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1 Knowledge Management V TPS, LEAN, Six Sigma Common, Conflict or Complementary? Jon Hayward-Wright KMLF 30 April 2014.

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Presentation on theme: "1 Knowledge Management V TPS, LEAN, Six Sigma Common, Conflict or Complementary? Jon Hayward-Wright KMLF 30 April 2014."— Presentation transcript:

1 1 Knowledge Management V TPS, LEAN, Six Sigma Common, Conflict or Complementary? Jon Hayward-Wright KMLF 30 April 2014

2 TPS v LEAN TPS – Toyota Production System, a collection of tools, methods, brought together into a single framework / system. TPS – Toyota Production System, a collection of tools, methods, brought together into a single framework / system. TPS did NOT invent many of these items, the “magic” was bring them together and integrating them into one system. TPS did NOT invent many of these items, the “magic” was bring them together and integrating them into one system. With 5 key objectives:- Specify what creates value from the customers perspective Specify what creates value from the customers perspective Identify all the steps along the process chain Identify all the steps along the process chain Make those processes flow Make those processes flow Make only what is pulled by the customer Make only what is pulled by the customer Strive for perfection by continually removing wastes Strive for perfection by continually removing wastes LEAN – a term that was “invented” by Womack, Jones & Roos in their book “The Machine That Changed the World” that explained in general terms the TPS philosophy's. LEAN – a term that was “invented” by Womack, Jones & Roos in their book “The Machine That Changed the World” that explained in general terms the TPS philosophy's. 2

3 LEAN v Six Sigma LEAN --- (TPS) Removes Waste Removes Waste Reduces Cycle Time (increased speed) Reduces Cycle Time (increased speed) Promotes Process re- design to remove non- value adding steps. Promotes Process re- design to remove non- value adding steps. Fixes connections between process steps. Fixes connections between process steps. Focuses on the customer. Focuses on the customer. Six Sigma --- (SPC) Reduces variations (lifts repeatability) Improves Quality Reduces “compounding” errors. Seeks to optimise process steps. Focuses on the customer. 3 SPEED + ACCURACY = (BETTER Delivery & Quality)+(SATISFIED Employees & Customers)

4 How long have they been around? 4 Six Sigma (SPC) Use of LEAN (TPS)

5 Activity Part 1 Write on separate POST-ITS any similarities OR differences you believe exist between :- LEAN/Six Sigma AND Knowledge Management (KM) Part 2 Read the following question and write your answer on ONE POST-IT. “What action/change is impossible today, which if by some magical means you could achieve, would totally change the world of KM forever!” 5

6 6 “The basic economic resource is no longer capital, nor natural resources, nor labor. It is and will be knowledge.” Peter Drucker “What Drucker failed to say was…..it has to be the RIGHT knowledge!

7 So what does the “?” really represent? 7 Non Value Adding Value Adding ?Value Creating ?

8 8 Exponential Growth in “Knowledge”? By the year 2020 “knowledge” will double every 73 days or less…………….. but what is the RIGHT knowledge? World Wide Web is doubling every 90 days……………. With who…….customers?......partners? Or noise? Moore s Law - The power of silicon technology doubles every 18 months. Faster……..more “speed” but what about the quality? Metcalfe s Law - The value to those connected to a network increases by n square. Does it? only if the information is “processed” into “knowledge” which supports / promotes a “change” in something?

9 9 What is Knowledge Management? The systematic process of creating, maintaining and nurturing an organization to make the best use of the available knowledge to create business value and generate competitive advantage.

10 10 The belief is Knowledge Workers will :- Dominant group of workers in the 21 st century. Dominant group of workers in the 21 st century. Will we need that many?......what do the rest do? Will we need that many?......what do the rest do? Specialists with job-specific skills. Specialists with job-specific skills. Require multiple, continuous learning opportunities to maintain their specialized knowledge?......from where? Require multiple, continuous learning opportunities to maintain their specialized knowledge?......from where? Have significant formal education or formal training. Have significant formal education or formal training. From where? Who will pay…? In what? From where? Who will pay…? In what? Are self-directed learners & workers Are self-directed learners & workers Focused on what? more “knowledge” or noise? Focused on what? more “knowledge” or noise?

11 What does it take to get these working? KM 20% Technology 20% Technology 80% Cultural 80% Cultural Behaviour of leaders Behaviour of leaders What type of “learnings” are valued What type of “learnings” are valued Organisational structure Organisational structure How are mistakes handled How are mistakes handled Reward & Punishment Reward & Punishment What “value” on info. sharing What “value” on info. sharing LEAN / Six Sigma 20% “Technology” 80% Cultural Support from “leaders” Accepting “process improvement” as the right focus. Organisational barriers to change. Mistakes as a learning. Commitment of the many to support the few. 11

12 KM and Lean are Symbiotic KM helping LEAN Drawing out the knowledge of “productivity”. Drawing out the knowledge of “productivity”. KM focus on the “flow” of knowledge. KM focus on the “flow” of knowledge. Enables continuous learning. Enables continuous learning. Enables transfer of process/systems knowledge, common understanding. Enables transfer of process/systems knowledge, common understanding. LEAN helping KM An enterprise committed to LEAN enables/seeks Data -> Info. -> Knowledge processes. Helps identify and champion “knowledge” gaps. LEAN events provide opportunities for knowledge transfer. Focus is on “valuable” information & how this creates customer centric value. 12

13 Barriers to Success 13 BarrierKMLEAN Organisational Culture1 st 80%4 th 60% Lack of Ownership2 nd 64%2 nd 70% Info/Comms Tech. (Hard & Soft) 3 rd 55%7 th 20% Organisational Structure4 th 54%5 th 50% Non-standard processes5 th 53%6 th 30% Lack of leadership support6 th 46%1 st 80% Reward & Recognition7 th 46%7 th 20% Middle or FLM support8 th 45%2 nd 70%

14 14 Preserving “Invisible Equity” Assets Finance Current Assets Non- Current Assets Current Liabilities Non Current Liabilities Visible Shareholder Equity Invisible Equity The “Invisible Balance Sheet” Management Value-Add Market Value $14.05 Billion Typical Balance Sheet when “Invisible Equity” included LEAN KM

15 So what's the future for…… LEAN (TPS) LEAN (TPS) Used outside of manufacturing. Used outside of manufacturing. YES but caution is needed, YES but caution is needed, Dis-assembly of the basic’s will alter the “value”. Dis-assembly of the basic’s will alter the “value”. “Sustainable LEAN” now stands for:- “Sustainable LEAN” now stands for:- L = Leadership L = Leadership E = Engagement E = Engagement A = Accountability A = Accountability N = Nurturing. N = Nurturing. KM KM Time has yet to come, needs to define and sell its “value” from the customers viewpoint? Time has yet to come, needs to define and sell its “value” from the customers viewpoint? 15

16 What do you think? 16


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