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Lean Leadership

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Title: Lean Leadership


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 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

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.
  • Embrace change and spend little time on rituals
    and move fast
  • Revel in victory, not in closing the deal!
  • Share commandership working within a brotherhood
    that values and involves all warriors.
  • Allow others to be creative, emotionally charged
    and let them gain recognition.
  • Never forsake your own personal joy over
    professional achievement.
  • 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.

4
Todays Business Leader Code of Behavior
  • Hover about the boss, but dont be seen.
  • Bestow compliments on higher up bosses, but never
    on subordinates.
  • Seek additional assignments.
  • Learn how to politic well.
  • Policies and structure can fix all human behavior
    if they are forced to follow it.
  • Management by superstitious learning.

5
Three Primary Skills For Lean Leaders
  • In Order of Priority
  • People Skills
  • Conceptual Skills
  • Technical Skills

6
Definition of the Skills
  • People
  • Interpersonal interactions such as giving and
    receiving instructions,negotiating, conflict
    resolution, team work and group decision making.
  • Conceptual Skills
  • Planning the future activities and monitoring
    current activities and reconciling the two.
  • 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
  • Belonging/Love
  • Power
  • Fun
  • Freedom

9
Results from feeding the basic needs versus
starving the basic needs
  • Results from Feeding the Basic Needs
  • Activities that benefit an organization
  • Results from Not Feeding the Basic Needs
  • 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.
  • 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 a set of roles for each
    individual in the group.
  • 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.

13
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.
  • 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.
  • 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.
  • 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.
  • Managers and employees begin to focus on process
    needs other than focusing in on the organization
    passion and vision.

14
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.
  • 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.
  • 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 dont 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
  • 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.
  • 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
  • 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.

16
Characteristics of Traditional Organization
  • Act like everyone else in your group
  • Keep your boss happy
  • Make sure the authority figures like you
  • Dont make your group look bad
  • Dont deliver bad news
  • Decisions are made at the top
  • Dont find fault an authority figure will tell
    you in theres a problem
  • Dont 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 Dont make trouble with other
groups, mind you own business Dont attempt to
change norms set by higher status groups, you
cant fight city hall
17
Sub Optimization Starts to Occur
  • When competition occurs between groups this is
    considered evil to a lean organizational
    effectiveness.
  • When there is competition, there are winners and
    losers.
  • The losers human need satisfactions of the losers
    do not get met.
  • Losers will attribute its losses to factors
    outside of its 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.
  • 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.

18
Characteristics of Group Think
  • Intense loyalty to the group.
  • The group maintains isolation.
  • The group has little tolerance for criticism.
  • The group sticks with decisions in spite of bad
    results.
  • The group avoids conflict among group members.
  • Extreme conformity of members to the groups
    decision is expected.
  • Negative data is discounted.
  • 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.
  • 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.
  • Lead in stead of being a caretaker of whatever
    develops.
  • 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 the first steps to begin to evolve the
    organization into a structure thats 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 4 Use of the Tools, tactics, techniques and
approaches for maximizing system and process
efficiency and productivity Kaizen Events
LEVEL 3 Developing and implementing Strategies
for focusing organizations for maximum
productivity and empowerment
LEVEL 2 Structuring the basic knowledge to engage
the people in the organization Creating the
Vision
LEVEL 1 Understanding the basic knowledge upon
which all human behavior efforts must be based
21
Level 1 Key Elements
  • 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.
  • 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 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.
  • 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.

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

24
Level 4 Key Elements
  • Implement the Lean Tools, Tactics,
    Techniques and approaches for maximizing system
    and process efficiency.
  • Metric Maps
  • Pareto Charts
  • Check Sheets
  • Focused Communicated Planning
  • Consensus Decision making
  • Flow charts
  • Structured team oriented problem solving
  • Process re-engineering
  • QFD
  • One by one piece flow
  • SMED
  • DOE
  • SPC
  • Extensive Sharing of Cost and Performance data at
    all levels
  • Pokayoke
  • Empowered, well trained employees
  • FMEA

25
Characteristics of Lean Organization
  • Properly lead people who want to work hard
  • Competition within the group or organization is
    never encouraged
  • Work groups are encouraged to work closely with
    other groups
  • Disagreements are not bad, they surface issues
    that are not yet resolved
  • Management stays close to workers on all
    dimensions (minimize propinquity)
  • Decisions are made at the appropriate level
  • 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 jobs 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 requires a proactive attitude
    approach to problem solving versus results
    orientation approach

30
Process Elements
Inputs
Events
Outputs
  • People
  • Information
  • Materials
  • Machines
  • Computers
  • Energy
  • Policies
  • Procedures
  • Skills
  • Forms
  • Environment
  • Corporate Culture

Work Motion System Changes
Changed Materials Finished Products Scrap New
Information New Systems Less energy
31
Characteristics of Process versus Results
Orientated Attitude
  • Processes
  • Prevent problems
  • Planning, Patience
  • Evolutionary
  • Employees Do
  • Small Steps
  • Everybody Helps
  • Results
  • Fix Problems
  • Fight Fires
  • Revolutionary
  • Management Does
  • Giant Leap
  • Dirty Harry Syndrome

32
Types or Levels of Processes
  • Mega Processes
  • ( Label for a collection of Macro Processes)
  • Macro Processes
  • (A Process that has a Few Thousands of Micro
    Processes)
  • Micro 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 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.
  • Process changes will effect both micro and macro
    process systems.
  • 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 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.

37
(2) Philosophies of Dealing with Errors
  • Wait for them to occur and then react
  • 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. Dont 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.
  • 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.
  • 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 .

41
Enlighten Problem Solving
  • The use of Deming's Plan, Do Check Act 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).

42
Plan-Do-Check-ActIts a (12) Step Plan
(1) Key Step
Plan
Act
(9) Key Steps
(1) Key Step
Do
Check
(1) Key Step
43
Plan-Do-Check-ActIts 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
  • The incorporation of devices in a process that
    detect-sense and identify errors before they
    occur.
  • Have an assumption that a re-occurring error has
    either happened or will happen.
  • Focus on predicting the occurrence of the error
    before it occurs so corrective action can be
    ready and waiting.
  • 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 Checkl
ist Alarms
Shut Off Switches Left Over Part
Baskets Scales Counters Templates Knock Out Jigs
47
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
  • 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 its
    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
  1. Its 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
Keys 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
  • 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
  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
  • 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
doesnt 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
  • 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 AchievementPerformance
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 dont.
  • 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 whats 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 its 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 65th 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 dont 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
  • Its 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 its 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
  • Standardized work
  • Workplace organization (5S Program)
  • Kaizen
  • Implementing the 20 Keys

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

72
The Mechanism for Eliminating the Quality Waste
  • Autonomation (3) Key Techniques
  • Implement the use of machines and equipment that
    are not totally fully automated.
  • Implement Poka Yoke or system to detect errors
    and stop itself when the error occurs
  • 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.

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Kaizen Action Sheet
  • A reporting out document used after a Kaizen
    Event
  • 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.
  • It keeps the suggestions within a work group and
    it is unusual that casual tanperers will change
    the KAS sheet.
  • It provides a tracking mechanism.
  • It provides a handy method of conveying changes
    to engineers or other support personnel.
  • 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.
  • Its 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.
  • Its a form of error proofing in its 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
  • How the group or department and plant performed
    yesterday.
  • Activities planned for the group today.
  • Who will and will not be available for the day.
  • Any training that will be done if they have time.
  • Any changes in status of improvements.
  • Any changes to SWCS.
  • Airing of any quality problems.

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Lean Leadership on the Front Lines
  • Dont expect that you can change your
    organization unless youre 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 youre 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..

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(9) Key Things Not to Do when trying to become A
Lean Leader
  1. Dont let yourself get talked out of doing it.
  2. Dont 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

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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
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