Building and Sustaining

a Lean Culture:
The Quality People
Value Stream

Mike Hoseus
Author, President, Lean Culture Enterprises
mike.hoseus@gmail.com or 859-699-2235
 ThreeLevelsofCulture

What we see, what a newcomer, visitor or

consultant would notice (e.g., dress,
Artifacts & organization charts, physical layout, degree and
Behavior formality, logos, and mission statement.

What they say, What we would be

Norms & told is the reason things are the way they
Values are and should be. Company philosophy,
norms and justifications.
.

Underlying Assumptions What they deeply believe in &

act on Unconscious, taken for granted
beliefs about the organization and its
work/purpose, about people, rewards etc.

Based on Edgar Schein, Coming to a new awareness of organizational culture, pp. 375-390 in J.B. Lau and A.B.
Shani, Behavior in Organizations, Irwin, 1988
 Value & Work Flows Across
Functions
Big horizontal business processes

Sales Marketing Supply Human Finance IT

R&D Chain Resources
Growing the Business

Fulfilling Customer Orders

Growing and Developing People,

Leaders
Suppliers Customers
Most important problems are cross-
functional
 Which one
describes your
Vertical
Company? Horizontal

Focus - Production Focus - Process

Budgets, SOPs Purpose
Make the numbers Make problems visible
Leaders separated from Leaders focusing on the
the work work
Peoples ingenuity used Peoples ingenuity used
to beat the system to improve the system
Supervisors manage Supervisors work with
people the people to solve
problems
 Company Goals Employee Goals
Profit A Paycheck
Long Term Growth
Success
Long Term Good Benefits
Contribute to Mutual
A Safe
Economy Prosperity
Workplace
Contribute to
Meaningful
Society
Work
Good Quality

Mutual Trust
 Make problems & opportunities
for kaizen visible.
Safety Quality Productivity Cost HR

Standardized
StandardizedWork,
Work,5-S
5-S

Visual Control (Andon, Line-stop, Visual Management)

Visual Control (Andon, Line-stop, Visual Management)

PDCA

Standardized Work, 5-S

Problem Solving (Daily Activities, QC Circle, Suggestions)

 The Toyota Way
THE TOYOTA WAY Toyota Basic Business Practices

by concentrating knowledge
Teamwork of each & every employee
Respect
for People for the benefit of all
Respect
customers & stakeholders

we strive to realize
Challenge ambitious goals
Continuous Genchi through steady, fact- driven
Improvement Genbutsu progress

Kaizen pursuing highest standards of

excellence guided by best
Values possiblePractices
course of action
It Starts with Values

Toyota
Way
Values
Beliefs TBP
Thoughts 8 Steps

Actions
Habits Goals for
the
Character company
Culture

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 LEAN CULTURE OVERVIEW
MODEL

ORGANIZATIONAL
STRUCTURE &
Quality
Human SYSTEMS
People
Resources
ATTRACT DEVELOP ENGAGE ENROLL
OUTPUTS
INPUTS
Quality
Assessment ORGANIZATIONAL Organizations
LEADERSHIP &
ENVIRONMENT
 THE OBJECTIVES OF
STANDARDIZATION
Reduce variability, increase predictability
Enhance repeatability, confidence, consistency
Clarify procedures
Enhance communication
Improve Problem Solving
Set good discipline
Develop awareness
Establish Problem Consciousness
Establish a basis for education and training
Establish a baseline for performance
Improve Quality, Safety, Delivery, Cost
Provide the basis for Improvement
 Three Stages of Problem Solving
Maintenance Kaizen Kaizen

Raising New Goal

Goal Maintaining
Reaching

Problem Solving
that focuses on
Problem Solving that increasing capability
Problem Solving that focuses on maintaining beyond the goal -
results in getting to the the goal. Kaizen.
goal.
 Ideal Span of Control
Ratio 1:5
Leader

Team Team Team Team Team

Member Member Member Member Member
 HOSHIN - ALIGNMENT
External Environment
Strategic Cultural
Process Mission/Vision Process

Hoshin Goals Values

Critical Success
Hoshin Methods Factors/Practices

Hoshin Activities Model Behaviors

Results

Stakeholders
Team Board for Floor Management Development System
Quality Section of Team Board for Floor Management
Development System
 Fujio Cho, Chairman, Toyota
Motor
Former President, Toyota Motor
Manufacturing, Kentucky:
3 Keys to Lean Leadership:
1. Go See.
Sr. Mgmt. must spend
time on the plant floor.
2. Ask Why.
Use the Why? technique daily.
3. Show Respect.
Respect your people.
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