SlideShare a Scribd company logo
1 of 20
Download to read offline
4th Edition Spring 2010

The home of Lean Thinking



Lean
Learning
Is it the key enabler to sustainable
continuous improvement?

Case study:
What effect did treating the
root cause have on Allergy
Therapeutic’s bottom line?

Managing risk proactively:
How to implement a zero
defects culture

Ready for the upturn?
Now’s the time to think Lean
The home of Lean Thinking




             In this edition…
          1        Welcome
                   from Robin Jaques




         2         Lean Learning
                   The key enabler to sustainable continuous improvement?




         6         Ready for the Upturn?
                   Now is the time to think Lean




         9         Online Lean Learning
                   A new alliance is formed




        10         Case Study
                   How have Lean problem solving techniques helped
                   Allergy Therapeutics?




        14         Zero Defects
                   A proactive approach to managing risk




        16         Information and Events
                   Find useful events, websites and essential reading here




The home of Lean Thinking
The home of Lean Thinking




     Welcome
      to the home of Lean thinking.


      Welcome to Source, in which         We are also delighted to announce
      we strive to bring you the latest   a partnership with Leading Edge
      Lean Thinking and examples of       Group, to promote and develop
      successful Lean implementation to   online learning solutions.
      help you with your own business
                                          In the case study, Allergy
      improvement journey.
                                          Therapeutics tell us how they
      Experience has taught us that the   tackled the root causes of variability
      development of Lean skills and      in their production process, with
      knowledge inside an organisation    dramatic results. The adjacent
      is key to sustaining a culture of   article describes the theory behind
      improvement and translating         their approach and looks at the
      Lean results from a short lived     tools available to help us to make
      programme to ‘a way of life’.       ‘zero defects’ a reality whatever
                                          the environment.
      In this edition, Gary Griffiths
      shares what he has learned from
      planning, preparing, delivering                                                                Robin Jaques
                                                                                                  Managing Partner
      and measuring internal Lean
      education programmes.
                                          Robin Jaques




                                                                                   The home of Lean Thinking 1
Lean Learning




       Lean Learning
                              – the Key Enabler for
                              Sustainable Continuous
                              Improvement
                              By Gary Griffiths




2 The home of Lean Thinking
Lean Learning




                      During the past                 On this journey, one major piece of              For any corporate learning programme to
                      15 years I have                 learning for me has been how corporate           succeed, I believe you must:
                                                      education, done well, not only helps a
                      had the privilege               business to move forward, but can be
                                                                                                       • Align and integrate your Lean learning
                      of working with a               the critical factor in creating and sustaining
                                                                                                         programme with the business strategy
                                                                                                         (note: REALLY align it for the skills
                      number of leading               a business wide culture of continuous
                                                                                                         of today and changing capabilities of
                      organisations to                improvement.
                                                                                                         tomorrow)
      develop a business that has                     The lessons I have learned have not come
                                                                                                       • Develop a programme of Lean learning
      both the process capability and                 from one single organisation in a single
                                                                                                         that concurrently meets the needs
      behavioural culture needed to                   sector and geographical region but have
                                                                                                         of the organisational levels (senior
      achieve that common “holy                       been compiled from working on a variety
                                                                                                         management, middle management,
                                                      of Lean learning programmes, and these
      grail” of sustainable continuous                                                                   team leaders and workers)
                                                      lessons are summarised in figure 1.
      improvement. Having worked                                                                       • Create a “Learning System” of
      in such diverse sectors as                      The Lean Education Model                           continuous development for
      health, automotive, defence,                                                                       individuals and the business (it’s not
                                                      Organisations are in business to make
      service, food processing and                    a profit and grow by offering better
                                                                                                         just about course content it’s about
      retail across the five continents                                                                  workplace application)
                                                      services to their clients, customers
      of the world I have experienced                 and stakeholders. Any Lean learning              • Ensure that any Lean training courses
      a range of approaches to Lean                   programme therefore needs to give its              are the start of the learning not the
      implementation, some inevitably                 employees and partners the capability              end (you will need to apply the Plan-
                                                      to support the business vision and goals.          Do-Check-Act rigorously to your Lean
      more successful than others.
                                                      Unfortunately, learning programmes often           learning system)
                                                      fall short of this purpose.
                                                                                                       • Recognise that you can’t do it all by
                                                      Hopefully this article will give you some          yourself (the business competence
                                                      “food for thought” on how to develop a             of most organisations is NOT always
                                                      more meaningful and sustainable approach           learning and development so use
                                                      to Lean learning.                                  partners to help).
                                                                                                       These critical factors are not exhaustive
                                                                                                       and are dependent on your situational
                                                                                                       needs and level of capability – more
                                                                                                       emphasis may be needed in one or more
                                                                                                       areas. Having said that, for the Lean
                                                                                                       learning programme to begin to make a
                                                                                                       difference, all of these factors need to be
                                                                                                       carefully considered and applied.
                                                                                                       To help us think this through I will briefly
                                                                                                       discuss the essential elements of each
                                                                                                       factor. Remember what we want is a
                                                                                                       Lean learning programme that ensures
                                                                                                       engagement and provides ongoing
                                                                                                       evidence of continuously improving
                                                                                                       business results whilst providing space for
                                                                                                       individual and team development.


      Figure 1 – Lessons learned from implementing Lean learning programmes




                                                                                                                   The home of Lean Thinking 3
Lean Learning




      Align Lean Learning to                          Concurrent Multi-level                        Develop a Lean
      Business Strategy                               Lean Learning                                 Learning System
      • Deploy Lean learning as part of your          • Provide appropriate Lean learning for       • Look at learning as a process. The most
        business strategy. In many organisations        all levels. Learning is not a luxury or a     successful organisations approach Lean
        training is treated as an optional activity     reward for high achieving employees.          learning as an integrated system, not as
        driven by the “nice-to-have” skills of          Learning is crucial to the development        a secondary or functional activity. Be
        today but not by the “must-have”                and success of an organisation and            clear on what you want the programme
        changing competencies of tomorrow.              should be approached as a whole-of-           to achieve and design a full end-to-end
        During the strategy formation and               organisation experience involving all         or life cycle learning framework with
        deployment cycles we can use tools              employees in some form of structured          appropriate systems to monitor and
        to envision what tomorrow’s business            learning and development. While the           manage successful fulfilment of the
        will look like and which new skills             type of content and the level at which        defined value criteria.
        and competencies will be needed to              a programme is delivered may vary,
                                                                                                    • Share good practice across the business.
        achieve it.                                     learning and development should be
                                                                                                      Different areas of organisations usually
                                                        continuous and involve all levels in an
      • Link Lean learning to individual                                                              have certain training systems that are
                                                        organisation, providing a common thread
        Performance Development                                                                       tailored to suit their specific learning and
                                                        via the Lean learning content.
        Programmes - what gets measured                                                               development requirements. Sharing what
        gets done, especially in large                • Link Lean learning to roles and               is working well can also help reinforce
        organisations. Therefore, the learning          responsibilities. Learning needs to be        the organisation’s core values.
        and development of employees needs              tailored to the current and emerging
                                                                                                    • Translate Lean learning to added value
        to align with the organisation’s strategic      skills necessary for employees to be
                                                                                                      competence. Corporate education
        goals and cascade to the individual             effective in their roles. The learning
                                                                                                      needs to involve more than just passive
        performance development plans of                should combine common skills and
                                                                                                      attendance at a course. The programme
        each employee.                                  competencies required for specific
                                                                                                      should encourage participants to break-
                                                        functions and responsibilities in
      • Continually question how Lean learning                                                        out into groups to discuss issues, interact
                                                        the organisation as well as other
        enables performance. It is important                                                          with their co-learners, and have the
                                                        competencies, such as situational
        to conduct periodic reviews to ensure                                                         opportunity to apply or experiment with
                                                        leadership, coaching, facilitation and
        employee learning is adaptable and                                                            concepts and tools. Employees with a
                                                        team-work skills.
        relevant to the organisation’s goals as                                                       proven track record for the successful
        well as the employees’ requirements.          • Create mixed level networks. A                and continued application of learned skills
        In addition, programme content                  progressive learning environment              and competence need to be recognised
        needs to be kept up-to-date and                 should remove all forms of rank and           and rewarded accordingly.
        relevant to the evolving strategic              superiority so that employees interact,
        goals of the organisation.                      share experiences, ideas and learn from
                                                        each other, regardless of position or
                                                        status. Use the “Action-Learning set”
                                                        methodology which encourages groups
                                                        to examine real and personal issues they
                                                        are faced with so that the group can
                                                        work out some options for improvement
                                                        but more importantly agree on a
                                                        collaborative set of improvement actions.




4 The home of Lean Thinking
Lean Learning




      Apply a Plan-Do-Check-Act                         Partner with Lean                                As I mentioned at the start
      Methodology                                       Learning Expertise                               of this brief insight into
      • Plan every programme thoroughly.                • Consider partnering with external              Lean learning, I have been
        The success of a good Lean education              education and training providers, e.g.         privileged to work with many
        programme starts with good planning.              universities. These providers can bring
                                                                                                         great companies over the
        The planning phase needs to consider              objectivity to programme design and
        the realistic learning goals, the current         development and can often introduce the        years. Each one has set out
        skills of the participants and their learning     latest thinking, concepts and methods,         to develop its people and
        styles. The planning process also needs           which might not be accessible to               processes to help continuous
        to define the content and structure and           internal resources. Online Lean learning       performance improvement and
        any support materials and teaching aids           packages are also worth considering as
        that will be required. It is vital during         part of a structured skills development
                                                                                                         each one has developed an
        the planning phase to clarify the desired         programme. They are available for all          approach of their own. Having
        (and measurable) outcomes and how                 levels, externally accredited in many cases    experienced these different
        participants will demonstrate their level of      and, while individuals participate online at   approaches, I truly believe that
        understanding and competence gained.              their own pace, the organisation retains       the critical factors above are
                                                          overall visibility of the progress that’s
      • Create a listening process. While an
                                                          being made.
                                                                                                         what make the difference in
        organisation will have learning goals, it is                                                     the most successful cases. Any
        also important to listen to the views of        • Join external Lean learning networks.
        stakeholders. Consult with stakeholders           Interacting with like-minded people
                                                                                                         organisation that incorporates
        to explore topics and issues they would           stimulates and challenges traditional          these critical factors in its
        like to be addressed. All too often course        thinking. By joining an external learning      learning programme will find
        evaluation forms are left in the back of          network, organisations can expand the          that they move closer towards
        the HR information cabinet and are not            perspective their employees have to a          the “holy grail” of sustainable
        used to take the programme onto the               greater extent than they would when
        next level, so please make sure you               their reference circle is internal only.
                                                                                                         continuous improvement
        continuously and rigorously apply to                                                             in order to provide better
                                                        • Look for help to develop learning
        the principle of P-D-C-A.
                                                          frameworks. There is significant value in
                                                                                                         services and profitable growth.
      • Check learning is making a difference.            having an external person as an adviser
        The most effective means to check the             or to oversee the development of the
        value of a Lean education programme is            programme. A person at arm’s length to
        the difference it makes on-the-job. Some          an organisation can assist with developing
        training has an immediate impact, but             a learning framework that, ideally,
        often the real difference in an employee’s        incorporates formal programme content
        skills and competence becomes apparent            as well as opportunities for employees
        over time. Therefore learning and                 to experiment and develop their level of
        development should be monitored over              understanding further.
        time, perhaps three to six months after the
        event, to observe and measure the level
        of difference in the skills and performance
        of each employee and to ensure the
        application of the new skills is sustained.




                                                                                                                 The home of Lean Thinking 5
Ready for the Upturn




      Ready for
      the Upturn?
       Now’s the time to think Lean
       By Simon Castleman and Robin Jaques




6 The home of Lean Thinking
Ready for the Upturn




      Recent statistics appear to                     when the upturn eventually happens the         the boundaries of your business, making
      indicate that Britain has taken                 company will not be able to respond            your supply chain responsive to demand
                                                      to the new opportunities that present          pull from your customer also reduces the
      the first step on the long road                 themselves.                                    demand for cash.
      out of recession, although there
                                                      What typically happens in this situation is
      remains the risk that we may
                                                      that the non-value added activity, instead
      drop into “the second dip in a                  of being removed from the business, is
      W-shaped recession”. In this                    passed on to the remaining employees of
      period of uncertainty many                      the firm, burdening the retained workers
      companies face a dilemma –                      and undermining their productivity.
      whether to keep cutting back                    The other aspect of the business that has
      on costs and prepare for the                    been impacted by the recession is stocks
      worst, or to increase spending                  of raw materials, work in progress and
      on materials or manpower to                     finished goods.
      take advantage of the increase                  In a Lean world excess stock
      in economic activity.                           allows process inefficiency and                However let me add a word of caution
                                                                                                     at this point; one of the problems with
      Whichever scenario finally emerges the          so hides waste in a business. So
                                                                                                     many Lean implementations is that they
      one thing that most people agree on is that     whilst reducing stock is a laudable            find someone with knowledge of the Lean
      managing cash flow is of critical importance,   activity this is only the case so              toolbox and then set about applying those
      particularly since the banking system still
                                                      long as it does not prevent the                tools even if they are using the wrong tool
      appears to be reluctant to lend sufficient
      sums of money to sound companies.
                                                      business taking advantage of                   in the wrong area.
                                                      opportunities that an increase in              In addition, without taking full account
      The general consensus appears to be that
                                                      economic activity brings.                      of the complete value chain it is possible
      the level of “de-stocking” has reached
                                                                                                     to make one area more efficient to the
      its minimum and indeed there is some            If we assume there is a sudden upturn
                                                                                                     detriment of the value chain as a whole –
      evidence that companies are rebuilding          in demand for our goods or services
                                                                                                     creating islands of excellence in a sea
      their stock levels. On the other hand           the natural reaction is take on more staff
                                                                                                     of waste!
      it seems likely that the levels of              or purchase more stock to meet this
      redundancies and layoffs will continue          demand. Unfortunately recruiting staff with    Any improvement of a value chain
      for some time to come.                          the right skills and increasing stock levels   should be grounded in understanding
                                                      to meet the new demand levels both             what the customer really values (and that
      The standard approach to this kind of
                                                      require additional cash and therein lies the   does not mean sending out a series of
      economic situation is to cut costs across
                                                      problem, particularly if the company is not    questionnaires to key customers), you can
      the board and although this might be a
                                                      cash rich and relies upon the bank.            then start to map the value stream starting
      short term expedient it rarely considers
                                                                                                     with the customer.
      how waste can be removed from the firm.         By applying Lean Thinking, waste can be
                                                      rapidly identified and steps taken to ensure
      Indeed in some situations the cuts have
                                                      that those activities which are of no value
      been so deep that there is a risk of lasting
                                                      to the customer are reduced and ideally
      damage to the body corporate such that
                                                      eliminated and, although it impacts outside




                                                                                                                The home of Lean Thinking 7
Ready for the Upturn




      This will enable you to identify the key       The feedback was revealing in                  This meant that they could not only grow
      areas to apply the appropriate tools from      terms of how Cogent operated                   their business profitably going forward,
      the Lean toolbox to maximise customer                                                         but also shorten the supply chain to their
      value and benefit to the business.
                                                     in the current market and                      customers whilst reducing the threat
                                                     also insightful in terms of what               from competition in what is traditionally a
      For example, Cogent Power (featured
                                                     they could do differently to be                mature, highly competitive, price sensitive
      in the Shingo-Prize winning book Staying
      Lean: Thriving not just Surviving) carried
                                                     successful in tomorrow’s market.               market place.
      out 130 face-to-face interviews with 17                                                       At the beginning of this recession the key
      key customers of its Canadian plant. The          Common themes were:                         imperative was to reduce costs and to “out
      process set out to understand what the                                                        survive” your competitors, the situation
      customer valued at different touch points         • they were doing a lot of things           is now changing to taking advantage of
      within the business and specifically what           right, just needed to do more of          the opportunities out there by generating
      good looked or felt like against each of the        them – and release time from              customer value whilst at the same time
      identified values.                                  activities that were not adding value     minimising the demand for cash.
                                                          from their customers’ perspective
                                                                                                    One approach to doing this is to apply
                                                        • despite having supplied customers         Lean Thinking to your business not by just
                                                          for several years, they were              applying the tools but by looking at what
                                                          mistaken in thinking that they knew       your customers really value and maximising
                                                          the real influencers                      the efficiency in that value stream so you
                                                        • many of their customers wanted            can deliver what the customer demands as
                                                          to have a more proactive and              well as what they value on time, on quality,
                                                          advanced partnership with them            in full every time.

                                                        • there were many ‘quick win’               Engaging your workforce in this pursuit by
                                                          improvements that they could              using Lean Thinking as a foundation for their
                                                          act upon quickly.                         development will not only help you create
                                                                                                    value for your customers and margin for
                                                                                                    your business but will also leave you with a
                                                     The feedback indicated that there was a        flexible customer centric workforce.
                                                     real market opportunity for the business
                                                     to grow into new but aligned market areas      In any event a flexible workforce and a clear
                                                     where they had expert knowledge.               understanding of customer value, combined
                                                                                                    with a positive cash position, are amongst
                                                     Traditionally the business had supplied        the key attributes which will define those
                                                     quality component parts to other               companies who do not just survive the
                                                     manufacturers but Cogent Powers end            recession but are in a position to thrive in
                                                     users indicated that there was now a real      the new order that emerges, whatever that
                                                     opportunity for the business to add value to   turns out to be.
                                                     their existing product offering by moving up
                                                     the “value ladder” and developing a higher
                                                     quality engineered product and service at a
                                                     competitive price.




8 The home of Lean Thinking
Online Lean Learning




      Partnership offers online
      Lean learning programmes
      S A Partners has announced                     Leading Edge produces flexible online and              S A Partners chairman Professor Peter
      a partnership with Leading Edge                instructor-led training modules that help              Hines commented: “When done
                                                     organisations to manage the development                successfully, Lean learning programmes
      Group, a Cork-based company                    of Lean skills within their workforce at               transfer into an organisation the knowledge
      specialising in online Lean                    every level from basic awareness through               and skill that was initially provided by
      learning solutions. The                        to practical application (see figure 1).               external consultants. They therefore play
      alliance gives S A Partners                    Programmes are accredited externally by                a vital role in the long term sustainability
      the opportunity to extend                      institutions such as University College Cork           of continuous improvement, enabling
      its offering and to grow its                   and the Irish and American Institutes of               businesses to retain and develop that
                                                     Industrial Engineers. Leading Edge Group               learning inhouse.”
      Lean consultancy business in                   has offices in Cork and Toronto and has
      Ireland, while Leading Edge                    worked with clients including Pfizer, Dell
                                                                                                            Leading Edge chief executive Joe Aherne
                                                                                                            added: “Our strength is in providing
      will be able to reach new                      and PepsiCo.
                                                                                                            learning for the entire workforce,
      customers in the UK and work                   S A Partners challenges and coaches                    whatever degree of involvement they will
      with S A Partners to develop                   businesses across all sectors to improve               have in implementing Lean Thinking. We
      new learning material.                         their performance by applying Lean                     know that it is the combination of Lean
                                                     Principles. It places significant emphasis             tools and their systematic implementation
                                                     on transferring knowledge and skills into              that yields the best results, and this can
                                                     client companies, to help them to sustain              only be achieved through commitment
                                                     improvements in the long term. In 2009                 across all levels of the organisation. The
                                                     a case study of the company’s work with                online option also gives individuals the
                                                     Cogent Power, entitled ‘Staying Lean:                  flexibility to study at their own pace, with
                                                     Thriving not just Surviving’ was awarded a             access to an experienced mentor.”
                                                     Shingo Prize for Research.




                                                                                                BLACK BELT
                                                                                                 6 month online
      (l/r) Chris Butterworth, Managing Director,                                                programme for
                                                                                              career-minded Lean
      S A Partners Ireland; Professor Peter Hines,                                                practitioners,
      Chairman, S A Partners; Steve Hardgrave,                                                including leadership
                                                                                         and project management skills.
      Strategy Consultant, Leading Edge Group and
      Joe Aherne, CEO, Leading Edge Group.                                                      GREEN BELT
                                                                                 13 week online or instructor led programme to
                                                                                    achieve proficiency in understanding and
                                                                                applying Lean tools. Includes mentoring support.


                                                                                               YELLOW BELT
                                                                           2 day classroom overview for those likely to be involved in
                                                                           Lean projects - including a demonstration of Lean tools.
                                                                                A foundation for further Lean skills development.

                                                                                                WHITE BELT
      For more information visit                                A 1 day classroom programme to introduce the workforce to the Lean philosophy,
      www.sapartners.com                                         drivers for change, potential benefits and the role they play in ensuring success

                                                     Figure 1




                                                                                                                          The home of Lean Thinking 9
Treating the root cause




     Treating the
     root cause
      Lean problem solving
      techniques have a
      positive impact on the
      bottom line at Allergy
      Therapeutics




10 The home of Lean Thinking
Treating the root cause




       Allergy Therapeutics develops, manufactures and sells a range of pharmaceutical
       products for the treatment and prevention of allergy. Their flagship product is Pollinex®
       Quattro which is transforming immunotherapy by vaccinating against allergy with only
       four injections.
       Allergy Therapeutics vaccines are                 “The focus was on the speed at                 Individuals were given the authority to
       prescribed only by medical practitioners          which incidents were resolved,                 stop the production line if a fault occurred
       and are administered either by injection or                                                      and to call for help from relevant qualified
       placement under the tongue.
                                                         not wholly on the quality of                   personnel before production resumed.
                                                         the resolution.”
       In addition to branded products, ‘specifics’                                                     “We used to get managers
       are developed to address unique                   In addition to the financial implications of
                                                         this waste, the unpredictability of supply     together in a meeting room to
       combinations of allergies for individual
       patients. Hundreds of products can                threatened the company’s ability to            resolve problems, now it’s the
       therefore be supplied in thousands                penetrate new markets. The need                people that are directly involved
       of combinations.                                  to remake product had a negative               in the process that solve the
                                                         impact on capacity, staff morale and           problems – on the shop floor
                                                         customer satisfaction.
                                                                                                        as they occur.”
                                                         Treating the cause
                                                                                                        Secondly, the teams examined the potential
                                                         The solution was to engage the                 risks facing the business, to enable them to
                                                         most appropriate resources from                manage risk proactively.
                                                         within the Allergy business, and deploy
                                                                                                        Teams of people attended more than
                                                         a combination of Lean tools and techniques,
                                                                                                        40 workshops working on a PFMEA – a
                                                         to mount a two-pronged attack on
                                                                                                        Process Failure Mode and Effect Analysis
                                                         process improvement.
                                                                                                        – that examined the potential risks in
                                                         “At first I was sceptical that Lean            producing a core product. Each risk was
       The £45m business is headquartered in             tools that had been deployed                   given a score based on severity of impact,
                                                                                                        likely occurrence and ease of detection.
       Worthing, UK, with extensive sales and            in environments such as
       marketing operations in several European                                                         Using these scores, the team could prioritise
                                                         engineering could be applied to                risks and consider countermeasures to
       countries. Patient safety is the company’s
                                                         pharmaceuticals. My confidence                 reduce the chance of variability occurring
       priority and vaccines must comply with the
       strict pharmaceutical regulations that apply in   in the methodology grew and                    and/or increase the likelihood of detection.
       each country in which its products are sold.      now I know that the Lean                       Allergy Therapeutics are also collaborating
                                                         principles work, whatever                      more closely with suppliers to help eradicate
       Drivers for change
                                                         your business.”                                variability that may be caused by raw
       At the start of the ‘Odyssey’ journey, due                                                       materials, thereby extending Lean Thinking
       to the nature of biological pharmaceuticals,      Firstly cross functional teams worked with
                                                                                                        up stream in the supply chain.
       variabilities resulted in defective product       external Lean consultants to identify and
       having to be scrapped and remade. Incidents       resolve the root causes of variability
       of variability in the production process were     contributing to a more stable production
       a resource burden that was not sustainable        process. This activity would also reduce
       and warranted action.                             waste, free up capacity and enhance
                                                         durable sustainability.




                                                                                                                  The home of Lean Thinking 11
Treating the root cause




             Allergy’s Kelly Goss and Dick Knapp talk colleagues through the progress made on their parts of the ’Odyssey’ project.




      Tracking progress
                                                          The benefits achieved so far:
      Allergy appointed a full time manager to the
      Odyssey project and established a project
      room as a base. Senior managers were
                                                          • Wasted product reduced in the first year of the programme
      given roles as project sponsors to reinforce        • Financial savings above target
      the impact of the project in supporting the
      company’s overall strategy.                         • Personal skills development, e.g. 25% of the workforce trained in
                                                             Lean problem solving techniques
      Weekly PDCA (plan, do, check, act)
      meetings are held, using a tracking                 • Involvement of staff at all levels and the building of teams working
      document to report on the progress made               across functional boundaries
      of numerous smaller concurrent projects.
                                                          • Improved staff morale
      After the first year a communication event
      was held, at which each of the teams could
                                                          • Increased communication with staff regarding the programme’s
      explain to their colleagues what they had              achievements – a ‘voice’ for all those that are contributing
      been doing and what had been achieved               • Improved customer satisfaction
      so far.
                                                          • A culture of interrogating and targeting root causes
      Allergy Therapeutics has achieved significant
      benefits in the first year of the Odyssey           • A methodology for proactively managing risk through the PFMEA
      programme, some which have a monetary
                                                          • Greater collaboration with suppliers
      value, and others that do not, but which are
      no less critical to the success of the business.    • A more structured process for classifying and resolving incidents.




12 The home of Lean Thinking
Treating the root cause




                                                      Source interviewed Head of
                                                      Supply Operations, Ray Keeling,
                                                      for his thoughts on the Odyssey
                                                      project’s achievements.

       You are Head of Supply                         And that led to the start                       Were there any
       Operations, what does                          of the Odyssey project?                         turning points for you?
       that involve?
                                                      I conceived a three year project to address     There are two that stand out for me.
       Supply operations basically encompasses        the challenges. In the business case that I     We had an early breakthrough in the
       all the functions needed to bring a product    presented to the board, I explained that        production of the Tree product. We took
       to market, including: health and safety;       we had to make an investment in skills          great satisfaction from solving a
       validation of processes, facilities and        development and diagnostic work and             very complex problem with a new
       equipment; Information Technology;             probably wouldn’t see tangible results in       storage solution.
       planning; purchasing; manufacturing;           the first six months, but the first year’s
                                                                                                      The second turning point was what we
       warehousing; packaging, and; distribution.     results have exceeded our expectations.
                                                                                                      called our “Town Hall” event, held to
       What did you find when you                     Why did you seek                                communicate the progress of Odyssey
       took up the role in 2005?                      external help?                                  to all our staff and our new shareholders.
                                                                                                      The feedback from the event was
       There was inherent variability in processes,   The consultants challenged and
                                                                                                      overwhelmingly positive and I felt so
       resulting in waste.                            externalised us and this was what we
                                                                                                      proud of everyone’s contribution.
                                                      needed. They brought a comprehensive
       What was your vision
                                                      ‘Zero Defects’ approach that was closely        Do you have any regrets?
       for change?
                                                      aligned to our objectives and included skills
                                                                                                      Only that I wish I’d started Odyssey two
       I felt strongly that we should focus on        transfer to ensure that in time we would
                                                                                                      years earlier! Times have changed since
       our core brand and put in place effective      be able to continue the improvement
                                                                                                      the project began, but with what we’ve
       structured problem solving techniques          on our own.
                                                                                                      achieved so far, the business is in a much
       based on fact and scientific based evidence.
                                                      What do you think has                           stronger position to achieve a paradigm
       I wanted us to move to a culture of
                                                      been the secret of the                          shift in our performance.
       transformational change to enhance
                                                      success here?
       sustainable business performance.
                                                      We’ve embedded and integrated the skills
                                                      and problem solving processes into the
                                                      compliance systems that govern our day
                                                      to day work (so they aren’t perceived as
                                                      an additional burden). We’ve also invested
                                                      in skills development to ensure we can
                                                      continue the improvement and sustain
                                                      the benefits.




                                                                                                               The home of Lean Thinking 13
Zero Defects




     Zero
     Defects
      A proactive approach to
      managing risk
      A retailer is losing market   A pharmaceutical company is unable to
                                    meet regulatory standards due to excessive
                                                                                    Why would an organisation want to adopt
                                                                                    these techniques? Often it is only after a
      share because the             internal non-conformances. A braking            problem has occurred that action is taken
      distribution warehouse        systems manufacturer is concerned about its     to compensate – the business reacts. For a
                                    product failing in the field.                   serious issue, such as a car parts recall, this
      supply chain is not                                                           is too late – it costs a great deal of money
                                    Each of these businesses has dramatically
      optimising performance.       improved its business performance by
                                                                                    to correct the fault and the manufacturer’s
      A flat screen TV              implementing a Zero Defects approach.
                                                                                    reputation is severely damaged in the
                                                                                    market place.
      manufacturer is losing        So what is it? It encompasses a number of
                                    tools and techniques which, if used together,   Alternatively problems may be captured
      capacity and output due       provide a powerful mechanism for tackling       internally through an inspection process – in
      to quality issues on its      deep seated business issues.                    this case market perception is not damaged
                                                                                    but nevertheless there are significant costs of
      assembly line.                                                                inspection, scrap, rework and lost capacity.




14 The home of Lean Thinking
Zero Defects




      Once problems have been discovered,             the headings of Severity, Occurrence and           The PFMEA is entirely proactive. It forecasts
      the organisation needs to investigate           Detection. The three ratings multiplied            failures and stimulates preventative action
      the root causes and introduce effective         together deliver the “Risk Priority Number.”       before these failures occur. In the real
      countermeasures to ensure that it will          The PFMEA is sorted by Risk Priority               world, events may occur that are entirely
      never happen again. Anything less is an         Number so that the highest numbers are             unforeseen, or they are so far down the
      unsustainable workaround that has the           at the top, thereby prioritising the projects      PFMEA list that they are not scheduled to
      potential to fail once again.                   required to reduce risk. Preparation of this       be looked at for some time. The urgent
                                                      document requires a significant investment in      need to react to these might outweigh the
      Implementing a Zero Defect                      time, but it becomes a live management tool        proactive approach from the PFMEA. Whilst
      philosophy as part of a                         with a potential lifespan of many years.           immediate action will have to be taken to
      continuous improvement culture,                 Having invested in diagnosing the process,
                                                                                                         protect the customer as the result of this
      providing a mechanism for                       what are the next steps? The only choices
                                                                                                         new occurrence, the PFMEA will need to be
      identifying issues and fixing root                                                                 updated – certainly in terms of occurrence,
                                                      are to reduce the level of occurrence or
                                                                                                         as it’s actually happened! This re-sorting may
      causes, can have a major impact                 increase the possibility of detection. Severity
                                                                                                         bring this new issue to the top of the list,
      on growth and profitability.                    will remain the same whether it happens
                                                                                                         requiring a team to investigate for root
                                                      frequently or rarely.
      The tools and techniques that sit within the                                                       cause immediately.
      Zero Defects package include a daunting         Multi-disciplinary teams are then                  In parallel with the PFMEA, it is frequently
      list of acronyms and Japanese buzzwords -       set to work on the highest risks                   beneficial to use the techniques of Jidoka
      PFMEA, Jidoka, Genchi Genbutsu, 8D,             using root cause problem solving                   (line stop) and Genchi Genbutsu (go, look,
      5Y, process flow and variables, multi-
      disciplinary team work, poke yoke, 5W1H
                                                      skills. Armed with a thorough                      see). If an issue has occurred, it is helpful
                                                      understanding of a particular                      for staff to have the authority to stop the
      action planning, PDCA, 5 step checks,                                                              process and call in qualified people to
      the CI process.                                 risk, they can design a counter
                                                                                                         investigate what has happened. By stopping
      It may not be necessary to deploy all of
                                                      measure, the “poke yoke,” that                     the line, memories will be fresh regarding
      these, but it will certainly be necessary to    will eliminate or dramatically                     what happened and the evidence will still be
      bring a number of them into play. The skill     reduce the risk.                                   there. If the issue is deep rooted, the learning
      lies in understanding fully the issues facing                                                      from this can be used to feed back into the
                                                      The next stage is to implement the
      the business at the outset, and designing                                                          problem solving teams, which should speed
                                                      counter measure. The team will need to
      the correct response. This response must                                                           up the whole process.
                                                      demonstrate skills in project management
      include adequate resourcing of the project in
      terms of finance, time, commitment, and so
                                                      and 5W1H (why, what, who, when,                    The Zero Defects approach is
                                                      where, and how the new way of doing                not a ‘one size fits all’ solution.
      on. Let’s look at the tools in more detail.     things is going to be brought on stream).
                                                      This is complemented by the discipline of
                                                                                                         The approach should be tailored
      PFMEA is “Process Failure Mode
      and Effect Analysis.” There is also a           PDCA (plan, do, check, act) to ensure that         to suit the business according
      Design FMEA equivalent. This approach is        the new process is working, that we have           to the issues that it is facing.
      proactive and examines in detail all aspects    not incurred unintended consequences and           Experience shows, however,
      of the process that expose a business           that there is no way of slipping back to the       that the application of the
      to risk. Many of the risks may not have         old way of doing things. A 5 step process is       correct tools and techniques,
      manifested themselves yet, but they could,      designed as a final formalised sign off that the
                                                      implementation was successful. Overall there
                                                                                                         fully supported by management
      and appropriate action should be taken to
      prevent the occurrence.                         are eight stages involved, and the process is      commitment, will virtually
                                                      commonly referred to as 8D.                        guarantee success.
      The PFMEA is essentially a detailed process
      flow chart, which an experienced team then      On completion, the team can be disbanded,          Each of the ZD mechanisms has been
      starts to challenge. The team brainstorms       but not before the PFMEA has been updated          proven and a continuous improvement
      all potential failure modes for each step       with the new occurrence and detection              process built upon root cause problem
      in the process and their effect on the          ratings for that particular risk, which should     solving should be an inherent part of all
      customer. Each of these is then rated under     drop down the list of highest priority.            management teams’ forward thinking.




                                                                                                                   The home of Lean Thinking 15
Information & Events




      Information
      & Events
      Useful Websites                                 Networking                                    Events
      Lean Related                                    Websites                                      Lean Leadership:
      www.sapartners.com                              www.linkedin.com                              An interactive training event that looks at
      www.superfactory.com                                                                          the skills needed to lead a sustainable
                                                      Linkedin discussion groups:                   Lean deployment.
      www.improvementandinnovation.com
                                                      Lean & Green                                  26 & 27 May 2010, Cork
      www.leanenterprise.org.uk
                                                      Lean Enterprise Food & Drink                  2 & 3 September 2010, Stockholm
                                                      Lean Enterprise Retail
                                                                                                    Staying Lean: Thriving not just Surviving
                                                      Lean Enterprise Asia Pacific                  A one day workshop that investigates
                                                      Lean Enterprise Ireland                       what is needed to sustain Lean business
                                                      Lean Enterprise Nordic                        improvement, featuring a Shingo Prize-
                                                                                                    winning case study.
                                                      Lean Enterprise United Kingdom
                                                                                                    28 May 2010, Ireland
                                                      Lean Enterprise Benelux
                                                                                                    3 June 2010, Toronto
                                                      Lean Enterprise Central and Eastern Europe
                                                                                                    16 June 2010, Netherlands
                                                      Lean Enterprise Mediterranean
                                                      Lean Enterprise Canada                        Further details on:
                                                                                                    www.sapartners.com




      Recommended Reading
      Lean Management Journal                         Staying Lean: Thriving not just Surviving
      by SayOne Media and the Lean Enterprise         by Hines, Found, Griffiths and Harrison
      Research Centre                                 The book Staying Lean: Thriving not
      The Lean Management Journal (LMJ)               just Surviving tells the story of how a
      aims to bring to the forefront the diversity    multinational organization implemented and
      of thinking around Lean concepts and to         sustained Lean to turn around its financial
      showcase Lean excellence from around the        performance. It is designed to be used as
      globe. It also aims to provide a platform for   a practical workbook to guide others along
      Lean debate and continuous improvement          their own journey to embed Lean in the
      through shared experience, interviews and       organization and to sustain performance
      case studies.                                   improvement over the long term.
      For more information and a free pilot copy      Publisher: Lean Enterprise Research Centre
      visit www.leanmj.co.uk                          (1 Feb 2008)
                                                      ISBN: 0953798291




16 The home of Lean Thinking
The home of Lean Thinking 17
Contact details




www.sapartners.com

More Related Content

What's hot

What's hot (18)

Human resourcedevelopmenttejashree
Human resourcedevelopmenttejashreeHuman resourcedevelopmenttejashree
Human resourcedevelopmenttejashree
 
WIAL Buletine EDISI 1_2015
WIAL Buletine EDISI 1_2015WIAL Buletine EDISI 1_2015
WIAL Buletine EDISI 1_2015
 
Brianna corporate ppt
Brianna corporate pptBrianna corporate ppt
Brianna corporate ppt
 
Gca presentation 2013 v1.3.ppt
Gca presentation 2013 v1.3.pptGca presentation 2013 v1.3.ppt
Gca presentation 2013 v1.3.ppt
 
IIM Indore One Year Full Time MBA (EPGP)
IIM Indore One Year Full Time MBA (EPGP) IIM Indore One Year Full Time MBA (EPGP)
IIM Indore One Year Full Time MBA (EPGP)
 
ETPM2
ETPM2ETPM2
ETPM2
 
Different organization development techniques (OB Presentation)
Different organization development techniques (OB Presentation)Different organization development techniques (OB Presentation)
Different organization development techniques (OB Presentation)
 
Piyush govil archana_sharma
Piyush govil  archana_sharmaPiyush govil  archana_sharma
Piyush govil archana_sharma
 
Chip Brochure
Chip BrochureChip Brochure
Chip Brochure
 
Evaluating hrd interventions
Evaluating hrd interventionsEvaluating hrd interventions
Evaluating hrd interventions
 
Na14 agl04 published
Na14 agl04 publishedNa14 agl04 published
Na14 agl04 published
 
Business Excellence And Innovation Methods Training Program
Business Excellence And Innovation Methods Training ProgramBusiness Excellence And Innovation Methods Training Program
Business Excellence And Innovation Methods Training Program
 
Hay, Busby, and Kaufman
Hay, Busby, and KaufmanHay, Busby, and Kaufman
Hay, Busby, and Kaufman
 
Gilbane breaking downsilos-may2010
Gilbane breaking downsilos-may2010Gilbane breaking downsilos-may2010
Gilbane breaking downsilos-may2010
 
Project Management SKills Training Programme
Project Management SKills Training  ProgrammeProject Management SKills Training  Programme
Project Management SKills Training Programme
 
Yiesia Presentation_PP
Yiesia Presentation_PPYiesia Presentation_PP
Yiesia Presentation_PP
 
Yiesia Slides Presentation October 2012
Yiesia Slides Presentation October 2012Yiesia Slides Presentation October 2012
Yiesia Slides Presentation October 2012
 
Te Corp Presentation
Te Corp PresentationTe Corp Presentation
Te Corp Presentation
 

Viewers also liked

e-Kooperation - Skripts für die Gemeinsame Wissenskonstruktion
e-Kooperation - Skripts für die Gemeinsame Wissenskonstruktione-Kooperation - Skripts für die Gemeinsame Wissenskonstruktion
e-Kooperation - Skripts für die Gemeinsame Wissenskonstruktione-teaching.org
 
E-teaching Präsenation
E-teaching PräsenationE-teaching Präsenation
E-teaching Präsenatione-teaching.org
 
Para los curiosos
Para los curiososPara los curiosos
Para los curiosossanporo
 
Partner-Workshop e-teaching.org: Patterns im Praxistest
Partner-Workshop e-teaching.org: Patterns im PraxistestPartner-Workshop e-teaching.org: Patterns im Praxistest
Partner-Workshop e-teaching.org: Patterns im Praxisteste-teaching.org
 
Posicionamento, um breve resumo.
Posicionamento, um breve resumo.Posicionamento, um breve resumo.
Posicionamento, um breve resumo.Julio Neves
 
First visit questions
First visit questionsFirst visit questions
First visit questionsSrishti
 
Conceito de multimídia
Conceito de multimídiaConceito de multimídia
Conceito de multimídiaByely
 

Viewers also liked (11)

Apresentação SupriQual junho 2014
Apresentação SupriQual junho 2014Apresentação SupriQual junho 2014
Apresentação SupriQual junho 2014
 
e-Kooperation - Skripts für die Gemeinsame Wissenskonstruktion
e-Kooperation - Skripts für die Gemeinsame Wissenskonstruktione-Kooperation - Skripts für die Gemeinsame Wissenskonstruktion
e-Kooperation - Skripts für die Gemeinsame Wissenskonstruktion
 
E-teaching Präsenation
E-teaching PräsenationE-teaching Präsenation
E-teaching Präsenation
 
Para los curiosos
Para los curiososPara los curiosos
Para los curiosos
 
Linked In Presentation
Linked In PresentationLinked In Presentation
Linked In Presentation
 
Australian Hellenic Community NSW Barton
Australian Hellenic Community NSW BartonAustralian Hellenic Community NSW Barton
Australian Hellenic Community NSW Barton
 
Partner-Workshop e-teaching.org: Patterns im Praxistest
Partner-Workshop e-teaching.org: Patterns im PraxistestPartner-Workshop e-teaching.org: Patterns im Praxistest
Partner-Workshop e-teaching.org: Patterns im Praxistest
 
Gift Set
Gift SetGift Set
Gift Set
 
Posicionamento, um breve resumo.
Posicionamento, um breve resumo.Posicionamento, um breve resumo.
Posicionamento, um breve resumo.
 
First visit questions
First visit questionsFirst visit questions
First visit questions
 
Conceito de multimídia
Conceito de multimídiaConceito de multimídia
Conceito de multimídia
 

Similar to Source 4 Spring 2010 Sec

Slides seminar innovation manager - final - da
Slides seminar   innovation manager - final - daSlides seminar   innovation manager - final - da
Slides seminar innovation manager - final - daDirk Ameel
 
The Change Practitioner's Toolkit: Tools, Techniques, Traps, & Takeaways
The Change Practitioner's Toolkit:  Tools, Techniques, Traps, & TakeawaysThe Change Practitioner's Toolkit:  Tools, Techniques, Traps, & Takeaways
The Change Practitioner's Toolkit: Tools, Techniques, Traps, & TakeawaysTrish Uhl, PMP, CPLP
 
Find out the culture in your business
Find out the culture in your businessFind out the culture in your business
Find out the culture in your businessJason Pyott
 
Teaching Philosophy Strategy Academy
Teaching Philosophy Strategy AcademyTeaching Philosophy Strategy Academy
Teaching Philosophy Strategy AcademyRenata Renema
 
EFQM& Lean: Together in Harmony
EFQM& Lean: Together in HarmonyEFQM& Lean: Together in Harmony
EFQM& Lean: Together in HarmonyEFQM2010
 
Learning Transformation & Governance
Learning Transformation & GovernanceLearning Transformation & Governance
Learning Transformation & GovernanceCharles Jennings
 
Management DEI Issue Paper and Presentation.docx
Management DEI Issue Paper and Presentation.docxManagement DEI Issue Paper and Presentation.docx
Management DEI Issue Paper and Presentation.docxwrite4
 
Management DEI Issue Paper and Presentation.docx
Management DEI Issue Paper and Presentation.docxManagement DEI Issue Paper and Presentation.docx
Management DEI Issue Paper and Presentation.docxstudywriters
 
The LBS Approach
The LBS ApproachThe LBS Approach
The LBS ApproachLBSPartners
 
People & Change Consultants, India
People & Change Consultants, IndiaPeople & Change Consultants, India
People & Change Consultants, Indiashom_1
 
Lmi Total Leader Presentation
Lmi Total Leader PresentationLmi Total Leader Presentation
Lmi Total Leader Presentationguest270b24
 
S.P. JAIN (SPJIMR) - PGPM - 2011 - Brochure
S.P. JAIN (SPJIMR) - PGPM - 2011 - BrochureS.P. JAIN (SPJIMR) - PGPM - 2011 - Brochure
S.P. JAIN (SPJIMR) - PGPM - 2011 - BrochureAkshay Kaul
 
Lean Manager Certification Program - January 2018
Lean Manager Certification Program - January 2018Lean Manager Certification Program - January 2018
Lean Manager Certification Program - January 2018W3 Group Canada Inc.
 
Introduction to Lean leadership Masterclass by David Brunt
Introduction to Lean leadership Masterclass by David BruntIntroduction to Lean leadership Masterclass by David Brunt
Introduction to Lean leadership Masterclass by David BruntLean Enterprise Academy
 
Learning transfer
Learning transferLearning transfer
Learning transferGraham Hart
 
Building a sustainable enterprise collaboratively using a wiki 5 2 11
Building a sustainable enterprise collaboratively using a wiki 5 2 11Building a sustainable enterprise collaboratively using a wiki 5 2 11
Building a sustainable enterprise collaboratively using a wiki 5 2 11vaxelrod
 
L&D Maturity Models - What They Mean To Your Organisation
L&D Maturity Models - What They Mean To Your OrganisationL&D Maturity Models - What They Mean To Your Organisation
L&D Maturity Models - What They Mean To Your OrganisationAcorn
 

Similar to Source 4 Spring 2010 Sec (20)

Slides seminar innovation manager - final - da
Slides seminar   innovation manager - final - daSlides seminar   innovation manager - final - da
Slides seminar innovation manager - final - da
 
The Change Practitioner's Toolkit: Tools, Techniques, Traps, & Takeaways
The Change Practitioner's Toolkit:  Tools, Techniques, Traps, & TakeawaysThe Change Practitioner's Toolkit:  Tools, Techniques, Traps, & Takeaways
The Change Practitioner's Toolkit: Tools, Techniques, Traps, & Takeaways
 
Find out the culture in your business
Find out the culture in your businessFind out the culture in your business
Find out the culture in your business
 
Teaching Philosophy Strategy Academy
Teaching Philosophy Strategy AcademyTeaching Philosophy Strategy Academy
Teaching Philosophy Strategy Academy
 
EFQM& Lean: Together in Harmony
EFQM& Lean: Together in HarmonyEFQM& Lean: Together in Harmony
EFQM& Lean: Together in Harmony
 
Learning Transformation & Governance
Learning Transformation & GovernanceLearning Transformation & Governance
Learning Transformation & Governance
 
Leadership development to drive buisness success
Leadership development to drive buisness successLeadership development to drive buisness success
Leadership development to drive buisness success
 
Management DEI Issue Paper and Presentation.docx
Management DEI Issue Paper and Presentation.docxManagement DEI Issue Paper and Presentation.docx
Management DEI Issue Paper and Presentation.docx
 
Management DEI Issue Paper and Presentation.docx
Management DEI Issue Paper and Presentation.docxManagement DEI Issue Paper and Presentation.docx
Management DEI Issue Paper and Presentation.docx
 
The LBS Approach
The LBS ApproachThe LBS Approach
The LBS Approach
 
Brianna Brochure
Brianna  BrochureBrianna  Brochure
Brianna Brochure
 
People & Change Consultants, India
People & Change Consultants, IndiaPeople & Change Consultants, India
People & Change Consultants, India
 
Lmi Total Leader Presentation
Lmi Total Leader PresentationLmi Total Leader Presentation
Lmi Total Leader Presentation
 
S.P. JAIN (SPJIMR) - PGPM - 2011 - Brochure
S.P. JAIN (SPJIMR) - PGPM - 2011 - BrochureS.P. JAIN (SPJIMR) - PGPM - 2011 - Brochure
S.P. JAIN (SPJIMR) - PGPM - 2011 - Brochure
 
Lean Manager Certification Program - January 2018
Lean Manager Certification Program - January 2018Lean Manager Certification Program - January 2018
Lean Manager Certification Program - January 2018
 
GP Strategies Brochure
GP Strategies BrochureGP Strategies Brochure
GP Strategies Brochure
 
Introduction to Lean leadership Masterclass by David Brunt
Introduction to Lean leadership Masterclass by David BruntIntroduction to Lean leadership Masterclass by David Brunt
Introduction to Lean leadership Masterclass by David Brunt
 
Learning transfer
Learning transferLearning transfer
Learning transfer
 
Building a sustainable enterprise collaboratively using a wiki 5 2 11
Building a sustainable enterprise collaboratively using a wiki 5 2 11Building a sustainable enterprise collaboratively using a wiki 5 2 11
Building a sustainable enterprise collaboratively using a wiki 5 2 11
 
L&D Maturity Models - What They Mean To Your Organisation
L&D Maturity Models - What They Mean To Your OrganisationL&D Maturity Models - What They Mean To Your Organisation
L&D Maturity Models - What They Mean To Your Organisation
 

Source 4 Spring 2010 Sec

  • 1. 4th Edition Spring 2010 The home of Lean Thinking Lean Learning Is it the key enabler to sustainable continuous improvement? Case study: What effect did treating the root cause have on Allergy Therapeutic’s bottom line? Managing risk proactively: How to implement a zero defects culture Ready for the upturn? Now’s the time to think Lean
  • 2. The home of Lean Thinking In this edition… 1 Welcome from Robin Jaques 2 Lean Learning The key enabler to sustainable continuous improvement? 6 Ready for the Upturn? Now is the time to think Lean 9 Online Lean Learning A new alliance is formed 10 Case Study How have Lean problem solving techniques helped Allergy Therapeutics? 14 Zero Defects A proactive approach to managing risk 16 Information and Events Find useful events, websites and essential reading here The home of Lean Thinking
  • 3. The home of Lean Thinking Welcome to the home of Lean thinking. Welcome to Source, in which We are also delighted to announce we strive to bring you the latest a partnership with Leading Edge Lean Thinking and examples of Group, to promote and develop successful Lean implementation to online learning solutions. help you with your own business In the case study, Allergy improvement journey. Therapeutics tell us how they Experience has taught us that the tackled the root causes of variability development of Lean skills and in their production process, with knowledge inside an organisation dramatic results. The adjacent is key to sustaining a culture of article describes the theory behind improvement and translating their approach and looks at the Lean results from a short lived tools available to help us to make programme to ‘a way of life’. ‘zero defects’ a reality whatever the environment. In this edition, Gary Griffiths shares what he has learned from planning, preparing, delivering Robin Jaques Managing Partner and measuring internal Lean education programmes. Robin Jaques The home of Lean Thinking 1
  • 4. Lean Learning Lean Learning – the Key Enabler for Sustainable Continuous Improvement By Gary Griffiths 2 The home of Lean Thinking
  • 5. Lean Learning During the past On this journey, one major piece of For any corporate learning programme to 15 years I have learning for me has been how corporate succeed, I believe you must: education, done well, not only helps a had the privilege business to move forward, but can be • Align and integrate your Lean learning of working with a the critical factor in creating and sustaining programme with the business strategy (note: REALLY align it for the skills number of leading a business wide culture of continuous of today and changing capabilities of organisations to improvement. tomorrow) develop a business that has The lessons I have learned have not come • Develop a programme of Lean learning both the process capability and from one single organisation in a single that concurrently meets the needs behavioural culture needed to sector and geographical region but have of the organisational levels (senior achieve that common “holy been compiled from working on a variety management, middle management, of Lean learning programmes, and these grail” of sustainable continuous team leaders and workers) lessons are summarised in figure 1. improvement. Having worked • Create a “Learning System” of in such diverse sectors as The Lean Education Model continuous development for health, automotive, defence, individuals and the business (it’s not Organisations are in business to make service, food processing and a profit and grow by offering better just about course content it’s about retail across the five continents workplace application) services to their clients, customers of the world I have experienced and stakeholders. Any Lean learning • Ensure that any Lean training courses a range of approaches to Lean programme therefore needs to give its are the start of the learning not the implementation, some inevitably employees and partners the capability end (you will need to apply the Plan- to support the business vision and goals. Do-Check-Act rigorously to your Lean more successful than others. Unfortunately, learning programmes often learning system) fall short of this purpose. • Recognise that you can’t do it all by Hopefully this article will give you some yourself (the business competence “food for thought” on how to develop a of most organisations is NOT always more meaningful and sustainable approach learning and development so use to Lean learning. partners to help). These critical factors are not exhaustive and are dependent on your situational needs and level of capability – more emphasis may be needed in one or more areas. Having said that, for the Lean learning programme to begin to make a difference, all of these factors need to be carefully considered and applied. To help us think this through I will briefly discuss the essential elements of each factor. Remember what we want is a Lean learning programme that ensures engagement and provides ongoing evidence of continuously improving business results whilst providing space for individual and team development. Figure 1 – Lessons learned from implementing Lean learning programmes The home of Lean Thinking 3
  • 6. Lean Learning Align Lean Learning to Concurrent Multi-level Develop a Lean Business Strategy Lean Learning Learning System • Deploy Lean learning as part of your • Provide appropriate Lean learning for • Look at learning as a process. The most business strategy. In many organisations all levels. Learning is not a luxury or a successful organisations approach Lean training is treated as an optional activity reward for high achieving employees. learning as an integrated system, not as driven by the “nice-to-have” skills of Learning is crucial to the development a secondary or functional activity. Be today but not by the “must-have” and success of an organisation and clear on what you want the programme changing competencies of tomorrow. should be approached as a whole-of- to achieve and design a full end-to-end During the strategy formation and organisation experience involving all or life cycle learning framework with deployment cycles we can use tools employees in some form of structured appropriate systems to monitor and to envision what tomorrow’s business learning and development. While the manage successful fulfilment of the will look like and which new skills type of content and the level at which defined value criteria. and competencies will be needed to a programme is delivered may vary, • Share good practice across the business. achieve it. learning and development should be Different areas of organisations usually continuous and involve all levels in an • Link Lean learning to individual have certain training systems that are organisation, providing a common thread Performance Development tailored to suit their specific learning and via the Lean learning content. Programmes - what gets measured development requirements. Sharing what gets done, especially in large • Link Lean learning to roles and is working well can also help reinforce organisations. Therefore, the learning responsibilities. Learning needs to be the organisation’s core values. and development of employees needs tailored to the current and emerging • Translate Lean learning to added value to align with the organisation’s strategic skills necessary for employees to be competence. Corporate education goals and cascade to the individual effective in their roles. The learning needs to involve more than just passive performance development plans of should combine common skills and attendance at a course. The programme each employee. competencies required for specific should encourage participants to break- functions and responsibilities in • Continually question how Lean learning out into groups to discuss issues, interact the organisation as well as other enables performance. It is important with their co-learners, and have the competencies, such as situational to conduct periodic reviews to ensure opportunity to apply or experiment with leadership, coaching, facilitation and employee learning is adaptable and concepts and tools. Employees with a team-work skills. relevant to the organisation’s goals as proven track record for the successful well as the employees’ requirements. • Create mixed level networks. A and continued application of learned skills In addition, programme content progressive learning environment and competence need to be recognised needs to be kept up-to-date and should remove all forms of rank and and rewarded accordingly. relevant to the evolving strategic superiority so that employees interact, goals of the organisation. share experiences, ideas and learn from each other, regardless of position or status. Use the “Action-Learning set” methodology which encourages groups to examine real and personal issues they are faced with so that the group can work out some options for improvement but more importantly agree on a collaborative set of improvement actions. 4 The home of Lean Thinking
  • 7. Lean Learning Apply a Plan-Do-Check-Act Partner with Lean As I mentioned at the start Methodology Learning Expertise of this brief insight into • Plan every programme thoroughly. • Consider partnering with external Lean learning, I have been The success of a good Lean education education and training providers, e.g. privileged to work with many programme starts with good planning. universities. These providers can bring great companies over the The planning phase needs to consider objectivity to programme design and the realistic learning goals, the current development and can often introduce the years. Each one has set out skills of the participants and their learning latest thinking, concepts and methods, to develop its people and styles. The planning process also needs which might not be accessible to processes to help continuous to define the content and structure and internal resources. Online Lean learning performance improvement and any support materials and teaching aids packages are also worth considering as that will be required. It is vital during part of a structured skills development each one has developed an the planning phase to clarify the desired programme. They are available for all approach of their own. Having (and measurable) outcomes and how levels, externally accredited in many cases experienced these different participants will demonstrate their level of and, while individuals participate online at approaches, I truly believe that understanding and competence gained. their own pace, the organisation retains the critical factors above are overall visibility of the progress that’s • Create a listening process. While an being made. what make the difference in organisation will have learning goals, it is the most successful cases. Any also important to listen to the views of • Join external Lean learning networks. stakeholders. Consult with stakeholders Interacting with like-minded people organisation that incorporates to explore topics and issues they would stimulates and challenges traditional these critical factors in its like to be addressed. All too often course thinking. By joining an external learning learning programme will find evaluation forms are left in the back of network, organisations can expand the that they move closer towards the HR information cabinet and are not perspective their employees have to a the “holy grail” of sustainable used to take the programme onto the greater extent than they would when next level, so please make sure you their reference circle is internal only. continuous improvement continuously and rigorously apply to in order to provide better • Look for help to develop learning the principle of P-D-C-A. frameworks. There is significant value in services and profitable growth. • Check learning is making a difference. having an external person as an adviser The most effective means to check the or to oversee the development of the value of a Lean education programme is programme. A person at arm’s length to the difference it makes on-the-job. Some an organisation can assist with developing training has an immediate impact, but a learning framework that, ideally, often the real difference in an employee’s incorporates formal programme content skills and competence becomes apparent as well as opportunities for employees over time. Therefore learning and to experiment and develop their level of development should be monitored over understanding further. time, perhaps three to six months after the event, to observe and measure the level of difference in the skills and performance of each employee and to ensure the application of the new skills is sustained. The home of Lean Thinking 5
  • 8. Ready for the Upturn Ready for the Upturn? Now’s the time to think Lean By Simon Castleman and Robin Jaques 6 The home of Lean Thinking
  • 9. Ready for the Upturn Recent statistics appear to when the upturn eventually happens the the boundaries of your business, making indicate that Britain has taken company will not be able to respond your supply chain responsive to demand to the new opportunities that present pull from your customer also reduces the the first step on the long road themselves. demand for cash. out of recession, although there What typically happens in this situation is remains the risk that we may that the non-value added activity, instead drop into “the second dip in a of being removed from the business, is W-shaped recession”. In this passed on to the remaining employees of period of uncertainty many the firm, burdening the retained workers companies face a dilemma – and undermining their productivity. whether to keep cutting back The other aspect of the business that has on costs and prepare for the been impacted by the recession is stocks worst, or to increase spending of raw materials, work in progress and on materials or manpower to finished goods. take advantage of the increase In a Lean world excess stock in economic activity. allows process inefficiency and However let me add a word of caution at this point; one of the problems with Whichever scenario finally emerges the so hides waste in a business. So many Lean implementations is that they one thing that most people agree on is that whilst reducing stock is a laudable find someone with knowledge of the Lean managing cash flow is of critical importance, activity this is only the case so toolbox and then set about applying those particularly since the banking system still long as it does not prevent the tools even if they are using the wrong tool appears to be reluctant to lend sufficient sums of money to sound companies. business taking advantage of in the wrong area. opportunities that an increase in In addition, without taking full account The general consensus appears to be that economic activity brings. of the complete value chain it is possible the level of “de-stocking” has reached to make one area more efficient to the its minimum and indeed there is some If we assume there is a sudden upturn detriment of the value chain as a whole – evidence that companies are rebuilding in demand for our goods or services creating islands of excellence in a sea their stock levels. On the other hand the natural reaction is take on more staff of waste! it seems likely that the levels of or purchase more stock to meet this redundancies and layoffs will continue demand. Unfortunately recruiting staff with Any improvement of a value chain for some time to come. the right skills and increasing stock levels should be grounded in understanding to meet the new demand levels both what the customer really values (and that The standard approach to this kind of require additional cash and therein lies the does not mean sending out a series of economic situation is to cut costs across problem, particularly if the company is not questionnaires to key customers), you can the board and although this might be a cash rich and relies upon the bank. then start to map the value stream starting short term expedient it rarely considers with the customer. how waste can be removed from the firm. By applying Lean Thinking, waste can be rapidly identified and steps taken to ensure Indeed in some situations the cuts have that those activities which are of no value been so deep that there is a risk of lasting to the customer are reduced and ideally damage to the body corporate such that eliminated and, although it impacts outside The home of Lean Thinking 7
  • 10. Ready for the Upturn This will enable you to identify the key The feedback was revealing in This meant that they could not only grow areas to apply the appropriate tools from terms of how Cogent operated their business profitably going forward, the Lean toolbox to maximise customer but also shorten the supply chain to their value and benefit to the business. in the current market and customers whilst reducing the threat also insightful in terms of what from competition in what is traditionally a For example, Cogent Power (featured they could do differently to be mature, highly competitive, price sensitive in the Shingo-Prize winning book Staying Lean: Thriving not just Surviving) carried successful in tomorrow’s market. market place. out 130 face-to-face interviews with 17 At the beginning of this recession the key key customers of its Canadian plant. The Common themes were: imperative was to reduce costs and to “out process set out to understand what the survive” your competitors, the situation customer valued at different touch points • they were doing a lot of things is now changing to taking advantage of within the business and specifically what right, just needed to do more of the opportunities out there by generating good looked or felt like against each of the them – and release time from customer value whilst at the same time identified values. activities that were not adding value minimising the demand for cash. from their customers’ perspective One approach to doing this is to apply • despite having supplied customers Lean Thinking to your business not by just for several years, they were applying the tools but by looking at what mistaken in thinking that they knew your customers really value and maximising the real influencers the efficiency in that value stream so you • many of their customers wanted can deliver what the customer demands as to have a more proactive and well as what they value on time, on quality, advanced partnership with them in full every time. • there were many ‘quick win’ Engaging your workforce in this pursuit by improvements that they could using Lean Thinking as a foundation for their act upon quickly. development will not only help you create value for your customers and margin for your business but will also leave you with a The feedback indicated that there was a flexible customer centric workforce. real market opportunity for the business to grow into new but aligned market areas In any event a flexible workforce and a clear where they had expert knowledge. understanding of customer value, combined with a positive cash position, are amongst Traditionally the business had supplied the key attributes which will define those quality component parts to other companies who do not just survive the manufacturers but Cogent Powers end recession but are in a position to thrive in users indicated that there was now a real the new order that emerges, whatever that opportunity for the business to add value to turns out to be. their existing product offering by moving up the “value ladder” and developing a higher quality engineered product and service at a competitive price. 8 The home of Lean Thinking
  • 11. Online Lean Learning Partnership offers online Lean learning programmes S A Partners has announced Leading Edge produces flexible online and S A Partners chairman Professor Peter a partnership with Leading Edge instructor-led training modules that help Hines commented: “When done organisations to manage the development successfully, Lean learning programmes Group, a Cork-based company of Lean skills within their workforce at transfer into an organisation the knowledge specialising in online Lean every level from basic awareness through and skill that was initially provided by learning solutions. The to practical application (see figure 1). external consultants. They therefore play alliance gives S A Partners Programmes are accredited externally by a vital role in the long term sustainability the opportunity to extend institutions such as University College Cork of continuous improvement, enabling its offering and to grow its and the Irish and American Institutes of businesses to retain and develop that Industrial Engineers. Leading Edge Group learning inhouse.” Lean consultancy business in has offices in Cork and Toronto and has Ireland, while Leading Edge worked with clients including Pfizer, Dell Leading Edge chief executive Joe Aherne added: “Our strength is in providing will be able to reach new and PepsiCo. learning for the entire workforce, customers in the UK and work S A Partners challenges and coaches whatever degree of involvement they will with S A Partners to develop businesses across all sectors to improve have in implementing Lean Thinking. We new learning material. their performance by applying Lean know that it is the combination of Lean Principles. It places significant emphasis tools and their systematic implementation on transferring knowledge and skills into that yields the best results, and this can client companies, to help them to sustain only be achieved through commitment improvements in the long term. In 2009 across all levels of the organisation. The a case study of the company’s work with online option also gives individuals the Cogent Power, entitled ‘Staying Lean: flexibility to study at their own pace, with Thriving not just Surviving’ was awarded a access to an experienced mentor.” Shingo Prize for Research. BLACK BELT 6 month online (l/r) Chris Butterworth, Managing Director, programme for career-minded Lean S A Partners Ireland; Professor Peter Hines, practitioners, Chairman, S A Partners; Steve Hardgrave, including leadership and project management skills. Strategy Consultant, Leading Edge Group and Joe Aherne, CEO, Leading Edge Group. GREEN BELT 13 week online or instructor led programme to achieve proficiency in understanding and applying Lean tools. Includes mentoring support. YELLOW BELT 2 day classroom overview for those likely to be involved in Lean projects - including a demonstration of Lean tools. A foundation for further Lean skills development. WHITE BELT For more information visit A 1 day classroom programme to introduce the workforce to the Lean philosophy, www.sapartners.com drivers for change, potential benefits and the role they play in ensuring success Figure 1 The home of Lean Thinking 9
  • 12. Treating the root cause Treating the root cause Lean problem solving techniques have a positive impact on the bottom line at Allergy Therapeutics 10 The home of Lean Thinking
  • 13. Treating the root cause Allergy Therapeutics develops, manufactures and sells a range of pharmaceutical products for the treatment and prevention of allergy. Their flagship product is Pollinex® Quattro which is transforming immunotherapy by vaccinating against allergy with only four injections. Allergy Therapeutics vaccines are “The focus was on the speed at Individuals were given the authority to prescribed only by medical practitioners which incidents were resolved, stop the production line if a fault occurred and are administered either by injection or and to call for help from relevant qualified placement under the tongue. not wholly on the quality of personnel before production resumed. the resolution.” In addition to branded products, ‘specifics’ “We used to get managers are developed to address unique In addition to the financial implications of this waste, the unpredictability of supply together in a meeting room to combinations of allergies for individual patients. Hundreds of products can threatened the company’s ability to resolve problems, now it’s the therefore be supplied in thousands penetrate new markets. The need people that are directly involved of combinations. to remake product had a negative in the process that solve the impact on capacity, staff morale and problems – on the shop floor customer satisfaction. as they occur.” Treating the cause Secondly, the teams examined the potential The solution was to engage the risks facing the business, to enable them to most appropriate resources from manage risk proactively. within the Allergy business, and deploy Teams of people attended more than a combination of Lean tools and techniques, 40 workshops working on a PFMEA – a to mount a two-pronged attack on Process Failure Mode and Effect Analysis process improvement. – that examined the potential risks in “At first I was sceptical that Lean producing a core product. Each risk was The £45m business is headquartered in tools that had been deployed given a score based on severity of impact, likely occurrence and ease of detection. Worthing, UK, with extensive sales and in environments such as marketing operations in several European Using these scores, the team could prioritise engineering could be applied to risks and consider countermeasures to countries. Patient safety is the company’s pharmaceuticals. My confidence reduce the chance of variability occurring priority and vaccines must comply with the strict pharmaceutical regulations that apply in in the methodology grew and and/or increase the likelihood of detection. each country in which its products are sold. now I know that the Lean Allergy Therapeutics are also collaborating principles work, whatever more closely with suppliers to help eradicate Drivers for change your business.” variability that may be caused by raw At the start of the ‘Odyssey’ journey, due materials, thereby extending Lean Thinking to the nature of biological pharmaceuticals, Firstly cross functional teams worked with up stream in the supply chain. variabilities resulted in defective product external Lean consultants to identify and having to be scrapped and remade. Incidents resolve the root causes of variability of variability in the production process were contributing to a more stable production a resource burden that was not sustainable process. This activity would also reduce and warranted action. waste, free up capacity and enhance durable sustainability. The home of Lean Thinking 11
  • 14. Treating the root cause Allergy’s Kelly Goss and Dick Knapp talk colleagues through the progress made on their parts of the ’Odyssey’ project. Tracking progress The benefits achieved so far: Allergy appointed a full time manager to the Odyssey project and established a project room as a base. Senior managers were • Wasted product reduced in the first year of the programme given roles as project sponsors to reinforce • Financial savings above target the impact of the project in supporting the company’s overall strategy. • Personal skills development, e.g. 25% of the workforce trained in Lean problem solving techniques Weekly PDCA (plan, do, check, act) meetings are held, using a tracking • Involvement of staff at all levels and the building of teams working document to report on the progress made across functional boundaries of numerous smaller concurrent projects. • Improved staff morale After the first year a communication event was held, at which each of the teams could • Increased communication with staff regarding the programme’s explain to their colleagues what they had achievements – a ‘voice’ for all those that are contributing been doing and what had been achieved • Improved customer satisfaction so far. • A culture of interrogating and targeting root causes Allergy Therapeutics has achieved significant benefits in the first year of the Odyssey • A methodology for proactively managing risk through the PFMEA programme, some which have a monetary • Greater collaboration with suppliers value, and others that do not, but which are no less critical to the success of the business. • A more structured process for classifying and resolving incidents. 12 The home of Lean Thinking
  • 15. Treating the root cause Source interviewed Head of Supply Operations, Ray Keeling, for his thoughts on the Odyssey project’s achievements. You are Head of Supply And that led to the start Were there any Operations, what does of the Odyssey project? turning points for you? that involve? I conceived a three year project to address There are two that stand out for me. Supply operations basically encompasses the challenges. In the business case that I We had an early breakthrough in the all the functions needed to bring a product presented to the board, I explained that production of the Tree product. We took to market, including: health and safety; we had to make an investment in skills great satisfaction from solving a validation of processes, facilities and development and diagnostic work and very complex problem with a new equipment; Information Technology; probably wouldn’t see tangible results in storage solution. planning; purchasing; manufacturing; the first six months, but the first year’s The second turning point was what we warehousing; packaging, and; distribution. results have exceeded our expectations. called our “Town Hall” event, held to What did you find when you Why did you seek communicate the progress of Odyssey took up the role in 2005? external help? to all our staff and our new shareholders. The feedback from the event was There was inherent variability in processes, The consultants challenged and overwhelmingly positive and I felt so resulting in waste. externalised us and this was what we proud of everyone’s contribution. needed. They brought a comprehensive What was your vision ‘Zero Defects’ approach that was closely Do you have any regrets? for change? aligned to our objectives and included skills Only that I wish I’d started Odyssey two I felt strongly that we should focus on transfer to ensure that in time we would years earlier! Times have changed since our core brand and put in place effective be able to continue the improvement the project began, but with what we’ve structured problem solving techniques on our own. achieved so far, the business is in a much based on fact and scientific based evidence. What do you think has stronger position to achieve a paradigm I wanted us to move to a culture of been the secret of the shift in our performance. transformational change to enhance success here? sustainable business performance. We’ve embedded and integrated the skills and problem solving processes into the compliance systems that govern our day to day work (so they aren’t perceived as an additional burden). We’ve also invested in skills development to ensure we can continue the improvement and sustain the benefits. The home of Lean Thinking 13
  • 16. Zero Defects Zero Defects A proactive approach to managing risk A retailer is losing market A pharmaceutical company is unable to meet regulatory standards due to excessive Why would an organisation want to adopt these techniques? Often it is only after a share because the internal non-conformances. A braking problem has occurred that action is taken distribution warehouse systems manufacturer is concerned about its to compensate – the business reacts. For a product failing in the field. serious issue, such as a car parts recall, this supply chain is not is too late – it costs a great deal of money Each of these businesses has dramatically optimising performance. improved its business performance by to correct the fault and the manufacturer’s A flat screen TV implementing a Zero Defects approach. reputation is severely damaged in the market place. manufacturer is losing So what is it? It encompasses a number of tools and techniques which, if used together, Alternatively problems may be captured capacity and output due provide a powerful mechanism for tackling internally through an inspection process – in to quality issues on its deep seated business issues. this case market perception is not damaged but nevertheless there are significant costs of assembly line. inspection, scrap, rework and lost capacity. 14 The home of Lean Thinking
  • 17. Zero Defects Once problems have been discovered, the headings of Severity, Occurrence and The PFMEA is entirely proactive. It forecasts the organisation needs to investigate Detection. The three ratings multiplied failures and stimulates preventative action the root causes and introduce effective together deliver the “Risk Priority Number.” before these failures occur. In the real countermeasures to ensure that it will The PFMEA is sorted by Risk Priority world, events may occur that are entirely never happen again. Anything less is an Number so that the highest numbers are unforeseen, or they are so far down the unsustainable workaround that has the at the top, thereby prioritising the projects PFMEA list that they are not scheduled to potential to fail once again. required to reduce risk. Preparation of this be looked at for some time. The urgent document requires a significant investment in need to react to these might outweigh the Implementing a Zero Defect time, but it becomes a live management tool proactive approach from the PFMEA. Whilst philosophy as part of a with a potential lifespan of many years. immediate action will have to be taken to continuous improvement culture, Having invested in diagnosing the process, protect the customer as the result of this providing a mechanism for what are the next steps? The only choices new occurrence, the PFMEA will need to be identifying issues and fixing root updated – certainly in terms of occurrence, are to reduce the level of occurrence or as it’s actually happened! This re-sorting may causes, can have a major impact increase the possibility of detection. Severity bring this new issue to the top of the list, on growth and profitability. will remain the same whether it happens requiring a team to investigate for root frequently or rarely. The tools and techniques that sit within the cause immediately. Zero Defects package include a daunting Multi-disciplinary teams are then In parallel with the PFMEA, it is frequently list of acronyms and Japanese buzzwords - set to work on the highest risks beneficial to use the techniques of Jidoka PFMEA, Jidoka, Genchi Genbutsu, 8D, using root cause problem solving (line stop) and Genchi Genbutsu (go, look, 5Y, process flow and variables, multi- disciplinary team work, poke yoke, 5W1H skills. Armed with a thorough see). If an issue has occurred, it is helpful understanding of a particular for staff to have the authority to stop the action planning, PDCA, 5 step checks, process and call in qualified people to the CI process. risk, they can design a counter investigate what has happened. By stopping It may not be necessary to deploy all of measure, the “poke yoke,” that the line, memories will be fresh regarding these, but it will certainly be necessary to will eliminate or dramatically what happened and the evidence will still be bring a number of them into play. The skill reduce the risk. there. If the issue is deep rooted, the learning lies in understanding fully the issues facing from this can be used to feed back into the The next stage is to implement the the business at the outset, and designing problem solving teams, which should speed counter measure. The team will need to the correct response. This response must up the whole process. demonstrate skills in project management include adequate resourcing of the project in terms of finance, time, commitment, and so and 5W1H (why, what, who, when, The Zero Defects approach is where, and how the new way of doing not a ‘one size fits all’ solution. on. Let’s look at the tools in more detail. things is going to be brought on stream). This is complemented by the discipline of The approach should be tailored PFMEA is “Process Failure Mode and Effect Analysis.” There is also a PDCA (plan, do, check, act) to ensure that to suit the business according Design FMEA equivalent. This approach is the new process is working, that we have to the issues that it is facing. proactive and examines in detail all aspects not incurred unintended consequences and Experience shows, however, of the process that expose a business that there is no way of slipping back to the that the application of the to risk. Many of the risks may not have old way of doing things. A 5 step process is correct tools and techniques, manifested themselves yet, but they could, designed as a final formalised sign off that the implementation was successful. Overall there fully supported by management and appropriate action should be taken to prevent the occurrence. are eight stages involved, and the process is commitment, will virtually commonly referred to as 8D. guarantee success. The PFMEA is essentially a detailed process flow chart, which an experienced team then On completion, the team can be disbanded, Each of the ZD mechanisms has been starts to challenge. The team brainstorms but not before the PFMEA has been updated proven and a continuous improvement all potential failure modes for each step with the new occurrence and detection process built upon root cause problem in the process and their effect on the ratings for that particular risk, which should solving should be an inherent part of all customer. Each of these is then rated under drop down the list of highest priority. management teams’ forward thinking. The home of Lean Thinking 15
  • 18. Information & Events Information & Events Useful Websites Networking Events Lean Related Websites Lean Leadership: www.sapartners.com www.linkedin.com An interactive training event that looks at www.superfactory.com the skills needed to lead a sustainable Linkedin discussion groups: Lean deployment. www.improvementandinnovation.com Lean & Green 26 & 27 May 2010, Cork www.leanenterprise.org.uk Lean Enterprise Food & Drink 2 & 3 September 2010, Stockholm Lean Enterprise Retail Staying Lean: Thriving not just Surviving Lean Enterprise Asia Pacific A one day workshop that investigates Lean Enterprise Ireland what is needed to sustain Lean business Lean Enterprise Nordic improvement, featuring a Shingo Prize- winning case study. Lean Enterprise United Kingdom 28 May 2010, Ireland Lean Enterprise Benelux 3 June 2010, Toronto Lean Enterprise Central and Eastern Europe 16 June 2010, Netherlands Lean Enterprise Mediterranean Lean Enterprise Canada Further details on: www.sapartners.com Recommended Reading Lean Management Journal Staying Lean: Thriving not just Surviving by SayOne Media and the Lean Enterprise by Hines, Found, Griffiths and Harrison Research Centre The book Staying Lean: Thriving not The Lean Management Journal (LMJ) just Surviving tells the story of how a aims to bring to the forefront the diversity multinational organization implemented and of thinking around Lean concepts and to sustained Lean to turn around its financial showcase Lean excellence from around the performance. It is designed to be used as globe. It also aims to provide a platform for a practical workbook to guide others along Lean debate and continuous improvement their own journey to embed Lean in the through shared experience, interviews and organization and to sustain performance case studies. improvement over the long term. For more information and a free pilot copy Publisher: Lean Enterprise Research Centre visit www.leanmj.co.uk (1 Feb 2008) ISBN: 0953798291 16 The home of Lean Thinking
  • 19. The home of Lean Thinking 17