The document discusses the history and principles of lean culture, emphasizing the importance of respect for people and continuous improvement across various waste reduction strategies. It contrasts traditional lean practices focused on production with customer service-oriented approaches while providing guidelines for effective leadership and organizational change. Through engagement and leadership participation, organizations can experience significant improvements in quality, productivity, and overall performance.

1. Lean Culture Introduction

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. What Is Lean?
Respect for
People
Remove
Start Now
Waste
Continuously
Flow
Improve

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. 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. 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. 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. 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. 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. (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. Flow
 Go from silos to
customer based
groups
 Move from one
process to
another
smoothly
 Single piece flow

12. Start Now
 Boyd’s Law of
iteration
 Experiment
 100-50 rule

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. (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. 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. Leadership
 Strategic
Alignment
 Daily Standard
Work
 Gemba Walks

17. Visual
Controls
 Visuals to help
prevent errors
 Data about
process is easy
to see
 A 3rd grade level

18. Feedback
 Instantaneous
feedback
 Corrective action
close to
instantaneous
 Project
management
done in a visual
way

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. Stick To The
Process
 Review
production
process
adherence
 Gemba walks
 Assign owners to
process misses
 Top 3 issues
Pareto chart

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. 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. 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. Questions?
ankit@TheLeanWayConsulting.com
www.TheLeanWayConsulting.com
http://TheLeanWayConsulting.blogspot.com
(615) 779-3629