Always innovating for a better future
LeanLeadership
Always innovating for a better future2
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Always innovating for a better future
Our Markets
Sales $0.97 billion – FY12Sales $0.90 billion – FY12
Total Sales $1.87 billion – FY12
Always innovating for a better future
Propulsion Control Systems
• Evolution from components to systems supplier
• Organic development and acquisitions grow product breadth
• Key program wins set table for future growth
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Combustion SystemsActuation Systems
Fuel SystemsElectronic Systems
Electronics
Aero
spac
e
Always innovating for a better future
Motion Control Systems
• Aircraft Control Systems Cockpit to Surface Hydraulic and Electric Motion Control Solutions
for Fixed and Rotary Wing Aircraft
• Smart Weapons – Precision Guidance and Stabilization Solutions
• Motion Control and Sensor Solutions for Critical Tier 1 Applications
Secondary Flight Control SystemsPrimary Flight Control SystemsCockpit Control Systems
Aero
spac
e
Always innovating for a better future
Renewable & Power Conversion Systems
Wind turbine inverters
Energy storage converters
Solar inverters
Shore power & dynamic positioning inverters
Ener
gy
Always innovating for a better future7
Engine Systems
Power Generation Overview
Emissions compliance
Gas/air flow control
Engine control
Emissions control systems
Gas flow control
Turbine control
Combustion systems
Generator package control
Ignition systems
Shut-off valves
Ignition systems
Always innovating for a better future8
Engine Systems
Solutions for Engines
Always innovating for a better future9
Engine Systems
Energy Segment FY12 Sales
FY12 $970 million
Always innovating for a better future
Global Presence, Local Support
Always innovating for a better future11
Engine Systems
Lean
• Products on-time• No defects• Lowest cost
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Frederick TaylorScientific Method; One-Sized Shovel; “Enforce” – 1880 to 1915
Frank WoollardContinuous Improvement; Lean Tools; “Forgotten” – 1920 to 1950
Taiichi OhnoToyota Production System; Kaizen Respect for People; 7 Wastes – 1950 to 1990
Dr. James WomackJapanese Auto Industry “how?” Machine that Changed the World – 1975 to present
Bob EmilianiFake vs. Real Lean CI + Respect for People“Practical Lean Leadership”1990 to presentW. Edwards Deming
SPC; Quality Methods to Japan“Plan-Do-Check-Act” - 1940 to 1990
David MannLean Leadership & Culture“Creating a Lean Culture”
1980 to present
A systematic approach to identifying and
eliminating waste through continuous
improvement by flowing the product at the
pull of the customer in pursuit of perfection.
What is Lean?
•Directly observe work as activities, connections, and flows
•Systematic waste elimination
•Establish high agreement of what and how
•Systematic problem solving
•Create a learning organization
5 Principles of Lean
•Understanding the current reality of your business
•Reality should be unified
•Tools: Gemba walks, value stream mapping, process mapping, flow diagrams
Directly observe work as activities, connections, and flows
•Anything beyond the absolute minimum amount of materials, manpower, machinery needed to add value to a product or service.
Systematic waste elimination
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Manufacturing1.Defects2.Overproduction3.Transportation4.Waiting5.Inventory6.Motion7.Overprocessing
7 Wastes + 1
8. Non utilized talents or unused creativity
Engineering1.Errors in documents2.Doing work not needed3.Transport of documents4.Reviews and approvals5.Backlog of work6.Searching for information7.Overprocessing
•Valuing a common way or process with low ambiguity more than you value your own way
Establish high agreement of what and how
•With Lean thinking, problems are opportunities
•Dig until you find the root cause
•5 Whys
• Immediately bring problems to the surface and face them, don’t band-aid or cover up problems.
Systematic problem solving
•The very nature of lean is to change and improve based on learning
•Learn from your improvement efforts
Create a learning organization
Is Lean Leadership the missing link?
• 98% of Lean Initiatives are not pursued to the point of financial benefit
• 50-95% of programs failSupply Chain Digest Jan 30, 2013
“80% of effort in Lean transformations is expended
on changing leaders’ practices and behaviors, and ultimately
their mindset.”
“ . . .the essential purpose of a leader is to do one thing: create change.”
Dennis Pawley,“Hitchhiker's Guide to Lean”
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Engine Systems
Lean Leadership
• Leaders must be teachers• Build tension, not stress • Eliminate fear and comfort
(experimentation & innovation)• Lead through visible participation, not
proclamation• Build lean into personal practice
Always innovating for a better future
Engine Systems
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Leaders must be teachers
• Learning is critical in a lean organization• Leader’s responsibility is to develop (coach)
members who are themselves learners and teachers
• De-emphasize individual solutions/ideas & promote Team thinking (Contributions from everyone) Common ideas (Collaboration) Principles (Ethical behavior)
• Ethics & Integrity are used to help people make tough decisions
Problems are opportunities to learn, not just a crisis to be solved.
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Engine Systems
Leaders must build tension, not stress
• Leaders create change• Leaders create a sense of urgency thru tension,
not stress• People feel stress when conditions are nearly
impossible, pressures are immense, and there is no clear path forward.
• People experience tension when they sense a gap between the current reality and the ideal state.
H x V x F > RH = Hatred of current reality
V = Vision of the ideal stateF = the courage to take First stepsR = the Resistance to change that exists
within an organization
Always innovating for a better future27
Engine Systems
Eliminate fear and comfort
• Remove the fear of experimentation• Encourage innovation• Eliminate the comfort in status quo• Characteristics of a fear-free environment:
Physical safety Emotional safety Professional safety
• Five Whys
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Challenge the member (5 Whys)
Ask for more (7 Ways)
Ask for evidence (data on the Gemba)
Always innovating for a better future30
Engine Systems
Lead thru visible participation, not proclamation
• Must lead by pulling members thru the change process, not pushing them
• Commitment and active engagement Participating, not watching from sidelines Members will see the leaders activities as priorities Thru participation, leaders directly observe how lean is
being understood (or not understood).
• A Servant Leader is someone who identifies and meets the legitimate needs of their people and removes all barriers so they can serve the customer.
As 5S is foundational for Lean, SERVANT LEADERSHIP is
the foundation for Lean Leadership
information sharing
building common vision
self management
high levels of interdependence
learning from mistakes
encouraging creative input from every team member
questioning present assumptions and mental
models
Compassion
CompetenceIntegrity
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Engine Systems
Build lean in to personal practice
• Lead by example• Company culture is a direct reflection of the
values, philosophy and personality of the leaders• What you do must support what you say or there
will be confusion.• Standardization: apply lean to how you go about
your daily and weekly activities. Structured processes for activities Structured flow for time management 5S
• Reflection: Look back to see what was effective
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Reflection
Scientific Method
Lean Leaders are Teachers
Dangers of a “Knower”
Advantages of a “Learner”
How do Lean Leaders Think?
“Employees are offering a very important part of their lives to us. If we don’t use their time effectively, we are wasting their lives.“
Eiji Toyoda “To the greatest extent possible we should have
people working on things that matter.“
Bob Emiliani
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Is it working?
Does anyone know?
Did I mess
with it?
Will it blowup in my hands?Can I blame
someone or something
else?
I’m in trouble!
Take credit.
No problem!
I’m an idiot!
Look the other wayCover it up.
YES
YES
YES
YES
YES
NO
NO
NO
NO
NO
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Climate and Culture
Culture: values, beliefs,
assumptions and behaviors
Respect for the IndividualIntegrity & Ethics
AccountabilityTeamwork
Customer SatisfactionInitiative
Results Driven
O U R B E L I E FS , VA LU E S &
P R I N C I P L E S
Woodward Total Rewards
StrategyWO R K C O N T E N TTitleJob Tools/TechnologyVarietyChallengeAbility to ActPerformance Expectations & FeedbackMeaningful Work
C A R E E RCareer Development
Learning & DevelopmentEmployment Security Through
Growth and Skill AttainmentPromotional Opportunity
Global Experience/Mobility
I N D I R EC T F I N A N C I A LBenefits
Non-cash RecognitionCompany Ownership
D I R EC T F I N A N C I A LBase/Fixed PayIncentives/BonusCash RecognitionPay PracticesMarket Pay Process
Employment BrandCompany Reputation & Success
Corporate Citizenship & Social ResponsibilityWork Climate & Member Experience
Communication & Social SystemWork-Life Effectiveness & SupportLeadership Effectiveness & Boss RelationshipTeam & Peer RelationshipsWorkplace of the Future
A F F I L I AT I O N
Always innovating for a better future40
Engine Systems
Woodward – CSU Partnering
• PLI• Energy Conversions Laboratory
Donations Engine Controls Experiments
• Business Program• System Engineering
Contribution for Program Chair Syllabus
• Interns
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