Lean Leadership

Summary of Topics to Be Covered

Understanding the impact of human relationships in the business world and how business leaders think today.
Understanding the lean challenge from a human relationship perspective
Understanding human motivation
Understanding group dynamics
Understanding Organizational Dynamics and Organizational Evolution
The Organizational Structure of Enlightened Leadership
Assessing and Fostering Teamwork in Organizations
Building Organizational Consensus and Overcoming Resistance to Change
Process Improvement and Re-engineering
Visioning
Benchmarking
Understanding Customers and What Customer Satisfaction is All About
Understanding Metric Maps
Recognizing and Rewarding Achievement
Understanding Pull System
Understanding Kanban Systems
Single Minute Exchange of Dies
What is Waste
Visual Management Systems
Lean Leadership on the Front Lines

The Lean Leader Code of Behavior

Implement a code of knowledge that taps the fundamental truths about human
beings, organizations and processes in every industry and situation.
Embrace change and spend little time on rituals and move fast
Revel in victory, not in closing the deal!
Share commandership working within a brotherhood that values and involves all
warriors.
Allow others to be creative, emotionally charged and let them gain recognition.
Never forsake your own personal joy over professional achievement.
Understand the theory of the carrot diet.
Remember that a world class organization is one that is defined as an
organization that dramatically, reliably and continually increases there
productivity over the long run without reducing self esteem and economic status
of the people who work in these systems.

Todays Business Leader Code of Behavior

Hover about the boss, but dont be seen.

Bestow compliments on higher up bosses, but never on subordinates.
Seek additional assignments.
Learn how to politic well.
Policies and structure can fix all human behavior if they are forced to
follow it.
Management by superstitious learning.

Three Primary Skills For Lean Leaders

1.
2.
3.

In Order of Priority
People Skills
Conceptual Skills
Technical Skills

Definition of the Skills

People
Interpersonal interactions such as giving and receiving
instructions,negotiating, conflict resolution, team work and group decision
making.

Conceptual Skills
Planning the future activities and monitoring current activities and
reconciling the two.

Technical Skills
Applying the set of standards and rules to solve a problem or to modify an
outcome.

These (3)Basic Theories Must be

Mastered to Create a Lean Organization
1.
2.
3.

Individual Motivation and Behavior

Group Dynamics
Organizational dynamics and evolution

Five Basic Needs of People

Survival/Reproduction
Belonging/Love
Power
Fun
Freedom

Results from feeding the basic needs versus

starving the basic needs
Results from Feeding the Basic Needs:
Activities that benefit an organization
Results from Not Feeding the Basic Needs:
Activities that compromise and organization

Every Behavior has (4) Elements

1.
2.
3.
4.

The physical action of the behavior.

The emotion that accompanies the
behavior.
The physiological response that
accompanies the behavior.
The thoughts that accompany the
behavior.

Put People First and You Will Get

Employees Who
1.
2.
3.
4.
5.

Will be satisfied they will survive.

Will feel they belong and cared for.
Will have fun on the job.
Will feel they have control and power of
situations.
Feel the have the freedom to be
empowered .

Group Dynamics

For groups dynamics to benefit an organization,organizations must

change to accommodate the basic elements of successful group behavior.
Group Behavior is driven by rules that are universal, which all people will
follow.
All groups develop there own set of norms.
All groups develop a set of roles for each individual in the group.
Group Location and proximity is important.
Groups become dysfunctional with more than nine members in a group
and work best when the group size is between 5-9 people.

Organizational Evolution

Most organizations start out as a small group working within close

proximity of each other and people will develop tight knit feeling
towards each other.
The close proximity allows the group to get to know each other every
well.
The close proximity structure has shown to be were humans are most
productive, secure, efficient and happy.
As organizations grow they force logical organizational changes to
compensate for problems created by lack of group identity.
Layers of authority start to proliferate and sub organizations begin to
build fences that separate their areas from the rest of the organization.
Without fences managers and supervisors feel the loss control and power
of keeping their employees within the fence and to the ability to keep
other managers out.
The enforced departmental segregation becomes damaging to the tight
knit feeling among workers and cross functional work begins to erode.
Managers and employees begin to focus on process needs other than
focusing in on the organization passion and vision.

Organizational Evolution Cont

Corporate staffs and technical experts begin to form and develop a department
specific perspective and start to become isolated from the real world of product
engineering, materials and manufacturing.
Upper management becomes increasingly isolated from the reality of day to day
business and information begins to become filtered through the various
management levels.
Top leadership will begin to surround themselves with support staff who were
initially hired to help other areas but see there primary function as helping the
top leadership by protecting them from unpleasant news, disturbances and
irritations.
Leaders begin to fall prey to distance related significance and determine the
validity of data according to how close the information source lies.
Lower level groups limit their efforts to sell programs because leadership listens
to those most closely to them.
Lower level groups dont want to get their projects rejected and they start to
attempt to get things done without involving executive management which leads
to further isolation and distrust.

Organizational Evolution Cont

Islands of group departmentalization begin to focus on the maintenance

of the structure, instead of focusing on the business in itself.
Managers and supervisors start to develop relationships with a few key
employees and starts to run the group through these employees.
Little teamwork and little conflict occurs because everyone has worked
out a arrangement where they stay out of each others business
Key employees start to get rewarded with more status and hierarchies
begin to develop with individual groups
Supervisors who start to develop an intimate relationships with team
members and focuses his/her primary effort on the the team have
tremendous negative career impacts for the perception that they are less
managerial.
Each of the functional area groups develop similar norms, values and
characteristics.

Characteristics of Traditional Organization

Act like everyone else in your

group
Keep your boss happy
Make sure the authority figures like
you
Dont make your group look bad
Dont deliver bad news
Decisions are made at the top
Dont find fault; an authority figure
will tell you in theres a problem
Dont make any mistakes

Just get it done any way you can; we

reward winners and punish losers
Wait for someone else to act
Know your place in the caste
hierarchy and act accordingly
Dont make trouble with other
groups, mind you own business
Dont attempt to change norms set by
higher status groups, you cant fight
city hall

Sub Optimization Starts to Occur

When competition occurs between groups this is considered evil to a

lean organizational effectiveness.
When there is competition, there are winners and losers.
The losers human need satisfactions of the losers do not get met.
Losers will attribute its losses to factors outside of its control and
inequities will be perceived. The losing team will develop a loss of
devotion and concern for the organizations goals and objectives.
When competition exist hostility between groups rises and group
cooperation decreases.
Managers in the different groups begin to develop the Abilene
Paradox which is the failure to manage agreement.
Group think can begin to occur in lieu of independent critical thinking.

Characteristics of Group Think

Intense loyalty to the group.

The group maintains isolation.
The group has little tolerance for criticism.
The group sticks with decisions in spite of bad results.
The group avoids conflict among group members.
Extreme conformity of members to the groups decision is
expected.
Negative data is discounted.
Group activities are very stressful for all team members.

The Structure of Enlighten Lean Leadership

The challenge of a lean structure at the most basic level is to fully engage the
full energy of the organization to achieve critical objectives.
Understand what makes people and groups tick and how to get them involved.
Understand the titanic forces of group and organizational dynamics working
against them.
Lead in stead of being a caretaker of whatever develops.
Understand the inexorable operation of unconstrained organizational dynamics.
Outline what must be done strategically in day to day behavior to halt the
evolution of a traditional organization.
Outline the first steps to begin to evolve the organization into a structure thats
focused on profit and productivity while at the same time people are fulfilled as
they can be from the job they are preforming.

Structure of Enlighten Lean Leadership

LEVEL 4
Use of the Tools, tactics,
techniques and approaches for
maximizing system and process
efficiency and productivity
Kaizen Events
LEVEL 3
Developing and implementing
Strategies for focusing organizations
for maximum productivity and
empowerment
LEVEL 2
Structuring the basic knowledge
to engage the people in the
organization
Creating the Vision

LEVEL 1
Understanding the basic
knowledge upon which all
human behavior efforts must be
based

Level 1 Key Elements

The leader applies what he/she knows to make things happen.

Every element of the organization and the working environment is
engineered to get the most out of the people by giving them optimal
opportunities for work related need satisfaction.
Build a single, comprehensive and integrated system that compliments
the basic dynamics of human beings.

Level 2 Key Elements

Develop the transition of the facts and relationships of level one into a
set of consciously developed and internalized management and
leadership principles and metrics.
Develop and enlighten philosophy of work belief within the leadership
that the overwhelming majority of people, if given leadership, respect.
Provide opportunities for need satisfaction and a worthwhile goal that
employees will attempt to succeed.
Develop a understanding of rapid adaptation to change.
Develop a visionary application of beliefs, expectations and direction
that focuses everyone in the organization on critical objectives in an
effective manner.

Level 3 Key Elements

Value people first

Pursue Continuous Improvement
Focus on Micro processes
Create lean organizational structures

Level 4 Key Elements

Implement the Lean Tools, Tactics, Techniques
and approaches for maximizing system and
process efficiency.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.

Metric Maps
Pareto Charts
Check Sheets
Focused Communicated Planning
Consensus Decision making
Flow charts
Structured team oriented problem solving
Process re-engineering
QFD
One by one piece flow
SMED
DOE
SPC
Extensive Sharing of Cost and Performance data at all levels
Pokayoke
Empowered, well trained employees
FMEA
Concurrent Engineering

Characteristics of Lean Organization

Properly lead people who want to

work hard
Competition within the group or
organization is never encouraged
Work groups are encouraged to
work closely with other groups
Disagreements are not bad, they
surface issues that are not yet
resolved
Management stays close to workers
on all dimensions (minimize
propinquity)
Decisions are made at the
appropriate level
Strong bonds are encouraged
within work groups

Work is organized around small

groups
Sub optimization is minimized
through relentless and constant
communication across all groups
Managements role is to coach, teach,
plan, communicate and lead, not make
decisions for employees about their
processes.
Hierarchical status is minimized
(ischeal tuberosites are seldom
displayed)
People feel good about achievement
and must be given opportunities to
excel

Assessing and Fostering Teamwork

Understand the difference between groups and teams.
Know the difference between Intact and Ad hoc teams and how
they should be treated different.
Focus and educate the teams on the interpersonal side of
teamwork.
Understand the stages of team development.
Understand the characteristics of an effective team.
Understand the impacts of the team efforts on group processes.
Make sure the team has defined measurable to achieve.
Diagram team communication.
Institute a team balance index system.
Institute a team directionality/responsiveness Index.
Develop a team communications profile.
Reward the team for jobs well done and objectives accomplished.

Building Organizational Consensus and

Overcoming Resistance to Change
Understand the (3) key natural
progression steps of organizational
change
Equilibrium
Chaos
Reintegration

Building Organizational Consensus and

Overcoming Resistance to Change (cont)
Read case studies on how resistance to change was overcome at
other companies. There is no one single answer.
Understand what organizational consensus is. Organizational
Consensus is when:
Employees understand a situation
Employees have been listen to by others in a group where the
individuals have given there input
When employees listened to others
When team members agree to support whatever the team decides
When the team or group agrees to support the decision, not
because it agrees with it, but because each member is committed
to the group itself

(2) Key Elements to Successful Process

Improvement

Process Improvement is best accomplished when the

focus is on improving micro processes day in and
day out.
Process Improvement requires a proactive attitude
approach to problem solving versus results
orientation approach

Process Elements
Inputs

People
Information
Materials
Machines
Computers
Energy
Policies
Procedures
Skills
Forms
Environment
Corporate Culture

Events

Work
Motion
System Changes

Outputs

Changed Materials
Finished Products
Scrap
New Information
New Systems
Less energy

Characteristics of Process versus Results

Orientated Attitude

Processes
Prevent problems
Planning, Patience
Evolutionary
Employees Do
Small Steps
Everybody Helps

Results

Fix Problems
Fight Fires
Revolutionary
Management Does
Giant Leap
Dirty Harry Syndrome

Types or Levels of Processes

Mega Processes

( Label for a collection of Macro Processes)

Macro Processes
(A Process that has a Few Thousands of Micro Processes)
Micro Processes
(Small Processes)

How are Mega and Macro Processes

Improved?

By letting the micro process workers define

the micro process details.
By letting the micro process decision making
to be done by only those who know enough
to do it correctly, the micro process workers.

Facts about Processes Improvement?

Processes are improved or changed on a

continuum.
Process changes will effect both micro and
macro process systems.
Process improvement happens step by step.

Paradigms of Leadership Styles

Micro Process Oriented
versus
Macro Process Oriented
Micro Process Orientation
(Management Leads/Employees Do)

Focus organization on low

technology and conventional
methods.
Small constant improvements,
attention to detail, focus on
adaptability.
Management teaches and coaches
empowered employees while
focusing on the next source of mega
process innovation.
Values people and group effort and
insures that the use of teams and
groups are the basis for on-going
improvement.

Macro Process Orientation

(Management Does)
Focuses on high technology and
cutting edge methods.
Grand plans with disruptive changes,
focus on management creativity.
Employees treated as worker drones
who must be controlled and watched
while management brainstorms
salvation.
Looks to technology for big gains,
prefers to buy answers rather than eat
carrots.

Difference Between When Process

Improvement Becomes Re-Engineering

When the change begins to impact both micro and macro

processes units.
When changes move beyond affecting only the elements of a
single process or two.
Reengineering is more associated with management led, but
worker implemented wholesale changes in macro processes.

(2) Philosophies of Dealing with Errors

Wait for them to occur and then react
Implementing a defect prevention

approach to attack errors before the

occur

How to Implement a Defect Prevention

Values in Your Organization
1.
2.
3.
4.

Planning ahead to design your product or service for low cost,

high quality, defect free manufacture for delivery.
Rigorously training employees in job skills so they will not
make technical errors.
Continuously focusing on the elimination of all sources of
micro process errors and flaws.
Working to improve the overall efficiency of the total system.

How to Implement a Defect Prevention

Values in Your Organization
1.
2.
3.
4.
5.
6.

Planning ahead to design your product or service for low cost, high quality, defect free
manufacture for delivery.
Rigorously training employees in job skills so they will not make technical errors.
Continuously focusing on the elimination of all sources of micro process errors and flaws.
Working to improve the overall efficiency of the total system.
To design the organizational structure to demand, expect, coach, structure and facilate each
and every employee to find ways to more effectively preform day to day processes.
Dont denigrate the impact of cumulative small improvements on competitiveness and
defect elimination.

True Employee Empowerment From A

Enlighten Lean Leader Perspective

Providing employees with the resources necessary to pursue Continuous

Improvement.
Allowing employees to be involved in decisions that affect their work areas and jobs.
Allows all levels of employees to have autonomy to make the appropriate decisions
about their micro processes.
Providing the employees with the training and coaching needed so that their technical
and interpersonal skills are at the top of the level to excel in their jobs.
To treat employees with the same respect and assumption of intelligence and
motivation that management accords to itself .

Enlighten Problem Solving

The use of Deming's Plan, Do Check Act Cycle.

Understanding that Problem Solving and Process
Improvement is a never ending cycle.
All process changes must be carefully planned
(PLAN), tested (DO), evaluated (CHECK) before
they are implemented (ACT).

Plan-Do-Check-Act
Its a (12) Step Plan
(1) Key Step

Act

Plan
(9) Key Steps

(1) Key Step

Chec
k
(1) Key Step

Do

Plan-Do-Check-Act
Its a (12) Step Plan Not a (4) Step Plan!!!
1.

Identify Outputs

2.

Identify Customers

3.

Identify Customer Requirements

4.

Translate Customer Requirements to Specifications

5.

Flowchart the As Is Work Flow

6.

Identify the Key Parameters and Select Metrics

7.

Determine Process Capability

8.

Identify Benchmarks

9.

Identify Improvement Opportunities

10.

Implement Improvements on a Test Basis

11.

Evaluate Effectiveness

12.

Institutionalize Improvements and or Cycle Back to Step (9)

The (7) Quality Control Tools That are Used with The PDCA
System for Process Improvement

1.

Run Charts

2.

Histograms

3.

Control Charts

4.

Cause and Effect Diagrams

5.

Flowcharts

6.

Pareto Charts

7.

Scatter Diagrams

Process Improvement Poka-yoke Concepts

1.

The incorporation of devices in a process that detect-sense and identify errors before
they occur.

2.

Have an assumption that a re-occurring error has either happened or will happen.

3.

Focus on predicting the occurrence of the error before it occurs so corrective action
can be ready and waiting.

4.

Always provide a warning that an error is occurring so that immediate response is

possible.

Types of Poka-yoke Devices Used

Guide pins
Limit Switches
Timers
Photocells
Checklist
Alarms

Shut Off Switches

Left Over Part Baskets
Scales
Counters
Templates
Knock Out Jigs

Visioning

The plan that outlines the transformation from management by crisis to enlightened
leadership at some indeterminate but foreseeable future.

A currently conceived end sate of the organizations hopes and dreams.

A statement to provide employees with a personal, emotional connection to the bigger

picture of what the organization is striving to achieve.

Something that allows the employees to stretch and make the emotional connection so
they can connect it with a Pride of Ownership.

Unique to every organization as there is no one exact approach that right for every
situation, organization, industry or leader.

Recommended Steps to Follow When

Implementing a New Company Vision

The vision is not required to have immediate implementation when management

changes.

The Leader must first bring the compassion for other people, before outlining the
vision.

The leader must understand the battle to be fought before designing his/her army.

The vision must be connected to the day to day operation

The vision should be defined and stated to employees about six months after taking
over and organization.

The vision should not be judged not on its wording, grammatical correctness or
inspirational content but on how well it becomes accepted, assumed and practiced
element of the organizational culture, management system and leadership philosophy.

Key Characteristics of a Good Vision

1.

Its demonstrated by the behavior of the leaders and employees.

2.

Behavior that supports the vision is rewarded.

3.

It is Emotionally Inspiring.

4.

It creates Group Belonging and Need Satisfaction.

5.

It Demands Excellence.

6.

It provides guidance for Behaviors in Unforeseen Situations and Empowers

Employees to Act.

7.

It is connected to the marketplace and its Customers.

8.

It is enduring but not flexible.

9.

It must recognize that the organization is full of hard working, creative, determined
people who are just waiting to be lead to excellence.

10.

The must be a realization that the organization the vision is to be presented to is rife
with cancer of traditional management.

Keys To Making Vision Work

1.

Ensure that you have examples of the unspoken vision in action and reward and praise
them loudly, prominently and aggressively.

2.

Be consistent in rewarding new vision supporting behaviors.

3.

Discourage and punish counter vision behaviors immediately and consistently from
day one.

4.

Get honest feedback as to how well the leader is walking the walk after having
talked the talk.

5.

Look for two or three outspoken radicals for feedback as they are usually brutally
candid, cannot suppress candor and will even risk alienating executives. However
these folks usually see a lot at a very real level and are not afraid to talk about it.

6.

Meet with employees in small groups on a regular basis to obtain feedback.

7.

Go out into the organization and give short informal five to ten minute campaign
stump speeches to various groups in the organization to share the vision.

Benchmarking
What is Benchmarking:

It is the analysis of a performance level or process output which is

impressive, if not the best that can be found to compare your
organization against

It is about having the information about the processes that produced

the impressive performance, so that your organization can potentially
implement these processes.

The Steps to Benchmarking

1.

Identify Key Macro Processes

2.

Analyze Key Macro Processes

3.

Analyze Key Micro Processes

4.

Identify Key Metrics For Data Collection

5.

Identify Key Sources of Information

6.

Determine How to Collect the Data

7.

Collect the Data

8.

Analyze the Data

9.

Establish Goals and Develop a Plan

10. Develop Micro Process Metrics

11. Use Kaizen to Make Changes
12. Incorporate Benchmarking into Planning
13. Use Benchmarks to Define the Vision

Understanding Customers and Customer

Satisfaction
Customers will be satisfied and consider
you company world class if your
organization:

Maximizes there effectiveness and output as an

organization

Satisfy (at the very least) or astound (at your very best)
your customer base

The Life Cycle of Customer Satisfaction

According to the Kano Model

1. Excitement
2. Performance
3. Basic

The Difference Between the Life Cycles

Excitement:
The stage where the customer doesnt know what to expect or receives
an unexpected feature or product and is delighted with product or feature

Performance:
The stage where the customer expects a certain level of performance from
the product or feature

Basic:
The stage where the product is mature and the customer knows the
product is easily obtainable and the have specific performance
expectations

The Difference Between Internal and

External Customer Requirements

Internal Customer Requirements

Easy to Handle
There when you need it
Understand help and data available
Able to see and feel the customers
Defect Free
Save them time and labor

External Customer Requirements

Make life easier
Save them time and labor
Easy to Use
Desired features available
Defect free
Reasonable cost for value
Good Service

Internal Roadblocks to Achieving

Customer Satisfaction
Having to battle their way through a lack of information and involvement
Outdated or lacking systems
Massive paperwork
Bureaucratic approval channels
Internal sources short changing their responsibilities
Internal sources assuming they know what the customer wants.
Generalization of the customer base
Lack of systems to get honest internal customer feedback

Metric Maps

A visual communication system that shows the organizational muscle to the

organizational body

A cascading series of key measurements that focus on details to predict or cause the
metrics above them

A tool that employees and management uses to measure the smallest level of detail in
key processes so employees know what to work on.

A tool that provides immediate feedback on key processes so that problems, resources,
coaching and leadership can be applied to correct the process problem or issue

Developing Metric Maps

The CEO/President develops the highest level metrics for the organization.

The employees who work on the micro processes are the ones to fill the metrics out.

Make sure the metrics are reviewed daily by the highest level of management so
employees know that upper management is concerned with their daily job function.

Do ever let the metric stop being filled out and forgotten about. This is a kiss of death
to process improvement.

Make sure the proper metrics are being selected or tracked.

Realize that employees prefrom hundreds of task each day to achieve his/her job that a
supervisor or manger never see and not everything can be tracked.

Making Metric Maps Work

To implement maps this is going to take time and investment.

Make sure every plan, task problem, achievement and issue is driven or evaluated in
terms of its impact to the metrics.

The maps should be updated at a minimum weekly by preferably daily.

The must be reviewed and attended to as the first and last item in every meeting.

Every month or two each team or group that is working on their metrics needs to be
brought up to speed in a meeting as to how their metrics are effecting up-line metrics

Make sure the metrics for each level of the organization are posted for viewing for
every tem, area or department in a conspicuous area.

Make sure the metrics are viewed as more important to your organizations success
than all the product displays in the front lobby.

Make sure the metric format is the same everywhere..

Review the metrics 5-10 minutes every day with team and area personal that impact
the metric.

Recognizing and Rewarding Achievement

Performance and Appraisal Systems

Realize that Performance appraisals and merit pay increases are hard to reconcile with
lean leadership.

These systems are artifacts of traditional, authoritarian, Big Brother will let you know
how you are doing and you better be doing well caste based management style.

They are a system where a authority figure evaluates a subordinates performance,

usually annually and arrives at a determination of how a subordinate has preformed
over some time, usually a year.

They are systems that where the determination of quality, quantity, attitude is adjusted
to fit into a forced distribution as required by the organizations compensation
department.

The Purpose of a Standard Reward System

Set objective standards of Performance and Evaluation

Reward Past Productivity

Motivate Future Productivity

Identify and Monitor performance problems

Make Rewards Proportional to Achievement

Identify Employee Development Needs

Some Reasons Why Performance and

Appraisal Systems Do Not Work

All sorts of of different supervisors, each with different training, experiences, people skills,
business knowledge, and familiarity with what there their subordinates are doing are told to place
different groups of employees on the same scale.

Each supervisor has a different philosophy of people in general, vary expectations about specific
people and types of people, each with a different personality.

Each evaluator sees different attributes, weighs them differently, and has a different agenda
bei8ng served by the appraisal process.

Some supervisors and managers are tough assessors, others are easy.

Some supervisors and managers reward effort and other s dont.

Employees who in the past got good rating continue to get good ratings and those who got bad
ratings continue to get bad ratings.

What supervisor really knows whats going on? How many hours does the supervisor actually
spend closely observing an employees behavior and analyzing the cause and effect of that
behavior.

Money is not one of the five basic needs of survival thus it does not work as a motivator

More Reasons Why Performance and

Appraisal Systems Do Not Work

Many employees will view that there inequities in the system, as non performers getting rewarded
on a basis of luck or special relationships.

People will only feel like superstars and will only work like superstars, when you treat them like
superstars and they know you expect them to be superstars.

There is a time bases problem as humans tend to notice, recall or attend to recent events than more
past events.

If organizations reward employees for obtaining objectives and punish them for missing them,
employees will tend to be inclined not to be risk takers when the reward is not attractive enough
to inspire risk taking.

Performance appraisals make it more difficult to get rid of poor performers.

Appraisals hurt teamwork, After all, if its a contest why help a foe!!

Almost all people universally say that they find appraisals humiliating, degrading, off target, ill
informed and insulting.

360 degree feedback will only allow employees not pick people that are potentially dangerous
to them.

Alternatives to Performance and Appraisal Systems

Give each employee no matter what level in the organization exactly the same salary
increase and or bonus each year.

Develop a formula which is based on the the most meaningful metric maps.

Use communication that we are all in this together team spirit.

Executives should never be given larger dollar amount of rewards in terms of the
formula to eliminate hostility.

Pay employees at least in 65th percentile of similarly experienced and skilled people in
other companies in the same geographic region.

Update the pay scales every two years to make sure employees are not falling behind
their peers in other organizations.

Pull Systems

Realize there is no Quick Fix to implementing Lean Leadership and systems, it does
not exist. You have to pay the price to get to the next level.

Just in Time is a system that applies to all processes within an organization, not just
the supply delivery.

JIT a system that produces exactly what you need, when you need it

There are many cases which the optimum lot size for a particular operation is greater
than one, so dont take the one of one by one as a universal constant.

Less in terms of inventory or lot sizes is always better if it improves overall costs,
productivity and cycle time.

There are expectations, when technology, availability of resources, and process limits
profit very small lot sizes

A Pull system forces a great many enlighten management practices and leadership
actions at all levels of the organization.

Pull Systems

Its a straightforward way to begin to move any organization in the direction of

enlightenment in advanced of total insight, and will contribute to decreased cost
immediately.

It decreases cycle times in becoming the number one competitive differentiator in

today's world markets-victory goes to the swift and responsive.

There is only one way to assure optimum speed and lowest cost in paper, data, service
and product flow, a pull operating system.

The primary mission of a pull system is to find and eliminate waste.

The Three Categories of Waste and

its definition!
Waste of people
Waste of Quantity
Waste of Quality
Waste is defined as any non value added activity or
activities that add nothing to the value of the product or
service. They could be eliminated and product or
service could still be produced.

The Seven Types of Waste

People Waste

Motion

Waiting

Over Processing

Quantity Waste

Inventory or WIP

Moving Things

Making to Much

Quality Waste

Fixing Defects

The Mechanism for Eliminating

People Waste
WORKPLACE MANAGEMENT (4) Key Techniques
1. Standardized work
2. Workplace organization (5S Program)
3. Kaizen
4. Implementing the 20 Keys

The Mechanism for Eliminating the

Quantity Waste
Just In Time (4) Key Techniques
1. Leveling materials through the system
2. Kanban Systems
3. SMED Single Minute Exchange of Dies
4. TPM Total Productive Maintenance System

The Mechanism for Eliminating the

Quality Waste
Autonomation (3) Key Techniques
1. Implement the use of machines and equipment that are
not totally fully automated.
2. Implement Poka Yoke or system to detect errors and stop
itself when the error occurs
3. Allow empowerment of employees to take whatever
action is necessary to allow operations to resume and to
make a decision about a defective product and continue
to operate

More Pull System Goodies

Pull Systems are low tech and organized around and concentrated on, small
low productivity improvements in processes.

Technology is not seen as problem solver but as a tool that is required to

support the fast moving system created by small process improvements and
waste reductions.

Upstream processes never push output downstream to the next process.

Material only moves when the downstream process asks for it or pulls the
output towards itself by means of Kanban or other signals.

Information on Kanban Systems

The come in various shapes and sizes and serve many purposes.

There are many types such as WIP Kanbans, Transportation Kanbans, Buffer Kanbans
and so on..

Design processes based on TAKT time and try to level the output of each step in the
process to the same output..

Design operator activities to be leveled as close to the TAKT time as possible even if
this means elimination of an operator in the process.

There are two key rules to Kanban Systems:

Nothing may move without a kanban accounting for it

Only production control and or scheduling personnel can use create kanbans

Standardized Work or Kaizen Event

1.

The use of TAKT time and machine and operator cycle time leveling.

2.

The focus on Work in Process.

3.

The use of Work Instructions.

4.

It is focused on the actions of a single worker to produce a single piece of output and
is especially powerful when the work is repetitive.

5.

Operator functions are recorded using a Standardized work sheet or sometimes a

spaghetti diagram.

6.

The sheets are developed by the operators preforming the task.

7.

Information is used to create a Standardized Work Combination Sheet.

8.

SWCS are done separately for all workers even if multiple operators exist and are
completed and time studied by the operators performing the task.

Kaizen Action Sheet

A reporting out document used after a Kaizen Event:
1.

It forces the person making the suggestion to study the work area and process in order
to draw a before and after sketch no matter how crude.

2.

It keeps the suggestions within a work group and it is unusual that casual tanperers
will change the KAS sheet.

3.

It provides a tracking mechanism.

4.

It provides a handy method of conveying changes to engineers or other support

personnel.

5.

It forces people developing the suggestions to think about the problem.

SMED Single Minute Exchange of Dies

The analysis and implementing of equipment and process changes to reduce the setup
and changeover time of changes tools in and out of machines.

Die exchange is the generic term for removing a drill, cutter, punch, mold or die from
a machine and replacing it with another type on machines that are capable of
producing more than one part.

Its an extension of the Standardized Work Sheet but applied to the tool changeover
instead of the operator.

Intended to reduce lot sizes because the larger the lot the more inventory must be
purchased and stored, lost, damaged or made obsolete, more space required, more
storage materials must be purchased and labor and handling cost increase.

Broken down into internal and external actions and doing the external activities before
the tool is actually changed.

Improvements are made using a three stage approach to time reduction.

Visual Systems and its Key Elements

A system in that the status of the system is clearly evident through easy to observe
visual signals.

Labeling of everything from parts, bins, areas,machines, cabinets, tools, departments

to even employee name badges.

Proven to get more quality improvement and rework labor reduction from labeling
than any other single improvement.

Its a form of error proofing in its lowest tech, lowest cost and easiest method.

Potential use of lights to show when work stations are getting low on parts
red,yellow,green.

A Kaizen Display board that shows all the results of the Kaizen events, team metrics,
cross functional training matrix, customer feedback reports and other key information.
The board is also used for those 5-10 minute informational kick-off meetings.

Daily Kick Off Team Meetings

To inform people about such areas as:
1.

How the group or department and plant performed yesterday.

2.

Activities planned for the group today.

3.

Who will and will not be available for the day.

4.

Any training that will be done if they have time.

5.

Any changes in status of improvements.

6.

Any changes to SWCS.

7.

Airing of any quality problems.

Lean Leadership on the Front Lines

Dont expect that you can change your organization unless youre the CEO/President
but your area of responsibility will improve.

Change happens in the trenches but must be lead from the top.

You can almost guarantee world class success in those areas of the organization that
you lead.

Lead change only in those areas where you can exert significant and long lasting
influence. It helps spread the word to other areas.

If you wish to change an organization you must be intimately aware of group

dynamics and resistance to change and must appreciate that youre up against a an
unthinking, self organizing system.

(8) Key Rules to Follow When

Attempting to Lead an Organization Into
a Lean Culture

1.

You cannot exactly predict every outcome and paying attention to the details can spell
the difference between success and disaster.

2.

Control from the bottom up as complex systems operate as the sum of the actions and
interactions of individual entities operating in real time.

3.

Focus on Teaching New Rules Rather than Measuring Outcomes.Remember most of

what happens in a complex system goes unreported or unnoticed.

4.

Entity Excellence Comes Only From Challenge and Achievement. Entities or people
only change and improve when they are challenged.

5.

Grow by Chunking. Change often fails because the initiator tries to hard, too fast and
with two large a part of the organization.

6.

Encourage Errors. Mistakes are going to happen, but be afraid to fail a few times.

7.

Complex Systems Cannot be Accurately Characterized by One Measure. There is no

one measure of organizational health.

8.

It is impossible to optimize Every measure of a complex system..

(9) Key Things Not to Do when trying to

become A Lean Leader
1.

Dont let yourself get talked out of doing it.

2.

Dont give it a name

3.

Don make a speech or a company wide announcement

4.

Do not launch a massive training program

5.

Do not hire a consulting group to do It

6.

Do not make it the responsibility of one area

7.

Do not isolate it from the day to day business

8.

Do not order coffee cups, banners, etc

9.

Do not worry if you are not sure what you are doing

The Topics Covered

Understanding the impact of human relationships in the business world and how business
leaders think today.
Understanding the lean challenge from a human relationship perspective
Understanding human motivation
Understanding group dynamics
Understanding Organizational Dynamics and Organizational Evolution
The Organizational Structure of Enlightened Leadership
Assessing and Fostering Teamwork in Organizations
Building Organizational Consensus and Overcoming Resistance to Change
Process Improvement and Re-engineering
Visioning
Benchmarking
Understanding Customers and What Customer Satisfaction is All About
Understanding Metric Maps
Recognizing and Rewarding Achievement
Understanding Pull System
Understanding Kanban Systems
Single Minute Exchange of Dies
What is Waste
Visual Management Systems
Lean Leadership on the Front Lines