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Checking Progress On Your Lean
                           Journey
                                                     Presented by
                                    Jeff Hajek                     Tim McMahon
                                  Gotta Go Lean                    A Lean Journey




© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.                    Version 5/20/2012
All Rights Reserved.
Are We There Yet?




  Here                                                                                         There




© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.   Image courtesy of Wikimedia Commons
All Rights Reserved.                                               http://commons.wikimedia.org/wiki/File:Maze.svg
The Big Picture




© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.   Mural image courtesy of Wikimedia Commons
All Rights Reserved.                                               http://commons.wikimedia.org/wiki/File:Mural_Building_in_Albuquerque.JPG
Lean (Process) Metrics
     •    Productivity
     •    Lead time
     •
     •
          Quality
          Inventory turns
                                                                   A
     •    % “A/B” Parts on kanban
     •    Response time for andons
     •    Floor space
     •    Ergonomics
                                                                   B
                    Process Focused
                        Metrics
© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.
All Rights Reserved.
Lean Training & Participation
        Participation doesn’t
           equal results!




        •    % of team receiving Lean training                                       If you don’t
        •    # of kaizen events                                                    participate, you
                                                                                 definitely won’t get
        •    % of team in kaizen within year
                                                                                        results!
        •    # of black belts

© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.   Image courtesy of Wikimedia Commons
All Rights Reserved.                                               http://commons.wikimedia.org/wiki/File:Mocking_Bird_Argument.jpg
Leadership




• Is there a clear vision / strategy?
• Is there policy deployment (hoshin kanri)?
                                                                        Bottom Line:
• Do leaders visit gemba (work areas) or live                       Are leaders
  there?                                                           “Walking the
• Is there a daily management system?
• Is there leader standard work?
                                                                      Talk”?
                                                                   Image courtesy of Wikimedia Commons
© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.   http://commons.wikimedia.org/wiki/File:Cavalry_c
All Rights Reserved.                                               harge_by_the_Ottoman_army_in_the_Sinai.jpg
Kaizen Measurement




                           Follow-up provides HUGE
                           “Tell” about commitment

© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.   Image courtesy of Wikimedia Commons
All Rights Reserved.                                               http://commons.wikimedia.org/wiki/File:Metre_pliant_500px.png
Culture
                                              • Responses to problems /
                                                openness
                                              • ‘Kata’ behaviors
                                              • Degree of cross-training
                                              • Mentoring
                                              • Resource sharing
                                              • Turnover
                                              • Staffed for project time

                                                                   Image courtesy of Wikimedia Commons
                                                                   http://commons.wikimedia.org/wiki/File:MoveInHangetsuDachi.svg
© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.   http://commons.wikimedia.org/wiki/File:Shadow_Karate_Kick.jpg
All Rights Reserved.
Infrastructures
                                                                   •     Workshops
                                                                   •     Meeting rooms
                                                                   •     Tools / equipment / materials
                                                                   •     Training materials




     Do teams have the
   right tools for the job?
                                                                       Image courtesy of Wikimedia Commons
                                                                       http://commons.wikimedia.org/wiki/File:Inside_the_Bender_Factory_-
© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.       _geograph.org.uk_-_1547827.jpg
All Rights Reserved.
Conclusion
      • Regular audits / assessment
            –         Track progress!
            –         Countermeasure problems
      •         Must have a course charted to do an
                assessment
            –         Have to know where you are supposed to be
            –         Don’t waste time with starting point until you
                      know what the end point is.




© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.
All Rights Reserved.
Follow-up Information


• http://www.GottaGoLean.com                                       http://www.ALeanJourney.com

                                                                          http://www.facebook.com/ALeanJourney




                                                                           @TimALeanJourney




  Form Library: Policy Deployment Matrix                                    A Lean Journey LinkedIn Group


© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.
All Rights Reserved.
Questions
                                                                             Jeff Hajek
                                                                     Info@Velaction.com
                                                                   www.GottaGoLean.com
                                                                         1.800.670.5805


      Tim McMahon
      Tim@ALeanJourney.com
      http://linkedin.com/in/timothyfmcmahon
      860-HOW-LEAN (469-5326)
© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.
All Rights Reserved.
Copyright Terms
      • You may modify this presentation for use
        within your own organization.
      • You may distribute this presentation within
        your own organization.
      • You may not distribute this presentation, its
        derivative works, or copyrighted images
        contained within it outside of your own
        organization.

© 2012 by Velaction Continuous Improvement, LLC and Tim McMahon.
All Rights Reserved.

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Checking Progress On Your Lean Journey

  • 1. Checking Progress On Your Lean Journey Presented by Jeff Hajek Tim McMahon Gotta Go Lean A Lean Journey © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. Version 5/20/2012 All Rights Reserved.
  • 2. Are We There Yet? Here There © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. Image courtesy of Wikimedia Commons All Rights Reserved. http://commons.wikimedia.org/wiki/File:Maze.svg
  • 3. The Big Picture © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. Mural image courtesy of Wikimedia Commons All Rights Reserved. http://commons.wikimedia.org/wiki/File:Mural_Building_in_Albuquerque.JPG
  • 4. Lean (Process) Metrics • Productivity • Lead time • • Quality Inventory turns A • % “A/B” Parts on kanban • Response time for andons • Floor space • Ergonomics B Process Focused Metrics © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. All Rights Reserved.
  • 5. Lean Training & Participation Participation doesn’t equal results! • % of team receiving Lean training If you don’t • # of kaizen events participate, you definitely won’t get • % of team in kaizen within year results! • # of black belts © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. Image courtesy of Wikimedia Commons All Rights Reserved. http://commons.wikimedia.org/wiki/File:Mocking_Bird_Argument.jpg
  • 6. Leadership • Is there a clear vision / strategy? • Is there policy deployment (hoshin kanri)? Bottom Line: • Do leaders visit gemba (work areas) or live Are leaders there? “Walking the • Is there a daily management system? • Is there leader standard work? Talk”? Image courtesy of Wikimedia Commons © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. http://commons.wikimedia.org/wiki/File:Cavalry_c All Rights Reserved. harge_by_the_Ottoman_army_in_the_Sinai.jpg
  • 7. Kaizen Measurement Follow-up provides HUGE “Tell” about commitment © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. Image courtesy of Wikimedia Commons All Rights Reserved. http://commons.wikimedia.org/wiki/File:Metre_pliant_500px.png
  • 8. Culture • Responses to problems / openness • ‘Kata’ behaviors • Degree of cross-training • Mentoring • Resource sharing • Turnover • Staffed for project time Image courtesy of Wikimedia Commons http://commons.wikimedia.org/wiki/File:MoveInHangetsuDachi.svg © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. http://commons.wikimedia.org/wiki/File:Shadow_Karate_Kick.jpg All Rights Reserved.
  • 9. Infrastructures • Workshops • Meeting rooms • Tools / equipment / materials • Training materials Do teams have the right tools for the job? Image courtesy of Wikimedia Commons http://commons.wikimedia.org/wiki/File:Inside_the_Bender_Factory_- © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. _geograph.org.uk_-_1547827.jpg All Rights Reserved.
  • 10. Conclusion • Regular audits / assessment – Track progress! – Countermeasure problems • Must have a course charted to do an assessment – Have to know where you are supposed to be – Don’t waste time with starting point until you know what the end point is. © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. All Rights Reserved.
  • 11. Follow-up Information • http://www.GottaGoLean.com http://www.ALeanJourney.com http://www.facebook.com/ALeanJourney @TimALeanJourney Form Library: Policy Deployment Matrix A Lean Journey LinkedIn Group © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. All Rights Reserved.
  • 12. Questions Jeff Hajek Info@Velaction.com www.GottaGoLean.com 1.800.670.5805 Tim McMahon Tim@ALeanJourney.com http://linkedin.com/in/timothyfmcmahon 860-HOW-LEAN (469-5326) © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. All Rights Reserved.
  • 13. Copyright Terms • You may modify this presentation for use within your own organization. • You may distribute this presentation within your own organization. • You may not distribute this presentation, its derivative works, or copyrighted images contained within it outside of your own organization. © 2012 by Velaction Continuous Improvement, LLC and Tim McMahon. All Rights Reserved.

Editor's Notes

  1. Talking PointsWhy measure? Need to confirm that the actions you are taking are getting your where you want to go.Means several things: 1. Have to know where you started 2. Have to know where you want to end up 3. Have to know the lay of the land 4. Have to chart a course 5. Have to know where you are along the way 6. More important to check location relative to plan than to destination-Countermeasure to get back on trackChecking progress means comparing 3 and 4, and then taking action.Takeaways: Hard to tell where ‘There’ should be—top strategy Easy to tell if path was wrong, but hard to tell if it will be right (hindsight is 20/20)
  2. Common way companies are measures is by big picture results—No distinction between how the world measures Lean and non-lean companies. It is about measuring business objectives. Lean affects the processes to Standard Metrics: Tier 1: Profit margin, sales, profit Tier 2: Quality metrics, Lead times, Customer satisfactionChallenges Industry dependent Wide disparity in progress Pockets of excellence (world class in one metric, average in another) Strategy dependent (i.e. margins for Nordstroms vs. Walmart)Have to link external evaluations to internal processes/Lean efforts Company: PD Department: KPIsBest indicator is progress—need to develop a trend to see if you are going in the right direction, and with enough speed
  3. Process/systems focused metricsDrivers behind ‘big picture’ improvement Actionableeasily measurable understood by teamsKey: Direct link to processesTalk through animation Important thing is not absolute value—it is progress Won’t happen without also focusing on the drivers of CI efforts
  4. Among most controversial-Leads to arguments among ‘Lean Zealots’Some recommend tracking Lean activities; others resistJeff’s Recommendation:Use as a secondary measure or as a countermeasure measurement, but audit to prevent gaming the metrics. Provides a good indicator when progress is slower than planned.
  5. Have to follow up on projects to make sure tasks are accomplishedHow diligently teams follow-up on projects is a litmus test of Lean progress—Do they take initiative to make changes?Don’t just track the individual project follow-up. Look at how well projects are completed across the board.
  6. Always have the tools for ‘normal’ jobCheck to see if the right tools are present, and that they are properly maintained