Releasing capacity to drive growth

1. Releasing capacity to drive growth Robin Jaques – Managing Partner – S A Partners LLP

2. Our history - who are we? • Founder - Professor Peter Hines. Co-founder of the Lean Enterprise Research Centre (LERC) at Cardiff Business School. • One of the longest established Lean implementation consultancies in Europe • Headquartered in Cardiff, with Businesses in USA, Ireland and Australia • 60 staff and a small number of key associates and partners • LLP partners and employee consultants are all experienced practitioners

3. Together, the power to improve Together - We work in partnership with our clients to create mutually beneficial relationships Power - Our consultants bring a wealth of operational experience backed up by leading edge academic research which, when combined with your knowledge of your business, creates a powerful force for change Improve - We work with your organisation to create improvements to your business system: to service your customers needs; to grow your profits and to engage and develop your team

4. Academic Rigour & Accreditation Academic alliances provide rigour and geographic reach Accredited learning programme aligned to the Cardiff University LERC (Lean Competency System) Allied with the School of Supply Chain Management at Cranfield University (sponsor of Customer Responsive Supply Chain Programme) Strong academic links with Stockholm, Cork, Warwick and University of South Australia Consultants lecture at - Cardiff (MSc Lean programme) - Cranfield and Warwick Universities

5. S A Partners clients

6. Good news An entrepreneur is an enterprising individual who builds capital through risk and/or initiative Entrepreneurs are catalysts for economic change … I found out what we all are

7. Focus of today Not on the big idea, the innovation or the step change that catalyses economic change But is on The system that brings it to fruition and how to harness it effectively The heady combination of people, process, product, strategy, assetts, Enduring Success = Great product or service idea + effective realisation

8. Monkeys, Darwin and my lawn ! So what is the environment that liberates and focuses these behaviours

9. … and if we don’t focus problem solving for everyone what typically happens Problem solving is random or reactive to quality problems and customer issues It sometimes gets called fire fighting and it’s excitement that is the driver It’s normally the preserve of the senior teams Those who fix ‘problems’ are critically overburdened It is done in an unstructured way based on opinions not facts and causes We have large parts of the employee base who are not contributing as effectively as they could

10. Building a system for improvement Strategic Choices Targets Discontinuous Improvement Deployed Targets Redesign process Faster, better change Seamlessly integrate Feedback to strategy Organisational Learning Continuous Improvement Greater rate of improvement

11. What type of CI do you really need to do? Continuous Involvement Continuous Invention Continuous Improvement Source: FMM 2008

12. Where’s the opportunity? Top down Management led Improvement or Project Team led Small Team or Individual led What is your experience? What’s the opportunity? 60% 30% 10% 10% 30% 60%

13. The ‘3 Systems’ Model – Overview of the Systems • The way the workplace is structured, organised & orientated to satisfy customer requirements at the best value. “How the work actually works!” • How issues & opportunities are surfaced & resolved & the way in which appropriate metrics drive the right improvement behaviour at the right level & pace • The way in which leaders at all levels engage & coach stakeholders to maintain standards whilst continually trying got develop individuals & improve team performance [13]

14. Embedding CI _ The ‘3 Systems’ Model [14]

15. System of Work CONDITIONS FEATURES The workplace is structured & organised in order to surface issues For example; work ‘flows defect free’, is highly visual and processes are in control so that any waste, overburden or unevenness is not hidden The workplace is orientated to satisfying customer needs For example; quality, cost, delivery, safety measures are conspicuous and customers are understood throughout the value stream Resources are deployed to ensure quality of operation & deliver value, not only reducing cost Explicit ‘public’ depiction of role and responsibilities are clear, connected and aligned to achievement of organisational (department) goals Demonstrate clear linkage to operational and strategic targets and are aligned to drive the right behaviour (value stream not ‘silo’ benefit) Metrics are meaningful at all levels [15]

16. Big Picture Mapping (BPM) ~ Building the Map Supplier . Q Customer 1-2 days 3-7 days 3- 5 days Long Term Forecast (M) Long Term Forecast (M) 50 ppm In Process Assembly line Inspection • Part of group • Helpful • Based UK • 1-2 deliveries per week • small local Purch (M) Production Plan (M) Order Processing Weekly Fax (M) Daily Order (M) Tues and Thurs Approx 14 days • Manual repetitive process • Delays due to MRP system run over weekend • Manual repetitive Process • Delays due to data quality • Manual repetitive Process 1 x dai1y Approx 2 days Del note Despatch Note Chase mat’l Despatch Plan Prod Plan Prod Plan Prod Plan I 2 people 1 day 1 person 1/2 day I I I I I Goods Inwards Manufacture 1 Manufacture 2 Manufacture 3 Pack and Despatch 10000 5 DOS 200 1000 5000 2000 • Not delivered to point of storage • 4-6 hour delays in putting away • Transport times unreliable • Stock held for Customer • Packed to customer spec not std pallet size • No quality control • Multiple manual handling steps • 1-2 hour delays due tool failures 5-6 times/ week • 2-4 hour delays for changeovers • delays for mat’l availability • Rework due to Quality Problems with Mat’l • Delays due to M/C’s unreliability • No M/C Improvement measures • Multiple manual handling steps Q Q 50000 ppm 100% in process packing inspection 500 ppm Batch Audit Inspection 1-3 days 2-3 days 2-4 days 1/2-1 day 1 day 16 March 2011 01_LA1 A00 / Wärtsilä Lean academy

17. System of Improvement CONDITIONS FEATURES The purpose and method of improvement activity is clearly specified For example, to seek process stability and control as a precursor to daily CI using proven tools with defined resources and levels of participation. A process of individual and team learning is explicit The use of the problem solving cycle in appropriate contexts, for example; both in conversational coaching & formal implementation review Issues, once surfaced, are treated according to type & resolved thoroughly & quickly For example, the classification into 'problems, opportunities, risks & solutions‘ which are then prioritised & executed according to type of improvement activity (CI or DI) Both the improvement activity itself, for example; Close-Out Ratio and 'issue list' reduction as well as the outcome of the activity; benefits The pace and success of improvement activity is measured [17]

18. Process Level KPI Monitoring HR Dept Toolroom Service office Sales Dept Quality Dept

19. System of Thinking & Behaviour CONDITIONS FEATURES Leaders read the situations faced by their people and respond with effective performance coaching building an incremental mind-set The right conversations happen at the right time in the right place in the right way Leaders at all levels build a deep understanding of how work, works Leaders who are close to the work and through considered inquiry are able to discuss it with colleagues in a challenging yet constructive manner Leaders seek to exploit the benefits that come from the diversity of thinking style Psychometric data supports team composition and selection decisions Escalation & ‘roll out’ processes exist and senior managers consider deeply the impact of central changes on the local operation & vice versa Leaders foster organisational learning by connecting CI and DI through PDCA thinking at all levels [19]

20. Dispositions as outcomes

21. Why these dispositions? [21]

22. Introducing ‘The X-Men’ 2X x In this scenario, what is the right conversation for ‘The X-men’ to have?

23. …it all depends on our purpose 2X x

24. The curse of ‘suggestion’ Suggesting ideas and solutions to team members is seductive. Offering the idea makes the giver feel good; receiving the idea makes the receiver feel comfortable. There is learning and performance improvement in this arrangement but it is sub-optimal. Both players are complicit in creating subtle forms of dependence.

25. Time Allocations in a CI Environment?

26. Time Allocations in a CI Environment?

27. What do we often find [27]

28. Reflections