Welcome to
“Sustaining Lean”
Using the
Lean “Tools” is
the Easy Part!
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How are We doing with Our Lean
Implementations?
Little or
No Progress
2%
74%
Achieved
World Class
Status
24%
Significant
Progress
Reference: Industry Week Magazine, 2007
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How are We doing with Our Lean
Implementations?
Manufacturing & Technology News
September 30, 2011 edition reported:
 70% of reporting organizations reported a
< 5% improvement in manufacturing costs
as a result of Lean
 60% of respondents said their previous
Lean improvements were not sustainable
 Only 17% of respondents reported
seeking long-term culture change in their
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organization
How are We doing with Our Lean
Implementations? (cont’d)
Article conclusions:
 Most companies are getting a poor return
on their investment in Lean and Six Sigma
 Companies are far too focused on
implementing Lean tools and processes
rather than on basic execution
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Issues to Sustaining Lean
While often there is a spurt in activities and
improvements early in the Lean
implementation, this slows down and stalls
when the organization begins to realize that:
• Lean is not a "magic pill" or "silver bullet" for
the organization's problems
• A Lean implementation requires difficult and
company-wide change, especially for top
management.
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Issues to Sustaining Lean
• Not everyone thinks Lean applies to them
(i.e., sales, engineering, IT, accounting,
human resources, and other key areas).
• Quick bottom line results do not appear,
giving rise to questions about a payback
from the investment in Lean.
• Top management support for the change
necessary to implement Lean is limited or
missing.
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Four Components of Lean
© 1998 - 2011 WCM Associates
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Four Components of Lean
© 1998 - 2011 WCM Associates
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Four Components of Lean
Four Components of Lean
Policy Deployment – Mission and
Behavioral Expectations
Developing the Boundaries
for a Lean Culture!
Remember, the Lean journey
is 80% about people.
© 2007-2012 WCM Associates
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Behavioral Expectation Examples
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Your HR Policies – What Kind of
Company Leaders & Associates do
You Say You Want?
What?
Unacceptable
Acceptable
Performance
© 2007-2011 WCM Associates
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Your HR Policies – What Kind of
Company Leaders & Associates do
You Say You Want? (cont’d)
Culture
How?
What?
Performance
Developing the Boundaries for a
Positive Culture with
Behavioral Expectations
Stop here if the
organization’s Leadership
Team is unwilling to model
these expectations!
© 2007-2011 WCM Associates
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Four Components of Lean
What is Organizational Culture?
Culture is:
• A set of rules and standards shared by
members of an organization which produces
behavior that falls within a range the
organization considers proper and
acceptable.
• A learned process
• Developed by the organization as a
response to the working environment
established by the organization’s Leadership
Team
What is Organizational Culture?
A culture is established in all organizations
regardless of whether its development is
guided or unguided.
Culture can have a positive or negative
impact on the organization’s performance.
How do You Establish a Lean
Culture?
A Lean culture is established in two
parts:
• Part 1 – Developing a cultural framework
or structure (this can be done quickly)
• Part 2 – Establishing a “people and team
based” environment and filling in the
framework (this generally takes years)
Developing a Cultural Framework
Part 1 – The Lean cultural framework is
developed and sets the boundaries
for a positive culture by:
1)
2)
3)
Establishing “Behavioral Expectations” for
the entire organization
Linking HR policies and procedures to the
Behavioral Expectations and the Lean
vision and implementation
Establishing organizational leadership
and management principles
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Part 1 Step 2 - HR Policies – Aligning
People Measures with the Culture &
Lean Implementation Vision

Job Descriptions
Performance Evaluations
Promotions
Reward Systems
Bonus Systems
Recruiting

New Associate Orientation





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Part 1 Step 3 –
Developing the Framework for a
Positive Culture – Leadership
Principles
How Do We Begin
Implementing Culture
Change in Our Company?
All Successful and
Sustainable Business Change
Starts with Top Management
Top Management Must Remember:
When problems in an organization occur
(i.e. safety, scrap, poor quality, low
productivity, etc.), 98% of them are a result
of the organization’s systems – not people.
Top management must always take
responsibility for these problems since
management is responsible for the
organization’s systems.
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“You will achieve the level of
5S that you demonstrate you
want to achieve.”
© 1998 - 2012 WCM Associates
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Developing the People & Team
Based Part of the Culture
Using the established leadership and
management principles, this people &
team based environment is developed
through:
Communication
 Empowerment
 Teamwork

© 1998 - 2012 WCM Associates
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© 1998 - 2012 WCM Associates
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© 1998 - 2012 WCM Associates
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Communication Supports
Teamwork Development
1)
2)
3)
4)
High levels of 2-way communication
Team members with diverse
backgrounds
Common purpose/motivated by
mission
Common goals/measurements
© 1998 - 2012 WCM Associates
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Communication Goals (via both
verbal & visual communication)
1)
2)
3)
4)
5)
Eliminate company rumors & gossip
Establish the mission/vision
Support the development of culture
and empowerment
Establish organization’s goals and the
group/individual responsibilities in
achieving
Display company operational and goal
status
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Empowering Environment
 Associates
are recognized as the most
valuable resource
 Teamwork
 Decision making is delegated
 Openness, initiative, and risk taking are
promoted
 Accountability, credit, responsibility and
ownership are shared
© 1998 - 2012 WCM Associates
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Empowerment Barriers
 Lack
of trust
 Poor communication - can lead to lack of
clear expectations, lack of trust, fear
 Fear - people fear the unknown and
therefore resist change
 Lack of training - inadequate training
leads to confusion, frustration, and anger
 Lack of measurements - align systems to
vision
© 1998 - 2012 WCM Associates
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Requirements for Teamwork to
Occur in Any Organization
1)
2)
3)
4)
High levels of 2-way communication
Team members with diverse
backgrounds
Common purpose/motivated by
mission
Common goals/measurements
© 1998 - 2012 WCM Associates
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Biggest Barriers to Teamwork in
Organizations
1)
2)
The visible and invisible walls created
by departmentalization (silos)
Lack of “systems thinking”
© 1998 - 2012 WCM Associates
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Thank You!
Questions
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Lean Cultural Elements Checklist
Part 1 – Can be done quickly
 Establish “Behavioral Expectations” for
the entire organization
 Link HR policies and procedures to the
Lean vision and implementation
 Establish organizational leadership
and management principles
 Start Communicating
© 1998 - 2012 WCM Associates
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Lean Cultural Elements Checklist
Part 2 – Can take years
 Complete communication system
 Empowerment
 Teamwork
© 1998 - 2012 WCM Associates
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Contact Information:
Larry Rubrich
WCM Associates LLC
www.wcmfg.com
260-637-8064
Email: rubrich@wcmfg.com
© 1998 - 2012 WCM Associates
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