Creating a Continuous Improvement Culture

Creating a Continuous Improvement Culture

WebinarAugust 13, 2013

Welcome!• Argentina• Australia• Bermuda• Brazil• Canada• Finland• France• Great Britain (UK)

• India• Latvia• Netherlands• New Zealand• Spain• United States• Uruguay

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Coach / Facilitator / Consultant / Trainer: Lead Lean transformations & develop people across all industries.

Teacher: University of California, San Diego

Author & Speaker:

Karen Martin, PresidentThe Karen Martin Group, Inc.

www.ksmartin.com

3

October 2013 Shingo Prize winner!

© 2013 The Karen Martin Group, Inc. 4

Upcoming Webinars

• How Outstanding is Your Organization?: An Assessment– Tuesday, September 17, 2013 – 11:00 am‐12:15 pm– https://www2.gotomeeting.com/register/923117162

• Value Stream Mapping: Visualizing Work Flow and Aligning People for Organizational Transformation– Tuesday, October 8, 2013 – 11:00 am‐12:15 pm PT– https://www2.gotomeeting.com/register/151856458

• Improvement Facilitation & Coaching: An Open Forum– Tuesday, October 29, 2013 – 11:00 am‐12:15 pm PT– https://www2.gotomeeting.com/register/999232762


After the webinar…

• All recordings are available on:– www.vimeo.com/karenmartingroup– www.youtube.com/karenmartingroup– www.slideshare.net/karenmartingroup– www.ksmartin.com/webinars

• The materials are available on– www.slideshare.net/karenmartingroup


Key Topics

• The 4 conditions you need to create to build a continuous improvement culture.

• What continuous improvement looks and feels like.

• How to sell leadership on the management and leadership behaviors and skill development needs that lead to continuous improvement.


Kaizen

Kai = Change Zen = Good

Continuous Improvement: A Way of Life


Improvement needs to be part of

doing the work.


Continuous Improvement Classics

1982 1982 1986

Recent “Daily Kaizen” Books


The Toyota Way 2001• Respect for People

– Respect – We respect others, make every effort to understand each other, take responsibility, and build mutual trust.

– Teamwork – We stimulate professional growth, share the opportunities of development, and maximize individual and team performance.

• Continuous Improvement– Challenge – We form a long‐term vision meeting challenges with courage and

creativity to realize our dream. – Kaizen – We improve our business operations continuously, always driving for

innovation and evolution.– Genchi Genbutsu – We believe in going to the source to find the facts to make correct

decisions, build consensus, and achieve goals at our best speed.


Continuous Improvement: The Relentless

Pursuit of Perfection


New Ideas Generated, Tested, Refined, and Implemented by Everyone, Everyday, Everywhere


True Continuous Improvement

CHECK

CHECK

CHECK

ACT

ACT

ACT


What does Continuous Improvement

look and feel like?


Meet Menlo Innovations


One million ideas a year.


What’s it take to create a true C.I. culture?


Creating a C.I. Culture: Requirements

• Will• Skill• Authority• Guidance


You have to want it.


You have to develop an intrinsic belief that good enough never is.

We need to pass the improvement baton from the elite few

to the common many

23

Respect for People: Develop & EngageThe people who do the work are the experts.

24


Foster an environment of curiosity

“Why?”“Why not?”“What if?”


= Development


Requisite Knowledge & Skills• Value‐adding vs. non‐value‐adding• Three conditions to eliminate:

– Mura ‐ unevenness– Muri ‐ overburden– Muda ‐ waste

• Eight types of waste• PDSA/PDCA (Plan‐Do‐Study‐Adjust or Check‐Act)

– Including root cause analysis

• Process metrics– Process time– Lead time– % Complete & accurate

• Process mapping & process documentation


Detailed Steps

1. Define and break down the problem.

2. Grasp the current condition.

3. Set a target condition.

4. Conduct root cause & gap analysis.

5. Identify potential countermeasures.

6. Develop & test countermeasure(s)

7. Refine and finalize countermeasure(s).

8. Implement countermeasure(s).

StudyEvaluate Results

9. Measure process performance.

10. Refine, standardize, & stabilize the process.

11. Monitor process performance.

12. Reflect & share learning.

Adjust

Do

Clarifying the PDSA Cycle

PlanDevelop

Hypothesis

Conduct Experiment

Refine Standardize Stabilize

Phase

Continuous Improvement

New Problem

50‐80% of the total time


Root Cause Analysis: 4 Key Tools

CauseCause--andand--Effect DiagramEffect Diagram

Machine Measurement Environment

People Material / Info Method

Budgets Submitted Late

Lack of experience

Time availability

No sense of import

No stnd spread sheet

Email vs. FedEx

No standard work

Input rec’d late

Forecast in other system

Manual vs. PC

System avail.

No milestones

$ vs. units

Weather delays

Dispersed sales force

Changing schedule

Machine Measurement Environment

People Material / Info Method

Budgets Submitted Late

Lack of experience

Time availability

No sense of import

No stnd spread sheet

Email vs. FedEx

No standard work

Input rec’d late

Forecast in other system

Manual vs. PC

System avail.

No milestones

$ vs. units

Weather delays

Dispersed sales force

Changing schedule5 Why’s

Why? Why? Why? Why? Why?

P a r e t o Cha r t Cr e di t Appl i c a t i on De l a y s

2 9 0 9

6 2 7 5 6 1

2 4 2 1 8 0

2 4 9 3

4 1 %

7 7 %8 6 %

1 0 0 %9 7 %9 4 %

0

500

1000

1500

2000

2500

3000

3500

N o S i g n a t u r e I n s u f f i c i e n t

B a n k I n f o

N o p r i o r

a d d r e s s

C u r r e n t

C u s t o me r

N o C r e d i t

H i s t o r y

O t h e r

Re a son f or D e l a y

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Check Sheets Quantify Occurrences

|Equipment failure

|||||||||||||Changing customer requirements w/ no adjustment to expected delivery

||||||||||Order entry error

|||Staffing/absenteeism

|||||Quality issue requiring rework

|||||||Material shortage

Tally Reason

|Equipment failure

|||||||||||||Changing customer requirements w/ no adjustment to expected delivery

||||||||||Order entry error

|||Staffing/absenteeism

|||||Quality issue requiring rework

|||||||Material shortage

Tally Reason


Empowerment

Work: Degrees of Granularity

Value Stream

Process Process Process

Step StepStep

31

Micro Perspective

• Identify the tactical “how”

• Heavy frontline involvement

• Metrics‐Based Process Mapping

Macro Perspective

• Define strategic direction (“what”)

• Heavy leadership involvement

• Value Stream Mapping

You may need to draw them

out.


BoundariesLearning & development


Give every team member“Freedom with Boundaries”


Loosening the Reins

36

C.I. Essentials:Supervisors & Managers must become proficient

Process Managers & Improvement Coaches


How are you performing?

Gray – Highest industry quality scoresPurple – Median industry quality scoresBlue – Our quality scores


Daily Kaizen vs. Breakthrough Kaizen

(Kaikaku)


1. Increase sales 5%.3. Achieve 10% profit.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario COM Direct

CDs / AMs

PD Rec

PD Mgmt

BMD SWS

23,500 units sold by 12/31/2013 through al l channels (approx. $700K)

X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3

11 Develop & del iver tra ining to top 50 Dealers X X X X X X Bob Rex/Tim 3 3 3

21 Revised course materia ls by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2

5Education: 1 school dis trict spec'd/underperforming COM dis tributor (25) by 12/31 valued at min $35K each

X X X X X X X X X X X X Howard Michael S 1 3 2 3 3

810 new dea lers on board (net) ($500K per dealer this year)

X X X X X X X X X X X X Howard Mike B 2 3

95 new dis tributors bringing $200K annual rev (& 5 terminated)

X X X X X X X X X X X X Howard Howard 1 1 1 2 3

17 10 projects spec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3

29 20 by year‐end X X X X X X X X X X X X Howard Mark H 2 3 3 3

32 TBD X X X Howard Howard

33 TBD X X X X X X X X X Howard Howard

10Useful reporting and metrics are establ i shed and in place

X X Jim Randal l 3 1 1 1 1 1 1

30 TBD X X X X X Jim Josh 3

31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1

25 TBD Jim Shannon 3 3 1 1 1 1 1

26 System 7.0's in place X X X Jim Randal l 3 2 1 2 1

15100% accurate payrol l ; 100% management sati s faction at Apri l mgmt. meeting

X X X Josh Phyl l is 1 3

20Internet task l i s t i s s impl i fied and streaml ined for PDs then plan i s rol led out to PDs

X X X X Michael M Michael M 2 3 2 3

22Des ign Calculator i s updated success ful ly and rol led out

X X X Neal l Matt D 3 1 1 3 2 2 3

24 Competi tive Analys is complete and distributed for use X X X Neal l Dana 2 3 3 3 3 3 3

1 Des ign changed to solve delam i ssue long‐term X X X X X Susan David R 3 2 3

1230 parts sourced in U.S.; completed plan for managing China ‐sourced parts

X X X X X X Susan Shannon 3 3 2 2

13Warehouse la id out; kanban revised; Syspro implemented

X X X Susan Shannon 3

14 Lay out complete; equipment ins ta l led X X X Susan David R 3 3

X = Planned

2013 Priorities

2013 Goals & Objectives4. Improve morale (metric TBD).2. Achieve 50% gross margin. Created: 01‐14‐13

Revised: Level of Effort/Involvement Required

Priority Goal or Measurable Objective Exec Owner

Plan review dates:

Tactical Owner

● = Actual

< Company Name >

Conten

trem

oved

for con

fiden

tiality

Tie Improvement to Annual Strategy Deployment Plans

Tie Improvement to Future State Value Stream Maps

Referring Physician

% C&A = 85 %

Send Reports

(Imaging)

Cycle Time = 3 mins.% C&A = 90 %

6

Hospital

Schedule apptPre-register

Cycle Time = 11 mins.Lead Time = 45 mins.% C&A = 98 %

6

CT=Cycle Time LT=Lead Time %C&A=% Complete & Accurate

0.0833 hrs.

1 mins.

0.583 hrs.

10 mins.

0.333 hrs.

10 mins.

0.0833 hrs.

2 mins.

2 hrs.

15 mins.

7 hrs.

1 mins.

0.0333 hrs.

1 mins.

0.5 hrs.

3 mins.

LT = 11.3 hrs.

CT = 43 mins.CT/LT Ratio = 6.32%

Lead Time = 45 mins.Lead Time = 15 days

PrepPatient(Tech)


2

Check-inPatient

(Imaging)


3

CompleteExam(Tech)


2

TransmitImages(Tech)


2

Read/DictateExam

(Radiologist)


2

ReviewDraft/Sign

(Radiologist)


2

PrintReports

(Imaging)


220 mins. 5 mins. 120 mins. 420 mins. 2 mins. 30 mins.35 mins.

E Pay

Excel

Symposium

Internet

Waiting RoomManagement

System

Fax OrderSolutions

PACS

5 mins.

Set-upReduction

Remove Check in

and ReduceSystem Access

Work Balancing

StandardWork

Pull System(Supplies Kanban)

VisualWorkplace

Voice Recognition

Batch Reductions

5S

Co-locate

StandardWork

Work Balance

ContinuousFlow

Value StreamAlignment

Auto Fax 80% Us Mail 15%MD Mailbox 5%

Rolled First Pass yield = 40%

Rework Loop via Fax 10% of the time

Customer Demand:15 patients per Day

(Takt Time 1920 seconds)8 hours per day

123

4 5 6 7 8 9 10 11

Risk Reduction

(Joint Commision)

Meditech

Tie Improvement to A3s

41


Attaining Mastery

From The Outstanding Organization, p. 115


Skill Development Progression*

Unconscious Incompetence

Conscious Incompetence

Conscious Competence

* Commonly attributed to Noel Burch, Gordon Training International

Start Goal

Unconscious Competence

Consciou

sness

Competence

1 4

32


What you can do immediately no matter where you sit…

1. Make sure you know and are highly skilled in improvement basics.

2. Begin asking “why,” “why not?” and what if?” in every encounter/meeting.

3. Establish an improvement‐safe zone in your sphere of influence; quantify the number of ideas implemented.

4. Coach, coach, coach…and then coach some more.5. Quantify results when possible and broadcast,

broadcast, broadcast.


Upcoming Webinars

• How Outstanding is Your Organization?: An Assessment– Tuesday, September 17, 2013 – 11:00 am‐12:15 pm– https://www2.gotomeeting.com/register/923117162

• Value Stream Mapping: Visualizing Work Flow and Aligning People for Organizational Transformation– Tuesday, October 8, 2013 – 11:00 am‐12:15 pm PT– https://www2.gotomeeting.com/register/151856458

• Improvement Facilitation & Coaching: An Open Forum– Tuesday, October 29, 2013 – 11:00 am‐12:15 pm PT– https://www2.gotomeeting.com/register/229489922


Karen Martin, President7770 Regents Road #635San Diego, CA 92122

858.677.6799

[email protected]

For Further Questions

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Your Questions1. Are there unique challenges that exist with establishing

CI cultures in union workforces?2. Companies I worked for push Return on Investment as

the metric for gauging CI activities and culture effectiveness. Is this the best metric, and are there others that we should be looking at?

3. How long does it take to change a 125‐year old culture? 4. How do you recommend broadcasting successes and

making them relevant?5. Our division president wants to implement a long‐term

vision, whereas corporate seeks quarterly results. How do I interact w/ president & direct reports to ensure buy‐in?

6. What are things that a middle manager can to do drive Lean culture?

Creating a Continuous Improvement Culture

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