Lean Leadership Supersession
Video
Session Overview
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Lean Leadership overview
Case Study Stories
Q&A with Panel
Wrap up and Key Take-Aways
Lean Leadership Audience Participation
• Where is your companies status for Lean /
Continuous Improvement?
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Limited examples
Good examples in some areas/functions
Formal structure in place
Imbedded in the culture throughout the
organization
Lean Leadership Audience Participation
• Where are YOU at on your Lean /
Continuous Improvement Journey?
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Not Started
Beginning
Been on my journey 1-2 years
3-5 years and teaching
6+ years, teaching and mentoring
Lean Leader – The Story
Rp4 R
HOW
WHY
Lean Leadership Audience Participation
• What IS NOT one of “what” elements for
Lean Leadership
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Respect
Purpose
People
Process
Programs
Results
SCLA Lean Leadership Case Studies
International Paper Examples
Non-Conforming Product (NCP)
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A business unit had experienced very high levels of nonconforming product (NCP) consistently for years. Manufacture of
NCP was negatively impacting product manufacturing costs,
supply chain costs, and customer reliability.
$4MM Savings realized via 41% reduction in NCP generation and
18% reduction in NCP inventory.
Supply
Chain
Benefits
Financial
• Reduced NCP Transportation Costs
• Reduce NCP Inventory/Working Capital
• Reduced Aged Product Losses
Benefits
Intangible
Benefits
• More Reliable to Customers
• Additional Capacity
Lean Leadership Learnings
• Lean Operating Principles
– Build Effective Teams with Cross-functional Representation
– Develop Necessary Measurement Systems and Provide Visibility
to Key Metrics
– Ensure Alignment Around Key Metrics
– Experiment and Solve Problems at a Root Cause
– Sustain Results
• Lean Leadership Focus and Behaviors
– New Business Unit Leadership Set a Vision and Challenged the
Organization with a Huge Step Change Improvement Expectation
• No Longer the “Elephant in the Room”
• Overcome Past History/Stigma
• Treat Problems as Treasures
Partial Balances
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Partial Balance is less than a vehicle quantity in jeopardy of missing
the customer expected delivery date.
Partial Balances not shipped caused missed customer delivery
commitments driving heroic fire fighting.
A Kaizen event was conducted to identify opportunities to improve
the process.
A new process was developed to identify, track, and manage
execution of partial balance shipments.
– The new process was not successfully implemented.
– Key stakeholders did not accept the changes.
Lean Leadership Learnings
• Lean Operating Principles
– Stakeholder Analysis is Vital to Project Success
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Project Success = Quality of the Solution x Stakeholder Acceptance
Engage Early, Don’t Over-look Middle Managers
– Maintain the Discipline of Good Kaizen Event Design.
• Don’t Accept Key Stakeholders Not Attending
• Don’t Shorten Event Timing as Process will be Jeopardized
• Report-outs are Designed for Discussion, Understanding, and Acceptance.
Silence is NOT Good!
• Lean Leadership Focus and Behaviors
– Reflect and Learn From Every Project, Even the Unsuccessful Ones
– Change the Mindset
• Empower Problem Solving vs Rewarding Hero Firefighting
Lean Leadership Audience Participation
• International Paper reduced nonconforming product by what percent?
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11%
22%
35%
41%
57%
KC Damage Reduction
Distribution Damage rate of 3.2 cases for every 10,000 handled
What Problem were we trying to solve?
• Network Damage Rate Stagnate
• No Continuous Improvement Focus
• At site level, Results not Predictable
What was our approach?
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3 Year Vision
Process Owner
Annual Strategy Deployment (A3)
Connect to Monthly/Weekly/Daily
Developed team on:
• Standard Work
• Visual Mgmt
• Leader Standard Work
• Simple Problem Solving
Recognized Progress
Offered/Provided Support
Got out of the way!
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0.8
0.6
0.4
0.2
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Damage Rate
2011 to Current
Lean Leadership Learnings
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Small Batch more Frequent
• Monthly, Weekly, Daily
• Easier to check and problem
solve
Standard Work
• Alignment on best way
• Process to improve against
• Clarity
Connected Checking
• People focus on what you check
• Respect for team = Engagement
Discipline
• Discipline
• Discipline
• Discipline
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Align on Vision
• Set Challenges
Visual Management
• Must drive action
• Daily Problem Solving
Pace of Change
• Success breeds Success
• Know when to get out of way
• Support failure
Transition from Outcome to Process
• Know why you’re successful
• Predictability
• If I do X, I get Y every time
KC Order Fulfillment FTQ
FTQ is the processing of a sales order from order creation to receiving payment with no
rework or excessive wait time
What Problem were we trying to solve?
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FTQ was 5%
Teams were working excessive hours
Lack of focus on Strategic Initiatives
What was our approach?
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Strategy Deployment Session
• Set target of 95% for 2015
Went to the Gemba
Cross functional problem solving
Developed process to sustain
• Daily Standard Work
• Metrics
• Escalation processes
• Leader Standard Work
Lean Leadership Learnings
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Go to the Gemba
• Ask the people doing the
work
• Listen and support the
problem solving
Experiment
• Start small and learn from
your results
• New improvements reveal
new problems
Metrics are key
• Provides the visibility on
where to improve
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Align on Vision and Strategy
Deployment
• Be Consistent year after year
• Focus team on shorter term
challenges
Change the mindset of our teams
• Ask the WHY questions
• Drive the FTQ thinking
beyond orders
• Everyone does problem
solving
Management Systems is Critical
• Drives Sustainability &
Continuous Improvement
Lean Leadership Audience Participation
• Kimberly-Clark improved order fulfillment
First Time Quality to XX% in 2013?
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21%
31%
41%
51%
61%
LEAN LEADERSHIP DNA
Lean Leadership
Q&A Panel
Lean Leadership Audience Participation
• Where is YOUR Lean Leader Maturity?
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Unaware
Aware
Doer
Coach
Mentor
Developing Your Lean Leadership IQ
• Lean Culture – Leading & Building
• Lean in Action – Tangible Results
• Getting to Go – Assessing Maturity
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