Culture Change. Sustaining a Lean Enterprise Transformation? Presented by Industrial Solutions, Inc

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1 Culture Change Sustaining a Lean Enterprise Transformation? Presented by

2 Quick Diagnostic Answer the questions on the sheet in front of you. Calculate your score 10 minutes

3 Why is Change So Hard? We focused on the externals of lean tools We missed the underlying dynamic of how an organization thinks and processes information

4 Bad Assumptions People function on a rational level Change is good and automatic Company culture is easy to changer

5 5-S QCO Cells Pull Culture

6 Transformation Keys Real change occurs at the process level when people start to think differently Self interest must be linked to clearly defined key performance indicators (KPI) Performance must be measured in continuous, rapid feedback loops We have to create a culture of learning

7 C E O Mission Statement Strategic Objectives Strategy Deployment Future Present First Line Managers/Supervisors The Processes S C

8 What Changes Need to Occur? Management focus View of labor, reward and compensation Organizational structure/chain of command Methods of evaluating decisions/results Data collection and analysis

9 In Other Words The Culture is going to be affected if you try to implement lean manufacturing

10 What Is Culture? The set of shared attitudes, values, goals, and practices that characterizes an institution or organization

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14 What is the Evidence of Your Culture at Work People s view of their work What is important to management How the place looks

15 How Do You Change a Culture? Strategy and Alignment Vision Communicate and motivate Empower employees Implement Transition to a Learning Organization

16 Strategy and Alignment Culture change requires a strategy and top level commitment or your efforts will fail Culture change is hard and takes time. Only a long term strategy will keep you on track.

17 Commitment and The Management Team has to be Alignment pulling together Are you going to really own the new model Are you committed to each other s success The people will listen to what you say. but they will only believe

18 The Lean Enterprise Vision Primary Goals Creating Flow along Value Streams in response to customer demand Eliminating Waste in the value stream Encompassing a comprehensive approach to the entire organization - Changing the Culture

19 A Value Stream Flows Counter To the Current Culture Flow in a value stream is fundamentally different than the processes in traditional organizations that are organized along functional boundaries. Most of the effort in traditional companies is expended in managing the interface between the boundaries.

20 Now Create a Vision Without a vision.. the people will perish

21 A Lean Enterprise Looks Different Defining The Vision Workplace Order and Cleanliness JIT Production, minimum waste Superior Quality Visual Management Continuous Improvement Culture Empowered Teams aligned with strategy

22 How Do You Change a Culture? Strategy and Alignment Vision Communicate and motivate

23 Communicate and Motivate People must believe there is a need for change Training Communication Awareness Metrics

24 Communication Tools Employee meetings Written media Continuous displays Embedded messages

25 Effective Communications

26 How Do You Change a Culture? Strategy and Alignment Vision Communicate and motivate Empower employees

27 Empower The best companies give all employees hours of training every year Management needs to develop a comprehensive training plan based on the lean strategy Let people be fully involved in change

28 How Do You Change a Culture? Strategy and Alignment Vision Communicate and motivate Empower employees Implement

29 Implementation There is not one right way You have to adapt to your own needs The goal is waste elimination, not figuring out a perfect way to get there!!

30 Implementation Key on a strategic value stream Train and empower the key players Conduct Kaizen Events to jump start activity Find a simple way to measure Sustain activity continuously

31 Strategic Value Stream Quickest way to affect the bottom line Focuses your resources while maximizing benefits Answers many questions about difficult issues

32 The Maturity Path Standardized Work, Visual Control Cellular Flow Synchronous Production Pull Systems, Supply Chain Administrative Systems Value Stream Costing

33 Deploy the Strategy Develop a Plan for Enterprise Conversion Establish a baseline with a good Assessment Tool Implement (Deploy the Strategy) Review Status Periodically

34 Management Time To really change the culture will require full time involvement! Participating in training Participating on kaizen teams Removing barriers Walking the talk

35 How Do You Change a Culture? Strategy and Alignment Vision Communicate and motivate Empower employees Implement Transition to a Learning Organization

36 A Learning Organization Identified as the key trait for a successful company What does that mean?

37 A Learning Organization The distinctive traits Systematic problem solving Systematic waste elimination Direct observation of processes High agreement on goals and objectives

38 Systematic Problem Solving Plan-Do-Check-Act A3, 8D, 5-Y, 12 Step, etc., etc. Just do it!

39 Systematic Waste Elimination 7 deadly wastes Why can t we see it?

40 Direct Observation Activities, connection and flows Point to point relationships Deep understanding of what is really happening in the organization

41 High Agreement What we do and how we do it Management team must be aligned and pulling for each other People will detect any misalignment and will revert to existing norms

42 Concluding Statements Nothing of any significance will ever happen without the commitment and drive of top management. The landscape is strewn with the wreckage of companies that failed to understand the necessity of culture change. Lean Manufacturing is as much a state of mind as it is a process for excellence in manufacturing

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