HR is Critically Important to the Lean Transformation

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1 HR is Critically Important to the Lean Transformation 2014 Lean HR Summit with Jean Cunningham Building LEAN Beyond Manufacturing Managing Times Press, 2003 Shingo Prize, 2004 Productivity Press, 2007 Shingo Prize, 2008 Founder and president Lean accounting / lean business management / lean office pioneer Former CFO, Lantech, Inc Former CFO, Marshfield Door Systems 2 1

2 Toyota Production System Quality SAFETY Cost Delivery JUST-IN-TIME Continuous flow Takt Time Pull system JIDOKA Andon Poka Yoke Source: Toyota Heijunka OEE Standard Work Flexible manning system Kaizen 5S Stability (process, people) Mutual trust between employees and management 3 Lean Transformation Sequence Information Systems Human Resources Accounting 4 2

3 Keys to Success for Lean HR Acquire lean knowledge Engage management Recognize employees and managers as customers 5 Lean HR Transformation Consulting Consulting Analysis Analysis Transactions Transactions 6 3

4 7 8 4

5 9 10 5

6 11 Take action first steps HR Call to Action o Participate in kaizen events o Create culture of continuous improvement o HR! Use the lean tools Huddles Value Stream Map Optimize Information Support Change Eliminate Waste 12 6

7 Lean Tools Manage for Everyday Improvement Problem Time sheets continue to be filled out incorrectly Reprint payroll check due to error in number of hours paid New employee reported to work without taking drug screen test Performance reviews due from one manager are two weeks overdue Who Leslie Gregory Joshua Martha Root Cause New Hire training not consistently delivered TBD Information sent to new employees is extensive. Easy to miss a particular requirement Manager consistently late. Does not appear to value performance review process and deadlines Status Special onetime training to be given to all employees and new hire training to be enforced Conducting analysis to understand root cause of payroll check error Phone all new employees to ensure requirements are met prior to reporting for work Options being explored to identify repercussions for noncompliance 13 Staffing Capabilities Tom Nancy Kurt Mary John Alan SK 1 SK 2 SK 3 SK 4 SK 5 SK 6 SK 7 SK X 1. Tom is out today. How do I backfill him in all areas? 2. I have no one trained in skill 5. What do I do to fill the gap? 3. How can I use this to create a development plan for each member of the team? 14 7

8 Training Curriculum Level 1 Level 2 Level 3 Lean and Continuous Improvement Lean Essentials Lean in Practice el Business Process Value Stream Mapping el Managing for Daily Improvement Kaizen Hoshin Kanri Kaizen Prep and Follow-up Metrics el el el el Human Resources New Employee Welcome Legal Basics Payroll and Benefits Getting Started as a New Leader Setting Performance Expectations Reviewing Performance Progress Coaching for Success Coaching for Improvement Ethics el Sexual Harassment el Managing Performance Problems Succession Planning el el = elearning = Instructor Led Vid = Video 15 VSM Example 16 8

9 FY Objectives 4/29/2014 Road Map Strategic Initiatives 3 Year Strategic Objectives Target and Means Activity Lean Tools When Who On boarding Kaizen Sept Beth Approval matrix Just do it Sept 30 Ann Manage daily improvement Visual metrics Oct 5 Ross Performance Management Kaizen Nov 4-8 Beth Safety Kaizen Nov 10 Mario Strategies 1. Plunge into operations lean activities 2. Create a culture of continuous improvement 3. Attack HR waste 4. Focus on health & safety 5. Strive for talent acquisition & mobility 6. Invest in education and retraining 7. Streamline performance management process 8. Ensure compensation and benefits align 9. Institute regular formal communications 10.Become a consultative business partner 18 9

10 Lean Library Developing a Lean Workforce, Harris and Harris Toyota Talent, Liker & Meier Lean Human Resources, Jekiel Workplace Management, Ohno The Lean Turnaround, Byrne Lean Thinking, Womack and Jones The Goal, Goldratt Critical Chain, Goldratt JeanCunninghamConsulting.com 19 Questions & Answers A leader is like a shepherd. He stays behind the flock, letting the most nimble go out ahead, whereupon the others follow, not realizing that all along they are being directed from behind. Nelson Mandela As quoted by Linda A. Hill Harvard Business Review January 2008 JeanCunninghamConsulting.com 20 10

11 JCC Lean Business Management Lean Strategic Coaching Business Process Kaizen Events Lean Office Workshops Lean Executive Sensei Lean IT and IS Migration Lean Accounting Lean Financial Statements Lean Metrics Lean Human Resources 2013 by Jean Cunningham Consulting 21 Contact Jean Cunningham Phone: by Jean Cunningham Consulting 22 11

12 HR is Critically Important to the Lean Transformation 2014 Lean HR Summit Material is Copyrighted 12

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