Impruver Commercial – The Gemba Dance

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Change Management: Driving Growth while Sustaining the Base

Impruver Change Management

If you search for Change Management across the interwebs, you’ll get all kinds of results, much of it focused on understanding and coaching a person through the psychological process that change creates. You know the one that goes from excitement, to denial, then the pit of despair, then acceptance, and finally growth. I know…sounds a bit dramatic – and rightfully so. When you make a change, do you consider the risk and implications across all affected functions of the business? As your Lean Manufacturing or Continuous Improvement teams work to increase quality, productivity, and service levels, are they effectively managing change in a way that enables growth while sustaining the base? Surely there are some aspects of the process that are good and should be sustained, right? This article explores the concept of Change Management as a Continuous Improvement tool and how this critical skill-set creates a distinct competitive advantage for any business.

What is Change Management?

Change Management is a systematic approach to driving proactive risk identification and mitigation for changes, and then ensuring the effective close-out of change initiatives. The objective of change is usually to improve some aspect of the business, which is good. The challenge is that in some improvement efforts, the consequences can be pushed to another area of function of the business and not discovered until it’s too late. For example, modifying a filling machine to increase productivity could also cause poor quality or safety if the risks aren’t effectively identified and mitigated in advance of making the change.  Change Management helps to make changes more likely to succeed without disrupting other key areas of performance.

Why is Change Management Important in Continuous Improvement?

I’ll start by giving you three excellent reasons you should be investing in Change Management capability:
1) Change is inevitable – its either happening for you or to you
2) The pace of change is increasing – more disruptions in less time
3) Those who are best at it will win the future

You’ll find little talk about Change Management in most Lean books or sources of CI information. Many of the creators and early observers of Lean Manufacturing learned from Toyota, which is primarily a car manufacturer. The automotive industry is a manufacturer-driven where the car maker has a lot of control over what gets produced and sold. In this environment, the manufacturer has more control over the pace of change and there just aren’t as many major disruptions. Within the plant, as the vehicle moves from station to station, the operator completes a defined sequence of process steps, making it easier to stabilize production flow and establish true equipment and process ownership. When a new body-style is released every few years, there may be new equipment or retooling changes. The capital project orientation of Early Management (EM) is more than sufficient in this environment.

In other, more market-driven industries, change is more frequent and often more dramatic. The principles of EM apply but the tools aren’t very applicable for non-capital changes such as people, processes, and, in some cases, products. For example, in many CPG companies, there are several new products launched every year, requiring significant changes across the organization. Additionally, operators may be responsible for a series of equipment that produces a variety of products that can change regularly. The level of true process and equipment ownership is more difficult to establish than in other manufacturing environments. It’s a much more fluid dynamic and requires a more comprehensive approach to Change Management. Otherwise risks spiral out of control, which can be a major liability for consumable goods like food, for example.

How to Do Change Management Effectively

The objective of Change Management is to successfully execute changes more quickly without compromising or taking losses in other key areas of the business. The idea is to achieve and sustain the desired steady state in less time, cost, and overall less resources consumed. To do this, you’d need to drive more proactive risk assessment and mitigation for changes. This includes risks across all affected functions including safety, quality, production, cost, service levels and even morale. A best-in-class Change Management process have the following 5 phases:

Phase 1) Leadership Review – Leadership filters changes and assigns resources needed for successful execution
Phase 2) Risk Mitigation – Change Owners (single point of accountability) assess and mitigate associated risks
Phase 3) Leadership Alignment – Leadership verifies that all critical risks have been mitigated
Phase 4) Change Execution – The change is implemented, teams are trained, communication is completed, and key learnings are captured
Phase 5) Close-out – Leadership verifies satisfactory completion of the items in Phase 4

This simple process is scaleable to be effective from the production line up to the enterprise level. Lean Manufacturing and Continuous Improvement initiatives inflict an incredible amount of change on an organization. The importance of the critical skill-set of Change Management is highlighted by the fact that over 70% of Lean initiatives fail to sustain. Market and process-driven companies especially face a unique set of challenges that require more frequent and severe changes in just about every aspect of the business than more discreet manufacturers such as auto-makers. As a result, it’s imperative to effectively execute and close-out changes because there are always several others coming through the pipeline.

This Lean Tool Will Have You Celebrating A Lot More Small Wins

celebrate small wins - calvinlwilliams.com

Well if a journey of a thousand miles begins with one step…and a Lean transformation is a journey; then when do we get to celebrate? I think that’s what everybody’s really wondering. As with any journey, you can take the long, hard, and treacherous path, or the one that’s lined with beautiful flowers and breathtaking landscapes. Well I can promise you one thing, if you chose the former path, not everyone is going to make it – and that sucks – because it doesn’t have to be that way.

Lean journey is full of everyday small wins. For the same reasons we all ran out and got Facebook accounts and get so excited when pictures of the baby gets a million likes, those everyday small wins have an immensely powerful effect on our motivation and desire to take action. These small wins are vital assets for leaders to keep people engaged in the journey and motivated to keep going in the right direction; so its crucial that leaders handle them effectively. The challenge for you as a leader is knowing that a small win, or success story, has been achieved; when it is achieved. A small win might include an operator setting a personal best in line efficiency, a team setting a downtime reduction record, achieving a target condition, or other. Tracking OEE is a great starting point – but if you’re still using a manual OEE tracking process (ie whiteboards or paper), you can forget about capturing personal bests by employee or team. Also, mostly all software platforms, with the exception of impruver.com, tracks OEE by line but not the individual, and thus can’t assign a personal best – to the person. As a leader, one of the most demotivating things you can do is fail to recognize and reward the right behaviors at the right time. Sometimes your people know when they’ve set a personal record but they expect you, as a leader, to know as well – without them having to tell you. Its almost like forgetting your kid’s birthday – and if you did that too, you aught to be ashamed.

Why celebrating small wins is so powerful

Think about this from the line operators perspective. In the absence of any other indicator, the only way to define success is by producing more product that ever before, which may actually be harmful if you’re overproducing; or at least completing the schedule on time, which just means you’re not getting worse. Additionally, these events come too few and far in between to motivate you to strive for everyday improvement. You really don’t have an incentive to “do better everyday”, which is at the heart of Continuous Improvement. You just want to clock in, do good enough, get paid, and go home.

How to create “pull” for Lean from the Shop Floor using Small Wins

If you think about it in the context of a CI journey, those small wins are like winning basketball games in route to the championship. In order to build “championship-level” confidence, you have to win a lot of games throughout the season. Setting a personal best in yield losses today, changeover time tomorrow, and then line uptime the next day gives you the motivation to set new personal bests going forward. Couple this with a social element of automatically broadcasting these success stories throughout the company and you’ve got a recipe for rapid growth. Imagine you just finish a successful kaizen event and set a personal best in rate attainment the next day, then received a “like” or comment from the CEO and other leaders recognizing your achievement. That’s an incredibly powerful motivator to engage in more improvement activity on your line. You’d come to work everyday knowing that a new personal best is well within reach; excited about trying out that new idea to see what impact it has on results. You’d stick around while maintenance is repairing the line so you can learn how to make those repairs yourself – so you don’t have to wait around for maintenance next time. You’d be asking your supervisor or CI resource about new Lean Tools and methods you could use to get better results. This approach creates “pull” from the shop floor for CI as opposed to having it pushed upon you by management against your will or interest.

You might be thinking about all the impossible daily number crunching that would be required to get this done. Or if you’re using spreadsheets, this file could become incredibly large and useless and inaccurate in no time. And speaking of time, it would take an incredible amount of time to build, update, and maintain such a tool. But don’t fret. This technology already exists and is ready for you to use to accelerate your CI journey. When the geniuses at Toyota and their observers wrote the books on Lean, the tech unfortunately did not exist. In fact, Toyota had an aversion to the use of technology in their Management System (TPS) because they feared it would automate too much and allow the operator to disengage. They’ve since changed their approach as they saw their competitors leveraging various technologies to great effect. We’re learning everyday that Toyota wasn’t right about everything; but you can get it right.

Check out this video to see what I’m talking about:

So.. never again should an operator go a day without their leaders even being aware that they just had the best day ever. Take the scenic route – engage your people in everyday small wins and watch the powerful impact it has on your Lean culture.

How Command-and-Control Sabotages Continuous Improvement

Command-and-control and continuous improvement - calvinlwilliams.com

Command-and-Control organizations are built around principles of efficiency, speed, and execution. On the surface, these sound like good qualities of a Lean organization as well. After all, Lean is all about eliminating waste, right? It makes sense that once leaders figure out what activities constitute wastefulness, they could simply command all employees to stop doing those behaviors and start doing things that management deems to be more efficient. And that those who fail to comply should be “coached” into compliance. However, subscribing to this way of thinking transfers power to managers and away from their subordinates, who perform the value-added work that the customer is paying for. And with that power transfer goes creativity, innovation, motivation, and all other things that are needed to create a thriving culture of Continuous Improvement. To restate the question: Can Command-and-Control and a Culture of Continuous Improvement Coexist? The short answer to this question is no. The long answer is – its complicated, but no.

Why Command-and-Control Kills Continuous Improvement

In essence, Command-and-Control is the kryptonite of Continuous Improvement. It values doing things right over doing the right things, conformance over creativity, and efficiency over effectiveness. It siphons power from the bottom and feeds it up to the top. It drives behavior through fear and manipulation instead of genuine desire to do good. It is founded on a few assumptions,  one being that the manager knows best what needs to be done and others should be subordinated. It views the organizational relationships as authoritative and not collaborative. The purpose of Lean is to continuously increase value to the customer. Value is created on the value stream; so logically, the people closest to, or working on, the value stream have the best understanding of opportunities for improvement. While a manager may have a more macro (high level) point of view over the end to end business system, the people who live with value stream issues day in and day out are probably going to understand the issues at a deeper level; thus, putting them in position to develop more optimal solutions for their area of ownership. Although leaders are in a better position to drive system-level improvements, in a Command-and-Control culture, many of them are too busy micromanaging their employees to step back and look at the system. Leaders and their teams should work as partners to optimize the business with the intent to bring the greatest possible value to the customer.

Another assumption in a Command-and-Control culture is that the manager’s role is to enforce the rules and employee performance is an assessment of compliance. Those leaders who are trying to instill a Continuous Improvement culture using command-and-control tactics are operating as if creativity and innovation are a privilege of upper leadership and all others should simply obey. In this environment, subordinates display obedience out of fear – with the hopes that one day, they’ll be rewarded with the authority to create an innovate, or actually use the right half of their brains at work; or just keep their jobs for a little while longer.

In contrast, the aim of Continuous Improvement is to accelerate a company towards its objective, which is ultimately to win in the markets they serve. This usually means keeping customers and other stakeholders happy. This cannot be done without considering the competitive landscape in which the company operates. In order to win in the market, your company must have 2 things going for it: 1) be more in-tune with the market and the customer’s perception of value and 2) be able to change to better meet the needs of the customer.

The challenge is that corporate managers, especially as they ascend higher up in to the organization, become more and more detached from the value stream – making Command-and-Control more convenient for the leader but less optimal for everyone else, including the customer. Instead, companies should seek to more directly connect those doing the work on the value stream to the consumer. Then empower them to innovate to better meet the needs of the customer.

Imagine 2 scenarios:

  • One manufacturing company has the marketing research function working directly with shop floor operators
  • The other company has multi-layered, silo’ed, hierarchical organization where the people working the value stream have a very weak signal from the actual customer and vice versa.

Which one do you think has the strongest competitive advantage?

In the latter scenario, shop floor operators are effectively rendered dependent on their managers for guidance, who often also have no clue which direction the market is moving, especially if there isn’t an effectively strategy deployment process in place. To take the former scenario a step further, imagine shop floor leads and operators engaging directly with customers to brainstorm ideas for improvement. This would require an incredible shift in power to the people working the value stream – and for leaders to become support resources, coaches, and facilitators – as opposed to commanders.

Click here to view case studies highlighting the difference Impruver can make for your manufacturing business.

Why the Relationship Between Command-and-Control and Continuous Improvement is Complicated

This is an especially difficult challenge large companies who likely compete on efficiency. They tend to identify products that can be sold to the masses and then build the business machine to produce these things cheaply and in large quantities. They are not designed to be flexible to the needs of the market but to be great at making a thing and controlling the market through pricing, messaging, and other incentives. For a business built on this model, efficiency is king. These are not playgrounds for the creative and innovative, but more like a platoon of highly disciplined troops, whose slightest display of disobedience could mean life and death for the entire troop, and possibly the loss of the war itself. These companies are not good at capitalizing on opportunities, but at protecting the status quo and position that they have enjoyed for so long. Often these companies are being cannibalized by their own size and slowness, making a Continuous Improvement a struggle to grasp and sustain.

In a CI culture, empowerment of the people is paramount. Empowerment requires leaders to relinquish some of their own power to engage their teams to a higher order. This means employees at all levels get to bring both halves of their brains to work everyday and put them to good use for the company. An organization where only leaders are allowed to practice creativity and experimentation is inherently going to make much slower progress than one where all employees are fully engaged to create, initiate, and innovate. In competitive markets, companies that are both in-tune with customer needs and capable of rapid innovation will dominate in terms of growth and talent acquisition. Those that promote leaders based on strict obedience will perpetuate a cycle of stagnation, slow growth, and ultimate demise.

9 Cures to Common Continuous Improvement Cultural Challenges

Creating a Lean Culture might require some medicine, a bit of therapy, and some deep meditation. You may feel like Continuous Improvement doesn’t work for your company. Or maybe you feel like your doing all the right stuff and running up against a brick wall trying to turn the corner on culture and performance. Perhaps you’ve tried a few things that you were told would work and they didn’t produce the result you were looking for. Perhaps you just haven’t had the opportunity to see a working CI organization in action. Either way, there are some common themes that are present in every CI journey to varying degrees. These themes are synonymous with illnesses as they plague business results and can spread throughout the organization unless they are stopped before they kill the patient. There are some basic steps you can take to overcome these ailments and truly start to realize some organic acceleration.

Here are 9 Common Lean Culture Illnesses and How to Cure Them:

Illness #1: People recognize opportunities for the company to improve but are fearful of mentioning them to leadership

Everyone has a unique point of view. Therefore everyone sees opportunities that no one else sees. The guy running the packaging machine has a much better idea for why the company gets pallets rejected by the customer due to unsealed boxes than the big boss sitting in a corporate office. I like the saying that “the person closest to the problem, is also the one closest to the solution”. Every company needs a good way of engaging people to improve performance in their area of ownership. To do this, try setting a clearly defined target condition for each employee in the company. Then hold their leaders accountable for coaching their employees to success against their improvement objectives.

Illness #2: The company has to hire externally for leadership positions because talent isn’t being developed internally to step up into higher-level openings

There is a delicate balance between getting results today and developing people for tomorrow. The companies that will lead the pack in the future are the ones that make the greatest investment in developing their people while delighting customers today. Avoid having your business decline to a culture of fire fighting so there’s some energy left over at the end of the day to prepare your people for tomorrow. To do this, create a back-fill (or successor) for every role in the company. Then provide assignments that give the successor experiential learning opportunities. This works even better if the experiential learnings are designed as Continuous Improvement projects that require deep understanding of key processes and provide a benefit to the business.

Illness #3: Leaders expect a short-term ROI for all CI activity with little regard for developing their culture

If serving the customer is at the heart of the business, ROI is the brain. In fact, if you’re not making money, you can’t continue to serve the customer. However, leaders must be careful not to sacrifice the capability to serve tomorrow’s customers by getting overly consumed by the challenges of today. This includes balancing investor payouts with re-investing in growth and development. To do this, couple activities that have great ROI with those that have marginal short-term benefit but are strategic for growth and sustainment. However, keep in mind that most Lean tools are not just one-and-done. When done well, they signify the beginning of the journey and not the end.

Illness #4: The company has a Continuous Improvement program that is disconnected from the strategy

News flash: making progress against your strategy is the definition of improvement. Randomly applying Lean Tools is not necessarily improvement. In fact, you may be wasting precious resources on things that don’t create value for the customer or the business. Don’t fall into the trap of “polishing the doorknobs on the Titanic” in the name of Continuous Improvement. If you find yourself with a so-called “rock solid” CI program, but are consistently losing market share, something is definitely wrong. To fix this, define a clear strategy for how to win in the market. Then challenge every employee to make improvements in their area of ownership that moves the business in the direction of its strategic priorities.

Illness #5: People aren’t getting to the root cause of issues impacting their area

There’s two variants of this issue. One is where people are pushed to hit their numbers everyday by any means; and the other is where operators just band-aid problems and wait for maintenance or management to swoop in and fix them when it’s convenient. It can be a difficult choice to risk not fully satisfying a customer to take the time to get to the root cause of an issue and permanently resolve it. But consider this, issues of today like to mix with the issues of tomorrow, which can result in quite a cocktail of chaos. Better to strike the balance between making the daily numbers and shutting down when needed to fix the process the right way. Your people, the process, you, and the customer will be happier for it in the long run. Start by training your process owners on root cause analysis. Then teach them how to measure their losses and set the expectation that they will make changes to reduce them over time. Then recognize and reward continuous and sustaining improvement in performance.

Click here to gain access to a powerful webinar on Generating the Skill and Will to Improve Performance

Illness #6: People are reluctant to experiment with improvement ideas out of fear of failure

We all love the part of the movie when the hero jumps in to save the day; and want to yell at the TV when the hero fails to make a seamless rescue. But in the movies, the hero is always encouraged to keep trying because otherwise there is no hope. We should do the same in business. We need to be careful not to discourage “right behaviors” like trying to improve performance, even if the result is sub-optimal. Learning and development, which result from trying, are pre-cursers to improvement. To encourage this, instead of focusing on success and failure, switch the focus to learning. Learning happens most effectively through experience, and trail and error. Promote a culture of discovery and sharing over one of “who got the highest numbers”.

Illness #7: People hide performance losses out of fear of “looking bad” or facing consequences

I once had a manager who tried to improve engagement scores by “educating the team” that they were more engaged than they realized. In other words, this manager did not intend to actually engage the people at a higher level, he just wanted to manipulate them into thinking they were already engaged. This manager would have been better off to identify what’s driving the disengagement and fix it. The same is true for any metric that indicates opportunity for improvement such as OEE, First Pass Good, On Time and Full, etc. To cure this, shift the focus away from hitting or failing to hit targets to one of gradual and consistent improvement. When people learn to define success as “getting better”, showing losses becomes less threatening and status quo becomes the dangerous.

Illness #8: Continuous Improvement is delegated to an individual or department and not owned by all

Just about everyone understands how CI can be an incredible asset to a business. But many people lack the skill and will to improve. Some believe that hiring a CI Manager or resource and sticking them in the plant is commitment enough for them. This sets a tone that CI can be done in a silo and the role of leadership is minimal. But you can’t buy a culture of Operational Excellence. You have to build it yourself. A CI resource who is very skilled can help coach but leaders at all levels bear the responsibility to make it happen. To cure this, every leader in the company should be challenged with a performance improvement target that aligns with the company strategy. Then deploy their team’s CI efforts to close the gap. The CI leader should pass their expertise into leaders and process owners via coaching – not by doing it all themselves.

Illness #9: There is a general lack of respect for people at lower levels in the organization

Empowerment is built on 2 fundamental blocks: 1) developing people’s capability so that they can make sound decisions and 2) trusting people to act in good faith and generally do the right thing given the opportunity. Empowering someone requires you to “give up” some of your power to others, resulting in an overall more powerful organization. Engaging people’s hearts and minds to a higher order can unlock unimaginable potential. To cure this, delegate decision-making and problem-solving to the lowest feasible level in the organization. Then coach (but not direct or micro-manage) the performer to further strengthen their capability.

If you find yourself trying to lead a Lean Culture and progress is slow and sometimes backward, don’t despair. What you’re experiencing is perfectly normal and sometimes patience and persistence are needed to shift the organizational culture. Focusing on the areas listed above will have a dramatic effect on moving the needle in the right direction. The key thing to remember is that Lean or Continuous Improvement is not a substitute for good leadership, but it is the ultimate compliment.

5 Root Cause Analysis Methods of Which You’ve Never Heard

Root Cause Analysis Method - calvinlwilliams.com

There are a ton of Root Cause Analysis methods out there, and new ones are popping up all the time. This post dives into some of the lesser known methods of RCA such as Kepner-Tregoe, Barrier Analysis, and Events and Causal Factor Analysis. Perhaps this will help stock your arsenal so that you have more powerful tools to crack bigger problems.

Root Cause Analysis Method: Kepner-Tregoe Problem Solving and Decision Making

This is a more methodical approach that combines the best of RCA and change management to ensure that not only the problem is clearly identified, but the best solutions are also developed to address them.

Kepler-Tregoe - calvinlwilliams.com

There are four basic steps for using the Kepner Tregoe decision matrix:

  1. Situation appraisal – the process of clarifying the situation, outlining concerns and choosing a direction
  2. Problem analysis – defining the problem and determining it’s root cause
  3. Decision analysis – defining alternative solutions and a conducting a risk analysis for each
  4. Potential problem analysis – further scrutinizing the best alternative solutions against potential problems and negative consequences and proposing actions to mitigate risks

Root Cause Analysis Method: Events and Causal Factor Analysis

This method is used to establish a timeline or “storyline” of events leading up to an incident. It works best for one-off major events that are caused by a series of other significant events.

Events-Failure-Cause-Analysis - calvinlwilliams.com

The steps include:

  1. Organize the accident data – Collect and categorize all known facts regarding the issue
  2. Guide the investigation – Create and execute the investigation facilitation plan to discover what is not currently known but needed
  3. Validate and confirm the true accident sequence – Confirm that known facts are actually truth
  4. Identify and validate factual findings, probable causes, and contributing factors – Outline potential causes and contributing factors
  5. Simplify the investigation report – Organize the findings the report in a way in a reader-friendly format
  6. Illustrate the accident sequence in the investigation report – Incorporate visual aides into the final report that clearly illustrate the accident sequence

Root Cause Analysis Method: Change Analysis

This process ties events or significant shifts in performance back to changes in the process that may have contributed to the result.

change analysis - calvinlwilliams.com

The steps include:

  1. Describe the event or problem
  2. Describe the situation without the problem
  3. Compare the two situations
  4. Document the differences
  5. Analyze the differences
  6. Identify the consequences of the differences

Click this link to view testimonials and case studies of how Impruver’s Lean Manufacturing software can help empower your company

Root Cause Analysis Method: Barrier Analysis

This approach assesses the system of controls or “barriers” that are in place to prevent issues from occurring to determine which might have failed or malfunctioned.

Barrier Analysis - calvinlwilliams.com

The steps include:

  1. Write the behavior statement – Clearly define what behavior needs to be studied
  2. Write the behavior screening questions – Develop a set of questions that helps determine if the subject (person) is a doer or non-doer
  3. Write the research questions – Identify what information needs to be discovered and formulate questions
  4. Organize the field work – Create a plan to gather the needed data
  5. Conduct the survey – For any information that cannot be gathered from direct observation, interview subject matter experts
  6. Coding, tabulating, and analyzing the data – Transform the data and information into a coherent story
  7. Using the research to make decisions – Decide on the best course of action

Root Cause Analysis Method: Problem Tree Analysis

This method creates a tree diagram of potential causes of an observable problem or result. It includes branches of potential causes instead of a simple linear approach used in the 5 Why’s

Problem-tree-analysis - calvinlwilliams.com

Here are the steps involved:

  1. Define the system or area of interest – Scope the system to be fully inclusive but isolates the problem enough for sufficient controls to be set.
  2. Identify the initiating events of interest – Scope the specific problem to be addressed
  3. Identify lines of assurance and physical phenomena – Identify the barriers (both physical and human) put in place to control process outcomes.
  4. Define contributing factors – Identify potential causes or contributing factors for each known cause.
  5. Analyze potential root causes for most probable factors – Determine the appropriate frequency and severity of each possible root cause and select which to apply further investigation
  6. Summarize results – Create a report that lists all accidents stemming from potential root causes

Root cause analysis is a great tool for developing a better understanding of why problems might be occurring in any process-oriented operation. RCA is a cornerstone of Continuous Improvement as it enables more effective solutions to be developed. As with any root cause, there may be several problems resulting from the same root. Therefore, fixing one root cause can produce a multitude of benefits for your operation.

As with any RCA, the root causes are just hypothesis that need to be proven (or dis-proven) through testing and experimentation. This means that a clear plan of action should flow from the RCA activity. The RCA does not improve a process. Making changes and observing what happens is where the real improvement occurs. And if you’re not seeing the result you’re looking for, you need to further your RCA, form new hypothesis, and continue to experiment until you get the right result. RCA coupled with deliberate action accelerates the learning process and produces powerful results in the meantime.

Top 10 Most Misunderstood Lean Tools (Part 3)

Lean tools can be leveraged to accelerate your company’s culture and business results in a dramatic way. However, if ineffectively applied, they can decrease hope for sustaining improvement and feed a culture of cynicism. In this 3rd of 3 installments on the Top 10 Most Misunderstood Lean Tools, we’ll dive into Gemba, Total Productive Maintenance (TPM), Leader Standard Work, and Hoshin Kanri (Policy / Strategy Deployment). This article is designed to give leaders a better understanding of their role in a Lean Organization.

#7) Gemba – It’s great to see leaders spending time on the shop floor engaging with the workforce. Leadership should certainly have a regular presence on the value stream where the work happens that the customer is paying for. But even this well-meaning activity can have destructive side effects if the intent is not clearly understood.

The Misunderstanding: Quick question: how much time, energy, and effort do people put into “cleaning up” when the big boss is coming into town? The answer to this question gives you some insight to the organization’s gemba culture. If people are “acting differently” in preparation for and during a leadership visit, then perhaps there’s a misunderstanding of what gemba looks to achieve. To make matters worse, leaders often seek to point out deficiencies in the process, which turn into projects that may or may not be connected to the strategy; but they consume precious resources – just because the boss noticed and called it out during their last visit. Ideally, the plant team should be eager to show their leaders the total truth so that they can engage leaders in a meaningful partnership to achieve superior results. The plant should never get ready, but should stay ready at all times so as to eliminate distractions and elevate the improvement culture.

Why do Gemba? The true intended benefit of Gemba is for people, especially decision makers, who are not naturally exposed to value stream processes, to gain familiarity with the real opportunities, gain deeper understanding of issues, and develop the talent to drive the right pace against their strategic imperatives. Leaders should not be asking “why something is wrong” or “did you notice that problem?”, they should be asking “what is the target condition?” for each person and “what is your plan for closing the gap?”; and even better, “how can I help?”. This drives greater ownership of results to the people doing the work and helps leaders understand how they could make an immediate impact.

#8) Total Productive Maintenance (TPM) -TPM is a canned approach to Lean that includes several tools designed to help achieve, sustain, and improve base condition. Base Condition is a process that is completely free from defects. TPM includes 8 pillars with one of the key pillars being Autonomous Maintenance (AM). In AM, operators become more autonomous from the maintenance function, performing the lesser complex routine maintenance tasks such as cleaning, inspection, lubrication, tightening, and minor repairs. Several other pillars are designed to help achieve and sustain base conditions with the Focused Improvement pillar helping to improve processes beyond base condition.

The Misunderstanding: Many companies approach TPM as a set of standards that they expect the organization to comply to. This is often taken as  more of a command and control approach that fails to develop the true capability to solve the problems that are keeping the company from making strategic progress. Without respect the individual journey of each employee, it becomes near impossible to sustain progress in this environment. As employees become frustrated and leave, the learning curve for a new employee is extremely high and TPM progress gradually trends the wrong way over time.

Why do TPM? No one disagrees that having machines that run at optimal running condition at all times is a really good thing. The question is at what cost? and is it justified by the benefit? This is a question that leaders must ponder to determine how far into the TPM journey they should go, if at all. TPM can drive higher OEE, lower lead time, higher quality, and higher productivity. If your processes are asset-heavy and these things are central to your operating strategy, then perhaps TPM is right for you. However, if your processes are labor-intensive and flexibility / agility is more important, perhaps you would choose an alternative or modified approach.

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#9) Leader Stanhttp://savingsdard Work (LSW) – LSW is a structured review process for leaders up and down the operations chain of command to support in driving process sustainment. Each level sets a frequency of how often they will perform reviews and in which areas. They might assess gaps from the correct use of key lean tools and follow-up on opportunities for improvement.

The Misunderstanding: The effective use of LSW depends greatly on the existing organizational culture. In a command and control culture, leaders will use this as an opportunity to find fault in what operators (or process owners) are doing and seek to take punitive corrective action. This approach only de-values the process owner and discourages a true continuous improvement mindset and culture.

Why do LSW? Use this tool to empower process owners to continuously improve performance in their area. Instead of looking for gaps to a standard, especially for seasoned operators, good leaders will seek to better understand the process for themselves and what they could do to help the process owner to make progress against their target condition. This could mean coaching or training but could also mean helping them influence other functions to take needed action.

#10 Hoshin Kanri (Policy / Strategy Deployment) – This is the process of developing strategies, plans, and tactics at all levels in the organization. Ideally, every employee in the company from the CEO down should be able to quickly draw a connection between their improvement work to the company’s broader strategy.

The Misunderstanding: 90% of strategies never get deployed. Most leaders don’t make the connection between the company strategy and continuous improvement. In fact, they don’t see the execution of strategy as improvement at all, they just see it as addition work that needs to get done. In worse cases, leaders see strategy deployment as a “paper exercise” that they do just to say they did it and throw it into a dark drawer until the next year’s strategy gets rolled out.

Why Do Strategy Deployment? A company’s strategy should paint a clear picture for what needs to be done to win (or keep winning) in the market. It should engage all aspects of the business and all employees. The agreed-upon work is your Continuous Improvement plan. It doesn’t help to have a CI team or program that is working on different things than your company strategy. If so, there will be an internal struggle for limited resources to be applied against the competing agendas. In fact, all departments should remain disciplined to the strategy to drive the greatest momentum and effectiveness.

Lean tools are very powerful because of their ease of use and repeatable results. Leaders should developing an understanding of when and how to most effectively apply the tools to drive superior business results. This post concludes a 3-part series on the most misunderstood lean tools. As you have probably realized by now, implementing the tool is actually the beginning of the journey and not the end. Once implemented, it takes persistence and dedication to stick with it until the desired result is achieved.