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Lean Leadership. Summary of Topics to Be Covered Understanding the impact of human relationships in the business world and how business leaders think.

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Presentation on theme: "Lean Leadership. Summary of Topics to Be Covered Understanding the impact of human relationships in the business world and how business leaders think."— Presentation transcript:

1 Lean Leadership

2 Summary of Topics to Be Covered Understanding the impact of human relationships in the business world and how business leaders think today. Understanding the impact of human relationships in the business world and how business leaders think today. Understanding the lean challenge from a human relationship perspective Understanding the lean challenge from a human relationship perspective Understanding human motivation Understanding human motivation Understanding group dynamics Understanding group dynamics Understanding Organizational Dynamics and Organizational Evolution Understanding Organizational Dynamics and Organizational Evolution The Organizational Structure of Enlightened Leadership The Organizational Structure of Enlightened Leadership Assessing and Fostering Teamwork in Organizations Assessing and Fostering Teamwork in Organizations Building Organizational Consensus and Overcoming Resistance to Change Building Organizational Consensus and Overcoming Resistance to Change Process Improvement and Re-engineering Process Improvement and Re-engineering Visioning Visioning Benchmarking Benchmarking Understanding Customers and What Customer Satisfaction is All About Understanding Customers and What Customer Satisfaction is All About Understanding Metric Maps Understanding Metric Maps Recognizing and Rewarding Achievement Recognizing and Rewarding Achievement Understanding Pull System Understanding Pull System Understanding Kanban Systems Understanding Kanban Systems Single Minute Exchange of Dies Single Minute Exchange of Dies What is Waste What is Waste Visual Management Systems Visual Management Systems Lean Leadership on the Front Lines Lean Leadership on the Front Lines

3 The Lean Leader Code of Behavior Implement a code of knowledge that taps the fundamental truths about human beings, organizations and processes in every industry and situation. Implement a code of knowledge that taps the fundamental truths about human beings, organizations and processes in every industry and situation. Embrace change and spend little time on rituals and move fast Embrace change and spend little time on rituals and move fast Revel in victory, not in closing the deal! Revel in victory, not in closing the deal! Share commandership working within a brotherhood that values and involves all warriors. Share commandership working within a brotherhood that values and involves all warriors. Allow others to be creative, emotionally charged and let them gain recognition. Allow others to be creative, emotionally charged and let them gain recognition. Never forsake your own personal joy over professional achievement. Never forsake your own personal joy over professional achievement. Understand the theory of the carrot diet. Understand the theory of the carrot diet. Remember that a world class organization is one that is defined as an organization that dramatically, reliably and continually increases there productivity over the long run without reducing self esteem and economic status of the people who work in these systems. Remember that a world class organization is one that is defined as an organization that dramatically, reliably and continually increases there productivity over the long run without reducing self esteem and economic status of the people who work in these systems.

4 Today’s Business Leader Code of Behavior Hover about the boss, but don’t be seen. Hover about the boss, but don’t be seen. Bestow compliments on higher up bosses, but never on subordinates. Bestow compliments on higher up bosses, but never on subordinates. Seek additional assignments. Seek additional assignments. Learn how to politic well. Learn how to politic well. Policies and structure can fix all human behavior if they are forced to follow it. Policies and structure can fix all human behavior if they are forced to follow it. Management by superstitious learning. Management by superstitious learning.

5 Three Primary Skills For Lean Leaders In Order of Priority 1. People Skills 2. Conceptual Skills 3. Technical Skills

6 Definition of the Skills People People Interpersonal interactions such as giving and receiving instructions,negotiating, conflict resolution, team work and group decision making. Conceptual Skills Conceptual Skills Planning the future activities and monitoring current activities and reconciling the two. Technical Skills Technical Skills Applying the set of standards and rules to solve a problem or to modify an outcome.

7 These (3)Basic Theories Must be Mastered to Create a Lean Organization 1. Individual Motivation and Behavior 2. Group Dynamics 3. Organizational dynamics and evolution

8 Five Basic Needs of People Survival/Reproduction Survival/Reproduction Belonging/Love Belonging/Love Power Power Fun Fun Freedom Freedom

9 Results from feeding the basic needs versus starving the basic needs Results from Feeding the Basic Needs: Activities that benefit an organization Activities that benefit an organization Results from Not Feeding the Basic Needs: Activities that compromise and organization Activities that compromise and organization

10 Every Behavior has (4) Elements 1. The physical action of the behavior. 2. The emotion that accompanies the behavior. 3. The physiological response that accompanies the behavior. 4. The thoughts that accompany the behavior.

11 Put People First and You Will Get Employees Who 1. Will be satisfied they will survive. 2. Will feel they belong and cared for. 3. Will have fun on the job. 4. Will feel they have control and power of situations. 5. Feel the have the freedom to be empowered.

12 Group Dynamics For groups dynamics to benefit an organization,organizations must change to accommodate the basic elements of successful group behavior. For groups dynamics to benefit an organization,organizations must change to accommodate the basic elements of successful group behavior. Group Behavior is driven by rules that are universal, which all people will follow. Group Behavior is driven by rules that are universal, which all people will follow. All groups develop there own set of norms. All groups develop there own set of norms. All groups develop a set of roles for each individual in the group. All groups develop a set of roles for each individual in the group. Group Location and proximity is important. Group Location and proximity is important. Groups become dysfunctional with more than nine members in a group and work best when the group size is between 5-9 people. Groups become dysfunctional with more than nine members in a group and work best when the group size is between 5-9 people.

13 Organizational Evolution Organizational Evolution Most organizations start out as a small group working within close proximity of each other and people will develop “tight knit feeling towards each other”. Most organizations start out as a small group working within close proximity of each other and people will develop “tight knit feeling towards each other”. The close proximity allows the group to get to know each other every well. The close proximity allows the group to get to know each other every well. The close proximity structure has shown to be were humans are most productive, secure, efficient and happy. The close proximity structure has shown to be were humans are most productive, secure, efficient and happy. As organizations grow they force logical organizational changes to compensate for problems created by lack of group identity. As organizations grow they force logical organizational changes to compensate for problems created by lack of group identity. Layers of authority start to proliferate and sub organizations begin to build fences that separate their areas from the rest of the organization. Layers of authority start to proliferate and sub organizations begin to build fences that separate their areas from the rest of the organization. Without fences managers and supervisors feel the loss control and power of keeping their employees within the fence and to the ability to keep other managers out. Without fences managers and supervisors feel the loss control and power of keeping their employees within the fence and to the ability to keep other managers out. The enforced departmental segregation becomes damaging to the “tight knit” feeling among workers and cross functional work begins to erode. The enforced departmental segregation becomes damaging to the “tight knit” feeling among workers and cross functional work begins to erode. Managers and employees begin to focus on process needs other than focusing in on the organization passion and vision. Managers and employees begin to focus on process needs other than focusing in on the organization passion and vision.

14 Organizational Evolution “Cont” Organizational Evolution “Cont” Corporate staffs and technical experts begin to form and develop a department specific perspective and start to become isolated from the real world of product engineering, materials and manufacturing. Corporate staffs and technical experts begin to form and develop a department specific perspective and start to become isolated from the real world of product engineering, materials and manufacturing. Upper management becomes increasingly isolated from the reality of day to day business and information begins to become filtered through the various management levels. Upper management becomes increasingly isolated from the reality of day to day business and information begins to become filtered through the various management levels. Top leadership will begin to surround themselves with support staff who were initially hired to help other areas but see there primary function as helping the top leadership by protecting them from unpleasant news, disturbances and irritations. Top leadership will begin to surround themselves with support staff who were initially hired to help other areas but see there primary function as helping the top leadership by protecting them from unpleasant news, disturbances and irritations. Leaders begin to fall prey to “distance related significance” and determine the validity of data according to how close the information source lies. Leaders begin to fall prey to “distance related significance” and determine the validity of data according to how close the information source lies. Lower level groups limit their efforts to sell programs because leadership listens to those most closely to them. Lower level groups limit their efforts to sell programs because leadership listens to those most closely to them. Lower level groups don’t want to get their projects rejected and they start to attempt to get things done without involving executive management which leads to further isolation and distrust. Lower level groups don’t want to get their projects rejected and they start to attempt to get things done without involving executive management which leads to further isolation and distrust.

15 Organizational Evolution “Cont” Organizational Evolution “Cont” Islands of group departmentalization begin to focus on the maintenance of the structure, instead of focusing on the business in itself. Islands of group departmentalization begin to focus on the maintenance of the structure, instead of focusing on the business in itself. Managers and supervisors start to develop relationships with a few key employees and starts to run the group through these employees. Managers and supervisors start to develop relationships with a few key employees and starts to run the group through these employees. Little teamwork and little conflict occurs because everyone has worked out a arrangement where they stay out of each others business Little teamwork and little conflict occurs because everyone has worked out a arrangement where they stay out of each others business Key employees start to get rewarded with more status and hierarchies begin to develop with individual groups Key employees start to get rewarded with more status and hierarchies begin to develop with individual groups Supervisors who start to develop an intimate relationships with team members and focuses his/her primary effort on the the team have tremendous negative career impacts for the perception that they are less managerial. Supervisors who start to develop an intimate relationships with team members and focuses his/her primary effort on the the team have tremendous negative career impacts for the perception that they are less managerial. Each of the functional area groups develop similar norms, values and characteristics. Each of the functional area groups develop similar norms, values and characteristics.

16 Characteristics of Traditional Organization Act like everyone else in your group Act like everyone else in your group Keep your boss happy Keep your boss happy Make sure the authority figures like you Make sure the authority figures like you Don’t make your group look bad Don’t make your group look bad Don’t deliver bad news Don’t deliver bad news Decisions are made at the top Decisions are made at the top Don’t find fault; an authority figure will tell you in there’s a problem Don’t find fault; an authority figure will tell you in there’s a problem Don’t make any mistakes Don’t make any mistakes Just get it done any way you can; we reward winners and punish losers Wait for someone else to act Know your place in the caste hierarchy and act accordingly Don’t make trouble with other groups, mind you own business Don’t attempt to change norms set by higher status groups, you can’t fight city hall

17 Sub Optimization Starts to Occur When competition occurs between groups this is considered “evil” to a lean organizational effectiveness. When competition occurs between groups this is considered “evil” to a lean organizational effectiveness. When there is competition, there are winners and losers. When there is competition, there are winners and losers. The losers human need satisfactions of the losers do not get met. The losers human need satisfactions of the losers do not get met. Losers will attribute it’s losses to factors outside of it’s control and inequities will be perceived. The losing team will develop a loss of devotion and concern for the organizations goals and objectives. Losers will attribute it’s losses to factors outside of it’s control and inequities will be perceived. The losing team will develop a loss of devotion and concern for the organizations goals and objectives. When competition exist hostility between groups rises and group cooperation decreases. When competition exist hostility between groups rises and group cooperation decreases. Managers in the different groups begin to develop the “Abilene Paradox” which is the “failure to manage agreement”. Managers in the different groups begin to develop the “Abilene Paradox” which is the “failure to manage agreement”. Group think can begin to occur in lieu of independent critical thinking. Group think can begin to occur in lieu of independent critical thinking.

18 Characteristics of Group Think Intense loyalty to the group. Intense loyalty to the group. The group maintains isolation. The group maintains isolation. The group has little tolerance for criticism. The group has little tolerance for criticism. The group sticks with decisions in spite of bad results. The group sticks with decisions in spite of bad results. The group avoids conflict among group members. The group avoids conflict among group members. Extreme conformity of members to the groups decision is expected. Extreme conformity of members to the groups decision is expected. Negative data is discounted. Negative data is discounted. Group activities are very stressful for all team members. Group activities are very stressful for all team members.

19 The Structure of Enlighten Lean Leadership The challenge of a lean structure at the most basic level is to fully engage the full energy of the organization to achieve critical objectives. The challenge of a lean structure at the most basic level is to fully engage the full energy of the organization to achieve critical objectives. Understand what makes people and groups tick and how to get them involved. Understand what makes people and groups tick and how to get them involved. Understand the titanic forces of group and organizational dynamics working against them. Understand the titanic forces of group and organizational dynamics working against them. Lead in stead of being a caretaker of whatever develops. Lead in stead of being a caretaker of whatever develops. Understand the inexorable operation of unconstrained organizational dynamics. Understand the inexorable operation of unconstrained organizational dynamics. Outline what must be done strategically in day to day behavior to halt the evolution of a traditional organization. Outline what must be done strategically in day to day behavior to halt the evolution of a traditional organization. Outline the first steps to begin to evolve the organization into a structure that’s focused on profit and productivity while at the same time people are fulfilled as they can be from the job they are preforming. Outline the first steps to begin to evolve the organization into a structure that’s focused on profit and productivity while at the same time people are fulfilled as they can be from the job they are preforming.

20 Structure of Enlighten Lean Leadership LEVEL 1 Understanding the basic knowledge upon which all human behavior efforts must be based LEVEL 2 Structuring the basic knowledge to engage the people in the organization “Creating the Vision” LEVEL 3 Developing and implementing Strategies for focusing organizations for maximum productivity and empowerment LEVEL 4 Use of the Tools, tactics, techniques and approaches for maximizing system and process efficiency and productivity ”Kaizen Events”

21 Level 1 Key Elements The leader applies what he/she knows to make things happen. The leader applies what he/she knows to make things happen. Every element of the organization and the working environment is engineered to get the most out of the people by giving them optimal opportunities for work related need satisfaction. Every element of the organization and the working environment is engineered to get the most out of the people by giving them optimal opportunities for work related need satisfaction. Build a single, comprehensive and integrated system that compliments the basic dynamics of human beings. Build a single, comprehensive and integrated system that compliments the basic dynamics of human beings.

22 Level 2 Key Elements Develop the transition of the facts and relationships of level one into a set of consciously developed and internalized management and leadership principles and metrics. Develop the transition of the facts and relationships of level one into a set of consciously developed and internalized management and leadership principles and metrics. Develop and enlighten philosophy of work belief within the leadership that the overwhelming majority of people, if given leadership, respect. Develop and enlighten philosophy of work belief within the leadership that the overwhelming majority of people, if given leadership, respect. Provide opportunities for need satisfaction and a worthwhile goal that employees will attempt to succeed. Provide opportunities for need satisfaction and a worthwhile goal that employees will attempt to succeed. Develop a understanding of rapid adaptation to change. Develop a understanding of rapid adaptation to change. Develop a visionary application of beliefs, expectations and direction that focuses everyone in the organization on critical objectives in an effective manner. Develop a visionary application of beliefs, expectations and direction that focuses everyone in the organization on critical objectives in an effective manner.

23 Level 3 Key Elements Value people first Value people first Pursue Continuous Improvement Pursue Continuous Improvement Focus on Micro processes Focus on Micro processes Create lean organizational structures Create lean organizational structures

24 Level 4 Key Elements Implement the Lean Tools, Tactics, Techniques and approaches for maximizing system and process efficiency. Implement the Lean Tools, Tactics, Techniques and approaches for maximizing system and process efficiency. 1. Metric Maps 2. Pareto Charts 3. Check Sheets 4. Focused Communicated Planning 5. Consensus Decision making 6. Flow charts 7. Structured team oriented problem solving 8. Process re-engineering 9. QFD 10. One by one piece flow 11. SMED 12. DOE 13. SPC 14. Extensive Sharing of Cost and Performance data at all levels 15. Pokayoke 16. Empowered, well trained employees 17. FMEA 18. Concurrent Engineering

25 Characteristics of Lean Organization Properly lead people who want to work hard Properly lead people who want to work hard Competition within the group or organization is never encouraged Competition within the group or organization is never encouraged Work groups are encouraged to work closely with other groups Work groups are encouraged to work closely with other groups Disagreements are not bad, they surface issues that are not yet resolved Disagreements are not bad, they surface issues that are not yet resolved Management stays close to workers on all dimensions (minimize propinquity) Management stays close to workers on all dimensions (minimize propinquity) Decisions are made at the appropriate level Decisions are made at the appropriate level Strong bonds are encouraged within work groups Strong bonds are encouraged within work groups Work is organized around small groups Sub optimization is minimized through relentless and constant communication across all groups Managements role is to coach, teach, plan, communicate and lead, not make decisions for employees about their processes. Hierarchical status is minimized (ischeal tuberosites are seldom displayed) People feel good about achievement and must be given opportunities to excel

26 Assessing and Fostering Teamwork Understand the difference between groups and teams. Know the difference between Intact and Ad hoc teams and how they should be treated different. Focus and educate the teams on the interpersonal side of teamwork. Understand the stages of team development. Understand the characteristics of an effective team. Understand the impacts of the team efforts on group processes. Make sure the team has defined measurable to achieve. Diagram team communication. Institute a team balance index system. Institute a team directionality/responsiveness Index. Develop a team communications profile. Reward the team for job’s well done and objectives accomplished.

27 Building Organizational Consensus and Overcoming Resistance to Change Understand the (3) key natural progression steps of organizational change  Equilibrium  Chaos  Reintegration

28 Building Organizational Consensus and Overcoming Resistance to Change (cont) Read case studies on how resistance to change was overcome at other companies. There is no one single answer. Understand what organizational consensus is. Organizational Consensus is when:  Employees understand a situation  Employees have been listen to by others in a group where the individuals have given there input  When employees listened to others  When team members agree to support whatever the team decides  When the team or group agrees to support the decision, not because it agrees with it, but because each member is committed to the group itself

29 (2) Key Elements to Successful Process Improvement Process Improvement is best accomplished when the focus is on improving micro processes day in and day out. Process Improvement is best accomplished when the focus is on improving micro processes day in and day out. Process Improvement requires a proactive attitude approach to problem solving versus results orientation approach Process Improvement requires a proactive attitude approach to problem solving versus results orientation approach

30 Process Elements People People Information Information Materials Materials Machines Machines Computers Computers Energy Energy Policies Policies Procedures Procedures Skills Skills Forms Forms Environment Environment Corporate Culture Corporate Culture Work Motion System Changes Changed Materials Finished Products Scrap New Information New Systems Less energy InputsEventsOutputs

31 Characteristics of Process versus Results Orientated Attitude Processes Prevent problems Prevent problems Planning, Patience Planning, Patience Evolutionary Evolutionary Employees Do Employees Do Small Steps Small Steps Everybody Helps Everybody Helps Results Fix Problems Fight Fires Revolutionary Management Does Giant Leap Dirty Harry Syndrome

32 Types or Levels of Processes Mega Processes Mega Processes ( Label for a collection of Macro Processes) Macro Processes Macro Processes (A Process that has a Few Thousands of Micro Processes) Micro Processes Micro Processes (Small Processes) (Small Processes)

33 How are Mega and Macro Processes Improved? By letting the micro process workers define the micro process details. By letting the micro process workers define the micro process details. By letting the micro process decision making to be done by only those who know enough to do it correctly, the micro process workers. By letting the micro process decision making to be done by only those who know enough to do it correctly, the micro process workers.

34 Facts about Processes Improvement? Processes are improved or changed on a continuum. Processes are improved or changed on a continuum. Process changes will effect both micro and macro process systems. Process changes will effect both micro and macro process systems. Process improvement happens step by step. Process improvement happens step by step.

35 Paradigms of Leadership Styles Micro Process Oriented versus Macro Process Oriented Micro Process Orientation (Management Leads/Employees Do) Focus organization on low technology and conventional methods. Small constant improvements, attention to detail, focus on adaptability. Management teaches and coaches empowered employees while focusing on the next source of mega process innovation. Values people and group effort and insures that the use of teams and groups are the basis for on-going improvement. Macro Process Orientation (Management Does) Focuses on high technology and cutting edge methods. Grand plans with disruptive changes, focus on management creativity. Employees treated as worker drones who must be controlled and watched while management brainstorms salvation. Looks to technology for big gains, prefers to buy answers rather than eat carrots.

36 Difference Between When Process Improvement Becomes Re-Engineering When the change begins to impact both micro and macro processes units. When the change begins to impact both micro and macro processes units. When changes move beyond affecting only the elements of a single process or two. When changes move beyond affecting only the elements of a single process or two. Reengineering is more associated with management led, but worker implemented wholesale changes in macro processes. Reengineering is more associated with management led, but worker implemented wholesale changes in macro processes.

37 (2) Philosophies of Dealing with Errors Wait for them to occur and then react Wait for them to occur and then react Implementing a defect prevention approach to attack errors before the occur Implementing a defect prevention approach to attack errors before the occur

38 How to Implement a Defect Prevention Values in Your Organization 1. Planning ahead to design your product or service for low cost, high quality, defect free manufacture for delivery. 2. Rigorously training employees in job skills so they will not make technical errors. 3. Continuously focusing on the elimination of all sources of micro process errors and flaws. 4. Working to improve the overall efficiency of the total system.

39 How to Implement a Defect Prevention Values in Your Organization 1. Planning ahead to design your product or service for low cost, high quality, defect free manufacture for delivery. 2. Rigorously training employees in job skills so they will not make technical errors. 3. Continuously focusing on the elimination of all sources of micro process errors and flaws. 4. Working to improve the overall efficiency of the total system. 5. To design the organizational structure to demand, expect, coach, structure and facilate each and every employee to find ways to more effectively preform day to day processes. 6. Don’t denigrate the impact of cumulative small improvements on competitiveness and defect elimination.

40 True Employee Empowerment From A Enlighten Lean Leader Perspective Providing employees with the resources necessary to pursue Continuous Improvement. Providing employees with the resources necessary to pursue Continuous Improvement. Allowing employees to be involved in decisions that affect their work areas and jobs. Allowing employees to be involved in decisions that affect their work areas and jobs. Allows all levels of employees to have autonomy to make the appropriate decisions about their micro processes. Allows all levels of employees to have autonomy to make the appropriate decisions about their micro processes. Providing the employees with the training and coaching needed so that their technical and interpersonal skills are at the top of the level to excel in their jobs. Providing the employees with the training and coaching needed so that their technical and interpersonal skills are at the top of the level to excel in their jobs. To treat employees with the same respect and assumption of intelligence and motivation that management accords to itself. To treat employees with the same respect and assumption of intelligence and motivation that management accords to itself.

41 Enlighten Problem Solving The use of Deming's Plan, Do Check Act Cycle. The use of Deming's Plan, Do Check Act Cycle. Understanding that Problem Solving and Process Improvement is a never ending cycle. Understanding that Problem Solving and Process Improvement is a never ending cycle. All process changes must be carefully planned (PLAN), tested (DO), evaluated (CHECK) before they are implemented (ACT). All process changes must be carefully planned (PLAN), tested (DO), evaluated (CHECK) before they are implemented (ACT).

42 Plan-Do-Check-Act It’s a (12) Step Plan Plan Do Check Act (9) Key Steps (1) Key Step

43 Plan-Do-Check-Act It’s a (12) Step Plan Not a (4) Step Plan!!! 1.Identify Outputs 2.Identify Customers 3.Identify Customer Requirements 4.Translate Customer Requirements to Specifications 5.Flowchart the “As Is” Work Flow 6.Identify the Key Parameters and Select Metrics 7.Determine Process Capability 8.Identify Benchmarks 9.Identify Improvement Opportunities 10.Implement Improvements on a Test Basis 11.Evaluate Effectiveness 12.Institutionalize Improvements and or Cycle Back to Step (9)

44 The (7) Quality Control Tools That are Used with The PDCA System for Process Improvement 1.Run Charts 2.Histograms 3.Control Charts 4.Cause and Effect Diagrams 5.Flowcharts 6.Pareto Charts 7.Scatter Diagrams

45 Process Improvement “Poka-yoke” Concepts 1.The incorporation of devices in a process that detect-sense and identify errors before they occur. 2.Have an assumption that a re-occurring error has either happened or will happen. 3.Focus on predicting the occurrence of the error before it occurs so corrective action can be ready and waiting. 4.Always provide a warning that an error is occurring so that immediate response is possible.

46 Types of “Poka-yoke” Devices Used Guide pins Limit Switches Timers Photocells Checklist Alarms Shut Off Switches Left Over Part Baskets Scales Counters Templates Knock Out Jigs

47 Visioning Visioning The plan that outlines the transformation from management by crisis to enlightened leadership at some indeterminate but foreseeable future. A currently conceived end sate of the organizations hopes and dreams. A statement to provide employees with a personal, emotional connection to the bigger picture of what the organization is striving to achieve. Something that allows the employees to stretch and make the emotional connection so they can connect it with a “Pride of Ownership”. Unique to every organization as there is no one exact approach that right for every situation, organization, industry or leader.

48 Recommended Steps to Follow When Implementing a New Company Vision Recommended Steps to Follow When Implementing a New Company Vision The vision is not required to have immediate implementation when management changes. The Leader must first bring the compassion for other people, before outlining the vision. The leader must understand the battle to be fought before designing his/her army. The vision must be connected to the day to day operation The vision should be defined and stated to employees about six months after taking over and organization. The vision should not be judged not on it’s wording, grammatical correctness or inspirational content but on how well it becomes accepted, assumed and practiced element of the organizational culture, management system and leadership philosophy.

49 Key Characteristics of a Good Vision Key Characteristics of a Good Vision 1.It’s demonstrated by the behavior of the leaders and employees. 2.Behavior that supports the vision is rewarded. 3.It is Emotionally Inspiring. 4.It creates Group Belonging and Need Satisfaction. 5.It Demands Excellence. 6.It provides guidance for Behaviors in Unforeseen Situations and Empowers Employees to Act. 7.It is connected to the marketplace and its Customers. 8.It is enduring but not flexible. 9.It must recognize that the organization is full of hard working, creative, determined people who are just waiting to be lead to excellence. 10.The must be a realization that the organization the vision is to be presented to is rife with cancer of traditional management.

50 Key’s To Making Vision Work Key’s To Making Vision Work 1.Ensure that you have examples of the unspoken vision in action and reward and praise them loudly, prominently and aggressively. 2.Be consistent in rewarding new vision supporting behaviors. 3.Discourage and punish counter vision behaviors immediately and consistently from day one. 4.Get honest feedback as to how well the leader is “walking the walk” after having “talked the talk”. 5.Look for two or three outspoken radicals for feedback as they are usually brutally candid, cannot suppress candor and will even risk alienating executives. However these folks usually see a lot at a very real level and are not afraid to talk about it. 6.Meet with employees in small groups on a regular basis to obtain feedback. 7.Go out into the organization and give short informal five to ten minute campaign “stump speeches” to various groups in the organization to share the vision.

51 Benchmarking Benchmarking What is Benchmarking: It is the analysis of a performance level or process output which is impressive, if not the best that can be found to compare your organization against It is about having the information about the processes that produced the impressive performance, so that your organization can potentially implement these processes.

52 The Steps to Benchmarking The Steps to Benchmarking 1.Identify Key Macro Processes 2.Analyze Key Macro Processes 3.Analyze Key Micro Processes 4.Identify Key Metrics For Data Collection 5.Identify Key Sources of Information 6.Determine How to Collect the Data 7.Collect the Data 8.Analyze the Data 9.Establish Goals and Develop a Plan 10.Develop Micro Process Metrics 11.Use Kaizen to Make Changes 12.Incorporate Benchmarking into Planning 13.Use Benchmarks to Define the Vision

53 Understanding Customers and Customer Satisfaction Understanding Customers and Customer Satisfaction Customers will be satisfied and consider you company world class if your organization: Maximizes there effectiveness and output as an organization Satisfy (at the very least) or astound (at your very best) your customer base

54 The Life Cycle of Customer Satisfaction According to the Kano Model 1.Excitement 2.Performance 3.Basic

55 The Difference Between the Life Cycles Excitement: The stage where the customer doesn’t know what to expect or receives an unexpected feature or product and is delighted with product or feature Performance: The stage where the customer expects a certain level of performance from the product or feature Basic: The stage where the product is mature and the customer knows the product is easily obtainable and the have specific performance expectations

56 The Difference Between Internal and External Customer Requirements External Customer Requirements Make life easier Save them time and labor Easy to Use Desired features available Defect free Reasonable cost for value Good Service Internal Customer Requirements Easy to Handle There when you need it Understand help and data available Able to see and feel the customers Defect Free Save them time and labor

57 Internal Roadblocks to Achieving Customer Satisfaction Having to battle their way through a lack of information and involvement Outdated or lacking systems Massive paperwork Bureaucratic approval channels Internal sources short changing their responsibilities Internal sources assuming they know what the customer wants. Generalization of the customer base Lack of systems to get honest internal customer feedback

58 Metric Maps Metric Maps A visual communication system that shows the organizational muscle to the organizational body A cascading series of key measurements that focus on details to predict or cause the metrics above them A tool that employees and management uses to measure the smallest level of detail in key processes so employees know what to work on. A tool that provides immediate feedback on key processes so that problems, resources, coaching and leadership can be applied to correct the process problem or issue

59 Developing Metric Maps The CEO/President develops the highest level metrics for the organization. The employees who work on the micro processes are the ones to fill the metrics out. Make sure the metrics are reviewed daily by the highest level of management so employees know that upper management is concerned with their daily job function. Do ever let the metric stop being filled out and forgotten about. This is a kiss of death to process improvement. Make sure the proper metrics are being selected or tracked. Realize that employees prefrom hundreds of task each day to achieve his/her job that a supervisor or manger never see and not everything can be tracked.

60 Making Metric Maps Work To implement maps this is going to take time and investment. Make sure every plan, task problem, achievement and issue is driven or evaluated in terms of its impact to the metrics. The maps should be updated at a minimum weekly by preferably daily. The must be reviewed and attended to as the first and last item in every meeting. Every month or two each team or group that is working on their metrics needs to be brought up to speed in a meeting as to how their metrics are effecting up-line metrics Make sure the metrics for each level of the organization are posted for viewing for every tem, area or department in a conspicuous area. Make sure the metrics are viewed as more important to your organizations success than all the product displays in the front lobby. Make sure the metric format is the same everywhere.. Review the metrics 5-10 minutes every day with team and area personal that impact the metric.

61 Recognizing and Rewarding Achievement Performance and Appraisal Systems Realize that Performance appraisals and merit pay increases are hard to reconcile with lean leadership. These systems are artifacts of traditional, authoritarian, Big Brother will let you know how you are doing and you better be doing well caste based management style. They are a system where a authority figure evaluates a subordinates performance, usually annually and arrives at a determination of how a subordinate has preformed over some time, usually a year. They are systems that where the determination of quality, quantity, attitude is adjusted to fit into a forced distribution as required by the organizations compensation department.

62 The Purpose of a Standard Reward System Set objective standards of Performance and Evaluation Reward Past Productivity Motivate Future Productivity Identify and Monitor performance problems Make Rewards Proportional to Achievement Identify Employee Development Needs

63 Some Reasons Why Performance and Appraisal Systems Do Not Work All sorts of of different supervisors, each with different training, experiences, people skills, business knowledge, and familiarity with what there their subordinates are doing are told to place different groups of employees on the same scale. Each supervisor has a different philosophy of people in general, vary expectations about specific people and types of people, each with a different personality. Each evaluator sees different attributes, weighs them differently, and has a different agenda bei8ng served by the appraisal process. Some supervisors and managers are tough assessors, others are easy. Some supervisors and managers reward effort and other s don’t. Employees who in the past got good rating continue to get good ratings and those who got bad ratings continue to get bad ratings. What supervisor really knows what’s going on? How many hours does the supervisor actually spend closely observing an employees behavior and analyzing the cause and effect of that behavior. Money is not one of the five basic needs of survival thus it does not work as a motivator

64 More Reasons Why Performance and Appraisal Systems Do Not Work Many employees will view that there inequities in the system, as non performers getting rewarded on a basis of luck or special relationships. People will only feel like superstars and will only work like superstars, when you treat them like superstars and they know you expect them to be superstars. There is a time bases problem as humans tend to notice, recall or attend to recent events than more past events. If organizations reward employees for obtaining objectives and punish them for missing them, employees will tend to be inclined not to be risk takers when the reward is not attractive enough to inspire risk taking. Performance appraisals make it more difficult to get rid of poor performers. Appraisals hurt teamwork, After all, if it’s a contest why help a foe!! Almost all people universally say that they find appraisals humiliating, degrading, off target, ill informed and insulting. “360” degree feedback will only allow employees not pick people that are potentially dangerous to them.

65 Alternatives to Performance and Appraisal Systems Give each employee no matter what level in the organization exactly the same salary increase and or bonus each year. Develop a formula which is based on the the most meaningful metric maps. Use communication that “we are all in this together” team spirit. Executives should never be given larger dollar amount of rewards in terms of the formula to eliminate hostility. Pay employees at least in 65 th percentile of similarly experienced and skilled people in other companies in the same geographic region. Update the pay scales every two years to make sure employees are not falling behind their peers in other organizations.

66 Pull Systems Realize there is no “Quick Fix” to implementing Lean Leadership and systems, it does not exist. You have to pay the price to get to the next level. Just in Time is a system that applies to all processes within an organization, not just the supply delivery. JIT a system that produces “exactly what you need, when you need it” There are many cases which the optimum lot size for a particular operation is greater than one, so don’t take the “one” of one by one as a universal constant. Less in terms of inventory or lot sizes is always better if it improves overall costs, productivity and cycle time. There are expectations, when technology, availability of resources, and process limits profit very small lot sizes A Pull system forces a great many enlighten management practices and leadership actions at all levels of the organization.

67 Pull Systems It’s a straightforward way to begin to move any organization in the direction of enlightenment in advanced of total insight, and will contribute to decreased cost immediately. It decreases cycle times in becoming the number one competitive differentiator in today's world markets-victory goes to the swift and responsive. There is only one way to assure optimum speed and lowest cost in paper, data, service and product flow, a pull operating system. The primary mission of a pull system is to find and eliminate waste.

68 The Three Categories of Waste and it’s definition! Waste of people Waste of Quantity Waste of Quality “Waste is defined as any non value added activity or activities that add nothing to the value of the product or service”. They could be eliminated and product or service could still be produced.

69 The Seven Types of Waste People Waste Motion Waiting Over Processing Quantity Waste Inventory or WIP Moving Things Making to Much Quality Waste Fixing Defects

70 The Mechanism for Eliminating People Waste WORKPLACE MANAGEMENT (4) Key Techniques 1.Standardized work 2.Workplace organization (5S Program) 3.Kaizen 4.Implementing the 20 Keys

71 The Mechanism for Eliminating the Quantity Waste Just In Time (4) Key Techniques 1.Leveling materials through the system 2.Kanban Systems 3.SMED Single Minute Exchange of Dies 4.TPM Total Productive Maintenance System

72 The Mechanism for Eliminating the Quality Waste Autonomation (3) Key Techniques 1.Implement the use of machines and equipment that are not totally fully automated. 2.Implement Poka Yoke or system to detect errors and stop itself when the error occurs 3.Allow empowerment of employees to take whatever action is necessary to allow operations to resume and to make a decision about a defective product and continue to operate

73 More Pull System “Goodies” Pull Systems are low tech and organized around and concentrated on, small low productivity improvements in processes. Technology is not seen as problem solver but as a tool that is required to support the fast moving system created by small process improvements and waste reductions. Upstream processes never push output downstream to the next process. Material only moves when the downstream process asks for it or “pulls” the output towards itself by means of Kanban or other signals.

74 Information on Kanban Systems The come in various shapes and sizes and serve many purposes. There are many types such as WIP Kanbans, Transportation Kanbans, Buffer Kanbans and so on.. Design processes based on TAKT time and try to level the output of each step in the process to the same output.. Design operator activities to be leveled as close to the TAKT time as possible even if this means elimination of an operator in the process. There are two key rules to Kanban Systems:  Nothing may move without a kanban accounting for it  Only production control and or scheduling personnel can use create kanbans

75 Standardized Work or Kaizen Event 1.The use of TAKT time and machine and operator cycle time leveling. 2.The focus on Work in Process. 3.The use of Work Instructions. 4.It is focused on the actions of a single worker to produce a single piece of output and is especially powerful when the work is repetitive. 5.Operator functions are recorded using a Standardized work sheet or sometimes a “spaghetti diagram”. 6.The sheets are developed by the operators preforming the task. 7.Information is used to create a Standardized Work Combination Sheet. 8.SWCS are done separately for all workers even if multiple operators exist and are completed and time studied by the operators performing the task.

76 Kaizen Action Sheet A reporting out document used after a Kaizen Event: 1.It forces the person making the suggestion to study the work area and process in order to draw a before and after sketch no matter how crude. 2.It keeps the suggestions within a work group and it is unusual that casual tanperers will change the KAS sheet. 3.It provides a tracking mechanism. 4.It provides a handy method of conveying changes to engineers or other support personnel. 5.It forces people developing the suggestions to think about the problem.

77 SMED Single Minute Exchange of Dies The analysis and implementing of equipment and process changes to reduce the setup and changeover time of changes tools in and out of machines. Die exchange is the generic term for removing a drill, cutter, punch, mold or die from a machine and replacing it with another type on machines that are capable of producing more than one part. It’s an extension of the Standardized Work Sheet but applied to the tool changeover instead of the operator. Intended to reduce lot sizes because the larger the lot the more inventory must be purchased and stored, lost, damaged or made obsolete, more space required, more storage materials must be purchased and labor and handling cost increase. Broken down into internal and external actions and doing the external activities before the tool is actually changed. Improvements are made using a three stage approach to time reduction.

78 Visual Systems and its Key Elements A system in that the status of the system is clearly evident through easy to observe visual signals. Labeling of everything from parts, bins, areas,machines, cabinets, tools, departments to even employee name badges. Proven to get more quality improvement and rework labor reduction from labeling than any other single improvement. It’s a form of error proofing in it’s lowest tech, lowest cost and easiest method. Potential use of lights to show when work stations are getting low on parts red,yellow,green. A Kaizen Display board that shows all the results of the Kaizen events, team metrics, cross functional training matrix, customer feedback reports and other key information. The board is also used for those 5-10 minute informational kick-off meetings.

79 Daily Kick Off Team Meetings To inform people about such areas as: 1.How the group or department and plant performed yesterday. 2.Activities planned for the group today. 3.Who will and will not be available for the day. 4.Any training that will be done if they have time. 5.Any changes in status of improvements. 6.Any changes to SWCS. 7.Airing of any quality problems.

80 Lean Leadership on the Front Lines Don’t expect that you can change your organization unless you’re the CEO/President but your area of responsibility will improve. Change happens in the trenches but must be lead from the top. You can almost guarantee world class success in those areas of the organization that you lead. Lead change only in those areas where you can exert significant and long lasting influence. It helps spread the word to other areas. If you wish to change an organization you must be intimately aware of group dynamics and resistance to change and must appreciate that you’re up against a an unthinking, self organizing system.

81 (8) Key Rules to Follow When Attempting to Lead an Organization Into a Lean Culture 1.You cannot exactly predict every outcome and paying attention to the details can spell the difference between success and disaster. 2.Control from the bottom up as complex systems operate as the sum of the actions and interactions of individual entities operating in real time. 3.Focus on Teaching New Rules Rather than Measuring Outcomes.Remember most of what happens in a complex system goes unreported or unnoticed. 4.Entity Excellence Comes Only From Challenge and Achievement. Entities or people only change and improve when they are challenged. 5.Grow by Chunking. Change often fails because the initiator tries to hard, too fast and with two large a part of the organization. 6.Encourage Errors. Mistakes are going to happen, but be afraid to fail a few times. 7.Complex Systems Cannot be Accurately Characterized by One Measure. There is no one measure of organizational health. 8.It is impossible to optimize Every measure of a complex system..

82 (9) Key Things Not to Do when trying to become A Lean Leader 1.Don’t let yourself get talked out of doing it. 2.Don’t give it a name 3.Don make a speech or a company wide announcement 4.Do not launch a massive training program 5.Do not hire a consulting group to “do It” 6.Do not make it the responsibility of “ one area” 7.Do not isolate it from the day to day business 8.Do not order coffee cups, banners, etc 9.Do not worry if you are not sure what you are doing

83 The Topics Covered Understanding the impact of human relationships in the business world and how business leaders think today. Understanding the lean challenge from a human relationship perspective Understanding human motivation Understanding group dynamics Understanding Organizational Dynamics and Organizational Evolution The Organizational Structure of Enlightened Leadership Assessing and Fostering Teamwork in Organizations Building Organizational Consensus and Overcoming Resistance to Change Process Improvement and Re-engineering Visioning Benchmarking Understanding Customers and What Customer Satisfaction is All About Understanding Metric Maps Recognizing and Rewarding Achievement Understanding Pull System Understanding Kanban Systems Single Minute Exchange of Dies What is Waste Visual Management Systems Lean Leadership on the Front Lines


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