1. Advancing the World’s Supply Chains LEAN LEADERSHIP: Building the Lean Culture Robert Martichenko | June 17, 2016

2. Copyright LeanCor Supply Chain Group

3. Changing Mental Models Mental Model : An explanation of a person’s thought process for how something works in the real world. Mental Model : An explanation of a person’s thought process for how something works in the real world. “Two people can go to the same movie together and come out of the theater having watched a completely different movie.” - Glen Wright “Two people can go to the same movie together and come out of the theater having watched a completely different movie.” - Glen Wright Mental models:  Shape our behavior  Define our approach to solving problems  Impact how we form decisions  Help us carry out tasks

4. Copyright LeanCor Supply Chain Group ► “ All men by nature desire knowledge” ► “The only real wisdom is knowing you know nothing” ► “The more you learn the more you realize you don’t know” ► “If you know but you don’t do, then you don’t really know” Socrates – Plato – Aristotle

5. Copyright LeanCor Supply Chain Group The Leader who wants to create a learning culture based on creating customer value at the lowest possible total cost Lean Leader – The Story Across the entire End to End Value Stream of the organization When the organization is looking for a business system to leverage people, eliminate waste and maximize value

6. Copyright LeanCor Supply Chain Group We create a safe work environment. We understand the customer's requirements and "Go and See" to ensure we are creating value and eliminating waste. We listen and are empathetic and support all team members in continuous improvement.

7. Copyright LeanCor Supply Chain Group Thought Leaders of Lean “Purpose. People. Process.” - Jim Womack “Purpose. People. Process.” - Jim Womack “What is the purpose?”

8. Copyright LeanCor Supply Chain Group We know, show, and improve the value we provide to our customers. We know the roles and responsibilities of all team members and show people how they are important to the mission. We create a learning culture by asking "why" as we maximize value at the lowest possible total cost.

9. Copyright LeanCor Supply Chain Group Lean Transportation Principles Transportation strategy should be developed by inventory strategy that’s designed to support customer consumption. Law of Transportation Strategy When used efficiently, transportation can move from a cost center to a profit center. Law of Transportation Waste Transportation is not a commodity due to differentiated providers and service. Shippers should focus on core carrier relationships for quality and stability. Law of Transportation Performance The real gains lie in focusing on productivity costs rather than solely on carrier rates. Law of Transportation Cost Structure Sustained cost reduction results from daily transportation event management and an hour-by-hour focus on transportation waste reduction. Law of Transportation Daily Event Management

10. Copyright LeanCor Supply Chain Group We understand and believe in the intrinsic value of all people. We build effective teams. We do, teach, coach and mentor. We understand and appreciate the mental models of all people. We appreciative resistance as a teaching opportunity.

11. Copyright LeanCor Supply Chain Group Thought Leaders of Lean Ask: “What do you think happened?” “The problem is at the top; management is the problem. You have to manage the system, the system will not manage itself.” - W.E. Deming “The problem is at the top; management is the problem. You have to manage the system, the system will not manage itself.” - W.E. Deming

12. Copyright LeanCor Supply Chain Group We understand that process entropy happens. We have a deep understanding of the current state and vision of the future state. We focus on creating stability through Lean principles. We are highly collaborative and participative as we cascade vision to strategy to tactics. We drive process discipline through PDCA.

13. Copyright LeanCor Supply Chain Group Visibility

14. Copyright LeanCor Supply Chain Group Thought Leaders of Lean “How can I help?” “There are three kinds of leaders. Those that tell you what to do. Those that allow you to do what you want. And Lean leaders that come down to the work and help you figure it out.” - John Shook “There are three kinds of leaders. Those that tell you what to do. Those that allow you to do what you want. And Lean leaders that come down to the work and help you figure it out.” - John Shook

15. Copyright LeanCor Supply Chain Group We make problems visible and solve problems in real time in order to continuously improve and get better every day. We create a fun, dynamic and fearless working environment by never being satisfied with the current state. We talk to people about their work and support people in their problem solving.

16. Copyright LeanCor Supply Chain Group We believe in a healthy balance between people, process and results. We have a target deployment process and recognize that achieving goals is a function of people and process improvement.

17. Copyright LeanCor Supply Chain Group To fully engage customers, suppliers and all team members to increase customer satisfaction, increase revenue, reduce costs and improve working capital - all while creating rewarding careers for our team members. WHY

18. Copyright LeanCor Supply Chain Group What’s Next …