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People
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Lean
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Process Innovations
Russ Scaffede
October 2009
Leadership
Roadmap
Objectives
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A Little History Leading to My Being Here Today
Mass Production VS. Toyota Production System
Tiara Yachts Lean Development
Integration of a Total Lean System
Observations and What I Have Found Has Failed
Closing and Questions
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The Past
• 20 years at General Motors and 5 years at
Toyota Motor Manufacturing
• Henry Ford’s Mass Production System
– Henry Ford developed a Mass Production System,
the World Followed
– It is Important to keep in Perspective the Great
Success the Ford System Makes
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Early 1900s
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But, by the 1970s and 1980s until today!!
• Toyota Introduced Us To The “Toyota Production
System”
– Material is looked at from Just In Time Processes
– Quality and Cost are controlled by Build In Station
– Sequential level production synchronizes the system
– Machine PM replaces repair after breakdowns
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But, by the 1970s and 1980s until today!!
• The System is Uniform and Consistent Plant
to Plant
• All Employees are Challenged to Participate
in Reducing Cost
• All Toyota Staff from Chairman to the Line
Workers Understand the System
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But, by the 1970s and 1980s until today!!
• Almost Every Company Has Some Form Of
Lean/Continuous Improvement Initiative
– Fewer than 5% of companies are achieving long term
success like Toyota
WHY?
– I believe it is the failure of executives to understand
lean as a company enterprise system
– I believe in most companies Scanlon Principles are
the key Missing Link
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TRADITIONAL MASS PRODUCTION
(FORD MASS PRODUCTION 1910’s)
VS.
Lean Production
(Toyota Lean Production 1950’s)
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Traditional
Mass Production
Safety
Quality
Cost by Maximum Run
Cost Quality Safety Morale
Inspect
and repair
Productivity
Labor
Continuous
Run
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Classifications
of Support
Float for
Breakdown
All Materials
Necessary to
Run Any
Schedule
Daily Schedule Run by Production Without Plant-wide
Communicated Sequence (Prepared Ground Work)
Labor Efficiency
Measurable
Large I.E. / Mfg..
Engineering
Largest Possible
Batch Run
Skilled Trade
Response to
Work Orders
Maximize Equipment Run Time (Repair only after break down)
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The History of Lean is NOT from Japan
• “Ford Today and Tomorrow”
–Toyota Trained Under Ford’s Leadership
• Training Within Industry
–Job Methods (Standardized Work)
–Job Instructions (Job Instruction)
–Job Relations
–Union Job Relations
•
Deming’s Leadership in Statistical Process
Control
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Training Within Industry Materials
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Successful Implementation
Must be a Systematic Process
“One of my concerns after reading
several books on the Toyota Production
System is that, while such books do
outline principles and techniques with
detailed explanation, their treatment of
the subject is specific and anecdotal
rather than systematic.”
Source: Shigeo Shingo, A Study of the Toyota Production System From an
Industrial Engineering Viewpoint, Cambridge, MA. Productivity Press, 1989
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My Vision
of TPS
Productivity
Cost
Quality
SafetyCost
Morale
T/M
Morale
Quality
Safety
Standards Aimed at Continuous
Improvement
Just-In-Time
In-Station
Process
Control
Standardized
Work
Continuous
Improvement
Teams
Job
Rotation
Andon Boards
Suggestion
System
Visual Factory
and 5S
Total
Productive
Maintenance
Batch of One
Capability
Solid
Level Production
Solid
Support
(Formulas, Policies)
Support
Equipment Reliability
(Rock)
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Definition of
LEAN MANUFACTURING SYSTEM
The setting of STANDARDS aimed
at continuous improvement by ALL
team members through the constant
elimination of waste.
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“Standards” from Webster
“Something used as a rule or
‘BASIS OF COMPARISON’
to evaluate quality, quantity, value,
etc..”
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These philosophies and tools provide for two major
focuses of improvement and waste reduction:
1) Aimed at material/value stream change control.
(JIT, Level Scheduling, Hijunka Boards and Kanban Cards)
2) Aimed at total team participation through
individual/team control of quality and machines.
(ISPC, Equipment TPM, Standard Work, Participation, Job
Inst. Training.)
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A Key Tool Allowing
Focus From The Entire Team
Both are guided by cascading the annual
planning process of goal setting aimed at waste
reduction and total team participation enhancing
the individual team members self satisfaction
and company identity.
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Integration of Scanlon and Lean
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Toyota Is 50 Times More Scanlonized
Than We Have Ever Thought Of Being
And They Have Never Heard The Term !
Joanne DuQuette, VP of Human Resources,
speaking to the Donnelly executive team
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You Do Not Want To Be Toyota, Just Achieve
Toyota Results
• Processing of product is the same for Mass and Lean companies
• Equipment purchased is the same for Mass and Lean companies
• People hired are the same for Mass and Lean
– What Makes The Difference
An absolute belief that everyone wants to win
The engagement of ALL the People
An absolute commitment of constant Process Improvement
Achieving Lean Manufacturing Leadership
Advanced
Product
Planning
T
P
S
Customer
Financial
TPS
Sales
Tooling
Engineering
Corporate
Management
Team
TPS
Manufacturing
TPS
Customer
At lowest possible cost
Customer
T
P
S
Advances
Process
R&D
Product Launch
Cycle
(Updated Improved Standards)
Life Cycle
Of Product
(Continuous Improvement)
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What Makes a Winning Organization?
We believe that within every person is
a deep-seated desire to realize his or
her full potential through growth and
development to make a difference and
to be part of a winning team.
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“Brilliant process management is our
strategy.
We get brilliant results from
average
people
managing
brilliant
processes. We observe that our competitors
often get average (or worse) results from
brilliant people managing broken processes.”
Mr. Cho
Vice Chairman of Toyota
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How Are We Doing With People Systems?
Broad Research Has Shown Only About 25% Of Workers:
• Are fully engaged in their work
• Are enthusiastic about team and organization goals
• Feel they are fully enabled to execute their goals
• Have a clear line of sight between their work and their teams
organizational goals
• Work in an open trust-filled environment
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Total Employee
Involvement
Lean
Manufacturing
System
Total Employee
Involvement
Scanlon Principle
• Identity
• Competency
• Participation
• Equity
OR
Lean Manufacturing System
Level
Production
Just-In-Time
Visual Delivery System
Machine
Reliability
Preventative Maintenance
Stop the
Line
Traffic Light System
Mistake Proofing
In-Station-Process-Control
Total Productive Maintenance
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Identity
Purpose:
Exceed Customer expectations by eliminating waste through a
process of continuous improvement where people and teams
including suppliers and customers are engaged in the process
together and constantly striving for perfection. Do we believe that the
process of becoming lean is permeating every part of our business
and requiring a relentless pursuit to eliminate waste as a core value
Business Reality:
Waste exists in all parts of the business. If we understand
“COST = SALES PRICE – PROFIT” and cost is the only
controllable. Then are we understanding lean principles as
the enabler for a “WAR ON WASTE”.
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Identity
Right Job:
Have we developed a vision of our long-term lean system?
Have we developed an implementation plan and dedicated the resources
to accomplish the task?
Have we developed a cascading annual planning system and supportive
review to align the organization for improvement?
Job Right:
Progress of continuous improvement can only be measured against results.
Have we identified the right matrix (safety, quality, cost, productivity,
delivery and morale)?
Is the entire organization aligned with our lean principles and values?
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Participation
Understand that becoming lean is a process that
is done “With” people and “Not To” people. A total
commitment to mutual trust and teams is an
absolute essential part of the lean journey. Do we
see lean principles as the main enable to
accomplish meaningful, inspiring participation?
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Participation
“Two reasons appear then for looking toward the
fuller involvement of people in their work. We
need their help in reaching for market leadership,
and the people are entitled to the consideration
that recognizes their ability to help. This process
of involvement is what we call participation.”
- John F. Donnelly, 1967
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Competence
Develop leaders who understand and live the
lean enterprise philosophies.
Are we developing a process for continuous
learning by refining personal and organizational
understanding of the lean tools and applications
of these tools through supportive review.
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Equity
Recognize, with lean, we need to achieve a fair
and balanced return for all the stakeholders.
Work closely with suppliers to eliminate waste in
the total value stream and treat suppliers with
respect as long term partners.
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What I Have Found Will Fail
• The executive leadership team not developing their
lean system
– Develop your house and megaphone for the team to
understand
• Functional departments leaders and team not
understanding the lean enterprise and setting
policies and methods to allow success
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What I Have Found Will Fail
• Hire Outside Consultants Without Your Lean
Vision
- Your team wants to please you and your company,
not outsiders.
• Kaizen the Team Lean
• Installing Kanban or Other Tools and State We
Are Lean
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Toyota:
The Benchmark for World Manufacturing
“The Toyota Production System is a
production system, and a kanban
method is merely a means for
controlling the system.”
- Shigeo Shingo
Source: Shigeo Shingo. A study of the Toyota Production System From an Industrial Engineering Viewpoint.
Cambridge, MA. Productivity Press, 1989
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What I Have Found Will Fail
• Attempt Empowering Employees Without the
Lean Tools
• Assume Management Will Install Lean as You
Teach Them Without Resources
• Part-Time Won’t Cut It
• And the Worst One Is: Do Nothing at All
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Closing Thoughts
Lean without Scanlon
Scanlon without Lean
Little Improvement
Limited Improvement
Scanlon with integrated Lean = Perpetual Success
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There is a Roadmap
“The Leadership Roadmap Book”
Purchase on Amazon.com or Barnes and Noble.com
Contact us at info@leanprocess.com
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Thank You For Your Time
Questions and Discussion
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