The Lean Transformation


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For senior managers, this explains what must be done for any organization to make the complete transformation to lean.

The Lean Transformation

  1. 1. The Lean Transformation VerseOne … orchestrating your LEAN solutions
  2. 2. Lean is … A powerful combination of techniques (and attitudes) to increase business performance, based on the concepts of eliminating waste and adding value (and capacity).
  3. 3. Eight Forms of Waste • D efects or rework • O verproduction • W aiting • N on-utilization of talent • T ransportation or travel • I nventory • M otion • E xtra Processing
  4. 4. trans´for·mation n. – a change in form or appearance
  5. 5. Transformation? OR OR ?
  6. 6. met´a·mor´pho·sis n. - real and permanent change in cellular structure
  7. 7. Transformation Metamorphosis
  8. 8. Lean Transformation… • It is not just about using new concepts and tools • It is about changing your organization’s social system (e.g. culture, thinking and behavior) • It does require extraordinary leadership and vision • It is well worth the effort and the difficult journey X
  9. 9. The Toyota Way Principles • Long-term Philosophy as the Foundation • The Right Process Will Produce the Right Results • Add Value to the Organization by Developing Your People and Your Partners • Continuously Solving Root Problems Drives Organizational Learning
  10. 10. Transformation Timeline • Typically three full years to see the transformation (usually longer) • Most organizations do not sustain to that point
  11. 11. Transformation Phases • Phase One – Call To Action • Phases Two – Lean Education • Phase Three – Value Stream Mapping • Phase Four – Initial Lean Projects • Phase Five – Intermediate Lean Projects • Phase Six – Advanced Lean Projects
  12. 12. Call To Action • The “defining moment” • Deep-down, “gut level” statements re: lean • Must be demonstrated a variety of ways • Word and deed must match continually • Overall lean strategies must be developed • Identify the “burning platform”
  13. 13. The “Burning Platform” The be all-end all, ultimate, do or die, can’t fail, never wavering, “condition red”, no turning back, compelling need, driving force or inspiring purpose for getting lean. WHAT IS YOURS?
  14. 14. Lean Education • Lean is simple but not easy • Basic education is required for all • Senior leaders must show the way • Conferences, seminars, books, articles and participation in “events” • Create “Lean Newstands” or information centers
  15. 15. Value Stream Mapping • Visual representation of work flows and information flows • Current and future state are charted • Opportunities for improvements are seen • Lean implementation plan is the result • “Hit list” is developed
  16. 16. Initial Lean Projects • Small projects to begin tool use • Build level of employee comfort with tools • Demonstrate immediate results (metrics are critical) • Gain broader base of support across the organization
  17. 17. Intermediate Lean Projects • Small pockets of lean will begin to appear • Drives the ever-increasing lean “appetite” • Consider additional in-depth lean education at this point • Maintain the forward, positive momentum • Re-validate the “burning platform”
  18. 18. Advanced Lean Projects • After “low hanging fruit,” it becomes more difficult to squeeze out simple waste • By now, noticeable increases in flow and capacity should have appeared • Major opportunities still remain • This phase never ends
  19. 19. Transformation of Behaviors Behavior Traditional Lean Development Do As Told On-going Learning People Costs Assets Information Restricted Shared Work Place Static Dynamic Problems Rejection Treasures
  20. 20. Reasons Others Have Failed 1. Lack of absolute (and visible) top-down management commitment 2. Lack of communication to all levels 3. Lack of middle manager/supervisor buy-in and involvement 4. Not understanding that this is really about people 5. Lack of customer focus From “How to Prevent Lean Implementation Failures” by Larry Rubrich
  21. 21. Reasons Why Others Have Failed 6. Lack of improvement measurements 7. Lack of lean leadership at all levels 8. People actions not aligned with lean enterprise goals (policy deployment) 9. Using kaizen events as the sole improvement method (e.g. 5S, TPM…) 10. Bonus pay systems where the only measure is company profitability From “How to Prevent Lean Implementation Failures” by Larry Rubrich
  22. 22. Key Lessons From Others • Lean is not a part-time effort • Lean is more than tools, it’s also behaviors • There will be resistance from within • There is a lean “roadmap” but there is no lean “cookbook” • Use outside advice to remain “on track” • Stay the course, getting lean takes a long time
  23. 23. VerseOne … orchestrating your LEAN solutions VerseOne Inc. 708-301-5566 Homer Glen IL 920-882-1474 Appleton WI 877-301-4595 Toll Free
  24. 24. Thank You