digital marketing , introduction of digital marketing
Leading a Lean Implementation
1. Leading a Lean Implementation
Presented by Mark Ruby
Senior Vice President, Reliability Consulting Group,
Life Cycle Engineering
2. Presentation Agenda
Define the competitive environment
Integrate a robust change management
process
Implement strategy deployment
Create an implementation strategy and
framework
Organize for success
How to measure success
Critical success factors
7. Benefits From Lean Implementation
Activities
Work in process inventory 12 days
Productivity 30%
OEE 15%
Floor space 40%
Lead time 30%
Green metrics emerging
Lean – reduction of lead time through the elimination of waste
10. Most Change Initiatives Fail
50% to 70 % of change efforts fail
(Ken Blanchard and Associates)
67% of TQM efforts failed
(Arthur D. Little)
70% of reengineering initiatives failed
(Power Projects)
Only a third of true step changes
succeed (McKinsey Global Survey Results 2008)
11. Most Change Initiatives Fail!
The number one
obstacle to success
for major change
projects is employee
resistance and
the ineffective
management of the
people side of change.
(c) Prosci 2010. www.change-management.com. Used with permission
17. Strategy Deployment
Established frameworks for strategy deployment
1. Hoshin Kanri – Element of TQM. Foundational
to the Toyota Production System
2. Balanced Scorecard – Originated Harvard
Business School by Dr. Kaplan and pioneered by
G.E. for performance reporting in the 1950’s
Strategy Deployment – a process that aligns business
activities to the vision and strategy of the organization
18. Define a Strategy Deployment Process
Strategy Deployment ensures that the voice of the customer
is always at the forefront in approach and deployment.
Strategy Deployment provides both vertical and horizontal
focus and alignment on key goals.
Strategy Deployment goals are implemented systematically.
Customer
Expectations
Corporate
Strategic
Goals
Quality
Customer
Satisfaction
Plant
Goals
Reduce
Failure Rates
Dept/Product
Goals
Reduce Int.
Defects
Workshop
Goals
Improvement
Projects
Best in Class
Quality
21. PDCA – The Foundation of Strategy
Deployment
Plan – If we take
these actions, we
will achieve the
required results.
The hypothesis.
Do – Deploying
objectives level
by level.
Implementation.
Check – Observing
and assessing
results against the
target
Act – Analyze results
from checking phase.
If at target,
standardize. If not,
adjusted assumptions
to reflect facts
(problem solving)
Plan-Do-Check-Act Cycle
Expression of The Scientific Method
23. Create an Implementation Strategy
Philosophy
(long-term thinking)
Process
(eliminate waste)
People & Partners
(respect, challenge, and grow them)
Problem
Solving
(continuous
improvement and
learning)
The business
principles of the
Toyota Way
24. Key Attributes of a Lean Manufacturing Plant
• Commitment to quality
• Satisfied customers both internal and external
• Safety, environment, cleanliness and order
• Visual management system
• Scheduling system based upon a single pacing process
• A focused plant layout that facilitates efficient material
flow
• Low levels of inventory and work in process
• Engaged associates, empowered and motivated
• A robust TPM program – well maintained equipment and
tools
• Integrated supply chain
25. Understand What is Possible
Consider what
needs to be done
Think
Develop themes of
what to do
Theme finding/setting
T
Take responsive
countermeasures
Act
Improvement &
standardization
D
S
T
Picture ones’
ideal image
Draw
Want to do this
Want to be like this
See
Recognize reality
Grasp and analyze
current situation
Draw, See and Think – PDCA Cycle
Action Plan Implementation
Make action
plan
Put plans into
action
Check by actual
results
Plan Do Check
Plans &
standards
Training &
implementation
Analysis &
learning
In the Beginning, There is a Dream
PLAN:
Plan the
Change
DO:
Implement
the Change
CHECK:
Monitor and
Review the
Change
ACT:
Revise and
Standardize
the Changes
29. Communicate an Implementation
Framework
Identify
Value
Map the
value
stream
Create
Flow
Establish
Pull
Seek
Perfection
Create Your Company’s Production System Vision
• Incorporate vision &
guiding principles
• Provides excellent
method for
communication
• Provides an anchor
point for True North
• Provides a differentiator
in the marketplace
Adopted from Lean Enterprise Institute, Inc. 2009
30. Building Blocks of a Production System
Management
Responsibility
Policy Deployment Employee Involvement
Demand Management Information Flow Warehouse Mgmt
Inventory Management Material Handling Layout & Production Flow
Productivity & Flexibility Equipment Productivity Process Stability
Quality Standardized Work 5S
Visual Management Supply Chain
Management
Problem Solving
Single Piece Flow Supplier Relations Resources at POU
Aligned Authority Professional Workforce Culture of CIP
Data User Customer Satisfaction
Safety Scheduling System TPM
Teamwork & Motivation Efficient Use of Space Mgmt Complexity,
Variability
32. Robert Bosch 8 Principles of Bosch
Production System
Cost Delivery
Quality
Associate Involvement and Empowerment
Waste Elimination and Continuous Improvement
Associate Satisfaction
Perfect Quality
Flexibility
Process Orientation
Pull System
Transparent Process
Standardization
Customer Satisfaction and Business Success
Cost Delivery
Quality
Cost Delivery
Quality
Associate Involvement and Empowerment
Waste Elimination and Continuous Improvement
Associate Satisfaction
Perfect Quality
Flexibility
Process Orientation
Pull System
Transparent Process
Standardization
Customer Satisfaction and Business Success
39. Value Stream View
Supermarket
U U
Supermarket
Daily Pulls
Hourly Pulls
Sub Ass.
Final Ass.
Production Cells
Plant Plant
Production
Control
Forecast
CustomerSupplier
Hourly Pulls
Short Lead-times
XOXO
Forecast
Purified
Daily Orders
XOXO
Daily Orders
Supplier Loop
Shop Floor Loop
Customer Loop
43. How to Measure Success
1. Financial results
2. Scoring and assessments
3. Stakeholder perceptions
44. Critical Success Factors
1. Leadership unity
2. “True North” orientation
3. 70% solution
4. Organize around value streams
5. Use kaizen workshops to teach and make rapid changes
6. Make it mandatory
7. Create a sense of urgency
8. Pursue opportunities with large financial impacts
9. Implement a scoring mechanism
10. Develop your own way within your own culture
11. Hire or develop lean leaders with succession planning
12. Use experts for teaching and getting quick results
13. Educate and benchmark
45.
46. Thank You!
Mark Ruby, Sr. Vice President
Life Cycle Engineering
Reliability Consulting Group
843.744.7110
mruby@LCE.com
www.LCE.com
LCE’s Reliability Consulting Group (RCG) provides consulting,
services and education. Our team specializes in providing
client-specific solutions that help organizations improve their
operating performance.
Editor's Notes
The term “Globalization” has really only become commonplace in the last two decades. It refers to the extended cooperation across national boundaries (global relationships of culture, people, and economic activity). The term may be relatively new, but breaking down barriers of nations, be it physical or metaphysical, is not a foreign concept. Consider the “walls” that have been broken down historically and at a moderate pace : physical walls (Berlin Wall), political walls, trade walls, transportation walls, communication walls (internet proliferation). This leads us into an era of exciting development:PositivesRevolutionary technologiesExtended life expectanciesCollective wisdom, increased quality of lifeMedical miraclesAs we experience globalization we’re going to see developing countries growing, which means, they will invest more in education, healthcare, and technology. Growth is good as it creates demand and increased demand = more economic stability…IF the demand is met. This is what I want to talk to you about today. In order to react to the effects of globalization, we must first embrace the concept and then create a framework and strategy to stay competitive. The organization you work for today will require restructuring that will enable it be competitive in global marketplace. Globalization means nations around the world are going to have to think of complex systems in a new way but it also means more minds are collaborating which leads us to revolutionary solutions, ideas, and concepts. While we benefit from the positives of globalization, we must address the challenges that we face as well. Challenges of GlobalizationComplexity – fragility, systemic risks (climate, pandemics, global warming)Inequality – underdeveloped countries that are not participating or reaping the benefits of globalization
Strategy Deployment – A process that aligns business activities to the vision and strategy of the organization. Established frameworks for strategy deploymentHoshinKanri– Element of TQM. Foundational to the Toyota Production SystemBalanced Scorecard – Originated Harvard Business School by Dr. Kaplan and pioneered by G.E. for performance reporting in the 1950’s