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Lean Transformation. LEAN TRANSFORMATION. Next Generation Manufacturing. Objectives. Align improvement efforts with corporate strategy based on metrics . Focus the entire organization on a few critical goals with greatest potential for impact w/sponsorship by leadership.
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LEAN TRANSFORMATION Next Generation Manufacturing
Objectives • Align improvement efforts with corporate strategy based on metrics. • Focus the entire organization on a few critical goals with greatest potential for impact w/sponsorship by leadership. • Communicate strategy in a manner that facilitates effective deployment throughout the organization utilizing A3.
Process • Assessment • Planning • Deployment
Process Flow Fintel Financial (baseline/benchmarks) - Comprehensive Assessment (GAP Analysis) - Change Readiness/Culture Assessment Plan Development (Hoshin) - True North (Mission Vision) - Competitive Priorities - Alignment - Value Prop (ROI) Planning Advisory, using Fintel & PDCA Methodology Deployment/Solution Suite Deployment Training Workshops Consultative Engagements
Assessment • Completes “Competitive Review Questionnaire” (CRQ) • Submit data to Fintel • Present & Discuss Benchmarking Results • Tour plant to verify Fintel results. • Assess Readiness for Change. • Choose improvement targets.
Who are we? What do we believe in? Where are we going? What have we learned? (from failures and successes) What do our customers really want? What would failure mean for our community, families, team members? What advantages do we have over our competitors? What do we have to do to compete with them? True North Strategic and philosophical purpose. (Hoshin)
Planning • Define “True North” • Develop the Plan • Competitive Priorities • Goals • Where are we now? • Where are we going? • How are we going to get there? (Actions) • Check Process
Competitive Priorities Competitive priorities are the items against which company owners, shareholders, CEO’s, etc. measure success. Example Competitive Priorities: Quality Cost Delivery Innovation Profit Growth, Market Strategy New Product Development Customer Satisfaction
Goals Goals are specific enough to be measurable, and explain what you will do. Example Goals: • Reduce Scrap from 1% to 0.5% • Increase On-time Deliveries from 92% to 99% • Decrease PPM defects from 500 to 60 • Reduce Lead Time from 10 Days to 5 Days
Deployment • Deploy the Plan “Catchball” • Monitor the Plan • Solve Problems • Improve the System
Learning Organization Organizational Culture Leaders Employee Involvement A Lean Culture
Leadership Is everywhere— Or it isn’t anywhere Senge
Teams in the Lean Enterprise • Core Team • Steering Team • Short term Project Teams • Work Teams
Teams in the Lean Enterprise • Core Team • The Core Team provides leadership to implement systems and practices that build an empowered workforce. • Steering Team • This cross functional, multi-level team’s responsibility is to build active employee involvement in continuous improvement projects that consider every aspect of the business, with the goal of perfection.
Teams in the Lean Enterprise • Work Teams • Work teams are work units that accept responsibility for continuous improvement in their assigned work area – such as a manufacturing cell – and are actively responsible for producing results. • Project Teams • Temporary project teams are formed to find solutions to specific problems, to test improvement ideas, and to implement improvement projects. .
Managing Change With Pull Forces People don’t resist change — — They resist being changed You don’t drive change — — You cultivate it Change imposed from the top generates resistance
Resistance challenges at the start of a change process • “We don’t have time” • “There is no help” • “This is not relevant” • “Leaders are not walking the talk”
Resistance challenges during a change process • Anxiety about the openness • of transparent processes” • “This isn’t working” • “The in-group is arrogant”
Resistance challenges in a mature change process • “Who’s in charge of this?” • “We keep re-inventing the wheel” • “Where are we going?”
Change Participants Skeptics Willing curious Watching wind direction Early adopters CAVE people
Lean Enterprise Culture: Everyone in an organization looking for answers to the continuous improvement question: How can We Do a Better Job?
Benefits • Improved understanding of company position relative to peers • Promotes effective leadership • Focuses the organization • Achievement of critical goals • Greater top-line/bottom line growth • Greater agility to respond to changing business conditions • Improved metrics for better business decisions • Improved business strategy and tactical execution • Greater alignment of workforce with business goals
Support Readings • Pascal Dennis, “Getting the Right Things Done” • John Shook, “Managing to Learn” • Pascal Dennis, “Lean Production Simplified” • http://www.lean.org/Events/WebinarHome.cfm