The Lean Handbook A Guide to the Bronze Certification Body of Knowledge Anthony Manos and Chad Vincent, editors ASQ Quality Press Milwaukee, Wisconsin American Society for Quality, Quality Press, Milwaukee 53203 © 2012 by ASQ All rights reserved. Published 2012 Library of Congress Cataloging-in-Publication Data The lean handbook / Anthony Manos and Chad Vincent, editors. p. cm. Includes bibliographical references and index. ISBN 978-0-87389-804-1 (alk. paper) 1. Total quality management. 2. Industrial efficiency. I. Manos, Anthony, 1963– II. Vincent, Chad. HD62.15.L4324 2012 658.4’013-dc23 2012010040 No part of this book may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Publisher: William A. Tony Acquisitions Editor: Matt Meinholz Project Editor: Paul Daniel O’Mara Production Administrator: Randall Benson ASQ Mission: The American Society for Quality advances individual, organizational, and community excellence worldwide through learning, quality improvement, and know ledge exchange. Attention Bookstores, Wholesalers, Schools, and Corporations: ASQ Quality Press books, video, audio, and software are available at quantity discounts with bulk purchases for business, educational, or instructional use. For information, please contact ASQ Quality Press at 800-248-1946, or write to ASQ Quality Press, P.O. Box 3005, Milwaukee, WI 532013005. To place orders or to request a free copy of the ASQ Quality Press Publications Catalog, visit our website at http://www.asq.org/quality-press To Jennifer, who puts up with all my antics. To Judy, who taught me her version of continuous improvement “Do not rest on your laurels” And to George, for supporting me and for helping me reach a higher level of accomplishment. —Tony Manos To my wife, Holly, and my kids, Austin and Miranda, who gave up their time with a husband and father to make this book possible, and whose continued support provides me strength to pursue my dreams. —Chad Vincent Foreword Robert D. Miller Executive Director The Shingo Prize for Operational Excellence Jon M. Huntsman School of Business Utah State University T he Lean Handbook is a terrific compilation of sections written by practitioners who bring their individual and unique experience and expertise to this body of knowledge. I appreciate the connections made with many of the dimensions and principles identified in the Shingo model. We must each be on a journey of continuous improvement, which means we must be constantly looking for new perspectives and approaches to bring about personal and organizational improvement. Anthony Manos is correct when he says that the most difficult and yet important work we will do with lean is to change the culture of the organization. For lean to be successful, the many tools outlined in this handbook must be supplemented with an equally devoted effort to influence the mind-sets and behaviors of people in the organization. At the Shingo Prize we have learned that the best way to do this is to, as Stephen Covey would say, “begin with the end in mind” In other words, while you are learning to use these great tools, you must also keep the deeper meaning, or the “why” behind the tools, very clear. The Lean Handbook can help each of us act our way into a new way of thinking, and then think our way into a new way of acting. By putting the wisdom of this handbook to work every day by every person and never taking your eyes off the prize a new culture that is deeply embedded in the principles of lean we will greatly increase the odds of a sustainable business transformation. As you put this work into practice, you will recognize the shifting roles of leaders and managers in your organization. It is not enough for leaders to just keep doing what they have always done, nor is it enough for them to merely support the work of others. Rather, leaders must lead the cultural transformation and build the principles behind all of these great tools into the mind-sets of their associates. Similarly, managers have to do more than participate in kaizen teams. The emerging role of managers is to focus on designing, aligning, and improving the systems of the business so that they drive ideal behaviors that cause people to change their thinking of what excellence really looks like. Using The Lean Handbook as a roadmap will no doubt be a powerful tool in helping you avoid many of the mistakes made by others over the years. I invite you to visit http://www.shingoprize.org to see how the key points illustrated here support the Shingo model for operational excellence. My thanks to all of the contributing authors! Preface WELCOME TO THE LEAN HANDBOOK What a remarkable journey this has been. Working on this book has been a terrific experience. We have had the great pleasure of working with a number of wonderful and giving individuals. Lean practitioners are truly an amazing and unique family. The energy and willingness of the individuals who helped create this book are evidence of the great profession and network of people of which we take part. So many different points of view and applications of knowledge made for great discussions, contemplation, and collaboration. With so much knowledge and understanding, it was difficult to find a point at which to stop talking and start putting these discussions on paper. In the end, we believe this book embodies the Lean Body of Knowledge (BOK) in a way that is much like the lean journey ever evolving and always adaptable. Lean has been a culmination of multiple individuals, philosophies, systems, tools, and applications throughout history. The challenge has been that all these different contributions are found in different places, called different things, and applied in different manners-making it difficult for the lean practitioner to gain an understanding of lean at a level of its full body of knowledge without great effort, research, experience, and networking. While this book is not a substitute for the effort, research, experience, and networking every seasoned lean practitioner goes through, we hope it provides a sound starting point for those just beginning or expanding their knowledge of lean. NOT AN EXAM PREPARATION MANUAL First and foremost, this book is not a Lean Certification exam preparation manual. The Lean Bronze Certification exam questions are based on material from the five recommended reading books (see Appendix B, “Recommended Reading List for Lean Certification Exam Preparation”): Learning to See Lean Thinking Gemba Kaizen Lean Production Simplified Lean Hospitals Make no mistake this book takes nothing away from the great lean works that have preceded it. As a matter of fact, we believe that this book complements and pays tribute to those works as being pieces of the larger Lean BOK. But that is exactly what they are pieces. Our intent was to put these pieces together in a manner to provide a higher-level overview of the Lean BOK. We realized early on in the project that this task was not something we could do alone. This handbook’s intention is to gather information related to the Lean BOK (see Appendix A, “Lean Certification Body of Knowledge”) into one source. This book will enhance your understanding of the BOK as a whole and give you a more holistic look at lean. As great as the five recommended reading books are, they were not written with the intent of covering all aspects of the Lean BOK individually. Additionally, this book does not rehash the content of the five recommended reading books. What we have done is put together a book whose sole purpose is to embody the entire Lean BOK, section by section. This book is, by design, written at the Bronze Level for certification knowledge. This means that the weightings used in the Lean BOK for the Bronze Certification were considered for the depth and breadth of material considered for each rubric. Therefore, it is by no means all-inclusive of every principle, system, and tool at every level of application related to lean. By addressing the Lean BOK at the Bronze Level, this book provides a basic understanding of the lean principles, systems, and tools at a tactical level to drive improvements with measureable results. The intent is to revise the book over time to encompass the topics of the Silver Level (an integrated application on value stream transformations for lean leaders) and the Gold Level (for strategic application of lean across the entire enterprise, with emphasis on assets, systems, processes, and people). Therefore, this book, much like a lean journey in an organization, will be adapted as the Lean BOK evolves and more knowledge is integrated. Given that the intent of this book is not to rehash the certification reference books, we hope that this book serves as a good starting point for those practitioners who want a holistic view of the Lean BOK, with links to many other lean references for greater detail and understanding. While there are many references, we tried to stay true to the terminology and applications discussed in the core books of the certification reading list. One of the difficulties we faced in creating a book of this magnitude was how to structure it. While we could have structured it alphabetically by topic, organized it by case studies or by organizations, or arranged it by some other method, we wanted to stay true to the Lean BOK structure. While this structure does not allow for a nice flow from one topic to another for easier reading, the writing conforms to the Lean BOK and the Shingo Prize model. We thought that this would provide a traceable reference for those individuals and organizations utilizing those structures for the pursuit of operational excellence. When lean is applied in an organization, the knowledge of the processes and the generations of ideas do not come from the organization’s designated lean experts. They come from those who perform the work on a daily basis. We took the same approach with this book. It would have been easy for us to read all the books and then pull information from those books to create another book. But then it would have been just that another book. We needed to take a lean approach with this book. So, just as you would create a team of individuals who perform the work in a kaizen event, we assembled a team of individuals who perform the work and who apply lean in their organizations every day. MANY VOICES AND MANY STYLES We were lucky to have some of the best minds in lean contribute to this endeavor (see “Contributing Authors and Editors”). There are many voices, many contributors, many styles of writing, and more than one point of view. The contributing authors come from many different backgrounds. Such different life experiences weave a wonderful lean tapestry. This book is not just lean for manufacturing or lean for service or lean for healthcare. The examples given in this book can fit any type of organization. We hope you find these different points of view helpful while finding your voice in lean. It has been a pleasure to not only be authors and share our knowledge of lean but also be editors and work closely with others like us. The great thing about working with all these individuals was learning how they apply the same things we apply, but maybe just a little differently. These differences provided us a different perspective on our version of lean and were wonderful opportunities to expand our personal lean knowledge base. Coming together is a beginning. Keeping together is progress. Working together is success. —Henry Ford We wish you the best of luck and fair weather on your lean journey! Acknowledgments I t would be nearly impossible to mention everyone who had an influence on the creation of this lean handbook, but we would like to make a few special mentions. First and foremost we would like to thank all the contributing authors, who worked tirelessly to help construct and shape this handbook. Their willingness to share their knowledge and experience was exceptional. To learn more about these extraordinary lean thinkers, see “Contributing Authors” A special acknowledgment goes to all the people and organizations that the contributing authors and editors have worked with over the years to help develop and deepen our understanding of lean and influence us as we continue to learn more. This handbook would not have been possible without the support of the Lean Enterprise Division (LED) of the American Society for Quality (ASQ) and the LED Leadership Team Kiami Rogers (chair), Frank Murdock (chair-elect), and Tammy Miller (secretary). We would also like to thank George Alukal, founding member of the LED and the driving force behind lean’s becoming an integral part of ASQ and a resource for its members. The Lean Certification is supported by the four alliance partners: the Society of Manufacturing Engineers (http://www.sme.org), the Association for Manufacturing Excellence (http://www.ame.org), the Shingo Prize (http://www.shingoprize.org), and of course ASQ (http://www.asq.org). We would like to thank Kris Nasiatka from the Society of Manufacturing Engineers (SME) for all her efforts in creating the Lean Certification and for her continued support of the partner organizations and this lean handbook. Also from SME, Kelly Lacroix leads the Lean Certification Oversight and Appeals Committee, which continually monitors and improves the certification process. If it wasn’t for our friends Matt Meinholz and Paul O’Mara at ASQ Quality Press, this book never would have been completed. We appreciate their patience and advice while working on this endeavor. Last, but not least, we would like to give our utmost gratitude to Robert Damelio. As a member volunteer, Robert not only was the driving force behind ASQ’s LED adopting the Lean BOK, but he also guided the certification initiative at ASQ. Without his tireless efforts, ASQ would not have been a partner member of the Lean Certification. A Brief History of the Lean Certification Body of Knowledge Kris Nasiatka, SME HOW IT STARTED The publication of The Machine that Changed the World, in 1990, brought the concept of lean to the masses. It also provided opportunities for many different flavors of lean to be born. With that came a myriad of education, training, and consulting practices, each bringing its own version of lean to the market. In 2001, members of the Society of Manufacturing Engineers (SME) and the Association for Manufacturing Excellence (AME), and constituents of the Shingo Prize came together and determined that some type of validation for professional practice of lean was necessary. There was a need to align practitioners with a common foundation (fundamentals) of lean practice and, more importantly, provide a roadmap to support workforce development and training efforts. After a few stops and starts, development was under way in earnest in 2004. The parties involved agreed that the Shingo Prize model should serve as the basis for the program’s Body of Knowledge (BOK). The initial BOK went deeply into evaluating lean practitioners’ job tasks. The model was modified to make it applicable to people and workforce development efforts versus being a corporate lean transformation model. The proposed Lean BOK was validated in a study in early 2005, thus launching version 2.0. KAIZEN BLITZ WEEK Shortly after version 2.0 was launched, a core development committee was established. With the preliminary validation of the BOK in place, a straw man for program components was outlined. SME hosted a “blitz week” to expedite development of the program. Nearly 60 lean practitioners, representing a breadth of manufacturing industries, consulting practices, and academia, gathered for a week to develop the components of this new certification program. During the blitz, development teams were established to focus on exams, portfolios, and the mentoring requirements for this new program. Throughout the entire development process, nearly 200 lean practitioners were involved in the creation of this program not including the couple of thousands that participated in the study. The first Bronze exam was offered to the public in March 2006. The Silver exam was available in June 2006, and the Gold exam was launched in December of that year. The formal Lean Certification Oversight and Appeals Committee was established and met for the first time in March 2006. UPDATED VERSION OF THE BOK With the program “live” for a year, a second BOK validation study was conducted. It was desired to structure the certification BOK similar to the Shingo Prize model. The Shingo Prize was restructuring its model, which created an opportunity for the certification program to validate proposed changes to the BOK received by certification candidates as well as the oversight body. The validation study was completed in 2007. The Lean Certification Oversight and Appeals Committee used the findings to restructure the BOK and launched version 3.0 in 2008 (see Appendix A). Although the topics did not change, the BOK was reorganized for better flow and improved alignment of topics within each category. Each BOK validation study is structured in a way that derives a weighting factor for each section of the BOK. The weighting factors identify the percentage of exam coverage for each BOK area and help the committee identify priority areas for building the exam bank. THE FUTURE OF THE BOK Validation studies will be conducted every five to seven years. The studies are intended to verify that current topics are still relevant in contemporary practice of lean and to identify any new or emerging topics that should be added to the BOK. Special Dedication Kiami Rogers Chairperson, ASQ Lean Enterprise Division T his handbook is dedicated in loving memory to Wayne Paupst (1957–2010), past chairman of the Lean Enterprise Division (LED). In August 2010, Wayne lost a long battle with cancer. Wayne was a quality professional’s “quality professional” He never complained about his condition. In fact, many of us on the Leadership Team, which worked closely with Wayne, were not even aware of the severity of his condition. Wayne possessed a wonderful sense of humor and had a kind word for everyone. He was always ready with a joke, and always ready to laugh at jokes offered by others. His leadership, instruction, kindness, and humor will be missed by family and friends as well as organizations such as ASQ. I first met Wayne at a meeting of the founders of the LED prior to the LED becoming a forum and subsequently a division. Wayne had been a member of ASQ since 1988. He had more than 25 years in the quality profession, holding positions such as quality engineer, quality systems coordinator, inspector, and quality assurance manager. He had been instructing certification courses for the Lehigh Valley Section of ASQ since 1996 and also had provided instructional courses for many of the top companies in the Lehigh Valley as well. Wayne also held several ASQ certifications: Six Sigma Black Belt, Quality Engineer, Quality Manager, Quality Auditor, Quality Technician, Quality Inspector, Process Analyst, and Quality Improvement Associate. It was during Wayne’s tenure as LED division chair that ASQ introduced the Lean Certification, in partnership with SME, AME, and the Shingo Prize organizations. I have no doubt that Wayne would have pursued obtaining the ASQ Lean Certification himself, as well as teaching and mentoring other lean professionals pursuing this certification. It is with great honor that we dedicate this handbook to Wayne. Prologue Kiami Rogers Chairperson, ASQ Lean Enterprise Division T he purpose of this handbook is to provide a reference guide for lean principles and methods. This handbook on its own is not intended to prepare one for the ASQ Lean Certification (in partnership with SME, AME, and the Shingo Prize organizations). The user of this handbook is a lean professional who has some knowledge of and experience with lean principles and methods. Material from several lean practitioners with differing levels of disclosure of their experiences has been gathered to create this handbook and has been edited to be presented in a consistent and unified format. With 6000 members worldwide, the ASQ Lean Enterprise Division (LED) is a global network of professionals helping individuals and organizations apply proven and leading edge lean principles and practices to achieve dramatic results for personal and organizational success. Whether or not you are a member of the ASQ LED, we hope you find this handbook a useful guide in your lean journey. Contributing Authors and Editors T his handbook was a large collaborative effort, and we would especially like to thank all the contributing authors, who shared their time and wisdom to help make this endeavor possible. CONTRIBUTING AUTHORS Christopher Abrey is a program manager with Northstar Aerospace in Bedford Park, Illinois. He earned a bachelor of engineering in manufacturing systems engineering from Coventry University, UK. He is a senior member of the Society of Manufacturing Engineers (SME) and a member of the Association of Manufacturing Excellence (AME). Christopher has more than 20 years of lean experience in manufacturing and recently completed the Lean Bronze Certification. He can be reached at cabrey@nsaero.com. Section 2.2.5. Total Productive Maintenance (including predictive) Andy Carlino is cofounder and partner of the Lean Learning Center. In addition to over 20 years’ experience in real-world senior management, including president and COO, he has for the past 20 years been providing consulting, training, and coaching services from the boardroom to the shop floor to organizations across the globe. He has published numerous articles and is coauthor of the Hitchhiker’s Guide to Lean: Lessons from the Road. Andy is a frequent speaker for a variety of professional organizations and corporate conferences, including guest speaker for Clemson and Harvard University. He holds a BS in engineering and a BA in psychology and is a member of SME, SAE, AME, ASQ, and numerous other industry and professional associations. Sections 1.2.1. Planning & Deployment 1.2.2. Create a Sense of Urgency 1.2.3. Modeling the Lean Principles, Values, Philosophies 1.2.7. Motivation, Empowerment & Involvement Adil Dalal is CEO of Pinnacle Process Solutions, Intl.; a keynote speaker; thought leader in lean, project management, and leadership; and author of The 12 Pillars of Project Excellence: A Lean Approach to Improving Project Results. He has earned MS degrees in engineering management and mechanical engineering. He is a Certified Lean Bronze Professional, Certified Quality Engineer (CQE), Project Management Professional (PMP), and Board Certified Executive Coach. He is the chair of ASQ’s Human Development & Leadership Division, and certification chair of the Lean Enterprise Division. He served on the Lean Certification Oversight and Appeals Committee. He can be reached at adil@pinnacleprocess.com Sections 1. Cultural Enablers 1.1. Principles of Cultural Enablers 1.1.1. Respect for the Individual 4.3.5. Competitive Impact Grace Duffy is president of Management and Performance Systems. She holds an MBA from Georgia State University and has coauthored numerous books: The Quality Improvement Handbook, Executive Guide to Improvement and Change, Executive Focus: Your Life and Career, The Public Health Quality Improvement Handbook, QFD and Lean Six Sigma for Public Health , Modular Kaizen: Dealing with Disruption, and Tools and Applications for Starting and Sustaining Healthy Teams . She is an ASQ Certified Manager of Quality/Organizational Excellence (CMQ/OE), Improvement Associate, Auditor, Lean Six Sigma Master Black Belt (LSS MBB), and ASQ Fellow. Section 2.2.8. Strategic Business Assessment David S. Foxx is a senior manager and Champion of the Continuous Process Improvement Community of Practice at Deloitte Consulting. He earned an MBA at the University of Phoenix and a bachelor of science in industrial engineering at the University of Texas at El Paso. David is a leader in enterprise transformation and specializes in innovation, product, process, and service design. David presented “Total Quality Design; An Imperative for Survival” at the Annual Quality Congress. He is a senior member of ASQ and a member of the ASQ Quality Press Standing Review Board, the Institute of Industrial Engineers (IIE), and the International Society of Six Sigma Professionals (ISSSP). His certifications include ASQ Certified Six Sigma Black Belt (CSSBB), LSS MBB, Lean Master, and Design and Innovation Master Black Belt. He can be reached at sixsigmalean@aol.com Sections 2.1.2.2. 7 Wastes (Muda), Fluctuation (Mura), and Overburden (Muri) 2.3.5. Product and Service Design 2.3.5.1. Concurrent Engineering 2.3.5.2. Quality Function Deployment 2.3.5.3. Product or Process Benchmarking 2.3.5.4. Design for Product Life Cycle (DFx) – Cradle to Cradle 2.3.5.5. Variety Reduction – Product and Component 2.3.5.6. Design for Manufacturability 4.3.2. Delivery 4.3.2.1. Takt Time 4.3.2.2. Cycle Time 4.3.2.3. Lead Time Dr. Gwendolyn Galsworth is president and founder of Visual Thinking, a training, research, and consulting firm, and the VTI/Visual-Lean Institute, which offers licensing and train-the-trainer in nine core visual workplace courses. Over some 30 years of handson implementations, Gwendolyn has nearly single-handedly created the models, concepts, and methods of workplace visuality that define visual’s distinct and powerful contribution to enterprise excellence and to sustainable cultural and bottom-line results. Gwendolyn serves as a Shingo Prize examiner. She is the author of Visual Systems: Harnessing the Power of the Visual Workplace ; Smart, Simple Design: Using Variety Effectiveness to Reduce Total Cost and Maximize Customer Selection ; two Shingo award-winning books, Visual Workplace, Visual Thinking: Creating Enterprise Excellence through the Technologies of the Visual Workplace and Work That Makes Sense; and many DVDs. She can be reached at gwendolyn@visualworkplace.com Section 2.2.1. Visual Workplace Bruce Hamilton is president of the Greater Boston Manufacturing Partnership, headquartered at the University of Massachusetts Boston campus. He attended Bowdoin College and earned a BA from the University of Arizona. Bruce is the creator of Toast Kaizen2 and other lean training videos, and also coauthor with Pat Wardwell of the eContinuous Improvement System Manual. He posts weekly to his blog: http://www.oldleandude.org both a recipient of the Shingo Prize and an inductee into the Shingo Prize Academy, Bruce is also a Shingo Prize examiner and a member of the Shingo Prize Board of Governors. He can be reached at pokayoke@comcast.net Sections (with Pat Wardwell) 2.1.2. Identification & Elimination of Barriers to Flow 2.1.2.1. Flow & the Economies of Flow 2.1.2.3. Connect & Align Value Added Work Fragments 2.1.2.4. Organize around Flow 2.1.2.5. Make End-to-End Flow Visible 2.1.2.6. Manage the Flow Visually 2.3.7.1. Mistake and Error Proofing (Poka Yoke) 2.3.7.4. Right Sized Equipment 2.3.7.5. Cellular Flow John Kendrick is a principal with Fujitsu in Sunnyvale, California, and has more than 15 years of lean experience in manufacturing, finance, telecommunications, and healthcare. John holds a master of engineering degree in simulation and modeling from Arizona State University, a master of applied statistics from Penn State, and a master of business administration in finance from the University of Pittsburgh. He is a Certified Six Sigma Master Black Belt (CSS MBB) and a senior member of ASQ. He is also a CSSBB, Certified Reliability Engineer (CRE), Certified Software Quality Engineer (CSQE), and CMQ/OE and holds two Lean Certifications. Sections 2.3.1. Work Flow Analysis 2.3.1.1. Flowcharting 2.3.1.2. Flow Analysis Charts 2.3.1.3. Value Stream Mapping 2.3.1.4. Takt Time Analysis 4.2.1. Measurement 4.2.1.1. Understand Interdependencies between Measures and Measurement Categories 4.2.1.2. Align Internal Measures with What Matters to Customers 4.2.1.3. Measure the Results from the “Whole” System 4.2.1.4. Measure Flow and Waste 4.2.3. Analysis – Understand What Moves the Dial on Measures 4.2.4. Reporting 4.2.4.1. Visible Feedback Real-Time Matthew Maio is a quality manager at Raytheon IDS in White Sands, New Mexico. He earned bachelor’s degrees in business and computer science from the College of Santa Fe, New Mexico. He is the author of Quality Improvement Made Simple and Fast! and coauthor of The Six Sigma Green Belt Handbook (both from ASQ Quality Press). Matthew is a member of the International Test and Evaluation Association and the Directed Energy Professionals Society. He is a senior member of ASQ and past regional director (board member) and section chair of ASQ. He holds ASQ certification as a CQM/OE, CSSBB, Certified Six Sigma Green Belt (CSSGB), CSQE, and Certified Quality Auditor (CQA) and Defense Acquisition University Lean Six Sigma Yellow Belt (LSSYB) and Process Quality Management (PQM) certification/recognition. He can be reached at Matt_Maio@comcast.net. Sections 1.2.4. Message Deployment – Establishing Vision and Direction 1.2.5. Integrating Learning and Coaching 1.2.6. People Development – Education, Training & Coaching 1.2.8. Environmental Systems 1.2.9. Safety Systems 2.1.5.1. Quality at the Source 2.1.5.4. Multi-Process Handling 2.2.6. Standard Work 2.2.7. Built-in Feedback 2.2.15. Knowledge Transfer 2.3.7.3. One Piece Flow 2.3.7.4. Right Sized Equipment 2.3.7.6. Sensible Automation 2.3.7.8. Source Inspection David Mann is principal at David Mann Lean Consulting. He is the Shingo Prize-winning author of Creating a Lean Culture: Tools to Sustain Lean Conversions (Productivity Press). David serves on the editorial board of AME’s publication, Target, on the management science faculty at the Fischer College of Business at Ohio State University, and as a Shingo Prize examiner. He earned his PhD in psychology from the University of Michigan. He can be reached at dmann@dmannlean.com. Sections 2.1.1. Process Focus 3.1.1.3. Closed-Loop Thinking to Assure Effective Feedback of Organizational Learning Anthony Manos is a catalyst with Profero and lean champion at 5S Supply in Frankfort, Illinois. He earned an MBA in entrepreneurial studies from the University of Illinois at Chicago. He is the coauthor of Lean Kaizen: A Practical Approach to Process Improvement (ASQ Quality Press), a senior member of ASQ, senior member of SME, cofounder and past chair of ASQ’s Lean Enterprise Division, and a member of the Lean Certification Oversight and Appeals Committee. He is Lean Bronze Certified. He can be reached at anthony.manos@proferoinc.com. Sections 1.1.2. Humility 1.3.5. Coaching & Mentoring 2.2.1.1. 5S Standards and Discipline 3.2.2. Policy Deployment/Strategy Deployment 4.3.5.1. Customer Satisfaction Brian H. Markell is president of BMA in Cherry Hill, New Jersey, and St. Albans, Hertfordshire, England. He has an engineering degree from the University of Sussex, England. Brian is certified with the Chartered Institute of Management Accountants (CIMA) in London, the American Institute of Certified Public Accountants (AICPA), and the Institute of Management Accountants (IMA). He is a Fellow of the American Production and Inventory Control Society (APICS). Brian is the author of eight books, including Making the Numbers Count: The Accountant as Change Agent on the World Class Team (second edition) and Practical Lean Accounting: A Proven System for Measuring and Managing the Lean Enterprise (second edition). He can be reached at bmaskell@maskell.com Section 4.2.1.5. Lean Accounting Timothy F. McMahon is the founder of and a contributor to A Lean Journey Blog (http://aleanjourney.com). He has a BS in chemical engineering from the University of Massachusetts and holds a Lean Certification and Six Sigma Black Belt from Central Connecticut State University. Tim is a member of the regional board of directors for AME and currently serves as the VP of program for northeast region. He can be reached at Tim@aleanjourney.com Sections 1.3.1. Cross Training 1.3.3. Instructional Goals 1.3.6. Leadership Development 1.3.7. Teamwork 1.3.8. Information Sharing (Yokoten) 1.3.9. Suggestion Systems 2.2.14. Pull System 2.3.6. Organizing for Improvement 2.3.6.1. Kaizen Blitz Events 2.3.7. Countermeasure Activities 2.3.7.1. Mistake and Error Proofing (Poka Yoke) 2.3.7.2. Quick Changeover/Setup Reduction (SMED) 2.3.7.3. One Piece Flow 2.3.7.4. Right Sized Equipment 2.3.7.5. Cellular Flow 2.3.7.7. Material Signals (Kanban) Dr. Mark W. Morgan is the associate vice president for institutional effectiveness and research at Seminole State College of Florida. Mark earned his doctorate in educational leadership from the University of Florida and is a three-time examiner for the Malcolm Baldrige National Quality Award. Mark was an improvement consultant for Fortune 500 companies for more than 10 years and is the author of three books on measurement and performance improvement, including his latest, The Path to Profitable Measures: 10 Steps to Feedback That Fuels Performance (ASQ Quality Press). Section 4.1. Principles of Business Results Frank Murdock is senior process engineer at Plymouth Tube Company in West Monroe, Louisiana. He earned a BS in engineering science at Purdue University, an MS in applied mathematics at the University of Michigan, and an MS in industrial engineering at Wayne State University. Frank spent 28 years with the Ford Motor Company, 8 years as an independent consultant, and 6 years as an adjunct professor at Lawrence Technological University. A senior member of ASQ and an ASQ Certified Six Sigma Black Belt, Frank is chair-elect for the Lean Enterprise Division as well as chair of the ASQ Voice of the Customer Committee. He can be reached at fmurdock@plymouth.com. Section 4.2.1.6. Voice of the Customer Mike Osterling has been a lean management practitioner and leader since the mid-1990s and is the lead consultant at Osterling Consulting, a San Diego–based firm. He earned an MBA in international business at San Diego State University and a BS in production and operations management. Mike coauthored The Kaizen Event Planner: Achieving Rapid Improvement in Office, Service, and Technical Environments. He is a certified trainer for the implementation of lean manufacturing (University of Kentucky) and a Lean Six Sigma Black Belt (University of California San Diego). He is certified in production and inventory management (APICS). He can be reached at mike@mosterling.com. Sections 2.1.5. Jidoka 2.1.7. Seek Perfection Mark Paulson is a quality manager for CDI in Minneapolis, Minnesota. He holds a Bachelor of Science degree in business administration. Mark is a senior member of ASQ, president of the Association for Manufacturing Excellence (AME); North Central Region, former Minnesota Quality Award examiner/team leader, approved trainer for Bronze Lean Certification refresher class and associated exam, and member of the Lean Certification Oversight and Appeals Committee. He is an ASQ Certified Manager of Quality/Organizational Excellence, Quality Engineer, Quality Auditor, and Bronze Lean Certified. Sections 2.1.4. Scientific Thinking 2.1.4.1. Stability 2.1.4.2. Standardization 2.1.4.3. Recognize Abnormality 2.1.4.4. Go and See 2.1.5. Jidoka 2.1.5.1. Quality at the Source 2.1.5.2. No Defects Passed Forward 2.1.5.3. Separate Man from Machine 2.1.5.5. Self-Detection of Errors to Prevent Defects 2.1.5.6. Stop and Fix 2.1.7.1. Incremental Continuous Improvement (Kaizen) 2.1.7.2. Breakthrough Continuous Improvement (Kaikaku) Robert (Bob) Petruska works as a performance improvement consultant in Charlotte, North Carolina. He has a Master of Science degree in manufacturing systems from Southern Illinois University. Bob is a senior member of ASQ and a CSSBB. Bob is authoring a book titled Gemba Walks for Service Excellence: The Step-by-Step Guide for Identifying Service Delighters, to be published in 2012 by Productivity Press. Sections 3.2.1. Enterprise Thinking 3.2.1.1. Organize around Flow 3.2.1.2. Integrated Business System and Improvement System 3.2.1.3. Reconcile Reporting System 3.2.1.4. Information Management Govind Ramu is a senior manager for global quality systems for SunPower Corporation. Prior to this role, he was Six Sigma Master Black Belt for JDS Uniphase Corporation. Govind is a professional engineer (mechanical) from Ontario, Canada, and an ASQ Fellow. He holds six ASQ certifications. Govind has had articles published in Quality Progress and in the Six Sigma forum. He coauthored ASQ’s The Certified Six Sigma Green Belt Handbook, for which he received the ASQ Golden Quill Award in 2008. Additionally, Govind was a 2006 and 2011 examiner for the California Awards (CAPE) and a 2010 examiner for the Malcolm Baldrige Award. He can be reached at ramu.govind@gmail.com Sections 2.1.5.1. Quality at the Source 2.1.7.1. Incremental Continuous Improvement (Kaizen) 2.2.9. Continuous Improvement Process Methodology 2.2.9.1. PDCA 2.2.9.2. DMAIC 2.2.9.3. Problem Solving Storyboards 2.2.10. Quality Systems 2.2.11. Corrective Action System 2.3.3.3. Failure Mode and Effects Analysis 2.3.4. Presenting Variation Data 2.3.4.1. Statistical Process Control Charts 2.3.4.2. Scatter and Concentration Diagrams 2.3.5.2. Quality Function Deployment 2.3.5.4. Design for Product Life Cycle (DFx) – Cradle to Cradle 2.3.5.6. Design for Manufacturability Rama Shankar is the managing partner at Delta Management Associates in Glenview, Illinois. She has a master’s degree in engineering management from Northwestern University and a master’s degree in materials management from Indian Institute of Materials Management, India. Rama is the author of Process Improvement Using Six Sigma: A DMAIC Guide (ASQ Quality Press). She is a senior member of ASQ and a past chair, section director, and training institute director of the ASQ Chicago Section. Rama is a past Malcolm Baldrige Award examiner, an ASQ CSSBB, and a CQA. She is also a certified trainer by NIST for lean. Sections 2.1.5. Jidoka 2.1.5.1. Quality at the Source 2.1.5.2. No Defects Passed Forward 2.1.5.3. Separate Man from Machine 2.1.5.4. Multi-Process Handling 2.1.5.5. Self-Detection of Errors to Prevent Defects 2.1.5.6. Stop and Fix With Tim McMahon 1.3.2. Skills Assessment 1.3.4. On-the-Job Training 1.3.6. Leadership Development 1.3.7. Teamwork With Govind Ramu 2.2.9.1. PDCA 2.2.9.2. DMAIC 2.2.9.3. Problem Solving Storyboards 2.2.11. Corrective Action System 2.2.11.1. Root Cause Analysis 2.2.12. Project Management 2.3.2. Data Collection and Presentation 2.3.2.1. Histograms 2.3.2.2. Pareto Charts 2.3.2.3. Check Sheets 2.3.3. Identify Root Cause 2.3.3.1. Cause & Effect Diagrams (Fishbone) 2.3.3.2. 5-Whys 2.3.3.3. Failure Mode and Effects Analysis 2.3.4. Presenting Variation Data 2.3.4.1. Statistical Process Control Charts 2.3.4.2. Scatter and Concentration Diagrams Gregg Stocker is an operational excellence advisor at Hess Corporation in Houston, Texas. He earned an MBA from the University of Houston and a BA from Michigan State University. Gregg is the author of Avoiding the Corporate Death Spiral: Recognizing & Eliminating the Signs of Decline (ASQ Quality Press). He is a certified purchasing manager from the Institute for Supply Management. He can be reached at gstocker1111@gmail.com Sections 2.2.4. 3P Production Process Preparation 2.2.13. Process Design 3.1.1. Systemic Thinking 3.1.2. Constancy of Purpose 3.1.3. Social Responsibility 4.2.2. Goal and Objective Setting Chad Vincent is a lean manufacturing specialist with Greif in St. Louis, Missouri. He earned a BS in engineering management from Missouri University of Science and Technology. Chad is a senior member of ASQ and SME, and the current ASQ Lean Enterprise treasurer. He serves on the Lean Certification Oversight and Appeals Committee. Chad is a CQE, CRE, CMQ/OE, CSSBB, and Lean Bronze Certified. He can be reached at chadvincent88@gmail.com. Sections 2.1. Principles of Continuous Process Improvement 2.1.2.2. 7 Wastes (Muda), Fluctuation (Mura), and Overburden (Muri) (with David Foxx) 2.1.5.1. Quality at the Source (with Govind Ramu and Mark Paulson) 2.1.5.3. Separate Man from Machine 2.1.6. Integrate Improvement with Work 2.1.7. Seek Perfection 2.2. Continuous Process Improvement Systems 2.2.2. Lot Size Reduction 2.2.3. Load Leveling 2.2.4. 3P Production Process Preparation 2.2.10. Quality Systems 2.2.10.1. ISO and Other Standards 2.2.11. Corrective Action System 2.3. Continuous Process Improvement Techniques & Practices 2.3.1. Work Flow Analysis 2.3.1.1. Flowcharting (with John Kendrick) 2.3.1.2. Flow Analysis Charts (with John Kendrick) 2.3.1.3. Value Stream Mapping 2.3.1.4. Takt Time Analysis (with Matt Maio) 2.3.8. Supplier Processes External 2.3.8.1. Supplier Managed Inventory 2.3.8.2. Cross-Docking 2.3.8.3. Supplier Assessment and Feedback 2.3.8.4. Supplier Development 2.3.8.5. Supplier Benchmarking 2.3.8.6. Logistics 2.3.9. Supply Processes Internal 2.3.9.1. Material Handling 2.3.9.2. Warehousing 2.3.9.3. Planning and Scheduling 4.3. Key Lean Related Measures 4.3.1. Quality 4.3.1.1. Rework 4.3.1.2. First Pass Yield 4.3.3. Cost 4.3.3.1. Inventory Turns 4.3.3.2. Queue Time 4.3.3.3. Wait Time (delays) 4.3.3.4. Overall Equipment Effectiveness (OEE) 4.3.3.5. Changeover Time 4.3.4. Financial Impact 4.3.4.1. Cash Flow Pat Wardwell is the chief operating officer at Greater Boston Manufacturing Partnership 2 in Boston, Massachusetts. She holds a BA from the University of Maine and an MBA from Bentley College. Pat is the coauthor of e-Continuous Improvement System. Her accomplishments include SME Lean Gold Certified, past chair of the Lean Certification Oversight and Appeals Committee, Shingo Prize recipient and examiner, AME Manufacturing Excellence Awards committee member and examiner, AME Northeast Board of Directors, and member of SME Boston Chapter Leadership Committee. She can be reached at pwardwell@gbmp.org. Sections (with Bruce Hamilton) 2.1.2. Identification & Elimination of Barriers to Flow 2.1.2.1. Flow & the Economies of Flow 2.1.2.3. Connect & Align Value Added Work Fragments 2.1.2.4. Organize around Flow 2.1.2.5. Make End-to-End Flow Visible 2.1.2.6. Manage the Flow Visually 2.3.7.1. Mistake and Error Proofing (Poka Yoke) 2.3.7.4. Right Sized Equipment 2.3.7.5. Cellular Flow Jerry M. Wright, P.E., is the senior vice president of lean and enterprise excellence for DJO Global in Vista, California. He earned an MBA in 2002 from the University of Phoenix and is a registered professional engineer in the state of California. He is the annual international conference chair for AME for Chicago in 2012 and also a west region director for AME. He is also the chair of the So Cal Lean Network, an affiliation of more than 75 companies focused on lean and sharing in Southern California, as well as a Shingo Prize examiner and a previous Baldrige Award examiner. He can be reached at jerry.wright@djoglobal.com. Sections 3.3.1. A3 3.3.2. Catchball 3.3.3. Redeployment of Resources EDITORS Anthony Manos is a catalyst with Profero, where he provides professional consulting services, implementation, coaching, and training for a wide variety of organizations (large and small, private and public) in many industries focusing on lean enterprise and lean healthcare. Tony has extensive knowledge of lean and quality in a wide range of work environments. He is trained and certified by the National Institute for Standards and Technology (NIST) U.S. Department of Commerce in all elements of lean manufacturing. Tony also is a lean champion for 5S Supply. Relying on his diverse knowledge of business, manufacturing techniques, and applications, Tony has assisted numerous clients in implementing a lean enterprise and lean healthcare. Over the past 10 years, he has helped over 150 companies in several aspects of lean implementation, including team building, standardized work, 5S workplace organization and visual workplace, quick changeover, plant layout, cellular, Kanban, total productive maintenance, kaizen events, and hoshin planning. Tony is an internationally recognized speaker and expert on lean and presents at several conferences a year. As an ASQ faculty member, he teaches a two-day course in lean enterprise and a one-day course on kaizen. Tony is the past chair of the Lean Enterprise Division of ASQ. He is a senior member of SME and a member of AME. Tony is coauthor of the book Lean Kaizen: A Simplified Approach to Process Improvement and author of many articles on lean and its allied subjects. He serves as an ASQ representative to the Lean Certification Oversight and Appeals Committee. Tony is Lean Bronze Certified and was part of the original team to develop the Lean Certification. Tony served in the US Navy nuclear propulsion program. He holds an MBA from the University of Illinois at Chicago. Chad Vincent is a lean manufacturing specialist and corporate operational excellence team member with Greif, Inc. in St. Louis, Missouri, where he provides professional guidance, facilitates implementation, and coaches and trains personnel at manufacturing facilities on lean enterprise and operational excellence. Prior to Greif, he worked as a quality engineer in the medical device field and as a project engineer in the construction industry; he also has worked in management in the logistics and transportation industry. Chad has served as a senior lead examiner and judge for the Governor’s Quality Award (Arkansas’ equivalent of the Malcolm Baldrige National Quality Award) and is past president of the Leadership Arkansas Alumni Association Board of Directors. Chad is an advocate for ASQ’s Socially Responsible Organization (SRO) Initiative and a member of SME’s Lean to Green Committee. He has written articles, such as “Back in Circulation” for Quality Progress, on the utilizing of lean to achieve socially responsible and environmentally favorable results within organizations and on defining the 8 Green Wastes for environment, health, and safety (EHS) professionals to apply lean in their areas of expertise. He is a voting member of the US Technical Advisory Group (TAG) for the ISO 26000 Guidance for Social Responsibility. Chad earned a BS in engineering management, specializing in quality engineering, from the Missouri University of Science and Technology, in Rolla, Missouri. He is a senior member of ASQ and SME, and is currently the ASQ Lean Enterprise treasurer and serves on the SME/AME/Shingo/ASQ Lean Certification Oversight and Appeals Committee. Chad is a CQE, CRE, CMQ/OE, and CSSBB, and he is Lean Bronze Certified. Module 1 Cultural Enablers 1.1. Principles of Cultural Enablers 1.2. Processes for Cultural Enablers 1.3. Cultural Enabler Techniques and Practices Culture is the widening of the mind and the spirit. —Jawaharlal Nehru The first section of the Lean Body of Knowledge is dedicated to culture. Although lean is about the tools, it is more about creating a culture of people who truly believe in continuous improvement. This portion of the book focuses on what it takes to create, change, and lead an organizational culture into operational excellence. There is no lean without people. This section explores the importance of leading with humility, showing respect for people, having a well-crafted plan with a sense of urgency, and developing the people and leaders in your organization. 1.1 Principles of Cultural Enablers A ccording to Pascal Dennis (2007, 145); author of Lean Production Simplified; “Intensity is the soul of lean production, and team members are its heart” In other words, people are the most critical element of lean production, and the culture the team members create is the major source of fuel required to propel lean systems forward in any organization. In a vast majority of cases, the success or failure of any lean, Six Sigma, or other corporate initiative will depend on the people who execute it rather than on any equipment, consultant, software, or other tools and techniques. Thus, organizations that consider people as the prime appreciating asset and invest adequate time, effort, and money in hiring and developing the right people will get unmatched results (Dalal 2011, 584). What Is a Culture? A culture is the sum total of all behaviors, relationships, comprehension, and interactions that fuel overall alignment via collective thoughts, words, and actions. What Is a Lean Culture? Lean is an approach to improve quality, increase productivity, reduce costs, and increase customer satisfaction by eliminating waste and creating value. A lean culture is the sum total of all the lean tools, techniques, and knowledge that exist within an organization at the root level and that fuel the overall organizational alignment via collective lean thoughts, words, and actions toward the elimination of waste and the creation of value. Organizations that have a strong lean culture do two things: 1. They promote at least five key cultural enablers (safety, standards, leadership, empowerment, and collaboration), which allows the lean culture to exist 2. They build their business on the core fundamentals of respect for individuals An Example of a Strong Lean Culture The consistent growth, prosperity, innovation, and operational excellence of Toyota are clearly results of the Toyota Production System (TPS), which is built on the foundation of a strong and dynamic culture and sophisticated “human systems” consisting of highly motivated and well-trained people in plants, dealerships, and offices around the globe. In Toyota Culture, authors Jeffrey Liker and Michael Hoseus (2008) explain Toyota’s fourstage process for building and keeping quality people: attract, develop, engage, and inspire. The “people-centric” culture of Toyota is carefully designed by:  Finding competent, able, and willing employees  Beginning the training and socializing process as they hire the people  Establishing and communicating key business performance indicators at every level of the organization  Training the people to solve problems and continuously improve processes in their daily work  Developing leaders who live and teach your company’s philosophy  Rewarding top performers  Offering help to those who are struggling (Liker and Hoseus 2008, 44) What Is a Cultural Enabler? Just as a sapling requires critical factors like the right soil, adequate sunlight, and water to survive and grow into a strong tree, culture requires factors that allow it to stabilize and pervade throughout the organization. These factors are known as cultural enablers. Cultural enablers are critical to the people on the journey of building a culture of operational excellence within an organization. What Constitutes as Cultural Enablers of a Lean Culture? Cultural enablers of a lean culture include the basic principles of safety, standards, leadership, empowerment, and collaboration. Basic Principles of Safety There are only two types of organizations: safe or lucky. Safety is the prime cultural enabler, as only safe environments can be productive and profitable. Lean organizations believe that merely adhering to all requirements of the Occupational Safety and Health Administration (OSHA) is not sufficient in order to have a safe working environment. The following two principles are engrained in the culture of lean organizations: 1. Safety is the responsibility of every employee within the organization 2. A proactive versus a reactive approach is required in order to create and maintain a clean, safe, ergonomic, and sustainable work environment Lean organizations realize that to attain all-encompassing safety standards, they must focus on education and awareness in safety practices related to people’s health and wellness, and interface with people and equipment and environmental aspects. Personal Safety Personal safety focuses on security and protection from accidents, injuries, fire hazards, equipment malfunction, and any other aspect threatening the health and well-being of every individual in the organization. Fatigue Prevention Fatigue results from a poorly designed workplace, work environment, tools, equipment, and policies and procedures. Practicing workplace ergonomics, which optimizes the comfort of employees while they are interacting with all the elements of their workplace, is the key to reducing fatigue and increasing employee efficiency. Environmental Safety Environmental safety involves reducing the carbon footprint of products and processes on the surrounding environment. It encompasses product and process design from cradle to grave, including use of environmentally conscious raw materials, supplies, and packaging materials requiring minimal transportation and minimal waste, along with proactive implementation of recycling or reuse programs. Some top enablers for creating a culture of safety are the following:  Focus of top leadership Organizational emphasis on safety Clearly defined organizational structure  Clearly defined lines of authority and accountability  Unambiguous communications  Trust and engagement  Ability of organization to learn from failures  Safety training and sharing of lessons learned Some top barriers for creating a culture of safety are the following:     Lack of support from top leadership Minimal emphasis or pseudo-emphasis on safety A culture of blame and retribution Lack of training or sharing of lessons learned Basic Principles of Standards Standards are baselines from which improvements can be easily measured. All standards related to safety, communications, operations, human resources, policies, procedures, and tasks need to be standardized across the entire organization. Standardization is not static but dynamic and requires continuous improvement using the Plan-Do-Check-Act model of the Deming cycle (ASQ). Taiichi Ohno is credited with saying, “Where there is no standard there can be no kaizen” Thus, a standard is “the best known method/process/system at a particular point of time” and is a dynamic point of reference that becomes the baseline for future improvements. Every continuous improvement activity must result in the establishment of a new standard. This “new standard” may require establishing a new standardized work sequence, recalculating takt times and establishing new inventory levels, updating visual work instructions, and setting new inspection or quality control standards. According to Masaaki Imai (1997, 54–56), author of Gemba Kaizen, standards have the following key features:  Represent the best, easiest, and safest way to do a job Offer the best way to preserve       the know-how and expertise Provide a way to measure performance Show the relationship between cause and effect Provide a basis for both maintenance and improvement Provide objectives and indicate training goals Provide a basis for training Create a basis for audit or diagnosis Provide a means for preventing recurrence of errors and minimizing variability Basic Principles of Leadership Without support from the top leaders and executives, lean initiatives cannot survive in an organization. The leader is not only required to support lean initiatives in good times but also required to show persistence and constancy of purpose during tough times. The leader needs to develop a clear vision for lean, communicate it effectively to his or her employees, and empower them to adopt it as their own mission. Thus, leadership is the key cultural enabler that determines whether lean is established as a culture in the organization. Good leaders understand that in an environment of continuous improvement, failures are imminent. But rather than blame people for failures, they ask “why” five times, approach the problem, and create a plan to strengthen the people (Dennis 2007, 130). According to Dalal (2011, 471–85), there are three types of failures: 1. System level failures 2. Process level failures 3. Human level failures Great lean leaders avoid focusing on the human level failures, as this would create an environment of fear, distrust, and a culture of risk aversion lacking creativity and innovation. Instead, great lean leaders:        Focus on system failures (“why”) Spend more time to prevent the failure Believe that 80% of the failures are avoidable by 20% of planning Perform root cause analysis to prevent failures Implement dynamic risk assessment to identify and plan for failures Use Plan-Do-Check-Act cycle to prevent failures Establish a creative and open environment for lessons learning (Dalal 2011, 471–85) Figure 1.1-1 shows a representation of an empowered culture of trust created by leaders using these techniques. Basic Principles of Empowerment A Japanese saying alludes to the fact that a statue of Buddha will not mean much without putting a soul in it (Imai 1997, 242). The soul of a lean organization is employee empowerment. The prime responsibility of a leader in a lean organization is to develop effective problem solvers and decision makers. The only way a leader can achieve an empowered workforce is by helping to set a vision and relinquishing some authority in order to allow the capable employees to make decisions and influence corporate policies. Empowered employees get to the depths of understanding of lean technology and go beyond the know-how of lean and experience and apply lean with a deeper understanding of the know-why. Thus, lean leaders rely on their empowered employees to optimize the benefits of lean initiatives, ensuring superior levels of customer satisfaction. Employee empowerment must be done in six steps: Step 1: Leaders make a commitment to have an engaged workforce Step 2: Roles and responsibilities are clearly defined Step 3: Training is conducted for managers, supervisors, staff, and shop-floor personnel Step 4: Training is conducted for all administrative and support staff Step 5: A formal idea-suggestion or idea-sharing program that involves all employees is implemented Step 6: Action is taken to assign responsibility and accountability Basic Principles of Collaboration The cultural enabler “collaboration” is the backbone of lean. Lean initiatives do not depend on the knowledge of one but achieve breakthrough results due to the deployment of the collective wisdom of many. In lean organizations, collaboration exists across:  Various functions  Different departments  Staff and union workers and even between executives and operators Collaboration and partnerships extend beyond the four walls of the organization and include suppliers, contractors, and, in some cases, competitors. By design, lean tools allow for a collaborative culture throughout the organization. Nemawashi, A3 form, kaizen events, and several other lean tools are designed for automatic collaboration. 1.1.1. RESPECT FOR THE INDIVIDUAL One of the most critical aspects of lean cultures is the inherent importance placed on valuing individuals and treating each individual with dignity. In lean organizations, respect starts with the top leaders and permeates throughout the organization. However, “respect for every individual” does not end at the four walls of the organization; rather, it extends to all customers, suppliers, and stakeholders, including the community in which the organization does business. Respect allows the lean culture to achieve the following goals:  Create a culture of cohesive teamwork Create a culture of continuous improvement Increase employee involvement  Empower employees  Encourage diversity A key requirement and an underlying quality required by employees of lean organizations is humility. Leaders and employees all practice humility as a technique that allows the process of continuous improvement to go on via open collaboration. In lean cultures, everyone is open to learning from one another and to raising their game incrementally on a daily basis in order to generate superior value and increase customer satisfaction. The key traits of a humble environment are as follows:      An open learning environment People form a critical element of the value stream A long-term relationship based on mutual loyalty A mentor-mentee, sensei-student relationship throughout the organization Lack of discrimination throughout the organization and the entire supply chain Thus lean organizations and their leaders focus on operational excellence via a peoplecentric approach by ensuring an empowered, safe, and collaborative environment based on standards and a philosophy of a wholehearted pursuit of long-term excellence. 1.1.2. HUMILITY Humility leads to strength and not to weakness. It is the highest form of self-respect to admit mistakes and to make amends for them. —John J. McCloy Humility ties in directly with respect for the individual (see Section 1.1.1, “Respect for the Individual”). Humility is considered the quality of being modest, unassuming in attitude and behavior. It also can be taken as feeling or showing respect and deference toward other people. Don’t think of humility in the lean sense as being meek, shy, and timid or of lesser value. Of course, the opposite of being humble is being arrogant, overconfident, condescending, or egotistical or displaying hubris. Humility is a principle that enables the people in your organization to learn, improve, and excel. Consider two types of humility: personal humility and leading with humility. This approach helps us understand what it takes to develop our own personal style, along with the similarities and differences in leading people. Personal Humility Personal humility can be thought of as having pride (not boastful), self-respect, and dignity. These traits are created over the years with a commitment to integrity, honor, and pursuing lifelong learning. Being humble means that you understand that you don’t know everything and can continually learn from those around you. As you learn, you improve. This also involves understanding your strengths and weaknesses. Understanding your strengths allows you to be a better team member, as you bring certain skills to your workplace. Appreciate your weaknesses (or opportunities for improvement) so you can continually develop and progress as a person. Another important role of humility includes being able to accept personal responsibility for your actions. Admit when something doesn’t go as planned. Hansei is a Japanese word that means “self-reflection” or to acknowledge a mistake and pledge to improve. It is perfectly acceptable to say, “I don’t know; let’s find out” Humility also includes being authentic to yourself and to others and staying true to your principles or virtues. Another important skill for fostering humility is to perfect your active listening skills and be present for the other person. Humility is also being mindful of others, in your thoughts, speech, and actions. In Stephen Covey’s The 7 Habits of Highly Effective People (1989, 235), habit 5 says to “seek first to understand, then to be understood” This is a classic example of showing your humility. By reserving your desire to jump in, speak up, and be heard and truly trying to understand the other person’s point of view you create a better relationship and find overall solutions to problems. In a way, humility can be thought of as living by the golden rule: Treat others as you would like to be treated. This leads to workplace satisfaction and gratification of a job well done. Leading With Humility Leading with humility is not only for the CEO or the president of your organization. Leading with humility should permeate all the way through the ranks to the level of the value-adder. At any one time, everyone has a chance to lead, from daily meetings or training to large-scale projects. Gary Convis (2011) tells of his mentor at NUMMI, Kan Higahsi, telling him his greatest challenge would be “to lead the organization as if I had no power” This is a sure sign of humility. In his book Good to Great, Jim Collins (2001) talks about Level 5 Leadership, of having personal humility and professional will. Table 1.1.2-1 shows a summary of Level 5 Leadership personal humility traits, adapted from the book. Leading by Deeds Building trust to become trustworthy as a leader starts with personal humility. Building trust can take time. Your words and actions demonstrate your ability to do what you say. An example of this is a leader who says that the customer comes first but then makes it difficult for the customer to contact him or her making the customer search a website for a telephone number or navigate lengthy phone menus that lead nowhere. As a humble leader, you will need to know how to be patient in developing your people. While there are always deadlines, proper planning, tapping into the creativity of your employees, and having the patience to stay the course will pay off dramatically as you create a more engaged workforce. Always make sure to give credit to others for their contributions to the success of the organization, and take personal responsibility for any letdowns. Learn how to shine the spotlight on others; let them shine in the eyes of the company. If you can learn how to talk to the CEO and the value-adding worker in the same way, you are developing the type of skills that will make you invaluable to your institution. As a leader, design your systems with respect and humility. Dwight Davis (2011), associate vice president of Utah State University, on the topic of leading with humility, says, “Humility is a key element in building teams, unifying organizations, unleashing employee capabilities, optimizing relationships, designing systems of accountability and achieving a culture of discipline. Humility simply enables individual and organizational learning and improvement” We come nearest to the great when we are great in humility. —Rabindranath Tagore REFERENCES    ASQ. “Project Planning and Implementing Tools” http://asq.org/learn-about-quality/project-planning-tools/overview /pdca-cycle.html Collins, Jim. 2001. Good to Great. New York: Harper Business. Convis, Gary. 2011. “Lean Leadership: The Toyota Way” Keynote speech at the AME       conference, Dallas, Texas. Covey, Stephen. 1989. The 7 Habits of Highly Effective People. New York: Simon and Schuster. Dalal, Adil. 2011. The 12 Pillars of Project Excellence: A Lean Approach to Improving Project Results. Boca Raton, FL: CRC Press. Davis, Dwight. 2011. “Lead with Humility, Respect Every Individual” Gemba Walkabout blog, October 17. http://gembawalkabout.tumblr.com/post/11595991420/lead-with-humility-respect-every-individual Dennis, Pascal. 2007. Lean Production Simplified: A Plain-Language Guide to the World’s Most Powerful Production System. 2nd ed. New York: Productivity Press. Imai, Masaaki. 1997. Gemba Kaizen: A Commonsense, Low-Cost Approach to Management. New York: McGraw-Hill. Liker, Jeffrey, and Michael Hoseus. 2008. Toyota Culture: The Heart and Soul of the Toyota Way – New York: McGraw-Hill http://www.lean.org/BookStore/ProductDetails.cfm?SelectedProductId=270 1.2 Processes for Cultural Enablers J ust as there are principles for cultural enablers, there are also processes. These processes are the ongoing systems and inherent culture of the organization as it continues to improve itself. 1.2.1. PLANNING & DEPLOYMENT There is an old saying that poor planning guarantees poor execution. It’s actually quite shocking how little time and effort companies put into planning their lean implementation. The more common approach is to simply choose a convenient tool, 5S being the most popular (see Section 2.2.1.1, “5S Standards and Discipline”), and apply it with a broad brush across the organization. Certainly this approach can have some positive results, but it is neither sustainable nor comprehensive. Good planning doesn’t guarantee good execution, but it gives you the best chance of success. Also, there should not be a “one plan fits all” approach. Every lean implementation should be designed on the basis of specific objectives and characteristics of the particular organization. Additionally, every plan should include at least three basic pillars as the foundation (see Figure 1.2.1-1). The first pillar is “quick and measurable improvement” It is obvious that the primary objective of any lean transformation is to significantly improve the performance of all critical measures. Lean isn’t implemented because it’s the nice thing to do for the business; it’s implemented because it is the right, and sometimes critical, thing to do for the business. Experience suggests that if the lean implementation is not providing significant returns in key performance indicators in the first 12–18 months, someone (usually in finance or accounting) will challenge both the relative effectiveness and the need for lean and decide that resources might be better spent elsewhere. Quick results can be achieved through kaizen events (rapid process improvement), targeted lean demonstration projects, or even some basic tool implementation aimed at quick wins. But be cautious that these relatively quick and measurable wins can become a crutch that limits further lean transformation. Be careful of your transformation becoming what is called “event lean” The second pillar, and absolute complement to the first pillar, is the development of a lean culture, embedding lean into daily behaviors. Culture is about shared and common principles, practices, and behaviors that will ultimately determine outcome. There is a very simple formula for pillar number two: principles (thinking) drive behaviors, behaviors drive action, and action drives results. Simply put, the desired thinking will get the desired results. There are two ways that lean thinking can be embedded into the organization. The first is through continued repetition. The messages and experiences simply cannot be repeated enough. Remember how you learned the multiplication tables in school? It was all repetition and it stayed with you for life. The second is through application. A principle or practice must be aggressively applied and applied in varying environments if there can be any expectation of embedding the behaviors. This can be accomplished by taking a slice (inch wide/mile deep) of the organization and deeply immersing it in the principles and practices of lean. Then, based on the lessons learned, expand throughout the organization, slice after slice. The third pillar is the principle of lean leadership. The decision makers in the organization, regardless of level, must be engaged in the lean transformation. This means they provide the direction, participate in the lean activities, provide some of the education, create the tension and need, and certainly exhibit the desired behavior. This can be accomplished through active engagement of leadership in the lean activities and by establishing some sort of lean management structure similar to a steering committee or leadership council. Ideally, the three pillars are implemented simultaneously, but this can be difficult to achieve, as identified in the next section. Any lean transformation requires, or should require, a framework for the implementation. Lean is a journey, and as with any journey, you need a roadmap (see Figure 1.2.1-2). Your roadmap’s route should be based on a series of issues and concerns that must be considered. A few examples include:  Business conditions; If the business is just trying to survive, you can forget culture. Just get quick results.  Baggage; Prior experiences cause people to carry around thinking that might affect implementation. For example, a prior failed continuous improvement implementation can create “program of the month” baggage.  Resources; The availability, or lack thereof, of resources to support the lean transformation will affect the pace of the implementation. Be very cautious of managing expectations.  Culture; A risk-adverse culture require assurances and safety nets. A frugal culture will require proof of return on investment. These and any other issues and concerns must be considered when developing the roadmap. Also consider designing the roadmap in phases and defining each of the following characteristics in each phase:         Objectives Application Education Tools and methods Communication Infrastructure Leadership Expected results The roadmap should be developed with three levels of varying detail. Level one generalizes the content of the roadmap for communication across the organization. It’s like a map that shows only the major cities and primary roads and thus has lots of white space. Level two provides enough detail for the area/department or even the entire organization to assess where it is on the lean journey and what it must do to advance. This is like adding the small towns and secondary roads to the map and provides more guidance and options. Level three is very detailed and provides the specifics for active implementation. This is like adding all the cities, towns, and communities and all the primary, secondary, and tertiary routes to the map. I can’t stress enough how important it is to develop a roadmap. A very well-known Fortune 500 company often benchmarked for its lean implementation openly admits that it did not develop a roadmap but should have. The company is developing one now after what it considers three false starts. How many false starts can you afford? 1.2.2. CREATE A SENSE OF URGENCY Creating a sense of urgency can be difficult in good times but is typically easy in bad times when the economy or business conditions are threatening survival. Futurist Joel Barker, in his video Tactics of Innovation, discusses five pairs of tactics to get someone to accept a new idea. In the video he makes it very clear that, when things are tough, the only tactics you need are Upside/Yes (there is a lot to be gained) and Downside/No (there is little to no risk). In tough times, it’s easy to get people to change just show them the numbers. However, most lean practitioners and leaders will be challenged to create a sense of urgency in an organization when it is doing well or when the employees believe that the organization is doing well. The real challenge is to overcome the belief that an organization needs to improve and improve significantly. Beliefs are embedded in the thinking of the organization. The way to change these beliefs is by building tension in the organization. Tension is not the same as stress. Whereas stress suggests a feeling of helplessness, tension is about recognizing the gap between where you currently are and where you would like to be. Very simply put, tension is about having a deep understanding of the current state and a well-defined vision of the ideal state. Tension can be used to improve a task, an entire process, or even an entire company by narrowing the gap. It all starts with a deep understanding of the current state. There are several means to both understand and document the current state:      Value stream mapping Detailed process mapping Direct observation Videotaping Data collection Regardless of the method used, the key is to understand the real current state not what is desired, not what is documented, but what is real. It is surprising how organizations almost always feel that their current state is better than what is discovered. One of the simplest means to relieve tension, relieve the sense of urgency, is to believe that things are better than they actually are. It’s simple but not helpful. Deeply understanding the current state is only half the formula. The other half is having a well-defined vision of the ideal state. Notice I did not say future state. Future states are simply intermediate gains. The ideal state is a step gain. There may be one or even more than one future state as you move toward ideal, but you must never lose sight of ideal. For example, one company may try to figure out how to fasten a nut and bolt faster (future state), while another company is trying to eliminate the need for the nut and bolt altogether (ideal state). On the surface it may sound difficult to define the vision of an ideal state, but it is actually quite simple. Simply develop a bulleted list of the ideal characteristics of an activity, a process, a department, or even a company. The only restriction is that it must be possible. You can’t violate the laws of nature or science. For example, one consumer goods company defined the ideal state for its warehouse receiving process as:       100% quality incoming parts Correct count (standardize lot sizes) Containerization (direct to line) Radio frequency Bar coding Just-in-time Nothing in the aforementioned ideal-state description is not possible, maybe very difficult but possible. For example, getting 100% quality from a supplier may be very difficult, but it is not outside the realm of possibility. Also, cost should never be considered when defining the ideal state. It might be a barrier that prevents achieving ideal, but it does not make the ideal state impossible. The likelihood of achieving the ideal state is low, especially because ideal is often a moving target. However, if you do not focus on the ideal, you will not make the big step gains, only incremental small gains. Remember, there may be one or more future states as you move toward ideal. A deep understanding of the current state and a well-defined vision of the ideal state will expose the organization to the gap and therefore create the tension, the sense of urgency. The next challenge is to simply identify and remove the barriers to achieving the ideal state. You will most likely not remove all barriers, but the more barriers you do remove, the closer you get to ideal. So, in summary, if you want to create a sense of urgency, follow these three simple steps: 1. Deeply understand the current state 2. Clearly define the ideal state 3. Narrow the gap between steps 1 and 2 1.2.3. MODELING THE LEAN PRINCIPLES, VALUES, PHILOSOPHIES Webster’s dictionary defines modeling as “to display by wearing, using or posing” That could not be a better definition for modeling lean. You must use it both in your professional practice and in your personal practice, and you must wear lean on your sleeve for others to see. It is about exhibiting through action and dialogue the lean thinking and behavior desired of others on a lean journey. Actions always speak louder than words, but both are in their own way a means to model lean behaviors. Waste elimination is the lifeblood of any lean implementation. It’s not enough to ask others to surface waste and then simply support their activities. Every individual, regardless of his or her level in the organization, must be involved in waste elimination. This means that every individual should be performing waste walks routinely and frequently. Develop a standard form for documenting the identified waste and a standard process for providing feedback or entering the suggestions into a structured waste elimination system. Waste walks can be done individually or in teams. It’s preferable, however, to do the waste walks in cross-level and cross-functional teams for two reasons. The first reason is the obvious visibility. The second reason is the opportunity to dialogue. In fact, you will find that the real value and opportunity to model lean is not in the actual application of lean tools (waste walks, 5Ss, process maps, etc.) but in the dialogue that is required to plan and implement the tool. You must be a teacher. Simply subrogating the teaching, either formally or informally, to others is unacceptable. This doesn’t mean just standing in front of a classroom. The transfer of skills and knowledge is too important not to share on a daily basis. While this can be about actually scheduling time to teach, it’s more about taking advantage of situations that could be teaching moments. It might be helping to solve a problem, implementing a tool, resolving a crisis, or responding to any other situation that is a candidate for a lean solution. These teaching moments occur routinely in the daily practices of the organization. You can’t expect a signal (andon) when a teaching moment surfaces. You must seek out these opportunities. There must be an environment for learning. The lean transformation will require experimentation, action, and new thinking. In many cases these activities may involve risk. The challenge is to create an environment to encourage and support experimentation and new thinking. Learning occurs when people are asked to step out of their comfort zone. This doesn’t mean chaos and unorganized change. Stepping out of the comfort zone must be purposeful by setting clear goals and providing effective mechanisms. When people step too far out of their comfort zone, they enter their fear zone. So, in addition to minimizing their comfort zone, you must also eliminate fear. You must provide physical, emotional, and professional safety. If an individual is ridiculed for making a suggestion, you can fully expect that he or she will not venture beyond his or her comfort zone. Regardless of the validity of the idea, it should be a teaching and learning moment, not a moment of embarrassment. Simply proclaiming support of the lean transformation is not enough. Both active and visible participation are required. Support is easy; participation is far more difficult. Back in the early 1990s one of the big three auto companies had its first kaizen event. A member of that kaizen team was the president of the company. He was in jeans and a company Tshirt and came ready to do whatever was asked of him that entire week. Twenty years later that experience still resonates through the organization, even though that president is long gone. The right “model” is not about watching from the sidelines; it’s about active engagement. It’s about committing the time to actively participate. Maybe it is waste walks as mentioned earlier. Or it could be a kaizen event, problem solving, building process maps, or implementing lean tools. This is certainly a case where actions speak louder than words. Lean must also be part of everyone’s daily activities. It is not about others applying lean. It’s about every individual applying lean to his or her self. It’s about individuals aggressively applying lean to daily job functions by developing clearly structured processes for how they perform work and how they spend their time. This can manifest itself in many ways. Performing 5S in your own area is an obvious and simple answer, but it is far more comprehensive than that. Is there scheduled and structured time for reflection? Do you follow a structured problem-solving model? Do you look for the opportunity and the time to teach or coach others? Do you schedule certain critical activities and never vary? Are you auditing the lean implementation? There are likely many more examples of how individuals can model lean principles, values, and philosophies, but it all comes down to two things: (1) exhibit the behavior you desire of others and (2) encourage and participate in the dialogue to develop lean thinking. 1.2.4. MESSAGE DEPLOYMENT-ESTABLISHING VISION AND DIRECTION In their book, Fail-Safe Leadership, Martin and Mutchler (2003) use the analogy of a game of tug-of-war. In this game, two teams are placed at opposite ends, each holding one end of a rope. The objective is to pull the middle of the rope over a line. On one side, the team members are lined up and ready to pull in the same direction. On the other side, the team members are disorganized and ready to pull the rope in different directions. Which team do you think will win? Obviously the team that is aligned and pulling in the same direction will win. What does this have to do with message deployment? Everything! It all starts with the development of the vision, or direction, for the organization. More specifically, in the context of this handbook, what is the vision of the organization’s lean system? What will be the driving force? Perhaps it is. “To eliminate waste and improve customer focus” Or, “To align our processes with the customers’ needs and eliminate waste, while achieving Shingo recognition” The message has to fit your organization. To achieve any vision, the organization must be aligned. One obstacle typically encountered on any lean journey is the fear that doing things right the first time and faster will result in cutbacks or layoffs. The emergence of this fear is a direct result of the vision and message deployment. The lean vision should not focus on the reduction of personnel but rather on the leveraging of those resources now available to grow. Growth can be in skills, new product lines, reduced overtime, and so on. Martin and Mutchler (2003) prescribe clear methods to achieve fail-safe leadership, but key to lean is the alignment described as ensuring that, top to bottom, every employee understands the vision and has goals that directly relate to results. Their model is shown in Figure 1.2.4-1. In the lean journey, this approach, or a similar approach, will ensure that the organization is aligned and that all functions are striving for the same results. The vision is established at the top and communicated across the organization through meetings, webinars, and webcasts or by any other effective means. Be wary of just making posters, hanging them up, and expecting the vision to be achieved this is not communication or message deployment. Allowing for personal interaction and holding question-and-answer sessions will help with alignment. After the vision is defined, strategies, goals, actions, and measures are established. Measures are not always needed and are typically driven by the organization’s culture and size; however, they are helpful in ensuring alignment and fact-based decisions regarding progress. These are established at a level where they are functional to personnel and need to be reviewed to ensure they do not conflict – remember the tug-of-war – from one function to the other. For example, a facility may want to lower electricity costs by shutting down the lights and the heating system at night, but production may want to operate some machines at night to perform maintenance. Personnel will establish goals and actions that align with functional goals and strategies (critical success factors). To achieve this message, deployment has to occur not only for the vision but also for the functional level, after strategies and functional goals or actions are reviewed to ensure there are no conflicts with other functions. This is an investment in time and energy that pays rapid dividends through everyone pulling the rope in the same direction at the same time. Developing the vision at the top, then, involves more levels as each successive item that works in the organization is defined. In other words, don’t change how you do things to fit the model above, but use the model within the organization’s system to ensure alignment and results. Involve appropriate subject matter experts and formal and informal leaders to define the functional goals, actions, and measures. Communicate the overall vision and functional goals to all levels. Ensure each person has goals and actions (one to three is the norm) that align with the overall vision and the function in which he or she works. Check and communicate progress regularly and make adjustments when necessary. Use the checks to ensure continued alignment. Stress the importance of achieving the vision and the benefits. Commit to the lean journey and ensure that it has little or no impact on staffing levels and that it is used to grow skills, people, and business results. 1.2.5. INTEGRATING LEARNING AND COACHING To help the organization shift to a lean culture, learning and coaching must be part of the equation. Learning allows for the sharing of knowledge, personnel growth, removal of barriers, and the demonstration of leadership commitment. Coaching is a method used to enable learning and improvement. Integrating these into the planning and deployment, along with sustainment, provides continual benefits through improved morale, execution, idea generation, and retention. All personnel, from individual contributors to executive leadership, must be involved with the learning process. A key concept of learning is to ensure continual application of the knowledge gained. In other words, once personnel learn a skill or gain knowledge, there should be an established expectation that that skill or knowledge is applied regularly in support of organizational and lean objectives. As part of the lean culture shift and integrated learning, there will be formal and informal learning. Formal learning includes goal setting, teaching or facilitation (classroom, webbased, etc.), verification of knowledge gain (completion of exercises, case studies, testing, projects, etc.), and reinforcement of knowledge gain (a knowledge check following completion of the learning experience). Informal learning includes on- the-job training and coaching and mentoring. Formal learning is structured to account for adult learning styles and needs. A formal learning process includes the following:      Stated objectives Lesson plans Formal verification of knowledge gain Knowledge check Optional qualification or certification Lean Bronze Certification, through the Society of Manufacturing Engineers (SME), the Association of Manufacturing Excellence (AME), the Shingo Prize, and the American Society for Quality (ASQ), is an example of formal learning. Organizations develop their own formal learning with a focus on their implementation of lean. Learning is usually broken down to meet different objectives of awareness, execution, project leadership, and program design. This learning may also include subsets within execution and project leadership based on the expectation (e.g., Lean Bronze, Silver, and Gold or Six Sigma Green Belt, Black Belt, and Master Black Belt). Not all learning is performed at one time, nor is all learning developed at the same level of difficulty, time invested, and length of course. As the lean culture shift starts, all personnel receive lean awareness training, but those leading the initiative receive more in-depth training. Lean awareness training explains the organization’s goals of lean, leadership’s commitment, what will occur, how it impacts personnel, expectations for personnel involvement, top-level training, deployment schedules, and so on. This awareness training should emphasize that the goal of a lean culture is to execute smarter, eliminate waste, and grow skills and capability it is not intended as a program that reduces the workforce. Reduction in personnel is typically a major workforce concern, and thus leadership must emphasize that it is not a goal or intention. In formal training, on-the-job training is done at the lowest levels possible. It usually has top-level goals (e.g., ensure new hire can operate machines in work area effectively and efficiently) but no set agenda, timeline, and so on. It may have some level of competency testing, but it is usually completed when the trainer believes the trainee is able to execute correctly, safely, and efficiently. In formal training, that critical knowledge transfer from one employee to another is something lean wants to leverage throughout time. Every person executing an activity, working with a tool or machine, or dealing with a process knows what works well and what doesn’t. They know the value-added activities and waste (muda). The ability to tap into this knowledge, especially during area lean blitzes or kaizen events, is crucial to success and sustainment of changes and gains. If this knowledge is not captured, leveraged, and utilized once the blitz or kaizen event is done, personnel will revert to their way of doing things. Additionally, understanding how things are really done will help the organization make effective changes and improve worker safety. Coaching generally uses a nurturing approach to achieve an end goal. Good coaches keep the end goal in mind at all times; they recognize that there will be setbacks and know how to overcome them. When a setback occurs, a coach will assess the situation; adapt with small, incremental change (usually); and then guide the team to overcome the challenge and succeed. Coaching relies on the ability to communicate and motivate, ensuring that “leanspeak” can be translated so that all involved understand. Coaching utilizes formal and informal leaders within the organization to ensure acceptance of the lean culture shift. The coaching method engages employees, improves performance, and reduces the effort needed to implement and sustain lean. Learning and coaching are vital cultural enablers for lean. Learning ensures that personnel gain knowledge, apply the knowledge gained, and retain the knowledge, and it lays the foundation for culture shift and lean execution. Coaching reinforces learning, elevates employees to perform, and leverages personnel throughout the organization to adapt and embrace the culture shift and drive improvements to perform effectively and efficiently. 1.2.6. PEOPLE DEVELOPMENT-EDUCATION, TRAINING & COACHING What does the organization do if it has a goal to penetrate a new product line or market? One method is that the organization first learns about that product line or market and then determines how to best leverage its performance to differentiate and penetrate that product line or market. This is an example of education, training, and coaching. In lean, people development through education, training, and coaching is a key cultural component. Education can be formal or informal and external or internal to the organization. Training is also formal or informal and is usually internal to the organization or leverages external training that aligns with the organization’s goals and lean system. Coaching leverages the education and training to guide people to achieve the desired results. Education can take the form of degrees, courses, or certifications offered by external organizations like community colleges and universities or specialized organizations like ASQ and SME. Education is available in lean, components of lean, quality, and the like. In most cases, education involves a broad scope of the entire lean or functional area with depth in most, if not all, aspects of the area. Formal education is a needed investment for subject matter experts, especially those who will guide the organization and serve as coaches. Training, on the other hand, is usually broken down into smaller aspects of lean. It begins with a top-level overview provided to the entire organization to achieve the alignment needed (see Section 1.2.4, “Message Deployment Establishing Vision and Direction”). Then, more specialized training is available, or required, on the critical aspects of lean. The overview ties to the organization’s vision and provides a high-level look at what lean is, how it works, what are its goals and objectives, and how people are engaged and contribute. Specialized training is used to expand on lean principles and tools like value stream mapping and 5S. Specialized training is targeted to those involved with implementing the associated principles and tools to achieve the desired results. Training can include training within the industry and on-the-job training. Coaching is more personal. It is provided by subject matter experts and leaders when and where needed. It may be to help get past a roadblock or to supplement skills where training is not available or needed to execute on a regular basis. For example, coaching may be done to help a team apply a lean principle or tool not ordinarily needed, and thus each individual does not need the training and ability to execute that specific principle or tool on their own. Coaching can also be used to make adjustments in execution to drive alignment. Personnel development through education, training, and coaching provides everyone in the organization with needed skills enhancement and knowledge at the right time to ensure alignment and provide the foundation to achieve the desired results. 1.2.7. MOTIVATION, EMPOWERMENT & INVOLVEMENT Education is not only important to a lean transformation, it’s critical. However, a common mistake that organizations make is that they provide the education (the how) before they provide the purpose (the why). It is difficult to motivate individuals to accept a new idea, and especially difficult if they don’t first understand the purpose or the value of the new idea. Most people will not accept what they don’t value unless they do so only on blind faith. For example, a common lament is how difficult it is to sustain 5S. This is because most people believe the purpose of 5S is only about housekeeping and therefore is not seen as very valuable. What they don’t realize is that the real purpose is the ability to see abnormal conditions and subsequently eliminate waste. They can see a lot more value in 5S when they understand the purpose, the why. Understanding the why establishes the value. There are five phases to any change initiative: Phase I; Enlightenment. This is simply about establishing the purpose the “why” before you provide the education. You can teach a new skill, but getting someone who doesn’t see its value to use it will happen only by demand, not by desire. Phase II; Education. This is self-explanatory. It’s providing the “how” Providing someone with how to do or to accept something without first providing the why will likely diminish the chance for success. Phase III; Empowerment. Once individuals know why and how, you must give them a chance to really learn through application and experimentation. Very important: Never have anyone assume new responsibilities before first providing him or her the skills. Empowerment requires the development of skills and/or knowledge first. Phase IV; Experience. Empowerment provides the opportunity for multiple experiences, and subsequent multiple experiences will develop the expertise. Phase V; Enrichment. This simply means “results” Any change initiative that follows the first four phases can fully expect to get the desired results. As mentioned earlier, education is critical. Phase II is all about education. However, effectively transferring skills and knowledge can be difficult. A proven approach to effective education is “learn, apply, and reflect” Every educational experience should go through these three steps; some cases require more than one cycle. 1. Learn. Individuals must be provided the knowledge and skills required to achieve the desired expectations. 2. Apply. Knowledge without application will not be internalized. Adults in particular learn far better through app…
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