just do it! - lean accounting & lean management...

© Solomon and Fullerton 2007. All rights reserved. 1

Just do it!

© 2005 Neovista Consulting, LLC

Lean

2

Using Lean Tools in Human Resources to

Gain Respect of Associates

Jerry Solomon

Retired - Vice President of Operations –

MarquipWardUnited, Hunt Valley


Agenda

• What is Lean?

• How is Lean typically implemented?

• Lean Kaizen in Human Resources

• Current Status

• A CEO’s viewpoint

• $2+ billion annual revenues

• One of the largest capital

goods producers in the

Western Hemisphere

• More than 8,500 team

members

• Over 65 locations worldwide

• 19% compound annual revenue

growth for 21 years

• Well-balanced and financially

solid company

• Privately held by 400+

shareholders with an outside

Board of Directors

Barry-Wehmiller Cos.


What is Lean?

• “The organization and empowerment of leaders and associates to maximize customer value through the identification and elimination of waste throughout the entire value stream by way of process flow and on demand response to the customer.

• Strives to ensure customer value and sustained profitability through the relentless pursuit of perfection in terms of safety, quality, delivery and cost in product design, manufacturing, logistics, supply chain and all administrative functions.”

Ross Robson, Executive Director – Shingo Prize

6

What is Lean? Lean is…

• A culture of continuous improvement.

• Respect for people. Respect for the voice of the customer

and respect for those who do the work, who are “on-the-

spot” and are, therefore, the “world’s greatest experts” in

their work.

• A focus on improving the work process and not on blaming

people or creating fear.

• A culture of teamwork, shared responsibility and

ownership that cuts through organizational walls or silos.

• A culture that returns the joy to work.

Larry Miller, Lean Blog Posting, July 1, 2012

7

Employee Engagement


What is Lean?Elimination of Waste Respect for People

Utilization of

Lean tool kit

in pursuit of

perfection in

safety,

quality,

delivery, &

cost!

Inspirational

leadership,

profound

cultural &

organizational

change

required!


How is Lean Typically Implemented?

Elimination of Waste

Respect for People

Layoffs

Command &

Control

Silos & Local

Optimization

Middle Mgmt.

Struggling

“Managing”

Drive by

Kaizens

Focus on

Shop

Lack of

Alignment


How Should Lean be Implemented?

Continuous Improvement

Respect for People

No layoffs

C-Level

Support

Value Stream

Org.

Recognition,

empowerment,

coaching, &

training

Inspirational

Leadership

High Level VS

Mapping

Meaningful

Area

Narrow & Deep

Link all

Kaizens

Hoshin Kanri

11

Lean in Administration -

Human Resources

Lean Tools Apply

Everywhere!


Let’s Establish a Baseline

• What is the quality of reviews at your

company? (QUALITY)

• What is the on time % of reviews at your

company? (DELIVERY)

• What is productivity of the review process?

(COST)

• Is it a batch process or one piece flow?

• Is it a push or pull system?


MWU - JUST THE FACTS

• 280 reviews

• 142 days to complete a review

• On-time performance 13%

• Multiple handoffs for review

• 80% rework for re-writes

• No plan to have the reviews done on-time

• Need a new process


Lean in Human Resources

Associate Reviews by Month

0

5

10

15

20

25

30

35

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Nu

mb

er



Aging of Late Associate Reviews

0

5

10

15

20

25

1 - 30 31 - 60 61 - 90 91 - 120 121 - 150 > 150

Days Late

Qu

an

tity


Content of Evaluation Process

Machine Shop Associate Assessment & Performance Matrix

Rating

Primary

Work Center

5S Score

(If

Applicable)

Primary Work Center

Set-up Reduction

Score (If Applicable)

Primary Work

Center TPM

Score ( If

Applicable)

Cross Training and

Individual Flexibility

Continuous

Improvement

External operations

are not performed in

a consistent manner

to minimize setup

times. Setup times

recorded sporadically

TPM books

maintained

sporadically

No change, can only

operate one or two

machine tools and

unwilling to learn new

work centers or

processes

TPM books and

schedule

maintained daily

Exceeds

Expectations201 - 250

External operations

always performed

while the machine is

running, all setup

times accurately

recorded, operator

implements own

suggestions supported

by documented

improvements

Maintains daily

TPM books &

TPM tickets

provides

maintenance

input on needed

machine repairs.

Suggests

improvements

Always willing to

accept new

responsibilities.

Seeks opportunities to

learn new machine

tools and processes.

Totally flexible

Actively

implementing own

suggestions,

volunteers for

events whenever

possible

External operations

being performed while

machine is running,

operator provides

suggestions to reduce

setup times. Setup

times accurately

recorded

101-200

Does not offer

suggestions for

continuous

improvement and

has not

volunteered for

any events

Volunteers for

events actively

provides

suggestions for

improvement

Below

Expectations

Meets

Expectations

Can run multiple

machine tools, willing

to learn new work

centers or processes

0-100


Content of Evaluation Process

Rating

Average 5S

Scores of

Work Areas

Average Set-up Reduction

Scores Work Areas

Continuous

Improvement

Communication

Meetings Productivity of Area

Maintains status quo,

rarely initiates any

improvement

activities

Produces at same

rate, no improvement,

standard process

Exceeds

Expectations201 - 250

Supervisor initiating setup

reduction activities,

coordinating all available

resources to reduce setup

times, dramatic reduction in

setup times

Supervisor initiates

or leads 4 or more

activities per

quarter

Supervisor leads

weekly team

meetings, actively

promotes Lean

culture

Achieves greater than

a 10% improvement

during review period,

new processes

standardized

Supervisor leads

monthly team

meetings

Below

Expectations0-100

Machine Shop Supervisor Assessment and Performance Matrix

Little to no improvement,

limited supervisor

involvement, external setups

not taking place, setup

times recorded sporadically

Supervisor involved in setup

reduction, actively coaching

operators on setup reduction

techniques, setup times

accurately recorded.

Supervisor initiates

or leads 2 to 3

activities per

quarter

Supervisor leads

biweekly team

meetings

101-200Meets

Expectations

Achieves steady

improvement of 5% to

10% during review

period, new processes

standardized



5.2 Hours

144 - 174 Days

0.20%

Value Added Time

Total Production Lead-Time

Value Added Time to Total Production Lead-Time


JAN FEB MAR APR MAY JUN

Full Year

Total

Joe Smith

65

Total 5 5 4 5 5 6 65

% On-Time 100% 100% 100% 80% 95%

1 Doe Palm Walter Friedery Fuchs Stansbury

2 Smith Cunningham Luciano Faulkner Lin Johanson

3 Jones Carey Small Mathews Fields Brown

4 Wallace Coates Wahl Stock Hernandez Pryor

5 Roberts Koningisor Hampton Gobson Levy

6 Teres

PERFORMANCE APPRAISAL VISUAL BOARD

FY 2007




Gate Keeper: John Doe

Kanban Replenishment: Qty - 1 pc.

Card Return Location: John Doe's Office

Card 1 of 5 Associate to be reviewed: Jane Smith

Review due by: March

ASSOCIATE REVIEW KANBAN CARD


Current Status

• Decoupled development of people from

conversations regarding compensation

• Eliminated batch process and going to flow

• New Process

– Each person has responsible freedom in

development of their own career

– They set path, direction and frequency of dialogue

with leader who is their coach and mentor

– Flexible based on needs of individual

People Development Process

• Three lenses

– Job Progression Cycle

– Core Behavior Tendencies - DISC

– Generational Tendencies


• ACES Worksheet

• A conversation starter

• Completed at minimum once per year to guide annual development discussion

• Completed by leader and associate

• Three Measures:

– Alignment

– Capability

– Engagement

• One Multiplier: Strengths

Alignment

Capability

Engagement

Strengths


• SMART Goal Worksheet– Completed at minimum once

per year and submitted to CPD on your anniversary date• Specific: precisely what are you

going to achieve?• Measurable: is the goal

quantifiable?• Achievable: are you attempting

too much?• Relevant: does the goal seem

worthwhile?• Time-Based: Goal achieved by

when?

26

Primary Reasons for Lean Success

• “Lean brings out the best in people” 1

• “Lean gets leaders in touch with reality” 1

• Lean thinkers respect and value people.

– What else in your business appreciates over

time?

1. Jacob Stoller, The Lean CEO, p. 310


Sea of Inventory = Waste

Long

Set-Up

TimePoor

QualityLack of

training

Machine

Down-TimePoor

Scheduling

Sea of Excess Inventory, Manpower, Equipment

Tools Focus


AndonAndon

Culture Change:Involve people in continuous

improvement to eliminate waste,

organize in value streams, train,

empower, develop, give continuous

feedback and coach. Go to Gemba!

Heart & Soul Lean

J. Liker, Presentation to MWCMC, April 2006


Employee Engagement


Culture Video

Bob Chapman

https://www.youtube.com/watch?v=XLwS7vh9XbY

.

https://www.youtube.com/watch?v=XLwS7vh9XbY


The potential of our

companies is only limited by

our ability to effectively lead

and inspire our associates.

Achieving Principled Results on

Purpose

© Jerry Solomon 200532

For Further Information……

32

Available at www.wcmfg.com or Amazon.com

© Jerry Solomon 2011

Email:[email protected]

Winner of Shingo Prize

Winner of Shingo Prize

http://www.wcmfg.com/

just do it! - lean accounting & lean management...

Documents