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| Lean Roadmap Newsletter
Becoming a World Class Enterprise
14th Edition
Greetings!
In this edition, we continue our discussion on How to Prevent Lean Implementation Failures - 10 Reasons Why Failures Occur. We will discuss, from the least critical (Reason #10), to most critical/fatal (Reason #1) why Lean implementation failures occur. Today we will discuss Reason #4:
- Not Understanding that Lean is all about Developing Your People
Also, in this edition we continue with our Lean Leader Coach series:
- The Lean Leader Coach - Communication Skills - Part III
This series is intended to provide tools, tips, ideas, and coaching for leaders whose organizations are implementing Lean as their operating system. |
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Free Lean Webinars Schedule |
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"Accounting for Lean" |
This Webinar is designed for organizations that use "Standard Cost" as their management cost system. It gives operations and accounting personnel an understanding of how and why "red flags" can be set off in the standard cost system during a normal Lean implementation.
Title: Accounting for Lean
Date: Tuesday, September 1, 2009
Time: 11:00 AM - 12:00 PM Eastern Daylight Time
Space is limited. Reserve your Webinar seat now at:
After registering you will receive a confirmation email containing information about joining the Webinar.
System Requirements (same as Webinar below) |
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"Lean Administration" |
In most manufacturing organizations the area of lowest productivity is in the office, not in operations. This Webinar will discuss the 5 steps to implementing Lean in administrative areas.
Title: Introduction to Implementing Lean in Administrative and Office Areas
Date: Thursday, September 10, 2009 Time: 11:00 AM - 12:00 PM Eastern Daylight Time
After registering you will receive a confirmation email containing information about joining the Webinar.
System Requirements:
Speakers for listening, a microphone to verbally participate
PC-based attendees
Required: Windows® 2000, XP Home, XP Pro, 2003 Server, Vista
Macintosh®-based attendees
Required: Mac OS® X 10.4 (Tiger®) or newer
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"Introduction to Policy Deployment & Lean Implementation Planning" - Two Hour Version |
A more detailed (than our previous one hour webinar) version of the most powerful Lean activity your organization will ever accomplish!!
Title: Introduction to Policy Deployment & Lean Implementation Planning
Date: Thursday, September 17, 2009
Time: 10:00 AM - 12:00 PM Eastern Daylight Time
Space is limited. Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/464428754
After registering you will receive a confirmation email containing information about joining the Webinar.
System Requirements: (same as above) | |
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10 Reasons Why Lean Implementations Fail
Reason #4: Not Understanding that Lean is about
Developing Your People
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| People and Training are "Costs" -- Still the Prevailing American Management Paradigm.
by Larry Rubrich |
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In the 1980s, when companies first started feeling the pinch of foreign competition and the global economy, many of them thought that becoming World Class meant retooling their companies with automated equipment, robots, computers, and wire-guided vehicles. Eliminating people from the process was the goal. The term "lights out" operation was popular.
What these companies soon discovered, and what World Class companies already knew, was that equipment alone would not make them World Class. People with their skills, knowledge, and ideas were the key to improving processes. These companies, after spending billions on equipment, then found it necessary to scrap this equipment and retool with people.
People and the World Class Enterprise Journey
So as we begin the journey to be a WCE, it is important to understand that World Class is accomplished:
- 80% through people
- 20% through techniques, equipment, and automation
Distinguishing Features of World Class Companies
Visiting World Class companies--for example, the Toyota plant in Georgetown, Kentucky, the Genie Industries plant in Redmond, Washington, or many of Dana Corporation's or Johnson Control's facilities-- can be a very enlightening experience. While touring these facilities, people often describe the company environment as "different." The environment, or ambience, is different in these companies because their focus is on people.
The figure below shows the distinguishing features of World Class companies. These features have a distinct people orientation.
First, teamwork is utilized throughout. Associates help each other. Again, the people in these companies understand there are no individual winners or losers; they either win as a team or lose as a team. Many of these companies provide or offer company uniform (a pullover shirt for example) to blur the differences between hourly and management associates, or different areas or departments.
Distinguishing Techniques of World Class Companies
The second feature is a company-wide war on waste. World Class companies make sure that all of their associates understand why becoming World Class is important to their customers, to the company, and to the individual associate. They train all associates to understand and identify parts of their process that the customer is unwilling to pay for (waste). They are also trained to use the waste elimination tools shown below.
When this training and associate empowerment are in place, every associate in the facility is expected to make small waste elimination improvements every day.
Many companies start the WCE journey and say, "Do we really have to train all of our employees?" The answer, which was reviewed in Reason #1, is this: "Do you want 6-7 people improving the company--or all 400?"
It should be reemphasized that the WCE tools and techniques shown in the figure above can be used by the 400 associates only if they work in an empowered environment. Again, the elements of an empowered associate are:
- Associates are recognized as the most valuable resource
- Teamwork is utilized throughout the organization
- Decision making is delegated to the lowest possible levels in the company
- Openness, initiative, and risk-taking are promoted
- Accountability, credit, responsibility, and ownership are shared
The third feature of World Class companies is a focus on perfect product quality. All associates are responsible for the quality of the work they perform. These companies understand that the lowest cost way to produce any product or service is to do it correctly the first time.
Training as an Investment in WCE
The cost of training in traditional American companies is viewed as an expense. When business is down, and budgets or business plans are tight, training is often the first line item that is cut. That is why, as was mentioned earlier, when some companies start the WCE journey, one of the first cost questions they ask is: do we really need to train all of our people?
In World Class companies, training is seen as a required investment in the future. To again reference the Industry Week survey, of companies that had a "significant" or "full implementation" of World Class manufacturing, 68.1% reported spending 2% or more of their labor budget on training. This compares to 35.5% reported by the companies with "no progress" toward World Class. In terms of training hours, 46.7% of all companies reporting significant or full implementation trained all of their associates more than 20 hours per year. For no progress companies, this number was 18.8%.
Summary- Reason #4
The associates in a company are the only vehicle management has to becoming World Class.
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The Lean Leader Coach - Communication Skills Part III |
This series is intended to provide tools, tips, ideas, and coaching for leaders whose organizations are implementing Lean as their operating system.
by Mattie Watson |
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So, how did your listening assignment go? Did you stick with it or give up quickly? If you gave up, why did you? If you stuck with it, did you notice a change in the relationship? How did it change? Most people who have stayed with the assignment have reported a marked relationship improvement with the person they listened to. (One fellow selected his wife who, about half way through, accused him of having an affair because he was being so nice!)
Many leaders struggle with the assignment because they are not used to listening. They tend to be reactionary when others are speaking. They interrupt, criticize, interrogate. That may not be their intent, but the approach, tone of voice, and/or speed of dialogue send a myriad of messages.
Your followers interpret negative reactions to their ideas based on the questions you ask and even the look on your face - regardless of your true feelings. You must understand this. Most people working for you are not used to their boss sincerely asking for their ideas or feedback. They may assume that it is just a ruse on your part. In many cases, when I ask folks in an organization if anyone from management asks for their ideas or opinions, I get a negative response. I've heard, "Well, they say they want our ideas but no one listens to them" or "No, no one is interested."
On the flip side, management is frustrated because when they do ask for ideas they either get nothing or a flip, sarcastic comment ("Well, you can shoot my supervisor - he's an idiot."). Here is the number one thing you can do in either of these situations - keep asking! The person who does not respond is likely just caught off guard and has not had time to think it through. Ask them to think about it and tell them you will be back tomorrow. Then show up! The person who responds sarcastically is likely venting frustration. As long as they are not being crude or violent, write down what they say and ask "What else?" Keep asking "what else" until they stop having ideas.
In either case, there is no guarantee that you will get a million dollar idea. However, you have NO chance at a breakthrough idea if you don't engage the workforce. The key to success here is to keep asking and keep listening.
Be especially open when someone expresses a concern. Don't be too quick to "correct" their thinking. Most people need time to assimilate new ideas and Lean is a huge change. Listen to the concern and ask what would have to be different to make the concern go away (or be diminished). Ask specifically if there is anything you can do. Just asking that question can allay many concerns.
In the last part of this series, we will address how to handle all the ideas and concerns coming your way. | |
| WCM Associates Lean Activities Schedule |
"We have tried other Lean providers in the past, but WCM Associates has proven to be the best in all aspects of Lean."
Keith Lodahl
Goodwill Industries |
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Lean Master Facilitator Training
Milwaukee, WI |
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This standard Lean Master Facilitator training session will be hosted by Grunau Construction Company in Milwaukee, WI (just south of the airport - MKE).
Grunau Company has been written up in several construction trade magazines for the strides they have made in their journey to become a World Class organization.
You can attend just one class or start the journey to becoming a Lean Master Facilitator by attending all 3 weeks.
Session dates are:
Week 1 = October 19th
Week 2 = November 16th
Week 3 = December 14th
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Lean Master Facilitator Training
Fort Wayne, IN (New dates) |
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This standard Lean Master Facilitator training session will be hosted by Bluffton Motor Works in Bluffton, IN (just south of Fort Wayne, IN).
You may qualify for Indiana state funding for this training. Please contact the following agencies for more information:
Indiana Economic Dev. Corporation
http://www.in.gov/iedc/ Chantel Anderson 317-234-3213 canderson@iedc.in.gov WorkOne Allen County residents contact: Robin Nichols 260-459-1400 x 4506. All other counties please visit: http://www.workoneworks.com/ You can attend just one class or start the journey to becoming a Lean Master Facilitator by attending all 3 weeks.
Session dates are:
Week 1 = September 21st
Week 2 = October 19th
Week 3 = November 16th
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Larry Rubrich
WCM Associates LLC
© 2009 WCM Associates
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