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Lean Leadership Supersession. Video. Session Overview. Lean Leadership overview Case Study Stories Q&A with Panel Wrap up and Key Take- Aways. Lean Leadership Audience Participation. Where is your companies status for Lean / Continuous Improvement? Limited examples
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Session Overview • Lean Leadership overview • Case Study Stories • Q&A with Panel • Wrap up and Key Take-Aways
Lean Leadership Audience Participation • Where is your companies status for Lean / Continuous Improvement? • Limited examples • Good examples in some areas/functions • Formal structure in place • Imbedded in the culture throughout the organization
Lean Leadership Audience Participation • Where are YOU at on your Lean / Continuous Improvement Journey? • Not Started • Beginning • Been on my journey 1-2 years • 3-5 years and teaching • 6+ years, teaching and mentoring
Lean Leadership Audience Participation • What IS NOT one of “what” elements for Lean Leadership • Respect • Purpose • People • Process • Programs • Results
SCLA Lean Leadership Case Studies International Paper Examples
Non-Conforming Product (NCP) • A business unit had experienced very high levels of non-conforming product (NCP) consistently for years. Manufacture of NCP was negatively impacting product manufacturing costs, supply chain costs, and customer reliability. • $4MM Savings realized via 41% reduction in NCP generation and 18% reduction in NCP inventory.
Lean Leadership Learnings • Lean Operating Principles • Build Effective Teams with Cross-functional Representation • Develop Necessary Measurement Systems and Provide Visibility to Key Metrics • Ensure Alignment Around Key Metrics • Experiment and Solve Problems at a Root Cause • Sustain Results • Lean Leadership Focus and Behaviors • New Business Unit Leadership Set a Vision and Challenged the Organization with a Huge Step Change Improvement Expectation • No Longer the “Elephant in the Room” • Overcome Past History/Stigma • Treat Problems as Treasures
Partial Balances • Partial Balance is less than a vehicle quantity in jeopardy of missing the customer expected delivery date. • Partial Balances not shipped caused missed customer delivery commitments driving heroic fire fighting. • A Kaizen event was conducted to identify opportunities to improve the process. • A new process was developed to identify, track, and manage execution of partial balance shipments. • The new process was not successfully implemented. • Key stakeholders did not accept the changes.
Lean Leadership Learnings • Lean Operating Principles • Stakeholder Analysis is Vital to Project Success • Project Success = Quality of the Solution x Stakeholder Acceptance • Engage Early, Don’t Over-look Middle Managers • Maintain the Discipline of Good Kaizen Event Design. • Don’t Accept Key Stakeholders Not Attending • Don’t Shorten Event Timing as Process will be Jeopardized • Report-outs are Designed for Discussion, Understanding, and Acceptance. Silence is NOT Good! • Lean Leadership Focus and Behaviors • Reflect and Learn From Every Project, Even the Unsuccessful Ones • Change the Mindset • Empower Problem Solving vs Rewarding Hero Firefighting
Lean Leadership Audience Participation • International Paper reduced non-conforming product by what percent? • 11% • 22% • 35% • 41% • 57%
KC Damage Reduction Distribution Damage rate of 3.2 cases for every 10,000 handled • What Problem were we trying to solve? • Network Damage Rate Stagnate • No Continuous Improvement Focus • At site level, Results not Predictable • What was our approach? • 3 Year Vision • Process Owner • Annual Strategy Deployment (A3) • Connect to Monthly/Weekly/Daily • Developed team on: • Standard Work • Visual Mgmt • Leader Standard Work • Simple Problem Solving • Recognized Progress • Offered/Provided Support • Got out of the way!
Lean Leadership Learnings • Small Batch more Frequent • Monthly, Weekly, Daily • Easier to check and problem solve • Standard Work • Alignment on best way • Process to improve against • Clarity • Connected Checking • People focus on what you check • Respect for team = Engagement • Discipline • Discipline • Discipline • Discipline • Align on Vision • Set Challenges • Visual Management • Must drive action • Daily Problem Solving • Pace of Change • Success breeds Success • Know when to get out of way • Support failure • Transition from Outcome to Process • Know why you’re successful • Predictability • If I do X, I get Y every time
KC Order Fulfillment FTQ FTQ is the processing of a sales order from order creation to receiving payment with no rework or excessive wait time • What Problem were we trying to solve? • FTQ was 5% • Teams were working excessive hours • Lack of focus on Strategic Initiatives • What was our approach? • Strategy Deployment Session • Set target of 95% for 2015 • Went to the Gemba • Cross functional problem solving • Developed process to sustain • Daily Standard Work • Metrics • Escalation processes • Leader Standard Work
Lean Leadership Learnings • Go to the Gemba • Ask the people doing the work • Listen and support the problem solving • Experiment • Start small and learn from your results • New improvements reveal new problems • Metrics are key • Provides the visibility on where to improve • Align on Vision and Strategy Deployment • Be Consistent year after year • Focus team on shorter term challenges • Change the mindset of our teams • Ask the WHY questions • Drive the FTQ thinking beyond orders • Everyone does problem solving • Management Systems is Critical • Drives Sustainability & Continuous Improvement
Lean Leadership Audience Participation • Kimberly-Clark improved order fulfillment First Time Quality to XX% in 2013? • 21% • 31% • 41% • 51% • 61%
Lean Leadership Audience Participation • Where is YOUR Lean Leader Maturity? • Unaware • Aware • Doer • Coach • Mentor
Developing Your Lean Leadership IQ • Lean Culture – Leading & Building • Lean in Action – Tangible Results • Getting to Go – Assessing Maturity
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