What do the 4P's have to do with Lean?

As I continue to share my thoughts on successful Lean Implementation across the U.S as a trainer, I often get a response that is common in various industries that aren't manufacturing related.    When I share my wisdom with folks within my sessions, its based on how I was taught at Toyota by the Japanese trainers and my 10 years experience on the production floor at in various roles.   So of course my learning is manufacturing based but it can be translated.    The response I get often  during a session is "Ah! this is great stuff, but I don't work in manufacturing so I don't think it will work for me unfortunately".   As a trainer is my responsibility to eliminate this question and translate the "thinking" to any organization.

If you think back when Taichii Ohno developed the Toyota Production System(TPS) it was basically a set of "tools" or "countermeasures" to help them be more effective, efficient and develop people.   I chuckle inside when I tell folks that not ALL the tools worked even within the walls of Toyota.   It's not the tool that is the important part really, its the "thinking" behind the tool that I try and translate.

What I have found there are several essential elements to Lean and how to translate it to any organization regardless of the product or service.   I call these the 4P's.   Similar to Jim Womack's 3P's but I'm adding one more.

So when people say to me, "this is just for manufacturing", I look at them and ask a few questions.

1.  Do you have a purpose to your organization?
2.  Do you have people in your organization?
3.  Do you have processes that create some type of output or service in your organization?
4.  Do you have problems within your organization?

So when they answer "YES" to all these questions above, I tell them they can implement the "thinking processes" to this thing we all call LEAN.  See sometimes the labeling of what we are doing often skews the thinking behind the tools and we tell ourselves "it wont work in our environment".  My thoughts are, "you can't think"?  What do you mean it wont work?   I begin to differentiate the tools from the process or thinking behind it.   Then the light bulbs often turn on.

Let's look at each one briefly!  You will have to come to my classes to dig deeper! :)

Purpose
When I think about purpose, I think about True North.   What is True North?  For me its a guiding beacon that continues to give me direction as a company and leads the company to successful thinking that fosters good leadership.   An example that guided us at Toyota was - Customer First thinking, making the highest quality product, at the lowest cost, with the shortest lead time, in the safest manner, all while respecting people.  This cut across all our key performance indicators as a company and it was an evolutionary statement.   We never got there because if we did we raised the bar and improved.   Purpose to me is why you are doing business!

People
When I think about people I think about the most important asset in your organization!  It goes on to say in the Toyota Way Values book that they (your people) can determine the rise and fall of your business.   If we don't invest in our people then we are missing out on the extraordinary brainpower they have to make a difference.  It is our job as leaders to develop their thinking everyday at the gemba by asking the right questions.  People are the heart and soul of lean thinking and without their buy-in, engagement, involvement, and understanding of how it ties to purpose and alignment of their work; then it will be short term gains at best.   As we all know the infamous "flavor of the month" sets in.  I remember when I was promoted into management at Toyota my trainer said to me, "Tracey san, do you realize that 50% of your job now is to develop your people"!  I'm here to tell you this is KEY!

Process
Do you realize as human beings that our lives our centered around processes or routines?  When you get down to it everything we do has some type of process to it.  We are creatures of habit.  Just to get to my blog there was a process for you to follow.  To get up everyday and get ready for work you have a process.   If there is an output created then there is a process involved.   It is our role as a leader to document these processes and standardize them so your people understand the expectations.   As Taichii Ohno says, "without a standard there can be no kaizen!".   So standards are just the processes we do.   I agree we may not have the same way to do them, but as a leader you must create the best known method in order to gain consensus and buy-in (as discussed above).  Then if there is a better way we improve.   You do not have to manufacture anything to have processes.   I can value stream for you going to the grocery store and all the waste involved. :).   Please understand that with a solid purpose, engaged people, and documented processes sets up beautifully to recognize the abnormality; which takes us to the last P.

Problems
When we have the ability to recognize abnormality at a glance we are light years ahead of most organizations.   I often ask the question:  How do you know you have a problem?  I often hear, "well it happens a lot".   I can remember once saying that to my Japanese trainer.   He replied, "Oh, a lot I do not understand, please explain".   This was his way of saying please do NOT make assumptions if you don't have the facts.  What is a lot?   If we don't have documented standards where we can see abnormality the it leaves us to guess guessing leads to symptom fighting.  It also tends to remove the ability to hold our people accountable for their actions.   Once the abnormality is discovered then we apply PDCA (plan do check act) thinking in the form of the 8 step problem solving process to eliminate the gaps.  To me, problem solving is the glue that makes it all stick together!  Without the 4P's you probably have a fire hose on your back.  Just a guess! :)

So if you have any doubts that lean is just a manufacturing based methodology, then I would like to challenge you to think differently about the thinking behind lean and that it can be translated into ANY organization.  I promise!  
Until next time,
thetoyotagal
Tracey Richardson

How to translate waste to cost - My 1 second lesson!

So as many of you know, I was blessed with the opportunity to learn lessons from my Japanese trainers during the start up phase at TMMK (Toyota Motor Manuf KY) in 1987-88.   I was in production and we had to determine many things ahead of time in regard to standards, 5S, work instruction, and visual controls in order to meet the needs of our customer which was the Assembly shop.   Each of our groups were assigned a trainer or two depending upon the size and they were there to mentor us every step of the way.   At the time I really didn't think it was so interesting or how priceless their presence really was, they could be very annoying and deep down you wished you could have hid from them.  They seemed to ask WHY all the time- go figure!. :) 

  Looking back almost 24 years later I didn't realize how special those times were and if I had to do over again I would see it through different eyes- meaning "picking their brains" as much as they would let me.  One of those famous hindsight things we all think about after the fact.  Ah! to life experiences!

 Their actions and way of thinking did rub off on me and has contributed greatly to the sensei I've become today and how I've led and learned my whole career!  I can't begin to thank them for their time and patience they dedicated to our learning.
There is one lesson today I would like to share with you that really opened my eyes to how important the smallest actions are within your daily processes/work and how that translates to the company long term sustainability and also how can learn to do business.

Let's call this the 1 second lesson:

I can remember this vividly as if it was yesterday because it was a moment in time where the lightbulb came on and I was only 19 years old.  This lesson defined how I looked at things after that moment.  So if know me personally you may say it was the start of my obsession with seeing "muda" or waste. :).  If you have been in any of my sessions before you have heard this story.   I speak about it during my morning Culture session on Day 1.   This story was about our culture and how we were taught as individuals to think and how it benefited us in our work and ultimately the company.  They valued our thoughts on a minute to minute basis!

So one day our trainer gathered us together and said, "everyone, I have challenge for you"!  We were somewhat excited yet nervous regarding what expectation he may put upon us; remember their role was to get us to do what were didn't think we were capable of.  Similar to my role now as a sensei!

   So he requested us to all look for 1 sec of waste in our process, for me when he said that it was like a deflated balloon feeling.  I was saying to myself inside "Is that all"?  "sheesh"!!  "Who really cares about 1 sec?"  So he sensed we didn't share the same passion for the 1 second as he did so he stopped and explain WHY it was important.   One thing that we were always involved in as workers during my time there was understanding the purpose and why we were doing something.    Many companies explain what they want you to do and sometimes even how they want you to do it, often left out in the cold is the purpose/why its important.  See a previous blog post about the WHAT, HOW and WHY! http://thetoyotagal.blogspot.com/2009/04/visual-of-my-lean-implementation-plan.html

So the trainer explained the importance of 1 second.   So basically he translated that 1 second to a cost for the company, which many aren't willing to do nor understand how to do.   He stated, "if everyone in the plant saved 1 sec on their process we could make 8 more cars a shift!"   Internally to myself, I was like "WHAT!"  So let's just say that each car was a profit of $1000 dollars (disclaimer** I am making up an easy number for Math) so that is $8000.00 that was "waltzing" out the door that we "rolled our eyes at".  No one should care about 1 sec right? Isn't that too picky? Give me a break right?  Well after that moment, I started saying "wow", 1 shift, how much is that in a week, month, year? --That adds up! That 1 second could be my Job Security one day  Really just 1 second!!  So from that moment I was looking for seconds everywhere.

So how do you translate this to your world is the question?  I ask companies it may not be a second like it was for us, but it could be:
1 hour of time
1 day of lead time
1 penny
1 dollar
1 week
Where is your waste?  Are you seeing it? Can you translate it if you do see it?  This type of thinking is a requirement in my opinion not an option.  How much has to hemorrhage out your door before you care?  "Go Thinking" as my trainer would say!
Until next time
thetoyotagal
Tracey Richardson

You want a tangible action for your leaders trying to do Lean? Try this! GTS "squared"

As I continue to work with various companies across the United States a common question I'm getting/hearing from clients is - "What should our leaders be doing"?   To me, they seem to be looking for "tangible actions" to tell their leaders to do in this Lean environment they are trying very hard to create.   So many want a magic wand to be waved and the transformation happens quickly.  I wish it was that easy.    As many of you know this isn't the case and Lean has to be "lived", "felt", "experienced", "seen", and backed up by high level leadership walking the walk.   When I was at Toyota the Japanese trainers would commonly use the word "behave".  To me that sounded like school, but when you think deeply about an action it can be interpreted as a behavior.

So to help answer that commonly asked question above I would like to introduce an acronym I would like to coin as a quick reminder that ALL leaders should "live".

Unfortunately on this blog I cant insert the little 2 that should go above the GTS, so I will spell it out for you.  GTS "squared".   What does this stand for you may ask?   Well let's remember it and start to spread it, its essential if you are trying to transform your company with Lean thinking.

Here is the behavior :)

Go to See & Grasp the Situation!  GTS "squared"!!

A leader must always GO TO SEE or Go to the Source, this is a habit that is hard to create.   We tend to rely on assumptions due to our experience or what someone has told us based on "tribal knowledge".   My Japanese training would often say - Please--Go Looking!!  Some knew minimal English but we knew what they meant :).     When I do my Gemba (at the work process) days with clients they often cant answer some of the questions I ask because they don't have the facts, just assumptions unfortunately.   Only until we Go To See, we often cant get to the true. 

Once we GO SEE, we must then Grasp the Situation, which is the 2nd half of the equation!   How do you grasp the situation?   Well my experience tells me by asking the right questions!  In my courses I give out about 200 questions leaders should be asking.  We will just begin with the 2 most essential questions a company and their leaders (at every level) should be asking.

What should be happening? (Ideal State or Standard)
What is currently happening?  (current state)

These 2 questions should always be quantified!  For example:

Productivity should be at 95%

Current productivity is at 85%

This will give us a 10% gap that we will begin to breakdown and ask further questions!

From my experience as a consultant of 13 years now, I find that MOST companies I work with (even ones that you may think should know) can't answer those 2 questions because they do not track the information or they just make an assumption.   To me, because I was raised with this thinking (at Toyota), they are simple questions; its just NOT easy to do or to develop this behavior in our leaders.   Some may ask why not?  Mostly because they are running around with a fire hose on their backs!  This type of problem solving is weak at best, and surely not repeatable for long term sustainability.    This is NOT the behavior we want but unfortunately its an easy way to do business and inherently learned from above.    Invest in your people, make your leadership accountable for GTS "squared".   It works, try it!
Until next time
thetoyotagal
Tracey Richardson

Sometimes the simplest examples are the best!

Thanks John Shook for sharing this with me. Sometimes when I train people they want elaborate examples to learn about waste and even how to identify it. As Ive taught, waste is all around us, sometimes we just accept it as "the norm" and never ask enough questions. John shared this with me this week, thought I would post on my blog. Sorry for my absence lately. I have become a sensei on the A3 Dojo at lean.org so its hard to keep up with everything with my travel schedule. I will try harder to post, especially the good stuff from the dojo!! Enjoy the example below, its probably something we all have encounter in one way or another. Merry Christmas and Happy Holiday everyone!! Here is the link. Enjoy!

http://runningahospital.blogspot.com/2011/12/final-toast-to-ihi.html

Organizational Purpose...Do you have one?

As I am typing I'm in amazement that its Springtime already. I will admit Im ready to travel in warmer weather. The year is definitely progressing quickly and I've enjoyed my training sessions thus far at many different companies across the U.S. My last post was encouraging each of you to grab a copy of Jim Womack's latest book Gemba Walks. I've just finished the book myself over the past few weeks in amongst my teaching and traveling. I have found it very informative as I too, like Jim; try to reflect on my own Lean journey as a teacher/sensei over the last 13 years. With that continual reflection process I've realized how I coached 13 years ago,right after I left Toyota, and how I coach now are a bit different. As Jim states in his book its "hopeful hansei". (Hansei: critical self reflection for the purpose of improvement). It is interesting how we evolve and learn from doing and making mistakes. My Japanese trainer always said "its ok to make them, just learn to ask why they happen and dont repeat!" My goal has always been to teach others not to make those same mistakes I did by sharing my learning process or as the Japanese say shared wisdom.

I've decided to share selected short snippets from Gemba Walks across my next few posts that has reinforced my thinking and allowed me to learn from another viewpoint. We are so lucky that that viewpoint comes from Jim Womack and his experiences. As a consultant its always educational to internalize another sensei's perspective to enhance your own teaching methods. Thank You Jim for sharing with all of us your learning as you have walked over these past few decades.

This post comes from the first section of the book which is "Purpose" (pages 1-18).

As a company do you understand your purpose? How would you define that to others? Some companies may say, "To make a profit!" Is that an unrealistic purpose? Don't we need to have a profit to be successful? I think underlyingly it's a no-brainer that we should make a profit if we want to stay in business. I feel if we look at purpose in a little different perspective, then the outcome of a correctly stated purpose can be linked to your profits. Let me explain.

So if "making a profit and growth" is your company's purpose. Ask yourself, does this purpose have anything do to with what your customers want from you? A better way to look as this is to ask: What does your organization do to solve your customers' problems better than your competitors so that customers old and new will pay good money for your products and buy more over time. Now this is that outcome I was referring to before. If you focus on that question, then by default you will have profits and growth based on customer satisfaction. When we say "make money" that is a result, not a strategy for achieving it.

To some,this is a different way to think about an organization's purpose, as I've always stated in my training sessions that is if you focus on a good process then results will come I believe. In this case, a good process is defining an Organizational Purpose that solves the problems for the customer.

Ask yourself this: What do your customers want that you aren't currently able to supply?
- Lower price
- Better quality
- Rapid Response
- Better Support
- Flexibility

So what do you need to do better to satisfy your customers in order to survive and prosper?

So does your purpose support your goals, the company's, or the customer? It's definitely something to question and rethink if its all about the money for you.
Until next time
thetoyotagal
Tracey Richardson

A Must Read!! Check out the Press Release on- Gemba Walks by Jim Womack

Hello everyone, I would like to share with you an exciting book that was just released by the Lean Enterprise Institute (LEI - lean.org) called Gemba Walks by Jim Womack. I am currently reading this book and have been so engaged with Jim's experiences and messages based on his "Gemba Walks" over the past few decades. I would highly recommend this book no matter what your level of experience may be with Lean. It's a MUST READ!! Im attaching the press release below from LEI. Get your copy today!!

IMMEDIATE RELEASE

New Lean Management Book, Gemba Walks, by James Womack Challenges the Prevailing By-the-Numbers Management System

On sale today, the latest book from the researcher who led the team that coined “lean production” explores why lean management is better than the currently dominant management system.

Cambridge, Mass., March 14, 2011 -- In the ground-breaking book Gemba Walks, leading business thinker Jim Womack shares a simple approach to business that will help every business leader, policy maker, and anyone working earnestly in any organization re-think how they go about creating value, delivering service, and fulfilling purpose.

Drawing on 30 years of experience as the pioneer in explaining and popularizing the Lean Management System, Womack illustrates the power of rooting improvement efforts in the “gemba,” a Japanese word referring to the place where work takes place, and where value is created.

“How do we understand the gemba?,” asks Womack. “And more important, how do we make it a better place—one where we can create more value with less waste, variation, and overburden?”

Womack provides answers based on trips to countless companies where he keenly observed how people worked together to create value, while applying the critical lean management practice of: go see, ask why, and show respect.

Value-Stream Walking
For the past ten years Womack has shared his thoughts and discoveries from these trips through a monthly letter to the Lean Community. Now, in Gemba Walks, Womack has selected and re-organized his key letters, as well as written new material providing additional context.

His book contains a wealth of insights derived from the seemingly simple process of visiting the gemba, asking questions, and showing respect. Gemba Walks shares:

• a broader historical view of the recent events of the automobile industry, sharing fresh insight into the ascendancy and recent troubles of Toyota, the bankruptcy of General Motors, and the events since.
• a new essay titled “Hopeful Hansei “on the steady forward march forward of lean thinking.
• a deeper understanding of the practice of lean as the most important advance in management thinking of the past 50 years, one that is fundamentally different—and fundamentally superior to the currently dominant management system.
• a methodology for walking value streams from beginning to end to learn the current condition and the most promising areas for improvement.

Among the gems in this book:
• why companies need fewer heroes and more farmers—the types of managers who “work daily to improve the processes and systems needed for perfect work and who take the time and effort to produce long-term improvement.” In other words, “to provide the “steady- paced continuity at the core of every lean enterprise.”
• how “good” people who work in “bad” processes become as “bad” as the process itself.
• why the real practice of showing respect comes down to helping workers frame and solve their own problems. He sheds insight into the way that lean managers and workers solve problems as the essential activity.
• why the lean manager has a “restless desire to continually rethink the organization’s problems, probe their root causes, and lead experiments to test the best currently known countermeasures.”

Gemba Walks also shares Womack’s insights on topics ranging from the application of specific lean tools, to the role of management in sustaining lean, to stories that will challenge and encourage lean managers to press ahead in a new and important way of working.

LEI Chairman and CEO John Shook notes, “Simply seeing—and communicating—lean practice is but one way that Jim Womack has inspired others. Jim gives encouragement in the real sense of the term: courage to try new things. Or to try old things in different ways. I don’t know if there’s a stronger embodiment of showing respect than offering others the courage to try.”

Gemba Walks
- By Jim Womack
- Published, March 14, 2011, Lean Enterprise Institute
- 348 pages
- ISBN: 978-1-934109-15-1
- $25.00 (paperback)
- $9.99 (e-book)

Until next time,
thetoyotagal
Tracey Richardson

AME Training through Auburn Works - 8 step problem solving! Come join my class in May!!

Hey guys... come and join me for an awesome Problem Solving Event hosted at the Mercedes plant in AL and put on by AME and Auburnworks.org. Go here http://www.ame.org/events/8-step-problem-solving-toyota-business-practices

Or read below!!!! Will be using the Land Cruiser Manufacturing Simulation!!

8 Step Problem Solving-Toyota Business PracticesShare Text Size:AAATue, 05/10/2011 - Thu, 05/12/2011 Vance, Alabama
AME Office: 224-232-5980
Email: schandler@ame.org

Values and Culture – discuss the values that a company, along with its team members, should understand during their daily work activities and interactions. These values and beliefs are centered on Continuous Improvement philosophies and Respect for People.

Toyota Production System (TPS) - Breaks down the elements of the TPS house focusing on the 2 pillars - Jidoka and Just-in-time production and the company philosophies behind them.

8 Step- Problem Solving –gives team members a systematic approach to “thinking” that follows the PDCA (Plan-Do-Check-Act) Management System. This process lays the foundation for all team members to look at problems in the same context giving the team member concrete actions to implement using their values. The 8 step approach is important to understand as the foundation for the Lean journey and essential for team member development which leads to a Lean Culture.

A3 Writing / Problem Solving Theme Reports – provides the team member with tools to create a summarized document of their problem, proposal or status report in order to share the “need to know” information about their report to others involved. The report format we provide will follow the 8 step problem solving approach and provide a roadmap for coaching a development as participants practice and learn the 8 step process.

Land-cruiser Manufacturing Simulation

On the-Job-Development (OJD) – is a key element in developing a Lean Culture by developing team members (at each level) through “supervisory mentoring”. The OJD process puts the “Values” and “8 Step problem-solving process” into practice. It allows team members to pass on their knowledge to others and understand their people well enough to create stretch targets for learning while align their activities to the company hoshin and KPI targets.

AgendaPresented byHost CompanyParticipant BenefitsLocationRegistration.Agenda
May 10, 2011
8:00 am
4:00 pm Day one will consist of:
•Problem solving Culture and
•Brief overview of Toyota Production System
•Discussion how Problem Solving fits into (Standardization and TPS)
•Land-cruiser Manufacturing Simulation- Rounds 1-3
•This simulation provides a “real-life-hands-on” approach to the manufacturing process that the team member initiates improvements on. This simulation brings to life various elements of Lean including: TPS (Toyota Production System), STD work (Standardized Work), PDCA (Plan Do Check Action), 8 Step Problem Solving and A3 activities using the Land-cruiser process to facilitate the hands-on learning. We become facilitators at this point allowing the team members to make the majority of decisions in regard to each work cell. The participants will go through 4 rounds of production which are focused on the process and improving key performance indicators such as quality, productivity, and cost. The participants will be involved in specific roles (production, customer, dealership, quality control, team leader, and kaizen leader) within the process learning several elements of Teamwork, Continuous Improvement and Go and See. The simulation allows for “demonstration of knowledge” after the presentation.
•PDCA (plan do check action)
•Land cruiser Round 4 – with creation of Yamazumi Charts

May 11, 2011
8:00 am
4:00 pm Day two will consist of:


•Problem Awareness and types of problems
•The 8 Steps of Problem Solving
•Land cruiser Round 5-6
•Fill out Problem Solving Flowchart
•What is an A3?
•Grading A3’s
•Report out – Questions and Answers session

May 12, 2011
8:00 am
4:00 pm Day three will consist of:
•Selecting a “real life” problem within the company
•Practicing the 8 steps of problem solving process
•Understanding the importance of “Go and See”
•Practice the A3 format
•Practice using the Problem Solving Flowchart
•Report out of progress
•Tentative Mercedes-Benz Tour