Management System for Lean Leaders

© Operational Excellence Consulting. All rights reserved.
1
Management
System for
Lean
Leaders
4.
Leadership
Discipline

© Operational Excellence Consulting. All rights reserved. 4
Outline
1. Introduction to Lean Management System
2. Key Elements of a Lean Management System
3. Supporting Elements of a Lean Management
System
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Lean Roles
Who? Tool/SystemLean Role
Leadership Lean Management
System
Lead and sustain
Lean initiative
Middle
Management
& Workforce
Lean Production
Methods & Tools
Implement Lean
and manage Lean
operations
StrategicTactical

Parallel Implementations of Lean
Production & Lean Management System
Leader
Standard
Work
Traditional Culture
Lean
Production
Daily
Accountability
Visual
Controls
Waste
Elimination
Waste
Identification
Lean CultureLean
Transformation
Lean
Management
System
Discipline
PDCA Cycle
Continuous
Improvemen
t
Strategic
Tactical

Group Discussion:
Lean Management Systems
1. Does your management system reinforce finding and
eliminating problems, or does it reinforce working
around problems to meet the schedule?
2. Have you implemented Lean Production tools only to
find they didn’t seem to work or hold up over time?
Why do you think that happened?
3. Are senior managers familiar with and prepared for the
part they need to play in leading and sustaining Lean
beyond initial statements of support?
Time: 10 mins

Lean Elements Need to Work Together
Engine:
Leader Standard
Work
Gas Pedal & Steering Wheel:
Daily Accountability Process
Transmission:
Visual Controls
Fuel:
Discipline
It is important to improve the stability of a process first
before implementing the Lean management elements

Introduction of Leader Standard Work
• Standard work for leaders, the engine of Lean
management, is the highest leverage tool in the Lean
management system
• Helps leaders shift from a sole focus on results to a dual
focus on process and results
• Leader standard work translates the focus on process
into concrete expectations for the leader’s own specific
job performance
• Sets the standards for expected behaviors for Lean
leaders in a newly Lean environment

Leader Standard Work Sustains and
Extends Lean’s Gains
Lean
gains
Leader
standard
work
Improvement

What is Leader Standard Work?
Team Leader
Standard Work
Supervisor
Standard Work
Plant Mgr / Mfg Mgr /
Value Stream Manager
Standard Work
Executive
Standard Work
Lean Management System
Standardized Lean Processes
Strategic
Focus
Tactical
Focus

Why Leader Standard Work?
Clearly Documents the Management
System
• Documents the current state of the best practices in
Lean management
• A baseline for further Lean management system
improvement
• Defines expected behavior for leaders - what they
should do

Why Leader Standard Work?
Leader Standard Work is often the
“missing link” to sustaining improvement
Leader
Standard
Work
Continuous Improvement Ability
Ability to Sustain ImprovementsThis document is a partial preview. Full document download can be found on Flevy:

LSW Example: Team Leader
• Once daily
Shift start meeting
Review and adjust work
plans
Monitor production start up
Post tracking sheets
Attend board meeting in
department
Set next day’s work plans
• Multiple times daily
Work on kaizen items
Update hourly production
control board
Train operators as needed
Monitor stop and start times
Standard work for Team Leaders is roughly 80% of their day

Taking Action
• Observe Leader Standard Work in action at the site
• Visit “Model Line” to learn how front-liners, Team Leader
and Supervisor standard work is functioning
What are the challenges?
What are the benefits seen so far?
• Look for things that could be on your Leader Standard
Work checks

Planned Maintenance
Four Key Elements of the Lean
Management System
4.
Leadership
Discipline

Example: Visual Control Metrics
Monthly
Trend
Chart
Shift-to-Shift
Trend
Chart
Pareto
Chart
Cause &
Effect
Gantt Chart
Monthly
Trend
Chart
Shift-to-Shift
Trend
Chart
Pareto
Chart
Cause &
Effect
Gantt Chart
Monthly
Trend
Chart
Shift-to-Shift
Trend
Chart
Pareto
Chart
Cause &
Effect
Gantt Chart
Safety Delivery CostQuality
Note: Start with existing
data and build up over
time measures that your
team is accountable for

Example: Visual Control Board

What is an Activity Board?
• An Activity Board is a tool which let us ‘see into’ the
business (like a window)
• It is the posting of key information to support:
Organization objectives
Continuous improvement
Mini-company concept
• The information is posted in an easy-to-understand
format (visual, graphical)
• It represents a progressive management style

Current State Future State
Example: High Level Activity Board
Weekly Metrics
Process Costs
Revenue
Late Delivery
High Level
Project List
Detail
Project Plans

Guidelines for Successful Activity Board
Management
• Check Activity Board for effectiveness
Is it clear where you are, where you are headed and why?
Are the metrics appropriate? Are Pareto charts constructed to
show the greatest opportunity?
Would any additional information be useful to the team? Should it
be incorporated into the Activity Board?

What is the Daily Accountability
Process?
• A series of brief review sessions (tier
meetings)
• Taking action to close gaps
• Visualization of accountability - use
of:
Visual controls
Activity boards
What are we
accountable for
each day?

Daily Accountability (“Morning Huddles”)
Agenda
• Yesterday’s issues
• Lessons learned
• Manpower status
• Update from top management
• 5S & Kaizen activities
• Today’s target & actions

Daily Accountability – Tier Meetings
• Expectations
Participants bring issues that require attention
Support staff participate at each appropriate tier
Leader of each tier meeting makes assignments, holds people
accountable, escalates if needed

67
Leadership
Discipline

Group Discussion:
Lean Management Systems
1. Have you seen Lean Management tools implemented
before Lean Production tools were deployed? Were
the Lean Management tools effective? Did they last?
Why?
2. Are there visual tracking tools in your operation? How
effective are they, and why?
3. Highly automated production processes are often said
to more or less “run themselves”. In your experience,
does that seem to be true?
Time: 10 mins

73
Hoshin Kanri

What Hoshin Kanri IS NOT
• A tool for management to control the employees
• A strategic planning methodology to replace the
Balanced Scorecard
• Focused entirely on outcomes
• A performance appraisal tool
• A management reporting toolThis document is a partial preview. Full document download can be found on Flevy:

A Hoshin Kanri System for Goal
Alignment
•Alignment
through entire
company
structure using
top-down goal
setting
•Each
subsequent
goal supports
the previous
level’s goals
Verticalalignment
Organization
Goals
Department
Objectives
Individual
Objectives
Department
Objectives
Individual
Objectives
Individual
Objectives
Individual
Objectives

Breakthrough
• Breakthrough means
improvement to a
significantly higher level of
performance
• Lack of breakthrough for a
business organization would
place it in a position of
regression in a competitive
environment
Think BIG:
Boldly Important Goals
Think BIG:
Boldly Important Goals

Types of Reviews
Monthly
Review
Quarterly
Review
Annual
Review

• Value Stream - All of the activities, required to fulfill a
customer request from order to delivery.
Value Stream Defined
Process 1 Process 3Process 3
Value Stream
Customer
Request
Customer
Receipt

Why Value Stream Mapping?
• To set strategy before diving into tactics
• Visualize the process at multiple levels
• Enables us to see the flow and sources of waste
• Provides a common language for analyzing processes
• Provides a blueprint for creating flow and implementing
Lean concepts and techniques
throughout the entire value streamThis document is a partial preview. Full document download can be found on Flevy:

Iterative Cycles from Current State to
Future State
Improvement
Maintenance
S
DC
A
P
DC
A
Maintenance
S
DC
A
P
DC
A
Improvement
Current State
Future State
Next Future State

The value related attribute of an activity
can only be assessed in the context of
the process, never in isolation
– Consider other activities upstream and downstream
Value Added activities are those absolutely
necessary to deliver the customer’s requirements
– These are colored green on the flowcharts
– They are later re-designed into the new process
Non Value Added activities are those that are not
necessary to deliver the customer’s requirements
and can be eliminated in the re-design
– These are colored red on the flowcharts
Sustaining activities are those that are not
necessary to deliver the customer’s
requirements but are either:
– absolutely necessary to sustain the business or:
– cannot be eliminated due to known severe
constraints (often external)
– These are colored blue on the flowcharts
– They are later re-designed into the new process
Sustaining activities are targeted for gradual
elimination during the Continuous
Improvement process
NVAVA SNVA
VA
NVA
Sustaining Activities
The analysis and redesign requires a clear
understanding of: Value Added, Non Value
Added & Sustaining Activities

Future State Value Stream Map
Purchasing – Non-repetitive purchases less than $5,000

What Is Gemba?
• The term Gemba means “the real place”
• A gemba is literally any direct location where the action
is taking place
• Within the Lean culture it refers to the location where
value is created and ultimately improved
• The idea of gemba is simple:
Go to the place
Observe the process
Talk with the people

Why Gemba?
A gemba walk helps managers see and
reconcile the horizontal with the vertical
Value flows
horizontally
across
organizations
to customers
Organizations are vertical and
complex; Managers look up toward
the top (the CEO) for direction
Customers

109
“When you are out
observing on the Gemba,
do something to help
them. If you do, people
will come to expect that
you can help them and
will look forward to
seeing you again on the
Gemba.”
~ Taiichi Ohno

Gemba Framework
• Observe the environment and the 5M’s (man,
machines, materials, etc.) along the value stream
Source: Gemba Kaizen by Massaki Imai
ManMan
MeasurementsMeasurements
MethodsMethods
MachinesMachines
MaterialsMaterials
Operational + Materials StandardsOperational + Materials Standards
NVA = Muda + Mura + MuriNVA = Muda + Mura + Muri
5S = Housekeeping Discipline5S = Housekeeping Discipline
QualityQuality
DeliveryDelivery
CostCost
S
DC
A
P
DC
A
InputInput ProcessProcess OutputOutput

Activities that do
not add value
Workload that
is not even
Work that creates burden for the
team members or processes
Gemba Walk: Look for the 3 MUs

118
Kaizen Event

Select an Area
• Choose an area that will have an impact but not pose
too many difficult problems in the beginning
• Each event will teach you things that will make the next
event smoother and easier to run
• As people gain experience in running events, it will
become possible to tackle more complicated problems
• Develop a selection criteria to select the best event to
start first

Key Kaizen Approaches
Good Housekeeping (“5S”)
Waste (“Muda”) Elimination
Standardization
Kaizen

Pre-Event Communications
• Communication from Leadership should:
Explain to employees what a Kaizen Event is and why it is
needed
Explain how it supports Lean initiatives
Focus on long-term improvement rather than short-term
disruption
Discuss safety and ergonomic concerns
Set expectations for step change, not insignificant incremental
improvement
When people are familiar with the Event prior to its occurrence,
they will be more receptive and productive during the Event

Kaizen Event Process
1. Orientation1. Orientation
2. Understand
Current Situation
2. Understand
Current Situation
3. Develop
Future State
Design
3. Develop
Future State
Design
4. Make the
Improvements
4. Make the
Improvements
5. Report &
Celebrate
5. Report &
Celebrate

Summary: Supporting Elements of a
Lean Management System
1. Hoshin kanri
2. Value stream mapping
3. Gemba walk
4. Kaizen event (or problem solving)

136
About
Operational Excellence
Consulting

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