - 8% improvement in gross margin • Working capital as a percent of sales halved • Increased growth and wealth • Creating a learning culture
Art Byrne – author of The LEAN Turnaround
Communicate the “why”
Ian Marshall – Canadian Manufacturers & Exporters
“Décor’s mission is to create cabinets people love, bring light to the
world and the community, to build life into people’s lives and to leave behind
more then we take” Larry Dyck, President & CEO, Décor Cabinets
Ian Marshall – Canadian Manufacturers & Exporters
Video: Colleen Abdoulah, Leadership and Culture
Transformation
Communicate the “why”
Colleen Abdoulah, President & COE, WOW Communications
Click on this link to hear highlights from the LEAN2015 Keynote Speakers:
https://www.youtube.com/playlist?list=PLhr-OrB37J-
OiZA5lLFExypVTpJyJraLs
• Communicate the “why”
• Create the environment
• Deliver results
Ian Marshall – Canadian Manufacturers & Exporters
Elements of LEAN Strategy
Three things to consider
Create the environment
Ian Marshall – Canadian Manufacturers & Exporters
Art Byrne – author of The LEAN Turnaround
• Communicate the ‘Why’ • Explain ‘why’ your doing this and ‘what’ you expect to get as a result
• Reorganize your people around Value Streams • The structure at the top can stay the same, but the approach changes • Focus on the way you structure value adding activities
• Create a Kaizen promotion office • The head of the Kaizen Promotion Office is a high-level position
• Add some LEAN consulting help
• LEAN consultants are more hands-on trainers and coaches
Ian Marshall – Canadian Manufacturers & Exporters
Sales Engineering
Planning
Purchasing Production
Parts Assembly Paint
Finishing Shipping
C
a
s
h
Q
u
o
t
e
Create the environment
Organize Around Value Streams
Leaders Role
Ian Marshall – Canadian Manufacturers & Exporters
Art Byrne – author of The LEAN Turnaround
• Set direction and build organizational capability to solve problems at the root cause
• Support through daily gemba walks and frequent reviews of the key performance indicators (KPIs)
• Identify breakthrough opportunities and set stretch goals to achieve them
• Show respect for all your associates
Go See
Ask Why
Show Respect Fujio Cho, Chairman of Toyota
Three keys
to
leadership
Leaders Role
Set Stretch Goals
Ian Marshall – Canadian Manufacturers & Exporters
VIBCO Vision - “Same day, next day”
Karl Wadensten, President/CEO VIBCO Inc.
How clear is your organization’s Vision…
Does it challenge, inspire and motivate
Does it provide direction
Progress so far…
Ian Marshall – Canadian Manufacturers & Exporters
Leaders Role
Establish Values and Expectations
Core Values: • People • Customers • Kaizen
Employee Expectations: • Tell the truth • Be fair • Try new ideas • Ask why • Keep your promise • Do your share
Ian Marshall – Canadian Manufacturers & Exporters
Art Byrne, author of The LEAN Turnaround
Ian Marshall – Canadian Manufacturers & Exporters
http://paulakers.net/books/2-second-lean-resources/2sl-our-top-lean-videos
Paul Akers – FastCap.com
Leaders Role
Daily Gemba Walk
• Keep Lean Simple
• Eliminate waste by fixing what ‘bugs’ you
• 3S’ing: Sweeping – Sorting – Standardizing
• All waste comes from overproduction
• Wash your hands 10X per day – learn by doing
• We are all Process Engineers
• Goal – every person, everything, everyday…
Leaders Role
Daily Gemba Walk
“It’s better to ask the right question, than to give
the right answer”
“The moment you tell someone to do
something, you take away their
responsibility” John Shook, President Lean Enterprise Institute
Ian Marshall – Canadian Manufacturers & Exporters
Leaders Role
Ian Marshall – Canadian Manufacturers & Exporters
0% 100% 50%
Daily Management
Kaizen
Policy Deployment Top Management
Middle Management
Supervisor
Frontline
Associates
Time
Art Byrne – author of The LEAN Turnaround
Lean Sensei International
Leaders Role
Policy Deployment
Frontline Associate
Supervisor
Middle Manager
Executive
CEO
Goals
&
Strategy
Plans
&
Results
• Communicate the “why”
• Create the environment
• Deliver results
Ian Marshall – Canadian Manufacturers & Exporters
Elements of LEAN Strategy
Three things to consider
Deliver results
“Begin with stability producing lean projects and use them to prepare the
ground for lean management”
Ian Marshall – Canadian Manufacturers & Exporters
David Mann, author of Creating a Lean Culture
Deliver results
Ian Marshall – Canadian Manufacturers & Exporters
Before After
LEAN Greenbelt two-day 5S Kaizen Blitz
Deliver results
Ian Marshall – Canadian Manufacturers & Exporters
“Wherever there is a customer, there is always a value stream… your challenge is to see it”
Jim Womack – author of Lean Thinking
Bottlenecks
Cycle Time
Issue Root Cause Solution
Process Step
Process
Focus
3. Leader Standard Work
(sustaining behaviour)
1. Visual Controls
(frequent focus on
process health)
2. Standard (Visible)
Accountability
“If the Lean Management System is healthy
Then the Lean Production System is healthy”
Ian Marshall – Canadian Manufacturers & Exporters
LEAN Management System
David Mann
Expected
vs.
Actual
Visual Controls
Ian Marshall – Canadian Manufacturers & Exporters
Visual Controls
Ian Marshall – Canadian Manufacturers & Exporters
“Visual controls connect people to
processes and reflect adherence”
David Mann, author of Creating a Lean Culture
Hour By Hour Actual to Plan Progress Chart
“The status of virtually every process should be visible in lean management”
Accountability Process
Ian Marshall – Canadian Manufacturers & Exporters
Traditional management: “Did you meet the
schedule?”
Lean management: “What caused the problem
that interrupted the process and who will do
what to fix it?” David Mann, author of Creating a Lean Culture
Daily Huddle – Shift Plan & CI
Leader Standard Work
“The closer your position to Production, the more time you should spend
watching the process”
Ian Marshall – Canadian Manufacturers & Exporters
Leaders Role: • Establish the process • Monitor adherence • Improve the process
David Mann, author of Creating a Lean Culture
Leader Standard Work
Go to visuals regularly to verify they are being completed
Conduct Standard Accountability meetings around visuals Ask about ‘misses’ Make assignments to understand and act on the
causes of the misses Follow-up on current and overdue assignments
Ian Marshall – Canadian Manufacturers & Exporters
David Mann, author of Creating a Lean Culture
Mitsubishi Caterpillar
LEAN Management System
Ian Marshall – Canadian Manufacturers & Exporters
Tier 1 – Team Leader lead • Big 5 - S, M, Q, C, D…focus on abnormality
Tier 2 – Supervisor lead • Drive improvement
Tier 3 – Value Stream Leader lead • Ensure cross functional support
Tier 4 – Plant Director/Ops Manager lead • Audit the system
Ian Marshall – Canadian Manufacturers & Exporters
Genie’s LEAN Management System
Ian Marshall – Canadian Manufacturers & Exporters
Video: Jim Lancaster LEAN Management
LEAN Management
Jim Lancaster, President & COE, Lantech and author of The Work of Management
https://www.youtube.com/watch?v=mxiNGxdAMbw
Wilbert James President - TMMK
• Listen to and learn from the people who make the product • Everyone’s job is to look for improvement – give them the tools, and show them you care • Create an environment where people can enjoy their work…
Conclusion!
