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Lean Daily Management:Achieving Performance by Enabling TeamsSteve Ebbing - founderthe ebbing groupJanuary 17, 2018

What is Lean Daily Management? Definition: A set of processes which lead our teams and leaders into acontinuous improvement cycle.Continuous ImprovementCycleLean DailyManagement

What is Lean Daily Management? A system that allows you to deliver customer valuethrough proper support & leadership to those who areclosest to the process (customers & process owners) Some Lean Daily Management elements are common toLeader Standard Work (visual control boards, and dailyaccountability) LDM is not effective unless used with the right mindsetstarting with effective lean management!3 2016 The Ebbing Group, llc

Traditional vs. Lean Work EnvironmentTraditional ComplexManagement by status reportingPush systemJust-in-case inventoryBatch productionLong lead timeQuality inspected inFunctionally managed4 2016 The Ebbing Group, llcLean Simple and visualManagement by sightPull systemInventory as neededSingle item or small batch sizeMinimal lead timeQuality built inValue Stream Managed

Traditional vs. Lean LeadershipTraditional Staff meets goals set byleader Leader plans Information controller Sole problem solver Technical expert5 2016 The Ebbing Group, llcLean Ensures team goals supportvision Direction setter (visionary) Information conduit (sharing) Facilitates “root cause”analysis Technical resource

A visual daily performancemanagement system is:Visual6 2016 The Ebbing Group, llcTimelyDrives Action& Learning

Lean Daily Management Supports theEnterprise7 2016 The Ebbing Group, llc

Five Elements of a Lean Daily ManagementSystem1. Routine Huddles 5 -10 minutes in front of Primary VisualDisplay. Everyone has same picture, samepriorities2. Primary Visual Display Information center for the work group.Updated regularly8 2016 The Ebbing Group, llc

Five Elements of a Lean Daily ManagementSystem3. Key Performance Indicators (KPI’s) Measures that gauge performance. Should addressSafety, Quality, Delivery, and Costs etc.Good KPIs are: Managed by employeesEasily understoodVisualCharted manuallyEasily calculatedReviewed by management on a regular basis9 2016 The Ebbing Group, llc

Five Elements of a Lean Daily ManagementSystem4. Action Sheet system: A method of capturing and verifying bottom upimprovements from the team and reporting status5. Short-interval leadership Regular contact by supervisor with each employee inthe work group, such as 30 seconds twice per shift.10 2016 The Ebbing Group, llc

Five Elements of a Lean Daily ManagementSystem11 2016 The Ebbing Group, llc

Lean Daily Management at the SitePlant Level (Tier 3)Department Level (Tier 2)Cell Level (Tier 1)12 2016 The Ebbing Group, llc

Why should we work on Lean DailyManagement? Solve problems at the source.Improve communication at all levels.Involve all partners in business administration.Engagement at all levels on SQDCI KPI s.Daily feedback.Team Work.Continues Process Improvement.Continues challenging.Empower Value Stream Core teams.Continuous Learning!

What do we want from our nuousImprovement !!!ProblemSolving*PDCA, Deming CI CycleCDIdentifythe Gap fromour Goal

What do we want from our Leaders?Audit /CoachingAudit /CoachingAudit /CoachingAudit /Coaching

The Complete Lean Management SystemManage Things – Lead PeopleLean DailyManagementLEANLEADERSHIPLeader nt-Standard Work-Visual Controls-Accountability-Discipline16 2016 The Ebbing Group, llcAccountability& rection-CoachingSafetyDeliveryQualityCost

Role of Leadership in Lean17 2016 The Ebbing Group, llc

Who must change for effective LDM? Plant Manager morning meeting on shopfloor vs. office Business Unit Managers.Standard Mgmt Work Supervisors cell-by-cell daily performancereviews with operators Operators update their own daily KPIs Engineers engage operators in daily learning18 2016 The Ebbing Group, llc

Lean Daily ManagementTool Kit KPI BoardsHour x Hour Boards (takt rate)LDM level meetingsGemba WalksLeadership Behavior

KPI’s

Key Process Indicators KPI’s A KPI represents a performance measurement thatprovides direct feedback about the way we areperforming.Good KPI’s are: Managed by employees.Easily Understood.Charts manually updated (not in a computer).Easily calculated.Reviewed by management on a regular basis.VISUAL

KPI General Requirements VisualEasy to understand.Gemba driven.Core team ownership.Managed like a Score board.We must know if we are hitting or missing the target at first sight(RED or GREEN)Focused on the Voice of the Costumer (V.O.C.).Aligned with strategic business objectives.Must be capable to distinguish the severity of the issues.Must be maintained on a daily basis.

KPI Philosophy1. Safety FocusEmployee safetyis #1S2. Customer Focus3. Internal FocusQCCell focus onCustomer ImpactDIInternalImprovement

Improvement focused on SQDCIWorks from left to right so limited resources can be focused on critical priorities.Once the KPI is on Green, then the primary focus can changeto next KPI to the right.

Standard KPI BoardSQDCI2. Daily KPI Chart3. Living Pareto Chart15 Why515ActionPlan5 Why15 Why15 Why54. 5 WhysAnalysis5ActionPlanActionPlan5. Action Plan6. YTD KPI Chart15 Why5ActionPlanActionPlan7. Open Section (Weekly)1. Hit / Miss Daily StatusOpen Section

Cell level- let Employees DriveInnovationVisual Improvement Idea Management26 2016 The Ebbing Group, llc

Problem Solving 5 Whys Cause & Effect (Fishbone Diagram)27 2016 The Ebbing Group, llc

5 Whys Moves a team past symptoms Asking “Why” five times let’s the teamdelve into a problem deeply Goal is to identify the root cause Focus on the 5 Whys, not the 5 Who’s Focus on the process!28 2016 The Ebbing Group, llc

5 Whys WorksheetDate:Completed by:Define the Problem:Caution:Don’t jump toConclusionsWhy is it happening?1.Why isthat?Why isthat?2.3.Focus on theWhy’s notthe Who’s?29 2016 The Ebbing Group, llcWhy isthat?4.Why isthat?5.

5 Whys WorksheetDate:Completed by: Ngo GoghDefine the Problem: The car won’t start because the battery is deadCaution:Don’t jump toConclusionsWhy is it happening?1.The alternator did not charge it correctlyWhy isthat?Why isthat?2. The alternator is not rotating3. The belt driving the alternator is brokenFocus on theWhy’s notthe Who’s?30 2016 The Ebbing Group, llcWhy isthat?4. The belt was not changed at the correct maintenancemileage interval.5. The owner did not follow the recommendedmaintenance schedule.Why isthat?

5 Whys WorksheetDate:Completed by:Define the Problem: The Jefferson Memorial surface is deteriorating resulting in high resurfacingcost.Why is it happening?1. We are using a more abrasive cleaner than in the past.Why isthat?2. There are more pigeons and pigeon droppings3. They come to eat the spidersFocus on theWhy’s notthe Who’s?31 2016 The Ebbing Group, llcCaution:Don’t jump toConclusionsWhy isthat?Why isthat?4. Because there are a lot of gnats.Why isthat?5. Gnats are active at dusk; lights were programmed tocome on at dusk to illuminate the Memorial.

Solution: Delay turning on the lightsto one hour after sunset.Program to self adjustthroughout the year. Gnat population wentdown 90%. Thereforefewer spiders, fewerpigeons, less pigeondroppings, less cleaningwith abrasive cleaners!32 2016 The Ebbing Group, llc

MoreSteam Example33 2016 The Ebbing Group, llc

5 Why – Practice Exercise Chose one of the following examples and conducta 5 Why analysis I was late arriving at work (15 minutes late) The packaging machine stopped working Customers are not happy that they are receivingproduct that does not meet their expectations Time: 10 minutes34 2016 The Ebbing Group, llc

Cause & Effect (Ishikawa Diagram) Represents the relationship between an Effect (problem) andits potential Causes Helps ensure that a balanced list of ideas have beengenerated during brainstorming Helps us overcome the “theme” or “group think” effect Sorts and relates the factors affecting a process while littlequantifiable data is available Serves as a discussion guide to assist in determining rootcauses35 2016 The Ebbing Group, llc

Fishbone / Ishikawa Diagram (Cont.) Helps determine the real cause of the problemversus a symptom Helps refine brainstormed ideas into more detailedcauses Helps identify a team's level of understanding of thelinkage between cause and effect in a process Note: Templates available in Minitab (Stats QualityTools Cause and Effect) and elsewhere36 2016 The Ebbing Group, llc

Example:Fishbone DiagramMaterialMachineDiscovery of differentdiscount rates occurs toolate in processMethodsComputer screensProductShortagesPower FailuresUpdatesMaster customer discounttable not up-to-dateManagement PoliciesIncomplete Training oncommon complaintsMarketing metricscounterproductiveMother NatureBilling process notaccurateToo many “jumps”MeasurementsManpowerEffect:: Too many priceadjustments atcheck-outNot enough staffing duringpeak timesUnfamiliarity with proceduresFor vacationnotificationNotification of absence

Refine Brainstormed Ideasto the Root CauseAsk "Why?" 5 TimesComputer Storage Costs Too High1. Why? Users keep too many large files as emailattachments2. Why? Users don’t know that this results in anextra charge to the company3. Why? Email policy not communicated1. Why?2. Why?3. Why?4. Why?5. Why?4. Why? Official email policy not defined5. Etc .

Seven Steps to get a LDMS up and Running1.2.3.4.5.6.7.Understand your processDevelop a standard KPI boardDevelop daily management processesDo Daily stand-up meetingsDevelop a response planMonitor ProblemsMonitor performance39 2016 The Ebbing Group, llc

Primary Visual Displays40

Primary Visual Displays41

Key Takeaways Everyone knows if yesterday was a good day! Make it a standard process It is about the process-not just the boards42 2016 The Ebbing Group, llc

For Sample templates pleaseleave your business card!Thank you !Steve EbbingThe ebbing group, llc619 ur Partner in Progress

Steve Ebbing, the president of the ebbinggroup, llc has been focused on business performanceimprovement and operational excellence for over 25 years. His background includes engineering,engineering management, and operations management. As a Corporate-wide OperationalExcellence leader, Steve developed and implemented a widely accepted Lean Maturity Assessmentprocess, a Goal Deployment/Hoshin Kanri process, initiated a standard Operating System for thecompany, and led Lean transformations for a number of sites. Throughout his career Steve hasbeen implementing Lean Six Sigma in aerospace, medical device organizations, hospitals, hospitalpharmacies and other companies in manufacturing operations and in transactional functions bothdomestically and internationally.Steve’s prior experience includes roles as an Adjunct Faculty position at the University ofTennessee as Trainer and Lean Facilitator to the United States Air Force for the Air Force LeanImplementation Program, AFSO21, and as an instructor for San Diego State University LeanCertificate program. Steve has trained, coached, mentored and certified numerous studentsSteve Ebbing, Founder andPresident ofthe ebbinggroup, llcthrough Project Sponsor/Champion, Kaizen/Lean Leader, Lean Six Sigma Green Belt, and Lean SixSigma Black Belt classes. Steve is a 10 year volunteer for Tech San Diego’s ManufacturingOperations Roundtable program and a member of the Board of Directors for the Western Regionof AME (Association for Manufacturing Excellence).Steve has both a Bachelors of Science degree and a Master of Science degree in engineering fromthe University of Illinois. He is a Certified Lean Six Sigma Black Belt, and a Certified Lean Six SigmaMaster Black Belt.44