1. Turning LEAN into GREEN
Presenter: Mike Leigh
LMI Partner
Roanoke, VA USA

2. Agenda Background/History of LEAN Brief Description of LEAN
How LMI programs can help

3. History of Toyota and Lean
Sakichi Toyoda began loom business in 1894.
Toyoda Automatic Loom Works (1926)
Toyota Motor Company (1930)
Started by Kiichiro Toyoda
Influenced by Ford and U.S. supermarkets
Developed concepts of JIT and Kanban

4. History of Toyota and Lean
Taiichi Ohno – began Toyota Production System (TPS)
Post WWII, needed to compete with Ford and U.S.
Needed to turn cash quickly.
Japan demand too low to support mass production.
Core principle: One-piece flow

5. TPS Philosophy
“All we are doing is looking at a timeline, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing non-value-added wastes.”
Taiichi Ohno
Toyota Production System
Beyond Large-Scale Production,
Ohno, 1988
* Most business process are >90% waste and <10% value added

6. Defining Value Before After Lead Time Work . . . Value Add Time
Wait / Waste . . .
Non Value Add Time
Work . . .
Value Add Time
Lead Time

7. Continuous Improvement
cycle time
Perfect output
is delivered immediately
is defect free
is delivered one request at a time
is produced without waste
Kaizen is the road to perfection… continuous improvement
Kai= change; Zen = for the better
not a silver bullet or an one time fix…. requires commitment for big dividends
months
days
hours
minutes
seconds

8. 7 Types of Waste Over-Processing (excess work) Transportation Motion
Defects
Inventory
Over-Production
Waiting
Inventory

9. Four Areas Applicable to LMI
1. Leadership and Culture
Organizational Development
Servant Leadership / Respect for Employees
Leadership Behaviors

10. Leadership and Culture
“Implementing lean thinking requires major change management throughout an entire organization, which can be traumatic and difficult. Strong commitment and inspiring leadership from senior leaders is essential to the success of an effort this challenging. The CEO must be a vocal, visible champion of lean management, create an environment where it is permissible to fail, set stretch goals, and encourage “leaps of faith.” A senior management team that is aligned in its vision and understanding of lean is a critical foundation for “going lean.”
- Going Lean in Healthcare, Institute for Healthcare Improvement, 2005

11. Leadership and Culture
Principle 9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
Principle 10. Develop exceptional people and teams who follow your company’s philosophy.
- The Toyota Way, Liker

12. Leadership and Culture
Strategy Deployment (Hoshin Kanri)
Create goal alignment at all levels of organization
Two-way feedback
True North objectives
Performance Measures
Visual, Easy to understand at a glance
Timely (Rapid feedback)
Selective (few key areas important to customer)
Goals
Feedback
Ideas

13. Organizational Development
Value Streams vs. Functional Silos
Cross-department coordination
Information Flow (Communications)
Realignment of Responsibilities
Sales | Eng | Ops
Products
Sales | Eng | Ops
Sales | Eng | Ops
Sales
Engineering
Ops

14. Servant Leadership LEAN requires an engaged workforce
Managers need to empower employees
Process vs People (no “blame game”)
Employee ownership
Ideas Creation
Operators
Dept Managers
Facilitators
Engineers
Upper
Mgmt
Supported Top Down
Driven Bottom Up

15. Leadership Behaviors Employee Respect and Appreciation
Kaizen and Suggestion Management
Go to the Gemba
Standard Work at all leadership levels
Enforcement of Standards / Auditing
Collaboration between departments

16. Additional Information
All I Need to Know About Manufacturing I Learned in Joe’s Garage – Miller, Shenk
The Toyota Way – Liker
Lean Hospitals - Graban