OPERATIONAL EXCELLENCE: LEAN CULTURE. Jon Geisler

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1 OPERATIONAL EXCELLENCE: Jon Geisler

2 What do you mean when you say, We want to start a lean initiative? Utilization of lean tools to solve problems? Reduce head count? Create Kaizen events? 5S our facility? 2

3 Lean Tools 5S Andon System Bottleneck Analysis Continuous Flow Gemba Philospohy Heijunka Hoshin Kanri Jidoka (Autonomation) Just In Time Kaizen Kanban System Lean Tools Key Performance Indicators Muda Elimination Poka-Yoka Root Cause Analysis SMED Standardized Work TPM Value Steam Mapping Visual Factory Spaghetti Diagram Short Interval Control Page 3 CONFIDENTIAL

4 WHY DO LEAN INITATIVES FAIL Too much focus on the tools: No true focus on developing the workforce Lack of understanding of where value is created Lack of a clearly communicated strategy No true organizational leadership

5 Key Elements of the Lean System Best Quality Lowest Cost Shortest Lead Time Through shortening the production flow by eliminating waste Just-In-Time One Piece Flow Kaizen Built-in-Quality Full Work System Pull Systems Level Production 1. Standardized Work / Workplace Organization Flexible, Capable, Highly Motivated People Operational Stability 2. Floor Management Development System (FMDS) 3. Total Productive Maintenance Poka Yoke design mistake proof processes Andon make quality problems visible 4. Quick Changeover

6 A Partnership between an Organization & its Employees Organization provides Stable Employment & Sustains or Improves Working Conditions Lean Culture Organizational Prosperity is achieved through Continuous Improvement Respect Partnership Mutual Trust Continuous Improvement Employees Satisfaction is experienced through the Continuous Improvement Process Employees Contribute Efforts to Realize Company Objectives

7 Lean is building a comprehensive MANAGEMENT SYSTEM The system must have focus on: Purpose Process People 7

8 CALL IT WHAT YOU WANT, BUT LEAN WORKS BY ANY OTHER NAME: CONTINUOUS IMPROVEMENT CULTURE OPERATIONAL EXCELLENCE TPS Proven results in a full range of industries MACHINE BUILDING FOOD MANUFACTURING PHARMACEUTICAL MANUFACTURING AIRLINE MANUFACTURING HEALTHCARE

9 THIS IS ABOUT LEADERSHIP Creating the frame work for your team to lead Setting standards and behavioral expectations Leadership Standard Work is as important as shop floor standard work

10 LET S FOCUS ON HOW TO SIMPLIFY AND SUCCEED Set Expectations Create and document standard work (SWES) This concept is not novel or debatable Define Normal Conditions to the workforce Audit the process / standard work Recognize when there is an issue Look for improvement

11 SIMPLIFY AND SUCCEED Transparency of problems Solve Problems Teach the METHOD for Problem Solving get involvement. Develop problem solvers Document the improvement Update the standard work Communicate to the team

12 LEADERSHIP MUST EMBRACE AND MODEL THESE BEHAVIORS Go and See: Define Normal Conditions Problem Solving Sustain and Nurture the Processes and People Every meeting, Every problem solving event is an opportunity for DEVELOPING YOUR TEAM

13 SERVANT LEADERSHIP Leadership supports the team Suppliers Team Members - Customers Team Members Group Leaders Asst. Manager/Manager Asst/General Manager Vice President President

14 LEADERSHIP RESPONSIBLITY DEVELOP YOUR PEOPLE: CREATE AN ENVIRONMENT THAT ALLOWS THE TEAM TO BE SUCCESSFUL CREATE AN ENVIRONMENT FOR TRANSPARENT COMMUNICATION REMOVE OBSTCALES DEVELOP YOUR PEOPLE When you were made a leader you weren t given a crown, you were given the responsibility to bring out the best in others Jack Welch

15 OPERATIONAL MANAGEMENT SYSTEM: TWO COMPONENTS FMDS Effective Shop Floor Management Focuses on building an effective visual management system to help the group achieve business goals Team Member Skill Development Activities and tools to help develop team members capabilities to perform Standardized Work and achieve daily production goals with safety and high quality

16 TEAM BOARD-FLOOR MANAGEMENT DEVELOPMENT SYSTEM FMDS

17 Plan-Do-Check-Act Training Daily Operations Action PDCA Plan STANDARD WORK Problem Solving Key Points Process Development Check Reasons Do Product Development

18 Performance Improvement is a way of life, but is not linear Kaizen Problem Kaizen Problem Standard (Capability) Actual (Performance) STANDARD WORK Standard: Record of best known method to perform work repeatedly Problem: Actual performance has fallen below proven capability Kaizen: Develop a better method to perform work reliablity

19 Operational management FMDS system: Primary way leadership creates team accountability and develops future leaders Every engagement is an opportunity to develop the work force

20 It is your responsibility to: Create an environment in which your team can be successful Develop your people into leaders