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Educating People in Lean Thinking

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By Dr Nick Rich of Cardiff School of Management shown at Lean Summit 2012 - Learning - Educating - Sharing on 27/28 November

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Educating People in Lean Thinking

  1. 1. Educating People  in Lean Thinking Discussion Workshop Dr Nick Rich Cardiff School of Management
  2. 2. 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  Programme)  – Co‐Founder at the Lean Enterprise Research Centre • With Dan Jones – Toyota Motor Corporation Japan Senior Research  Fellow  – UK Government Reports & 5 Books
  3. 3. Our Workshop • LEARNING • What do we need to learn to improve business performance through Lean  Thinking? • 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? • EDUCATING • 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  job? • SHARING • What do we need to share with our people in order to sustain and further  improve? • How can we share and communicate our efforts? • What roles do Policy Deployment, coaching and the A3 process play in sharing?
  4. 4. 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  long‐term performance – There is a strong correlation with good management  practices using tools to help achieve a particular  objective – There is danger in focusing too intently on the tool. It  leads to losing sight of the long‐term organisational  objectives 
  5. 5. “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
  6. 6. So Where Are You? • Do you think at the system level  or lower? • Do you think beyond the  current ‘voice of the customer’  and over the longer term? • Optimised your current  services?  • Prepared to compete now and  in the future?
  7. 7. 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  sustainability
  8. 8. Improvement Areas Performance Indicators Targets& Measures Target For Departmental Mgrs TOTAL £1.108m Reduce Stocks Reduce Inspection Supplier Evaluation System Other 1 Plant Effectiveness Other 2 £3.3m-£2.75m OEE50-85% Direction2 Ave55%-87% -50% Direction1 £550,000 £375,000 £133,000 £40,000 £10,000 Department InBuffers InPoorDelivery InSupplierFailure InOperatingCost InInspectioncosts P.Planning Manufacturing QualityControl Maintenance Adapted From Merli 1996 JFMAMJJ 2006 Policy Deployment X Chart
  9. 9. Value Stream Mapping VSM
  10. 10. The A3 Journey Value Stream  Transformation Future Focused  Business  Case &  Challenge
  11. 11. Mapping Indirect Processes • Lean should drive  collaboration between  departments  • Departments focused on  value generation will  become more effective • Knowledge will flow  between departments • Sharing goes beyond the  boundaries of the  organisation chart
  12. 12. Basic Discipline  SAFETY AND MORALE QUALITY UP  = COST DOWN DELIVERY UP + QUALITY GOOD = COST DOWN PROCESS FLEXIBILITY UP = COST DOWN COST  DOWN FOCUS (SCM) TIME The Competitive Keys  For Complexity  Exploitation COST  DOWN FOCUS (by Design) EFFECTIVENESS Mastering Your Operating System 
  13. 13. Total Quality Management Practices and  Problem  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 ‐ Consensus‐ QUALITY DELIVERY RELIABILITY
  14. 14. Total Quality  Management  Approach Lean Production  System Design Total Productive Maintenance Approach Workplace Organisation CANDO/5S Visual Management Teams Six Sigma  Statistical Process Control  Design of Experiments Taguchi Methods Early Equipment Management Reliability Centred Maintenance Level Production Supplier Pull Systems Cells & Layout Quick Changeover Problem‐Solving Problem‐Solving Problem‐Solving Autonomous Maintenance Planned Maintenance Quality Maintenance OEE Analysis Mistake Proofing Standardised Work Mistake ProofingMistake Proofing Brainstorming Cause and Effect Pareto Quality Focus Delivery Focus Cost Focus © Nick Rich 2000
  15. 15. Healthcare Operating Models
  16. 16. 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 Source of Strength Stability – Reduce Costs Change and rate of adaption/Innovation/Profit Leadership Dogmatic Inspirational/Listening
  17. 17. The ‘Glass Ceiling’  Business Results TIME Full Potential The Improvement Stall Point 1 Profit Glass Ceiling Problem Solving Doing Job Profitability Growth & Innovation Value Stream Mapping The Improvement Stall Point 2 DESIGN
  18. 18. • Value does not keep rising as you optimize  processes • You cannot rely on being just a bit better – you win orders and deliver value in a different  way • We believe we need knowledge workers and  remain in buying graduates and retraining  mode • Some organizations believe we need  boundary spanning workers • Why compromise? Training and Education Our Operating Models Will Fail!
  19. 19. Organisational Competence: There   is a difference
  20. 20. 64% 66% 67% 67% 74% 74% 75% 75% 63% 64% 64% 64% 50% 75% Foreign languages Self-direction/Lifelong learning Written communications Ethics Work ethic Oral communications Leadership Handling diversity Creativity/Innovation Teamwork/Collaboration 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  important Source: Conference Board. (2006). Are they really ready to work? (p. 49, Table 12)
  21. 21. Time to Change                    Current Role Training Reporting &  Auditing  Checking  and  expediting Problem  Resolution Data Chasing Needed Role business effectiveness  Projects Multi‐skilling to  absorb new work  demands RESEARCH  Cross functional Teams QCD Focus Training Data Chasing ValuableNewActivities Adapted Sony Corporation Supply chain specialists, Schedulers, designers, marketeers, and maintainers! Senior Management too!
  22. 22. Training and Education: The Differences • Objective – Training—to improve job skills and performance – Education—to improve knowledge not  connected to a job (a system) • Focus – Training—about learning “how”  to do things  – Education—about learning “what” underpins   doing • Time Period – Training—short‐term and immediate – Education—long‐term and annuity
  23. 23. Educating People in Lean  Thinking Let’s start talking about the business  model
  24. 24. Are You Hollowing  Out The  Competitive  Advantage of Your  Business or  Client? Operational focused  training? Education and  knowledge? 
  25. 25. Which type of employee? Why do they need it?  Who Needs  Educating In Lean  Thinking?
  26. 26. REACTIVE CONDUCTING ROUTINE WORK PREVENT PROBLEMS 50% 100% PROJECTS CONDUCTING Standard  OPERATIONS 50% 100% IMPROVEMENT PROJECTS 5S Autonomous Work The middle Management ‘Systems designers’ Specialists Associates Executive Management ‘Direction Setters’ Who Knows How and What?
  27. 27. Education & Training  Investment Executives Managers Teams Specialists Specialists
  28. 28. Organisational Level Top Professionals  & Executives Department  and section  managers Team Leaders Associates Key Contribution Improvement Innovation Daily  Maintenance Source:  adapted from Toyota Motor Corporation (Japan) Engagement & Meaning
  29. 29. 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  John? What does John Value? How  important is his role in an  organisation?
  30. 30. Quality 
  31. 31. Constancy Of Purpose Break Down Departmental Barriers Cease Doing  Business On  Price Alone Create Leadership Drive Out  Fear & Report Problems On The  Job Training Exceed Expectations Continuously  Improve Eliminate Slogans Create Pride In Work Eliminate Quota  Thinking Adapted from Deming ! Not Very Impressive Progress! TQM
  32. 32. Where’s the gap? Laboratory Staff Maintainers Trainers H&S Staff
  33. 33. Which type of employee? Why do they need it?  Who Needs  Educating In Lean  Thinking?
  34. 34. What Are The Barriers  To Knowledge  Transfer? What Are The  Enablers?
  35. 35. More collaboration in the  workplace In top 1,000 companies: Use of self-managing work teams rose from 28% in 1988 to 65% in 2005. Work teams are increasingly global.
  36. 36. Teaching & Facilitating • Teaching/Education  – 1‐2‐1 or in groups involves telling (teacher leads) – Subject matter expert – Basic knowledge that underpins the business – Measured output • Facilitation – Helping individuals and groups learn (to achieve  an objective)
  37. 37. Barriers and Enablers? • What prevents you from  educating staff? • How many staff would you  need to have a critical mass to  match your business  competence? • What would enable staff to  maintain their knowledge? 
  38. 38. In What and How  Should We Educate? How do we engage with  them? What interest would  they have in lean? Why haven't they  engaged so far?
  39. 39. Mentoring • 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.
  40. 40. The Best Use of Coaching • Developing leaders • Support during lean transformations • For key staff when undergoing individual  change • Implementing new skills and lean practices  (cultural and behavioural change  management)  • Improving team learning especially for  ‘indirect’ staff • Increasing organisational learning
  41. 41. The GROW Coaching Model Will and  Commitment Goal Reality Options   Whitmore, Sir John, 2009, Coaching For Performance. (4th Edition), Nicholas Brearley Publishing
  42. 42. Experiential Learning Cycle Adapted from Kolb D.A. (1984) 'Experiential Learning experience as a source of learning and  development', New Jersey: Prentice Hall Concrete Experience Reflective  Observation Abstract  Conceptualisation Active  Experimentation
  43. 43. Effective Educational  Programmes • John Bicheno Lean Enterprise MSc  Programmes • 20Twenty Programme • Sector Skills Pilots • Healthcare Improvement (Accredited)  Programmes • Corporate Degrees and distance learning  degrees (Undergraduate and Masters) • Professional Doctorates
  44. 44. Education At Sea
  45. 45. Introduction & Initial Theme THEME 2:The NHS: Political Context and  Making a Difference    THEME 4: The Principles of Service  Improvement THEME 5: Defining Your  System/Lean Principles THEME 3:  Leadership that makes a  difference THEME 6: The Distinction Self Thought Leadership Seminar 1 Initial  Identification/Review of  Participants OD  Project Block One: Day1 Block One: Day2 Reflection and Practice 1 Month Introduction & Review/Preview Theme 7: Mapping Your System Theme 9: Problem Solving  Theme 10: Intervention Management (A3) Theme 8:  Evaluating and Identifying with  Leadership Styles Theme 11:  Creating Capacity/Personal  Change Thought Leadership Seminar 2 Reflection and Practice Introduction & Review/Preview Theme 12:  Measuring Success Theme 14: Lean Solution Management  Theme 13: Creating Capacity/Organizational  Change Participant OD Project Posters  Agreement of Co‐Coaching Partnerships Thought Leadership Seminar 3 Reflection and Practice Introduction & Review/Preview Theme 15: Creating Communities of Best  Practice Theme 17:  Complex Adaptive  Leadership Master Class Theme 16:  High Performance  Coaching  Theme 17: Complex Adaptive Master  Class (Plenary) Thought Leadership Seminar  4 Reflection and Practice Introduction & Review/Preview Theme 18:  Structures & Sustainability Participant Presentations (4 Groups) Participant Presentations (4 Groups) Critical Reflections: Sustaining  &  Embedding  Practices  Graduation  Sustainable Change  Block Two: Day1 Block Two: Day2 Block Three: Day1 Block Three: Day2 Block Four: Day1 Block Four: Day2 Block Five: Day1 Block Five: Day2 0900 to 1230 1330 to 1600 1730 to 1830 Refining and Agreeing Participants  OD  Project
  46. 46. Summary and Your  Organizational Audit
  47. 47. Thank You! • Know how and Know why • Learning and levels: – Do it right  – Do it better  – Do it differently • What about your operating model? 

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