HESTIM 2021
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Introduction
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Expectations from Hestim team
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Participer et accompagner la transformation Lean de l’entreprise (RATP)
Appliquer les outils Lean pour optimiser la ligne de production (NOVARES)
Comment utiliser les outils du Lean pour résoudre des problèmes complexes (NEXANS
MAROC)
Comment se positionner sur l’ensemble du Lean: beaucoup d’outils vus, quels sont les
positionnements à avoir coté management (NEXANS MAROC)
Études de cas d’installation de systèmes Lean (OCP)
Comment appliquer la démarche Lean dans le projet PFE: voir le Lean en Pratique
(OCP)
Faut il appliquer le Lean comme démarche ou comme culture ? (OCP)
Les principales difficultés rencontrées lors de la mise en place du Lean ? (TECHNIQUE
ACIER MAROC)
Faire le lien avec Lean 6 sigma et Lean Manufacturing (OCP)
Est-ce que le Lean peut être appliqué chez les sous-traitants ? (OCP)
Mesurer les progrès de l’implémentation du LEAN (NEXANS MAROC)
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Purpose of this course
The purpose of this course is to give you competence to act as a lean coach
able to confidently support the implementation of lean for a project or a team.
On completing this course and your training cycle you will become a lean
referent who will be able to:
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Facilitate, coach and lead a team
Support implementation of lean methods and tools for a project and for
a team
Use and administrate the different lean methods and tools
Spread knowledge about lean culture and induce the associated changes
in culture and behavior
You will get
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a number of things to think about
information on things that you already new but just forgot
You will not get
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the magic toolbox that saves all your problems
ready to go cook books
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CONTENT
• LEAN HISTORY / LEAN DEFINITION
• LEAN MANAGEMENT
• AN EXAMPLE : VPS
• WCM & LEAN 6 SIGMA
En Plus … Suite à votre demande
• LEAN ASSESMENT
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CONTENT
• LEAN HISTORY / LEAN DEFINITION
• LEAN MANAGEMENT
• AN EXAMPLE : VPS
• WCM & LEAN 6 SIGMA
• LEAN ASSESMENT
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YOUR
DEFINITION
OF
LEAN ?
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THE WORD “LEAN” WAS USED THE FIRST TIME BY THE…
… TO DESCRIBE THE TOYOTA PRODUCTION SYSTEM
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Some Lean Basics
• Fords Early Success
• Transition to a “buyer market”
• Lean Production – Toyots success story
• Lean and numbers
• Traditional improvement work vs. elimination of waste
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Fords Early Success
Hand
made
First car in England 1895 – Evelyn Henry Ellis

Station  Line assembly (Ford)
Stationary assembly N-Ford 1906
Manpower highly specialized
(craftsmen)
T-Ford line
Station
Line

High level of adjustment
Engine
594 min.
226 min.

Low production volumes
Main Components
750 min.
93 min.

Each model was unique. There
were no standard production or
quality processes
Traditional manufacturing
 Push production
 Long lead-times
 Few variants
 Economy of scale
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Transition to a “buyer market”
Mass Production
Characteristics
Supplier
Factory
Order
Supplier
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High Production Volumes
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Economy of Scale
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Low diversity
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Push Production
Lean Production
Characteristics
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Flexibility

High variety

Shorter delivery times

Pull Productions
Factory
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Lean Production – Toyota success story
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Scenario: Japan – After 2nd World War
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Low production volume
High variety of models
Extremely limited capital
Low market share
”All we are doing is to shorten the time line
from the point where we receive the customer
order to the point we get paid.
We shorten this time line by reducing waste in
form of activities that does not add value to our
customers products.”
Taiichi Ohno
The focus of this system is to eliminate
waste
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Lean – The Origin
20 years after, the International Motor Vehicle Program needed a label to describe the phenomenon
they were observing in their study of Toyota. So they wrote on a white board the performance
attributes of a Toyota-style system, compared with traditional mass production.
It:
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Needed less human effort to design, make, and service products;
Required less investment for a given amount of production capacity;
Created products with fewer delivered defects and fewer in-process turn-backs;
Utilized fewer suppliers with higher skills;
Went from concept-to-launch, order-to-delivery, and problem-to-repair in
less time with less human effort;
Could cost-effectively produce products in lower volume with wider
variety to sustain pricing in the market while growing share;
Needed less inventory at every step from order to delivery and in the
service system;
Caused fewer employee injuries, etc.
After a moment of looking over this list, John said,
“It needs less of everything to create a given amount of value, so let’s call it lean”.
And the term was born
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2017-11
VPM Coach training
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Toyota Production System
The TPS house, in its simplest form is about:
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Seeking competitive advantage through customer satisfaction
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The Just-In-Time concept provides a vision of flowing value directly to the customer without interruption.
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Increasingly, customers want customized products and services on demand. Built-in Quality follows the principle of doing it right the
first time to avoid downstream rework.
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Resting on a basis of stability: the foundation of the house suggests it is not possible to flow value smoothly and perform each step
correctly, when there is chaos and instability. So, we need to level the flow of work to make it steady and consistent, through engaging
people into heijunka (production leveling), standardized work and kaizen.
The goal in the roof of the house suggests that doing these things will improve quality, cost, delivery, safety and morale.
Many manufacturing and service organizations that have followed these principles have had dramatic success in eliminating waste,
streamlining processes, saving money and better serving customers.
However, what is missing from this image is the people who are building and rebuilding the house to adapt to a dynamic environment. It
is a static image.
Often, people continuously improving are put in the center of the house, but when implementing the TPS, many organizations focus mainly
on the tools of Just-in-Time and Built-in Quality.
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CONTENT
• LEAN HISTORY / LEAN DEFINITION
• LEAN MANAGEMENT
• AN EXAMPLE : VPS
• WCM & LEAN 6 SIGMA
• LEAN ASSESMENT
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TECHNICAL & CULTURE
• Take a few minutes to reflect on the film.
• Think about the following questions
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What is the difference between knowledge and understanding?
Why is it so hard to execute change?
Why do organizations often regress after change?
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LEAN Objective and Concept
• The goal of lean: building for the long term
• Technic is not enough.
• Culture is essential and it must be anchored.
• The sustainability and profitability of the company and of the
jobs depends on the satisfaction of customers and their desire
to come back. Equally important are the means to achieve
this: respecting society and the environment, employees and
supplier partners.
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LEAN Concept
Culture
Most unsuccessful lean initiatives begin
with a heavy emphasis on technical tools,
but very little attention to culture
Technical
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when European and US people went to benchmark lean companies in japan
after the second world war, this is what they saw and reproduced:
lean technics, methods and tools
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LEAN Concept
Technical
Culture
Successful implementations begin with a
strong emphasis on Culture to ensure a
disciplined and sustainable transformation.
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what they did not see and which they took a long time to understand was not,
however, hidden but represented the basis of everything they had observed:
Japanese culture and it’s adequacy with the lean technics
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LEAN Concept
As organizations
mature and
implement more of
the technical
toolbox , the scales
come into balance.
With a robust lean
culture in place this
condition is
sustainable.
Technical
Culture
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Culture
• A commonly held set of doctrines, beliefs, values, morals and
symbols. The way we do things.
• An organization’s culture has a profound impact on the
effectiveness of the organization.
• Determined by the behavior of senior management for most
part.
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Impact of Culture
• Influences the most important issues of organization life
– How decisions are made
– How human resources are used
– How people respond to the environment
– What is tolerated and not tolerated
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LEAN Culture
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Focused on a “customer-first” philosophy
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Totally committed to Continuous Improvement
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Encourages all members to be problem solvers and experimenters, giving
recognition for successes, realizing that not ail experiments are successful, but
learning from failed experiments
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Quickly responds to all suggestions, implementing as many as possible. If not
implemented, information is given as to why.
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Become leaders/coaches vs. just managers
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Uses work teams and project teams to search for and implement improvement
ideas.
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Works to help everyone keep learning
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Seeks perfection in products, services and processes.
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LEAN System
• Creates value for customers, both internal and external
• Respects, involves and serves its people, its community and
the environment
• Focuses on improving people first. Values learning, where
everyone learns and improves everyday
• Pursues a common vision and clear goals
• Anticipates, identifies and solves problems throughout the
organization
• Effectively and efficiently produces and delivers quality goods
and services to exact customer demand.
Stability with Flexibility
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For decades, the Toyota Production System (TPS) house has symbolized lean.
Many companies have crafted their own version of the TPS modeled after this house.
Yet, Toyota created the Toyota Way 2001 house as a more general image of the core of
its company’s culture.
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The Toyota Way
The Toyota Way 2001 was introduced to provide a more
holistic, human-centered image for the people of Toyota.
Respect for people and continuous improvement are front
and center. These apply to any organization of people trying
to continually get better in a changing environment. It is a
dynamic image of people coming together to strive for
excellence.
The foundational values are:
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Challenge: forming a long-term vision and meeting
challenges with courage and creativity to realize dreams
Kaizen: improving business operations continuously,
always driving for innovation and evolution
Genchi Genbutsu: practicing genchi genbutsu, going to
the source to find the facts to make correct decisions,
build consensus and achieve goals at our best speed
Respect: respecting others and making every effort to
understand each other, taking responsibility and doing
our best to build mutual trust
Teamwork: stimulating personal and professional
growth, sharing opportunities of development and
maximizing individual and team performance
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Respect
Respect is based on two principles:
1.
Respect: A manager is not asked to love everyone, but to be able to
listen to his employees, to establish a relationship of trust with them and
to empower them to do their jobs. This requires the manager to define
what is expected of the employee while leaving him a space of freedom
in order to promote initiative and help everyone to progress.
2.
Teamwork: This is about fostering personal and professional growth,
sharing development opportunities and maximizing individual and team
performance.
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Continuous Improvement (CI)
Continuous improvement is based on three principles:
1.
Challenge: The challenge makes it possible to give meaning to any
activity, to focus people on the challenges of the company while
making each individual co-author of success. Long-term
perspectives and decision-making lead to the improvement and
optimization of the business as a whole.
2.
"Kaizen": Kaizen stands for "the pursuit of continuous
improvement". Any process that can never be declared perfect, an
improvement is always possible. Toyota continually improves the
functioning of its operations, seeking innovation and evolution.
3.
"Genchi Genbutsu": It means "go to the source to find out the
facts in order to make the right decisions, build consensus and
achieve product quality objectives as quickly as possible"
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TPS & Toyota Way
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Everyone in the company, at all levels, is expected to apply these values in
their daily work and in their relationships with others.
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So if the Toyota Production System is a production system, the Toyota Way
defines Toyota's management values.
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Toyota Production System applies to products and services delivered by
the company.
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Toyota Way applies to the men of the company.
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TECHNICAL
the toolbox
tools that adapt to any type of activity
necessary but not sufficient
CULTURE
the essential philosophy built on
what cannot be seen
adapts successfully in all cultures 36
Some other Old Houses …
T. Q. M.
Customer
Focus
Process
Management
Employee Training
& Empowerment
Continuous Improvement
(through measurement and analysis)
Customer Satisfaction = Profits
Just in Time
TPM
Teamwork
TPM
Continuous Improvement
Stability
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And New House …
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A Structured Approach …
which act on Organizations,
Processes and Mindset
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Organisation
Process
Mindset
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A Structured Approach …
which can take time
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THE YEARLY
ACTION P LAN
THE
CHALLENGE
THE 5 YEARS STRATEGIC PLAN
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Monitor Performance (KPIs)
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Volvo
Concept
It is a complete
Framework to manage:
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Change / culture
Technical aspects
Implementation
Assessment
Improvement Cycle
Assessment
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Ericsson
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CONTENT
• LEAN HISTORY / LEAN DEFINITION
• LEAN MANAGEMENT
• AN EXAMPLE : VPS
• WCM & LEAN 6 SIGMA
• LEAN ASSESMENT
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History of VPS
History of VPS.mmap
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“Continuous Improvement Leadership”
Speaker: Jorge Marquesini
jorge.marquesini@volvo.com
VP Cab & Vehicle - South America
VPS Function, Knowledge Sharing Event
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Lean Journey Never Ends
1999
2001
2002
2003
Lean Summit
Pilot Stations
Layout
Optimization
2004
2005
System Development
Repórter
STM
Kaizen
3
DOIO
Team work
2
1
0
Built-in quality
Process s tability
Just-in-time
2008
Kamishibai
Matriz de
Treinament
The Volvo Way
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Continuous improvement
2007
Mini truck
training
Revolution
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2006
OMS
2009
2010
2011
2012
2013
2014
2015
2016
Lean thinking
overview
VPS Function, Knowledge Sharing Event
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VPS Training
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Volvo Group Headquarters
Our mission
Driving prosperity through
transport solutions
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Volvo Group Headquarters
Our vision
Be the most desired
and successful
transport solution
provider in the world
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Volvo Group Headquarters
Leadership Summit - FOR INTERNAL USE ONLY
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February 9-10, 2016
Our values
Customer success
We make our customers win.
Trust
We trust each other.
Passion
We have passion for what we do.
Change
We change to stay ahead.
Performance
We are profitable to shape our future.
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LIVING UP TO OUR POTENTIAL
In order to become the best we can be, we
need to improve:
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the way we work
the way we work together
the way we use our processes
…
And of course, we need to improve the
way we work with improvement itself.
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Volvo Production System
VPS is an comprehensive and logical management system that aims to
improve the productivity and quality through the reduction of losses and
wastes.
The power of VPS comes from the involvement of all employees in solving
problems.
To produce good products we need to have skilled people focused on
continuous improvements.
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THE SYSTEM
WHAT: THE VPS FRAMEWORK
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THE VPS FRAMEWORK
It’s a dynamic framework that
consists of several key elements
necessary to drive an organization
towards excellence.
CUSTOMER SATISFACTION
MANAGEMENT
Commitment
Alignment
END 2 END
LEAN
Practices
Structure
IMPROVEMENT
Development
PEOPLE
Management
PERFORMANCE
Business results / Employee engagement
The different key elements cannot be
seen as separate components but are
complementary.
When the key elements (and their
elements + key activities) are
translated in the right way, their
implementation will generate the
desired results.
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VPS Concept
Lets Look Inside the Concept Model
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VPS Concept
The goal of the VPS model is Customer Satisfaction, through
Business Results, achieved by Engaged Employees
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Customer Satisfaction
 Customer:
– The Final Customer or End Customer is an individual or an organization who owns
and/or operate our company´s products and services. Is the true north or primarily goal to
achieve. Any feedback has to be quickly spread and solved by the right organization in
reactive, preventive and proactive actions.
– A receiver, usually called as “internal customer” is an immediate next process of your
deliveries. It can be departments, stakeholders, or employees. Activities and indicators
should always reflect positively the Final Customer (End to end alignment).
• Customer satisfaction
– Is a measure of how products and services supplied by the company meet or
surpass customer expectation. In a competitive marketplace where businesses compete
for customers, customer satisfaction as a key differentiator and increasingly has become
a key element of business strategy.
Source:
http://vgms.vservices.net/pages/64286e2a53df2947.htm
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Business Results
 Business Result is a translation of internal efficiency or internal performance, through
systematic continuous improvements and innovations, instead of reaching objectives
using arbitray methods.
 Everything we do, should have a clear and direct adding value* to the customer and to
our company. It means, find and eliminate/reduce all kinds of non-value added activities*.
 Enterprise (end-to-end) alignment is key for focusing on the overall business result
rather than results of each division/department individually (silos).
 It also consists of financial results as well as KPI’s following our processes and functions
performance. Both the objective and subjective side of our business are measured.
 Results should be continuously improved and any gaps, including input from our
customers, need to be analyzed and corrected using systematic approaches (tools and
methods).
*Value added activity: What the customer is willing to pay for. Everything else is non-value added activities
(waste and losses).
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Business Results
 Being a performance driven company, everyone needs to measure the efectiveness and
efficiency of our activities and our deliveries.
 The contribution of VPS to Business Results can be measured through (examples):
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Productivity increase: Doing or delivering more with less resources.
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Losses and Waste reduction: Focused improvements initiatives.
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Benefit/Cost ratio: Positive pay back of improvements/changes.
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Lead Time management: Smooth and precise end-to-end flows, including external
partners, pursuing shortest lead time.
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Quality: Right first time. Reduction of cost of poor quality of the value chain and for the
whole company.
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Delivery precision: Precision on process execution to reach Just-in-time.
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Employee Engagement
 Engaging employees in an essential step for sustaining continuous improvement work.
Developing a positive and collaborative working environment create a trustful
organization, where single employee will contribute to improve Customer Satisfaction and
Business Results.
 Respect for the individual means recognizing and utilizing each employee’s knowledge,
experience and ambition in order to continuously improve and develop teamwork and
working methods. Inspiration and new ideas are born out of day-to-day activities. This
helps in ensuring higher quality, efficiency and job satisfaction.
 Employees are trully engaged when they behave with open mindedness, accepting
challenges, and looking at problems as opportunities, feeling confortable in promoting
ideas, and devoting their energy to solve them by the root. In addition, there´s high
expectation on proactive attitude in doing the right things and things right.
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Employee Engagement
 The end-to-end mindset, sets how things can be improved for the best to the Customer
and to the company, by challenging the status quo, and not being satisfied with current
status. The maturity of the organization can be seen on how the continuous improvement
are embedded in daily life.
 The main enablers are the leaders and managers. Their role in developing the right
culture and mindset in people for continous improvement, starts with themselves in
attitude and behaviour.
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Employee Engagement
 VPS contributes to improve Employee Engagement through (examples):
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Improvements in the Workplace: Safety / Ergonomics / Stress / Well Being
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Improvements which affect positivelly VGAS: EEI, LEI, LCC and others.
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Improvements / employees
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Can improve Absenteism level (for non sick leave related): absences can be
minimized by increase of employee motivation.
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Increase of maturity level, in terms of self-sustaining the achievements, to follow and
improve your work, feel happiness to work by increasing ownership and accountability.
In other words, do not let the work, assets and achievements deteriorate by the time.
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VPS Concept
The VPS Model contains 6 Key Elements
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Continuous Improvement as a “system”
6 Key Elements which any organization must have:
Management
commitment
“where the energy and
direction come from”
Lean Practices
“Techniques for waste
elimination, quality and lead
time reduction”
People Development
“Competence and motivation creates
involvement and agility ”.
Example of an Engine: works
as a system where all
components are syncronized.
Performance
Management
“how we steer, control and
visualize the result of all
efforts”.
Improvement structure
”Organizational and support setup
with systematic approach”.
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Continuous Improvement as a “system”
6 Key Elements which any organization must have:
Dept A
Dept B
Dept C
Picture illustrate the dependency of
mutiple systems: “Syncronization”.
(picture does not illustrate a real
engine system)
Company Value Chain performance
End to End Alignment
”Entire company with common
objectives and cross functional
improvement work”.
A huge organization like Volvo, there are multiple dependecies on people,
processes, and organizations. To get the best output with minimum waste, without
working in silos, an ‘End-to-End Alignment’ is required.
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VPS Concept
Key Activities
Element
Key Activities
Key Activities
Key Activities
Element
Key Activities
Key Activities
Key Activities
Element
Inside the Concept Model
Key Activities
Key Activities
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VPS Key Elements and Elements
Management
Commitment
Performance
Management
People
Development
Improvement
Structure
Lean
Practices
E2E
Alignment
Continuous
Improvement
Leadership
Data & facts
management
Team work
Standardizatio
n
Just in time
Integration
Living Process
Meeting
structure &
Escalation
process
Competence
development
Problem
solving
Built in
Quality
Cross
Functional
Work
Target image
& Strategy
Deployment
Prioritization
Feedback &
recognition
Improvement
methods
Communicatio
n
Visual
Management
Knowledge
Management
Support
structure
6 Key
Elements
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Elements*
* Each Element has a list of Key Activities
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6 Key Element
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Management Commitment
For any organization to be successful, there has to exist a leadership that is committed to a Continuous Improvement culture and
desired behaviors that sets an example for everyone.
In the VPS, Management Commitment means embracing good VPS leadership behaviors, having a well formulated target image with
an effective vision and strategy deployment process, using the living process to create a sense of flow in the whole organization, and a
regular communication and dialogue at all levels in the organization
Continuous improvement Leadership
Engaged Leaders with necessary behaviors and management practices to support the
organization to continuously improve and learn.
Vision & Strategy Deployment
This is the game plan to engage the entire organization in achieving the target image.
It´s clear for everyone why things needs to change and improve, and what goals and
targets everyone has to achieve.
Living Process
An agile and manoeverable organization, with customer and business perspective,
ability to focus forces towards most important challenges, and where people are
involved and collaborate to reach break through results, leading to new energy and
higher capability.
Communication
Effective communication creates the foundation for a VPS culture,
and how we involve everyone in change and improvement work.
An effective communication process and a communicative leadership is guided by
transparency and an open dialogue at all levels.
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People Development
Nothing can happen in an organization without people. For the VPS to succeed, the people within the system must have the
competence both to do the job and develop the job.
Through teamwork we develop individually as well as teams. Through working in teams, we can recognize and develop the
competencies necessary for success. Competencies must be developed to insure we are capable in both human and technical
areas.
We grow through the learning we capture both by doing the work and by improvement work along the way. Coaching, feedback
and recognition serves both as a check on the effectiveness and efficiency of the improvements, and serve as a source for new
energy and commitment.
Teamwork
Create a sound organization where we collaborate in teams, and all
employees are involved in improving and developing the company.
Competence Development
The competence of the people must be aligned to the needs of both the
organization and the VPS. This must be evaluated and developed
continuously. As individuals and teams we create a culture of "learning and
sharing”
Feedback & Recognition
Coaching, feedback and recognition grows excellent teams and individuals,
and is a natural source for renewed energy.
Knowledge Management
Enabling individuals and organizations to systematically create, capture and
reuse knowledge, to generate continuous improvements and learning.
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Improvement Structure
An organization’s sustainable success is largely dependent on its ability to change and improve. Teams are the fundamental
organizational infrastructure to facilitate improvements. Standardization sets the baseline, and enables process stability, while
exposing problems to be solved. Problem solving attacks the problems and finds the root cause. Structured methods for
improvement and learning insures consistency and alignment, while capturing knowledge gained and making it available for reuse.
Standardization
Improvement
methods
Standardization helps us to quickly see abnormalities and establish
the baseline for improvement
Future
Problem Solving
A structured approach to identify the phenomena, find the root
cause and solve the problem.
Support Structure
People or a team with skills and abilities for coaching, teaching to
support the organization in driving improvement work in differente
levels and dimensions.
Improvement Methods
Current
Improvements are most efficiently realized when they are the result
of a method. Using the appropriate method for different needs is
necessary for success.
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Performance Management
Performance management ensures that performance against set targets is tracked in a visual and transparent manner.
To do this, an appropriate meeting structure is in place to track performance and progress of operational and tactical activities, as well
as addressing problems or needed support.
Based on data and facts we can prioritize most important activities to continuous improvements. Visualization supports the effective
way to understand and improve the our performance.
Towards
Excellence
Data & Facts Management
Data and facts should be collected at the actual place, and these
are necessary to measure and improve performance
Meeting Structure & Escalation Process
Improvements
Prioritization
Regular follow up structure ensures we track performance and
activity progress, and address problems to the proper
organization/area.
Prioritization
Meeting
Structure &
Escalation Process
Data & facts
management
Prioritize the most important activity to be focused to get real
benefits
Visual management
An effective way to present an information or status, and to
identify abnormalities or problems
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Lean Practices
Lean practices enables precision towards our customer. This holds two important systematic approaches to secure minimum
operational cost, this is a never ending journey.
In order to achieve flow in a process, stability and predictability in quality are required. Good Just-in-Time and Built-in Quality, enable
flow without disturbances.
Built-in Quality (BiQ)
It means delivering a products, processes, services or activities according to
the customer needs (internal or external), in other words, doing anything
right from the first time. To reach this zero defect level, whenever problems
occur, a proper countermeasure and root cause analysis is done quickly to
eliminate reoccurrences. A preventive approach expand solutions to similar
areas or processes. And finally proactive when the past experiences are
addressed during any new development.
Just-in-Time (JIT)
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Shortest lead time
Flow without disrutption
Delivering what the customer needs, when needed and with the right
quantity. It requires waste elimination using systematic tools and methods to
enable an accurate processes flow, thus shortening processes lead time.
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End-to-End Alignment
Alignment between functions, support areas, departments shall secure clear and common customer oriented focus by an effective
collaboration and alignment of individual, teams, goals, and measurements. Value chain performance shall be secured and not
individual/department measurements, either a service level agreement and/or process interface agreements on expectations,
performance level and ways of working between suppliers and customers (internal and/or external) with a short and long term
collaboration and improvement road map. Processes lead time shall be measured and wastes/losses and bottlenecks are identified to be
eliminated as well improvement ideas secure lead time reduction, in a systematic way. Communication, cross-functional work and
collaboration shall be supporting this alignment. The output of any process has to be a valuable input for a following process.
Furthermore, a concurrent development shall be used to secure involvement and contribution from all concerned areas, to improve or
when a new process is being developed, securing the change is an improvement for the company.
Integration
Alignment of different players in the organization in goals and targets, lead
time reduction, towards the main company´s goal.
Cross Functional Work
Team formed with different expertise to develop new product, process or
service, or to solve or improve the process (or it´s performance) in issues
where the involvement of more than one area or department is necessary to
find the best solution.
End-to End alignment:
-
Group Trucks uses different abreviations for sales (MAS),
OtD (PRD), PD (DVP) and aftermarket (DCL)
Common goals for inter-related processes
Business flow improvement, shortening lead times
Effective cross-functional teamwork & improvement
Alignment of all support functions, systems, projects, tools
and intiatives etc, to maximize the efficiency of the value
creation flow, and grow the capability of the whole
organization
89
VPS – Summary
-
Develop teamwork.
Develop capability in people to do
the work and to improve the work.
Engage and promote improvements
from everyone.
Share and learn from each other.
Reach targets and objectives.
Deliver Results.
Pursui never ending waste elimination
to make things easier, faster, better
and cheaper.
Daily management.
Promote and welcome problems and
escalate when necessary.
Understand issues , leaders to
support the organization on solving
problems.
Develop visual management for
quick identification of abnormalities.
-
Develop standards on how to do
the job, for all levels in the
organization.
Extensively use of systematic
improvement methods and tools.
Develop a knowleadgeble
organization for coaching.
-
Stabilize internal processes and
work flows – reliability in quality
and delivery, plus shortening lead
times.
-
Develop common goals among
interfaces (your upstream, your own
area and downstream processes until
the final customer), by reducing
waste, focusing on which solutions
suits best for the customers and to
the company.
Leaders :
Understand business challenges and why.
Develop long term strategy and short term plan: deploy,
communicate, engage and drive the organization towards excellence.
Understand the role of the manager in supporting and coaching the
organization.
Celebrate achievements.
90
20 Elements
91
LEAN
PRACTICES
Lean Practices
92
Lean Practices
Lean practices enables precision towards our customer. This holds two important systematic approaches to secure
minimum operational cost, this is a never ending journey.
In order to achieve flow in a process, stability and predictability in quality are required. Good Just-in-Time and
Built-in Quality, enable flow without disturbances.
Built-in Quality (BiQ)
It means delivering a products, processes, services or activities according to
the customer needs (internal or external), in other words, doing anything
right from the first time. To reach this zero defect level, whenever problems
occur, a proper countermeasure and root cause analysis is done quickly to
eliminate reoccurrences. A preventive approach expand solutions to similar
areas or processes. And finally proactive when the past experiences are
addressed during any new development.
Just-in-Time (JIT)
-
Shortest lead time
Flow without disrutption
Delivering what the customer needs, when needed and with the right
quantity. It requires waste elimination using systematic tools and methods to
enable an accurate processes flow, thus shortening processes lead time.
93
Just in Time
94
Just-in-Time
 Purpose
JIT is a concept where the main purpose is to reach a predictable and accurate flow of processes by reducing lead
times, non-value added activities such as, setup/preparation, queue, waiting and batches.
Key activities
Flow Creation
Pull System
Short description
Connect processes in a sequence, creating a
visual flow that will make it easier to identify
abnormalities and minimize stagnation. The goal
is to reduce lead time, by minimizing buffers
and work in progress, while pursuing single
flows.
Customer pulls what is needed, when it is
needed, in the amount needed. The process
should be agile to deliver in the shortest possible
lead-time. Pull instead of push flow, creates
agility in delivery and absorption of long lead
times due to processes constrains (batches,
distances, setups, instability, etc.).
Key activities
Workload, capacity &
pace (Takt, Cadence)
Planning,
Scheduling &
Leveling
Short description
Understand the demand vs capacity is a key factor
to enable process flow. Constrains such as
bottleneck has to be solved to deliver according to
JIT with optimized resources.
Translation of customer demand or process
workload in pace/speed to stabilize process flow
(scrum, takt), thus deliveries. Creating a standard
pace in the process helps in visualizing
abnormalities in the flow for further improvements.
To reduce customer response time, scheduling the
customer demand using a criteria for prioritization
smooth out the demand versus capacity. And as
batching orders increase the response time, levelling
out deliveries in a mix of items produced, processed or
developed, enable flowing of the deliveries in smaller
quantities for each customer at the same time.
95
Flow Creation
A fundamental lean concept is the establishment of the flow-to-the-customer with shortest response time (or
lead time). The process value streams should be designed to secure it flows smoothly. In the case of disruption,
disturbances, stoppages, it has to be improved. On the other hand, wastes nominated as non-value added
activities (NVAA) has to be constantly eliminated.
The flow principle is valid for any process, such as: manufacturing of products, parts or components, supply
chain, documentation, product development, invoicing, payments, recruiting, decisions or approvals, and any
kind of information flow.
Continuous flow processing eliminates stagnation (buffer, queues), overprocessing, complex controlling and
visualization, etc.
Inefficient flow
Continuous Flow
96
Pull System
When continuous flow cannot be achieved or the response time to the customer is too long the best alternative
is “Pull-from-the-customer system”, or just pull system. It also protects against over processing, over working,
excess of inventories or even shortages, when it is well planned. Traditional processing in scale or mass
processing, often is based on a push flow.
In Pull system, a customer triggers a need to start activities in upstream processes. So the whole processes
upstream by working according to the customer trigger, enable stability in the processes (the pull concept).
However, the ultimate goal is to be able to eliminate buffers and create an accurate flow with shortest response
time to the customer. ( example: A normal situation at McDonald's fast food chain)
2. Custome triggers the pull
for replenishment of ONE
4. Make
one, and
move
3. Order to
make ONE
5. Make
one, and
move
6. Make
one, and
store
1. Customer
consumes ONE
Customer
Controlled amount: not
processing before it is
required.
97
Workload, capacity & pace (Takt or Cadence)
Organizations should understand the customer demand and set the pace of their processes and workers to
deliver smoothly and consistently to meet that demand. (projects, products and services)
Pace is the speed of the process which projects, products or services must run to be able to deliver on the
expected timing. Normally due to the variability of the customer demand and processing time variations, a
weighted average defines an “artificial pace”. Once the pace is understood, each process step in the
organization has to adequate it’s pace or cadence. The pace becomes the “heartbeat” of the organization. It
improve process efficiency as things gets done with balanced and paced workload.
The pace (formula below) is calculated base on figuress, but processes have variations in each cycle. An
artificial and shorter pace, called Cycle Time (CT), assure the real pace can be achieved. Depend on the process
and its stability and complexity.
Individual workload
Rebalance
with others
Eg. 3 minutes / order
Eliminat
e waste
Available time (hours)
individual workload limit (Cycle time*)
Eliminate
waste
Pace =
Customer demand or flow pace
Required speed of the flow (pace)
Perfect state
Example:
Time (Sec, min, h, .. Day)
Balancing the workers workload secure delivery precisions, reduction of workload stress, easier for problem
identification, and management control and support for improvements.
% of variation
Non-Value
Added activities
(waste)
Value 98
Added
activities
Planning, Scheduling and Leveling
It was vital to the development of process efficiency. The goal is to execute the process at a constant rate so
that further processing may also be carried out at a constant and predictable rate. Before execution of a
process, it is important to understand variability of the workload.
Planning is the understanding and translation of the customer needs, on what, when, from who, how
much/many. Planning can be simple for process with low complexity.
Scheduling is the allocation of the planning activity into specific process. The input is on what to do, when,
who and when should be delivered.
Leveling is a technique for reducing the Mura (Unevenness) which in turn reduces muda (waste). Breakdown
requests (porfolio projects, services orders, products, parts, etc) into process steps (small activities) and plan a
smooth workload with acceptable workload variability, so it becomes more predictable. In order for the
organization to run smoothly and with good efficiency, it is necessary to smooth this intake before it is
presenting it to the process.
- Priorities
-
Lead time reduction for ABC / flow
Flexibility / Multi task
Problems quickly identification
99
Built in Quality
100
Built-in Quality
 Purpose
It means delivering a products, processes, services or activities according to the customer needs (internal or
external), in other words, doing right from the first time. To reach this zero defect level, whenever problems occur, a
proper countermeasure and root cause analysis is done quickly to eliminate problems and avoid reoccurrences. A
preventive approach expands solutions to similar areas or processes. And finally proactive when the past
experiences and potential failures are addressed during any new development.
Key activities
Quality
Standards
Quality
Assurance
Short description
Quality standards should reflect the
expectation of the customer. They should
also reflect the technical requirement of
the product.
Aim is to reduce defects through process
control, with immediate feedback and
action when issues are found. The
process should be able to detect and stop
problems carried out to the next process.
Key activities
Short description
Variation
Reduction
Any process is liable to variability,
important variation which affects
significantly the process and it´s
outcome, should be measured, analysed,
controlled and minimized.
Process Input
Quality
Process input performance should be
assured, and monitored and abnormalities
should be contained. Control of the quality
processes input is necessary to efficiently
secure good quality output.
101
Quality Standards
Quality standards are established in accordance to the need and requirements of the customer, market, legal
or by the users.
Quality standards include:
- Technical quality of the product: torque values, part integrity, fit and finish, etc.
- Service quality: call response times, document completeness, parts fulfillment, lead time to fix problems,
compliance, etc.
- Measurements : KPI set, dimensions, criteria, limits, tolerances, variations, testing methods, etc.
DVP
MAS
PRD
DCL
Product Quality
Standards
Process Quality
Standards
People and Services
Quality Standards
102
Quality Assurance
Once quality standards are established, there should be methods and routines to assure these standards are
consistently met.
Quality standards are best met by the concept of Built in Quality. This is when processes and techniques are
designed so that quality is assured, in the station where the work is done. Inspection in this case is only
necessary for verification. A robust quality assurance effort prevents defects and repairs and helps
organizational efficiency. It also supports greater customer satisfaction through lowered warranty and better
product performance.
Process A
Process B
Process C
Final
Process
Example of Operations reactive methods
103
Variation Reduction
Variation is at the heart of process control. Processes that experience excess amounts of variation are said to
be out of control and are unpredictable. There are various techniques to analyze process variation. From a
statistical standpoint the most common, and well known is control charting. This technique involves collecting
data and potting it on a time chart. Statistical process limits are then plotted and the process can be
monitored to determine if it is statistically in control. Based on this, countermeasures can be put in place to
reduce variation and bring the process into control.
When setting up processes or equipment, capability studies can be conducted to establish whether or not the
process is statistically capable of producing the required quality output.
Overall, variation affects quality and stability, and must be understood and controlled to produce quality
products and services in an efficient manner. Reducing variation is a fundamental prerequisite to
improvement.
104
Process Input Quality
Each process is influenced and affected by the inputs it receives. Even if a process is well designed, and is able
to operate with little variation and a consistent output, it can be adversely affected by the inputs it receives.
To insure processes are able to consistently produce good quality, methods must be in place to protect the
process from input deviations. For example, validation of part quality, securing supplier delivery precision,
establishing clear work instructions and visualizing critical quality points can all be critical to quality process
inputs.
Process input quality speaks also to the concept of end to end alignment. If processes aren’t managed and
controlled in a way that respects the previous and the following process then the entire chain is affected.
Input
Defect not detected
Process
Defect
passed
Delivery
Cause major issue
The “wip” effect
Customer
105
Lean Tools
Levelling
Takt
JIT
Heijunka
VSM
Pick to Light
Pick to Sound …
WaterSpider
Sequencing
Kitting
Kanban
ILU Assembly/Production Lines
See Quality Course !
106
Management
Commitment
MANAGEMENT COMMITMENT
107
Management Commitment Overview
For any organization to be successful, there has to exist a leadership that is committed to a Continuous Improvement culture and
desired behaviors that sets an example for everyone.
In the VPS, Management Commitment means embracing good VPS leadership behaviors, having a well formulated target image with
an effective vision and strategy deployment process, using the living process to create a sense of flow in the whole organization, and a
regular communication and dialogue at all levels in the organization
Continuous improvement Leadership
Engaged Leaders with necessary behaviors and management practices to support the
organization to continuously improve and learn.
Vision & Strategy Deployment
This is the game plan to engage the entire organization in achieving the target image.
It´s clear for everyone why things needs to change and improve, and what goals and
targets everyone has to achieve.
Living Process
An agile and manoeverable organization, with customer and business perspective,
ability to focus forces towards most important challenges, and where people are
involved and collaborate to reach break through results, leading to new energy and
higher capability.
Communication
Effective communication creates the foundation for a VPS culture,
and how we involve everyone in change and improvement work.
An effective communication process and a communicative leadership is guided by
transparency and an open dialogue at all levels.
108
Target Image &
Strategy Deployment
109
Target Image & Strategy Deployment
 Purpose
Target Image and Strategy Deployment means to have formulated an attractive image of the future, as well as the
image of the personal leadership, that will guide actions, behaviour, decisions and improvement work. When
shared with all employees, this Target Image will give direction and engagement in daily operation as well as
improvement work. A clear plan to achieve the Target Image and the Strategic Objectives is made and translated
through “catch ball principle” for involvement of all employees.
Key activity
Understand the
current state
Target Image
De
for future state
Target Image
translation
and strategy
deployment
Short Description
By understanding the current state of
the process and analyze all kinds of
aspects and dimensions, and reflect on
the relevant facts and input, (both
objective and subjective), the
management team starts to get aligned.
Based on the wanted position, strategic
objectives and organizational needs, a
Target Image is made, defining the future
state from an objective and subjective
perspective.
Translation is made of target image,
strategy and objectives, to every level in
the organization, including relevant KPI’s.
Everyone knows how to contribute to
reach local and overall targets.
Key activity
Short Description
An annual strategic plan, with clear
Create the annual focus and “why” reasoning, is created
plan, strategic focus and deployed through-out the whole
organization.
and reasoning
Strategic Dialogue
Execute the plan
Frequent Involvement and two-way
communication is made with everyone
about the Target Image, strategy and
focus. Catch ball principle is used to get
full engagement.
Structured improvement approach and
regular follow up, to maintain focus on
results. Allocate and enable resources
for execution.
110
Understand the current state
COLLECTION AND ANALYSATION
OF FACTS
• Assess VPS maturity
• Go & See to understand
• Benchmark
• Perform interviews
• Audit, evaluation & description tools
• Analyze ongoing initiatives
• Leadership synthesis
and sign off of current situation
Current State
Future State
KPIs that measure the
performance of today
and states the areas
where we want to
improve in the future
Challenging objectives
and updated KPI targets
mirroring what we are
heading for
Objective
The way we make business
today, how we operate and
the standards that guides
our behaviors and way of
working
The way we have to make
business tomorrow, how to
operate and work standard
to be able to reach the
future targets
Subjective
The individual thinking
of today. Current culture
and underlying values
KPI´s and
targets
The individual thinking
of tomorrow. Future
culture and underlying
values
111
Target Image for future state
Workshops
Vision,
Strategic objectives
Stake holder
interviews
Output:
Objective &
Subjective
Current & Future State
Will to
develop
• …..
• …..
• …..
• …..
• …..
• …..
• …..
• …..
• …..
• …..
• …..
• …..
Format
Structure
& content
Current state
Facts, Prerequisites
Target image (TI)
A target image that
arouses energy
and gives direction
Ideas & images
Experience & knowledge
(Collection phase)
(Condensing phase)
112
Target Image translation and strategy
deployment
VOLVO GROUP
VISION AND
STRATEGIC
OBJECTIVES
Strategies are implemented by
individuals and teams across the
Volvo Group...
CREATION OF TARGET IMAGE
AND FOCUS, BREAK DOWN
STRATEGIC OBJECTIVES
WITHIN EACH BA/BU
TRANSLATION OF TARGET
IMAGE AND FOCUS, BREAK
DOWN STRATEGIC
OBJECTIVES WITHIN YOUR
DEPARTMENT/TEAM
PERSONAL BUSINESS
PLAN (PBP)
YOU !
MANAGERS &
EMPLOYEES IDENTIFY
INDIVIDUAL
CONTRIBUTION
113
Create the annual plan, strategic focus
and reasoning
Leaders formulate
Think from the future to
and communicate
understand where to be at
the vision
Volvo Group Vision
each point in the journey
Strategic focus
Target image
Strategic focus
Strategic focus
To where we want to go
Our target image of where we
want to be in the future
(future state)
Strategic reasoning
- why we want
to go there
From where we are…
We must first understand where we really are
(current state)
114
Strategic dialogue
BROADCAST CULTURE
(Info sharing)
!
? ?
?
COMMUNICATION CULTURE
(Strategic dialogue)
Depth
of the
Organization
? ?
!

!
!

!
Active approach
“Joining the game”
Receipt of understanding - Agility!
Inactive approach
“Watching TV” (one way)
Applause & appreciation - Agility?
The strategic dialogue is needed to reach shared view about common direction
and alignment of goals, measurements and business objectives
Before – lack of shared view
Strategic
dialogue
After – Shared
view
115
Execute the plan
Strategic level
(Annual)
Strategic planning
Tactic level
(Weekly/Monthly)
Plan
Plan
Tactic planning and
deployment of plan
Act
Act
Implementation of plan
and regular review
Check
Annual review
Improvement
opportunity
• Department managers
• Team leaders
• Team members
Do
Check
Ask for help based on local needs
Input for development of standard
Teams / individuals
Improvement
work
Operational
work
Do
Operative level
(Daily)
Improved
operational
work
Support
Structure
Training, coaching and guiding
Knowledge transfer
Methodology and standard
•
•
•
•
Management team
Coaches, coordinator
Tool/concept owners
Experts
116
PERFORMANCE
MANAGEMENT
Performance
Management
117
Performance Management
Performance management ensures that performance against set targets is tracked in a visual and transparent manner.
To do this, an appropriate meeting structure is in place to track performance and progress of operational and tactical activities, as well
as addressing problems or needed support.
Based on data and facts we can prioritize most important activities to continuous improvements. Visualization supports the effective
way to understand and improve the our performance.
Towards
Excellence
Data & Facts Management
Data and facts should be collected at the actual place, and
these are necessary to measure and improve performance
Meeting Structure & Escalation Process
Improvements
Prioritization
Regular follow up structure ensures we track performance
and activity progress, and address problems to the proper
organization/area.
Prioritization
Meeting
Structure &
Escalation Process
Data & facts
management
Prioritize the most important activity to be focused to get
real benefits
Visual management
An effective way to present an information or status, and to
identify abnormalities or problems
118
Data & Facts
Management
119
Data and Facts Management
 Purpose
Utilize data and facts to understand the current situation, making good decisions, and measure improvement
progress, and not using arbitrary methods (e.g. feeling, experience, etc.). Data can be used for analysis, control, and
measurement. Data should be scrutinized often, and validated against direct observation at the actual place. Facts
are visual and explicit information of something (e.g. photo of an accident, wet floor, broken component, flat tire,
KPI data not up to date).
Key activities
Control Data
& Facts
Performance Data
& Facts
Short description
Control data or facts showing the
processes are under control. Control
of the stability and/or capability of
processes, equipment and people.
Key activities
Improvement Data
& Facts
Short description
Data showing improvement
progress related to the main
measurement and targets such as
reduction of wastes and losses, cost
reduction achievement,
improvements pace, etc.
Performance measurements and
trends against a target or objective,
the process can be easily be judged
if is under performance or over
performance. Losses and wastes
collected systematically for further
statistic analysis.
120
Control Data and Facts
A fundamental of process stability is to determine whether or not the process is under control. If it is in control, it
will operate in a statistically predictable manner. It is free of “special causes” of variation.
A process that is under control can then be improved to produce an output that meets specifications.
Data to showing the process is under control. (e.g.. machine temperature, 5S audit level, real lead time to solve
problems, Cost deployment F matrix, cost / unit, CP-CPK for process variation (can be applied
anywhere), competence matrix gaps (3x3x3), absenteeism long term,
What control data has to be measured to assure process is stable ?
121
Performance Data and Facts
Performance data is collected to track the performance of the organization against targets. In many
situations this is categorized as Safety, Quality, Delivery, Cost, Environment and people (SQDCEP). This data is
often visualized as run charts, or bar charts with trend lines and target levels plotted.
This data is most often time ordered so that performance over time can be visualized. This type of data can
highlight problems as a gap to specifications or targets.
What performance data has to be measured to assure process achieve targets and goals ?
Reach 100% performance
Reach 100% Attainment
100%
“Problem solving
approach”
Target
Achieve
zero defect
“Define & monitor
the conditions
for zero defect”
Target level
Accumulated delivery
x%
Performance
Number of defects or complaints
Reach zero defects
“Root cause analysis for each
deviation. ‘Why not 100%’
analysis of data & facts.
“Root cause analysis
for each deviation
and its
countermeasure”.
Maintain
zero defect
time
time
time
122
Improvement Data and Facts
Improvement data and facts measure the energy and accomplishment of the improvement efforts. This can
be in many forms, including; ideas per employee, number of kaizens, assessment results, employee
engagement, cost deployment project results etc.
Improvement can also result in increased standards and goals in performance data and facts, as the bar is
raised through improvement.
What data has to be improved ? What is the pace of improvements ?
123
Visual
Management
124
Visual Management
 Purpose
It is an effective way to present information or status, and to identify abnormalities, problems and improvement
opportunities. It is extensively used to improve transparency for everyone. Visual management provides a clear and
common understanding of goals, measures and symbols, to allow a quick decision making, and immediate reaction
has to be taken.
Key activities
Normal vs
Abnormal
Condition
Performance
Visualization
Short Description
Clear visualization of deviation to the standard such as current
progress vs. target, standard work/material flow for each process
Visualize necessary information on due timing to track and react
quickly to restore to the desired performance level of KPIs/PIs
targets, goals.
125
Normal Vs. Abnormal Condition
Being able to quickly see deviations to standards is essential to reacting quickly, and effectively to problems.
Visual techniques are the best way to quickly recognize abnormal conditions. Visual techniques also promote
transparency and engagement, since everyone can see the abnormality and not have to refer to files, instructions
or other documentation or knowledge sources to know an abnormality exists.
This key activity is strongly connected to other key activities. For example, Systematic Analysis under the
Problem Solving element points out the importance of seeing and surfacing problems. Within the area of Data
and Facts , Performance Data tracks trends, and potential deviations from standards, so that problems can be
seen. 5S is the strongest tool for systematic visualization of normal vs. abnormal conditions.
126
Performance Visualization
Performance visualization helps to answer the question, “How are we doing?” For an organization to take the
necessary actions to meet performance targets, it is important to have transparency. This is best achieved by
visualization of performance information. By being constantly aware of performance levels, proper
countermeasures can be taken to address deviations.
Plant wide performance information boards are a good example of visualization of performance data.
Dashboards for departments, units or whole organizations could be another example. Along with the
visualization of the performance data, is the communication that can happen with the visualization to confirm
receipt and understanding.
127
Prioritization
128
Prioritization
 Purpose
Prioritization guides the decision making process on what to do, when to do it, who will do it, and in which
sequence it will be done to achieve the most important goals in accordance to the expected due date.
Key activities
Cost
deployment
Value stream
mapping
Short Description
Consolidation of wastes and losses and translate them into cost, and
respectively focused improvements activities performed to reduce
substantially the fixed and running cost in a yearly basis.
Identify various kinds of losses mainly related to the process flow,
such as bottlenecks, constraints, non-value added activities, queues,
batches, pushed processes, and especially focuses on the lead time.
129
Cost Deployment
Cost deployment is a structured methodology to identify processes wastes and losses, assign a monetary value, and
prioritize projects to reduce or eliminate them. It helps to avoid arbitrary cost reduction methods, when the efforts
from the organization are aligned with the expected saving targets.
Cost deployment is an important prioritization tool to attack embedded loss-cost. It also helps understand direct or
causal losses as well as resultant losses that or sometimes overlooked. A robust CD program runs in waves that
continually identifies, prioritizes and attacks losses.
Savings
Savings
Target
130
Value Stream Mapping
Organizations that seek to eliminate waste and create customer value, need to be able to see the waste. VSM is
a technique to visualize the waste and stagnation in the value stream, i.e., lead time reduction.
VSM is an important tool to help visualize the flow ( or lack of flow), in any process or processes, and to identify
and prioritize areas that need improvement to optimize flow and reduce waste.
131
Meeting
Structure
& Escalation
Process
132
Meeting structure & Escalation process
 Purpose
Create and effective meeting structure to keep control of daily business status, and react to problems
or issues quickly. Ensure everybody is committed in regular meetings to reach team goals, as well as
the overall objectives for the focused area.
Key activities
Team meeting
Short description
Short-interval control keeps business agile in reacting when abnormalities
occur. Teams react quickly to remedy the situation or suggest
improvements to prevent them. Utilize the time to meet to get everybody’s
commitment, creativity & experience.
Utilize everybody’s commitment, creativity & experience
Follow-up &
Escalation
Process
Follow-up on team goals, metrics, action plan and corrective actions to
identify deviations. Problems/issues are escalated to upper level to be given
proper support.
133
Team Meeting
Teams are most effective when working closely together with good communication. Regular and well
structured team meetings are critical to the communication and information sharing process. Performance
data and facts can be reviewed in the meetings, and performance gaps addressed with action plans.
Improvement data and facts are reviewed to determine the engagement and energy of the team, and to track
the pace of improvement.
Team meetings provide the forum for teams to conduct their business, and resolve issues on a regular basis.
Shop Floor Team Meeting Agenda
Timing
Item
Who and What
Team leader and team representatives - Report status of
SQDCEP and address any gaps. (Control and
0:00
Daily Mangement (Status of SQDCEP)
Performance Data and Facts)
Team members report Status of CI work. Report
progress of open items, introduce new ideas
0:10
Continuous Improvement status
0:20
Action list follow up
0:30
Communication and new issues
(Improvement Data and Facts)
Add or close items from action list. Escalate items as
necessary.
Communication and dialog around important issues.
(Catchball)
134
Follow Up and Escalation Process
At each level of the organization there are sometimes problems or roadblocks that cannot be overcome. In
these cases there needs to be a formal process to escalate these issues . In a supportive organization, the
escalation process elevates unresolved issues to a level where the appropriate support, with the proper tools
can be applied to get resolution.
Just as importantly, a structured method of follow up is used to make sure issues do not go unresolved. The
follow up can also include the communication and standardization of the solutions.




Results
Feedback
Cascade
Recognize





Escalation
Report
Results
Follow-up
Suggest
135
Lean Tools
San Gen Shugi
Data Measurements
SPC
TeamWork (Elementary Production Units)
Escalation
GOD
Cost Deployment
VSM
5S
Standards
Visual Management
136
Living
Process
137
Living Process
 Purpose
The living process creates a sense of flow in the entire organization, leading to a more agile and manoeuvrable
company, increased competitive strength and ability to reach break through results in strategically focused areas. It
guides the company towards a higher degree of maturity, creativity and productivity, by addressing Energy,
Direction, Inner life (cooperation & collaboration), Output and Feedback.
Key activity
A living self
organizing
system
Short description
The living process provides a
simple and practical model to
utilize the power of selforganization in any organization. It
gives a systemic view that enables
the organization to increase
synergies, people involvement and
collaboration. It gives the
conditions needed for an
organization to reach a higher
level of maturity.
Key activity
Enabling an
agile
organization
Short description
Business & customer perspective
is regularly addressed, increasing
strategic awareness at all levels. A
clear direction is set to focus
forces in concerned issues. The
diversity, competence and
experience of all are put in play.
Results are visualized on both hard
and soft measurements. Feedback
is used systematically on all levels
to create new motivational
energy.
138
A living self organizing system
Creating a sense of flow in the organization
The concept of Living Processes (self organization) is a universal principle. It can be applied in any social
system; such as teams, functions or whole units, to create a sense of flow in a conscious way.
Flow is at the same time a very stimulating feeling and a very productive state, this means higher
engagement and creativity, leading to increased performance, agility and competitive strength.
One by one, these components are easy to understand and make common sense. When all five are in
place and interact as a system, the true power of the living process emerge – self organization.
All are aware of opportunities &.
Clear direction for both
threats, and business & customer unit and the teams. Goals
situation, with a sense of urgency & measurements in place
Cooperation, respect and
Activities to reach the goals.
openness. New perspectives
Visualize output, results and
& ideas. Efficient ways of work. progress. Measure & follow-up.
Energy
Direction
Inner Life
Output
Why shall we do anything?
What should we do?
How shall we work?
What are our results?
Feedback
What have we learned?
We work in complete cycles, and we reflect and learn from experience, to create
new energy. We make learnings available for others and develop our abilities
139
Enabling an agile organization
The organization as a living process
Energy injections
•Management communicate the vision
•Regular reflection of overall purpose
•Sharp strategic reasoning explaining
“why”, to create a sense of urgency
Creating and managing Energy
•Business situation is translated so everyone understand
and are “in contact with the market”
•Active monitoring of market, customers, competitors, etc.
with news from external reality shared regularly with all
•Regular follow-up focusing on results and progress
Creating and managing Input
•Strategic focused areas that
challenge the whole organisation
•Leaders at every level are
formulated, with local translations
of the strategic reasoning and focus
•Targets are understood and
established with everyone involved
•Everyone has taken a stand for the
targets in public
Creating and managing Inner life
•Open & transparent communication horizontally and
vertically, characterized by respect and curiosity
•Understanding and trust for each other’s work & competence
•Different perspectives and experiences are seen as an asset
•Leadership is characterized by “Leading by asking questions”
•Leaders and employees are aware of “how work works”, with
high awareness of how own work influence the workflow
•Different functions and units join forces across borders and
levels to improve collaboration and overall performance
•Frequent information between internal customers & suppliers
•Committed people, taking initiatives and making the success
of the company their own personal business
Creating and managing Output
•Output is made visible and transparent
•Trend breaks in strategic focused areas
•Many trend breaks in local targets
•A lot of change activities performed
•Less waste & more value added work
•Improved collaboration & cooperation
•Productivity/competitiveness increase
•More sensitivity to external & internal
changes and Increased ability to adapt
Creating and managing Feedback
•A sense of shared view and co-operation, with a
feeling of being part of a winning team
•Many vital productive teams with high engagement
•Solving issues across borders comes easier
•We can see that we learn from our experiences
•We feel that we govern our own future
•Working is satisfying and we have fun together
•We see that our company is continuously developing
and moves towards a learning organization
140
Continuous
Improvement
Leadership
141
Continuous Improvement Leadership
 Purpose
The purpose of Leadership as an element of Management Commitment is to support and lead the
organization towards the vision of the future state. VPS leadership behaviors enable the organization
to achieve success by promoting the creativity, motivation of everyone to continuously learn and
improve
Key activity
Supportive
Leadership
Go and See
Short description
Supportive leadership is key to
releasing the creativity and
initiative of the people.
Leaders act as coaches.
Successful leaders lead at
Gemba. Leaders must see how
it really is.
Key activity
Act as
role model
Leading
Transformation
Short description
Leaders who act as role
models set the expectations
for the organization.
In an improving organization,
change is constant. Manager
has to be able to lead the
transformation process and
lead the organization toward
the future state.
142
Supportive leadership
Creating a value shift by ”turning the organization upside down”
Our role as leaders is to make sure we create value for our stakeholders
(customers, employees, suppliers, owners, and ultimately our society)
We do this by:
- supporting the organisation to be able to create customer value and reduce waste
- focusing on supporting the value stream
- creating prerequisites for the whole organisation to continuously improve and learn
- Decentralized decision making towards where they are being implemented
To demand
To support
Creating customer value in
our value streams
Creating customer value in
our value streams
143
‘Go and see’
Go and see yourself to thoroughly understand
the situation and the value flow
Process confirmation:
• Leadership thoroughly being able to understand the
business in detail.
• Surfaces issues for resolution driving continuous
learning.
• Creates strong relationships based on respect and trust.
• Allows opportunities to challenge, guide and coach.
• Supports learning from each other.
• Capturing of good examples and improvements in a
systematic way.
Mindset and activities:
• Support the value creators and challenge status quo
• Surface issues and welcoming problems
• Regularity and knowing where your “gemba” is
• Be clear what to observe– you will see what you look for
• Keep focused on value and the customer
• Two way communication
144
Act as role model
Role models are meant to inspire, instruct, and to set a good example
”How am I acting to
be a role model?”
• Formulate and communicate our vision of the future state,
opportunities, risks
• ‘go and see ‘– we ask questions, we are curious, we ask for
feedback
• Coach – we respect individual’s situation and help put things
into context
• We dare to ask for help
• Lead by example and practice ourselves what we preach
• Take ownership, champion initiatives and deliver results!
… Our own thinking is the base for how we behave and perform
145
Leading Transformation
State
Developing imbalance
New State
Behavior
Structure
Behavior
Structure
Behavior
Thinking
Culture
Thinking
Culture
Thinking
Structure
Culture
The use of evolutionary leadership requires courage and endurance. You must consciously create developing
imbalances. You move keystones and keep aiming at the new state, via good examples, until the system as a
whole moves over into a new state of balance.
146
Communication
147
Communication
Purpose
Effective communication is essential in all aspects of leadership. It creates the foundation for our continuous improvement culture, and
how we involve everyone in the improvement plan. Results and performance are enhanced by an effective communication process and
a communicative leadership. This includes an effective communication infrastructure, a communication that supports performance,
and an ongoing open and honest dialogue at all levels to build trust and engagement.
Short description
Key activities
Effective
communication
process
Communication is managed as a process.
Structures and forums for effective
communication reinforce VPS activities.
Common language sets a VPS culture
Link
communication to
performance
Clarify business & customer needs and
challenges. Utilize communication to
highlight direction and performance
issues. Visualize performance level and
gaps
Prepare and
follow up
communication
Adapt and prepare the communication
activities. Follow up to understand the
effect and result of the communication
for further improvements.
148
Key activities
Build trust and
encourage
dialogue
Connect with
heads, hearts and
hands
Short description
To build trust, frequent dialogue at all
levels guided by curiosity, openness and
transparency. Active listening and sharing
of ideas, experiences and perspectives
increase understanding and
collaboration.
Clarifying and simplifying information to
make people understand the logical and
rational aspects and connections. Use
opportunities to connect with people’s
emotions and feelings, to understand
“why” and enhance engagement and
involvement. Make sure information help
us to go from words to activities and the
completion of the improvement cycles.
148
Effective communication process (1/2)
Communication
infrastructure
(Tools, channels,
roles, routines...)
An adequate communication
infrastructure creates needed
conditions for an effective
communication process
An Effective
Communicaton
Process
A process view on
communication makes it
more efficient and able to
support VPS initiatives
• Smoother and more efficient
implementation / transformation
• Better prepared as leader and
better involved as employees
• Better people & change mgmt
through times of change
• Better momentum and VPS pace
as ”success breeds success”
A common language builds our VPS culture. To ”speak the same language” means that we have a
common base of understanding and nomenclature for how we work and communicate with
continuous improvements and change.
149
Effective communication process (1/2)
4 elements of Communicative Leadership supporting a Continuous Improvements Culture
• Clarify business & customer needs and challenges
 Strategic dialogue/Why-reasoning, Voice of Customer
• Utilize communication to highlight direction and
performance issues
 Make Target Image, Strategic Focus, VPS roadmaps and
relevant goals & measurements visible for everyone
 Make it simple to understand and
see goals and needed performance
• Visualize performance level and gaps
Link
 Make it simple (use graphics) to see
communication
current performance and deviations
to performance
from standards and needed output
• An ongoing dialogue at all levels
guided by curiosity, openness and
transparency, to build trust
 Dialogue tools and mind-set are
used to promote dialogue
 Structures are set-up that make
dialogue easy (quantity and quality)
Build trust and
encourage
dialogue
• Active listening and sharing of ideas, experiences and
perspectives, to build understanding and collaboration
 Guided dialogue, “staircase” and other tools & techniques,
are used to see other perspectives and experiences, and
find new ideas to solve problems and work better together
• Preparation and adaptation of communication activities
 Activities are planned in advance, with end result in mind
(think from the future), using e g Living process- and PDCA
thinking to ensure an effective communication process
 Messages and format are adapted to audience and situation
 If a big and important communication activity, use dry-runs
to test mtrl & approach. Plan for possible “tricky questions”
Prepare and
follow up
• Follow up and understand the effect
and result from made communication
 Plan already from the start how to
follow up the effect of the activity
 Reflect. Measure effect if possible.
Use output to continuously improve
Connect with
heads, hearts and
hands
• Clarify and simplify information to
make people understand the logical
and rational aspects and connections
 Use data, facts and internal &
external input to make reality clear.
Help people “connect the dots”.
• Use opportunities to connect with peoples emotions/feelings
to understand “why” and enhance engagement/involvement
 Dare to be personal! Find out what make you & people react
• Make sure information help us go from words to activities
and complete cycles
 Words and plans are made actionable. Use step-by-step
thinking and ensure working in complete cycles
150
Link communication to performance
Why linking communication to performance is important
We use communication to make important performance issues, (status, deviations,
achievements, etc) a part of day-to-day work for all. We create awareness about
conditions, at work and in our business, with strong connection to performance.
This creates a performance culture, where everyone is aware of where we are and
where we need to be. This helps us influence and improve performance and drive improvements.
How can we link communication to performance
There are many tools and activities that can be used for this, both from VPS and Communication.
Often, it’s about visualizing and making information simple, clear and available, so people easily can
understand the situation and make own conclusions. Simplicity and transparency is key, and also a
mind-set, that “you don’t have to be a brilliant speaker, but you have to be a frequent speaker”.
We clarify business & customer needs and challenges, highlight direction and performance issues,
and visualize performance level & gaps
151
Prepare and follow up communication
Basic requirements for an effective communication process
WHY should we
communicate this
& who is concerned?
Why is it Important?
Energy
WHAT should we
communicate?
Main messages?
Wanted effect?
Direction
HOW should we
communicate this?
Who need to be Involved?
How to involve? When?
What is the RESULT
of the communication?
Did we meet the
objective and effect?
Inner life
Output
Feedback
What can we
LEARN from this? How do we increase the effectiveness?
Successes and failures gives more experience and self confidence.
Success and results lead to renewed energy and ability - “Success breeds success!”
We adapt and prepare the communication activities.
We follow up to understand the effect and result of the communication for further
improvements.
152
Build trust and encourage dialogue
Trust and dialogue promotes continuous improvements
We communicate with each other and keep up an active dialogue. We participate
in conversations that matter.
Through open dialogue, all of us can contribute to improvements. Active listening
and a lively exchange of experiences, ideas and perspectives promote understanding and collaboration between
different teams and functions.
Leaders communicate frequently and proactively with all employees, especially during times of change and
challenging business conditions. Face-to-face and team meetings are used to encourage an open dialogue.
(Ref: The Volvo Way)
VPS Tools and techniques that support trust and dialogue in teams
Complete/incomplete cycles, Guided dialogue/Active listening, Staircase (see different perspectives), Cossack (create
a shared view), Leadership by asking questions, Animal picture and exercise,
Table metaphor (model to bring up different communication scenarios in teams)
VPS Tools and techniques that support trust dialogue in larger forums
Strategic dialogue (to get shared view and receipt of understanding), U-turn (to see others perspective), Building
blocks of communication, “The attitude of the samurai”, setting up structures that promote dialogue
To build trust, frequent dialogue take place at all levels guided by curiosity, openness and
transparency. Active listening and sharing of ideas, experiences and perspectives increase
understanding and collaboration.
153
Connect with heads, hearts and hands
Rhetoric is the art of effective verbal or written communication. Rhetoric is not just simple logical
argumentation! How, where, when and why one says something, and who is saying it, are all just as important
in rhetoric as what one says.
There are 3 basic and classical perspectives that is used to support a message:
Logos: Appealing to the listener by facts, logic or reason. Logos means using facts, figures, graphs,
examples, metaphors and different forms of reasoning from evidence or deduction. This is very
useful for attracting the intellect of skilled and mature audiences, as well as for negative or
skeptical audiences.
Ethos: Appealing to the listener by reputation, social position or personal character. Also refers
to a collective or organization's reputation. This is supported by being personal and authentic.
Pathos: Appealing to the listener by emotion (yours or the audience's). To do this, it is important
to address “why” something is important or needed, mainly from a subjective perspective.
These 3 areas can help you touch peoples minds and hearts, to make things happen (hands):
- Will my presentation make good reason and sense? Do my facts, examples etc. support logical
rational thinking? Can people make own conclusions?
- Will the way I present this make sense from an ethical credible way? Will I be trustworthy?
- Will my presentation touch peoples emotions and feelings in a positive way? What can I do, say,
visualize, to get in contact with their (and my own) emotions?
We clarify and simplify information to make people understand the logical and rational aspects and
connections. We use opportunities to connect with people’s emotions and feelings, to understand
“why” and enhance engagement and involvement. We make sure information help us to go from
words to activities and the completion of the improvement cycles.
154
Lean Tools
San Gen Shugi
6M
Supportive Leadership
Process Management
Iso 9000
Excellence Models
VSM
6 boxes
Strategy Deployment
155
E2E
ALIGNMENT
E2E Alignment
156
End-to-End Alignment
Alignment between functions, support areas, departments shall secure clear and common customer oriented focus by an effective
collaboration and alignment of individual, teams, goals, and measurements. Value chain performance shall be secured and not
individual/department measurements, either a service level agreement and/or process interface agreements on expectations,
performance level and ways of working between suppliers and customers (internal and/or external) with a short and long term
collaboration and improvement road map. Processes lead time shall be measured and wastes/losses and bottlenecks are identified to
be eliminated as well improvement ideas to secure lead time reduction, in a systematic way. Communication, cross-functional work
and collaboration shall be supporting in this alignment. The output of any process has to be a valuable input for a following process.
Furthermore, a concurrent development shall be used to secure involvement and contribution from all concerned areas, to improve or
when a new process is being developed, securing the change is an improvement for the company.
Integration
Alignment of different players in the organization in goals and targets, lead
time reduction, towards the main company´s goal.
Cross Functional Work
Team formed with different expertise to develop new product, process or
service, or to solve or improve the process (or it´s performance) in issues
where the involvement of more than one area or department is necessary to
find the best solution.
End-to End alignment:
- Common goals for inter-related processes
- Business flow improvement, shortening lead times
- Effective cross-functional teamwork & improvement
- Alignment of all support functions, systems, projects, tools and
intiatives etc, to maximize the efficiency of the value creation
flow, and grow the capability of the whole organizaion
157
Integration
158
Integration
 Purpose
Total enterprise optimization, through alignment and integration of processes and people, both vertically (organization) and
horizontally (value chain). By focusing on the customer needs and setting of challenging targets, integration helps reducing non-value
added activities, organizational and mental silos, and sub-optimization. This makes the organization improve ’time-to-market’ and
’time-to-customer’, improving cash flow, as well as creating an ’one company’ culture.
Key activities
Enterprise
alignment and
integration
Shared goals &
targets
Total Value Chain
and Lead time
management
Short Description
The organization is integrated vertically by alignment of management and support
processes and functions, and by shared view between management levels and
employees about direction and ambitions. The organization is integrated horizontally,
driven by a clear customer perspective, supported by effective communication,
collaboration and cross-functional improvement work.
Targets, goals and indicators (KPI´s) among processes have to create win-win
situation, with focus on the value chain optimization. Leadership cascade goals
down through the organization in order to ensure alignment and consequently
integration.
Understand the impact of lead time in the value chain. Never ending improvements
initiatives aiming the reduction of lead time in partnership with other processes.
159
Enterprise alignment and integration
Every activity should have a clear purpose for the company´s objectives. Some
activites are directly realted to the main flow and others who should support it.
Alignment of business objectives eliminates the ‘silo thinking’ and Improve the total
efficiency in company.
•
•
•
Vertical dimension
• Strategic awareness.
Corporate functions
Management processes
Support functions and processes
• Connection between business and employees..
• Balance between performing and developing new
ways of working.
• Ability to adapt to market situation and maneuver it
quickly.
Horizontal dimension
• Processes execution and problem solving.
• Respect and diplomacy in co-operation.
• Productivity increases through systematic
improvements and/or structural changes.
Enterprise main flow
• Stabilize and continuously improve lead time, cost,
quality, and other key measurements.
•
•
Value Chain / Lead Time
Process performance
160
Shared goals & targets
Subjectives and objectives goals and targets must be aligned, shared and committed
to the target settings from the company. Meantime conflicting objetives (KPI´s)
reduce competitiveness, alignment of objectives shall be translated and deployed.
Identify what are your department/area contributions to the big goal.
Management &
Support Functions
Enterprise´s
Objectives
Enterprise´s
Main Flow
• Develop a clear logical metrics and
targets to ensure everyone are
focusing on the same direction.
• Eliminate conflicting KPI´s.
Strategic Objective
Key Performance Indicator (KPI)
Performance Indicator (PI)
Indicator (I)
161
Total Value Chain and Lead Time management
Value chain is a set of activities within business process which generate value in order to
deliver product or service for the market.
The value chain framework is the forefront of management thought as a powerful analysis
of the strategy. It shall be extended to whole supply chains and distribution networks.
Total Value Chain
Process A
Process B
Process C
Process D
Lead Time
Total Lead Time
By understanding the process lead time and the total lead time, the organization shall pursue
a never ending lead time reduction, through continuous elimination of wastes and non-value
added activities using systematic improvement methods and tools.
162
Cross Functional
Work
163
Cross Functional Work
 Purpose
Cross functional work is the handling of any activities or issues where there are no clear or simple organizational responsibility (gray
zone), or when there are dependencies of other areas, departments, functions, or even when there´s a need to involve other
companies or entities (e.g. Suppliers). In other words, it´s a group of people with different functional expertise working together
towards common goals. By having shared goals and targets the departments, divisions or entities organize cross functional teams to
solve a problem, or to develop an improvement solution. Sharping edges to create precise deliveries on boundaries between
departments.
Key Activities
Cross functional
improvement
Concurrent
development
Short Description
Boundary spots between processes needs to be sharpen to have a
smooth hand over of activities to avoid defects, delays, etc. A team
is formed from all related areas to find a good solution focusing on
the best solution to the business in an overall perspective.
New product, services, process development should run with
multiple functions concurrently over the entire development
process phases. Involvement of the users during the development
bring practical experience of past problems and the cross functional
team secures a smooth launch with a vertical ramp up in the key
measurements.
164
Cross functional improvement
An effective action on End-to-end is colaboration among areas, functions or departments.
Cross functional teams are constantly established to solve a problem or to improve a specific
situation.
The right mindset when setting the objective for an improvement work, shall be focusing on
a company or business perspective. “what is the best solution to the business?” instead of
thinking “what is better to my process?”.
5 Key steps to promote cross-functional improvement:
1. Create a Unified Vision.
2. Work Towards Achieving a Common Goal.
3. Motivate and Support.
4. Execute and Measure.
5. Recognize and Share.
165
Concurrent development
Concurrent engineering is a work methodology based on the parallelization of tasks (i.e.
performing tasks at the same time). Reduction of the development lead time is the major
gain, but also, working in a cross functional team enhance the development through people
with different background, knowledge and experience, delivers a much better new products,
processes or services.
Number of
modifications
Tradicional
development
-
Concurrent
development
-
Concept
Full
Development
Ideal time for
modifications Cheaper
Start/
Launch
Use of knowlege from all areas
regarding past experiences (good
and bad).
Create an ealry awareness to the
new product, process or service.
Reduction of development cost
Reduction on modifications after
the start
Be preventive and proactive rather
than reactive.
Time
High cost for
modifications
166
Lean Tools
Process / Value Chain Mapping & Management
Target Image / Target Deployment
Cross Functional Teams
167
IMPROVEMENT
STRUCTURE
Improvement
Structure
168
Improvement Structure
An organization’s sustainable success is largely dependent on its ability to change and improve. Teams are the fundamental
organizational infrastructure to facilitate improvements. Standardization sets the baseline, and enables process stability, while
exposing problems to be solved. Problem solving attacks the problems and finds the root cause. Structured methods for
improvement and learning insures consistency and alignment, while capturing knowledge gained and making it available for reuse.
Improvement
methods
Standardization
Standardization helps us to quickly see abnormalities and establish
the baseline for improvement
Future
Problem Solving
A structured approach to identify the phenomena, find the root
cause and solve the problem.
Support Structure
People or a team with skills and abilities for coaching, teaching to
support the organization in driving improvement work in differente
levels and dimensions.
Improvement Methods
Current
Improvements are most efficiently realized when they are the result
of a method. Using the appropriate method for different needs is
necessary for success.
169
Standardization
170
Standardization
 Purpose
The purpose of Standardization is to set a baseline from which improvement can occur. Standardization after
improvements insures the improvement will be sustained. A lack of process stability undermines an organizations
ability to improve. Having a highly visual and standardized work environment secures stability and creates
opportunity for improvement.
Key activities
5S
Standardized
Work
Short description
Defines how to organize a work space from an efficiency and effectiveness standpoint.
Keeping only the necessary, organizing, defining standards, and keeping the discipline.
The 5S´s are: Sort, Set in order, Shine, Standardize, and Sustain.
Standard ways of working must be documented and people trained to the standard.
Good visualization of standards gives quick access to assure the customer
requirements. This sets the baseline from which improvement can occur.
171
5S
5S is the foundation for culture change and
continuous improvement – it is about changing
our old habits and the way we look at our work!
5S is the foundation that supports all phases of
improvement work – a major contributor to
elimination of unnecessary work and
visualization!
5S quickly allows you to see normal and
abnormal conditions – those are improvement
opportunities.
172
Standardized work
Develop and define the way of working in detail.
Establish a basis for improvement – if the work sequence is different each time and motions are disorganized,
there is no baseline for evaluation of improvement opportunities.
Any time improvements are made to an area, strict adherence to standards is the key to both maintaining the
performance of the process and increase the performance in the future through continuous improvement
systems.
Deviations from Standard are abnormalities
which is classified in MURI (overburden), MURA
(unevenness) and MUDA (waste).
173
Problem
Solving
174
Problem Solving
 Purpose
The purpose of Problem Solving is to resolve problems that happen everywhere and restore the standard. Apply
methodologies with a logical and fact-based approach with root cause focus, to eliminate the reoccurrence of the
problems. In a long term perspective, reaching zero defects is the ultimate purpose.
Key activities
Short Description
Methodology
The usage of proper tools and methods to secure both effectiveness of
the solution, and also efficiency in solving problems.
Systematic
Analysis
Surface the problems. Problems are seen as opportunities. Precise
investigation on how the problems occurred by phenomena description
through 3G: Gemba, Gembutsu and Genjitsu.
175
Methodology
In the context of continuous improvement it is important to use a specific method to approach problem
solving. The particular method used is determined by the scope, complexity and nature of the problem.
By consistently following a specified method, a common problem solving language is created, a basis for
training and competence evolves, and problems can be addressed systematically.
176
Systematic Analysis
Problems should be viewed as opportunities. A culture of surfacing and solving problems will produce and
sustain process stability and performance.
Even when guided by a particular problem solving methodology, it is important to collect data, investigate
phenomena, and validate root causes to insure a complete and sustainable problem resolution has occurred.
177
Improvement
Methods
178
Improvement methods
 Introduction to the element
The use of standardized improvement methods is to secure a never ending effort to improve products, services and
processes systematically. These efforts seek "incremental" improvement over time or "breakthrough"
improvement.
Key activities
Short Description
Improvement
idea program
Capturing ideas through an official channel where any employee can give and
implement improvement ideas with minimum steering process, mainly for simple and
easy ideas to be implemented. In the majority of the ideas, the issuer implements it.
Events and promotion or either in the individual PBP´s the program reaches targets of
improvements per employee, which increases every year.
Quick
improvements
Quick improvements can be run by anyone who identifies an improvement
opportunity with minimum assistance or approval process.
Focused
improvements
Improvement where a team or individual is assigned to run (functional or crossfunctional) on making a medium to large size improvement, from a complexity and
resource allocation perspective. It should be direct connected to the business needs.
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Improvement Idea Program
It is a program to encourage all employees to identify opportunities to make smaller- scale improvements that
are within their control. These are innovations and ideas where an employee identifies a problem or
opportunity, develops an innovative way of doing something better, does testing and implements the solution.
These improvements are the continuous incremental improvement.
180
Quick improvement
Methods to make small and frequent improvements, addressing simple issues or opportunities. Minimum
assistance or resources needed.
The solution is usually driven by an individual or a small group as part of an operative responsibility during a
short period of time. The work is mostly reactive, but can also be proactive
Complexity
Major contributor for the Idea Generation Program
Major improvement:
Incremental improvements
• Management decision
• Time and resourceneeded
• Multiple / complex subject
Standard improvement:
Tactical improvements
• Resource planning
• Project style improvement
• One subject with many issues to tackle
Quick improvement:
Daily improvements
• Easy & simple / bottom-up
• Few resources needed
• “Before & after”
Effort in Time & resources
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Focused Improvement
Complexity
Implement medium (tactical) and large (Strategic) improvements
Tactical: Small to medium size projects where a few resources are needed. Typically driven by a team, to
collect ideas and find solutions. Teams can be both temporary or permanent over time, and can be both
functional or cross-functional
Strategic: Cross-functional improvement team (or teams) focusing on a major challenge or a complex issue
Prioritization and time/resource allocation needed by management.
Major improvement:
Incremental improvements
• Management decision
• Time and resourceneeded
• Multiple / complex subject
Standard improvement:
Tactical improvements
• Resource planning
• Project style improvement
• One subject with many issues to tackle
Quick improvement:
Daily improvements
• Easy & simple / bottom-up
• Few resources needed
• “Before & after”
Effort in Time & resources
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Support
Structure
183
Improvement support structure
 Purpose
Describes the design of a continuous improvement organization to support the VPS work. The objective is to have
coaches with relevant competences and make sure they can transfer the knowledge to the line organization during
coaching and training
Key activities
Structure / size
Short description
Ensures the size of the support
team is adequate given the size and
maturity level of the organization.
Key activities
Improvement
Cycle support
Capability
Ensures the VPS support
organization has the right
competence, is ahead in
knowledge, experience, coaching,
and teaching.
Short description
The VPS structure supports the
development of the higher
organization’s plans and activities,
and creates its own plans,
roadmaps and activities to ensure
engagement and actions by the
whole organization. The VPS
structure supports the
development of VPS competence
in the organization.
184
Structure / Size
Ensures the size of the support team is adequate given the size and maturity level of the organization. The size
of the improvement support organization is between 0,5 to 1% of the total amount of employees, depending
on the maturity level (performance and competence) and the level of commitment towards continuous
improvement.
More mature the work organization becomes in improvement work, less support funtion is required, as
everyone performs job roles 1,2,3 and 4 (see more in People Development > competence development >
Roles & responsibility)
Support
Support
Organization
185
Capability
Ensures the VPS support organization has the right competence, and where necessary competence gaps are
being filled. Provide specialist support integrated with both line organization and improvement support.
The knowledge and skills of the improvement support organization should continuously be transferred to the
work organization.
Skills
Development
Knowledge +
Skills +
Experience =
Competence
Support
Capability
Skills
Evaluation
(Skill Matrix)
Skills
Required
186
Improvement Cycle support
A properly sized and structured VPS Organization with the right capabilities, is in a good position to support
the overall organizational VPS efforts.
The support supplied by the VPS Organization is applied throughout the entire improvement cycle. It starts
with input to the assessment of current state, and extends all the way to the execution and follow up to the
strategic plan. This support is structured through the VPS Organizations own VPS plan.
Coach
Drive
Road map
Train
Improvement journey
187
Lean Tools
5S
Standards
GOD
Andon
PDCA
QRQC Jidoka
8D
5W OD
A3
FMEA
….
PQA APQP
5W2H
Kaizen
DMAIC 6 Sigma
1) Muri -> Safety & Ergonomy
2) Mura -> Yamazumi
3) Muda
Lean Champions (also 6 sigma Green to Black Belts …)
188
PEOPLE
DEVELOPMENT
People
Development
189
People Development Overview
Nothing can happen in an organization without people. For the VPS to succeed, the people within the system must have the
competence both to do the job and develop the job.
Through teamwork we develop individually as well as teams. Through working in teams, we can recognize and develop the
competencies necessary for success. Competencies must be developed to insure we are capable in both human and technical
areas.
We grow through the learning we capture both by doing the work and by improvement work along the way. Coaching, feedback
and recognition serves both as a check on the effectiveness and efficiency of the improvements, and serve as a source for new
energy and commitment.
Teamwork
Create a sound organization where we collaborate in teams, and all
employees are involved in improving and developing the company.
Competence Development
The competence of the people must be aligned to the needs of both the
organization and the VPS. This must be evaluated and developed
continuously. As individuals and teams we create a culture of "learning and
sharing”
Feedback & Recognition
Coaching, feedback and recognition grows excellent teams and individuals,
and is a natural source for renewed energy.
Knowledge Management
Enabling individuals and organizations to systematically create, capture and
reuse knowledge, to generate continuous improvements and learning.
Team Work
191
 Purpose
Teamwork
Creating a sound organization where we collaborate as one strong team. All employees are involved in improving
and developing the process, and we work together to achieve our goals and strategic objectives. This is where
everyone’s experience, knowledge and creativity are valued. Through teamwork we build the partnership, respect,
trust and collaboration. Cross ccollaboration within and between teams improves alignment and commitment, and
raises the level of energy and responsiveness. Through teamwork we learn from each other and grow.
Key activities
Goal oriented
teams
Living Process for
effective team
work
Short description
The purpose of the team is clear within
the organization, and what it is
responsible to deliver. Team goals and
measurements are created, with realistic
plans and activities from strategic and
tactical levels to operational level,
deployed also from teams to individual
team members. Visualization and follow
up is made of team goals,
measurements, plans and activities.
A clear purpose and target for the team.
Involving everyone in the team. Allocate
time, resources and budget to reach
expected results. The team regularly reflect
on progress, teamwork and leadership.
Key activities
Effective
collaboration
Team
development
Short description
Collaboration is characterized by respect
for the individual, fully utilizing our
diversity and acting with diplomacy in the
workflow.
Team maturity and capability is
monitored, and team development tools
and methods are used, to enhance team
performance and with an inclusiveness
mindset.
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Goal oriented teams
What is a goal oriented team and why is it important
A goal oriented team is typically a well defined functional team within a
unit, but it can also be a cross-functional team (fixed or temporary) that
has a clear assignment to work with. These teams can exist on all levels
of the unit.
A goal oriented team have a clear understanding of their common area of
responsibility, and there are clearly defined goals within their area.
Through a structured cascading process, their goals are consistently linked to the business
objectives
There is a stable, regular process to monitor and track the team’s performance, and the team
have a clearly stated responsibility and authority to drive improvements towards fulfilment
of their goals
To secure the team’s performance, needs and expectations are communicated and individual
contribution and development plans are agreed upon, including objectives and goals.
This way of organizing the work helps to generate alignment of goals and ownership of
performance at each level of the unit
A clear purpose and direction for the team, with monitoring and tracking of performance, leads to increased
ownership. This help ensuring necessary performance and provide prerequisites for improvement actions both longterm and short-term.
193
Living Process for effective team work
ENERGY KICK AT THE START
•The Co-worker seminar
•Leaders demonstrate
passion about their
personal intentions in their
area.
AWAKENING THE ENERGY
•Everyone understands and reacts on
the market situation
•Everyone connects the strategic
reasoning and focus to the own work.
•People “steps over the line”
THE INPUT/DIRECTION
•Strategic Focused areas
•Local translation
•Team goals and
measurements
THE INNER LIFE OF THE PROCESS
•Structured meetings conducted with respect and openness
•Communication, cooperation and collaboration is trained
•Every body’s ideas and opinions are acknowledged and
confirmed and put “on the table”.
•A critical mass of ideas and experiences begin to interact ,
creating a living process and moving the team forward
CHAOTIC AND PREDICTABLE
Unpredictable process with
predictable results.
Openness to the unexpected and
a sense of collaboration is needed!
THE OUTPUT
•New ideas and suggestions
•New actions on the action plan.
•Ideas are implemented and
problems are solved
•Results shows in measurements
•Increased productivity
•A sense of accomplishment,
development and better teamwork
THE FEEDBACK
•Reflection is made naturally
•A sense of “shared views” in the team
•Less waste of energy
•Personal recognition and satisfaction
•A winning and growing team
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Effective collaboration
What is Effective Collaboration and why is it important
Effective collaboration is characterized by respect for the
individual,
utilizing our diversity and acting with diplomacy in the workflow.
This creates the foundation to leverage the full potential in
people and
organization, to improve performance and create customer
value.
How can we develop an effective collaboration
There are many tools and activities that can be used for this.
This should be a natural ambition of every individual and team.
It can be initiated based on specific needs, or as part of a more
systematic and strategic approach covering a whole unit,
supported by local HR or VPS specialists.
Energy
Direction
WHY should we do anything?
WHAT shall we achieve?
Inner life
HOW are we going
to work together?
Output
What are our RESULTS?
Feedback
What did we LEARN ?
195
Team development
What is team development and why is it important
To be competitive and to utilize the full potential of the team, it is not enough
to have good ways of working, tools and workplace layout etc. You also
need to develop the working climate, cooperation and communication
in the team, as well as constructive attitudes and behaviours.
How can we develop the teams
There are many models and processes that can be used for this. This should be a
natural part of every team’s work. It can be initiated based on need in specific
teams and supported by the local HR organisation or VPS specialists. It can also be
part of a more strategic and unit wide approach.
196
Competence
Development
197
Competence Development
 Purpose
The competence of the people must be aligned to the needs of both the organization and the VPS. This must be
evaluated and developed continuously. As individuals and teams we create a culture of "learning and sharing”.
Key activities
Roles &
responsibility
Competence
evaluation
Short description
Roles are clear for the Individuals in the
organization, with clear responsibilities
for each role, including leadership
responsibilities.
Competence is evaluated and
development is planned and supported,
by competence/skills matrix and the
Personal Business Plan (PBP) process.
Key activities
Competence
resource
flexibility
Ability and
responsibility
to develop
Short description
Competence development and flexibility
s supported and encouraged by different
levels and means of job rotation.
Competence is built both by Off the joband On the job training. Every individual
takes responsibility to develop
competence and performance in “Job 1,
2, 3, and 4” (perform my job, to develop
my job, to develop myself, and to
develop my team).
198
Roles & responsibility
 Leadership responsibilities
 Individual roles in the organization
People development – the ability to foster
the long term development of others
Every individuals has 4 major job roles, doing
operational work, developing work, developing myself
and developing my team
 contribute to learning and development in
day-to-day work
“Role 3 and 4”
 on daily basis, provide positive or mixed
“Role 2”
feedback for the purpose of enhancing
Improvement work
development
Improvement
Improved
 give negative feedback in behavioural rather
opportunity
operational work
than personal terms
 develop skills and foster learning by
“Role 1”
demanding targets or assignments that
Operational work
reinforce learning
“Role 3 and 4”
 grant increasing responsibility with the aim of
developing and stretching people
As individuals, we all have 4 major job roles !
 have faith in people; communicate a belief in
1) To do my operational work
people’s ability to achieve genuine personal
2) To develop/improve the work
growth
3) To develop/improve myself
199
4) To develop my team
Competence evaluation
 Define elements of competence development
General competence
General for the BA/BU
• Volvo leadership competencies
• Contionous improvement
competencies & leadership
Work specific competence
Individual competence
Work competence specific for
different professional categories
Instructions that describe best
practice connected to work areas
as a support for flexible manning
Continuous improvements
Personal development
Personal Business objectives
Personal development objectives
Competence / Skill matrix
• Make competence requirements transparent
• Base for competence development
• Visualizes competence gaps
• Base for succession planning
• Structure for job rotation
• Flexibility to handle absence etc
200
Competence resource flexibility
 Purpose of Job rotation
• A way to educate and gain an increased knowledge within new areas as well as an extended
business perspective .
• Secure stability by backup when people´s absence.
• More people knowing each task increases the potential to find new ideas for improvements.
• Support to fulfill skills matrices.
• Increased flexibility.
• Keeps standardized work alive, through constant reviewing of the standards
• Gives variation, especially important in highly repetitive work
 Different levels of job rotation
Basic –
Rotation within the team
Fairly advanced –
Rotation with other teams
Highly advanced –
Rotation between processes
201
Ability and responsibility to develop (1/2)
Responsibilities
for development
Drive
development
Opportunities for
development
•
•
•
•
training courses
off-the-job training
on-the-job training
coaching and feedback
•
•
share knowledge/experience
build continuous improvement
culture
Performance of Job 1, 2, 3, 4
•Take actions to solve and •
prevent problems
•Engagement in tactical
improvements
•Take initiative and responsibility
for personal development
202
Ability and responsibility to develop (2/2)
”Learning by doing”
Learning by doing builds on how we learn more by
doing, than by only seeing or hearing.
Learning by doing means encouraging people to test
and experience new things, and expose ourselves to
opportunities to learn and develop new competence
and skills. This can be operational tasks outside our
ordinary and daily job, but it could also mean being
engaged in improvement work & teams.
Action-reflection-learning is a useful principle where
first you do, then you reflect on what and how you
did it, to be able to learn from this.
A mindset that supports this, is that we have 4 jobs;
Job 1 is to do the job we have. Job 2 is to develop our
job and the processes we work in, job 3 is to develop
ourselves, and finally job 4 is to develop my team.
Edgar Dale’s research tells us that the way material is learned determines how
much of that material is retained. The percentages shown in the “Cone of learning”
model indicate how much material is retained after two weeks.
“Tell me and I forget. Teach me and I remember. Involve me and I learn.”
Benjamin Franklin (1706-1790)
203
Feedback &
Recognition
204
Feedback & Recognition
Purpose
Coaching, feedback and recognition grows excellent teams and individuals, and is a
natural source for renewed motivational energy.
Key activities
Coaching
Feedback
Short description
There is a coaching and mentoring
process, and coaching can be made both
on individual and team basis. By coaching
and working in complete cycles, maturity,
confidence of people and teams increase
and new energy is made available.
Feedback is a powerful process to
develop people, and is supported by
systematic reflection and Actionreflection-learning principle. This creates
a positive environment where
performance and experiences, together
with more transparency, always provides
opportunities to develop further.
Key activities
Recognition
Short description
Recognition makes individuals and teams
grow, and strengthen empowerment and
commitment.
Both formal recognition (awards, prizes,
official recognition in public, etc) and
informal recognition (positive and
encouraging comments and other means
to visualize and high-light achievements)
is used, to create a positive spiral of
motivation, energy and new
improvement ideas.
205
Coaching
What is coaching and why is it important
Coaching is an interactive process that helps individuals, teams and organizations to develop more
rapidly and increase performance. It can be used for developing both hard/objective aspects (skills,
know-how, ways of working) and soft/subjective aspects (thinking, attitudes, values and culture).
Coaching makes leadership and teamwork visible, and as a result, clients set better goals, take
more action, make better decisions and act more mature, fully using their natural strengths.
Mentoring is a powerful concept, but as coaching builds on your experience and what you can learn
from it, the mentor shares his/her experience for you to learn from. Both coaching and mentoring are
vital parts of our leader-, team- and people development, towards a continuously improving and learning
organization.
How can we develop and enhance coaching
Coaching is both a mindset and a technique. Besides skills in coaching tools and techniques, a coaching attitude
means actively listening and asking questions, to help the other part gain insight and clarify own thinking. It also
means challenging in a positive and respectful way, and adopting an attitude that you have trust in the other
part to develop and grow. This will help the other part taking ownership of his/her actions and development.
Energy
Direction
WHY should we do anything?
WHAT shall we achiev e?
Inner life
HOW are we going
to work together?
Output
What are our RESULTS?
Feedback
What did we LEARN ?
206
Feedback
What is feedback and why is it important
Feedback is a powerful process to develop people and teams. All of us need honest,
positive and constructive feedback. This enables us to take responsibility and commit to
meeting high expectations. This creates a positive environment where performance and
experiences provides opportunities for reflection and to develop further
How can we develop and enhance feedback
Leaders regularly provide feedback that is specific, timely and actionable. This clarifies expectations and
reinforces behavior leading to improvements. It is the actions and behavior of the individual that you observe
and give feedback on, not the individual. Leaders also set an example by asking for feedback from customers,
colleagues & employees.
Feedback always starts with concrete and positive observations (”entrance ticket”). Feedback should be
provided regularly, in balanced amounts and with good timing. It needs to be well prepared and concrete so
that the person or team receiving it can do something with it.
We can all contribute to the improvement efforts of our colleagues. By giving positive feedback and
encouraging each other, we strengthen the willingness to act and learn.
207
Recognition
What is Recognition and why is it important
We want to make a difference, and feel that our work matters. Recognition means we
acknowledge all teams and individuals for accomplishments, initiatives and contributions
to our team, company and customers. We also acknowledge wanted & needed behavior.
Recognition creates energy and drives good behavior. It builds a positive work climate and
grows a strong VPS culture, with increased productivity and engagement. It makes us feel as a part
of a winning team.
How can we develop and enhance recognition
Recognition is made in many forms. It can be formal recognition (awards, prizes and official
recognition in public), or informal recognition (positive and encouraging comments, and other
means to visualize and high-light achievements) by managers and peers in our daily work. As leaders
and colleagues, we seek and grasp opportunities for recognition.
208
Knowledge
Management
209
Knowledge Management
 Purpose
Knowledge is the most important asset in people to sustain a competitive advantage. Leaders shall promote the
knowledge transfer to all levels in the organization. Knowledge management enables individuals and organizations
to systematically create, capture, share and reuse knowledge, to generate continuous improvements and learning.
Key activities
Short Description
Create
knowledge
Requires the use of systematic
methods and an inspiring
environment to innovation, as well
as management promoting the
knowledge creation.
Capture and
share
knowledge
Assure that knowledge is described,
captured, stored and shared in a
systematic way. There are structures,
tools and standards to make sharing
and communication easier.
Key activities
Reuse
Knowledge
Short Description
Ensure knowledge is expanded
and reused within own, or other,
processes and functions, to
improve decision making and ways
of working.
210
Knowledge Management
 Knowledge Management Fundamentals
To succeed in knowledge management it is crucial to consider and include all 4 of the
fundamentals below !
1. People/Roles: Accountability for knowledge creation,
capture and reuse must be clearly defined in role
descriptions and necessary competences secured
People
Governance
Process
2. Processes: Knowledge creation, capture and
reuse should be a minimum requirement and common
way of working in relevant processes
3. Technology: Enabling technology and systems
that facilitates knowledge to be captured and accessed
wherever and whenever needed
Technology
4. Governance: Clearly defined ownership and a
governance structure that secures and promotes capture and
re-use of knowledge
211
Creating knowledge
Creating knowledge requires the use of systematic methods and an inspiring innovative
environment, utilizing existing learning opportunities and seeking new knowledge based on future
needs.
People should know about their role and importance in creating knowledge and have competence
to do it.
Processes should include knowledge creation as a natural part and a common way of working.
This should be supported by standard tools and methods, such as templates, benchmarking, with a
PDCA mindset to become more proactive.
Technology and systems should support assessment and analysis of existing and future knowledge
needed, and make it easy for anyone to create new knowledge.
Governance means there is a clear ownership and governance structure for securing knowledge in
all work areas.
People
DVP
MAS
PRD
DCL
Processes
Product
212
Capturing Knowledge
Capturing knowledge means assuring that knowledge is described, captured, stored and shared in a
systematic way. There are structures, tools and standards to make sharing and communication
easier.
People should know about how to capture knowledge and new learning, in a way so others
can find and access it.
Processes should support that knowledge is being captured in a systematic way. This is
supported by standard tools and methods, such as standardized templates, A3’s, white-books,
as well as evaluations and reflection made by users and process receivers (customers when
possible).
Technology and systems should support that knowledge is easily captured and sharing.
Governance means there is a clear ownership and governance structure for capturing knowledge in
all work areas.
Knowledge Community
213
Reusing Knowledge
Reusing knowledge means ensuring knowledge is expanded and reused within own, or other, processes and
functions, to improve
decision making, ways of working and overall organizational capability.
People should have knowledge and mindset take advantage of existing knowledge, and be open to explore and
leverage knowledge
made by others.
Processes should facilitate reuse of available knowledge as a natural part and a common way of working. This is
supported by standard tools and methods, and always be reflected on, in new assignments, projects or improvement
activities.
Technology and systems should support that knowledge is available and easily accessed, to make it easy for anyone
to reuse and
apply in own or other work areas.
Governance means there is a clear ownership and governance structure, to leverage and promote reuse of
knowledge in all relevant work areas.
More capable
people
DVP
MAS
PRD
DCL
Improved processes
Better Products
214
Lean Tools
TeamWork (Elementary Production Units)
Competence / Skill Matrix
Coaching
Standards
215
216
Management
Commitment
Performance
Management
People
Development
Improvement
Structure
Lean Practices
E2E Alignment
Continuous
Improvement
Leadership
Data & facts
management
Team work
Standardization
Just in time
Integration
Living Process
Meeting
structure &
Escalation
process
Competence
development
Problem solving
Built in Quality
Cross
Functional
Work
Target image &
Strategy
Deployment
Prioritization
Feedback &
recognition
Improvement
methods
Communication
Visual
Management
Knowledge
Management
Support structure
217