Building and Sustaining a Lean Culture:

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Building and Sustaining a Lean Culture The
Quality People Value Stream
Mike Hoseus Author, President, Lean Culture
Enterprises mike.hoseus_at_gmail.com or 859-699-2235
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Three Levels of Culture
What we see, what a newcomer, visitor or
consultant would notice (e.g., dress,
organization charts, physical layout, degree and
formality, logos, and mission statement.
Artifacts Behavior

What they say, What we would be told is the
reason things are the way they are and should be.
Company philosophy, norms and justifications.
Norms Values
.
Underlying Assumptions
What they deeply believe in act on
Unconscious, taken for granted beliefs about the
organization and its work/purpose, about people,
rewards etc.
Based on Edgar Schein, Coming to a new awareness
of organizational culture, pp. 375-390 in J.B.
Lau and A.B. Shani, Behavior in Organizations,
Irwin, 1988
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Value Work Flows Across Functions
Finance
IT
Marketing RD
Supply Chain
Human Resources
Sales
Big horizontal business processes
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Which one describes your Company?

• Vertical

• Horizontal

• Focus - Production
• Budgets, SOPs
• Make the numbers
• Leaders separated from the work
• Peoples ingenuity used to beat the system
• Supervisors manage people

• Focus - Process
• Purpose
• Make problems visible
• Leaders focusing on the work
• Peoples ingenuity used to improve the system
• Supervisors work with the people to solve problems

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Company Goals
Employee Goals
Profit Long Term Success Contribute to
Economy Contribute to Society Good Quality
A Paycheck Growth Good Benefits A Safe
Workplace Meaningful Work
Long Term Mutual Prosperity
Mutual Trust
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Make problems opportunities for kaizen visible.
TPS
Standardized Work, 5-S
Standardized Work, 5-S
Setup Standard
Visual Control (Andon, Line-stop, Visual
Management)
Visual Control (Andon, Line-stop, Visual
Management)
Standardized Work, 5-S
PDCA
Check Abnormality
Problem Solving (Daily Activities, QC Circle,
Suggestions)
Kaizen
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The Toyota Way
THE TOYOTA WAY
Toyota Basic Business Practices
by concentrating knowledge of each every
employee
Teamwork
Respect
for People
for the benefit of all customers stakeholders
Respect
we strive to realize ambitious goals
Challenge
Continuous
Genchi
through steady, fact- driven progress
Improvement
Genbutsu
Kaizen
pursuing highest standards of excellence guided
by best possible course of action
Values
Practices
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It Starts with Values
Toyota Way

• Values
• Beliefs
• Thoughts
• Actions
• Habits
• Character
• Culture

TBP 8 Steps
Goals for the company
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LEAN CULTURE OVERVIEW MODEL
ORGANIZATIONAL STRUCTURE SYSTEMS
CONTINUOUS
IMPROVEMENT
Quality People OUTPUTS Quality Organizations
Human Resources INPUTS Assessment
ENGAGE
DEVELOP
ATTRACT
ENROLL
ORGANIZATIONAL LEADERSHIP ENVIRONMENT
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THE OBJECTIVES OF STANDARDIZATION

• Reduce variability, increase predictability
• Enhance repeatability, confidence, consistency
• Clarify procedures
• Enhance communication
• Improve Problem Solving
• Set good discipline
• Develop awareness
• Establish Problem Consciousness
• Establish a basis for education and training
• Establish a baseline for performance
• Improve Quality, Safety, Delivery, Cost
• Provide the basis for Improvement

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Three Stages of Problem Solving
Maintenance Kaizen
Kaizen
Raising
New Goal

Maintaining
Goal
Reaching

• Problem Solving that focuses on increasing
  capability beyond the goal - Kaizen.

• Problem Solving that focuses on maintaining the
  goal.

• Problem Solving that results in getting to the
  goal.

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Ideal Span of Control
Ratio 15
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HOSHIN - ALIGNMENT
Strategic Process
Cultural Process
Values
Hoshin Goals
Critical Success Factors/Practices
Hoshin Methods
Model Behaviors
Hoshin Activities
Results
Stakeholders
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Team Board for Floor Management Development
System
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Quality Section of Team Board for Floor
Management Development System
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Fujio Cho, Chairman, Toyota Motor

• Former President, Toyota Motor Manufacturing,
  Kentucky
• 3 Keys to Lean Leadership
• Go See.
• Sr. Mgmt. must spend
  time on the plant floor.
• Ask Why.
• Use the Why? technique daily.
• Show Respect.
• Respect your people.