2012 Lean Educator Conference September 27 29, 2012 Norfolk VA. Abstracts for Contributed Presentations

Transcription

1 2012 Lean Educator Conference September 27 29, 2012 Norfolk VA s for Contributed Presentations

2 Grouping of s Session 1 Product Value Stream: Ships Session 2 International Perspectives Session 3 Lean Implementation Value Stream Session 4 Product Development Value Stream Session 5 Office Value Stream Session 6 Student Value Stream: Learning Operations Session 7 Patient Value Stream Session 9 Financial Value Stream Session 10 Student Value Stream: K-12 and Beyond Alternate Backup presentations

3 Table of Contents Authors Title Ses Pg Melanie Young Developing Continuous Improvement Leaders Throughout an Enterprise 1 1 Vance A. Kinsey Teaching Team Decision-Making to New Facilitators 1 2 William Scott Payne Designing an Infrastructure for Continuous Improvement in a Production Environment 1 3 Robert Conway Sheet Metal Shop Floor Rapid Improvement Workshop 1 5 Richard Kunkle A Different Pedagogy: Teaching Lean Through Operational Excellence Around the World 2 6 Henry X. G. Ming Lean Education and Implementation of Product Lifecycle in China 2 7 Luis Alfredo Miranda Strategic clustering and enterprise excellence Vergara and María de los through collaboration: enhancing regional Ángeles Gómez Gavito competitiveness and development in Puebla, 2 9 Mahamouda Salouhou, Alain Durocher, and Messaadi Nassir Robert A Peretti Theodore Mayeshiba and Tye Lockhard Antonio Sartal, Xosé H. Vázquez, and María A. Quintás Sushil Shetty, Paul Componation, and Sampson Gholston Stanley I Weiss Myrna Flores, Karina Flores, and Christopher Tucci Edward Alyanak Julie Vittengl and Dan Ireland Leslie Henckler and Thomas Harris Karyn Ross México Overcoming Implementation Barriers for Lean Healthcare in Europe: An Academic Case Study in Northern France Operational Excellence Curriculum in Four Year Colleges Training Lean in a Learning Organization Lean Manufacturing and Information Technologies: an interpretation of their synergies in search of operational excellence 3 16 Development and Testing of a Proposed Method to Understand an Employee's 3 18 Perception of Lean Implementation A Value Approach To Product and System Development 4 19 The Lean Transformation Toolkit: Towards a Journey for Lean Product Development 4 20 Educating for the Integration of Lean Applications within the Product Development Process SMED for the Head: Teaching Lean Concepts to Today s Knowledge Workers Building the Skills of PDCA Thinking and the use of A3's to Deliver Business Results Using Visual Strategies to Teach Lean in HR Services

4 Authors Title Ses Pg Houses Built On Sand: How the Lack of Operations Management Knowledge 6 31 Undermines Lean Implementations John Bicheno, John Darlington and Kate Mackle Constantin May Tommaso Rossi, Carlo Noè, Fabio Salomone, and Rossella Pozzi Sharon Johnson Earll Murman, John Nowak, and Deanna R Willis Kelly Frankson Rosemary Fullerton Carolyn Conn Gerald DeBusk, Clay L. Moerland Jr, and Lawrence P. Grasso Betty Ziskovsky Jim Benson and Tonianne DeMaria Barry Rhonda M Rabbitt and Susan R. Hughes Sameer Anand Suren Dwivedi, Sumant Kulkarni, and Pinkeshkumar Attarwala Theodore Mayeshiba and Greg Placentia Hugh McManus Li Li Min, Paula T. Fernandes, and Robisom Calado The Lean Learning Factory (Die Lehrfabrik). Experiential learning in a real-life environment for building sustainable adult capabilities 6 33 Kart Factory : a powerful tool for experiential learning of lean manufacturing 6 35 Building Educational Programs that Support Healthcare Delivery Innovation 7 36 Video Vignettes for Lean Healthcare Training and Education 7 37 The Lean Education Retention Equation, Best practices learned at VCH 7 38 Energizing Management Accounting with Lean Thinking 8 39 The Essentials of Lean Accounting for Lean Environments and Your Accounting Classroom 8 40 The Application of Lean Accounting to a Manufacturing Simulation: A Teaching Note 8 41 Developing A Lean Workforce From Square One - Introducing PI and Kaizen In Kindergarten Personal Kanban: Lean Basics for Knowledge Workers Continuous Improvement in the Classroom Transforming a large global enterprise using Lean Sigma, Change Management, and Project Management Developing Multidisciplinary Lean Manufacturing Course through Virtual Reality and Inquiry-Based Learning Building a Safety Culture Through the Training of Lean Concepts Lean Applied to Complex Systems: A Teachable Moment Alt 46 Alt 48 Alt 49 Alt 50 First step in Lean Journey at Faculty of Medical Alt 52 Sciences of UNICAMP Leonard Pavia Using Kaizen In Your Lean Teaching Method Alt 53

5 Sesssion 1: Product Value Stream: Ships Developing Continuous Improvement Leaders Throughout an Enterprise Melanie Young, Newport News Shipbuilding, Newport News, VA Many large companies struggle with the culture change needed to achieve true continuous improvement. At Newport News Shipbuilding, we have an employee base of approximately 20,000 people, few of whom had heard the term value stream when we began our continuous improvement journey. Our 125-year-old culture is one with deeply rooted traditions and a strong resistance to change. However, during the past eight years, we ve created momentum within this culture, a movement toward new viewpoints and attitudes. We accomplished this task through the strategic placement of continuous improvement experts throughout the enterprise. Our Facilitator Certification Program has created a cadre of employees who are highly skilled in the application of Lean principles and are proficient at leading people through process change. These individuals spent a year working in our Process Excellence division before being redeployed to their home departments to act as change agents. The Facilitator Certification Program is based on the Watch-Do-Teach concept paired with a structured five step training regimen. Candidates are chosen by senior management and vetted through the Process Excellence management team. Once chosen, these employees begin working full time with our facilitation team. They begin their one-year rotation by learning a series of topics: 1. Introduction to the Process Excellence Organization 2. The Principles and Tools of Lean 3. Continuous Improvement at NNS 4. Rapid Improvement Workshop Preparation and Construct 5. Facilitator 101 After completing written and oral examinations of each topic, facilitators begin observation of more senior team members. Each new facilitator observes a minimum of two Rapid Improvement Workshops (RIWs), conducted by two different team members. They are then gradually acclimated to facilitation by leading portions of RIWs, working up to leading entire three to four day workshops under the tutelage of the more experienced facilitators. When new facilitators have successfully demonstrated all the skills necessary for their position, they are free to run workshops on their own. They are assigned workshops from various parts of the company to both hone their facilitation skills and to increase their knowledge of the overall value stream. With a majority of our facilitation positions being filled by rotation candidates, there is a high turnover of employees in the facilitation team. This turnover allows for each facilitator to complete the Watch-Do-Teach model by tutoring incoming candidates. Once their one-year rotation is complete, certified facilitators return to their home department as Lean application experts. Cultural momentum is difficult to sway, but it can be greatly affected by well-placed change agents. Since the inception of our facilitator certification program, we ve placed more than two dozen individuals throughout our enterprise, equipped to inspire process improvement at all levels of our organization. 1

6 Sesssion 1: Product Value Stream: Ships Teaching Team Decision-Making to New Facilitators Vance A. Kinsey, Master Black Belt/Instructor, US Navy, NAVSEA s Lean Six Sigma College, Norfolk Naval Shipyard, Portsmouth, Virginia One of the first skills a team needs to develop is decision-making. Often, the need to exercise this skill occurs very early in a team s maturity. If a team does not understand the process of decision-making, the chances of making a poor decision as a team are very high and complicate future decisions once decision-making precedent is set. Even mature teams, consistently functioning in the performing stage of team development, will fall victim to a Road to Abilene Paradox decision if they are not taught to follow a process to make decisions. The process of decision-making generally uses a series of very common tools in a specific sequence to arrive at a defensible decision that everyone on the team can explain and support. For most performance improvement events, the person who must be the expert on these various tools and the person who must teach the team to use these tools is the facilitator. In the Navy, beginning facilitators for Continuous Performance Improvement (CPI) events are called Green Belts. The majority emphasis in Green Belt training is on the key concepts and tools associated with the disciplines of Lean (waste elimination), Six Sigma (variation elimination) and Theory of Constraints (bottleneck elimination). However, the Green Belt must also master the basic tools of facilitation that include identifying and shepherding a team through the stages of team dynamics (maturity development) as well as leading a team through a process of decision-making. For our Green Belt training course, we have developed a scenario-based exercise that not only demonstrates the most common variations of the basic tools, but teaches the novice facilitator how to teach the tools quickly to a team (on-the-fly implementation), the use of simple low-tech materials readily available in nearly all events, how to expertly modify the tools to fit specific situations and how to diffuse difficult situations while building consensus towards a course of action based on the decision the team is making. The exercise itself was designed to directly involve all personnel in a class, and be entertaining, fun, fast-paced, risk free and yet encourage the development of the associated skills as well as the memory aids to help remember them. All within one hour. The purpose of this session is to demonstrate how this is done by actually performing this instruction exactly the way it would be done in our Green Belt course. There are no special skills or pre-requisite knowledge required to participate in this session and the participants will leave with a very solid understanding of the basic tools used in team decision-making and how to facilitate their use and teach them with confidence. 2

7 Sesssion 1: Product Value Stream: Ships Designing an Infrastructure for Continuous Improvement in a Production Environment William Scott Payne, Newport News Shipbuilding, Newport News, VA The Component, Fabrication, and Assembly (CFA) Manufacturing Division within Newport News Shipbuilding established a Continuous Improvement Lead Team (CILT) with the purpose of leading the improvement of bottom line performance in its 4 business units. Unfortunately, during the first year of existence the CFA CILT had been unable to get traction and show significant sustainable improvements. Over the past 8 months I have led the redesign and implementation of the CFA CILT process. This presentation will provide lean educators a road map that can be used to design and install the infrastructure on which a successful continuous improvement program can be built. The presentation will focus on 5 key areas that have proved paramount to the overall success of the implementation. 1. The Key Tenets of the system 2. Explanation of the actual system design 3. The stages of implementation 4. The importance of documentation, standardization, and visibility 5. The common failure modes and corrective actions This presentation will show the realistic difficulties that I have confronted during the implementation of this program and the strategies, both successful and unsuccessful, which have been utilized to address them. Additionally, examples of sample display boards (Figure 1) and documentation will be utilized to highlight the method of communication used and its importance. The lessons learned during the implementation of this system are transferable to any organization and the overall success relies heavily on ensuring that the key tenets are the cornerstone of your system. Key Tenets: 1. Establish the right mental models 2. Develop a standard process, stick to it 3. The goal is not quick improvements, but sustained and institutionalized improvements 4. Clear Purpose, Simple Process, Thorough Action 5. Over-communicate The combination of the key tenets, definitions of the stages of implementation, and real-life corrective actions will provide the knowledge and skills needed to design a customizable system that will meet the needs of any environment. 3

8 Sesssion 1: Product Value Stream: Ships Figure 1. Project Tracking Board Sample 4

9 Sesssion 1: Product Value Stream: Ships Sheet Metal Shop Floor Rapid Improvement Workshop Robert Conway, Sheet Metal Shop General Foreman, Newport News, VA Seeing is believing - an old adage that was proved true at Newport News Shipbuilding last year. After experiencing several unsuccessful process improvement efforts, Mr. Conway opened his shop one more time to the Process Excellence division. But this effort was different, and very much needed. Shop metrics reflected several problems, including poor flow, high numbers of delinquencies, long cycle times, and low employee engagement. These are not uncommon problems, and the typical excuse is to say that this is the way it has always been and that s the Shipyard. But with drastically increasing customer demands, change was essential. The benefits of Lean and removing waste are known at the Shipyard, but seeing it firsthand makes one a believer. There have been many improvement projects at the Shipyard over the last thirty years, but nothing compares to the latest On the Shop Floor Rapid Improvement Workshop (RIW) that took place in the Light Sheet Metal Shop in The RIW used direct engagement and participation from the craftsmen to transform the shop floor and redesign a complex process. This transformation included turnover for all three shifts and the development of a machining / material service area. After the RIW, there were further improvements made monthly. The improvement ideas came directly from the shop floor and have increased the shop s capacity by more than 50%. This was done by batching like work and creating mini-cell assignments to continue payback on cost and total cycle time through the shop. A doubtful shop management team has seen their expectations exceeded by far. In fact, the changes made have allowed this shop to out-perform other similar shops by more than 50%. The shop floor teams continue to see benefits in producing more product they are now privy to new tooling that would not have been possible before. It is now possible because the team is recognized as A Complete Team Unit that consistently produces results. 5

10 Session 2: International Perspectives A Different Pedagogy: Teaching Lean Through Operational Excellence Around the World Dr. Richard Kunkle, M.D. Kennametal Center for Operational Excellence St. Vincent College, Latrobe, PA The World is Flat so said Thomas Friedman in Globalization and the intertwined economies of once distant and thus, relatively insignificant countries, have come to play an increasingly significant role in the professional business lives of our emerging students. One needs look no further than our current world economic stagnation to witness the effect of one country s economic status on the health of a massively intertwined world economy. Students need to be fluent not only in the modern international business languages, but also in the cultural, ethical and social business practices of the individuals and countries with which they will be dealing. The extent to which a student is comfortable and erudite with various cultural idiosyncrasies and practices may well determine the success or failure of an otherwise well conceived business strategy. Pedagogy in teaching Operational Excellence (OE) (Lean/TPS/Continuous Improvement) is a developing science. Just like pediatrics is not the practice of adult medicine in little adults, business in China, Mexico or Germany is not the practice of American business in a foreign language. To further the goals of exposing our undergraduate and graduate students in OE to the international business setting and to introduce them to the various methodologies, cultural adaptions and interpretations of OE in the international setting, a program entitled Operational Excellence Around the World was introduced into our curriculum. The program consists of a 2-credit course in the spring semester. It is composed of a research component, field experience, reflection, integration and analysis. Our pilot program occurred in March 2012 when we took a group of 9 undergraduate and graduate OE students to China to visit businesses that were implementing some variation of OE/Lean. This included 4 companies: two National Chinese companies, one American expatriate and one French expatriate company. This paper will share the pedagogy and the results of this pilot as detailed in the notes, observations, photographs and papers produced by the participants and our plans for the future. 6

11 Session 2: International Perspectives Lean Education and Implementation of Product Lifecycle in China : Henry X. G. Ming (PhD, Professor) Shanghai Research Center for Industrial Informatics Shanghai Key Lab of Advanced Manufacturing Environment CIM Institute, School of Mechanical Engineering, Shanghai Jiao Tong University 800 DongChuan Road, Minhan District, Shanghai, , P. R. of China Tel/Fax: ; xgming@sjtu.edu.cn, hxgming@gmail.com 1. Overview of lean education in their school or country Overview of lean education at Shanghai Jiao Tong University with regard to the lean production course to undergraduate student at phase one with the interesting suggestions of Lean Thinking to campus activities, and lean operation courses to MBA (Master of Business Administration) students and master of engineering students with application framework suggestions to manufacturing companies. Overview of lean education in China, including other universities such as Tianjing University, Tongji University, and industrial training from most leading companies, such as Multi-National Companies, National Companies, and Private Companies. 2. Cultural differences in practice of lean in their country, e.g. with regard to Respect for People, Value and Waste, PDCA, etc. Cultural differences in practice of lean in terms of industrial background, enterprise management and technological levels, values and wastes, etc. Lean implementation of product lifecycle will describe some leading companies in China that are successfully transforming the enterprise into lean in terms of product design, production, supply chain and service, etc. Different approaches of the lean transformation among companies in Japan, USA, Germany and China will be compared and discussed. Future trends of lean education and implementation in China will be suggested and predicated in the speech as well. 3. Cultural differences in pedagogy, e.g. role of physical or software simulations, team exercises, case studies, etc. Undergraduate students team projects in the domain of e-commerce processes, supermarket processes, and campus life processes MBA students team project in the domain of product life cycle companies, such as machinery fabrication processes Master of Engineering students team project for the analysis of fifferent approaches of the lean transformation among companies in Japan, USA, Germany and China. 4. Opportunities for global collaboration in development and delivery of curriculum Global collaboration in lean implementation and curriculum for product, student, 7

12 Session 2: International Perspectives healthcare and service lifecycle Global collaboration and curriculum development in lean production, lean product development, lean supply chain management, lean talent management, lean enterprise, lean culture and lean leadership Global collaboration and curriculum development in lean capability maturity model with respect to different country culture Global collaboration and curriculum development in lean transformation roadmaps with respect to different country environment 8

13 Session 2: International Perspectives Strategic clustering and enterprise excellence through collaboration: enhancing regional competitiveness and development in Puebla, México Luis Alfredo Miranda Vergara, 1 Lean Enterprise Center UPAEP Director, Puebla, Mexico, María de los Ángeles Gómez Gavito, 2 Lean Enterprise Center UPAEP Consultant, Puebla, Mexico. Enhancing regional competitiveness and social development are key for UPAEP s strategy. UPAEP s graduate school has therefore developed strategic relationships with international institutions to foster projects in strategic and operations management. This is the case for the Lean Advancement Initiative Cluster Mexico (LAIMex) and the Sintonia projects. The purpose of this paper is detailing the work methodology developed for LAIMex, understanding the role and benefits for faculty, and explaining its link as a complementary initiative to Sintonia, both innovative projects that foster lean thinking, lean education and strategic regional development. LAIMex is a group of organizations from different sectors led by the Lean Enterprise Center at UPAEP (LECUPAEP). Its purpose is applying the lean enterprise transformation methodology developed by MIT s Lean Advancement Initiative (LAI) in its member organizations. LAIMex strives for value creation and organizational excellence by promoting continuous improvement and innovation, and focusing on people, who are the engine that will revolutionize the intended value added. Sintonia is a collaborative organization whose aim is to foster competitiveness and sustainable economic and social development in the region of Puebla. It offers a common ground for analysis, debate and implementation of specific actions towards social wellbeing, through the development of the region s strategic clusters. Both projects are based on the harmonized tetra-helix model promoted by UPAEP, implying close collaboration between businesses, government, academia and society. The work methodology created for LAIMex includes outreach, learning and collaboration events. We offer training on Lean fundamentals with a humanistic focus, where people are the leverage for transformation. We promote the use the LAI s Enterprise Transformation Roadmap, organize plant and company tours to share achievements and challenges, and offer coaching to identify lean transformation projects within member companies. A particular function of LECUPAEP is linking faculty with the LAIMex and Sintonia projects, once faculty represents a key lever to ensure the proper development of both initiatives. Therefore we have created a Lean Enterprise Transformation course that together with the MOC (Microeconomics of Competitiveness) course will offer companies, faculty and students opportunities to engage in real world projects. Many projects derived from both initiatives will create in situ linkage opportunities between academia and businesses. Faculty plays here an essential role that enables professors to keep updated with real life. Some faculty with strong business or industry backgrounds and whose experience was underused, together with other faculty with strong 1 17 Sur 901, Barrio de Santiago, Puebla, Pue. Mexico. +52(222) Ext. 7958, luis.miranda@upaep.mx 2 17 Sur 901, Barrio de Santiago, Puebla, Pue. Mexico. +52(222) Ext. 7747, mariadelosangeles.gomez@upaep.mx 9

14 Session 2: International Perspectives research and academic backgrounds, are now able to work together in real life projects, thus creating transdisciplinary teams that can implement tangible projects delivering clear benefits for society. This offers also unique opportunities to gain professional experience for students. The expected result is a three-party win-win situation: for organizations, for students and for faculty, focused towards excellence and backed with proven methodologies developed by internationally renowned schools as MIT and Harvard Business School. The benefits are shared between all participants involved in both projects from businesses, government, society and academia, as these initiatives foster lean thinking and lean education aimed for regional clustering and competitiveness, and social development. 10

15 Session 2: International Perspectives Overcoming Implementation Barriers for Lean Healthcare in Europe: An Academic Case Study in Northern France Mahamouda Salouhou, PhD European Center for Leadership and Entrepreneurship Education Alain Durocher, Pr., PhD; University of Lille II. Messaadi Nassir, MD, University of Lille II The current economic crisis has constrained many governments in Europe to introduce new reforms and cut costs in many areas. These reforms have now impacted the medical profession and academia. Europe, which for a long time had been immune to the competitive pressures faced by the United States, is having to become more efficient and effective in both the medical field and in academia. In France, hospitals are being asked to do more, with fewer resources. Academic institutions are under pressure to design curricula that meet the expectations of various industries. Specifically, academic institutions are under pressure to deliver to future employers graduates who will have, not just a theoretical exposure to the discipline, but more importantly a practical functionality. In order to meet those new challenges, the Lean Advancement Initiative of the Massachusetts Institute of Technology (MIT) program has been adapted and introduced to the University of Lille s Master in Health Engineering and Management The participants, were mainly students with no experience in Lean and a limited knowledge of quality management. The two primary forces behind the design of this innovative curriculum were the potential concerns of various stakeholders industry and regulators. Key Words: Curriculum Innovation, Lean Health Care, Government reforms. 11

16 Session 3: Implementation Value Stream Operational Excellence Curriculum in Four Year Colleges Robert A. Peretti, Saint Vincent College, Latrobe PA Operational excellence is the new ideal for many American companies. Indeed, to compete and thrive in the face of ever increasing competition requires the highest levels of performance. Unfortunately for many, the vision of operational excellence holds little more than an abstract concept with no tactical understanding or proven pathways to achievement. In spite of this, companies develop solutions or employ third party consulting and drive some effort. Currently, the needs for understanding and implementing operational excellence are primarily supported by a varied population of third party consultants, practitioners, and home-grown champions within a company. Meanwhile, academia has slowly followed in their support of defining, institutionalizing, and teaching these desirable concepts to their students. Colleges can support this need by incorporating more subject matter into their courses and establish more institutionalization of the concepts as well as the applications. In this article, the author establishes the overall lack of course content in operational excellence subject matter as demonstrated for a regionally bound geography of four year colleges through a study of their course catalogs. The analysis is also presented against a backdrop of industry and consulting statistics in the same region. While the application and achievements of operational excellence are being aggressively sought by American industry, there is a deficit of relevant content being taught within the four year degrees offered by professional colleges. The region consists of a 200 mile diameter centered in Western Pennsylvania and encompasses 47 four year colleges. Manufacturing and consulting industries are sized within this same region to emphasize the amount of commerce and potential demand opportunity for operational excellence compared to the development of operational excellence curriculum in these business schools. Categories of examination are illustrated in Table 1. Determination of content is quantified by using a scale of zero to three where zero signifies no content and three signifies a fully dedicated course. Numeric rankings are weighted his template should be used to submit the abstract. Table 1 presents the industry size of various manufacturing sectors. Number of employees within these industries, and two additional tables on similar consulting statistics are available in the full article. Pie chart shown on next page presents the distribution of college enrollment by major showing business enrollment as the top sector. The final two enclosures on the following page (bar chart and table of figures) present the findings of Operational Excellence content in all schools by defined subject categories and weighted based on the rankings as described. Results show that Business Ethics top the list with a total weighted percentage of 70%, while traditional Operations Management and Organizational Behavior content both reached 50%. Supply Chain is next with a total weighted percentage of 34%. The other categories of Quality Management, Lean Principles, Six Sigma, Theory of Constraints, Change Management, Servant Leadership and Lean Accounting show disappointing averages of less than 15% each. Conclusion is drawn that academia is dramatically lagging in their support of developing expertise is these needed fields. 12

17 Session 3: Implementation Value Stream Table 1. Number of Companies in Region - by SIC codes and Annual Revenue Size INDUSTRY (SIC Codes) - number of companies Company Size: (Annual Revenues, $MM) Mining (10-14) Construction (15-17) Manufacturing (20-39) Total Total Annual Sales $MM.0M - $2.4M ,438 11,162 42,329 10, M - 4.9M ,423 4, M M ,013 1,566 14, M M , M M , M M , M M ,480 Greater than M ,000 Total ,629 13,229 45,735 92,075 Source: D & B Sales and Marketing Solutions, Web. 17 October Distribution of Student Enrollment Business/Marketing 100% Emphasis of Operational Excellence Categories (all rankings weighted) All other Majors (18 plus undeterminates) Health Professions 90% 80% 70% 60% 50% Education 40% Computer and Information Sciences Social Sciences 30% 20% Liberal Arts Biology Communications/Jou Psychology rnalism Engineering 10% 0% Table 6. Emphasis of Operational Excellence Categories in Curriculum Subject Matter Total sample Subject is a standalone course (i.e. Rank 3 qualified) Number and Percent of Schools by Subject Matter Percent of Sample that had a course Subject is a significant subset of another course (Rank 2) Total count for Rank 2 or 3 Percent of Sample for Rank 2 or 3 (Weighte d) Subject is a minor mention in another course (Rank 1) Total count, All Ranks Percent of Sample; All Ranks (Weighted ) Traditional OM % % % Traditional SCM % % % Traditional QM % % % Lean Principles % 4 5 8% 2 7 9% Six Sigma % 1 2 4% 3 5 6% Theory of Constraints % 0 0 0% 1 1 1% Traditional OB % % % Business Ethics/CSR % % % Change Management % % % Servant Leadership % % % Lean Accounting % 0 0 0% 1 1 1% Co Op or Internship % % % Source: Compiled by author, 10 March

18 Session 3: Implementation Value Stream Training Lean in a Learning Organization Theodore (Ted) Mayeshiba, 1 University of Southern California, Los Angeles CA Tye Lockard, Edwards AFB, CA In 2008, a Lean Academy was presented at Edwards AFB. The purpose of the Academy was to present some basic context of Lean with an emphasis on Value Stream Mapping. It was the purpose of the training that an Enterprise Value Stream Map be developed to aid the Group in staying focused on improvement and serve as the guide in determining enterprise improvement progress. The improvement realized after the implementation of the Enterprise Value Stream Maps (EVSM) across all areas as the guide to project identification was an initial success. 150 projects were identified and 5 top level EVSMs were developed to do so. Subsequently, new leadership arrived which caused a removal of support for Lean efforts and termination of control updates of VSMs. Recently, new leadership committed to Lean efforts has arrived and Lean efforts are being revitalized. The experience of Edwards AFB as a case study has emphasized the need for a strategic organizational structure with the agility to meaningfully continue the institutional Lean knowledge no matter the immediate ebbs and flows of support by executive management. The organizational structure is one example that has successfully been able to continue the Lean journey although they have had an interruption in support and change in management. The paper discusses the model presented in Compression (55 page white paper, 09/2009) by Robert W. Doc Hall for a General Model of a Vigorous Leaning Organization (fig. 10). The paper will cover the similarities and differences to the experience of the Edwards AFB enterprise. The importance of the structure put forth by Doc Brown, which enhances the resilience of enterprise transformational efforts in complex large organizations, will be emphasized. 1 Theodore (Ted) Mayeshiba 3715 McClintock Avenue GER240, Los Angeles CA (213) ; mayeshib@usc.edu 14

19 15 Session 3: Implementation Value Stream

20 Session 3: Implementation Value Stream Lean Manufacturing and Information Technologies: an interpretation of their synergies in search of operational excellence. Antonio Sartal, 1 Research fellow, University of Vigo, Vigo, Spain Xosé H. Vázquez, Tenured professor, University of Vigo, Vigo, Spain María A. Quintás, Tenured professor, University of Vigo, Vigo, Spain Technological change and globalization have provoked an obsessive concern with higher quality, lower costs and shorter lead times. One of the management philosophies that helps manufacturers to achieve these goals is Lean Manufacturing (Womack et al., 1990). Lean focuses on the continuous elimination of waste through a wide set of management tools and practices; some stem from the legacy of Scientific Management and others from Henry Ford's industrial heritage, but it has been probably Toyota the most inspiring source of ideas for the development of Lean thinking, particularly regarding the crucial role of the human factor. To be sure, this emphasis on the role of the workforce is at the root of a certain suspicion on the possible synergies that lean principles may obtain when implemented simultaneously with Information Technologies (IT) (Shingo, 1988; Ohno, 1988). Further, the increasing specialization of consultants, either working on IT or Lean practices, has intensified the different approaches to process improvement. The fact is that current practices on the impermeable perspectives of IT and lean thinking are clearly at odds with the evolution of the economic environment, where uncertaintly and customitization have stimulated the need to process a high volume of information in real time. Lean and IT should be thus conceived as interdependent and complementary strategies in order to enhance competitiveness (Riezebos et al. 2009, Mo, 2009). Inspired by this background, our paper addresses the Lean-IT synergies in continuous improvement projects. Particularly, we carry out this analysis under the qualitative perspective of a case study in a mature industry: a canned-food multinational. Based on the simple 7-steps method of problems resolution (Liker, 2004), we analyze how Lean transformations can happen faster and most successfulyl with IT support. We have considered in our study a mass production process, where clear-cut indicators (OEE) were registered in a bottle neck (sealed machine) through a MES system (Manufacturing Execution System). We describe how and why IT supported the Lean decision-making processes, specifically providing useful real-time information and supporting of process improvements based on standardized work. Thus, the effectiveness of this joint implementation depends on two factors: the offering of information in due time and place through IT, and its correct use through the implementation of Lean tools and principles. From a managerial perspective, our research should stimulate the development of LeanIT improving projects. The analysis of the case study confirms that: (1) Lean practices and IT projects can be synergistic because they both focus on obtaining the maximum efficiency through the use of data; (2) the correct implementation of LeanIT initiatives allows obtaining higher levels of productivity in shorter time periods. On the other hand, our results should also be considered by consultans to address, in the implementation of improvement projects, both positions in an integrated way. Finally, the proposed methodology should be considered by educational policy makers in order to design future curriculum strategies that prepare students appropriately for current market transformation and hence, new management and technology requirements. 1 Antonio Sartal, ( antoniosartal@uvigo.es). Facultade Economicas, University of Vigo, Vigo, Spain. Tel.: / Fax:

21 Session 3: Implementation Value Stream MEASUREMENT IN PLANT ANALYSIS OF PLANT INDICATORS AUTOMATIC DATA CAPTURE NO IDENTIFY PROBLEMS e-pareto CHART PRIORITY ISSUES e-ishikawa DIAGRAM WE KNOW THE CAUSES NO DATA COLLECTION DATA ANALYSIS SOFTWARE ANALYSIS OF INFORMATION WE KNOW THE CAUSES MANUFACTURING EXECUTION SYSTEM Transform DATA into INFORMATION NO YES PROPOSED SOLUTIONS IMPLEMENTATION MONITORING INDICATORS YES TARGET REACHED YES IMPROVEMENT GROUP & IT Figure 1. Integration of IT in "Simple 7-steps Method of Problems Resolution" (adapted from Liker, 2004) References Liker, J.K. (2004). The Toyota Way: 14 Management Principles from the World s Greatest Manufacturer, Ed. McGraw Hill. Mo. J.P.T. (2009). The role of Lean in the application of information technology to manufacturing, Computers in Industry, pp Ohno, T. (1988). Toyota Productivity System: Beyond Large-Scale Production, Productivity Press, Cambridge. Shingo, S. (1988). Non-Stock Production: The Shingo System for Continuous Production, Productivity Press, Cambridge Riezebos, J.; Klingenberg, W.; Hicks, C. (2009): Lean Production and information technology: Connection or contradiction?, Computers in Industry, Womack, J.P.; Jones, D.T.; Roos, D. (1990). The Machine that Changed the World: The Store of Lean Production, Rawson Associates, New York. 17

22 Session 3: Implementation Value Stream Development and Testing of a Proposed Method to Understand an Employee s Perception of Lean Implementation Sushil Shetty, Temple, Texas Paul Componation, Iowa State University, Ames, Iowa and Sampson Gholston, UAHuntsville, Huntsville, Alabama Lean has been a common fixture in industry since its introduction to the western world by Womack, Jones and Roos book Machine that Changed the World and Womack and Jones Lean Thinking. However, many organizations who have implemented Lean have had varied and sometimes limited success. Success in one implementation effort does not always seem to translate well into other implementations. One difficulty in successfully implementing is how to efficiently and quickly assess the Lean transformation process. Several tools have been developed to measure Lean implementation from an organizational viewpoint, but assessing Lean implementation using an employee s perception has not been historically studied thoroughly. This research effort is designed to address this difficulty. The Employee Perception of Lean Implementation tool (EPLIT) was created to work independently as well as in conjunction with existing Lean implementation assessment tools. By studying employee perception in this 26 question survey, organizations can better understand the level of the Lean implementation in a quick and effective manner. EPLIT is based on the original principles of Lean by Womack and Jones and further revised by Lean subject matter experts. In addition to being reviewed by researchers, EPLIT was also validated by Lean practitioners to check its construction and reliability. The goal was to develop a tool which would quickly and accurately measure Lean implementation directly from the employees perspective so managers could monitor the process and adjust their efforts as needed. Of interest was the finding that there are subtle but important differences in the way Lean is typically implemented in organizations and the way that practitioners view Lean. This paper provides a review of the development and testing of EPLIT, as well as identifies next steps for the further development and use of the tool. 18

23 Session 4: Product Development Value Stream A Value Approach To Product and System Development Stanley I. Weiss Consulting Professor Stanford University A Value Approach to Product and System Development concentrates on the development process as one that establishes the value goals of customers and other stakeholders and progressively applies systems engineering and lean practices to deliver that value. The value stream of activities is followed to provide not only a framework for development, but also to afford insight as to where elements of efficiency can be introduced or waste eliminated.. The course taught at Stanford identifies aspects of the lean enterprise model with examples and a few case studies illustrating the complete life cycle, including delivery strategies, management methodologies and the benefits of such concepts in delivering value to customers and stakeholders. It is important to note that not only are the standard tools of system development introduced, but advanced methods such as multi discipline optimization, design structure matrices and lean enablers are provided to lead the student to further study and applications. Course enrolment, though focused in the Aero Astro department, is dually listed with Management Science and Engineering and captures attendees from Civil, Mechanical, Electrical and Business School disciplines and, with its on line component, students from United Technology, Lockheed, Boeing, Northrop,and KLA Tencor, as well as several NASA centers. One outcome is a book based on the course, to be published later this year. That volume and this presentation contain a representative value stream for the life cycle of the development process. 19

24 Session 4: Product Development Value Stream The Lean Transformation Toolkit: Towards a Journey for Lean Product Development Myrna Flores, 1 École Polytechnique Fédérale de Lausanne, Lausanne, Switzerland Karina Flores, École Polytechnique Fédérale de Lausanne, Lausanne, Switzerland Christopher Tucci, École Polytechnique Fédérale de Lausanne, Lausanne, Switzerland Lean practices have been applied by a diverse number of companies in manufacturing during the last decade. Nevertheless, the satisfactory and ongoing trajectory towards an effective application of Lean principles in the New Product Development Process (NPD) is currently under study as it is rather new in industry. Therefore, firms require a way to track their progress in their journey towards a lean product development process. Within the LeanPPD European project, a Self Assessment tool has been developed and is currently implemented to enable firms to understand which is their baseline (current state) and define a vision and plan of where they plan to be within a defined period of time (TO-BE). To obtain the Voice of the Customer and develop a tool that can target industrial specific needs, the five LeanPPD industrial project partners, which represent three different industrial sectors (automotive, aerospace and white goods) were interviewed [Flores, 2010a]. As a result, the development of the new proposed Lean Transformation Toolkit (LeanT2), focused on two web based modules to enable companies to answer the two following questions [Flores, 2010b]: Module 1 Qualitative Assessment: SMART Readiness Maturity: Which is my starting point or (AS-IS) level related to the application of Lean principles for product and process development and where does my company plan to evolve in the near future or (TO BE) level in its journey to become lean? Module 2 Quantitative Assessment: Measurement Framework: Which Key Performance Indicators (KPIs) can my company select from to measure its product development process improvement after implementing lean principles in such transformation process? Based on Kaplan and Norton s measurement Balanced Scorecard concept, four perspectives were considered for the tool in which lean practices could be balanced to measure their company s efforts and success when implementing lean thinking in product development. Thus, the four proposed initiatives are: 1. Time, Cost and Quality Measurement: to assess their practices to enable cost and time reduction and quality improvement thanks to the application of Lean Thinking in product development. 2. New Product Development Process: To be competitive in the market, companies should have a well-defined new product development process that considers sustainability aspects throughout the product life cycle and that maximizes the value delivered to customers by eliminating waste. 3. Tools: In an effective product development process, tools facilitate people to carry out different tasks in the most productive way. This perspective assesses how teams use successfully tools to enable a lean product development process. 1 Dr. Myrna Flores, EPFL, Odyssea 1.04, Station 5 CH-1015 Lausanne Switzerland, myrna.flores@epfl.ch 20

25 Session 4: Product Development Value Stream 4. Skilled People: People are the essence of a company. It cannot compete in product development without capable, energized and aligned teams that execute lean thinking in their daily activities. Therefore, the objective of this paper is twofold, 1) to present the industrial requirements obtained during the project to develop the Lean Transformation Toolkit (LeanT2) and 2) summarize the results and lessons learned of its development and implementation in different companies in Europe. Figure 1. Lean Transformation Toolkit Framework (Flores, 2010) References Flores M. (a), Gathering Industrial Requirements, LeanPPD Project internal report, 2010 Flores M. (b), Lean Readiness Assessment Tool, LeanPPD Project internal report, 2010 Flores M., Klinke S., Tucci C., Terzi T, Al-Ashaab A. and Sopelana A. (2010a). Identifying Lean Thinking Measurement Needs and Trends in Product Development: Evidence from the Life Sciences Sector in Switzerland, in New World Situation: New Directions in Concurrent Engineering, Proceedings of the 17th ISPE International Conference on Concurrent Engineering. Ed. Pokojski J., Fukuda S. and Salwiński J, 2010, Part 5, Amaia A., Flores M., Martinez L., Flores K., Sorli M., The Application of an Assessment Tool for Lean Product Development: An exploratory study in Spanish Companies, ICE Conference 2012, LeanPPD Website 21

26 Session 4: Product Development Value Stream Educating for the Integration of Lean Applications within the Product Development Process Edward Alyanak, Mercury Marine, Fond du Lac, WI Mercury Marine is a world leader in marine propulsion technology. The company offers outboard engines from 2.5 to 350 horsepower, inboard and stern drive products from 130 to 1350 horsepower, as well as drive and control systems. To meet new product requirements, Mercury utilizes a phased new product development (NPD) process where reviews must be passed as products advance through the development process. The process begins with the product definition phase and moves through concept selection, design validation, and process validation prior to production. As projects cycle through Mercury s Product Development and Engineering organization the NPD process defines what tasks needs to be completed. How the tasks are worked is defined by a collection of lean tools that the engineering organization has been educated to employ. In most cases the lean tools are applied early in the NPD process where they can have the most impact (Figure #1). In the product definition phase the lean tools applied are related to Voice of the Customer and Quality function Deployment. During the concept selection and development phase, decision making and risk analysis tools such as Pugh Matrix, Value Engineering, Failure Mode and Effects Analysis, and simulation tools are used. Design validation activities use lean tools that are associated with hardware testing and problem solving including Process Capability, Measurement System Analysis and Design of Experiments. Process validation includes the use of High Throughput Testing and reliability analysis. The education of the engineering organization in lean methods is done under the Design for Six Sigma (DFSS) banner. The curriculum includes the tools listed above but does not include the traditional DMADV (Define-Measure-Analyze-Design-Verify) process. The process taught is the Mercury NPD process. The NPD process is the what in Mercury product development while the DFSS lean tools are the how in product development. Motivating an organization to learn and use new methods is always a challenge. The use of requirements for training often builds resistance in a well-educated engineering organization. A key learning from the approach taken at Mercury Marine is that organizational learning and lean improvement can be achieved by offering reward (certification) and expectations. Mercury Marine offers DFSS Green Belt Certification to engineers that complete the training curriculum and demonstrate that they have mastered each tool. By offering the certification many members of the engineering organization are motivated to become involved. Others are motivated as they work on projects where the use of the lean tools is expected or ongoing and they want to become a more effective team member. Over time the use of lean tools have become commonplace in the organization and have reached a critical mass level where new employees entering the organization, as well as longer term employees, are asking for the training. The success of the lean education program is demonstrated by the increasing use of lean tools in the product development process at Mercury Marine. This approach contributes to Mercury Marine s ability to effectively compete for marine propulsion customers in the marketplace. 22

27 Session 4: Product Development Value Stream Figure 1. Lean Tools and New Product Development 23

28 Session 5: Office Value Stream SMED for the Head: Teaching Lean Concepts to Today s Knowledge Workers Julie Vittengl, Motorola Solutions, Inc., Schaumburg, IL Dan Ireland, GlobalSpec, Inc., East Greenbush, NY According to the Employment Policy Foundation, by 2025 there is expected to be a 35 million person gap between the supply and demand of knowledge workers in the U.S. economy and, although recovering in recent years, traditional manufacturing represents less than 9% of the total employment today (see Fig. 1). 1 As a greater number of today s workforce moves from producing goods to producing knowledge and service sector productivity lags behind manufacturing productivity there is a need to train these knowledge workers in lean concepts. 2 Figure 1. U.S. Employment Graph. Source: U.S. Dept. of Labor ( Lean concepts were developed around traditional manufacturing processes, which produce tangible goods. Even though many parallels can be drawn from lean manufacturing concepts, it can be challenging to translate and apply these concepts to intangible goods, i.e. knowledge. In knowledge creation processes it can be difficult to visualize the work in progress or see the waste generated by excess inventory, excess motion or over production. By relating extra clicks of the mouse when navigating through an online form or waiting for the computer to validate your work to tangible examples like having to walk across the room to retrieve a part or spending extra time searching for tools on a unorganized work bench, knowledge workers can make the connection to lean. In this presentation we will show how two organizations, one a knowledge creation organization and one a traditional technology manufacturer train their knowledge workers on applying lean concepts to their jobs. The concepts taught include continuous flow and batch size, 5S, the 7 wastes, standardized work and kaizen, value stream mapping, and A3 methodology. The methods of training consist of a combination of class room lectures, hands-on exercises, webinars and practical project work chosen from the employees process improvement ideas. 24

29 Session 5: Office Value Stream REFERENCES 1. Donald M. Atwater, PHD and Aisha Jones, Preparing for a Future Labor Shortage, Graziadio Business Review, Matthew May, Lean Thinking for Knowledge Work,

30 Session 5: Office Value Stream Building the Skills of PDCA Thinking and the use of A3 s to Deliver Business Results Leslie Henckler, Sr HRS, Business Process Improvement Manager, Paychex, Inc. Rochester, NY Thomas Harris, HRS Business Process Improvement Manager, Paychex, Inc. Rochester, NY Paychex, Inc. is a recognized leader in the payroll and human resource industry, serving over a half million businesses nationwide. Paychex offers an ever-growing variety of payroll and human resource products and services that help clients do what they do best run their business. Paychex, Inc. has been named in Training magazine's Top 125 list of outstanding international training organizations for the eleventh straight year. The University of Paychex, the company's in-house training and development center, provided more than 956 thousand hours of training for Paychex employees during fiscal 2011, delivering an average of over 79 hours of training per employee. Formed in 1997, the University is located at the company's corporate headquarters, and offers 137 instructor-led courses and more than 700 online learning activities annually. In 2006, the office of Business Process Improvement (BPI) was created in the Human Resource Solutions (HRS) division of Paychex. The purpose of the BPI was to establish a holistic approach to problem identification and resolution by bringing lean thinking and methodologies into and across the organization. Through collaboration with business units, as well as internal leadership development partners, the BPI office focuses on delivering business results through direct process improvement interventions (often kaizen blitz events) and indirect interventions. Reaching beyond HRS, the BPI office partners with individual field operations regions to develop / increase leadership and management understanding and use of lean thinking. Rather than offer lean education or scripted training events, our approach has been to strategically integrate elements of lean thinking into the existing leadership training and development programs at all levels of the organization. Developing strong analytics and problem solving skills in our leaders has been a particular focus to enable their success. Integrating process-focused (systems) thinking and leadership skills, as opposed to teaching lean tools is a unique approach. In 2011, we began a new effort to teach leaders of targeted homogenous work groups Plan, Do, Check, Act (PDCA) thinking and data-based decision making through experiential learning and the A3 management process. Although available to all business units, one particular region has actively embraced the approach and has progressed furthest in developing and integrating this thinking into the day-to-day operation of their business. Guiding their efforts, the manager of this region initiated a top down strategic approach. The first priority for his team of managers was to determine a shared set of annual performance targets for company-defined key business metrics for the entire region. Following that, their focus turned to align metrics for specific branch locations and finally, to specific groups within the branches. Simply put, the region manager, and then his leadership team collectively identified the targets at each level and how they support one another, illustrating how he, and the region are going to succeed as one. 26

31 Session 5: Office Value Stream To accomplish this focus, the regional manager partnered with the BPI office to develop his own skills and to provide coaching for all regional branch managers. Through hands-on experiential training sessions, branch managers learn the essential skills of identifying the 7 wastes, PDCA and how to develop an A3. To prepare for attending these sessions, managers participated in study groups using readings from Pascal Dennis, Getting the Right Things Done. The regional leadership team now uses Red/Yellow/Green stoplight dashboards for all key metrics; A3 s are required for all RED indicators. Regularly scheduled one-on-one monthly calls with managers now operate using standard work for each call, including a segment specifically targeted to A3 reviews and development. All managers and teams have access to shared A3 s and are encouraged to partner with their peers and the BPI team on root cause identification and countermeasure development. Additionally, the BPI sponsors calls and initiates Webex s for peer group sharing of A3 progress and challenges etc. To date, six additional leadership teams across the country are also going down this path. Leaders have received training and are working with their managers to build the skills of PDCA thinking, root cause analysis and the use of A3 s to manage targeted efforts. As the BPI team at Paychex, our overarching goal is to teach others the skills necessary to drive continuous improvement in all that we do to deliver business results. By both teaching and modeling PDCA thinking with leaders across the country, and by continuous support and mentoring of our fledgling teams, we provide the foundation for further integration of lean thinking with leadership development throughout the organization. 27

32 Session 5: Office Value Stream One Mission. One Future. We will be the leading provider of payroll, human resource, and employee benefit services by being an essential partner with America s businesses. Our Values Practice the highest standards of ethics. Provide outstanding client service. Develop trusted relationships with clients. Foster teamwork in a safe, open environment. Drive continuous improvement in our processes. 28

33 Session 5: Office Value Stream Using Visual Strategies to Teach Lean in HR Services Karyn Ross, Payroll Operations Business Process Analyst, Zurich, Schaumburg, IL Founded in 1872, Zurich is one of the world s largest truly global insurance groups with 60,000 employees serving customers in more than 170 countries concentrated in three core business segments: General Insurance, Global Life, and Farmers. The HR Service Center Operations team provides HR Service Center, Payroll, and HR Transactions support for over 30,000 employees throughout the US. In 2011 HR Services for North America began the transformation to a Lean culture. Employees interested in pursuing formal Yellow and Green certifications take online classes, complete Just Do It projects and participate in Kaizens through ZurichLean. In 2012, HR Services leadership developed a strategy to embed Lean thinking and practice into HR Services culture as the way we do our work, not just something extra to do. A targeted effort to teach Lean to all HR Services workers, whether involved in formal certification or not, was undertaken. With many employees engaged in high-volume customer service or transaction processing functions and located in multiple locations and states, the particular challenge became how to present the information in formats easily accessible to all. In response to these unique needs, it was determined that making Lean learning materials highly visual and part of day-to-day operations would allow all employees to be involved regularly in Lean learning. Comm Cell (morning market) boards for the HR Service Center, Payroll, and the HR Transaction Center were developed. Located in public, high-traffic areas, information is displayed about People, Performance and Process Improvement, as well as categories specific to that particular area s needs. Employee-led, the boards are updated with critical information daily. Photos are ed to employees from that area located in other states so that they can see what is happening in other locations. Quick Hit Lean learning trainings on topics such as 7 Wastes also take place at Comm Cell, actively engaging all employees in short, daily learning activities. As well, an overall HR Lean News You Can Use Bulletin Board was created to communicate HR Lean information to all employees. Large and colorful, with information displayed in a quick and easy-to-read format, monthly updates with training topics, certification requirements, success stories and HR Lean Community of Practice (CoP) news allows employees to find information about further opportunities to learn Lean quickly between transactions or customer service calls. Photos and bios of all HR Lean CoP members are posted and available online so that everyone can easily see who to go to for help with their Lean effort. Learning topics displayed on the board are reinforced through training and practice during the Community of Practice meetings. As a result of embedding Lean teaching into daily practice by using quick, easy to understand visual strategies, all employees are actively engaged in learning Lean, each and every day. As Mitch Sparber, Head of HR Service Center Operations North America states: "Since our team interacts with every single employee who works in North America, we devote a significant amount of time to understanding what our customers needs are. Our effort to educate each HR Services employee to be able to participate in improving processes as a part of the work that they do on a regular basis allows us to provide our customers with the best possible service experience and supports our True North mission, to provide all employees with a world-class human resources experience from hire to retire. 29

34 Session 5: Office Value Stream Figure 1. Interactive Make Waves Not Waste Quick Hit Lean Training at Comm Cell Board Figure 2. HR Lean News You Can Use Bulletin Board 30

35 Session 6: Student Value Stream: Learning Operations Houses Built On Sand: How the Lack of Operations Management Knowledge Undermines Lean Implementations John Bicheno, John Darlington & Kate Mackle, University of Buckingham, UK The authors have been working in improvement for 25 years and have taught on a Masters level programme in Lean Operations for the last 10 years. We had often been struck by the weakness in demand and capacity management processes in the companies we worked with: diagnosing and then rectifying this weakness has frequently been an important early stage of those companies successful lean transformations. Similarly, students on the Masters programme often lacked a thorough grounding in the conventional systems in use in their business: they found it hard to appreciate the fundamental difference in principles behind the lean methodologies they were being taught. Too often, it was necessary to give a crash course in Operations to set the scene for teaching Lean Operations. It has become a received wisdom to say lean is not about the tools. Our experience tells us that people misapply lean tools when they lack understanding of the elements of change required to create a lean system: rather than designing a system to create value they apply tools to attempt to take waste out of the current system. Another lean mantra is It s all about leadership. We have seen that the most successful lean leaders are those who understand and direct the changes needed to transform their business into a lean system. Their mastery of the basics of demand and capacity management enables them to take the policy changes necessary for lean transformation: they create the conditions for their organisations to engage in change. Conversely, leaders who lack that understanding condemn themselves to continual scrutiny of their commitment to an abstract notion of lean. Inevitably, this leads to a test of faith which founders on lack of real business results. In this paper, we will chart the history of lean development to identify how these circumstances developed. How did we get from Ohno s description of TPS as profitmaking industrial engineering to today s environment where the basic knowledge of operations management is not recognized as a foundation for improvement and, in the worst cases, is often disparaged as unnecessary? 31

36 Session 6: Student Value Stream: Learning Operations We set out what our analysis tell us about the effectiveness of current lean education programmes: what is working and what needs to be improved? We describe a methodology developed to support organisations through the design of their lean system whilst also teaching the content needed to close their knowledge gap. The results of applying this methodology in diverse environments are discussed, informing a critique of the original model. We conclude with our recommendations for educating and developing leaders: how do we confer upon them the knowledge they need to lead lean transformation and the capability to teach that to others? 32

37 Session 6: Student Value Stream: Learning Operations The Lean Learning Factory (Die Lehrfabrik). Experiential learning in a real-life environment for building sustainable adult capabilities Prof. Dr. Constantin May, 1 Ansbach University of Applied Sciences, Ansbach, Germany Concerning to several studies and own experience many lean and/or enterprise-transformations fail. One key success factor for those undertakings is adult capability building. Traditional learning using lectures and PowerPoint presentations does not lead to lasting learning success. The learners do not gain the capabilities to play a pro-active role in the transformation process. Following the saying of Confucius I hear and I forget, I see and I remember, I do and I understand a new didactical approach for building sustainable lean adult capabilities was developed to overcome the described shortfalls. This approach is implemented in the Lean Learning Factory. It is the setting for continuing education courses and part-time studies (bachelor degree) in the field of operational excellence. The curriculum has four main objectives: - Understand the tools and philosophy of a lean system - Learn how to transform a brownfield factory into a lean factory - Learn how to integrate people into the transformation process - Learn about skills and behaviors required for a holistic lean transformation The Learning Factory uses real machinery, real processes and real products, which enables an immediate identification with the learning environment. Based on current results of brain research the didactical concept is based on four learning phases. Phase 1 consists of short theory units. In phase 2 the participants/students work in teams in the factory. By experiencing all problems of a real-life environment, they are sensitized for necessary improvements. Using structured experimentation (PDCA) and KATA-style coaching the participants/students are implementing individual improvements based on the knowledge and skills taught in the phase 1. Each participant/student takes on different roles and experiences the transformation of the learning factory from different angles. In phase 3 the participants/students have to transfer the acquired knowledge into their work environment in their companies. Phase 4 closes the learning circle with intensive exchange of experiences and expert feedback before phase 1 starts again. After achieving very promising results, the lean learning factory has broadened its activities. It is no more limited to improve fabrication processes, but rather addresses organizations as a whole. Up to now there are curricula for transformation of administrative processes and development processes. In addition energy productivity thinking was integrated into the Learning Factory. Participants/Students learn energy saving principles in a real-live production environment using the same proven didactical approach. The key objective of the presentation will be sharing - the setup of the learning environment, - the gained experiences and - the result of an empirical study on the learning success. 1 Prof. Dr. Constantin May, Hochschule Ansbach, Residenzstrasse 8, Ansbach, Germany, Phone: , constantin.may@hs-ansbach.de or constantin.may@cetpm.de 33

38 Session 6: Student Value Stream: Learning Operations Figure 1. Lehrfabrik before Figure 2: Lehrfabrik after Learning Circle 1 Figure 3. Lehrfabrik after Learning Circle 2 Figure 4: Lehrfabrik after Learning Circle 3 See a video on the transformation of the Lehrfabrik : 34

39 Session 6: Student Value Stream: Learning Operations Kart Factory : a powerful tool for experiential learning of lean manufacturing Tommaso Rossi, 1 Cattaneo University, Castellanza, Italy, Carlo Noè, Cattaneo University, Castellanza, Italy, Fabio Salomone JMAC Consultants Europe, Milano, Italy and Rossella Pozzi, Cattaneo University, Castellanza, Italy In recent years, developing experiential learning has fulfilled the requirement of a deep understanding of lean philosophies at any level. Instructional games are capable of demonstrating the advantages and disadvantages of some of the key principles of lean manufacturing, through a steep learning curve. As it often does not represent reality, the gamebased experiential learning provides a limited vision. Moreover, such a lack of realism can lead to overlooking daily difficulties, which play a central role in manufacturing systems. Thus, the need of a game that imitates an actual manufacturing process, through the application of Japanese "3 Gen" principle (Genba, Genbutsu, Genjitsu, which are translated as "actual places", "actual things" and "actual situations", respectively), taking on some aspects of reality for participants, emerges. To meet such a requirement, an innovative direct in-field, simulated but realistic learning environment, named Kart Factory, has been developed. Such a game simulates actual production shifts, while keeping all the elements peculiar to a real production set (i.e. complexity, effort, safety). The production system is a real pedal car assembly department, the products have relevant size and weight (i.e. up to 35kg approx.), and the provided tools are real production equipment (e.g. keys, screwdrivers, trans-pallets). According to the lean practice, an Andon system shows the real-time production progress, and a large number of variables (i.e. defects, processing cost) are reported to perform an analytic analysis of the simulated production shift. Due to the need to maximize the impact on people, a labor intensive process characterizes the production department. Independent of the characteristics of the factory processes, what will be learned has a universal value. The whole training process is based on three educational principles: Experience Value Principle, Error Value Principle, and Team Value Principle. As the learn by trying and failing are favored, the theory follows the practice. The Kart Factory training module allows the development of professional and soft skills. Both the development and sharing of an effective, efficient and based on the standardization common approach to improvement, and the understanding of the critical aspects of the course of its implementation are pursued, while crating the willingness to do instead of just designing or planning. The gathered data prove the Kart Factory effectiveness in reaching such improvement goals. The evolution of practitioners behavior from the first simulated production shift to the last one results to be similar among the simulations that have been conducted. The evidences will be briefly presented and explained in the present research, with the aim of develop this issue in a further research. 1 Tommaso Rossi, Cattaneo University, Italy Corso Matteotti 22, 21054, Castellanza (VA), Italy , trossi@liuc.it 35

40 Session 7: Patient Value Stream Building Educational Programs that Support Healthcare Delivery Innovation Sharon A. Johnson, 1 Worcester Polytechnic Institute, Worcester, MA The healthcare delivery system in the United States is stressed by the need to increase quality, improve access, and serve an aging population, while containing or reducing costs. At the same time, new care models, technologies, and payment structures offer opportunities to innovate and transform the delivery system to meet these needs. Realizing such opportunities requires taking a multidisciplinary, systems perspective combining process innovation with data from an increasingly sophisticated information technology (IT) infrastructure, and integrating new technologies such as mobile applications into workflows. The Healthcare Delivery Institute (HDI) was formed at Worcester Polytechnic Institute (WPI) in 2011, to provide solutions that address healthcare delivery challenges. HDI s vision is a system that extends from the hospital and beyond to clinics, homes, and mobile healthcare delivery, where technology and process innovation can empower patients, reduce costs, and increase productivity. One key to HDI s approach is to apply a systems, technology and process lens to problem-solving. Lean thinking significantly influences the process perspective, focused on creating value for patients and smooth flow through the system. A critical component of HDI s mission is creating educational opportunities to support healthcare innovation. In the healthcare context, lean process design needs to be informed by an understanding of the opportunities created by IT and the healthcare environment. Opportunities also need to be tailored to the audience, and to support multidisciplinary perspectives. Several audiences can be broadly defined. First, healthcare providers with deep clinical knowledge who understand the healthcare system, but have little exposure to process thinking or IT. Second, engineers, managers and IT professionals with expertise that can inform healthcare innovation, but who have a limited understanding of the healthcare system. Finally, in both groups, the audience may be experienced professionals or those who are just beginning their career. At WPI, educational opportunities have been developed for each of these audiences, with additional programming planned. In this talk, we will present a current state map describing existing programs, as well as a future state that addresses the need for more flexible, multidisciplinary opportunities. The current state includes undergraduate programs in traditional areas, such as industrial engineering, where lean thinking is taught extensively. Students then can complete senior design projects working with partnering healthcare organizations on specific improvements. Students pursuing pre-med or biomedical programs can pursue projects in the junior year to develop a process perspective. At the graduate level, a master s degree focused on health systems engineering is available to students seeking to develop depth in applying engineering techniques to healthcare improvement. Finally, certificate programs have been created for professionals, in areas such as healthcare IT. In developing the future state, we focus particularly on the challenge of giving students a meaningful, multidisciplinary perspective. 1 Corresponding author. School of Business, Worcester Polytechnic Institute, 100 Institute Road, Worcester, MA, Phone: (508) , sharon@wpi.edu. 36

41 Session 7: Patient Value Stream Video Vignettes for Lean Healthcare Training and Education Earll Murman, PhD, 1 MIT, Port Townsend, WA John Nowak, RN, Jefferson Healthcare, Port Townsend, WA Deanna R. Willis, MD, Indiana University School of Medicine, Indianapolis, IN The most effective way to teach Lean Thinking is as near to the Gemba as possible, with opportunities to apply lean concepts to actual work improvement projects. However, this is not always possible, nor may not always be appropriate. Classroom instruction for both degree candidates as well as professionals who are new to lean thinking to is quite appropriate and effective for establishing awareness. In these venues, being able to visit the actual place where work is being done, talk to the actual people, and observe the actual work is an effective component of basic instruction. However, actual tours can be complicated by travel time and expense, interruption of actual work, and observation by large groups of learners. Video tours are a natural approach to overcome the obstacles of actual tours. The lead author produced such a video tour of New Balance Shoe in Lawrence, MA that has been posted on MIT Open Courseware 2 and visited by 7,180 viewers in slightly less than 3 years. Experience from course use as well as input from potential users indicate that an effective strategy is to develop 5 minute video segments on particular topics, which can then be integrated into classroom instruction on these topics. With this in mind, the three authors are collaborating on developing video segments for the following Lean Healthcare topics. 5S Value and waste Flow Standardization Daily management system A3 thinking and tool Rapid process improvement workshops Role of leadership in lean transformation The videos will be professionally shot at Jefferson Healthcare in Port Townsend WA during the summer of 2012 and professionally edited. Each video will be an interview of one or more JHC healthcare providers or staff, with explanations, exhibits and testimonials of the topic. A balance will be struck between successes and challenges, benefits and barriers, and tools and thinking. Each video will reinforce essential aspects of Lean Thinking such as: Lean is a journey; Lean is a way of thinking not a set of tools; respect for people is the heart of Lean; Lean Thinking is patient centered; improvement is a continuous process; and standardization provides the basis for improvement and innovation. Three of the videos will be shown at the Lean Educator Conference, each follow by five minutes of audience brainstorming on opportunities for integrating the videos into their curriculum. If all the videos are available by the conference, audience choice will determine which are shown. DVDs will be available for the audience to take the videos home. Eventually the videos will be posted online for free use by anyone. 1 Corresponding author: Earll Murman, 325 Lincoln St, Port Townsend, WA Phone: , murman@mit.edu

42 Session 7: Patient Value Stream The Lean Education Retention Equation, Best practices learned at VCH By Kelly Frankson, Vancouver Coastal Health, Canada Vancouver Coastal Health (VCH) is a world-class innovator in medical care, research and teaching delivering services to more than one million BC residents with approximately 22,000 staff, 2,500 physicians and 5,000 volunteers. In 2010 the decision was made to embed Lean thinking across all levels of the organization. Several challenges were quickly identified including how to deliver Lean education in the most effective way possible to make this happen. The goal was not just to inform, but to change behaviour. The current state included the sharing of a lot of information, but the amount being retained was questioned. Many projects started during courses were never completed and further application of tools was not evident. As a result, a series of PDSA cycles began. Through trial and error, root cause problem solving and listening to the voice of the customer, we developed a method that is proving to be very effective at VCH and could be applied elsewhere. The formula for success consists of the following: (1) dedicated education days providing a framework to hang lean principles + (2) standard work + (3) group activity/chance to experience + (4) individual application + (5) follow-up = Retention of Lean basics With the new format, we have improved from a 13% to 65% implementation rate with continued reports of past participants using the tools to make lasting impacts long after course completion. When asked what worked well, common responses include: The variety of approaches and instruction methods used. Activities, videos, time to apply tools to our real life situations. Games provided the opportunity to experience the impact the tools can have. Examples showing successful application of tools in different settings Balance of group and individual application- the chance to practice and receive coaching. Quotes from past participants include: The tools are simple, but the discussions they facilitate are making a difference in how we do our work. We are finally moving in the same direction. Community Health Nurse Thinking of value from the eyes of the patient has changed the way I approach my work. PCC I wanted to do something about this for a long time; I just didn t know where to start. Now I feel like I can actually make a difference and am excited to come to work. Cardiac Nurse I've had excellent feedback from the members of my team who have been attending the VSM/A3 classes. There is a definite eagerness on our team for more training. Program Leader The report breaks down each part of the Lean Education Retention Equation providing best practices learned, engagement activities used and the evolution the structure our lean basics course has evolved to take. 38

43 Session 8: Financial Value Stream Energizing Management Accounting with Lean Thinking Rosemary Fullerton, PhD, CPA Utah State University Logan, UT To many people, management accounting is synonymous with boring. There may be some validity to this, because as organizations have progressed with innovative operations and impressive improvements, management accounting has remained rather stale. We accounting professors who are committed to the lean philosophy believe that management accounting is ready for significant changes and should be included in the lean journey. I have had an opportunity to teach graduate students management accounting in a different fashion applying lean thinking and lean tools to management accounting systems. This is challenging on many different levels, primarily because there are limited teaching resources and academic support for what is coined lean accounting. In this session, I will discuss and demonstrate assorted group activities that can be modified for use in any university classroom setting. I have used these in my class to introduce graduate accounting students to various applications of lean principles as they pertain to management accounting and other support areas. They include: (1) A Kaizen group project related to leaning accounting or support processes. At the beginning of the semester, possible improvement projects are identified at different university departments, as well as external companies. Student groups are then assigned to work on one of the improvement projects with their clients to come up with a solution using such lean tools the 5 why s, A 3 s, and value stream mapping. (2) A collaborative effort with the finance department of a world-class manufacturing firm, Autoliv, Inc. Autoliv s controller challenged student teams to use lean thinking to improve one of their identified finance department problems. Each student team s solution was evaluated by the Autoliv finance team. The winning student team then helped Autoliv implement the process improvement. (3) A student debate based on selected readings that compares traditional accounting to lean accounting to the obsolescence of management accounting. Students are pre-assigned to their positions, and after a spirited debate, a judge determines the best group arguments to support their stand. (4) A Lego lean simulation that demonstrates process improvements through the application of lean principles. The results of the simulation are compared using traditional management accounting and lean accounting P&L and Box Score information. This helps students better understand the relevance and transparency of lean accounting. While these activities have been directed towards accounting students, they can be adapted for various disciplines. My concern is that most accounting students have minimal exposure even to lean principles. As a management accounting professor, I want to energize management accounting by making it more relevant, interesting, and challenging to students through lean thinking and lean accounting concepts. 39

44 Session 8: Financial Value Stream The Essentials of Lean Accounting for Lean Environments and Your Accounting Classroom Carolyn Conn, 1 St. Edward s University, Austin, Texas The primary purpose of accounting is to provide information that is useful for decisionmaking. The information must be relevant, transparent, timely, and comprehensible. Yet, traditional cost accounting does not provide such information particularly for managers operating in a lean environment. Accounting faculty must educate their students about lean accounting in order to properly support (and audit) lean environments. This presentation introduces the basic concepts of Lean Accounting and how essential this system is to measure the success of lean operations. Management/cost accountants must participate as strategic partners in their firm s operations and Lean their accounting systems. They must provide reports that reflect controllable costs for lean managers and they must implement lean processes in their own accounting area. Major topics to be covered include: (1) why standard costing and variance analysis distort the real results of lean operations, waste valuable time and resources, and are unnecessary; (2) how to empower accounting/finance employees with lean tools and include them as strategic partners in leaning operations; (3) how to revitalize financial information with performance measures that are aligned with continuous improvement initiatives and report the real story of lean successes; and (4) how to clarify decision-making with value-stream costing and simplified, plain English financial statements. Personal classroom experiences, assignments, and student reactions to the topic of lean accounting will be discussed, as well as suggested sources (books, readings, web sites) which can be helpful to learn about lean accounting and its application. It is imperative for educators to learn and share with their students why and how lean accounting must be used to support lean environments. 1 Contact for Carolyn Conn: 3001 S. Congress, Austin, Texas (512) and caroltc@stedwards.edu 40

45 Session 8: Financial Value Stream The Application of Lean Accounting to a Manufacturing Simulation: A Teaching Note Gerald K. DeBusk, Ph.D., CPA, CMA 1 University of Tennessee, Chattanooga, TN Clay L. Moerland Jr., University of Tennessee, Chattanooga, TN Lawrence P. Grasso, D.B.A., Central Connecticut State University, New Britain, CT Lean Accounting evolved in order to promote goals consistent with the Lean philosophy and has been accepted by companies for its ability to create accurate, useful, real-time financial data, useable by both managers and line employees. Correspondingly, it is more frequently included as a topic in university management accounting courses. We use a modified version of Peter J. Billington s airplane manufacturing simulation to introduce students to Lean Accounting. i We develop Lean Accounting Profit & Loss statements and compare Lean Accounting profit with profit calculated using traditional absorption costing. We also analyze the behaviors each method encourages. Our simulation has been performed in MBA managerial accounting courses but can be used in a variety of settings. After participating in or witnessing the simulation, the student should: Understand how Theory of Constraints affects flow through a manufacturing process. Understand how Lean Manufacturing leads to improved flow and Work-in-Process reductions. Understand how absorption costing and traditional performance measures reward overproduction. Understand how Lean Accounting promotes goals consistent with the Lean philosophy. Understand how the plain-english financial statements better support decision making and an understanding of cash flows. Students make paper airplanes using two methodologies, mass production and Lean Manufacturing. Theory of Constraints explains why both methods produce 20 airplanes in about the same amount of time. Little s Law explains how a single airplane is produced much quicker using Lean and a kanban system. Profit and Loss statements are prepared for both production runs. Under Generally Accepted Accounting Principles (GAAP), the mass production run appears more profitable. The student, after the simulation, will understand that this is due to the allocation of fixed costs to the extra production. These costs are deferred in inventory and not recognized on the Profit and Loss statement. The additional resources expended (e.g. material costs) are also deferred. Students learn several of the costs deferred by GAAP are recognized sooner with Lean Accounting. This trait of Lean Accounting helps focus the organization on not expending resources until necessary and is consistent with Lean s philosophy of building to customer demand. Students learn that Lean Accounting is also much simpler than traditional methods and provides information in a plain-english format that is more useful for decision making. 1 Corresponding Author. Contact information: 615 McCallie Avenue (Dept. 6206), Chattanooga, TN , Gerald DeBusk@utc.edu,

46 Session 8: Financial Value Stream Figure 1. WIP in front of the constraint using Lean/Kanban. Table 1. Comparison of approximate results. Mass Production Lean Manufacturing Cycle Time Comparison Elapsed time for 20 airplanes Same Same Elapsed time for plane #20 Slower Faster Ending WIP Inventory (in units) Comparison Completed through Work Center 1 None/Few 1 Completed through Work Center 2 Several 1 Completed through Work Center 3 (Constraint) None/Few 1 Total WIP Several 3 Profit Comparison Absorption Costing (GAAP) Higher Lower Lean Accounting (Value Stream Costing) Lower Higher References i Billington, P. J. (2004). A Classroom Exercise to Illustrate Manufacturing Pull Concepts. Decision Sciences, 2(1),

47 Session 9: Student Value Stream: K-12 and Beyond Developing A Lean Workforce From Square One Introducing PI and Kaizen In Kindergarten Betty Ziskovsky CEO Lean Education Enterprises, Inc. Improving processes as an activity or skill is not age dependent. Human beings of all ages engage in processes, whether at work or play. Lean theory advocates the unwavering search for ways to make things better. That philosophy also is not age specific. If the purpose of our K-16+ educational systems is to prepare young people to enter the work force ready to successfully contribute, why would we wait until the post secondary level to introduce process improvement skill sets? That approach is, after all, a waste. Processes make up human endeavors. Pre-schoolers engage in processes. They are already gifted with an innate sense of how to make what they do better, easier, and more effective. And they can and do engage in improvement planning and implementation. Students experience more processes as they progress through the school system, so why shouldn t their knowledge and skill at improving processes expand simultaneously? This session will present examples of young students capability, interest, and effectiveness in learning and engaging in process improvement training and implementation using kaizen beginning in Kindergarten. It will also identify the single greatest impediment to the development of these skills and the unintended consequences of that roadblock. 43

48 Session 9: Student Value Stream: K-12 and Beyond Personal Kanban: Lean Basics for Knowledge Workers Jim Benson, 1 Modus Cooperandi, Seattle, WA Tonianne DeMaria Barry, Modus Cooperandi, Bethesda, MD Background: Oftentimes knowledge workers have difficulty conceiving, planning, describing, and executing their work. Issues here confront educators both in the completion of their own work and in the assigning of work to their students. Lean teaches us that variation, systems, knowledge (learning), and psychology impact us all. Can educators create systems that visualize work and set students on a path towards success? The Personal Kanban system was initially devised for the Lean self-management of knowledge workers in the office. Immediately educators of all types began to adopt the tool, and from preschool to high school to college and beyond they ve been using Personal Kanban to build curricula, activities, and student oversight systems. Approach: Educators create metacognitive systems that have visual controls and limit work-inprogress to facilitate focus and shared learning. These visual controls are highly varied specialized to the environment and context in which they are placed. Students and instructors interact with the visual control, which describes the work being done, the people doing the work, the state of completion, where collaboration is happening, what people feel about their current work, what has been completed, and how the individuals and the group as a whole are doing. Narrative: Since publishing Personal Kanban: Mapping Work, Navigating Life, we ve heard from scientists, educators, and parents around the world who ve adapted the tool to a variety of lean educational settings. They include: Preschoolers learning the alphabet in Pennsylvania; High school students in the Midwest and West Virginia applying it to both individual and group projects; Children in South Africa using the tool to manage study time; Homeschool families managing their curricula; Social scientists in Viet Nam collaboratively writing a document for the United Nations; and Climatologists and economists with the World Bank creating a new system for addressing global warming. In each case, Personal Kanban allowed the groups or individuals to quickly focus on the learning objectives and create higher quality products. Since most of the education process is cerebral, and therefore not seen, the communication of intent, progress, and completion are difficult. Personal Kanban uses lean principles and practices to provide a single, shared vision of the work and what it takes to complete it. 1 Jim Benson, Modus Cooperandi, 1900 W Nickerson Street, Suite , Seattle, WA

49 Session 9: Student Value Stream: K-12 and Beyond Continuous Improvement in the Classroom Rhonda M. Rabbitt, Viterbo University, La Crosse, WI Susan R. Hughes, Viterbo University, La Crosse, WI Currently, uncertainty and unpredictability have become part of the norm for teachers. How can teachers, not only survive, but strive for improvement within this ambiguity? Michael Gelb (2000) suggested the need for confusion endurance, to function effectively within the context of uncertainty and unpredictability. In order to endure and improve, educators should engage in action research. During action research, teachers become part of the learning process while students become part of the research process. This is a lean and dynamic process. Action research data results can provide evidence to meet increasing accountability standards while also providing educator renewal for the teaching and learning process. One of the most important aims of a 21 st century teacher will be to awaken in students a desire for lifelong learning. One way to achieve this objective is by modeling a commitment to learning and continuous professional growth throughout the life cycle. Teachers engaged in action research scrutinize their own pedagogical work and from those results can plan their own professional development. Action research allows educators to create new options or new approaches to old problems by working with and through others to effect the change. During this presentation, participants will learn how action research is tool for continuous improvement. According to Mertler (2012), the teacher willing to examine his or her teaching can result in increased student achievement. Participants will learn that the practice of action research can help teachers become leaders by (a) seeing possibility in all situations, (b) reframing problems as opportunities for improvement, (c) questioning underlying assumptions, (d) engaging others to explore and excel by engaging in action research, and (f) growing a culture of gratitude and trust where teachers collaborate for the good of the students. Teacher researchers develop the leadership skills of innovation, relationship-building, agility to change course when situations warrant, experimentation, and utilizing their growth and learning to exert influence in their environment and beyond. Continuous improvement for the classroom teacher can extend far and beyond the classroom walls. References Gelb, M. (2000). How to think like Leonardo da Vinci: Seven steps to genius every day. Dell Publishing. Mertler, C.A. (2012) Action research: Improving schools and empowering educators. Thousand Oaks, CA: Sage Publications. 45

50 Alternate Presentations Transforming a large global enterprise using Lean Sigma, Change Management, and Project Management Sameer Anand, 1 Continuous Improvement Consultant, Accelerated Delivery Program, Global Talent, Leadership & Organization Development at GlaxoSmithKline, USA. This paper describes the author s learnings on applying an integrated Lean Sigma, Change Management, and Project Management approach to sales districts in a large pharmaceutical corporation. The business environment faced flat sales, and the unit faced some skepticism of six sigma change efforts due to mixed experience with past initiatives. Additionally, the feeling was that continuous improvement would not work beyond the factory, particularly in an innovative or non-standard service such as sales. The hypothesis was that focusing on frontline problem solving and continuous improvement would continually increase sales by 1) engaging sales reps to focus on the behaviors that are linked to sales-growth 2) making processes efficient with respect to the customer 3) providing leaders the management tools that allow measurable focus on these behaviors and 4) training sales reps and managers on lean behavior. The kaizen team used a scaled approach, starting off with 2 North-east US districts, then 4 Western US districts, and finally scaling up to dozens of districts within a sales Region. This approach empowered reps to diagnose problems and identify, develop, implement, and sustain solutions relevant to their geographic areas and customer needs. The team used a combination of well-respected change agents from the business unit, as well as skilled facilitators to provide action coaching. Lean principles including gemba, standard work, visual framework, leader standard work, as well as change management principles such as advocacy vs inquiry and a selection of the change approach methodology, were used. Notable benefits included: Incremental sustained annual sales growth, which was statistically demonstrated using Shewhart control charts; Training & Coaching of a few hundred sales reps, dozens of TSM s and their RVP s in Continuous Improvement and transformational change; Notable mindset and behavioral changes in empowerment, discipline, and scale of improvements targeted; Adoption of sales management tools to aid in embedding a performance based culture; and Motivation & empowerment as demonstrated using chi-square analyses of qualitative surveys; as well as statistically significant increase in sales team s identified lead measures as judged by t-tests. This also provided impetus to additional engagements and the author has since been involved with additional business unit transformations, including a Business Project Management Office, R&D late-stage clinical trials and regulatory submission, Global Human Resources strategy execution, and emerging markets group. The results demonstrate that an 1) integrated Lean Sigma, Change Management, and Project Management approach, with 2) a mix of change agents and skilled facilitators, using 3) empowerment and action coaching, can provide sustained benefits beyond manufacturing departments, while training and motivating employees. 1 Sameer Anand, 6102 Glen Oaks Ct, Springfield, VA SAnand100@gmail.com, (703) The author was member of a cross-functional team, with primary responsibility for six sigma analytics, describing the sales value stream map, and understanding learnings from past experiments with lean sigma change initiatives in the business unit. 46 1

51 Alternate Presentations Figure 1. Sustained increase in a cash-based lag measure (metric anonymized.) Figure 2. Kaizen Process within each district References Mann, D. (2010). Creating a Lean Culture: Tools to Sustain Lean Conversions, Second Edition. Productivity Press. 47 2