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Building and Sustaining a Lean Culture: The Quality People Value Stream

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.

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Building and Sustaining a Lean Culture: The Quality People Value Stream

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  1. 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

  2. Three Levels of Culture What we see, what a newcomer, visitor or consultant would notice (e.g., dress, organization charts, physical layout, degree and formality, logos, and mission statement. Artifacts & Behavior 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. Norms & Values . 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

  3. Customers Suppliers Most important problems are cross-functional Value & Work Flows Across Functions Finance IT Marketing R&D Supply Chain Human Resources Sales Growing the Business Big horizontal business processes Fulfilling Customer Orders Growing and Developing People, Leaders

  4. Which one describes your Company? Vertical 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 • Focus - Production • Budgets, SOP’s • Make the numbers • Leaders separated from the work • People’s ingenuity used to “beat the system” • Supervisors “manage” people

  5. Company Goals Employee Goals Profit Long Term Success Contribute to Economy Contribute to Society Good Quality A Paycheck Growth Good Benefits A Safe Workplace Meaningful Work Long Term Mutual Prosperity Mutual Trust

  6. Make problems & opportunities for kaizen visible. TPS= Standardized Work, 5-S Standardized Work, 5-S Setup Standard Visual Control (Andon, Line-stop, Visual Management) Visual Control (Andon, Line-stop, Visual Management) PDCA StandardizedWork, 5-S Check Abnormality Problem Solving (Daily Activities, QC Circle, Suggestions) Kaizen

  7. The Toyota Way THETOYOTAWAY Toyota BasicBusiness Practices by concentrating knowledge of each & every employee Teamwork Respect for People for the benefit of all customers & stakeholders Respect we strive to realize ambitious goals Challenge Continuous Genchi through steady, fact- driven progress Improvement Genbutsu Kaizen pursuing highest standards of excellence guided by best possible course of action Values Practices

  8. It Starts with Values Toyota Way Values Beliefs Thoughts Actions Habits Character Culture TBP 8 Steps Goals for the company

  9. LEAN CULTURE OVERVIEW MODEL ORGANIZATIONAL STRUCTURE & SYSTEMS CONTINUOUS IMPROVEMENT Quality People OUTPUTS Quality Organizations Human Resources INPUTS Assessment ATTRACT DEVELOP ENGAGE ENROLL ORGANIZATIONAL LEADERSHIP & ENVIRONMENT

  10. 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

  11. Three Stages of Problem Solving Maintenance Kaizen Kaizen “Raising” New Goal “Maintaining” Goal “Reaching” • Problem Solving that focuses on increasing capability beyond the goal - “Kaizen”. • Problem Solving that focuseson maintaining the goal. • Problem Solving that results in getting to the goal.

  12. Ideal Span of Control Ratio 1:5

  13. External Environment Mission/Vision HOSHIN - ALIGNMENT Strategic Process Cultural Process Hoshin Goals Values Critical Success Factors/Practices Hoshin Methods Hoshin Activities Model Behaviors Results Stakeholders

  14. Team Board for Floor Management Development System

  15. Quality Section of Team Board for Floor Management Development System

  16. Fujio Cho, Chairman, Toyota Motor Former President, Toyota Motor Manufacturing, Kentucky: 3 Keys to Lean Leadership: • Go See. • “Sr. Mgmt. must spend time on the plant floor.” • Ask Why. • “Use the ‘Why?’ technique daily.” • Show Respect. • “Respect your people.”

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