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Wednesday, September 7, 2011

The Roadmap to Organizational Excellence- Part 6 of 7

Lean Nation:

(Part 6 of 7) I am continuing to blog on a seven part series on how to create a world class organization. As a reminder, here are the seven steps to creating a culture of continuous improvement:

1. Find a Sensei - You need a coach to make the journey.
2. Select your organizational wide outcome measures - these are known as the True North measures.
3. Prioritize and map your value streams - select the areas with the most leverage.
4. Deliver Improvement - Use A-3 thinking and lean principles to make the changes identified in your value stream mapping sessions.
5. Sustain your improvements using visual management and leadership standard work.
Results are only realized if the gains are held.
6. Support your improvements with ongoing training and leadership development.
7. Spread your improvements to other parts of your organization.

This week I will expand on step 6: supporting your improvements with ongoing training and leadership development.  After about six months,  you should start to see some meaningful value stream improvement.  The collection of A-3 improvements supported by visual management and leadership standard work should be moving some value stream outcome measures.  If not, you need to likely go back and re-visit step 5.  As I said in my last blog, step 5 is by far the hardest and the most likely source of substandard performance with respect to improvement.

When the numbers start to improve,  you will start to get requests from other parts of the organization.  Everyone wants help getting better!  Steps 3, 4 and 5 can and should repeat themselves for several years. (most organizations quit at the first pass through the value stream) It takes a while to go through an entire value stream plan and complete the steps required to begin flow and pull.  Let's say we have done this.  Now what?

You should now create a  second value stream plan and develop a new vision for your process.  But we've already created flow and pull and started the implement a  zero defect system.  And we are managing visually.  I'm not sure how a seconf pass can help.  Answer, you might need some new tools.  Learning these new tools are the first part of step six.  You must continue to develop the lean skill set of the organization to wring out additional waste.  You might need to use:
  1. Poka-Yoke
  2. SMED
  3. Kanban
  4. utilize the principle of genchi gembutsu
  5. hoshin kanri
  6. 2P
  7. 3P
  8. 7 Ways
  9. Jidoka
  10. Andon
  11. Heijunka
  12. TRIZ
  13. many others
There are many lean tools you might not consider until you have created stability within your processes.  (You may recall this from an earlier blog)  But if we started with 95-99% non-value added activity, chances are next to impossible that a single kaizen event eliminated all of this waste.  Step six says continue your education.  Eliminate more waste using more complex tools and designs.

The second part of step six is continue your leadership development.  As a consultant, about month six into an engagement is when the leadership group traditionally starts to tune me out. After all, there are only seven wastes and five principles of improvement.  They've seen a value stream analysis and likely watched a report out from a kaizen event.  What is else is there to learn?  This is a critical step in the long term success of lean, to transform your organization.  Perhaps you don't know everything about lean and some guidance from a coach might be useful.

For example, what does a lean organization look like?  What type of organizational structure is desired?  Do we need value stream managers?  What does a lean compensation structure look like? How do you create a strategy that enables lean to foster? How do we shorten the learning curve for new staff and managers?  Do we need to start putting two or more value streams together?  When do we take lean outside of our four walls?  What does lean IT look like?  Lean Accounting?  Lean HR? Lean design and construction? Lean supply chain? Should we insource or outsource?  What do lean labor relations look like?

We must continue our development as lean managers to stay true to the lean core principles of continuous imporovement and respect for all people. Without this development, it will be difficult to sustain continuous improvement through the elimination of waste.

When you combine the development and execution of new lean tools and techniques, combined with the continued development of management, you are meeting the spirit of step 6.

Lean Blessings,

Ron

Ron Bercaw
http://www.breakthroughhorizons.com/

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