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© 2015 The Karen Martin Group, Inc. 1
Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools
• Value stream analysis & mapping
• Metrics-based process mapping
• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA
• Waste Countermeasures
• Standard work
• Quality at the Source / Error proofing
• 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
Kanban
• Cells / co-location
• Level loading
• Work balancing
• Batch size reduction
• Setup & changeover reduction
• Work segmentation
• Autonomation
• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)
• Value stream management
• Key performance indicators (three levels,
including customer & operational metrics)
• Disciplined process management via clear
owners & KPIs
• Daily kaizen
• PDSA Problem Solving (& A3 management)
• Performance dialogues / huddles / standups
• Go & see (gemba) management
• Humble inquiry
• Continuously seeking voice of the customer
• Purposeful meetings & reporting
• Lean accounting
• Consensus management
• Humility
• Respect
• Curiosity
• Transparency
• Relentless pursuit for
perfection
• Customer value
• Flow / waste elimination
• Just in time
• Visual management
• Work standardization
Lean
Management
© 2016 The Karen Martin Group, Inc. 2
Lean Leadership Webinar – Part 1
Core Values / Principles / Philosophy
• Analytical tools
• Value stream mapping
• Metrics-based process mapping
• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA
• Waste Countermeasures
• Standard work
• Quality at the Source / Error proofing
• 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
Kanban
• Cells / co-location
• Level loading
• Work balancing
• Batch size reduction
• Setup & changeover reduction
• Work segmentation
• Autonomation
• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)
• Value stream management
• Key performance indicators (three levels,
including customer & operational metrics)
• Disciplined process management via clear
owners & KPIs
• Daily kaizen
• PDSA Problem Solving (& A3 management)
• Performance dialogues / huddles / standups
• Go & see (gemba) management
• Humble inquiry
• Continuously seeking voice of the customer
• Purposeful meetings & reporting
• Lean accounting
• Consensus management
• Humility
• Respect
• Curiosity
• Transparency
• Relentless pursuit for
perfection
• Customer value
• Flow / waste elimination
• Just in time
• Visual management
• Work standardization
Lean
Management
© 2016 The Karen Martin Group, Inc. 3
Lean Leadership Webinar – Part 2
Core Values / Principles / Philosophy
• Analytical tools
• Value stream mapping
• Metrics-based process mapping
• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA
• Waste Countermeasures
• Standard work
• Quality at the Source / Error proofing
• 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
Kanban
• Cells / co-location
• Level loading
• Work balancing
• Batch size reduction
• Setup & changeover reduction
• Work segmentation
• Autonomation
• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)
• Value stream management
• Key performance indicators (three levels,
including customer & operational metrics)
• Disciplined process management via clear
owners & KPIs
• Daily kaizen
• PDSA Problem Solving (& A3 management)
• Performance dialogues / huddles / standups
• Go & see (gemba) management
• Humble inquiry
• Continuously seeking voice of the customer
• Purposeful meetings & reporting
• Lean accounting
• Consensus management
• Humility
• Respect
• Curiosity
• Transparency
• Relentless pursuit for
perfection
• Customer value
• Flow / waste elimination
• Just in time
• Visual management
• Work standardization
Lean
Management
© 2016 The Karen Martin Group, Inc. 4
Lean Leadership Webinar – Part 3
Thursday, October 27 –
https://attendee.gotowebinar.com/register/2039217314521750529
Core Values / Principles / Philosophy
• Analytical tools
• Value stream mapping
• Metrics-based process mapping
• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA
• Waste Countermeasures
• Standard work
• Quality at the Source / Error proofing
• 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
Kanban
• Cells / co-location
• Level loading
• Work balancing
• Batch size reduction
• Setup & changeover reduction
• Work segmentation
• Autonomation
• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)
• Value stream management
• Key performance indicators (three levels,
including customer & operational metrics)
• Disciplined process management via clear
owners & KPIs
• Daily kaizen
• PDSA Problem Solving (& A3 management)
• Performance dialogues / huddles / standups
• Go & see (gemba) management
• Humble inquiry
• Continuously seeking voice of the customer
• Purposeful meetings & reporting
• Lean accounting
• Consensus management
• Humility
• Respect
• Curiosity
• Transparency
• Relentless pursuit for
perfection
• Customer value
• Flow / waste elimination
• Just in time
• Visual management
• Work standardization
Lean
Management
© 2016 The Karen Martin Group, Inc. 5
© 2016 The Karen Martin Group, Inc. 6
There are many
problems to solve.
Many processes to
improve.
Many opportunities
to explore.
© 2015 The Karen Martin Group, Inc. 7
Distraction
Kills
© 2015 The Karen Martin Group, Inc. 9
© 2016 The Karen Martin Group, Inc. 10
There is no such thing
as multitasking.*
* For cognitive tasks.
Focus Law #1:
STOP DOING
Focus Law #2:
DO FEWER THINGS
AT ONCE
© 2016 The Karen Martin Group, Inc. 11
The Power of Focus:
Organization A – Projects Completed
12
20
12
3
12
Pre-Focus Post-Focus
Projects
Started
Projects
Completed
Organization B:
Completed Projects Per Year
13
24
73
Pre-Focus Post-Focus
• No additional
resources
• Higher quality
products launched
A Key to Apple’s Success?
14
“…saying no to 1,000 things to
make sure we don’t get on the wrong
track or try to do too much.
…it’s only by saying no (or not now)
that you can concentrate on the
things that are really important.”
— Steve Jobs
Task #1: Focus Reduces Chaos.
Task #2: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Round 1 – Alternate between tasks : letter, number, letter, number, etc.
Sentence:
Numbers:
The Cost of Switch Tasking
Round 2 – No switch tasking. Write the full sentence and then the numbers 1-17.
Sentence:
Numbers:
Annual Hoshin Planning
(Strategy Deployment)
• Builds consensus around TRUE NORTH
• Creates organizational focus on solving what matters most
17
Strategy Deployment Key Feature: Catchball
18
Executive
Team
What?
Who?
When?
Senior
Mgmt
What?
Who?
When?
Middle
Mgmt
What?
Who?
When?
Frontline
What?
Who?
When?
Year 1
Year
2
Year
3
Strategy Deployment Plan Development
Pre-work
19
Gather lists of:
• All active projects and initiatives
• All stalled projects and initiatives
• All planned projects and initiatives
• All desired projects and initiatives
• All “stealth/rogue” projects and initiatives
20
Must do
Eliminate
Maybe
Delay
1. List what you could do on
3x6” post-its (active or
planned initiatives,
projects & improvement
activities). Gain consensus.
2. Categorize them (place
post-it on appropriate
page. Gain consensus.
3. Decide what you will do.
(Move “maybe’s” onto one
of the other three pages.)
Gain consensus.
Label Four Flip Chart Pages & Hang on Wall
Step 4
Create Action
Plan for What
You Will Do
21
Must do
Eliminate
Maybe
Delay
The Overly Complicated X-Matrix
22
23
1. Increase sales 5%.
3. Achieve 10% profit.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario
COM
Direct
CDs /
AMs
PD
Rec
PD
Mgmt
BMD SWS
2
3,500 units sold by 12/31/2013 through all channels
(approx. $700K)
X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3
11 Develop & deliver training to top 50 Dealers X X X X X X Bob Rex/Tim 3 3 3
21 Revised course materials by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2
5
Education: 1 school district spec'd/underperforming
COM distributor (25) by 12/31 valued at min $35K each
X X X X X X X X X X X X Howard Michael S 1 3 2 3 3
8
10 new dealers on board (net) ($500K per dealer this
year)
X X X X X X X X X X X X Howard Mike B 2 3
9
5 new distributors bringing $200K annual rev (& 5
terminated)
X X X X X X X X X X X X Howard Howard 1 1 1 2 3
17 10 projects spec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3
29 20 by year-end X X X X X X X X X X X X Howard Mark H 2 3 3 3
32 TBD X X X Howard Howard
33 TBD X X X X X X X X X Howard Howard
10
Useful reporting and metrics are established and in
place
X X Jim Randall 3 1 1 1 1 1 1
30 TBD X X X X X Jim Josh 3
31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1
25 TBD Jim Shannon 3 3 1 1 1 1 1
26 System 7.0's in place X X X Jim Randall 3 2 1 2 1
15
100% accurate payroll; 100% management satisfaction
at April mgmt. meeting
X X X Josh Phyllis 1 3
20
Internet task list is simplified and streamlined for
PDs then plan is rolled out to PDs
X X X X Michael M Michael M 2 3 2 3
22
Design Calculator is updated successfully and rolled
out
X X X Neall Matt D 3 1 1 3 2 2 3
24 Competitive Analysis complete and distributed for use X X X Neall Dana 2 3 3 3 3 3 3
1 Design changed to solve delam issue long-term X X X X X Susan David R 3 2 3
12
30 parts sourced in U.S.; completed plan for managing
China-sourced parts
X X X X X X Susan Shannon 3 3 2 2
13
Warehouse laid out; kanban revised; Syspro
implemented
X X X Susan Shannon 3
14 Lay out complete; equipment installed X X X Susan David R 3 3
X = Planned
2013 Priorities
2013 Goals & Objectives
4. Improve morale (metric TBD).
2. Achieve 50% gross margin. Created: 01-14-13
Revised:
Level of Effort/Involvement Required
Priority Goal or Measurable Objective Exec Owner
Plan review dates:
Tactical
Owner
● = Actual
< Company Name >
Contentremovedforconfidentiality
Modified Strategy Deployment Annual Plan
POST: Plan Management
24
• Weekly status meetings to start, then 2x a
month, then monthly (required attendance).
• Focus: how to turn red items into green
• Expectation: Full team helps remove obstacles
• Tone: supportive but tough
• Visibility matters: post progress physically!
• Modify plan for changing conditions, but avoid
Organizational ADD
© 2015 The Karen Martin Group, Inc. 25
© 2015 The Karen Martin Group, Inc. 26
Problems are the irritants
that produce pearls.
27
28
Scientific Problem Solving
29
30
Detailed Steps
1. Define and break down the problem.
2. Grasp the current condition.
3. Set a target condition.
4. Conduct root cause & gap analysis.
5. Identify potential countermeasures.
6. Develop & test countermeasure(s)
7. Refine and finalize countermeasure(s).
8. Implement countermeasure(s).
Study
Evaluate
Results
9. Measure process performance.
10. Refine, standardize, & stabilize the process.
11. Monitor process performance.
12. Reflect & share learning.
Adjust
Do
Clarifying the PDSA Cycle
Plan
Develop
Hypothesis
Conduct
Experiment
Refine
Standardize
Stabilize
Phase
Nailing the Plan stage
of PDSA is the most
important element in
the entire cycle.
Truth
Truth
Truth
Truth
Truth
Truth
Truth
CLARITY
31
Investigation Takes Many Forms
32
P/U
AFrame
Power Pole
o st g Up Spag ett ag a
e o e a e t p o e e ts
st ated d sta ce a ed du g g Up 3095 t
ag a o o s t e oo a d a d does ot c ude o g t e a e
g Up e 90 utes
Water
33
Detailed Steps
1. Define and break down the problem.
2. Grasp the current condition.
3. Set a target condition.
4. Conduct root cause & gap analysis.
5. Identify potential countermeasures.
6. Develop & test countermeasure(s)
7. Refine and finalize countermeasure(s).
8. Implement countermeasure(s).
Study
Evaluate
Results
9. Measure process performance.
10. Refine, standardize, & stabilize the process.
11. Monitor process performance.
12. Reflect & share learning.
Adjust
Do
Clarifying the PDSA Cycle
Plan
Develop
Hypothesis
Conduct
Experiment
Refine
Standardize
Stabilize
Phase
Iterative Problem
Definition &
Scoping
Example: “Data integrity problem”
Says who? What are they saying
SPECIFICALLY? Go interview!
Are we talking about inaccurate data, missing
data, incomplete data, data in wrong
location, similar but slightly different data
stored in different locations, incorrect
conclusions about accurate data, or…?
Example: “No control of refrigerant
inventory (controlled substance)”
Is this true in all locations? All types of
refrigerant?
Is physical inventory quantity higher, lower,
or both when compared to computer
numbers?
© 2015 The 34
1. Define and Breakdown the Problem
© 2015 The 35
Problem Definition:
Clarify, Qualify, Justify, Quantify
1. Is the problem clear and focused
or vague and diffuse?
2. Why is this a problem?
3. How do we know it’s a problem?
What evidence or proof exists?
4. How big is the problem?
5. Which aspect of the problem are
we going to address?
36
2. Grasp the Current Condition
• Understand the
details behind the
problem.
• Options
– OBSERVATION
– Interview
– Data analysis
– Video analysis
– Document review
– Value stream or
process mapping,
– Etc.
Describe the future. How does “better” look and
feel?
From/to: “If not this, then what?”
Must be measurable
Surveys enable you to convert anecdotal feedback into
quantifiable data
Should stretch the organization/team/problem
owner (improvement is largely a mind game)
Level of aggressiveness depends on :
Urgency
Timeframe
Available resources
Consensus around the problem
Degree of focus
© 2015 The 37
3. Set a Target Condition
What’s stopping you from
performing at the target
condition NOW?
Consider all obstacles:
Physical / Environmental
Mechanical
Process-related
Psychological / cultural
Resource-related
© 2015 The Karen Martin Group, Inc.
38
4. Conduct Root Cause & Gap Analysis
CauseCause--andand--Effect DiagramEffect Diagram
Machine Measurement Environment
People Material / Info Method
Budgets
Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule
Machine Measurement Environment
People Material / Info Method
Budgets
Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule
5 Why’s
Why?
Why?
Why?
Why?
Why?
• Standard work
• Quality at the Source
/ Error proofing
• 5S / Visuals
• Pull systems
•One-piece flow
•FIFO lanes
•Kanban
• Cells / co-location
© 2015 The Karen Martin Group, Inc. 39
5. Identify Potential Countermeasures
• Level loading
• Work/line balancing
• Batch size reduction
• Setup reduction /
changeover
• Work segmentation
• Autonomation
• Cross-training / multi-
functional workers
40
41
A3 Reports are
used as:
Coaching aid
Consensus-building
tool
Communication
tool
Organizational
learning device
Problem Countermeasures / Implementation Plan
- Ÿ32% of customers dissatisfied with office space cleanlines- 80% of emergency service requests are to wrong contact - Standard work for restroom cleaning
- Standard work checklist for non-routine items
- Service levels vary by building - Standard process for measuring & mixing chemicals
- 10% of daily staffing available is allocated to travel/check in time - Restroom cleaning log
- Standard facility service plan (Plan A & Plan B)
Current Condition - Modify & standardize process for unplanned absences
- 31   Facility areas require custodial services - Modify starting points and schedules to reduce transportation waste
- Evaluate fleet availability to reduce waiting waste
Effect Confirmation
Target Conditions/Measurable Objectives
- 80% Daily staffing availability
- 50% Improvement - customer satisfaction with restroom cleanliness
- Defined standard work (for custodial staff and customers)
Follow Up Actions
Root Cause & Gap Analysis
- Undefined level of service (office parties, special events)
- No defined process for unplanned absences (calling in, redistribute work, etc.)
- Inconsistent availability of communication tools (vary by building)
- No defined process for requesting/responding to emergencies
- Variation in cleaning schedules versus facility operating schedules
- Unpredictable daily staffing
- Travel time + Check in Time = 16.00 hrs/day = 2 FTE
- Customer requested personalized service (newspaper delivery, parties, trash)
CUSTODIAL SERVICES
A3
Plan Do, Check, Act
- 22% of customers dissatisfied with restroom cleanliness
8%
20%
8%
14%
17%
33%
0%
5%
10%
15%
20%
25%
30%
35%
Phone Call
to
Custodian
Phone Call
to Custodial
Supervisor
Phone Call
to Custodial
Manager
Phone Call
to Public
Works
Dispatch
(x6000)
Email Notify
Custodial
Staff On Site
Survey: When you require emergency
services, how do you request them?
32%
22%
19% 18%
6%
0%
10%
20%
30%
40%
Office Spaces Restrooms Common
Areas
Overall Conference
Rooms
Survey: Custodial Services - Areas of
Dissatisfaction
Travel/ Check
In Time
16.00 10%
Absent Staff
24.00 15%
Vacancies
24.00 15%
Special Events
2.00 1%
Staff Available
94.00
59%
Daily Staffing Availability
(Hours)
41% ofdaily
staffing is
unavailable for
custodial tasks
Title # Staff Hrs/Wk Hrs/Day
Lead Custodian 4 160 32
FT Custodian 8 520 64
FT Custodian (Vacant) 2 80 16
PT/Perm (avg 30 hrs each) 3 90 24
PT/Temp (avg 20 hrs each) 3 60 24
Total 20 910 160
Current Actual Result
State (+ 60 days)
Customers dissatisfied with restroom cleanliness 22% <10%
Avg minutes per restroom cleaning 35 30
Avg hours per day cleaning restrooms (184 restrooms) 107 92
Daily staffing availability 59% 80%
Daily travel/check in time (hours/day) 16 8
Travel miles per day 139 <70
Metric Projected
Remaining Actions Owner 1 2 3 4 5 6 7 8 9 10 11 12
Explore options to improve cell phone availability Mark R.
Define process for requesting and responding to emergencies Custodial Supvs
Equip carts for recycling Mark R.
Process mapping for specialized facilities Mark R.
Standardize Cart Equipment & Supplies Custodial Supvs
Process improvement for other facility types, e.g. offices, common
areas, etc.
Mark R.
Consider alternative staffing models (floaters, modified shifts) Mark R.
Actively manage vacancies Mark R.
Implementation Schedule (Months)
42
Alignment of A3s
Senior
Leadership
Middle
Management
Front Lines
Focus A3s
How are we going to grow the business?
Micro A3s
How do we reduce setup time at
workstation XYZ?
Problem A3s
How are we going to reduce lead time to
better meet customer demand?
43
GROWTH
(TOP LINE)
CUSTOMER
EXPERIENCE
PEOPLE
EXPENSE
MGMT
PERFORMANCE CATEGORIES
FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3
MEASURE
1
MEASURE
2
MEASURE
3
MEASURE
1
MEASURE
2
MEASURE
1
MEASURE
1
MEASURE
2
MEASURE
3
FOCUS A3
MEASURE
1
MEASURE
2
Visual Management via “True North Wall”
FOCUS A3
MEASURE
1
MEASURE
2
44
QUALITY
IMPROVEMENT
DELIVERY
IMPROVEMENT
COST
IMPROVEMENT
HUMAN
DEVELOPMENT
PERFORMANCE CATEGORIES
FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3
MEASURE
1
MEASURE
2
MEASURE
3
MEASURE
1
MEASURE
2
MEASURE
1
MEASURE
1
MEASURE
2
MEASURE
3
FOCUS A3
MEASURE
1
MEASURE
2
Visual Management via “True North Wall”
Example 2 (Different Categories)
FOCUS A3
MEASURE
1
MEASURE
2
45
PROBLEM A3
#1
PROBLEM A3
#2
PROBLEM A3
#3
PROBLEM A3
#4
PROBLEM A3
#5
FY17 PRIORITIES
PROBLEM A3
#6
PROBLEM A3
#7
PROBLEM A3
#8
PROBLEM A3
#9
PROBLEM A3
#10
PROBLEM A3
#11
PROBLEM A3
#12
PROBLEM A3
#13
PROBLEM A3
#14
PROBLEM A3
#15
PROBLEM A3
#16
PROBLEM A3
#17
PROBLEM A3
#18
PROBLEM A3
#19
PROBLEM A3
#20
Visual Management of Key Priorities
46
© 2016 The Karen Martin Group, Inc. 47
To Learn More…
• Books
• Getting the Right Things Done (Dennis)
• Hoshin Kanri for the Lean Enterprise (Jackson)
• The Outstanding Organization (Martin)
• Managing to Learn (Shook)
• Understanding A3 Thinking (Sobek & Smalley)
• Public Workshops & Conferences
• Association for Manufacturing Excellence
• Lean Enterprise Institute
• Shingo Institute
• Tours – especially outside your industry
• Practice, practice, and more practice!
Questions or
comments?
48
Karen Martin, President
ksm@ksmartin.com
@karenmartinopex
Blog & newsletter: www.ksmartin.com/subscribe
49

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Lean Leadership: Part 2 of 3

  • 1. © 2015 The Karen Martin Group, Inc. 1
  • 2. Lean Management Components Core Values / Principles / Philosophy • Analytical tools • Value stream analysis & mapping • Metrics-based process mapping • Root cause analysis: Five Why’s, Fishbone, Pareto, Problem tree, FMEA • Waste Countermeasures • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems: One-piece flow, FIFO lanes, Kanban • Cells / co-location • Level loading • Work balancing • Batch size reduction • Setup & changeover reduction • Work segmentation • Autonomation • Cross-training / multi-functional workers • Strategy deployment (hoshin planning) • Value stream management • Key performance indicators (three levels, including customer & operational metrics) • Disciplined process management via clear owners & KPIs • Daily kaizen • PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups • Go & see (gemba) management • Humble inquiry • Continuously seeking voice of the customer • Purposeful meetings & reporting • Lean accounting • Consensus management • Humility • Respect • Curiosity • Transparency • Relentless pursuit for perfection • Customer value • Flow / waste elimination • Just in time • Visual management • Work standardization Lean Management © 2016 The Karen Martin Group, Inc. 2
  • 3. Lean Leadership Webinar – Part 1 Core Values / Principles / Philosophy • Analytical tools • Value stream mapping • Metrics-based process mapping • Root cause analysis: Five Why’s, Fishbone, Pareto, Problem tree, FMEA • Waste Countermeasures • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems: One-piece flow, FIFO lanes, Kanban • Cells / co-location • Level loading • Work balancing • Batch size reduction • Setup & changeover reduction • Work segmentation • Autonomation • Cross-training / multi-functional workers • Strategy deployment (hoshin planning) • Value stream management • Key performance indicators (three levels, including customer & operational metrics) • Disciplined process management via clear owners & KPIs • Daily kaizen • PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups • Go & see (gemba) management • Humble inquiry • Continuously seeking voice of the customer • Purposeful meetings & reporting • Lean accounting • Consensus management • Humility • Respect • Curiosity • Transparency • Relentless pursuit for perfection • Customer value • Flow / waste elimination • Just in time • Visual management • Work standardization Lean Management © 2016 The Karen Martin Group, Inc. 3
  • 4. Lean Leadership Webinar – Part 2 Core Values / Principles / Philosophy • Analytical tools • Value stream mapping • Metrics-based process mapping • Root cause analysis: Five Why’s, Fishbone, Pareto, Problem tree, FMEA • Waste Countermeasures • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems: One-piece flow, FIFO lanes, Kanban • Cells / co-location • Level loading • Work balancing • Batch size reduction • Setup & changeover reduction • Work segmentation • Autonomation • Cross-training / multi-functional workers • Strategy deployment (hoshin planning) • Value stream management • Key performance indicators (three levels, including customer & operational metrics) • Disciplined process management via clear owners & KPIs • Daily kaizen • PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups • Go & see (gemba) management • Humble inquiry • Continuously seeking voice of the customer • Purposeful meetings & reporting • Lean accounting • Consensus management • Humility • Respect • Curiosity • Transparency • Relentless pursuit for perfection • Customer value • Flow / waste elimination • Just in time • Visual management • Work standardization Lean Management © 2016 The Karen Martin Group, Inc. 4
  • 5. Lean Leadership Webinar – Part 3 Thursday, October 27 – https://attendee.gotowebinar.com/register/2039217314521750529 Core Values / Principles / Philosophy • Analytical tools • Value stream mapping • Metrics-based process mapping • Root cause analysis: Five Why’s, Fishbone, Pareto, Problem tree, FMEA • Waste Countermeasures • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems: One-piece flow, FIFO lanes, Kanban • Cells / co-location • Level loading • Work balancing • Batch size reduction • Setup & changeover reduction • Work segmentation • Autonomation • Cross-training / multi-functional workers • Strategy deployment (hoshin planning) • Value stream management • Key performance indicators (three levels, including customer & operational metrics) • Disciplined process management via clear owners & KPIs • Daily kaizen • PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups • Go & see (gemba) management • Humble inquiry • Continuously seeking voice of the customer • Purposeful meetings & reporting • Lean accounting • Consensus management • Humility • Respect • Curiosity • Transparency • Relentless pursuit for perfection • Customer value • Flow / waste elimination • Just in time • Visual management • Work standardization Lean Management © 2016 The Karen Martin Group, Inc. 5
  • 6. © 2016 The Karen Martin Group, Inc. 6 There are many problems to solve. Many processes to improve. Many opportunities to explore.
  • 7. © 2015 The Karen Martin Group, Inc. 7
  • 9. © 2015 The Karen Martin Group, Inc. 9
  • 10. © 2016 The Karen Martin Group, Inc. 10 There is no such thing as multitasking.* * For cognitive tasks.
  • 11. Focus Law #1: STOP DOING Focus Law #2: DO FEWER THINGS AT ONCE © 2016 The Karen Martin Group, Inc. 11
  • 12. The Power of Focus: Organization A – Projects Completed 12 20 12 3 12 Pre-Focus Post-Focus Projects Started Projects Completed
  • 13. Organization B: Completed Projects Per Year 13 24 73 Pre-Focus Post-Focus • No additional resources • Higher quality products launched
  • 14. A Key to Apple’s Success? 14 “…saying no to 1,000 things to make sure we don’t get on the wrong track or try to do too much. …it’s only by saying no (or not now) that you can concentrate on the things that are really important.” — Steve Jobs
  • 15. Task #1: Focus Reduces Chaos. Task #2: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Round 1 – Alternate between tasks : letter, number, letter, number, etc. Sentence: Numbers: The Cost of Switch Tasking Round 2 – No switch tasking. Write the full sentence and then the numbers 1-17. Sentence: Numbers:
  • 16. Annual Hoshin Planning (Strategy Deployment) • Builds consensus around TRUE NORTH • Creates organizational focus on solving what matters most
  • 17. 17
  • 18. Strategy Deployment Key Feature: Catchball 18 Executive Team What? Who? When? Senior Mgmt What? Who? When? Middle Mgmt What? Who? When? Frontline What? Who? When? Year 1 Year 2 Year 3
  • 19. Strategy Deployment Plan Development Pre-work 19 Gather lists of: • All active projects and initiatives • All stalled projects and initiatives • All planned projects and initiatives • All desired projects and initiatives • All “stealth/rogue” projects and initiatives
  • 20. 20 Must do Eliminate Maybe Delay 1. List what you could do on 3x6” post-its (active or planned initiatives, projects & improvement activities). Gain consensus. 2. Categorize them (place post-it on appropriate page. Gain consensus. 3. Decide what you will do. (Move “maybe’s” onto one of the other three pages.) Gain consensus. Label Four Flip Chart Pages & Hang on Wall
  • 21. Step 4 Create Action Plan for What You Will Do 21 Must do Eliminate Maybe Delay
  • 22. The Overly Complicated X-Matrix 22
  • 23. 23 1. Increase sales 5%. 3. Achieve 10% profit. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario COM Direct CDs / AMs PD Rec PD Mgmt BMD SWS 2 3,500 units sold by 12/31/2013 through all channels (approx. $700K) X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3 11 Develop & deliver training to top 50 Dealers X X X X X X Bob Rex/Tim 3 3 3 21 Revised course materials by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2 5 Education: 1 school district spec'd/underperforming COM distributor (25) by 12/31 valued at min $35K each X X X X X X X X X X X X Howard Michael S 1 3 2 3 3 8 10 new dealers on board (net) ($500K per dealer this year) X X X X X X X X X X X X Howard Mike B 2 3 9 5 new distributors bringing $200K annual rev (& 5 terminated) X X X X X X X X X X X X Howard Howard 1 1 1 2 3 17 10 projects spec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3 29 20 by year-end X X X X X X X X X X X X Howard Mark H 2 3 3 3 32 TBD X X X Howard Howard 33 TBD X X X X X X X X X Howard Howard 10 Useful reporting and metrics are established and in place X X Jim Randall 3 1 1 1 1 1 1 30 TBD X X X X X Jim Josh 3 31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1 25 TBD Jim Shannon 3 3 1 1 1 1 1 26 System 7.0's in place X X X Jim Randall 3 2 1 2 1 15 100% accurate payroll; 100% management satisfaction at April mgmt. meeting X X X Josh Phyllis 1 3 20 Internet task list is simplified and streamlined for PDs then plan is rolled out to PDs X X X X Michael M Michael M 2 3 2 3 22 Design Calculator is updated successfully and rolled out X X X Neall Matt D 3 1 1 3 2 2 3 24 Competitive Analysis complete and distributed for use X X X Neall Dana 2 3 3 3 3 3 3 1 Design changed to solve delam issue long-term X X X X X Susan David R 3 2 3 12 30 parts sourced in U.S.; completed plan for managing China-sourced parts X X X X X X Susan Shannon 3 3 2 2 13 Warehouse laid out; kanban revised; Syspro implemented X X X Susan Shannon 3 14 Lay out complete; equipment installed X X X Susan David R 3 3 X = Planned 2013 Priorities 2013 Goals & Objectives 4. Improve morale (metric TBD). 2. Achieve 50% gross margin. Created: 01-14-13 Revised: Level of Effort/Involvement Required Priority Goal or Measurable Objective Exec Owner Plan review dates: Tactical Owner ● = Actual < Company Name > Contentremovedforconfidentiality Modified Strategy Deployment Annual Plan
  • 24. POST: Plan Management 24 • Weekly status meetings to start, then 2x a month, then monthly (required attendance). • Focus: how to turn red items into green • Expectation: Full team helps remove obstacles • Tone: supportive but tough • Visibility matters: post progress physically! • Modify plan for changing conditions, but avoid Organizational ADD
  • 25. © 2015 The Karen Martin Group, Inc. 25
  • 26. © 2015 The Karen Martin Group, Inc. 26 Problems are the irritants that produce pearls.
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  • 30. 30 Detailed Steps 1. Define and break down the problem. 2. Grasp the current condition. 3. Set a target condition. 4. Conduct root cause & gap analysis. 5. Identify potential countermeasures. 6. Develop & test countermeasure(s) 7. Refine and finalize countermeasure(s). 8. Implement countermeasure(s). Study Evaluate Results 9. Measure process performance. 10. Refine, standardize, & stabilize the process. 11. Monitor process performance. 12. Reflect & share learning. Adjust Do Clarifying the PDSA Cycle Plan Develop Hypothesis Conduct Experiment Refine Standardize Stabilize Phase Nailing the Plan stage of PDSA is the most important element in the entire cycle.
  • 32. Investigation Takes Many Forms 32 P/U AFrame Power Pole o st g Up Spag ett ag a e o e a e t p o e e ts st ated d sta ce a ed du g g Up 3095 t ag a o o s t e oo a d a d does ot c ude o g t e a e g Up e 90 utes Water
  • 33. 33 Detailed Steps 1. Define and break down the problem. 2. Grasp the current condition. 3. Set a target condition. 4. Conduct root cause & gap analysis. 5. Identify potential countermeasures. 6. Develop & test countermeasure(s) 7. Refine and finalize countermeasure(s). 8. Implement countermeasure(s). Study Evaluate Results 9. Measure process performance. 10. Refine, standardize, & stabilize the process. 11. Monitor process performance. 12. Reflect & share learning. Adjust Do Clarifying the PDSA Cycle Plan Develop Hypothesis Conduct Experiment Refine Standardize Stabilize Phase Iterative Problem Definition & Scoping
  • 34. Example: “Data integrity problem” Says who? What are they saying SPECIFICALLY? Go interview! Are we talking about inaccurate data, missing data, incomplete data, data in wrong location, similar but slightly different data stored in different locations, incorrect conclusions about accurate data, or…? Example: “No control of refrigerant inventory (controlled substance)” Is this true in all locations? All types of refrigerant? Is physical inventory quantity higher, lower, or both when compared to computer numbers? © 2015 The 34 1. Define and Breakdown the Problem
  • 35. © 2015 The 35 Problem Definition: Clarify, Qualify, Justify, Quantify 1. Is the problem clear and focused or vague and diffuse? 2. Why is this a problem? 3. How do we know it’s a problem? What evidence or proof exists? 4. How big is the problem? 5. Which aspect of the problem are we going to address?
  • 36. 36 2. Grasp the Current Condition • Understand the details behind the problem. • Options – OBSERVATION – Interview – Data analysis – Video analysis – Document review – Value stream or process mapping, – Etc.
  • 37. Describe the future. How does “better” look and feel? From/to: “If not this, then what?” Must be measurable Surveys enable you to convert anecdotal feedback into quantifiable data Should stretch the organization/team/problem owner (improvement is largely a mind game) Level of aggressiveness depends on : Urgency Timeframe Available resources Consensus around the problem Degree of focus © 2015 The 37 3. Set a Target Condition
  • 38. What’s stopping you from performing at the target condition NOW? Consider all obstacles: Physical / Environmental Mechanical Process-related Psychological / cultural Resource-related © 2015 The Karen Martin Group, Inc. 38 4. Conduct Root Cause & Gap Analysis CauseCause--andand--Effect DiagramEffect Diagram Machine Measurement Environment People Material / Info Method Budgets Submitted Late Lack of experience Time availability No sense of import No stnd spread sheet Email vs. FedEx No standard work Input rec’d late Forecast in other system Manual vs. PC System avail. No milestones $ vs. units Weather delays Dispersed sales force Changing schedule Machine Measurement Environment People Material / Info Method Budgets Submitted Late Lack of experience Time availability No sense of import No stnd spread sheet Email vs. FedEx No standard work Input rec’d late Forecast in other system Manual vs. PC System avail. No milestones $ vs. units Weather delays Dispersed sales force Changing schedule 5 Why’s Why? Why? Why? Why? Why?
  • 39. • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems •One-piece flow •FIFO lanes •Kanban • Cells / co-location © 2015 The Karen Martin Group, Inc. 39 5. Identify Potential Countermeasures • Level loading • Work/line balancing • Batch size reduction • Setup reduction / changeover • Work segmentation • Autonomation • Cross-training / multi- functional workers
  • 40. 40
  • 41. 41
  • 42. A3 Reports are used as: Coaching aid Consensus-building tool Communication tool Organizational learning device Problem Countermeasures / Implementation Plan - Ÿ32% of customers dissatisfied with office space cleanlines- 80% of emergency service requests are to wrong contact - Standard work for restroom cleaning - Standard work checklist for non-routine items - Service levels vary by building - Standard process for measuring & mixing chemicals - 10% of daily staffing available is allocated to travel/check in time - Restroom cleaning log - Standard facility service plan (Plan A & Plan B) Current Condition - Modify & standardize process for unplanned absences - 31   Facility areas require custodial services - Modify starting points and schedules to reduce transportation waste - Evaluate fleet availability to reduce waiting waste Effect Confirmation Target Conditions/Measurable Objectives - 80% Daily staffing availability - 50% Improvement - customer satisfaction with restroom cleanliness - Defined standard work (for custodial staff and customers) Follow Up Actions Root Cause & Gap Analysis - Undefined level of service (office parties, special events) - No defined process for unplanned absences (calling in, redistribute work, etc.) - Inconsistent availability of communication tools (vary by building) - No defined process for requesting/responding to emergencies - Variation in cleaning schedules versus facility operating schedules - Unpredictable daily staffing - Travel time + Check in Time = 16.00 hrs/day = 2 FTE - Customer requested personalized service (newspaper delivery, parties, trash) CUSTODIAL SERVICES A3 Plan Do, Check, Act - 22% of customers dissatisfied with restroom cleanliness 8% 20% 8% 14% 17% 33% 0% 5% 10% 15% 20% 25% 30% 35% Phone Call to Custodian Phone Call to Custodial Supervisor Phone Call to Custodial Manager Phone Call to Public Works Dispatch (x6000) Email Notify Custodial Staff On Site Survey: When you require emergency services, how do you request them? 32% 22% 19% 18% 6% 0% 10% 20% 30% 40% Office Spaces Restrooms Common Areas Overall Conference Rooms Survey: Custodial Services - Areas of Dissatisfaction Travel/ Check In Time 16.00 10% Absent Staff 24.00 15% Vacancies 24.00 15% Special Events 2.00 1% Staff Available 94.00 59% Daily Staffing Availability (Hours) 41% ofdaily staffing is unavailable for custodial tasks Title # Staff Hrs/Wk Hrs/Day Lead Custodian 4 160 32 FT Custodian 8 520 64 FT Custodian (Vacant) 2 80 16 PT/Perm (avg 30 hrs each) 3 90 24 PT/Temp (avg 20 hrs each) 3 60 24 Total 20 910 160 Current Actual Result State (+ 60 days) Customers dissatisfied with restroom cleanliness 22% <10% Avg minutes per restroom cleaning 35 30 Avg hours per day cleaning restrooms (184 restrooms) 107 92 Daily staffing availability 59% 80% Daily travel/check in time (hours/day) 16 8 Travel miles per day 139 <70 Metric Projected Remaining Actions Owner 1 2 3 4 5 6 7 8 9 10 11 12 Explore options to improve cell phone availability Mark R. Define process for requesting and responding to emergencies Custodial Supvs Equip carts for recycling Mark R. Process mapping for specialized facilities Mark R. Standardize Cart Equipment & Supplies Custodial Supvs Process improvement for other facility types, e.g. offices, common areas, etc. Mark R. Consider alternative staffing models (floaters, modified shifts) Mark R. Actively manage vacancies Mark R. Implementation Schedule (Months) 42
  • 43. Alignment of A3s Senior Leadership Middle Management Front Lines Focus A3s How are we going to grow the business? Micro A3s How do we reduce setup time at workstation XYZ? Problem A3s How are we going to reduce lead time to better meet customer demand? 43
  • 44. GROWTH (TOP LINE) CUSTOMER EXPERIENCE PEOPLE EXPENSE MGMT PERFORMANCE CATEGORIES FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3 MEASURE 1 MEASURE 2 MEASURE 3 MEASURE 1 MEASURE 2 MEASURE 1 MEASURE 1 MEASURE 2 MEASURE 3 FOCUS A3 MEASURE 1 MEASURE 2 Visual Management via “True North Wall” FOCUS A3 MEASURE 1 MEASURE 2 44
  • 45. QUALITY IMPROVEMENT DELIVERY IMPROVEMENT COST IMPROVEMENT HUMAN DEVELOPMENT PERFORMANCE CATEGORIES FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3 MEASURE 1 MEASURE 2 MEASURE 3 MEASURE 1 MEASURE 2 MEASURE 1 MEASURE 1 MEASURE 2 MEASURE 3 FOCUS A3 MEASURE 1 MEASURE 2 Visual Management via “True North Wall” Example 2 (Different Categories) FOCUS A3 MEASURE 1 MEASURE 2 45
  • 46. PROBLEM A3 #1 PROBLEM A3 #2 PROBLEM A3 #3 PROBLEM A3 #4 PROBLEM A3 #5 FY17 PRIORITIES PROBLEM A3 #6 PROBLEM A3 #7 PROBLEM A3 #8 PROBLEM A3 #9 PROBLEM A3 #10 PROBLEM A3 #11 PROBLEM A3 #12 PROBLEM A3 #13 PROBLEM A3 #14 PROBLEM A3 #15 PROBLEM A3 #16 PROBLEM A3 #17 PROBLEM A3 #18 PROBLEM A3 #19 PROBLEM A3 #20 Visual Management of Key Priorities 46
  • 47. © 2016 The Karen Martin Group, Inc. 47 To Learn More… • Books • Getting the Right Things Done (Dennis) • Hoshin Kanri for the Lean Enterprise (Jackson) • The Outstanding Organization (Martin) • Managing to Learn (Shook) • Understanding A3 Thinking (Sobek & Smalley) • Public Workshops & Conferences • Association for Manufacturing Excellence • Lean Enterprise Institute • Shingo Institute • Tours – especially outside your industry • Practice, practice, and more practice!
  • 49. Karen Martin, President ksm@ksmartin.com @karenmartinopex Blog & newsletter: www.ksmartin.com/subscribe 49