Sustenance Lean Implementation

Sustaining Lean
Implementation or
Sustaining the Journey?
Presented by:
Jeffrey K. Liker
University of Michigan
Western Massachusetts APICS

Executive Roundtable
© Copyright David Meier & Jeffrey Liker 12/15/2023
Page 1
Lean means Eliminate Waste in Value Stream
Get away from isolated perspective / process improvements
Process 1 Process 2 Process 3
Kaizen Kaizen
Kaizen
Page 2
Example Lean Projects
• Push System to Pull System to Meet Inventory
Reduction Targets
• Cells and Operator Balance to Reduce Labor
• Quick Changeover to Increase Productivity
• Total Productive Maintenance to Reduce
Equipment Downtime and Increase Production
Page 3
Problems With these Goals
• Push System to Pull System to Meet Inventory Reduction Targets
– Pull systems requires tremendous discipline and understanding within plants and
suppliers and a leveled schedule
• Cells and Operator Balance to Reduce Labor
– Operating cells to takt time requires tremendous discipline to follow standardized
work
• Quick Changeover to Increase Productivity
– Changing over more quickly to increase productivity usually leads to
overproduction and extra waste
• Total Productive Maintenance to Reduce Equipment Downtime and Increase
Production
– TPM requires close cooperation of maintenance and operators and disciplined daily
management
OVERALL: LEAN SYSTEMS INCREASE THE NEED FOR DISCIPLINE,

COOPERATION, AND EXCELLENT LEADERSHIP WITH A DEEP
UNDERSTANDING OF THE PHILOSOPHY.
Page 4
What Does it Mean to be “Lean”?
“It is not possible to ‘Be Lean.’
It is only possible to work toward ‘Becoming Lean.’
Being “Lean” would mean there is a process in place that will

ensure the ability to continuously improve people
and business performance-forever”
Page 5
Is This the Goal of Lean Implementation?
"Now we are Lean"!?
Process
Results
Time
"Do Lean" "Getting Lean" What's Next??
(Get Results!) (Lean it out!)
Page 6
There is no Such Thing as Being “Lean”
• Being “Lean” is relative-

– Relative to your own performance
• Continuous Improvement means that you never
arrive-
– You are never “Lean” enough
• The journey is not a speed race- it is an endurance
race
– Will you be in the race in 20 years?
– Will you still be continuously improving?
Page 7
What is Your Vision for the Future?
• Why do lean?
• What is your personal motive?
• Do you want to create something that will
endure?
• Are you committed to the journey?
Page 8
The 4 Ps of ‘The Toyota Way’
Page 9
The 4 P’s and 14 Principles Make Sense
• Working to improve the 4 P areas will always make

sense
• Toyota maintains the same principles and strategy for
the long-term--no “Next Step beyond Toyota Way”
• The goals of the company have never changed:
“Produce the highest quality product, at the lowest
possible cost, in the shortest possible lead time”
Page 10
The Truth About Toyota
• Maintaining the production system takes an

incredible effort for Toyota also
– It is always a challenge
– Daily effort is required
• Toyota has many problems and challenges
• Toyota has a method for minimizing issues
Page 11
Common Problems With Lean
Implementation
• Lack of understanding of effort required by senior
management
• Lack of senior management commitment
• Incorrect motive
• Narrow approach- one method or tool
• Viewed as technical transformation (not cultural
transformation)
• One-size-fits-all approach
– Blind copying
– Blind dismissal
Page 12
Develop “T” People
• People who have broad experience in Lean

• People with deep skill in Lean
• Equal effort between “Going Wide” and “Going Deep”
Spread Lean Across the Organization
Develop Depth of
Capability Within
the Organization
Page 13
The Carrot Model of TPS
We see and want
the leafy green easy
stuff-
The lean tools and
techniques…
Most But, the part we

organizations really want is
never get deep below the surface
enough into the and it takes hard
lean process to work and effort to
achieve true get to it (and you
success have to get your
hands dirty!)
Page 14
Key Points for Implementing Lean System
• Process improvement and people development must go
hand in hand
• You must be patient for people development
– Keep your eyes open to the growth and strengthening of people
(culture change)
– Push when procrastination is preventing the growth of people
(avoiding action)
– Provide necessary challenges and support for people
development!
Page 15
Risks During Lean Implementation
Potential
Accepting
Belief that burn-out
“good
benefits are enough”
over
Failure to
Giving develop
Failure to process
up early
develop
depth Process Results
Time
Resistance Initial Big Slowing Plateau Continuous

Phase Success Success Down Improvement
The Goal is to become a continuously improving
organization!
Page 16
Lean Implementation Strategies
Page 17
Be Flexible
• There is no “one best way” to implement lean
• There is no linear path or road map to follow
• Each business, plant, and even work area is
different and may require a unique look at how to
implement
• The best strategy is to be flexible and vary
approach as needed
Page 18
What is the Purpose of your Lean Efforts?
Lean Deployment Business Transformation
Fix
Technical
Deploy
System
Company
Lean Tools
Problems
Total
Develop
System
Human
Management
Lean Facilitators
System
Page 19
What is the Optimal Starting Point?
There are Many Paths to a Total Management System
Lean Deployment Business Transformation
Fix
Technical
Deploy
System
Company
Lean Tools
Problems
Total
Develop
System
Human
Management
Lean Facilitators
System
Page 20
Systematic Continuous Improvement
Install System Surface Problems / Show Capability
Verify / Adjust Correct Mistakes in design

Improve elements (ie. Simplify info gathering, kanban method etc.)
Learn to Manage Measure and Monitor

Interpret what the info says (uncover issues)
Correct and improve issues uncovered (inability to meet objective)
Learn to Drive Continuous
Improvement When, How, How Much
Why? What is the need?
Understand what will happen when squeezed
Evaluate / Reflect (ie. Reduce batch sizes, increase frequency, reduce inventory,
change pitch, more frequent changeover)
Learn to Manage
Improve System Repeat

Again (Squeeze it)
Page 21
Culture: A Different View
Page 22
Toyota’s View of its Culture
The Toyota Way 2001
Continuous Respect
Improvement for
People
Genchi Team-
Challenge Kaizen Genbutsu Respect Work
Page 23
Three Levels of Culture
What we see: Andon, Kanban, Charts,

People look engaged, Clean and orderly,
Artifacts Little inventory,
& Behavior
What they say:

. Customer First, Respect for People &
Norms Continuous Improvement, Toyota Production System Principles
& Values
What is at their Core: All team. associates

deeply committed to the company mission of
Underlying Assumptions contributing to society through high-value added
manufacturing.
Page 24
Cultures are nested at multiple levels
National Cultures
Industry Cultures
Organizational Cultures
Subcultures
Functional
Cliques &
& Professional
Factions
Groups
Is it Surprising Lean is Challenging in the U.S.?
100
90
Japan
80 U.S.
World
70
60
50
40
30
20
10
0
Power Distance Individuality Uncertainty Long Term
Avoidance Thinking
Source: Hofstede Cultural Scores for Japan, U.S., and World Average
Page 26
Traditional Business Assumption:
Quality Decisions and Technology Create Competitive Advantage
Competitive
Top Right Right
Supporting Supporting Supporting
Advantage &
Management Strategy & Products &
Systems Systems Systems
Shareholder
Decisions Investments Technology
Value
Page 27
Toyota Way Business Assumption:
Quality People Create Competitive Advantage
Competitive
Advantage &
Mutual Prosperity
Quality
People
Supporting Strong
Systems Culture
Page 28
Traditional Company Approach to
Lean Six Sigma Deployment
Philosophy
Lowest Unit Cost
Performance Measures Principle

Project ROI, Movement of Lean & Six Sigma
KPIs. Total cost savings reduce cost
Strategy
Deploy lean & six
sigma initiatives
across the enterprise
Tools Method
Executives delegate to
Lean and Six Sigma
lean six sigma experts
complementary tool
deploy lean projects
kits
Reason
Together lean and six sigma
reduces inventory cost
and operating cost
Result
Control Method Effect Short-term cost
KPIs tracked, Projects save $, but savings, changes not
management reviews, only localized sustainable, churning
reports impacts and only and instability of
black belts develop company and culture
Page 29
Toyota Approach to Developing
the Toyota Way
Philos ophy
Kaizen & Respect for People
Principle
Performance Measurement
Safety, Morale, Quality, Quality People Continuously
Cost, Delivery Improve System
Strategy
Quality People
Value Stream
Result
Key Lean Tools Continual Waste
Method Reduction,
Std Work, JI Training Leadership hierarchy directly Competitive
GPS, Floor mgmt system, involved through teaching and Advantage, Mutual
Andon, Problem solving teams coaching Prosperity
Reason
Kaizen is the engine that drives
competitive advantage
Control Method
Effect
Visual Controls,, on the floor
Kaizen by people in the
audits & coaching, HR
process leads to continual
oversees fairness & equity
organizational learning
Page 30
Language of Lean Six Sigma
versus Toyota Way
Typical Lean Six Sigma Toyota Way
Deploy the Methodology Grow People’s Capability
Master Black Belt Sensei (teacher)
Data Collection Genchi Genbutsu (go see actual place,

actual part)
Kaizen Event (Rapid Improvement Event) Jishuken (voluntary self study)
Conduct a Project System Kaizen/Process Kaizen
Deploy the Standard Method Teams own the Standardized Work
Spread Best Practice Yoketen (transplant and tend the seedling)
DMAIC Toyota Business Practices
Deploy the Metrics Shopfloor Management System
Hold Accountable for Achieving Metrics Hoshin Kanri (policy deployment, with
focus on process and results)
Labor Reduction Eliminate Positions 12/15/2023
© Copyright David Meier & Jeffrey Liker
Page 31
Opportunities for Improvement
Source: Robert Kucner, PhD Dissertation, University of Michigan, 2007
Page 32
Mechanistic Deployment through
Independent Projects= Little Learning
Page 33
Digging Deep through Spirals of
Learning and Engagement
Page 34
Key Characteristics of Implementation Approach
• Focus on the Gemba (where work is done)

• Start with Value Stream (not isolated project)
• Just-in-time Training (learning by doing)
• Drive cultural change through concrete projects and coaching
• Engage work force for ideas and buy in!
KEY TO SUCCESS: Involve Management in real-time learning

process!
Page 35
Support Structure for Lean Implementation
• Committed TOP level leadership who make it a priority to

actively LEARN and TEACH the process (participate and coach
others)
• Top notch lean managers (minimum 10 years lean experience)
• High level lean coaches (minimum 5 years experience)
• Plant Management actively learning and teaching the process
Page 36
Final Thoughts
“Every day, little up”
“Some days, big up”
“Until you take the first step, it will not be possible to see the next step”
Page 37

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Sustaining Lean

Western Massachusetts APICS

Get away from isolated perspective / process improvements

Process 1 Process 2 Process 3

© Copyright David Meier & Jeffrey Liker 12/15/2023

© Copyright David Meier & Jeffrey Liker 12/15/2023

OVERALL: LEAN SYSTEMS INCREASE THE NEED FOR DISCIPLINE,

© Copyright David Meier & Jeffrey Liker 12/15/2023

“It is not possible to ‘Be Lean.’

It is only possible to work toward ‘Becoming Lean.’

Being “Lean” would mean there is a process in place that will

© Copyright David Meier & Jeffrey Liker 12/15/2023

"Now we are Lean"!?

© Copyright David Meier & Jeffrey Liker 12/15/2023

• Being “Lean” is relative-

© Copyright David Meier & Jeffrey Liker 12/15/2023

© Copyright David Meier & Jeffrey Liker 12/15/2023

© Copyright David Meier & Jeffrey Liker 12/15/2023

• Working to improve the 4 P areas will always make

© Copyright David Meier & Jeffrey Liker 12/15/2023

• Maintaining the production system takes an

© Copyright David Meier & Jeffrey Liker 12/15/2023

© Copyright David Meier & Jeffrey Liker 12/15/2023

• People who have broad experience in Lean

Spread Lean Across the Organization

© Copyright David Meier & Jeffrey Liker 12/15/2023

Most But, the part we

© Copyright David Meier & Jeffrey Liker 12/15/2023

Resistance Initial Big Slowing Plateau Continuous

© Copyright David Meier & Jeffrey Liker 12/15/2023

© Copyright David Meier & Jeffrey Liker 12/15/2023

Lean Deployment Business Transformation

© Copyright David Meier & Jeffrey Liker 12/15/2023

Lean Deployment Business Transformation

© Copyright David Meier & Jeffrey Liker 12/15/2023

Verify / Adjust Correct Mistakes in design

Learn to Manage Measure and Monitor

Improve System Repeat

© Copyright David Meier & Jeffrey Liker 12/15/2023

The Toyota Way 2001

© Copyright David Meier & Jeffrey Liker 12/15/2023

What we see: Andon, Kanban, Charts,

What they say:

What is at their Core: All team. associates

© Copyright David Meier & Jeffrey Liker 12/15/2023

© Copyright David Meier & Jeffrey Liker 12/15/2023

© Copyright David Meier & Jeffrey Liker 12/15/2023

Performance Measures Principle

Master Black Belt Sensei (teacher)

Data Collection Genchi Genbutsu (go see actual place,

Conduct a Project System Kaizen/Process Kaizen

Deploy the Standard Method Teams own the Standardized Work

Spread Best Practice Yoketen (transplant and tend the seedling)

DMAIC Toyota Business Practices

Deploy the Metrics Shopfloor Management System

Source: Robert Kucner, PhD Dissertation, University of Michigan, 2007

© Copyright David Meier & Jeffrey Liker 12/15/2023

Source: Robert Kucner, PhD Dissertation, University of Michigan, 2007