Building Better Companies by Building Better People

Rev. A Printed 04/10/23© 2005 by Sigma Breakthrough Technologies, Inc.

Building Better CompaniesBuilding Better CompaniesBy Building Better PeopleBy Building Better People

20052005


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AgendaAgendaAgendaAgenda

• Introductions• Lean Steering Team

– Purpose– Roles and Responsibilities– Connectivity from Strategy to Tactics

• Lean Organizational Structure– Execution and Site Steering– Lean Leaders– The Lean Masses

• Training • Communication• Execution

– Deployment Roadmap, the Lean version of DMAIC• Ownership

– Pride of Ownership– Enthusiasm– Sustainability– Early Wins


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Site Steering Team: Purpose, Site Steering Team: Purpose, Roles & Responsibilities Roles & Responsibilities Site Steering Team: Purpose, Site Steering Team: Purpose, Roles & Responsibilities Roles & Responsibilities

Responsibilities of a Site Steering Team

Makes change happen across functional and departmental boundaries

Monitors all aspects of lean implementation

Defines the lean implementation plan

Champions the lean effort

Defines the lean vision

Identifies lean leaders

Eliminates barriers

Supports the lean leader in the identification of the lean opportunities

Provides on-going support for lean initiatives and SEE

Reports progress on lean activities to Sylvania Enterprise Excellence (SEE) Team

Role of a Site Steering Team:

The SST crafts the strategy

Identification of initial target areas

The committee provides the direction and guides the Lean implementation team(s)

Why assemble a Site Steering Team?

The purpose of an SST is to ensure that true Lean transformation occurs within the organization.


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Site Steering Team: Team Site Steering Team: Team MembersMembersSite Steering Team: Team Site Steering Team: Team MembersMembers

Lean Site Steering Team Members

Plant Manager and Lean Champion:

Manufacturing Superintendent(s):

HR Manager:

Materials Manager:

Quality Manager:

Finance Manager:

Industrial Engineer / Facilities Manager:

Design Engineering Manager:

Lean Implementation Manager:

“Lean Leaders keep their eyes on the horizon, not just on the bottom Line”

“Lean Leaders keep their eyes on the horizon, not just on the bottom Line”

Future “Enterprise Excellence” Site Steering Team Members

Six Sigma Manager: Expert in six-sigma. Gives recommendations for implementation as well as educates SST in Process quality initiatives.

TPM Manager: Expert in Total Productive Management. Gives recommendations for implementation as well as educates SST in TPM.


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Site Steering Team: Meeting Site Steering Team: Meeting AgendaAgendaSite Steering Team: Meeting Site Steering Team: Meeting AgendaAgenda

Proposed Site Steering Team meeting agenda & topics:

I. Review upcoming Kaizen events (charters) and prioritize event calendar:

II. Discuss Lean implementation: pilot area progression, future area involvement.

III. Discuss Development / Updates to the Lean Total Program:

IV. Discuss Internal Lean training initiatives:

V. Review SST Reading Assignment:

Proposed Site Steering Team meeting agenda & topics:

I. Review upcoming Kaizen events (charters) and prioritize event calendar:

II. Discuss Lean implementation: pilot area progression, future area involvement.

III. Discuss Development / Updates to the Lean Total Program:

IV. Discuss Internal Lean training initiatives:

V. Review SST Reading Assignment:““A Champions job is to look into the future A Champions job is to look into the future

and see the organization not as it is, but and see the organization not as it is, but as it can be. The Site Steering Team as it can be. The Site Steering Team

ensures that the organization achieves ensures that the organization achieves that vision”that vision”

“A meeting without an Agenda is nothing more than a conversation”


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Realizing the Lean Vision: From Realizing the Lean Vision: From Strategy to Policy Deployment. Strategy to Policy Deployment. Realizing the Lean Vision: From Realizing the Lean Vision: From Strategy to Policy Deployment. Strategy to Policy Deployment.

Choosing where to begin with the Lean Transformation

Unless an organization can unquestionably see “blood gushing from the jugular”, it needs a sure indicator for determining where it is bleeding the most. This is where to begin with Lean Implementation. One method for determining this is through Financial Mining.

Step 1 - Identify the top 3 business objectives for the next 3 to 5 years.

Step 2 – Work with finance to determine what “Percentage of Pain” each product / Service is causing for each business objective.

Step 3 – Rank the top 3 business objectives from 1 to 3, with 3 being the most important objective.

Step 4 - Multiply each product / Service “Percentage of Pain” by the business Objective’s Rank.

Step 5 – Add up numbers for the top 3 Business Objectives for each Product / Service and choose which one you will perform Value Stream Analysis on.

Steps to take to perform financial mining to uncover a “breakthrough” or “Discovery” are as follows:


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Realizing the Lean Vision: From Realizing the Lean Vision: From Strategy to Policy Deployment. (Cont.)Strategy to Policy Deployment. (Cont.)Realizing the Lean Vision: From Realizing the Lean Vision: From Strategy to Policy Deployment. (Cont.)Strategy to Policy Deployment. (Cont.)

Once identifying a breakthrough, you need to take steps to understand your process. The first step is through generating a SIPOC Diagram.

SIPOC Stands for,,,

Suppliers - Who provide Inputs.

Inputs – What goes into the process.

Process – How the process is performed.

Outputs – What comes out of the process.

Customers – Who receives the outputs

SIPOC Stands for,,,

Suppliers - Who provide Inputs.

Inputs – What goes into the process.

Process – How the process is performed.

Outputs – What comes out of the process.

Customers – Who receives the outputs

SIPOC is the starting point for where you will begin to create your process maps.

SIPOC is High Level. Gives overall view of the process

Can show the scope of potential project.

Identifies key players.

Demonstrates process and customer requirements.

A great communication tool throughout the project.

SIPOC is High Level. Gives overall view of the process

Can show the scope of potential project.

Identifies key players.

Demonstrates process and customer requirements.

A great communication tool throughout the project.


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Realizing the Lean Vision: From Realizing the Lean Vision: From Strategy to Policy Deployment. (Cont.)Strategy to Policy Deployment. (Cont.)Realizing the Lean Vision: From Realizing the Lean Vision: From Strategy to Policy Deployment. (Cont.)Strategy to Policy Deployment. (Cont.)

Value Stream Analysis will identify projects and allow you to develop a Future State Vision for the Breakthrough area.

Step I - Generate Current State Value Stream Map.

Identify current process and wastes. Include ALL data (material flow, information flow, Process data and labor utilization)

Step II - Craft the “Ideal State” Value Stream Map

Where you envision the breakthrough in 5 years.

Step III - Develop the Future State “Vision” Value Stream Map.

12 months to achieve.

Step IV - Identify projects required to achieve Future State Vision.

Identify resources and project sequence required to achieve Future State Vision.

Step V - Develop plan to achieve Future State Vision within 12 month Time Frame – Policy Deployment.


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Realizing the Lean Vision: From Realizing the Lean Vision: From

Strategy to Policy Deployment.Strategy to Policy Deployment. Realizing the Lean Vision: From Realizing the Lean Vision: From

Strategy to Policy Deployment.Strategy to Policy Deployment.

Value Stream Mapping, Value Stream Analysis and Policy Deployment planning required to realize a 12-month Future State Vision can be accomplished via traditional 5-day Kaizen activities!!!

The Value Stream Mapping Kaizen is the first Kaizen activity that a pilot area will participate in. This eliminates a “Drive-by Kaizen” syndrome


1010

Realizing the Lean Vision: From Strategy Realizing the Lean Vision: From Strategy

to Policy Deployment.to Policy Deployment. Realizing the Lean Vision: From Strategy Realizing the Lean Vision: From Strategy

to Policy Deployment.to Policy Deployment.

Steps Feet Miles Time

Automount 3,686 11,058 2.1 38.4

Autopress 6,374 19,122 3.6 66.4

Exhaust 3,185 9,556 1.8 33.2

Groupleader 5,204 15,611 3.0 54.2

Lampmaker 2,275 6,825 1.3 23.7

Process Spaghetti Diagram

Process Pedometer Study

Mechanic I

Mechanic II

Mechanic III

Technician

Material Handler

Spaghetti Mapping and Process Flow Mapping are the “front lines” tools used to improve a process. Spaghetti maps are frequently used “tools of the Kaizen event”.


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Program DeploymentProgram DeploymentProgram DeploymentProgram Deployment

Phase 1: Planning for Change Executive Planning Communication Planning Deployment Planning Financial System Development Organization Systems Planning Champion Selection & Training Project Identification, Prioritization & Selection Belt Selection & Training Planning

Phase 2: Rapid Profitability Improvement Kaizen Lean Sigma Black Belts Lean Sigma Green Belts Lean Sigma Transactional

Phase 3: Long Term Growth Voice Of The Customer Six Sigma Process Design Marketing with Six Sigma

Phase 4: Internalization Implementation Leader Train-The-Trainer Master Black Belt

Phase 5: Strategy Executive Strategy Planning


Process Improvement Process Improvement MethodologyMethodology

Site Lean Site Lean Organizational Organizational

StructureStructure


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Lean Organizational Structure Lean Organizational Structure Lean Organizational Structure Lean Organizational Structure

Lean ChampionLean ChampionNote: This chart represents a structure forLean Implementation and does notimply a managerial reporting structure

Lean AwarenessLean AwarenessLean LeaderLean Leader

Executive ChampionLevel 1

Deployment ChampionLevel 1

Lean LeaderLevel 2

Kaizen Team LeaderLevel 3

Kaizen Team MembersLevel 4

Kaizen Team LeaderLevel 3

Kaizen Team MembersLevel 4


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Lean Roles And ResponsibilitiesLean Roles And ResponsibilitiesLean Roles And ResponsibilitiesLean Roles And Responsibilities

Title Executive Champion (Corporate)

Definition Sponsoring member of the Executive Management team who is committed to the implementation of Lean principles in the organization

Roles and Responsibilities

Member of the Executive Steering Committee (Corporate Level)

Knowledgeable of Lean Concepts and Lean Conversational

Ensure Lean Activities are linked to Corporate Metrics

Owner of the Corporate Benefit Tracker (identified, implemented, realized)

Supports and is committed to the plan


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Title Deployment Champion (Site)

Definition Liaison between executive management and Lean Implementation Teams


Leader of the Site Steering Committee

Knowledgeable of Lean Concepts and Implementation Methodology

Provides environment conducive to Lean applications

Owner of the Site Benefit Tracker (plan vs. actual)

Ensure Lean activities are linked to Business Unit Metrics

Provides guidance to Lean Leaders

Removes roadblocks and ensure resources are available


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Title Lean Leader

Definition Lean Expert, consultant, trainer and

facilitator for Lean activities


Define, Design, and Deploy local Lean implementation plan

Local Lean Knowledge Expert

Leverages knowledge across multiple sites

Accountable to deliver the metrics to the Site Benefit Tracker

Member of the Site Steering Committee

Responsible for developing site Lean Core Competencies


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Executive ChampionExecutive ChampionLevel 1Level 1

Deployment ChampionDeployment ChampionLevel 1Level 1

Lean LeaderLean LeaderLevel 2Level 2

ACE Team LeaderACE Team LeaderLevel 3Level 3

ACE Team ACE Team MembersMembersLevel 4Level 4

ACE Team LeaderACE Team LeaderLevel 3Level 3

ACE Team ACE Team MembersMembersLevel 4Level 4

Lean Activities Lean Activities Lean Activities Lean Activities

Planning Implementation Reporting


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Lean Training Requirements By Lean Training Requirements By LevelLevelLean Training Requirements By Lean Training Requirements By LevelLevel

Executive ChampionLevel 1

Deployment ChampionLevel 1

Lean LeaderLevel 2

ACE Team LeaderLevel 3

ACE Team MembersLevel 4

Champion R&R Awareness

Lean ExpertClasses

SimulationWorkshops

ApplicationWorkshops

Lean Awareness

Lean Leaders Drive This

Level


Process Improvement Process Improvement MethodologyMethodology

Lean Lean Deployment Deployment

RoadmapRoadmap


2020

SBTI’s Lean Roadmap For SBTI’s Lean Roadmap For ImplementationImplementationSBTI’s Lean Roadmap For SBTI’s Lean Roadmap For ImplementationImplementation

• Phase 0: Assess – Evaluate Opportunity– Level 1 Entitlement -

“Setting the Bar” The best day in the life of the process

– Level 2 Entitlement – “Raising the Bar” Creating the best Competitive Advantage

• Phase 1: Plan – Value Stream Mapping

across business areas– Locate areas of opportunity

to apply Lean– Organizational System for

Lean implementation

PilotPilot

PlanPlan

TrainTrain Deploy

DeployGlobalize

GlobalizeAssess

Assess


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SBTI’s Lean Roadmap For SBTI’s Lean Roadmap For ImplementationImplementationSBTI’s Lean Roadmap For SBTI’s Lean Roadmap For ImplementationImplementation

• Phase 2: Train – Lean Methodology– Lean Leaders (How)– Benefits Tracker (Why)– Lean Management System

• Phase 3: Pilot – Kaizen– 5S– Process Maps– Quick Hit Kaizen

• Phase 4: Deploy– Deployment Model– Lean Leaders

• Phase 5: Globalize– Leverage across internal

and external supply chain– Lean Experts that can be

“plugged and played”– Wave 2

PilotPilot

PlanPlan

TrainTrain Deploy

DeployGlobalize

GlobalizeAssess

Assess


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Keys To Successful Lean Keys To Successful Lean DeploymentDeploymentKeys To Successful Lean Keys To Successful Lean DeploymentDeployment

• Outside Experts:– Facilitate kaizen event– Train leaders on applicable tools– Coach Team Leaders through barriers– Provide contact, representation for future support

• You:– Maintain enthusiasm– Champion success– Monitor implementation– Coach Leaders– Define next areas of attack

GlobalizeGlobalizeGlobalizeGlobalize

DeployDeployDeployDeploy


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Nominate A Site Steering Nominate A Site Steering CommitteeCommitteeNominate A Site Steering Nominate A Site Steering CommitteeCommittee

• Not necessarily management• People who get things done• Correct balance• Typically:

– Plant Mgr– HR– Finance– Production Mgr– 6s / Lean Coordinator (logistics, implementation)

• Drive & track progress of implementation




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Define Strategic DirectionDefine Strategic DirectionDefine Strategic DirectionDefine Strategic Direction

• Where does the plant need to be in– 2 years,– 5 years,– 10 years?

• Do site / corporate goals align?– How is the plant measured?– Balanced scorecard




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Understand The BusinessUnderstand The BusinessUnderstand The BusinessUnderstand The Business

• Map entire Value Stream(s) at a high level– Inventory– Core competency– Interrelationship of business units / supply chain– Capacity

• RTY, Uptime, Performance Efficiency

– Replenishment times– Both information & material flow

• Identifies– Initiatives => programs

• 6s projects• Lean opportunities,

– Kaizen Events, Production Lines




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Lean Program AttributesLean Program AttributesLean Program AttributesLean Program Attributes

• Training & Implementation Infrastructure of executives, managers, process experts, and

others embracing the Lean strategy and mobilizing change Lean thinking (Lean Discipline) in the organization’s strategic

planning and deployment processes Accountability using quantifiable measures Commitment to well-trained Lean Professionals throughout the

organization Ongoing process measurements using the “Benefit Tracker”

where measurements are closely linked to business and corporate goals

Lean project selection process with support to ensure selected projects succeed

Rewards and recognition programs linked to results


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Lean Training & Implementation Lean Training & Implementation ProgramProgramLean Training & Implementation Lean Training & Implementation ProgramProgram

• There are four major groups that require different levels of training and guidance in the implementation of Lean: – Level 1: Kaizen Team Members– Level 2: Kaizen Team Leaders – Level 3: Lean Leader– Level 4: Lean Champions:

• Executive Champions• Deployment Champions




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Lean Implementation RoadmapLean Implementation RoadmapLean Implementation RoadmapLean Implementation Roadmap

• Milestone Plan– M1 understand the corporate goals and vision– M2 define the site plans that support the company vision– M3 link site plans to corporate goals– M4 define current performance with linked metrics– M5 define desired target performances with linked goals– M6 define projects to close gap of current vs. Desired

performances– M7 prioritize projects– M8 define project charters with metrics– M9 define org responsibilities to support project structure– M10 create master program structure– M11 form teams GlobalizeGlobalizeGlobalizeGlobalize


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Lean Implementation RoadmapLean Implementation RoadmapLean Implementation RoadmapLean Implementation Roadmap

• Milestone Plan– M12 define resources requirements– M13 train teams– M14 standardize processes– M15 define team implementation plans– M16 launch teams– M17 link timing with benefits– M18 track implementation– M19 close projects as exit criteria is met– M20 audit results after teams disband– M21 archive results for reference– M22 define next level of performance targets



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Tracking the BenefitsTracking the BenefitsTracking the BenefitsTracking the Benefits

Identified

Implemented

Realized

?

? ???

$$

Project Project WeeksWeeks

100 -

200 -

300 -

400 -

500 -

700 -

600 -

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

800 -

900 - Implementation Management with

Continuous Improvement and Continuous Course

Correction

More Resources?

Improved Accountability?


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Control

Measure

Improve

Analyze

Process Maps Takt Calculation Demand Segmentation Process observation Interview

Data collection SPC MSA Observation y=f(x) process map

Multi-Vari DOE (Screening) Control chart ANOVA FMEA

Product / Process MatrixMulti-Cycle AnalysisActivity / Movement AnalysisTime Value Chart

Cell Design(Co-location)

Kanban / Pull Mixed Model Sequence Monument Management Line Balancing Cross-Training / Skill Matrix SMED

DOE (Optimizing) Training Change mgmt

Control plan SPC SOP

Performance to TAKT 5S discipline, Visual Control Standard Work Demand Telescope TPM Poke - Yoke

Lean ToolsSix Sigma Tools

Lean Tools

Tools SynergyTools SynergyTools SynergyTools Synergy


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SummarySummarySummarySummary

• Successful Strategies Include:– Strategic, Tactical, and Operational Components– Deployed Consistently Throughout– Actively Engaging All Employees on a Daily Basis– Focused on Creating Value for the Customer

• The tool set selection should not drive the implementation process and supporting systems

Building Better Companies by Building Better People

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