1. Implementation “Show-Stoppers,” Roadblocks, and Barriers

2.  Before implementation can begin, it is necessary to have completed two prerequisites:  Top-down leadership  Employee empowerment 2

3.  Any improvement effort must have management support  Leaders are responsible for: ◦ Creating and communicating the company’s vision, direction, and strategy. ◦ Hands-on leadership. ◦ Empowering the workforce. ◦ Vision of long-term payback. ◦ Creating a culture change.  The above has to be in place for WCM to begin – without these you can make things worst “Manufacturing Insanity” is defined as doing the same thing day after day, and expecting different results. 3 Change = Improvement

4.  A supporting management base is required.  This level has the toughest job implementing continuous improvement. ◦ Must be supportive of the change ◦ Top leadership must reduce conflicting metrics  These leaders must understand: ◦ Elimination of all waste is required for development of customer satisfaction. ◦ Communication facilitates teamwork - everyone needs the corporate playbook. ◦ Be prepared to repeat the message – many times ◦ WCM desire is required – draw a line in the sand and no going back. 4

5. Culture - the unwritten rules of behavior, or norms, that are used to shape and guide behavior, is shared by some subset of organization members and is taught to all new members of the company.  Implementing change requires every department to “think” differently  Once this occurs, then we can achieve improvement results  This can be a very difficult task - organizational culture was formed over years of interaction between the participants in the organization. 5 Change = Improvement Have you heard of “The Toyota Way?”

6.  Accomplished through hands-on leadership from the top level  For people to consider culture change, usually a significant event must occur ◦ Even then – culture change can be tough  Everyone must understand the vision, direction, and strategy – at the same time  An empowered workforce must be established 6 Change = Improvement Think different Be different See different results

7. Three steps to change 1. You must first understand the current culture - the way things are now. 2. Decide where you want to go ◦ define strategic direction ◦ create a vision statement ◦ decide what the organizational culture should look like to support the vision statement 3. Finally, the individuals in the organization must decide to change their behavior ◦ This is the hardest step in culture change 7 Change = Improvement

8. 8 Fear Zone Learning Zone Status Quo Fear Zone Learning Zone Status Quo

9. 1. Establishing a Sense of Urgency 2. Form a Powerful Guiding Coalition 3. Creating a Vision 4. Communicating the Vision 5. Empowering Others to Act on the Vision 6. Planning for and Creating Short-term Wins 7. Consolidating Improvements and Producing Still More Change 8. Institutionalizing New Approaches From “Leading Change” by John P. Kotter 9

10.  This is the second show-stopper. ◦ Entire team must pull in one direction, with one agenda. ◦ Provides employees with the opportunity to influence results while having a sense of accountability and ownership. 10

11. Lean Production Six Sigma Quality Six Sigma Quality Workplace safety, order, cleanliness Workplace safety, order, cleanliness Flow and Pull Production Flow and Pull Production Empowered Teams Empowered Teams Visual Management Visual Management Pursuit of Perfection Pursuit of Perfection The workplace is safe, orderly, and very clean Products are built “Just In Time,” to customer rate based demand Six Sigma Quality is built into the product and the process Member teams are empowered to make key decisions Visual Management to track performance and open the company to all people There is a relentless pursuit of perfection 11

12.  “Empowerment means employees use their knowledge and skills to make decisions and act responsibly in pursuit of company goals.” 12

13.  Occurs in an environment where the following exists: ◦ Leadership vs. management ◦ Employees are recognized as the most valuable resource ◦ Teamwork ◦ Decision making is delegated ◦ Openness, initiative, and risk taking are promoted ◦ Accountability, credit, responsibility, and ownership are shared 13

14. Empowerment Is:Empowerment Is Not: Being an active participant in process improvement activities Showing up for THEIR process improvement activity, or, showing up and not participating Identifying problems and being part of the solutionIdentifying problems and complaining about them Making team decisions WITH othersMaking team decisions FOR others Creating and using meaningful measures Getting around the system of measurements, or, refusing to measure Communicating shortcomingsHoping shortcomings will go unnoticed Disagreeing professionallyIgnoring and degrading other’s opinions Making tough decisions based on informationAvoiding making tough decisions Communicating both good news and bad newsFailure to communicate 14

15.  “An empowered team is an identifiable collection of people who know why and how they need each other to accomplish a common purpose to which they are committed.” 15

16. to a group effort – that is what makes a team work, a company work, a society work, a civilization work.” -Vince Lombardi 16

17.  Lack of trust ◦ Poor relationship between management and labor  Poor communication ◦ Supports a lack of trust – leads to unclear expectations ◦ “The problem with communication is the illusion that it has been accomplished" - George Bernard Shaw  Fear ◦ People fear the unknown, therefore resist change ◦ 8. "Drive out fear" - Deming  Lack of training ◦ Inadequate training leads to confusion, frustration, and anger ◦ New expectations set, but the tools to get there are not given  Lack of measurement ◦ What gets measured, gets done. 17

18.  Concrete mindsets and bad habits ◦ We have always done it this way ◦ This is how it has always been  People ◦ Most valuable asset and the largest roadblock  Plant baselines ◦ Need to understand education and culture ◦ Perform a needs assessment – aka a Gap Analysis  Continuous communication ◦ Must repeat the message  Middle management conversion ◦ Goals must be aligned with the top management 18 #1) Not believing things can be better!

19. Force Field Analysis - a useful technique for looking at all the forces for and against a decision  Identify forces favoring WCM implementation  Identify forces opposing WCM implementation 19 For Against

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22.  What reactions do you expect to see from implementing changes?  How will you deal with them? Denial Anger Bargaining Depression Exploration Acceptance Emotional Level Time 22

23. Education and Communication - Inform and educate people about the change effort - Communicate early and often Participation and Involvement - People involved in the change effort are more likely to want change rather than resist it Facilitation and Support - Be supportive - Management support helps members deal with their fear and anxiety during a transition period Negotiation and Agreement - Offer incentives for positive changes Explicit and Implicit Coercion - Forced change of behaviors to expedite a predetermined outcome This is to be used as a last resort 23

24. 24 Citizens Against Virtually Everything – CAVE people an acronym for people who regularly oppose any changes.

25. Results Events Tools Culture Enterprise Alignment Results Architecture Continuous Improvement Lean Excellence

26.  A month? 6 months?? A year??? 10 years????  Where are you starting? ◦ Near world class? ◦ General supplier ◦ Not sure how to spell Lean?  An average company could reach world class in 5-6 years if they are on an aggressive schedule, but should see results beginning in the first year How do we know when we are lean? 26