Leader Standard Work Driving Continuous Improvement · Key: VSM:- Value Stream Manager. SW:- Standard Work. Innovation Kaizen Maintenance (Breakthrough) (Elevating current standards)

Leader Standard Work

Driving Continuous Improvement

A study of leader activity and systems thinkingthat supports CI in a FMCG environment

Robin Howlett MSc, MCQI CQP, AIEMA

•A successful FMCG business with international brands

•Demand outstripping supply

•Year on year improvement with potential for greater pace

The Setting and the Need

Research into fundamentals:

•Systems viability through Fractal relationships

•System of CI leadership

•A focus on routine everyday CI, less on ‘projects’

•And….

•What does it take to replace old with new habits?

An Opportunity for Pace & Sustainability

Leading CI Activity and Timeframes

4. CapDo Cycle Time3. Kaizen Teian Cycle Time

6. Policy Deployment Cycle Time2. Daily Assignment Cycle Time

1. SIC & Tag Cycle Time

1 32 4 5 6,7

7. Long Term Business Plans

5. Jishunken Cycle Time

12 month period

FMCG Focus for Flow:Predictable Performance

Continuous and discontinuous improvement

Systems viability through fractal relationships & agendas

Fractal / Recursive CI & Leader Standard Work

Daily Meeting

Weekly Zero Loss

Monthly Review

Annual Strategy

3 yr Plan

Shift Hand Over

Tags

Short Interval Control

MIS

A focus on everyday CI

TopManagement

MiddleManagement

Supervisors

Workers

Key: VSM:- Value Stream Manager. SW:- Standard Work.

Innovation

Kaizen

Maintenance

(Breakthrough)

(Elevating currentstandards)

(Current technological, managerial and operating standards through

training and discipline)Operator SW: 95%

Leader SW: 80%

Supervisor SW: 50%

VSM SW: 25%

Mann's 4 Roles

Mann’s Roles and Imai’s Kaizen Flag:-

CI and Leadership: A FMCG Case Study

What is the CI Culture in the Organisation?

Primary research into leaders’ opinions

LSW Process:ManagementFramework

Ratio of KaizenTo Maintenance

Who?How many?

Where?

FLM

Tier 2 Manager

Tier 3 ManagerSpan of Control

Q1, 2, 3, 4, 5

Function &Location

Maintaining

Kaizen

Breakthrough

Q 8

What is the Kata for CI?

Action ResearchFocus

StandardisedMeetings

Standardised MeetingsWith VOP

Voice of the Process (VOP)

Short Interval Control

Weekly Planning Meeting

Daily Meeting

Shift Hand-Over

Weekly QSE Meeting

Viable (Fractal)

Data Vs Information

Theory of Constraints

0 5 10 15 20 25 30 35 40 45 50

Stresses the less capable

Managing to a Std is not leading

Needs frequent update and audit

Can't be standardised

Meetings are worse

No accounting for styles

Promotes Tick-Box

Loss of focus on the non-std

Stifles Talent

Stifles Improvement, Innovation & Reactiveness

None

% of Response: All Tier Groups

Why is routine equated with constraint?

Negative consequences of standardisation. April 2011

Mainly First Line Managers

Maintenance – Has it been forgottenby today’s Leaders?

TopManagement

MiddleManagement

Supervisors

Workers

Key: VSM:- Value Stream Manager. SW:- Standard Work.

Innovation

Kaizen

Maintenance

(Breakthrough)

(Elevating currentstandards)

(Current technological, managerial and operating standards through

training and discipline)Operator SW: 95%

Leader SW: 80%

Supervisor SW: 50%

VSM SW: 25%

Mann's 4 Roles

Valuing improvement over maintenance?

Comparing Behavioural Values

01020304050607080

Maint'ce Kaizen Innovation

% o

f con

tent

LeadersTeam MembersImai

GAP

GAP

CI Activity Promoted by Company Values

OEE: A Worthy CI Metric (Apologies to Richard Schonberger)

Availability Losses Performance Losses Quality Losses

Set-Up and adjustment

Equipment failure downtime (EFD)

Idling and minor stops Defects and rework

Start-Up and change overSlow RunningPlanned

Loss

UnplannedLoss

Six Big Losses are also flow disruptors: Why TPM’s focus is Maintenance.

Replacing old with new habits

Is Coaching of CI the Domain of the Specialist?

Group Facilitator

"You'reempowered!"

Builder of LearningOrganisations

"Here is our purposeand direction - I willguide and coach"

Task Master

"Here is what to doand how - do it!"

BureaucraticManager

"Follow therules!"

GeneralManagement

Expertise

In-DepthUnderstanding

of Work

Top-

Dow

n(D

irect

ives

)B

otto

m-U

p(D

evel

opm

ent)

Toyota Leaders

A Leadership Model (Liker 2004)

Is CI Habitual for our Leaders?

Current Condition

NextTarget

ConditionVisionObstacle

Encountered

Understandand Overcome

1342

An improvement kata model (Rother 2010)

Driving CI Sustainability

Le

ader

Sta

ndar

d W

ork

Operator Standard

Low

Low High

Hig

h

Line Performance

Line Performance

Line Performance

Line Performance

UnrealisedPotential

RealisedPotential

Unsustainable Potential

UnrealisedUnstable

Unleashing potential and maximising Flow

CI and Leader Succession Planning

Work Groupsize of 4-8

Work Groupsize of 4-8

Work Groupsize of 4-8

Work Groupsize of 4-8

Hourly PaidTeam Leader

Hourly PaidTeam Leader

Hourly PaidTeam Leader

Hourly PaidTeam Leader

SalariedSupervisor

Table 8: GM and NUMMI Comparisons.(Liker 2004, p. 184)

Activities of Leaders (First tier) GM NUMMI

Shop floor working total 52% 90%

Of which: Absentee cover 1.5% 21%

: Ensuring a smooth flow of parts 3% 10%

: Communicating job related information Absent 7%

: Observing to anticipate problems Absent 5%

NUMMI’s work group structure (Liker 2004)

Promotionpath

A real-time Management Information System supporting maintaining activity

From Data to Wisdom

Daily Meeting

Weekly Zero Loss

Monthly Review

Annual Strategy

3 yr Plan

Shift Hand Over

Tags

Short Interval Control

MIS

The High Speed Line – A MIS Design Principle

“Data – consist of symbols that represent objects, events and their properties…. The dashboards of vehicles are filled with such examples.

Information – is contained in descriptions. Knowledge – is contained in instructions. Understanding – is contained in explanations.

Wisdom - …the distinction between doing things right and doing the right things. For effectiveness, wisdom is required. (Ackoff)

Beer & Jackson’s Fractal Models–Aligned to Deming?

Jackson suggests that Hoshin standard work is ‘fractal’.

It is the same at every leadership level, for example, the content is defined, the sequence is defined and the timing is defined:

“Hoshin views the work of every manager as being standardised”.

Deming’s Deadly Diseases for LSW

1 Lack of constancy of purpose

2 Emphasis on short term profits

3 Evaluation of performance

4 Mobility of management: Job hopping

5 Management by use only of visible figures

In conclusion

•A viable business is fractal and so are its CI activities

•Flow is dependent upon maintenance, not improvement

•Maintenance is driven by operator standard work

•Operator standard work is driven by leader standard work

•Driving the pace of CI involves valuing Maintaining behaviours

Questions