The Association of Manufacturing Excellence Presents

The Association of
Manufacturing
Excellence
Presents
1
People Powered Lean

Business is a Team Sport
March 14-15, 2007
Or
People are Better Than Materials!
Core Beliefs
Start with the end in mind! Take a Systems Approach
Be in the business of making hard things easynot easy things hard.
People are good and want to do the right thing
It is the organizations responsibility to create an environment for its people to be successful

and our peoples vote counts more than ours.
Our Peoples Vote counts more than ours
Every organization has a limited bandwidth for change
Culture vs. Change and Leading
Turf, Ego, and $$$ and the end of the day it is about

Think Hard: Are we organized for success and doing
the right things?
Right Plays
Right Rules
Right Positions
Work Hard: Are we executing the plays?

Putting the right people with the right skills in the game to run
the plays
Motivating them to produce and Win!
Talk: Communicate
Everything is constantly changing
Providing Aggressive Leadership
Army Basketball Team

1976-1977
Task Force 2-4 Cavalry Tactical Operations Center Team

Feb 21, 1991 - Northern Saudi Arabia
Workshop Learning Objectives

1. Allow you to see People from a business
perspective
2. Understand and Define the Lean Value Stream
from a People Perspective
3. Link your People programs to the business
4. Understand how Senior Leaders evaluate
People investments
5. Learn from others like you
6. Take a Good Idea home with you
8
The Lean House without Waste
Session Feedback
Start with the end in mind!
10
Business Card Exchange

1. Position on the Team?
2. Type of Company? Manufacturing;
Services; Other
3. Product?
4. Number of Employees?
5. Number of Locations?
11
Agenda
March 14, 2007
8:00 8:20
Welcome
8:20 9:45
Seeing the Big Picture: Organizing for Success-- The Theory
9:45 10:00
Break
10:00 11:00
Recruiting: Finding the Right Athletes (Scenario Exercise)
Trying Out: Verifying Skills and Attitude
Making the Team: Right Fit; Finding Your Seat on the Bus
11:00 11:30
STIHL Case Study: Simon Nance
11:30 12:00
Lunch
12:00 1:00
Pre-Season Training
Building Your Depth Chart
Improving the Performance of Your Current Team.
1:00 3:00
Playing to Win
Leaders Executing the Plays: Current Leader; Current Job (Scenario Exercise)
Building Bench Strength: Future Leaders (Scenario Exercise)
3:00 3:15
Break
3:15 4:00
Speeding the Lean Journey:
Keith Hornberger (Lead Sensei and 6
Sigma Black Belt)
4:00 5:00
Keeping Score: Putting it All Together
Wrap Up and Closing
12
Agenda
March 15, 2007
8:00 8:30
Welcome: Bruce Bolton, Operations Manager, Creative Memories
8:30 10:30
Creative Memories Plant Tour
10:30 11:00
Conference Wrap Up
11:00 12:00
Lunch
Optional
1:00 6:00
Golf Outing
13
Today we will generate a lot

more questions than
answers
.and that is OK
14
Take a Blue Slip

Our Way to Communicate and
Facilitate Our Journey!
15
Take a Blue Slip

What do you want to learn today?
16
Break-Out Product Information

1. Realistic Job Previews
2. Training Program Design
3. Electronic Performance Support Module Development
4. Learning Management Systems
5. Depth Charts to Manage Right Person; Right Job.
6. Deriving Job Descriptions from Value Stream Maps
7. Attrition Analysis
8. Building Human Capital Budget Request
9. Aging of the Workforce
10. Others:
Name:
Company:
17
Getting Out of the Box

Big Picture Thinking!
18
Measures of Performance
It is All About Business

Performance!
REQUIRED Level of Performance
Performance
Gap
Resources
Required
CURRENT Level of Performance

19
Business Metrics
If we completely align our Lean Journey with our People
SYSTEMs we will:
Improve Quality
Improve Production to Headcount Ratio thus Reducing Labor
Cost per product
Reduce Defects through focused Continuous Improvement
Reduce Lead Time to Increase Market Share
Increase production capacity and
Improve PROFIT margin
by optimizing the plants physical production capacity

to our production process.
20
Business of People
The Mission:
Provide Leaders with right people in the right
numbers, in the right skills, at the right time, at
the right cost to meet business needs.
The Goal:
An agile, competent workforce capable to move
at the speed of business.
21
Alternative Roles for Corporate Learning

1.
Training
Did the Learner accomplish the Learning Objectives efficiently?
Business Metric: Time Invested vs. Skills Outcome
2.
Performance Improvement
Did the Leader receive improved job performance as a result of the
investment?
Business Metric: Overhead Cost to Improved Job Performance
3.
Human Capital Management

Do we have a system to provide the Managers with Right People in the
Right Numbers with the Right Skills at the Right Time?
Business Metric: Headcount to Productivity
4.
Organizational Effectiveness
Are we organized, labor resourced and costed correctly to
accomplished the business objectives?
Business Metric: Full Time Equivalents vs. Profit Margin
22
Team Sport
Value Stream
1.
2.
3.
4.
5.
6.
7.
Organizing for Success

Recruiting
Trying Out
Making the Team
Pre-Season Training
Playing to Win
Keeping Score
23
Business is a Team Sport!

Building High Performance Teams
1.
2.
3.
4.
5.
Organizing for Success: Aligning Production Process with

People
Recruiting: Finding the Right Athletes
Trying Out: Verifying Skills and Assessing Attitude
Making the Team: Best Player or Best Athlete: Right Fit?
Pre-Season Training:
a.
b.
c.
6.
Playing to Win:
a.
b.
7.
Learning Your Position and the Depth Chart

Developing Leaders at every Level
Current Workforce Skills Development: Building Benchstrength
Leaders emerge: Leader Performance Improvement: Identifying and
empowering leaders with the right behaviors
Teams play smart and hard: Continuous Improvement
Keeping Score: How do you know you are Winning?
24
Organizational Scheme
GM
1S
OM
OM
SS
SS
SS
1S
1S
GT
MU
NE
Vertical Dyad Linkage
GT
NE
OM
GM: General Manager
OM: Operations Manager
SS: Shift Supervisor
1S: 1st Line Supervisor
MU: Make Up Supervisor
GT: Go To Employee
E: Employee
NE: New Employee
Based Upon a Total Operational Headcount of 3060
10
30
60
160
100
500
1600
600
25
Building Pipelines
Adult
Education
Recruiting
Trying Out
Making the Team
Temp
Agencies
Community
Colleges
Generate
Labor
Reqs
College
Transfers
High Schools
Tech Schools
Other
Companies
Orient,
Screen
&
Identify
Candidates
Interview
&
Assess
Skills
Common
Skills
Training
1st Job
Skills
Development
Current
Employees
State Employment
Offices
Increase Cost
Hiring
Decision
Decrease Cost
Military
26
Life Cycle Skills

Development Program
Complex
Tasks
Employment
Skills
Supervisor
Development
Training
VI
Pre-Employment
Basic
Skills
Management
Skills
Intermediate
Skills
Supervisor
Practical
Application/
Evaluation
Mentor
Skills
Advanced
Skills
IV
Initial
Entry
Skills
Training
Basic
Training
Practical
Application
Coaching/
Evaluation
Skills
Evaluation
Intermediate
Training
II
Practical
Application
Coaching/
Evaluation
Soft Skills
Development
Advanced
Training
III
Practical
Application
Coaching/
Evaluation
Experienced Personnel
I
Competency Level
Career
27
Leader Development Program

Current State
Leader Development conducted

informally or not at all.
Usually best operators promoted to
Supervisors
Experience gained over time
Many training courses available
but not mapped to critical tasks.
Undocumented program that is
dependent on individual
Management implementation
On the Job Training is ad hoc with
few Training Materials available on
the Job Site.
Perfect State
Systematic Approach to Leader

Development
Managers are Responsible as the
Primary Trainers of their Supervisors
Managers are responsible to tailor skill
development to each individual
supervisor and each operational area.
Leader Development Programs
mapped directly to Performance
Review System
28
Bench Strength is Working the Blue Lines

Operations Manager
Current Shift Supervisor Future Operations Manager
Current Shift Supervisor Current Job
Current 1st Line Supervisor Future Shift Supervisor
Current 1st Line Supervisor Current Job
Current Go To Operator Future 1st Line Supervisor
29
Putting It All Together

When the CEO/CFO say
OK we see all the pieces, we understand
the problem, we know this critical to our
business
How much money do you need and when
do you need it, and how will we know it
made our business better?
30

Success Principles
1.
2.
3.
4.
5.
6.
7.
Business Focus (People + Process + Material = Products)

Senior Leader Hands On Business with embedded Metrics and
Regular Reporting
Centralized Planning while Executing Program as close to the
work area as possible.
Managers are responsible and accountable for the performance
and development of their people
Be the P&L Responsible Managers best resource for support by
providing them the processes and programs to do better meet
their business objectives.
Do not be a part of the problem by putting HR mechanics ahead of
business support.
Constantly Link the Corporate Strategy to the Human Capital
Management Programbe proactive
31

Program Design Challenges
1.
2.
3.
4.
5.
6.
7.
8.
No silver bulletBig Problem with a lot of moving parts in a

dynamic business environment
Focused effort based upon real analysisnot a Good Idea of the
Day approach.
Recommendations must make good business sense
Design Executable Programs and be good Program Managers
(Cost, Schedule, Quality)
Be realistic in execution and eat the elephant one bite at a time.
Focus on PEOPLE first; then FTE.
Requires long range thinking People are multi-year projects-- if
fact Life Long Projects
Do not be a part of the Profit and Loss problem!
32
What group represents the biggest risk

for the future of your business?
(Rank Order with 1 the Highest Priority)
__ Hourly Workforce
__ 1st Line Supervisors
__ Plant Middle Management
__ Plant Managers
__ Executive Staff
__ Administrative Support staff
__ Temporary Workforce
33
Which part of the People Life Cycle requires

the most urgent attention?
(Rank Order with 1 the Highest Priority)
__ Organizational Scheme
__ On Boarding (e.g. Acquiring New Employees)
__ Incumbent Production Workforce
__ Line Supervisors Performance Improvement
__ Executive Leadership Development Program
34
Workshop Participant
Snapshot
Take a Blue Slip
Title:
Company:
Type of Business:
#1 Challenge:
35

Theory and Application
36
People Powered Lean

Assumptions
Sound Business Model: Crisis?
Value Stream Map is Present
37
Business Process
Sales/Quoting
Sampling
Sequencing
Customer
Orders
Scheduling
Purchasing
Components
Receiving
Components
Planning
Pulling
Components
Assembly
Staging
Sterilizer
Finished Goods
Processing
Ship to
Distributor/Customer
38
Value Stream Map
How do we create value?
39
Value-Adding Activities
.transform materials and
information into products the customer pays for
Non-Value-Adding Activities
.consume resources, but dont
directly contribute to the product and/or the customer
Non-Value-Adding but Required

.consume resources, but are required
by government regulation or company policy
40
Team Sport: Defining Positions

Mold Maker &
Maintenance
Mold Setter
Mold/Part Designer
Sales Representative
Customer Order
and Materials
Material
Handler
Quality Control
Machine
Finished Products
and Satisfied Client
Machine Operator/
Packer
Process
Technician
Assembly Operator
Press Maintenance
Technician
41
Value Stream to Cell Map

Production Cells
Lips
Assemble/ Tack
Lug and
Beam Welder
Weld 1*
Weld 2*
Who is going to do it?
Weld 3
42
Horizontal
Labor Planning Considerations
Job Complexity
Production Tempo
Level of Manual Labor
Level of Intellectual Labor
Quality Standards
Availability and Skill Set of Labor Pool
Availability of Leaders
(Leader to Led Ratio)
43
Vertical Labor Planning

Senior
Management
P & L Responsible Leaders

IT/HR/
Accounting
Sales
Engineering
1st Line Supervisors

Production Workforce
Machine 1
Machine 2
Machine 3
Machine 4
Machine 5
44
Creating the Conditions for Success

Owner: Creating the Business Model (Profit and Loss)
General Manager/Front Office: Runs the Business
Head Coach: Decide the Game Plan (Players and the Plays)
Coordinators: Call the Plays
Coaches: Ensures the Players know how to run the Plays
Leaders: Read the current situation and execute the Plays
Players: Execute the Plays
45
Vertical
Labor Planning Considerations
Span of Control (Leader to Led Ratio)

Physical Environment
Tempo
Hourly or Salaried
Complexity
Same Labor Categories or Mixed
IT/ERP System Granularity
Support Staff Availability (Production Control,
Planning, Quality Control, Engineering,
Training, HR, etc.)
46

Think Hard: Is our business model sound, are we
organized for success and doing the right things?
Right Plays
Right Rules
Right Positions
Work Hard: Are we executing the plays?

Putting the right people with the right skills in the game to run
the plays
Motivating them to Produce and Win!
Talk: Communicate
Everything is constantly changing
Providing Aggressive Leadership
47

Mission
Provide our leaders and teammates with the
tools, skills, training, and procedures to improve
our production processes through continuously
identifying and eliminating waste.
48
Lean Goals
Improve Quality
Eliminate Waste
Reduce Lead Time
Reduce Total Costs
Through Near Real Time Visibility over:
Process
Materials
Cost (People)
Equipment
49
People Powered Lean:

A SYSTEM to Align
People to Process obtaining
Employee Ownership
Process
Materials
Cost
Equipment
People
50
Linkage to Business Outcome
Ownership is the Outcome

Engagement is the Behavior
Lean is the process
Lean training provides the skills at every level.
PPL System
Metrics + Process + Training + Resources =
Expected Business Outcomes
51
Business Goals
Create an atmosphere of ownership
Identify and close productivity gaps to increase
profitability
Create a condition that produces First Time Quality
Continuously improve our safety rates
Improve customer satisfaction through increased
responsiveness to critical customer concerns
Continuously identify and eliminate waste
52
Employee Ownership
Requires Trust
Leaders will provide:
Clear direction
Appropriate
Resources
Expert Advice
Feedback and
Coaching
Growth Opportunities
Reward and Praise
Fair Treatment
Led will:
Treat the company
like their own
Hold each other
accountable for
doing the right thing
Give early warning of
problems
Have the courage to
ask questions
53
Goal Alignment
Led
Led
Led
Led
Leader
Communication
Organizational Goals
Cost
Schedule
Quality
Safety
Goal
Alignment
Awareness
Individual Goals
Compensation
Opportunities
Responsibility
Work
Environment
Recognition
Can only occur when there is a conversation

between the Leader and the Led about the Led!
54
Gallup Path to Business Success

Real Profit
Increase
Stock
Increase
Sustainable
Growth
Business Success
Measures:
Productivity,
Profitability,
Employee Retention
Customer Satisfaction
People
Enter
Here
Engaged
Customers
Identify
Individual
Strengths
Engaged
Employees
The
Right Fit
Great
Leaders
55
Finding the Right Questions to

Assess Leader Performance
Project:
Human Sigma: Gallup conducts 30 years of research (70s, 80s, 90s)
Thousands of different questions
More than 1 million employees
Task:
Identify the factors common to the most productive workplaces
Identify the best questions to measure these factors
Validated through meta-analysis
Result:
Q12 Survey
56
Are my needs being met?

SA/A/D/SD Answers:
1.
2.
3.
4.
5.
Do I know what is expected of me?

Do I have the materials, equipment, and skills I need to do my work right?
Do I have the opportunity to do what I do best everyday?
In the last seven days, have I received recognition or praise for good work?
Does my Supervisor, or someone at work, seem to care about me as a
person?
6. Is there someone that encourages my development?
7. At work, my opinions seem to count?
8. The mission or purpose of my company makes me feel my job is important?
9. My associates or fellow employees are committed to doing quality work?
10. I have a best friend at work?
11. In the last six months, someone at work has talked to me about my progress?
12. This last year, I have had opportunities at work to learn and grow?
13. Do I trust my leader?
Source: Gallup
57
Signs of Engaged Employees
Psychologically committed to the company

Consistent levels of High Performance
Innovative and a drive for efficiency
Intentionally build supportive relationships
Clear about role outcomes expected
Passionate, high energy, and enthusiastic
Never run out of things to do
Loyal to workgroup and company
Broaden what they do and build on it
Positive constructive criticism
58
Signs of Not Engaged Employees
Meeting the Basics

Confusion or inability to act with confidence
Low risk response
No real sense of achievement
Making up their own game
Not always committed
Show negativity but not underground
59
Signs of Actively Disengaged Employees
Physically present but psychologically absent

What can I take rather than what can I give
Share unhappiness about work with peers
Im OK but everyone else is not
Service prevention rather than service provision
Not productive but always has excuses
Inability to move from problem to solution
Normal reaction starts with resistance
Low commitment to company
Might sabotage or manipulate solutions
Isolation, low trust
60
Can we
prevent this
type of
waste from
happening?
61
Opportunity for Improvement

25% of the working population are ignored by their
supervisor
Actively Disengaged: 40% of them are in their workplace
58% are Not Engaged
2% are Engaged
Source: Gallup
62
Example
Employee Handbook
Welcome to Nordstrom
WERE GLAD TO HAVE YOU WITH OUR COMPANY
Our number one goal is to provide outstanding customer service.
Set both your personal and professional goals high.
We have great confidence in your ability to achieve them.
So our employee handbook is very simple.
We have only one rule.......
The other side of the card says:
One Rule
Use good judgment in all situations.
Please feel free to ask your Department Manager, Store Manager,
or Human Resource office any question at any time.
- From The Speed of Trust, By Stephen Covey
and Rebecca Merrill
63
Business Performance
Leading Indicators
1st Line Supervisors:
Responsible for producing Customer Value
Are held accountable for production requirements
They are responsible for getting 8 for 8 from the
hourly workforce
Usually in their first leadership position
Work all shifts
Blending of technical and people skills is required
Performance is directly related to their Managers
ability to lead them.
64
Vertical Dyad Linkage Theory

The Linkage Power Depends On
1. Leaders Managing Personal Relationships
Vertical Dyad: Leader Led x number of direct reports
Employee performance, productivity, and engagement
depends on their relationship with their IMMEDIATE
Supervisor
2. Leader and Led continuously Creating Shared Goals.

The Employees Goals and Needs
The Organizations Goals and Needs as articulated by the
Supervisor
Requires continuous Goal Alignment within Developmental
Plans and continuous Feedback
65
Group Breakdown
Leader
Led(I)
Led(O) Led(M)
In Group:
High Trust
Good Communications
Let em Run Goal Setting
Low Task Definition Needs
High Relationship Needs
Out Group:
Low Trust
Stressful Communications
By the Numbers Goal Setting
High Task Definition Needs
Low Relationship Needs
66
High Performing Team Development

Strategic Goal
Increase the In-Group

Decrease the Out-Group
Facts:
Out Group is Actively Disengaged or Physically Present but
Psychologically Disruptive. Unhappy and Insist on sharing their
unhappiness with others. Doing positive harm to the organization.
Little movement from Out to In
More movement from In to Out due to Leaders breaking the Goal
Alignment Contract/Agreement
67
Middle Group
The Key to Success
1. New Employees make a decision within first 48 - 72
hours from introduction to immediate supervisor.
2. Not Engaged Employees are those just putting in my
time but not actively doing harm. They can be
influenced by Leaders.
Strategy:
Focus on the Middle Group to move them into the In Group
as quickly as possible.
68
Analysis
Current State
69
Org Chart
70
GM
1S
OM
OM
SS
SS
SS
1S
1S
GT
MU
NE
OM
GT
NE
GM: General Manager

GT: Go To Employee
E: Employee
NE: New Employee
71
GM
Self Motivated Tasks
1S
Directed Tasks
OM
OM
SS
SS
SS
1S
1S
GT
MU
NE
OM
GT
NE
GM: General Manager

GT: Go To Employee
E: Employee
NE: New Employee
72
Who gets to Play?

Matching Leaders to People to Jobs
1.
2.
3.
4.
5.
6.
7.
8.
Considerations
Past
Performance
Technical
Experience
Strengths and
Weaknesses
Work Area
Complexity
Leader-to-Led
Ratio
Lead Times
Crew Make-Up
Shifts
OM
PC
SS
PLANNING
1S
1S
GTM
NE
M1S
M
GTM
M
NE
73
PC
Example:
Running Your Business Chart
MPL
WF
PC
FF
MPL
GTM MUF GTM
WF
FF
PC
WF
GTM MUF GTM

M
PC
MPL
FF
GTM MUF GTM
MPO
PLANNING
MPL
WF
PC
FF
GTM MUF GTM
M
PC
MPL
WF
WF
Every Bubble has a Name!

linked to their Developmental Plan
MPL
GTM MUF GTM
FF
GTM MUF GTM
M
FF
74
Turnover
Fit with
Supervisor
Quality
Source: The Gabriel Institute (2006, June) www.thegabrielinstitute.com From Maximizing Human Capital
75
Core Daily Business Activity

Success = Job Packages Completed within Cost, on Schedule, Safely, with no Re-Work
Job
Packages
Foreman
Materials
Products
People
Foreman Provide:
Clear Goal Definition
Materials and Equipment to accomplish the task
People with the Right Qualifications and Skills
Leadership: Organizational Energy and Momentum
76
Project Plans
and
Labor Estimates
Core Business
Data Element
Leader
Assigning
Charge #s &
Approving
Time
Assigning Work to Crew in Discrete Increments and

Measuring Goal Accomplishment
77
Planning & Execution

Job Packages
Worker Capabilities
Job Description
# Hours Planned
Materials Available
ERP Tools
Qualifications
Capacity
Skills
Physical Limitations
Foreman
Cost, Schedule,
Quality, Safety
78
Does it Support the Core Daily Business Activity?
SDO
DP
PM
PSP
DW
SDO: Senior Director, Ops

DP: Director of Production
DW: Director of Warehousing
DM: Director of Maintenance
PM: Production Manager
PSP: Production Supervisor
TLMU: Teal Leader Make-Up
TL: Team Leader
SU: Set Up
BU: Back Up
CRA: Clean Room Assembler
NCRA: New Clean Room Assembler
DM
PM
PSP
TL
PSP
PSP
TL
TL
TLMU
SU
NCRA
CRA
BU
NCRA
CRA
79
Analytical Methodology
1. Evaluate Responsibilities of each level
2. Look for Common Themes that flow
from level to level
3. Look for Unique Responsibilities on
each level
4. Evaluate interactions between Levels
5. Evaluate Planning Horizons at each level

6. Evaluate Communications Techniques at
each level (Message and Method)
7. Remove echelons one at a time and reassess.
80
Scope of Responsibilities
Team Leader:
Works on a Process
Planning Horizon 1 Day
Focuses on today and working with
People
Quality
Speed
Communicates Verbally to Team
Communicates Verbally and via
Data System to Supervisors and Managers
81
Supervisor:
Runs multiple Teams/Processes

Planning Horizon 1-2 Days
Focuses on near term
Allocates People across Teams to
increase speed
Monitors daily workflow
Communicates Verbally
82
Production Manager:
Manages the System

Planning Horizon: Up to 2 weeks
Develops Supervisors and Team Leaders
Levels the Lines, Maximizes Productivity
Monitors and determines headcount
Communicates Verbally and Electronically
Accesses and analyzes metrics to
manage Production Flow.
Maintains Situational Awareness
83
TASK
VPO
MO
PS
PSPC
LO
Leads
Knows Customers & Suppliers (Understands the

Value Stream)
Stewardship of Assets
Communications
Continuous Improvement
Self Development
Synthesis of the Asset
Sync of Strategic Operations
Balance Production with Costs
Team Building
Identify & Remove Barriers
Development of the Workforce
Understands the Process
Strategic Planning
Knows Business Systems Tools
Expense Management
Prioritization
Use the Computer
Fix Todays Problems
Knows the Job
Knows the People
84
THINK Strategically
Changing the Conditions
1.
2.
3.
4.
Cost
Schedule
Quality
Safety
ACT Tactically:
Day to Day operations to meet
business objectives
85
Apollo 13
Houston We Have a Problem!
Example
86
Over Time
Success = Job Packages Completed within Cost,
on Schedule, no Re-Work, Safely
TIME
Current
State
Future
State
Perfect
State
87
Leader Lanes
Current
State
Leader? Leader?
Future
State
Leader? Leader?
Perfect
State
Leader?
Time
Leader?
Job
Packages
Foreman
Materials
Products
People
88
Summary
Start with the end in mind
Organization Charts show reporting relationships
Organizational Scheme describe how you run your
business and it changes by itself
Is there Waste in your organizational scheme?
Do your leaders know their lane and more
importantly does everyone else?
Are you Organized for Success?
You MUST get this right!
89
Break
90
The On Boarding Program

Recruiting
Trying Out
Making the Team
Getting the Right People on the Bus
91
Our Peoples Vote Counts More

Create a system that enables both the company and
the applicant to make a Win-Win commitment
First day should be a commitment day; not a lets see how
this goes day
It is Managements responsibility to create an

environment for our employees to be successful
Not an environment that encourages them to fail
92
Are you forecasting your labor as

you forecast your business?
Production needs drive labor requirements
How far out are you looking?
What skills will you require? Current or New?
Lead Time from labor requirement to
competency?
Who is responsible for managing it?
What models do you use?
What options do you have?
93
Labor Acquisition Options

Measures of Performance
Best Recruiting Pipelines?
REQUIRED
Options:
Re-allocate Current Employees
Hire Experience
Hire New People
Work Overtime
Resources
Hire Temporary Labor
Required
Outsource
Increase Productivity
Change the Process (Lean)
Increase Capacity (Automate)
CURRENT
94
Four Keys to On Boarding Success

1. Identify the best candidates for jobs
2. Select the best candidate; then teach them what you
expect from them and what they can expect from their
leader
3. Provide technical training to build self-confidence and
greater job proficiency as they grow (Career Path)
4. Leaders manage the process based upon predictive,
production-based systems and reliable data
95
Focus on New Employees
96
Building Pipelines
Adult
Education
Business Metrics:
Temp
Agencies
- Decrease Cost of Hiring

- Reduce Attrition (pre- and post- hiring)
- Reduce Hiring Cycle Time
- Improve New Hire Integration
- Improve New Hire Job Performance
- Decrease New Hire Time to Competency
Community
Colleges
Generate
Labor
Reqs
College
Transfers
High Schools
Tech Schools
Other
Companies
Orient,
Screen
&
Identify
Candidates
Interview
&
Assess
Skills
Common
Skills
Training
1st Job
Skills
Development
Current
Employees
State Employment
Offices
Increase Cost
Hiring
Decision
Decrease Cost
Military
97
Employee Acquisition
Create a New Hire Pull System
When Production needs people they create an order
Production demand cues the Employee Acquisition SYSTEM.
Reduce cost of Hiring by utilizing Subject Matter Experts to recruit,
identify, and evaluate the skills
of applicants.
Optimize the use of Government Provided Employee Services to
Outsource as much as possible.
Reduce hiring cycle time to improve responsiveness.
Reduce touch time to reduce cost.
98
Forecast
By Labor Category
Generate
Labor
Reqs
Minimum: ___
Maximum: ___
What is your Labor Forecast?

What is your capacity to on board new employees?
99
Example
Hiring Forecast and Schedule
Month
# Hires
July:
10
August: 5
Sept:
0
Oct:
10
Nov:
5
Dec:
0
Total:
30
100
Total Turnover Chart
101
Lean Enterprise Initiative

Continuous improvement in products and
processes to provide customers with
superior quality, value and speed.
(Cultural Change)
(Never Ending Journey)
(All Aspects of the Business)
102
Begin with the end in mind

Build more quality steel products faster to
improve market share and increase profit.
103
Lean Enterprise Goals
Improve Quality
Eliminate Waste
Reduce Lead Time
Reduce Total Costs
Through
Near real time visibility over
Process
Materials
Cost
Equipment
And
104
People
105
Concept of Operations
A Systems Engineering Approach
Phase 1
Current State &
Good Ideas
Phase 6 n
Continuous
Improvement
July 2005 Present
Phase 5
Production and
Roll Out
November 2004 June 2005
April June 2004
People
Powered
Lean
Phase 4
Pilot and
Evaluation
August October 2004
Phase 2
Future State Design,
Plan of Action with
Resources
June July 2004
Phase 3
Creation and
Development
July August 2004
106
Hiring Process
July 2004
Production
Identifies
Requirement
HR Posts
Requisition &
Sends to OET
HR
Receives
Applications
Welding Test
Hiring
Decision
Drug Screen
and
Physical
HR Admin
Inprocessing
8 Hours of
Video
OSHA Training
OJT
Training
HR
Schedules
Interviews
Production
Interviews
Offer Sent
Applicant
Given Report
Date
Cycle Time: 10.3 Weeks

Cost: $2,008 per new hire
(Labor costs only)
107
The Hiring Process

108
Hiring Process
August 2004
Production
Identifies
Requirement
HR Posts
Requisition &
Sends to OET
Interviews
Conducted;
Welding Test
Hiring
Decision
HR Admin
Inprocessing
Plant
Manager
Meeting
OET
Screening
HR
Receives
Applications
HR
Schedules
Interviews
Drug Screen
and
Physical
Offer;
New Hire
Packet Sent
Applicant
Given Report
Date
Process/
Quality
Training
Cell Training
Shift
Supervisor
OSHA Training
Structured Orientation and Training Process

Cycle Time: 5.8 Weeks - 43.7% reduction
Cost: $1,420 per new hire (Labor costs only) 29.3% reduction
109
Policy Statement
Our companys employees build to order, only
producing those buckets they have orders for.
Therefore, we must have the capability to acquire
employees quickly and move them between
assembly lines and departments to support
production needs.
A flexible workforce drives down credible delivery
time and improves our business performance.
110
Scenario Exercise
Recruit Profiles
111
Establish Candidate Profiles

Working at another company doing similar
work
Must have minimum Skills
At least 18 years old and eligible to work
in the United States
Proven Positive Work Habits
Willing to work at Flat Standard Starting
Rate of $14/hr. or $11/hr for training pay
Willing to work 2nd Shift only
(no 1st shift hires)
Reliable Transportation
112
Identify Recruiting Differentiators
Working Condition
Work Environment
My boss tells me what to do and then lets me do it.

Inside vs. Outside
Pay and Benefits

Workforce Stability
Shift Schedule
Free and convenient parking
Overtime Opportunities
113
Potential Pipelines
Adult Education
Employment Agencies
Military
Community Colleges
High School Graduates
Technical School Graduates
College Transfers
College Graduates
Other Companies
State and Local Agencies
Current Employees
114
Example
Pipeline Capacity Analysis
1. Community
Colleges
2. Adult
Education
Tidewater (50)
Paul D. Camp (15)
Adult Education (108 identified)
3. Other
Companies
(VEC)
4. Tech
Schools
Community Colleges (65 identified)
Norfolk Tech (12)

New Horizons (20)
Pruden (1)
Richmond Tech (75)
Local Companies Laying Off Workers (50 Identified)
Information from Virginia Employment Commission
Technical High Schools (56 identified)
New Horizons (20), Pruden (4), Norfolk Tech (10), Virginia

Beach (16), Chesapeake (6), Badger (0)
Total Identified as of 5/11/2005: 279
115
Example
Orientation and Screening
Orient,
Screen
&
Identify
Candidates
Conduct Initial Orientation by providing Realistic Job

Preview to each interested person.
Candidates passing minimal screening criteria are
provided applications.
Validates Pre-Requisite Experience as required and
provides copy of skills assessment/test.
Ensure application completion
Classifies Recruit
Provide Recruit with Hiring Process Information and
Tracking Sheet
116
Example
Candidate Classifications
1.
2.
3.
4.
5.
6.
7.
Hire Now: Exceeds All Criteria

Hire: Meets All Criteria
Near Hire: Will meet All Criteria within 30 days with
self-directed development
Far Hire: Will meet All Criteria within 120-180 days with
self-directed development
No Hire: Will not meet minimum criteria for at least 6
months
Best Athlete
Has unique skills outside of current Job Search
Requirements
117
Realistic Job Previews
Link to full RJP
118
Interview or Try Out

Goal: Create a situation where the employee and the
company can determine if the new employee has the skills
and attitudes to be successful.
Features:
1.
2.
3.
4.
5.
Plant Tour
Skills Assessment
Attitude Assessment
Hiring Decision
New Teammate Skills Development Plan
119
New Teammate Orientation

Goal: Create a world class first day.
New Teammate Leaves after first day thinking:
Wow! These guys really know what they are doing.

Ive talked to the Plant Manager and my Boss.
I understand what we do here and how I fit in.
I know the how to work safely. OSHA Training.
(Plant Focused)
I know what I need to do to be successful in this company.
I have a hard hat and a locker with my name on it.
I know I will get paid.
I know what I need to do tomorrow.
Lets go to work!
120
World Class 1st Day

Thursdays
9:30 AM: Arrive at Plant
Met by Production Manager
Turn HR New Hire Packet to HR Rep
Issued Locker with Name on it
Issued Helmet with Name on it
Digital Picture taken
Issued Equipment
Check Employee provided PPE
9:45 AM: Plant Tour and Safety Training with Production Manager
OSHA Safety Training Checklist Completed and placed in Employee Training File
11:45 AM: Meet Plant Manager
Lunch
Introduction to company and general information about the corporation, history, products, markets,
and facilities
Expose the new employee to Culture, Values, what the company does, how the company makes
money, and where the employee fits in the bigger picture
121
World Class 1st Day

Thursdays
1:00 PM: Quality Overview
Plant Tour with Quality Manager
General training on quality
Individual expectations, metrics, quality control, quality process
2:00 PM: Process Overview
Plant Tour with Continuous Improvement Manager;
Walks the Value Stream; Sees the Big Picture
Introduction to Lean Training.
Continuous Improvement Responsibilities
4:00 PM: Administrative Questions and Answers
Verification of In-processing with HR Manager
122
Value Stream Map to Tasks to Cell Map

Cells
Tasks
Lips
Assemble/ Tack
Lug and
Beam Welder
Weld 1
Weld 2
Weld 3
Fit Materials
Welding
Quality Assurance
Use a Ruler
Read Blueprint
Bevel
Operate Brake
Value Stream Map
Operate Saw
Operate Glibert
Operate Lathe
Burn Table
Operate T1
Operate T2
123
Common Skills Training

Goal: Using Subject Matter Experts to bring all new
Welders to competency on all Common Tasks
Feature: Welding Trainer creates Individual Training
Plan between interview and 1st training day.
Subject Areas:
Production Terms
Use a Ruler
Cranes Safety and Operations
Equipment/Tools Operations and Maintenance
Visual Inspection
OSHA (Job Focused)
Quality Assurance
124
Cell Training
Goal: Improve Time to Competency
Features:
Common Skills developed during Common Welding Training
Train just in time and just enough for 1st job requirements
Uses Team Leaders as trainers
30-60-90 Feedback to assess performance and update skills
development record
125
Management System
Goal: Develop Data Driven Systems to Manage the
Process
Features:
Monthly Reports and Management Meetings
Specific Metrics Reported:
Cycle Time (Responsiveness)

Touch Time (Cost)
In Process Flow
Turnover
Absenteeism
Measures Head Count to Production

Predictive Measures Focus
126
Focus on the Applicant

Interview and Test Schedule
Pre-schedule appointment times to reduce cycle time.
Understand you companys interview and test capacity.
Must support the Applicants Schedule NOT just making
things easy for the interviewers.
May require 2nd Shift/Weekend availability for interviews
and tests to support currently employed workers.
127
Example
Trainer implements the tailored Individual Development Plan developed at the Interview and
Skills Assessment.
Example Learner Based Training Lesson Outline:

1.
2.
3.
4.
5.
6.
7.
8.
Production Terms and Language

Use of Personal Protective Equipment (PPE)
Reading Measurements to the 1/16 Detail
Parts of a Weld and Weld Bead Placement
Weld Quality
Blueprints and Weld Symbols
Welding Equipment/Maintenance; Use of Cranes and Rigging
Quality Assurance
NOTE: A Web Based Platform so that New Hires can review and pre-train prior to Welding
Skills Interview or Training. Can also be used as a post hiring support tool.
128
Example
Cell Training
Goal: Seamlessly integrate new Hire into the production line and
reduce Time to Competency
Sequence List:
1.
2.
1st Job
Skills
Development
3.
4.
New Team Mate meets with 1st Line Supervisors/Cell Trainers

1st Line Supervisor uses Welder Skills Development Record to
develop Cell Training Program
Supervisors use 30-60-90 day Feedback System to assess
performance and update skills development record.
New Team Mate and 1st Line Supervisor conduct a Goal Alignment
session and agree on initial Career Path and Production Skills
Training Plan.
129
Management System
Goal: Develop Data Driven Systems to
Manage the Process
Features:
Monthly Reports and Management Meetings
Specific Metrics Reported:
Cycle Time (Responsiveness)

Touch Time (Cost)
In Process Flow
Turnover
Absenteeism
Measures Head Count to Production

Predictive Measures Focus
130
Applicant Flow
Dec. 12
97
+7
85
81
+4
65
59
+6
58
53
+5
Qualified (Less than 2 weeks)
17
17
Minimally Qualified (2-4 weeks)
26
22
+4
Unqualified (More than 4 weeks)
+1
Awaiting Weld Test Results (Bend)
# of Apps Received
# of Screened Candidates Scheduled for
Test/Interview
# Tested & Interviewed
Fully Qualified
Results
Delta
104
# Interested
Test
Nov. 7
Applicant Flow: Page 1 of 2
131
Applicant Flow
Dec. 12
Nov. 7
Delta
13
12
+1
# that Voluntarily Withdrew
# Awaiting Hiring Decision or Offer Pending
-1
# of Active Applicants
-1
34
31
+3
32
30
+2
+2
# Failed Interview
# Offered and Accepted Employment

# of Offers Declined or Rescinded
# Started
# Terminated
Applicant Flow: Page 2 of 2
132
Hiring Cycle Times

- All Cycle Times measured in Calendar Days -
Cycle Time Interval

Application Date to
Test/Interview Date
Days
18.55
Test /Interview Date to

Offer Date
5.05
Offer Date to
Acceptance
2.64
Acceptance to Start
Date
10.50
Total Application Date

to Start Date
42.41
Changes since last

Program Review
-1.96
133
Hiring Cycle Attrition

Hiring Cycle Phase
# Attrited
Pre-Application
19
App Date to Weld Test
21
Weld Test to Interview
Post-Interview
15
Drug Test
Offer Declined
Post-Hire (In-Training)
Total Hiring Cycle Attrition:
72 of 104 Candidates
134
Post-Hire Attrition Analysis

Name
Termination
Date
Termination Reason
Days on the Job

(Liebherr Work
Days)
7/25/2005
Discharged from Welding Training. Poor work habits

and slow progression given as primary reasons.
10
10/4/2005
Unable to complete the Welding School within 7

weeks. Work Ethic was great so we offered him
positions in Assembly/Paint. He refused to work on
2nd Shift and thus was dismissed.
44
8/26/2005
Discharged from Welding School. Dismissed for

cheating on his vertical Weld Test. Employee his
test plate flat after receiving warning.
15
8/8/2005
Discharged from Welding School. Poor work habits

and slow progression given as primary reasons.
11
10/10/2005
Unacceptable progress in Welding School and

unwillingness to brake old habits. Needs more
experience than our training can provide.
11
11/18/2005
Discharged for falsifying application with regards to

educational background (HS Graduation).
31
12/2/2005
Discharged for falsifying application with regards to

educational background (HS Graduation).
45
135
Successful Program Results

March 2004/July 2006
Labor Requirement to 1st Day (Lead Time):
10.3 weeks / 1 week
Cost per Hire:

$2,008 / $500
1st Year Attrition Rate:

59% / 6 %
Overall Attrition Rate reduced by 31%
Production Efficiency: Labor Hours/Bucket

29.42 / 23.98
136
Big Picture Goal

If you design and implement a good
On Boarding Program you will put
yourself out of the On Boarding
business
For all the right reasons!
137
Take a Blue Slip!

What data to you regularly receive during your
companys on boarding process?
What is one way you could change your
on boarding process today?
If you changed the process, how do you know
it would be better?
138
The Lie of Modern

Manufacturing
Simon Nance
Manager, Training and Development
STIHL
Virginia Beach, Virginia
139
Lunch
and
Networking
140
Production Skills Development

Building the Depth Chart
How to
Increase Productivity,
Control Head Count,
and Improve Capacity
141
Or
If you have $1 dollar to spend
Hire a new employee.
Invest in your current high
potential employee.
142
To answer this question

If after my first 12 weeks on the job; I am the
best person you have ever hired tell me
the story of the next 12 years of my life
143
The Depth Chart

Visual Employee Management Tool
Employee Name and Picture

Skills they have demonstrated
Cell they are assigned to and qualified to work in.
Cell they are cross-trained in (Self Motivated Training)
Backed up by Web-Based Tracking System
144
145
Total Distribution by Job Title

38 Labor Categories
146
Maintenance Support (Cont.)

PAINT, FABRIC & UPHOL
MECH
Labor Categories
513
QDR TECH
10
RECORDS SPEC
47
SERVICE ATTENDANT
33
Aircraft Mechanic
1367
Maintenance Support
A/C MECHANIC
1367
A/C COMPONENT PLATER
A/C REFININSHING SPEC
20
TECH PUBS TECH
14
12
TEST CELL TECH
WEIGHT AND BALANCE TECH
4
1
Avionics/ Electronics
441
A/C SCHEDULER
AAE&I TECH
192
A/C WELDER
AE&I MECH
249
AMSS ACFT ENG SHOP

MECH
25
X RAY TECH
AMSS ACFT HYD SHOP

MECH
10
Other Support
137
A/C MONITOR
17
Sheet Metal
114
A/C STRUC MECH
114
AVIATION LIFE SUPPORT

EQUIP TECH
37
Armament
85
COMPONENT CLEANER
A/C ARMAMENT TECH
85
ELECTRONIC INSTRUMENT
TECH
FABRIC AND UPHOLSTERY

TECH
Technical Inspection
A/C TECHNICAL/ NDT
INSPEC
213
213
Test Pilot
89
MAINT TEST PILOT
89
ACCOUNTING SPEC
ADMIN SPEC
21
COMPUTER OPERATOR
F AND M SPECIALIST
30
FLIGHT OPS SPEC
MACHINIST
13
JANITOR
MATERIAL CLERK
34
MESSENGER
PERSONNEL SPEC
PLANT AND FACILITIES

MECH
MATERIAL INSPECTOR
MATERIAL SPECIALIST
166
P/C SPEC - ATTC

P/C CLERK
2
58
PROGRAMMER
35
147
Skill Paths
1.
2.
3.
4.
5.
6.
7.
Aircraft Mechanic
Avionics/Electronics
Sheet Metal
Armament Mechanic
Technical Inspection
Test Pilot
Maintenance Support
a.
b.
c.
d.
8.
42 Labor Categories
8 Skill Paths
AMSS (Hydraulics, Machinist, etc.)

Specialized Mechanics
Records Clerks/Production Control
Supply and Logistics
Other Support
a.
b.
c.
d.
e.
f.
g.
Human Resources
Information Technology
Finance
Administration
Environment Health and Services
Training
Facility Support (Monitors, Service Attendants, Janitors)
148
Training Management System

Allow Supervisors to get a real-time oversight of the
training status of each of their workers.
Coordinated effort between IT, HR, the Training Staff,
and Production Leaders.
The goal is to create a system where all the training
and job experience of each employee is retained and
accessible to Supervisors and Managers for better
job matching.
149
Life Cycle Skills

Development Program
Leader
Development
Training
Complex
Tasks
Pre-Employment
Employment
Skills
Management
Skills
Leader
Skills
Training
V
Basic
Skills
Intermediate
Skills
Mentor
Skills
Advanced
Skills
IV
Initial
Entry
Skills
Training
Basic
Training
Practical
Application/
Coaching
Evaluation
Skills
Evaluation
A Guide
Intermediate
Training
II
Practical
Application/
Coaching
Evaluation
Soft Skills
Development
Advanced
Training
III
Practical
Application/
Coaching
Evaluation
Experienced Personnel
I
Competency Level
Employee Career
150
Right Person/Right Job

Move the Employee in the Right Direction
Quantity of Work
Go To Person
High Quantity
Low Quality
High Quantity
High Quality
Low Quantity
Low Quality
Low Quantity
High Quality
New Person
Quality of Work
151
What is our plan to move our people along the correct developmental path?
Strategic Objectives
1. Training is NOT about INDIVIDUAL CHOICE. We Care!
2. Job Performance and Training are Seamless
3. Train on the Same Equipment, with the Same People,
Under the Same Conditions, to the Same Standard on the
Job Site
4. Reduce Time and Effort Between Subject Matter Experts
and Users
5. Get the Most Value from Training/Education Dollars
6. People drive Skills Based Requirements
You can be perfectly trained and absolutely unproductive!
152
People Focused Training

1. Every employee is on a Career Path
2. The Career Path is agreed to by the employee and the supervisor
based upon needs of the company, the potential of the individual
and the employee desires and aspirations
3. The Career Path drives skills required:
a. To Meet required training, certifications, licensing for current job.

b. To Improve Productivity on Current Job
c. To Meet minimum competency level for Future Job
d. To provide for Employee Driven Self-Development Training and Education
4. Training does not exist unless a Manager creates an order

5. The Manager then selects the most appropriate delivery method
based upon their specific operational circumstance.
6. The Training is delivered via the most resource efficient and
effective method.
7. The Training is evaluated and recorded
8. The Employees Skills Record and Career Path Map is updated.
153
Goal Alignment System

Led
Led
Led
Led
Leader
Communication
Goal
Alignment
Awareness
Performance Reviews
Cost
Schedule
Quality
Safety
Individual
Individual
Development
Individual
Development
Development
Plans
Plans
Plans
Resources
Required
Individual Goals
Compensation
Opportunities
Responsibility
Work
Environment
Recognition
154
Developmental Plans
Everyone has them!
Consider education, experience, training
Aligns Team Mate potential with organizational needs
Focused on the Mission Essential Tasks derived directly from
the Value Stream Map
Provides measurable outcomes to monitor individual
progress.
Are the White Space between Performance Reviews
Drive Training and Development budgeting and resources
requirements based upon People NOT Program Focus
155
On Boarding
Hiring
Skill Paths
1. Mechanic
2. Assembly
3.Sheet Metal
4. Material Handler
5.Technical Inspection
6. Maintenance
7. Production Control
Training Program
Overview
Employee Skill Path

Common Skills
Training
What every employee
needs to know
Cell
Training
Skills to do 1st Job
Intermediate Skills
Training
Skills to do second and
third job
Lead/Advanced
Skills Training
Skills to Teach Others
the Job
Master Mechanic
Mentor
Tech Specialist
156
Production Skills
Training Guidelines
Leaders are responsible for the training of their subordinates.
Training programs must be based on the tempo of
operations and the resources available to train.
The majority of the training must occur on the job in
conjunction with production work.
Lengthy training events that take the employee away from
the worksite cannot be considered.
Movement from Process to Process must be closely
monitored and linked to Skill Path tracking. A Skills inventory
must accompany each transfer just like a tool box.
There must be a clear articulation of what skills the employee
has when the transfer is made.
157
Effort vs. Competency in Learning

I know skill:
Exchange of Information
I can do skill:
Performance based Instruction
Skills transfer
Subject Matter Experts observe and
validate competency
I can adopt and apply skill:

The actual performance requirement
Linked to Skills Based Performance Assessments
158
Skills Transfer
Subject Matter Experts
Standardized Work
Those Who Have

the Information
Training
System
Training
Audience
Those Who Need
the Information
159
Common Training
Skills required by every person regardless of Process
May be hiring pre-requisites
A Skills Demonstration Checklist validates performance
prior to arrival in production area
1st Line Supervisor verifies
160
Basic Skills Training
Those Baseline Skills required by the specific process or

production area
Trainer creates Individual Training Plan between interview
skills assessment and during Common Training
Train just in time and just enough for 1st job requirements
Use Production Subject Matter Experts as trainers
30-60-90 Feedback to assess performance and update
skills development record
161
Basic Skills Training Outline

Cell Specific Terms
Cell Specific Procedures and Job Instructions
Material Handling Equipment Safety and
Operations
Tools Operations and Maintenance
OSHA (Job Focused)
Lean for Hourly Workers; Identifying Waste and
Quality Assurance
162
Intermediate Training
Training to develop Competency.

Focused on creating agile workforce
Training based on normal workplace opportunities
Under the direction of the 1st Line Supervisor who is
Recognizing Teachable Moments
1st Line Supervisor recording increased skills proficiency
by process.
163
Advanced Training
Training to develop Masters
Training based on normal workplace
opportunities and focused coaching events
Under the direction of the current Master
1st Line Supervisor recording increased skills
proficiency by process
Requires movement across processes
164
Strategic Goal
If I only have one guy

show up for work I want
to be able to build an
entire bucket
Dick Dale
Operations Manager
165
Churn
Sucking Cost Invisibly!
166
Churn
Definition: Percentage of Workforce scheduled to work that
day are present to perform the work in the assigned
areas.
Scheduled: The reaction time to prepare on On Boarding
Plan to accelerate the transition time to competency of new
teammate. Usually caused by external churn factors;
Promotion, Transfer, Expansion, or Downsizing Initiatives
Unscheduled: The Leaders confidence level that the
teammates they planned to work that day actually showed up
to work. Usually caused by internal churn factors; sickness,
vacation, and absenteeism.
Unmanaged Churn Reduces Trust!
167
Causes
Individual Induced:
Sick
Appointment
Work Schedule
Lifestyle
Apathy
Vacation
Dont Like My Boss
Looking for New Job
Family Crisis
Organization Induced:
Promoted
Re-assigned
Training
Personnel Policies
Required Meetings
Additional Duties
Business Travel
Process Changes
Transferred
168
Churn
Good News - Bad News
Bad News:
Reactively; Taken Individually or One at a Time

Crisis of the Day approach
Just get through
Do No Harm is measure of success
Good News:
Proactively; Taken Systematically

Opportunity to Change Culture
Increases Informal Communication Networks
Builds Trust
Every Churn is a Developmental Opportunity
Lean Training Opportunity: Understanding the Value Stream both
Horizontally and Vertically.
169
Transition Acceleration
Current Job
Time
Quality
Level of Effort
Future Job
Current State:
How long from assignment to competency?
170
Leading and Lagging Indicators

Leading:
Scheduled vs. Unscheduled Churn Data
Benchstrength Depth
Engagement Levels
Lagging:
Cost, Schedule, Quality, Safety
Workforce Attrition
Increased Absenteeism
171
Churn Impact
Do the Math!
Increased Cost
Behind Schedule
Reduced Quality
Increased Safety Risk/Incidents
Increased Leader Job Redundancy
Decreases Confidence in Senior Leadership
172
Churn Happens!
Churn Impact Reduction Strategy
Every Teammate who is not performing their normal work in their
normal area requires an On Boarding event.
On Boarding:
Start: Identifying Churn
Stop: Teammate Competent in New Job
Metric: Time to Competency
Best Case: Minutes
Worst Case: Never
173
Early Interventions
Better Job Matching

Leverage Developmental Opportunities
Increase reaction time where possible
Understand Churn caused internally and
externally
Information System informed Depth Chart
174
Scheduled Churn
Pipelines
Work Overtime
Dual Task
Assign from within the same Process
Assign from within the Company
Temp Labor
Key Questions:
What is the Volume of each Pipeline?

What is the Lead Time of each Pipeline?
What is the organizational Cause and Effect?
175
Each Pipeline has a different

Mean Lead Time
Considerations:
Expected Competency Level
Distribution of Labor within organization
Expected assignment of new employees
Work Area Complexity
Availability of High Performers as resources during
On-Boarding period
Match-Up with Leader
176
Working the Sums

Ramp Up Schedule by Area
Future State Requirement (Available)
Baseline Current State

Current State (Available)
Pipeline Volume
How many in each pipeline? (Available)
Define Expected Competency Level at First Hour

Time and Resources Required Pre-Assignment
Define On-Boarding Plan

Focus in reduce Time to Competency
177
Leader Churn
Definition: Percentage of Leaders assigned to work that
day are present to perform the work in the assigned
areas.
Scheduled: The reaction time to prepare on On Boarding
Plan to accelerate the transition time to competency of new
leaders. Usually caused by external churn factors;
Promotion, Transfer, Expansion, or Downsizing Initiatives
Unscheduled: The Leaders Leader confidence level that
the Leaders they planned to work that day actually showed
up to work. Usually caused by internal churn factors;
sickness, vacation, and absenteeism.
Unmanaged Leader Churn Reduces Trust! 180
Early Interventions
Better Leader Job Matching

Leverage Developmental Opportunities
Increase reaction time where possible
Understand Churn caused internally and
externally
Information System informed Depth Chart
181
The Leader Development Challenge

Playing to Win!
182
If People are Hard!

Leaders are Harder!!
Everyone is at a different place developmentally
Everyone must take responsibility for their own Development;

It is a High Performance Behavior
Everyone will not always meet our standards
We must set behaviorally defined high standards
Create a Top Down Culture of continuous improvement

and communications
Bell Curves are unacceptable
183
Leading Indicators
1st Line Supervisors:
Responsible for producing Customer Value
Are held accountable for production requirements
derived directly from the Value Stream
They are responsible for getting 8 for 8 from the
hourly workforce
Usually in their first leadership position
Work all three shifts
Blending of technical and people skills is required
Performance is directly related to their Managers
ability to lead them.
184
Agenda
The Theory
Improving Current Leader Performance
Building Future Leaders
185
The Leading Indicator of Future

the strength of the Leader to Led Linkage.
186
The Gallup Path to Business Success

Real Profit
Increase
Stock
Increase
Sustainable
Growth
Business Success
Measures:
- Productivity,
- Profitability,
- Employee Retention
- Customer Satisfaction
People
Enter
Here
Identify
Individual
Strengths
Engaged
Customers
In-Group/Engaged
Employees
Great
Leaders
The
Right Fit
187

25% of the working population are ignored by their
supervisor
Actively Disengaged: 40% of them are in their workplace
58% are Not Engaged
2% are Engaged
Source: Gallup
188
Core Business Data Element

Project Plans
and
Labor Estimates
Leader
Assigning
Charge #s &
Approving
Time
Assigning Work to Crew in Discrete Increments and

Measuring Goal Accomplishment
189
The 1st Line Supervisor Challenge

Orders
Success = Orders Completed within Cost, on Schedule,

Safely, with no Re-Work
Materials
1st Line
Supervisor
Products
Machines
People
1st Line Supervisors Provide:

Clear Goal Definition derived from Work Packages or Orders
Materials and Equipment to accomplish the task
People with the Right Qualifications and Skills
Leadership: Planning, Organizational Energy and Momentum
190
The Rubber Meets the Road

Equipment
and Tools
New Folks
Work
Packages/
Orders
Success = Orders Completed within Cost,

on Schedule, Safely, with no Re-Work
Go To
Operators
Products
Materials
Machines
Training
and
Qualifications
191
1st Line Supervisor Challenge

Create an situation for the Go To Operators to be successful by ensuring all factors
are present at the same time or.THEY BECOME PROBLEM SOLVERS
Equipment
and Tools
Work
Packages/
Orders
New Guys
1st Line Supervisor =
PROBLEM
SOLVERS
Go To
Operators
Materials
Machines
Products
Success = Orders Completed within

Cost, on Schedule, Safely, with no Re-Work
Training
and
Qualifications
192

Leader
Communication
Goal
Alignment
Led
Led
Led
Led
Awareness
Performance Reviews
Cost
Schedule
Quality
Safety
Individual
Individual
Development
Individual
Development
Development
Plans
Plans
Plans
Resources
Required
Individual Goals
Compensation
Opportunities
Responsibility
Work
Environment
Recognition
193
Gallup Path to Business Success

Real Profit
Increase
Stock
Increase
Sustainable
Growth
Business Success
Measures:
- Productivity,
- Profitability,
- Employee Retention
- Customer Satisfaction
People
Enter
Here
Identify
Individual
Strengths
Engaged
Customers
Engaged
Employees
The
Right Fit
Great
Leaders
194
Employee Ownership
Requires Trust
Leaders will provide:
Clear direction
Appropriate Resources
Expert Advice
Feedback and
Coaching
Growth Opportunities
Reward and Praise
Fair Treatment
Led will:
Treat the company like
their own
Hold each other
accountable for doing
the right thing
Give early warning of
problems
Have the courage to
ask questions
195
Leader is a BIG Word
GM
OM
1S
SS
SS
1S
1S
GT
MU
NE
OM
SS
GT
NE
OM
GM: General Manager
GT: Go To Employee
E: Employee
NE: New Employee
Based Upon a Total Operational Headcount of 3060
10
30
60
160
100
500
1600
600
196

Perfect State
Current State
Leader Development conducted

informally or not at all.
Usually best operators promoted to
Supervisors
Experience gained over time
Many training courses available but
not mapped to critical tasks.
Undocumented program that is
dependent on individual Management
On the Job Training is ad hoc with few
Training Materials available on the Job
Site.
Systematic Approach to Leader

Development
Managers are the Primary Trainers
with the right tools kit to develop their
Supervisors
Managers are responsible to tailor skill
development to each individual
Supervisor and each operational area.
New Supervisors are methodically
created so their First day is a High
Performance Day top reduce time to
competency
Leader Development Programs
synchronized and integrated directly
with the Performance Review System
197
Behavior Focus
Skills and Attitudes are extremely difficult to
describe, measure, or observe.
Behaviors are observable actions that can be
replicated.
We KNOW how the Best Performers Behave!
Behaviors change Leads Culture change!
198
Defining the Current State

1.
2.
3.
4.
5.
6.
7.
8.
9.
Go find the High Performers

Find out what they do and dont do everyday
Write it down
Agree on the Mission Essential Task List and High
Performance Behaviors
Ensure Alignment with Business Goals and Value Stream
Compare all the Leaders behaviors to the High Performer
behaviors
Managers and Supervisors Conduct Goal Alignment Sessions
to validate current behaviors and identify improvement areas.
Analyze to define, defend, and distribute Performance
Improvement resources
All Leaders Continuously Improving Systematically
199
Scenario Exercise
200
Observable Behavior
Example
Technically Competent:
High: 9/10 times when asked a question gives the
right answer immediately and work continues.
Developmental: 5/10 times gives the right answer
and tells the person they will get back with them with
the right answer causing waste.
Dysfunctional: Gives the person the wrong answer
causing positive harm to the organization.
201
Tell me about the best 1st Line

Supervisor you know
Take a Blue Slip
202
High Performer
1st Line Supervisor
Mission Essential Tasks
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
See Hand Out
Demonstrates Leadership
Understands Manufacturing Process
Seeks Continuous Improvement
Plans Work
Communicates up the Chain
Communicates to Subordinates
Builds Teams
Technically Competent
Uses Technology
Develops Crew
203
Develops Subordinates
Recognizes Teachable moments: Constantly stopping and

talking to subordinates with tips and best practices
When asks who is responsible for the training of their
people says Me!
Realizes the best training occurs on the job when highly
skilled people work with less skilled people: Matches
novices with experts by design
Uses normal work flow as training opportunities
Has scheduled and record of formal counseling/feedback
sessions with subordinates outside of normal job interface
Knows the Leadership Pipeline - their replacement; future
leaders
204
Designing Leader Development Systems

Senior Leader Guidance
Managers are the Primary Supervisor Trainers, Assessors, and

Developers
Focuses on single value-added behaviors, techniques and
procedures key to each Supervisors Success
Events will occur on the job site (If any, classroom should be
reserved for only the most high value requirements)
Focus will be to provide Managers with tools to more effectively
train Supervisors (Performance Support System)
Focus on sharing High Performer Best Practices with others
Ensure we get feedback directly from the Supervisors
We are ALL about helping our leaders be better at their work
205

Leader
Communication
Goal
Alignment
Led
Led
Led
Led
Awareness
Performance Reviews
Cost
Schedule
Quality
Safety
Individual
Individual
Development
Individual
Development
Development
Plans
Plans
Plans
Resources
Required
Individual Goals
Compensation
Opportunities
Responsibility
Work
Environment
Recognition
206
Developmental Plans
Everyone has them!
Consider education, experience, training
Aligns Leader potential with organizational needs
Focus on the High Performer Mission Essential Task List
Provide measurable outcomes to monitor individual
progress.
Are the White Space between Performance Reviews
Drive Training and Development budgeting and resources
requirements based upon People NOT Program Focus
207
Program Objective
Move Employee to the Left
HIGH:
All Leaders should be
High Performing and
displaying the behavior
traits in this column.
Developmental Plan to
focus on sustaining
performance
DEVELOPMENTAL
Leaders displaying the
behavior traits in this
column should be
involved in a defined
developmental plan.
Focus on moving them
to the left
DYSFUNCTIONAL
All Managers displaying
the behavior traits in this
column are creating
harm in the organization.
Behavior needs to be
changed ASAP or the
manager needs to leave.
Task
Technical
Competence
When asked a question are able

to give the correct answer 90%
allowing work to continue
When asked a question answer

correctly 50% and will get the right
answer to the person as soon as
possible. Still causes work slow
down
Ignore, guess or give the wrong

answer to get rid of the questioner.
208
Supervisor
Developmental
Strategy Matrix
Initial Assessment
Does Not
Know How to
do the Task
Knows How
to do the task
needs On
the Job Help
Knows the
Job but has
trouble
putting it all
Together
Knows their
area but
needs to
Understand
entire Value
Stream
Send to
Established
Training Course
Task Coach
High Performing
Supervisor/
Manager
Task Coach
High Performing
Support Staff
Reassessment
Spend the Day

with High
Performing
Supervisor at
their Job Site
ID Developmental
Positions either
up or down
stream
ID Support
Shadowing
Opportunity
209
Building the Tool Kit

Developmental
Assignments
Customized
Courses
Goal
Alignment
Session
Access
Procedures,
Manuals,
References
Independent
Study
Mission
Essential
Task
Commercial Off
The Shelf
Courses
Scenarios
Low Cost
Coaches
On the Job
EPSMs
Subject
Matter
Experts
Tips and
Best
Practices
Medium Cost
High Cost
210
** Electronic Performance Support Modules
Managers
or
First Line Supervisor
Who is First?
Get the Managers on the right
page first, then have them
develop the First Line Supervisors
211
Building Future Leaders

Developing Bench Strength
212
Leader Churn
213
2nd Squadron 4th Cavalry

Squadron Staff - March 22, 1991
214
2nd Squadron 4th Cavalry

Squadron Staff - January 1, 1991
215
Foreman Scheduled Churn

Overview
Sep 2003: 69 Foreman
Aug 2004: 61 Foreman
8 Foreman rated in 2003 but not in 2004 (Transferred, Promoted, Demoted, Retired)
8 Foremen rated in 2004 but not in 2003 (New)
16/61 = 26% Churn Rate
Jun 2005: 45 Foreman

15 Foremen rated in 2004 but not in 2005 (Transferred, Promoted, Demoted, Retired)
1 Foremen rated in 2005 but not in 2004 (New)
16/45 = 35% Leader Churn Rate
Jan 2006: 33 Foreman

14 Foremen rated in 2005 but not in 2006 (Transferred, Promoted, Demoted, Retired)
4 Foremen rated in Jan 2006 but not in 2005 (New or returned from on loan)
18/33 = 54% Leader Churn Rate
216
Foreman Internal
(Unscheduled)
Churn Data
Total Foreman
# of General Foreman Changes
# of Area Changes
Both General Foreman & Area
= 33
= 19 (58%)
= 9 (27%)
= 7 (21%)
217
Why Dream Teams Fail

Lack of Trust
How do you build Trust?
Do what you say you are going to do

See the Big Picture
Continuous Goal Alignment
Communication
By playing the GameOperations
Paradox: Trust by Nature Builds Slowly

We dont have the time!
218
Transition Acceleration
Current Job
Time
Quality
Level of Effort
Future Job
Current State:
How long from assignment to competency?
219
Leader Lead Time

Example Goal: Ensure Leaders come to
competency with 4 weeks of 1st Day on the Job.
Factors:
Hiring Cycle Time: Job Requisition to 1st Day

Skills Requirements
Minimum Training Requirement
Coach/Mentor Availability
Hourly Labor Hiring
Job Flow/Production Schedule
Team Dynamics
220
Working the Blue Lines

Operations Manager
Current Shift Supervisor Future Operations Manager
Current Shift Supervisor Current Job
Current 1st Line Supervisor Future Shift Supervisor
Current 1st Line Supervisor Current Job
Current Go To Operator Future 1st Line Supervisor
221
Leadership Pipelines
1.
2.
3.
4.
Former Leaders
Transfers with Area Experience
Transfers without Area Experience
Pre-identified Emerging Potential Leaders
(Succession Plan)
5. High Performing Mechanics/Employees
6. Product of the Hiring Process (Announcing
Position, etc.)
Each Pipeline has a different mean Lead Time
222
Developmental Phases
1.
2.
Do the right things

Do the right things right
3.
4.
Do the right things better, faster and more effectively

Are we doing the right things? Re-defining the right
things
Prepare for next career path position
5.
} Prior to 1
st
Day on Job
It is our Choice on when to place the New Leaders 1st Work

Day
223
New Leader On Boarding Program

OVERVIEW
Bull Pen
Warm Up
I Know
I Can Do
START: Individual
Development Plan
Required Common
Training Courses
Designated Training
Courses depending
on assignment
Orientation to AOR
Work with High
Performer NOT in
assigned area
Throwing Ks
I Can Apply
Assigned to Manager
Coach performs 1st Skill
Assessment
Orientation to Work Flow
in 1st 30 days
Orientation to Job Site
and Support Activities
(PC, Planning, etc.)
Rehearses 1st Day and
Chalk Talks 1st Week with
Manager and Coach
Competency
Check
Gaining Manager Involvement
Competency
Check
KEY EVENT:
Leader First Day with
Crew in Charge!
90 Day Coaching Event
30-60-90 Day Skills
Assessment (Coach,
Self, Manager)
Integrated with
Performance Review
Process
Normal
Developmental
Process
224
Scenario Exercise
A Leaders Perfect 1st Day
225
Foreman Warm Up Scenario

Scripting a High Performance
First Day on the Job
First Day is a Performance Day not a lets see
how it goes day
226
1st Day Preparation Warm Up

1. Task: Plan Work Conduct an analysis of the current jobs; current checkbook and
schedule status; and who is working the jobs;
Warm Up Event: Works with Coach to catch the bubble, develops Work Plan, develop Hot Jobs
List
Supporting Tasks: Understand Work Packages, Network with Key Players, Technically Competent
1st Day Event: Issue Job Assignment for each mechanic at Start Up.
2. Task: Lead by Example Conduct 1st Day Start up Briefing with Crew; communicate
personal style, establish ground rules, and goals.
Warm Up Event: Prepares first day speech and rehearses it with the Coach.
Supporting Tasks: Live the Values of the Company; Demonstrate Ownership of Work (Quality),
Understand Union Contract, Gives Clear Direction to Subordinates.
1st Day Event: Give 10 minute Start Up Briefing to entire crew.
3. Task: Job Assignment (Match Jobs to People) Conduct 1 on 1 assignment sessions

with every mechanic on crew
Warm Up Event: Coach creates role playing scenario with own crew and rehearses/observes 1 on
1 session and provides feedback.
Supporting Tasks: Crew Development and Performance and Set Expectations and Provide
Feedback (Pulls available personnel data and personal background information on entire crew prior
to first day.)
1st Day Event: Interact 1 on 1 with every mechanic on crew during first day to Assign Jobs, Set
Expectations and Provide Feedback.
227

4.
Task: Network with Key Players Interface with Planning and PC
5.
Warm Up Event: Coordinates/pre-briefs 1st Week Work Plan with Planning and PC under the
direction of the Coach.
Supporting Tasks: Innovate, Understand Work Packages, Communicate Laterally, Network with Key
Players, Technically Competent, Understand the Manufacturing Process
1st Day Event: Before end of 1st Day update Key Players on Hot Jobs List
Task: Communicate Up the Chain Pre-Brief Supervisor prior to 1st Day and Out-Brief at
end of day.
6.
Warm Up Event: Meet with Supervisor to receive Supervisor guidance and direction with Coach.
Conduct and analysis and back-brief Supervisor on 1 st Day Plan.
Supporting Tasks: None
1st Day Event: At end of first day report progress to Supervisor.
Task: Administer Time and Accounting System Pay crew
7.
Warm Up Event: Pay Coaches Crew

Supporting Tasks: Use the Computer
1st Day Event: Successfully Pay Crew
Task: Job Assignment and Give Clear Directions to Subordinates, Setting Expectations
Warm Up Event: Complete focused Training and practice preparing Job Assignment Sheets
Supporting Tasks: Give Clear Directions to Subordinates
1st Day Event: Issue Job Assignments and have a face-to-face conversation at the job about setting
goals and stretch goals.
228

8.
Task: Understands How to Train
Warm Up Event: Work with expert Coach on how to identifying teachable moments within the
crew and understanding how to coach his/her crew to improve individual and crew performance
Supporting Tasks: Crew Development and Performance
1st Day Event: Within 1st week conduct a goal alignment session with each hourly and then
prepare an individual training plan.
9.
Task: Crew Development and Performance Preview/Prepare Hourly Annual

Performance Feedback Form
Warm Up Event: MPL/Foreman will go over the Hourly Performance Feedback Form
Supporting Tasks: Lead By Example, Network With Key Players, MOS Feedback
Prior to first day Foreman will contact SER and review employees attendance record
1st Day Event: Within 1st Week go over the Hourly Performance Feedback form
individually with each employee and discuss expectations
10.
Task: Adhere to the Spirit and Intent of Union Contracts
Warm Up Event: Review Union Contract Articles with Coach or MPL

Supporting Task: Lead by Example
1st Day Event: N/A
229

Task: Demonstrate Technical Competence
11.
12.
Warm Up Event: Review Leader Playbook

Supporting Task: Refer to and Explain Procedures, Interpret Work Packages,
Interpret and Explain Drawings
1st Day Event: N/A
Task: Innovate: Understand the Value Stream
Warm Up Event: Walk the Value Stream, Meet other Foreman in Area and visit
like work centers. Review the Performance Improvement Process
Supporting Task: Network with Key Players, Communicate Laterally, Integrate
Job into Shipbuilding Process
First Day Event: N/A
230
Performance Improvement Plan

Candidate Name:
Current Position:
Task
Plan Developed By:

Reviewed By:
Bull Pen
Warm
Up
The Heat K
Coaching:
- Spend time with teachable

moment expert as he/she points
out opportunities
- Walk area, identify teachable

moments and take action
- Analyze teachable moments to

determine if systemic issues exist
- Share lessons learned with all

crews and other MPLs
- LDP primer
Training / Event
Remarks
Recognizes
Teachable Moments
During the normal

course of daily
activities recognizes
Teachable Moments
and takes advantage
of them.
Uses data to inform
and update internal
capabilities and
limitations map.
Sets conditions to
make training
important on the job.
Realizes the best
training occurs on the
job when highly skilled
people work with less
skilled people
231
Break
232
Building Lean Leaders
233
Hypothesis
If we transform our current Leaders into Lean
Leaders with new responsibilities and behaviors;
we will eliminate waste and improve business
performance measured in line of sight savings.
Outcome Metric:
WASTE Identification and Elimination
Process Metric:
Improving Leader Behaviors
234
1st Line Supervisors

We have Leaders who are busier than ever but
dont seem to be making any progress.
Expected Outcomes:
Increase our leader's ability to solve more day-to-day
problems correctly the first time.
Increasing our capacity to identify and eliminate Day-to-Day
Waste.
Increasing our capability to identify and eliminate Systemic
Waste to reduce the number of day-to-day problems.
Aligning our command, control, and communications
structure from General Manager to 1st Line Supervisor to
clearly define "line of sight" accountability, responsibility, and
authority.
235
Common Current State Issues

Operational Responsibilities have exploded yet no clear
articulation of those roles and responsibilities
Leaders cant see the process through the data haze
Lots of stick if you mess up the data; very little carrot to
be out in the patch
Cultural bias for solving todays problems right now not
necessarily in priority order based upon biggest bang.
5 Year Old Soccer Crisis Management Culture creating
waste in the Leadership Bandwidth
236
Saying or Doing Leaders

ACTIVITIES
RESULTS
I called the customer.
I made the sale.
I did the research, I wrote the report.
I got the grant.
I took the class.

effective
I learned how to give an

presentation.
I stayed on my diet.
I lost 13 pounds.
I tried.
Do or not do; there is no try.

-Master Yoda

and Rebecca Merrill
237
What Triggers Cultural Change?

changed Behaviors!
Target Leader Training:
Stop Doing a bunch of things not adding value
Start doing new things to add value
Senior Leader Training:

Setting the conditions for Target Leaders to succeed
Not forcing non-value added behaviors
Coaching to attain high performance

238
The Elephant
Systemic Culture Change
Operations
Manager
1st Line
Supervisor
2007
Senior
Executives
Shift
Supervisor
Support
Leaders
2008 ?
2009 ?
2010 ?
2011 ?
239
1st Line Supervisor Commitment

Win-Win Terms
If the Senior Leaders support the changes
to become Lean Leaders then
I will change my behavior to reflect the Lean
Leader Behaviors taught to me in the Training
Program
I will identify and eliminate waste in my area
of responsibility
I will improve my business performance
240
Senior Leader Commitment

Win-Win Terms
If the 1st Line Supervisors change their
behaviors to become Lean Leaders then
The Seniors will create a better condition for the 1 st
Line Supervisor by also identifying and eliminating
waste from their position in the organization.
The Seniors will present their proposal for the 1st Line
Supervisors for their approval.
Once approved the Seniors will report out to the 1st
Line Supervisors on the same program management.
241
End State
Increased Trust between the Leader and
the Led
Increased Trust, increases SPEED and
decreases COST!
242
Lean Leader
Mission Essential Tasks
1.
2.
3.
4.
5.
Knows their Process

Knows their Customers and Suppliers (SIPOC)
Identifies Day to Day and Systemic Waste
Prioritization
Eliminates Waste & Improves Business
Performance
6. Engages Team Mates
243
Creating the Lean Leaders

System
Senior Leader Involvement
Whats Different
Development
Training
Structured
Gemba
Structured Coaching
244
Training and Gemba Outline

Tell Me
Show Me
Training
What do I need to Change?

Examples:
SIPOC out of Desk Drawer on onto Desk Top

Creating a Stable Process
Knowing how to Identify waste
Attacking waste in Priority order
Tools required to make the Change
Structured
Gemba
How do I make the Change?
10 Meter Circle with Lean Sensei and Leader

Structured Scenario
Model the Behaviors
Defined Outcomes for each Attribute
Ensure the Leader can use the tools

Link the Outcomes of each session to follow on sessions build the correct
mind map
245
Senior Leader Involvement Structure

Define
Whats
Different
Whats Different
Development
Vet the
Training and
Gemba
Walk the
Gemba
Walk the
Gemba
Training
Walk the
Gemba
Structured
Gemba
Senior Leader
Level Waste
Identification
Training
Walk the
Gemba
Structured
Gemba
Senior Leader
Level Waste
Identification
and Elimination
Training
Structured
Gemba
Senior Leader
Level Waste
Identification
and Elimination
Goal: Build the Trust

Contracts between Senior Leaders and
Process Supervisors
You work your lane and I will support you by
doing the same in mine
Training
Structured
Gemba
Senior Leader
Level Waste
Identification
and Elimination
Structured Coaching
Senior Leader
Level Waste
Elimination
246
Coaching Structure
Training
Structured
Gemba
Training
Waste Elimination and

Data Collection
Structured
Gemba
Training
Structured
Gemba
Training
Structured
Gemba
Coaching
(Steps 1 - 4)
Goal
Alignment
Session
Coaching
Matching/LineUp and
Resource
Session
Line-Up and
Resource
Review
Approval
Coaching
Group Kick
Off Meeting
Coaching
(Steps 5 7)
Individual Coaching
Event Focus
Sessions
Attribute Focused
Coaching
Vice President
Gemba
Coaching
(Steps 8 11)
Individual Post
Coaching Sessions
Leaders Coaching
Results Presentation
to VPO
Leaders (2 levels up)
out brief with Coached
Leader
Coaching Process
Continuous
Improvement
discussions
247
TRUST
Keys to Success
Character and Competency

Speed and Cost
Communication and Commitment
Buy In:
1st Line Supervisors: Willing to change.
1st Line Supervisors Leaders : Accept responsibility to lead the change (Culture and
Change)
Senior Executive Team:
Engagement and Management Rigor via the Coaching Process
Demonstrate our Commitment to the PS.
Execution Flexibility
Recognize Opportunities
Avoid Minefields
Document 1st then Train and Coach

Hard Core Program Management Measuring:
Cost
Schedule
Quality
Return on Investment
248
Golden Rule of Leadership

they
Treat your subordinates how you
would like to be treated.
1 at a time!
249
The Organization Takes on the

Personality of its Leaders!
250
Quick Look Idea

In order to Get Better, you might consider doing one of the following:
Go talk to your direct reports, to your customers, to members of your team, or members of
your family. Ask three simple questions:
1. What is one thing we are now doing that you think we should continue doing?
2. What is one thing we are now doing that you think we should stop doing?
3. What is one thing we are not now doing that you think we should start doing?
The next time you make a mistake, rather than agonizing over it, reframe it as
feedback. Identify the learnings from it and ways you can improve
your
approach to get different results the next time.

and Rebecca Merrill
251
Take a Blue Slip

Where is your challenge?
New Leaders
Current Leaders
What is your new leaders time to competency?

Is that acceptable?
Do your subordinates Trust You with the biggest
decision you will ever make about them... Who
they work for and who works for them!
252
Take a Blue Slip

When was the last time you had a Goal
Alignment Session with your direct
reports?
253
Closing
I cant control what they do on the field but I
can control who does it
Joe Gibbs, Washington Redskins
And never give that away

Joe Barto
254
Keith Hornberger
Lean Sensei
255
Keeping Score
Putting it all Together
256
When the CEO/CFO says

OK we see all the pieces, we understand
the problem, we know this is critical to our
business
How much money do you need and when
do you need it, and how will we know it
made our business better?
257
Running the Business

Income Statement:
Revenue:
Costs:
Direct and Indirect Labor Costs
Direct and Indirect Materials Costs

Facility and Operational Costs
Production Systems
Information Systems
Inventory
Line of Sight Cost/Benefit Impact
258
Waste Targets
1. Labor Costs
2. Production
3. Systems
259
Labor Costs
What % of your revenue is associated with
labor?
Direct Labor = 15%
Indirect Labor = 10%
Total Labor = 25%
260
Labor Cost Analysis

2006 Expected Revenue = $220 Million
Projected Labor Cost (25%) = $55 Million
Direct Labor
Total Direct Labor = $33 Million

Direct Labor Headcount = 1000
Annual Cost Per Full Time Equivalent = $33,000
Indirect Labor
Total Direct Labor = $22 Million

Direct Labor Headcount = 500
Annual Cost Per Full Time Equivalent = $44,000
261
Human Capital Management Program

Components
1.
2.
3.
4.
5.
On Boarding
Current Workforce
Leader Development
Building Benchstrength
Executive Development
Where do we start?
262
Start where you get the biggest

bang for the buck!
CFO Speak:
263
Human Capital Managers

#1 Goal
Strategic Goals: Improve Our Business Performance by:
Increasing Available Direct Labor
Decreasing Overhead Labor
Tactical Goals:
Be Courageous
Put your money where your mouth is
Become Guerilla Budgeters to demonstrate value
Obligate the $$$ before they you lose it!
264
Budgeting
Know the Budget Cycles
Timing is critical to access to resources
Keep the Years Straight
Implementation Year
Budgeting Year
Planning Year
Programming Year
New Start or Next Year?

265
The Numbers
Cost/Benefit - Present Value
(attach details as necessary)
Non-Recurring Indirect Cost
Recurring Indirect Cost
Total Indirect Cost
Non-Recurring Indirect Benefit
Recurring Indirect Benefit
Total Indirect Benefit
Net Indirect (Cost)/Benefit
Net Direct (Cost)/Benefit
266
ROI Examples
1. On Boarding
2. Production Skills
3. Employee Engagement
267
EXAMPLE #1
On Boarding
Return on Investment Analysis
268
Retention
Process
Hiring
Process
Initial
Training
Probationary
Period
First Year
Subsequent
Years.
1. Reduce Hiring Process Cost

2. Reduce Attrition Cost
269
New Hire Release Breakout

Number
Released
Calendar Days
Total Hired
482
Total Released
225
Percent of Total Hired
Total Released
in first 120
Days:
Total Released
120-365 Days
Total Released
365(+) Days:
131
50
31
27%
10.4%
6%
270
Attrition Reduction Savings

Replacement Costs: $13,899
$747 hiring cost (wages for hiring staff)

$4,452 in Training Costs.
$168 per training day multiplied by 26.5 training days
$1,950 in wages that were not productive hours.

Based on an estimate of 37.5 days on the job learning what to
do. Assumption that new employee was only 50% productive
during this initial period.
$6750 in replacement costs
Cost rolls up benefits, testing costs (drug, physical, skills)

Workers Compensation, COBRA, and lost productivity during
transition.
271
Example Analysis
$10,000 ~ Estimated new hire costs (training, overhead, and
HR admin costs, etc.)
$5,000,000 ~ 500 new hires per year
$2,000,000 Walk Out Cost ~ 40% New Hire Attrition Rate
$250,000 ~ for every 5% Reduction of New Hire Attrition Rate

272
ROI Analysis
ROI Model based upon a combination of:
Overall Retention Rate
Earlier Attrition Time
Overall Attrition Example:

$250,000 cost savings through a 5% reduction
12 weeks = Average weeks to attrition
Earlier Attrition Time:

If we can move the time to release earlier by 2 weeks due to better
pre-hiring assessment, job awareness, and initial training then
$1,000,000 ~ $1,000 per week per employee x 2 weeks x 500
employees
Total Potential Annual Savings: $1,250,000
273
Manufacturing Turnover Cost Breakout

Annual
Costs for
100 Worker
Site
Annual
Costs for
1000
Worker
Site
Annual
Costs for
10000
Worker Site
Manufacturing
Turnover
rate
Voluntary
Quits
Retirement
Fired
Replace
-ment
Costs
Turnover
17.0%
14.0%
2.0%
1.0%
$14,000
$238,000
$2,380,000
$23,800,000
Voluntary
Quits
17.0%
14.0%
2.0%
1.0%
$14,000
$196,000
$1,960,000
$19,600,000
Retirements
17.0%
14.0%
2.0%
1.0%
$14,000
$28,000
$280,000
$2,800,000
Fired
17.0%
14.0%
2.0%
1.0%
$14,000
$14,000
$140,000
$1,400,000
$476,000
$4,760,000
$47,600,000
TOTAL
82.4% of Turnover Costs are in the Voluntary Quits Category

11.8% of Turnover Costs are in the Retirement Category
5.8% of Turnover Costs are in the Fired Category
274
EXAMPLE #2
Production Skills Program
Return on Investment Analysis
275
Understand the Cost of Training

Overwhelming Cost of Training is Student Labor
276
Production Skills Development

Goals
Decrease the cost of training by reducing the
time to train.
Decrease time to competency (Improve the
quality of training)
Decrease Risk (Safety, Litigation, etc.)
Align training capacity with Human Resources
Labor Resource and Hiring Plan
277
Current OJT Assumption

64 Hours OJT per year for Four Years
Anecdotal reports from 1st Line Supervisors
2080 hours per year 64 hours represents 3% of the
time for OJT
Non-Structured OJT much less efficient
Burdened Labor rate of $18.00 per hour
278
Current and Future State

Current
161.5 Hours Skills Training

40 hours initial Training
64 hours of OJT each year for Four Years
Total of 457.5 Hours x $18/Hour = $8,235
Future
137 Hours of Skills Training (15% Reduction)

40 hours initial Training
40 hours of SOJT Following Initial Training
40 hours Intermediate Training
40 hours of SOJT Following Intermediate Training
Total of 297 Hours = $5346
35% Reduction
279
By Year Savings
2003
2004
2005
2006
2007
2008
Total
Savings
Hours
8632.5
-300
13560
25560
12160
7680
Total
Savings
Dollars
$155,385
-$5,400
$244,080
$460,080
$218,880
$138,240
Hours returned to Production 2004 2008: 48,630 Hours

Savings 2004 2008: $875,340
Note: 2003 Numbers on this chart represents savings that would have been
realized this year if the program had already been implemented. 2003 numbers
have not been included in any future ROI predictions.
280
Intervention
Estimated Costs
1 ea Primary Level 1 Instructor
1 ea Scenario Evaluator (Part Time)
$112,000
Automated Support Tool/IT Support
$84,000
Program Management
$234,000
Metrics, Data Capture and Evaluation
$50,000
Total Costs of
Intervention:
$670,000
Courseware Design and Implementation
$30,000
5 Scenario Work Areas
$25,000
10 (+2) Computer Lab
$50,000
Recurring cost:
Instructors
IT Support
Materials
$5,000
1st year Labor Costs
40 hours x 100 New Hires x $20/Hour

$80,000
281
$1,207,261:
Total Projected Savings
$670,000:
Total Intervention Costs
$537,261:
2006 Savings
Break Even: Q3/2005

282
Other Tangible Benefits

Aligned Training with actual Job Requirements
Production Skills Training will be aligned with
production needs
Embedded competency evaluation process
throughout
Complete review and updating of body of knowledge
Can be transferred to other areas as a Performance
Support Tool for employees
Can be transferred to local Technical Schools
283
EXAMPLE #3
Employee Engagement

284
Employee Engagement
Difficult to measure outright BUT
It is NOT what they say but what they DO!
There are industry standard measures to reflect improved
employee commitment
less process waste

decreased turnover
decreased safety incidents
decreased maintenance expense
fewer grievances
decreased absenteeism
reduced error rates, etc
We can calculate a cost for each one of these.
285
Company Baseline
Number of Employees
3000
Average Hourly Rate (Loaded)
$40
Hours Worked per Year
2080
Salary per Individual

Workforce Salary
$83,200
$249,600,000
How can I get to this kind of Savings?

Total FTE Savings
Total Savings in Dollars
51.8
$4,308,000
286
Reduce Grievances
(Union Shop)
Grievance
Grievance Hours lost (e.g. 30 hours due to other
workers making up, management time, lost
employee productivity)
Loss for each Grievance
30
$1,200
Average number of grievances per year Company

Wide
100
Annual Grievance Cost for the company per year
$120,000
Estimate of Intervention Effects (Percent

Reduction in Grievances)
Intervention Savings
FTE Savings
50%
$60,000
0.7
287
W2 Turnover Analysis
Average
Monthly
Headcount
Total W2s
issued
Churn
Annual Turnover
Rate
Hourly
176
352
176
100%
Salaried
73
72
(1)
1.4%
Hourly
189
334
145
76.7%
Salaried
82
87
6.1%
Hourly
257
451
216
75.5%
Salaried
91
97
6.6%
2003
2004
2005
288
Reduce Voluntary Turnover

Turnover
Turnover Cost (Percent of Salary - 15% - 200%)
15%
Turnover Rate
25%
Individual Turnover Cost

Total Workforce Turnover Costs
Employee Turnover due to voluntary separation
Cost for Employee Turnover due to voluntary
separation
Estimate of Intervention Effects
(Percent Reduction in Voluntary Turnover)
FTE Savings
$12,480
$9,360,000
80%
$7,488,000
25%
$1,872,000
22.5
289
Reduce Absenteeism
Absenteeism
Absenteeism Hours lost (e.g. 12 hours due to other
workers making up, management time, lost employee
productivity)
Loss for each day an employee lays out
Average number of lay outs per employee per year
12
$480
5
Annual Absenteeism Cost per Employee per year
$2,400
Number of Company wide lay outs per year
15,000
Annual Absenteeism Cost for Company per year

Estimate of Intervention Effects (Percent Reduction in
Absenteeism)
FTE Savings
$7,200,000
33%
$2,376,000
28.6
290
THINK Strategically.
2007-2010
PPL Strategy
Project Management
and
Measuring Business Impact
ACT Tactically
2006
PPL Program
291
Strategy Development
A Systems Engineering Approach
What is the current process and cost? (Current State Map)
What does the perfect system look like? (Perfect State
Map)
How do we get from here to there? Plan of Action and
Milestones with Resources Required and Return on
Investment Prediction
What does the future system(s) look like and how will we
measure progress? Future State Map(s)
292
PPL Strategy Development

Must Dos
Choose early programs wisely. Early failure hurts
credibility and damages morale.
Choose a Program core to the business to gain and
maintain senior leader focus.
Define metrics to measure progress and sign up for goal
accomplishment.
Develop detailed Plans of Action and Milestones.
COMMUNICATE the PLAN!
Execute, execute, execute
293
PPL Strategy
Must Not Dos
Try to make us a training company

Break the bank
Make unrealistic promises
Have a negative impact on production
294
Strategy
Supporting Documents
Planning Years: 2008-2009
A year by year plan of how to move from current state to future
state.
Accounts that most Human Capital Programs require multi-year
implementation to determine Pay Back/Return on Investment
Budget Year Proposals: 2007

A more detailed Budget Year plan in order to justify and defend
resource requirements.
Includes a business review of the current programs as related to
performance outcomes
Included New Start Proposals
Action Year Programs: 2006

Detailed Plan of Action and milestones for current year activities
and events
295
Human Capital Management Strategy

2006-2009
An Example
296
Strategic Initiatives
1.
2.
3.
4.
On Boarding
Leader Development
Productivity Improvements
Team Building: Application of Lean Concepts
to Cell Manufacturing
297
1. On Boarding
Components
Requisition Review
Realistic Job Preview
Creation
Math and Reading Test
Orientation Update
Program Development
Word Class First Day
Creation
Structured OJT, 30-60-90
Evaluation
180 Day Evaluation
Timeline
Analysis
Complete Aug 2005
Design
Complete Sep 2005
Development
Complete Oct 2005
Test
Complete Dec 2005
Roll Out
Q1-Q3 2006
Q4 2006 Q4 2010
298
2. Leader Development
Components
Identification of Leader
Levels
Leader Developmental
Plans
First Line Supervisor
Training
Manager Training
Succession Planning
Timeline
Analysis
Complete Dec 2005
Design
Q1 2006
Development
Q2-Q3 2006
Test
Q4 2006
Roll Out
Q1 2007
Q2 2007 Q4 2010
299
3. Production Skills Improvements

Components
Depth Chart
External Training Courses
Formal Cross Training
Automated Tracking skills to job
Hip Pocket Training
Skills Assessment of
Current Workforce
Timeline
Analysis
Q2 2006
Design
Q3 2006
Development
Q4 2006
Test
Q1 2007
Roll Out
Q2 2007
Q3 2007 Q4 2010
300
4. Team Building: Application of Lean

Concepts to Cell Manufacturing
Components
Production Teams/Cells
Team Based Operations
Cross Functional Teams
Timeline
Analysis
Q3 2007
Design
Q4 2007 Q1 2008
Development
Q2-Q3 2008
Test
Q4 2008 Q1 2009
Roll Out
Q2-Q3 2009
Q4 2009 Q4 2010
301
Human Capital Management Strategy

Q2/2005 Q4/2008
Q2/2005
On Boarding
Q3/2005
Leader Development
Q2/2006 Production Skills Improvements
Q3/2007
Team Building
Roll Out Q1/2006
Roll Out Q1/2007
Roll Out Q2/2007
TBD
302
The Bottom Line

To Win and Win Big is the Business of People.
You must play the game.
To play you must know the rules.
Understanding and applying ROI Evaluation
Analysis is a core skill to play the game.
Skills, Knowledge, and a detailed Plan =
Courage
Turf, Ego, and Money and at the end of the
day
303
End of Day 1
Whew
304
Welcome to Day 2
305
Creative Memories
Overview and Plant Tour
Bruce Boulton
Operations Manager
306
Plant Tour
Feedback
Your Gift to Creative Memories
307
Lets Wrap It Up
Review Workshop Outcomes
Blue Slips
308
What Did You Want To Learn

From This Work Shop?
309
Human Capital Challenges

No silver bulletBig Problem with a lot of moving parts in
a dynamic business environment
The commitment is to provide some real analysis to focus
our effortsnot a Good Idea of the Day approach
The recommendations must make good business sense
We must be realistic and eat the elephant one bite at a
time.
We must create a SYSTEM to:
Better communicate with our primary clients: the Production
Managers
Synchronize and integrate our Projects and Programs with the
normal business operations.
Give the Managers predictable yet responsive support
310
Human Capital Managers

Goals
Be the Plant Managers best resource for support
Shift our focus to becoming Human Capital
Planning and Support experts while maintaining
the HR Administrative Mechanics
Link the Corporate Strategy to the Human
Capital Management Program
Must be long range thinkers People are multiyear projects-- in fact Life Long Projects
Do not be a part of the problem!
311

Success Principles
1. Business Focus (People, Process, Equipment + Material =
Products)
2. Centralized planning as a team, but execute as close to the
floor as possible
3. Senior Leaders must personally engage ensuring business
affect
4. P&L Managers must be the focus of our efforts
5. The organization provides the P&L Managers with a robust
performance improvement toolkit
6. Leaders must be empowered to ensure responsibility
and accountability for the performance and development
of their team.
312
Business of People
The Mission:
Provide Leaders with right people in the right
numbers, in the right skills, at the right time, at
the right cost to meet business needs.
The Goal:
An agile, competent workforce capable to move
at the speed of business.
313
Thanks and Good Luck!
314

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The Association of

People Powered Lean

People are Better Than Materials!

Start with the end in mind! Take a Systems Approach

Be in the business of making hard things easynot easy things hard.

People are good and want to do the right thing

It is the organizations responsibility to create an environment for its people to be successful

Our Peoples Vote counts more than ours

Every organization has a limited bandwidth for change

Culture vs. Change and Leading

Business is a Team Sport

Work Hard: Are we executing the plays?

Army Basketball Team

Task Force 2-4 Cavalry Tactical Operations Center Team

Workshop Learning Objectives

The Lean House without Waste

Start with the end in mind!

Business Card Exchange

Welcome: Bruce Bolton, Operations Manager, Creative Memories

Creative Memories Plant Tour

Today we will generate a lot

Take a Blue Slip

Take a Blue Slip

Break-Out Product Information

Getting Out of the Box

It is All About Business

CURRENT Level of Performance

by optimizing the plants physical production capacity

Alternative Roles for Corporate Learning

Human Capital Management

Organizing for Success

Business is a Team Sport!

Organizing for Success: Aligning Production Process with

Learning Your Position and the Depth Chart

Keeping Score: How do you know you are Winning?

Vertical Dyad Linkage

Based Upon a Total Operational Headcount of 3060

Life Cycle Skills

Leader Development Program

Leader Development conducted

Systematic Approach to Leader

Bench Strength is Working the Blue Lines

Putting It All Together

Human Capital Management

Business Focus (People + Process + Material = Products)

Human Capital Management

No silver bulletBig Problem with a lot of moving parts in a

What group represents the biggest risk

Which part of the People Life Cycle requires

Organizing for Success

People Powered Lean

Value Stream Map

How do we create value?

Non-Value-Adding but Required

Team Sport: Defining Positions

Value Stream to Cell Map

Who is going to do it?

Vertical Labor Planning

P & L Responsible Leaders

1st Line Supervisors

Creating the Conditions for Success

Span of Control (Leader to Led Ratio)

Business is a Team Sport