Lean Managment Journal - Issue 6

stAYInG LeAn proFessor peter HINes

Lean education not just another brick in the wall

lmJ explores methodologies for teaching programmes to ensure learning results in tangible, autonomous improvement of benefit to the whole enterprise.

Understanding education – Gill Woodward, constellation Wines Australia and europe, explores the extent to which trainers in industry and business identify themselves as teachers and leverage knowledge around learning theory to ensure better returns on training investments.

Relentless Discovery – steve spear, mIt sloan school of management, discusses whether benefiting from complexity really means escalating risk. spear reflects on the major systems failures of recent years, including those at toyota and bp.

Lean Learning – ben salder, bAe systems submarine solutions, describes the evolution of the bAe lean training programme. He shares the company’s journey from training lean to lean training and highlights the scheme’s principles.

The Lean Management Journal is supported by the Lean Enterprise Research Centre, Cardiff Business School

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Issue 06 september/october 2010 www.leanmj.com

In this issue:

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Dear reader,

to say that the last few months have been characterised by uncertainty for many organisations in the UK, and further afield, would grossly understate the uncomfortable limbo that many have suffered. the need to do more with less has become something of a cliché in business and industry since the most recent recession exposed the vacuous foundations on which the prosperity of the previous decade had been built. proving with finality that we had not overcome boom and bust after all. the renewed focus on efficacy that has emerged as a consequence has put extra force behind spending reviews and brought about swinging budget cuts for both public and private enterprises alike. one of the most vulnerable areas in times when investments must be justified so rigorously is training and employee education. However, if enterprises also hope to progress with lean maturity these are the very areas that need care and attention. the key, as readers will see in this lean education special, is to ensure that training is aligned to key business objectives and results in ongoing improvements. this means training for employee empowerment and managing so that improvements can be made autonomously, continuously and with sensitivity to value.

As peter Watkins highlights in Leading Learning (p06)this demands changes in perspective, not only on the part of those who perform the work but, crucially, on the part of management and senior leaders. the challenges in changing the paradigm of these roles, so that micro-management and fire fighting are no longer the norm, are animating many in the lean community at the moment and LmJ is hosting discussion on these topics and more at its Lean Directors seminars (one in september and another, due to popular demand, in early December. see p39 for more details) It should not have escaped the notice of any improvement professionals working in the british public sector, or in private firms supplying goods and services to this sector, that directives from the government led strategic spending reviews are due to take effect in october. LmJ is keen to hear about the impact these reviews have had, and will continue to have, on the activities of continuous improvement teams and lean initiatives – if you and your team have been affected or anticipate repercussions on staffing, resource or focus please do get in touch and share your thoughts by using the contact details below.

In the meantime, enjoy this issue.

Jane Gray commissioning editor email: j.gray@sayonemedia.com tel: 0207 202 4890

Editorial

Commissioning Editor – Jane Gray j.gray@sayonemedia.com

Design

Art Editor – Martin Mitchell m.mitchell@sayonemedia.com

Designer – Vicky Carlin studio@sayonemedia.com

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In order to receive your monthly copy of the Lean Management Journal kindly email j.gray@sayonemedia.com, telephone 0207 4016033 or write to the address below.

Neither the Lean Management Journal or SayOne Media can accept responsibilty for omissions or errors.

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Terms and Conditions Please note that points of view expressed in articles by contributing writers and in advertisements included in this journal do not necessarily represent those of the publishers. Whilst every effort is made to ensure the accuracy of the information contained in the journal, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrieval system or transmitted in any form or by any means without prior written consent of the publishers.

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s e p t e m b e r / o c to b e r 2 0 1 0 c o n t e n t s

introducing the editors

05

news

06

leading learning

Peter Watkins, GKN, opens the issue; sharing his experience of common failings in lean education programmes and thoughts on how to overcome these.

pRinCiples and puRpose 09

understanding education

10

a world first

16

Qualifying lean

20

Teachers in business and industry are failing to understand and leverage an extensive body of knowledge around education and learning. Gil Woodward, Constellation Wines, asks readers to think more deeply about their teaching methods.

Case studies and implementation 28

lean learning

31

star performers

35

Foundations for change

37

damascus moments

38

Book Review

39

events

A decade after its inception John Bicheno, the Lean Enterprise Research Centre, reviews the evolution of the world’s first MSc in Lean Operations.

Incorporating lean principles into fundamental industry and business qualifications is far more advanced in some sectors than others. Anne Watson, EAL (EMTA Awards Ltd), discusses how and why the body chose to include assessments of lean understanding in their engineering qualifications.

Relentless discovery

Steven Spear, MIT Sloan School of Management, explores whether growing complexity necessitates compromise on growth or safety.

Ben Salder, BAE, relates the evolution of the company’s lean training programmes. Sharing the grounding principles behind training activities and discussing how teachers of lean can become lean teachers.

As the conference and awards season for businesses in all sectors approaches LMJ talks to previous stars to understand what makes their organisations worthy of acclaim. Featuring interviews with DHL, LSG Sky Chefs and Shepherd Neame breweries.

Glynn Finney, Simpler Consulting, explores how to build the foundations of an enduring lean improvement culture. Referring to work at Royal Bolton Hospital’s NHS Trust and Finney makes clear that understanding the long term nature of a lean journey at the outset is essential.

Mike Riungu, PSN Ltd, shares his moment of lean enlightenment. The latest in a series of articles looking into the influences which have prompted true realisations about the potential lean thinking can bring.

John Bicheno reviews Green Intentions by Brett Wills.

Britannia House, 45-53 Prince of Wales Road, Norwich, NR1 1BL T +44 (0)1603 671300 F + 44 (0)1603 618758 www.sayonemedia.com.

Lean management journal: ISSN 2040-493X. Copyright © SayOne Media 2010.

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Introducing your editors Articles for LMJ are reviewed and audited by our experienced editorial board. they collaborate on comment against articles and guide the coverage of subject matter.

Jacob Austad

Leanteam, Denmark

Warwick Business school

bill bellows

ebly sanchez

John bicheno

peter Watkins

Norman bodek

Wendy Wilson

brenton Harder

Dr Keivan Zokaei

Pratt & Whitney Rocketdyne

Lean enterprise Research centre, cardiff Business school

Pcs Press

credit suisse

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Dr Zoe radnor

Volvo Group

GKn

Warwick Manufacturing Group, University of Warwick

Lean enterprise Research centre, cardiff Business school

More information on our editorial board, their experience, and views on lean is available on the LMJ website: www.leanmj.com 4

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Welcome to the board! another change to lmJ’s experienced editorial board of lean exponents. sadly, peter Hines, co- founder of the lean enterprise Research Centre and an influential player in the inception of lmJ itself is retiring from the board to attend to growing commitments with his independent consultancy firm sa partners and international research projects.

although peter’s shoes will be hard to fill lmJ believe that dr Zoe Radnor, pioneer for lean in the public sector, will bring valuable knowledge and experience to the board. dr Radnor is a reader in operations management at Warwick Business school and a fellow of the advanced institute of management (aim).

strategic Defence and security Review (sDsR) in response to government rationalisation drives to support deficit reduction spending reviews are taking place across government and public sector bodies in the uK. one of the most rigorous reviews is that taking place throughout the ministry of defence. the sdsR will examine the efficiency of all defence and security departments including diplomatic networks, intelligence agencies and counter-terrorism. the sdsR is being led by a central team at the Cabinet

office (the structure and purpose of which was addressed in lmJ issue 04) and is intended to provide a coherent approach to defence across government, ensuring that resources for the uKs armed forces are matched to foreign policy requirements and that the defence budget is spent efficiently. the results of the review will be released in october. a spokesman from the defence support Group (dsG), a government trading fund supporting the achievement of defence objectives and which

has had success in rationalising its services through the use of lean, told lmJ that “the review will enforce a much more rigorous approach to the kinds of projects we are already pursuing. i hope it will increase focus on lean and help to create a more holistic programme across our organisation, and others, by making it necessary to apply lean in areas as yet untouched.”

Given that continuous improvement capability at the mod has already been downsized, this may prove challenging.

Another quality casualty the company reported that the quality issue stemmed from problems in paper testing but would not clarify further. in this issue of lmJ stephen spear examines the role of testing and experimentation in handling complexity. see Relentless discovery on page 18.

if you have any news that you think would interest and benefit the lean community please let us know. send submissions to the commissioning editor Jane Gray: j.gray@sayonemedia.com

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de la Rue disclosed in July that its overton paper factory suspended production of a special type of paper used to make bank notes due to irregularities of a “serious nature”. in late august the Ceo resigned, taking on responsibility for the aberration in operations.

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Leading Learning Peter Watkins, global lean enterprise and business excellence director at GKn and LMJ editorial board member, clarifies the importance of lean education for all employees and spotlights key action points for meaningful training.

The conventional definition of management is getting work done through people, but real management is developing people through work Agha Hasan Abedi

the people who perform the work are the foundation of every company, but leaders are responsible for creating an environment that enables employees to solve problems and improve the way they work. How do companies successfully develop everyone in lean thinking and align all levels within an organisation to create a lean culture? one of the best ways to learn is from our mistakes. i have collected together some of the key problems i have seen various companies grapple with when educating staff in lean thinking and have also suggested some counter measures. it might be useful to bear both problems and solutions in mind when reading the rest of the content in this lean education special edition and think about whether they apply to your work environment.

Organisational Wide - Key problems

Organisational Wide - Counter measure

Robust problem solving is not seen as the no.1 lean skill to be developed Leadership gives responsibility to employees to solve problems. Then by using A3 processes, help and used on all problems at all levels develop and coach them in robust problem solving Organisational roles and metrics are not changed to support Lean Implementation but continue to drive old behaviours

Align and change organisational roles and metrics to support key processes rather than focus on department and functions’ performance

Executive Leadership - Key problems

Executive Leadership - Counter measure

Not understanding the need to be educated in lean thinking or delegating the responsibility for lean transformation and education to others

Educate senior leadership first (this might mean a mandate by CEO) with enough knowledge to coach through asking the right questions of the rest of the organisation

Not understanding how lean capability development should be integrated into company strategy to achieve business results

Mandate the achievement of lean skills into career progression levels. Use policy deployment to integrate lean development as a way of achieving strategic objectives

Demanding the implementation of lean thinking without changing management practices and leadership style.

Change performance reviews away from just financial focus. Walk the value flow and ask questions about how we can improve the way the work is done

Middle Management - Key problems

Middle Management - Counter measure

Not understanding the end of micro management and failing to appreciate the new style of leadership required as teachers of lean thinking

Develop leadership standard work to provide a framework for leaders in changing their role and their capabilities as lean teachers

Focusing on lean tools and not developing core leadership skills.

Behavioural and motivational needs are not addressed and process improvement proves unsustainable

Develop leadership skills in parallel with lean knowledge to enable better coaching and constructive feedback. Leadership should develop their own lean behavioural standards and hold themselves accountable

Not being able to envision good lean deployment and expecting a blueprint approach instead of action learning using P-D-C-A (Plan-Do-Check-Act)

Describe what good deployment looks like and ask senior leaders where they are on deployment.

Develop and visualise leadership standard work to ensure P-D-C-A on process improvements

Team leaders/team members - Key problems

Team Leaders/Team Members - Counter measure

Team members are not taught and coached in lean thinking and how to apply that lean knowledge by their own team leaders

Managers must change the daily activities of team leaders to support daily problem solving and develop the lean thinking capability of their own team

Learning lean simply through running kaizen events rather than systematic daily employee involvement

Employee involvement systems should be developed by all team members and should be focused on making small daily improvements This must be taught and coached by their leaders

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GKn is developing a culture of Continuous improvement where all employees are able to see the flow of value, can understand their role in it and are involved in improving it. this requires long-term commitment to developing people at all levels. in the last five years GKn has graduated thousands of employees from executive leaders to shop floor team members through our various lean education programmes. Graduates now have a clear understanding of how lean thinking should impact their work.

GKn’s Ceo sir Kevin smith firmly believes in giving everyone the right to contribute to improving the way we work by developing their capability. this support from the very top of the company has helped to keep lean education at the core of company strategy. E N D

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UnDeRstAnDInG eDUcAtIon GIL WooDWArD

Understanding A

ny company truly committed to getting the most out of lean principles is likely to have taken bold moves in recent years to invest in the lean training of their employees.

However, in several cases now I have seen dissatisfaction from the sponsor responsible for commissioning this training. too often the return on training investment fails to manifest. this is largely because on returning to the day job, that’s exactly what trainees do – perform their role exactly as they did before. sometimes evidence of changes to practice are visible: the application of tools or the ability to remember buzz words and often financial targets are met, but the changes in thinking we aspire to in lean training are rarely accomplished. so what are we doing wrong in our training courses?

I hasten to clarify that I do not condemn the concept of training or the good intentions which motivate it.

However, I would suggest that many companies would benefit from changing their perspective on training and questioning whether their current approach is delivering the outcomes they expect from employee development. the days of the classroom-based green belt course are on the wane, and we need to consider what limits the effectiveness of this style of training intervention?

some of the skills required for business transformation, change management or continuous improvement are

pRinCiples and

often our trainers in green belt or lean training courses are effective practitioners or business leaders in their own right prior to taking on the additional responsibility for training. Few in the manufacturing sector (and I believe the same may be true in other business areas) have received significant teacher training and, indeed, some would have difficulty with the idea of identifying themselves as teachers.

puRpose

Effective learning is crucial to a successful lean transformation and how we facilitate learning is an aspect of lean transformation that is firmly in our control

education

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Gil Woodward, lean enterprise manager at constellation Wines Australia and europe, delves into the conceptual foundations of education and training approaches. can better understanding of these aid return on training investment?

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synergistic with those required to teach effectively, but there are others that need to be developed in a more concerted way. there is an enormous body of knowledge in education that can help us inform our practice in this key component of lean transformation.

In my opinion this body of knowledge is poorly leveraged by industry and there is great potential for our lean trainers become more effective in their roles through understanding educational concepts more thoroughly.

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In my own experience I have applied the theories of soviet developmental psychologist, Lev Vygotsky, published in the 1920s and early 1930s, to help guide the development of training at constellation. Vygotsky’s work gave rise to the educational school of thought known as social constructivism, an approach in which learning becomes a joint enterprise between learner and teacher. Vygotsky’s work identified the importance of the simple presence of the teacher in the learning environment. He discovered that this presence aided learning even if no direct instruction or guidance is given. In short, learners draw confidence from proximity to experience. For industry training this suggests that trainers need to think about how their presence in the workplace, as well as the classroom, will affect learning. of course there are alternatives to the constructivist model of education. perhaps the most prevalent is the behaviourist or skinnerian model, in which desired behaviours are rewarded and deviations punished. this model seeks to ingrain desired behaviours through repetition, creating practice patterns from which it feels unnatural for the trained individual to diverge. I would suggest that each of these conceptual approaches have their own merits, but understanding the theory behind them helps to ensure that a tutor applies them under appropriate situations. the motivations of the learner have a lot to do with how we should think about structuring their learning experience.

How can we leverage lean knowledge and education theory for better training programmes?

Let’s consider the planning of a training session. First of all it can help to use basic lean tools themselves in thinking about the value you are pursuing with your training initiative. I like to explain the planning process in terms of Ipo.

input

process

output

When I was taught to use this lean tool, I was taught to describe the output first, then the input and finally map out the process that transforms one into the other. planning a successful training session is very similar.

Firstly define the desired outcome and then isolate individual, actionable objectives which clarify the direction for the training.

Finally think about the process you’re going to guide the learners through, between sharing the objectives and the learners realising the outcome.

outcomes

once the training is complete, what will it look and feel like? How will you know the trainees have realised the intended outcomes? If we don’t specify this clearly it is unlikely that the activities we plan will satisfy our needs. We understand this in our analysis of industry processes. Fundamental lean tools such as DmAIc demand that the first step on any improvement journey is to define. the education context is no different.

A common start point for establishing the desired outcome of training is to consider, “What do we want to get out of it?” Implicit in this question is a perspective on the learning transaction that I question. surely we should be establishing “What will the learners get out of this?” this might seem like semantics, but it can be indicative of the thinking that the teacher is using and it can affect their teaching practice.

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UnDeRstAnDInG eDUcAtIon GIL WooDWArD

Is your planning process for training centred on the learner? the learner is the person we want to affect and their learning will be as unique to them as their experience already is. time needs to be taken to define the outcome required for and from the learner. Is it enough that a learner can recall the names and components of lean tools? the obvious answer is ‘no’. We need them to be able to explain what the purpose of the tool and consider how to apply it to their workplace. our desired outcome is a trainee with the capability to think intuitively and with a deeper understanding about their knowledge and its application to their prior experience.

objectives

setting objectives around what is expected of trainees, not just in terms of assessment target but in terms of how they think, clarifies the input that is needed for effective learning. objectives distil the identified outcome into bite-size tangible statements that the learners can grasp and evaluate for themselves, thereby assessing their own progress.

Few in the manufacturing sector (and I believe the same may be true in other business areas) have received significant teacher training and indeed some would have difficulty with the idea of identifying themselves as teachers

pRinCiples and

puRpose

Again, if we refer to the educational theory we can gain a better understanding of what these objectives mean for trainees and identify potential moments of difficulty in the learning process. educational psychologist benjamin bloom described a hierarchy in educational objectives, reflecting the complexity and difficulty of the thinking required around them. At the lowest levels is recall and describe – evidence of remembering on the part of the trainee. once this level is achieved we progress onto the comprehension stage – this is characterised by the emergence of the ability to interpret and explain on the part of the learner. this stage requires careful attention from the tutor as, if a learner is simply regurgitating your explanation they are still in the recall stage. this is a common trap for trainers and it takes care and attention to develop assessments and application scenarios for trainees that delineate between descriptive abilities and the capacity to interpret and explain independently.

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to achieve this we need to question how we are asking trainees to think during the education process.

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the highest level of learning progression bloom identified is that of critical thinking – characterised by analysis, evaluation and application.

It is this level which lean training should aspire to at all employee levels if real benefit is to manifest in the workplace. It is critical thinking that I hope to generate through you the reader, reflecting on this article.

What do your objectives say about your training?

process

the ideas of Vygotsky have given rise to a concept known as scaffolding, which can be useful to bear in mind when designing a training process. scaffolding is the effective use of prior knowledge, skill or experience to build towards an intended outcome. Vygotsky described the space adjacent to our current knowledge or skills as the ‘zone of proximal development’. If our process exists for the learner within that space we’ll be able to help them scaffold new information onto what they already know, evaluate it and assimilate it into their own body of knowledge and skill, hence the term ‘constructivism’. experience is the crucial term, without practical experience learning is unlikely to be embedded. many readers will be familiar with David Kolb’s model for experiential learning illustrated below:

active experimentation

abstract Conceptualisation

Concrete experience

Reflective observation

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this four stage process has been expanded and built on by peter Honey and Alan mumford. they identified that all learners have preferences for particular stages of the process, ascribed the labels of Activists, reflectors, theorists and pragmatists to each learning preference and aligned them with the stages of the Kolb model.

If we can structure our training to guide learners through an iterative process of experiential learning we can have confidence in its effectiveness to deliver the outcomes we aspire to. clearly multiple iterations of this cycle cannot happen in an hour in a classroom. the interventions made in the classroom are critical, they can kick off a process, provide a space for experimentation or a space for reflection but we need to appreciate that the learning process happens inside the mind, not in any one physical space.

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UnDeRstAnDInG eDUcAtIon GIL WooDWArD

mission accomplished?

effective learning is crucial to a successful lean transformation and how we facilitate learning is an aspect of lean transformation that is firmly in our control. I have briefly described here some educational concepts and some basic tools which have influenced my planning of educational interventions. I hope I have prompted you to think critically about your training mechanisms.

What motivates your training, what is required of the learner in terms of thinking and how does this impact on the processes used to facilitate learning?

If reading this has made you think again about the way you deliver training and perhaps prompted you to find out more about the educational concepts on which different teaching models are founded then I have achieved my intended outcome. E N D

There is an enormous body of knowledge in education that can help us inform our practice in this key component of lean transformation.

In my opinion this body of knowledge is poorly leveraged by industry

editorial comment

It is a pleasure to be exposed to the ideas of Vygotsky and see their resonance with Deming’s Plan-Do-Study-Act approach. This also has similarities with the Kolb approach in that the instructor is encouraged to learn themselves as part of the learning journey of each student. Many learning models have similarities, but this should not excuse readers from being complacent about the way they teach.

The way you educate should be constantly reviewed to ensure it is appropriate to your learners and your organisational culture.

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pRinCiples and

If there is one area for readers to be wary about in this article it is in the IPO model. Although this is a useful description of the important components in formulating a training schedule its linear nature misses the fact that “output” must be reflected on by the teacher, both in terms of what the student learns and what the teacher learns. The closed loop models of Kolb and Deming highlight the need for “reflective observation” more clearly.

puRpose

Gil is right to encourage greater rigour and depth of understanding in training for industry. Too often training is escalated, without real direction, to involve more and more employees due to a quixotic notion that building a foundation of practitioners to practise what we preach will guarantee dividends. In fact this scattershot approach results in a tourist mentality to training which seldom leads to tangible change. Gil’s constructivist approach, characterised by the ability to self-interpret and build relevant knowledge is far more likely to achieve transformation.

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THE FIRST

MSc IN LEAN

John bicheno, course director at the Lean enterprise Research centre, cardiff Business school, explains the guiding principles behind the world’s first Msc dedicated to lean operations and takes the opportunity for a reflective review of the courses evolution over the ten years since its inception.

t

he programme began following recommendations from an executive steering group that were reviewing the outcomes of a major research programme: the Lean Leap project, undertaken by Lerc. At the time, Dan Jones and peter Hines were the directors of Lerc.

I have been fortunate to be course director since its inception – an experience that has taken me into a huge variety of companies and led to me learning a great deal from students and staff. two successive course sub-directors for the service stream, Leanne Wales and Keivan Zokaei, joined me for a few years. (more on the service stream later.)

philosophy

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to try to teach lean is a challenge in any scenario, but creating the world’s first lean msc posed some unique problems. to try and tackle these challenges the course designers adopted five principles to guide the course development. these have remained over the last decade: the course would be taught at ‘the gemba’ as far as possible. lean can only really be taught through handson experience. Five of the eight course modules are taught partly or fully on-site at student locations.

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t H e F I R st M s c I n L e A n J o H N b I c H e N o

the students would all be practicing managers from companies doing lean. no full-time students would be allowed. nor would any student be able to take the course without several years of work experience. this has enhanced learning by adding networking and industry knowledge sharing. as it has turned out most students are in their 30’s and 40’s, with a very few in their 20’s and 50’s. Virtually all students are sponsored. the course would only be part-time. this follows from the first two principles. throughout the 10 years of the programme the format has remained the same: 8 one-week modules during the first 14 months, followed by a dissertation in the remainder of the second year a balance of university academics and practitioners would teach the course. Being taught exclusively by university academics, as happens on the vast majority of masters programmes, would not be conducive to the practical nature of lean. moreover, each module would not be taught by a single lecturer, as again is the norm, but by team teaching where interaction, discussion and indeed disagreement would be the norm. no ‘party line’. lean has many influences and the Cardiff programme should not advocate any one of them above another, instead aiming to present a wide range of opinions. the above principles have not always sat easily with the university establishment, and in order to maintain full master degree status compromises have sometimes had to be made to conform to university requirements. slowly, we have learned how to do on-site modules better. the experience is similar to that of kaizen events: preparation is key. on site modules are held at student locations, and this means that no module is ever the same. preparation has to adapt to the practical problems of each new site.

We have learned that a group of greater than 15 students is impractical for close involvement and participation. this means that the class size is limited – another difference from some masters programmes that have classes of 50 or more, a development obviously favoured by university administrators. We also bear in mind that on-site modules benefit greatly from the participation of company people (on all levels) who frequently sit in on module sessions.

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In early years of the msc there was strong participation from automotive companies – both car manufacturers and first tier suppliers. Gradually car manufacturer participation declined to zero (except mcLaren), but this was compensated for by second tier auto

pRinCiples and

Changes in student profile

puRpose

of course lean has developed greatly over the last ten years. Lerc has tried to take account of changing interest areas and concepts in the course delivery and, in turn, we have seen our student profile and teaching staff develop.

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interest. this reflects a growing internal confidence in automotive in lean thinking and education. the second dominant tranche was aerospace, including maintenance, which peaked around 2007. From the mid 2000s medical device manufacturers began to be strongly represented – a trend that still continues. pharma and food and drink now account for a significant proportion. traditional mechanical engineering, ‘widget’ manufacture and computer manufacture have been erratically represented overall. this is interesting because much of the literature in lean is automotive or ‘widget’ higher-volume discreet manufacture, but these sectors do not represent the majority of our students. of course, most students are from the UK. Non-british students have gradually grown; Ireland has come to represent a significant source of students and Denmark, too. In the current group there are, surprisingly, students from UsA and south Africa whose sponsorship necessitates funding about 12 trips to the UK over the two years on the part of their employers.

Women? there has been disappointingly small representation of women; around one or two per year, out of 15 students. but performance on the course has more than compensated – women have frequently been amongst the top performing students.

the service stream

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Gradually, interest from the service sector and lean administration has grown. Health, local government, defence, logistics, consulting, banking and insurance are sectors that have been represented.

Interest in lean service grew to such an extent that a service stream was launched in 2006. Again, this was a world first and applications have been strong.

However, in 2010 service applications fell off a cliff. this was disappointing for Lerc but has been compensated for by a huge rise in manufacturing applications and as a result the centre will run two manufacturing streams from september 2010, dropping the provision for students from service orgainisations. this development completely contradicts our expectations of seeing a rise in service interest! can we conclude that lean in service is under pressure, while lean in manufacturing is buoyant?

Changes in course content

overall the teaching of tools has declined over the last 10 years, while systems have received greater emphasis. our practitioner students have exerted a pull influence over the evolution of course content. I believe that no module has ever had the same content for two years. specific changes have included the following: systems: systems thinking now plays a big part in several sections of the programme. an important influence was that of John seddon who was appointed as visiting professor for three years. interest in systems thinking is apparent throughout the lean world; indeed one might argue that systems thinking has been the true heart of lean for decades, with deming being an explicit advocate and ohno an implicit advocate. systems concepts permeate lean thinking on people, policy, design, supply chain, and more.

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t H e F I R st M s c I n L e A n J o H N b I c H e N o

tRaininG WitHin industRy: Cardiff, like others, has rediscovered tWi. several leRC staff have attended tWi job instruction, job methods and job relations courses and these long-neglected methods now figure prominently in several modules where the on-site delivery formula gives the opportunity to practice Ji, Jm, and JR. lean aCCountinG and measuRes: the growing recognition that the implementation of lean has often been held back by outdated accounting methods and measures, has been responded to on the msc. again, the views of several authorities on lean accounting are reflected. only a few students have had qualifications in accounting so both traditional accounting and lean accounting are currently explained.

psyCHoloGy and CHanGe: year on year, there seem to be new ideas in this area. although not necessarily mainstream lean, the stimulating ideas of, for example dan ariely, daniel pink, and malcolm Gladwell lead to good discussion. mike Rother’s work on toyota Kata, presented at the 2010 leRC Conference, is bound to be incorporated. lean is GReen: Very little has been said about lean and green interdependencies on the programme so far but it is sure to be a growth area. this is quite a significant list of changes. to incorporate them requires that not only is less time given to the teaching of older tools, such as changeover reduction and 5s, but also that students must read more themselves. the 2011 msc Lean operations is very different from the original 1999 version. but an aim of the programme is to place in the minds of our growing alumni, that lean is an ever-developing field and that a degree is only the beginning on an ever changing, ever challenging road. E N D

pRinCiples and

pRoBlem solVinG and ideas: a3 problem solving is taught early on in the programme and now used

lean leadeRsHip: discussion of this important concept, including that of leader standard work is steadily growing.

puRpose

stRateGy deployment: policy and strategy deployment have long been part of lean, but the publication of the shingo prize-winning booklet staying lean by leRC staff and associates has had an impact on msc course content.

on later occasions. possibly to the dismay of essay-loving traditional academics, some assignments are now presented in whole or part on an a3. the conversational nature of good a3 is encouraged by getting students to do several iterations with colleagues or fellow students. the related area of idea management has grown from something treated in passing to involve much more significant discussion.

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toC and FaCtoRy pHysiCs: theory of Constraints has always been regarded at Cardiff as integral to lean manufacturing. Factory physics, which some would argue as a successor but which is certainly a supplement to toC, has also begun to figure prominently. the insights on variation, capacity, pull and push, are valuable and several student projects that more-or-less reached the end of the road with toC and six sigma have now opened up new opportunities with factory physics.

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Qualifying Lean ann Watson, Managing Director of eAL (eMtA Awards Limited) discusses how and why lean manufacturing principles have been incorporated into the qualifications the body provides.

W

e all ought to know by now that the benefits of lean manufacturing extend beyond the commercial side of the business. With its emphasis on employee empowerment and clear communication between all levels of staff there is a holistic side to true lean thinking that companies beyond the manufacturing sector would agree is important to the sustainability of their organisation. one of the best ways to grow as a business is to focus on staff development and the route to this is through appropriate training. If we look at training conceptually, and see it as a means of achieving professional development, improved individual competency and business capability then, like lean manufacturing, it transcends the employment hierarchy.

An apprentice learning the core industry skills and a board director attending an industry conference both have the same goals – to become better professionals. Like lean, training is something which has both a commercial and a more holistic social element to it.

a natural partnership?

In recent times, the consumer landscape has drastically changed, with customers being given ever greater choice in available products and services. In conjunction with global economic instability this has led to price becoming a critical deal maker or breaker and the reduction of production costs through the elimination of waste has therefore become a vital aspect in business improvement. An understanding of this increasing consumer power over business should underpin any lean qualification and can be applied to any sector, not just manufacturing.

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eAL has been working lean principles into our qualifications for a number of years now as demand from industry has increased. A large number of our staff have manufacturing backgrounds and so there was an inherent lean competency that guided the way the principles were integrated into courses and assessed in different sectors. one set of qualifications we are developing are business improvement qualifications. these include education on the use of techniques such as 5s, the application of six sigma and the establishment of kaizen (not kaizen events but kaizen culture). the aim is to illustrate how lean principles can be applied in broader business terms beyond the

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Q U A L I F Y I n G L e A n A N N WAt s o N

However, when talking about training, it’s important to understand that incorporating lean knowledge into a qualification is not a panacea which can be used to improve a business. theoretical knowledge is only the first part of it, knowing how to apply that knowledge is just as important as acquiring the knowledge itself, if not more so! this is why it is essential to include real world examples in assessments and to ensure that assessment is tailored to a learner’s industry rather than generic scenarios. eAL trainee abilities are confirmed using a series of industry-relevant demonstrations. trainees must perform unit activities in their own environment and highlight how the techniques can be applied to a range of relevant business situations. As a result, learners’ theoretical knowledge is compounded with practical experience. their confidence, flexibility and capability is also enhanced.

How effective is it?

the principles behind lean manufacturing have an amazing breadth of relevance beyond the manufacturing sector, and can be developed for a range of employees regardless of age or experience. educating all employees – from mD to apprentice – to understand the significance of lean within their job role will have untold benefits for business, increasing productivity and reducing waste. In turn we will find that this benefits national economies and I believe that educating employers and employees about how lean principles can create more efficient and effective businesses in a streamlined economy is one clear way that we can speed up recovery from the recession.

Investing in lean training not only gives employees a valuable string in the bow of their skillset, but affirms the value that is placed in them creating a motivated employee who feels they are valued, thereby enhancing productivity and innovation. the latest recession has highlighted the importance of business efficiency to a range of organisations beyond the manufacturing sector but it has also highlighted the value of employee engagement and empowerment. Lean manufacturing techniques provide the tools for achieving efficient, business operations. they are a key which can unlock workforce potential, regardless of sector or workplace. E N D

pRinCiples and

However, learning is an ongoing process and senior staff should remember that this applies as much to them as to junior employees. eAL therefore also provide advanced qualifications. these provide the opportunity to assess and certify the

the way forward?

puRpose

We have seen positive results from apprentices who have taken qualifications that have incorporated lean knowledge, with employers highlighting the value that their new skills have brought. In developing lean knowledge at an early stage of an apprentice’s career, we can encourage them to think about the business holistically, see their role as part of a cross-functional interaction and avoid the perpetuation of silo working. they are also far more motivated to play an active role in the development of the company which has invested in their initial training.

competencies of those who implement and lead business improvement initiatives; certifying continuing professional development and building confidence in organisational competency gives structure to career progression and helps to build understanding between employers and employees around the expertise being applied to business challenges. It also increases appreciation of progress when it is made and equips change leaders with the latest theories that should guide their change strategy and bring competitive growth.

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manufacturing sphere and for crossfunctional benefit.

9/10/2010 2:13:45 PM

Steven Spear, senior lecturer at MIt sloan school of Management and author of The High Velocity Edge, reflects on system failures at BP, toyota and many others in recent years and asks whether growing complexity necessitates compromise on growth or safety.

Relentless discovery t

he world is still dealing with the repercussions of catastrophic system failures —technological, corporate, regulatory, market — that have impacted our personal and professional worlds.

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As a backlash there are some who now say we must retreat from the complexity these systems have accumulated, going back to greater simplicity — fewer electronics on cars, oil drilling closer to shore and “plain vanilla” financial instruments. In short these luddites reason that the risks of complexity are simply too great.

Why? one argument is that the complexity of the systems we now use is so overwhelming - cars, once relatively simple mechanical devices, now carry dozens of microprocessors linked in a highly dynamic network that manages entertainment, climate control, navigation, and more. Financial products exist that are derivatives of derivatives and which are traded across borders and markets. We simply cannot understand how to operate them safely so shouldn’t, just as there are certain situations to which we don’t expose children because they are unable to handle them.

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ReLentLess DscoVeRY stepHeN speAr

Another argument is that whether or not we can understand these systems, the people responsible for them are so greedy as to not care about their safety. by that argument bp pursued profit over prudence, toyota chased cash over caution, and financial market whiz kids worried about remuneration, not about market resilience. the Us Navy, for instance, had an incredibly rapid ‘time to market’ for nuclear propulsion; the program was started in 1948-1949 and a whole new science had to be discovered, new technologies invented, and new industries created, in a six year time frame. since the launch of the first nuclear powered sub, the USS Nautilus, the Us Navy’s nuclear corps has had a perfect safety record—no injuries or deaths due to reactor failure—despite putting varying models of reactors on hundreds of ships, each subject to extreme stresses and largely operated by young people, not many years out of high school and college. In comparison, NAsA’s experience with manned flight— another example of people operating in hostile conditions is sullied by the loss of the Apollo 1, Challenger, and Columbia crews and the soviet Navy has littered many an ocean bottom with failures in its sub fleet.

Be it the “we’re too stupid camp” or the “they’re too greedy camp,” the common theme is that we have to give up the benefits these complex systems provide or accept enormous risks in using them

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pRinCiples and

Aluminium producer Alcoa had an exceptional run at achieving near perfect workplace safety, reducing the chance of workplace injury from approximately 2% per year, to less than 0.1%. How? process engineers and plant managers didn’t all of a sudden get smarter—they were pretty darn smart already, and they didn’t get any less greedy. rather, their modus operandi changed. Yes, they still were rigorous in their engineering analysis but more significantly, they added a discovery mode, like that of the nuclear Navy. there was a new found emphasis on seeing problems when and where they occurred, solving those

puRpose

What was the secret to the Us Navy’s success? As I describe in The High Velocity Edge, from its earliest days, program leadership cultivated an environment in which answers to vexing problems would be resolved through discovery. At that time it was impossible to think one’s way to a credible design. too little was known. so the emphasis was on experimentation, models and pilots —all done at high speed but with great discipline in order to accelerate discovery.

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problems—preferably in situ so contextual factors were in evidence, and incorporating systemically and systematically this newly discovered information. toyota too, despite the potholes it hit the beginning of this year, has built an incredible run of success by cultivating discovery behaviors. time and again, when a problem arises—be it a small shop floor perturbation; the challenge of introducing a new model, or recovering from a significant disruption like the Kobe earthquake—the emphasis has been on solving problems through experiments, pilots and trials, without exclusive dependence on analysis alone. complex systems present a real conundrum to most. on the one hand, the only way to enjoy the benefits of ever advancing science and technology is by integrating the contributions of ever more specialties and disciplines. cars are far more functional, reliable, affordable, and available today because what was once largely a metal mechanical device now incorporates iron, steel, and aluminum, advanced polymers and ceramics, all with highly advanced electronics, software, telemetry and real time closed loop control. In healthcare a host of ailments can now be diagnosed and treated only because of the contributions made by specialists in x-ray, ct, mrI, genetic profiling, hematology, and all the rest. transocean was able to drill for bp as far from shore and as deep as it did because it was applying incredibly sophisticated nautical and production technologies, many of which did not exist a few years before.

the problem with complex systems is that we’ve passed a tipping point. so much has to be incorporated, with so many interdependencies, that we are well beyond the point at which a handful of clever designers might think their way to an adequate solution through design, analysis, and decision making. the only way to get exceptional performance is through relentless discovery. Yes, apply knowledge to analysis and design, but know that what you’ve designed is likely to fail in unexpected ways. You must listen carefully for those faults and respond to them quickly to understand why they occurred. that is part of the distinctive behavior of exceptional organisations.

When the post mortem is complete on the system failures of the past few years myriad causes will be found. However, common across the board we’ll discover that organisations assumed that what they had designed in theory would work in practice; that they dismissed little problems as insignificant rather than treating them as leading indicators and didn’t engage in high speed, non-stop experimentation to determine why the system was imperfect and how to make it better.

Giving up the benefits that complex systems provide is unacceptable, indeed impossible.

Accepting growing risks from their failures is unnecessary. We can enjoy great performance and great reliability but doing so depends on managing systems in a far more dynamic, learning oriented, discovery based way than is yet typical. E N D

editorial comment

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Our everyday activities are profoundly dependent on intensely complex sociotechnical systems and this article makes an important step in realising the effect these will have on the nature of accidents and risk management.

One of the main challenges as we move forward with complexity will be around sustainability; supporting more environmental legislation to consistently and effectively achieve prevention control modes in the whole value-chain, through suppliers, manufacturers and service.

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L? ?e?A ? ?n? ? ?L?e? ?A?R ? ?n? ?I ?n?G ?? b ? ?e? ?N? ?s? ?A? L? ?D? ?e?r?

ben Salder, senior business improvement manager at BAe systems submarine solutions describes the company’s lean training framework, exploring its development from motivating principles to the leaning of training delivery itself.

Lean learning

“W

e don’t make cars you know!” It’s a comment some readers will have heard, while working to transform businesses using lean principles. Initially it was amusing to hear this comment, especially when standing next to the largest and most powerful nuclear powered attack submarine ever ordered by the royal Navy, but it soon became apparent how important it is to make lean tangible, gain understanding that lean principles have far more significance in business than simply being a route to more efficient manufacturing and get people to realise what it means for their work.

For bAe systems submarine solutions the environment into which we implement lean is far from the traditional high volume, high repetition environment in which lean originated. And yet, even with build durations of 6-10 years and a takt time of 26 months, submarine solutions has found the principles invaluable in becoming a more effective enterprise from end to end our delivery process.

Creating the transformation toolset programme

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Case studies and

Initially focussed within operations, the emphasis of the ttp has been clearly placed on developing the internal leadership community into lean coaches so that process improvements are made by the responsible team and not to them. the ttp was only initiated once tangible improvement activities had been established within the business so that the delegates on the programme could take the theory learnt in the classroom and practically apply it to their work environment.

implementation

Having begun the lean journey by using external consultants, the small, local business improvement team at bAe submarine solutions identified the need to broaden the lean knowledge base in the business. the transformation toolset programme (ttp) was initiated in 2008 with the ambition of building internal capability and facilitating change and improvement targets.

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the programme was designed to give delegates the toolset (both in terms of lean tools and more importantly behaviours) required to support the transformation of the submarine solutions business into a lean environment. In order to give the learning added weight with delegates the ttp has been made into a six month programme – not just another internal development course, attended for the purpose of obtaining a specific skill but failing to mentor skills application or an understanding of the underlying principles.

In designing the ttp training, care was taken to ensure that it would deliver tangible benefits to the business. this involved applying lean value appreciation to the training development itself.

Whereas traditional training approaches view the delegate as the customer and aim to supply them with a skill, the ttp views the business as the customer. the value delivered by the course must convey meaningful improvement to the business – the delegates are the medium for this. by taking this value stream approach with clear end-point deliverables, the delegates not only obtain the skills required but also develop their own capability to implement improvements, with minimal external support. simply put, the training is focussed on developing a capability rather than achieving a qualification.

believe

Develop

me od tH

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Understand

aB

sK ill

e

Ca p

Val u

obtain

ility

the training model is simple: the programme is run over six months with an initial three week period spent in a training environment, this is followed by regular workplace coaching prior to presenting back to the senior management sponsors using an A3 report. senior management engagement throughout training is critical to the successful transfer of learning back into the delegate’s home functions. Iterative communication between the delegates and senior management prompts learners into exposing opportunities for the application of their learning in the work place and demonstrates the commitment of senior management to recognising achievements. the ttp team work closely with delegates over the six month course to support and coach them in exercising their new skills, behaviours and tools knowledge. expectations are set around each delegate’s achievements across a range of skills and more importantly behaviours. these are measured against a competency framework so that each individual is progressed from a potential base level of no understanding through to being capable of, and experienced in, delivering tangible change.

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LeAn LeARnInG beN sALDer

the learning model

the key learnings for the delegates are not what the tools are, but rather when and how best to use these tools to make the transformation sustainable. throughout the programme the leadership behaviours required to enable a successful implementation are the key focus area. the approach taken to ensure this outcome follows a simple model:

Play

Learn

Do

Review

learn

During the learning phase, delegates are taken through the basics of the subject in a classroom environment using as many real examples from both inside and outside the business as possible. each of these learning periods lasts for up to one hour to ensure that delegates (and facilitators!) remain as engaged as possible.

play

Having grasped the basics delegate teams of five are tasked with applying their learning through the use of games, simulations or video. this enables delegates to apply the tools in a safe, fun setting where mistakes are welcomed as an opportunity to learn. they also start to understand the behaviours needed to embed tools and begin the process of making the behaviours habitual.

What could be improved and how? this focuses the delegates and give them confidence in identifying improvement opportunities by themselves

3

What can you take back with you?

Delegates need to reflect on how their solutions can be applied and who by for maximum effectiveness.

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1 2

Case studies and

At this point the delegates are ‘set free’ on a go-look-see to review their workplace and report back on three key questions: What was good? It is easy to lose sight of all the great activity going on within a business.

implementation

do

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throughout the programme the delegates are working on real business issues which are linked back to the business and functional objectives. this means that the application of their new capability immediately contributes to improvements within the business.

Review

once the delegates have had time to reflect they share the outputs with the rest of the cohort using A3 reporting (further embedding the use of lean tools).

F R o m t R a i n i n G l e a n to t R a i n i n G t H e l e a n Way one of the key leadership behaviours for lean is to lead by example and this is as relevant when training people in the implementation of lean as it is in lean industry and business environments. to teach people how to implement lean without demonstrating the tools, techniques and behaviours yourself shows that you do not truly believe what you are teaching. the ttp delivery team realised soon after the launch of the initiative that there was more we could do in the delivery of our services to lead and teach in this demonstrative way. as a consequence we undertook a project to apply lean thinking to the training delivery process, transforming the efficiency and effectiveness of the education we offer and proving our own understanding of the power lean has to improve any business function. our objective has been to train in a lean way, using the lean tools and behaviours, rather than just training lean.

the value stream was mapped at a high level with the customer requirement being defined by an internal capability delivering tangible improvements across the five world class Kpis of safety, quality, cost, delivery and people (sQCdp). defining this value stream has given the training delivery team a whole enterprise view of what the business needs to develop in terms of internal lean capability and how to make it relevant to business processes.Following the value stream of the business, from concept through to in-service support, the programmes now offered by the business transformation training team cover both the product development and product realisation phases of the lifecycle as well as the support element.

initially the ttp was run by two people who were training and providing ongoing coaching or support to 42 people and needed to identify and reduce the waste in the processes we were operating.

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the first issue was to reduce the set-up time of each training cohort, which initially took 74 man hours. using simple tools such as standardisation of documentation, clear visual management, a basic kanban system to manage training material and by implementing 5s within the network drive to ensure that all material was quickly and intuitively available to anyone, set up time was reduced to just 12 hours.

after three years of development, the business transformation training centre is now seen as the hub of all lean activities within the Bae systems submarine solutions business and is also helping to develop a robust lean capability within the supplier base thus ensuring the long term sustainability of business improvement.

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LeAn LeARnInG beN sALDer

Behaviours and culture

the ttp seeks to create a sustainable learning culture that returns real benefits to the business. by mentoring course delegates in the application of their learning we help to make lean thinking and the use of lean tools habitual; embedded in daily work. the diagram below illustrates the thinking process behind the ttp culture change roadmap.

the change the culture you change the behaviours

to change the behaviours you change your actions

to change your actions you change your habits

the key learnings from the development of the ttp have been: the importance of senior management buy-in How to answer the “What does this mean for me?” question Consistency in leading by example ensuring delegates understand how and when to use the tools not just what the tools are – what problem are you trying to solve? apply the lean principles and behaviours, don’t just try and apply the lean tools.

Change the culture by changing habits. E N D

editorial comment

It is good to see BAE breaking free of reliance on consultants for lean development. The only way to change culture in a lasting way is for leadership to train and develop their own people.

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Case studies and

The progression through changing behaviours, actions and habits to support culture change is good but readers need to ensure that this thinking is backed up by a sound methodology to add discipline to the progression. For example, leadership should draw up a set of behavioural standards which they will hold each other accountable to and which will demonstrate a good approach to standard work.

implementation

It is positive that senior management are involved in trainee development but it is not enough for senior management to just be engaged. It should be a priority for organisations to train senior management first. Many senior employees do not have a sufficient foundation of lean knowledge and continuous improvement to enable them to judge trainee progress or ask appropriate questions about the improvements they have achieved. Without appropriate questioning it is unlikely learning will be sustained.

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Star performers some are simply doing better than others. Is it culture, tools, leadership or workforce that differentiate between success and failure in lean transformations? As we approach the autumn season of awards ceremonies and conferences LMJ talks to three award-winning lean organisations about the key elements in their lean deployments.

t

dHl

he Deutsche post DHL initiative, First choice earned the company overall acclaim at the IQpc process excellence Awards 2010 where the organisation was awarded the lead prize for best process Improvement programme. Holger Winklbauer, executive vice president of First choice, explains how a new focus for work and a change in management led to service transformation. “being the first choice of every customer is more, to us, than just token lip service� says Winklbauer.

In fact it is this principle which now drives all DHL operations and which guides the creation of organisational KpIs and targets.

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the First choice initiative was launched as a company-wide scheme in 2007 following a piloting period in 2006. prior to this time company improvement programmes had been internally focused in response to a rapid acquisition phase and the integration needs this created. However, having achieved internal alignment DHL was keen to make an impact at external interface points. “our focus changed to a cross-departmental approach driven by customer-centricity. this meant looking carefully at customer touch points and the process or processes which lay behind each one of these. In an area like logistics this could be very challenging due to the geographic distribution of the touch points.

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s t A R

“the first three years of the First choice project have been about gaining customer perspective – our improvements have not been about cost saving. that knowledge has made us think outside the normal business comfort zone and apart from gathering low hanging fruit and engaging employees the most important aspect of the first three years has been the chance it has given managers to become comfortable with First choice methodologies and perform ‘finger exercises’.

accelerated and had its profile raised since the start of 2008 when Frank Appel, a longstanding member of the DHL management board, was promoted to ceo.

Appel’s articulation of corporate strategy and the incentivisation scheme he pushed forwards for management has helped improvement gain extra traction and understanding with employees.

Appel’s strategy is known as strategy 2015. It has been communicated and recognised enterprise-wide and now First choice methodologies are supporting a culture of ‘respect and results’ in management practice across all regions and units.

DHL’s methodical approach to building capability and understanding across its locations shows an attention to detail and commitment to gaining sustainable results that is extremely commendable. the firm links they have created between customer-centricity and tangible business goals show a real appreciation and support for the customer value stream.

Case studies and

“making progress with the First choice approach to organisational improvement has meant a significant mind-shift from thinking about activity to thinking about outcomes.” this a mindshift which has been

The most important aspect of the first three years has been the chance it has given managers to become comfortable with First Choice methodologies and perform ‘finger exercises’

implementation

“Now we are using that knowledge to make an impact. We are setting significant targets for tangible results. For instance we aim to be number one for customer loyalty by 2012 and we are constantly surveying how well we are doing on this by measuring: how long customers stay with us, how much they spend with us and whether they will recommend us – a customer recommendation is more powerful than any marketing you can devise and says more about how you deliver your services.

Another one of our targets is to generate five hundred million euros of savings out of process improvement by 2012.

L m J

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“We used lean thinking and six sigma to help us define and improve the touch point processes but most importantly we changed our measurements of success from being based entirely on financials to measuring our rating as: provider of choice to the customer base, employer of choice for our staff, and measuring our corporate responsibility performance.

P e R F o R M e R s

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lsG sky Chefs LsG, the world’s largest supplier of in-flight services, were awarded their IQpc award for the best green process improvement project as well as receiving an honorary mention in the best start up programme category. chief operating officer UK, Dale easdon, spoke to LmJ about creating an organisational structure that supports transformation. stepping into Dale easdon’s office at LsG’s Heathrow location one of the first things I noticed among the organograms and performance graphs on the noticeboard was a sign saying “being responsible sometimes means pissing people off”. I steeled myself for an interview with a hard-nosed, nononsense leader who relished creating the burning platform to provoke progress.

A few minutes in however and it became clear that easdon’s outlook, although rigorous and demanding, is conscientious in considering the many cultural and social influences which impact on performance and service delivery. this approach has enabled the company to get to a state where the coo is confident in saying “We don’t lose our customers. our people don’t leave.”

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expanding on the LsG approach to lean excellence easdon says: “For the past four years our lean approach has been guided by four cornerstones which we call ‘Upgrade to Industry Leadership’. these focus on the key functional areas of the business – our people, our customer experience, cost base management (which does not necessarily mean taking cost out but may be looking at where to invest in the business for a strong return on investment) and innovation.” the success that LsG’s lean programme has had relies largely on the structured approach taken to responsibility and leadership at regional and functional levels. “In all regions of LsG worldwide a director for lean will be appointed within the senior management

structure and underneath that we have appointed co-ordinators by location –that sometimes means multiple co-ordinators at a location, typically by department. All of these roles require some pretty structured training. below that there is also frontline supervision from team leaders.” “my leadership role is in the middle of the business and you typically won’t find me in the office. It is my responsibility to drive lean. every Friday I hold a conference call which covers lean projects, financial performance, quality and customer service.

All UK locations are involved in this one hour call. If there is a miss financially then the next question is ‘what lean project are you working on to close that gap?’. “each year I update the cornerstones with the priority projects for the UK. Under each cornerstone are the projects we will work on for the next twelve months. If it’s not on that piece of paper, typically we don’t do it. of course there is always something – like volcanic ash for instance – that will take us slightly off track but it is really important to have that anchor to the cornerstones. “every two years I lead a management conference where all of the 120 directors, departmental and functional coordinators and team leaders in the UK attend. I present the vision and we break out to discover how to roll that into the business.

Last year – voluntarily – our suppliers also chose to get involved and furthermore they funded the whole event.” this UK conference is just one in a series of cascading meetings, training programmes and communications channels that embed lean thinking and technical understanding from the top to the bottom of LsG around the globe. the dedication from LsG’s supplier base in supporting and expanding this philosophy can surely only be proof that this approach to understanding work, process, people and customer value wins business and provides security to the supply chain in uncertain times.

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s t A R

one of the greatest improvements gained since lean training began has been the elimination of aircraft damage during service. “Damage to an aircraft can cost an airline half a million [pounds]. We used to be the worst performing region for aircraft damage across LsG and we had a number of customers who were less than satisfied with our performance. since the introduction of our lean driver training we have had zero damages in three years. We are now the best performing LsG region and we do not lose customers.”

perhaps the most impressive green initiative to be followed at LsG, and one which was hugely influential in their receipt of the best green process improvement award is the

LSG UK was the first flight catering company to fully recycle plastic glass and cardboard. We are three years ahead on this journey compared to the most recent of our competitors to take it up

optimisation of their dishwashing process. LsG operates 500 dishwashing machines in over 200 locations worldwide. Lean thinking, staff engagement and the use of It infrastructure have enabled innovation in the use of washing facilities. this is now coordinated with patterns of incoming flights and off-peak energy times. the process innovations applied have resulted in savings of over 20% on the water and energy previously used.

Despite this easdon says that the company never informs their customers about the start of new lean programmes “We just wait for them to tell us that something is different in the quality and value of what we are giving them.” Lean pr at LsG is focused internally and aims to engage staff and support creativity in improvement. easdon’s leadership and the company’s success is founded on a strong belief that well-informed actions speak far louder than the empty words that too many service promises or targets are based on.

Case studies and

more recently one of LsG’s customer set a contractual target for LsG to achieve zero waste to landfill by June 2011. Leaping on the challenge LsG decided to offer this

same assurance to all of their customers within six months. Again they will be the first airline catering company in the UK to achieve this environmental performance.

implementation

the confidence that LsG’s customers have in their services is due to their dedication to exceeding expectations and this dedication is never more apparent than in the company approach to corporate responsibility. “All of our customers are now putting together environmental policies. We are therefore doing the same and being extremely aggressive with it. LsG UK was the first flight catering company to fully recycle plastic glass and cardboard.

We are three years ahead on this journey compared to the most recent of our competitors to take it up.” LsG’s work on recycling now saves the company £300,000 per year and has also created unexpected revenue streams.

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However, if further evidence is needed easdon is ready with some impressive milestones and performance ratings. “We deliver thirty five different cuisines to the most prestigious airlines flying out of Heathrow. this airport has a sixty five per cent arrival and departure rate so thirty five per cent of all of our flights are late.

Despite this we are at ninety nine point nine per cent on time with the delivery of our services to every flight. that gives you an idea of some of the complexity and the service indicators.”

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shepherd neame tom Falcon, production and distribution director at shepherd Neame, has transformed the organisation from being simply a good brewer to being an outstanding modern enterprise. Falcon tells LmJ how lean expertise, culture change and the implementation of a powerful It enabler made the transformation possible and won them the IQpc award for best process Improvement project Under 90 days. “prior to my arrival improvements at shepherd Neame had been focussed on the quality of the product. my predecessor was an eminent brewer and micro-biologist and he achieved some fantastic modernisations in our brewing process. the legacy of that is that we have an excellent, consistent product supported by a long heritage of pride in the brand.

“I was brought on board to bring a new angle. I have no in-depth brewing knowledge, but I do have a different skill set – in business efficiency and process excellence. I think it took a lot of courage on the part of the shepherd Neame board to depart from tradition in this way but arguably it is what a lot of established businesses need to do in order to gain new insight and become more competitive.

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“Although I had a lean sigma approach in mind when I started to look at the production and distribution operations here it was very important to keep jargon and technical language to a minimum to start gaining engagement. I have termed my role in the company as being business improvement, which is perhaps a hopelessly general term, but it is what it says on the tin, people understand the objective. “to start gaining ground on improvement I needed help from within the business and so I recruited ben Wright to become business improvement and supply chain manager. the projects we have run together have had six

sigma measurement and lean philosophies at their heart even if the titles by which the majority of the business will recognise them are rather more practical than scientific.”

When Wright was head-hunted by Falcon to support business improvement he had no lean knowledge or training – simply experience of stock control in the shepherd Neame warehouse. It was Wright’s thorough knowledge of these processes however that made him an ideal candidate to Falcon as his right-hand man - particularly at a time when the company was faced with the daunting prospect of implementing a state-of-the-art sAp enterprise resource planning (erp) system.

At the point of Falcon’s arrival at shepherd Neame the sAp system was at the point of go-live. It was a time of trepidation, as Falcon explains: “A big erp implementation ought to involve some pretty rigorous process re-engineering and that had not been done to the extent that it could have been. my first job was to manage this golive and the experience was very tough for everyone. Introducing an erp system is allencompassing in the impact it makes across departments previously existing as silos.

Finance, marketing and sales, manufacturing and so on – all these departments are suddenly connected and unable to pull away from one another. When the first customer order comes in this creates an overwhelming tug towards demand –everyone gets dragged along by it but in the meantime we had a situation where people didn’t know how to enter a credit note or complete important forms – at least not with confidence because the training was weeks before and only lasted four hours.” recognising the importance of building capability and understanding around the use of erp in relation to business processes Falcon ensured that he and Wright embedded it into the maturity modelling of all their projects. “We spent an intense period gathering all the different business issues together using affinity matrices and other

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s t A R

the five building blocks for lean success feed into the overall vision for how the business would like to be perceived and Falcon admits that gaining consensus on these building blocks was difficult but gradually they have been accepted and embedded. there are now key milestones and expectations around ‘sAp perfect’ that Falcon states are essential to lean maturity growth across the business and to the success of each individual lean project, including the inventory control project which Wright ran and which resulted in the IQpc award.

Falcon maintains that the gains made through this project could not have been achieved without the unifying force of an erp system. “the payback from all the pain of implementing an erp is vast. If you can get your arms around the system you can be knowledgeable about data and information that you never had before.”

“It was during these first six months that we undertook our inventory control project and in under ninety days we had learnings that we could start applying across all our other sKUs. We decided to start with the inventory control project for a number of reasons but one was simply that, at that time in early 2009 we, along with almost every other company in the world were having to manage for cash, to tighten inventory and to look carefully at our working capital. there were and are a number of other projects in place but this was prioritised because we saw that it would impact across other key objectives like reducing cycle time and delivering service to customers.” Visual management, drawing the end to end process and walking it through with a number of different variables to inject at given stages was an essential part of this prioritisation process. speaking about the results Falcon says “some of the outcomes from this particular project have been very dramatic and will become more so.” one of the most important developments has been the increased on shelf performance that a better perspective on inventory information has allowed. this development has improved shepherd Neame’s standing with major retail customers. It has enabled them to be flexible and effective in responding to the inconsistent and unexpected demand that often arises as a consequence of unscheduled supermarket offers or because another supplier has failed to deliver. the project has achieved a lost sales reduction of 92% simply through having the right amount of stock in the right place at the right time. “our attitude and abilities have been transformed from selling what we had when we had it to selling what the customer wants when they want it.” E N D

Case studies and

Falcon continues: “At first the answers you get back can be horrifying but the fact is that you are rooting out waste. You must go after that waste fast and because we only have fifty or sixty users on our system we have found that we are very flexible in doing that. We had daily

meetings on how to hammer out problems being highlighted and within six months we had the semblance of useful management information coming out of the system that could drive continuous improvement and which we could interrogate intelligently.

implementation

Wright adds to this assertion: “A lot of the stuff that I’ve been trying to achieve in supply chain was invisible before we implemented the sAp system. We had no idea about customer service levels so we weren’t seeing the effect of stock level discrepancies on our customer. In terms of inventory level management we get by the minute updated stock values and stock turns. on the old system I truly knew our stock value maybe three or four times a year after a stock take and to calculate the stock turn would have taken me about a day. so in terms of doing true inventory analysis and gaining an appreciation of how it impacts on delivery to the customer, erp has changed everything.”

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lean methodologies to draw the building blocks for improvement. this resulted in five key objectives for improvement.

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Glyn Finney of simpler consulting outlines the challenges associated with staff engagement in lean initiatives from programme start to maturity.

Foundations for change A

s awareness of lean management and the potential improvements it can deliver grows, an increasing number of organisations are investigating how a lean programme could work for them.

For these beginners there are well documented challenges in creating a sustainable lean culture but it is important to remember that challenges do not disappear after initial implementation. continuous improvement means constant discovery and, for lean novices and mature lean enterprises alike, understanding the developing lean education needs of employees is essential. Without this understanding there is a danger of lean being understood solely in terms of headline improvements and quick wins rather than as a long term pursuit of value and efficiency.

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making time

organisations adopting lean management programmes must take a realistic approach to the time frames involved. the depth of learning and development needed for organisation-wide initiatives can take several years to develop, and the process of making sure the principles of lean are embedded in employee approaches to work can last even longer. one of the main causes for lean failures is an expectation that organisational culture will change more quickly than is realistic; subsequently those involved become discouraged when the anticipated results fail to materialise in the given time frame. In order to avoid misconceptions like this, staff need to be educated on the nature of lean, the improvements it can produce and the time it takes for results to become apparent.

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FoUnDAtIons FoR cHAnGe GLYN FINNeY

before work can begin in earnest, it is important to clarify the impact lean is likely to have, and how this can be used to support the overall objectives of the organisation. commonly, companies undertake a lean initiative with the aim of increasing productivity or reducing operating costs within specific parts of the business. these may be realistic objectives, but it is helpful to communicate a wider view of how lean will be incorporated into the organisation. In particular, it is important for those leading the initiative to gain a complete view of how horizontal value chains and the overall aims of institution will be impacted. In the case of a hospital, for example, the primary aim of its activities is the provision of effective care for patients and their families.

Accordingly, any changes made as part of a lean programme should contribute to maintaining effective care, regardless of whether they tackle cost inefficiencies.

When assessing how lean will support an organisation, it is helpful to draw up a list of key drivers – areas of the business in which a strong performance is necessary to the overall health of the organisation – and to ensure staff are aware of these. this helps track overall lean performance and ensures that one aspect of the business is not improving at the expense of others. to this end, it is useful to schedule regular

A typical lean improvement programme will involve several training courses of varying degrees of intensity depending on the role the participants will play in implementing the lean approach. Intensively training smaller groups of employees can help deliver faster returns on investment than delivering less hands-on tuition to a larger number of staff. by equipping key staff with the techniques and motivation to apply lean management principles to departmental operations and share their insights with colleagues, organisations are able to benefit from the first performance improvements within a matter of days or weeks. the principles of lean are best taught on an ongoing basis and with a practical approach if real understanding of how they can be applied to everyday challenges is to be gained. It is important to provide for a mixture of learning styles in lean training programmes; a selection of structured didactic education and praxis involving cycles of education followed by hands-on application of the ideas provides a good structure. close mentoring of learners by an experienced lean practitioner allows staff to structure their progression using personal development plans. this encourages pupils to set learning outcomes with measurable objectives. this ensures that staff think carefully about how they can apply the lean techniques they have learned within their organisation, assume responsibility for their execution and evaluate the outcomes in order to understand the process more fully for future initiatives.

Case studies and

maintaining performance

teaching lean

implementation

these institutional aims should be taken into consideration when designing a training programme. When royal bolton Hospital’s NHs trust was developing its lean training academy, the bolton Improving care system Academy, its directors were clear that the training courses delivered to staff should demonstrate how the productivity and efficiency benefits of lean can help improve the quality of healthcare services and that there would be a strong emphasis on learning by doing rather than just classroom based models.

review meetings every three to four monthsto assess the progress that has been made over that time, identify any gaps where further improvements are possible and determine whether the initial goals outlined for the lean initiative are still valid.

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setting goals

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Continuing improvement

the goal of a successful lean development programme is to provide staff with the knowledge and understanding to keep improving their operations without the need for external support. the bolton Improving care system (bIcs) illustrates how it is possible for an organisation to sustain improvement autonomously. established in 2008, the bIcs Academy is designed to provide a focal point for lean training and development activity within royal bolton Hospitals NHs trust. “the Academy, supported by experts from simpler, provides bIcs training and coaching for internal colleagues, as well as hosting external visitor days to showcase the potential of lean healthcare to professionals working within both the UK and abroad,” explains Lesley Doherty, acting ceo at the trust. “since its establishment, the bIcs Academy has delivered coaching and training of various levels and depths to over two-thirds of employees, from the frontline to the boardroom.”

In addition to driving increased awareness and experience of lean techniques, the bIcs team, incorporating the bIcs Academy, leads on the development of all rapid improvement activity and improvement cycles, including value stream analysis, within the trust.

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showcasing the results

the results seen at royal bolton Hospital’s NHs trust demonstrate the continuing improvements that can be achieved once the principles of lean management have spread within an organisation. Doherty says: “We have conducted a range of performanceboosting initiatives across the trust’s operations, including over six rapid improvement events within the pathology department, lead by one

of our clinical sciences managers. these have helped reduce turnaround times for test results by 67 per cent, increase productivity by 20 per cent and generate over £300,000 of additional income. Another series of rIes overseen by a manager within the pharmacy department has resulted in a 30 per cent reduction in turnaround times for prescriptions, a halving of the stock the department needs to store and double digit reductions in drug selection errors.” summarising the progress the trust has made so far, Doherty notes: “the combination of skilled tuition and mentoring from experienced lean practitioners, both now in-house from bIcs and from simpler, along with the support given to staff when applying their findings to help improve departmental work processes, has proven invaluable to the success of our lean transformation. bIcs Affiliates from the programme have been able to deliver significant improvements to operations throughout the organisation, helping fulfil our goal of using lean to deliver better standards of care to all our patients.” the bIcs programme demonstrates what can be achieved by encouraging staff from around the organisation to participate in lean initiatives and gain the skills needed to make effective improvements. It is important that lean improvement programmes communicate this involvement and the improvements achieved in order to perpetuate lean progress across the whole organisation, avoiding silos of knowledge which leads to inconsistencies in working practices. During the regular progress review meetings it can be helpful to identify which people from around the organisation are taking part in a given initiative, in order to determine whether an appropriate selection of staff are participating.

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FoUnDAtIons FoR cHAnGe GLYN FINNeY

lean leaders

securing buy-in from senior company leaders and ensuring they gain sufficient understanding of lean to support transformation presents a number of unique challenges. In particular, senior executives may need convincing about the need for them to become personally involved in a lean programme. For some executives it is tempting to delegate responsibility for overseeing its progress. However, as lean pioneer George Koenigsaecker has noted: “complications arise because it is difficult to delegate well when a leader is operating without familiarity of the work being delegated”.

In order for senior leaders to effectively oversee a lean initiative, it is essential that they understand the areas of inefficiency being targeted and the purpose behind using lean to do so. In order to ensure this, it is essential that senior leaders personally take part in a number of lean improvement events. previous experience has shown that leaders typically need to attend a minimum of two lean events before their buy-in is secured, with a further two events needed to gain the insight needed to support a lean initiative. It is crucial that the involvement of senior management is secured within the first three months of a programme beginning.

Koenigsaecker warns: “After 90 days a pattern will have been set and it becomes amazingly hard to get a new pattern started, especially with senior leadership.”

looking forward

It is in the long-term that lean management can make the biggest impact on an organisation, and it helps if employees understand and appreciate the long-term nature of the change. though each lean management programme is individual, generally speaking, lean initiatives can be classified into three stages of progression.

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Case studies and

As this article has hopefully demonstrated, there is no right way to implement lean and careful thought should be given to how lean supports overall strategy when developing a training programme. A one-size-fits-all approach to lean, or one that fails to view it as a means towards long-term improvement, runs the risk of failure. However, with the right preparation in place, organisations can continue to grow as lean enterprises, delivering improvements autonomously. E N D

implementation

At first the emphasis is on changing the actions of employees, focusing on equipping them with the tools and insights needed to approach work processes differently. the next stage falls roughly two to three years into an initiative, and aims to change employee habits on a long-term basis by cementing new techniques and approaches to ongoing problem-solving. the third stage occurs around three years into an initiative and onwards. this involves providing ongoing support to staff as they begin to develop their own approach to lean working and the lean culture of the organisation evolves.

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Damascus moments

Michael riungu, operations and lean manager at Psn Ltd and seconded to the operations and Maintenance team on nexen Petroleum’s Buzzard field, has found his supply chain expertise enhanced by lean principles.

Here he describes his moment of lean enlightenment.

W

orking my way through yet another post-construction, maintenance preparation project in the 1990s, I was railing at the entirely foreseeable waste of effort required to integrate random legacy data into a forward plan a year after the plan should have started.

consequently, a sizeable part of my day was spent rifling through dusty archives, micro-fiche and acres of drawings. this was soul destroying, repetitive sleuthing with all the fulfilment of train spotting in fog. However, during my many forays into the lost world of the technical library, I caught frequent glimpses of a book title so full of promise that it became a talisman of hope.

As light appeared at the end of the tunnel and the project started to come together, I took the opportunity to explore this talisman further. the avuncular gentleman on the cover conveyed a look that mirrored my bemused scepticism but, on further reading, my joy at learning the list of underpinning principles was matched by my conviction that the work embodied my own frustrations writ large. the preface delivered a blunt diatribe against unenlightened management thinking and I happily followed W. edwards Deming’s way out of the crisis (cambridge University press, 1982) into the extraordinary but irrefutably rational order that he and his colleagues had fashioned.

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Case studies and

implementation

the 14 points that underpin this order will have struck any manager or business leader as both blindingly obvious yet seemingly unattainable. It was therefore a huge relief to discover the spectacular and continued successes that are rooted in this approach. Until that moment, I had only an unfocussed belief that there must be a better way; that we don’t have to endlessly repeat the same wastes and that lasting progress is fuelled by collaboration across the enterprise.

In my case however, not just the enterprise I worked for, but the industry was blind to Deming’s principles and tolerant of ineffective practices, choosing to punish failures rather than improve the system. Deming’s way, however, changed my view unalterably and in the intervening years I have continued to learn more and apply those lessons everywhere I can. recently, my organisation had its own Damascus moment and established a lean programme to improve operations and maintenance. We are still in the early days of the implementation and progress is tricky but it is a great morale boost to see the industry beginning to take a more rational approach to efficacy. It was also a great comfort on attending LmJ’s Inspiring operational excellence event in may this year to learn that the issues we are facing are universal and surmountable. END

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BooK ReVIeW JoHN bIcHeNo

John bicheno reviews Green Intentions by Brett Will’s. cRc Productivity Press, 2009.

‘G

reen Intentions’ is the first specific book I am aware of that comprehensively gives practical hands-on guidance towards lean and green analysis and implementation. Less ambitious and philosophical than robert Hall’s book compression (which was reviewed in LmJ issue 03 and addresses the systemic perils of continuing resource exploitation, calling for industry to adopt a new learning culture), this book focuses on what can be done in your plant today. begin with green value stream mapping where, instead of recording cycle time, changeover time, employees, inventory and so forth at each step, you record under the seven green wastes. the green wastes are the core of the book. these are the wastes of energy, water, materials, rubbish, transportation, emissions, and biodiversity. A chapter is dedicated to each of these. each chapter is organised around how to identify, record and classify, and includes ideas and short cases studies on what to do about each of the green wastes. As such it is a most useful audit tool. An imaginary company – Greanco – provides the link through the book. the philosophy of the book is that being green is not only environmentally responsible but also that it can pay handsomely through savings. creating an extended awareness of waste has got to be part of any lean initiative today. some opportunities are obvious such as sorting paper types, collecting rainwater, and arranging a car pool. other wastes and opportunities are less obvious such as examining the impact of the buildings and operations on the biodiversity of the surrounding area. the Appendix gives a huge list of relevant web sites that would often be useful in tackling such issues, though bear in mind that most of these sites are Us based.

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In many organisations green initiatives are ad-hoc. the potential for harm through non-green activity and the opportunities available through green initiatives is not measured or recognised. Green Intentions gives a framework for undertaking such a study and moving green from shop talk into action.

Don’t hire a consultant to look at your lean and green programme until you have removed the green low hanging fruit, and set up a green programme, using this highly practical guide. chances are the consultant may well be using it himself! eND

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an exclusive seminar for executives supporting lean enterprise in complex environemts. promoting knowledge transfer between industry leaders, presentations will demonstrate the importance of appropriate leadership in lean programmes. this event will suggest a new culture of leadership based on communication, interaction and awareness. touching on the dynamics of informal behaviours, the level of technical lean understanding needed by executives and the formation of standard leadership work this event provides leaders with an opportunity to challenge the paradigm of their role. Dr David bamford, senior lecturer in operations management at manchester Business school will chair the event with dale easdon, Coo uK at lsG sky Chefs, as keynote speaker.

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public sector lean thinktank october 27, Liverpool

this thinktank aims to bring together key decision makers, change agents, policy makers and lean implementers to share a dialogue about lean in their environment and to develop and disseminate new thinking. the ministry of Justice’s Court services will be hosting host the thinktank session at liverpool County Court, providing the opportunity to learn more about how they delivered their improvement programme, to discover what results they have achieved and to talk to staff about the experience.

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