Lean Strategy Deployment - Quick Overview

LEAN STRATEGY
DEPLOYMENT
OVERVIEW
1
ALFRA Consulting | Developing Partners

Lean Thinking
Waste within
the system
(high inventory, defects, waiting & more… )
Lean Enterprise
PRODUCT
BUILT & SHIPPED
CUSTOMER
ORDER
Short Lead Time
Waste out of
the System
Traditional Business
PRODUCT
BUILT & SHIPPED
CUSTOMER
ORDER
Very long Lead Time

Common Reasons of a Lean
Transformation Failure
Why companies don’t get to embed Lean in the Culture
• View lean only as a technical “toolkit” not as an integrated
system.
• Lean is a “Program” with a start & end date.
• Focused only on financial short-term results
• Fail to develop people at all levels (another short term bet)
• Inconsistent & Weak leadership direction, Leadership manage
from the office (never seen on Gemba)
• Lean is owned by a department, not for all the company
• No strategy at all, isolated application of tools around the
company and processes!!

Kanban.
5S Andon
Slogans
The Iceberg Model
SMED
Supermarkets
VISIBLE
TOOLS & DEVICES
PHILOSOPHY

Results as Lean Strategy Evolves
Without Philosophy
No strategy at all!!
98% of companies fail here!!
With Philosophy
Systems that enable the
culture development
I. Apply some Tools II. Management Led Lean III. Aligned
Continuous Improvement
Business Results from Lean Transformation
Starting Maturity
Maturity in Integrating Lean and Business Strategy

• After thirty years of experience with lean programs, originally modeled after the Toyota
Production System, there are many victories to celebrate with stunning results, but also
much disappointment. The victories typically come from individual projects which
have “leaned out” processes, the disappointment comes from the failure to sustain
the new lean processes that show so much promise.
• Lean tools become enablers to developing people who can identify and solve problems
finding innovative solutions to move the company ahead.
• The lean office shifts from technical transformers to social and cultural enablers to
managers at all levels, and shop floor associates, teaching and coaching them to find and
eliminate waste. A few process improvers grows to an army of process improvers all
over the company.
• One of the first steps in moving from expert-driven lean tools to building a culture of
continuous excellence is to understand the gaps between where you are and where you
could be.

The assessment we have designed focuses holistically on what I call the 4P
model:
• Together the 4Ps made up a dynamic, adaptable organization.
• This assessment, based on the holistic model, will reveal gaps between where
you are and where you want to be.
• We include specific recommendations, and, if desired, training to facilitate
your journey.
• The assessment is against a vision of an excellent learning enterprise. It
requires senior management commitment who passionately believe in this
vision. We can help crystallize this vision and the steps needed to get there.
.

Assessment for the 4P’s
3
Plant Tour &
Assessment Deployment
Weaknesses
& Strengths Analysis
1 2
Transformation Roadmap
Systems Deployment
Assessment Summary Phase 1 Descriptions
4 5 6

“Base management decisions on a long term philosophy, even at
the expense of short term financial goals”
Category description:
Why is a Long-Term Philosophy the Foundation?
Toyota is serious about long term thinking. The focus from the very top of the
company is to add value to customers and society. This drives a long-term
approach to building a learning organization, one that can adapt to changes in
the environment and survive as a productive organization. Without this
foundation, none of the investments Toyota makes in continuous
improvement and learning would be possible.
Evidence to assess for this category:
 Serve Society and Customers through exceptional products or services
 Contribute to the economic growth of the country and community in which it
is located.
 Contribute to the stability and well being of team members
 Contribute to the overall growth of the company

“The right Process will Produce the Right Results”
. Toyota is a process-oriented company. They have learned through experience
what processes work, reaching toward the ideal of one piece flow. Flow is the
key to achieving the best quality at the lowest cost with high safety and
morale. At Toyota this process focus is built into the company’s DNA, and
managers believe in their hearts that using the right process will lead to the
results they desire.
Problem
Solving
(Continuous
Improvement & Learning)
People & Partners
(Respect, Challenge & Grow them
Process
(Eliminates Waste)
Philosophy
(Long Term Thinking)
How you
Add value
•Yamazumi Management
•Visual Management and 5S so no problems are
hidden
•Standard Work
•Quality at the source systems
•Leveled workload
•Continuous Flow Structures
•Use pull systems to avoid overproduction
•Use only reliable, thoroughly tested technology

Add Value to the organization by Developing
Your People and Partners.
1. Create a strong, stable culture in which company values and beliefs are widely shared and lived out
 Positive Energy for Change From People
 Leaders are seen as teachers.
 Getting people to go where they would not normally go.
 Getting people aligned to a common objective.
 Teamwork means solving problems across functions.
 Create platforms for teamwork.
Problem
Solving
(Continuous
People & Partners
Process
(Eliminates Waste)
Philosophy
The Heart &
Soul of the
Toyota Way
over a period of many years.
2. Use cross-functional teams to improve quality and productivity and enhance flow by solving difficult
technical problems. Empowerment occurs when people use the company’s tools to improve the
company.
3. Make an ongoing effort to teach individuals how to work together as teams toward common goals.
Teamwork is something that has to be learned.
4. Culture cannot be copied, People are your only appreciating assets!
5. The Value of People is in their creativity, passion, and commitment to the business.

“Continuous Improvement and Learning “
• Solving root Problems Drives Organizational Learning. The highest level of the
Toyota Way is organizational learning. Identifying root causes of problems and
preventing them form occurring is the focus of Toyota’s continuous learning
system. Tough analysis, reflection, and communication of lessons learned are
central to improvement as is the discipline to standardize the best-known way.
• Maturity in Integrating Lean and Business Strategy
• Standard methodology & tools
• Cascading approach
• Standard evaluation tool
• Recognition of roles
• Focus on drive & dedication
• On-Job Development (OJD) emphasis
• Eventual connection to HR systems
• Local ownership of lean by team members and leaders
• Clear evidence of lean thinking in work groups
• Activity is continuous (team & individual focus)
• Activity is aligned with business goals (hoshin kanri)
Problem
Solving
(Continuous
People & Partners
Process
(Eliminates Waste)
Philosophy
The dynamic
of the
Toyota way

In this case the company name assessed is not revealed, let’s review the
deliverables of the ToyotaWay Assessment:
• Making first the analysis of the 4P’s and identifying the company strengths
and weaknesses, we make the summary per category.
• We create the strategic long term roadmap, establishing with systems will be
deployed in every stage.
• We develop a work plan for every phase, and explain how systems will help
our people to live the company values.
• We advise then of should be the work structure, It requires senior
management commitment who passionately believe in this vision.
.

Identified Strengths
•Respect and reciprocity at all levels
•Workers benefits are perceived above other companies of the region
•+760 days without lost day accidents at site level
•Talent development for critical position with junior positions
•A wide variety of involvement, engagement & social responsibility programs
•Strong Technical training and certifications for DL & IDL
•Highly skilled management team
•IT System that helps to collect data and information
•Improvement events area driven constantly to reduce space, defects and costs.
•Good Structure for Engineering and Maintenance areas
•Corporate Support and Strategy
•A Long term stable costumer portfolio
•People care about their works and their results
•Familiar and Comfortable work atmosphere at all company levels
•Community care programs to involve and help with the company
•Leaders and team members engaged
•Costumer Satisfaction Metrics drives the measurement of the business
PROBLEM SOLVING
PEOPLE & PARTNERS
PROCESS
PHILOSOPHY
•Wide variety of tools & methodologies (6 sigma, lean ) to improve processes
•Kaizen program to drive daily small improvements

Identified Opportunities
•Continuous Improvement approach is only responsibility from Lean Department
•Lack of a scientific thinking to solve day to day regular problems
•Lean is only understood at tools levels to improve process trough events
•Mostly understanding the ”Know How” instead the “Know Why
•Majority of continuous improvements efforts are only focused on ROI
•Development of people depends on leaders will
•Leaders don’t spend enough time to understand first hand the situation (gemba)
•Recognition system is only based on money bonuses
•People don’t feel involved in improvements and changes, communication is not
always effective
•There is a perception of Long distance between operators and top management
•Performance review is focused on results instead of process
•Its hard to visualize process flow, performance and countermeasures (lack of
visual factories)
•Operators are not treated like Doctors
•Several Leaders don’t have a deep understanding of the operations
•Functional Silos, some local KPI or accounted to who can´t affect directly to it
•Poor frequency for daily management performance review
•People don’t challenge status quo
•There are hidden cost and implications that not everybody is aware of it
•Site is not working at full capacity & can handle more costumers
•Sometimes KPI’s and their influence are difficult to understand at all levels
•High Turnover rate for temporal direct labor workers
PROBLEM SOLVING
PEOPLE & PARTNERS
PROCESS
PHILOSOPHY

Systems Deployment Roadmap
Operational Excellence
Assessment behavior based
Coaching Kata
at top and mid level
Standard reporting systems across the site
Lean Leadership Mid Level Coaching
PROBLEM SOLVING
PEOPLE & PARTNERS
PROCESS
Idea suggestion program
based on lean
Daily management practices
Development
Value StreamManagement
Standard Work System
5S & Visual Management
Problem Solving
(PDCA & A3 Thinking)
Internal
Lean assessment
Stage 1 Stage 2
Quality at the source
Door to door pull systems
Autonomous Maintenance
Recognition & Communication
On Job Development
Leveled Manufacturing Mix
Stage 3
Lean Metrics as KPI
Aligned Policy Deployment at all levels
Self managed teams
Cross Training Between
Deploy Practical OpEx Training Business Units
Pull Systems between
manufacturing processes
Stage 4
Yamazumi Management
Deploy SMED
practices
Material Management System
Correct accountability of KPI that drives correct behaviors
PHILOSOPHY
Total Business Results from Lean Transformation
Maturity in Integrating Lean and Business Strategy
Polcy Deployment per bussiness unit
Yokoten across all departments

Systems Deployment Phase 1
Daily management
practices
Deploy Practical OpEx
Training
Recognition &
Communication
Standard Work System
Yamazumi Management
•Poor frequency for daily management
performance review
•People don’t challenge status quo
•Mostly understanding the ”Know How”
instead the “KnowWhy”
•Lean is only understood at tools levels to
improve process trough events
Toyota Way
Principles
Systems to be
Deployed
Company Weakness
Values
Creativity &
Innovation
Teamwork
Flexibility
Efficiency
Trust &
Commitment
5S & Visual
Management
Correct accountability of
KPI that drives correct
behaviors
•Leaders don’t spent enough time to
understand first hand the situation (gemba)
•Recognition system is only based on money
bonuses
•Several Leaders don’t have a deep
understanding of the operations
•Perception of Long distance between
operators and top management
•Performance review is focused on
results instead of process
•Its hard to visualize process flow,
performance and countermeasures
(lack of visual factories)
•Operators are not treated like
Doctors
•KPI’s and their Influence
are difficult to understand at
all levels.
•Functional Silos
Kaizen
Genchi Genbutsu
Nemawashi
Grow leaders who live the philosophy
Respect, develop and challenge your people
Respect, challenge, and help your suppliers
Create process “flow” to surface problems
Level out the workload (Heijunka)
Stop when there is a quality problem (Jidoka)
Use pull systems to avoid overproduction
Standardize tasks for continuous improvement
Use visual control so no problems are hidden
Use only reliable, thoroughly tested
technology
Base management decisions on a long-term
philosophy, even at the expense of short-term
financial goals

Lean Systems Deployment
Quick Examples

DEPLOYMENT OF PRACTICAL
OPERATIONAL EXCELLENCE TRAINING
For phase 1 recommend to provide training to the people at the plant in different
operational excellence tools and concepts, if possible should be a mix of theoretical and
practical development, measuring the effectiveness of the training with improvement
ideas and events depending of the organizational level.
Defining which tools and concepts must be taught to each level.
•Direct Labor – Awareness Training: production workers should be trained in lean
principles,7 wastes, value added, Yamazumi basics, and stability tools ( 5S, standard
work, visual control), then in a future stages they must be trained in deep in another
tools
•Medium levels: should complete awareness training, lean tools & Value stream map.
CEO and Sensei Discussion
“But what if I train my people and then they up and leave,” a CEO once
blurted out to a lean sensei. “What if you don’t and they stay,” answered
the sensei.
21
•Leadership Levels: Should complete awareness training + lean leadership

The Doctor Approach
• We should treat our Value Adding workers has
doctors, the rest of us should be there to help them
to succeed in their purpose (add value).

YAMAZUMI MANAGEMENT SYSTEM
A Yamazumi (Japanese work that means to stack) is a powerful visual tool that creates awareness for
the workers which portion of their cycle time activities are classified in:
 Value added (VA),
 Required non value added (BVA)
 Non value added/Waste (NVA)
This will help to identify and eliminate wastes, improve required non value added, and focus only in
performing value added activities, this will also provide visibility to balance the workloads according
to take time and identify bottlenecks, this system aligned with standard work and visual
management will drive the desired behavior where support departments treat operators like the
nurses supports a doctor, providing tools so they can improve they work, enabling the ability to
kaizen their own activities.
Workstatio task classification Yamazumi Chart for a complete process

 Considering the above and with the work of at least two years, this company could
demonstrate significant progress in the creation of a sustainable continuous
learning and improvement culture.
 The advance in the lean transformation should be measured with an assessment
every time when moving to another deployment phase, the way to measure it
should be by behaviors identified.
 The way this plan can be followed and be successful depends on the organization
leadership; they must lead in a “hands on” approach the deployment of the
systems and set the direction to engage employees.
 It is also advisable to start with an area that is considered as an area where the
project can be controlled to deploy Lean Successfully
 It helps when planning any changes in the organization to think about which
desired behavior you’re trying to achieve for the company employees.
FINAL COMMENTS

Lessons Learned Today?
• Write us, and share your thoughts with us,
how could we improve this presentation?

Contact Information
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www.alfraconsulting.com
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Lean Strategy Deployment - Quick Overview

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