Lean II Performance Planning Modules There are two objectives for Lean Performance Planning: 1. To develop a plan for the Lean Performance project based on your firm’s need, opportunity, and capability to develop unique company attributes. To understand how planning can be useful to integrate lean processes throughout the transition to Lean Performance management. Planning for Lean Performance differs from traditional corporate planning.
Initial project plans cannot be based on past experience with lean transformation, because there isn’t any. Experience in lean thinking must be acquired before a valid planning process can be undertaken. This is essential because lean thinking runs counter to the basic assumptions of mass production on which current manufactur- ing planning practices are based, so most nonlean firms aren’t in the lean thinking mindset, and even lean firms, as we discussed above, are generally not lean in the management decision and information/support processes. A Lean Performance project plan must be designed and implemented based on the unique lean vision–driven configuration of your firm’s organization, processes, technology, and culture.
It must be derived from the foundational premise that all of these will change before the project is completed. Planning is necessary to facilitate the impact of changes in essential processes. Previous organizational plan- ning did not require these considerations, because while planning organizational structural changes, and perhaps personnel requirements, prior planning assumed no significant process changes.indb 187 11/19/07 12:14:20 PM 188 n Lean Performance ERP Project Management Unless Toyota is just an anomaly, Lean Production is going to replace mass pro- duction in the global supply chain(s), and sooner rather than later. Why? Lean will win because lean delivers better quality (Q), at a lower cost (C), in a shorter time (D).
The better idea wins in free market competition. Remember, if Lean Produc- tion works for Toyota, and it doesn’t work for you—it’s you. Identify your progress toward lean. Is it formalized? Is it budgeted? Is it enter- prisewide? Is it sustaining? Or is it gasping for survival? Is it “the latest failure”? Lean transformation is a process worthy of formalization.
Right now, make it formal. Make it enterprisewide. Develop a sustaining construct for lean by starting a Lean Project Office today and staffing it with your best and bright- est “leanies.” Create the HR mechanisms that will allow for transfers of capable personnel to staff lean initiatives as resource people. Pick a “volunteer” to be the lean transformation project manager.
Take all of his or her other assignments away. By the way, the best and brightest are already competing to join the lean firms and those firms that are becoming lean. They can see where this is going, from a career perspective. And, of course, that just makes the lean firms stronger and the remain- ing mass firms weaker.
Don’t be left behind. Do it now. It is up to the lean sponsors and champions to make the management com- mitment to lead and manage a lean transformation. If not the lean sponsors and champions, then who will develop a formal project, with dedicated personnel? Even if, in the early stages, planning for the Lean Performance project may seem unimportant, the benefits obtained from good project planning will be evi- dent as the project proceeds.
The Lean Performance project methodology begins with a management project planning process that includes the deployment of man- agement policies and strategies downward into the business.indb 188 11/19/07 12:14:20 PM Chapter 7 Deploying Management Policy Module Management Tasks Organizing the Steering Committee Forming a Lean Steering Committee will demonstrate your commitment of time to formalize the lean effort and will also help to get lean on the schedule. Taking this one critical step will empower Lean Champions throughout the enterprise. The Lean Steering Committee should be a nontraditional group. Include the visible lean sponsors from business units, Lean Champions from key process areas, and the lean project manager.
Be sure to include human resources and finance. Expand it later, when you know more. The first task for the Lean Steering Committee is to conduct a lean assessment of the enterprise. The second task for the steering committee is to develop the lean implementation project plan, which must include an education plan.
When it comes time to introduce the coming lean transformation, don’t make too much noise prematurely. Although kaizen activities may demonstrate early returns and should be performed on a pilot basis early in the planning stage of a Lean Performance project, as employees become enthusiastic about the gains made between present and target conditions they must be effectively informed about the extent of the desired lean transformation and the plan to accomplish it.indb 189 11/19/07 12:14:20 PM 190 n Lean Performance ERP Project Management It is important to be proactive in presenting “why” the coming lean transforma- tion is important to the employees. Part of that requirement is conducting a lean assessment. Get past the assumption that process owners and operators don’t need to know the “business case” for lean transformation.
Many of them already know all about the QCD competition coming from offshore. While educating about the “how to” of lean practices such as changeover reduction or kanban, be sure that the business objectives that drive lean such as inventory reduction, inventory turns, short lead-times, elimination of waste, and the concepts of value added, just in time, and make to order are all well understood and accepted by employees so they recognize the efforts of the company to survive and thrive through the lean transformation. Education that can be provided in the workplace should be provided in the workplace. Establish “local” areas for education and workshop sessions, with a large conference table, a full-size dry-erase board, and portable dry-erase boards.
Combine sessions on the practices of pull, kanbans, changeover reduction, TPM, eliminating MUDA, etc., along with kaizen events to attack a particular problem. The end result will be that the process owners and operators will understand the principles behind what they are implementing. They will know that they are imple- menting lean practices in order to provide a consistent lean flow of products and services to their customers. Educated process operators will be knowledgeable enough to spot inconsisten- cies between what management says and what management does.
They will quickly point out gaps in the lean implementation. When standardized work and other lean practices are implemented by the process operators who actually do the work, they tend to succeed. When the process owners and operators understand “why,” they focus on solutions that achieve the objectives of the company. The first element of the planning process is forming the project steering com- mittee.
The steering committee is an expansion of the existing lean support group or, if a support group is not in place, the key individuals in the business as well as a Lean Performance project manager and a business “owner” from all process areas in a single-site project or each project site in a multisite project. Management personnel who were identified during the Lean Performance Assessment as capable of playing the various roles needed within the lean transfor- mation project are appropriate individuals for steering committee responsibilities: n Advocate n Champion n Sponsor n Communicator n Motivator n Team builder/team player n Educator/developer n Change agent AU0532.indb 190 11/19/07 12:14:20 PM Deploying Management Policy Module n 191 n Mediator/negotiator n Facilitator/coach/catalyst The management personnel who were identified for these roles during the Lean Performance Assessment should be called on now to assist in the development of Lean Project Strategies. Prior to the formal deployment of Lean Business Policies and strategies at the project inception, roles should be formalized and a steering committee introduced. Confirming the Lean Vision A company’s vision is its desired future state (i., what it hopes to become).
The company Lean Vision must incorporate the breadth and depth of the Lean Perfor- mance project. The Lean Vision determined during the Lean Performance Assess- ment should now be formalized and published. Identifying and Deploying Lean Business Policies Lean Business Policies express the views of the lean sponsor or champion of the Lean Performance project. Typically, this is the chairman or CEO of the business.
Lean Business Policies define the lean business mission. Lean Business Policies drive the development of lean project strategies. Lean business policies are often expressed by executive management in business plans that are delivered to the business organiza- tional level or in existing company policy communications vehicles such as business plans and strategic planning documents, including the previously mentioned Lean Vision Statement. The project sponsor/champion should also incorporate the lean business policies developed during the Lean Performance Assessment.1 illustrates a sampling of Lean Business Policies.
We will track the deployment and eventual project/process team implementation of these Lean Business Policies throughout the project text that follows. In the Lean Performance methodology, Lean Business Policies are formalized and deployed to the organization and eventual project team through use of a deploy- ment practice called the Lean Performance Analysis.2 illustrates the Lean Performance Analysis template. Each topic on the template must be completed for any project issue requiring steering committee approval of a system modifica- tion. As previously stated, Lean Performance is a project methodology designed to facilitate an unmodified implementation of the underlying software enabler or enablers.
The lean sponsor or champion completes the Lean Business Policy portion of the Lean Performance Analysis templates, one policy per form. These Lean Performance Analysis masters are numbered and distributed for review and identification of Lean Business Strategies by the members of the project steering committee.indb 191 11/19/07 12:14:20 PM 192 n Lean Performance ERP Project Management LEAN BUSINESS POLICIES Example Lean Business Policies: – Support Lean Manufacturing – Support Lean Thinking in the Global Standardization of Engineering Processes – Support Lean Thinking in the Global Standardiazation of Financial Processes – Support Lean Thinking in the Global Standardization of Information Systems Management Figure 7.1 Lean Business Policies Identifying and Deploying Lean Project Strategies Lean Business Policies pertaining to the Lean Performance project that have been identified and articulated will now be disseminated, understood, and followed throughout the project. They will in other words be deployed to the process level. A company’s policy-driven strategies are the guidelines within which it oper- ates in pursuing and fulfilling its lean mission.
Following the Lean Business Poli- cies deployed by the lean champion or project sponsor, members of the emerging project steering committee communicate lean strategies that they would like to see pursued in their business organization or process areas. To identify Lean Project Strategies, steering committee members and key busi- ness unit, divisional, and section managers interpret Lean Business Policies that are likely to impact or be impacted by process requirements. Incorporating their specific LEAN PERFORMANCE ANALYSIS LEAN BUSINESS POLICY: SUPPORT LEAN MANUFACTURING CONTROL LEAN PROJECT STRATEGY: NUMBER PROJECT OBJECTIVE: 003 TECHNOLOGY DEPLOYMENT: PROCESS IDENTIFICATION: LEAN PERFORMANCE TEAM: PERFORMANCE GAP SOLUTION BENEFIT MEASUREMENT Figure 7.2 Lean Performance Analysis—Lean Business Policy Deployed AU0532.indb 192 11/19/07 12:14:21 PM Deploying Management Policy Module n 193 knowledge of business and technology trends and developments and the lean policy requirements in their respective areas, the improvement project is directed toward specific attainable benefits. Discussions should also be held with actual and potential steering commit- tee members to identify additional Lean Strategies for project deployment.
Lean strategies are also derived from the results of the Lean Performance assessment.3 illustrates examples of Lean Project Strategies.