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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
Leading a Lean Implementation
Leading a Lean ImplementationPresented by Mark RubySenior Vice President, Reliability Consulting Group,Life Cycle Engineering
Presentation Agenda Define the competitive environment Integrate a robust change managementprocess Implement strategy deployment Create an implementation strategy andframework Organize for success How to measure success Critical success factors
Bringing Lean Into Focusoperational excellence as a strategic weapon
Benefits From Lean ImplementationActivitiesWork in process inventory 12 daysProductivity 30%OEE 15%Floor space 40%Lead time 30%Green metrics emergingLean – reduction of lead time through the elimination of waste
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 changessucceed (McKinsey Global Survey Results 2008)
Most Change Initiatives Fail!The number oneobstacle to successfor major changeprojects is employeeresistance andthe ineffectivemanagement of thepeople side of change.(c) Prosci 2010. www.change-management.com. Used with permission
Why Change Management?Prepare forChangeManageChangeReinforceChangePhases of a ChangeManagement Process
Strategy DeploymentEstablished frameworks for strategy deployment1. Hoshin Kanri – Element of TQM. Foundationalto the Toyota Production System2. Balanced Scorecard – Originated HarvardBusiness School by Dr. Kaplan and pioneered byG.E. for performance reporting in the 1950’sStrategy Deployment – a process that aligns businessactivities to the vision and strategy of the organization
Define a Strategy Deployment ProcessStrategy Deployment ensures that the voice of the customeris always at the forefront in approach and deployment.Strategy Deployment provides both vertical and horizontalfocus and alignment on key goals.Strategy Deployment goals are implemented systematically.CustomerExpectationsCorporateStrategicGoalsQualityCustomerSatisfactionPlantGoalsReduceFailure RatesDept/ProductGoalsReduce Int.DefectsWorkshopGoalsImprovementProjectsBest in ClassQuality
PDCA – The Foundation of StrategyDeploymentPlan – If we takethese actions, wewill achieve therequired results.The hypothesis.Do – Deployingobjectives levelby level.Implementation.Check – Observingand assessingresults against thetargetAct – Analyze resultsfrom checking phase.If at target,standardize. If not,adjusted assumptionsto reflect facts(problem solving)Plan-Do-Check-Act CycleExpression of The Scientific Method
Create an Implementation StrategyPhilosophy(long-term thinking)Process(eliminate waste)People & Partners(respect, challenge, and grow them)ProblemSolving(continuousimprovement andlearning)The businessprinciples of theToyota Way
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 materialflow• Low levels of inventory and work in process• Engaged associates, empowered and motivated• A robust TPM program – well maintained equipment andtools• Integrated supply chain
Understand What is PossibleConsider whatneeds to be doneThinkDevelop themes ofwhat to doTheme finding/settingTTake responsivecountermeasuresActImprovement &standardizationDSTPicture ones’ideal imageDrawWant to do thisWant to be like thisSeeRecognize realityGrasp and analyzecurrent situationDraw, See and Think – PDCA CycleAction Plan ImplementationMake actionplanPut plans intoactionCheck by actualresultsPlan Do CheckPlans &standardsTraining &implementationAnalysis &learningIn the Beginning, There is a DreamPLAN:Plan theChangeDO:Implementthe ChangeCHECK:Monitor andReview theChangeACT:Revise andStandardizethe Changes
Communicate an ImplementationFrameworkIdentifyValueMap thevaluestreamCreateFlowEstablishPullSeekPerfectionCreate Your Company’s Production System Vision• Incorporate vision &guiding principles• Provides excellentmethod forcommunication• Provides an anchorpoint for True North• Provides a differentiatorin the marketplaceAdopted from Lean Enterprise Institute, Inc. 2009
Building Blocks of a Production SystemManagementResponsibilityPolicy Deployment Employee InvolvementDemand Management Information Flow Warehouse MgmtInventory Management Material Handling Layout & Production FlowProductivity & Flexibility Equipment Productivity Process StabilityQuality Standardized Work 5SVisual Management Supply ChainManagementProblem SolvingSingle Piece Flow Supplier Relations Resources at POUAligned Authority Professional Workforce Culture of CIPData User Customer SatisfactionSafety Scheduling System TPMTeamwork & Motivation Efficient Use of Space Mgmt Complexity,Variability
Robert Bosch 8 Principles of BoschProduction SystemCost DeliveryQualityAssociate Involvement and EmpowermentWaste Elimination and Continuous ImprovementAssociate SatisfactionPerfect QualityFlexibilityProcess OrientationPull SystemTransparent ProcessStandardizationCustomer Satisfaction and Business SuccessCost DeliveryQualityCost DeliveryQualityAssociate Involvement and EmpowermentWaste Elimination and Continuous ImprovementAssociate SatisfactionPerfect QualityFlexibilityProcess OrientationPull SystemTransparent ProcessStandardizationCustomer Satisfaction and Business Success
How to Measure Success1. Financial results2. Scoring and assessments3. Stakeholder perceptions
Critical Success Factors1. Leadership unity2. “True North” orientation3. 70% solution4. Organize around value streams5. Use kaizen workshops to teach and make rapid changes6. Make it mandatory7. Create a sense of urgency8. Pursue opportunities with large financial impacts9. Implement a scoring mechanism10. Develop your own way within your own culture11. Hire or develop lean leaders with succession planning12. Use experts for teaching and getting quick results13. Educate and benchmark
Thank You!Mark Ruby, Sr. Vice PresidentLife Cycle EngineeringReliability Consulting Group843.744.7110mruby@LCE.comwww.LCE.comLCE’s Reliability Consulting Group (RCG) provides consulting,services and education. Our team specializes in providingclient-specific solutions that help organizations improve theiroperating performance.