A Lean Management System (a.k.a. Lean Daily Management System or Daily Management System) is the system that allows you to deliver customer value through proper support and leadership to those who are closest to the process (customers and process owners). These are practices and tools used to monitor, measure, and sustain the operation of Lean production operations. Lean management practices identify where actual performance fails to meet expected performance, and assigns and follows up improvement activities to bring actual in line with expected, or to raise the level of expected performance. The basic components of the Lean Management System are: Leader Standard Work, Visual Controls, Daily Accountability and Leadership Discipline. The Lean Management System will help Lean leaders such as team leaders, supervisors, department managers, value stream managers and senior executives to improve leadership effectiveness based on Lean best practices. As a daily management system, this is the most effective mechanism for managing employees not just in the shopfloor or office, but also those working in a flexible or work-from-home environments. ​This Lean Management System PPT training presentation shows you how to implement a sustainable, successful transformation by developing a culture that has your stakeholders throughout the organizational chart involved and invested in the outcome. It teaches you how to implement the four key elements of the Lean Management System to enhance your effectiveness as a Lean transformation leader. LEARNING OBJECTIVES 1. Acquire knowledge on the four key elements of the Lean Management System 2. Acquire knowledge on the supporting elements of the Lean Management System ​CONTENTS 1. Introduction to Lean Management System 2. Key Elements of a Lean Management System 3. Supporting Elements of a Lean Management System To download this complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations

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© Operational Excellence Consulting. All rights reserved.
Lean Daily
Management
System
4.
Leadership
Discipline

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Learning Objectives
1. Acquire knowledge on the four key elements of the Lean
Management System
2. Acquire knowledge on the supporting elements of the Lean
Management System
Copyrights of all the pictures used in this presentation are held by their respective owners.
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg

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Outline
Introduction to the
Lean Management
System
Supporting
Elements of a Lean
Management
System
Key Elements of a
Lean Management
System

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Impact of Tactical Lean Without a Management
System to Sustain It
Time
Kaizen
Event #1
Kaizen
Event #3
Your current
state…
What the Standard should be
Output
What actually
becomes the
Standard when
people do not
sustain the changes
Backsliding
Kaizen
Event #2
What the Standard should be
Backsliding
Your desired
future state…
…but you are lucky
if you get here

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Lean Management System Creates Process Focus
and Drives Improvement
1
Frequent focus on
process health:
Visual Controls
2
3
Process
Focus
Improvement
standard:
(Visual)
Accountability
Sustained
improvement:
Leader Standard
Work
Source: Based on David Mann

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Parallel Implementations of Lean Production &
Lean Management System
Leader
Standard
Work
Traditional Culture
Lean
Production
System
Daily
Accountability
Visual
Controls
Waste
Elimination
Waste
Identification
Lean Culture
Lean
Transformation
Lean
Management
System
Discipline
PDCA Cycle
Continuous
Improvement
Strategic
Tactical

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Healthy
Lean management system
=
Healthy
Lean production system

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Other Equivalent Terms
§ Other terms synonymous to Lean Management System
• Daily Management (DM)
• Daily Management System (DMS)
• Lean Daily Management System (LDMS)
• Lean System For Managing (LFSM)
• Managing for Daily Improvement (MDI)

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Group Discussion: Lean Management
Systems
1. Does your management system reinforce finding and
eliminating problems, or does it reinforce working
around problems to meet the schedule?
2. Have you implemented Lean Production tools only to
find they did not seem to work or hold up over time?
Why do you think that happened?
3. Are senior managers familiar with and prepared for the
part they need to play in leading and sustaining Lean
beyond initial statements of support?
Time: 10 mins

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Planned Maintenance
Four Key Elements of the Lean Management
System
4.
Leadership
Discipline

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Lean Elements Need to Work Together
Engine:
Leader Standard
Work
Gas Pedal & Steering Wheel:
Daily Accountability Process
Transmission:
Visual Controls
Fuel:
Discipline
It is important to improve the stability of a process first
before implementing the Lean management elements.
1
2
3
4

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What is Leader Standard Work?
Leader standard work is a
daily performance management system
that is:
Visual
Drive Action
& Learning
Timely

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What is Leader Standard Work?
§ Provides a structure and routine for Leaders
§ Sets standards for the expected behaviors of leaders
§ Drives accountability by measuring “Actual versus Plan”
Executive
Standard Work
§ What To Do
§ When To Do It
§ Was It Completed?
§ (if not, Why?)
Manager
Standard Work
§ What To Do
§ When To Do It
§ Was It Completed?
§ (if not, Why?)
Supervisor
Standard Work
§ What To Do
§ When To Do It
§ Was It Completed?
§ (if not, Why?)
Team Leader
Standard Work
§ What To Do
§ When To Do It
§ Was It Completed?
§ (if not, Why?)
Running & Improving the Business
Interlocking Successive Layers Driven from the Bottom Up

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What is Leader Standard Work?
Team Leader
Standard Work
Supervisor
Standard Work
Plant Mgr / Mfg Mgr /
Value Stream Manager
Standard Work
Executive
Standard Work
Lean Management System
Standardized Lean Processes
Strategic
Focus
Tactical
Focus

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Leader Standard Work is a necessary step in the beginning
stage until leaders develop so it is “the way they think and act”
Source: Based on Jeffrey Liker
Leader Standard
Work
Visual
Controls
Daily
Accountability
Process
Leadership
Discipline
1
2
3
4

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Who Should Have Leader Standard Work (LSW)?
Role
% of Work Time
that should be
Standard
Responsibilities
Executives 15% Verify production process is improving
Value Stream Manager 25% Monitor and support Managers
Managers 50% Monitor and support Supervisors
Supervisors 50% Monitor and support Team Leaders
Team Leaders 80% Ensure operator standard work is followed
Operators 95% Used in performing task consistently
Standard work is more defined and
specific in roles closest to the
process

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LSW Example: Team Leader
Once
daily
actions
Multiple
times daily
actions
Tasks
assigned or
received
today
Notes on
daily work
and non-
standard
tasks

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What is Visual Management?
§ A system of planning, control, and
continuous improvement that
integrates:
• Simple visual tools that enable
understanding at a glance
&
• Management standard work that
ensures process adherence and
continuous improvement
Visual management is not
desktop management

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Example: Visual Control Metrics
Monthly
Trend
Chart
Shift-to-Shift
Trend
Chart
Pareto
Chart
Cause &
Effect
Gantt Chart
Monthly
Trend
Chart
Shift-to-Shift
Trend
Chart
Pareto
Chart
Cause &
Effect
Gantt Chart
Monthly
Trend
Chart
Shift-to-Shift
Trend
Chart
Pareto
Chart
Cause &
Effect
Gantt Chart
Safety Delivery Cost
Quality
Note: Start with
existing data and build
up over time measures
that your team is
accountable for

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• Gaps? Trends?
What is
happening?
• Root causes?
Why?
• Correct the problem – implement
containment action?
• Prevent the problem –
permanent corrective action?
What needs to
be done?
• Who does what?
• Any support needed?
Who is going to
do it?
• Prioritization?
• Deadline?
• Milestones?
When is it going
to be done?
Visual Metrics Facilitates Communication and
Identification of Areas that Need Improvement
Productivity
Delivery
Quality
Customer Satisfaction
Sales per Employee
Cost Per Employee
First Call Resolution
SLA Metrics Met
Actual $3,200
Target $3,500
Actual $91.50
Target $78.39
Actual 80%
Target 95%
Actual 4.8
Target > 4 of 5
Actual 7.0
Target 9.0
Actual 5.0 hrs
Target 4.5 hrs
Actual 2 hr
Target 1 hrs
Customer Complaints
Actual 2.0
Target 1.0
Turnaround Time
Response Time
Overall Satisfaction
12
10
8
6
4
2
USL
Process Data
Sample N 100
StDev(Within) 2.25841
StDev(Overall) 2.39212
LSL *
Target *
USL 9
Sample Mean 6.21762
Potential (Within) Capability
Overall Capability
Pp *
PPL *
PPU 0.39
Ppk 0.39
Cpm
Cp
*
*
CPL *
CPU 0.41
Cpk 0.41
Observed Performance
PPM < LSL *
PPM > USL 130000.00
PPM Total 130000.00
Exp. Within Performance
PPM < LSL *
PPM > USL 108973.12
PPM Total 108973.12
Exp. Overall Performance
PPM < LSL *
PPM > USL 122385.02
PPM Total 122385.02
Within
Overall
Process Capability of C2
12
10
8
6
4
2
USL
Process Data
Sample N 100
StDev(Within) 2.25841
StDev(Overall) 2.39212
LSL *
Target *
USL 9
Sample Mean 6.21762
Potential (Within) Capability
Overall Capability
Pp *
PPL *
PPU 0.39
Ppk 0.39
Cpm
Cp
*
*
CPL *
CPU 0.41
Cpk 0.41
Observed Performance
PPM < LSL *
PPM > USL 130000.00
PPM Total 130000.00
Exp. Within Performance
PPM < LSL *
PPM > USL 108973.12
PPM Total 108973.12
Exp. Overall Performance
PPM < LSL *
PPM > USL 122385.02
PPM Total 122385.02
Within
Overall
Process Capability of C2
12
10
8
6
4
2
USL
Process Data
Sample N 100
StDev(Within) 2.25841
StDev(Overall) 2.39212
LSL *
Target *
USL 9
Sample Mean 6.21762
Potential (Within) Capability
Overall Capability
Pp *
PPL *
PPU 0.39
Ppk 0.39
Cpm
Cp
*
*
CPL *
CPU 0.41
Cpk 0.41
Observed Performance
PPM < LSL *
PPM > USL 130000.00
PPM Total 130000.00
Exp. Within Performance
PPM < LSL *
PPM > USL 108973.12
PPM Total 108973.12
Exp. Overall Performance
PPM < LSL *
PPM > USL 122385.02
PPM Total 122385.02
Within
Overall
Process Capability of C2
Example of a visual metrics board

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The Activity Board Concept
This work team can see what’s important and why, along
with key information for the team’s effectiveness.
Mission Team Members
Project Plan
(Gantt Chart)
Key Objectives
Skills Matrix
Quality
Trend Chart
Cost
Trend Chart
Delivery
Trend Chart
Current State Future State
Issues & Challenges
Countermeasures &
Follow Up Action Plan
Attendance

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Example: Team Activity Board
Inventory
Cost/Productivity
Delivery
Quality
Safety
Daily / Weekly /
Monthly Trend
Pareto Charts
6-Month Lean Business Plan
Problem Solving

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Group Discussion: Visual Management
1. Do your visuals mostly display status or history, or do
they reflect a focus on process that highlights problems
to drive improvement with visual evidence of
improvement activity?
2. Are your visuals only visible on computer monitors? How
effective are they in driving improvement? In engaging
the workforce?
3. Is there an emphasis on a consistent look and format for
the visuals in your workplace? If yes, how effective are
they and do they work equally effectively everywhere?
Time: 10 mins

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Relationship Between Hoshin Kanri & Daily
Accountability Process
HK with no DM
DM with no HK
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
Time
Performance
(KPI)
Hoshin Kanri
Daily Accountability Process with Kaizen
Source: Adapted from Liker & Convis

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Work is
planned
Work is
performed
Result of
work is
checked
Adjustments
are made as
needed
Plan
Do
Check
Act
What is the Daily Accountability Process?

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Daily Accountability Process – Tier Meetings
§ Brief – rarely more than 15 minutes
§ Stand up meetings at the workplace
§ Agenda is to review status of plans versus actions on visual display
boards
TL + Staff
Supervisor
Tier 2 meeting
(1000-1015)
Tier 1 meeting
(0900-0915)
MD
Manager
Tier 3 meeting
(1100-1115)

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Daily Accountability Process – Tier Meetings
Tier 2 meeting
Tier 1 meeting
Manager holds meeting with
supervisors from 10:00-10:15 am
Supervisor holds meeting with
team leaders and support staff
from 9:00-9:15 am
Tier 3 meeting
MD holds meeting with
managers from 11:00-11:15 am

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Tier 1 Meeting – Sample Agenda
When: 0900 – 0915
Lead by: Supervisor
Indicators:
§ Attendance
§ Safety performance
§ Quality performance
Participants:
§ Team leaders and members
Outputs:
§ Team performance (target vs.
actual)
§ Overtime required
§ Improvement suggestions or
actions
Inputs:
§ Today’s safety message
§ Issues from previous day
§ Today’s targets
§ Staffing plan

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Tier Meetings – Healthcare Example
Tier 1 –
Team Leaders & Team
Members
Tier 2 –
Supervisors &
Team Leaders
Tier 3 –
Manager, Supervisor &
Support
Safety
§ PPE
§ Injuries from previous period
Attendance
§ Backfill / Cross-training
Delivery
§ Schedule
§ Line stop from previous period
Concerns This Period
§ Materials / SWIP
§ Equipment / Tools
§ Process / Methods
Safety
§ Issues from previous period
Attendance
§ Plan for next period
Delivery
§ Schedule for next period
§ Line stop from previous period
§ Planned vs Actual from previous
period
Quality
§ Issues from previous period
Projects
§ Done by team / Move to
Accountability Board
Safety
§ Safe Day previous period?
Delivery
§ Planned vs Actual from previous
period
§ Conversions / RA from previous
period
§ Downtime from previous period
Quality
§ Direct Run from previous period
§ First Pass Yield from previous
period
§ Units in Hospital
Abnormalities
§ All unplanned events that affected
the daily plan

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Operational Excellence Consulting is a management training and consulting
firm that assists organizations in improving business performance and
effectiveness. Based in Singapore, the firm’s mission is to create business
value for organizations through innovative design and operational excellence
management training and consulting solutions. For more information, please
visit www.oeconsulting.com.sg