COMPLEXITY PEG PENNINGTON

EXECUTIVE DIRECTOR, CENTER FOR OPERATIONAL EXCELLENCE

THE OHIO STATE UNIVERSITY

COMPLEXITY

A complex system is one in which

there are multiple interactions

between many different

components.

COMPLEXITY

SOMETHING BAD IS ABOUT TO HAPPEN

Interactions

Coup

ling

Linear Complex

Tig

ht

Loose

Normal Accidents, C. Perrow

COMPLEXITY FRAMEWORK

COUPLING - LOOSE time

capacity

time a b c

COUPLING - TIGHT a b c d e f g

INTERACTION - SIMPLE

a b c

INTERACTIONS – COMPLEX

D

Sub system A

Sub system B

Sub system C

Interactions

Coup

ling

Linear Complex

Tig

ht

Loose

Normal Accidents, C. Perrow

VULNERABILITY

Interactions

Coup

ling

Linear Complex

Tig

ht

Loose

Normal Accidents, C. Perrow

VULNERABILITY

Interactions

Co

up

ling

Linear Complex

Tig

ht

Loo

se

Normal Accidents, C. Perrow

COMPLICATED

Power Grids

Air Traffic

Control

Interactions

Co

up

ling

Linear Complex

Tig

ht

Loo

se

Normal Accidents, C. Perrow

COMPLEX

Power Grids

Air Traffic

Control

Intensive Care Unit

Manufacturing

Interactions

Co

up

ling

Linear Complex

Tig

ht

Loo

se

Normal Accidents, C. Perrow

LEAN IMPACT

Power Grids

Air Traffic

Control

Intensive Care Unit

Manufacturing

Interactions

Co

up

ling

Linear Complex

Tig

ht

Loo

se

Normal Accidents, C. Perrow

ORGANIZATIONAL COMPLEXITY

Power Grids

Air Traffic

Control

Intensive Care Unit

Manufacturing

STRATEGY SYSTEM PEOPLE SYSTEM PROBLEM-SOLVING SYSTEM DAILY MANAGEMENT SYSTEM

COMPLICATED OR COMPLEX?

ORGANIZATIONAL COMPLEXITY LEADS TO INDIVIDUAL COMPLEXITY

ORGANIZATIONAL COMPLEXITY LEADS TO INDIVIDUAL COMPLEXITY

SHARED VALUES

SAFETY CULTURE

STRATEGY SYSTEM PEOPLE SYSTEM PROBLEM-SOLVING SYSTEM DAILY MANAGEMENT SYSTEM

TEAM DIVERSITY

PSYCHOLOGICAL SAFETY

We cannot change the human condition, but we

can change the conditions under which humans

work.

James Reason, Professor of Psychology

SYSTEMS THINKING

STOP MULTITASKING

FOCUS

STRATEGY SYSTEM PEOPLE SYSTEM PROBLEM-SOLVING SYSTEM DAILY MANAGEMENT SYSTEM

UNDERSTAND PROCESS FLOW

SIMPLE, DIRECT PATHWAYS

“Simplicity does not

precede complexity, but

follows it.”

LEARN FROM THE PAST

EVERYDAY PROBLEM SOLVING

LEARN FROM THE FUTURE

REDUNDANCY

STRATEGY SYSTEM PEOPLE SYSTEM PROBLEM-SOLVING SYSTEM DAILY MANAGEMENT SYSTEM

SHORTEN FEEDBACK LOOPS

LEADERS AS TEACHERS

RIGHT SIDE

StrategySystem

Problem Solving System

PeopleSystem

Daily Management

System

The Lean Management System

text

textVoice of the Customer

Current Condition

Goal

Voice of the Process

Voice of the Financials

DMAIC

A3 A3

A3

A3

A3 A3

PULL FLOW

*Kanban

*Cellular Design*Quick

Changeover

*Error Proofing

*Total PreventativeMaintenance

*Std Work*Checklists

*5S*Visual Work

STABILITY Peg Pennington, Center for Operational Excellence

TRUE NORTHVoice of the CustomerVoice of the ProcessVoice of the EmployeesVoice of the FinancialsVoice of the Suppliers

Go SeeAsk Why?

Show Respect

Lin

e o

f S

igh

t

Safety Quality

Leadtime Cost

Hourly , Daily, Weekly

Leading Metrics

A3 Thinking

LEFT SIDE

Value Stream