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Lean Daily Management System (LDMS)

Lean Daily Management System (LDMS) training presentation

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Lean Daily Management System (LDMS)

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  1. Lean Daily Management System 4. Leadership Discipline © Operational Excellence Consulting. All rights reserved. 1

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg Learning Objectives 1. Acquire knowledge on the four key elements of the Lean Management System 2. Acquire knowledge on the supporting elements of the Lean Management System Copyrights of all the pictures used in this presentation are held by their respective owners. 2 © Operational Excellence Consulting. All rights reserved.

  3. Outline Key Elements of a Lean Management System Supporting Elements of a Lean Management System Introduction to the Lean Management System 3 © Operational Excellence Consulting. All rights reserved.

  4. Impact of Tactical Lean Without a Management System to Sustain It Output Your desired future state… Kaizen Event #3 What the Standard should be Kaizen Event #2 Backsliding What the Standard should be …but you are lucky if you get here Backsliding Kaizen Event #1 What actually becomes the Standard when people do not sustain the changes Your current state… Time 4 © Operational Excellence Consulting. All rights reserved.

  5. Lean Management System Creates Process Focus and Drives Improvement 1 Frequent focus on process health: Visual Controls Process Focus Sustained improvement: Leader Standard Work Improvement standard: (Visual) Accountability 2 3 Source: Based on David Mann 5 © Operational Excellence Consulting. All rights reserved.

  6. Parallel Implementations of Lean Production & Lean Management System Strategic Lean Daily Visual Controls Management System Accountability Leader Standard Work Discipline Lean Lean Culture Traditional Culture Transformation Waste Continuous Improvement Identification Lean Production System Waste Elimination PDCA Cycle Tactical 6 © Operational Excellence Consulting. All rights reserved.

  7. Healthy Lean management system = Healthy Lean production system 7 © Operational Excellence Consulting. All rights reserved.

  8. Other Equivalent Terms § Other terms synonymous to Lean Management System • Daily Management (DM) • Daily Management System (DMS) • Lean Daily Management System (LDMS) • Lean System For Managing (LFSM) • Managing for Daily Improvement (MDI) 8 © Operational Excellence Consulting. All rights reserved.

  9. Group Discussion: Lean Management Systems Time: 10 mins 1. Does your management system reinforce finding and eliminating problems, or does it reinforce working around problems to meet the schedule? 2. Have you implemented Lean Production tools only to find they did not seem to work or hold up over time? Why do you think that happened? 3. Are senior managers familiar with and prepared for the part they need to play in leading and sustaining Lean beyond initial statements of support? 9 © Operational Excellence Consulting. All rights reserved.

  10. Planned Maintenance Four Key Elements of the Lean Management System 4. Leadership Discipline 10 © Operational Excellence Consulting. All rights reserved.

  11. Lean Elements Need to Work Together Gas Pedal & Steering Wheel: Daily Accountability Process 3 Engine: Leader Standard Work 1 Fuel: Discipline 4 Transmission: Visual Controls 2 It is important to improve the stability of a process first before implementing the Lean management elements. 11 © Operational Excellence Consulting. All rights reserved.

  12. What is Leader Standard Work? Leader standard work is a daily performance management system that is: Drive Action & Learning Timely Visual 12 © Operational Excellence Consulting. All rights reserved.

  13. What is Leader Standard Work? § Provides a structure and routine for Leaders § Sets standards for the expected behaviors of leaders § Drives accountability by measuring “Actual versus Plan” Executive Standard Work Running & Improving the Business § What To Do Manager Standard Work § When To Do It § Was It Completed? § What To Do § (if not, Why?) Supervisor Standard Work § When To Do It § Was It Completed? § What To Do Interlocking Successive Layers Driven from the Bottom Up § (if not, Why?) Team Leader Standard Work § When To Do It § Was It Completed? § What To Do § (if not, Why?) § When To Do It § Was It Completed? § (if not, Why?) 13 © Operational Excellence Consulting. All rights reserved.

  14. What is Leader Standard Work? Lean Management System Strategic Focus Executive Standard Work Plant Mgr / Mfg Mgr / Value Stream Manager Standard Work Tactical Focus Supervisor Standard Work Team Leader Standard Work Standardized Lean Processes 14 © Operational Excellence Consulting. All rights reserved.

  15. Leader Standard Work is a necessary step in the beginning stage until leaders develop so it is “the way they think and act” 1 Leader Standard Work 4 3 Daily 2 Visual Controls Accountability Process Leadership Discipline Source: Based on Jeffrey Liker 15 © Operational Excellence Consulting. All rights reserved.

  16. Who Should Have Leader Standard Work (LSW)? % of Work Time that should be Standard Role Responsibilities Executives 15% Verify production process is improving Value Stream Manager 25% Monitor and support Managers Managers 50% Monitor and support Supervisors Supervisors 50% Monitor and support Team Leaders Team Leaders 80% Ensure operator standard work is followed Operators 95% Used in performing task consistently Standard work is more defined and specific in roles closest to the process 16 © Operational Excellence Consulting. All rights reserved.

  17. LSW Example: Team Leader Multiple times daily actions Once daily actions Notes on daily work and non- standard tasks Tasks assigned or received today 17 © Operational Excellence Consulting. All rights reserved.

  18. What is Visual Management? § A system of planning, control, and continuous improvement that integrates: • Simple visual tools that enable understanding at a glance & • Management standard work that ensures process adherence and continuous improvement Visual management is not desktop management 18 © Operational Excellence Consulting. All rights reserved.

  19. Example: Visual Control Metrics Safety Quality Delivery Cost Monthly Trend Chart Monthly Trend Chart Monthly Trend Chart Shift-to-Shift Trend Chart Shift-to-Shift Trend Chart Shift-to-Shift Trend Chart Pareto Chart Pareto Chart Pareto Chart Cause & Effect Cause & Effect Cause & Effect Note: Start with existing data and build up over time measures that your team is accountable for Gantt Chart Gantt Chart Gantt Chart 19 © Operational Excellence Consulting. All rights reserved.

  20. Visual Metrics Facilitates Communication and Identification of Areas that Need Improvement Example of a visual metrics board Productivity Quality • Gaps? Trends? What is happening? Sales per Employee First Call Resolution Actual $3,200 Actual 80% Target $3,500 Target 95% • Root causes? Why? SLA Metrics Met Cost Per Employee Process Capability of C2 USL Process Data Within Overall LSL Target USL Sample Mean * * 9 6.21762 Potential (Within) Capability Cp CPL CPU Cpk * * Sample N StDev(Within) StDev(Overall) 2.39212 100 2.25841 0.41 0.41 Actual $91.50 Actual 7.0 Overall Capability Pp PPL PPU Ppk Cpm * * 0.39 0.39 * Target $78.39 Target 9.0 • Correct the problem – implement containment action? • Prevent the problem – permanent corrective action? 2 4 6 8 10 12 Observed Performance PPM < LSL PPM > USL PPM Total Exp. Within Performance PPM < LSL PPM > USL PPM Total Exp. Overall Performance PPM < LSL PPM > USL PPM Total * * * What needs to be done? 130000.00 130000.00 108973.12 108973.12 122385.02 122385.02 Delivery Customer Satisfaction Process Capability of C2 Turnaround Time Overall Satisfaction USL Process Data Within Overall LSL Target USL Sample Mean * * 9 6.21762 • Who does what? • Any support needed? Potential (Within) Capability Cp CPL CPU Cpk * * Sample N StDev(Within) StDev(Overall) 2.39212 100 2.25841 0.41 0.41 Overall Capability Who is going to do it? Actual 5.0 hrs Actual 4.8 Pp PPL PPU Ppk Cpm * * 0.39 0.39 * Target 4.5 hrs Target > 4 of 5 2 4 6 8 10 12 Observed Performance PPM < LSL PPM > USL PPM Total Exp. Within Performance PPM < LSL PPM > USL PPM Total Exp. Overall Performance PPM < LSL PPM > USL PPM Total * * * 130000.00 130000.00 108973.12 108973.12 122385.02 122385.02 Customer Complaints Response Time Process Capability of C2 USL Process Data Within Overall LSL Target USL Sample Mean * * 9 6.21762 • Prioritization? • Deadline? • Milestones? Potential (Within) Capability Cp CPL CPU Cpk Actual Actual 2 hr 2.0 * * Sample N StDev(Within) StDev(Overall) 2.39212 100 2.25841 0.41 0.41 Overall Capability When is it going to be done? Pp PPL PPU Ppk Cpm * * 1.0 Target Target 1 hrs 0.39 0.39 * 2 4 6 8 10 12 Observed Performance PPM < LSL PPM > USL PPM Total Exp. Within Performance PPM < LSL PPM > USL PPM Total Exp. Overall Performance PPM < LSL PPM > USL PPM Total * * * 130000.00 130000.00 108973.12 108973.12 122385.02 122385.02 20 © Operational Excellence Consulting. All rights reserved.

  21. The Activity Board Concept Mission Team Members Skills Matrix Attendance Project Plan (Gantt Chart) Current State Future State Key Objectives Issues & Challenges Quality Trend Chart Cost Delivery Trend Chart Countermeasures & Follow Up Action Plan Trend Chart This work team can see what’s important and why, along with key information for the team’s effectiveness. 21 © Operational Excellence Consulting. All rights reserved.

  22. Example: Team Activity Board Daily / Weekly / Monthly Trend Pareto Charts 6-Month Lean Business Plan Safety Quality Delivery Problem Solving Cost/Productivity Inventory 22 © Operational Excellence Consulting. All rights reserved.

  23. Group Discussion: Visual Management Time: 10 mins 1. Do your visuals mostly display status or history, or do they reflect a focus on process that highlights problems to drive improvement with visual evidence of improvement activity? 2. Are your visuals only visible on computer monitors? How effective are they in driving improvement? In engaging the workforce? 3. Is there an emphasis on a consistent look and format for the visuals in your workplace? If yes, how effective are they and do they work equally effectively everywhere? 23 © Operational Excellence Consulting. All rights reserved.

  24. Relationship Between Hoshin Kanri & Daily Accountability Process Daily Accountability Process with Kaizen P A D C P Hoshin Kanri A D C P Performance (KPI) A D C P A D C P A D DM with no HK C P A D HK with no DM C Time Source: Adapted from Liker & Convis 24 © Operational Excellence Consulting. All rights reserved.

  25. What is the Daily Accountability Process? Adjustments are made as needed Work is planned Act Plan Check Do Result of work is checked Work is performed 25 © Operational Excellence Consulting. All rights reserved.

  26. Daily Accountability Process – Tier Meetings § Brief – rarely more than 15 minutes § Stand up meetings at the workplace § Agenda is to review status of plans versus actions on visual display boards MD Tier 3 meeting (1100-1115) Manager Tier 2 meeting (1000-1015) Supervisor Tier 1 meeting (0900-0915) TL + Staff 26 © Operational Excellence Consulting. All rights reserved.

  27. Daily Accountability Process – Tier Meetings Tier 3 meeting Tier 2 meeting Tier 1 meeting MD holds meeting with managers from 11:00-11:15 am Manager holds meeting with supervisors from 10:00-10:15 am Supervisor holds meeting with team leaders and support staff from 9:00-9:15 am 27 © Operational Excellence Consulting. All rights reserved.

  28. Tier 1 Meeting – Sample Agenda When: 0900 – 0915 Lead by: Supervisor Indicators: § Attendance § Safety performance § Quality performance Participants: § Team leaders and members Outputs: § Team performance (target vs. actual) § Overtime required § Improvement suggestions or actions Inputs: § Today’s safety message § Issues from previous day § Today’s targets § Staffing plan 28 © Operational Excellence Consulting. All rights reserved.

  29. Tier Meetings – Healthcare Example Tier 1 – Tier 2 – Supervisors & Team Leaders Tier 3 – Team Leaders & Team Members Manager, Supervisor & Support Safety § PPE § Injuries from previous period Safety § Issues from previous period Safety § Safe Day previous period? Attendance § Plan for next period Delivery § Planned vs Actual from previous period § Conversions / RA from previous period § Downtime from previous period Attendance § Backfill / Cross-training Delivery § Schedule for next period § Line stop from previous period § Planned vs Actual from previous period Delivery § Schedule § Line stop from previous period Quality § Direct Run from previous period § First Pass Yield from previous period § Units in Hospital Concerns This Period § Materials / SWIP § Equipment / Tools § Process / Methods Quality § Issues from previous period Projects § Done by team / Move to Accountability Board Abnormalities § All unplanned events that affected the daily plan 29 © Operational Excellence Consulting. All rights reserved.

  30. Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg 30 © Operational Excellence Consulting. All rights reserved.

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