CreatingLeanLeaders

AHandsOnApproach

AKaufmanGlobalWhitePaper

KaufmanGlobal,LLC Tele:13178182430 www.kaufmanglobal.com

LeanLeadersAreMade,NotBorn Leanhasbeenthebuzzwordofthelatterhalfofthenineteennineties.Asworldmarketscontinueto heatupandcompetitionamongovercapacityindustriesbecomesevenmorebrutal,Leanwillremainin the forefront of business strategies for years to come. Yet, interest in Lean will become selflimiting duringthenextdecade.By2010,organizationswilleitherbeembracingLeaninallofitsmanifestations, ortheywillhavebeenlefttorueinthedustoftheircompetitorswhospedbyonthehighwaytoprofits. While almost all organizations are moving at their own pace towards Lean in some way or another, manyarewastingvaluabletime;timethatcanneverberecoveredifthecompetitionismovingevena littlefasterandsmartertowardsLean. The key element in transforming an organization from traditional to Lean is leadership. Lean organizationsarenotjusttraditionallyrunorganizationsthatoperatemoreeffectivelythaninthepast. They are radically different in structure, methods and daytoday management. The dramatic transformation from traditional to Lean, even if done in a deliberate, planned manner, requires transformational leadership at all levels, from office to shop floor, to executive suite, if the metamorphosisistobecompletedintime(tosurviveinthemarket). Manyoftoday'sleadersarewellversedinthedefinitionsofLeananditsmethodsandapproaches.The difficultyinthemindsofmostmanagersliessomewhereinthetitanic,chasmbetweenknowingwhat Leanisandunderstandinghowtoachieveit.Fewtraditionalleaderspossessmorethanavagueidea ofthespecificdaytodayactivitiesthatarerequiredtocreateandsustainaLeanworkingenvironment at any level. Without this knowledge, efforts to establish a Lean organization are always marked with frustration,unfulfilledexpectations,andlossofmarketshareandprofits.Evenifamanagementteam eventuallystumblesontotherightanswerthroughaprocessofelimination,it'softentoolate. ThiswhitepaperbrieflyreprisesthewhatofLeanandoutlinesthehowofLeanfromtheperspective of leadership. In short, this paper argues that Lean leaders are made through focused, rigorous classroomtrainingandthehandsonapplicationofLeantoolsandtechniques.Specifically,thispaper describesKaufman'sSLIMITLeanLeadershipdevelopmentapproach.SLIMITisuniquebecauseofthe emphasisplacednotonlyonLeanbutoncreating"implementers"ofLeanbydescribingkeystructural elementsformakingchangehappen. WhatIsLean? Lean is the state achieved by the elimination of specific types of waste. Taiichi Ohno, the primary architect of the Toyota Production System (TPS), first outlined seven types of waste (the nonshaded areas in Figure 1). These days, the TPS is referred to variously as onebyone, pull, constraint management, justintime, flexible / synchronous / flow / demand / cellular / agile manufacturing, kaizen,FordProductionSystem,ChryslerOperatingSystem,andsoon.Withminortwistsandturns,all of these approaches are either subsets of the TPS or use the TPS as their core. We have found it meaningful to add three types of information waste to Ohnos original concept. The shaded areas of Figure1indicatetheseadditionalwastes. In Ohnos time, prior to sophisticated, userfriendly software, kanbans were the most appropriate material movement / control systems. In highly complex environments with many different products (eachwithavariableprocessflow)andagreatmanysmallandmixedlots,packagedsoftwaresolutions canbeaninvaluableadjuncttotheTPS.Intheseveryspecificenvironments,aninformationsystemcan

KaufmanGlobal,LLC

monitor and signal material movements and therefore can optimize output much more precisely and withfarlesslaborthankanbans.
Figure1TenTypesofWaste

PEOPLE
Motion Processing Fixing Defects Planning Waiting Moving Things Inventory Making Too Much

TYPES OF WASTE

Scheduling Execution

INFORMATION

In less complex environments, kanbans are sufficient by themselves and are more costeffective than software. Figure 2, the Lean Master Jargon Chart, displays the tools and methods that are used to attackthetenbasicwastes.
Figure2LeanMasterJargonChart
CATEGORY OF WASTE TYPE OF WASTE Processing WASTE REDUCTION APPROACH METHOD Standard Work Workplace Organization Kaizen Waiting Inventory Moving Things Just-in-time Making Too Much 20 Keys Leveling Kanban Quick Setup Preventive Maintenance Detection Warning Prediction Prevention Jidoka Plan Schedule Track Anticipate Optimize FOCUS POINTS Layout Labeling Tools/Parts Arrangement Work Instructions Efficiency Takt Time Skills Training Shift Meetings Cell/Area Teams Visual Displays Work Balance WIP Location/ Amount Kanban Location Kanban Types Lot Sizes Changeover Analysis PM Analysis Appropriate Automated Assistance Fixture Modifications Successive Checks Limit Switches Photocells, Templates Check Sheets Dynamic Scheduling of Order/job Status by Process Element Timing/completion Queue Analysis PRINCIPLE METHOD/ WORKSHEETS Standard Work Sheet Time Observation Form Standard Work Combination Sheet Work Load Balancing Sheet Kaizen Action & Target Sheets Above Worksheets & Kanbans Table of Production Capacity By Process Preventive Maintenance Scheduling Sheet Error Proofing Action Sheet Error Proofing To Do List Skill Versatility Visual Display For example, SYNQUEST Manufacturing Manager Software DESIRED RESULT Highly Efficient, Safe Work Areas & Cells that Pump Out the Goods and

PEOPLE

Motion

Workplace Management

QUANTITY

QUALITY

QUANTITY

Give You Only What You Need When You Need It With

QUALITY

Fixing Defects

Error Proofing Autonomation

Good Quality While

Planning INFORMATION Scheduling Execution

Processfocused Information Technology

Maximizing the Powers of a Flexible, Complex System

The benefits of Lean are no longer exclusive to manufacturing environments. During a European engagement,Kaufmanidentifiedtwentytypesofgeneralofficewaste(Figure3).Figure4presentsthe KaufmanGlobal,LLC 2

methods and tools used to attack office waste in a functional / data / administrative setting. As an organization progressively employs more of the approaches and tools known to reduce the wastes shown in Figures 1 and 3, it will become increasingly Lean. That is, the desired results identified in Figures2and4willbecomeincreasinglyevident.
Figure3TwentyTypesofOfficeWaste

PEOPLE
Mo
Control Wa itin g
Checking
T am

tio n

m gn si As

g perin t en

Proc essin g

Hand-off
Tran IN ing FO cy iss an RM M ev el Irr AT IO N n slatio

TYPES OF WASTE
Strate gic

t al en Go nm ig Flow Al nced bala Un Non-repeatability

Figure4MethodsandToolsUsedToAttackOfficeWastes

MostManagersAreNotLeadersintheEyesofTheirOrganizations
CATEGORY OF WASTE TYPE OF WASTE
Processing Motion Assignment PEOPLE Tampering Control Waiting Goal Alignment Strategic Checking Work-around Boundary PROCESS Mutation Sub-optimization Repeatability Unbalanced Flow Hand-off Translation INFORMATION Missing Irrelevancy Inaccuracy Process Data Requirements Determination Process Alignment with Plans Pull Philosophy Process Econometrics Process Reengineering

WASTE REDUCTION APPROACH

Workplace Daily Leadership System Cross-functional Alignment

Ina cc ur

Suboptim St an izati on da rd iza tio n

ry da un d Bo aroun rkWo

ac y

SS CE O PR

METHOD
Workplace Organization Consensus Management Structured Cell/Area Teams Process Ownership Kaizen 20 Keys ProcessStrategy Rationale/ Alignment Process Valuation Process Analysis Work Balancing

FOCUS POINTS
Workgroup Teams Start-up Meetings Visual Displays Layout Work Instructions Rapid Resolutions Skills Training Process Task Teams and Work Stream Teams Process Benchmarking Core Competency Assessment Appropriate Automated Assistance Group Brainstorming Cross Training Error-proofing (Detection, Warning, Prediction, Prevention) Process Structure Analysis Value-added Analysis

PRINCIPLE TOOLS AND WORKSHEETS

Standard Work Sheet DILO Analysis RACI Assessment Boundary Analysis Standard Work Combination Sheet Cause/Effects Diagram Work Balancing Sheet Make-Buy Assessment Affinity Diagramming Kaizen and Error Proofing Action Sheet Kaizen Target Sheet Brown Paper Analysis (As Is And To Be) Skill Versatility Matrix Work Group Primary Visual Display Flow Charting Waste Checklist Signature/approval Validation Data Flow Assessment Data Integrity Checklist Value/Non-value assessment

DESIRED OUTCOME
A Highly Productive, Informed and Enthusiastic Workforce Focused On Key Processes That Are Fast, ResultsDriven, Accurate, Repeatable, Value-added, Aligned with Organization Goals, Scrubbed of Waste, and Supported & Driven By Accurate, Timely Metrics

Data Accuracy and Relevancy Determination Data Flow and Availability Studies

KaufmanGlobal,LLC

While few managers are experts in all the tools and techniques of Lean, most are familiar with the meaningandmechanicsofmanyofthem.Yet,despitethisfamiliarity,comparativelyfeworganizations are implementing Lean successfully. At the same time, many executives in those same organizations believethattheirLeanimplementationsaremovingaheadsmoothly. John P. Kotter, a wellknown leadership expert, provides some vital insights on this paradox in his Harvard Business Review article, "Why Transformation Efforts Fail." In the article, he reports on research conducted on 100 organizations that failed in their first attempt(s) to conduct a required transformation.Theeightcommonerrorsthatheidentifiedwere: 1.Notestablishingasufficientsenseofurgency 2.Notcreatingapowerfulenoughleadershipcoalition 3.Notcreatingavision 4.Undercommunicatingbyafactorof10 5.Notremovingobstaclestothevision 6.Notsystematicallyplanningforandcreatingshorttermwins 7.Declaringvictorytoosoon 8.Notanchoringchangesintheculture Kaufmanroutinelysamplesmanagementandemployeegroups(bothclientandgeneralaudiences)from variousindustriesastotheirperceptionsabouthowwelltheirorganizationsareavoidingtheseerrorsin theirLeanimplementations.TheresultsareshowninFigure5.Thetechniqueusedistheapplauseo meter. Each of the eight common errors is briefly described to the audience. The speaker moves a markeralongalinescale,andtheaudiencemembersareaskedtoapplaudasthemarkermovescloser totheirindividualratings oftheorganizationandtostopapplaudingasthe markermovesawayfrom theirratingsoftheorganization.
Figure5"Applauseometer"Results
None Almost None A Little A Fair Some Amount A Lot Completely

Creating a sense of urgency Establishing a leadership coalition Creating a vision Over-communicating by 10X Removing obstacles to the vision Creating short-term wins Not declaring victory too soon Anchoring changes in the culture
None Almost None A Little Some A Fair Amount A Completely Lot

Non-management employees (3,456)

Middle management/ supervisors (1,212)

Upper management & executives (831)

The"applauseometer"isamarvelouslyquickandaccuratewaytoassessagroup'sperceptions.

KaufmanGlobal,LLC

 The typical response distribution for each statement is displayed in Figure 5. They are the average, compiled results from many dozens of groups and thousands of people. It is clear from Figure 5 that executives,ingeneral,thinktheyaredoingasatisfactoryjobofleadingtheirorganizationstowardLean. Inlightofsubordinatesratings,executivesappeartobewantonlyoptimisticintheirassessments.There isalmostnooverlapbetweentheratingsofnonmanagementworkersandthoseofexecutives.Thelack of any significant overlap between executives and nonexecutive middle managers and supervisors is alarming.Theseresultsareevenmorestartlingwhenoneconsidersthatthesurveyedindividualswere fromorganizationsthatclaimedtobeimplementingLeanaggressivelyintheirfactoriesand/oroffices atthetimeoftheassessment. ThemostimportantinsighttobegainedfromFigure5isthatthetypicalorganizationwillcontinueto fail in its pursuit of Lean, primarily because upper management believes that progress is being made. Believing that things are running smoothly, management will be slow to change or modify Lean implementationstrategies.Intheshortterm,thistimedelaybleedsawayprofit.Overthelongterm,the complacency bred by this perception increases the odds that a competitor will implement Lean more quicklyandtakeawayalargeportionofthemarket. HowDoesThisHappen? The source of this problem can be found in the ways management typically views processes and attempts to improve them. There are three basic categories in a process hierarchy. Going from least complextomostcomplex,theprocessesaredescribedasmicro,macroandmega.Figure6illustrates the hierarchy. As you can see by the shaded arrows, there is considerable overlap between adjacent levels of processes. Microprocesses are the work done by nonmanagement personnel from hourly factory workers, to secretaries, to technicians. Soldering a joint and completing a purchase order are typical examples. Insofar as they provide the foundation for Lean excellence, the measurement and improvementofmicroprocessesarefundamentaltobecomingworldclass.
Figure6Micro,MacroandMegaprocesses

MICRO
Doing a purchase order Soldering a pin Changing a drawing
INP UTS INP UTS INP UTS INP UTS INP UTS EVE NTS EVE NTS UTPU TS INP OO UTPU TS UTS O UTP U TS O UTPU TS O UTPU TS

MACRO
Recruiting Product Development Accounts receivable

MEGA
Manufacturing Purchasing Division

EV E NTS EVE NTS

EVE NTS

O UTPU TS

EVE NTS

INPUTS
EVENTS OUTPUTS

EVENTS
INPUTS

OUTPUTS
OUTPUTS

INP UTS EVE NTS O UTPU TS INP UTS E VE NT S O UTPU TS INP INP EVE NTS INP UTSUTSUTS EVE NTSO UTPU TS TSTS EVE NTS O UTPU O UTPU INP UTS EVE NTS

INP UTS INP UTS

EVE NTS O UTPU TS EVE NTS O UTPU TS

INPUTS
O UTPU TS

INP UTS EVE NTS O UTP U TS INP UTS EVE NTS O UTPU TS INP UTS EV E NTS O UTPU TS INP UTS INP UTS EVE NTS EVE NTS TS O UTPU TS O UTP U INP UTS EVE NTS O UTPU TS INP UTS EVE NTS O UTPU TS INP UTS EVE NTS O UTPU TS
INP UTS EVE NTS O UTPU TS INP UTS EVE NTS O UTP U TS INP UTS EVE NTS O UTP U TS

EVENTS

INPUTS EVENTS OUTPUTS

EVE NTS O UTPU INPUTS TS O UTPU TS
PROFIT STOCK PRICE ANNUAL SALES

INP UTS INP UTS INP UTS

EVE NTS EVE NTS E VE NTS

INP O UTP U TS UTS

O UTPU TS O UTPU TS
EVE NTS

EVENTS

OUTPUTS

INP UTS INP UTS

EVE NTS

INP UTS
O UTPU TS

O UTPU TS

EVE NTS

TIME TO COMPLETE WORK EFFICIENCY FIRST PASS YIELD

INVENTORY LEVELS DESIGN CYCLE TIME CUSTOMER RETENTION

Upstream Causes Proxima Least Complex (to understand)

Time Passing

Downstream Effects Distal Most Complex (to understand)

KaufmanGlobal,LLC

Amacroprocessisanameforagroupofmicroprocesses.Productdevelopmentisamacroprocess,as are tooling, marketing, recruiting, accounts receivable, and so on. Macroprocesses are easy to name andmeasure,butthemeasurementsdontprovideinsightsabouttheconditionofspecificconstituent microprocesses.Forexample,knowingthatshipmentsfromaplantwere99.5percentontimeforone week tells nothing about the health of the plants microprocesses; (the ontime performance could havebeendrivenwithexcessivecosts). Megaprocesses, such as an entire division, are agglomerations of many micro and macroprocesses. Measurementsofmegaprocesses(suchasprofit,stockprice,andsoon)areeasytotrackbutprovide absolutely no insight into the conditions of the macro and microprocesses that create megaprocess results. As investors are all too aware, many organizations run into serious trouble just months after seeingrecordprofitsandstockpriceincreases. Executives and upperlevel managers are expected to create favorable megaprocess outputs for shareholdersand/orowners.Oneofthedifficultiesisthatallmegaprocessoutputsaretimedelayed, averaged, distorted and homogenized results of thousands of microprocesses that occurred days, weeks and months earlier. By the time an executive sees a profit wiggle, the root causes have been operatingforalongtime.Thetraditionalmanagerisworkingfarbehindthepowercurveofcauseand effect when he or she reacts to quarterly results. The current emphasis on Lean is a consequence of executives and managers realizing that they require additional mechanisms to control megaprocess resultsearlierandmoreconsistently. A second circumstance further complicates affairs for the traditional manager. Without tools to exert leverage on microprocesses, the traditional manager turns to the only weapon available: technology and"swingforthefence"innovations.ThetraditionalmanagerisconstantlyseekingwhatwecallaBNI, or bold, new idea. Figure 7 displays the effect these managers are seeking. They are trying to hit a homerun with every bold, new idea and scheme, attempting to get a quick, large increase in some aspect of the organizations performance. The hope is that the BNI will be implemented quickly and beginyieldingresultsintheshorttimeperiodshownbythegrayareainFigure7.Theproblemisthat mostBNIarenotselfsustaining.
Figure7Desiredvs.ProbableImpactofBNI
Perceived time required to obtain benefits Perceived time required to obtain benefits

System Performance

System Performance

Desired impact of bold, new systems and ideas

Probable impact of bold, new systems and ideas

Time

Time

ABNIisaninnovativeapproach,technologyormethodthatattemptstodeveloprevolutionaryanswers toexistingproblemsandissues.Atleast25percent(anduptoasmuchas50percent)ofatraditional executivestimeisspentonthissortofactivity.TheamountoftimespentonBNIsbymiddlemanagers and supervisors, however, is much less than executives, because middle managers have extensive reporting and firefighting duties to which they must attend. Also, they are burdened with extensive

KaufmanGlobal,LLC

planning and organizing assignments to implement the executives latest BNI. The result is that a traditional organization tries to solve every problem with bold, new schemes. Some work, and some dont; theres no "easy answer" for making the thousands of small, ongoing changes that are key to worldclassperformance. ManagementinthissituationmustfunctionbothasjailerandDr.Frankenstein.Managersmusttryto keepemployeesundercontrolandworkinghardwhiletheyoccasionallysneakofftothelaboratoryto cobbletogetherthenextschemetoboostperformance.TheonlydifferencebetweenDr.Frankenstein andmodernmanagersisthatthefamousdoctordiditwithbodypartsandtraditionalmanagersdoit with acquisitions, technology and software. When a BNI doesn't work as planned, stockholders effectivelyplaythepartoftheenragedvillagerswhomarchonthecorporatestockpricewithpitchforks andtorches. Of course, driven by shareholder demands, traditional executives do not see an alternative. Not fully understandinghowtoimplementLean,executivesaredriventoBNIthatinvolvetechnologyandlarge scale,wideranginginitiatives(suchasEIS,reorganizations,spinoffs,etc).Inmanycases,theseactions aresoundbusinessdecisions,butmanyBNIaresimplystabsinthedark.(Astheoldsawgoes,Ifallyou haveisahammer,prettysooneverythingstartstolooklikeanail.) ThisisnteventheworstproblemwithBNI!EvenifvariousBNIareexactlywhattheindustryordered, theydontprovideasignificant,longlastingcompetitivelead.Atbest,evenifaBNIworksasplanned, theonlygainisamomentaryleadthatisquicklycopiedbytheindustry.Atworst,youreplayingcatch upwithoutfitsthathavealreadystartedwiththesameidea.WithBNI,ifanorganizationiswellrunand lucky,itcanstayaheadofthepowercurveforawhile;buttheleadalwaysevaporatesafterafewyears, asmarketdynamicschangeanddifferentstrengthsandtechnologiesbecomeimportant. Afurther complicationisthat,inanyindustry,agreatmanyBNIareabsolutelycriticaltosurvivaland success.AmanagementteamthatlivesanddiesonBNIcannotaffordtopassoneup,soitforcesmany illadvised BNI on the organization, while bypassing any attempts to fix faulty microprocesses. This is nottheroadtoworldclassperformance. What'stheAlternative? TheonlyalternativetotheabovedeathspiralisLean.Atthesametimethatmanagementispursuing criticalandtimelyBNI,it mustalsoimplementthe LeanBNI.Yes,thedecisiontoimplementLeanisa bold, new approach for most organizations. Not properly handled (that is, committing a number of Kotters eight errors), Lean BNI implementations almost always fade away as failed programs of the month. Figure8displaysthefundamentalobjectiveofLean:thecreationofasystemthatobtainsthousandsof small improvements in countless microprocesses without managements direct intervention (once it gets going). Lean is every workers pursuit of small improvements in his / her specific tasks while managementattendstothebiggerpicture.Thisisoftencalledkaizen.

KaufmanGlobal,LLC

Figure8ImpactofBNIvs.ImpactofManyMicroprocessImprovements

Impact of a typical BNI (that works)

Time required

System Performance

Time

Impact of many micro-process improvements driven by a Lean Daily Management System

Any individual microprocess improvement in a Lean system is like a snowflake. Taken one at a time, eachisalmostnothing.But,whenenoughofthemarepiledtogether,continuously,irrevocably,without pause, they create a massive glacier that cannot be stopped. That is what Lean isa competitive behemothbuiltuponthousandsofsmallimprovementsthatcannotbedismissed.Thesemicroprocess improvements(andtheLeanBNIthatspawnsthem)amounttotheprimarydifferencebetweenworld classandtraditionalorganizations. Anyone can buy a technological BNI, but it is impossible to buy a Lean system. Each Lean implementation must be developed onsite, adapted by the people to mesh with all the nooks and cranniesoftheorganization.WhilethebasicprinciplesofLeanarethesameinanyorganization,each implementation is unique. Its much like building a sidewalk. All sidewalks are flat on top, but each is infinitelydifferentonthebottom,asitisformedbythelandscapeofthegroundbeneath.Itmightbe possibletoinstallprecast,flatsidewalksections,butthelaborrequiredfirsttolevelandcompactthe groundwouldbeprohibitivelyexpensive.Toavoidthiscost,concretesidewalksarepouredinplaceand, conforming to the exact topology of the ground, create a solid, perfectly fitting, stable surface. Lean implementationsareanalogousinconcept:muchthesameinoutwardappearanceacrossorganizations butformfittingtoeachorganization'suniqueprofileandnuance. ThisiswhysuccessfulLeanorganizationsarealwaysveryopenabouthostingtoursandtellingeveryone (including competitors) how they did it. They know that the Lean tourists are looking for a technologicalBNIaquickandeasywaytotransformtheirorganization.Thereisn'tone. Figure 9 displays the vital synergy between management driven BNI and employee sustained Lean activities. A Lean organization gets more and more from each BNI. Management teams in Lean organizations can attend to the "big picture" and generate more appropriate and higher quality BNI, whileLeanactivitiesfocusonrunningandimprovingdaytodaymicroprocesses.TheseextraBNIgains are significantly augmented by the thousands of small microprocess improvements that traditional organizationscannotmatch.

KaufmanGlobal,LLC

Figure9TheLeanAdvantage

THE LEAN ADVANTAGE

Lean Organization

Well-run Traditional Organization

System Performance Time

Improvements driven by bold changes Improvements driven by small process changes

HowtoBuildaLeanManagementTeam Successful Lean implementations require Lean leaders; and Lean leaders aren't bornthey are made. KaufmanhasdevelopedanapproachthatcreatesLeanleadersandinstallsatotalLeansysteminthree to12months(dependinguponthesizeoftheorganizationorunit).Thisapproach,calledSLIMIT,(or SLMMTTTT), has evolved through years of experience implementing Lean in many industries. It was designedtoincorporateautomatic,failsafemeasurestopreventKotterseighterrorsandanumberof otherLeanimplementationshortcomings. Figure 10 presents the SLIMIT Lean leader conceptual model. The various components are Structure, LeanDailyManagementSystem,Mentoring,Metrics,Tools,TeamworkTrainingandTechnology.Itmay helptothinkoftheSLIMITmodelthisway: STRUCTURE providestheresourcesandframeworkthatenablesthe LEANDAILYMANAGEMENTSYSTEM tobecreatedthroughthe MENTORING ofmanagers/supervisorstoleadtheorganizationtodevelopandimprove METRICS bythefocusedapplicationof TOOLS,TEAMWORK,TRAININGANDTECHNOLOGY ThemostcriticalelementsofSLIMITaretheouter,shadedareasofFigure10.Thesearetheelements whoseabsenceintraditionalorganizationsleadstoKotterseighterrors.

KaufmanGlobal,LLC

Figure10TheSLIMITModel

Structure Structureconsistsofseveralcomponents: 1. TheexecutiveBNIthatmandatesLeanpracticesasthenewnorm 2. TheexecutivedecisiontocreateLeanleaders 3. TheprojectmanagementframeworkandresourcestodrivetheSLIMITinitiative LeanDailyManagementSystem A successful Lean implementation is built upon the Lean Daily Management System, or LDMS. It is vitally important to understand the central position that the LDMS holds in making Lean work. It is a system that implements and sustains structured, mandated, planned, focused and coached efforts to improvetheperformanceofdaytodaymicroprocessactivities. TheLDMSconsistsoffivemutuallysupportivecomponents.Theyare: 1. 2. Adaily,fivetotenminute,standup,shiftstartup(SSU)meetingheldintheworkareaofeach intactworkgroupofuptoninepeople. A primary visual display (PVD) board for each intact workgroup of up to nine people. (TheSSUmeetingisheldinfrontofthePVD).

3. A20Keysselfassessmentandimprovementplanforeachworkgroup. 4. AKaizenActionSheet(KAS)processimprovementmethodologyineachworkgroup. 5. PlanDoReview continuously at the microprocess metrics level for each workgroup and / or cell.

Thesefiveelements,ifimplementedandmaintained,providearocksolidfoundationforanyworldclass Lean program. They provide the mechanism for each workgroup to take ownership of its work processes. The LDMS establishes the involvement and commitment that are the soul of worldclass achievement in every human group endeavor. All other Lean tools and techniques will realize only a fractionoftheirpotentialifanyofthesefiveelementsarenotimplementedandrigorouslypracticed.In

KaufmanGlobal,LLC

10

fact,thesefiveelementsconstituteastrategytoavoideveryoneofKotterseighterrors.Sowhyisnt everyorganizationurgentlyimplementingtheLDMS?AlthoughmanyleadershipteamsknowwhatLean is,mostdonotknowhowtocoach,guide,andsustainit. Figure11demonstratesamodelofwhytheLDMSworkssowell.Itwouldbeidealifeveryleadership team was suffused with a Lean philosophy of work and leadership and simply began to do Lean. The LDMSprovidesaframeworkthatcompelstheorganizationsleadersandworkerstobehaveasifthey were internally motivated to practice Lean. All that's required is a sufficiently enlightened and determinedleaderoftheLeanBNI.
Figure11LeanDailyManagementSystem

Lean Philosophy of Work & Leadership ENABLES ENABLES ENABLES

Management Behaviors REINFORCES CREATES ELLICITS REINFORCES Employee Involvement & Commitment

World-class Structures

REINFORCES

LEAN DAILY MANAGEMENT SYSTEM

Specific management behaviors create the structure for Lean. For example, within the LDMS, managementmustfacilitateSSUmeetingswithineveryworkgroup,everyday.Thesemeetings,heldin front of the PVD, create the conditions (structure) that permit employees to take ownership of their processesandimprovethem.Thiselicitsemployeeinvolvementandcommitment.Boththeemployees commitmentandbottomlineprocessresultswillconvinceeventhemosttraditionalmanagerthatthe LDMS works. This reinforces managements Lean behavior and begins to plant the seeds of a Lean philosophyinallareasofmanagementthinking. Mentoring The directional guidance of SLIMIT comes from the next element: mentoring. This is the daytoday coachingofmanagersandsupervisorsinrealtime,onthejob,asthePVDs,KAS,SSUmeetingsand20 Keysplansaredesigned,implementedandrefined.Thecoachingmustbedonebyhighlyexperienced Lean experts who understand the why, what and how of applied Lean. Mentoring is the mechanism thatassuresthatmanagementbehavioratalllevelswillbechangedsufficientlyandoveralongenough periodoftimetoinfusethemintotheorganization'sculture.WithoutthementoringelementofSLIMIT, everythingelsesimplydistillsdowntoanothertired,old,traditionalimprovementplana.k.a.,alotof smoke,mirrorsandglowingprogressreportsbutfew,ifany,sustainablebehaviorchangesonanyones part.

KaufmanGlobal,LLC

11

Metrics Metricsgetalotofattentionintraditionalorganizations,butoftentheyaretoolittle,toolate;theyare done at the macro and megaprocess levels. A key element of the SLIMIT model is to pull the entire organizationtogetheraroundacentralcoreofuniversalmetricsandtofocusontheappropriatemicro process metrics within each workgroup. This is where the 20 Keys methodology becomes critical. Building upon the foundation of Kobayashis 20 Keys of Workplace Improvement (an entire factory), Kaufman Global has developed specific sets of workgroup level 20 Keys for numerous other environments. Tools,Teamwork,TrainingandTechnology Every organization implements various tools, teamwork, training and technology approaches in an attempttoimprove.Figure12displaysseveralofthepopularapproaches.Manyofthesemethodsare part of any Lean system. All of these approaches / methods have merit if properly implemented. Improper implementation is the reason why most organizations fail to obtain expected sustainable results.Thatis,therewerenoLeanleaderstomodelandcoachtheuseofthenewLeanmethodand demand that it be practiced at the microprocess level, every day, in every workgroup. Further, there wasnoLDMSfoundationtofocustheappropriateuseoftheapproachwithinworkgroups.
Figure12Tools,Training,TeamworkandTechnologyApproaches

Management FMEA Kaizen Blitzes By Six Objectives Sigma Flow Charts SPC D QF Structured, Consensus Consensus ISO/QS Team-Oriented Process Decision Making Decision Making Pr Problem Solving Reengineering Tools im Tools Sh Di Visu ary DOE a sp al QFDinin 5 S One-By-One lay Black Belts SMED s Gain Sharing Flow Strategy 20 Poka-Yoke Keys Visual SSU 7 2 Meetings Displays High Performance Teams Formal Team s Integrated Building Total Preventive an Product Techniques nb Development Maintenance a K Constraint Management

Asaresult,mostinitiativeimplementationsintraditionallymanagedorganizationsfailtodeliverwhat theypromise,despitethefanfarewithwhichtheyarelaunched. FinalWords Leanisajourneyandnotanevent.ItisimperativethatorganizationsembarkingontheLeanjourney develop leaders who are well equipped to handle the ambiguities of implementation in a changing environment. SLIMIT provides structure and uses handson experience to drive learning, leadership and results. The elements employed by SLIMIT are fundamental to any leadership development or enterprisewideLeanimplementationyouendeavor. KaufmanGlobal,LLC 12

CreatingLeanLeaders:Addendum
SLIMITPrinciples TheSLIMITmethodologywascreatedbaseduponseveralkeyconcepts: 1. People Learn by Doing As trainees learn a concept or approach in the classroom, they are requiredtoapplyand/orinstallitimmediatelyinworkgroupsorareasselectedbymanagement. This "handson" approach bridges the gap between training and learning. Further, trainees are heldaccountableforimplementingLean,whichbridgesthegapbetweenlearningandresults. 2. Organizational Training or "Learning" Can Be Selffunding Each program should include Rapid ImprovementEvents(RIEs)/Kaizeneventsaspartofthetrainingregimen.ARIEisanaccelerated waytoeliminatewasteandgetfastresultswhiledemonstratingLeantoolsandtechniquesreal time. 3. ImprovementsMustBeSustainableEachprograminvolvestheLeantraineesinthedesignand implementationoftheLDMSintospecificworkgroupsselectedbymanagement.Thisincludes20 Keysplans,PVDs,SSUmeetingsandtheKASmethodology.Eachoftheseworkgroupswillbeginto improve its performance immediately, and the LDMS's plandoreview microprocess approach willensurethattheimprovementissustainable. 4. ItCreatesLeanLeadersThecomprehensiveandintensivelearnbydoingnatureoftheSLIMIT program, along with continuous coaching in realtime, creates unparalleled Lean experts. Lean Leaders possess applied skills in traditional Lean tools and techniques, and modified Lean techniquesfortheofficeorbusinessprocessenvironment,andastrongfocusongettingbottom lineresultsbyleveraginganorganization'smostvitalelementItspeople. MakingLeanHappen Leandoesnthappenbyitself.ALeanorganizationmusthaveLeanleaders.IfyoualreadyhaveaLean manufacturinginitiativeunderway,SLIMITcanassistyourLeanleadersinapplyingLeanconceptsand principles in support and administrative areas (i.e., "office" environments). Regardless of your Lean focus,successfulLeanimplementationsdependonthe"grassroots"levelpeopleineveryorganization. Forthisreason,Leanleadersmustlearnandpracticethepowerofunderstandingthehumanaspectof Lean. Simply put, SLIMIT creates Lean leaders in a handson, learning environment in a way that generatesimmediateoperationalimprovementsandbottomlinefinancialresults.

KaufmanGlobal,LLC

13


Copyright2003KaufmanGlobal,LLC Allrightsreserved. ThisKaufmanGlobalWhitePaperisprotectedbycopyrightlaw.Reproduction,transmissionorincorporationofthisPaper intoanotherwork,inwholeorinpart,byanymeans(includingelectronic,photocopyingorotherwise)withouttheprior writtenconsentofKaufmanGlobal,LLCisexpresslyprohibited. The following are trademarks of Kaufman Global, LLC and may not be used without prior written consent: Lean Leadership, SLIMIT,20Keys,WInLean,LDMS,LeanDailyManagementSystemandKaufmanGlobal.Othermarksthatmayappear inthiswhitepaperarethepropertyoftheirrespectiveowner.

KaufmanGlobal,LLC

14