W3 Business Systems W3 Group, LLC SFM Kata Connection MLC conference 2014

W3 Business Systems W3 Group, LLC Team Member  Perform work to current standard  Maintain 5-S in their work area  Perform routine minor maintenance  Look for Continuous Improvement opportunities  Support Problem Solving small group activities Team Member  Perform work to current standard  Maintain 5-S in their work area  Perform routine minor maintenance  Look for Continuous Improvement opportunities  Support Problem Solving small group activities Roles & Responsibilities Team Leader Process start-up and control Meet production goals Respond to TL calls by TM Confirm quality - routine checks Cover absenteeism Training and cross-training Work orders for quick maintenance Insure Standardized Work is followed Facilitate small group activities On-going Continuous Improvement projects Insure parts / materials are supplied to process Team Leader Process start-up and control Meet production goals Respond to TL calls by TM Confirm quality - routine checks Cover absenteeism Training and cross-training Work orders for quick maintenance Insure Standardized Work is followed Facilitate small group activities On-going Continuous Improvement projects Insure parts / materials are supplied to process Group Leader Manpower / vacation scheduling Monthly production planning Administrative: policy, attendance, corrective actions Team morale Confirm routine quality and TL checks Shift to shift coordination Process trials TM development and cross-training Report / track daily production results Cost reduction activities Process improvement projects : productivity, quality, ergonomics, etc. Coordinate major maintenance Coordinate support from outside groups Coordinate work with up-stream and down-stream processes Group safety performance Help cover TL absence Coordinate activities around major model changes Group Leader Manpower / vacation scheduling Monthly production planning Administrative: policy, attendance, corrective actions Team morale Confirm routine quality and TL checks Shift to shift coordination Process trials TM development and cross-training Report / track daily production results Cost reduction activities Process improvement projects : productivity, quality, ergonomics, etc. Coordinate major maintenance Coordinate support from outside groups Coordinate work with up-stream and down-stream processes Group safety performance Help cover TL absence Coordinate activities around major model changes

W3 Business Systems W3 Group, LLC Kata Connection Shop Floor Management Policy Deployment Continuous Improvement Mini- companies Glass walls Ownership at the process Lean Tools Standard work Etc… Mini- companies Glass walls Ownership at the process Lean Tools Standard work Etc… Hoshin Kanri Management by Planning Annual Goals & Objectives Organizational engagement & alignment Hoshin Kanri Management by Planning Annual Goals & Objectives Organizational engagement & alignment A3 Problem Solving Six Sigma Value Stream Maps Toyota Kata A3 Problem Solving Six Sigma Value Stream Maps Toyota Kata

W3 Business Systems W3 Group, LLC

W3 Business Systems W3 Group, LLC SFM Structure/Alignment Operator Team Leader ManagerGroup Leader External Coach PARTICIPANTS The degree of involvement of the coach is dependent on the SFM’s degree of maturity. While being a frequent observer in the beginning, the coach will slowly reduce the amount of involvement.

W3 Business Systems W3 Group, LLC Traditional Organization Plant Manager General Supervisor Supervisor Value-Add Operator DIRECTIVE

W3 Business Systems W3 Group, LLC Future State Organization Manager Group Leader Team Leader Team Members SUPPORTIVE MaintPurPCMETransQualityWhseBPS

W3 Business Systems W3 Group, LLC SFM Structure/Alignment ? ! ! ! Daily Monthly Weekly Reflection & Feedback Weekly Monthly Reflection & FeedbackSFM Routine TEAM LEVEL

W3 Business Systems W3 Group, LLC Daily SFM Coaching Routine 1. Safety last 24h / next 24h 2. Attendance last 24h / next 24h How much capacity do we need and have? Are people working where we need them? 3. Quality last 24h / next 24h Where are we in relation to the goal? (KPI) 4. Cost last 24h / next 24h Where are we in relation to the goal? (KPI) 5. Delivery last 24h / next 24h Where are we in relation to the goal? (KPI) Problem Did we understand the problem? Can you explain the problem? Do we need to go & see to fully understand? What can we do immediately? Do you see any benefit in writing this down? What can I do to help? How can I help? REV 2.2 Use questions to inquire about the problem (examples) Go and See as much as you can. If you encounter: = No issue, move on to next point of the routine = Move to the problem section, investigate

W3 Business Systems W3 Group, LLC SFM Structure/Alignment ? ! ! ! Daily Monthly Reflection & Feedback Monthly Reflection & FeedbackSFM Routine DEPARTMENT UNIT LEVEL

W3 Business Systems W3 Group, LLC Daily SFM Coaching Routine 1. Safety last 24h / next 24h 2. Attendance last 24h / next 24h How much capacity do we need and have? Are people working where we need them? 3. Quality last 24h / next 24h Where are we in relation to the goal? (KPI) 4. Cost last 24h / next 24h Where are we in relation to the goal? (KPI) 5. Delivery last 24h / next 24h Where are we in relation to the goal? (KPI) Problem Did we understand the problem? Can you explain the problem? Do we need to go & see to fully understand? What can we do immediately? Do you see any benefit in writing this down? What can I do to help? How can I help? REV 2.2 Use questions to inquire about the problem (examples) Go and See as much as you can. If you encounter: = No issue, move on to next point of the routine = Move to the problem section, investigate

W3 Business Systems W3 Group, LLC SFM Structure/Alignment ? ! ! ! Daily Monthly Reflection & Feedback Monthly SFM Routine PLANT LEVEL

W3 Business Systems W3 Group, LLC Daily SFM Coaching Routine 1. Safety last 24h / next 24h 2. Attendance last 24h / next 24h How much capacity do we need and have? Are people working where we need them? 3. Quality last 24h / next 24h Where are we in relation to the goal? (KPI) 4. Cost last 24h / next 24h Where are we in relation to the goal? (KPI) 5. Delivery last 24h / next 24h Where are we in relation to the goal? (KPI) Problem Did we understand the problem? Can you explain the problem? Do we need to go & see to fully understand? What can we do immediately? Do you see any benefit in writing this down? What can I do to help? How can I help? REV 2.2 Use questions to inquire about the problem (examples) Go and See as much as you can. If you encounter: = No issue, move on to next point of the routine = Move to the problem section, investigate

W3 Business Systems W3 Group, LLC 1. Inquire Status 2. Answer 4.(Go&See) 3. Documentation SFM Routine ? ! ! ! Reflection & Feedback SFM Routine TEAM LEVEL Learning and reflection through observation

W3 Business Systems W3 Group, LLC Daily SFM Coaching Routine 1. Safety last 24h / next 24h 2. Attendance last 24h / next 24h How much capacity do we need and have? Are people working where we need them? 3. Quality last 24h / next 24h Where are we in relation to the goal? (KPI) 4. Cost last 24h / next 24h Where are we in relation to the goal? (KPI) 5. Delivery last 24h / next 24h Where are we in relation to the goal? (KPI) Problem Did we understand the problem? Can you explain the problem? Do we need to go & see to fully understand? What can we do immediately? Do you see any benefit in writing this down? What can I do to help? How can I help? REV 2.2 Use questions to inquire about the problem (examples) Go and See as much as you can. If you encounter: = No issue, move on to next point of the routine = Move to the problem section, investigate

W3 Business Systems W3 Group, LLC Phases During the SFM Coaching Routine 1. SFM Coaching Routine ? ! 2. Clarification / feedback round 3. Summary and Expectation 4. Feedback from 2 nd Coach Learning through observation and self reflection What can we expect to see tomorrow? Learning through practicing the routine Learning through feedback and self reflection This was my impression …. Focus

W3 Business Systems W3 Group, LLC Our Intent Today… 17 To demonstrate the core routines of TK, give you something to think about and… allow you to compare to your current way of working. © Mike Rother

W3 Business Systems W3 Group, LLC The Pattern of the Improvement Kata 18 © Mike Rother

W3 Business Systems W3 Group, LLC © Mike Rother 19

W3 Business Systems W3 Group, LLC Challenge creates alignment between different functions / departments toward a Shared Objective © Mike Rother

W3 Business Systems W3 Group, LLC The Roles 21 ManagerSupervisor Supervisor Owns the Target Condition. Manager Advises and Supports © Mike Rother

W3 Business Systems W3 Group, LLC C O A C H I N G K A T A The Five Questions 1)What is the Target Condition? 2)What is the Actual Condition now? Turn Card Over > 3)What Obstacles do you think are preventing you from reaching the target condition? Which One are you addressing now? 4)What is your Next Step (next PDCA/experiment) What do you Expect? 5)When can we go and see what we have learned from taking that step? © Mike Rother Reflect on the Last Step Taken 1)What was your Last Step? 2)What did you Expect? 3)What Actually Happened? 4)What did you Learn? Return > Because you don’t actually know what the result of a step will be! Turn Card Over Second Cycle and Beyond

W3 Business Systems W3 Group, LLC Daily SFM Coaching Routine 1. Safety last 24h / next 24h 2. Attendance last 24h / next 24h How much capacity do we need and have? Are people working where we need them? 3. Quality last 24h / next 24h Where are we in relation to the goal? (KPI) 4. Cost last 24h / next 24h Where are we in relation to the goal? (KPI) 5. Delivery last 24h / next 24h Where are we in relation to the goal? (KPI) Problem Did we understand the problem? Can you explain the problem? Do we need to go & see to fully understand? What can we do immediately? Do you see any benefit in writing this down? What can I do to help? How can I help? REV 2.2 Use questions to inquire about the problem (examples) Go and See as much as you can. If you encounter: = No issue, move on to next point of the routine = Move to the problem section, investigate

W3 Business Systems W3 Group, LLC Our Intent Today… 24 To demonstrate the core routines of TK, give you something to think about and… allow you to compare to your current way of working. © Mike Rother