This document provides a 10-point assessment of an organization's lean systems. It rates each system on a scale of 1 to 5, with 5 being state-of-the-art. The systems assessed include organizational structure, management commitment to change, the improvement process, team involvement, and support for improvement teams. For each system, it provides a brief description of the current state and recommendations for actions needed to improve.

1. 10 LEAN SYSTEMS DIAGNOSIS
DIAGNOSIS PARTICIPANTS:
COMPANY: _______________________________ START NOW
DIAGNOSIS DATE: _____/_____/_____ MEDIUM ◄ PRIORITY KEY
PLANT: __________________________________ LOW
SYSTEM WBS ELEMENT 5 = STATE OF THE ART 4 = ACCELERATING 3 = STRUCTURED LEARNING 2 = AWAKENING 1 = UNDERDEVELOPED VISIONRATE COMMENTS ACTION TO IMPROVE
Organizational design is a
Organizational structure has
work systems model structured
multiple levels of managerial
in top-down bottom-up
controlling influences. Wide
autonomous value streams.
area departmental 'silos' .
The value streams comprise of Integrated into a single
Monopoly of skills, monopoly
interactive and interdependent company with little Divided in different
of knowledge and monopoly of
ORGANIZATION FOR ORGANIZATIONAL small group teams. Teams departmental walls. Well departments, bu work well
1
KAIZEN
1.1
STRUCTURE members contribute individual organized collaborative with
=
together though skill old school
management. 1
Interdepartmental
ideas to the success of the just 3 management levels fully departments.
protectionism and isolation are
larger business unit. 4 rules in disciplined.
making a systematic transition
use (Work Activities,
plan to become a lean
Connections Pathways,
enterprise an administrative
Problem Solving). These are
impossibility.
integral to its existence.
Gaining people's commitment
for a change is an important
component of any key
In addition to basic actions to
business project. Leaders of
build people's commitment to a Long-term sustained results
change are equipped to Stakeholders are identified and
change, specific risk areas are Changes are implemented, but can not be demonstrated.
manage the change process the need for their commitment
assessed proactively to identify they are surrounded in turmoil Business changes, initiatives
and employees are equipped is understood. Commitment
MANAGEMENT potential areas for action to stress and disruptions to the and projects focus only on the
1.2 to work through the change levels are diagnosed and basic 1
COMMITMENT minimize or mitigate risks business. Actions by plant technical requirements and
process. Actions demonstrate actions are done to build
associated with the change, management do not reflect aspects and do not consider
a focus on the human side of commitment for the change,
i.e. sponsorship, capacity, commitment. the human aspects of the
change. Sustainability and i.e. clarify and communicate.
culture synergy, resistance and change.
disruption levels are measured
change agent skills.
and monitored. These results
indicate high commitment and
return on change efforts.
Workshops are replaced by What is learned in workshops Workshops are conducted,
natural work teams. The is taken to other similar lines. follow up is done routinely by A process is in place for No workshops are planned so
1.3 IMPROVEMENT PROCESS learning from each value Many types of workshops are team leader and by the conducting workshops, follow the shop floor remains 1
stream is horizontally deployed done in each area to remove organization's lean support up is done haphazardly. unchanged.
to other value streams. the problems at the Gemba. team.
Teams work as cross-
Workshops are done to
functional body to integrate the Workshops are done to
improve the support systems
improvement activity between eliminate the muda and flow Audits begin value streams No improvement activity is
for the affected value streams
1.4 TEAM INVOLVEMENT shop floor and support
(purchasing, materials control
problems identified during the using Material and Information planned and no structure is in 1
systems. Meetings held at material and Information Flow Flow Analysis. place to make it happen.
human resources, finance,
Gemba instead of conference on a pilot value stream.
accounting, etc.)
room.
Lean support team given some Maintenance helps with
Shop floor personnel given the
In house personnel to support tools and a part time person to workshop support, but difficult
IN-HOUSE SUPPORT OF appropriate tools and training No improvement workshop
1.5
FORMING TEAMS to make their own jigs, fixtures
the fabrication of jigs, fixtures, help with fabrication of jigs, to develop priorities, often
support provided at all.
1
and workstation modifications. fixtures and workstation outside maintenance people
and workstation modifications.
modifications. contracted.

2. All plant personnel receive 40+
hours of Lean training per
About 50% of the plant
year. Employees regularly
Most of the plant leadership personnel participate in some
participate in events that alter
quot;walks the talkquot; and exhibits a type of Lean training (F-K Way
the current status-quo. Change
good understanding of Lean 'Lego' Lean Basics voluntary or
is part of the culture and is
concepts. Change not). Lean principles and Knowledge of Lean principles
expected by all personnel.
management methodology is concepts are understood and by plant personnel is limited. plant does not have a Lean
Senior and middle
understood and how to apply it are incorporated into business Sponsors, advocates and awareness or education plan
management are capable of
EDUCATION AND and appropriate tools for projects. There is an change agents do not have designed or in place. Change
1.6
UNDERSTANDING
teaching Lean and regularly
handing resistance and other acceptance of change but not clearly defined or understood is perceived to be a weakness
2
teach multiple modules of the
risks. Change sponsors, widespread support. Some roles and responsibilities for of management inability to
Lean /Concepts. In addition to
agents and participants are managers are seen as Change managing the change to a control the plant.
a formal methodology for
educated in these areas. 75% Agents and attempt to make Lean environment.
change, all project leaders and
of the leadership have improvements. All employees
team members understand
attended train the trainer are educated on the change
how to recognize and address
training. process and their roles within
resistance, ineffective
it.
sponsorship, and other key risk
factors.
Leaders of change make
Change plans are integrated efforts to enable the
Resistance is anticipated and
into the Project Plan and organization to prepare, build
drawn out early on in a The culture is open to change
address the needs of people to acceptance and implement the
change. Effective strategies and is aware that it will be met
prepare, build acceptance and change, but these efforts are
for addressing resistance are with some understandable Compliance with business
implement the change. These inconsistent and informal.
in place. Lessons learned are resistance. Leaders are changes is expected.
plans are formal and utilize They rely on the personalities
captured, shared and equipped to recognize and Resistance and other key risks
project or staff forums for of the change leaders and are
leveraged. Change plans effectively address resistance. to the change are
review, but the plant may often done as a response to
extend beyond the project Diagnoses are conducted to underestimated or ignored.
1.7 PLANNING FOR CHANGE
implementation date and identify any human risks to the
underestimate the impact of resistance rather than in
Fear of change is prevalent
1
people's resistance to change. anticipation of resistance.
include actions to continue to project. Project plans are among plant personnel. The
Change management activities There is covert resistance to
build commitment and sustain updated to include the risk culture is deep rooted and
are centered on impacted change that is not recognized
the change. These activities management activities. These entrenched and resists
employee groups. These or addressed. Often this work
are primarily owned by plant are monitored and updated change.
activities are cascaded is done in the isolation of the
management and supported by throughout the project and
throughout the organization by project team and sustaining
key members of the project beyond implementation.
change agents and managers sponsors are not engaged until
team
of impacted employees. the project is near
implementation.
Human objectives and either
project success measures are
Human objectives for a project Human objectives for a project
established at the onset of a
are identified, but are often not are identified, but are often not
Business leaders are project. These are
achieved or measured. In achieved or measured. In Change Leaders do not
measured on the sustainability communicated to all impacted
these cases plant leaders do these cases plant leaders do consider the human side of the
of the change projects in their and are monitored and
1.8 ACCOUNTABILITY
areas. These results indicate
not take ownership for poor
measured throughout the
not take ownership for poor change project. Project 1
implementation of sustained implementation of sustained objectives do not include
a positive return on change project. Role maps are
results. The project teams results. The project teams quot;human objectivesquot;,
efforts. created that identify ownership
appear to have sole ownership appear to have sole ownership
and accountability for the
for success or failure. for success or failure.
change across the
organization.
Change projects are
implemented on time with
minimal disruption to the
business. The organization is Changes project are
able to manage more change Organizational capacity for prioritized. People have a Plant does not see the need The organization is
initiatives than the prior year change is assessed. This clear understanding of these for change. No plan exists to overwhelmed by the volume,
and is increasing its capacity to assessment is a factor in priorities, but it is still incorporate change rate and complexity of changes
handle an increasing volume, setting organizational priorities. somewhat of a struggle to management plans into the required. Priorities are not
1.8 RESILIENCE complexity and rate of change. A formal change management make progress on changes in strategic plans. Change clear and work items are often 5
The organization expects process is followed. People in the face of day to day projects are started but see late or incomplete. People in
ongoing change and views it the organization adapt to the responsibilities and many disruptions and the organization demonstrate
as the quot;normquot;. plant leaders changes and are ready for quot;emergenciesquot;. Sustainability reprioritizations in the face of signs of stress and
are measured on the more. of the changes is a common quot;emergenciesquot; dysfunction.
sustainability of the change issue.
projects in their areas. These
results indicate a positive
return on change efforts.

3. Some of the support
organizations willingly get
Some alignment of non- involved in applying Lean
manufacturing functions concepts. There is awareness
Complete alignment of non-
(administrative and of the potential benefits but the A few of the support
manufacturing functions Lean is viewed as a
engineering) to support the regular application of Lean organizations show interest in
(administrative and manufacturing focus and
manufacturing function. There tools is not in evidence. Some applying Lean concepts. There
engineering) to support the applicable to anything else.
is continuous elimination of high-level department goals is awareness of the potential
manufacturing function. There There is little to no awareness
waste in many of the functional and some plant level goals benefits but not a concerted
is continuous elimination of of Lean principles in non-
NON-MANUFACTURING units of the organization. Many include waste elimination effort to get started. Some
1.9
SUPPORT
waste in all functional units of
high-level department goals actions such as need to reduce dialogue between
manufacturing areas. 5
the organization. Continuous Department goals and
include waste elimination manufacturing cycle time, manufacturing and the support
improvement is incorporated objectives do not include the
actions such as need to reduce improve responsiveness and areas to work together. Lean
into the mission/vision for the identification and elimination of
transactional cycle time, lead time. There is increased terminology starts to appear in
plant. Proactive dialogue to waste. quot;Usquot; vs quot;Themquot; is the
improve responsiveness, and dialogue between communications and
eliminate problems before they prevailing culture.
improve lead time. Continuous manufacturing core process discussions.
occur is the norm.
improvement is a major focus work group leaders, value
for many managers. stream managers and the
support areas to resolve daily
production problems.
Vision is developed as a
prerequiplant to improvement
Vision is not developed. The
planning by top management.
purpose of a vision in planning
Vision is clearly communicated
is not understood by
to all. Gaps between current Organization is energized by
Vision aligned to strategy and Management beginning to leadership. Management and
reality and vision are identified vision and how then see model
2 LEADERSHIP 2.1 INTERNAL VISION
and serve as a basis for ideal lines becoming the reality
beginning to link to model ideal develop a vision, but not associates are often confused 5
line projects. aligned to strategy or goals. by the initiatives brought in by
improvement planning. across the whole company.
leadership and unable to link
Leaders continue to evaluate
them to a particular vision or
and adjust vision and
strategy.
subsequent strategies as
required.
Cross-functional cooperation
and total systems improvement
participated in by all key
leaders lead by the top Performance reviews done
Systems improvement work is Departmental functions are
STYLE AND CROSS executives of the company. using cross functional
beginning, Cross functional Task force and event focused working separately - quot;as long
2.2 FUNCTIONAL Focus on product, safety, measures and manager's
measures and policy being improvement. as we do our work right,
5
COOPERATION quality, delivery, cost & collaboration between
developed. everything will be okayquot;
employee morale (PQCDSM departments.
ODCOTODD) & what delights
the customer - short medium
and long range.
Policy is deployed top
down/bottom up, linked to a
clear vision. kaizen planning is There is no clear management
integrated to business system. There are no clear
challenges and reflected in the plans to improve either the
company's president (Mike internal business or the
Roeder) business A3 plan. internal processes in the
Managers at different levels
Action plans are effectively Functional charts are made company. Alignment of
work together, playing quot;catch Goals and objectives of
communicated at all levels and with details, enabling the resources is not clear. People
ball' and also evaluating the management are broken down
2.3 POLICY MANAGEMENT incorporate ongoing feedback
organization for its level of to detail for each level of the
elimination of the duplication are not viewed as assets 5
regarding process and results and assuring important capable of self-managed work
ability for each of the 10 organization.
of activities at all levels. projects to not get dropped. or providing essential
systems of kaizen.
Middle and top management knowledge. Management
provide visible support and skills required for policy
involvement at workstations. management and deployment
Management aligns people, not in place. Communication
systems & resources to between levels is not effective.
achieve the vision and in
support of the core process.

4. Most leadership promotes and
implements world-class
Organization uses leadership
practices in all business cycles. Plant leadership periodically
to promote and implement Plant management makes a Actions by plant management
There is a high level of demonstrates a commitment to
world-class practices. There is token effort towards do not reflect commitment.
personal commitment and making the plant a Lean
sustained personal commitment to Lean. Knowledge of Lean principles
involvement to drive Lean environment. The plant
commitment and involvement Knowledge of Lean principles by plant personnel is limited.
2.4 TECHNICAL LEADERSHIP
to drive Lean practices by all of
practices by most of the leadership will separate the
is limited a few key change Plant does not see the need
5
organization's managers. A daily needs of the business
the organization's managers. A agents. Plant management for change. No plan exists to
plan for establishing and from Lean principles in times of
plan for establishing and provides little vision of how incorporate Lean plans into the
deploying the Lean principle is business pressures (e.g. end
deploying the Lean principles lean will benefit the business. Strategic plans.
in place, reviewed and of month, increased demand).
is in place and executed.
supported by most plant
leadership.
Value Stream Managers and
Work Group Leadership teams Value Stream Manager and
Value Stream Managers and
hold monthly detailed reviews World class manufacturing work group leaders teams are
work group leaders teams hold World class manufacturing is
of projects, team members do status is consistently not reviewing projects, World
LEADERSHIP monthly detailed reviews of mentioned in some employee
2.5
COMMUNICATIONS
the presentations, status
projects and consistent
communicated to employees
communications but it is not
class manufacturing is rarely 5
covered in every all-employee and some management review mentioned in all-employee
communication of status to all consistent or frequent.
meeting, articles included in of WCM projects occurs. meetings or written
employees.
every periodical or written communications.
communication.
Decisions are top down/bottom
up to achieve vision. Safety,
Quality, Delivery and Cost
targets are clear and based
upon effective benchmarking Decisions are strictly top/down
processes and data collection. with little input from associates
Customers, suppliers and and middle management.
associates are seen by leaders Safety Quality, Delivery and
Decision making and target
as key sources for SQDC Cost targets are arbitrarily set
setting is spread throughout Decision making and target
target selling and routinely Leaders begin to analyze the and not verified with customers
the company by use of projects setting begins in model project
involved. Leaders follow key needs of the customer and the (external or internal). Quality is
whose goals are to satisfy the areas, aligning process output
2.6 DECISION MAKING principles of Process and needs of the organization not put first in the production
customer. Visual controls are with customer requirements.
Results and Total Systems internally, focusing on making process and production data
used to manage the workplace Decisions are made to
thinking in decision making. quot;Quality Firstquot; decisions. are not effectively collected or
through empowered small increase customer value.
Quality in the process is used for improvement.
group teams.
always, before Cost and Inconsistency of decisions is
Delivery, and supported by pervasive and reduces
Value Stream Managers and associate's confidence in
supervisors in production and leadership decisions.
support services. Internal
measurements and targets are
directly linked to financial
measurements.
Company newsletter (The
Company newsletter (The
Communication strategy used Pellet) and details of
Pellet) and company briefings Improvement activity is No one in the company knows
COMPANY-WIDE in annual reports to show workshops used to horizontally
2.7 show kaizen plan and tell discussed in plant or company- about any improvement
COMMUNICATION integration of business deploy improvement activity
stories of what has been done wide meetings. activities.
strategy. from one area or plant to
in various workshops.
another.
Departmental communication
Departmental communication Line communication
dashboards/storyboards show
dashboards/storyboards show dashboards/storyboard show Improvements tracked on line
VALUE STREAMS attainment, current No communication of
2.8 attainment and improvement attainment and improvement communication
COMMUNICATIONS improvement activity and improvements.
for value stream's safety for each line's safety, quality, dashboard/storyboard.
future planned improvement
quality, delivery and cost delivery and cost.
activity to S.Q.C.D.
Single point lessons are used Line associates develop single Improvement done and Improvement done and
Improvement is not done and
2.9 SINGLE POINT LESSONS to train all who work in that as point lessons to help learn the standards written by team standards written by
standards are not followed.
standard work. details of a process. members. engineers.
Improvement data is collected Improvement data is Improvement data is collected Improvement data is not
PERFORMANCE DATA INFORMATION Improvement data is only
3 3.1 visible and integrated to the consistently collected by the by area, but each area has its collected. Trends or Pareto
MEASUREMENT COLLECTION collected during workshops.
company improvement plan. Value Stream Managers own scorecard. analysis of data is not done.

5. Selected measures vertically
integrated. All measures are
displayed for all employees to
The measures are related to Measurements are primarily
see and reviewed for Partial attempt at a Balanced
the type of business and efficiency based and used as a
understanding at frequent Scorecard is made with some
product produced. Customer Still a large number of negative motivator.
intervals. Customer vertical link to business
Sat. has sizeable influence measures tracked but a few Employees do not see a
Satisfaction is the driving measures. Employees are
PERFORMANCE over performance decisions. get the most attention. Some connection between their job
3.2
MEASUREABLES
measure. The measures exposed to various
Some visibility of the measures awareness of Customer and the organization making
3
package is constantly reviewed measurements and see the
is gained through Satisfaction and the profitability money. Customer satisfaction
and updated to ensure a link between their job and
weekly/monthly measures but of the business. is not important. Large number
Balanced Scorecard is in profits. Priorities become a little
adherence to a “hot” few is of measures in place causing
effect. Priorities are clear to all. clearer.
common. conflict.
Trends are positive.
Leadership regularly reviews
data with Line Technicians.
Employees are clearly aware
of the need to meet changing
Most employees understand
customer demands and Employees are interested in
and participate in ongoing Passive suggestion system is Only real concern is the
improve to succeed. improving and are given limited
improvement and have in place, but no real training or paycheck. No interest in
Improvement activity is regular feedback and training.
knowledge of customer motivation supplied to general business operation,
3.3 PERFORMANCE FOCUS and vigorous. Needs and
demands. Focus on
However, involvement is low
employees. Little feedback or improvements, or belief in
3
feedback are communicated key and not well organized.
performance still needs to be communication to employees change. Very little/no contact
well. Line Technicians Some customer awareness is
built into on their involvement in or interest with the customer.
understand and present present.
training/compensation.
performance to the leadership
team.
Training deployed from training
strategy to support core Training is a low priority. Tools
process. Managers aligned brought in without
with training support implementation strategy or
All areas have multiple skill
responsibility. Natural & cross- Training across job Multiple skill cross training alignment to business plan and
matrix dashboards & all
functional teams form to meet classifications and kaizen tools begins within process areas organizational needs. Leaders
4 PEOPLE 4.1 SKILLS AND TRAINING
organizational needs. All are learned & used by all
associates have doubled their
using standards and matrix do not participate in training or
3
skill base within the last
employees trained in core associates. skill boards. adequately support
quarter.
competency and job task skills implementation. No one is
and this information is posted interested in multiple skills
in matrix form in the forming development.
teams departments.
Improvement & problem
Associates understand how solving are the responsibility of
their equipment works and managers and technical
improve constantly. experts (engineers, process
Each area has teams in place Every major work area has Model improvement areas
Performance evaluation tracks technicians). Improvement is
INVOLVEMENT and complete two projects per improvement area. 24 developed for associates to
participation in kaizen at all viewed negatively and a
4.2 IMPROVEMENT IDEAS AND
levels, including management.
year per team. 24 improvement ideas per person, make improvement items. 6
source of tension between
3
TEAMS improvement idea per person, per year. Improvements done improvement ideas per person,
People recognized and worker & management.
per year. through teams and individuals. per year.
rewarded to encourage Associates see kaizen as a
participation. 60 improvement burden, adding work rather
ideas per person, per year. than eliminating it, reducing it,
simplifying it or incorporating it.
Work group leaders and
Steady, easy predictable
supervisors and associates quot;Tool Boxquot; meetings are held Punctuality with respect to
rhythm in all jobs. Standards
Associated work entire shift work on time control issues. at the beginning of each start start, end, breaks, lunch
4.3 TIME MANAGEMENT clearly communicated and
with no punctuality problems. Breaks, lunches, and of cycle for each team and meetings is not tracked or
2
supervision for time
meetings, last as long as each shift. important.
management is not required.
scheduled.

6. Leadership direction is
People are competent, self
ambiguous and unclear.
managed, and empowered,
Blaming is pervasive with little
driven by data and collaborate
attempt to problem solve or
in solving problems rather than
Management leads teams to Every work area has projects Begin training in principles and prevent future issues.
assigning blame. kaizen
do improvement projects. Each in place which are aligned with concepts of kaizen Favoritism and politics frame
EMPOWERMENT AND principles used as a barometer
4.4
CULTURE of self assessment. All levels
area has teams in place and management goals and driven (foundation). Model areas leadership and management 4
complete two projects per year by management. Complete working on specific decisions. Management
and disciplines respect the
per team one project per year per team. improvement projects. believes associates need to be
need for diversity of their roles
highly supervised. Poor
and skills and work together.
information flow at all levels.
People have confidence in the
kaizen principles and concepts
direction of leadership.
are not known or understood.
II Improvement Idea) system is
fully operational and is
management closely. Ideas on
how associates can improve
Safety, Quality, Delivery, Cost,
Productivity, Manufacturing
Archaic 'suggestion box' in
Cycle Time, Overtime, Scrap,
which employees suggest
Defects, Outbound Freight, No employee improvement
4.5 IMPROVEMENT IDEAS
Inventory Accuracy, Customer
ideas that do touch on
ideas program exists.
4
companies performance
Service, First Time Quality,
metrics.
Internal Quality, External
Quality, On-time Delivery,
Redundancies, New products,
Current Products Breakdowns
or increase morale average 30
a month.
Product quality is competitive
(as shown by benchmarking
data in the market) with few
returns or complaints from
users. Quality problems are
Customer returns and
detected, solved and
complaints are common and
prevented on the line, not at
measured in percentage and
the end of the line. Line
not PPM's. Inspection sorting
technicians are responsible for
are routinely performed, both
quality characteristics in the
Most production processes are Waste of rework, scrap and in house and at the customer
process and manage defect
left running and unmonitored regrind equipment monitoring plant. Focus is on product
and error resolution (visual
during lunch and breaks. All recognized. Shift to quality at rather than process quality at
controls and mistake proofing) Process capability across the
office operations have a one the source associates inspect all levels. Quality is seen as a
as part of their daily jobs. board is 1.3 CpK or higher.
5 QUALITY 5.1 PRODUCT QUALITY
Customer input regarding
page standard. Customer
10% of office operations have
their own quality. Model areas QA department and 5
returns low measured in parts have specific quality engineering responsibility.
quality cost and delivery a one page standard.
per million. Intense work with standards. Process capability high variations in process
requirements is continual and
suppliers to improve product studies done on major resulting in high rework scrap
supported by effective systems
and process quality. equipment. and regrind. Outdated or non-
of communication. Quality in
documented standards exist. 7
the process is a shared
visual controls are not in place.
understanding at all levels.
Processes are monitored one
Supplier to customer value
machine one person quot;because
chair is emphasized as
they could make a defect.quot;
essential to Quality First.
Teams use appropriate
problem solving tools (5 Whys/
8D) to prevent quality
problems.
QA systems better than
Quality system is based upon
ISO-9000 requirements. Quality system ISO-9000 level
Improvement of quality system Quality systems change is military standards and is
Quality data (internal 7 in all areas of the plant and
seen in all areas of the plant being modeled in pilot areas. inspection oriented. ISO-9000
external) effectively collected, company. Alignment of
5.2 ASSURANCE SYSTEM per ISO-9000 requirements. ISO-9000 implementation has is seen as a required quality
reported, documented & used management system to
Associates along with begun. Standards are system rather that a standards
for improvement leads to associate activity on shop
supervisors write standards. associated assuring quality. checklist common to all
ongoing kaizen of all floor.
systems.
standards.