Your Lean Transformation as a Leadership Development Platform

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2 Your Lean Transformation as a Leadership Development Platform A Blueprint to Developing Leaders: Where to Start Start Here! Pre- Deployment Coordination, Planning, Agreement, and Scheduling PHASE ONE: WORK KAIZEN 1. Establish Work Standards as the best method to work safely and efficiently to, produce quality 2. Basic Andon System Introduce Breakdown & Daily Maintenance 3. 8 Step Problem Solving and Work CI PHASE TWO: PROCESS STABILITY KAIZEN 1. Andon Management: autonomous problem identification system that non-standard conditions 2. Intermediate Problem Solving 3. Condition Based Prev. Maintenance PHASE THREE: FLOW KAIZEN 1. Value Stream Management to Create Continuous Flow 2. Controlled Stock Logic in support of Level Pull 3. Shift Schedule Attainment to Customer Request 4. Supplier integration PHASE FOUR: SYSTEM KAIZEN 1. Integration of Comprehensive and Integrated Operational Excellence System 2. Level 3-4 BAMA maturity levels in operating systems 3. Defined Operational Management Cadence and Leader Std Work PHASE FIVE: OUTREACH KAIZEN 1. BAMA level 4 clearly maturing 2. Deployment of Operational Excellence operating model in all functions & operations 3. Aligned/Cascading Strategy Deployment 4. Help Suppliers w/tps 20 % Start Here < 5% Get Here 80% Start Here < 15% Get Here < 5% Get Here

3 The 2nd White Elephant in the Room TPS is a System that requires Team Based Leadership Isao Kato on Who is Responsible for Leading TPS The parties most responsible for promotion of TPS style activities should be the managers and supervisors of the area in question. Managers and supervisors must have specific goals for: Safety Quality Delivery Cost Reduction Morale for their area of responsibility and they (managers and Supervisors) must drive improvement toward these targets continuously.

4 Toyota Leaders vs. Traditional Managers BAD Improvement Daily Work I love trouble shooting! I really feel like I am doing something! Trouble Shooting Better Improvement Daily Work Trouble Shooting Ideal State Improvement Daily Work Trouble Shooting Develop Others and Self though all activities

5 So, How Can We Do a Better Job of Developing Lean Leaders?

6 Why Combine The Toyota Way with the Green Beret Way? The TOYOTA WAY Organizational Leaders are the Main Focus of training efforts in Toyota since they directly and dramatically affect safety, quality, cost, productivity, and the morale of the team environment. The GREEN BERET WAY The US Army Special Forces Qualification Course is the gateway to producing one of the worlds most prepared globally deployable leaders. Acting as the front line of US Strategic Power and Diplomacy, a Green Beret is capable of sitting down and negotiating with, influencing and winning the hearts and minds of battle hardened Warlords and American politicians, alike.

7 Prior Service Training & Leadership Airborne School Ranger School SF Assessment and Selection Phase I Orientation History ITC Phase II Language And Culture Tng Phase III SF Core Skills & Small Unit Tactics Phase IV Phase V Phase VI SF MOS Profession Training Unconventional Warfare Team-Exercise Graduation Specialized Training SF Officer SF Weapons Sgt SF Engineer Sgt SF Medical Sgt SF Communications Sgt SF Skills Cross Training SERE Survival Training

8 The White Elephant in the Room We Wait to Late to Develop Leaders Current State of the Industry????? 1. Rarely requires defined selection criteria based on core values and attributes; primarily based on business need 2. Experiential, selfdevelopment or postpromotion Late to develop leaders 3. No particular Timeline 4. Rarely a designed pathway 5. Rarely an integrated mentorship methodology The Toyota Way 5 20 years The Lean Leadership Way 6 36 month; Advanced 3-5 years + 1. No particular Timeline 2. Defined Core Values and Leader Attributes 3. Structure Pathway 4. Defined Core Competencies for Process Leaders; People Leaders; and Executive Leaders 5. Progressive Leadership Responsibilities and Role Based Competency 6. Integrated Mentorship 1 2 levels up 1. Lean Transformation Based 2. Defined Core Values and Attributes 3. Defined Core Competencies 4. Progressive Leadership Roles and Role based Competencies 5. Integrated Mentorship Two Levels up and Two levels down The Green Beret Way months 1. Prior Service Leadership 2. Military Leadership Schools Req. 3. Defined Core Values and Attributes 4. Defined Core Competency 5. Language and Cultural Req. 6. Progressive Leadership Roles and Role based Competency 7. Structured minimum time in rank mos. 8. Alternating Leadership and staff roles 9. Integrated Mentorship Two Levels up 10. Pre-promotion Formal Schools in Advanced Military Education 11. You have to jump out of airplanes!

9 Creating Leaders Shared Core Values Dynamic and Time Sensitive Operating Environment Leadership Skill Development Operational Standards Skill in Teaching and Communication Core and Role Based Competency Role Competency Institutionalize Lessons Learned Act/Adjus t Plan Scientific Method Do Structured Problem Solving Check Core Competency Lead others in Problem Solving and Improvement Activities Continuous Improvement Detailed Job Knowledge Development Team Based Matrix Organization Leadership Engagement and Support

10 A Blueprint to Developing Leaders: 20 Radical Steps 1. Train as a team-based Cohort to develop organizational cohesion: Collaborate and Graduate 2. Use Defined Lean Leadership Attributes as a basis for Selection, 360 Assessment, and Coaching 3. Make Lean Leaders responsible for developing others and for the performance of others 4. Start with Senior Leaders and Area of Greatest Business Need SQDC Functional Leaders 5. Train Leaders for their roles as Lean Transformation leaders not Kaizen Men! 6. Design Lean Leader Training and Development to develop both Core Competencies and Role Based Competencies for responsibility two levels above their lean leadership role 7. Teach Leaders to think like an Executive early: Always make the Business Case! 8. Incorporate Training Within Industry 9. Teach how Adults Learn 10. Use a Train-the-Trainer approach for developing Lean Leaders 11. Develop coaching skills and a Kaizen mindset through PDCA/Respectful feedback in activities 12. Implement an annualized monthly Jishuken / Self and Group Study plan

11 A Blueprint to Developing Leaders: 20 Radical Steps 13. Everyone Needs a War Story Design Leadership Development to breakdown walls and silos to create identity and fraternity through Challenging Discovery Experiences 14. Teach Leaders how to recognize and eliminate waste in the following order: Work methods, then Process, then Systems 15. Stress the importance of the effective and full utilization of resources ALL resources are scarce 16. Ensure Operational Leaders develop Operational Leaders 17. Lean Leaders must free up future Lean Leadership candidates through Lean Transformation Implementation. 18. Train Leaders for deployment outside they own operation 19. Establish a career path training including pre- & post-promotion core competencies, role based competencies. Throughout a Leader s Career, Teach the application of Structured Problem Solving, Standardized Work, Project Management and Communications Skills for each level of responsibility. 20. Maintain Lean Leadership Calibration through developing your own Lean Leadership development program and network mentors, taught by Lean Leadership graduates.

12 1. Train as a team-based Cohort to develop organizational cohesion: Collaborate and Graduate

13 President (Senior Leader On Site) VP of Operations (Senior Manufacturing And Functional Managers) Leads upstream Machine Intensive batch operation Production Team Department Manager Area Manager (Assistant Managers) Group Leader (Supervisor Level) Kaizen Team A voluntary Team assignment Made up of promotable Team leaders and led by a Senior Group leader Single Minute (Breakdown) Response Team Leads Production Cells or Line Production Teams Team Leaders (Hourly) Production Team (5-6 Team Members) Expandable to 10 Team Members

14 2. Use Defined Lean Leadership Attributes as a basis for Selection, 360 Assessment, and Coaching Before you begin your Lean Transformation, select leaders that can be Pioneers during the transformations phase. Train leaders for the specific roles required to transform your current operating model to a lean operating model. Throughout Lean Leadership training, benchmark and coach leader values, thinking and behavior: Integrity Courage Perseverance Personal Responsibility Professionalism Adaptability Team Player Capability

15 3. Make Lean Leaders responsible for developing others and for the performance of others

16 4. Start with Senior Leaders and Area of Greatest Business Need SQDC Functional Leaders Front L-R: President, General Manager, Inside Director of Inside Sales, Director of Quality, Director of Finance, Director of Strategic Accounts

17 5. Train Leaders for their roles as Lean Transformation leaders not Kaizen Men!

18 6. Design Lean Leader Training and Development to develop both Core Competencies and Role Based Competencies for responsibility two levels above their lean leadership role

19 Materials Engineering Scheduling Group Leaders Lean Analyst Quality Operations Manager Team Leaders Plant Manager 19

20 7. Teach Leaders to think like an Executive early: Always make the Business Case!

21 8. Incorporate Training Within Industry

22 Safe and Waste-Free Work Standards Trained to Standard with TWI Job Instructions Method All work is highly specified as to: Work Content Safe and Proper Sequence Timing Quality Outcome LLA teaches Training within Industry Job Instruction (TWI- JI) method - a proven method for teaching associates how to perform a Job Safely, Correctly, Conscientiously and Efficiently within the Cost Standard Total Cross-functional Skills Development & Management

23 9.Teach how Adults Learn

24 10. Use a Train-the-Trainer approach for developing Lean Leaders

25 The Lean Leadership Academy Way Train-the-trainer: Make Lean Leaders a resource to each other by providing resources and standards to allow them to teach and check knowledge for the following subjects: Eight Wastes Toyota s 8 Step Problem Solving The 7 Quality Tools The 7 Management Planning Tools A3 Structure, Form, and Purpose 5-S and Workplace Organization Situational Leadership Use Group Study, Classroom, and OJT through Lunch and Learn, Buddy Study, and Group Projects to maintain team cohesion between classes. Teach coaching skills by ensuring every activity completes the PDCA cycle Recommendations for Improvement Best Practices and Lessons Learned Standards, Problem Solving, and Kaizen Skills at the Work Level

26 11. Develop coaching skills and a Kaizen mindset through PDCA/Respectful feedback in activities

27 12. Implement an annualized monthly Jishuken / Self and Group Study plan

28 13. Everyone Needs a War Story Design Leadership Development to breakdown walls and silos to create identity and fraternity through Challenging Discovery Experiences Maintenance Mgr And Operations Center Director Andon Status Awareness Plant Quality Manger And Scheduler at the Gemba Plant Operations Manger Discussing Hourly Production Status Update by Group Leader with Value Stream Managers at Obeya Production Status Board Obeya Team conducts PDCA daily to improve Obeya Operations Single Minute Breakdown Response Team PDCA s Red Zone response performance Obeya Team prepares to Go to the Gemba for Red Zone Condition

29 The Power of Real Lean Thinking I was always intrigued by the mental development aspects of the LLA approach. I recognized the benefits of focusing and performing in such an intense leadership emersion program. I appreciated the discipline and present moment attention required to remember details to exacting standards. The pressure packed, time sensitive nature of LLA tasks felt like brain sprints - forcing us to remain calm and think quickly on our feet. I viewed all of this as a positive approach to sharpening our minds as we learned the valuable leadership skills required to support and lead TPS methodologies. I didn t expect I d ever really need to perform in an environment that intense I was mistaken. I was recently in a high-pressure situation in which we risked losing an extremely critical customer based on our inability to meet production demand at one of our operations that had not yet been through our new Lean Business Model. We had 2 weeks to demonstrate we could handle the increasing demand or we would lose a multi-million dollar contract. To accomplish this, we desperately needed to eliminate waste and apply Lean methodologies to the manufacturing operation. The critical leadership skills, time management, team cohesion techniques, and Lean methodologies learned through LLA training were all applied and critical components to successfully securing the operation. I m proud to report we are currently meeting customer demand with capacity to spare. Thank you for the training that helped prepare me for this very situation. Damien Mancini (right) Director of Strategic Aerospace Accounts

30 14. Teach Leaders how to recognize and eliminate waste in the following order: Work methods, then Process, then Systems Ohno Circle Ohno Circle

31 15. Stress the importance of the effective and full utilization of resources ALL resources are scarce

32 16. Ensure Operational Leaders develop Operational Leaders

33 17. Lean Leaders must free up future Lean Leadership candidates through Lean Transformation Implementation.

34 18. Train Leaders for deployment outside they own operation

35 19. Establish a career path training including pre- & post-promotion core competencies, role based competencies. Throughout a Leader s Career, Teach the application of Structured Problem Solving, Standardized Work, Project Management and Communications Skills for each level of responsibility. *MANAGER PRE-PROMOTION MANAGER POST-PROMOTION Training to perform role at each level: Role of the Team Leader Role of the Group Leader, The Role of a Plant Manager, etc *GROUP LEADER PRE-PROMOTION GROUP LEADER POST-PROMOTION ASST. MANAGER PRE-PROMOTION ASST. MANAGER POST-PROMOTION A3 Writing Course Lectures and Study Groups Jishuken TWSC TEAM LEADER POST-PROMOTION TJR - Job Relations: Toyota Communication Skills Kaizen Leader Course Standardized Work Course *TEAM LEADER PRE-PROMOTION TJI - Job Instruction NEW EMPLOYEE ORIENTATION Basic Problem Solving TJS - Job Safety *Flexible Workforce Skills Training Basic TPS, Safety, and Quality Training Toyota Training Path From Assimilation to Culture

36 20. Maintain Lean Leadership Calibration through developing your own Lean Leadership development program and network mentors, taught by Lean Leadership graduates.