Jeffrey liker - Conference on Lean Leadership

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Dr. Jeffrey K. Liker is Professor of Industrial and Operations Engineering at the University of Michigan and a professional speaker and advisor.

On Friday 31 May 2013 Jeffrey Liker was speaking about Lean Leadership in front of more than 150 Scandinavian Lean enthusiasts.

15 years ago ”Lean Thinking” was published and started a wave of Japanese inspired process change. Through the years we have all – in the best Lean manner – made our mistakes, learned from them and, thereby, come closer to perfection. Probably, we have also realised that the tools do not make all that much difference without the people to employ them. Thereby, Lean Leadership has finally taken the position as the key to succeeding in a Lean transformation.

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Jeffrey liker - Conference on Lean Leadership

  1. 1. Processes Liker, Lean & Leadership Conference on Lean Leadership 2013 – Process Improvement
  2. 2. Liker, Lean & Leadership Program 09:00 – 09:10 Welcome & Program 09:10 – 09:30 Viewpoint & Motivation Michael Leck, Implement Consulting Group 09:30 – 10:15 Novo Nordisk Lean Leadership Program Claus Hasselbalch, Novo Nordisk 10:15 – 10:30 Short Coffee Break 10:30 – 11:15 Developing Lean Leaders the Toyota Way Jeffrey Liker, Liker Leadership Institute 11:15 – 11:30 Exercise – where are we today? 11:30 – 11:55 Input from Audience & Reflections by Liker Jeffrey Liker, Liker Leadership Institute 11:55 – 12:00 Wrap-up Michael Leck, Implement Consulting Group 12:00 – 12:30 Light Lunch & Networking 2
  3. 3. Viewpoint & Motivation Michael Leck 3
  4. 4. Novo Nordisk Lean Leadership Claus Hasselbalch 4
  5. 5. Novo Nordisk’s cLEAN® journey Lean Leadership at Novo Nordisk The Apis bull logo is a registered trademark of Novo Nordisk A/S Claus Hasselbalch Corporate Vice President May 31st, 2013
  6. 6. 1. 2. 3. 4. Novo Nordisk Our Lean Journey PS@shopflor, focus on shopfloor leadership Drivning a culture of continous improvements through leadership
  7. 7. Slide no 7 • A world leader since 1923 • in diabetes care • in insulin • in injection devices • Also leading positions in: • Haemostasis Management • Growth Hormone Therapy • Hormone Replacement Therapy (HRT) • Headquartered in Denmark, Novo Nordisk employs approximately 34,700 employees in 75 countries, and markets its products in 190 countries.
  8. 8. Slide no 8 The ‘Rule of Halves’ According to the rule of halves*, only around 6% of people with diabetes live a life free from diabetes-related complications. * Hart J.T., Rule of Halves: implications of increasing diagnosis and reducing dropout for future workload and prescribing costs in primary care, Br J Gen Pract 1992, March; 42(356):116–119, and W.C.S. Smith, A.J. Lee, I.K. Coombie, H. Tunstall-Pedoe, Control of blood pressure in Scotland: The rule of halves, Br. Med. J, 300 (1990): 981–983. ** Actual rates of diagnosis, treatment, targets and outcomes vary in different countries.
  9. 9. • Responsible for the supply chain of all products sold by Novo Nordisk • Approximately 30% of all Novo Nordisk employees • • Denmark: ~6.5000employees Outside Denmark: ~3.000 employees • Product Supply has facilities in 6 countries across the globe • • • • • • 6.320 FTEs* 520 FTEs* Denmark Chartres Clayton • • • Formulation & filling Assembly Packaging 810 FTEs* • • • Formulation & filling Assembly Packaging Tianjin Koriyama 680 FTEs* • • • Montes Claros February 2012 *FTEs: Full Time Employees ** Full time employees & temps API production Formulation & filling Tabletting Assembly Packaging Device & needle manufacturing Formulation & filling Assembly Packaging 120 FTEs** 790 FTEs* • • • Device manufacturing Packaging Filling plant project • Packaging
  10. 10. Product Supply - cLEAN® strategy 07 June 2013 10 Slide no 10 Performance Cont. impr. Wheel cLEAN® House Master 3star cLEAN® Leadership cLEAN® Roll-out cLEAN® Temple Flow Adrenalin Shots PS@SF Flow Pilots Site Plans Academy COGS Plans 2003 - 2004 2005 - 2006 2007 - 2008 2009 - 2010 2011 - 2012 Time
  11. 11. Slide no 11
  12. 12. Slide no 12
  13. 13. Slide no 13 PS@ShopFloor - from fire fighting to continuous improvements culture Continuous Improvement s Fire fighting culture Solve Share Identify problems early Remove the root cause of the problem Anchor learnings in the organisation Identify problems late Fight symptoms See Memorize solutions
  14. 14. Slide no 15 PS@ShopFloor is an intense coaching driven 14 weeks development and implementation project Maturity Mapping & Data Analysis See WS1: Daily Diary planned and 3C introduced cLEAN® Leadership Maturity Model Performance Board Level 1 Level 2 Level 3 Level 4 Ad hoc Systematic Consistent Empowerment Objective facts identified through data digging Performance Board Relevant subjective experiences selected Biggest problem identified using data analysis Possible actions written on board before meeting Leader role at meeting Leader give relevant but non-KPI related information Leader ask questions to improve explanation of data Leader ask questions to ensure problems will be addressed Leader ask questions to improve the proposed solutions Information exchange Focus on data explanation. Actions taken on some problems. Actions taken consistently to address problems Actions taken to improve problem solving Concern 3C Problem Solving Employee preparation Outcome of meeting Leader address Concern by coincidence Leaders choose Concern at board meeting Leader prioritize concern based on business criticality Employees initiate 3C based on frequent performance review Cause Cause analysis only based on assumptions not made on shop floor Process Confirmation Daily Diary Countermeasure Only Containment action taken, meaning problem may reoccur Countermeasures prevent the particular problem from reoccurring Countermeasures prevent similar problems from (re-)occurring Leader try to remember solution Solution shared verbally (e.g. at board meeting next day) Solution anchored in area across shifts (e.g. 1PL, Poka-Yoke) Solution anchored in other areas with similar problem Preparation Systematic trigger mechanism for when to do PC PC based on explicit standard PC is done away from shop floor and based on asking questions only PC is done by asking questions on the shop floor PC is based on observation on the shop floor Action agreed verbally Written action to solve deviation Explanation of reason why particular standard is important Deviation is treated as a 3C (at level 3+) Leader give feedback to create reflection Process confirmation PC is based on observing the person doing different processes Deviation response Share Problem solving Leaders identify opportunities to use PC to develop employees Execution Solve WS3: Training in systematic problem solving Employees drive 3C to PoC and leaders coach to find direct cause Leader Process Confirm on an ad hoc basis Leader ask questions to inspire continuous improvement Leader role Leader behavior Solution based on best guess (e.g. adjust and hope) Go-look-see performed to understand Potential Direct Causes investigated Point-of-Cause (PoC) with employees Sharing 1 WS2: KPI structure is updated Leader ask questions to get information Leader use interaction to set direction Leaders have individual criterias for when to place meetings and activities WS4: System for process confirmation defined A synchronized daily diary exist and Leaders and support functions adhere Leaders train employees in freeing up each leader try to follow it to the daily diary time to problem solve 3 7 10 Sustainability 14
  15. 15. Slide no 16 - Leaders on shop floor 8:00-12:00 The purpose of the Daily Diary is to allow leaders to have dedicated time to see problems early, solve them to root cause level and share solutions systematically at the shop floor. This will Strengthen our culture of continuous improvements. 08:00 Performance Boards to see problems early in the process 10:00 12:00 Problem Solving to solve problems to the root cause Process Confirm to share learnings systematically
  16. 16. Slide no 17 Roles & Responsibilities in a PS@Shopfloor Leader’s leader: Sets direction and guides through process confirmation. Motivates to continuously improve. LEADER's LEADER Coach: Supports and challenges the leader in his/her development. Helps leader to navigate to keep on track. COACH LEADER Leader in scope: Works with Performance Boards, Problem solving and Process confirmation (See-SolveShare) in the Daily Diary related to training plan Employees: Are involved as KPI-champions, problem solvers and developed through process confirmations
  17. 17. Slide no 18 A detailed Maturity Model guide the leaders and ensure focus on personal development cLEAN® Leadership Maturity Model Performance Board 3C Problem Solving Level 3 Level 4 Ad hoc Systematic Consistent Empowerment Employee preparation Relevant subjective experiences selected Objective facts identified through data digging Biggest problem identified using data analysis Possible actions written on board before meeting Leader role at meeting Leader give relevant but non-KPI related information Leader ask questions to improve explanation of data Leader ask questions to ensure problems will be addressed Leader ask questions to improve the proposed solutions Outcome of meeting Information exchange Focus on data explanation. Actions taken on some problems. Actions taken consistently to address problems Actions taken to improve problem solving Leader address Concern by coincidence Leaders choose Concern at board meeting Leader prioritize concern based on business criticality Employees initiate 3C based on frequent performance review Cause Cause analysis only based on assumptions not made on shop floor Countermeasure Solution based on best guess (e.g. adjust and hope) Only Containment action taken, meaning problem may reoccur Countermeasures prevent the particular problem from reoccurring Countermeasures prevent similar problems from (re-)occurring Sharing Process Confirmation Level 2 Concern Daily Diary Level 1 Leader try to remember solution Solution shared verbally (e.g. at board meeting next day) Solution anchored in area across shifts (e.g. 1PL, Poka-Yoke) Solution anchored in other areas with similar problem Preparation Leader Process Confirm on an ad hoc basis Systematic trigger mechanism for when to do PC PC based on explicit standard Leaders identify opportunities to use PC to develop employees Execution PC is done away from shop floor and based on asking questions only PC is done by asking questions on the shop floor PC is based on observation on the shop floor PC is based on observing the person doing different processes Deviation response Action agreed verbally Written action to solve deviation Explanation of reason why particular standard is important Deviation is treated as a 3C (at level 3+) Leader give feedback to create reflection Leader ask questions to inspire continuous improvement Leader role Leader behavior Go-look-see performed to understand Potential Direct Causes investigated Point-of-Cause (PoC) with employees Leader ask questions to get information Leader use interaction to set direction Leaders have individual criterias for when to place meetings and activities Employees drive 3C to PoC and leaders coach to find direct cause A synchronized daily diary exist and Leaders and support functions adhere Leaders train employees in freeing up each leader try to follow it to the daily diary time to problem solve
  18. 18. Slide no 19 Preconditions for a level 4 Performance board 1 2 3 4 5 Fire fighting Shopfloor management Create army of problem solvers Lean culture E: Mark was ill and the machine kept stopping TL: Lets put full focus on getting back on track • • • • Visual management KPI Ch: TPU blockage caused 6 x 30 min stop TL: Fortunately we don’t see the problem now KPI Ch: TPU blockage caused 6 x 30 min stop TL: Let’s go-looksee to prevent re-occurrence OC: Untrained empl. caused 30 min. stop (1PL) TL: Could we make mistakeproof solution? OC: 2 min stop: Poka-Yoke made to prevent block TL: Would this Poka-Yoke be useful elsewhere? Performance is reviewed frequently beyond the board meeting Problems are solved autonomously at the lowest possible level Countermeasures are implemented to prevent reoccurrence PB meeting challenges priorities and improves quality of countermeasures E: Employee, KPI Ch: KPI Champion, OC: Operating Coordinator, TL: Team leader, TPU: Tray-pallet unit
  19. 19. PS@ShopFloor project in site Montes Claros In a department with production lines not meeting performance targets, packaging lines performing 35% below target, and a new department manager—a different way of doing business was needed in order to succeed What did we do? What was the impact The ambition was to lower the variation in OEE on the FlexPen® lines to match the best in class in DFP. FlexPen® Packaging line Variation in OEE1 reduced by 2/3 OEE 1: 44% -> 89 % New standards were the foundation to execute the first PS@ShopFloor project in MoC. The project was executed by a PM from the cLO and dedicated resources from the site—who were trained to manage future PS@ShopFloor projects. “This PS@ShopFloor project unleashed the power of standardization, moving their performance from ‘worst to first’. Through coaching, leaders learned how to change the way they see and solve problems, with confirmation of the standard as the key to it all.” Ken Gray (KEG) SVP cLEAN® Partner DFP
  20. 20. Slide no 21 • ”We have leading KPI’s on our most important processes” • ”We have the possibility each day to give our attention to our biggest problem(s)” • ”We have a systematic approach to problem solving” • ”We learn from our problems” • ‘I have closer contact with my employees” • “My Role changed from ”problem solver” to coaching and sparring” • ”When I drive home from work, I feel much more satisfied!”
  21. 21. • Defining a business driver is key for the individual project success • But ensuring we stay at obtained maturity levels or further develop after project has ended is not institutionalized • We need more focus on the “why”, the principles behind, so that the tools do not become an end in themselves • Understading the role of the different leadership levels in Lean Leadership is part of the solution
  22. 22. Slide no 23 • A culture may be built from below but is modelled from above: • Leadership principles and behaviour at the top drive systems that drive use tools that drive behaviour on shopfloor • SO how leaders from the top behave drives the culture of continous improvements, respect, compliance etc. • and the leadership role is different at senior level vs. TL level • The senior leader should stay away from shopfloor problem solving!!
  23. 23. Slide No 24 QVP Seminar 2013 - Chartres
  24. 24. Slide no 25 To succeed two questions become critical as leaders to address: How am I role modelling principal behaviour? How am I through my leadership supporting continous improvements on shopfloor
  25. 25. Slide no 26 Culture CVP/ SVP VP/ Director TL Principles • “We set ambitious goals and strive for excellence” • “We optimise the way we work and strive for simplicity” • “We never compromise on quality” • We treat everyone with respect” Systems • Ensuring quality and progression in our A3s across teams • Ensuring that we have ressources and competencies present to solve our problems • Ensuring that we see and prioritise the right problems daily across teams Tools • Using performance boards to take actions on problems within the team • Using SPS to solve problems within the team • Using process confirmation to ensure standards are followed and improved within the team Results
  26. 26. Slide no 27
  27. 27. Degree of authenticity Slide no 28 Operations ’The incompetent Operations manager’ ’The corner office manager’ ’The micromanager’ Degree of Lean
  28. 28. Q and A
  29. 29. Coffee break BE BACK: 10:25 30
  30. 30. Developing Lean Leaders the Toyota way Jeffrey Liker 31
  31. 31. Developing Lean Leaders the Toyota Way Jeffrey K. Liker Professor, Industrial and Operations Engineering The University of Michigan President, Liker Lean Advisors CEO, Liker Leadership Institute ICG OPEX Conference May 31, 2013 Liker Lean Advisors, LLC
  32. 32. Toyota Way True North “The Toyota Way 2001 is an ideal, a standard and a guiding beacon for the people of the global Toyota organization.”
  33. 33. Lean Leadership Starts with Values TRUE NORTH VALUES Challenge Kaizen Mind Go and See Teamwork Respect Stretch and Develop Us to Creatively Reach the Goal Systematic Problem Solving that Never Ends Observe to Understand the Actual Situation Highly Developed Individuals Working toward a Goal People are our only appreciating asset Liker Lean Advisors, LLC
  34. 34. Lean Leadership Development Model Starts Here 1 Commit to Self Development Learn to live True North values through repeated Learning Cycles A P C D TRUE NORTH VALUES 4 Create Vision and Align Goals Create True North vision and align goals vertically and horizontally A P C A D Challenge Kaizen Mind Go and See Teamwork Respect 3 Support Daily Kaizen P C D 2 Coach and Develop Others A P C D Build local capability throughout for daily Management & Kaizen See and challenge true potential in others though selfdevelopment learning cycles
  35. 35. PDCA Problem Solving is the Core of What Leaders should Learn and Coach From Toyota Way to Continuous Improvement Liker Lean Advisors, LLC
  36. 36. Lean Processes reveal gaps between Current and Target Conditions Ideal “North Star” Creative Tension Problem solving Targets for Improvement Leader’s Challenge Current conditions Liker Lean Advisors, LLC
  37. 37. Challenge: Reduce U.S. Warranty $ at 3 Months in Service by 60% in 6 Years How do you do it? Percent Annual Warranty Reductions
  38. 38. Lean Leadership Development Model 1 Commit to Self Development Learn to live True North values through repeated Learning Cycles A P C D TRUE NORTH VALUES 4 Create Vision and Align Goals Create True North vision and align goals vertically and horizontally A P C A D Challenge Kaizen Mind Go and See Teamwork Respect 3 Support Daily Kaizen P C D 2 Coach and Develop Others A P C D Build local capability throughout for daily Management & Kaizen See and challenge true potential in others though selfdevelopment learning cycles
  39. 39. What is Leader Standard Work? • The repetitive activities are designed to identify abnormal situations like: – – – – Non-standard work Non-standard labor Non-standard inventory Non-standard output • This is done where the work takes place, “The GEMBA” • Organized, Visual Management helps leader see abnormalities
  40. 40. Asset Management Board HR Std Work Sheet Finance Engr Plant Mgr 41 TPM Sheets Warehouse CSR Process Performance Board Vendor Support Maint Hiring Plan Deep Dive Today Kanban Shipping Receiving Example of a daily round for management
  41. 41. Leader Standard Work is a necessary step in the beginning stage until leaders develop so it is “the way they think and act” Liker Lean Advisors, LLC 42
  42. 42. Lean Leadership Development Model 1 Commit to Self Development Learn to live True North values through repeated Learning Cycles A P C D TRUE NORTH VALUES 4 Create Vision and Align Goals Create True North vision and align goals vertically and horizontally A P C A D Challenge Kaizen Mind Go and See Teamwork Respect 3 Support Daily Kaizen P C D 2 Coach and Develop Others A P C D Build local capability throughout for daily Management & Kaizen See and challenge true potential in others though selfdevelopment learning cycles
  43. 43. Toyota Work Groups at the Heart of Continuous Improvement Group Leader Team Leader TM TM TM TM TM Team Leader TM TM TM TM TM Team Leader TM TM TM TM TM Notes Team Leader TM TM TM TM TM Ideal TL:TM Ratio= 1:5 Group Leader (GL) = 1st level of management Team Leader (TL) = Alternates working production and leadership roles. Team Member (TL) = Production worker Liker Lean Advisors, LLC
  44. 44. Continuous Improvement means a little better every day: Visual Management Boards for Each Work Group (Toyota, Kentucky) Liker Lean Advisors, LLC
  45. 45. Case Example: Menlo Innovations Building a “lean” culture the right way Liker Lean Advisors, LLC
  46. 46. Technical Anthropologists: Customer Requirements • Observe People – In their native environment • Find the pain points • Be the empath! • Understand what they may take for granted • Initial Mock up user screens Liker Lean Advisors, LLC
  47. 47. • • • • Storycards Write it down (uh oh! Not paperless) Description of work to be completed for one feature Writing a card does not “authorize” it. Collection of cards is potential project scope
  48. 48. Estimation
  49. 49. Customers rule, but must actively collaborate What are they willing to pay for? Participate in weekly reviews
  50. 50. Work Authorization Board The daily work schedule Simplicity & clarity! • As work time actual completion of each card • Red, green, yellow The joy of getting things done!
  51. 51. Coding in Pairs, Working in Teams • Code only in pairs: collaboration, peer accountability, and cross-pollination of knowledge. • Pairs rotate every week: no “towers of knowledge” • No owned space: find a computer
  52. 52. Lean Leadership Development Model 1 Commit to Self Development Learn to live True North values through repeated Learning Cycles A P C D TRUE NORTH VALUES 4 Create Vision and Align Goals Create True North vision and align goals vertically and horizontally A P C A D Challenge Kaizen Mind Go and See Teamwork Respect 3 Support Daily Kaizen P C D 2 Coach and Develop Others A P C D Build local capability throughout for daily Management & Kaizen Liker Lean Advisors, LLC See and challenge true potential in others though selfdevelopment learning cycles
  53. 53. Hoshin Kanri Climbing the Mountain Together
  54. 54. MBO Seeing the Surface Hoshin Kanri Climbing the Mountain Together
  55. 55. What is a Lean Leader? • Manages from the gemba • Coaches and teaches – Technical skills to do job – PDCA mindset • Understands each person: strengths and weaknesses • Breaks down tasks to give people appropriate assignments: achievable and challenging • Teaches by questioning, not telling • Builds trust • Lives the Values! Liker Lean Advisors, LLC We Care! We want you to be your best!
  56. 56. Exercise: Where are we today? 57
  57. 57. Where are we today? Please gather in smaller groups of 3-4 persons from around you. Spend 15 minutes discussing the presentation on “Developing Lean Leaders the Toyota Way”: 1. What key insights did you hear? 2. What are the gaps between your current situation and what you just heard? Lean Leadership Development Model 3. Right now, what would be an obvious best special focus for you and your organization during the coming year? 1 Commit to Self Development Learn to live True North values through repeated Learning Cycles A P C D TRUE NORTH VALUES 4 Create Vision and Align Goals Prepare one key issue or question that you would like to address and discuss with Mr Liker. We will choose 3-4 topics or as many as time allows. Create True North vision and align goals vertically and horizontally A P C A D Challenge Kaizen Mind Go and See Teamwork Respect 3 Support Daily Kaizen P C D 2 Coach and Develop Others A P C D Build local capability throughout for daily Management & Kaizen 58 See and challenge true potential in others though selfdevelopment learning cycles
  58. 58. Input from Audience & Reflections from Jeffrey Liker Jeffrey Liker 59
  59. 59. Wrap-up Michael Leck 60
  60. 60. Join this year’s Lean Architecture Tour – an exclusive learning experience in Japan from 28 September to 5 October 2013 DEEPEN YOUR LEAN EXPERTISE IN JAPAN THIS AUTUMN The core concept is to gather 15-20 senior managers from various companies and industries who are all driving ambitious operational transformations. Together, we will visit several hand-picked Lean benchmark companies in Japan, share our experiences and discuss how we take our Lean implementations to the next level. The program will allow you to: • Make real-life observations of the interplay of technical and cultural aspects of Lean implementations • Understand very different operating models – why have they been successful in building a sustainable competitive edge? • Engage in discussions with Japanese senior management to understand their leadership role • See world-class examples of continuous improvement infrastructures and understand what makes them thrive 61 Toyota RICOH TSK Yazaki Mirai
  61. 61. Thank You & Goodbye … Contacting Implement Consulting Group Learn more about how we work with Lean Go to Implement Consulting Group's main website 62

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