Powerpoint created for Holland Management Consultant

The Dutch
and Duke Show
COPYRIGHT 2013 HOLLAND MANAGEMENT CONSULTING
1

DUTCH TO COVER
“IMPLEMENTATION MECHANICS”
DUKE TO COVER
“THE PEOPLE SIDE OF CHANGE”
COPYRIGHT 2013 HOLLAND MANAGEMENT CONSULTING 2

IMPLEMENTING
LEAN
FOR MANAGERS AND
CHANGE PROFESSIONALS
3

LEAN POTENTIAL MEANS
NOTHING WITHOUT
IMPLEMENTATION
Lean has great potential. But, that potential
means nothing unless Lean solutions are
implemented and so that the organization can
achieve sustained Business Value.
A Lean solution is implemented when Leaned
processes are in day-to-day use across the
target organization … for at least one reporting
period (quarter or year)
4

LEAN POTENTIAL MEANS NOTHING
WITHOUT IMPLEMENTATION
Questions from the Previous Audience
1. How do you engage the C-suite to get
involved in and actively support/sustain your
Lean implementation?
2. How do you incentivize and reward those
who are genuinely engaged vs. the fence-
sitters or anchor-draggers?
3. How do you initiate and sustaining a culture
change towards Continuous Improvement
and Innovation (CII).
5

The Undeniable Truth
Organizations Must Do Two Things at Once!
Run-the-Business for a profit today … and
Change-the-Business for profit tomorrow!
6

The General Problem!
A 30% Change-the-Business success rate
across many industries!
Obviously, we do not know the physics or
engineering of change!
7

The Problem …
with Lean Implementations
A 30% success rate for Lean across many
industries!
8

Executive
Management
Senior
Management
Supervisors
Workers
Middle
Management
An organization has four
levels … and all are
required for successful
change … and for
implementation of Lean!
The Four Organizational Levels
9

Supervisors
Workers
Executive
Management
Senior
Management
Supervisors
Workers
Construction of
Capabilities
Preparation &
Performance
Middle
Management
RTB ; Validation
& Authorization
Levels
Directions
Balance
RTB & CTB
Required Levels of Change Management
RolesRoles
10

Supervisors
Workers
Executive
Management
Senior
Management
Supervisors
Workers
Middle
Management
Directions
Balance
RTB & CTB
Required Levels of Change Management
Roles
Construction of
Capabilities
Preparation &
Performance
RTB ; Validation
& Authorization
11

Executives must do two things at once
• Run the Business for Profit Today … and, at
the same time …
• Change the Business for Profit Tomorrow
12

The Executive Change Model
Annual
Goals
Vision
RTB AGENDA
CTB AGENDA
13

The Executive Change Model
Use opportunities
to power Lean
initiatives!
14

Supervisors
Workers
Executive
Management
Senior
Management
Supervisors
Workers
Middle
Management
The Role of Senior Management
Roles
Construction
of Capabilities
Preparation &
Performance
RTB ; Validation
& Authorization
Directions
Balance
RTB & CTB
15

What is a Capability?
Roles
An organizational capacity to perform in a way
needed to enable (i.e., carry out) the Vision
16

Required Steps for Implementing Lean
1. Communicate the vision of the organization
using the Lean solution on a day-to-day basis
2. Identify and modify current work processes to
fit the vision
3. Identify and acquire or modify plant /
equipment / tools / systems that will enable
the work processes
4. Put job descriptions, goals, and incentives in
place; train employees to competence using
the Lean Solution
5. Project manage and schedule the above
actions
17

Supervisors
Workers
Roles
Model for Implementing Lean
Improved
Process
Performance
A Lean
Solution
Communicate
Vision
Alter Plant &
Equipment
Alter Performance
Management System
Alter
Processes
Use Disciplined Project Management
18

Required Steps for Building a Capability
1. We just covered the FIVE steps for
building a capability …
2. Can you name them?
3. Hard to remember, right?
4. There is an easy way to remember …
5. Cheat!
19

Theater Metaphor
An organization is like a continuous
one-act play… and a play needs:
1. A Script
2. Roles to match script
3. Costumes and set to fit script
4. Actors under contract for roles … and
rehearsed
5. Transition plan for moving to the next play
20

The Five Steps of Lean Implementation
@ Lean Enterprise Institute
Step 1: Specify Value
Define value from the perspective of the final customer. Express value in terms of a
specific product, which meets the customer's needs at a specific price and at a
specific time.
Step 2: Map
Identify the value stream, the set of all specific actions required to bring a specific
product through the three critical management tasks of any business: the problem-
solving task, the information management task, and the physical transformation
task. Create a map of the Current State and the Future State of the value stream.
Identify and categorize waste in the Current State, and eliminate it!
Step 3: Flow
Make the remaining steps in the value stream flow. Eliminate functional barriers and
develop a product-focussed organization that dramatically improves lead-
time.
Step 4: Pull
Let the customer pull products as needed, eliminating the need for a sales forecast.
Step 5: Perfection
There is no end to the process of reducing effort, time, space, cost, and mistakes.
Return to the first step and begin the next lean transformation, offering a product
which is ever more nearly what the customer wants.
21

Lean manufacturing implementation:
A 20-step road map
Here are 20 steps that comprise a lean
manufacturing road map:
1. Form team (mix of lean manufacturing and relevant business experience
2. Develop communication and feedback channel for everyone
3. Meet with everyone and explain the initiative
4. Begin to train all employees (lean overview, eight wastes, standard operations, kaizen, RCPS, PDCA)
5. Facility analysis – Determine the gap between current state and a state of “lean”
6. 5-S - It is the foundation of lean. Workplace organization is critical for any lean initiative
7. TPM – Begin Total Productive Maintenance early (used throughout lean)
8. Value Stream Mapping – Determine the waste across the entire system
9. 7 (or 8) waste identification – Use with value stream mapping to identify system waste
10. Process mapping – A more detailed map of each process
11. Takt time – Determine need to produce on all processes, equipment
12. Overall equipment effectiveness and six losses – Determine the losses on all processes and
equipment
13. Line balance – Use, if necessary, with takt time and OEE
14. SMED – Push setup times down to reduce cycle time, batch quantity and lower costs
15. Pull/one-piece flow/Continuous Flow Analysis – Utilize kanban and supermarkets
16. Analyze quality at the source application – Poor quality stopped at the source
17. Implement error-proofing ideas
18. Cellular manufacturing/layout and flow improvement – Analyze facility and each process
19. Develop standardized operations – Concurrently with SMED, line balance, flow, layouts
20. Kaizen – Continue improving operations, giving priority to bottlenecks within the system Carl
Wright, RELIABLEPLANT
22

Six Easy Steps To Implement Lean
In Your Workplace
There is a lot of information about Lean/Continuous Improvement (just Google it!), but there
are four main goals/objectives of Lean/Continuous Improvement. These include improving
quality, eliminating waste, reducing lead time/cycle time, and reducing total costs. If
you want to get the ball rolling on Lean/Continuous Improvement, here are a few steps you
can take:
1. Select a cross-functional, dynamic group of employees and make sure to get all stake-
holders involved;
2. Define and analyze the problem (understand customer expectations);
3. Gather the facts. Review information to get a better understanding of what the current
state actually is. One of the biggest mistakes is presuming you know what is going
on, or going off perception.
4. Start problem solving! Use brainstorming sessions to develop solutions.
5. Define action items and measurements/metrics to show progress and deliver results.
6. Follow up, follow up, and follow up some more!
http://www.factsfiguressolutions.com/post/6-easy-steps-to-implement-lean-into-your-
workplace/
23

10 Steps To Improve Performance
With Lean
The Secret: Implementing Lean Requires an
Organizational Change
DOING
BUSINESS
WITHOUT
LEAN
ORGANIZATIONAL CHANGE
DEVELOP THE LEAN
SOLUTION
1. COMMUNICATE VISION
2. ALTER PROCESSES /
PROCEDURES
3. ALTER FACILITIES /
TECHNOLOGY
4. ALTER PERFORMANCE
SYSTEMS
5. PROJECT MANAGE TO
TARGET PERFORMANCE
1. STUDY AND ANALYZE
PERFORMANCE
2. IDENTIFY TARGET
PROCESS
3. USE LEAN TO RE-DESIGN
PROCESS
4. TEST / PILOT THE LEAN
SOLUTION
5. APPROVE LEAN SOLUTION
ORGANIZATIONAL CHANGE
THE STRAIGHT AND NARROW ROAD TO …
BUSINESS VALUE!
24

The Role Of Senior Management
How To Change The Play
1. Select and communicate the script for the new play
• Communicate the vision of the desired Capability
as well as the Case for Change
2. Identify roles to match script
• Identify and modify work processes to fit vision
3. Construct/modify costumes and set to fit script
• Identify and implement plant / equipment / tools /
systems
4. Contract and rehearse actors to perfection!
• Put job descriptions, goals and incentives in
place; train to competence
5. Manage the transition to the new plan
• Project manage and schedule the above actions
25

Supervisors
Workers
Roles
Model for Changing the Play
New Play using
The Lean
Solution
Old Play
Without the
Lean Solution
Script
Set &
Costumes
Contracts & Rehearsals
Roles
Transition Management
Easy, easy to remember!
Easy, easy to train organization members!
26

Question?
What is the difference between the two??
Chefs know the answer!
27

Cooking!
What is the difference between
• Lo Mein sauce
• Chinese New Year’s Cake?
The answer is:
• Lo Mein sauce is a MIXTURE!
• New Years cake is a FORMULA!
Remove a key ingredient
• Lo Mein sauce is still Lo Mein sauce!
• Cake is no longer a cake!
28

Ingredients
• 2 quarts water
• 1 tablespoon chicken
bouillon granules
• 1 (16 ounce) package thin
spaghetti
• 1 tablespoon reduced-
sodium soy sauce
• 1 tablespoon reduced
sodium teriyaki sauce
• 1 1/2 teaspoons Chinese
five-spice powder
• 1/8 teaspoon white pepper
• 1/4 cup canola oil
• 1/2 cup thinly sliced onion
• 1 cup fresh snow peas
• 1/2 cup chopped green
onions
New Year’s Cake is a Formula
29

Ingredients
• 4-1/2 cups sweet rice
flour (Available in Asian
specialty markets)
• 1-1/2 cups water
• 2-1/2 cups dark brown
sugar, packed
• 2 beaten eggs
• 1/2 cup vegetable oil
• 3 dried red dates
(Available in Asian
specialty markets)
New Year’s Cake is a Formula
30

Question?
FORMULA!
Roles
What is a Lean Implementation …
Mixture or Formula?
31

Supervisors
Workers
Executive
Management
Senior
Management
Supervisors
Workers
Middle
Management
The Role of Middle Management
Roles
Construction of
Capabilities
Preparation &
Performance
RTB;
Validation &
Authorization
Directions
Balance
RTB & CTB
32

Middle Management is a Separate and Critical
“Change Population!”
Roles
33

Middle Management’s Unique Roles
1. Run the Business for Profit Today … while
Senior Management changes the business for
Profit Tomorrow
2. Validate … and then Authorize the
organizational Change
MIDDLE
MANAGEMENT
SENIOR
MANAGEMENT
34

The Role of Middle Management
1. Mid managers who bring change to a halt …
are not obstacles!
2. They are just doing their job …
of preventing ANY INTERRUPTION to
RUN THE BUSINESS!
35

Middle Management
Implementation Model
AuthorizeAffirmAnalyzeAssessAssess
Lean
plan
Instructions
to
Supervisors
36

Be thankful for Middle Managers!
1. Listen to your Middle Managers! Respect and
honor middle managers!
2. Capture their every issue … and resolve each
one!
3. Support them as they help the supervisors
prepare for change
4. Thank mid managers for running the business &
for their change help!
Roles
37

Caution!
If you treat Middle Managers
as obstacles to change…
Roles
… THEY
WILL BECOME
OBSTACLES
to CHANGE!
38

Supervisors
Workers
Executive
Management
Senior
Management
Supervisors
Workers
Middle
Management
The Role of Supervisors
Roles
Capability
Preparation
Performance
Assurance
Directions
Balance
39

Supervisors Prepare Workers
Supervisors LEAD workers to be Ready Willing &
Able … TO USE THE LEAN SOLUTION!
Roles
40

Roles
Worker Level
Change happens when employees are
READY, WILLING AND ABLE … to do their
work with the lean solution
Actions – Response
Worker Ready Willing Able
41

Roles
Supervisor Level
Supervisors LEAD workers
Supervisors EXPLAIN, SUSTAIN & TRAIN
Actions – Response
Supervisor
Actions
Explain
Lean
Solution
Sustain
(Reward) the
Lean
Solution
Train the
Lean
Solution*
Worker
Response Ready Willing Able
NOTE: THIS DOES NOT SAY “LEAN TRAINING!”
42

Questions from the Previous Audience
1. How do you engage the C-suite to get involved
in and actively support/sustain your Lean
implementation?
• The Bad News … you can’t!
• The Good News … you CAN get involved in THEIR
priorities and apply Lean
2. How do you incentivize and reward those who
are genuinely engaged vs. the fence-sitters or
anchor-draggers?
• The Bad News … You cannot
• The Good News … But top management CAN … by
rewarding engagement … and withholding rewards from
anchor-draggers
3. How do you initiate and sustaining a culture
change towards Continuous Improvement and
Innovation (CII).
• Define it, explain in, support it, measure it, compensate it
• But please do not call it culture!
43

Simple Ideas
I hope you leave this session with
FIVE KEY IDEAS:
1. Run the Business / Change the Business
2. Appreciate all four organizational Levels … and how
to reach them with/about Lean
3. Give the customer exactly what she wants … then
“Lean in!”
4. Develop a Lean Solution … then change the
organization to put it to work
5. Put a Lean Solution to work by Changing the Play ...
using the formula:
• Script
• Roles
• Set
• Contract
44

THANK YOU!
DUTCH HOLLAND
45

PEOPLE SIDE
OF CHANGE
Duke Rohe, BSIE
Quality Improvement Education Consultant
M.D. Anderson Cancer Center
46

What’s More Important?
The leader with a vision?
or
The employee with the capacity to carry it out?
47

Systems Thinking
Everything is connected to everything else
Leggo Up
48

Clarity
• People are more apt to change if:
• they can see what it is
• and where they its going.
• Need 3 fearless volunteers please
49

Why do people resist change?
Don’t know
• how it will impact them
• why or what it is
• how long or hard it is
• how to be successful
50

One can not pass on more than
what he has
• Bitter together
• What to expect
• How long
• Promise of a benefit
51

10 Ways to Simplify handout
• What’s dumb about this process?
• Think smooth, flow, complete
• Be a fool for a minute
• It’s Us vs. the Problem!
52

Organizational Waste handout
• ineffective meetings
• being under resourced, under managed
• incentivizing ‘A’ and expecting ‘B’
53

Personal Waste
• not learning from failure
• worry about the future or reliving the past
54

Process Design Questions
• Are choices intuitive to all?
• Is feedback confusing?
• Is the procedure orientee-proof?
55

Quick ‘Change’ over
• Video diaper change in 10 seconds flat
56

It’s better to change . . .
Than be changed
57

THANK YOU!
DUTCH & DUKE
58

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