Creating a LEAN Talent Supply Chain

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Creating a LEANTalent Supply Chain
June 22, 2009
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Lean Overview
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Lean

• The relentless pursuit of the perfect process
  through waste elimination
• It requires
• a healthy dissatisfaction with the Status Quo

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Why Map a Process?
Any Process has at least three versions
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Fundamentals of Lean
7 TYPES OF WASTE DEFECTS OVER-PRODUCTION
INVENTORY MOTION TRANSACTIONS TRANSPORTATION
WAITING

• 1. Focus on the Customer Customer Value
• 2. Eliminate Waste
• Deploy Continuous Improvement (Kaizen)

Before
After
Time
Cycle Time
Value Added Work
Non Value Added Work
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Over-production Inventory Waste

• Reduce inventory to make problems visible
• Must feel the pain to know what to fix
• Use Kaizen to fix root cause

Typically, where ever you have more inventory,
you have a lot of part shortages. Reduce
inventory, reduce part shortages.
INVENTORY is the biggest EVIL!
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3 key elements
Standard Work

• Produce to Takt Time
• Create Standard WIP
• Sequence of Operations

Goal Make Problems Visible!
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Standard Work in action

• Takt time 50 min
• Std WIP 11 units (425K)
• Seq of Ops 100 defined

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Operationalizing LEAN
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Ideal State Lean Vision
Vision
20 Days
Customer Go-Live (1st Patient Use)
Purchase Order Received
Goals

• Drive efficiencies with predictable systemic
  execution (20 days)
• Reduce/eliminate rework loops

Initial standards to measure against
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How do we prioritize?

• Value-stream map process to see where focus is
  needed
• Prioritize using a matrix of impact vs
  implementation difficulty

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Lean Strategy DeploymentHoshin Kanri
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Developing Strategy The Challenge

CFO Magazine survey of over 500 companies showed
the lack of value in the planning process can be
explained by
Source CFO Magazine
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What is Lean Strategy Deployment?
How Strategy Deployment Helps

• A logical, three-year plan with one-year
  components
• Driver of breakthrough performance levels
• Alignment of valuable resources within
  company/organization
• Operationalization of strategy through
  linkage to tactics
• Integration of performance review processes
• Creation in specific action plans Not
  discussion
• Facilitation of communication of the right
  vision

Disciplined Process To Achieve Sustainable Process
Improvement to Reach Long-Term Vision
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Strategy Deployment Historical Roots
Hoshin Kanri Lean Philosophy As The Foundation
For Strategy Deployment

• Disciplined assignment of resources to Annual
  Improvement Priorities (AIPs)
• Resource constraints force de-selection of focus
  areas
• Result .
• Manageable workload for teams and leaders
• Focused progress towards strategic goals

Directs leaders to deploy resources to the
activities most capable of driving progress
towards strategic goals
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Flow down from Strategy to Kaizen
Starts with Breakthroughs
Example
Strategy

• Rank in Top 3 Plants Globally for GE Healthcare
• Achieve 12 Turns on Plant ICV by 2009
• Achieve lt 5M in RM/WIP/FG for Vaporizers
• Implement CBR on Tec 7 Vaporizer Mfg Line
• Kaizen FW24 Finish part genealogy, product
  tree/PR analysis, and implement Heijunka.

3-Year BreakthroughObjective
Annual ImprovementPriority
Value Stream Focus
Specific Kaizen
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Strategy Deployment Execution
A planning and implementation process
Strategic Deployment
SD Planning

• Focuses on the implementation of breakthrough
  objectives
• Links breakthrough objectives with specific
  resources
• Aligns resources within the company

SD Implementation

• Facilitates on-going review of progress (PDCA)
• Results in specific action plans and measurements
• Is always a dynamic process

Work ON the business not IN the business
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Strategy Deployment

• Logical, 3 year plan, 1 year components
• Critical resources aligned to top strategies
• Performance to monthly goals integrated into
  strategy
• Action Workouts (Kaizens) aligned to achieving
  commitments

Kaizens support Action Plans
Growth Playbook S2 with a
monthly rhythm
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Final Thoughts
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7 Success Factors of Lean
Boston Consulting Group, Sept 08

• Choose strategic, customer-centric focus areas
• Think big, but start small
• Involve everyone from top managers to line
  workers
• Tailor approach to your culture
• Assign or create dedicated, experienced,
  knowledgeable resources
• Use metrics to drive progress
• Communicate, communicate, communicate

Leadership sets the stage
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The power of a good idea system
Ideas are Free Alan Robinson