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1. Leading a Lean Implementation
Presented by Mark Ruby
Senior Vice President, Reliability Consulting Group,
Life Cycle Engineering

2. Presentation Agenda
 Define the competitive environment
 Integrate a robust change management
process
 Implement strategy deployment
 Create an implementation strategy and
framework
 Organize for success
 How to measure success
 Critical success factors

3. Define the Competitive
Environment

4. Competition
Development Cycle
Raw
Materials
Growth

6. Bringing Lean Into Focus
operational excellence as a strategic weapon

7. Benefits From Lean Implementation
Activities
Work in process inventory 12 days
Productivity 30%
OEE 15%
Floor space 40%
Lead time 30%
Green metrics emerging
Lean – reduction of lead time through the elimination of waste

8. Change Management

10. Most Change Initiatives Fail
 50% to 70 % of change efforts fail
(Ken Blanchard and Associates)
 67% of TQM efforts failed
(Arthur D. Little)
 70% of reengineering initiatives failed
(Power Projects)
 Only a third of true step changes
succeed (McKinsey Global Survey Results 2008)

11. Most Change Initiatives Fail!
The number one
obstacle to success
for major change
projects is employee
resistance and
the ineffective
management of the
people side of change.
(c) Prosci 2010. www.change-management.com. Used with permission

12. Why Change Management?
Prepare for
Change
Manage
Change
Reinforce
Change
Phases of a Change
Management Process

13. Change Management Yields Measurable
Results
Speed of
Adoption
Ultimate
Utilization
Proficiency
ROI of
Change

14. Strategy Deployment

15. Strategy Management Process Model
Integrated
Strategy Formulation
Strategy Deployment &
Implementation Framework
Measurement
Learning
Improvement
Implemented
Systematic
Sound
Approach

16. 16© Life Cycle Engineering 2012
Evolution of Strategy Deployment
Independent
Units
(Silos)
Focus Clear
Business
Direction
Organization
Alignment
(Catch Ball)
Systematic
Implementation
Not Just Results,
Planned Results
Focus Alignment Quick Response

17. Strategy Deployment
Established frameworks for strategy deployment
1. Hoshin Kanri – Element of TQM. Foundational
to the Toyota Production System
2. Balanced Scorecard – Originated Harvard
Business School by Dr. Kaplan and pioneered by
G.E. for performance reporting in the 1950’s
Strategy Deployment – a process that aligns business
activities to the vision and strategy of the organization

18. Define a Strategy Deployment Process
Strategy Deployment ensures that the voice of the customer
is always at the forefront in approach and deployment.
Strategy Deployment provides both vertical and horizontal
focus and alignment on key goals.
Strategy Deployment goals are implemented systematically.
Customer
Expectations
Corporate
Strategic
Goals
Quality
Customer
Satisfaction
Plant
Goals
Reduce
Failure Rates
Dept/Product
Goals
Reduce Int.
Defects
Workshop
Goals
Improvement
Projects
Best in Class
Quality

19. Hoshin Kanri Deployment Matrix

20. Balanced Scorecard Deployment Matrix

21. PDCA – The Foundation of Strategy
Deployment
Plan – If we take
these actions, we
will achieve the
required results.
The hypothesis.
Do – Deploying
objectives level
by level.
Implementation.
Check – Observing
and assessing
results against the
target
Act – Analyze results
from checking phase.
If at target,
standardize. If not,
adjusted assumptions
to reflect facts
(problem solving)
Plan-Do-Check-Act Cycle
Expression of The Scientific Method

22. Create an
Implementation Strategy

23. Create an Implementation Strategy
Philosophy
(long-term thinking)
Process
(eliminate waste)
People & Partners
(respect, challenge, and grow them)
Problem
Solving
(continuous
improvement and
learning)
The business
principles of the
Toyota Way

24. Key Attributes of a Lean Manufacturing Plant
• Commitment to quality
• Satisfied customers both internal and external
• Safety, environment, cleanliness and order
• Visual management system
• Scheduling system based upon a single pacing process
• A focused plant layout that facilitates efficient material
flow
• Low levels of inventory and work in process
• Engaged associates, empowered and motivated
• A robust TPM program – well maintained equipment and
tools
• Integrated supply chain

25. Understand What is Possible
Consider what
needs to be done
Think
Develop themes of
what to do
Theme finding/setting
T
Take responsive
countermeasures
Act
Improvement &
standardization
D
S
T
Picture ones’
ideal image
Draw
Want to do this
Want to be like this
See
Recognize reality
Grasp and analyze
current situation
Draw, See and Think – PDCA Cycle
Action Plan Implementation
Make action
plan
Put plans into
action
Check by actual
results
Plan Do Check
Plans &
standards
Training &
implementation
Analysis &
learning
In the Beginning, There is a Dream
PLAN:
Plan the
Change
DO:
Implement
the Change
CHECK:
Monitor and
Review the
Change
ACT:
Revise and
Standardize
the Changes

26. LCE Lean Implementation Model

27. Lean Implementation Process Model
Vision
Value Stream
Map
Implementation
Plan Report Out
1. Strategy deployment & lean strategy are co-dependant.
2. 12 month plant vision + key implementation plan (rolling)
3. 12 month product line, customer/supplier logistics vision (rolling)
4. Value stream mapping (CSM, FSM), 6 month cycles
5. Plan and check results on an established cadence
Strategy
Deployment
BPS Principle training
Benchmark Visits
Policy Deployment 2005
Compensation system 2005
5S Shop floor/warehouse
5S Administration
Visualization Metrics Phase I
PFEP
EOL Kanban Boards
Heijunka (Levelling)
BPS Plant Focus Layout (Vision 2005)
Material Delivery Routes (Raw)
Kanban (Internal Pull Systems)
Lean Line/Cell Designs (Simulation)
Problem Escalation Process
Order Management - Supply - SAP/ICH (NAFTA)
Frequent Supplier Pulls (NAFTA)
Bosch Plant Assesments (Internal)
MOE1-4 Focus Layout (Vision 2005)
Centralized Material Flow Center
BPS Workshops / Partnerships into supply base
Order Management - Supply - SAP/ICH (Int'l)
Frequent Supplier Pulls (Int'l)
Change-over time reduction (SMED)
Standardized Work
Policy Deployment 2006
Compensation system 2006
TPM
MOE Cockpit Charts / Dashboards/BPS Cockpit Charts
Material Delivery Routes incl. kits (FG)
Administrative value stream design
Visualization Metrics Phase II
Kaizen Teian
Q-Tools (Ishikawa, 5 Whys, Pareto, Actions)
Shop Floor Problem Solving
Bosch Plant Assesments (Suppliers)
Jidoka (Stop the Line)
BPS Key Elements
BPS Plant Vision
2004 2005
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Oct Nov DecJun Jul Aug Sep
ImplementationPlanning Optimization
Process Management

28. Communicate an
Implementation Framework

29. Communicate an Implementation
Framework
Identify
Value
Map the
value
stream
Create
Flow
Establish
Pull
Seek
Perfection
Create Your Company’s Production System Vision
• Incorporate vision &
guiding principles
• Provides excellent
method for
communication
• Provides an anchor
point for True North
• Provides a differentiator
in the marketplace
Adopted from Lean Enterprise Institute, Inc. 2009

30. Building Blocks of a Production System
Management
Responsibility
Policy Deployment Employee Involvement
Demand Management Information Flow Warehouse Mgmt
Inventory Management Material Handling Layout & Production Flow
Productivity & Flexibility Equipment Productivity Process Stability
Quality Standardized Work 5S
Visual Management Supply Chain
Management
Problem Solving
Single Piece Flow Supplier Relations Resources at POU
Aligned Authority Professional Workforce Culture of CIP
Data User Customer Satisfaction
Safety Scheduling System TPM
Teamwork & Motivation Efficient Use of Space Mgmt Complexity,
Variability

31. The Toyota Production System

32. Robert Bosch 8 Principles of Bosch
Production System
Cost Delivery
Quality
Associate Involvement and Empowerment
Waste Elimination and Continuous Improvement
Associate Satisfaction
Perfect Quality
Flexibility
Process Orientation
Pull System
Transparent Process
Standardization
Customer Satisfaction and Business Success
Cost Delivery
Quality
Cost Delivery
Quality
Associate Involvement and Empowerment
Waste Elimination and Continuous Improvement
Associate Satisfaction
Perfect Quality
Flexibility
Process Orientation
Pull System
Transparent Process
Standardization
Customer Satisfaction and Business Success

33. Milliken & Company

34. The Volvo Production System – 5
Principles

35. Production System Model

36. JiT

37. Alcoa Business System

38. Organize for Success

39. Value Stream View
Supermarket
U U
Supermarket
Daily Pulls
Hourly Pulls
Sub Ass.
Final Ass.
Production Cells
Plant Plant
Production
Control
Forecast
CustomerSupplier
Hourly Pulls
Short Lead-times
XOXO
Forecast
Purified
Daily Orders
XOXO
Daily Orders
Supplier Loop
Shop Floor Loop
Customer Loop

40. Plant Manager
Administration Operations Engineering Lean Leader Logistics
Assistant
Plant Manager
Administration Operations
Lean Leader
Engineering Lean Leader Logistics
Lean Leader
Assistant
OrganizationalDesign

41. Organize for Success
• Lean leadership team
• Reporting relationship
• Dedicated resources
• External resources

42. Measuring Success

43. How to Measure Success
1. Financial results
2. Scoring and assessments
3. Stakeholder perceptions

44. Critical Success Factors
1. Leadership unity
2. “True North” orientation
3. 70% solution
4. Organize around value streams
5. Use kaizen workshops to teach and make rapid changes
6. Make it mandatory
7. Create a sense of urgency
8. Pursue opportunities with large financial impacts
9. Implement a scoring mechanism
10. Develop your own way within your own culture
11. Hire or develop lean leaders with succession planning
12. Use experts for teaching and getting quick results
13. Educate and benchmark

46. Thank You!
Mark Ruby, Sr. Vice President
Life Cycle Engineering
Reliability Consulting Group
843.744.7110
mruby@LCE.com
www.LCE.com
LCE’s Reliability Consulting Group (RCG) provides consulting,
services and education. Our team specializes in providing
client-specific solutions that help organizations improve their
operating performance.