IMPLEMENTATION PLAN FOR LEAN/SIGMA PROGRAM
My Leadership Philosophy is based on the fundamental ideology that core values (those attributes that define the culture), core focus (purpose, cause, passion and niche) and a general sense of organizational purpose (what we are about) determine how people interact and respond to situations in a consistent and effective manner. People behave based upon assumptions that are generated through individual socialization, and the very elements that drive behavior are the result of values, attitudes, thinking and feelings that are the bank of individual experience.
To become an effective leader, a clear and concise operating philosophy must reinforce the core ideology for the greater good of the individual, the team and the business entity. Just as we strive to take the business entity to the next level, we must seek an approach to guide our students and those people within our reach to the performance level of their true capability.
Organizational Behavior has taught us that we cannot change anyone, just as we cannot motivate anyone. What we can do is to provide reasons for one changing oneself. To become an effective leader, we must determine the business priorities, individual and group needs, and then provide the tools, the information and the reasons for changing. Once we establish belief in the individual that he or she can do it, then the person provides the desire to change, which makes it happen…
There are five Leadership Abilities that are the focus of my teaching and mentoring efforts:
- Simplify – Is everything as simple as possible to understand and to act upon?
- Delegate – Are you or any of your people above the capacity to do the job well?
- Predict (short-term) – Are you solving daily and weekly problems as they arise for the long-term greater good of the business?
- Systemize – Are your core business processes understood, documented, simplified, and followed by all?
- Structure – Is the right individual and group accountability in place?
That accountability initiative must become the essence of measuring performance throughout the business entity. Therefore, we must develop training criteria and metrics to determine progress being made in each of the following six Key Business Components:
Vision – We have clarity of core values, core focus and the core business, with a strategy to carry it out, shared by everyone.
People – We know that all of our people in our organization are the right people (values), and they are in the right seats (skills).
Data – We have developed a Scorecard for our business performance, and everyone in the organization has a “number”.
Issues – We have identified key operating issues, have a method to discuss and resolve those issues on an ongoing basis.
Process – We have documented our key business processes, and they are followed by all.
Traction – We have established quarterly priorities and have a weekly Meeting Pulse to provide the Leadership Team with an instrument to measure progress.
I see a paradigm shift taking place in the workforce today, and it’s something that needs to be identified, discussed and acted upon, as I see it morphing into a “dynamic” in the years to come. It is the concept and reality of “reverse mentoring.”
Many years ago, as someone who was deeply involved in Corporate America, with all its highs and lows, I began a process of mentoring subordinates, including my daughter, so they could reach their true capability, and maybe avoid some of the pitfalls that I had experienced. It just seemed to make so much sense, and enabled me to “give back” to career opportunities that had been given to me.
As the Executive Vice President of a major manufacturing company, and having several truly outstanding subordinates, I set up a process, yes, a genuine mentoring process, which had both the mentor and the mentored committed to tasking, learning and measuring progress against mutually agreed upon performance metrics. If you are willing and able to fill this type of role, you are very fortunate.
Metrics such as: productivity, sales goals, revenue generation, team building, etc. I also had each person set up annual goals, usually in January, and we monitored quarterly, adjusted accordingly, and then used as a valid employee assessment tool at year’s end. It was a very effective process, and the “buy in” of my “A” players was awesome! Most importantly, the positive results were well received by upper management and the accomplishments did not go unrewarded. Win/win all the way around!
So, let’s go back to mentoring, in general. When you think of mentoring, the focus is on the mentor’s role in shaping and guiding a person’s personal growth and building confidence. An upward journey, if you will. (I’ll come back to this analogy later). Hardly a day goes by, when you don’t come across a story of a successful mentoring program in your community, in your state or in our country. Good stuff, and the kind of uplifting news that we welcome today!
But, you can also look at TONS of fictional stories, often depicted in films, where the very essence of the story/movie was mentoring! …”Good Will Hunting, Dead Poet’s Society, Star Wars, Harry Potter Series, Lord of the Rings Series, Coach Carter“, and on and on and on.
Let’s look at a few memorable mentoring quotes from these movies…
Good Will Hunting: Will Hunting is a genius with anger issues, and his therapist, Sean, helps him see the world in an entirely different perspective. He says to Will: “You’ll have bad times, but it’ll always wake you up to the good stuff you weren’t paying attention to…”
Dead Poet’s Society: Professor Keating teaches his students at Welton Academy to pursue their dreams and ambitions. He says: “Boys, you must strive to find your own voice. Because the longer you wait to begin, the less likely you are to find it at all.”
Star Wars: Who could ever forget this quote from Yoda to Luke Skywalker, imploring him to ‘grow up’ and yet giving support and visioning to his mentee to instill confidence and independence: “Do, or do not. There is no try!”
Harry Potter: Professor Dumbledore is constantly providing Harry with wisdom and advice, while strongly advocating the importance of relationships and trust. Closely watching over Harry, at one point he says: “It is our choices, Harry, that show what we truly are, far more than our abilities.”
Lord of the Rings: Gandalf is the mentor to several members of the Fellowship of the Ring, and provides guidance and support throughout their journey, yet strives to develop courage in them to face significant challenges. At one point he says: “All we have to decide is what to do with the time that is given to us.”
Coach Carter: Coach Ken Carter takes a coaching job at his former high school in a very poor area of town. His goal is to teach his players discipline and to change their negative attitudes and focus on the positives, because he has faith in them. He tells his team: “I came to coach basketball players, and you became students. I came to teach boys, and you became men.” This is one of my favorites.
If you think I’m “off topic,” you are right! But, as I tell my mentees, “trust the process.” LOL!
If this short dissertation on mentoring makes sense, let me now build a “bridge” from here to my original topic, Reverse Mentoring…
A movie came out last year, called The Intern. It starred Robert De Niro as Ben Whittaker, a 70 year old, recently retired, “senior intern” and Anne Hathaway as Jules Ostin, CEO and founder of a highly successful internet startup. Ben became a participant in a pilot senior intern program, seemingly a sound idea brought up by one of Jules’ executives. The idea was to have seasoned executives working with and “advising” a 20’s to 30’s aged workforce.
Without giving away too much of this extremely entertaining movie, Ben was there to learn and to help the young employees, but it soon became obvious that Ben’s skill set was truly exceptional, but in need of a “contemporary re-boot.” Although he was assigned to Jules as her intern, she was thriving without Ben, or as she thought, and didn’t need him. In a classic text that she sent to her HR department mid-movie, she complained that Ben was “too observant” and she didn’t want him on her team. That changed, big time, during Ben’s stay.
Long story short, Ben was traveling on a “two way” street. He was providing knowledge and experience to the young workers, but he was learning about them, their business, their roles and their issues. As they “taught” Ben, he became much more productive and a very happy “new hire.” Was it difficult for Ben to “put himself out there?” Yes, of course it was, but it was also highly rewarding.
So, where does all this involve me and impact you, the reader? I look at myself as Ben, the business coach/advisor with many years of experience, knowledge and problem solving and decision making expertise. Being “out of the game” for a few years, however, I don’t feel any level of true comfort in working in today’s business climate that predominates with a “30 something” workforce. Oh well, I guess I can read, play golf, travel, watch sports and talk a lot to my wife now. That should be okay, eh?
Well, maybe not. So, let me refer back to my daughter, who I mentored many years ago and who became a wonderful “intern” of mine! Now, fully back “on topic.” LOL #2.
She has been working in Northern California, in Silicon Valley, for about four years now. She has climbed the corporate ladder in a Fortune 100 company, and now has a fairly senior position. I am very proud of her. But, here is where the Student from earlier becomes the Teacher of today… This is the downward journey!
Being very transparent with my intentions, I am now “looped into” her and her team’s working world, and it’s hard to recognize the business climate today from mine, “back in the day.” But, it is what it is, and for me, I must adapt if I am to survive, thrive and contribute.
The bottom line for me, feeling like Ben in The Intern, is that I truly believe that in order to perform in today’s business climate, I need to learn new and different skills, or at the very least, understand the business environment today, if I am going to get “back in the game.”
I am constantly talking or Skyping with my daughter, asking questions, bouncing ideas, or just getting advice. I am truly blessed to have someone that can help me without me feeling vulnerable, unprepared, overwhelmed or just plain stupid! Examples:
– What does this word, synonym, antonym, phrase, role, metric, brand mean?
– Why do companies, departments, management teams, individuals do this or that?
– Where does social/digital media become a driver for strategic planning, ops, etc.?
– When did these particular measurements become outdated…or newly important…?
– How can I bundle my “old” skills into an offering that would appeal to a small business?
– Who can help me, both now and on my journey?
SHORT LIST OF RECOMMENDATIONS FOR REVERSE MENTORING AND YOU
- If you are a 50 something, a 60 something or even a 70 something, get out there and talk to people, re-visit your old network, meet people, do lunches with enablers and influencers…
- Nurture relationships with the people who have the most power to get you back in the game and up to speed. Create a familiar presence with them.
- Educate yourself as much as possible regarding this new business paradigm, and where you might see a possible fit. Read, read and read. Ask questions!
- “It is better to give than receive” is now your mantra. Give your time and knowledge to seed an opportunity before thinking about what you will receive in return.
- Find one or two willing young people that could become your vehicle to move along the highway to contributing in this new world…It doesn’t hurt to ask! Quid pro quo!
- Set realistic expectations for yourself in terms of your needs, wants and desires, and don’t necessarily put a “timetable” on your ultimate goal.
- Try to build this venture from a position of “passion,” or what you likely could do, or would love to do, that gets the juices flowing every day.
In the closing scene of The Intern, Jules says to Ben, “Its moments like these when you need someone.” Let that someone be YOU!
“DO WHAT YOU LOVE, DO IT WITH PEOPLE YOU LOVE, DO IT WELL
Garry Peterson, Peterson Advisors Group
When my daughter graduated from high school, and headed to college, I thought it apropos to give her some “unsolicited advice.” Now, many years later, she still has this short document laminated on her frig! So, I thought I would share it with you…
• Select a career that is satisfying and fun, almost like a hobby, not just a lucrative job that provides material wants, and be passionate about your work
• Select a mate that has similar goals, personality and interests as you – no matter how long it takes to find that person – and don’t expect someone else to be in charge of your happiness
• Place 10% of EVERY paycheck in the bank for retirement, separate from savings – don’t touch it under any circumstances
• Spend more time listening than talking – you don’t learn anything from talking
• Make your friendships 60/40 – you give the 60%
• Create a balance in your life – often blending or sharing interests and hobbies that are quite different from your day-to-day lifestyle
• Nurture the network of contacts, friends and acquaintances with a sincere dedication and ability to reciprocate
• Coach, teach and offer assistance to those who you might influence, much as mentors have helped you
• Don’t worry about things or people’s behavior that you cannot control – you can only make a difference where you have control
• Embrace risk-taking…only a person who risks is free
• Nothing is worth ruining your reputation – you develop just one
• Do what you love, do it with people you love, do it WELL!
The purpose of LEAN is ultimately to increase profitability. The objectives are focused on two essential tenants: productivity improvement and cost reduction, gained through the systematic elimination of waste. LEAN is a philosophy and way of thinking that applies specific tools and methods in a consistent, well-disciplined and systematic manner. It is a people system, involving both technologies and performance behavior, and therefore LEAN tools and techniques can be applied with equal effectiveness in manufacturing and office environments, focusing on key business processes.
This attention to key business processes will enable that business to gain profitability through increased market share and the capability to retain existing customer bases. Regardless of your business type, customers today want product faster, free from defects and delivery delays, at the lowest possible price, and with dependable service after the sale. In fact, there is a five times greater chance of losing a customer from poor service than from bad products. According to James Womack, Lean Thinking, there are six principles that drive the LEAN culture:
(1). Customer defined VALUE
(2). Identify the VALUE STREAM
(3). Make it FLOW
(4). PULL it through the Process
(5). Continuous waste ELIMINATION
(6). Create PERFECTION
The foundation of modern Lean principles originated with the work of Taichi Ohno, and the systematic approach to waste elimination. Today, that standard is the Toyota Production System (TPS); a set of manufacturing techniques to increase profits through the continuous elimination of waste. The successful implementation of Lean across the entire business enterprise, must involve both the manufacturing and non-manufacturing areas, to fully maximize the benefits of short-term savings and sustained improvement.
As we institutionalize these activities, we have created a business culture whereby each employee has ownership and accountability in the entire process, and one which reflects “the way we do things here!”
LEAN in the Manufacturing Area:
Whether your business is discrete or continuous flow manufacturing, the techniques of LEAN waste elimination always include elements of People, Quality, Delivery and Cost.
It is truly a philosophy, and involves the application of specific and pragmatic tools in a consistent, systematic and measurable manner. Typical examples of tools used are:
|People:||Workplace organization, Kaizen, Standard work, Visual systems|
|Quality:||Prevention, Error-proofing, Early warning, Detection|
|Delivery:||Just-In-Time, Kanban, Quick set-up, Leveling|
|Cost:||Units, Money, Time, Customer satisfaction|
We typically discuss these elements in everyday Operations dialogue that describe fixing defects, over-production, excessive motion and/or waiting, high inventory, long cycle time, lack of sound maintenance, or poor forecasting/production control. Many LEAN implementation opportunities reside, as difficult as it is to admit, with simple communication, organizational and program management deficiencies.
LEAN in the Non-Manufacturing Area:
As previously mentioned, waste elimination in support or administrative functions is critical, but often overlooked, or deemed inappropriate to LEAN techniques. Typical waste will include elements of People, Processes, and Information. Effective LEAN applications in office or “back room” environments involve activities such as:
|People:||Work alignment, Ownership, Inefficiencies, Structured cells|
|Processes:||Redundancies, Standardization, Poor flows, Sub-optimization|
|Information:||Inaccuracies, Hand-offs, Incompletes, Technologies|
|Cost:||Morale, Money, Time, Customer satisfaction|
Similarly, daily problems occur here with poor communication or coordination, delays, translation/interpretation errors, or poor worker productivity as a result of several of these factors. The ultimate loss will be the customer; whether it is the primary or secondary, direct or indirect, external or internal or the final consumer. If you bundle this situation with the fact that basic business economics have changed; i.e. where cost plus profit once gave the price, now market price minus producer-controlled cost equals profit, waste elimination through LEAN implementation must be the given!
The fabric of LEAN implementation is the creation of a LEAN culture. That involves the systematic changing of worker behavior in a never-ending process resulting in several achievements, including the following:
- People recognize continuous improvement as part of their job
- Work is cross-functional, in a systematic and collaborative manner
- Focus is on the process to make changes
- Management rewards good work and corrected mistakes
- Team and workforce skills are developed
- Mutual trust and respect is displayed
All successful LEAN implementations, manufacturing or non-manufacturing, include a structure of basic components. Even prior to initiating the project itself, fundamental consensus agreement is essential to provide a unified and synergistic effort. Success criteria and expectations are necessary fundamentals.
Success Criteria – Meeting Primary Business Goals and Objectives
A prerequisite for successful implementation is for the company to plan sufficient time, resources, and support for the proposed actions and important follow-up. As clear evidence of improvement becomes apparent, top management must integrate the change initiative into the company’s overall business plan to demonstrate that all activities and efforts of LEAN are essential to the core business, and they are key enabling strategies critical to the success of the business. SEE ATTACHMENT
Expected Results – Providing Systemic Resolutions and Improvements
Realizing that significant, dedicated resources will be invested throughout the LEAN implementation process, several key measurements will be established, with baselines and target goals, to determine the progress of the initiative and ascertain both short-term and annualized savings and accountabilities. Action plans, task priorities and work schedules are created, with project “report-outs” and “checkpoints” established. Some typical examples of expected improvements are:
- On-time delivery
- First-pass success rate
- Process capability/yield
- Rejects and scrap
- Cost structure
- Components of Utilization
- Value added per worker
The following example of client engagements and project descriptions further demonstrate the benefit potential of sound LEAN manufacturing implementation in both discrete and processing environments. Project savings are noted; cost to client is very much dependent on the resources required vs. anticipated needs, and the strength and availability of client resources.
PETERSON ADVISORS GROUP Approach:
Phase I – Assessments, Education, and Metrics
- Management and employee education and understanding
- Determine customer needs and current business/competitive status
- Conduct business operations assessment – current vs. desired state
- Map product/service flow and identify opportunities
- Establish baseline metrics/performance targets
Phase II – Application of LEAN techniques in Production
- Apply 5 S’s plant-wide and conduct rapid improvement event(s)
- Organize LEAN teams, leaders and work schedules
- Formulate workplace organization in selected areas
- Install visual systems
- Flow value across selected production line and consolidate
Phase III – LEAN expanded in Production and Initiated in Support
- Baseline check vs. improvement metrics
- Establish/monitor equipment effectiveness metrics
- Implement support methodologies
- Transition to self-managed work teams
Phase IV – Link with Suppliers, Customers, Shared Services (Enterprise)
- Interface with I.T. and general information systems
- Develop supplier capabilities
- Elevate customer focus and advocacy
- Enhance people systems
- Finalize implementation model and relevant audit system
NEXT CONTINUOUS IMPROVEMENT GOAL:
Fully integrating the Supply/Value Chain to maximize Operational Efficiency and Customer Effectiveness. By incorporating the voice of the customer and supplier is the critical enabler of integrated supply chain strategy. The value chain is defined as:
- system of organizations, assets and activities
- cycle of “cradle to grave”
- identifying, creating and delivering value
- both product and service applications
“…first and foremost, the performance of the whole value stream is the only issue of relevance to the customer.” James Womack, Lean Thinking
Mid-size Manufacturing Company Saves Millions Implementing LEAN Manufacturing Techniques
Recently, a mid-size manufacturer of industrial equipment, with sales of $125 million, completed a successful implementation of LEAN systems involving three plant locations. An operation performance assessment was conducted, and aligned with the client’s success criteria. Several cost reduction priorities were established and became the foundation of the LEAN implementation activity and subsequent project savings:
|Inventory||$7 million reduction in raw materials and finished goods|
|Capacity Utilization||20% free capacity for new products|
|Logistics||$1.3 million of recurring savings|
|Throughput||22% improvement in yield|
|Materials||$750,000 in first six months, $2.2 million booked for next three years|
The entire LEAN Enterprise implementation covered 15 months. Additional benefits were realized in run rate efficiency, headcount reduction, product delivery and resource allocation. Nearly 60% of the project savings were in the non-manufacturing (support) areas. Although the results can be dramatic, the application of the specific techniques, sensible use of resources, and adherence to the structured approach are critical. So, what is LEAN, why is it important to your business, and how do you “make it happen?”
The ever-changing business climate is placing additional demands on companies in most industries today. As customer expectations increase, the resources needed to meet those expectations often are stretched. To answer these challenges, many companies today are employing the proven techniques of LEAN systems.