Educating People in Lean Thinking
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Transcript of Educating People in Lean Thinking
Educating People in Lean Thinking
Discussion Workshop
Dr Nick RichCardiff School of Management
Nick Rich: Career History‘A frustrated Engineer!’
• Associate Dean Cardiff School of Management– Centre for Lean Education, Application & Research CLEAR– Honorary Associate Professor Warwick Medical School– Chief Industrial Engineer (2012 Olympic and Paralympic Medal
Programme) – Co‐Founder at the Lean Enterprise Research Centre
• With Dan Jones– Toyota Motor Corporation Japan Senior Research Fellow
– UK Government Reports & 5 Books
Our Workshop• LEARNING• What do we need to learn to improve business performance through Lean
Thinking?• How do we apply the scientific method to our lean journeys?• How can we use Policy Deployment to learn the vital few performance gaps for the
organisation to close?• EDUCATING• What alternatives ways are there to deepen both our organisational and individual
skills to create value for customers?• How are the best lean organisations educating their people in lean?• How can we effectively coach, develop and mentor leaders and employees on the
job?• SHARING• What do we need to share with our people in order to sustain and further
improve?• How can we share and communicate our efforts?• What roles do Policy Deployment, coaching and the A3 process play in sharing?
What really works: The 4+2 Formula forSustained Business Success
• Professor Nitin Nohria, Harvard Business School– Most management tools have little effect on results– Why? No meaningful link between new techniques and long‐term performance
– There is a strong correlation with good management practices using tools to help achieve a particular objective
– There is danger in focusing too intently on the tool. It leads to losing sight of the long‐term organisational objectives
“Full speed in a least six critical areas”• All of the four primary features:
– a clear, focused, well‐communicated strategy– superb operational execution– a performance‐orientated culture– a flat, flexible organisational structure
• Plus two of the secondary features:– recruitment and retention of talented staff– strong demonstrable commitment from leaders– service transforming innovations– grow through mergers and partnerships
So Where Are You?
• Do you think at the system level or lower?
• Do you think beyond the current ‘voice of the customer’ and over the longer term?
• Optimised your current services?
• Prepared to compete now and in the future?
So What Do We Need?
• Policy Deployment to set direction• Value stream management• A3s to control the rate of change
• Operational Excellence, standard work, and kaizen for tactical improvement (supply chain)
• Education, training, coaching & Mentoring for sustainability
Impr
ovem
ent
Are
as
Performance Indicators Targets &
M
easures
Target ForDepartmental Mgrs
TOTAL £1.108m
Reduce Stocks
Reduce InspectionSupplier Evaluation System
Other 1
Plant Effectiveness
Other 2
£3.3 m-£2.75m
OEE 50 -85%
Direction 2
Ave 55% -87%
-50%
Direction 1
£550,000
£375,000
£133,000
£40,000
£10,000
DepartmentIn B
uffe
rs
In P
oor D
eliv
ery
In S
uppl
ier F
ailu
re
In O
pera
ting
Cos
t
In In
spec
tion
cost
s
P.PlanningM
anufacturing
Quality C
ontrol
Maintenance
Adapted From Merli 1996
JFMAMJJ2006
Policy Deployment X Chart
Value Stream Mapping VSM
The A3 Journey
Value Stream Transformation
FutureFocused Business Case &
Challenge
Mapping Indirect Processes• Lean should drive collaboration between departments
• Departments focused on value generation will become more effective
• Knowledge will flow between departments
• Sharing goes beyond the boundaries of the organisation chart
Basic Discipline SAFETY AND MORALE
QUALITY UP = COST DOWN
DELIVERY UP + QUALITY GOOD = COST DOWN
PROCESS FLEXIBILITY UP = COST DOWN
COST DOWN FOCUS (SCM)
TIME
The Competitive Keys For Complexity Exploitation
COST DOWN FOCUS (by Design)
EFFECTIVENESS
Mastering Your Operating System
Total Quality ManagementPractices and Problem
Solving by Teams
Toyota Production System And standardised work
Approach to flow
Total Productive MaintenanceAnd an approach to system
Reliability for interrupted flow
A Single Organisational System‐ Consensus‐
QUALITY DELIVERY
RELIABILITY
Total Quality Management Approach
Lean Production System Design
Total Productive MaintenanceApproach
Workplace OrganisationCANDO/5S
Visual ManagementTeams
Six Sigma Statistical Process Control Design of Experiments
Taguchi Methods
Early Equipment ManagementReliability Centred Maintenance
Level ProductionSupplier Pull SystemsCells & LayoutQuick Changeover
Problem‐Solving
Problem‐Solving Problem‐Solving
Autonomous MaintenancePlanned MaintenanceQuality MaintenanceOEE Analysis
Mistake Proofing
Standardised Work
Mistake ProofingMistake Proofing
BrainstormingCause and EffectPareto
QualityFocus Delivery
Focus
CostFocus© Nick Rich 2000
Healthcare Operating Models
Beyond The Shopfloor
Characteristics Old Model Lean ParadigmStrategy Planned EntrepreneurialStructure Hierarchy Cross-Functional/NetworkSystem Rigid or C.I. Flexible within boundariesStaff Title + Rank HelpfulStyle Problem-Solving TransformingSkills To Compete To buildShared-Value Better-Sameness Meaningful-DifferenceFocus Process Management Institution and networkSource of Strength
Stability – Reduce Costs
Change and rate of adaption/Innovation/Profit
Leadership Dogmatic Inspirational/Listening
The ‘Glass Ceiling’
Business Results
TIME
Full Potential
The Improvement Stall Point 1
Profit Glass
Ceiling
Problem Solving
Doing Job
ProfitabilityGrowth &Innovation
Value StreamMapping
The Improvement Stall Point 2
DESIGN
• Value does not keep rising as you optimize processes
• You cannot rely on being just a bit better –you win orders and deliver value in a different way
• We believe we need knowledge workers and remain in buying graduates and retraining mode
• Some organizations believe we need boundary spanning workers
• Why compromise? Training and Education
Our Operating Models Will Fail!
Organisational Competence: There is a difference
64%
66%
67%
67%
74%
74%
75%
75%
63%
64%
64%
64%
50% 75%
Foreign languages
Self-direction/Lifelong learning
Written communications
Ethics
Work ethic
Oral communications
Leadership
Handling diversity
Creativity/Innovation
Teamwork/Collaboration
Information technology application
Critical thinking/Problem solving
Percent of employers who believe skill will become more important over next five years
Broad competencies: Employers expect them to become more
important
Source: Conference Board. (2006). Are they really ready to work? (p. 49, Table 12)
Time to Change Current
RoleTraining
Reporting & Auditing
Checking and
expediting
Problem Resolution
Data Chasing
NeededRole
business effectiveness Projects
Multi‐skilling to absorb new work
demands
RESEARCH
Cross functionalTeams QCD Focus
Training
Data Chasing
Valuable New
Activities
Adapted Sony Corporation
Supply chain specialists, Schedulers, designers, marketeers, and maintainers!Senior Management too!
Training and Education: The Differences
• Objective– Training—to improve job skills and performance– Education—to improve knowledge not connected to a job (a system)
• Focus– Training—about learning “how” to do things – Education—about learning “what” underpins doing
• Time Period– Training—short‐term and immediate– Education—long‐term and annuity
Educating People in Lean Thinking
Let’s start talking about the business model
Are You Hollowing Out The
Competitive Advantage of Your
Business or Client?
Operational focused training?
Education and knowledge?
Which type of employee?Why do they need it?
Who Needs Educating In Lean
Thinking?
REACTIVE
CONDUCTINGROUTINEWORK
PREVENTPROBLEMS
50%
100% PROJECTS
CONDUCTINGStandard
OPERATIONS
50%
100%IMPROVEMENT
PROJECTS
5S Autonomous Work
The middle Management‘Systems designers’
Specialists
Associates
Executive Management‘Direction Setters’
Who Knows How and What?
Education & Training Investment
Executives
Managers
Teams
Specialists Specialists
OrganisationalLevel
TopProfessionals & Executives
Department and section managers
Team Leaders
Associates
Key Contribution
Improvement
Innovation
Daily Maintenance
Source: adapted from Toyota Motor Corporation (Japan)
Engagement & Meaning
Peculiarly British Disease?“Hello, My name is John and I am an actuary. I currently work for ABC Actuaries”.
What does that tell you about John?
What does John Value? How important is his role in an organisation?
Quality
ConstancyOf
Purpose
Break DownDepartmental
Barriers
Cease Doing Business On Price Alone
CreateLeadership
Drive Out Fear & ReportProblems
On The Job
Training
ExceedExpectations
Continuously Improve
EliminateSlogans
Create PrideIn Work
EliminateQuota Thinking
Adapted from Deming !
Not Very Impressive Progress! TQM
Where’s the gap?
Laboratory Staff
Maintainers
Trainers
H&S Staff
Which type of employee?Why do they need it?
Who Needs Educating In Lean
Thinking?
What Are The Barriers To Knowledge Transfer?
What Are The Enablers?
More collaboration in the workplace
In top 1,000 companies:Use of self-managing work teams rose from 28% in 1988 to 65% in 2005.
Work teams are increasingly global.
Teaching & Facilitating
• Teaching/Education – 1‐2‐1 or in groups involves telling (teacher leads)– Subject matter expert– Basic knowledge that underpins the business– Measured output
• Facilitation– Helping individuals and groups learn (to achieve an objective)
Barriers and Enablers?
• What prevents you from educating staff?
• How many staff would you need to have a critical mass to match your business competence?
• What would enable staff to maintain their knowledge?
In What and How Should We Educate?How do we engage with
them?What interest would they have in lean?Why haven't they engaged so far?
Mentoring
• A relationship between a more experienced staff member and to help a less experienced individual learn to be effective in their role/future role
• The mentor uses their experience and network of contacts to advise and develop the other person.
• A mentor is a learning role model
A coach is someone to learn with – the coach helps the individual to reflect and learn from their experiences/build
models with the individual. Someone to learn with.
The Best Use of Coaching• Developing leaders• Support during lean transformations• For key staff when undergoing individual change
• Implementing new skills and lean practices (cultural and behavioural change management)
• Improving team learning especially for ‘indirect’ staff
• Increasing organisational learning
The GROW Coaching Model
Will and Commitment
Goal
Reality
Options
Whitmore, Sir John, 2009, Coaching For Performance. (4th Edition), Nicholas Brearley Publishing
Experiential Learning Cycle
Adapted from Kolb D.A. (1984) 'Experiential Learning experience as a source of learning and development', New Jersey: Prentice Hall
ConcreteExperience
Reflective Observation
Abstract Conceptualisation
Active Experimentation
Effective Educational Programmes
• John Bicheno Lean Enterprise MSc Programmes
• 20Twenty Programme• Sector Skills Pilots• Healthcare Improvement (Accredited) Programmes
• Corporate Degrees and distance learning degrees (Undergraduate and Masters)
• Professional Doctorates
Education At Sea
Introduction & Initial ThemeTHEME 2:The NHS: Political Context and Making a Difference
THEME 4: The Principles of Service Improvement THEME 5: Defining Your
System/Lean Principles
THEME 3: Leadership that makes a difference
THEME 6: The Distinction Self
Thought Leadership Seminar 1
Initial Identification/Review of Participants OD Project
BlockOne: Day1
BlockOne: Day2
Reflection and Practice 1 MonthIntroduction & Review/PreviewTheme 7: Mapping Your System
Theme 9: Problem Solving Theme 10: Intervention Management (A3)
Theme 8: Evaluating and Identifying with Leadership Styles
Theme 11: Creating Capacity/Personal Change
Thought Leadership Seminar 2
Reflection and PracticeIntroduction & Review/PreviewTheme 12: Measuring Success
Theme 14: Lean Solution Management
Theme 13: Creating Capacity/Organizational Change
Participant OD Project Posters Agreement of Co‐Coaching Partnerships
Thought Leadership Seminar 3
Reflection and Practice
Introduction & Review/PreviewTheme 15: Creating Communities of Best
Practice
Theme 17: Complex Adaptive Leadership Master Class
Theme 16: High Performance Coaching
Theme 17: Complex Adaptive Master Class (Plenary)
Thought Leadership Seminar 4
Reflection and Practice
Introduction & Review/PreviewTheme 18: Structures & Sustainability Participant Presentations (4 Groups) Participant Presentations (4 Groups)
Critical Reflections: Sustaining & Embedding Practices Graduation
Sustainable Change
BlockTwo: Day1
BlockTwo: Day2
BlockThree: Day1
BlockThree: Day2
BlockFour: Day1
BlockFour: Day2
BlockFive: Day1
BlockFive: Day2
0900 to 1230 1330 to 1600 1730 to 1830
Refining and Agreeing Participants OD Project
Summary and Your Organizational Audit
Thank You!
• Know how and Know why
• Learning and levels:– Do it right – Do it better – Do it differently
• What about your operating model?