9/30/2015

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Lean Leiders Ontwikkelen op alle Niveaus11 september 2015, Amsterdam

Leading through PDCA:

The Leadership Development Model and First Step

Jeffrey K. LikerProfessor, Industrial and Operations Engineering

The University of Michigan

CRAFT Lean Seminar

Amsterdam

September 11, 2015

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The 21st Century Challenge

Coping with Uncertainty and adapting to change!

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What is Lean Six Sigma?

Conventional Definitions—Not Enough!

•Lean is a toolkit for eliminating waste to reduce lead time in end-to-end value streams.

•Six Sigma is the statistical analysts toolkit for measuring and reducing process variability.

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Jim Womack’s recent 25-year reflection on Lean:

“Most management decided they could outsource Lean… Please go do it, here’s your budget, and please get some results…and now I will be onto the next issue… It produces something, but it doesn’t produce what we had intended, which was that this would become the core way that managers think.”

Planet Lean Interview, UK Lean Summit, 2014https://www.youtube.com/watch?v=KYi6gkFYYpU

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In the past 25 years we've often tried to define Lean by listing things like its elements and principles.

A better definition is less about "things" associated with Lean and more about describing the mindset of Lean.

A Better Definition of "Lean"

“Lean is the permanent struggle to better flow value to each customer”

With Mike Rother

http://www.slideshare.net/mike734/a-definition-of-lean

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9/30/2015

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VisibleLean tools and techniques to improve quality, cost and delivery

Typical Focus of Lean Programs

Note Lean tools and techniques can be powerful and the craft takes decades to master

By Mike Rother

The Craft Behind the Tool is what Matters

Toyota uses tools to highlight problems and teach a way of improving, led by an experienced mentor.

Without this, the probability of sustainable improvement is low.

The thinking and behavior patterns at Toyota are heldin their seasoned coaches, not in lean tools

Lean Tool

The desired pattern of thinking & acting is here

Mentor

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http://www.slideshare.net/mike734/a3-and-the-improvement-kata

By Mike Rother

Source: Mike Rother

Visible

LessVisible

Lean tools and techniques to improve quality, cost and delivery

• A systematic, scientific way of thinking and acting to meet the next challenge

• Managers as the teachers of that way

Lean Leadership is Less Visible

This less visible part is a contextfor making the Lean tools and practices work

PREDICTIONTestable

ACTIONConduct theexperiment

EVALUATEAdjust based on what you learn

EVIDENCECollect facts and data

PLAN

DO

1

23

4

CHECK(Study)

ACT

By Mike Rother 10

The Scientific Learning Cycle is the Heart of Lean Leadership, calledPlan-Do-Check-Act" or "Plan-Do-Study-Act"

The Problem• We naturally desire to get from the problem

to the solution as quickly as possible

• We assume we know!

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Toyota Develops People who Live the Toyota Way

Building

Lean Systems

& Structure

Kaizen Mind

& Innovative

Thinking

Promoting

Organizational

Learning

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3

Lean Leadership Starts with Values

TRUE NORTHVALUESChallenge

Kaizen Mind

Go and See

Teamwork

Respect

Stretch and Develop Us to Creatively Reach the Goal

Systematic Problem Solving that Never Ends

Observe to Understand the Actual Situation

Highly Developed Individuals Working toward a Goal

People are our only appreciating asset

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Lean Leadership Development Model

3 Support Daily Kaizen

2 Coach and Develop

Others4 Create Vision and

Align Goals

1 Commit to Self Development

TRUE NORTHVALUES

Challenge

Kaizen Mind

Go and See

Teamwork

Respect

See and challenge

true potential in

others though self-

development learning

cycles

P

D

C

A

P

D

C

A

P

D

C

A

P

D

C

A

Create True North vision

and align goals vertically

and horizontally

Starts

Here Learn to live True North values

through repeated Learning Cycles

Build local capability throughout

for daily Management & Kaizen 14

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What you are doing

and why?

What are the

data and facts?

What are you

Learning?

What is your next

step and when?

We know what attributes we want, like leading from the gemba, but do we know how to get there?

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THINKING AND WORKING SCIENTIFICALLY

Toyota managers teach daily a universal means of improving, adapting and innovating.

Toyota's management approach involves teaching people a scientific mindset that can be applied to an infinite number of objectives.

Source: Mike Rother

By Mike Rother

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A kata is a structured routine you practice deliberately so its pattern

becomes a habit and leaves you with new abilities

Why does having a kata matter?

It’s a way of transferring skills and developing mindset in a team or organization!

We must LEARN to think & act scientifically

Leaders must master routines (kata) for improvement and then master routines

for developing others.

By Mike Rother18

Improvement Needs a Clear Direction

Thingswe HAVE

to do

Thingswe

CAN do

What do you want to

achieve?

By Mike Rother

9/30/2015

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Challenge VisionNext

TargetCondition

CurrentCondition Obstacles

THE IMPROVEMENT KATA PATTERN

A systematic, scientific way of working

By Mike Rother 19

(Manager)

THE IMPROVEMENT KATA+ THE COACHING KATA

It’s a methodology for developing peopleto meet challenges

By Mike Rother

Improvement

Kata

Coaching

Kata

Understand the Directionor Challenge

Grasp the Current

Condition

Establish the Next Target

Condition

IterateToward the

Target Condition

‘Executing’Coaching

Cycles

‘Planning’ Coaching Cycles

Learner

Coach

Practice Doing Something with a Coach Daily

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Leading through PDCA:

Support Daily Kaizen

Jeffrey K. LikerProfessor, Industrial and Operations Engineering

The University of Michigan

CRAFT Lean Seminar

Amsterdam

September 11, 2015

Lean Leadership Development Model

3 Support Daily Kaizen

2 Coach and Develop

Others4 Create Vision and

Align Goals

1 Commit to Self Development

TRUE NORTHVALUES

Challenge

Kaizen Mind

Go and See

Teamwork

Respect

See and challenge

true potential in

others though self-

development learning

cycles

P

D

C

A

P

D

C

A

P

D

C

A

P

D

C

A

Create True North vision

and align goals vertically

and horizontally

Learn to live True North values

through repeated Learning Cycles

Build local capability throughout

for daily Management & Kaizen

Daily Practice Leads to New Mind Set

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Forms available on theToyota Kata Website

Learner's Storyboard

Source: Mike Rother

HP Tronic(contract electronics manufacturer)

• 3-year Challenge: Production volume 50% higher with the same personnel and floor space.

• 2014 started four areas: Sales, Purchasing, Engineering and Quotation Group

• Conducted 150 PDCA experiments so far

• Daily activity in each area with coaching cycles

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Story Board: Sales Organization

Using the Kata Story Board

PDCA CYCLES RECORD

One Example Target Condition

• Quotation Process

– Defined work process for better integration sales, purchasing engineering

– 85% Requests for Quote complete within standard time

Visualization of Quotation Process

Results of Experiments

• Daily seven-minute meeting, a whiteboard that visualizes the flow, and a set meeting agenda

• Participants feel more control and far better communication

• Achieving standard lead time increased from 60 % to 85% (May 2014) and 90% (June 2014)

Typical Toyota Organization in Manufacturing: Tall, Unlean?

Team Member

Team Leader

Group Leader

Asst. Manager

Manager

{ 5 - 8 }

{ 3 - 4 }

{ 5 - 8 }

{ 4 - 10 }

Team Size

Kaizen

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Stop the Line: Andon Empowers People

1 2 3 4 5 6

Where is the

problem? We’ve

got to solve it!

• Expose and

Attack

Problems

• Seek Out

Root Cause

of Problems

• Fix

Problems 1

by 1

What is the help chain?

Andon Requires Quick Response

Continuous Improvement means a little better every day:

Visual Management Boards for Each Work Group

Quality Section of Team Board for Floor Management Development System

VCCS LEAN KISI TPS

Our lives are centered around our Visual Planning

Boards where we establish the link from Vision, Mission

etc to Tasks. The tasks in my management teams are of

two kinds: 1. Strategic Initiatives (they are six now and

for a decade). 2. Develop work and processes to

kaizen. The blue “Task-post-it” goes through a

qualifying process with the help of the coach and then

into a PDCA. Then to the Visual Planning Board and

becomes a part of that persons jobs during the

specified period.

Lean at Volvo Cars Customer Service

Einar Gudmundsson, former VP

9/30/2015

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Go and see

• See facts at the source

• Discuss problems with the people on the floor

• Check the pace of progress

• Learn to Coach

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Correct Deviations from the Standard

Make the production line visible

Raise management standards

Reveal problems at all times

Solve problems one by one

What do Lean Managers Do?

• Self Develop Skills for Improvement to meet Challenges

• Go and See the Actual Situation (core of improvement kata)

• Live the Values to Act as a Role Model

• Learn to Develop Others to Improve by Living the Values

• Create and Lead toward a Shared Vision

• Pay Equal Attention to Business Results and People Development

Leading through PDCA:

Lessons Learned

Jeffrey K. LikerProfessor, Industrial and Operations Engineering

The University of Michigan

CRAFT Lean Seminar

Amsterdam

September 11, 2015

PREDICTIONTestable

ACTIONConduct theexperiment

EVALUATEAdjust based on what you learn

EVIDENCECollect facts and data

PLAN

DO

1

23

4

CHECK(Study)

ACT

By Mike Rother 41

We are trying to develop a scientific mindset as our habitual way of thinking

The 21st Brain: Barely evolved in ten thousand years

Using existing

Routines

Feels Good!

Learning something

New is Painful!

Amygdale•Habitual/Routine

Behaviors

•Reptilian Brain Structure

•Dopamine Receptors:

PLEASURABLE

“The “Hidden Brain”

Prefrontal Cortex•New Information

Storage & Evaluation

•Prefrontal Cortex

•High energy needs:

PAINFUL!!!

“The “Reasoning Brain”

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We Need a True North Vision for our Culture

“The Toyota Way

2001 is an ideal, a

standard and a

guiding beacon for

the people of the

global Toyota

organization.”

Lean Leadership Development Model

3 Support Daily Kaizen

2 Coach and Develop

Others4 Create Vision and

Align Goals

1 Commit to Self Development

TRUE NORTHVALUES

Challenge

Kaizen Mind

Go and See

Teamwork

Respect

See and challenge

true potential in

others though self-

development learning

cycles

P

D

C

A

P

D

C

A

P

D

C

A

P

D

C

A

Create True North vision

and align goals vertically

and horizontally

Starts

Here Learn to live True North values

through repeated Learning Cycles

Build local capability throughout

for daily Management & Kaizen

45

IMPROVEMENT BASED ON“ELIMINATE WASTE” IS FLAWED

The elimination of waste is an outcomeof pursuing a particular goal

Distant1-3 years

1 week –3 months

Often Vague“Principles”Concrete

Hard Metrics

Successive T/Csto achieve the

Challenge

Source: Mike Rother

A Challenge should be systematically pursued by breaking it down to

successive concrete Target Conditions

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We Must Make this Habitual and Institutionalized

ExampleKata

“Let’s begin by practicing it this way for a while.”

By Mike Rother

We Need Kata to Develop Good Improvement Habits

2

CurrentCondition

Poster 2

WHAT IT LOOKS LIKE

Kata in the Classroom / Mike Rother

Challenge

1

Experiments4

NextTarget

Condition

3

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We Learn How to Improve with a Coach

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WHAT you’re working on: The focus process provides the content

HOW you’re working: The Improvement Kata provides the form

Source: Mike Rother

Learner

Coach

Card is downloadable at:

http://www-personal.umich.edu/~mrother/KATA_Files/5Q_Card.pdf

By Mike Rother50

A Standard for Coaching Kata

By Mike Rother

A CHALLENGE FOR THE COACH

ApparentCertainty

The Learner should practice in a Learning Zone, beyond their current knowledge and skill thresholds, yet also periodically get a feeling of progress.

In other words, the Coach is responsible for the Learner's success.

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Learning new skills and habits requiresan emotion of enthusiasm in the Learner

There is aLEARNING PROGRESSION

Able to TEACH it

AWARE of it

Able to DO it

Sorry, noway around it

52By Mike Rother

SelfDevelopment

DevelopingOthers

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What a Coaching Session Looks Like

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Key Takeaways

• Continuous improvement means people struggling together to get better every day

• Breakthrough Innovation comes from people striving to meet a challenge through many small steps

• Focusing on value to customers naturally leads to quality, cost, delivery, safety and morale

• Leaders must be teachers of continuous improvement

• leaders must learn through daily practice of the improvement and coaching kata to become effective teachers

OntwikkeltrajectLean Leiderschap op alle Niveaus

• De Liker Lean Academy verzorgt het in-company

Ontwikkeltraject Lean Leiderschap.

• Bestemd voor “hands-on” directieleden,

managementteamleden en middenkader die zich in de

praktijk willen ontwikkelen tot Lean Leider

• Een jaar lang intensieve training en coaching bij het

doorlopen van de 4 ontwikkelstappen

• Meer informatie bij:

– Ton Hodes (tonhodes@craftlean.com)

– Dirk Jan Bakker (dirkjanbakker@craftlean.com)