Construction as Lean Enterprise. John Shook Chairman & CEO Lean Enterprise Institute

Transcription

1 Construction as Lean Enterprise John Shook Chairman & CEO Lean Enterprise Institute Copyright Copyright Lean Lean Enterprise Enterprise Institute. Institute. All rights All rights reserved. reserved. Lean Enterprise Lean Enterprise Institute Institute and the and leaper the leaper image image are registered are registered trademarks trademarks of Lean of Enterprise Lean Enterprise Institute, Institute, Inc. Inc.

2 Paul O Neal Objective of talk: I want to communicate a few ideas in a clear way that might be helpful to you 2

3 LEI: Founded in 1997 based on Seminal MIT Research that Identified Lean Production as the New Industrial Paradigm

4 Lean 4

5 LEAN Lean Production was named 25 years ago MIT Study Machine That Changed the World Toyota Production and Management System 5

6 Interlocked Management Innovations Product and process development. Supplier management. Customer management. Fulfillment, order through production to delivery. General management. 6

7 LEAN GM Framingham Toyota NUMMI Assembly Hours per Car Assembly Defects per car Inventory 2 weeks 2 hours 2 days 7

8 Lean Transformation Personal & Organizational New United Motor Manufacturing, Inc. NUMMI built its first car in December 1984 and its last in April

9 The Worst Factory in the World Certified Worst! 9

10 The Worst Quality the Worst People 10

11 From the Worst to the Best Certified by: ü UAW ü GM ü Toyota ü MIT Certified!

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13 Lean is all about Process People Leadership Waste Elimination Customer Value

14 Lean is Social & Technical 14

15 Lean as a Social & Technical System Technical

16 Increase Value and Profit Through Improving the System and Methods of Work Cost Plus Thinking Cost + Profit = Price Lean Thinking Profit = Price Cost

17 The Pie Waste, Value and Non-value Creating Work Value-creating work Work Motion Waste Incidental work (Non-value-creating work)

18 Lean as a Social & Technical System Social

19 People & Process aligned by leaders to achieve purpose

20 Becoming Lean means aligning: Process People Purpose to create value

21 What is Lean Transformation? Enterprise transformation is the process of an organization shifting its business model to a desired future state. A lean transformation requires learning a new way of thinking and acting 21

22 Lean Transformation Enterprise transformation is the process of an organization shifting its business model to a desired future state. A lean transformation requires learning a new way of thinking and acting characterized not by implementing a series of steps or solutions but addressing key questions of purpose, process and people. 22

23 Lean Transformation Framework How to improve the work? WHAT is our PURPOSE? What situational problem do we need to address? What leadership behavior and management system do we need? How to develop the people? What is our BASIC THINKING?? 23

24 Lean Transformation Framework Animation 24

25 Where it came from 1. Reflect on failure modes over the years of observing companies 2. Observe what master sensei look for when visiting companies 3. Reverse engineer the thinking that went into the development of the TPS house 25

26 You will spend most of your energy in the middle How to improve the work? WHAT is our PURPOSE? What situational problem do we need to address? How to develop the people? What leadership behavior and management system do we need? What is our BASIC THINKING?? 26

27 But, today we will focus on the top and bottom and how to connect them How to improve the work? WHAT is our PURPOSE? What situational problem do we need to address? How to develop the people? What leadership behavior and management system do we need? What is our BASIC THINKING?? 27

28 What is a Problem? Where you want to be Gap = Problem Where you are 28

29 What s Critical? The scientific mind does not so much provide the right answers as ask the right questions. Claude Levi-Strauss You can tell whether a man is clever by his answers. You can tell whether a man is wise by his questions. Naguib Mahfouz (Nobel Prize Winner) We started with that fundamental question 29

30 What s Critical? We started with that fundamental question: Why does Lego exist? LEGO CEO Jorgen Vig Knudstorp 30

31 Transformation Question #4 4. What management system and leadership behaviors are required to support the new way of working? Ø Have you designed the management system and do your leaders exhibit the needed behaviors (to develop capability to do the work to accomplish the mission)? How to improve the work? WHAT is our PURPOSE? What situational problem do we need to address? How to develop the people? What leadership behavior and management system do we need? 31

32 Paul O Neill Paul personally learned and led the introduction of the Alcoa Business System, based directly on the Toyota Production System. Pursued growth by improving the work: speed of machines, amount of energy used, number of people needed per task, waste material generated, and length of time on processes. And, especially à safety.

33 Lean Transformation at Alcoa Safety I intend to go for zero injuries. Until I said the target was zero, we didn't have a problem. Part of the role of leadership is to create a crisis."

34 Changing Work Habits You can t order people to change. That s not how the brain works. If I could start disrupting the habits around one thing, it would spread throughout the company." Net income grew 5xs; market cap grew $27 billion. It became one of the safest companies in the world. Injury rate reduced by 50 percent by By 2000, it was five times safer than 10 years earlier.

35 Steve Spear Remember this: 1) Predict Declare what you think will work 2) Test Discover what was wrong 3) Adjust, Learn Discover why and repeat 35

36 Lean Transformation at Ford Product CEO Alan Mulally came from Boeing where he was an avid student of the Toyota Production System When he arrived in 2006, Ford was losing $17 billion He took out a $23 billion loan and divested brands to simplify product portfolio And put ALL the funds (!) into product And supported the transition to Lean Product & Process Development

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38 The Twin Responsibilities Get the Work Done and Develop People At the Same Time! 38

39 Lean Thinking Principle of Just Enough Practice of Questioning and Investigating 39

40 Lean Thinking Principle of Just Enough Practice of Questioning and Investigating Managing Differently

41 Lean Management "Lean management is less about providing the right answers than asking the right questions and investigating to learn and find effective ways to move forward. 41

42 The Heavy Lifting WHAT is our PURPOSE? What situational problem do we need to address? Improve the work Develop leaders and management system Develop the people What is our BASIC THINKING?? 42

43 Transformation Question #5 5. What basic thinking, mindset, or assumptions underlie this transformation? Ø Do you understand the current basic thinking (mindsets, assumptions, as well as values) and grasp its impact on the organization and its culture? Ø What are you going to do to change the basic thinking (and culture) in desired directions? How to improve the work? WHAT is our PURPOSE? What situational problem do we need to address? How to develop the people? What leadership behavior and management system do we need? WHAT is our BASIC THINKING? 43

44 Lean Transformation Change Culture First Change System First It s easier to act your way to a new way of thinking than to think your way to a new way of acting. Where Do You Start Either? Both at once? 44

45 Thinking Production System If some problem occurs in onepiece-flow manufacturing then the whole production line stops. In this sense it is a very bad system of manufacturing, but T. Minoura, Toyota 45

46 Thinking Production System If some problem occurs in one-piece-flow manufacturing then the whole production line stops. In this sense it is a very bad system of manufacturing. But when production stops everyone is forced to solve the problem immediately. So team members have to think, and through thinking team members grow and become better team members and people. T. Minoura, Toyota 46

47 Lean Tools and Lean Learning The tools bring obvious mechanical or tangible benefits. They are also frameworks to develop people, and make it: easy to see problems easy to improve easy to learn from

48 Different Tools, Similar Purposes 48

49 Steve Spear Remember this: 1) Predict Declare what you think will work 2) Test Discover what was wrong 3) Adjust, Learn Discover why and repeat 49

50 Design of Work Experience 50

51 Paul O Neal Conclusion of talk: I hope I ve given you a few ideas you can act on. 51

52 Martin Luther King If a man is called to be a street sweeper, he should sweep streets even as a Michelangelo painted, or Beethoven composed music or Shakespeare wrote poetry. He should sweep streets so well that all the hosts of heaven and earth will pause to say, Here lived a great street sweeper who did his job well. 52

53 Getting the Work Done and Developing Capability Standard TARGET Actual CURRENT Andon Apply tools as needed Value Creating Worker - Signal the Problem Together GTS, ID root causes, decide on countermeasures Manager - Immediate Response Lean leaders establish target conditions and processes to engage everyone in identifying and responding to problems and setting challenging new targets. 53

54 Lean Transformation Factors Top management stance is: q Leads q Supports q Negative q Indifferent 54

55 LEAN Lean Production was named 25 years ago. MIT Study Machine That Changed the World Toyota Production and Management System Lean is an approach to achieving purpose and solving problems, at every level Does not mean downsizing or simple cost-cutting Ø LEAN à LEARN Ø Improve à Sustain 55

56 Who We Are Website lean.org Education Over 300,000 Public Workshops members Online Workshops Free webinars On-Site Training Co-Learning Partnerships In-depth case studies Extensive list of Faculty and Associates Mission: Make things better through Lean Thinking and Practice Founded in 1997 by Dr. James Womack. Non-profit (501c3) education and research institute based in Cambridge, MA. Learning Materials Summits, Speaking Engagements and Community Gatherings Fostering Lean Throughout the World Lean Global Network Healthcare Value Network Public Services Value Network 56