Lean Leadership Principles

Hoshin Kanri - Policy Deployment or Implementation - Customer Focus, Aligned goals on levels.
Importance of Gemba - Shop Floor or Work Place - Shop floor based management - Decisions based on first hand knowledge
Qualification - Long Term Development of Employees - Continuous learning
Improvement Culture - Striving to perfection, Accepting  failure as a possibility to improve
Self Development of the Leader - Lean leaders are role models - New leadership skills are necessary and they have to acquire them

Lean Leadership – Fundamental Principles and their Application
U. Dombrowski, T. Mielke
Procedia CIRP
Volume 7, 2013, Pages 569–574
Forty Sixth CIRP Conference on Manufacturing Systems 2013



Related Reading
Principles of Management – Koontz and O’Donnell

Six Qualities of Lean Leadership - Lonnie Wilson

The new model of leadership - lean leadership. -  The Japanese have been using it for 65 years -- lean leadership.

It has six basic qualities, which are:

Leaders as superior observers: They go to the place of  action (gemba ) -- to observe not only the machines and the products but also to interact with the employees and observe their activities. They also are in contact with their customers. They have in abundance, the ability to be an empathetic listener. They listen to their employees, customers and suppliers.

Leaders as learners: They do not assume they know it all. They are in “lifelong” learning mode.

Leaders as initiators: They plan, they articulate and sell their plans, and they act on their plans. They are not risk averse. They are not cavalier.

Leaders as teachers: They are “lifelong” teachers. They teach and train their associates. When something goes wrong, their first thought is not “Who fouled up?” but “Why did it fail?” and “How can I use this as a teaching opportunity to support root cause analysis?”

Leaders as role models: They walk the talk. There is no substitute for this. NONE.

Leaders as supporters: They recognize they have get work done through many others, so they have mastered the skills of “servant leadership.”

http://www.industryweek.com/lean-six-sigma/six-qualities-lean-leadership?page=2

Lean Leadership Program - University of Michigan

Overview of Lean Leadership
Lean versus traditional management approaches
Elements of Lean management
Five needs of every leader

Introduction to standard work
Organizing and Planning
Leader Standard Work (LSW)

Tuesday

Communication
The communication process
Sending mixed messages
Effective communication skills
Barriers to communication
Effective meeting skills
Visual Management Systems
Elements of a comprehensive Visual Management System (VMS)
Introduction to A3

Wednesday

Trust & Motivation
Respect for others
Johari Window
The Personal System (Attitudes, Moods, Beliefs, Competencies, Values, Goals)
Maslow's Hierarchy of Needs
Herzberg's Job Enrichment Principles
Observation
Principle of 'Go-See'
Gemba Walks
Review LSW, VMS, and A3

Thursday

Providing Direction I

Conflict response modes
Levels of direction
Job relations
The Socratic Method
Job instruction
Handling difficult people

Providing Direction II

Job Methods (JM), PDCA
Introduction to Improvement Kata
Introduction to Coaching Kata
A3 presentation and coaching
http://isd.engin.umich.edu/professional-programs/lean-leadership/index.htm



Eight Critical Steps for Lean Champions
1. Choose where to focus your improvement efforts
2. Define process excellence and set clear goals
3. Actively participate in process improvement events
4. Assign staff and resources
5. Provide visible support for process improvement efforts
6. Monitor progress and hold people accountable
7. Clear obstacles to successful implementation
8. Recognize and celebrate accomplishments
http://www.epa.gov/lean/government/pdf/lean-leadership-guide-final.pdf

Leadership's role in lean transformations
http://dmannlean.com/pdfs/The%20Missing%20Link_Lean%20Leadership_DWMann.pdf

The 18 Principles of Lean Leadership
http://www.velaction.com/the-18-principles-of-lean-leadership/

Becoming Lean Enterprise - Action Plan - James Womack and Dan Jones

In their book, Lean Thinking, in chapter 11, Womack and Jones gave an action plan for becoming lean enterprise. Becoming lean enterprise starts with implementing lean production and proceeds to lean design, lean supply chain and lean sales order taking and delivering.


The Major Steps

Getting Started to Implement Lean Production

 Creating an Organization based on Product Families Flow Systems (Value Streams)

Installing Systems to Encourage Lean Thinking Among All in the Organization

Completing the Transformation

Results Expected from a Five Year Journey

The Next Leap - Next Five Year Plan

Getting Started to Implement Lean Production

       
   Finding a Lean System Manager - Change Agent
   Acquiring Knowledge of Lean Production and Lean Enterprise
   Finding the right location to start the lean activity
   Chart the Process Flow - Value Stream Map, Flow Process Chart
   Identify Improvement Areas
   Deliver Measurable and Visible Results
   Expand scope to more activities


 Creating an Organization based on Product Families Flow Systems (Value Streams)

Installing Systems to Encourage Lean Thinking Among All in the Organization

Completing the Transformation

Results Expected from a Five Year Journey

The Next Leap - Next Five Year Plan

Core Beliefs of Lean System - Enterprise - Proved in Many Implementations

Belief in SMED

Workers can be trained to do all activities in a work cell and also some more activities in other cells.

The entire material flow system (value stream) can function with near zero level safety stock.

Flow systems can be created with right sizing equipment and tooling and the equipment can be easily moved and reconfigured.

The cost of creating a flow system can be recovered by elimination of extra resources used in batch and queue systems.

Equipment can be made to be reliable. Its availability can be increased.

Defects can be eliminated. Poka Yoke is effective in eliminating defects. Self inspection and successive inspection are effective.

Operations personnel are capable of performing such additional functions as inspection, equipment changeover, maintenance, methods improvement etc; effectively and efficiently.

The demand can be reasonably leveled and satisfied through just in time production.


Source:
Transitioning to a lean enterprise: Guide to Leaders, Volume I
MIT

Lean System Implementation - Facilitating and Impeding Factors

2007

 Success Rates

Liker (1998) observed only three in seven firms attempting a transition to lean methods experienced any degree of success. According to Rubrich (2004), recent studies have shown, of the firms that claim to be lean, only five percent are truly lean. It shows that many firms have to know more and implement more changes in their systems.
It is important to note that Womack and Jones said, lean system implementation could be two steps forward and one step backward situation. So company must be prepared for temporary failures in many areas, but they have to persist to understand the system, come out with alternative and work toward success.

Training for Lean Systems

Blanchard & Thacker (2004) stated language is an important element of training. Unfamiliar terminology must be defined prior to beginning any intensive training program. Based on a study by Ragan & Smith (2005) the use of an agreed-upon and familiar language is critical and should be addressed at the onset of a training program. This issue has to be addressed as an important part of lean training programs and in the early part of the training program, the terminology is to be defined and explained adequately to participants.


Change Management
Bridges (1991) identified four key elements of change management which he calls the ‘four p’ method. These elements are as follows:
• Plan the change
• Explain the Purpose
• Paint a picture
• Give everyone a Part to play

Planning the change and explaining the purpose are critical in the process of  becoming a lean enterprise. Explaining the purpose of a lean transformation may decrease fear and resistance. Planning the change also includes clarification of terms and concepts. Neither Bridges nor Standard and Davis address the issue of clarifying terms and concepts. However, this critical element of training should not be omitted from the
planning phase of a lean transformation.

The results of the study reported in this post has used  14 interviewee with varied levels of experience and expertise in lean implementation.

Important Results of the Study useful in planning lean training programs and implementations.


Timeline Required for Implementing Lean Methods
Time Required:            Less than 1 year 1 > 3 years 3 > 5 years 5 > 7 years > 7 years Undecided
Number of responses:        1                       1              4                1                2                    5

The modal value is 3 to 5 years. Womack and Jones also talk of 5 years.

Indicators of Success of the Lean Implementation

Response Categories Number of Responses
Increased Profit                 4
Cost of Operations            3
Improved Quality              2
Improved Delivery Times  1
Employee Satisfaction       3
Reduced Cycle Time        1
Inventory Reduction         3
Increased Productivity      3
Sales Growth                   1
Employees Adopt New Philosophy 2
Reduction of waste          1
Improved Space Utilization 1

Add increase in customer satisfaction also.

All indicators fit with theory perfectly. Reduction in waste, increase in productivity and decrease in cost are similar measurements. But they are measured in different ways. Increase in profit also takes into consideration increase in sales and customer satisifaction.




What factors impede the implementation of lean?

The Question or Item  is designed to identify factors that impede the implementation of lean
methods.
Impeding Factors
Impeding Factors                       Number of Responses
Lack of Management Support             5
Lack of Understanding                        5
Resistance to Change                         4
Lack of Employee Buy-In                  3
Lack of Reason to Change                3
Lack of Employee Empowerment      3
Poor Communication                         3
Organizational Culture                        3
Lack of Training                                  3
Ineffective Leadership                          2
Traditional Thinking                             2
Bottom Line Thinking                          1
Poorly Planned Implementation            1
Poor Reasoning in Management Deadlines 1
Lack of Effort                                      1

The impediments are lack of understanding in senior management, middle management, first level management and operators. Training is very important for developing understanding.

Based on the understanding a plan has to be drawn.

Organization has to be established.

Leadership and Communication come into play when the plan is to be communicated and implements.

Lack of effort becomes visible during implementation phase and control actions become necessary. Changes always result in minor problems. Management must be ready to identify problems impeding the success and finding solutions.

What factors facilitate the implementation of lean?


Facilitating Factors
Facilitating Factors                                             Number of Responses
Support of Knowledgeable and Effective Leaders    7
Driven by Crisis                                                      4
Dedicated Change Agent                                         4
Employee Ownership and Empowerment                 4
Communication                                                        2
Understanding Theory and Application                     1
5S                                                                           1
Teamwork                                                               1
PDCA                                                                      1
Focus on Quality                                                     1
Visual Controls and Management                            1
Terminating Resistant Personnel                               1
Training in Change Management                              1
Strategic Congruence                                              1
Supplier Involvement                                              1
Customer Involvement                                            1

Important factors are  Support of Knowledgeable and Effective Leaders, Dedicated Change Agent, Communication,  Understanding Theory and Application.                    

Which training topics are most effective in preparing the workforce
for lean methods?



Effective Training Topics


Effective Training Topics            Number of Responses
Change Management                                   1
Kaizen/Continuous Improvement                  3
Problem Solving                                           3
Kanban                                                        2
Lean Principles                                             1
Value Stream Mapping                                 2
5S                                                                4
Visual Controls                                             4
Standardized Work                                       3
Pull Systems/One-Piece Flow                       4
SMED/Quick Changeover                             2
Total Productive Maintenance                       1
Statistical Methods                                        1
Types of Waste                                             2

There are no surprises in the list.

We need to provide training in improvement need, improvement tools and improvement management

Kaizen/Continuous Improvement  - The Need and Benefits

Tools: Problem Solving, Kanban,                    
Lean Principles,                                      
Value Stream Mapping                                
5S,                                                            
Visual Controls                                            
Standardized Work                                      
Pull Systems/One-Piece Flow                      
SMED/Quick Changeover                            
Total Productive Maintenance                    
Statistical Methods                                      
Types of Waste



Tools: Productivity Problem Solving, Standardized Work, SMED/Quick Changeover,  Lean Principles, Types of Waste

Value Stream Mapping, 5S, Visual Controls,  Pull Systems/One-Piece Flow, Kanban, Total Productive Maintenance,  Statistical Methods

Change Management

Source:
IMPEDING AND FACILITATING FACTORS IN THE IMPLEMENTATION OF
LEAN ENTERPRISE METHODOLOGY

A Thesis Submitted to the Faculty of  Purdue University
by  Brian S. Leonard
In Partial Fulfillment of the Requirements for the Degree of  Master of Science
December 2007
Purdue University , West Lafayette, Indiana

All the above research results will be considered and implemented in delivering the training programme
BECOMING LEAN ENTERPRISE: THEORY AND CASE STUDIES - Management Development Programme at NITIE, Mumbai, India

BECOMING LEAN ENTERPRISE: THEORY AND CASE STUDIES  - Course Study Materials

                                  
           

Lean Management by CEOs

Lean is strategic issue. Efficiency is strategic issue. Lean Management is creating value for the customer efficiently. That is the definition of management given by Koontz and O'Donnell. But it is Toyota's manager who really proved by becoming world class company giving great quality at a lower price and beating the great American companies.

If lean is strategic, the CEO must understand it. He has to embrace it. He has to put it into his organization. He has to organize lean production facilities which are mainly cells that can produce multiple products in a continuous flow. He has to organize a lean supply chain. He has to direct his organization to follow lean practices. Of course, he has to ensure the directions and plans are being followed. Control system to ensure lean, value creation and efficiency are there.

There are some CEOs explaining their involvement in successful lean transformations.


TRU-TEST CEO DESCRIBES LEAN TRANSFORMATION
Tuesday 18 February 2014
http://www.intentgroup.co.nz/tru-test-ceo-describes-lean-transformation/

Lean is the Strategy
Art Byrne | 1 January 2013
http://www.leanceo.com/lean-is-the-strategy/

Interview with Ary Byrne - CEO Lean Implementer
Author of the book - The Lean Turnaround
2012
_____________

_____________


Value Adding Lean CEO - Presentation by Art Byrne
http://www.lean.org/downloads/Byrne_slides_cm3.pdf


The Lean CEO Must ‘Lead by Example'
In the book,  The Lean Turnaround, Art Byrne stresses the importance of the Chief  Executive
involvement for lean transformations to be successful.
http://www.tbmcg.in/misc_assets/newsletter/OpEx_0213_Book_Review_The_Lean_CEO.pdf


The Lean CEO Effect
There's a big difference between CEOs who engage in lean and those who simply encourage it.
Oct. 17, 2012
Jonathan Katz | IndustryWeek
http://www.industryweek.com/companies-amp-executives/lean-ceo-effect

Emotions – OB Perspective

Organizational Behavior Article Series

Emotions have received some attention in organization behavior literature.
Neal M. Ashkanasy et al., Emotions in the Workplace: Research, theory and Practice, Quorum, West Port, 2000.
Richard P. Bagozzi, “Positive and Negative Emotions”, in K.S Cameroon et al., Positive Organizational Scholarship, Berrett-Koehler, San Francisco, 2003, pp. 241-258.
___________________________________________________________



The best description of emotion would be how a person feels about something.
Emotions are reactions to an object. They are not traits. They are object specific.

Types of Emotions

Positive Emotions:  Love/affection, Happiness/joy,  Surprise
Negative Emotions: Fear, Sadness, Anger, Disgust, Shame

Emotions can be shown as a continuum.

Happiness - Surprise - Fear - Anger - Disgust.

Emotional Labor

Some employees have to put in emotional labor as they have to control their emotions in the presence of provocation and show the behavior that is expected from them because of the job they are performing.
Emotion labor has dysfunctional consequences for the employees doing it (e.g., stress and burnout) [Luthans, 2005]. Some companies try to hire only those with very positive personalities. They tend to express genuine positive emotions instead of positive emotion which is result of emotional labor.

Recently emotional intelligence became a popular concept. The topic ‘emotions’ is now part of OB texts as emotional intelligence emerged as an important concept in OB.

Emotional Intelligence

Peter Salovey and John Mayer are usually given credit for developing the theory and definition of emotional intelligence first. Salovey and Mayor defined emotional intelligence as "the subset of social intelligence that involves ability to monitor one's own and others' feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions.


Daniel Goleman, the author of "Emotional Intelligence" explains emotional intelligence as "the capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and in our relationships."
Goleman classified this emotional intelligence and skill into two components: one component is related to self and the other component is related to dealing with others.
In the component dealing with self, the stages are self-awareness,self-management and self motivation. In the component dealing with others the stages are empathy and social skills.

Goleman makes the positive statement that emotional intelligence and competence continues to develop and grow. In a study, if was found that, measured EI of college students increased in a range of 50 to 300 percent after a course designed to enhance their EI.

EI helps people to get along with others and also to manage themselves in highs and lows of life. Therefore, it is not surprising that there is some longitudinal research indicating EI to be a better predictor of life success than IQ.



References
Luthans, Fred (2005), Organizational Behavior, 10th Edition, McGraw-Hill, New York


Article originally posted in
http://knol.google.com/k/narayana-rao/emotions-ob-perspective/2utb2lsm2k7a/105#

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Emotional Intelligence - Daniel Goleman - Book Information and Review

Emotions and Emotional Intelligence - Research, Researchers, Philosophers and Writers

Improving Emotional Intelligence of Stock Traders and Stock Dealers

Stress Test of Strategy

McKinsey Provides the following ten questions as stress test of your strategy. It is a test of the output of your strategy process.


Test 1: Will your strategy beat the market?
Test 2: Does your strategy tap a true source of advantage?
Test 3: Is your strategy granular about where to compete?
Test 4: Does your strategy put you ahead of trends?
Test 5: Does your strategy rest on privileged insights?
Test 6: Does your strategy embrace uncertainty?
Test 7: Does your strategy balance commitment and flexibility?
Test 8: Is your strategy contaminated by bias?
Test 9: Is there conviction to act on your strategy?
Test 10: Have you translated your strategy into an action plan?

All the ten questions are given an explanation and additional reading from McKinsey quarterly is indicated in the article Have you tested your strategy lately?