professor, industrial and operations engineering the ... · professor, industrial and operations...

Develop Lean leaders and use Toyota Kata tochange leadership behavior:

Support Daily Kaizen and Align Improvement Goals

Jeffrey K. LikerProfessor, Industrial and Operations EngineeringThe University of Michigan

Stockholm, Nov 16Oslo, Nov 17

Munich, Nov 19

Lean Leadership Development Model

3 Support Daily Kaizen

2 Coach and Develop Others

4 Create Vision and Align Goals

1 Commit to Self Development

TRUE NORTHVALUESChallenge

Kaizen MindGo and SeeTeamworkRespect

See and challenge true potential in others though self-development learning cycles

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Create True North visionand align goals verticallyand horizontally

Learn to live True North values through repeated Learning Cycles

Build local capability throughout for daily Management & Kaizen

HP Tronic(Home Appliance and electronics manufacturer, Swedish Site)

• 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 in first year• Daily activity in each area with coaching cycles

Kanban is a form of Visual Control

Used in the work environment and tells us how work should be done and if there is a deviation from the standard.

Stop the Line: Andon Empowers People

1 2 3 4 5 6

Where is theproblem? 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

TEAM LEADER RESPONSE TO ANDONTEAM LEADER RESPONSE TO ANDON

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

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)

Visualization of Quotation Process

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

NUMMI Standardized Work Sheet for One Front Axle Assembly Operation

Standard Work document for non-cyclical work

Standard Work Instruction

Department: Operation Name: Revision Date:

Prepared by:

No. Major Steps Key Points

1

2

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Copyright 2005 David Meier and Bill Costantino

Research in occupational training shows that individuals retain about:

• 10 % of what they read

• 20 % of what they hear

• 30% of what they see

• 50% of what they hear and use

• 70% of what they say

• 90% of what they say and do

Copyright 2005 David Meier and Bill Costantino

Job Instruction Training is designed to teachpeople how to do a particular job by:

Hearing (what to do)

Seeing (how it is done)

Using (what was learned)

Saying (what was learned)

Doing (the task)

REPEATEDLY !!

Must Breakdown Jobs to Teach Standards

A short, interactive exercise that demonstrates the importance

of structured practice routines, or kata

The Pen Spinning Challenge

Source: Mike Rother

Take a pencil or pen.

The target is to spin the pencil in your hand as shown in the 45-second video.

I'll show the video & pause it. Please try to spin the pencil between your fingers as demonstrated.

Use either hand.

INSTRUCTIONS

Source: Mike Rother

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VIDEO: Spinning Way(49 seconds)

1) How many of you are confident that you could do this?

1) How motivated are you to actually work at it?

TWO QUESTIONS

By show of hands...

Source: Mike Rother

EXPERIMENT ROUND 2

Step-by-step practiceof one element of pen spinning

Please go through the steps with me

Source: Mike Rother

Pointer finger and ring finger underneathand middle finger on top. Near first knuckle.

STARTING POSITION

STEP 1

Source: Mike Rother

Pull away your ring finger and turn the pencil around your middle finger with your pointer

fingerSTEP 2

Source: Mike Rother

Once the pencil is horizontalput your ring finger on top of the pencil

STEP 3

Source: Mike Rother

Now pull away your pointer finger and rotate the pencil back around the middle finger with your

ring fingerSTEP 4

Source: Mike Rother

When the pencil is once again horizontal,put your pointer finger back under the

pencilSTEP 5

Let's repeat Steps 1-5 two more times

Back to starting position

Source: Mike Rother

1) After a few minutes of this kind of practice how many of you feel a little more confident that you could do this?

2) Now that you have some steps to follow, how many feel more motivated to work at it?

TWO QUESTIONS

Source: Mike Rother

Mid‐Afternoon 20 min BREAK

Lean Leadership Development Model

3 Support Daily Kaizen

2 Coach and Develop Others

4 Create Vision and Align Goals

1 Commit to Self Development

TRUE NORTHVALUESChallenge

Kaizen MindGo and SeeTeamworkRespect

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 visionand align goals verticallyand horizontally

Learn to live True North values through repeated Learning Cycles

Build local capability throughout for daily Management & Kaizen

Hoshin KanriManagement & Control of the Company’s Direction

Hoshin Kanri(Policy Deployment)

Hoshin = Policy, Plan, Direction

Kanri = Management, Administration

Create Vision and Align GoalsToyota Hoshin Kanri ‐ History

• 1961: TMC identified need to modernizemanagement operations to compete globally

• Eiji Toyoda’s two fundamental needs– Need for top management to clarify targets

(especially quality) and engage employees– Management system that promoted cross-functional cooperation

• 1965: Won Deming Prize• After continuous improvement, the system Toyota uses

today was developed in 1972

Purpose of Hoshin PlanningProgress To

ward Po

tential

Present Target Date

Continue with current daily management

Business Change, Need

Gap = Problem

Hoshin Kanri is a Top‐Down and Bottom‐Up Learning Process

Company

Goal

Company Hoshin

Division Hoshin

Department Hoshin

Individual Priority

Horizontal Alignment

On Job Development

Problem SolvingVertical Alignm

ent

Deploy the plan(Catchball)

Implement the plan

Coachkata

ImrovementKata

Toyota Business Practices: Problem Solving and People Development

Figure 6.2: Toyota Business Practices (TBP) is the Revised Problem Solving Method Toyota’s new TBP method has two parts—the method described as “concrete actions and processes” and the approach described under “drive and dedication.” There is a lot in common with the older practical problem solving method. Both are based on the Plan-Do-Check-Act model and based on management by fact. A few subtle differences make a big difference in some cases. One of the biggest is “break down the problem” which

1. Clarify the Problem 2. Break Down the Problem 3. Target Setting 4. Root Cause Analysis 5. Develop Countermeasures 6. See Countermeasures

Through

7. Monitor Both Results and Processes

8. Standardize Successful Processes

C

A

Customers First Always Confirm the Purpose of

Your Work Ownership and Responsibility Visualization (MIERUKA) Judgment Based on Facts Think and Act Persistently Speedy Action in a Timely

Manner Follow Each Process with

Sincerity and Commitment Thorough Communication Involve All Stakeholders

ConcreteActionsand Processes Driveand Dedication

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Hoshin Kanri Process

What you see:Visual Metrics Aligned from Top to Bottom to meet Annual Plan

HoshinVision

Floor Management Development System:Trim Group 1

Main KPIs

ProcessKPIs

Sub-KPIs

Safety Quality

Productivity

Cost HR

. . . ..

Trim Shop

Assembly Division I

Plant-Wide

Trim 1 Trim 2 Trim 3 Trim 4

Door Trim Chassis Final

Stamp Body Paint Assembly

.. . . .x x xx x

.... ...... X

X X

X

ProblemX

.. ...

Shop KPIs

Continuous Improvement means a little better every day:Key Performance Indicator (KPI) Boards for Each Work Group

KPI Board Shows Actual versus Standard: Visual Management

Comparison between MBO and Hoshin Kanri

Management by Objectives Hoshin Kanri

Short-Term, No Philosophy Long-Term, Strong Guiding Principles

Results Oriented Evaluation of Effort

Concerned with Results and Process with Focus on People Development

Top down Communication

Top down Direction Setting and Bottom-up flow of Information and means

Directive Participative

Primarily Authority Oriented Primarily Responsibility Oriented

A Simplified Example:Gearbox Manufacturing

Stop!

GearMachining

Subassembly Assembly Shipping

FIFO

Gear Broaching(a process in the Gear Machining value stream loop)

Gearbox Assembly

Gearbox Future State Value Stream (simplified)

http://www.slideshare.net/mike734/the-coaching-kata-chain-of-coaching

Meet the 5 Main Playersin the Gearbox Value Stream Example

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"Gear Broach"Operators

- Roger -Responsible

for the process"Gear

Broaching“

- Steve -Responsible for thevalue stream loop"Gear Machining“

- Nancy -Responsible forthe "Gearbox"value stream

- William-Vice President

Responsible fora Value Stream

Responsible for aValue Stream Loop

Responsiblefor a Process

Copyright © 2013, Verbesserungskata.de

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Senior managers, including Nancy’s coach/boss William, have decided the company needs to increase product variety and reduce the time to meet customer needs.

Strategic Direction

"Gear Broach"Operator

- Roger -Responsible for

the process"Gear Broaching“



- William-Vice President

Nancy's Steps







One level down Nancy analyzes and maps the current state of the gearbox value stream. Then, based on the strategic direction, she designs a future state for the value stream (her Target Condition).

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Target lead time = 15 Days

Stop!

GearMachining


FIFOGearbox Future-State Value Stream Map

Nancy’s Gearbox Future-StateValue Stream Map






The value stream Coach (Nancy) & her Learners in Shipping, Assembly, Subassy & Gear Machining (Steve) agree on the value stream goals.

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Target lead time = 15 DaysValue stream loop

Gear Machining Loop goal: 3 days of gear inventory

Stop!

GearMachining


FIFO Gearbox Future-State Value Stream Map

Nancy’s Gearbox Future-StateValue Stream Map

Goal Deployment






After analyzing his VS loop's current condition, Learner Steve (guided procedurally by his coach Nancy) develops his loop's

next target condition mathematically step‐by‐step

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4

Nancy, to be able to operate with 3 days of finished gear inventory and

have a 50% safety factor we'll need to broach every high‐volume gear plus

some specials every 2 days.

3 Days30 Days







14 MinChangeover time

The mathematically derived target condition for Gear Broaching shows that to get to a 3-day

finished gear inventory we need to work on three aspects of the Gear Broaching process:

- Planned cycle time- Unplanned downtime- Changeover time

15%Unplanned downtime (%)

10 SecPlanned Cycle Time Pc/t

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Developing the target condition, three themes pop up: cycle time 10 seconds, unplanned downtime 15% & changeover time 14 minutes







At the Gear Broaching process, Steve decides to begin by having his Learner Roger work on the changeover time. At this point the procedure repeats, one

level down.

14 MinTarget time for changeover

15%

10 Sec

Unplanned downtime (%)

Planned Cycle Time Pc/t

49Stev

Roger, a strategic objective is to increase our product variety, bring our value stream's lead time down to 15 days and our inventory of machined gears down to 3 days. In order to achieve this, I need you to help us by reducing Broach changeover time to 14 min.

Can you propose to me how the changeover processes would have to function to achieve that?

Roger's Steps


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Roger

The current changeover processconsists of 7 steps which take

72 minutes.




Steve, we analyzed ourcurrent 72 minute

changeover and here iswhat we would need todo to get to 14 minutes


(external)

(external)

PLANNING EXECUTING

Understandthe

Direction(from level above)

Grasp theCurrent

Condition

Establish the Next Target Condition

Iterate Toward the

Target Condition

Current StateValue Stream

Mapping

Future State Value Stream

MappingValue StreamLevel

Value StreamLoop Level

ProcessLevel

OrganizationLevel

HOW IT WORKS WHEN IT’S IN PLACE

Longer-Cycle Experiments

Short-Cycle Experiments

Source: Mike Rother

A Good Lean Coach• Highly skilled in philosophy and methods of improvement (Credible)• Keen observer of people: technical and interpersonal skills• Listens more then talks• Pulls best from student instead of pushing knowledge into head• Frequent, specific feedback for small intervals of student work• Truly cares about student’s learning• Respect for people• Mutual development and trust

Questions& Reflection

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