Building and Sustaining

a Lean Culture:
The Quality People
Value Stream

Mike Hoseus
Author, President, Lean Culture Enterprises
mike.hoseus@gmail.com or 859-699-2235

ThreeLevelsofCulture
What we see, what a newcomer, visitor or
Artifacts &
Behavior

consultant would notice (e.g., dress,

organization charts, physical layout, degree and
formality, logos, and mission statement.

Norms &
Values

What they say, What we would be

told is the reason things are the way they
are and should be. Company philosophy,
norms and justifications.
.

Underlying Assumptions

What they deeply believe in &

act on Unconscious, taken for granted
beliefs about the organization and its
work/purpose, about people, rewards etc.

Based on Edgar Schein, Coming to a new awareness of organizational culture, pp. 375-390 in J.B. Lau and A.B.
Shani, Behavior in Organizations, Irwin, 1988

Big horizontal business processes

Value & Work Flows Across

Functions
Sales

Marketing Supply
Human Finance
R&D
Chain Resources

IT

Growing the Business

Fulfilling Customer Orders
Growing and Developing People,
Leaders

Suppliers

Customers
Most important problems are cross-functional

Which one
describes your
Company?
Vertical
Horizontal

Focus - Production
Budgets, SOPs
Make the numbers
Leaders separated from
the work
Peoples ingenuity used
to beat the system
Supervisors manage
people

Focus - Process
Purpose
Make problems visible
Leaders focusing on the
work
Peoples ingenuity used
to improve the system
Supervisors work with
the people to solve
problems

Company Goals

Employee Goals

Profit
Long Term
Success
Contribute to
Economy

A Paycheck
Growth
Long Term
Mutual
Prosperity

Contribute to
Society

Good Benefits
A Safe
Workplace
Meaningful
Work

Good Quality

Mutual Trust

Make problems & opportunities

for kaizen visible.
Safety

Quality

Productivity

Cost

HR

Standardized
StandardizedWork,
Work,5-S
5-S
Visual Control (Andon, Line-stop, Visual Management)
PDCA

Visual Control (Andon, Line-stop, Visual Management)

Standardized Work, 5-S

Problem Solving (Daily Activities, QC Circle, Suggestions)

The Toyota Way

THE TOYOTA WAY
Respect
for People

Continuous
Improvement

Teamwork
Respect

by concentrating knowledge
of each & every employee
for the benefit of all
customers & stakeholders

Challenge

we strive to realize
ambitious goals

Genchi
Genbutsu

through steady, fact- driven

progress

Kaizen
Values

Toyota Basic Business Practices

pursuing highest standards of

excellence guided by best
possiblePractices
course of action

It Starts with Values

Toyota
Way

Values
Beliefs
TBP
8 Steps
Thoughts
Actions
Goals for the
Habits
company
Character
Culture
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LEAN CULTURE OVERVIEW

MODEL

ORGANIZATIONAL
STRUCTURE &
SYSTEMS

Human
Resources
ATTRACT

DEVELOP

ENGAGE

INPUTS
Assessment

ORGANIZATIONAL
LEADERSHIP &
ENVIRONMENT

Quality
People
ENROLL

OUTPUTS
Quality
Organizations

THE OBJECTIVES OF
STANDARDIZATION

Reduce variability, increase predictability

Enhance repeatability, confidence, consistency
Clarify procedures
Enhance communication
Improve Problem Solving
Set good discipline
Develop awareness
Establish Problem Consciousness
Establish a basis for education and training
Establish a baseline for performance
Improve Quality, Safety, Delivery, Cost
Provide the basis for Improvement

Three Stages of Problem Solving

Maintenance Kaizen

Goal

Kaizen

Raising
Maintaining
Reaching

Problem Solving that

results in getting to the
goal.

Problem Solving that

focuses on maintaining
the goal.

New Goal

Problem Solving
that focuses on
increasing capability
beyond the goal Kaizen.

Ideal Span of Control

Ratio 1:5
Leader

Team
Member

Team
Member

Team
Member

Team
Member

Team
Member

HOSHIN - ALIGNMENT
Strategic
Process

External Environment
Mission/Vision

Cultural
Process

Hoshin Goals

Values

Hoshin Methods

Critical Success
Factors/Practices

Hoshin Activities

Model Behaviors
Results
Stakeholders

Team Board for Floor Management Development System

Quality Section of Team Board for Floor Management

Development System

Fujio Cho, Chairman, Toyota

Motor
Former President, Toyota Motor
Manufacturing, Kentucky:
3 Keys to Lean Leadership:

1. Go See.
Sr. Mgmt. must spend
time on the plant floor.

2. Ask Why.
Use the Why? technique daily.

3. Show Respect.
Respect your people.
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