Lean Culture Introduction

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Introduction into what is Lean, what is a Lean culture, and how do you get a culture change to stick.

Lean Culture Introduction

  1. 1. Lean Culture Introduction
  2. 2. History of Lean 1910 Mass Production/Ford’s Model T 1940’s-1970’s Toyota Production System 1980’s Just-In-Time & TQM 1990’s Six Sigma 2000’s Lean Manufacturing
  3. 3. What Is Lean? Respect for People Remove Start Now Waste Continuously Flow Improve
  4. 4. Respect For People  The most important factor  Hardest part of the process  Real respect for all employees  Listen and be a servant leader
  5. 5. Respect For Be an Employer of Choice People Employees want*: Empowerment to Make Decisions Opportunities for Growth & Development Variety Mutual Support and Respect Sense of Purpose Desirable Future *BusinessWeek, 2008
  6. 6. Respect For Employees Are Essential People Only 21% of employees are willing to go the extra distance to help company succeed* Firms with most engaged employees increase operating income 19% and earnings per share 28% year to year* *2007 Towers Perrin survey, 18 countries, 40 companies, 90,000 employees
  7. 7. Respect For Change your Culture – Change your Future People 82% say Adopting “First we build Significant Culture people, then we build Change is their #1 cars.” Challenge* —Fujio Cho, Former Chairman, Toyota *2006, The Lean Benchmark Report, AberdeenGroup
  8. 8. Respect For Turn the Company Pyramid Upside-Down People 42% say Top Management Employees Commitment is #1 Challenge* Middle “Grow Leaders and Management/Line Teams who thoroughly Managers understand the Work, Live the Upper Philosophy, and Teach it Management to others.”* *2006, The Lean Benchmark Report, AberdeenGroup
  9. 9. Respect For Your Culture is your Cornerstone People Only 10% of employees say senior management treats them as most important part of organization* *2007 Towers Perrin survey, 18 countries, 40 companies, 90,000 employees
  10. 10. (615) 852-LEAN [5326] www.TheLeanWayConsulting.com The Seven Wastes Transportation Inventory Motion Wait time Over Processing Over Production Defects Movement between Buffers Poor work Materials Excessive testing Material Shortages Internal buildings/sites design Shortages Excess WIP & Install Un-level Demand Rework Premium RIP Ergonomic Un-level Demand freight Design Reconfiguration Build to stock Supplier Supplier Startup Distribution inventories for Travel time Double handling Economic Lot Sizes Final Test Network long lead time Vendor Tool & Predictability Material Batching Inspection Plant Layout Stock Material variability/over access Scheduling design Conflicts Operations, Overhead, Materials, Suppliers
  11. 11. Flow  Go from silos to customer based groups  Move from one process to another smoothly  Single piece flow
  12. 12. Start Now  Boyd’s Law of iteration  Experiment  100-50 rule
  13. 13. Continuously Improve  Muda = Waste  Mura = Flow  Muri = Respect for People  Continue to tackle all of these areas to keep your Lean System going  PDCA
  14. 14. (615) 852-LEAN [5326] www.TheLeanWayConsulting.com Traditional Lean enterprise Emphasis on production Emphasis on customer service Make product to forecast Makes to actual customer demand ‘Push’ production system ‘Pull’ production system Machine utilization Employee utilization Reduce cost and increase efficiency Reduce waste and add value Leadership by executive command Leadership by vision and broad participation Specialized employees Multi-functional employees Penalize mistakes Educate Blame people Identify and solve process failure Reactive Proactive Inspect in Quality Built in Quality Complexity Simplicity Functional Management Structure Manage by Value Stream How does your company rate as a Lean Rating Scale: 1 2 3 4 5 Enterprise?
  15. 15. Think Like a Lean Culture 1) Leadership 2) Visual Controls 3) Feedback 4) Do What You Say – Say What You Do 5) Stick To The Process 6) Root Cause Problem Solving 7) Continuous Improvement
  16. 16. Leadership  Strategic Alignment  Daily Standard Work  Gemba Walks
  17. 17. Visual Controls  Visuals to help prevent errors  Data about process is easy to see  A 3rd grade level
  18. 18. Feedback  Instantaneous feedback  Corrective action close to instantaneous  Project management done in a visual way
  19. 19. Do What You Say – Say What You Do  All processes are up-to-date in the paper work  Ask anyone and they will give you the same response  Supposed to = Actual
  20. 20. Stick To The Process  Review production process adherence  Gemba walks  Assign owners to process misses  Top 3 issues Pareto chart
  21. 21. Root Cause Problem Solving  No more band aids and firefighting  Use tools like 5 Y’s, FEMA, fishbon e diagrams, and Gemba to solve root cause  Processes reveals problems easily
  22. 22. Continuously Improve  Line leaders responsibility is to improve the line  Improvement lead by line leads and front line  Employee suggestions are used in experiments  All leaders participate in Kaizens
  23. 23. Results  Computer Re-manufacturing  Quality - 75% improvement  Productivity - 25% improvement  Cycle Time - 50% improvement  Total Cost - 42% reduction  Computer Manufacturing  Quality - 98% improvement  Productivity - 12.5% improvement  Cycle Time - 50% improvement  Total Cost - 31% reduction  Veterinary Clinic – 30% Improvement in Revenue
  24. 24. Questions? ankit@TheLeanWayConsulting.com www.TheLeanWayConsulting.com http://TheLeanWayConsulting.blogspot.com (615) 779-3629

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