Post on 11-May-2015
Invisible Waste in Organizations –See the unseen blockages in Lean
Transformation
Presented at:Lean Management Congress 2009
Lean Transformation – Blockages
But where is the
obstacle?
Haven’t we faced?
Thought over it???
What went wrong with Lean Transformation
Million $ Question?
During Lean Implementation
1. Overproduction2. Waiting3. Transportation4. Over Processing5. Inventory6. Motion7. Defects 8. Unused Employee Creativity
The 7+1 Waste
But these are visible!
Over the Carpet but what is there Under
the Carpet?
What we know is far less than what we don’t• Take a closer look at your factory
• RETHINK
The devil in the clown
Invisible Waste
• You may pump in extra fertilizers or chemicals to make the plants grow.
• But in turn it makes the soil infertile and unproductive.
• It takes away the natural fertility of the ground.
• The factor for infertility – Invisible Waste• They are found in either Value Creation or
Value Stream.
Value Creation Value Stream • The invisible waste in Value Creation are of
long term nature and are larger in impact. • They need huge changes in mindset in order to
be eradicated totally. • The invisible waste in Value Stream is in the
process and the systemic steps. • They can be brought out by severe observation
and data analysis.
Invisible Waste
• Policy & Procedures• Wrong Culture• Wrong Strategy• Architecture (Design) of the Organization• Wrong Measurement• Entrenched Mindset (Paradigm)• Communication • Knowledge Management
Policy & Procedures
• Policy & Procedures – not revised for years• Lengthy and NVA procedure are discouraging• Policy not in place – people not in place• Decision Making is fuzzy if unclear policy• For ex. Policy to buy Machine and Hardware
are same• Increase the supplier base over cost concerns,
however actually you are buying variations
Do not generalize P&P’s!
Culture
• The set of shared attitudes, values, goals, and practices that characterizes an institution, organization or group – unique to it
• People visit Toyota – learn the tools employed• Toyota knows its culture cannot be copied• It is cultivated over a period of time• If not guided, then also there’ll be a culture• Build a Culture of Continual Improvement
towards perfection
Culture makes you Unique!!
Culture .. How to Identify
• What are we dealing with? Urgent – Important• How do we treat an Individual in every Transaction?• Trust Based Relationship (employer-employee)• Do we chat more about the person who is not there?• How is the Top Management?• Rituals, customs, anecdotes, success stories, artifacts• How is the furniture arranged, quotes on walls?• Beaurocratic, democratic, autocratic, open-door…..
Strategy
• A strategy is a plan of action designed to achieve a particular goal (linked to Vision).
• Strategy deals with the how part rather than the what.
• Strategy gives the RIGHT Direction• You must know where not to delve• Vision will not help unless strategy is right• Growth strategy• Blue Ocean Strategy
Strategize for the Market!!
Architecture of the Organization
• Bigger Organization, higher is departmentalization• Micro Management – makes orgn. Sluggish • Every Link in the Pyramid is Useful• However, None faces the Customer • If architecture not right, you’re Structured to fail
Management by push? Throw over the wall?
Common situation
How should it be!!
From the functional perspective to the flow perspective
From Departments to Cross Functional Team
Flow-oriented co-operation
everything flows
‘Unification’ !!!!
-Breaking barriers,-Reducing hand-offs,-Reducing blur's!
Measurement
• Incentive should be based upon Value Addition
• Production – up on all the cylinders, full throttle
• Because higher figures, meant higher incentive• All produced is then stored – NVA• If Performance Management System is based
on these figures• Lose a good supervisor, have a bad manager
Measure it to Improve it!!
• Accounting – Rework is not counted• Month End Syndrome, Quarterly results – Fire
Fighting • Budget Driven – measuring the other end• Still Measuring the Bottom Line as Sales USE A HOLISTIC APPROACH • Balanced Score Card – Norton & Kaplan• Throughput Time is useful measure for all
Entrenched Paradigm
• The significant problem cannot be solved from the same level of thinking that created it.
• Think of a Paradigm Shift as a change from one way of thinking to another.
• It's a revolution, a transformation, a sort of metamorphosis.
• It just does not happen, but rather it is driven by agents of change.
• Shift is not for others, it’s for you to begin with
GET DO
SEE
Principles
Shift in Paradigm
Improving Process
Behavior Change
Results
Needs
Customer Satisfaction Productivity Profit
Transformation Model
Communication
• High-Mesh communication – but Messed up
Internet Blackberry
Mobiles Media
“Talk” is not Communication!
• Sending Mails everyday – but no connection• No morning wishes - barrier to communication• Hiding the problems• Pink Elephant – Everyone knows but no one
talks of it• Open Door Policy
Knowledge Management
• Organizational Learning• Knowledge Transfer to next generation of
employees• Make it simple• Excellent Knowledge Mgmt. – reduced
chances of repeated errors• Teach and Train others swiftly• New Employee Induction becomes easy• Operations become operator’s knowledge
independent
They are interlinked!
Lean
Transformation
Vedzen Institute
8, Friends Colony, Sind Hindu Society,
Lulla Nagar, Pune9822026727
yiv@vedzen.com