Building and Sustaining a
Lean Culture:
The Quality People Value
Stream
Mike Hoseus
Author, President, Lean Culture Enterprises
mike.hoseus@gmail.com or 859-699-2235
Three Levels of Culture
What we see, what a newcomer, visitor or
Artifacts &
Behavior
consultant would notice (e.g., dress,
organization charts, physical layout, degree and
formality, logos, and mission statement.
Norms &
Values
What they say, What we would be
told is the reason things are the way they
are and should be. Company philosophy,
norms and justifications.
.
Underlying Assumptions
What they deeply believe in &
act on Unconscious, taken for granted
beliefs about the organization and its
work/purpose, about people, rewards etc.
Based on Edgar Schein, “Coming to a new awareness of organizational culture,” pp. 375-390 in J.B. Lau and A.B.
Shani, Behavior in Organizations, Irwin, 1988
Big horizontal business processes
Value & Work Flows Across Functions
Sales
Marketing Supply
Human Finance
R&D
Chain Resources
IT
Growing the Business
Fulfilling Customer Orders
Growing and Developing People, Leaders
Suppliers
Customers
Most important problems are cross-functional
Which one describes your
Company?
Vertical
•
•
•
•
Focus - Production
Budgets, SOP’s
Make the numbers
Leaders separated from the
work
• People’s ingenuity used to
“beat the system”
• Supervisors “manage”
people
Horizontal
•
•
•
•
•
Focus - Process
Purpose
Make problems visible
Leaders focusing on the work
People’s ingenuity used to
“improve the system”
• Supervisors work with the
people to solve problems
Company Goals
Employee Goals
Profit
Long Term
Success
Contribute to
Economy
A Paycheck
Growth
Long Term
Mutual
Prosperity
Contribute to
Society
Good Benefits
A Safe
Workplace
Meaningful
Work
Good Quality
Mutual Trust
A Partnership between an Organization & its
Employees
Organization provides Stable Employment &
Sustains or Improves Working Conditions
Organizational
Prosperity is
achieved
through
Continuous
Improvement
Respect
Partnership
Mutual Trust
Continuous
Improvement
Employees
Satisfaction is
experienced
through the
Continuous
Improvement
Process
Employees Contribute Efforts to Realize
Company Objectives
Make problems & opportunities
for kaizen visible.
Safety
Quality
Productivity
Cost
HR
Standardized
StandardizedWork,
Work,5-S
5-S
Visual Control (Andon, Line-stop, Visual Management)
PDCA
Visual Control (Andon, Line-stop, Visual Management)
Standardized Work, 5-S
Problem Solving (Daily Activities, QC Circle, Suggestions)
The Toyota Way
THE TOYOTA WAY
Respect
for People
Continuous
Improvement
Teamwork
Respect
by concentrating knowledge
of each & every employee
for the benefit of all
customers & stakeholders
Challenge
we strive to realize
ambitious goals
Genchi
Genbutsu
through steady, fact- driven
progress
Kaizen
Values
Toyota Basic Business Practices
pursuing highest standards of
excellence guided by best
possiblePractices
course of action
It Starts with Values
Toyota
Way
Values
Beliefs
TBP
8 Steps
Thoughts
Actions
Habits
Character
Culture
Goals for
the
company
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Servant Leadership
Leadership develops the capacity that allows team
members to improve what needs to be done
Suppliers --------Team Members---------Customers
Team Leaders
Group Leaders
Asst Manager and Manager
Asst & General Manager
Vice President
President
LEAN CULTURE OVERVIEW MODEL
ORGANIZATIONAL
STRUCTURE &
SYSTEMS
Human
Resources
ATTRACT
DEVELOP
ENGAGE
INPUTS
Assessment
ORGANIZATIONAL
LEADERSHIP &
ENVIRONMENT
Quality
People
ENROLL
OUTPUTS
Quality
Organizations
THE OBJECTIVES OF
STANDARDIZATION
•
•
•
•
•
•
•
•
•
•
•
•
Reduce variability, increase predictability
Enhance repeatability, confidence, consistency
Clarify procedures
Enhance communication
Improve Problem Solving
Set good discipline
Develop awareness
Establish “Problem Consciousness”
Establish a basis for education and training
Establish a baseline for performance
Improve Quality, Safety, Delivery, Cost
Provide the basis for Improvement
Three Stages of Problem Solving
Maintenance Kaizen
Goal
Kaizen
“Raising”
“Maintaining”
“Reaching”
•Problem Solving that
results in getting to the
goal.
•Problem Solving that
focuses on maintaining
the goal.
New Goal
•Problem Solving
that focuses on
increasing capability
beyond the goal “Kaizen”.
Ideal Span of Control
Ratio 1:5
Leader
Team
Member
Team
Member
Team
Member
Team
Member
Team
Member
HOSHIN - ALIGNMENT
Strategic
Process
External Environment
Mission/Vision
Cultural
Process
Hoshin Goals
Values
Hoshin Methods
Critical Success
Factors/Practices
Hoshin Activities
Model Behaviors
Results
Stakeholders
Team Board for Floor Management Development System
Quality Section of Team Board for Floor Management
Development System
Fujio Cho, Chairman, Toyota Motor
Former President, Toyota Motor Manufacturing,
Kentucky:
3 Keys to Lean Leadership:
1. Go See.
• “Sr. Mgmt. must spend
plant floor.”
time on the
2. Ask Why.
• “Use the ‘Why?’ technique daily.”
3. Show Respect.
• “Respect your people.”
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