Why Lean Efforts fail - looking at cultural reasons why Lean dosen't work and what you can do to prevent it.
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Video located at http://youtu.be/Cs18sO-PrOw A 39 minute video on cultural reasons why Lean doesn't work at some companies and works well at other companies. It's true weather you are doing Lean in manufacturing, healthcare, start-ups, or any other industry it still applies. You'll also get 3 tools to help you diagnose and help you implement change properly.
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Why Lean Efforts fail - looking at cultural reasons why Lean dosen't work and what you can do to prevent it.
- 1. The Lean Way is led by Ankit Patel. Ankit’s personal vision is to help people, organizations and communities flourish by using the proven thinking and methodology associated with Lean Transformations. Prior to founding The Lean Way Consulting, he was a Lean consultant with computer giant Dell, where he helped guide strategic planning at its multi-billion-dollar manufacturing, distribution, and re-manufacturing plants in Lebanon, TN. As part of his job, he coached plant executives, facilitated Kaizen events and trained Lean leaders at all levels of the organization. Equally at home in healthcare, he has also worked with the world-renowned Cleveland Clinic, where he helped improve culture and processes in its internationally ranked Heart and Vascular Department. Clients praise Ankit for his stabilizing influence during times of conflict and his balanced, calm leadership through all phases of Lean Transformations and other company change. He holds a Master of Science degree in Positive Organizational Development from Case Western Reserve University, as well as a Bachelor of Science degree in Industrial Engineering from Georgia Tech. He lives with his wife in the greater Atlanta, GA. Today’s Speaker Ankit Patel Ankit Patel Managing Director The Lean Way Consulting 404.855.1634 www.TheLeanWayConsutling.com ankit@theleanwayconsulting.com
- 2. Why Lean Fails Ankit Patel – Managing Partner with The Lean Way Consulting
- 3. TheLeanWayConsulting.com Agenda What is Lean Why It Fails Tools to Help
- 4. Emphasis on producing Make to forecast ‘Push’ system Machine/Structural utilization Reduce cost and increase efficiency Leadership by executive command Specialized employees Penalize mistakes Blame people Reactive Inspect in Quality Complexity Functional Management Structure Emphasis on customer service Makes to actual customer demand ‘Pull’ system Employee utilization Reduce waste and add value Leadership by vision and broad participation Multi-functional employees Educate Identify and solve process failure Proactive Built in Quality Simplicity Manage by Value Stream 4 Traditional Lean enterprise What is Lean
- 5. TheLeanWayConsulting.com What is Lean Lean different than Six Sigma Six Sigma is about variation reduction Six Sigma is mostly project based Six Sigma is better used as a set of tools and project management method Lean is a management system Lean is an orientation Muda – Waste Mura – Uneven Flow Muri – Overburdening Lean done correctly will change a culture
- 6. TheLeanWayConsulting.com Not Getting Results 2% of companies that do Lean get the expected results from it* 17.8% say continuous improvement programs led to major increases in productivity** 82% of companies doing Lean say adopting significant culture change is the #1 challenge*** 42% say top management commitment is the #1 Challenge*** 52% want to implement Culture Changes for Continuous Improvement as Strategic priority*** *2008 Industry Week Survey **2007 IndustryWeek/Manufacturing Performance Institute Census of Manufacturers **The Lean Benchmark Aberdeen Group
- 7. TheLeanWayConsulting.com Why? •Developing a Strategy for Lean •Effectively executing the strategyStrategy •Moves too slow •A few at the top trying to convince others to adoptMomentum •“Not my job” or “Not real work” perception •Focus on compliance vs. commitment •Focus on attitudes and procedures vs actions and outcomes •Natural immune response occurs Behaviors
- 8. TheLeanWayConsulting.com Tools Cultural Analysis Project Success Scorecard Rate of Change Formula
- 9. TheLeanWayConsulting.com •True information kept secret at times •Sharing information my harm or help me •Decisions made based on “what’s best for me” •Information does not flow and is kept oneself •Feeling of sharing the information will not make a difference •Decisions based on what top management wants and everyone else follows. •Information valued only from a chosen few •Decisions made by a chosen few •Information shared openly and freely •Decisions made through sharing viewpoints Collaborative Hero Based Political Command and Control
- 10. TheLeanWayConsulting.com Examples 1. Supervisor publicly ridicules line workers, line workers don’t mention say anything during production meetings, and any feedback is dismissed by the supervisor 2. Example conversations 1. Manager: “I can trust Rob, he’ll get this done” 2. Consultant: “Rob is overwhelmed and you can give this to Carol who seems capable” 3. Manager: “I’ll ask Rob what he thinks about Carol and if she’s capable since he’s mentoring her.” 3. CEO travels for sales calls regularly and is not in the office for day to day operations. When she meets with her direct reports 1x1 she will hear about what others executives are doing wrong and what is going on behind her back. 4. Surgeons, nurses, administrators, technicians, support functions, and vendors are brought into the discussion of how we can decrease the wait time for patients waiting for a special surgery. Rank is left at the door and there is open and clear communication with trust amongst all parties.
- 11. TheLeanWayConsulting.com Scenarios That Work IDEAL SECONDARY OUTLIER Collaborative Collaborative Hero Based Collaborative Collaborative Any other Culture Hero Based Hero Based Political Collaborative C&C Collaborative Upper Culture Direct Culture
- 12. Example 1 Anvil’s ‘R’ Us Largest customer Wyle E. Coyote Wyle making suppliers go Lean Leader sends mangers to training, hire a person “who has done Lean” Opportunistic approach First three projects successful, after that projects slowed New customer – Black Smith Intl. Shift to production and less problem solving Team looses employees during the transition due to changing working conditions Performance suffers to Wyle E. , on time delivery from 98% to 87% In danger of loosing Wyle E. as a customer
- 13. TheLeanWayConsulting.com Scenarios That Work IDEAL SECONDARY OUTLIER Collaborative Collaborative Hero Based Collaborative Collaborative Any other Culture Hero Based Hero Based Political Collaborative C&C Collaborative Upper Culture Direct Culture C&C Hero Based
- 14. Example 2 General Hospital MRI unit needs help with their patient wait times (HCAPS) Seven distinct departments responsible for MRI unit Hospital trying to do Lean and has a PMO office to deploy Lean PM brought into the organization to help solve the problem PM presents there is no single silver bullet and it’s a complex system of challenges Management team doesn't know how to move forward
- 15. TheLeanWayConsulting.com Scenarios That Work IDEAL SECONDARY OUTLIER Collaborative Collaborative Hero Based Collaborative Collaborative Any other Culture Hero Based Hero Based Political Collaborative C&C Collaborative Upper Culture Direct Culture Political Hero Based
- 16. TheLeanWayConsulting.com Scorecard Do you have a sponsor who is engaged and willing to give space for the team to create a new environment? (Y/N) Can you specify a scope of an area that you would like to improve? (Y/N) Is there a performance challenge in the area? (Y/N) What is your management culture? (1= Command and Control, 4 = Hero based 8 = Political gaming, 12 = Collaborative) How are you planning to engage your employees? (1= Project leader with small team, 4= Project leader with large team, 8 = Kaizen events or other similar collaborative events, 12 = Collaborative events with daily management process to develop capacity) How is process improvement viewed in your organization? (1= A way to save money, 4= A way to add value to the customer +#1 , 8= A way to build capacity and create a learning environment + #1, 12 = Use it as a strategic advantage + #1, #4,#8) How long has the challenge been going on? (1= 1 month – 12= one year+) Is there a financial estimate to the benefit that you would gain? (0 = Unknown, 1 = 5yr+ payback, 4= 3-5yr payback,8= 1-3yr payback, 12= <1yr payback) * All Y/N must be Yes and a minimum score of 30 recommended (max 60)
- 17. TheLeanWayConsulting.com Transformation Rate of Change 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 10% 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 15% 1.5 2.25 3 3.75 4.5 5.25 6 6.75 7.5 8.25 9 9.75 10.5 11.25 12 12.75 13.5 14.25 15 20% 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25% 2.5 3.75 5 6.25 7.5 8.75 10 11.25 12.5 13.75 15 16.25 17.5 18.75 20 21.25 22.5 23.75 25 30% 3 4.5 6 7.5 9 10.5 12 13.5 15 16.5 18 19.5 21 22.5 24 25.5 27 28.5 30 35% 3.5 5.25 7 8.75 10.5 12.25 14 15.75 17.5 19.25 21 22.75 24.5 26.25 28 29.75 31.5 33.25 35 40% 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 45% 4.5 6.75 9 11.25 13.5 15.75 18 20.25 22.5 24.75 27 29.25 31.5 33.75 36 38.25 40.5 42.75 45 50% 5 7.5 10 12.5 15 17.5 20 22.5 25 27.5 30 32.5 35 37.5 40 42.5 45 47.5 50 55% 5.5 8.25 11 13.75 16.5 19.25 22 24.75 27.5 30.25 33 35.75 38.5 41.25 44 46.75 49.5 52.25 55 60% 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 65% 6.5 9.75 13 16.25 19.5 22.75 26 29.25 32.5 35.75 39 42.25 45.5 48.75 52 55.25 58.5 61.75 65 70% 7 10.5 14 17.5 21 24.5 28 31.5 35 38.5 42 45.5 49 52.5 56 59.5 63 66.5 70 75% 7.5 11.25 15 18.75 22.5 26.25 30 33.75 37.5 41.25 45 48.75 52.5 56.25 60 63.75 67.5 71.25 75 80% 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 85% 8.5 12.75 17 21.25 25.5 29.75 34 38.25 42.5 46.75 51 55.25 59.5 63.75 68 72.25 76.5 80.75 85 90% 9 13.5 18 22.5 27 31.5 36 40.5 45 49.5 54 58.5 63 67.5 72 76.5 81 85.5 90 95% 9.5 14.25 19 23.75 28.5 33.25 38 42.75 47.5 52.25 57 61.75 66.5 71.25 76 80.75 85.5 90.25 95 100% 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 % of Participants % T i m e
- 18. TheLeanWayConsulting.com Summary Cultural Analysis Tool 1. What is the direct and upper cultures today 2. Where do you need to take them 3. Find ways to enable those changes Scorecard 30/60 means you can feel confident in the area you are trying to change Rate of Change Try to keep your projects in the green zone if you are doing a Lean transformation
- 19. TheLeanWayConsulting.com Questions? Contact Information Ankit Patel Managing Director The Lean Way Consulting 404.855.1634 www.TheLeanWayConsutling.com ankit@theleanwayconsulting.com Next Webinar – May 14 , 2014 @ 2 pm ET. “How to get navigate and overcome the immune response to change”