everyday lean

EVERYDAY LEANHUMAN ASPECTS OF A LEAN PROGRAMPR ESEN T ED BY: CHA R LES SHI LL IN GBURG

EVERYDAY LEAN ASQ PHOENIX SECTION 0704 10/8/15

EVERYDAY LEAN - VIDEO


MY FOCUS•Customer/Patient

•Brand Value

•Organizational Solutionso Sales

o Service

o Production

o Growth

o Profit


UNIVERSAL CONCEPTS•It’s all about Trust

•Focus on Customer Values/Benefits

•Stabilize Organization/Operations

•Better Use of People

•Let People Absorb Variation

• Don’t Over Standardize

•Just Do It


Increase Value, by increasing Flow, by eliminating Waste Create Stability (vs. Six Sigma=Reduce Variability)

Focus on and, Continuously, Improve the Process and Product Design◦ Scientific Method (PDCA/DMAIC)

Visual Systems◦ Make problems visible where and as they occur◦ Understand cause and effects in real time◦ Problems are opportunities

Respect for People (and Systems)◦ System built on Trust◦ Engaged staff at all levels◦ Engaged supply chain

5

LEAN CONCEPTS


WHAT IS EVERYDAY LEAN?A Way of Thinking, Managing and Working

◦ Systematic, Scientific approach

Focus on the Customer/Patient

◦ Benefits, not Standards

◦ Let People Absorb Variation/Don’t Over-Standardize

◦ Agile/Flexible/Adaptable/Creative

◦ Differentiate

Increase Trust & Value (Sales and Profit), while using the fewest resources

Simplify/Reduce Complexity

Proactive, rather than Reactive

Improve Flow, rather than Scale

◦ Turn Practices into Processes

◦ Robust/Scalable processes (up and down)

◦ Increase capability, capacity, efficiently and effectively

Respect for People

◦ Reduce Fear

◦ Manage Systems

◦ Involve everyone

Continuous improvement

◦ Focus on achieving positive outcomes through process and practice improvement

◦ Experiment

◦ Iterative/Incremental approach

◦ Achieve Interim Outcomes (Successive Approximations to final goal)

Cooperate and Collaborate

Expose problems/Make them Visible

Eliminate Failure Demand

◦ Downstream Demand for services caused by an Upstream System Failure

Do more Value-Added and less Non-Value-Added Activities

Stabilize Organization/Operations

Build Consistency/Reduce Variability

Speed up Deliverables/Throughput

Increase Quality, Reliability, Durability

Increase Sales & Profit

Increase Satisfaction, Loyalty, Advocacy


“MANUFACTURING” VALUE-ADDED•Significantly changes the product

•The customer is willing to pay for it

•Can be done right the first time


“SERVICE” VALUE-ADDED•Significantly (positively) alters the product or service and/or customer perceptionsoEffectively “Touches” the customer

•Has Integrity/Builds Trust

•Leads to Customer Loyalty and Advocacy

•Simplifies/Reduces complexity both now and in the future (e.g. Can be done right the first time)


DIAL CORP.


• Focuso Stabilize Operationso Increase Quality & Trust in Outcomes

• Methodso Identify/Focus on Root Cause and Effectso Reduce Command/Controlo Standardization

• Learningso Just Do Ito Let others

Discover it Own it Implement it

ATTACK THE PRINCIPLE ROOT CAUSE


X X X X X XX

X

X X

X X X

X X X X

X X X

X X

X X

ROOT CAUSE

END PROCESS FIXES

INTERIM FIXES

Often Reactive

Proactive Approach

RESULTS•Projects Completed On-Time

•Project Efficiency and Effectiveness (Quality) Improved• Trust in outcomes ensured (Predictable)

• Simplified, consistent day-to-day operations

•Production Capability and Capacity Doubled

•Working Environment Significantly Improvedo Employee Satisfaction Significantly Improved

o Employee Turnover Rates Significantly Reduced


COVER GIRL MAKEUP


• Focuso Dominant Market Share, Profit %, Growth %o Customer Value/Benefitso Agile, Differentiationo Improve Time to Develop & Launch New Products

• Methodso Deliver what customers Valueo Qualitative and Quantitative Measuremento Change from linear, siloed development process to

cooperative, collaborative, cross-functional approach• Learnings/Results

o Cooperation leads to more engagement, buy-in and successful outcomes

o Successful development time halved

Improve Development Throughput•Engage everyone in delivering more customer Value to increase customer purchase, loyalty and advocacy

•More rapid improvements and innovation

•Focus everyone on cross-functional, end outcomes and continuous improvement• Collaboration, Cooperation• Early and Continuous Critical Party Engagement , Buy-In and Constructive Criticism

•Do problem solving at the source

•Emphasize positive approaches

•Create a more satisfying and effective process and workplace


RESULTS•High Customer Value (Purchase, Repurchase, Advocacy)

•Consistent, High Growth and Profit in the Cosmetics and Toiletry Category

•Predictable, Stable, Efficient Production and Work Processes

•Robust/Scalable Capability and Capacity

•Quality Products

•Consistent, Rapid Innovation

•Low Employee Turnover/High Satisfaction


J.D. POWER & ASSOCIATES


• Focuso Stabilize Operationso Increase Quality & Trust in Outcomes

• Methodso Identify/Focus on Root Cause and Effectso Systematic/Scientific Approach & Methodso Standardization

• Learningso Just Do Ito Involve Everyone/Ownership by All

RESULTS•Projects Completed On-Time

•Project Efficiency and Effectiveness (Quality) Increased• Trust in outcomes ensured, both internally and externally• Simplified, consistent day-to-day operations

•Production Capability and Capacity Increasedo Existing product lines expandedo Client Base Expanded (Domestic Auto Manufacturers)o New Industry Categories & Products Introduced (e.g., Telecommunications, Media, Real Estate, Technology, etc.)

•Sales and Profit Significantly Improvedo Consistent yearly Sales and Profit Growth

o Sales increased from $4,000,000 to $150,000,000

•Working Environment Significantly Improvedo Employee Satisfaction Significantly Improvedo Employee Turnover Rates Significantly Reduced


NISSAN NORTH AMERICA


• Focuso Customer Satisfactiono Customer Value/Benefitso Agile, Differentiation

• Methodso Determine What Customers Valueo Measurement & Accountability

o Interim Outcomes Approach Change Requirements from Tasks/Standards to Benefits Original Tasks/Standards become Guidelines

o Prioritize and Individualize Improvements at the dealer level• Learnings

o Paradigm Shifto Simple changes have major effects

SYSTEMATIC, SCIENTIFIC APPROACH DMAICDefine

Measure

Analyze

Improve

Control

18EVERYDAY LEAN ASQ PHOENIX SECTION 0704 10/8/15

Contr

ol

Improve Analyz

e

Measure

Define

CUSTOMER

VALUE

WHAT CUSTOMERS VALUE1. Feeling in control/things being controlled in

the customer’s favor

2. Being/feeling comfortable

3. Feeling confident

4. Feeling appreciated/Valued

5. Being listened to

6. Being safe

7. Making an informed decision

8. Having their needs anticipated

9. Having their experience personalized/ Special

10. Having a consistent interface

11. Having a convenient experience

12. Having an efficient, hassle-free experience

13. Providing a quality product or service (Works/Fixed right the first time, reliable, durable and delivers the desired outcome)

14. Delivering the product in immaculate condition

15. Taking responsibility for defects

16. Demonstrating integrity

17. Getting value for their money/It’s “Worth It”

18. Having a Brand Relationship


STANDARDSWhat they are:

◦ A description of how things are done now

◦ A baseline

◦ A path to future improvements

What they are not:◦ A way to control

◦ A straight jacket

◦ Inflexible/Stifling

◦ A way to keep things the same


PEOPLE ARE NOT MACHINES•People absorb variation, not standards

•Requirements should be End Benefits

•Most current Requirements are Check List Standards that should be Guidelines• Means to an End


COMBINE ART WITH SCIENCEScience (Process) - Identify and Standardize what you can

• Controllable• Defined• Routine• Repetitive• Standardizeable• No/Limited Experience

Art (Practice) - So you can practice more and deliver more customized value

• Unstructured• Loosely Defined• Highly Variable• Non-Repetitive• Judgement/Experience Required• Absorb Variation• Make Experience “Special”


RESPECT FOR PEOPLESystems are to Blame, not People

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RESULTS•Dealer Buy-In• Dealers can focus on their customers and customize approaches to meet individual

situations• Ability to do what makes sense and not be locked into company/survey task

Requirements/Standards, when they don’t make sense (e.g., washing the car in the rain)• Get credit for “Doing More,” if it benefits the customer (e.g., Make the delivery “Special”)

• Dealers can “Brand” themselves within the Nissan or Infiniti Brand

•Sales Process• Time to Sell and Deliver a Vehicle Reduced 25%• Close Rates Improved 25%

• Customer Satisfaction (SSI) Significantly Improvedo Infiniti Tied with Lexus for Top Spot

• Per Vehicle Profit Increasedo Auxiliary Product Sales Increased

•Service Process• Infiniti Tied with Lexus for Top Spot in CSI


MANAGE & WORK DIFFERENTLY


CYCLE OF IMPROVEMENT

Fu

ture

Sta

te

Co

nd

itio

n

Increase Value

More

Tim

e on

Value-A

dded Activ

ities

Less T

ime o

n N

on

-

Valu

e A

dd

ed

Activ

ities

Current State Condition

Customer Value


DON’T MAKE A BIG DEAL OUT OF IT

Advocacy

Acceptance Learn

ing

Curio

sity

Fear


Customer

Value

•Just Do It• Takes the Risk out of it for others

•Use Plain English (not Lean lingo)

•It’s just good management

•Start somewhere and get success• The bigger the impact, the better

•Let others discover your success and emulate it• Let them make it their own

CHANGE IS LIKE RIPPLES ON A PONDContinuous improvement should move through your organization like ripples on a pond, ever expanding and more encompassing.


REFERENCE POINTSEveryone needs to justify their actions in terms of: ◦ Delivering end Customer Value

◦ Delivering the organization’s Vision

◦ Building Robust, Scalable Capability and Capacity

◦ Improving organizational Efficiency and Effectiveness


QUESTIONS TO ANSWER“How do your actions improve Value to the Customer and achieve the

organization’s Vision?”

“What can I / We do to improve this?”

“How do I/We contribute to Continuous Improvement?”

“How are am I/We Improving Flow?”◦ Eliminating steps in the total process

◦ Delivering faster results

◦ Making the process more consistent

“How am I/We Improving Quality?”


MANAGERS MANAGE DIFFERENTLYImprove Customer Centric Outcomes/Value

Responsible for increasing capability and capacity, efficiently and effectively◦ Eliminate Failure Demand◦ Create Systemso Identify and Convert Practices to Processes appropriately

o Support Practices to deliver Customer Value

◦ Measure/Monitor Systems◦ Make Systems, Processes and Practices Visible◦ Focus on the how things are done

◦ Simplify/Reduce Complexity

◦ Reduce time

◦ Reduce effort

◦ Increase Value creation

◦ Create supportive, non-blaming environments Move the whole curve

◦ Encourage collaboration, cooperation and feedback


EMPLOYEES WORK DIFFERENTLY•Do the work

•Increase Own and Organization’s Capability and Capacity, Efficiently and EffectivelyoBecome solutions oriented, not blaming (Ask, “What can I / We do to do this better and to deliver

more Value?)oDon’t upwardly delegateoCollaborate and cooperate with othersoDeliver Customer-Centric Outcomes

•Continuous ImprovementoRecognize/Reveal problems & opportunitieso Identify Root CausesoHelp develop rational, systematic solutionso Implement solutions

•Develop Standard Work


UNIVERSAL CONCEPTS•It’s all about Trust

•Focus on Customer Values/Benefits

•Improve Flow

•Reduce Fear, Increase Involvement

•Let People Absorb Variation• Don’t Over Standardize

•Just Do It


MORE INFORMATION

CHARLES SHILLINGBURGVP MARKETING, BUSINESS DEVELOPMENT, GOVT AFFAIRS &QAAPN STAFFING & EMPLOYMENT SOLUTIONS20827 N CAVE CREEK ROADSTE 103PHOENIX, AZ 85024(602) 788-5890 X [email protected]@APNUSA.COMWWW.APNUSA.COMhttps://www.linkedin.com/in/charlesshillingburg/


mailto:[email protected]

mailto:[email protected]

http://www.apnusa.com/

https://www.linkedin.com/in/charlesshillingburg/

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