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Presented By:                                              Brent Tadsen                                              Adapt...
Introduction       Objectives:       • Understand change and how it happens in a Lean            organization        •   U...
About the Presenter       Brent Tadsen:       • 8 Years with GE; Greenbelt, Blackbelt, Master Blackbelt       • Lean & Six...
Disclaimer             Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
Change         Change is tough…but is it good?         Quick question about your car…          Copyright 2008 Adaptive Bus...
Lean and ChangeFirst, need to clear up some very common misconceptions…       •   Lean is NOT JUST A SET OF TOOLS         ...
Kotter’s 8 Step Change Model vs A Lean CompanyGoal Based Change                                                    Continu...
The Beauty of Lean        8 Step Model                                                                             Lean Or...
The Lean TransformationSo how do I become Lean?There is no magic pill, silver bullet, or checklist that will make you Lean...
The Lean Transformation Framework                                                                                         ...
The Lean Transformation Framework‐ Lean Leadership                                                                        ...
The Lean Transformation Framework‐ Lean Leadership     Axioms                Principles                                   ...
The Lean Transformation Framework‐ Lean Leadership     Axioms                Principles                                   ...
The Lean Transformation Framework                                                                                         ...
The Lean Transformation Framework – Vision & Business GoalsMust include something for customers, shareholders, and employe...
The Lean Transformation Framework – Value Stream Understand Operations- PR, PQ, Modeling, Capacity                        ...
The Lean Transformation Framework – Business Strategy Have to get this right…no buggy whips                               ...
The Lean Transformation Framework – HR Strategy Performance Review Process                                                ...
The Lean Transformation Framework – Align Metrics Encourage teamwork vs individual success                                ...
The Lean Transformation Framework – Level Load Minimize External Input Variation                                          ...
The Lean Transformation Framework – Standard Work Create a standard on which future improvements are based on             ...
The Lean Transformation Framework – Material Replenishment Stable ops have the right material/Information                 ...
The Lean Transformation Framework – Equipment Availability It is difficult to get standard processes if your machine keeps...
The Lean Transformation Framework – Personnel Skills training that supports the process                                   ...
The Lean Transformation Framework – CI Customer Value Figuring out new ways to create value for customers        •Improve ...
The Lean Transformation Framework – CI Using Lean Techniques Use the Lean Techniques to improve                           ...
Appendix             Examples…Time Permitting              Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
The Lean Transformation Framework – Infra Structure Highlights Operation                  Problem                         ...
Example – Tank Shop Original Process Map                                                                                  ...
Example – Tank Shop Future State Process Map                                                                              ...
Example – Wagon Flow Diagram                                               Valve Shop-                                    ...
Example – Wagon Process Operation          Problem                                                   Actions Taken        ...
Example – Heat Treat Process Operation          Problem                                                   Actions Taken   ...
Cycle Time Results                                        Sayre Cycle Time by Week Jan 05 to Jan 07                       ...
Questions & Contact Info                                  Questions       Brent.tadsen@abstb.com                      Copy...
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Executing a Lean Transformation

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Transcript of "Executing a Lean Transformation"

  1. 1. Presented By: Brent Tadsen Adaptive Business Solutions, LLC 126 S. Northwest HWY Chicago, IL 60010 312‐957‐6008 www.abstb.comCopyright 2008 Adaptive Business Solutions  ‐ All Rights Reserved
  2. 2. Introduction Objectives: • Understand change and how it happens in a Lean  organization  • Understand the Leadership Values that must be held in  order to execute a Lean Transformation • Understand the Lean transformation framework Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  3. 3. About the Presenter Brent Tadsen: • 8 Years with GE; Greenbelt, Blackbelt, Master Blackbelt • Lean & Six Sigma Trainer • Lean Leader for GE Rail Services • Spent 12 months helping a Railcar repair shop begin a Lean  transformation  Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  4. 4. Disclaimer Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  5. 5. Change Change is tough…but is it good? Quick question about your car… Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  6. 6. Lean and ChangeFirst, need to clear up some very common misconceptions… • Lean is NOT JUST A SET OF TOOLS Diet • Lean methodology needs to be embedded in all functions Lean is a name…Let’s get past that by calling it by the type of organization it describes. A value focused, relationship driven, employee centric organization that thrives on team work and continuously improves itself. …or just call it Lean It is not an initiative…it is a way of Life You don’t “DO” Lean, you become Lean Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  7. 7. Kotter’s 8 Step Change Model vs A Lean CompanyGoal Based Change Continuous Improvement as a process C C B B A A Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  8. 8. The Beauty of Lean 8 Step Model Lean Organization1. Establish a Sense of Urgency • Urgency is part of the culture2. Create Guiding Coalition • All people involved in improvements3. Develop Vision and Strategy • Vision is steady and clear4. Communicate the Vision • No need as it doesn’t change5. Empower Broad-Based Action • Organized for action already6. Generate Short-Term Wins • Get wins everyday7. Consolidate Gains and Produce More • Daily Process8. Anchor the New Approaches in the Culture • Culture already supports improvement Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  9. 9. The Lean TransformationSo how do I become Lean?There is no magic pill, silver bullet, or checklist that will make you LeanSo how do you do it? 3 Words…Discipline, Energy, & PersistenceIf it was simple you wouldn’t be here or your competition would have already run you out of business Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  10. 10. The Lean Transformation Framework … Continuously Improve Personnel Customer Value Utilize Lean Techniques Stabilize en HR Strategy iz Align Metrics Ka Level Load Standard Work Material Replenishment Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  11. 11. The Lean Transformation Framework‐ Lean Leadership …First who, then whatUnderstands Lean Continuously Improve PersonnelCEO/Leadership…Breakfast Analogy Customer Value Utilize Lean TechniquesLead by example…Participate…WalmartKotter [Tadsen] Step 9…the heart (kids books) Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  12. 12. The Lean Transformation Framework‐ Lean Leadership Axioms Principles Techniques 5S Just-in-time Andon (Flow) Takt Time Perfection Relationships Kaizen Heijunka Kanban Value Pokayoke Continuous People Learning Standardized Work Single Piece Stability Flow Visual Management Significantly influenced by Joachim Knuf Heijunka Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  13. 13. The Lean Transformation Framework‐ Lean Leadership Axioms Principles Techniques Repairs Just-in-case Assign Blame Speed Good Enough Competition Band aide Peaks & Saturation Staging Profits Valleys Rework Program of Corporation The Month Tribal Knowledge Batch and My Way Queue Search And Find Significantly influenced by Joachim Knuf Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  14. 14. The Lean Transformation Framework …Understand what the customer values…hopper cars Continuously Improve Personnel Customer Value Utilize Lean Techniques Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  15. 15. The Lean Transformation Framework – Vision & Business GoalsMust include something for customers, shareholders, and employees$10MM Bonus …Communicated appropriately…undivided attentionBe ready for pushback…late night TV Continuously ImproveImportance of why… Personnel Customer ValueNorth Seeking Compass Utilize Lean Techniques Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  16. 16. The Lean Transformation Framework – Value Stream Understand Operations- PR, PQ, Modeling, Capacity … Continuously Improve Personnel Customer Value Utilize Lean Techniques Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  17. 17. The Lean Transformation Framework – Business Strategy Have to get this right…no buggy whips …How will we create long term value for our customerWhere do we start? What resources are available? Continuously ImproveNot a way to reduce head count Personnel Customer Value Utilize Lean TechniquesMKE Example Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  18. 18. The Lean Transformation Framework – HR Strategy Performance Review Process …Hiring the right people…welderRight org structurePeople who do fire prevention vs fighting Continuously Improve PersonnelRewards and Recognition…Welch Customer Value Utilize Lean TechniquesClear career pathSuccession Planning StabilizeRetention HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  19. 19. The Lean Transformation Framework – Align Metrics Encourage teamwork vs individual success …Sub Optimize Value Stream…GEA Tub Bottom ExampleCycle Time on assignment cars Continuously Improve Personnel Customer Value Utilize Lean Techniques Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  20. 20. The Lean Transformation Framework – Level Load Minimize External Input Variation …Examples: Baskin Robbins Lawn Mowing Continuously ImproveMed Systems Personnel Customer Value Utilize Lean Techniques Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  21. 21. The Lean Transformation Framework – Standard Work Create a standard on which future improvements are based on …We don’t need a new IT system, we just need to properly use the one we have Continuously Improve Personnel Customer Value Utilize Lean Techniques Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  22. 22. The Lean Transformation Framework – Material Replenishment Stable ops have the right material/Information …Kan BanMin/Max Continuously Improve Personnel Customer Value Utilize Lean Techniques Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenishment Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  23. 23. The Lean Transformation Framework – Equipment Availability It is difficult to get standard processes if your machine keeps breaking down …TPMStandard Locations Continuously Improve Personnel Customer Value Utilize Lean Techniques Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenishment Understand Equipment Availability Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  24. 24. The Lean Transformation Framework – Personnel Skills training that supports the process …Leadership trainingProblem Solving Continuously Improve Personnel Customer Value Utilize Lean Techniques Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  25. 25. The Lean Transformation Framework – CI Customer Value Figuring out new ways to create value for customers •Improve Products … •New products •New Services Continuously Improve Personnel •Better Lead Times…Fedex Example Customer Value Utilize Lean Techniques Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  26. 26. The Lean Transformation Framework – CI Using Lean Techniques Use the Lean Techniques to improve … •Internal Set-Up •External Set-up •Kitting •Poka Yoke •Supermarkets Continuously Improve •Jidoka Personnel •Andon Customer Value •Takt Time Utilize Lean Techniques •Single piece Flow •Etc Stabilize HR Strategy Align Metrics Level Load Standard Work Material Replenish Understand Lean Leadership Customer Value Vision & Business Goals Value Stream Business Strategy Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  27. 27. Appendix  Examples…Time Permitting Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  28. 28. The Lean Transformation Framework – Infra Structure Highlights Operation Problem Actions Taken Results Using portable ladder to access car and  transport tools and equipment. Resulting in  Developed free‐standing  Fixed platform and tool board  Top of Car  work platform with secured  reduce up and down travel by  excessive trips and safety issues. Previous  Ops  tool board. 45 minutes per car &  observations revealed average 3 trips per  hour for Top of Car tasks. eliminate ladder safety issues.  Before Kaizen After Kaizen Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  29. 29. Example – Tank Shop Original Process Map  Blast Warehouse Office Steam Rack- Clean Car after estimate approved Push production Steam RackTrack 13- Overflow Cell Criteria- NONE Finished cars from Blast Only require valves and bubble Inspection Tank Shop In bound Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  30. 30. Example – Tank Shop Future State Process Map  Blast Warehouse Office Steam Rack- Clean CarDecouple the shop floor with Track 13 UT Test Bubble Test if BO is not for valves or HM-201 Preliminary coil test Steam Rack Remove valves Track 13- Hold Track (Max 8 cars) Categorize cars Green, Yellow, Red Green Team Blue Team Central Tool Area Cell Criteria- Platforms Green [Light]- <60 Hours (No HM201) Yellow Team Blue [Medium (-)]- 60-130 Hours- HM201 Yellow [Medium (+)]- 60-130 Hours-HM201 (Pressure) Red [Heavy]– >130 Head Brace, Heat Treat, cert weld shell Red Team Finished cars from Blast Only require valves and bubble Inspection Two piece pull In bound Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  31. 31. Example – Wagon Flow Diagram  Valve Shop- Tank Shop Rebuilds Valves Cells- 25’ PM Wagons 3 Bring valves to car when new car arrives Moves valves to staging Air tires if needed Clean debris from wagon Clean sign Return empty wagons Return colored sign to valve shop 2 4 1Steam Rack-Drops valvesFills out information on gray signMoves valves to staging area Coach- Prioritizes valves Assigns cell colors to wagon 10 8 6 4 21 5 Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  32. 32. Example – Wagon Process Operation Problem Actions Taken Results Infrastructure Highlights Difficult to understand valve  Created wagon system to  All valve sets and  rebuild status, valve sets not  keep valve sets and  hardware kept together in  Valves  together, overflow valves laying  mounting hardware  individual wagons.  Easy  on floor, lost mounting hardware. together. to see if valve shop or  steam rack is behind.   Keeps clutter out of valve  shop. Before Kaizen After Kaizen Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  33. 33. Example – Heat Treat Process Operation Problem Actions Taken Results Infrastructure Highlights Lack of 5S creating waste through  Created Cable and Lead  Cables and leads are  Heat bins in new HT Cart.  Fire  organized and set up for  searching and untangling of cables  Treat  hose storage concept  rapid pull and go  and leads. prevents tangles. deployment. Reduced setup time by  59%. Before Kaizen After Kaizen Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  34. 34. Cycle Time Results  Sayre Cycle Time by Week Jan 05 to Jan 07 140.0Ave C/T All Cars Shipped 120.0 100.0 that Week 80.0 60.0 40.0 20.0 0.0 10 19 28 37 46 12 21 30 39 48 1 3 FW 2005 and 2006 Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
  35. 35. Questions & Contact Info  Questions Brent.tadsen@abstb.com Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
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