Lean Management and the   Role of Lean LeadershipThe presentation will begin momentarily.     Please make sure that your p...
James P. Womack             John ShookLean Enterprise Institute   Lean Enterprise InstituteFounder and Chairman        Sen...
Webinar “Housekeeping” TipsDisable pop-up blockersAdjusting your volume:   • Use the slide at the top right of the questio...
Webinar “Housekeeping” TipsAsking questions•Use the “question” box in the lower left corner•Submit questions as they occur...
Question and AnswerWe will do our best to answer as manyquestions as possible in the allotted time.Answers to the question...
James P. Womack             John ShookLean Enterprise Institute   Lean Enterprise InstituteFounder and Chairman        Sen...
Today’s Speakers                   James P. Womack, Ph.D.                   - founder and chairman of the Lean            ...
Every Organization Must Address• Purpose – Provide value to customers in orderto prosper.• Process – Through smoothly flow...
Most Organizations Struggle• Purpose is not clearly defined in terms ofsolving the customer’s problems.• Processes are not...
Lean Management• Addresses the purpose problem by identifyingproduct family value streams for specificcustomers:  Makes va...
Lean Management• Addresses the process problem by assigninga leader to each value stream:   Makes current condition of ent...
Vertical Versus Horizontal• Most organizations place the organizationchart and assets in the foreground:  Managers think v...
Horizontal Versus Vertical• Lean management places the horizontal flowof value in the foreground:  Lean managers think hor...
During Lean Transformation• Some organizations:  Create dedicated product/value-stream teams.  Dramatically lessen role of...
The Matrix Problem• If the primary focus in a lean organization is thehorizontal flow of value, as overseen by aresponsibl...
Lean ThinkingFive step approach:• Find a change agent.• Find a sensei (to get the knowledge.)• Seize or create the crisis....
James P. Womack             John ShookLean Enterprise Institute   Lean Enterprise InstituteFounder and Chairman        Sen...
Today’s Speakers                  John Shook                  - senior advisor to the Lean Enterprise Institute;          ...
First, a note on              “What is Lean”?Narrow definition  •   tools  •   cost cuttingBroader definition  •   thinkin...
Second, a note on     “What is Leadership”?Peter Drucker on Leadership:“The greatest leaders of the 20thcentury were Hitle...
The leader’s job at Toyota…First, get each person to takeinitiative to solve problems andimprove his or her job.Second, en...
The Toyota Production SystemGraphics slide. Place graphic within the white box.      Best Quality - Lowest Cost - Shortest...
Graphics slide. Place graphic within the white box.
Kan Higashi to Gary Convis…(NUMMI’s senior Japanese and seniorAmerican leaders)“Lead the organization as if you have nopow...
The Leader’s job is to develop           his or her peopleSPIRIT of Lean Mentorship:“If the learner hasn’t learned, the te...
Extensive Support and Coaching at the    Front Lines of the Organization                 Superintendent                   ...
Leadership:Three ModelsOld “Dictator” Style:        “Do it my way…”1980s “Empowerment” Style:   “Do it your way... ”Lean S...
Leadership at Toyota-From managing numbers to managing the processLeaders at Toyota, like leaders anywhere, want to seemea...
Leadership at Toyota-From the Five Who’s to the Five WhysGood Toyota leaders don’t jump to conclusions or solutions –they ...
Leadership at ToyotaFrom Problem-hiding to Problem-solvingAll actions at Toyota revolve around planning and problem-solvin...
Leadership at ToyotaControl with FlexibilityToyota’s way provides extraordinary focus, direction,“control.”While at the sa...
Leadership at ToyotaP-D-C-AToyota would say this is essentially the P-D-C-Amanagement cycle they learned from Dr. Deming.Y...
P-D-C-A Cycle           GRASP the SITUATION                                 HYPOTHESISADJUST          ACTION PLAN         ...
Lean LeadershipThe Lean Leader leads a very differentway:    It is as different from the commonly accepted   notion of the...
Sr.Mgmt.         System Kaizen         Eliminate         Muri and MuraMiddleMgmt.                            Process-step ...
Problem and PDCA Tools for different levels         Role                            ImpactMUST PROVIDE VISION      SENIOR ...
Problem and PDCA Tools for different levels         Role                Problem:    Impact                             MUR...
Problem and PDCA Tools for different levels                PDCA tool:           Role Policy Management   Problem:    Impac...
Chairman Cho ofToyota:Three Keys toLean LeadershipGo See.  •   “Sr. Mgmt. must spend time on the plant floor.”Ask Why.  • ...
The Thinking Production System                                         Getting people      Best Quality - Lowest Cost - Sh...
Learning and mistakes“There are sometimes too many nay-sayers. In the early days of TPS we wereable to just try things, to...
Learning and mistakes“Continuous improvement comes frommaking mistakes and learning from them."Cheryl Jones, Toyota Group ...
Learning and mistakes“It is a mistake to suppose that men succeedthrough success; they much oftener succeedthrough failure...
Questions & AnswersJames P. Womack             John ShookLean Enterprise Institute   Lean Enterprise InstituteFounder and ...
Lean EventsFebruary 28th to March 1stLean Transformation SummitJoin the Lean Community at the Grand Hyatt, Atlanta,GA, for...
LEI BookstoreThe Lean Enterprise Institute has a largeselection of lean publications and learningmaterials available for s...
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October webinar project_slides

  1. 1. Lean Management and the Role of Lean LeadershipThe presentation will begin momentarily. Please make sure that your pop-up blocker is turned off to view today’s full presentation.
  2. 2. James P. Womack John ShookLean Enterprise Institute Lean Enterprise InstituteFounder and Chairman Senior Advisor
  3. 3. Webinar “Housekeeping” TipsDisable pop-up blockersAdjusting your volume: • Use the slide at the top right of the question box • Adjust within Windows Media Player or RealPlayer • Adjust the master sound control on your system (in the control panel)Viewing slides • Enlarge • Print
  4. 4. Webinar “Housekeeping” TipsAsking questions•Use the “question” box in the lower left corner•Submit questions as they occur to you bytyping in the box, then click submit•Questions will be answered during the Q&Asession at the end of the presentation.
  5. 5. Question and AnswerWe will do our best to answer as manyquestions as possible in the allotted time.Answers to the questions that we cannot get toduring the webinar will be answered on ourwebsite soon.We will notify you when they are available.
  6. 6. James P. Womack John ShookLean Enterprise Institute Lean Enterprise InstituteFounder and Chairman Senior Advisor
  7. 7. Today’s Speakers James P. Womack, Ph.D. - founder and chairman of the Lean Enterprise Institute, a nonprofit training, publishing, and research organization founded in 1997 to help companies create value and eliminate waste.Co-author of:The Machine That Changed the World (Macmillan/Rawson Associates, 1990)Lean Thinking (Simon & Schuster, 1996)Seeing The Whole: mapping the extended value stream (Lean EnterpriseInstitute, 2001)Lean Solutions (Simon & Schuster, 2005)
  8. 8. Every Organization Must Address• Purpose – Provide value to customers in orderto prosper.• Process – Through smoothly flowing valuestreams for design, make, and use.• People – By engaging every employeetouching value streams (including supportstreams) to sustain and improve the flow.
  9. 9. Most Organizations Struggle• Purpose is not clearly defined in terms ofsolving the customer’s problems.• Processes are not clearly specified.• People are not engaged in optimizing thewhole value stream rather than the point wherethey work.
  10. 10. Lean Management• Addresses the purpose problem by identifyingproduct family value streams for specificcustomers: Makes value easier to specify. Makes the flow of value easier to see.
  11. 11. Lean Management• Addresses the process problem by assigninga leader to each value stream: Makes current condition of entire processclear to everyone. Proposes a better “future state” process andtakes responsibility for implementing it. Makes condition of the new “current state”clear to everyone. Proposes a still better “future state”. Etc.
  12. 12. Vertical Versus Horizontal• Most organizations place the organizationchart and assets in the foreground: Managers think vertically to optimize theirarea, department, or function. Horizontal flow of value to customer easilygets lost.
  13. 13. Horizontal Versus Vertical• Lean management places the horizontal flowof value in the foreground: Lean managers think horizontally, with thehelp of value stream leaders. However… Functions are still strong (or even stronger):– Repositories of deep technical knowledge– Home base for employees– Guardians of career paths
  14. 14. During Lean Transformation• Some organizations: Create dedicated product/value-stream teams. Dramatically lessen role of their functions.• Other organizations (including Toyota): Create strong horizontal advocates for product(e.g., Toyota chief engineer.) Create even stronger functions, focusing onknowledge capture and career paths.
  15. 15. The Matrix Problem• If the primary focus in a lean organization is thehorizontal flow of value, as overseen by aresponsible person, yet there are strongfunctions...• How do those doing the actual work in thefunctions avoid the dreaded “two boss” problem? By negotiations between the value streamleader and the function ahead about what isneeded from the function to support the product. The employee has only one boss: the functionhead.
  16. 16. Lean ThinkingFive step approach:• Find a change agent.• Find a sensei (to get the knowledge.)• Seize or create the crisis.• Map your value streams.• Get started on creating better value streams.But…how do lean leaders lead this process?
  17. 17. James P. Womack John ShookLean Enterprise Institute Lean Enterprise InstituteFounder and Chairman Senior Advisor
  18. 18. Today’s Speakers John Shook - senior advisor to the Lean Enterprise Institute; learned lean while working for ten years at Toyota, helping to transfer its production, engineering, and management systems from Japan to overseas affiliates and suppliers. first American employee at Toyotas headquarters in Toyota City, Japan first American kacho (manager) at Toyota Japan former deputy general manager of the Toyota Supplier Support Center former director of the University of Michigan’s Japan TechnologyManagement Program co-author of Learning to See (Lean Enterprise Institute, 1999)
  19. 19. First, a note on “What is Lean”?Narrow definition • tools • cost cuttingBroader definition • thinking, systematic • entire enterprise, business system
  20. 20. Second, a note on “What is Leadership”?Peter Drucker on Leadership:“The greatest leaders of the 20thcentury were Hitler, Stalin and Mao:If that is “leadership”, I want nothingto do with it.”
  21. 21. The leader’s job at Toyota…First, get each person to takeinitiative to solve problems andimprove his or her job.Second, ensure that each person’sjob is aligned to provide value for thecustomer and prosperity for thecompany.
  22. 22. The Toyota Production SystemGraphics slide. Place graphic within the white box. Best Quality - Lowest Cost - Shortest Lead Time Through Shortening the Production Flow By Eliminating Waste Just in Time Jidoka “The right part “Built-in Quality” at the right time in the right amount” •Automatic Machine Stop •Fixed Position Line Stop •Error Proofing •Continuous Flow •Visual Control •Pull System •Labor-Machine Efficiency •Takt Time Production Lines That Stop for HEIJUNKA Abnormalities Standardized Work and KaizenMutual Trust; Employee Development Robust Products and ProcessesStability; TPM; 5S Supplier Involvement
  23. 23. Graphics slide. Place graphic within the white box.
  24. 24. Kan Higashi to Gary Convis…(NUMMI’s senior Japanese and seniorAmerican leaders)“Lead the organization as if you have nopower."
  25. 25. The Leader’s job is to develop his or her peopleSPIRIT of Lean Mentorship:“If the learner hasn’t learned, the teacher hasn’t taught”
  26. 26. Extensive Support and Coaching at the Front Lines of the Organization Superintendent Group Leaders Team & Team Leader
  27. 27. Leadership:Three ModelsOld “Dictator” Style: “Do it my way…”1980s “Empowerment” Style: “Do it your way... ”Lean Style: “Follow me… and let’s figure this out together ”
  28. 28. Leadership at Toyota-From managing numbers to managing the processLeaders at Toyota, like leaders anywhere, want to seemeasurable results.But they know that the financial result is a result of aprocess.They also realize that the financial results reflect thepast performance of that process.Far better is to create a process that can be managedright NOW.
  29. 29. Leadership at Toyota-From the Five Who’s to the Five WhysGood Toyota leaders don’t jump to conclusions or solutions –they try to first size up the situation and then ask “Why?”This focuses on the work and problem at hand, avoidingfinger-pointing seeking of where to place the blame.It also keeps responsibility with the person who is doing thework,This is what truly engages and empowers the workforce.
  30. 30. Leadership at ToyotaFrom Problem-hiding to Problem-solvingAll actions at Toyota revolve around planning and problem-solving.It is assumed that there will be problems, that everything willnot go according to plan.“No problem is problem.”For the system to work, problems must be exposed and dealtwith forthrightly.Hiding problems will undermine the system.
  31. 31. Leadership at ToyotaControl with FlexibilityToyota’s way provides extraordinary focus, direction,“control.”While at the same time providing maximum flexibility.I believe this solves the age-old dilemma – control vs.flexibility – that encumbers all large organizations.
  32. 32. Leadership at ToyotaP-D-C-AToyota would say this is essentially the P-D-C-Amanagement cycle they learned from Dr. Deming.Yet, my own observations say this is precisely the thingthat most companies can’t seem to do.Why?Surely one major reason for this is the way we lead andmanage.
  33. 33. P-D-C-A Cycle GRASP the SITUATION HYPOTHESISADJUST ACTION PLAN CHECK STUDY DO TRYREFLECT
  34. 34. Lean LeadershipThe Lean Leader leads a very differentway: It is as different from the commonly accepted notion of the “enlightened modern manager” as it is the old command and control dictator.
  35. 35. Sr.Mgmt. System Kaizen Eliminate Muri and MuraMiddleMgmt. Process-step Kaizen Eliminate MudaFrontLines FOCUS
  36. 36. Problem and PDCA Tools for different levels Role ImpactMUST PROVIDE VISION SENIOR Likes the resultsAND INCENTIVE MANAGEMENTMUST LEAD THE ACTUAL MIDDLE Left with changed,OPERATIONAL CHANGE MANAGEMENT uncertain role LikesMUST “DO” FRONT LINES the involvement A Difficult Struggle at the Mid-management and First Line Supervisory Level
  37. 37. Problem and PDCA Tools for different levels Role Problem: Impact MURA & MURIMUST PROVIDE VISION SENIOR Likes the resultsAND INCENTIVE MANAGEMENT Problem:MUST LEAD THE ACTUAL MURA & MURI MIDDLE Left with changed,OPERATIONAL CHANGE MANAGEMENT uncertain role Problem: MUDA LikesMUST “DO” FRONT LINES the involvement A Difficult Struggle at the Mid-management and First Line Supervisory Level
  38. 38. Problem and PDCA Tools for different levels PDCA tool: Role Policy Management Problem: Impact MURA & MURAMUST PROVIDE VISIONAND INCENTIVE PDCA tool: SENIOR Likes the results MANAGEMENT A3 or VSM Problem:MUST LEAD THE ACTUAL MURA & MURI MIDDLE Left with changed,OPERATIONAL CHANGE MANAGEMENT uncertain role PDCA tool: Problem: Standardized Work MUDA Likes MUST “DO” FRONT LINES the involvement A Difficult Struggle at the Mid-management and First Line Supervisory Level
  39. 39. Chairman Cho ofToyota:Three Keys toLean LeadershipGo See. • “Sr. Mgmt. must spend time on the plant floor.”Ask Why. • “Use the “Why?” technique daily.”Show Respect. • “Respect your people.”
  40. 40. The Thinking Production System Getting people Best Quality - Lowest Cost - Shortest Lead Time to think and Through Shortening the Production Flow By Eliminating Waste Just in Time take initiative Jidoka “The right part isBuilt-in key!” “ the Quality at the right time in the right amount” •Automatic Machine Stop •Fixed Position Line Stop •Continuous Flow •Error Proofing •Pull System •Visual Control •Takt Time •Labor-Machine Efficiency Production Lines HEIJUNKA That Stop for Abnormalities Standardized Work and KaizenMutual Trust; Employee Development Robust Products and ProcessesStability; TPM; 5S Supplier Involvement
  41. 41. Learning and mistakes“There are sometimes too many nay-sayers. In the early days of TPS we wereable to just try things, to make mistakesand learn from them. That’s the spirit weneed.”Mr. N. HayashiFormer general manager of Toyota’s TPS Office
  42. 42. Learning and mistakes“Continuous improvement comes frommaking mistakes and learning from them."Cheryl Jones, Toyota Group Leader“Hilly Krystal gave us a place to try andfail.”Patti Smith
  43. 43. Learning and mistakes“It is a mistake to suppose that men succeedthrough success; they much oftener succeedthrough failures. Precept, study, advice, andexample could never have taught them so wellas failure has done.” Samuel Smiles British author of “Self Help” (favorite of Sakiichi Toyoda in late 1800s)
  44. 44. Questions & AnswersJames P. Womack John ShookLean Enterprise Institute Lean Enterprise InstituteFounder and Chairman Senior Advisor
  45. 45. Lean EventsFebruary 28th to March 1stLean Transformation SummitJoin the Lean Community at the Grand Hyatt, Atlanta,GA, for the first annual Lean Transformation Summitsponsored by the Lean Enterprise Institute.For more details visit: www.lean.org
  46. 46. LEI BookstoreThe Lean Enterprise Institute has a largeselection of lean publications and learningmaterials available for sale in our bookstore.Visit www.lean.org to learn more.
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