"The best way to predict your future is to create it! Abraham - - PowerPoint PPT Presentation

the best way to predict your future is to create it
SMART_READER_LITE
LIVE PREVIEW

"The best way to predict your future is to create it! Abraham - - PowerPoint PPT Presentation

"The best way to predict your future is to create it! Abraham Lincoln Welcome And Introductions MLC Overview Red Bead Gemba walks Gemba walk at Subway Long term Lean planning and Hoshin Leaders Standard Work


slide-1
SLIDE 1

"The best way to predict your future is to create it!”

Abraham Lincoln

slide-2
SLIDE 2

Welcome And Introductions MLC Overview Red Bead Gemba walks Gemba walk at Subway Long term Lean planning and Hoshin Leaders Standard Work Culture change and employee engagement systems Wrap Up

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 1

slide-3
SLIDE 3

STANDARD WORK FOR INTRODUCTIONS

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 2

slide-4
SLIDE 4

Lean 101

 History  House  Lean  How it differs  8 Wastes  Standard Work  PDCA/PDSA  Poke Yoke  5S  Kaizen  Auditing

Lean 102

 Value stream

Mapping

 Kanban  Heijunka  SMED  Visual Management  One-Piece Flow  Facility

Assessments

 Facilitation

Lean 103

 Long Term Vision Planning  Process variation  Hoshin Planning  Gemba Walks  Daily Employee Engagement  Leader Standard Work

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 3

slide-5
SLIDE 5

Welcome And Introductions MLC Overview Red Bead Gemba walks Gemba walk at Subway Long term Lean planning and Hoshin Culture change and employee engagement systems Leaders Standard Work Wrap Up

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 4

slide-6
SLIDE 6

Welcome And Introductions MLC Overview Red Bead Gemba walks Gemba walk at Subway Long term Lean planning and Hoshin Leaders Standard Work Culture change and employee engagement systems Wrap Up

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 5

slide-7
SLIDE 7

Red Bead Experiment

Systems thinking for leaders:

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 6

slide-8
SLIDE 8

Welcome And Introductions MLC Overview Red Bead Gemba walks Gemba walk at Subway Long term Lean planning and Hoshin Leaders Standard Work Culture change and employee engagement systems Wrap Up

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 7

slide-9
SLIDE 9
  • By setting the vision (more why than how)

– with dialogue, Policy Deployment (nemawashi) – and setting challenging expectations at the individual level

  • By building systems and processes that cascade

responsibility

– Standard Work, Kaizen, Kanban, Stop-the-Line (Andon), 5S as tools that truly empower – Learning, Development & Hoshin as broader systems

  • By influence and example

– by demonstrating knowledge of the whole system – by getting into the messy details on the shopfloor – by coaching and teaching

  • through PDSA-PDCA cycles of learning & improvement
  • through questioning

Lean Leaders lead in a very different way

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 8

slide-10
SLIDE 10
slide-11
SLIDE 11

 Current state

1.

Mgrs in passive role

2.

Unprepared to participate

3.

Low confidence in lean knowledge

4.

Uncomfortable discussing lean

5.

Feeling incompetent in gemba

6.

Marginal value, check-the- box exercise

 Customer focused future

state

1.

Mgr-driven experience

a.

Get the answer, ace the test

2.

Good prep, mgrs ready to participate and lead

3.

Confident observer in gemba

4.

Competent in lean management system

5.

Comfortable coaching lean management in gemba

6.

Valued, enjoyable investment

  • f time
slide-12
SLIDE 12

 Respect for People and their Workplace, Including Self

 Go And See  Set an Example

 Leading, Getting Feedback, Developing, Planning, Improving

 Engage Team, Think and Communicate Together  Set an Example

 Review A3s, Control Charts, One Pagers - Show Them Yours Too

 Key Measures, KPIs  Adapt Plan and Actions (PDCA)  Set an Example

 Questions to Engage Them and Adapt The Plan

 See next page

slide-13
SLIDE 13

 What problems did we face during the last work day (or shift)?  What can we do to solve these problems?  What tasks do we have to achieve today?  How are we organized to achieve that workload?  Are there any important issues that may affect the jobs today?  What are your desired outcomes?  Are there any special events planned today?  How can I help you?  Who can we be more successful in improvement?  Frontline - Process, Problem Solving, Elimination of Waste  Mid-Level - Resources, Team Development, Unevenness, Overburdening  Executive - Systems, Strategic, Unevenness

slide-14
SLIDE 14

Involve and engage every employee, every day WHY?

slide-15
SLIDE 15
slide-16
SLIDE 16
slide-17
SLIDE 17
slide-18
SLIDE 18
slide-19
SLIDE 19
  • What Gemba Walk processes have you seen

work, or not work!

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 18

slide-20
SLIDE 20

Welcome And Introductions MLC Overview Red Bead Gemba walks Gemba walk at Subway Long term Lean planning and Hoshin Leaders Standard Work Culture change and employee engagement systems Wrap Up

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 19

slide-21
SLIDE 21

 Key Measurable (or Metric) =  KPI = Key Performance Indicator  CSF = Critical Success Factor  Efficient = Doing things right  Effective = Doing the right things

Hoshin = a course, a policy, a plan, an aim, a goal

  • In Japanese means “Shining Needle” of a compass

Kanri = administer, manage, control, charge of, care for

  • In Japanese means “Control /Channeling”, “Reason or Logic”

Policy Deployment The Key Influences of the success of the business. A business measure that focuses action. Not one or the other, we must have BOTH

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 20

slide-22
SLIDE 22

A disciplined system used to promote & manage innovation and continuous improvement. It focuses on the collection & analysis of data for Key Measures that are quickly reviewed and acted upon together by a leader and a team. Pawley Center / OU Definition:

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 21

slide-23
SLIDE 23

 Continuous improvement focuses on obstacles that

hinder success within processes for Team goals

 Hoshin Planning focuses on larger roadblocks in the

system and processes that affect overarching goals

 Hoshin Kanri

 Also known as “Policy Deployment”

 Lean Operating System  Business Operating System

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 22

slide-24
SLIDE 24

 Start at the top by defining goals & strategies  Translate to Key Measures at each level  Means of linking Lean strategy to Lean tactics  Organizational alignment and engagement is required  Feedback from vertical and horizontal dimensions

should cause adaptation of the plan and measures

 Gemba walks by Leaders ensure the Lean strategy is

deployed and adapted with the team

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 23

slide-25
SLIDE 25

WWII Ends 1950 - 1955: Deming

and others work intensely with Japanese industrial leaders on statistical quality & methods

1965:

Bridgestone Tire publishes report on Deming Prize planning techniques.

1980: Hoshin

Planning comes to U.S. via Hewlett Packard’s Japanese division.

Mid-1990’s:

Magna-Donnelly

  • Corp. begins using

Hoshin Planning

1955:

Documented first by Yoji Akao

1950: Deming

and Ishikawa present reports to Japanese industrial leaders

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 24

slide-26
SLIDE 26

 Began in Japan based on the teachings of Deming and

Juran in the 1950’s and 1960’s

 Documented by Yoji Akao, who also created Quality Function Deployment

 System of management in which the strategy is passed

down through the organization

 And adapted by many others

 It is implemented across all areas and is linked to

functional or tactical activities and improvements

 Hoshin planning began in the US in the early 80’s with

companies like Hewlett-Packard, Fuji-Xerox, Texas Instruments, and Toyota.

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 25

slide-27
SLIDE 27

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 26

slide-28
SLIDE 28

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 27

slide-29
SLIDE 29

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 28

slide-30
SLIDE 30

 Creates value through increased alignment, focus, and priority

clarification.

 Is a methodology driven by data and supported by documentation.  Focuses the company’s efforts on the critical few issues impacting

success.

 Is a system of forms and rules that provides structure to the

planning process.

 Encourages employees and leaders to analyze situations, create

plans for improvement, conduct performance checks, and take appropriate action.

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 29

slide-31
SLIDE 31

What is our aim? Who do we serve? What are the priorities? Who is responsible for what? How do we measure success?

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 30

slide-32
SLIDE 32

 Lack of Long Term Aim and Purpose

 The purpose of planning is to create a planning mind-set

more than to deliver a plan - Dwight D. Eisenhower

 Lack of System View  Failure to Plan  Rigid Adherence to Plan  Failure to See Changed Environment

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 31

slide-33
SLIDE 33

 Describes the desired future  Creates purpose and meaning to inspire us  Creates the context for goal setting – to discipline us  Timeless, but regularly reviewed – to remind us  Adaptable to the environment, yet constant  All stakeholders should see how it serves them  The visions for the company, departments, teams, and individuals should

align and mesh into one

 Remember the Abraham Lincoln quote:  “The best way to predict your future is to create it!”

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 32

slide-34
SLIDE 34

Often based on SWOT or SOAR analysis  by Internal and External resources Basic Question:  “In the next 10-25 years what must we

accomplish?”

SMART Goals

 Simple – Measurable – Accountable – Realistic –

Timely

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 33

slide-35
SLIDE 35

Reduce Overtime % to Sales from 10% to 8% by December 31, 2008.

Start with a verb. Clarify what you want to change. Clarify the baseline. Finish with a time constraint. Clarify the finish line.

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 34

slide-36
SLIDE 36

 Overview of an operating system e.g. Hoshin Kanri  Review of the Key Measures for the

plant/department/area/company

 Identification of Key Measurements for individual

areas

 Outline implementation plans

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 35

slide-37
SLIDE 37

 Keep track of overall performance  Systemic, holistic approach  Facilitate Continuous Improvement  Collect data in a standard form that can be easily analyzed and

reviewed

 Use structured and disciplined Problem Solving and Decision Analysis

approach

 Verify effectiveness of activities  Integrates concepts of systems thinking with sales, engineering,

shopfloor, shipping and leadership

 And Supplier base too

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 36

slide-38
SLIDE 38

Goal 1.0

Objective 1.1 Objective 1.2 Objective 1.3

Goal 1.1

Objective 1.1.1 Objective 1.1.2 Objective 1.1.3

Goals 1.1.1

Objective 1.1.1.1 Objective 1.1.1.2 Objective 1.1.1.3

Goal 1.2

Objective 1.2.1 Objective 1.2.2 Objective 1.2.3

Goal 1.3

Objective 1.3.1 Objective 1.3.2 Objective 1.3.3

Corporate Division Regional Goals 1.1.1.1

Objective “X” Objective “X” Objective “X”

Branch

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 37

slide-39
SLIDE 39
  • We must believe we have control, that our effort makes a

difference

  • We must trust that we won’t be hurt for missing a goal
  • We must avoid perfectionism in our thinking.
  • Perfectionists set impossible goals because they “cannot separate the

significant few from the trivial many.”

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 38

slide-40
SLIDE 40

Three types:

 Business Fundamental

 e.g. revenue, gross margin, turnover

 Annual Objective – In place for a single planning

cycle

 Development Objective – To put a process or system

in place that is necessary but not a true objective, such as “clarify market data”

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 39

slide-41
SLIDE 41

Specific course of action that will lead to the

accomplishment of a specific objective

Supported by one or more detailed action

plans

Essential elements:

 Why  What  When  Who

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 40

slide-42
SLIDE 42

Progress is reported, help is offered, changes

are made to ensure the original objectives are achieved and to improve predictability

Part of PDCA – “You get what you check.” Cascades up; team, function, corporation Part of planning calendar – no surprises

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 41

slide-43
SLIDE 43

EVENT Thinking = Focus on Random, Disjointed Events,

PATTERN PATTERN PATTERN PATTERN PATTERN PATTERN

PATTERN Thinking = View of repeating issues, patterns of events or problems

-------------------------------- SYSTEM -------------------------------

SYSTEMS Thinking = Seeing the entire process (Value Stream) as a

connected series of interactions and its impact across functional lines

PARALLEL Thinking = Review of systemic challenges as a team, thinking together

in the same ways at the same time (Edward de Bono - Six Hats Thinking Hats)

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 42

slide-44
SLIDE 44

 Financial and non-financial measures

 These are also called LEADING and LAGGING indicators

 LEADING = a predictive measure that causes, influences or supports

  • ther measures

 LAGGING = historical. e.g., financial measures are after the fact of

costs or revenues and historical in nature, what already happened.

 Relate to the strategic measures of success  Communicate the strategy  Need feedback mechanism

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 43

slide-45
SLIDE 45

Compared to the PDSA/PDCA Cycle

GAIN KNOWLEDGE APPLY KNOWLEDGE CONTINUE TRANSFORMATION

START PHASE START TASK

THEORY + EXPERIENCE = KNOWLEDGE

There are a number of dependencies between the Phases and Tasks which are not depicted. Read books, papers, see videos, and

  • ther sources

In not, then either theory

  • r experience

misleads us. Develop theories and test them in

  • rganization

If theory and experience match, then we have a better theory, after many tests, we have knowledge Then, we can use knowledge to improve

  • ur enterprise

Do the results match the theory?

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 44

slide-46
SLIDE 46

 We PLAN what we want to accomplish over a period of time and what we will do to get there.  We DO something that furthers the strategies and goals developed in our plan.

Action Plan Do Check or Study

We CHECK (Study) the results of our actions to make sure we achieve what we plan. We ACT by developing procedures to ensure our plans continue to be successful and by changing what is needed to achieve the initial goals.

> Plan the

  • bjective.

> Ask questions, make predictions > Plan what, where, when and who to implement the cycle Ron Moen’s article with Cliff Norman on the Deming Cycle has expanded our views of the PDSA learning and improvement cycle. > Carry out the plan. > Document problems and unexpected

  • bservations

> Begin data analysis > Analyze the data completely. > Compare data to predictions > Summarize learning

> Adopt the change. > Adapt the change > Begin the next cycle

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 45

slide-47
SLIDE 47

Relational

(Personnel-related agents of influence)

Functional

(Non-personnel- related agents of influence)

Functional Engagement

Effectiveness of Policies, Processes, and Systems

Functional Alignment

Clarity of Objectives and Responsibilities

Relational Engagement

Leadership Effectiveness

Relational Alignment

Clarity of Organizational Relationships

Alignment

(the Understanding & Placement of the Workforce)

Engagement

(the Motivation & Commitment

  • f the Workforce)

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 46

slide-48
SLIDE 48

 Average organizations  29% fully engaged  19% disengaged  52% partially  Fully Engaged  85% plan to stay  Outperform “partially engaged” by 24%  Disengaged  Cost U.S. businesses $350 Billion A Year  Financial Data – Think Productivity & Profitability

 Operating Margin

 +3.74% in high employee engagement organizations  -2.01% in low employee engagement organizations

 Net Profit Margin

 +2.06% in high employee engagement organizations  -1.38% in low employee engagement organizations

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 47

slide-49
SLIDE 49

Alignment & Adaptation

The Lead Team will set initial focus for the efforts

most critical to success of the enterprise; common purpose, common principles, alignment of communication around the purpose and alignment of understanding by the team.

They will also revisit the purpose, principles,

communications and understanding by feedback from the process coming back into the vision, mission, values and dialogue from the aligning conversations and dialogue with stakeholder subteams.

Engagement

By involving formal and informal leaders (early

adopters and innovators) from each stakeholder group, the Lead Team will set up subteams to engage everyone in the organization it seeks to change or involve in the transition and transformation. Transition Management Teams will be set up to Involve Everyone In Gathering Feedback And Getting That Feedback To The Lead Team.

COMMON PURPOSE

(Vision & Mission)

COMMON PRINCIPLES

(Guiding Values)

Brand, Culture, Performance

COMMUNICATION

(Dialogue)

Results - Opportunities & Issues Processes - Products - Services

UNDERSTANDING

(Alignment)

People - Plans - Action Items Joint Marketing Agreements Operating Agreements Subcontracting Agreements

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 48

slide-50
SLIDE 50

Do: Implement and ensure data is tracking with the chosen method Check: Monitor the results of the specific countermeasures to address root causes and validate your theory Act: Take action on specific items that effect root

  • causes. Standardize the

countermeasures that affect root causes and start the cycle again Plan: Select a measurable goal by understanding the root causes through an experiment

  • r tool, such as 8D,

Fishbone, 5 Whys, etc.

PDCA Cycle

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 49

slide-51
SLIDE 51

Plan Do Check Act Plan Do Check Act Plan Do Check Act Plan Do Check Act Plan Do Check Act Plan Do Check Act Plan Do Check Act Plan Do Check Act Plan Do Check Act Plan Do Check Act

Cascading PDCA Cycle

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 50

slide-52
SLIDE 52

Unhinging the PDSA Steps

This “wave” or “cycle” view of the applied scientific method in PDCA-PDSA is a continuous adaptation to view the learning and improvement cycle. Repeating PDSA steps in a process of continuing to learn and increase knowledge with every cycle is the way PDSA works. You may find other visual methods work better for you and your system or

  • rganization!

P

D S A

P

D A S

P

D A S

Circle or Cycle?

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 51

slide-53
SLIDE 53

 Structured and consistent

 Must have review sessions “set in stone”  These become the basis for continuous improvement AND  Prioritization of resources

 Review of actions impacting key measures

 Problem Solving  Decision Analysis  Lean Initiatives, etc.

 Evaluate system effectiveness  Modify and close gaps.

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 52

slide-54
SLIDE 54

 Commitment to both the direction and the

implementation strategy

 Increases interdepartmental cooperation  Draws upon & reinforces the PDCA cycle in a monthly

[or appropriate] process review

 Provides a common focus for the organization

 Requires feedback and input from the organization  Through vertical and horizontal alignment  Standardized reporting mechanism and format

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 53

slide-55
SLIDE 55

Division/ Region From / To (Month Year) Owner Date (today) Corporate Mission Statement (Vision and Value, based on the current situation) Mission Statement Owner Goal Statement Key Objectives to meet the Goal Objectives Performance measures and deliverables (Who and when [names and dates])

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 54

slide-56
SLIDE 56

 Ties goals from each department to the strategic goals.  Communicates goals throughout the organization.  Provides the means to focus on corporate-wide, strategic goals  Aligns prioritization of resources in pursuit of goals  Provides employees with a standard method and standard tools

by which they can measure their performance and adjust/adapt their behavior

 Provides an audit trail for problem solving and decision-making.  Provides collaboration and team engagement.  Gives everyone a sense of ownership because they understand

how they help achieve the strategy.

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 55

slide-57
SLIDE 57

The Five Alignments are fundamental to Hoshin.

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 56

Organizational Strategy Organizational Strategy Horizontal Horizontal Vertical Vertical Process Process Learning & Development Learning & Development

Repeating the PDCA / PDSA cycle fuels the alignment.

Act Plan Do Check

slide-58
SLIDE 58

Corporate strategy is the pattern of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals. It defines the range of business the company pursues, the kind of economic and human organization it is or intends to be and the nature of the economic and non- economic contribution it intends to make to its shareholders, customers, employees and communities.

What is the right job for your Company?

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 57

slide-59
SLIDE 59

Organizations specialize with different functions performing different critical tasks for the business. Typical functions include sales, finance, engineering, manufacturing,

  • perations, etc.

As organizations become more specialized it can be difficult to communicate to other “silos” in the organization. Operating as “silos” can be the biggest hindrance to growth!

What functions do we need and how do we talk to each other?

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 58

slide-60
SLIDE 60

Organizations provide control and accountability by assigning authority to different positions in the organization. Titles like CEO and President describe higher level jobs. Titles like Vice President, Dean or Chief of Surgery describe positions at a different level. A clear chain of command helps everyone understand who is responsible for making various decisions and what resources the organization has entrusted to that position.

What is our chain of command and how do we communicate up and down the

  • rganization?

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 59

slide-61
SLIDE 61

Planning (and learning) relies on the Deming Plan, Do, Check, Act Cycle (PDCA) to solve problems that occur and to make sure that plans are on track. Goals are tracked (at least monthly) and ongoing action plans are developed to make sure that resources are allocated in the best way to achieve the goal.

How do we make sure our plans are on track?

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 60

slide-62
SLIDE 62

Learning provides opportunities to develop the team’s ability to make decisions and solve problems. Managers and subordinates function as coaches by asking questions and by providing continuous feedback, conducting regular (at least monthly) reviews where progress toward personal goals is discussed.

How do we develop all the people on the team and help them learn how to make good decisions?

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 61

slide-63
SLIDE 63

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 62

 A participative approach to decision

making.

 Used in Hoshin to communicate

across management levels and functions when setting business

  • bjectives.

 The metaphor uses a ball tossed back

and forth to emphasize the interactive nature of policy deployment.

 Being permitted to speak without

interruption – being heard

 Everyone is heard in catchball

slide-64
SLIDE 64

Strategic Planning Phase is Blue Tactical Review and Alignment is Green Sequence Red

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 63

AIM & VISION Feedback Loop & Adaptation from Team, Stakeholders and Results MISSION, STRATEGIES ,OBJECTIVE S HORIZONTAL OBJECTIVES VERTICAL OBJECTIVES LEARNING & DEVELOPMENT Communicate Aim & Vision Communicate Mission, Strategies & Long Term Objectives Adapt Strategies & Short Term Objectives to Divisions Adapt Short Term Objectives to Process Target Actions Review Results, Progress & Developments With Shop Floor A B C D E F 1 2 3 4 5 6 7 & G

At each stage of corporate, functional, divisional, team or individual review in “catchball”, there is two way feedback to engage and ensure understanding the aim, vision, values, mission, strategies, objectives and action plans, as well as results and gaps. This feedback mechanism is critical to adapting the corporate values and aim as needed to keep organizational and individual alignment.

PDCA PDSA

slide-65
SLIDE 65

 Stage or Phase “0” Innovations feed the Process at Design & redesign  Stage 0 Generates Ideas

Suppliers of information, material, equipment Receipt and test of information & materials Test of process, machines, methods, costs, user acceptance Production, assembly, inspection, conformance Design and redesign Consumer Research Distribution

CUSTOMERS Consumers of products & services

A C B D Deming’s use of this chart in Japan demonstrated the process as a system, starting in the 1950’s

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 64

slide-66
SLIDE 66

 Deming described this as a result of quality in a system  Focus on improving the quality first, the productivity will follow, then jobs  Focusing on jobs or productivity first will be downstream in the system

And have less impact than going upstream to start with quality in processes, products & services, people and technologies

 Chain reaction below relates to non-profit and government economics

Improve Quality Improve Quality Costs decrease because of less rework, less waste, fewer mistakes, fewer delays, fewer snags Costs decrease because of less rework, less waste, fewer mistakes, fewer delays, fewer snags Productivity Improves Productivity Improves Make better quality, lower price, more profit, more benefit, more value Make better quality, lower price, more profit, more benefit, more value Stay in

  • peration

Stay in

  • peration

Provide more jobs and more jobs Provide more jobs and more jobs Improve Quality Improve Quality Decrease required inputs, cycle time, funds and labor. Decrease required inputs, cycle time, funds and labor. Productivity Improves Productivity Improves Make a greater benefit, for less inputs and budget Make a greater benefit, for less inputs and budget Do more important work Do more important work Provide more effective jobs,

  • rganizations

and security Provide more effective jobs,

  • rganizations

and security

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 65

slide-67
SLIDE 67

 Who is your Supplier?  They are upstream from you!  It all depends on where you are in your system.

Customer Supplier Customer Supplier Customer Supplier Customer Supplier

  • Who is downstream from you?
  • They are your customer!

SALES PRODUCTION SHIPPING EXTERNAL CUSTOMER

  • INFORMATION
  • NEEDS
  • ORDERS
  • MONEY
  • INFORMATION
  • NEEDS
  • MATERIAL
  • PRODUCTS, SERVICE

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 66

slide-68
SLIDE 68

TACTICAL TACTICAL

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 67

 Business Fundamentals (Is Now)

 Documents the present daily work of the business, and mission

 Long Range Strategic Plan (Should Be)

 Documents the future operations in 3-5-10-20-30 years increments

 Annual Plan

 Documents key actions and KSI objectives to be met this year  Progress to reach long term vision and strategic plans

 Review Tables

 Documents actual KSI results to expected plans  Adapting changes to the plans

 Abnormal Conditions Tables

 Documents “out of limits, out of ordinary” occurrences  Changes to system to eliminate root causes of problems

ONGOING

(Daily)

PERIODIC

(3-5 Years)

ANNUAL

(1 Year)

ONGOING

(Monthly) (Quarterly)

AS NEEDED

(Monthly) (Quarterly)

STRATEGIC STRATEGIC

slide-69
SLIDE 69

Welcome And Introductions MLC Overview Red Bead Gemba walks Gemba walk at Subway Long term Lean planning and Hoshin Leaders Standard Work Culture change and employee engagement systems Wrap Up

slide-70
SLIDE 70

Standard Work

Definition:

The current best documented method to safely and effectively organize work elements in a repeatable sequence as part of a process or system that adds value.

slide-71
SLIDE 71

The Management System – Your Infrastructure

The normal tasks required to sustain the system through a

management system

Tasks typically include audits, meetings (daily responsibility) and

continuous improvement projects

Your value stream focuses on the shop floor process Directs the leader to check on the visual controls Expected to be continually improved Each task should be tracked for volumes, frequency, delay and

duration

slide-72
SLIDE 72

Clearly Documents the Management System

 Documents the current state of the value stream in lean management  A baseline for further system improvement  Defines expected behavior for leaders

(what they should do)

slide-73
SLIDE 73

Clearly Documents Your Management System

 Always Manage Your Time, and Your Calendar  Live by the clock, your schedule, your calendar and your plan  Focus on Your Managerial Priorities  Spend your time on the important tasks first  Manage the balance of important vs. urgent

 Demand vs. programmable

 Identify the Right Things to Do  Then Do Them  Defines expected behavior of you as a leader (what you should do)

slide-74
SLIDE 74

Four Elements Paradigms

  • 1. Leader standard work
  • Go and see
  • Standards enable improvement
  • 2. Visual controls
  • Make problems visible
  • Go see the Gemba
  • 3. Daily responsibility

process

  • Stop and fix
  • Everybody solves problems
  • 4. Leadership discipline
  • Leaders are teachers
  • Ask the 5 Whys
slide-75
SLIDE 75

ROLE

% of Work (time) that should be Standard

Executives 10-15% Value Stream Manager 25% Support Department Managers 50% Supervisors – Group Leaders 50% Team Leaders 80% Operators (Associates, members) 95+%

EVERYONE!

slide-76
SLIDE 76

Standard Work Content Varies by Position

Standard work is LESS structured

  • % of time standard
  • Specific sequence
  • Specific time of day
  • More time for discretionary tasks

Standard work is MORE structured

  • % of time standard
  • Specific sequence
  • Specific time of day
  • Less time for discretionary

Executive Value Stream Manager Supervisor and Supporting Roles

(Engineering, Maintenance, Sales, Finance, Continuous Improvement, Purchasing)

Team Leader Operator

Production Process

slide-77
SLIDE 77

Leaders Standard Work should be layered (developed) from the bottom up

Team Leaders

Maintain production and ensure standard work is followed and improved by coaching Team Members

Supervisors & Group Leaders

Monitor, support and coach Team Leaders in their ability to carry out their standard work

Value Stream Managers

Monitor, support and coach Supervisors & Group Leaders in their ability to carry out their standard work

Executives

Spend time on the floor to verify the system and process chain of standard work is upheld and the production process is stable and improving

Team Members

Create value by standard work in production process and continuous improvements

Leaders Standard Work should be informed by the Shopfloor Gemba Leaders help and coach the team with aim, purpose, direction, clarity Members help leaders understand the

  • bstacles

and constraints in the system

slide-78
SLIDE 78

Three Tiers

  • 1. Tier 1: Team Start Up Meeting

 Team leader meets briefly with team members

  • 2. Tier 2: Supervisor Meeting

 Supervisor meets with team leaders and dedicated

support group representatives

  • 3. Tier 3: Value Stream

 Value Stream Manager with supervisors and support

department personnel

slide-79
SLIDE 79

Check because You Care for & Respect People

 Each level of LSW has some overlap and redundancy to

provide linkage – make sure they are logical and meaningful to you and your team

Learn by Doing

 Excellence is more about what you do than about what you

know – and learning comes from action – follow the LSW process

Improve the Standard

 As the processes change and as people learn, Leader

Standard Work needs to change with it

slide-80
SLIDE 80

Take 5 minutes: List the KPI’s / Goals / Objectives that are critical to the success of your company List the KPI’s / Goals / Objectives that are critical to the success of your division/department

slide-81
SLIDE 81

Take 5 minutes individually and list the daily/weekly/monthly tasks you perform or complete on a regular basis. These items are things that others rely on you to complete for information, priority, performance feedback, communication, etc. This includes meetings, conference calls, training, etc. List everything you do. Use your

  • utlook calendar as a guide if you brought it.

Are there inputs you need to go and get? List those. Note whether they are value-added (VA, customer is willing to pay for them), non-value-added (NVA, customer is not willing to pay for them), or business value-added (BVA, non-value-added but necessary). Now, incorporate standard work activities into the metrics that you outlined before How do goals cascade down through the organization and tie into YOUR standard work? How can you take goals down to a level that can be seen and used at the floor (the floor may be in the front office) Discuss results/observations/reactions in your group for 15 minutes.

slide-82
SLIDE 82

Take 5 minutes: Lay out a blank sheet of paper with all those wonderful notes you just made! Use the following slides as reference…

slide-83
SLIDE 83

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 82 82

Everyday tasks Standard weekly or specific-today tasks Emergent items Notes, working diary

slide-84
SLIDE 84
slide-85
SLIDE 85
slide-86
SLIDE 86
slide-87
SLIDE 87
slide-88
SLIDE 88
  • What Leader Standard Work have you seen

work, or not work!

slide-89
SLIDE 89

Welcome And Introductions MLC Overview Red Bead Gemba walks Gemba walk at Subway Long term Lean planning and Hoshin Leaders Standard Work Culture change and employee engagement systems Wrap Up

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 88

slide-90
SLIDE 90

Operating definition of Culture: A blend of the values, beliefs, taboos, symbols, rituals and myths that all organizations develop over time

 Whether written, spoken or merely understood, culture describes and governs the

ways members of organizations think, feel and act

 Cultures may be based on beliefs spelled out in vision & mission statements,

  • bjectives, goals, policies, processes and practices

 It consists in part of symbols, like the workplace, tools, uniforms or other artifacts  Whatever shape it takes, organizational culture plays a big role in determining how

well the team performs

 Closely related to performance AND brand  A highly complex system in most organizations  It impacts and is impacted by many subsystems  It impacts and is impacted by the containing systems

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 89

slide-91
SLIDE 91

 Challenges & Opportunities  Culture often gets the blame for performance issues

 It is typically blamed after it was not considered  It is not the differences in culture  It is the similarity in organizational defenses and thinking traps

 Culture includes personal, professional & organizational defenses

 The espoused theory is NOT the problem  The theory-in-use is the problem

 Ignorance  Generalizations  Biases  Fundamental Attribution Errors

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 90

slide-92
SLIDE 92

 YES!  But it will be hard work  It must have awareness  It must have learning  It must have not merely change, or transition  Cultures can transform with:  Knowledge and Learning (Double - Loop Learning)  Acknowledgement of Common Issues in the system  And at Least One Transformational Leader

 Followed By Many Others

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 91

slide-93
SLIDE 93

 Benefits

 Communications networks allow us to work from anywhere, anytime  Teams can be based on competencies, not available resources  Able to blend internal expertise and outsource some expertise as

needed

 Physical boundaries and handicaps are less important  Expenses can be reduced or eliminated  24 Hour Workforce in 24 time zones

 How They Get Created

 Leadership shifts from managing activities to helping people

succeed

 Alliances and relationships define the team, not organizations and

job descriptions

 Teams need expertise AND collaboration, shared success  Expertise is distributed across geography  Geographies make face to face meetings impossible or costly

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 92

slide-94
SLIDE 94
  • Historically, we used to view Team Members as “Arms

and Legs”

  • We didn’t always use their “brain power”
  • We TOLD them what to do, and did not ASK them
  • What could they do
  • Can we honestly trust workers to make decisions

about their jobs that might effect the company?

  • Of course we can!
  • They have a stake, just like their leaders do
  • They work in the process on the shop floor and understand it better

than Leaders do

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 93

slide-95
SLIDE 95

Eight Stage Process of Creating Major Change

  • 1. Establish A Sense of Urgency (INCREASE URGENCY)
  • 2. Create The Guiding Coalition (BUILD THE GUIDING TEAM)
  • 3. Develop a Vision and Strategy (GET THE VISION RIGHT)
  • 4. Communicate The Change Vision (COMMUNICATE FOR BUY-IN)
  • 5. Empower Broad Based Action (EMPOWER ACTION)
  • 6. Generate Short Term Wins (CREATE SHORT TERM WINS)
  • 7. Consolidate Gains & Produce More Change (DON’T LET UP)
  • 8. Anchor New Approaches In The Culture (MAKE CHANGES STICK)

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 94

slide-96
SLIDE 96
  • 1. Communicate The Aim & Process
  • Expectations from the executive team to the front line
  • Accountability for implementation and tracking
  • Motivated by evidence based decision making and learning
  • Acknowledge who is losing what
  • 2. Invest Resources
  • People & Time
  • Process & Structure
  • Budget
  • 3. Educate & Learn
  • Theory & Evidence
  • Policy, Protocol, Practice
  • What, Why, When, Who, How
  • 4. Look For Evidence & Prompts
  • Visual Clues & Alerts
  • Documentation & Pathways
  • Manual or Automatic
  • 5. Coach or Force Function
  • Champion or Gatekeeper (Coaches, Chairs, Teams)
  • Manual or Automatic
  • 6. Monitor Performance & Discover Value
  • Timely Feedback and Recognition
  • Balance of Rewards / Consequences
  • Benefits and Business Case (ROI or Value)
  • Performance Analysis Review - Opportunities for Improvement
  • Barrier removal through continuous performance improvement
  • 7. Review Aim, Targets, Goals, Balanced Scorecard, Performance
  • System, Site, Team, Individual Dashboards
  • Action Item List - Red Jeopardy Reports

Adoption Rate & Motivation

Innovators & Early Adopters Early Majority & Late Majority Resistors

Time

2 - 10% 50% 2 - 10%

Announce

  • I am on board
  • Resources

Recognize

  • Early Adopters
  • Educate Me
  • I will start

Establish Rules

  • Track Performance
  • Show consequences
  • I will come along

Regulate

  • One on one feedback
  • I will comply over time

References & Many Thanks

  • Judy Avie, RN MEd - for sharing this tool
  • Everett Rogers - 1995 (Adopters Rate / Motivation graph)
  • William Bridges - 1991
  • James Prochask - 1995
  • John Kotter - 1996
  • Malcolm Gladwell - 2000

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 95

slide-97
SLIDE 97

 Focus on long-term, sustainable changes (as opposed to short-term gains) by making small, incremental changes continuously  A way of life, never ending journey toward world-class status  “No-blame” environment; a fear-free environment!  A never-give-up attitude  True teamwork  Action oriented  Change oriented  Reflection time (hansei)  Becoming “fit” or “athletic” or “strong” or “agile” in terms of business and

  • perational performance

 Being individually accountable at all levels  Management existing to support the workforce (i.e., servant-leader mentality)  Systematically, and continuously, taking out waste or “muda” of every aspect of a company’s operation (across the value chain)  Challenging the tradition and status quo

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 96

slide-98
SLIDE 98

 Bring out the best in all people and allow teams to develop ideas and implement changes  Ask questions instead of telling people what to do  Help and not criticize  Problems are good; solve them to improve  Aim for perfection, and accept excellence  It is important is to learn from mistakes

 Find the problem, not the blame  Discover what happened, why it happened  Then prevent recurrence  Improve the system to prevent recurrence  Do not blame each other

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 97

slide-99
SLIDE 99

Psychology helps understand people and the interactions between them

 Every person is different than every other person  People are born with a natural inclination to learn  People learn in different ways and at different speeds  People are born with a need to be in relationships with others, need respect

and esteem by others

 All people are motivated to a different degree by extrinsic and intrinsic factors  Intrinsic and extrinsic sources motivate in much different ways  Total submission to extrinsic motivation  Leads to destruction of the individual  Which leads to destruction of the systems they belong to

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 98

slide-100
SLIDE 100

Focusing Components of Quality

 Quality

Defined by the Customer

Obsessed with delighting them

Shared and developed by every employee

 Scientific Approach

Managing the organization as a system

Developing process thinking

Basing Decisions on Data

Understanding Variation

 All One Team

Trust as a foundation

Believing in People

Treating everyone with dignity

Win-Win-Win for Customers, Employees, Suppliers, Shareowners

Quality Scientific Approach All One Team Leadership

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 99

slide-101
SLIDE 101

 The Power of a Team is the sum of the Trusting Relationships between

its members

4 people = 12 relationships 2 people = 2 relationships 12 people = 132 relationships

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 100

slide-102
SLIDE 102
  • Coaching is:
  • help to the person
  • a disciplined conversation
  • using concrete performance information
  • between a leader and an individual or team
  • results in the continuous improvement of

performance

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 101

slide-103
SLIDE 103

“Failure is our most important product.”

  • R. W. Johnson Jr., 1954

“We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for.” –

Part of the Johnson & Johnson Credo

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 102

slide-104
SLIDE 104

MISMATCH OR ERRORS ACTIONS CHANGE THE ACTION OR ACTOR

SINGLE-LOOP LEARNING

MISMATCH OR ERRORS ACTIONS CHANGE THE ACTION OR ACTOR

DOUBLE-LOOP LEARNING

GOVERNING VALUES CHANGE THE VALUES Valid Information - informed Choices - Monitored Implementation = Fix System Invalid or Incomplete Information - Ineffective Roles & Policies, Designed Errors = Fix Blame

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 103

slide-105
SLIDE 105

Welcome And Introductions MLC Overview Red Bead Gemba walks Gemba walk at Subway Long term Lean planning and Hoshin Culture change and employee engagement systems Leaders Standard Work Wrap Up

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 104

slide-106
SLIDE 106

Sustaining And Maintaining

“Transformation in any organization will take place under a leader. It will not be spontaneous.” A leader “possesses knowledge, personality, and persuasive power.”

  • W. Edwards Deming

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 105

slide-107
SLIDE 107

 W. Edwards Deming  By coming here, you have taken on a solemn responsibility - and you can’t

wriggle out of it.

 We’ve got some big changes to make, and you’re going to have to make

  • them. Who else will do it?

 Martin Luther King, Jr.  We are witnessing the birth of a new age and we must face the

responsibilities that come along with it.

 Shall we say the odds are too great? Shall we tell them the struggle is too

hard? Or will there be another message, of longing, of hope, of commitment? The choice is ours.

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 106

slide-108
SLIDE 108

 What will you do differently tomorrow when you get

to work?

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 107

slide-109
SLIDE 109

 Gather at the white board for pluses and deltas

Dennis Sergent 517-285-5500 dsergent@srgnt.com - 07/09/2013 -

Page 108