1. Mohawk lean training PHASE 2: LEAN PROJECT MANAGEMENT

2. Introduction / agenda Welcome and Introductions What to Expect
Forming a Team
Leading a Project – DMAIC
Define
Measure
Exercise – Mapping a Process
Analyze
Exercise – Improving a Process
Improve
Exercise – Bridging the Gap
Control
Managing Change
Determining Savings
Project Timeline
Follow-up Actions

3. Welcome and introductions
Who are you?
What do you do?
How long have you been doing it?
What project have you chosen to work on?

4. What is lean?
A time tested method and set of tools to help us understand:
What adds value to our customers
How work gets done currently
How we can identify root causes of problems
What an “Ideal / No Waste” process looks like
How we can improve performance
Lean embodies a way of thinking and acting to continually improve services, eliminate waste, and enhance customer value
Lean engages the people working in the process

5. What is lean?
Order
Cash
All we are doing is looking at the time line, 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 the non-value added wastes.

6. Waste Elimination Approach
Lean focuses on these areas
Value Added Activities
Non Value Added Activities
essential non-essential (reduce) (eliminate)

7. Forming a team PROCESS SUPPLIERS CUSTOMERS You Are Here
Basically anything that you get from someone else:
Reports
Looking up info on computer
Paper s
Approvals
Basically anything that you send to another department:
Reports
Spreadsheets s

8. Forming a team You have suppliers… …and you have customers too.
Provide constructive feedback to those that provide you with information
Ensure your feedback is understood
Don’t give up!
…and you have customers too.
Ask for feedback on the work you do
Listen to what your customers are saying
Take action to prevent future defects

9. Forming a team Create a Cross Functional Team
Suppliers to the Process
The Process Being Evaluated
Customers of the Process
Specialists where necessary
Need “Doers” and not just Managers
Team should be minimum of four – five members

10. Dmaic roadmap Develop metric(s) and review periodically
Process Mapping
(Current State)
Action Item Tracker
Write the problem down
(Project Charter)
Process Mapping
(Future State)

11. Process flow Searching for Lean Nirvana Orienting your work processes
Organizing your work place
Changing your work tasks so that your product or service is always in a state of constant value adding

12. Dmaic roadmap - define
“If I were given one hour to save the world, I would spend 59 minutes defining the problem and one minute solving it.”
- Albert Einstein

13. Dmaic roadmap - define Project Charter
Helps to focus on and define the process, and the problem being worked
Lists the Specific Objective(s), Team Members, Metrics, Future State, and Savings

14. Dmaic roadmap - Define

15. Dmaic roadmap - measure
Process Map – Current State
Visually display every step of life cycle of a particular process
Interactions and handoffs between people are highlighted
Often identifies steps not known by everyone involved in the process
Participation by all affected groups is critical

16. Exercise 1 – mapping a process

17. Dmaic roadmap - analyze
Process Map – Future State
What would the ideal process look like
Identify and eliminate bottlenecks – Which steps in the process constrain the throughput
Condense multiple locations, reduce unnecessary movement
Multiple approvals – How many steps involve approval or review of actions in previous steps
Automate wherever practical
Question every existing step, approval, and handoff - eliminate unnecessary steps
The 5 Whys

18. Dmaic roadmap - analyze
The 5 Whys
5 Whys is a SIMPLE but POWERFUL technique for uncovering the root cause of a problem when you lack data regarding why the problem is occurring
If we don’t correct the root causes of problems, the same problem will resurface again

19. Dmaic roadmap - analyze
The 5 Whys Example
Why 1: Why didn’t my car start?

20. Dmaic roadmap - analyze
The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead.

21. Dmaic roadmap - analyze
The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead.
Why 2: Why is the battery dead?

22. Dmaic roadmap - analyze
The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead.
Why 2: Why is the battery dead? Because the alternator is not charging it.

23. Dmaic roadmap - analyze
The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead.
Why 2: Why is the battery dead? Because the alternator is not charging it.
Why 3: Why isn’t the alternator charging it?

24. Dmaic roadmap - analyze
The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead.
Why 2: Why is the battery dead? Because the alternator is not charging it.
Why 3: Why isn’t the alternator charging it? Because the alternator belt broke.

25. Dmaic roadmap - analyze
The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead.
Why 2: Why is the battery dead? Because the alternator is not charging it.
Why 3: Why isn’t the alternator charging it? Because the alternator belt broke.
Why 4: Why did the belt break

26. Dmaic roadmap - analyze
The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead.
Why 2: Why is the battery dead? Because the alternator is not charging it.
Why 3: Why isn’t the alternator charging it? Because the alternator belt broke.
Why 4: Why did the belt break? Because it was well beyond its useful service life and wasn’t replaced per the owners manual.

27. Dmaic roadmap - analyze
The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead.
Why 2: Why is the battery dead? Because the alternator is not charging it.
Why 3: Why isn’t the alternator charging it? Because the alternator belt broke.
Why 4: Why did the belt break? Because it was well beyond its useful service life and wasn’t replaced per the owners manual.
Why 5 and Root Cause: Why wasn’t the manual followed?

28. Dmaic roadmap - analyze
The 5 Whys Example
Why 1: Why didn’t my car start? The battery is dead.
Why 2: Why is the battery dead? Because the alternator is not charging it.
Why 3: Why isn’t the alternator charging it? Because the alternator belt broke.
Why 4: Why did the belt break? Because it was well beyond its useful service life and wasn’t replaced per the owners manual.
Why 5 and Root Cause: Why wasn’t the manual followed? I never follow the manual, and prefer to take the risk instead.

29. Dmaic roadmap - analyze
Future State Mapping

30. Exercise 2 – improving a process

31. Dmaic roadmap - improve
Action Items need to be SMART

32. Dmaic roadmap - improve
Action Item Tracker
Provides visibility of every action
Maintains accountability to get things done
Allows easy follow-up in the Control phase

33. Dmaic roadmap - improve

34. Exercise 3 – identifying actions

35. Dmaic roadmap - Control
Maintain the Solution
Document and standardize the improvements
Update the Final State process map
Publish standard metrics
Review procedures regularly (annually)
Share learnings across organization
Celebrate your success!

36. Managing change Just what is Change Management?
Change management is about introducing change successfully
It is managing the people-side of business change to achieve the required business outcome, within the social infrastructure of the workplace.
Formalizes the need for making sure that change within an organization is managed effectively, through:
Competent Managers
Effective Processes
Quality Tools

37. Managing change Why Do Some Organizations Fail?
Normally because of lack of recognition of the need to change or a sense of urgency.
Managers are often encouraged and trained to maintain the current system.
Focus changes from solving customer’s needs to market share and increasing revenue per customer.
So what is the Solution?
Initiate Change early
Create a culture of Leadership
Involve the whole organization, not just the managers

38. Managing change
The Normal Change Cycle

39. Managing change
The Normal Change Cycle – Step 1: Anxiety and Fear

40. Managing change The Normal Change Cycle – Step 1: Anxiety and Fear
Why People Resist Change
Disturbs the status quo
Desire not to lose something of value
Fear of the unknown
Fear of loss of control
Fear of losing face
Fear of surprise
Status quo…gets people out of their comfort zones
Fear of the unknown...people are afraid of what will happen if they go through change. Need to make the status quo seem more dangerous than making the change
Loss of Control…change is exciting when it is carried out BY us, but is threatening when it is done TO us
Losing Face…by changing, some people feel that their previous decisions and processes were wrong. They resist change to remain consistent with the past.
Surprise…when change is announced, most people are so shocked that they would rather resist the change or undermine it than accept it

41. Managing change
The Normal Change Cycle – Step 2: Denial

42. Managing change The Normal Change Cycle – Step 2: Denial
Dealing with resistance
Organizations often underestimate the variety of ways people react to change and resist it
Engagement of key stakeholders and top management is critical
Employee involvement from the beginning is also critical
Research shows that IF a significant portion (about 75%) of top management is not involved or convinced of the change, it is likely to fail

43. Managing change
The Normal Change Cycle – Step 3: Misery

44. Managing change The Normal Change Cycle – Step 3: Misery
It takes deliberate action to overcome this step
Early and open communication is the key
Employee involvement and participation helps significantly
Understand who knows what – don’t assume you have all the information
Managers who initiate change often assume they have all the relevant information needed to make the change, and that those who will be affected by it have access to the same facts. It is likely that neither is true.

45. Managing change
The Normal Change Cycle – Step 4: Willingness to Try

46. Managing change The Normal Change Cycle – Step 4: Willingness to Try
Show why it is worth trying – explain the benefits
Make sure that everyone affected by the change has the training and resources necessary to function in the “new world”

47. Managing change
The Normal Change Cycle – Step 5: Challenging the Change

48. Managing change Encourage continued refinement of the process
The Normal Change Cycle – Step 5: Challenging the Change
Encourage continued refinement of the process
Continue employee involvement
Communicate successes

49. Managing change
The Normal Change Cycle – Step 6: Gradual Acceptance

50. Managing change The Normal Change Cycle – Step 6: Gradual Acceptance
Testing before committing
Watching others accept the change
People find a way to match their skills and abilities to the new process

51. Managing change
The Normal Change Cycle – Step 7: Acceptance

52. 1. Create a Sense of Urgency 4. Communicate the Vision
Managing change
So How Do I Get People to Change Successfully?
Eight Steps (and you must do them all!)
1. Create a Sense of Urgency
2. Form a Team
3. Create a Vision
4. Communicate the Vision

53. 5. Empower others to Act on the Vision 8. Institutionalize the Change
Managing change
So How Do I Get People to Change Successfully?
Eight Steps (and you must do them all!)
5. Empower others to Act on the Vision
6. Create Quick Wins
7. Build on the Change
8. Institutionalize the Change

54. Managing change

55. Determining savings SAVINGS: HARD VS. SOFT HARD SAVINGS ARE ACTUAL
$ Saved
FTE employee reassigned
Cost Avoidance
SOFT SAVINGS ARE LESS QUANTIFIABLE
Time reduction
Improved efficiency
Customer Satisfaction
Increased Sales

56. Determining savings
SAVINGS: Hard vs. Soft Example

57. Determining savings
SAVINGS: Hard vs. Soft Example

58. Project timeline Project Milestones Select Team and Create Charter (D)
2 Weeks
Process Map the Current State (M)
3 Weeks
Define the Future State (A)
Recommend and Implement Improvements (I)
4 Weeks
Periodically Reconfirm Actions (C)
Total:
14 Weeks

59. Lean continuous improvement
Questions?
Your Mohawk Resources
Flooring and Home
Phil Zolan x42062
Corporate and Ceramics
Mike Savini x42025