How to develop managers able to lean and sustain end to-end value streams

Lean Enterprise Academy www.leanuk.org

21st November 2008

How to Develop Managers able to Lead & Sustain end-to-end

Value Streams

David BruntSenior Fellow

Lean Enterprise Academy


Lean ImplementationSome Lessons Learned

Cherry picking tools is not enoughThe tools comprise a system

We focus on the flow of value to create a system

A way of thinking underlies the tools & system

We learn the thinking through doing

Ref: John Shook: Lean Enterprise Institute Senior Advisor


What is this way of Thinking?Purpose, Process, People

Lean starts with value from the perspective of the customerDelivers value through end to end processes (Value Streams) that no one seesThe aim is to get all the actions that add value to flow at the pull of customer demandBuilding in quality and standardising workPerformance delivered by a management system that at its heart is characterised by two principles

Respect for people and the engagement of everyone in continuous improvement

How do we Develop Managersin this Thinking?


Learn to Use PDCA

Do 4. Implement

PlanWhat

Why

How

1. Definition of Problem

2. Analysis of Problem

3. Planning Countermeasures

Check 5. Confirm Results

Act 6. Standardise


Systems ViewpointProblem Consciousness at Different

Levels in the Organisation

Important to understand:

The purpose of the cause of actionHow the action furthers the organisation’s goals, needs & prioritiesHow it fits into the larger picture & affects other areas of the organisation

Ref: Sobek & Smalley “Understanding A3 Thinking” (2008)


Grasp the SituationWhat is the Role of the Manager?

Knowledge of workHow we do things “Go and See”

Knowledge of responsibility

What we need to do by when

Skill in improvementHow can we do things better?

Leadership behaviour & motivation

Why we do things this way?

Teaching abilityHow to pass along skills to others?

ManagementResponsibilities

Right person on right job

Start new employees

Trainemployees

Plan handling & storing

Controlmaterial costs

MAN MACHINE

MATERIAL METHOD

Availability

Controlmachine costs

Maintain safety

Operate Co. policies

Timingschedules

StandardsMaterial quality

Develop cooperation

Maintainhigh morale

Improve everyone’sperformance


Define the Problem

A “problem” is… the gap between the way things are now & the way they’re supposed to be, or you want them to be, in the futureA manager has a problem when the work assigned fails to produce the expected results (Ref: TWI Training Materials)

Different levels of the organisation have different gaps to close


How should it be done?Learn how to learn

Focus on real problemsLearn by doing & “Go See”Teach the correct process for closing gaps

Prioritise the “vital few”Design a series of experiments

Set based concurrent developmentNo one best intervention method, but a mix that we test to find out the best ways

Spec

ific

atio

ns

Launch

Analyse& Test

Detail(repeat for sub-

systems, then assemble)

ImprovePick One

Concepts

Diagram Ref: Allen C. Ward, “Lean Product & Process Development” (2007)


From Strategy Deployment through Value Streams to

Standardised Work

AssemblyWipersStamping

Current State

44d55m

738

Steps

Time

Steel

DELTA STEEL

Stamping

GAMMA STAMPING

Warehouse Cross Dock

Wipers

BETA WIPERS

Assembly

Dist. Centre

Cross Dock

ALPHA MOTORS

Amplification

F E D C B A

%403020100

F E D C B A

Quality & Deliveryppm200015001000500

0

F E C A

%10

5

0

SteelDist. Centre

16d55m

398

Steps

Time

Amplification

F E D C B A

%403020100

Quality & Deliveryppm200015001000500

0

F E C A

%10

5

0

F E D C B A

DELTA STEEL

GAMMA STAMPING BETA WIPERS ALPHA MOTORS

Future StateFlow and Pull between Plants

The lessons can be used from strategy deployment, through value stream re-design to process step levels


What is a Plan?A set of agreements for

making a change or series of changes


How do we get Agreement?

Make performance visibleRegularly review, audit & apply PDCA to the gapsAsk why

Tell persuasive storiesCreate dialogue through the process


SummaryDefine the business problem and understand the gap(s)Teach managers how to see work as a process

The difference between value and wasteIdentify where problems occurGrasp the situation visuallyGet consensus on the “vital few” countermeasures

Develop a plan (with alternative experiments) to give managers the skills to think in the right way & create stability in the management process so we can connect activities together

Gemba walks & Value Stream MapsStructured “learn by doing” activities

Problem solving - “No problems is a problem!”Reviewing progress

Coaching – “one to one” & peer basedManaging visually

Be sure to make responsibility for the plan and deliverables clearDevelop a Check & Adjust process (with regular reviews) so we can see how successful we are & build learning into the process


Conclusions

Mastery of tools is importantBut success will come when we apply the right thinking to management development

Use the P-D-C-A methodology“What is/are the gaps we are trying to close?”Think in terms of alternatives rather than one best way

If we can compress time “from finding and defining a problem to implementing countermeasures” we will have a true competitive advantageOver time we will be able to apply the methodology to ever more difficult problems our businesses face


21st November 2008

How to Develop Managers able to Lead & Sustain end-to-end

Value Streams

David BruntSenior Fellow

Lean Enterprise Academy

How to develop managers able to lean and sustain end to-end value streams

Education

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