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Lean Leadership

Lean Leadership. Our Markets. Sales $0. 90 billion – FY12. Sales $0. 97 billion – FY12. Total Sales $1.87 billion – FY12. Propulsion Control Systems. Aerospace. Electronics. Fuel Systems. Combustion Systems. Actuation Systems. Electronic Systems.

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Lean Leadership

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  1. LeanLeadership

  2. ●●●

  3. Our Markets Sales $0.90 billion – FY12 Sales $0.97 billion – FY12 Total Sales $1.87 billion – FY12

  4. Propulsion Control Systems Aerospace Electronics Fuel Systems Combustion Systems Actuation Systems Electronic Systems Evolution from components to systems supplier Organic development and acquisitions grow product breadth Key program wins set table for future growth

  5. Motion Control Systems Aerospace Cockpit Control Systems Primary Flight Control Systems Secondary Flight Control Systems • Aircraft Control Systems • Cockpit to Surface • Hydraulic and Electric • Motion Control Solutions for Fixed and Rotary Wing Aircraft • Smart Weapons – Precision Guidance and Stabilization Solutions • Motion Control and Sensor Solutions for Critical Tier 1 Applications

  6. Renewable & Power Conversion Systems Energy Wind turbine inverters Energy storage converters Shore power & dynamic positioning inverters Solar inverters

  7. Power Generation Overview Ignition systems Engine control Combustion systems Ignition systems Turbine control Emissions compliance Shut-off valves Emissions control systems Gas/air flow control Gas flow control Generator package control

  8. Solutions for Engines

  9. Energy Segment FY12 Sales FY12 $970 million

  10. Global Presence, Local Support

  11. Lean About Woodward • Products on-time • No defects • Lowest cost

  12. David Mann Lean Leadership & Culture “Creating a Lean Culture” 1980 to present Dr. James Womack Japanese Auto Industry “how?” Machine that Changed the World – 1975 to present Frank Woollard Continuous Improvement; Lean Tools; “Forgotten” – 1920 to 1950 Bob Emiliani Fake vs. Real Lean CI + Respect for People “Practical Lean Leadership” 1990 to present W. Edwards Deming SPC; Quality Methods to Japan “Plan-Do-Check-Act” - 1940 to 1990 Taiichi Ohno Toyota Production System; Kaizen Respect for People; 7 Wastes – 1950 to 1990 Frederick Taylor Scientific Method; One-Sized Shovel; “Enforce”– 1880 to 1915

  13. What is Lean? • A systematic approach to identifying and eliminating waste through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.

  14. 5 Principles of Lean • Directly observe work as activities, connections, and flows • Systematic waste elimination • Establish high agreement of what and how • Systematic problem solving • Create a learning organization

  15. Directly observe work as activities, connections, and flows • Understanding the current reality of your business • Reality should be unified • Tools: Gemba walks, value stream mapping, process mapping, flow diagrams

  16. Systematic waste elimination • Anything beyond the absolute minimum amount of materials, manpower, machinery needed to add value to a product or service.

  17. 7 Wastes + 1 Manufacturing Defects Overproduction Transportation Waiting Inventory Motion Overprocessing Engineering Errors in documents Doing work not needed Transport of documents Reviews and approvals Backlog of work Searching for information Overprocessing 8. Non utilized talents or unused creativity

  18. Establish high agreement of what and how • Valuing a common way or process with low ambiguity more than you value your own way

  19. Systematic problem solving • With Lean thinking, problems are opportunities • Dig until you find the root cause • 5 Whys • Immediately bring problems to the surface and face them, don’t band-aid or cover up problems.

  20. Create a learning organization • The very nature of lean is to change and improve based on learning • Learn from your improvement efforts

  21. Is Lean Leadership the missing link? • 98% of Lean Initiatives are not pursued to the point of financial benefit • 50-95% of programs fail • Supply Chain Digest Jan 30, 2013

  22. “80% of effort in Lean transformations is expended on changing leaders’ practices and behaviors, and ultimately their mindset.” “ . . .the essential purpose of a leader is to do one thing: create change.” Dennis Pawley, “Hitchhiker's Guide to Lean”

  23. Lean Leadership • Leaders must be teachers • Build tension, not stress • Eliminate fear and comfort (experimentation & innovation) • Lead through visible participation, not proclamation • Build lean into personal practice

  24. Leaders must be teachers • Learning is critical in a lean organization • Leader’s responsibility is to develop (coach) members who are themselves learners and teachers • De-emphasize individual solutions/ideas & promote • Team thinking (Contributions from everyone) • Common ideas (Collaboration) • Principles (Ethical behavior) • Ethics & Integrity are used to help people make tough decisions Problems are opportunities to learn, not just a crisis to be solved.

  25. Leaders must build tension, not stress • Leaders create change • Leaders create a sense of urgency thru tension, not stress • People feel stress when conditions are nearly impossible, pressures are immense, and there is no clear path forward. • People experience tension when they sense a gap between the current reality and the ideal state.

  26. H x V x F > R H = Hatred of current reality V = Vision of the ideal state F = the courage to take First steps R = the Resistance to change that exists within an organization

  27. Eliminate fear and comfort • Remove the fear of experimentation • Encourage innovation • Eliminate the comfort in status quo • Characteristics of a fear-free environment: • Physical safety • Emotional safety • Professional safety • Five Whys

  28. Challenge the member (5 Whys) Ask for more (7 Ways) Ask for evidence (data on the Gemba)

  29. Lead thru visible participation, not proclamation • Must lead by pulling members thru the change process, not pushing them • Commitment and active engagement • Participating, not watching from sidelines • Members will see the leaders activities as priorities • Thru participation, leaders directly observe how lean is being understood (or not understood). • A Servant Leader is someone who identifies and meets the legitimate needs of their people and removes all barriers so they can serve the customer.

  30. As 5S is foundational for Lean, SERVANT LEADERSHIP is the foundation for Lean Leadership information sharing building common vision self management high levels of interdependence learning from mistakes encouraging creative input from every team member questioning present assumptions and mental models

  31. Build lean in to personal practice • Lead by example • Company culture is a direct reflection of the values, philosophy and personality of the leaders • What you do must support what you say or there will be confusion. • Standardization: apply lean to how you go about your daily and weekly activities. • Structured processes for activities • Structured flow for time management • 5S • Reflection: Look back to see what was effective

  32. Scientific Method Advantages of a “Learner” Lean Leaders are Teachers Reflection Dangers of a “Knower”

  33. How do Lean Leaders Think? “Employees are offering a very important part of their lives to us. If we don’t use their time effectively, we are wasting their lives.“ Eiji Toyoda “To the greatest extent possible we should have people working on things that matter.“ Bob Emiliani

  34. Is it working? YES NO Take credit. Did I mess with it? YES I’m an idiot! Does anyone know? I’m in trouble! NO YES Will it blowup in my hands? YES Can I blame someone or something else? NO NO NO Cover it up. Look the other way YES No problem!

  35. Climate and Culture Culture: values, beliefs, assumptions and behaviors

  36. OUR BELIEFS, VALUES & PRINCIPLES Respect for the Individual Integrity & Ethics Accountability Teamwork Customer Satisfaction Initiative Results Driven

  37. AFFILIATION Employment Brand Company Reputation & Success Corporate Citizenship & Social Responsibility Work Climate & Member Experience Communication & Social System Work-Life Effectiveness & Support Leadership Effectiveness & Boss Relationship Team & Peer Relationships Workplace of the Future DIRECT FINANCIAL Base/Fixed Pay Incentives/Bonus Cash Recognition Pay Practices Market Pay Process INDIRECT FINANCIAL Benefits Non-cash Recognition Company Ownership Woodward Total Rewards Strategy WORK CONTENT Title Job Tools/Technology Variety Challenge Ability to Act Performance Expectations & Feedback Meaningful Work CAREER Career Development Learning & Development Employment Security Through Growth and Skill Attainment Promotional Opportunity Global Experience/Mobility

  38. Woodward – CSU Partnering • PLI • Energy Conversions Laboratory • Donations • Engine Controls • Experiments • Business Program • System Engineering • Contribution for Program Chair • Syllabus • Interns

  39. About Woodward

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