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Lean – Let’s Get It Right!-How to Build a Culture of Continuous Improvement PDF

283 Pages·2020·5.528 MB·\283
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Endorsements “Candid, comprehensive and pragmatic, Dave Rizzardo’s book, Lean – Let’s Get It Right! is a must-have reference for any Lean practitioner, novice, and expert alike. Dave cleverly transforms his wealth of Lean knowledge, his passion for lifelong learning, and years of ‘boots-on-the-ground’ expertise into a realistic and practical guide to effective continuous improvement and cultural transformation. His unique and upbeat approach to using ‘lessons learned’ to help achieve success will surely benefit any organization or individual in any aspect of their Lean journey.” – Rebecca R. Jackson, LBC, Maryland State Government  “Finally, there is a book on Lean that balances theory, application, and culture. Dave Rizzardo has laid out the keys to successful Lean implementation and sustainability by simplifying the elements of Lean for every reader, ranging from those just starting their learning journey to experienced Lean leaders. Dave’s charismatic approach to presenting his topics are easy to follow and should be re-read from time to time to ensure you are remaining focused on the big picture view that Lean must be adopted as part of the culture and not to be seen as a project with a beginning and end. This book is a must-read for any individual and/or team desiring a continuous improvement future to remain competitive in the ever changing world where we all need to thrive.” – Doug Cooper, Director of Supply Chain, Tilley Company “David Rizzardo knows what he is talking about. This book documents David’s considerable knowledge and experiences in simple terms that will keep your organization from making the same mistakes so many other companies have made.” – Todd K. Davis, President, New Tack Consultants “Highly recommend this in-depth and informative book explaining the requirements for implementing a strong and sustained Lean initiative. Dave not only covers some Lean tools and how to implement them, but also goes beyond to explain the absolute commitment required from top leadership, the defining Lean principles that guide Lean thinking, and the essential attitudes and mindsets that will nurture a culture of continuous improvement. Although tools and techniques are important, the most vital contribution to a sustained culture is, and must always be, the people aspect. Dave covers this in a clear, concise fashion. A must-read.” – Sherry Jordan, World Class Project Engineer, Saft America “This book focuses on the key to enduring Lean success … people! You can use all of the Lean tools in the world to solve company problems, but improvement won’t be sustainable and ongoing without truly engaging the workforce to build the right culture. This book dives deep into topics such as how Lean modifies roles and responsibilities, and covers key issues related to developing a Lean culture which is based on engaging all employees, not only a few Lean experts or managers. Regardless of your position in your company, and whether you are a Lean novice beginning your Lean journey or a Lean veteran of many years, read this book!” – Jesse Hood, Director of Quality and Continuous Improvement, Hub Labels, Inc. “If you’ve ever met Dave, you know that he is passionate about Lean. He loves to teach and interact, and freely share what he has learned to help others improve and succeed. The book is a great extension of his passion that will now reach a larger audience. You should read this book!” – Steve Jozwiak, COO, D. Wheatley Enterprises and Special Projects Operations “In true Lean fashion, Dave eliminates waste in the definition, explanation, and implementation of a Lean culture in your business. Dave takes his decades of experience and boils it down to the assignable causes of implementation. A must-read for anyone implementing Lean.” – Joseph M. Bero, P.E., LSSMBB Lean – Let’s Get It Right! iii Lean – Let’s Get It Right! How to Build a Culture of Continuous Improvement By David Rizzardo First edition published in 2020 by Routledge/Productivity Press 52 Vanderbilt Avenue, 11th Floor New York, NY 10017 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN, UK © 2020 by David Rizzardo Routledge/Productivity Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed on acid-free paper International Standard Book Number-13: 978-0-367-42991-1 (Hardback) International Standard Book Number-13: 978-0-367-33507-6 (Paperback) International Standard Book Number-13: 978-1-003-00055-6 (eBook) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copyright.com (www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978–750–8400. CCC is a not-for­ profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging-in-Publication Data Names: Rizzardo, David, author. Title: Lean–let’s get it right! : how to build a culture of continuous improvement / David Rizzardo. Description: New York, NY : Routledge, 2020. | Includes bibliographical references and index. Identifiers: LCCN 2019044458 (print) | LCCN 2019044459 (ebook) | ISBN 9780367335076 (paperback) | ISBN 9780367429911 (hardback) | ISBN 9781003000556 (ebook) Subjects: LCSH: Lean manufacturing. | Continuous improvement process. | Organizational change. | Organizational effectiveness. | Industrial management. Classification: LCC TS155 .R569 2020 (print) | LCC TS155 (ebook) | DDC 658–dc23 LC record available at https://lccn.loc.gov/2019044458 LC ebook record available at https://lccn.loc.gov/2019044459 Visit the Taylor & Francis Web site at www.taylorandfrancis.com Contents List of Action Items .......................................................................... xv List of Figures ................................................................................. xvii Acknowledgments ...........................................................................xix About the Author .............................................................................xxi Introduction .......................................................................................1 1 What is Lean? ..............................................................................5 Eliminating Waste .......................................................................................6 Lean Tools ...................................................................................................6 Culture Change ...........................................................................................7 Continuous Improvement ...........................................................................7 Institutional Obsession with Improvement ...............................................8 Adding Customer Value ..............................................................................8 Transformation ............................................................................................9 2 Learning from the Past ..............................................................11 Where We Have NOT Gone Wrong ........................................................11 Lean Failure Mechanisms .........................................................................11 Failure Mechanism #1 – Wrong or Incomplete Definition of Lean ...............................................................................................12 A Short Story of Misguided Thinking .......................................13 The Financial Impact .................................................................14 Failure Mechanism #2 – Leaders Aren’t Leading .............................15 Leaders and the Lean Team ......................................................16 Leaders Must Lead! ....................................................................16 Failure Mechanism #3 – Front-Line Leadership is Unprepared ......17 The TWI Lesson.........................................................................17 vii viii ◾ Contents “Supervisor” – What’s in a Name?.............................................17 Leader Alignment – Front Line to CEO ....................................18 Failure Mechanism #4 – Everyone’s “Job” Doesn’t Change ............19 Improvement is Part of the Job ................................................19 Everyone – No Opting Out .......................................................19 Failure Mechanism #5 – Lean “Training” Isn’t Effective ..................20 Changing Behaviors ..................................................................21 Developing the “Want To” ........................................................21 Teaching for Improvement .......................................................21 Holistic Learning Approach ......................................................22 Failure Mechanism #6 – Demotivation is Tolerated ........................22 Motivation versus Demotivation ...............................................23 Demotivators Trump All! ...........................................................23 Hard on the “Soft” Issues ..........................................................24 Chapter Summary .....................................................................................25 3 The Lean Culture Foundation: The Lean Principles ..................27 Abide by the Principles ............................................................................27 #1 Add Value for the Customer ................................................................28 #2 Eliminate Waste ....................................................................................30 People Principles ......................................................................................31 People Principle #1 – Everyone .......................................................32 Can We Measure Engagement? .................................................33 People Principle #2 – Respect for People ........................................34 A Simple Act of Employee Disrespect ......................................35 People Principle #3 – Teamwork .....................................................36 How Do We Make It Happen? ..................................................37 Process Principles .....................................................................................37 Process Principle #1 – Focus on the Process ..................................37 The Non-Lean Approach – “Whatever It Takes” Method ........38 Hoop Jumper Extraordinaire ....................................................38 “Well, It Depends” Processes – How to Standardize ...............40 Our Objective – Robust Standard Processes ............................41 Paradox #1 – The Improvement/Standardize Paradox ...................42 The “Process” of Creating Standard Processes .........................43 Paradox #2 – The Creativity Paradox ...............................................44 Hidden Benefit of Standardization ...........................................45 Lesson from Another Place .......................................................45 Process Principle #2 – Optimize the Value Stream .........................47 Contents ◾ ix The Ninth Waste – False Improvement Waste .........................47 Tearing Down the Silos .............................................................48 Process Principle #3 – Continuous One-Piece Flow .......................49 The Batching Problem ..............................................................49 Equipment and Tooling to Facilitate One-Piece Flow ............51 The “One-Piece” Ideal ...............................................................51 Improvement Principles ...........................................................................53 Improvement Principle #1 – Scientific Thinking (PDCA) ...............53 The WHY of PDCA ...................................................................55 Improvement Principle #2 – Continuous Improvement..................56 Manufacturing Needs to be More Like R&D! ...........................56 Experimentation and People ....................................................58 Lean Principles Summary .........................................................................59 4 Key Support Systems, Tools, and Practices...............................61 Key Support Systems and a Focus on KPIs .............................................61 Key Performance Indicators (KPIs) ........................................................62 KPI System Purpose ..........................................................................62 Effective KPI Components ................................................................63 The Right KPI ............................................................................64 KPIs versus Metrics....................................................................65 Metric Accuracy .........................................................................68 Metric Usage ..............................................................................71 Comparing Apples with Oranges .............................................73 What’s a SMART Metric? ....................................................................74 Summary – Effective KPIs and Alignment .......................................76 Visual KPI or Communication Boards .....................................................77 Visual Board Components – Key Questions....................................78 Why Not in a Computer? ..........................................................81 Some Lean Tools and Practices ................................................................83 Purpose of the Lean Tools ................................................................84 VSM ....................................................................................................84 5S .......................................................................................................86 Why Do We Fail to Sustain? ......................................................87 Why 6S? ......................................................................................88 Engaging the Workforce............................................................88 Kanban ..............................................................................................90 The Gemba Walk ..............................................................................93 Purpose of the Gemba Walk .....................................................93

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