LEAN MANAGEMENT SYSTEM

A COMPREHENSIVE MODEL FOR MANAGING LEAN

DEPLOYMENT
COURSE OBJECTIVES

To describe the basis and importance of LMS

To describe a comprehensive Lean system.

To describe and elaborate on Lean Management System

model for sustainable organisation transformation.
EXPECTED OUTCOMES

• Able to describe the 3 main drivers of Lean Management

System (LMS) framework.

• Able to describe the critical roles of management for

successful implementation.
MODULE CONTENT

1. TQM Overview: Basis for Lean Management System

2. Overview of Organisation-wide Lean System: Operation &

Management

3. Deep Dive: Lean Management System

OVERVIEW TOTAL QUALITY MANAGEMENT
BASIS FOR LEAN MANAGEMENT SYSTEM
MANAGEMENT COMMITMENT IS
CRITICAL

I should estimate that in my experience most troubles and

most possibilities for improvement add up to the proportions
something like this:
94% belongs to the system (responsibility of management)
6% special
- W. Edwards Deming

“Management is doing things right; leadership is doing the

right things. ”
- Peter Drucker
WHAT IS TQM?
COMPILATION OF
BEST PRACTICES
TOTAL QUALITY MANAGEMENT

• TQM is an organisation-wide approach to continuously

delighting customer through relentless continuous
improvement through product or service excellence.
• It aims to transform everyone in the organisation
through progressive changes in attitudes, culture, structures
and system.
 DRIVERS FOR TQM

1. A clear vision of where 4. System thinking or process management

company is going. emphasise on maximising customer value.

2. A small numbers of 1 2 5. Understand how

key objectives that the each processes
company must achieve Alignment Linkages add value to the
to realise its vision. customer.

3. Cascade the key objectives 3 6. Team-based approach

throughout the entire involving employees with
Replication
organisation so that everyone new skills, understanding of
knows how to perform and company’s strategy and
behave to help company goal, as well as competition
achieve the vision.
7. Share, reward and
horizontally replicate.
 THREE CRITICAL ACTIVITIES

Maximise stakeholder value

(Business School) vs. Maximise “In god we trust, others bring
customer value (Engineering School) data.” Deming

Customer Count

Continuous
improvement Complacency and
ignorance are two
ingredients of FAILURE.
OVERVIEW OF ORGANISATION-
WIDE SYSTEM
OPERATION & MANAGEMENT SYSTEMS
LEAN SYSTEM

Hardware Software

Need both for successful transformation.

However, far to many Lean implementation emphasise on the hardware. Why?

As the result, only handful successfully implemented the Lean System.
ORGANISATION-WIDE LEAN SYSTEM

“Lean Operation System” “Lean Management System”

2 1 Policy
Deployment Talent Development System
Best in
Quality-Lowest in Cost-
Shortest Lead Time-High Moral
Clear Vision Autonomous team
Goals activities
Autonomous Team Direction
Just In Time

& Change Capability

Control

Jidoka
Kaizen
Value Stream Model
Design Area
Waste Elimination
Effective System
Value Stream Mapping
Lean
A3 Report
Office
5S Standardised Work Heijunka
Leadership/Accountability/Urgency

Suggestion System

These are the tangible component of Lean These are the intangible component of Lean
system that enhance efficiency and effectiveness system that manage organisation
of the operation. Usually immediate effects are transformation. The effects are realised in long
visible after proper implementation. term with a sustainable Lean system in place.
 LEAN OPERATION SYSTEM

Best in
Quality-Lowest in Cost-Shortest
Lead Time-High Moral
Autonomous Team
Just In Time

Jidoka
1st Pillar Kaizen 2nd Pillar

Waste Elimination
Value Stream Mapping
Foundation
5S Standardised Work Heijunka
Leadership/Accountability/Urgency

“Making a factory operates for the company just like human body operates for
the individual.” Taichi Ohno
 LEAN OPERATION SYSTEM
IMPLEMENTATION FRAMEWORK

Achieve basic stability Process optimisation Leveling

Step 3: Step 5: Step 6: Step 7:

Visual factory Continous Flow Build in quality Kaizen
• One piece flow • Automatic stop • Autonomous
• Cellular layout • Andon team
• Pull system • Poka yoke • Suggestion
Step 2: (Kanban) • Escalation system
Standardisation • SMED procedure • Replication

Step 1: Step 4:
5S Value Stream Design

Leadership commitment and organisation readiness

LEAN MANAGEMENT SYSTEM
MANAGING CHANGE EFFECTIVELY
 LEAN MANAGEMENT SYSTEM

Cascading goals
Functional & support Skills set
Communication & agreement
Coaching

Why does it matter?

Policy Deployment Talent Development System
What is the long-term
expectations?
Escalation procedure
Clear Vision Morning market
Direction
Goals Change
& Autonomous team
Capability
Project identification & alignment Control activities

Value Stream Design Model Area

Effective Pilot implementation

Standardised reporting Horizontal replication
and monitoring A3 Report System
Lean Office
Idea generation procedure Satellite office
Reward & recognition Suggestion System Lean Committee Chaired by CEO
 TOTAL INVOLVEMENT
Role Impact
PDCA Tools: Problem:
Policy Management MURA & MURI
Senior
MUST PROVIDE VISION
Management
AND INCENTIVE Likes the results

PDCA Tools: Problem:

VSM or A3 MURA & MURI
Middle Management
MUST LEAD THE ACTUAL Wants to be
OPERATIONAL CHANGE successful
Problem:
PDCA Tools:
MUDA
Standardised work
Front Line Likes the
MUST “DO” involvement

Provide the right tools for the right job

MURA, MURI, MUDA
MISSION & VISION OF 3M

Mission
To Improve Every Life through Innovative Giving in
Education, Community and the Environment

Vision
3M Technology Advancing Every Company
3M Products Enhancing Every Home
3M Innovation Improving Every Life 
VISION FOR LEAN?
Mission Vision

Answer Why? What?

Defintion Statement Snapshot

Purpose Informs Inspires

Activity Doing Seeing

Source Head Heart

Order First Second

Effect Clarifies Challenges

Glenn Smith, Executive Coach

What are the Mission & Vision of the organisation?

What is Vision for Lean toward those needs?
WHAT IS POLICY?

• Policy is a set of ideas or a plan of what to do in particular

situations that has been agreed to officially by a group of people,
a business organization, a government, or a political party.

• Lean Policy is similar to organisation Vision but written with

customer’s requirements in mind. It is similar to Quality Policy for
the organisation thus, either or, is sufficient.

• Components of good Lean Policy are;

1. Customer’s satisfaction.

2. Total employees involvement.

3. Continuous Improvement.
ESTABLISH LEAN POLICY

1. Know who is your customer?

Who is your customer?

2. Know what your organisation

provides?
3. Recognise how will the
service or product satisfy the
customer?
What is your service or
product ?
How to satisfy them?

4. Commit to continuous
improvement in every aspect How you will continuously
of business processes. satisfy the customer?
CASCADING THE POLICY

Company
Level 1 objectives

Group
Level 2 objectives

Department
Level 3 objectives

Equipment & Facilities Employees Organization

- Efficiency index - improvement suggestions - turnover

- Service disruption - training days - flow time
- changeover time - time off - stocks
- Resource utilisation - accidents - production costs
- repairs - overtime - environmental protection
 PERFORMANCE REVIEW

Need to confirm the

linkages between PI
and RI.

Monthly review of
Performance Indicator

The milestones show

how each activities
Quarterly review of
progress.
Result Indicators
VALUE STREAM DESIGN
TYPES OF TRAINING

Subject related Process related

languages methods leadership moderation

English I problem communi- card system

solution cation

mind-
English II mapping goals rhetoric

Spanish master presentation

network
diagram training

subject related training Process related training

important when introducing
serves to closing gaps
new systems (TPM, JIT etc.)
 EMPLOYEE QUALIFICATION

Process related training plan

Module 1 Data acquisition
 Documentation,
 Keys control 


evaluation at the 
 Direction & control
at the process process system
Focussed
Improvement
1. Problem representation
2. Root cause to the problem
3. Solution to problem
4. Verification to solution - Repairs
- Change over
Goal:
- Adjustment
Introduction SERVICE

- Service disruption efficiency
What?
- Errors
Why ?
- Correction
How ?
Autonomous Team

Module 2 1. step 2. step 3. step

Preventive Autonomous
Basic inspection measures Standards
Autonomous
 against errors
activities through
activities the service operator
Plans for
Marking problems Autonomous
Error removing
with tags activities
MAKE TRAINING VISIBLE

Basic Improvement Introduction Education

Introductory 5S-
cleaning of of process
training action
step 1 maintenance standards companion

1. Paul X X X X X X
2. Mary X X X X
3. George X X X
4. Frank X X X X

98. Willy X

Total number trained 98 46 22 56 70 10

# of training Sessions 8 4 2 4 6 1
EMPLOYEE SKILLS CHART

Employee Qualification

Evaluation of current qualifications

Current
Qualification
P. Schmidt

Basic Stability

Autonomous
knows
Activity Step 1
participated
Autonomous how to
in seminar
Activity Step 2
train & coach
Autonomous
Activity Step 3 others
Service efficiency

Focussed
participated in
Improvement
knows how
workshop
VSM to moderate
or received
workshops
5S
himself coaching
Visual Management
AUTONOMOUS TEAM STRUCTURE

CEO /President

Virtual Steering
Committee

Facilitator
(Head of Department)

Production Engineering Quality

Department Department Department

Leader Leader Leader

(Supervisor) (Supervisor) (Supervisor)

QCCs QCCs QCCs

 MANAGEMENT ROLES
LEAN leader roles
Kaizen leaders roles

Builder of learning
(Development)
Bottom-Up

Group facilitator organiza3ons

“You’re empowered!” “Here is our purpose and
direc5on-I will direct and
coach.”
(Manager)
Top-Down

Bureaucra3c manager Task master

“Here is what to do and how-
”Follow the rules.”
do it!”

General Management In-Depth Understanding of

Expertise Work

“Leader is one who knows the way, goes the way and shows the way”
–John C. Maxwell
 SATELLITE OFFICE

CEO/President Virtual Steering Committee

Chairperson
Committee members

HR R&D Engineering Admin. Production Quality

Department Department Department Department Department Department
 ROLES OF LEAN OFFICES
Global Office
Corporate 1.  Establish policy for the
Steering program.
Committee
2.  Develop strategy for the
(Global Office) implementation.
3.  Value Stream Design
4.  Overall awareness &
Internal promotion of the
Specialist program.
5.  Overall team

development plan.
Department 6.  Clear the strategic red-
Steering tape.
Committee 7.  Monthly achievement

(Local Office) review.
Local Office
Methodology, 1.  Develop action plan for
the implementation.
Policy Tools/Systems
Deployment + 2.  Create model area.
Training/ 3.  Horizontal replication.
Model Area Coaching 4.  Provide support and
leadership during the
implementation.
Initially is a full-time structure 5.  Weekly progress review.
ROLES OF MANAGEMENT

1. Define ultimate goal of the LEAN program in the company.

2. Formulate a master plan for the installation of the program.

3. Formulate a plan on how to recognise the exemplary

performance of LEAN, members, leaders and facilitators.

4. Formulate a plan on how to monitor and evaluate the

components of the LEAN program.

5. Formulate a budget for the program and identify sources of

funds.
6. Define qualifications and functions of facilitators.

7. Act on concerns that may be raised by the LEAN Office,

the facilitators, or the Kaizen team themselves.

8. Evaluate the overall status of the LEAN program,

including training, rewards and recognition,
promotional activities, and procedures for evaluation of
LEAN case studies and activities.

9. Formulate corrective and preventive actions based on

findings in the evaluation.
TEAM COMMUNICATION BOARD

Quality Policy Yellow Ticket

Name Week 1 Week 2 Week 3 Week 4 Week 5

John
Quality Objectives Eric

Georg
Operational
Micheal
Objectives
Weekly Plan
Meeting Agenda No Action Item PIC Due on Plan Actual Remarks

Team attendance
ESCALATION PROCEDURE

Name Week 1 Week 2 Week 3 Week 4 Week 5 RDA Kaizen

Office
Monthly
John

Eric Yellow
ticket
Georg
Directorate Weekly
Micheal
Kaizen Office

Yellow
ticket
Recommended PIC Department
meeting
Expected completion date
Yellow
Description of assignment ticket
Set-up
Requestor information
meeting
REPORT FOR LEAN OFFICE

Required
# Issue Solution PIC Directorate Decision
support

1 Yellow ticket

2 Yellow ticket

3 Yellow ticket

4 Yellow ticket
 “Whatever name you may give our system, there are
parts of it that are so far removed from generally
accepted ideas (common sense) that if you do it only half
way, it can actually make things worse.”

“If you are going to do TPS you must do it all the way.
You also need to change the way you think. You need
to change how you look at things.”

- Taichi Ohno, Father of TPS

THANK YOU