Transcript Lean Leadership Supersession - Distribution Business Management

Lean Leadership Supersession
Video
Session Overview
•
•
•
•
Lean Leadership overview
Case Study Stories
Q&A with Panel
Wrap up and Key Take-Aways
Lean Leadership Audience Participation
• Where is your companies status for Lean /
Continuous Improvement?
1.
2.
3.
4.
Limited examples
Good examples in some areas/functions
Formal structure in place
Imbedded in the culture throughout the
organization
Lean Leadership Audience Participation
• Where are YOU at on your Lean /
Continuous Improvement Journey?
1.
2.
3.
4.
5.
Not Started
Beginning
Been on my journey 1-2 years
3-5 years and teaching
6+ years, teaching and mentoring
Lean Leader – The Story
Rp4 R
HOW
WHY
Lean Leadership Audience Participation
• What IS NOT one of “what” elements for
Lean Leadership
1.
2.
3.
4.
5.
6.
Respect
Purpose
People
Process
Programs
Results
SCLA Lean Leadership Case Studies
International Paper Examples
Non-Conforming Product (NCP)
•
•
A business unit had experienced very high levels of nonconforming product (NCP) consistently for years. Manufacture of
NCP was negatively impacting product manufacturing costs,
supply chain costs, and customer reliability.
$4MM Savings realized via 41% reduction in NCP generation and
18% reduction in NCP inventory.
Supply
Chain
Benefits
Financial
• Reduced NCP Transportation Costs
• Reduce NCP Inventory/Working Capital
• Reduced Aged Product Losses
Benefits
Intangible
Benefits
• More Reliable to Customers
• Additional Capacity
Lean Leadership Learnings
• Lean Operating Principles
– Build Effective Teams with Cross-functional Representation
– Develop Necessary Measurement Systems and Provide Visibility
to Key Metrics
– Ensure Alignment Around Key Metrics
– Experiment and Solve Problems at a Root Cause
– Sustain Results
• Lean Leadership Focus and Behaviors
– New Business Unit Leadership Set a Vision and Challenged the
Organization with a Huge Step Change Improvement Expectation
• No Longer the “Elephant in the Room”
• Overcome Past History/Stigma
• Treat Problems as Treasures
Partial Balances
•
•
•
•
Partial Balance is less than a vehicle quantity in jeopardy of missing
the customer expected delivery date.
Partial Balances not shipped caused missed customer delivery
commitments driving heroic fire fighting.
A Kaizen event was conducted to identify opportunities to improve
the process.
A new process was developed to identify, track, and manage
execution of partial balance shipments.
– The new process was not successfully implemented.
– Key stakeholders did not accept the changes.
Lean Leadership Learnings
• Lean Operating Principles
– Stakeholder Analysis is Vital to Project Success
•
•
Project Success = Quality of the Solution x Stakeholder Acceptance
Engage Early, Don’t Over-look Middle Managers
– Maintain the Discipline of Good Kaizen Event Design.
• Don’t Accept Key Stakeholders Not Attending
• Don’t Shorten Event Timing as Process will be Jeopardized
• Report-outs are Designed for Discussion, Understanding, and Acceptance.
Silence is NOT Good!
• Lean Leadership Focus and Behaviors
– Reflect and Learn From Every Project, Even the Unsuccessful Ones
– Change the Mindset
• Empower Problem Solving vs Rewarding Hero Firefighting
Lean Leadership Audience Participation
• International Paper reduced nonconforming product by what percent?
1.
2.
3.
4.
5.
11%
22%
35%
41%
57%
KC Damage Reduction
Distribution Damage rate of 3.2 cases for every 10,000 handled
What Problem were we trying to solve?
• Network Damage Rate Stagnate
• No Continuous Improvement Focus
• At site level, Results not Predictable
What was our approach?
•
•
•
•
•
•
•
•
3 Year Vision
Process Owner
Annual Strategy Deployment (A3)
Connect to Monthly/Weekly/Daily
Developed team on:
• Standard Work
• Visual Mgmt
• Leader Standard Work
• Simple Problem Solving
Recognized Progress
Offered/Provided Support
Got out of the way!
1
0.8
0.6
0.4
0.2
0
Damage Rate
2011 to Current
Lean Leadership Learnings
•
•
•
•
Small Batch more Frequent
• Monthly, Weekly, Daily
• Easier to check and problem
solve
Standard Work
• Alignment on best way
• Process to improve against
• Clarity
Connected Checking
• People focus on what you check
• Respect for team = Engagement
Discipline
• Discipline
• Discipline
• Discipline
•
•
•
•
Align on Vision
• Set Challenges
Visual Management
• Must drive action
• Daily Problem Solving
Pace of Change
• Success breeds Success
• Know when to get out of way
• Support failure
Transition from Outcome to Process
• Know why you’re successful
• Predictability
• If I do X, I get Y every time
KC Order Fulfillment FTQ
FTQ is the processing of a sales order from order creation to receiving payment with no
rework or excessive wait time
What Problem were we trying to solve?
•
•
•
FTQ was 5%
Teams were working excessive hours
Lack of focus on Strategic Initiatives
What was our approach?
•
•
•
•
Strategy Deployment Session
• Set target of 95% for 2015
Went to the Gemba
Cross functional problem solving
Developed process to sustain
• Daily Standard Work
• Metrics
• Escalation processes
• Leader Standard Work
Lean Leadership Learnings
•
•
•
Go to the Gemba
• Ask the people doing the
work
• Listen and support the
problem solving
Experiment
• Start small and learn from
your results
• New improvements reveal
new problems
Metrics are key
• Provides the visibility on
where to improve
•
•
•
Align on Vision and Strategy
Deployment
• Be Consistent year after year
• Focus team on shorter term
challenges
Change the mindset of our teams
• Ask the WHY questions
• Drive the FTQ thinking
beyond orders
• Everyone does problem
solving
Management Systems is Critical
• Drives Sustainability &
Continuous Improvement
Lean Leadership Audience Participation
• Kimberly-Clark improved order fulfillment
First Time Quality to XX% in 2013?
1.
2.
3.
4.
5.
21%
31%
41%
51%
61%
LEAN LEADERSHIP DNA
Lean Leadership
Q&A Panel
Lean Leadership Audience Participation
• Where is YOUR Lean Leader Maturity?
1.
2.
3.
4.
5.
Unaware
Aware
Doer
Coach
Mentor
Developing Your Lean Leadership IQ
• Lean Culture – Leading & Building
• Lean in Action – Tangible Results
• Getting to Go – Assessing Maturity
Please use the MeetingPlay App
to rate this session:
•
•
•
•
Below Expectations
Met Expectations
Exceeded Expectations
Greatly Exceeded Expectations