Art Byrne, one of the most successful CEO’s in history with more business turnarounds as both an executive and in Private Equity than most will ever achieve.
If you’re a chairman struggling to consistently increase your enterprise value, lend an ear to Art Byrne – “What does it take to Lead a Lean Turnaround?”
GE 2020 Earnings Call - Digital Grid
7:50
“In digital grid for example our team used problem solving and daily management to reduce quality defects by 25%.
This helped drive savings that enabled the business to grow operating profit by 60% in 2020.
As this team shows, you can apply lean in any part of the business, NOT just in manufacturing.”
“all leaders have action plans to run their businesses leaner with lower inventory levels. In aggregate, our focus and actions to improve working capital are starting to pay off.”
10 Important Shifts in Thinking People Don't Talk About with Lean
Another great write up by Karl Ohaus, link here:
https://www.linkedin.com/pulse/10-important-shifts-thinking-people-dont-talk-lean-karl-ohaus
key points:
‘teams try to “implement Lean” without making critical shifts in leadership thinking’
‘it requires leadership to shift their thinking to be able to benefit organizations at all.’
‘Every defect is an opportunity to learn.’
‘If you are too busy to acknowledge that something is a problem, then your organization will be right there with you’
A lean view on… the fight against Climate Change
Article link: https://planet-lean.com/a-lean-views-on-the-fight-against-climate-change
my notes/key points:
“The difficulty is compounded by the fact that most senior management are not looking for real, radical change. Most of the time, sadly but unsurprisingly, they’re seeking confirmation:
"tell me that what I’m doing is already lean.”
Leaders discover the way, others play catch-up, the world moves forward.
What lean really has to offer is not off-the-shelf pre-packaged solutions. Loving the package more than what is inside is the drama of the current zeitgeist.”
Learning fast in the crisis
- Buying a company is never an easy step just 1 month ahead of a pandemic and lockdown. Results from a CEO spending time in the business instead of the office.
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to learn about problems, find and face.
Organizational changes can be tempting when a new owner steps in, but they seldom help.
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Lean thinking rather teaches us to focus on the flow of products and services to customers and observe what hinders the work of those operating along that flow.
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They managed to reduce the lead-time for stainless steel trolleys 66% from 6 weeks to 2 weeks.
With overall volume of sales decreasing, the lockdown seems to be the perfect opportunity to revamp the workshop and learn how to better organize it.
read full article:
The Lean Trilogy - Mark Deluzio - Danaher
“they already have the person in place that should lead the transformation, the CEO.”
“The CEO must not only verbalize his commitment to the Lean Transformation, he must show it in his actions."
“If the CEO delegates away his responsibilities to a staff position within the company, the Lean transformation will stall and eventually fail. The CEO must be as committed to the process of the transformation as he is to the results.”
“a Lean transformation is all about people.”
“one must think about Lean as a growth strategy.”
“You may need to decide NOT to do business with a group of customers if employee and/or shareholder requirements are not met.”
Coaching is Work - David Verble
Coaching is not about making ourselves feel good through sharing knowledge and wisdom; coaching is about helping others arrive at their own knowledge and wisdom.
4 Lean Healthcare examples
- excerpt from an email I sent a hospital CEO, VP, CFO & a few colleagues after a Lean Government workshop to help them; hoping it also helps some others here interested in current healthcare practices
Designing new Hospitals from scratch using 3P; Saskatchewan, Dan Jones
https://www.lean.org/LeanPost/Posting.cfm?LeanPostId=111
Virginia Mason Health System, Seattle
https://www.virginiamasoninstitute.org/2017/08/lean-health-care
books:
https://www.virginiamasoninstitute.org/knowledge-base/books
Thedacare Health
Book:
On The Mend by CEO Doctor John Toussaint
- describes how ThedaCare doubled its revenue,
and how this organization became the lowest-price health care provider in Wisconsin.
One typical example: the mortality rate for coronary bypass surgery dropped from 4% a year (12 deaths) to almost zero (one death in 2009).
In addition, the time that the patients stayed in hospital fell (22%) from 6.3 to 4.9 days.
https://www.business-improvement.eu/lean/ThedaCare_On_The_Mend.php
Examples of results obtained at PHSA (Provincial Health Services Authority)
http://www.phsa.ca/documents/improveoct4.pdf
Cheers,
Ryan Cartier
Mistake proofing defects example
great example from Fastcap
https://www.linkedin.com/posts/paulakers_8wastes-2secondlean-lean-ugcPost-6623991228822286336-k48R
Getting at the Larger Purpose of 5S
Top tier content by Karl Ohaus
- will help most people who don’t understand 5S; however only those who so will truly appreciate it
https://www.linkedin.com/pulse/getting-larger-purpose-5s-karl-ohaus
Reducing wait time despite an increase in patient volume using Lean strategy in the Emergency Department
last post was on ER, here's examples and explanation what's required for any emergency room learning Lean Healthcare including Alberta Health Services
Note the requirement for *commitment at the top senior level*
- & engaging front line employees.
HEALTH POLICY AND CLINICAL PRACTICE/ORIGINAL RESEARCH Use of Lean in the Emergency Department: A Case Series of 4 Hospitals https://createvalue.org/wp-content/uploads/2010/01/lean-ER-Annals.pdf
If you don't think it's your obligation to provide these healthcare services; consider one day you will be the patient relying on them.
(or waiting without)
Start now.
MRI wait time reduction example to follow.
Can make a pdf copy available & answer questions on how this is done.
Why Companies expect the results Lean Product Development delivers but are unwilling to do the work?
great blog post by Dantar Oosterwal reflecting on Dr. Allen Ward - Why do organizations expect the results Lean Product Development delivers but are unwilling to do the work?
“Do not try to bring lean manufacturing upstream to product development! “
Allen: “I’m tired of wasting my time on companies that want improvement but won’t do the hard work to get the results.”
Dantar: ‘I can assure you that we are serious about making improvement.’
Allen: “I’ve heard that before. Call me when you know what you are asking and commit to doing the work.”
result: 4-fold improvement in product development
Your Crash Course on Lean Product and Process Development by Allen Ward
Lean Product Development
- Fundamentals of current design & engineering practices most companies are behind on – where is yours?
seminar presented by Allen Ward
Not just the bottom line: Lean Management may help workers too
A study of the adoption of lean by factories within Nike Inc.’s supply chain found that lean adoption was linked to a 15% reduction in noncompliance with labor standards such as wages, benefits, and time off.
“a way to align business interests in the supply chain with worker well-being.”
article link on Chinese Factories in the USA
Why Chinese Factories Fare Poorly in the U.S. The New Yorker
For at least the past 7 years China has been the fastest-growing source of non-domestic business expansion in the U.S.
in the first 6 months of 2015, Chinese direct investment in the U.S. rose nearly fifty per cent compared with the same period the year before, according to the Rhodium Group, which tracks Asian economies.
as early as 2000, Chinese manufacturers have acquired or built facilities in dozens of states.
Today, no Western manufacturer can hope to compete on a global stage without adopting some version of lean production
employee skills, loyalty, continuity, job satisfaction and creativity—in other words, lean requirements—determine profitability
and it’s not unusual to come across a Chinese facility where as many as 90% of the tasks are assigned to robots. Japanese manufacturers are among the least automated, by contrast, because, in their view, removing the human element eliminates the possibility of innovation.)
http://www.newyorker.com/business/currency/why-chinese-factories-fare-poorly-in-the-u-s
Using 3P to change the Veneer Industry
Here's a great example of using #3P, particularly the focus to mimic beaver teeth:
The #startup of Apollo Hardwoods in 2003 provides a unique example of a #business enterprise designed and launched with #lean principles in mind from the beginning.
Demand Surges for Lean Talent over Six Sigma
Industry Week
Lean talent demand exceeds Six Sigma by almost 68% in the current study, almost double the 35% edge it held last year.
Demand for lean talent over Six Sigma talent has accelerated at its fastest year-over-year pace in the study's history, according to Avery Point Group.
Why has a desire for lean talent overtaken that for Six Sigma? Noble suggests that companies may be seeking a "more practical way" to get results with fewer resources -- and to get those results more immediately. For some, Six Sigma carries a stigma of "paralysis analysis," with results considered a more long-term endeavor, he says.
Full article here:
http://www.industryweek.com/articles/demand_surges_for_lean_talent_over_six_sigma_26615.aspx?Page=1&SectionID=2
What kind of Leader are you looking for?
What HR needs to know about recruiting Lean Talent
Some summary points from an article posted at www.PeopleOrchard.ca:
When recruiting lean talent:
You are looking for someone with preferably NO INDUSTRY EXPERIENCE
o They bring value by not understanding it through the ‘stupid’ questions they ask, which those familiar with the process would never ask, helping them to understand it.
o This gets those with industry experience to see things differently – helping THEM break down and rebuild the process.
There currently is no standard to determine lean training/certification.
o There is no green belt or black belt – it is not related to six sigma – but many consultants use this framework, adding to the confusion
o There is no greater ‘certification’ than true experience and results as a measure of qualification.
Skills you are looking for:
- Coaching, patience, questioning, problem solving, interpersonal skills, communication & facilitation skills, leadership,
- Someone who is interested in working with people to learn how lean will apply to your unique situation, because you are different; NOT someone who tells you how it applies
- Someone who has NO experience in your industry
Yes, a lot of it is counter intuitive at first. Keep learning click here
A language they don’t understand: Lean in Spanish
Did you learn about Lean in Japanese? Why are we teaching it in Spanish?
Is making a translation sheet for terms rework or over processing? What about using it? Could we be more effective?
We had this feedback during process improvement work at a hospital with a clinician who previously completed her PhD on Jargon being a Power Differential.
Regarding our use of Spanish terms instead of English to teach lean concepts, she said whenever we use a foreign language:
- “it alienates people because you’re speaking a language they don’t understand.”
- “We do this in health care; it’s like we have a culture [the medical culture where we have our own language]”
- “we are not communicating in a language to understand [for end users like patients]”
- “It’s a culture we [medical professionals] all understand, and that myself {medical professionals] maintaining my own culture is more important than ensuring communication actually occurs.”
- “Speaking in another language unintentionally excludes those who don’t understand it.”
Does this promote resistance?
Are you focused on the end user of your communication if teaching something in a language they don’t understand?
What’s the feed back from your learner on language preference?
Examples of Spanish we use to reference lean:
Muda - waste
Kaizen - continuous improvement
Poka-yoke - mistake proofing
Heijunka - leveling
Jidoka - human autonomation (independence)
Sensei - teacher
Gemba - workplace
Hoshin Kanri - strategy deployment
We already use English for 5S;
Should we start using more Spanish terms? Why not?
There is an English translation for each Spanish term.
As continuous improvement leaders we set an example – and look for areas we can self improve; should we use the same language as those we’re talking to?
If during this article you thought “Why are they using Spanish?” -that’s how you audience feels when you use Japanese.
We welcome feed back on this – in a language we understand.