in Lean Thinking
Dr Nick Rich
Cardiff School of Management
Nick Rich: Career History
‘A frustrated Engineer!’
• Associate Dean Cardiff School of Management
– Centre for Lean Education, Application & Research CLEAR
– Honorary Associate Professor Warwick Medical School
– Chief Industrial Engineer (2012 Olympic and Paralympic Medal
– Co‐Founder at the Lean Enterprise Research Centre
• With Dan Jones
– Toyota Motor Corporation Japan Senior Research
– UK Government Reports & 5 Books
• What do we need to learn to improve business performance through Lean
• How do we apply the scientific method to our lean journeys?
• How can we use Policy Deployment to learn the vital few performance gaps for the
organisation to close?
• What alternatives ways are there to deepen both our organisational and individual
skills to create value for customers?
• How are the best lean organisations educating their people in lean?
• How can we effectively coach, develop and mentor leaders and employees on the
• What do we need to share with our people in order to sustain and further
• How can we share and communicate our efforts?
• What roles do Policy Deployment, coaching and the A3 process play in sharing?
What really works: The 4+2 Formula for
Sustained Business Success
• Professor Nitin Nohria, Harvard Business School
– Most management tools have little effect on results
– Why? No meaningful link between new techniques and
– There is a strong correlation with good management
practices using tools to help achieve a particular
– There is danger in focusing too intently on the tool. It
leads to losing sight of the long‐term organisational
“Full speed in a least six critical areas”
• All of the four primary features:
– a clear, focused, well‐communicated strategy
– superb operational execution
– a performance‐orientated culture
– a flat, flexible organisational structure
• Plus two of the secondary features:
– recruitment and retention of talented staff
– strong demonstrable commitment from leaders
– service transforming innovations
– grow through mergers and partnerships
So Where Are You?
• Do you think at the system level
• Do you think beyond the
current ‘voice of the customer’
and over the longer term?
• Optimised your current
• Prepared to compete now and
in the future?
So What Do We Need?
• Policy Deployment to set direction
• Value stream management
• A3s to control the rate of change
• Operational Excellence, standard work, and
kaizen for tactical improvement (supply chain)
• Education, training, coaching & Mentoring for
Supplier Evaluation System
Adapted From Merli 1996
Policy Deployment X Chart
The A3 Journey
Mapping Indirect Processes
• Lean should drive
• Departments focused on
value generation will
become more effective
• Knowledge will flow
• Sharing goes beyond the
boundaries of the
Basic Discipline SAFETY AND MORALE
QUALITY UP = COST DOWN
DELIVERY UP + QUALITY GOOD = COST DOWN
PROCESS FLEXIBILITY UP = COST DOWN
COST DOWN FOCUS (SCM)
The Competitive Keys
COST DOWN FOCUS (by Design)
Mastering Your Operating System
Total Quality Management
Solving by Teams
Toyota Production System
And standardised work
Approach to flow
Total Productive Maintenance
And an approach to system
Reliability for interrupted flow
A Single Organisational System
Beyond The Shopfloor
Characteristics Old Model Lean Paradigm
Strategy Planned Entrepreneurial
Structure Hierarchy Cross-Functional/Network
System Rigid or C.I. Flexible within boundaries
Staff Title + Rank Helpful
Style Problem-Solving Transforming
Skills To Compete To build
Shared-Value Better-Sameness Meaningful-Difference
Focus Process Management Institution and network
Stability – Reduce
Change and rate of
Leadership Dogmatic Inspirational/Listening
The ‘Glass Ceiling’
Stall Point 1
Stall Point 2
• Value does not keep rising as you optimize
• You cannot rely on being just a bit better –
you win orders and deliver value in a different
• We believe we need knowledge workers and
remain in buying graduates and retraining
• Some organizations believe we need
boundary spanning workers
• Why compromise? Training and Education
Our Operating Models Will Fail!
Organisational Competence: There
is a difference
Information technology application
Critical thinking/Problem solving
Percent of employers who believe skill will become more important over next five years
Broad competencies: Employers
expect them to become more
Source: Conference Board. (2006). Are they really ready to work? (p. 49, Table 12)
Time to Change
absorb new work
Teams QCD Focus
Supply chain specialists, Schedulers, designers, marketeers, and maintainers!
Senior Management too!
Training and Education: The Differences
– Training—to improve job skills and performance
– Education—to improve knowledge not
connected to a job (a system)
– Training—about learning “how” to do things
– Education—about learning “what” underpins
• Time Period
– Training—short‐term and immediate
– Education—long‐term and annuity
Educating People in Lean
Let’s start talking about the business
Are You Hollowing
Advantage of Your
Which type of employee?
Why do they need it?
Educating In Lean
5S Autonomous Work
The middle Management
Who Knows How and What?
Education & Training
Source: adapted from Toyota Motor Corporation (Japan)
Engagement & Meaning
Peculiarly British Disease?
“Hello, My name is John and I
am an actuary. I currently work
for ABC Actuaries”.
What does that tell you about
What does John Value? How
important is his role in an
Fear & Report
Adapted from Deming !
Not Very Impressive Progress! TQM
Where’s the gap?
Which type of employee?
Why do they need it?
Educating In Lean
What Are The Barriers
What Are The
More collaboration in the
In top 1,000 companies:
Use of self-managing
work teams rose from
28% in 1988 to 65% in
Work teams are
Teaching & Facilitating
– 1‐2‐1 or in groups involves telling (teacher leads)
– Subject matter expert
– Basic knowledge that underpins the business
– Measured output
– Helping individuals and groups learn (to achieve
Barriers and Enablers?
• What prevents you from
• How many staff would you
need to have a critical mass to
match your business
• What would enable staff to
maintain their knowledge?
In What and How
Should We Educate?
How do we engage with
What interest would
they have in lean?
Why haven't they
engaged so far?
• A relationship between a more experienced staff
member and to help a less experienced individual
learn to be effective in their role/future role
• The mentor uses their experience and network of
contacts to advise and develop the other person.
• A mentor is a learning role model
A coach is someone to learn with – the coach helps the
individual to reflect and learn from their experiences/build
models with the individual. Someone to learn with.
The Best Use of Coaching
• Developing leaders
• Support during lean transformations
• For key staff when undergoing individual
• Implementing new skills and lean practices
(cultural and behavioural change
• Improving team learning especially for
• Increasing organisational learning
The GROW Coaching Model
Whitmore, Sir John, 2009, Coaching For Performance. (4th Edition), Nicholas Brearley Publishing
Experiential Learning Cycle
Adapted from Kolb D.A. (1984) 'Experiential Learning experience as a source of learning and
development', New Jersey: Prentice Hall
• John Bicheno Lean Enterprise MSc
• 20Twenty Programme
• Sector Skills Pilots
• Healthcare Improvement (Accredited)
• Corporate Degrees and distance learning
degrees (Undergraduate and Masters)
• Professional Doctorates