Evolutionary or Revolutionary Systems Thinking to Enable Transformational Change. Professor Peter Hines

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1 Evolutionary or Revolutionary Systems Thinking to Enable Transformational Change Professor Peter Hines

2 Peter Hines Professor Peter Hines is Chairman of S A Partners (an official affiliate of the Shingo Institute). He is the Co- Founder of the Lean Enterprise Research Centre at Cardiff Business School and continues his academic links with a number of Universities across Europe Peter is a globally recognised leader in Lean thinking and the only European Senior Certified Facilitator at The Shingo Institute and a multiple Shingo Research Award recipient for his recent co-authored books; Creating a Lean and Green Business System in 2014 and Staying Lean in Peter is a pioneer of the Lean Business System, involving a sustainable and enterprise-wide approach of Lean thinking across all industry sectors. He created the Lean Business System portal on LinkedIn which has over 60,000 members to date.

3 Fake Lean and Real Lean: Learning from The Toyota Way Continuous Improvement Respect for People Fake Lean Real Lean 90% of problems in business are caused by management, 10% by the workman. F. W. Taylor, 1912

4 Sustainable Lean Management Lean Management Source: P. Hines, P. Found, G. Griffiths & R. Harrison, Staying Lean, 2008

5 The Lean Business Model Original source: Professor Peter Hines Benchmarking Toyota s Supply Chain: Japan vs U.K. Long Range Planning, February, Volume 31, Number 6, pp , 1998, ISSN

6 An Evolution Journey

7 Transformation Approach System of Thinking & Behaviour System of Work System of Improvement Time Mobilisation Reactive Formal Deployed Autonomous Way of life

8 The roadmap to sustainability Roadmap Launched Jan 2004

9 Roadmap 1: Internal VSM and Lean Toolkit Visual Impact with 5S, TPM & SMED at all sites High levels of engagement with site cross-functional teams Process stability being used to help introduced pull systems Gold Star standards using 6 Sigma set for heavy industry

10 The Lean Business Model Beware of the red triangle!! Original source: Professor Peter Hines Benchmarking Toyota s Supply Chain: Japan vs U.K. Long Range Planning, February, Volume 31, Number 6, pp , 1998, ISSN

11 The Roadmap to Sustainability Roadmap Reviewed July 2005

12 Roadmap 2: Multi-level Leadership & Deployment Leadership developed at every level of the organisation (7 Values) Clearly defined roles & behaviours for self-managed teamworking Re-deployed targets aligning OF / OC / NPI processes Full line of sight deployment locked into key processes

13 Lowering the Water Level: Roadmap 3 onwards

14 A Question: Evolution or Revolution?

15 A Revolution Journey

16 What is Shingo all about? The Shingo Model enables via the application of Principled based Behaviour to create Enterprise Excellence. What is Enterprise Excellence? Sustainable and Excellent Results, Driven by Sustainable and Excellent Behaviour. What are Principles? It is a foundational rule, the Shingo Principles represent the collective best practice Principles from todays thought leaders. What do we mean by Behaviour? Behaviour should always be described, observed and most importantly recorded. Why will developing behaviour give us Results? By measuring Behaviour we can balance our ability to develop both people and process using both leading and lagging measures.

17 The Model and its Principles Culture Values-What is important Beliefs-What is right and wrong Behaviours-How we demonstrate the above Behaviour Described, Observed and Recorded Stakeholders Purpose Process People

18 The Definitions PRINCIPLES Know Why SYSTEMS Know What, Who, When, Where ENTERPRISE EXCELLENCE? Sustainable and Excellent Results from Sustainable and Excellent Behaviours How? Creation of Ideal Behaviour WHO? Ideal Behaviour is required from the Leaders, Managers and Associates TOOLS Know How

19 Enterprise Excellence Journey Benefit Sustainable and Excellent results from sustainable and excellent results Time Explicit culture driven through principle based organisation Systems improvement as opposed to tools Mature systems driving results with implicit culture

20 Revolution: Autoliv

21 Evolution or Revolution?..both ways can produce the result

22 Want to Learn More?

23 Further Information For further information please contact - Professor Peter Hines: peter.hines@sapartners.com or +44 (0) or +44 (0) Or visit Please also feel free to apply to join my: Lean Business System Linked In group at: Shingo Prize Europe Linked In group at: _ug_hm