Rob Olney, President of ETM Manufacturing and 25 yr veteran of supply chain solutions, provides fundamental building blocks for building, maintaining and repairing trust in the supply chain.

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Overcoming Distrust in your Lean
Implementation
9/26/12

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Overcoming Distrust in Your Lean Implementation
Trust is fundamental in every conversation that produces action. If requests
and promises are made, there needs to be a basis of trust otherwise both
parties will dis-engage from the conversation. Whether you are concerned
about business cooperation, manufacturing throughput or work cell
coordination, every conversation counts on trust between both parties.
What is trust? How is it built? When does trust fall apart? How do you
rebuild trust? I believe that a key source of poor lean implementation is due
to a lack of trust; either between the team and the leader, or between team
members. This session will focus on the 3 fundamentals of trust and methods
you can use to build trust or repair trust. We will use real life examples of
trust building, demonstrate breaks in trust and show techniques you can use
to rebuild trust.

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About Rob Olney
As President of ETM Manufacturing, Rob implemented
open book management, a profit sharing plan and
launched lean manufacturing all in 2007. Over the past
5 years he has worked with 4 different lean
consultants, 3 VP of Operations and 80 employees to
help implement a lean environment. Prior to
purchasing ETM, Rob was Director of Sourcing &
Development for Staples, the office supplies
superstore, as well as Director of Program
Management for Flextronics, then the world’s largest
contract manufacturer.
About ETM Manufacturing
For more than 40 years, ETM Manufacturing has been
providing custom, precision sheet metal and machined
components to some of the best New England-based
original equipment manufacturers in computing,
energy, telecommunications, medical/lab, printing and
other industrial equipment. ETM offers creative
solutions to customer’s complex supply chain issues,
helping them save money and reducing time to market.
For more information, please visit www.etmmfg.com
or call (978) 486-9050.

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Overview
• Why Trust?
• Building Trust
• Breaking Trust
• Repairing Trust
• Troubleshooting

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Conversations For Action
A: Request
B: Renege
Source: Terry Winograd & Fernando Flores
Understanding Computers & Cognition
Addison-Wesley, p.65
1
9
7
6
8
2 3 4 5
B: Promise
A: Declare
B: Assert A: Declare
A: Withdraw
A: Withdraw
B: Reject
A: Withdraw A: Reject
B: Withdraw
A: Accept
B: Counter
A: Counter

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Basic Action Workflow Loop

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Customer
President
>
>
Better, faster,
cheaper
Performer
President
>
Customer
President
>
>
Improve
Performance
Procurement
>
VP Sales
>
>
Lower price,
faster service
President
>
President
>
>
Reduce waste
in operations
VP Ops
>
VP Ops
>
>
Reduce set-
up on line 1
Manager
>
Manager
>
>
Cut machine1
set-up by 50%
Op.
>
VP Sales
>
>
More sales
Referrals
Procurement
>
Business Process Modeling

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How Does Trust Sound?
"GBMP provided my team with a formal assessment of what needed to change
in our FDA GMP/ISO 9000 operation in order to satisfy a major customer
demanding a 75% reduction in lead-time. GBMP assisted us with securing a
state grant to finance our training classes. Once this was in place we partnered
with GBMP for two years to drive the Continuous Improvement mentality
throughout the organization. They organized our training sessions and provided
us with the tools to make the changes, but allowed us to figure out how to
execute and sustain the improvements. When this 2-year program was
complete our lead-times dropped by 75%, our customer satisfaction was at an
all time high, quality was much improved and our profit margin had jumped
significantly. I highly recommend that any company planning to take the Lean
journey look towards GBMP for guidance and direction.“
Dan Massucco, Director of Manufacturing
RNA Medical, a division of Bionostics

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How Does Distrust Sound?
“… there were nine incidents also reported in Florida of
consumers complaining that a seller on Craigslist took their
money but never delivered the used car as agreed upon.”
“Another debt collection grievance involved … a collection
company wins a judgement in court against a person because
the agency never notified the individual about the hearing in
the first place.”
“Bed bugs appear to be a growing problem in rental units,”
the report states, “and some agencies began to get complaints
last year from tenants whose landlords were refusing to
eradicate these infestations.”

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The Ten “Linguistic Viruses”
1. Not Making Requests
2. Living with
Uncommunicated
Expectations
3. Making Unclear
Requests
4. Not Observing the
Mood of Requesting
5. Promising When
Request is Not Clear
1. Not Declining Requests
2. Breaking Promises
Without Taking Care
3. Treating Assessments
as Facts
4. Making Assessments
Without Grounding
5. Making Fantasy
Affirmations &
Declarations
Source: Matthew Budd & Larry Rothstein
You Are What You Say
Three Rivers Press, p.141 – p.152

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The Three Pillars of Trust
Preparation
Negotiation
Assurance
Performance
Competence
Recurrence
Sincerity

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Case #1 – Co-workers, part 1
“What could I do when I have a staff of mostly
CAVEmen? These people are in their late 40's to
50's and are a mix of Pharmacists and Techs.
And they have been in the profession for 20
years? Why are they soooo resistant to
conserving inventory and not haording as if we
are about to have a nuclear disaster?
HELP?”
- Michelle Miller, LEI Community Forum

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Case #2 – Organization-wide
“I deliver BIT (Business Improvement Techniques)
NVQs in the UK. This involves visiting firms for a 2
hour presentation, delivered by myself, on various
lean techniques as required within the NVQ units. I
face a lot of skepticism from many of the learners
and these aren't children or youngsters, they're
grown adults who will fight change tooth and nail.”
- Duncan Thomson, LEI Community Forum

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Case #3 - Culture
“I've done a lot of working with lean, and recently
started my first coaching/consulting gig. And while
I'd love to help by introducing people to flow, Takt
Time, pull, and all the nifty lean tools and ideas, the
most striking thing I've learned is how much
hostility and mistrust exists among people. How can
I help lean take root when the biggest problem
turns out to be a crappy culture?”
- Unknown, LEI Gemba Coach Letters

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Reply From Michael Balle, LEI
1. “… start with Takt Time, and ask people to
keep to it.”
2. “… start with customer complaints, and force
teams to analyze these thoroughly.”
3. “… clarify what Takt Time means in the
business …”
4. “…focus everyone at delivering at Takt Time,
exactly …”

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Case #4 - Co-workers, part 2
“There was a Pilot Line set up with the [TPM] essentials
installed & working; however as we would like to
replicate the activities to the other lines we are facing a
strong (!) resistance from the part of maintenance team.
Maintenance manager tired different approaches to get
the team members involved (including Unions support)
but with no results. Would anyone have any idea and/or
experience in this area to share please? How would you
get the maintenance team commitment?”
- Gosia Klocek, LEI Community Forum

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Case #5 - Management
“We have consulted with ,and conducted tours for, many
companies looking to get into Lean and it's one of the
most common questions we get asked [real challenges in
getting upper management to buy into Implementing
Lean].
On the one hand, it's good to see that someone within
the company sees the vision but, like with all other
aspects of business, unless it starts at the top, it won't go
far enough.”
- Dan O’Handley, LEI Community Forum

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Case #6 – Co-workers, part 3
“I'm a CNC machinist and I have implemented a
couple of my own lean ideas at my work. My ideas
have been very well received by upper
management but not so much by some of my co-
workers and lead men. I am encountering some
resistance and back-sliding for various reasons, and
of course for these ideas to truly be beneficial, all
the necessary people need to participate correctly,
but they're not.”
- Dave Hunt, LEI Community Forum

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Case #7 – Co-workers, part 4
“I am a Lean practitioner and having trouble
implementing 5S in one of our office teams (they
are an OR team, or Operations Research). I am
implementing 5S here to primarily raise levels of
engagement and exposure to Lean. The team are
searching for 'tangible benefits', which I like, but I
do feel that they are looking too deeply into this...
How can I sell 5S to them, and how did you
overcome your problems?”
- Karl Norton, LEI Enterprise Forum

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Case #8 – Supply Chain
“I have been trying to convert our raw materials to Kanban with the suppliers and we are having issues.
1) Supplier resistance to the Kanban system because they do not want to carry any inventory. They like the
blanket order idea, but want scheduled releases. Some even say their forecast has to be solid with their parent
company.
2) We are currently using Kanban cards to trigger releases, but what ended up happening is the purchasing
agent is waiting for a reply from the supplier to make sure they can hit the lead time on the card and is also
keeping a log book. They are doing more work instead of less.
3) Our purchasing leader wants visibility in the system. To get the visibility the purchasing agent is currently
having to go into Macola and add a release and due date to the p.o., which now is more work.
I am trying to get rid of this, but not successful. I tried to get the purchasing team to go to the supermarkets in
the plant and look at the Kanban boards, but that only lasts a day or two and they stop visiting because they
are too busy.
4) It is frustrating because I was supposed to have all these parts converted to Kanban and make it so that
purchasing is only concentrating on the A and B items (ABC analysis), but they are doing it with all items still.
This has become a viscous cycle and I need to figure something out before all the work we did becomes
reversed.”
- James Wicmandy, LEI Community Forum

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Case #9 – Middle Management Resistance
“I wanted to let you know ahead of time that LEI will
release its 2007 State of Lean Survey to the media on
Wednesday, July 18, 2007.
The survey found that middle management resistance
now is the #1 obstacle to implementation, replacing
backsliding to the old ways of working, which was #1 last
year and has been in the top 3 since we began the annual
survey in 2003.Backsliding fell to #6 this year.”
- Chet Marchwinski, LEI Forums Moderator

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Case #10 – Failed Kaizen
“Yesterday I led my first Kaizen event. It failed to
produce any change in the process. The process I
selected was inspection. In a brainstorm session we
came up with 15 ideas on how we could improve
the inspection process. They came up with 7 ideas, I
came up with 8 ideas. Then we met again a week
later and discussed each idea in detail. We ended
up with no changes being made.”
- Jim Fernandez, LEI Community Forum

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About ETM Manufacturing
• Build-to-Print Custom
Metal Parts
– Sheet metal, machining &
assembly
– Prototypes to Production
• Configure to Order Racks
– Server Racks (1U – 48U)
– Food Racks (i.e. Bakery)
• Value Chain Analysis
– Cycle Time Compression
– Process Cost Reductions