Jeffrey liker - Conference on Lean Leadership

Liker, Lean & Leadership

Processes

Conference on Lean Leadership

2013 – Process Improvement

2

Liker, Lean & Leadership Program

10:15 – 10:30 Short Coffee Break

09:10 – 09:30 Viewpoint & Motivation Michael Leck, Implement Consulting Group

09:30 – 10:15 Novo Nordisk Lean Leadership Program Claus Hasselbalch, Novo Nordisk

11:30 – 11:55 Input from Audience & Reflections by Liker Jeffrey Liker, Liker Leadership Institute

10:30 – 11:15 Developing Lean Leaders the Toyota Way Jeffrey Liker, Liker Leadership Institute

11:15 – 11:30 Exercise – where are we today?

11:55 – 12:00 Wrap-up Michael Leck, Implement Consulting Group

12:00 – 12:30 Light Lunch & Networking

Welcome & Program 09:00 – 09:10

3

Viewpoint & Motivation Michael Leck

4

Novo Nordisk Lean Leadership Claus Hasselbalch

The A

pis

bull lo

go is

a re

gis

tere

d tra

dem

ark

of N

ovo N

ord

isk A

/S

Novo Nordisk’s cLEAN® journey

Claus Hasselbalch

Corporate Vice President

May 31st, 2013

Lean Leadership

at Novo Nordisk

1. Novo Nordisk

2. Our Lean Journey

3. PS@shopflor, focus on shopfloor leadership

4. Drivning a culture of continous improvements through leadership

• A world leader since 1923

• in diabetes care

• in insulin

• in injection devices

• Also leading positions in:

• Haemostasis Management

• Growth Hormone Therapy

• Hormone Replacement Therapy (HRT)

• Headquartered in Denmark, Novo Nordisk employs approximately 34,700 employees in 75 countries, and markets its products in 190 countries.

Slide no 7

The ‘Rule of Halves’

According to the rule of halves*, only around 6% of people with diabetes live a life free from diabetes-related complications.

* Hart J.T., Rule of Halves: implications of increasing diagnosis and reducing dropout for future workload and prescribing costs in primary care, Br J Gen Pract 1992, March; 42(356):116–119, and W.C.S. Smith, A.J. Lee, I.K. Coombie, H. Tunstall-Pedoe, Control of blood pressure in Scotland: The rule of halves, Br. Med. J, 300 (1990): 981–983. ** Actual rates of diagnosis, treatment, targets and outcomes vary in different countries.

Slide no 8

• Responsible for the supply chain of all products sold by Novo Nordisk

• Approximately 30% of all Novo Nordisk employees

• Denmark: ~6.5000employees

• Outside Denmark: ~3.000 employees

• Product Supply has facilities in 6 countries across the globe

Montes Claros

Clayton Chartres

Denmark

February 2012

*FTEs: Full Time Employees

** Full time employees & temps

Tianjin

6.320 FTEs*

810 FTEs*

520 FTEs*

680 FTEs*

• Device manufacturing • Packaging • Filling plant project

120 FTEs**

790 FTEs*

• Formulation & filling • Assembly • Packaging



• API production • Formulation & filling • Tabletting • Assembly • Packaging • Device & needle manufacturing

• Packaging

Koriyama

10 Product Supply - cLEAN® strategy 07 June 2013

Time

Perfo

rm

an

ce

2003 - 2004 2005 - 2006 2007 - 2008 2009 - 2010

cLEAN® House

cLEAN® Temple

COGS Plans

cLEAN® Leadership

Site Plans

cLEAN® Roll-out

Academy

Flow

Adrenalin Shots

Master 3star Flow

Pilots

2011 - 2012

Cont. impr. Wheel

PS@SF

Slide no 10

Slide no 11

Slide no 12

PS@ShopFloor - from fire fighting to continuous improvements culture

See

Identify problems early

Identify problems late

Solve

Remove the root cause of the problem

Fight symptoms

Share

Anchor learnings in the organisation

Memorize solutions Fire fighting culture

Continuous Improvement

s

Slide no 13

Slide no 15 Slide no 15

PS@ShopFloor is an intense coaching driven 14 weeks development and implementation project

Maturity Mapping & Data Analysis

Problem solving

Process confirmation

Performance Board

WS4: System for process confirmation defined

1 3 7 10

WS2: KPI structure is updated

WS3: Training in systematic problem solving

14

WS1: Daily Diary planned and 3C introduced

See

Solve Share

Level 1 Level 2 Level 3 Level 4

Ad hoc Systematic Consistent Empowerment

Employee

preparation

Relevant subjective experiences

selected

Objective facts identified through

data digging

Biggest problem identified using data

analysis

Possible actions written on board

before meeting

Leader role

at meeting

Leader give relevant but non-KPI

related information

Leader ask questions to improve

explanation of data

Leader ask questions to ensure

problems will be addressed

Leader ask questions to improve the

proposed solutions

Outcome of

meetingInformation exchange

Focus on data explanation. Actions

taken on some problems.

Actions taken consistently to address

problems

Actions taken to improve problem

solving

Concern Leader address Concern by coincidenceLeaders choose Concern at board

meeting

Leader prioritize concern based on

business criticality

Employees initiate 3C based on

frequent performance review

CauseCause analysis only based on

assumptions not made on shop floor

Go-look-see performed to understand

Point-of-Cause (PoC)

Potential Direct Causes investigated

with employees

Employees drive 3C to PoC and

leaders coach to find direct cause

Counter-

measure

Solution based on best guess

(e.g. adjust and hope)

Only Containment action taken,

meaning problem may reoccur

Countermeasures prevent the

particular problem from reoccurring

Countermeasures prevent similar

problems from (re-)occurring

Sharing Leader try to remember solution Solution shared verbally

(e.g. at board meeting next day)

Solution anchored in area across

shifts (e.g. 1PL, Poka-Yoke)

Solution anchored in other areas with

similar problem

PreparationLeader Process Confirm on an ad hoc

basis

Systematic trigger mechanism for

when to do PCPC based on explicit standard

Leaders identify opportunities to use

PC to develop employees

ExecutionPC is done away from shop floor and

based on asking questions only

PC is done by asking questions on

the shop floor

PC is based on observation on the

shop floor

PC is based on observing the person

doing different processes

Deviation

responseAction agreed verbally Written action to solve deviation

Explanation of reason why particular

standard is important

Deviation is treated as a 3C

(at level 3+)

Leader

roleLeader ask questions to get information Leader use interaction to set direction

Leader give feedback to create

reflection

Leader ask questions to inspire

continuous improvement

Daily

Dia

ry Leader

behavior

Leaders have individual criterias for

when to place meetings and activities

A synchronized daily diary exist and

each leader try to follow it

Leaders and support functions adhere

to the daily diary

Leaders train employees in freeing up

time to problem solve

cLEAN®

Leadership

Maturity Model

Perf

orm

ance B

oard

3C P

roble

m S

olv

ing

Pro

cess C

onfirm

ation

Sustainability


The purpose of the Daily Diary is to allow leaders to have dedicated time to see problems early, solve them to root cause level and share solutions systematically at the shop floor.

This will Strengthen our culture of continuous improvements.

Slide no 16

08:00 10:00 12:00

Performance Boards to see problems early in the process

Problem Solving to solve problems to the root cause

Process Confirm to share learnings systema-tically

- Leaders on shop floor 8:00-12:00

Roles & Responsibilities in a PS@Shopfloor

Coach: Supports and challenges the leader in his/her development. Helps leader to navigate to keep on track.

Leader’s leader: Sets direction and guides through process confirmation. Motivates to continuously improve.

Leader in scope: Works with Performance Boards, Problem solving and Process confirmation (See-Solve-Share) in the Daily Diary related to training plan

Employees: Are involved as KPI-champions, problem solvers and developed through process confirmations

LEADER

LEADER's LEADER

COACH

Slide no 17

A detailed Maturity Model guide the leaders and ensure focus on personal development

Slide no 18

Level 1 Level 2 Level 3 Level 4

Ad hoc Systematic Consistent Empowerment

Employee

preparation

Relevant subjective experiences

selected

Objective facts identified through

data digging

Biggest problem identified using data

analysis

Possible actions written on board

before meeting

Leader role

at meeting

Leader give relevant but non-KPI

related information

Leader ask questions to improve

explanation of data

Leader ask questions to ensure

problems will be addressed

Leader ask questions to improve the

proposed solutions

Outcome of

meetingInformation exchange

Focus on data explanation. Actions

taken on some problems.

Actions taken consistently to address

problems

Actions taken to improve problem

solving

Concern Leader address Concern by coincidenceLeaders choose Concern at board

meeting

Leader prioritize concern based on

business criticality

Employees initiate 3C based on

frequent performance review

CauseCause analysis only based on

assumptions not made on shop floor

Go-look-see performed to understand

Point-of-Cause (PoC)

Potential Direct Causes investigated

with employees

Employees drive 3C to PoC and

leaders coach to find direct cause

Counter-

measure

Solution based on best guess

(e.g. adjust and hope)

Only Containment action taken,

meaning problem may reoccur

Countermeasures prevent the

particular problem from reoccurring

Countermeasures prevent similar

problems from (re-)occurring

Sharing Leader try to remember solution Solution shared verbally

(e.g. at board meeting next day)

Solution anchored in area across

shifts (e.g. 1PL, Poka-Yoke)

Solution anchored in other areas with

similar problem

PreparationLeader Process Confirm on an ad hoc

basis

Systematic trigger mechanism for

when to do PCPC based on explicit standard

Leaders identify opportunities to use

PC to develop employees

ExecutionPC is done away from shop floor and

based on asking questions only

PC is done by asking questions on

the shop floor

PC is based on observation on the

shop floor

PC is based on observing the person

doing different processes

Deviation

responseAction agreed verbally Written action to solve deviation

Explanation of reason why particular

standard is important

Deviation is treated as a 3C

(at level 3+)

Leader

roleLeader ask questions to get information Leader use interaction to set direction

Leader give feedback to create

reflection

Leader ask questions to inspire

continuous improvement

Daily

Dia

ry Leader

behavior

Leaders have individual criterias for

when to place meetings and activities

A synchronized daily diary exist and

each leader try to follow it

Leaders and support functions adhere

to the daily diary

Leaders train employees in freeing up

time to problem solve

cLEAN®

Leadership

Maturity Model

Perf

orm

ance

Board

3C P

roble

m S

olv

ing

Pro

cess

Confirm

ation

Slide no 19 Slide no 19 Slide no 19

Preconditions for a level 4 Performance board

Shopfloor management

KPI Ch: TPU blockage caused 6 x 30 min stop TL: Let’s go-look-see to prevent re-occurrence

Fire fighting

E: Mark was ill and the machine kept stopping TL: Lets put full focus on getting back on track

Visual management

KPI Ch: TPU blockage caused 6 x 30 min stop TL: Fortunately we don’t see the problem now

Create army of problem solvers

OC: Untrained empl. caused 30 min. stop (1PL) TL: Could we make mistake-proof solution?

Lean culture

OC: 2 min stop: Poka-Yoke made to prevent block TL: Would this Poka-Yoke be useful elsewhere?

2 1 3 4 5

E: Employee, KPI Ch: KPI Champion, OC: Operating Coordinator, TL: Team leader, TPU: Tray-pallet unit

• Performance is reviewed frequently beyond the board meeting

• Problems are solved autonomously at the lowest possible level

• Countermeasures are implemented to prevent reoccurrence

• PB meeting challenges priorities and improves quality of countermeasures

http://www.sikkerhedseksperten.dk/videncenter/images/stories/brandslukker.jpg

PS@ShopFloor project in site Montes Claros

In a department with production lines not meeting performance targets, packaging lines performing 35% below target, and a new department manager—a different way of doing business was needed in order to succeed

What did we do? The ambition was to lower the variation in OEE on the FlexPen® lines to match the best in class in DFP.

New standards were the foundation to execute the first PS@ShopFloor project in MoC.

The project was executed by a PM from the cLO and dedicated resources from the site—who were trained to manage future PS@ShopFloor projects.

What was the impact

Ken Gray (KEG) SVP cLEAN® Partner

DFP

FlexPen® Packaging line Variation in OEE1 reduced by 2/3 OEE 1: 44% -> 89 %

“This PS@ShopFloor project unleashed the power of standardization, moving their performance from ‘worst to first’. Through coaching, leaders learned how to change the way they see and solve problems, with confirmation of the standard as the key to it all.”

Slide no 21

• ”We have leading KPI’s on our most important processes”

• ”We have the possibility each day to give our attention to our

biggest problem(s)”

• ”We have a systematic approach to problem solving”

• ”We learn from our problems”

• ‘I have closer contact with my employees”

• “My Role changed from ”problem solver” to coaching and sparring”

• ”When I drive home from work, I feel much more satisfied!”

• Defining a business driver is key for the individual project success

• But ensuring we stay at obtained maturity levels or further develop after project has ended is not institutionalized

• We need more focus on the “why”, the principles behind, so that the tools do not become an end in themselves

• Understading the role of the different leadership levels in Lean Leadership is part of the solution

• A culture may be built from below but is modelled from above:

• Leadership principles and behaviour at the top drive systems that drive use tools that drive behaviour on shopfloor

• SO how leaders from the top behave drives the culture of continous improvements, respect, compliance etc.

• and the leadership role is different at senior level vs. TL level

• The senior leader should stay away from shopfloor problem solving!!

Slide no 23

QVP Seminar 2013 - Chartres

Slide No 24


To succeed two questions become critical as leaders to address:

How am I role modelling principal behaviour? How am I through my leadership supporting continous improvements on shopfloor

Slide no 25

Culture

Principles

Systems

Tools

• “We set ambitious goals and strive for excellence”

• “We optimise the way we work and strive for simplicity”

• “We never compromise on quality”

• We treat everyone with respect”

• Ensuring quality and progression in our A3s across teams

• Ensuring that we have ressources and competencies present to solve our problems

• Ensuring that we see and prioritise the right problems daily across teams

• Using performance boards to take actions on problems within the team

• Using SPS to solve problems within the team

• Using process confirmation to ensure standards are followed and improved within the team

Slide no 26

TL

VP/ Director

CVP/ SVP

Results

Slide no 27

Slide no 28

Operations Operations

Degre

e o

f auth

enticity

Degree of Lean

Slide no 28

’The incompetent manager’

’The micromanager’ ’The corner office manager’

Q and A

30

Coffee break

BE BACK: 10:25

31

Developing Lean Leaders the Toyota way

Jeffrey Liker

Liker Lean Advisors, LLC

Developing Lean Leaders the Toyota Way

Jeffrey K. Liker Professor, Industrial and Operations Engineering The University of Michigan

President, Liker Lean Advisors CEO, Liker Leadership Institute

ICG OPEX Conference May 31, 2013

Toyota Way True North

“The Toyota Way

2001 is an ideal,

a standard and a

guiding beacon

for the people of

the global Toyota

organization.”


Lean Leadership Starts with Values

TRUE NORTH VALUES Challenge

Kaizen Mind

Go and See

Teamwork

Respect

Stretch and Develop Us to Creatively Reach the Goal

Systematic Problem Solving that Never Ends

Observe to Understand the Actual Situation

Highly Developed Individuals Working toward a Goal

People are our only appreciating asset

Lean Leadership Development Model

3 Support Daily Kaizen Build local capability throughout for daily Management & Kaizen

2 Coach and Develop Others

4 Create Vision and Align Goals

Create True North vision and align goals vertically and horizontally

1 Commit to Self Development Learn to live True North values through repeated Learning Cycles


Kaizen Mind

Go and See

Teamwork

Respect

P D

C A

P D

C A

P D

C A

P D

C A

See and challenge true potential in others though self-development learning cycles

Starts Here


PDCA Problem Solving is the Core of What Leaders should Learn and Coach

From Toyota Way to Continuous Improvement


Lean Processes reveal gaps between Current and Target Conditions

Ideal “North Star”

Targets for Improvement

Leader’s Challenge

Creative Tension Problem solving

Current conditions

Challenge: Reduce U.S. Warranty $ at 3 Months in Service by 60% in 6 Years How do you do it?

Percent Annual Warranty Reductions








Kaizen Mind

Go and See

Teamwork

Respect

P D

C A

P D

C A

P D

C A

P D

C A


What is Leader Standard Work? • The repetitive activities are designed to

identify abnormal situations like: – Non-standard work – Non-standard labor – Non-standard inventory – Non-standard output

• This is done where the work takes place, “The GEMBA”

• Organized, Visual Management helps leader see abnormalities

Mai

nt

Shi

ppin

g R

ecei

ving

HR

CSR

Finance

Plant Mgr

Engr

War

ehou

se

Deep Dive

Today

Asset Management

Board

Hiring Plan

TPM Sheets

Kanban

Vendor Support

Std Work Sheet

Process Performance

Board

Example of a daily round for management

41


Leader Standard Work is a necessary step in the beginning stage until leaders develop so it is “the way they think and act”

42








Kaizen Mind

Go and See

Teamwork

Respect

P D

C A

P D

C A

P D

C A

P D

C A



Ideal TL:TM Ratio= 1:5 Group Leader (GL) = 1st level of management Team Leader (TL) = Alternates working production and leadership roles. Team Member (TL) = Production worker

TM TM TM TM TM

Team Leader

TM TM TM TM TM TM TM TM TM TM TM TM TM TM TM

Notes

Toyota Work Groups at the Heart of Continuous Improvement

Team Leader

Team Leader

Team Leader

Group Leader


Continuous Improvement means a little better every day:

Visual Management Boards for Each Work Group (Toyota, Kentucky)


Case Example: Menlo Innovations Building a “lean” culture the right way


Technical Anthropologists: Customer Requirements

• Observe People – In their native environment

• Find the pain points • Be the empath! • Understand what they

may take for granted • Initial Mock up user screens

Storycards • Write it down (uh oh! Not paperless) • Description of work to be completed for one feature • Writing a card does not “authorize” it. • Collection of cards is potential project scope

Estimation

Customers rule, but must actively collaborate

What are they willing to pay for? Participate in weekly reviews

Work Authorization Board The daily work schedule

Simplicity & clarity!

The joy of getting things done!

• As work time actual completion of each card

• Red, green, yellow

Coding in Pairs, Working in Teams

• Code only in pairs: collaboration, peer accountability, and cross-pollination of knowledge.

• Pairs rotate every week: no “towers of knowledge”

• No owned space: find a computer









Kaizen Mind

Go and See

Teamwork

Respect

P D

C A

P D

C A

P D

C A

P D

C A


Hoshin Kanri Climbing the Mountain Together

MBO Seeing the Surface

Hoshin Kanri Climbing the Mountain Together


What is a Lean Leader?

• Manages from the gemba

• Coaches and teaches – Technical skills to do job

– PDCA mindset

• Understands each person: strengths and weaknesses

• Breaks down tasks to give people appropriate assignments: achievable and challenging

• Teaches by questioning, not telling

• Builds trust

• Lives the Values!

We Care! We

want you to be

your best!

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Exercise: Where are we today?

58

Where are we today?

Please gather in smaller groups of 3-4 persons from around you. Spend 15 minutes discussing the presentation on “Developing Lean Leaders the Toyota Way”: 1. What key insights did you hear? 2. What are the gaps between your current

situation and what you just heard? 3. Right now, what would be an obvious

best special focus for you and your organization during the coming year?

Prepare one key issue or question that you would like to address and discuss with Mr Liker. We will choose 3-4 topics or as many as time allows.


3 Support Daily KaizenBuild local capability throughout for daily Management & Kaizen



Create True North visionand align goals verticallyand horizontally

1 Commit to Self DevelopmentLearn to live True North values through repeated Learning Cycles

TRUE NORTHVALUESChallenge

Kaizen Mind

Go and See

Teamwork

Respect

PD

CA

PD

CA

PD

CA

PD

CA


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Input from Audience & Reflections from Jeffrey Liker

Jeffrey Liker

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Wrap-up Michael Leck

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Join this year’s Lean Architecture Tour – an exclusive learning experience in Japan from 28 September to 5 October 2013

The core concept is to gather 15-20 senior managers from various companies and industries who are all driving ambitious operational transformations. Together, we will visit several hand-picked Lean benchmark companies in Japan, share our experiences and discuss how we take our Lean implementations to the next level. The program will allow you to: • Make real-life observations of the interplay of technical and cultural aspects

of Lean implementations • Understand very different operating models – why have they been

successful in building a sustainable competitive edge? • Engage in discussions with Japanese senior management

to understand their leadership role • See world-class examples of continuous improvement

infrastructures and understand what makes them thrive

DEEPEN YOUR LEAN EXPERTISE IN JAPAN THIS AUTUMN

Toyota RICOH TSK Yazaki Mirai

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Thank You & Goodbye …

Contacting Implement Consulting Group

Learn more about how we work with Lean

Go to Implement Consulting Group's main website

http://www.implementconsultinggroup.com/your-challenges/lean-thinking/

http://www.implementconsultinggroup.com/

Jeffrey liker - Conference on Lean Leadership

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