Making a Lean Transformation – a Trade Partner’s … a Lean Transformation – a Trade...
Transcript of Making a Lean Transformation – a Trade Partner’s … a Lean Transformation – a Trade...
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Quality Support Services, Inc.
Dennis Sowards, Quality Support Services, Inc.
480 835-6048 [email protected]
Making a Lean Transformation – a Trade Partner’s
Perspective
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Quality Support Services, Inc.
Lean Thoughts
TQM vs. PQM vs. TQLS
Lean Literature & Books
BUT WE ARE DIFFERENT! Why do Lean?
Copy the leaders Customer requirement Your Share of the PIE?
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Quality Support Services, Inc.
Session Objective
At the end of this session you will be able to start or contribute to starting a Lean initiative in your company – ONE GOOD IDEA
Think Lean –> Do Lean –> Lead Lean
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Quality Support Services, Inc.
How big is your slice?
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Quality Support Services, Inc.
How do we bid a job today?
Estimate the Costs $$
Profit margin
+ = Bid Price
The Lean way to bid a job:
Market Price
- Profit margin
= Cost to do the Job
Is this Possible?
Why Lean?
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Quality Support Services, Inc.
Where Would You Cut? Direct costs Labor 60% Materials 25% Equipment 6% Sub Contractors 7% Indirect Costs 2%
What would be the possibilities if you could reduce your Cost of Goods sold (Direct Operating Costs) by 15%?
Why Lean?
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Quality Support Services, Inc.
Why do Lean? To be more competitive & CAPTURE the market.
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Quality Support Services, Inc.
Lean Implementation Principles ! No one way to implement Lean. Must have a Lean
champion
! Your Lean initiative must fit (and change) your company’s culture
! Must always know the True North Ask 2 Questions
! Developing your Lean initiative is critical to your success. You must own it.
! It is a journey and no one has reached the end yet! Requires Continuous Learning (17).
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Quality Support Services, Inc.
Lean Thinking Foundation Principles
PEOPLE Build Buildings PEOPLE Lead People
" We don’t do Lean to people but with them
" We respect each other (everyone) " Lean Improvement = (Level of
Employee Participation) Squared!
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Quality Support Services, Inc.
Lean Thinking Foundation Principles
Lean is about adding Value and reducing Waste.
Must Understand Value
! What the customer is actually willing to PAY for (USEFULNESS/COST)
! Relates to the whole product or service received
! Work done Right the First Time
! Is the opposite of WASTE
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Quality Support Services, Inc.
Lean Basics
Understand WASTE (Muda) - 7 Basic Wastes
Are there more?
# Defects in products: Rework, Errors & Punch Lists # Overproduction: Fabricating material or ordering it too soon, JIC
thinking. Ordering extra material because of poor quality or fit # Inventory: Material stored at site or yard, work in process, unused
tools & parts, forms and stashes (Strategic vs Excess?) # Unnecessary processing: Double & triple estimates from
suppliers, redundant or unnecessary reporting, multi signatures on forms, material requisitions or time sheets, any non-value added steps
# Unnecessary movement of people: Treasure hunts Movement Not = WORK!
# Transport of goods: moving material, tools or parts, handing off work between crews, recycling
# Waiting: Crews waiting for equipment, plans, RFI’s, field orders, or material, payroll waiting for time sheets, equipment waiting to fabricate material
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Quality Support Services, Inc.
Three Priorities of Lean Management 1. Keep the crews installing- value
added work 2. Reduce inventory 3. Reduce other costs
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Quality Support Services, Inc.
Lean focuses on maximizing the whole project NOT on maximizing individual performance.
Collaborate Really Collaborate
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Quality Support Services, Inc.
Go and See
Go to “Gemba” – where value is added
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Quality Support Services, Inc.
Lean Leaders do Muda Walks
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Quality Support Services, Inc.
Do a Muda Walk
Go to Gemba & do “Chalk Watch”
# Flow (Don’t watch the work - watch for what gets in the way of value!)
# Treasure Hunts # Waste # Standards/systems/methods
(can’t improve if no standard way exists) # Equipment maintenance & utilization # Ask Why? (5 times) # Ask: How can we make it easier for you to
do your job? # Fix Problems Now
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Quality Support Services, Inc.
Kaizen = Improvement for the good
Everyone has 2 jobs:
The 8th Waste = Not using people as a resource
DO WORK IMPROVE WORK (Kaizen)
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Quality Support Services, Inc.
Leading Lean
One construction company
405 employees
2005 - Zero Ideas
2006 - 11,000 Ideas
! CEO challenged >> 2 implemented ideas per employee per month!
Everybody - Everyday 100 x 1% better than 1x100%
Your Challenge – 2 improvements (save 5 minutes) in next month
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Quality Support Services, Inc.
Engaged
Employees
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Quality Support Services, Inc.
People Equation
Involvement + Communications= Engaged Employees
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Quality Support Services, Inc.
People Engagement Systems
$ Traditional suggestion systems $ Decentralized systems (QNEK, 2
Second Lean) $ Focused Improvements – True
North
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Quality Support Services, Inc.
If you are not doing the 5S’s you are not doing Lean!
Masaaki Imai
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Quality Support Services, Inc.
Lean Implementation
Processes
Purpose
An Organization
Engaged
Employees
Standardize, then improve
Processes &
Operations
Top Management
Leadership
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Quality Support Services, Inc.
Various Tools
Systematic use of tools & training
Lean in culture, people &
enterprise
Levels of Lean Implementation
Companies ultimately progress or stall at these levels.
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Quality Support Services, Inc.
Where to start - Level 1?
Define a Key Process - Value Stream Map it # Identify the Steps - value added/non value added
- Who Touches - Requirements
# Define/verify VALUE as seen by the customer > Improve Quality - Eliminate Defects - Where do we not meet the customer’s requirements? > Do Root Cause Analysis, do Poka Yoke
Make Value Flow - so one step leads immediately to the next with no batches? > Look at handoffs - Define Rules of Release
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Quality Support Services, Inc.
Eliminate Treasure Hunts - Organize the Workplace > Use 5S’s, Spaghetti Chart & Kanban
No Muda - Attack waste with a passion like Ohno > Use the ‘chalk watch’ & 5S’s
Standardize process step, tools & equipment
Implement Quick & Easy Kaizen/ 2 Second Lean >>2 implemented ideas per employee per month!
Try something
Where to start - Level 1?
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Quality Support Services, Inc.
Improve Project Management
Apply Last Planner System® # Schedule # Look Ahead Plan # Weekly Work Plan # Measure PPC # Do Constraints Analysis
Where to start - Level 1?
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Quality Support Services, Inc.
Implementing Lean
Level 1 & 2 - WHAT TO DO –Focus on individual projects and tools (LPS - 5S’s - Q&EK)
Level 3 - Focus on Company:
! Who will Lead the initiative?
! What systems & processes need to change?
! How will you educate everyone?
! How will you measure success?
! How will you communicate it?
! How will you sustain your Lean efforts?
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Quality Support Services, Inc.
Key Leadership Principles
Structure follows strategy
Learn - Teach Correct Principles
Main Role of Lean Leaders • Gain agreement on what is important (True North &
Priorities) • Seek to add Value & eliminate Wastes as a competitive
advantage • Go & See to help create Lean processes • Enable workers to create stability (standard work) and
then continuously improve every process • Mentor subordinates as Lean managers - ask questions
not give answers. Allow failures.
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Quality Support Services, Inc.
Leading the Lean Organization
Principles:
• Someone needs to ‘own’ it, drive it, champion it
• Must have Accountability & Capability
• Middle management will hold Lean efforts hostage
Do you need a consultant?
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Quality Support Services, Inc.
Leading the Lean Organization
Lean champion vs Lean Steering Team vs Leadership Team
# Do Learning sessions
# Report monthly to Executive team
# Muda Walks
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Quality Support Services, Inc.
Communications - Why Lean? Why Change?
Principles:
• Need a compelling story with sense of urgency
• Need > Vision > Plan (otherwise just dreaming)
• Communicate 10X
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Quality Support Services, Inc.
Communications - Why Lean? Why Change?
Best Practices:
Announce effort - President
Stump speeches by executives, Newsletters, Recognize Success stories/ Pilots
Quarterly updates (from executives)
1st item on the agendas
Graphics/pictures (Visual) - Install Visual Lean Indicators/ Scoreboard
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Quality Support Services, Inc.
Lean Education – Train-Train-Train
Principles:
• Everyone is part of the company - ALL need Lean training
• Not everyone needs the same training at same time (JIT)
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Quality Support Services, Inc.
Lean Education ! All receive basic Lean training including
admin/back office
! Field receives LPS & 5S’s
! Support receives 5S’s & other tools
! Managers & supervisors also receive problem solving/root cause analysis
! Training for new employees
! Best if taught by senior managers & PMs
! Educate suppliers/trade partners
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Quality Support Services, Inc.
Lean Training Matrix
How will we train our people?
What?
Who?
How & When?
WHO
FM
Field Crew
WHAT
Basic 5S’s LPS Poka Yoke
X
X
X X
X
X
X
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Quality Support Services, Inc.
Lean Systems & Processes Principles:
Water what you want to grow - Systems must align:
! Performance Standards & Reviews & Compensation
! Hiring & Employee Development
! Improvement Ideas (Q&E Kaizen/ 2 Second Lean)
! Scheduling software & process
! Support Functions - need to “Support”
! Contracts
! Estimating factors
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Quality Support Services, Inc.
Lean Systems & Processes
GOOD - Keep usual policies and react as hot spots happen
BETTER - Lean Team identifies disconnects & helps Design & Deploy better policies & systems
BEST - Systematic Review by Executive Management Team to address problems quickly
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Quality Support Services, Inc.
Lean Measurement
Principles:
• What gets measured gets results - employees must see it!
• Do not measure if not doing analysis to Take Action
• Results vs Process Measures (2 Boards)
• Group vs Individual incentives
• Measure Value to Customer
• Conference room management vs. Gemba Management
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Quality Support Services, Inc.
Lean Measures
Measure:
# PPC & post it for crews & projects
# % Right First time (RFT)
# % On-Time delivery (material orders, jobs, shop orders)
# Customer Satisfaction
# Status of Jobs – Budget, Schedule & Quality
>Need an Owner for each measure
Use Scoreboard & Dash Board - review regularly & identify countermeasures. MAKE IT VISUAL
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Quality Support Services, Inc.
How to Sustain Your Lean Efforts?
Principles:
• Safety is a value, so is Lean Thinking
• No Instant Pudding but set High Targets and take ACTION
• Good is the Enemy of Great
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Quality Support Services, Inc.
How to Sustain Your Lean Efforts?
Actions:
# Steering Team meets monthly – hold themselves accountable
# Quarterly reports to executive team/owners
# Updates to all employees
# Annual Lean Sustainability Evaluations
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Quality Support Services, Inc.
Next Levels of Lean Thinking:
Lean Leadership ! Leader Standard Work ! Visual Controls ! Daily & Weekly Accountability ! Discipline
KATA Process Improvement
Set Challenge vs. random improvements Grasp Current Condition Set Target Condition PDCA execution KATA Coaching
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Quality Support Services, Inc.
Avoid the technology trap.
Lean is NOT about spending lots of money on capital equipment including technology!
Keep it simple. Technology is a tool not an end.
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Quality Support Services, Inc.
Change Management
20 - 60 - 20 Rule
Are you in the boat?
Critical Against
Virtually
Everything
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Quality Support Services, Inc.
# No sense of urgency # Lack of leadership # Not communicating with employees # Not creating short-term wins and
celebrating # Seeing this as a Quick Fix # Not anchoring the Lean changes with the
rest of the culture & systems
Barriers to Implementing Lean
The Real Barrier is thinking Lean can’t work in your company!
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Quality Support Services, Inc.
# Read books # Network – LCI, Valley of the Sun Lean
Benchmarking # Associations: AGC, PIPE/MCAA, SMACNA,
NECA... # Lean Enterprise Institute # Partner with other contractors, Peer
Groups # Other industries
How to Learn more?
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Quality Support Services, Inc.
Seven Points for Applying Lean
! Challenge conventional beliefs- without challenge there can be no progress.
! Experiment - Try it or you’ll never know!
! Tolerance for failure - improvement requires patience.
! Trust - improvements can not result in loss of jobs.
! Teamwork - total optimization rather than local (individual) optimization.
! Flexibility - rigid structures/policies will limit progress.
! Discipline - stick to the standards.
Source: “The New Manufacturing Challenge,” by Kiyoshi Suzaki, The Free Press, New York, 1987.
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Quality Support Services, Inc.
Every successful Lean transformation began with a passionate leader - Are you that Champion?
REMEMBER: You must change the processes – the way we do work or it is insanity!
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Quality Support Services, Inc.
What needs to change at our company? EXERCISE
More Lean
Less Lean