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Leading a Lean Implementation

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Leading a Lean Implementation

  1. 1. Leading a Lean ImplementationPresented by Mark RubySenior Vice President, Reliability Consulting Group,Life Cycle Engineering
  2. 2. 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
  3. 3. Define the CompetitiveEnvironment
  4. 4. CompetitionDevelopment CycleRawMaterialsGrowth
  5. 5. Bringing Lean Into Focusoperational excellence as a strategic weapon
  6. 6. 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
  7. 7. Change Management
  8. 8. 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)
  9. 9. 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
  10. 10. Why Change Management?Prepare forChangeManageChangeReinforceChangePhases of a ChangeManagement Process
  11. 11. Change Management Yields MeasurableResultsSpeed ofAdoptionUltimateUtilizationProficiencyROI ofChange
  12. 12. Strategy Deployment
  13. 13. Strategy Management Process ModelIntegratedStrategy FormulationStrategy Deployment &Implementation FrameworkMeasurementLearningImprovementImplementedSystematicSoundApproach
  14. 14. 16© Life Cycle Engineering 2012Evolution of Strategy DeploymentIndependentUnits(Silos)Focus ClearBusinessDirectionOrganizationAlignment(Catch Ball)SystematicImplementationNot Just Results,Planned ResultsFocus Alignment Quick Response
  15. 15. 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
  16. 16. 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
  17. 17. Hoshin Kanri Deployment Matrix
  18. 18. Balanced Scorecard Deployment Matrix
  19. 19. 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
  20. 20. Create anImplementation Strategy
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. LCE Lean Implementation Model
  25. 25. Lean Implementation Process ModelVisionValue StreamMapImplementationPlan Report Out1. Strategy deployment & lean strategy are co-dependant.2. 12 month plant vision + key implementation plan (rolling)3. 12 month product line, customer/supplier logistics vision (rolling)4. Value stream mapping (CSM, FSM), 6 month cycles5. Plan and check results on an established cadenceStrategyDeploymentBPS Principle trainingBenchmark VisitsPolicy Deployment 2005Compensation system 20055S Shop floor/warehouse5S AdministrationVisualization Metrics Phase IPFEPEOL Kanban BoardsHeijunka (Levelling)BPS Plant Focus Layout (Vision 2005)Material Delivery Routes (Raw)Kanban (Internal Pull Systems)Lean Line/Cell Designs (Simulation)Problem Escalation ProcessOrder Management - Supply - SAP/ICH (NAFTA)Frequent Supplier Pulls (NAFTA)Bosch Plant Assesments (Internal)MOE1-4 Focus Layout (Vision 2005)Centralized Material Flow CenterBPS Workshops / Partnerships into supply baseOrder Management - Supply - SAP/ICH (Intl)Frequent Supplier Pulls (Intl)Change-over time reduction (SMED)Standardized WorkPolicy Deployment 2006Compensation system 2006TPMMOE Cockpit Charts / Dashboards/BPS Cockpit ChartsMaterial Delivery Routes incl. kits (FG)Administrative value stream designVisualization Metrics Phase IIKaizen TeianQ-Tools (Ishikawa, 5 Whys, Pareto, Actions)Shop Floor Problem SolvingBosch Plant Assesments (Suppliers)Jidoka (Stop the Line)BPS Key ElementsBPS Plant Vision2004 2005Aug Sep Oct Nov Dec Jan Feb Mar Apr May Oct Nov DecJun Jul Aug SepImplementationPlanning OptimizationProcess Management
  26. 26. Communicate anImplementation Framework
  27. 27. 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
  28. 28. 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
  29. 29. The Toyota Production System
  30. 30. 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
  31. 31. Milliken & Company
  32. 32. The Volvo Production System – 5Principles
  33. 33. Production System Model
  34. 34. JiT
  35. 35. Alcoa Business System
  36. 36. Organize for Success
  37. 37. Value Stream ViewSupermarketU USupermarketDaily PullsHourly PullsSub Ass.Final Ass.Production CellsPlant PlantProductionControlForecastCustomerSupplierHourly PullsShort Lead-timesXOXOForecastPurifiedDaily OrdersXOXODaily OrdersSupplier LoopShop Floor LoopCustomer Loop
  38. 38. Plant ManagerAdministration Operations Engineering Lean Leader LogisticsAssistantPlant ManagerAdministration OperationsLean LeaderEngineering Lean Leader LogisticsLean LeaderAssistantOrganizationalDesign
  39. 39. Organize for Success• Lean leadership team• Reporting relationship• Dedicated resources• External resources
  40. 40. Measuring Success
  41. 41. How to Measure Success1. Financial results2. Scoring and assessments3. Stakeholder perceptions
  42. 42. 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
  43. 43. 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.