culture or quality
DESCRIPTION
How blending culture and quality can lead to continuous process improvementTRANSCRIPT
Fred Levko Lean Consulting Group, LLC
Culture or QualityWhat does your company
need?
2Fred Levko Lean Consulting Group, LLC
Fred LevkoBSEE Oakland University, MBA DePaul
UniversityProduct Design Engineer with Eleven
PatentsFord Motor Company Lean CertifiedLean Six Sigma Black Belt30 years experience in product development,
manufacturing, and process improvementLean Consulting Clients in Healthcare, Non-
Profit, Medical Devices, Automotive Parts, Computer Peripherals
3Fred Levko Lean Consulting Group, LLC
Statement of FactIf there is more than one, you have a culture.
You prefer good over bad.
4Fred Levko Lean Consulting Group, LLC
Can your Company survive without Quality?Quality—The perceived value the customer
receives for their expense.Cost of Quality—The resources expended by
the company to assure the attainment or maintenance of the value developed, produced, and/or delivered to the customer.
Real Cost—Inspectors, scrap, rework, supplier validation, excess inventory, training, field service
Hidden Cost—Lost reputation, future market-share, customer loyalty, goodwill, audits
5Fred Levko Lean Consulting Group, LLC
Can your Company survive without Culture?Leadership—Establish an environment of values
that define expected behavior and results.Relationships—People react to the work demands
by creating norms to attain successful outcomes.Communications—Context and belief of the
message distributed among the group about activities to perform work.
Reward—Leadership’s encouragement to complete work demands that will benefit the participants.
6Fred Levko Lean Consulting Group, LLC
What comes first?
ORQuality Culture
Fred Levko Lean Consulting Group, LLC
"Time was when a man could order a pair of shoes directly from the cobbler. By measuring the foot himself and personally handling all aspects of manufacturing, the cobbler could assure the customer would be satisfied."
Historical Reference
Fred Levko Lean Consulting Group, LLC
Pre-industrial 1890 Mass 1920 Lean 1980
Peo
ple
§ Craftsman perform allaspects of task
§ Self-taught orapprenticeshiptraining
§ Employees contributeminimally to totalproduct
§ Training for limitedskills
§ Management makesdecisions
§ Clusters ofemployees workingin team§ Extensivecontinuing training
Pro
duct
§ Customized, non-standard products
§ Variation in quality
§ Standardized, focusedon volume not quality
§ Focus on internal/external customer
Wor
kE
nvir
onm
ent § Independence,
discretion§ Variety of skills§ responsibility
§ Obey mgmnt.§ Repetitive, mind-
numbing work§ Limited skills,
knowledge, littlediscretion, simplifiedtasks
§ Some discretion,group effectiveness,empowerment, teamaccountability, workcells
Quality of Individual
’s work valued by Customer
History of Manufacturing
Fred Levko Lean Consulting Group, LLC
Pre-industrial 1890 Mass 1920 Lean 1980
Peo
ple
§ Craftsman perform allaspects of task
§ Self-taught orapprenticeshiptraining
§ Employees contributeminimally to totalproduct
§ Training for limitedskills
§ Management makesdecisions
§ Clusters ofemployees workingin team§ Extensivecontinuing training
Pro
duct
§ Customized, non-standard products
§ Variation in quality
§ Standardized, focusedon volume not quality
§ Focus on internal/external customer
Wor
kE
nvir
onm
ent § Independence,
discretion§ Variety of skills§ responsibility
§ Obey mgmnt.§ Repetitive, mind-
numbing work§ Limited skills,
knowledge, littlediscretion, simplifiedtasks
§ Some discretion,group effectiveness,empowerment, teamaccountability, workcells
Group Individual
s to do work
through company culture
History of Manufacturing
Fred Levko Lean Consulting Group, LLC
Pre-industrial 1890 Mass 1920 Lean 1980
Peo
ple
§ Craftsman perform allaspects of task
§ Self-taught orapprenticeshiptraining
§ Employees contributeminimally to totalproduct
§ Training for limitedskills
§ Management makesdecisions
§ Clusters ofemployees workingin team§ Extensivecontinuing training
Pro
duct
§ Customized, non-standard products
§ Variation in quality
§ Standardized, focusedon volume not quality
§ Focus on internal/external customer
Wor
kE
nvir
onm
ent § Independence,
discretion§ Variety of skills§ responsibility
§ Obey mgmnt.§ Repetitive, mind-
numbing work§ Limited skills,
knowledge, littlediscretion, simplifiedtasks
§ Some discretion,group effectiveness,empowerment, teamaccountability, workcells
Affordable Products
differential by Quality
available from customer
value driven company
Current
History of Manufacturing
11Fred Levko Lean Consulting Group, LLC
The RealityQuality spawns the development of Culture as
people team to do work.
Culture evolves from ‘separation-of-labor’ to collaboration among internal customers (up stream & down stream from work process)
Leadership’s relation to workers changes from “. . .do your work as you are told” to
“. . .how can I help you improve your work”.
Culture cultivates QualityCustomer buying habits change from
‘whatever-is-available’ to competitive selection.
12Fred Levko Lean Consulting Group, LLC
The RealityExtinct High Quality Companies
Mercury, Oldsmobile, Singer, Digital
Extinct Deep CulturesIBM, Pan-Am, Arthur-Anderson
Adaptive Culture for High QualityGoogle, Toyota, Wal-mart
Emerging sectors of Adaptive Culture with High QualityHealthcare, Energy Management, Social Network
Fred Levko Lean Consulting Group, LLC
Market DrivenEvery morning in Africa, a Gazelle
wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death.
It doesn’t matter whether you are a lion or a gazelle - when the sun comes up, you had better be running.
14Fred Levko Lean Consulting Group, LLC
Requirements to Transition from Traditional to Adaptive
Agile to shifting market demandsDeliver value to the customerShort lead-time to satisfy customer ordersRapid implementation of innovationCustomization for niche market
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Strategy to Leverage Culture and Quality to AdaptCreate a ‘burning-platform’ for changeIdentify gaps of skills and knowledge that
hinder changeImprove cost basis for products and servicesKnow your customerTake advantage of speed
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Methods to changeCulture and QualitySix Sigma specific to QualityLean Enterprise through CulturePolicy Deployment align work effort to
change
Fred Levko Lean Consulting Group, LLC
What is Six Sigma ?
Achieve 3.4 defects per million opportunities
Lead by Six Sigma BeltsStrong emphasis on statistical
analysis
Fred Levko Lean Consulting Group, LLC
What is Lean?
Employee engagement philosophyCollection of process improvement
tools Eliminate waste
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Are they mutually exclusive ?
LeanCulture
6σ Quality
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What they share
LeanCulture
6σ Quality
• Customer Focus
• Leadership• Discipline• Data driven• Teamwork• Process
Improvement• Training
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How they coexist Engage Senior Leadership & Recognize Value Stream
to CustomerIdentify Gaps in Process Performance as leading
indicators to achieve prosperity
Engage Employees to Stabilize Process and
Reduce Waste
Identify Six Sigma Projects to Reduce Process Variation
Sustain and Continuously Improve Process
Lean Leaders
Lean Employees
Six Sigma Belts
Blended
TrainingTrainingTrainingTraining
Lean
6σ
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How they achieve change through projects
Continuous Improvement
Six Sigma Black Belt
DMAIC
Six Sigma Green Belt DMAIC
Kaizen(Rapid Improvement Events)
PDCA
Fred Levko Lean Consulting Group, LLC
Alignment of Change by ‘Line-of-Sight’
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Improve Market Share 15%
Innovate Product Technology
Reduce Cost 15% of Product Portfolio
Select Product Line for 30% less
CostRedesign a
Product from Line
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Align Culture to Cultivate Qualitythrough Policy Deployment
Apply Lean & 6σ
Tools
Leadership Planning
Implementation by Workforce
Reward System
Communications Review
25Fred Levko Lean Consulting Group, LLC
Culture or Quality
What does your company need?
Your company needs both!
Fred Levko Lean Consulting Group, LLC
Thank you for your attention!
Q & A
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