Traditionally companies working on a Lean Transformation start by implementing 5S into their workplace. They spend endless hours patrolling and scoring only to find things slipping back to the way it was before. Why do 5S projects fail? And, What does it take to successfully implement a 5S program that will truly continuously improve over time?
5S projects are seemingly simple, companies want to be neat, clean, visual, and safe. Managers like the impression it gives customers when they walk through the plant, but most companies fall into a trap. They believe that 5S is easy and that it will be implemented swiftly and without problems. 5S can be easy if it is done correctly, not one S at a time, not one department at a time, but with a properly executed strategic approach to a high performance visual workplace.
5S needs to be employee driven! No ifs, ands, or buts. If your employees are not involved, engaged, and motivated to participate in 5S you may as well work on something else. When employees own the 5S implementation you will find ways to not only clean up your workplace and make visual controls, you will also find that the employees will want to come up with new ideas for improvements. Try implementing an employee suggestion system along with your 5S efforts and use this system as a driver for continuously improving the workplace. It is also important to remember implementing 5S or Lean ultimately has to result in a change in human behavior. Not only the front line employees but also the management, think about the many years of habits that are built up. If management is always worried about production numbers then that is where your employees will focus. There is a fine line to balance production and lean, but it's well worth the effort. What is the message your management staff is sending the shop floor? Do you have a strategic plan for your 5S and Lean implementation? Have you communicated the plan, and walked the walk?
In my next post I will break down the 2 phases to a 5S implementation.
Monday, July 20, 2009
Friday, June 5, 2009
Lean Transformation Article
I just had an article published by Utah Valley Business Q Magazine, outlining 5 things your company should know about Lean Transformation. Check it out, it is on page 20.
http://utahvalleybusinessq.com/summer2009/
Kelly Davis, MEP Utah
http://utahvalleybusinessq.com/summer2009/
Kelly Davis, MEP Utah
Thursday, April 23, 2009
Training & Thoughts About the Future
Over the past month I have participated in several different Lean Transformation and Leadership training events. A month ago I spent 3 days in San Diego working with SME on The Leadership Series. The next week MEP Utah announced a week long training session with Time Wise Solutions (Lean Consulting), and I have spent the past 5 days in Orlando at the NIST MEP National Conference. Needless to say I am sitting in the Orlando International Airport waiting for my flight home thinking about all of these new tools and approaches to the same old problems. Over the past 30 days I have invested more than 100 hours to training. What has it taught me? I have worked with professionals from SME, MEP, & NIST from all over the US. What have they taught me? I have heard various motivational speakers and listened to more than a dozen different industry experts tell me about their approaches and techniques. So what has changed for me?
First. What has it taught me? I think about all of these different trainings and approaches and start to break them down it seems like a common thread runs throughout. The US is changing, but we have faced similar problems before. The biggest challenge is getting alignment and courage to think outside the box while still focusing on our core business strategies. Going back to those key things that have helped companies be successful for the last 50 years. The biggest obstacle is CHANGE. Everyone needs to take a good hard look at what's going on around us, are we fully taking advantage of these great opportunities in the current market. At the MEP Conference one of the speakers talked about the similarities of the current economic downturn and compared it to the early 90's. The fact that less than 100 out of a 1000 people in 1991 had a computer or a cell phone. Are we truly looking for the next markets and innovations that will help us grow? I think the amount of potential is limited only by our fear of failure. But my opinion is failure is not an option, we need to focus on the long term even if we have short term losses. It may take a few swings to hit a home run; you may strike out for several games in a row, before hitting the grand slam. But if you are never willing to go up to bat you never have the opportunity to be apart of the success. Think about it, what will be the next iPod or World Wide Web... You can make history and help define the future, but whether it is you or someone else. The future most definitely will include a lot of change. Winston Churchill said, "To improve is to change, to be perfect is to change often.”
Second. What have they taught me? The last month has been full of inspiring content and industry professionals sharing thoughts and ideas for improvement. Improvements in leadership, improvements in capabilities, and improvements in tools, techniques, and approaches. I have learned from successes and failures of these people and feel very lucky to have had the opportunities to listen to their advice, stories, and lessons learned. I have a lot of information to digest and the new challenge is to find ways to apply this new knowledge to the companies and services I work in. It will take a few weeks to get a good hold on all of the changes I will make but here are a few of the key elements I will be working on. Implementing Lean isn’t enough, it is more about culture and strategy then it is about Lean tools and techniques. The general feeling is we can’t even call it Lean anymore, it more like Transformational Thinking or as MEP might call it 20/2o Thinking. It is about reducing costs and being competitive, but more importantly setting us up for the future. Future innovations and improvements that will define the future and make us part of history. Another topic of training; Leadership. Leadership is more than a title or job; it is a state of mind, a vision to see the future and the details it takes to get there. I think they both work hand in hand. We need Strategic Leadership, Transformational Thinking, Innovation, and a more effective approach to Quality, Cost, and Delivery. I will work hard over the next few months to integrate these new thoughts into my presentations and training materials, hopefully even enhance them. Bottom line we need more Leadership, less management, more innovation to create less competition, a strategy that will allow us to win, and create sustainable growth.
Lastly. So what has changed for me? I have realized the only thing stopping us from success is action. Everyone is stalled out with the current situation and economic problems. I have realized that I am part of the solution, and I need to work harder and smarter than ever. I need to find new ways to help companies reduce costs, create capacity, and find growth opportunities. I am motivated and engaged! The future is bright and full of opportunity. Are you going to be part of the solution?
First. What has it taught me? I think about all of these different trainings and approaches and start to break them down it seems like a common thread runs throughout. The US is changing, but we have faced similar problems before. The biggest challenge is getting alignment and courage to think outside the box while still focusing on our core business strategies. Going back to those key things that have helped companies be successful for the last 50 years. The biggest obstacle is CHANGE. Everyone needs to take a good hard look at what's going on around us, are we fully taking advantage of these great opportunities in the current market. At the MEP Conference one of the speakers talked about the similarities of the current economic downturn and compared it to the early 90's. The fact that less than 100 out of a 1000 people in 1991 had a computer or a cell phone. Are we truly looking for the next markets and innovations that will help us grow? I think the amount of potential is limited only by our fear of failure. But my opinion is failure is not an option, we need to focus on the long term even if we have short term losses. It may take a few swings to hit a home run; you may strike out for several games in a row, before hitting the grand slam. But if you are never willing to go up to bat you never have the opportunity to be apart of the success. Think about it, what will be the next iPod or World Wide Web... You can make history and help define the future, but whether it is you or someone else. The future most definitely will include a lot of change. Winston Churchill said, "To improve is to change, to be perfect is to change often.”
Second. What have they taught me? The last month has been full of inspiring content and industry professionals sharing thoughts and ideas for improvement. Improvements in leadership, improvements in capabilities, and improvements in tools, techniques, and approaches. I have learned from successes and failures of these people and feel very lucky to have had the opportunities to listen to their advice, stories, and lessons learned. I have a lot of information to digest and the new challenge is to find ways to apply this new knowledge to the companies and services I work in. It will take a few weeks to get a good hold on all of the changes I will make but here are a few of the key elements I will be working on. Implementing Lean isn’t enough, it is more about culture and strategy then it is about Lean tools and techniques. The general feeling is we can’t even call it Lean anymore, it more like Transformational Thinking or as MEP might call it 20/2o Thinking. It is about reducing costs and being competitive, but more importantly setting us up for the future. Future innovations and improvements that will define the future and make us part of history. Another topic of training; Leadership. Leadership is more than a title or job; it is a state of mind, a vision to see the future and the details it takes to get there. I think they both work hand in hand. We need Strategic Leadership, Transformational Thinking, Innovation, and a more effective approach to Quality, Cost, and Delivery. I will work hard over the next few months to integrate these new thoughts into my presentations and training materials, hopefully even enhance them. Bottom line we need more Leadership, less management, more innovation to create less competition, a strategy that will allow us to win, and create sustainable growth.
Lastly. So what has changed for me? I have realized the only thing stopping us from success is action. Everyone is stalled out with the current situation and economic problems. I have realized that I am part of the solution, and I need to work harder and smarter than ever. I need to find new ways to help companies reduce costs, create capacity, and find growth opportunities. I am motivated and engaged! The future is bright and full of opportunity. Are you going to be part of the solution?
Thursday, March 19, 2009
Lean Leader's Guiding Principles
Lean Leader's Guiding Principles is the top 10 things the person driving Lean should be doing besides implementing Lean tools. Focusing on success.
1-Get Involved – If you are driving the Lean efforts in your company you need to be involved in all aspects of the Transformation (kaizen events, coaching/mentoring, training, measurement system, audits, etc…).
2-Go & See – You should be going to where the action is. Walk the shop floor, talk to employees about items that are causing them pain (at a minimum of twice a week). You need to also encourage the management team to “Go & See.”
3-Tie Lean Goals to the Business Goals – If you are going to drive the efforts you want it to be important to the management team. If you tie the Lean goals to the business goals it gives it visibility and focus. Both are very important to the success of the Lean Leader.
4-Promote Lean Activities – A Lean Leader must get everyone involved in the Lean initiative. Communication of the plan is key to your success. Everyone should know how to get involved and the expectations. Top Down and Bottom Up.
5-Listen – You need to listen to the people inside your organization. It is very important for you to focus on solving problems and without understanding the problem completely you may find an up hill battle working towards the solutions.
6-Set the Example – Use the Lean principles in your daily work and talk about how it is helping you to be more efficient. The more you use the tools the better you will understand how to apply them in other areas of the business.
7-Inspire Others – Help to inspire others in the organization to get involved. Take advantage of opportunities to publicly reward or acknowledge success. Work with management so they understand the importance of them being involved.
8-Continue your Lean Education – It is important to keep a fresh outlook on your Lean Implementation. If you continue to educate yourself it will make it easier to find new ways to eliminate waste and improve company performance.
9-Stay Aligned – Don’t be afraid to use outside resources to continue down the Lean path. There is a lot of value in experience and finding a good resource to help you succeed will only enhance your efforts. As time goes on you will find problems you don’t know how to solve or tools you don’t understand. Don’t be afraid to admit you need help. Bringing in the right person will help you save creditability.
10-Audits & Direction – Remember to audit your progress and measurement system on a regular basis. You have to make sure you stay aligned with your business goals and objectives. You should have a good idea of where you are at all times, and report back to the management team on your progress as often as possible. It is important to show results and value from your efforts.
Wednesday, March 4, 2009
Lean & The Recession
FINDING HOPE, despite the Doom & Gloom
With everything going on in the Global Economy, the US Economy, and on our own front door steps you don’t have to go far to hear about the doom and gloom of today’s businesses. I visit dozens of companies each year and have never heard so much bad news. People everywhere are losing their jobs, businesses are closing, and top executives are shifting their companies into survival mode. With everything that is happening around us what choice do we have? We have to find a way to survive, but is there another strategy that could give us long term hope, despite the short term problems most companies are facing.
Most companies are working on one of two things; first they are just trying to survive while they wait for the worst to be over. Second they are looking for ways to come out of this recession in a position to dominate the market place and grow. More and more companies are putting freezes on hiring, and spending. However there are a few companies investing in growth and training for the future. If you look at Toyota and the example they set for world class manufacturing they are still running plants, training employees, and getting ready for the next wave of growth opportunities.
Let me ask you one question. When do you feel the pain of investing in your company and its employees? Is it when you are busy working extra hours to get things done or when you are paying straight pay and have time to work on the improvements? How many days do we spend saying if I only had time I would do this or work on that. The truth of the matter is many companies have time right now, the question is do they have the commitment and courage it takes to work on improvements and develop business strategies for the future when times are bad. This is something that every company will have to answer for themselves, but let me give you some input that could possibly help with this ever so tough decision.
Lean Transformation isn’t a new concept; US companies have been implementing Lean and working towards eliminating waste since the 80’s. I think that everyone sees the value and understands why they need to improve. What I don’t think is so clear is why companies fail at implementing Lean? and Why does it takes so long to implement? I will take a look at each one of these questions to try and clarify why now is the right time to implement Lean or even reinvent your Lean efforts.
Why do companies fail at Lean Transformation? It usually ends with, “You just don’t understand my business.” Another common response I hear is, “We can’t afford to shut down the line to work on the Lean improvements.” Does your company have a compelling reason to change? Have you developed a plan, tied it to your business goals, and created long term sustainable results? Companies spend hours of time with non key employees working on surface problems and with basic Lean tools such as 5S, TPM, and waste elimination. They even have the occasional Kaizen event, and team focused improvements. But are we truly training everyone in the organization on the Lean concepts, tools, and creating the culture that it takes to make this part of everyone’s job. Have you taken the time to add Lean to your employee training programs, included it in Job Descriptions, and invested in making Lean part of the way you do business? Or is Lean truly a buzz word that you use to keep upper management or the corporate office from harassing you about improvements in your business. If Lean is truly something that changes the way you do business and is part of everyone’s job, then shouldn’t you invest time in all key employees and work on all parts of your business? Lean is not just a way to increase manufacturing efficiency. It is a way to grow your business and delight your customers. I know right now seems like the wrong time; but right now you have excess capacity, excess manpower, and a huge opportunity to gain market share and come out of this recession leading your industry.
Why do Lean implementations take so long? In the US you can find articles about Lean everywhere, each one with its own twist on the approach or timeline. Typically the full results show up 2-3 years down the road, with moderate gains and pockets of efficiency along the way. Despite most companies’ best efforts they don’t look across the organization and at all value streams to make improvements that affect the company in a positive way. Most of the time a group of people are trained and we send them back to the manufacturing floor to implement what they have learned. First problem with that is it is the implementation completely depends on how well those employees understood the training. By changing the approach to education you can give your company a dramatic advantage. Using a train and do approach gives your employees some hands on experience to solve the problems and eliminate waste in their areas. Just kaizen events alone will not get you true Lean benefits, you have to inspire your employees to submit ideas and become engaged in the companies’ efforts to improve. I have yet to see a company that read a book and found success implementing Lean. The second problem is sometimes we are so excited to work on one area of the company that we don’t see the full potential of the improvements we are making. Improving one process of a manufacturing line may only give you small improvements, and it may not impact the bottom line at all. In some cases you see a dip in profits because you have invested in training and there is a learning curve associated with the improvements. We haven’t implemented Lean; we have created a pocket of efficiency. With out Value Stream and an organizational wide focus we can’t predict the benefits from our efforts. It is very important to have a Lean Transformation plan, Strategic Leadership to execute that plan, a measurement system to monitor results, and a culture that supports company wide improvements. The decisions to improve those areas of your company that are critical are tough. It is painful to stop a machine that makes you money. It is painful to take those key operators away from their daily duties that make you money. I understand and trust me I have had some tough decisions myself. Directing companies and helping them make the best decisions possible for the future takes a proven approach. Companies have found great success using external consultants. They bring a proven systematic approach with proven results. Don’t miss your chance to position your company to dominate the market place. As companies go out of business and the economy recovers customer demand will go up. Who will sell products to those customers? Less competition, more market share and revenue.
If you are interested in a Lean Transformation audit or a Business Assessment, send me an email or give me a call. I would be happy to help you structure a plan and show you how to execute it. This is the time to capitalize on Lean improvements; you have the time and resources to get it done faster than ever and make this part of how you do business not something extra. I challenge each of you to go around your company and look for opportunities for improvements? Look at your competition are you the one waiting around? Go and see for yourself if the time to get Lean is now. If so get started today, tomorrow never comes… I truly believe failure is not an option; Utah will come out of this recession stronger than ever.
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