1

Lean Thinking Thru Daily Work Management

M Hariharan

Director

Savoir faire Management Services Pvt Ltd

Two days Workshop on QUALITY MANAGEMENT STANDARDS & QUALITY TECHNOLOGY TOOLS (QMS/QTT)

Dt. : 11 December 2015 Venue : MCCIA Pune

22

Agenda

Lean Thinking - Alignment

Integration with QMS

Customer Value

Process Alignment

People Alignment

Lean Leadership

33

Agenda

Lean Thinking - Alignment

Integration with QMS

Customer Value

Process Alignment

People Alignment

Lean Leadership

44

Lean Thinking

Changing Cost Perspective

Sustaining “Inequality”

Lean Thinking - Alignment

55

Lean Thinking

Changing Cost Perspective

Sustaining “Inequality”

Lean Thinking - Alignment

66

Changing Perspective of Cost

C + P = SBlessing of Customer – Cost Reimbursement Model

S - C = p

Curse of Competition and Inefficiency

S - P = CCustomer Value Creation and Economic Value Creation

Allowable Cost

77

Lean Thinking

Changing Cost Perspective

Sustaining “Inequality”

Lean Thinking - Alignment

88

Sustaining the “INEQUALITY”

Customer Value

Economic Value

v > P > C

99

Lean Thinking

Changing Cost Perspective

Sustaining “Inequality”

Lean Thinking - Alignment

1010

Visionary Leadership

Purpose(Customer

Value)

Process(Methods,

Supply Chain)

People(Key

Drivers of Results)

Prosper(TBL)

(adapted from the Lean model of James Womack)

1111

Visionary Leadership

Purpose(Customer

Value)

Process(Methods,

Supply Chain)

People(Key

Drivers of Results)

Prosper(TBL)

V>PP>C

(adapted from the Lean model of James Womack)

V>P > CV>P > C

Toyota Way - First Principle : Long Term Philosophy

Base your management decisions on a long-term philosophy,even at the expense of short term financial goals

1212

Agenda

Lean Thinking - Alignment

Integration with QMS

Customer Value

Process Alignment

People Alignment

Lean Leadership

1313

Visionary Leadership

Purpose(Customer

Value)

Process(Methods,

Supply Chain)

People(Key

Drivers of Results)

Prosper(TBL)

(adapted from the Lean model of James Womack)

Customer Focus

Leadership

Engagement of People

Process Approach

Improvement

Evidence based Decision Making

Relationship Management

Integration with ISO 2015

1414

Agenda

Lean Thinking - Alignment

Integration with QMS

Customer Value

Process Alignment

People Alignment

Lean Leadership

1515

Purpose… Customer Value

“Understand what the customer wants”does

Customer Focus

1616

Purpose… Customer Value

“Customer is the one who pays for our product/service”

not only

but every one who is impacted by our product/service

Customer Focus

17

7 Wastes

Customer Focus

1818

7+1+1+1

Non-utilized creativity of people - Shingo

Mudas (Taichi Ohno)

Defects

Overproduction

Waiting

Transportation

Inventory

Motion

Extra processing

Design of product not meeting customer needs (Womack)

Policy (Savoir faire)

Customer Focus

Process Approach

1919

Sources of Defects (3 Ms)

Not Understanding the Purpose

Doing the work well ahead of time

Doing the work at the last minute

Non-utilised Creativity

Unwanted movement

Accumulated work to do in batch

Corrections

uda

Waste

Process Approach

Customer Focus

2020

Agenda

Lean Thinking - Alignment

Integration with QMS

Customer Value

Process Alignment

People Alignment

Lean Leadership

2121

Process

ProcessInputs OutputOutcome

Effective and Efficient Process

Process Approach Improvement

Relationship Management

2222

3 Ms

uda

ura

uri

Waste

Variability

Strain

2323

Sources of Defects (3 Ms)

Month end, Week end, Day end, Nearing lunch Syndrome

Student’s Syndrome

Uneven work flow

Skill Variability

Skill Mismatch

uraVariability

2424

Sources of Defects (3 Ms)

Strenuous Postures

Continuous, monotonous work

All work, no play

Lack of training

Lack of Clarity of purpose

Mood swings

uriStrain

25

Three eyes of Buddha

2626

Prof. Shoji Shiba

Maintain What You DoIncrementally Improve

Breakthrough

2727

Stability and Improvement

5SStandard WorkOEE Autonomous MaintenanceCP/CPK

VSMKaizenKanbanPoka YokeSix Sigma

Process Approach

Improvement

Relationship Management

2828

Agenda

Lean Thinking - Alignment

Integration with QMS

Customer Value

Process Alignment

People Alignment

Lean Leadership

2929

Prof. Shoji Shiba

Maintain What You DoIncrementally Improve

Breakthrough

3030

Prof Tsuda’s Model

Share of Responsibility

Operator

Supervisor

Engineer

Manager

Leadership

Engagement of People

3131Share of responsibility .. With rampant fire fighting

Share of Responsibility

Operator

Supervisor

Engineer

Manager

3232

A “Day” of a Leader

Daily Fire Fighting

Daily Routine

Self Development

Team Development

Daily Kaizen

Dream for the Future

Daily Fire Fighting

Daily WorkManagement

Policy Deployment

3333

33

OutputThe Reality of Kaizen Events

Time

Event #1

Event #2

What Standard should be

What actually becomes the Standard when people do not sustain the changes.

Maintenance

Maintenance

Event #3

Work Standard

What Standard should be

Evidence based Decision MakingProf Shiba

3434Process Control and Process

Improvement

Run an existing process for a whileCompute the natural variation limits, thus highlighting exceptional variation

Find and eliminate the sources of exceptional variation

Continue running and monitoring the new or now accurately followed processes, using methods of process controlEliminate the source of any unstable condition (exceptional variation) that begins to occur

If desirable to reduce the natural variation of the process, use reactive improvement methods

Continue running and monitoring new process, using methods of process controlEliminate the source of any unstable condition that begins to occur

SDCA PDCA

Evidence based Decision MakingProf Shiba

3535Alteration of SDCA and PDCA

P

D C

A

C

A S

D

Use Standard

Do WorkCheck work against standard

Act: Either use present standard or improve

Routine Work

Plan Improvement

Do Improvement

Check Improvement results

Adjust: Either Standardize or re-plan

Improvement Activities

Evidence based Decision Making

Prof Shiba

3636Building Blocks of DWM™

Standard Work

Visual Manage-

ment

SDCA/ PDCA Cycle

Daily Kaizen

Defined Zonal Ownership

MP/CP Aligned with KPIs

CommunicationKPIs Aligned with Policy Deployment

DWM aligned to Customer Value

[ Control ] [ Improvement ]

Evidence based Decision Making

Customer Focus

LeadershipEngagement

of People

Process Approach

Improvement

Relationship Management

3737

Leader’s Pie

Dream for the future

3838

Hoshin Kanri

Ho

Shin

Kan

Ri

Direction

Focus

Alignment

Reason

3939

Hoshin Kanri

Hoshin Kanri is the first attempt at business break thru’ rather than process break thru’

Deals systematically with process improvement across company to produce desired business results

MBO was not connected to processes

4040

Hoshin Kanri for Alignment

Aims to align all towards key company goals Using indirect enforcement

Creating a sense of urgency

Even hourly employees are influenced to choose activities with strategically important objectives

Aims to align all jobs and tasks, (routine and improvement) focusing and coordinating efforts and resources to key company goals in order to create breakthroughs

Aims to bring company’s goals and activities quickly and effectively into alignment with rapid societal and environmental changes

4141

Plan

Plan

PDCA of Hoshin KanriLong-Term Vision and

Plan

Company’s Mid-term Plan

Environmental changes

Diagnosis by CEO

Annual Hoshins

Hoshin & Measurement

Plan deployment

Control by Measurement

Do

CheckAdjust

Prof Shiba

4242

Five Elements of Hoshin

Hoshin

= Statement of desired outcome for next year

+ focused means

+ metrics to measure progress

+ target values for metrics

+ deadline date

Prof Shiba

4343

Eg : Five Elements of Hoshin Statement of desired outcome for next year

Daily practice of market-in concept

Focused means

Create attractive product by improving market research

Increase customer satisfaction of out product by using quality tables

Assume on-time delivery by improving processes

Metrics to measure progress

On-time delivery rate

Target values for metrics

100 %

Deadline date

March 2013

Prof Shiba

4444

Plan

Plan

Proactive, Reactive and Control

Long-Term Vision and

Plan

Company’s Mid-term Plan

Environmental changes

Diagnosis by CEO

Annual Hoshins

Hoshin & Measurement

Plan deployment

Control by Measurement

Do

CheckAdjust

Proactive

Reactive

Control

Prof Shiba

4545

Agenda

Lean Thinking - Alignment

Integration with QMS

Customer Value

Process Alignment

People Alignment

Lean Leadership

4646

Lean Leadership

Senior Management is simply a flag bearer when a business decision is made. It is of no use unless others follow the flag

Eiji Toyoda, Former Chairman of Toyota

4747

Lean Leader

Leader is a coach

Leader is a mentor

Mission is to put the team in a position to “win”,i.e., add customer value.

Encourage, enable self-development and develop others.

48

Thank you

M Hariharan

hari@sfalignment.com