Educating People in Lean Thinking
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By Dr Nick Rich of Cardiff School of Management shown at Lean Summit 2012 - Learning - Educating - Sharing on 27/28 November
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Educating People in Lean Thinking
- 2. Nick Rich: Career History ‘A frustrated Engineer!’ • Associate Dean Cardiff School of Management – Centre for Lean Education, Application & Research CLEAR – Honorary Associate Professor Warwick Medical School – Chief Industrial Engineer (2012 Olympic and Paralympic Medal Programme) – Co‐Founder at the Lean Enterprise Research Centre • With Dan Jones – Toyota Motor Corporation Japan Senior Research Fellow – UK Government Reports & 5 Books
- 3. Our Workshop • LEARNING • What do we need to learn to improve business performance through Lean Thinking? • How do we apply the scientific method to our lean journeys? • How can we use Policy Deployment to learn the vital few performance gaps for the organisation to close? • EDUCATING • What alternatives ways are there to deepen both our organisational and individual skills to create value for customers? • How are the best lean organisations educating their people in lean? • How can we effectively coach, develop and mentor leaders and employees on the job? • SHARING • What do we need to share with our people in order to sustain and further improve? • How can we share and communicate our efforts? • What roles do Policy Deployment, coaching and the A3 process play in sharing?
- 4. What really works: The 4+2 Formula for Sustained Business Success • Professor Nitin Nohria, Harvard Business School – Most management tools have little effect on results – Why? No meaningful link between new techniques and long‐term performance – There is a strong correlation with good management practices using tools to help achieve a particular objective – There is danger in focusing too intently on the tool. It leads to losing sight of the long‐term organisational objectives
- 5. “Full speed in a least six critical areas” • All of the four primary features: – a clear, focused, well‐communicated strategy – superb operational execution – a performance‐orientated culture – a flat, flexible organisational structure • Plus two of the secondary features: – recruitment and retention of talented staff – strong demonstrable commitment from leaders – service transforming innovations – grow through mergers and partnerships
- 6. So Where Are You? • Do you think at the system level or lower? • Do you think beyond the current ‘voice of the customer’ and over the longer term? • Optimised your current services? • Prepared to compete now and in the future?
- 7. So What Do We Need? • Policy Deployment to set direction • Value stream management • A3s to control the rate of change • Operational Excellence, standard work, and kaizen for tactical improvement (supply chain) • Education, training, coaching & Mentoring for sustainability
- 8. Improvement Areas Performance Indicators Targets& Measures Target For Departmental Mgrs TOTAL £1.108m Reduce Stocks Reduce Inspection Supplier Evaluation System Other 1 Plant Effectiveness Other 2 £3.3m-£2.75m OEE50-85% Direction2 Ave55%-87% -50% Direction1 £550,000 £375,000 £133,000 £40,000 £10,000 Department InBuffers InPoorDelivery InSupplierFailure InOperatingCost InInspectioncosts P.Planning Manufacturing QualityControl Maintenance Adapted From Merli 1996 JFMAMJJ 2006 Policy Deployment X Chart
- 11. Mapping Indirect Processes • Lean should drive collaboration between departments • Departments focused on value generation will become more effective • Knowledge will flow between departments • Sharing goes beyond the boundaries of the organisation chart
- 16. Beyond The Shopfloor Characteristics Old Model Lean Paradigm Strategy Planned Entrepreneurial Structure Hierarchy Cross-Functional/Network System Rigid or C.I. Flexible within boundaries Staff Title + Rank Helpful Style Problem-Solving Transforming Skills To Compete To build Shared-Value Better-Sameness Meaningful-Difference Focus Process Management Institution and network Source of Strength Stability – Reduce Costs Change and rate of adaption/Innovation/Profit Leadership Dogmatic Inspirational/Listening
- 17. The ‘Glass Ceiling’ Business Results TIME Full Potential The Improvement Stall Point 1 Profit Glass Ceiling Problem Solving Doing Job Profitability Growth & Innovation Value Stream Mapping The Improvement Stall Point 2 DESIGN
- 18. • Value does not keep rising as you optimize processes • You cannot rely on being just a bit better – you win orders and deliver value in a different way • We believe we need knowledge workers and remain in buying graduates and retraining mode • Some organizations believe we need boundary spanning workers • Why compromise? Training and Education Our Operating Models Will Fail!
- 20. 64% 66% 67% 67% 74% 74% 75% 75% 63% 64% 64% 64% 50% 75% Foreign languages Self-direction/Lifelong learning Written communications Ethics Work ethic Oral communications Leadership Handling diversity Creativity/Innovation Teamwork/Collaboration Information technology application Critical thinking/Problem solving Percent of employers who believe skill will become more important over next five years Broad competencies: Employers expect them to become more important Source: Conference Board. (2006). Are they really ready to work? (p. 49, Table 12)
- 22. Training and Education: The Differences • Objective – Training—to improve job skills and performance – Education—to improve knowledge not connected to a job (a system) • Focus – Training—about learning “how” to do things – Education—about learning “what” underpins doing • Time Period – Training—short‐term and immediate – Education—long‐term and annuity
- 27. REACTIVE CONDUCTING ROUTINE WORK PREVENT PROBLEMS 50% 100% PROJECTS CONDUCTING Standard OPERATIONS 50% 100% IMPROVEMENT PROJECTS 5S Autonomous Work The middle Management ‘Systems designers’ Specialists Associates Executive Management ‘Direction Setters’ Who Knows How and What?
- 31. Quality
- 37. More collaboration in the workplace In top 1,000 companies: Use of self-managing work teams rose from 28% in 1988 to 65% in 2005. Work teams are increasingly global.
- 38. Teaching & Facilitating • Teaching/Education – 1‐2‐1 or in groups involves telling (teacher leads) – Subject matter expert – Basic knowledge that underpins the business – Measured output • Facilitation – Helping individuals and groups learn (to achieve an objective)
- 39. Barriers and Enablers? • What prevents you from educating staff? • How many staff would you need to have a critical mass to match your business competence? • What would enable staff to maintain their knowledge?
- 42. Mentoring • A relationship between a more experienced staff member and to help a less experienced individual learn to be effective in their role/future role • The mentor uses their experience and network of contacts to advise and develop the other person. • A mentor is a learning role model A coach is someone to learn with – the coach helps the individual to reflect and learn from their experiences/build models with the individual. Someone to learn with.
- 43. The Best Use of Coaching • Developing leaders • Support during lean transformations • For key staff when undergoing individual change • Implementing new skills and lean practices (cultural and behavioural change management) • Improving team learning especially for ‘indirect’ staff • Increasing organisational learning
- 46. Effective Educational Programmes • John Bicheno Lean Enterprise MSc Programmes • 20Twenty Programme • Sector Skills Pilots • Healthcare Improvement (Accredited) Programmes • Corporate Degrees and distance learning degrees (Undergraduate and Masters) • Professional Doctorates
- 47. Education At Sea
- 51. Thank You! • Know how and Know why • Learning and levels: – Do it right – Do it better – Do it differently • What about your operating model?