1. Lean Leadership Supersession

2. Video

3. Session Overview Lean Leadership overview Case Study Stories Q&A with Panel Wrap up and Key Take-Aways

4. Lean Leadership Audience Participation Where is your companies status for Lean / Continuous Improvement? 1.Limited examples 2.Good examples in some areas/functions 3.Formal structure in place 4.Imbedded in the culture throughout the organization

5. Lean Leadership Audience Participation Where are YOU at on your Lean / Continuous Improvement Journey? 1.Not Started 2.Beginning 3.Been on my journey 1-2 years 4.3-5 years and teaching 5.6+ years, teaching and mentoring

6. Lean Leader – The Story

7. Rp 4 R

8. HOW

9. WHY

10. Lean Leadership Audience Participation What IS NOT one of “what” elements for Lean Leadership 1.Respect 2.Purpose 3.People 4.Process 5.Programs 6.Results

11. SCLA Lean Leadership Case Studies International Paper Examples

13. Non-Conforming Product (NCP) A business unit had experienced very high levels of non- conforming product (NCP) consistently for years. Manufacture of NCP was negatively impacting product manufacturing costs, supply chain costs, and customer reliability. $4MM Savings realized via 41% reduction in NCP generation and 18% reduction in NCP inventory. Supply Chain Benefits Reduced NCP Transportation Costs Reduce NCP Inventory/Working Capital Financial Benefits Reduced Aged Product Losses Intangible Benefits More Reliable to Customers Additional Capacity

14. Lean Leadership Learnings Lean Operating Principles – Build Effective Teams with Cross-functional Representation – Develop Necessary Measurement Systems and Provide Visibility to Key Metrics – Ensure Alignment Around Key Metrics – Experiment and Solve Problems at a Root Cause – Sustain Results Lean Leadership Focus and Behaviors – New Business Unit Leadership Set a Vision and Challenged the Organization with a Huge Step Change Improvement Expectation No Longer the “Elephant in the Room” Overcome Past History/Stigma Treat Problems as Treasures

15. Partial Balances Partial Balance is less than a vehicle quantity in jeopardy of missing the customer expected delivery date. Partial Balances not shipped caused missed customer delivery commitments driving heroic fire fighting. A Kaizen event was conducted to identify opportunities to improve the process. A new process was developed to identify, track, and manage execution of partial balance shipments. – The new process was not successfully implemented. – Key stakeholders did not accept the changes.

16. Lean Leadership Learnings Lean Operating Principles – Stakeholder Analysis is Vital to Project Success Project Success = Quality of the Solution x Stakeholder Acceptance Engage Early, Don’t Over-look Middle Managers – Maintain the Discipline of Good Kaizen Event Design. Don’t Accept Key Stakeholders Not Attending Don’t Shorten Event Timing as Process will be Jeopardized Report-outs are Designed for Discussion, Understanding, and Acceptance. Silence is NOT Good! Lean Leadership Focus and Behaviors – Reflect and Learn From Every Project, Even the Unsuccessful Ones – Change the Mindset Empower Problem Solving vs Rewarding Hero Firefighting

17. Lean Leadership Audience Participation International Paper reduced non- conforming product by what percent? 1.11% 2.22% 3.35% 4.41% 5.57%

18. KC Damage Reduction Distribution Damage rate of 3.2 cases for every 10,000 handled What Problem were we trying to solve? Network Damage Rate Stagnate No Continuous Improvement Focus At site level, Results not Predictable What was our approach? 3 Year Vision Process Owner Annual Strategy Deployment (A3) Connect to Monthly/Weekly/Daily Developed team on: Standard Work Visual Mgmt Leader Standard Work Simple Problem Solving Recognized Progress Offered/Provided Support Got out of the way!

19. Lean Leadership Learnings Align on Vision Set Challenges Visual Management Must drive action Daily Problem Solving Pace of Change Success breeds Success Know when to get out of way Support failure Transition from Outcome to Process Know why you’re successful Predictability If I do X, I get Y every time Small Batch more Frequent Monthly, Weekly, Daily Easier to check and problem solve Standard Work Alignment on best way Process to improve against Clarity Connected Checking People focus on what you check Respect for team = Engagement Discipline

20. KC Order Fulfillment FTQ FTQ is the processing of a sales order from order creation to receiving payment with no rework or excessive wait time What Problem were we trying to solve? FTQ was 5% Teams were working excessive hours Lack of focus on Strategic Initiatives What was our approach? Strategy Deployment Session Set target of 95% for 2015 Went to the Gemba Cross functional problem solving Developed process to sustain Daily Standard Work Metrics Escalation processes Leader Standard Work

21. Lean Leadership Learnings Align on Vision and Strategy Deployment Be Consistent year after year Focus team on shorter term challenges Change the mindset of our teams Ask the WHY questions Drive the FTQ thinking beyond orders Everyone does problem solving Management Systems is Critical Drives Sustainability & Continuous Improvement Go to the Gemba Ask the people doing the work Listen and support the problem solving Experiment Start small and learn from your results New improvements reveal new problems Metrics are key Provides the visibility on where to improve

22. Lean Leadership Audience Participation Kimberly-Clark improved order fulfillment First Time Quality to XX% in 2013? 1.21% 2.31% 3.41% 4.51% 5.61%

23. LEAN LEADERSHIP DNA

24. Lean Leadership

25. Q&A Panel

27. Lean Leadership Audience Participation Where is YOUR Lean Leader Maturity? 1.Unaware 2.Aware 3.Doer 4.Coach 5.Mentor

28. Developing Your Lean Leadership IQ Lean Culture – Leading & Building Lean in Action – Tangible Results Getting to Go – Assessing Maturity

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