Integrating Leader

Standard Work with Visual

Management Tools
with Joe Murli
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 Today’s Presenter
Joe Murli
• Began his lean journey in 1985 at United Technologies
• Led drive
d i e to win
in Shingo Prize
P i e as di
director,
ecto NA
Operations, Ensign Bickford
• Part of the lean transformation of Pratt & Whitney
• GM of Chengdu Aerotech, China’s first lean aircraft
parts supplier
• Doubled on-time delivery, cut lead times 88% as VP
off manufacturing,
f Kamatics Div., Kaman Corp.
• COO, Sterling Collision Centers, first national chain of
lean body shops
• Teaches “Integrating Visual Management Tools and
Leader Standard Work” and “Management Standard
Work” for LEI
 Visual Management &
Standard Work Workshops
Integrating Visual Management Tools and Leader
Standard Work
• Feb.
Feb 2-3
2-3, San Francisco

Management
g Standard Work
• Feb. 1, San Francisco
• March 8, Dallas, pre-Summit workshop, Lean
Transformation Summit
“Frontiers and Fundamentals”
• Register by Jan. 28, Save $400
(Past attendee? Save $100 more)
• Acme Alliance
Alliance, Coca-Cola,
Coca-Cola Ford,
Ford Starbucks
• Keynotes by John Shook, Jim Womack
• Pre-conference workshops,
p , Learning
g Sessions,, Panel
Discussion, Networking
• Details: lean.org
 What is Lean?

An organization of people that have

developed the ability to relentlessly reflect,
seek out waste, and eliminate it while
simultaneously improving the customers
experience

Lean Leadership
-Setting of direction
Developing organizational capability
-Developing
 Chairman Fujio Cho
Three Keys to Leadership

•Go See
–“Sr. Mgmt. Must spend time on
the front lines.”
•Ask
A k Why
Wh
–“Use the “Why” technique daily.”
•Show Respect
–“Respect your people.”
What are the Characteristics of a
Lean Organization?
• Small ggroups
p of people
p p diffused throughout
g the
organization continually examining their processes and
eliminating waste
• Many stand up meetings at all levels
• An extraordinarily visual physical environment
((not virtual))
• Evidence of process improvement pervasive throughout
the enterprise
• Highly predisposed toward elimination of inventory and
encouraging flow
• Problem solving and decision making pushed down into
the organization
 Lean Leadership
True North
Purpose

The process of reflective

Vision Mission
learning led by
management keeps the
organization on track to
its true north despite the Transients
short term influences • Economic fluctuations
• Materials disruptions
p
• Technology changes
• New customers
• New markets
Current Performance • Regulatory changes
• Etc.
 Lean Leadership
Building Organizational Capability

Fishbone Analysis A3 Problem Solving Story Board

Goal/Focus: Problem Solving A3 Theme

Problem Description Countermeasures A P

Activity Rationale Expected
What? Why? Effect

Desired Condition/Target
C D

Problem Analysis Follow-up/Learning Points

A P

C D
43
58

A P

C D

Combination of People, A P

C D

Process, and the Physical

Environment Kaizen
Kaizen

Kaizen

Baseline
 What is Visual Management?
• A system of planning, control,
and continuous improvement that
integrates
• Simple visual tools that enable
understanding at a glance
&
• Management standard work that
ensures process adherence and
continuous improvement
Visual Management & Leadership Standard Work:
Drive Standards and Detect Abnormalities
•5 cowboys to drive
Look Here … 1000 cattle
What is normal or
•Should take one look abnormal here?
and understand the
situation
•Clearly differentiate
between what is
“Normal” and
“Abnormal”
•Detect
D t t what
h t iis
Not Here … “Abnormal”

What is the well marked “trail”

trail in your business?
 Attributes of Visual Management
Tools – Understanding at a Glance
Which stack requires immediate attention?

Identification of abnormal? Do you speak Swedish?

Does it matter?
Attributes of Visual Management Tools

• Provides “understandingg at a glance”

g
• Emphasize graphics rather than numbers and
words
• Clear information actionable at the point of
communication
• Maintained byy those carrying
y g out the work
• Those performing the work are the first to
detect abnormalities
• Linked to high level business metrics and
objectives
So What Exactly Am I Looking At?
Wish
Wi hIhhadd my
reports with
me!

I know something’s
wrong but where do I
start?
 Sustained Continuous
Improvement
Visual Process
Performance
Visual
Process
Adherence

Leadership
Standard Work
Maint

HR

CSR
Warehouse
Receiving
Shipping

Engr
Plant
Mgr
The Pulse Point Arrow
 Strategy Deployment
Line of Site Charts How does
my project
support the
company
strategy?

Monthly review
identifies
abnormalities
Intuitive visual tools posted in
th work
the k area ffor all
ll to
t see objectively
activities and status
 Breakthrough
&C
Continuous
ti Improvement
I t

• Breakthrough
kh h objectives
bj i are Strategic
reviewed against current Objective is SD
market forces and business achieved! CI
environment SD
• Evolutionary changes are made CI
• New Annual Improvement SD
CI
Priorities are established SD Base
• Requirements are flowed down CI Base
throughout the organization SD Base
• Leadership has a structured CI Base
process approach to manage Base Base
strategy
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Normal day to day business management
and improvements are separated from
breakthrough objectives
 Performance Measurement:
FIRST What are the Questions?
FIRST,
People Quality
• How do we care for and add value to • How does the customer see our
our people? quality?
• How are we making a personal • What % of customers are impacted by
connection with our people? errors?
• •
• •

• How well do we • What is being done to gather • Is the cost per

meett our i f
information
ti on areas off waste
t unitit coming
i
commitments? and make it better? down?
• • How well are we executing our •
• improvement
p activities? •
• How much have we improved so
far?
• What is the next improvement?
D li
Delivery CI Cost
Performance Measurements
 Gemba Walks
Visual tools should answer the following at a
glance:

1. What is the work that’s being done here?

2
2. Wh t iis the
What th process??
3. Is it being adhered to?
4
4. Are the business results being achieved?
5. What is the next improvement that has been
identified?
• Visual tools communicate process abnormalities and
business performance

• Management Standard Work assures the proper response

 Management Standard Work
• In a lean world, management (leadership) engages
in repetitive activities that are designed to identify
abnormal situations such as:
– Non-standard work
– Non-standard labor
– Non-standard inventory HR

IT
– Non-standard output, etc.

CSR

ales & Mktt

• This is done
where the Finance

Sa
workk takes
t k
place

Dev
Engr
g

Prod D
“The gemba” Director
 The Leadership Process
• Regular gemba The process of daily
walks
alks reflection leads to
• Observe waste breakthrough
• Build the “problem performance
solvingg muscles of improvements
the organization” New Standard

Old Standard
mance

mance
Management Management
Perform

Project Perform

Time Time
 Organizational Reactions…..
• Things will appear worse before they get better.
Lean exposes waste
waste, that’s
that s how it works!

• Not all will accept the change; there are leaders,

leaders
followers, and naysayers. They will all have to
be dealt with

• Lots of excuses as to why it won’t work here

• Every job will change

 Summary
• Lean leadership is based on setting direction and
building organizational capability
• Visual management systems are based on the value
stream map and determining which questions need to
be answered at each pulse point
• Management standard work is based on walking the
gemba observing abnormalities,
gemba, abnormalities asking questions,
questions
and supporting the improvement process
• Visual management without management standard
work turns into wallpaper
• Management standard work without visual
management turns into a social event!
 Bottom Line:
Attitude is Everything

“If you think you can or you

think you can’t, chances are
you’re right
right.””

Henry Ford
 Contact Information

• lean.org/summits
g/
• lean.org/education
• [email protected]
• 617-871-2900

• TheMurliGroup.com
h l
• [email protected]
• 860-916-3030
860 916 3030
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Follow @LeanDotOrg
Integrating Leader Standard
W k with
Work ith Visual
Vi l
Management
g Tools
with Joe Murli

Questions & Answers