30 April, 2013 S A Partners

Achieve Lean Excellence

Learn-Share-Grow Webinar Series
Professor Peter Hines
30 April, 2013 S A Partners
Welcome
Webinar will last about 1 hour
We will invite you to complete
a few Polls
Q&A session
Our Webinar
30 April, 2013 S A Partners
Professor Peter Hines

Co-founder Lean
Enterprise Research
Centre, Cardiff University
Chairman, S A Partners
Adjunct Professor,
University of South
Australia



Welcome!
30 April, 2013 S A Partners
Muda, Mura and Muri
Mura
(unevenness)
Muda
(waste)
Muri
(overburden)
30 April, 2013 S A Partners
Lack of a clear executive vision
Lack of an effective communication strategy
Failure to create and communicate a real sense of urgency
Poor consultation with stakeholders
Lack of structured methodology and project management
Failure to monitor and evaluate the outcome
Failure to mobilise change champions
Failure to engage employees
Absence of a dedicated and fully resourced implementation
team
Lack of sympathetic and supportive Human Resources
policies
Top 10 Reasons for Failure
Source: Lucey, Bateman & Hines, 2005
30 April, 2013 S A Partners

Kaizen Blitz vs. Lean
Management
I
m
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O
p
p
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Time
Short term
gains made
Lost and repeated results
due to no sustainability
Results could be lost entirely
if organizational structure not
aligned to support and education
level of all employees not increased.
Improvement leveled off and
eventually stopped due to lack
of realizing true lean
opportunity
Greater, sustained
results achieved
Awareness, education,
organisation structure
created to support lean
Source: C. Craycraft, Whirlpool
Utilization of Lean tools will deliver
performance improvement. However,
behaviors focused on Continuous
Improvement / Pursuit of Perfection will
provide sustainable long term
improvement
30 April, 2013 S A Partners
Is your lean programme closer to the kaizen blitz
approach or true lean approach?

Please select one or the other
Poll
30 April, 2013 S A Partners
Sustainable Lean Management
Lean Management
Source: P. Hines, P. Found, G. Griffiths & R. Harrison, Staying Lean, 2008
30 April, 2013 S A Partners
Cogent Power Case
30 April, 2013 S A Partners
An urgent need for change
Substantial Pre-tax losses in 2003 from Global operations
Business was losing cash from a number of its Operating
Plants Seven Global Operating units
Relatively Static order book with emphasis towards lower
margin products
New CEO put in place to Lead the business TURNAROUND
strategy
Experienced Senior Management Lean Team appointed to
support

30 April, 2013 S A Partners
Internal Value Stream focus
Hines, Found, Griffiths & Harrison, 2008
30 April, 2013 S A Partners
The roadmap to sustainability
4
3
1
2
Roadmap 1



Launched Jan 2004
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Roadmap 1: Strategy
Formation & Deployment
Leadership structure confirmed and aligned to the turnaround
Kicked-off with top level awareness & Strategy sessions
International & regional management teams CSFs & KPIs
Lean message communicated from the top to help
deployment

30 April, 2013 S A Partners
Roadmap 1: People Skills and
Value Stream Mgt
Selection process to ensure that the right coaches chosen
Extensive Lean coach programme theory & practical
Lean coaches developed hands-on experience in tools
Steering team meeting and best practice sharing events

30 April, 2013 S A Partners
Roadmap 1: Internal VSM and
Lean Toolkit
Visual Impact with 5S, TPM & SMED at all sites
High levels of engagement with site cross-functional teams
Process stability being used to help introduced pull systems
Gold Star standards using 6 Sigma set for heavy industry

30 April, 2013 S A Partners
Roadmap 1: Basic Customer Value
& Office Lean
Customer Value assessments for all businesses
Sales acquisition mapping used to improve order creation process
Office 5S used to improve sales requisition process time
Lean tools and deployment evident in many support areas

30 April, 2013 S A Partners
Maturity Assessment
Business to business benchmark
Stage 1
Reactive
1. Reactive Approach
2. 2. Little / No
Involvement
3. Adhoc Learning
Stage 4
Autonomous
Stage 5
Way of Life
Stage 2
Formal
Stage 3
Deployed
1. Formal Structure
2. Only Specialists
3. Team Learning
1. Goal Oriented
2. Selected Team
3. Value Stream
Learning
1. Autonomous
habit
2. Full
Empowerment
3. External Learning
1. Driven Deployment
2. Majority
Involvement
3. X-process Learning
Key Characteristics
1. Ways of Working
2. Employee Engagement
3. Learning Best Practice

30 April, 2013 S A Partners
A Sustainable Journey

R
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F
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D
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A
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W
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o
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l
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M
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b
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B
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Time



30 April, 2013 S A Partners
Which stage of this journey do you think you are?

Please select one answer




Poll
30 April, 2013 S A Partners
Organisational Learning
Lean Maturity Assessment
30 April, 2013 S A Partners
Organisational Learning
Lean Maturity Assessment
The coaches have become the leaders of Lean
Real Lean management is still an exception
LEAN is too cosmetic and not fully impacting profit
LEAN still seen as an initiative and not given
priority
OEE and Pareto are hardly used to drive
improvement
Lean is not driving changes in management
behaviour
Responsibility and accountability not fully deployed

30 April, 2013 S A Partners
Maturity Assessment: Under the
Waterline
Unstable Iceberg
Model
Technology, tools and
techniques
ABOVE WATERLINE - VISIBLE ABOVE WATERLINE - VISIBLE
Supply chain
integration
Process
management
UNDERWATER - ENABLING UNDERWATER - ENABLING
Behaviour and engagement
Strategy and alignment
Leadership
Enabling Features Not Fully Addressed
NARROWING UNDER WATERLINE NARROWING UNDER WATERLINE
30 April, 2013 S A Partners
The Roadmap to Sustainability
Roadmap 2



Reviewed July 2005
3
2
1
4
5
30 April, 2013 S A Partners
Roadmap 2: Multi-level Leadership
& Deployment
Leadership developed at every level of the organisation (7
Values)
Clearly defined roles & behaviours for self-managed
teamworking
Re-deployed targets aligning OF / OC / NPI processes
Full line of sight deployment locked into key processes
30 April, 2013 S A Partners
Roadmap 2:
Lean and the Extended Enterprise
Focus on sustained profitability in strategically selected areas
Sustained operational performance metrics on key Value
Streams
Aligning supplier and customer processes via CAMBAN
technology
Operational capability now leading to sales growth opportunities

30 April, 2013 S A Partners
Roadmap 2: Customer Value &
Supplier Integration
Detailed Customer Value extending throughout the supply chain
Adapting process to meet with Customer & business needs
Product / process development exceeding Customer
expectations
Extending the offering and bridging the supply-chain
30 April, 2013 S A Partners
Lesson: Focus Under the
Waterline
Focus below the waterline in order to deliver the sustainable business
results required to keep you continuously above the waterline
30 April, 2013 S A Partners
Lowering the Water Level
30 April, 2013 S A Partners
Lowering the Water Level
30 April, 2013 S A Partners
Which elements of the Lean Iceberg do you need to
pay more attention to?

Strategy & Alignment
Leadership
Behaviour & Engagement
Tools & Techniques
Processes

Multiple choice with multiple answers





Poll
30 April, 2013 S A Partners
Success Factors for Sustainable
Change
30 April, 2013 S A Partners
Lean Maturity and
Organisational Learning


Ad-hoc
Formal
Goal
oriented
Managed
Autonomy
Way of Life
A
c
h
i
e
v
e
m
e
n
t

Knowing
Organisation

Understanding
Organisation

Single loop
learning
Double loop
learning
Step change in learning occurs
where the organisation can achieve
higher results than previously imagined
due to lack of knowledge of what was
possible
Bessant
& Caffyn
McGill &
Slocum
Senge
Push
Lean
Pull
Lean

Thinking
Organisation


Learning
Organisation

30 April, 2013 S A Partners
What further activity would you like?

Please select one or more answers

Poll
30 April, 2013 S A Partners
If you would like to discuss anything coming out of
the webinar please contact me at:
peter.hines@sapartners.com
or +44 (0)7974 416660
Please also link up with me at
uk.linkedin.com/in/profpeterhines/

Further Questions


30 April, 2013 S A Partners
Cardiff University accredited training in Melbourne,
Sydney and Brisbane. See more details on:
http://www.sapartners.com.au/wp-
content/uploads/2012/11/Lean-Awarness.pdf
Lean and Green free webinar with Dr Keivan Zokaei
on the 4
th
June . See more details on:
http://www.sapartners.com.au/thought-
leadership-in-the-area-of-lean-and-green-2/
Or Contact our Australian MD Chris Butterworth on
chris.butterworth@sapartners.com

Australian Events
30 April, 2013 S A Partners
Staying Lean Event 5
th
July Birmingham
http://www.sapartners.com/staying-lean-thriving-not-just-
surviving/

Learn-Share-Grow Event June 24
th
& 25
th
at Genzyme Waterford,
Ireland
http://www.sapartners.com/learn-%E2%80%A2-share-
%E2%80%A2-grow-achieve-lean-excellence/

The Book Launch of Creating a Lean & Green Business System,
June 20
th
at The Bridge House, Tower Bridge Road, London
http://www.sapartners.com/book-launch-of-creating-a-lean-green-
business-system/


European Events