hi folks I welcome to our Wed
now podcast for their lean supply chain hi my name is robert my to change go I'm
CEO ling ko R&I with me I have my at partner here
Kevin bank Rabia also with link or and Robert Mayer
instructors love the series that we're about to share with you
and thank you very much I we've been told by Carol that we have that
several hundred people watching the podcast today and that said nothing
short of exciting that I considering
you know that means we've got so many of us out there interested in something
called lean supply chain and also on a
Friday before Super Bowl so I was I wanted to start this saying that while
to american Idol I've always wanted to say that but that
before we get to started though I just like to think I am
II Brian added madeleine carroll for helping put this together
for those view that I have never had the opportunity to come to Georgia Tech it's
just an absolutely amazing
I'm venue and educational facility
completely a world class and that we've
had the opportunity to be teaching are lean supply chain professional serious
here for
going on three years now and it's just been a pleasure to have
by this partnership between link or and George attack
I and thats its success is that we've had in this is just yet another
example if taking that to the next step where we can spend a an hour together
talking about to the lean supply chain
so with that I think we can just we've got some material in some slides that
you're going to be able to see and I will just start going through those and
and I know that there's capability for I you to ask questions via email which
Carroll
you can't see she's with us here I is going to be able to forward those
questions on to us and we'll do our best to
to answer them and for those that haven't been here the
facilities are here are just incredible world-class its
easily the best place we we instruct impeach
so I think you we we need to start of interest level said everybody here
most a few out there I suspect that are are listening
I have introduced herself to lean in your organizations are probably a
and some point the above the lean journey and I think it's
it's important for us to clarify the purpose
or what what exactly does it mean to be a Lean Enterprise
I am in here are some things that that certainly
lean enterprises these are characteristics are those
so first thing a lean organization is really
really about learning organization where we are focused I'm
learning every day through problem-solving connecting
the business to the purpose in connecting the purpose of the business
to the value proposition up the customer very very critical piece for us to
recognize what
the customer sees value in and connecting everything else to do that
certainly the you know organizations are only as good as their people in
and showing respect for people as is very very important in
in a key principle for for Lean Enterprise is and then
really embracing the Wii methodology some the things that are core to
to wean stability standardization showing real respect for these things
and
in understanding how do we take these and just continue
to embrace and continue to when these things to be operations
I'm making problems visible me
how do we challenge ourselves and confine ourselves and constrain
ourselves so that problems become
visible so we can focus arming
on solving those and then you know going through the
the Restless eliminating always so this is in Oneida
the if you if you ask people what is lean even mean I think the most common
answer tends to be
well to eliminate waste and do only those things that add value to the
customer
and that's absolutely something we focus on relative to lean in the supply chain
as well
I'm thinking long term as well short term
something that certainly large public organizations that can be challenged
with when there's
month-end and quarter-end goals I'm and then
the the the real power the lean alene culture which is just continuously
improve to get better every single day
now one of the things that's important everyone other reasons why we actually
you know put this light up is that I I think that a lot of people use the term
lean and I
and it or we can use operational excellence or
whatever the case may be. by really what we're talking about here is Jess
creating a I supply chain
and a part of the organization where every day we come in we say okay where
the problems
on how do we fix those problems at the root cause
therefore eliminating all the waste in the supply chain
and trying to make this supply chain I'm as efficient and effective
as possible as we do that and while teaching on the last will appoint
teaching the power plan do check act where we just come in
and continuously want to want to improve it and
the slide is is very important as oftentimes I'm
know if I had a dime for every time somebody said to me or robber I don't
think leans gonna work in our
supply chain and II I my belief is from my travels is that there's a feeling
that people think that lean supply chain means that
you know that you absolutely have to reduce batch sizes and increased
delivery frequency and
and some of the techniques we use in in application but that's not what this is
all about in totality at the end of the day regardless of what your supply chain
is whether it's
you know repetitive manufacturing are distribution or health care
Korean or mining which would be completely different
really what we're talking about here is what are the problems that exist in your
supply chain
how can we fix them at the root cause and therefore eliminating the waste that
exists in them
admit that second second to last bullet really about the culture
regular people are coming to work I engaged in thinking about how to improve
their piece of the business and that's really what the Lean Enterprise is all
about it's just that
that intensity and commitment to making things better
so the the supply chain professional the course that
that we teacher at at Georgia Tech I has three components to it and what we're
going to do for the next
forty minutes or thereabouts is to continue to discuss these
their streak three components it's a 90 series and each of these things that
you're seeing here are three day
three-day sessions within the 90 series and in order in what we're trying to do
with the 90 series the purpose
is to build the the lean supply chain professional on the lean supply chain
professional
is a problem solver so we introduce problem-solving techniques on how to
apply those techniques into with that as solving supply chain problems
then we get into really the lean supply chain in becoming a lean supply chain
management
expert and some other techniques I
Inc or logistical functions transportation warehousing
and in the last piece in in certainly i you could argue the most important
pieces to
to display willing leadership in to develop leadership skills
I as your company is embracing lean what do you see the leadership team what are
the requirements and the capabilities
above the leadership in order to make this successful
and you know to build on that I can remember
well they're coming to Georgia Tech three years ago you know I didn't invite
the
Doctor John Langley and and our doctor harvey donaldson
when we started talking about about you know robber what can we do relative to
to you know lean and education and George attacked at
link or our organization is a third party logistics company but we have a
training are because we recognize that
before you can really go implement Lean the supply chain people have to
understand to be educated on what we're trying to do because
if the people aren't engage then you're never gonna get the the hard work done
and I remember specifically one of the first conversations where
when we're brainstorming with the curriculum might look like and so forth
on I said you know one other that we talked with vision and I said you know
one of the visions would be that if people
act I get educated is lean supply chain professionals when they go back to work
that after a month or two their bosses just quite literally say to them
oh man like what happened to you and
because of the different way of thinking and the different approaches to
I looking at the supply chain and that's really where the three
the three mean sections came about because he said you know at the end of
the day
to implement Lean in the supply chain a person has to be able to
identify problems and solve problems
secondly they need to know where to identify and solve those problems in the
supply chain so you need to be a lean supply chain
a content expert as well and how to the lean principles applied to the supply
chain
and then third miss Kevin just said you know so important that there's gotta be
the ability to get it done
the ability to work with people and that's where the lean leadership
comes into it so
so with that will the start to work through those three areas here in in the
first one is becoming the lean
supply chain problem-solver in in developing the problem solving skills
required
and add this is wanna bar we will say this a lot of
if you come join us for nine days one of our favorite slides but this one really
really is
this is this is where we so why is it so important at the problem solving
the reality of it is there's actually laws
scientific laws the second law of thermodynamics thats
basically telling us that our processes
unmanaged without putting the right
pressure I'm keeping it together our processes in fact
there's their scientific law there's energy trying to pull our processes
apart
which is going to create problems that we have to deal with every single day
inside of our supply chain and I if you know
looking at the slide that last the the inevitable and steady deterioration
under the definitions for entropy that inevitable and steady deterioration in a
system or society
this is telling us that this is what happens so began to connect that to
our supply chains we've got trucks on the road right now most organizations
have something that's being transported
and the reality is there's not one thing that's going on out there in the in the
real world
that is helping all these processes stick together
now one thing is helping that truck state on time and on schedule
are things whether in traffic and construction lots of different things
actually trying to
pull those process parten and dad destabilize our supply chains
so we need to develop problem-solving skills because
quite frankly the second law of thermodynamics tells us
that our processes are going to fall apart
you know i'd and to build on that so what they've if you think you have the
four
II with I'd joke with my friends about the for rent rights you know we just
at the end of the everyday supporting our customers are trying to get the
right part
I had to the right place
in the right quantity and in the right qualities I was Jux a look at
I don't know why are working so hard as supply chain people there's only four
things we've gotta do
I and I you know I say that ingest the recognizing that
that every single force out there
is trying to I create an environment where those four things fall apart so
you know when when when I material doesn't get to the customer
on time or in the right quantity I we really shouldn't actually be that
surprised because the whole world was trying to make it so they wouldn't so
our jobs
as supply chain professionals and and in particular with the focus on lean
is about what how do we put if if there's this pressure coming out like
this
to to make the process fall apart
what we have to do to put equal or more pressure against it in order to
to make it stay together and that's why
and the way that you do that that force the pressure is simply problem-solving
problem-solving every single day and driving plan do check act mentality
around it
it's a so this next site here this is
I highlighting a you know organizations if
for going to become problem solvers then thinking about
how complex our businesses are and how many people we need to Ben
have develop those skills you need some structure
you need a problem-solving model that helps speak a common language in
starts with the basic approach in how we are going to go about problem solving
and
out what you are about to see is our
I our thoughts on having you really embrace problem solving a link or
and struggling with some love the traditional problem-solving models that
exist
so what we've got here is no plan do check act is something that we really
run our business on
but we when you think about it from mister a problem-solving model
standpoint we really really
struggled with it as a problem solving model great for us to make sure that
things are are being captured that we see gaps between what we expected to
happen and what actually happened
and that we're doing something about it but when you get into a complex problem
when you say
how do I go about what's a structure what's the format how do I go about
solving it
we really struggled in in the same thing with
the demand which as you may know the Six Sigma Six Sigma methodology teaches
in embraces demand an app process we
again that that problem-solving methodology we struggled with as well so
we developed one which were about the to share with you that
it for us it's how we go about solving problems and really the importance of
having some structure doesn't have to be
the Orwell model but just having some common language in structure around
problem solving
yeah and and i think that the point two billion like kevin is set as our
we're not advocating a problem-solving model in any way
%uh the fact is that all problem solving is a language
just the same way we have I'd English in French in different languages
mathematics is the language
PTCA is a language it's a way to describe
a format or process to solve a problem to me it is a language
it's a it's a it's a problem solving format
and I think that you know in our experience depending on the
sophistication I have the organization
I'll at sizeof organization problem-solving model can be
very very different however there needs to be
a language I'm I and II and in my travels a lot and going to places in all
say I'll say will
you know is this a problem solving culture and also absolutely
now say well how do you solve your problems and that the responsible what
do you mean
robbery and I said well how do you do that if you're truly problem-solving
culture
how is how do you solve problems what's the language or the the formatter the
model that you use
and so you know the last thing we want to do is
is to to turn this into a the me and purses PTCA verses
some other problem solving model all were advocating is that
there needs to be a model inside the organization
that everybody you know from CEO down to team members
I use to talk about the problems and tests show how you're going to
going to go about them now with that I'm I think that there's
there regardless of the model there are some core things that it needs to do
and that bill kind of sideways into the next at the next slide here
rain we spent who
hours and hours and hours really thinking about while enquiries
how do we solve problems what are the different steps that we pay Kim
now we came up with this or low model and in the first step in the oracle
model list operate
and quite simply that means do the work and identified the problem
have is step one so what better way to go to the gamble where the work is being
done in
in in as many cases as possible do the work for yourself to get a better
understanding of what the problem is
the next the next part is the review phase
which is to have a very very clear definition
I've the problem inside a bad we document the current state
in that sir yeah I think I i very fundamental flaw lot of times and
problem solving is
human nature tells us to go solve the problem and I like
cases we don't really have a true understanding of the problem in
and we would always advocate more time should be spent in review or that phase
forget about the Oracle model but just deep understanding of current state and
truly understanding the problem
then we get into the learned phase which is where we're all really we're really
focused on identifying
possible causes and trying to in this phase determine
the root cause or possibly multiple root causes of the problem
and that's were that's what the purposive at phases
then we can and optimize which is around identifying solutions
and I in in so many cases in in our experience
going back to just the lean fundamentals
those are where we start to solve problems you know back to using this
simple tools that lean teaches us
to help solve these problems and then I as with any
any solution to a problem a lot of times the hardest part
gets into implementation I and if your sax
successful way implementation sustaining the solution right we might get
we might solve the problem but how do we make sure that it doesn't bubble back up
in our
are our solution is one that sustained over time
you know and Kevin Kevin said the the
the operative word there around tools and
folks I apologize for the the
small font on this particular slide in that
but hopefully you can read it read it all right but
it's important because we wanted to make sure that we see these things as as a
bit above
as a bit overflow and I'm you know so Kevin
when he was outlined what the core elements a problem solving re: mention
the word tools and
tools are very very important however if there's one thing that
you know I think that we've learned along the way and when I say we I mean
the whole
lean community s certainly I've been tot this some
you know by by doctor jamal Mac and and john shook themselves a
in listening into them and dialoguing with them saying you know what
they say robert is just not about the tools that's about the thinking
behind the tools but at the same time
there are some very great tools out there
I that are that that that supply chain people we can you send
I think what you'll see is a few not gonna go through the whole list of tools
but these are in fact
tools that we that we go into and teach during the three days a problem solving
and what you're gonna see depending on you know how much I am
education you had with you done some Six Sigma were cuddling work and sure that
many of them you're reading the list going well
you know those are those are simple and those are basic and be answered
%uh the answer to that is you know what they are
I'm however what's interesting though is how many of them are
are being actually being used I'm
what we find you know in particular logistics and supply chain processes
were not
we're not dealing with with temperature and pressure where we're trying to get
something from 99.999 9
a to 99.99 99
I 85 we're dealing with suppliers that have
55 percent fill rates and we want to get them you know up into the nineties we're
dealing with
transportation systems that are in the low 90's and we want to get them up
towards 100
the level of tolerance isn't logistics and supply chain processes don't require
in my opinion all of these powerful statistical tools what we need our basic
problem-solving tools and then a toolkit for for improving
I you know take paredo for example we we teach paredo and and in the class
there's
vice presidents in the class and I can tell you know bye bye body language that
they're going on I can't believe I came all the way to Georgia Tech to learn
about a Prado
and I'll stop I'll go I can tell that you're feeling like
like you know you already know this not say well robert
teaching us how to do Prado char say well you know what that may be true
when's the last time you did one and then they'll be this kinda like silence
it'll be you know what you're right
and then we work through the true power thinking behind
I the Prado which is to isolate the critical few so we're working on those
things that only will truly
drive waste reduction in the most weeks waste reduction
so while there is a list of tools that we go through and that are important
for the lean supply chain professional I think what's most important is
to connect it with the thinking and the Y I'm
why are we doing this and that there once we connected to the the thinking
to the tools and that creates the true healthy balance that
honestly creates the the lean problem-solver
so with that we a in next is at the three days on the
the lean supply chain management expert and I we really go deep
into applying Lean to logistical on supply chain functions in
and the you know one of the reasons wanna things that we
we know about lean is the focus on lead pack
and we really going in a tackle lead time in these three days and say well
how do you go about reducing lead time but
make it begs the question: a wire wires focusing on lead time so important in
and out for those out there that are fortunate enough to be living in a
true make to order I environment which is what you see outlined
right underneath the the green bar that
that's in the middle of the slide what you're what you're basically able to do
is wait for a customer to order your product
and then they can't wait for it didn't have labels you to have all of your
supply chain lead time
plus the amount of time it takes you to producer manufacture plus
the transportation at the time it takes to get your product or service your
customer
your living environment where you can they're actually willing to wait
for for you too organize all a baton and
put all that together your supply chain times last
than their expectation well the reality is that's that's not the case for most
more supply chains in most organizations out there you're working in this
the bottom part of this slide here where
your supply chain the time plus your manufacturing place your logistics time
to get your product or service to your customer
actually exceeds their willingness to wait and the second that we live in that
second environment
the minute that that's true that means that we have to do forecasting
and we know a few things about forecasting two things really is one
there always
wrong and to an to is not that they're never right that's
1e too is that we know that the further out that you we have to forecast the
worse we are actually are at
at predicting the future were better in the short term
we really don't know what's going on in the long term and the second there we
inject this forecasting
we risk overproduction which for those that are
are further along and they're being journeys know that that's really picking
up always because it generates
all the other ways second we produce a have were more than what we need
that we're generating although this activity that is
by definition wasteful in and you know in just to build on
on what kevin is saying I think as as a as a lean supply chain professional we
always say that we believe in economies
time verses economies of scale that we
recognize that if we can or be reducing lead times getting closer to the
customer
I and closer to our suppliers then are
are error a building the wrong stuff at the wrong time is going to be reduced
and therefore
are about the overproduction is going to be reduced in there for all the other
waste that overproduction creates waste
transportation waste storage wasted inventory waste
rework waste away eighteen wasted motion
all of these other ways exist only when
we build something or order something or
or I distribute some our order something to distribute that we
that the customer does not need at that at that given time
and that's why you know this inequality is is a very powerful
most companies are not
faster than their customers are in Mount supply chain lead time the amount of
time it takes to sort material plus our manufacturing lead time plus our
outbound logistics lead time which is what all
the the acronym stand for on the slide
is greater than our customer expectation
I'm and and that work means that we have to guess what
we need to make our builder order and as soon as we start guessing
with Natalie we will guess wrong it's just a simple fact in
nobody should be too surprised I'm II
remember once I VP was responsible for forecasting
I was telling me a story about a VP of manufacturing
same to to him you know your problem is your forecaster never right
and that his response was will listen if you think I could predict the future do
you really think I'd be working here
I'm so I don't I'm not sure anybody can predict the future and so we have
so what we know is that we can't
radu we can't get I would've the idea that we have to guess our forecast but
we can reduce
the impact does that by getting closer I'm
to the customer I think I think organizations are are really starting to
to understand this certainly we're seeing a lot of work being done in total
cost model lean
have in the last twenty years a lot organizations have extended their lead
time significantly with globalization
and I were seen I'm not a huge
move I have to I localize a reduced the supply chains but what's a conversation
and lotsa modeling in the math part of that is now being done to question some
other the
the decisions that me that extended these lead times and
from from a lean point of view in the supply chain I think that that the fact
the focus on the lead time reduction is probably one of the fundamental
differences between
lean supply change thinking and traditional supply chain thinking which
is
based more on economies of scale fill the truck up
and and only move something when you've got the most
volume that you can
and this this concept of systems thinking is
is one of the core themes UHV the middle three days these four five and six is
as they become to be known at really when you're talking about
by introducing lean to the
the supply chain into logistical functions it's the requirement
that you''re systems thinker and what we mean by systems thinking is to recognize
that
it's not about optimizing anyone part
I love your supply chain when you do that when you focus I'm
reducing transportation costs and minimizing that cost
by definition you are all you are right having costs elsewhere on what the
the lean supply chain problem-solver are the main supply chain professional
gains appreciation for is that they're part of a system
and that quite frankly be only go love the organization is to optimize that
system
and when we do that there are what we're focused on it so we're thinking about
this decision not only in its core function
so this is a receiving worshiping decision
what is the impact a bad decision to all the other areas of the business
and we you know there's some progression here but one of the first things is to
just
recognize that you know we are part of a system getting everybody in your
organization say you know what
we will no longer think about solutions to our problems
for what's just better for or what's best for purchasing or what's best for
transportation
we will we recognize we're part of something bigger
and all of our solutions now start to think about systems thinking in total
cost
when I'm minimizing parts in the supply chain were
optimizing the entire supply chain
you know and that and this is fundamental for the lean supply chain
professional to
to change that meant the model and become a systems thinker
if we look at the slide this is the what you see there is a figure above the
have the top part have a value stream map that was created
over on the right you've got a customer and way far to the left you've got a
supplier so this is truly a
the bird's eye view of an extended value stream
from customer all the way through distribution to the factory
all the way up to up to a one supplier
and what you see here is the customer's consuming 50 per day
but yet worship in five hundred I twice a week
we've got a thousand store data warehouse we are worshipping 500 twice a
week to the warehouse
we're building 500 every two weeks
we've got a supplier supplying a component that goes into our finished
product at the factory their ship in SF thousand once a month
and they're building their component I once a quarter in a batch of three
thousand
and this this is not you know I made up example this the Wii
we've got examples examples are supply chains that look like this when you're
when used finally map them and what you see here is just a
a what we would say there's no rhythm I use the word tactic
relative to the to the rhythm a the supply chain
there's no synchronicity there's no rhythm to it at all and what we have is
just
as everybody in the supply chain focusing on their own little part
I and therefore all love the waste that exists
now this is nothing new you know we're not so naive to think that this is
leading-edge thinking and and and so forth
you know the idea that their silos inside organizations in
this functionality between departments and that
at its it everybody knows it however
the organizations that are funny you say you know what
we have to eliminate this waste this these are going to be the company's say
you know what
we're going to do something about it now
and it's not easy because there is a fundamental
issue with the way our businesses are structured
and that is that our departments are verticals
finance marketing manufacturing HR
and for very good reasons other verticals
on and but the problem is is what these verticals are managing
is material flowing information flow
you really think about it all we are all doing
eyes were managing flow or managing flow of materials
physical materials or managing flow out information
art departments a vertical but yet material information flows out
horizontally
so what we end up with our decisions being made
in verticals and then what we end up with is what's now known as the theory a
unintended consequences right we thought it was a good idea at the time
because we're focusing on this transportation
warehousing cost per case inventory levels
and then we end up with all of these unintended consequences
or you know I'm or the WAC the mall typeof
typeof things that happen for so
what has to happen is that the supply chain professional
is is once we start focusing on CSE systems
thinking we start to say listen how can we do work in the supply chain
how can I be responsible to do work across the extended supply chain with
out the accountability
it's not about changing or charts and giving one person
the span of control so they can get it done
this is about people just taking responsibility
to say you know what we know there's waste
and and a and whack the mall going on inside the
entire supply chain and we're going to take responsibility to go
and to work with customers to work internally with our own internal
departments to work with suppliers to work with our third-party logistics
providers in our carriers
to identify it and ally in a collaborative environment to
to actually eliminate so when we're done
this value stream that's on the slide is gonna look like 50
50 50 50 50 and will now have rhythm
synchronization and it will be as close to waste free
as possible Indian for all for all partners
in the supply chain MA think the reality is that
isolation inside of this worksheet if you look at me any one of these areas
were actually probably performing okay me
in what our traditional mindset is a bit too we appreciate that
we have to fix the horizontal in our business across
you know the come across the value stream that's where the work needs the
to be focused on now
and thus this a slide again i said i
a told you earlier I'd why warned you that we have a few of our favorites and
certainly this one is really really
really critical and it's the thought of having guiding principles
in your organization and then really thinking about what
the lean supply chain what the guiding principle should be and and
a really really important step so first off let's just
we'll talk about what a principal is our principal
i buy in a defined as something that we believe in something that's kind of a
core value to us
and the business world something that we no longer require
business case analysis or are why it's just something that we believe
as an organization is the right thing to do in
I tell you the fatah having these in an organization a large
complex business I just think about how much more efficient
decision-making how much more things can get done how much
alignment how much simpler alignment would be if we have these things
unfortunately it's they're not always always easy to come by
and a lotta work has to happen to gain alignment around the guiding principles
but
really important to have them and these are the guiding principles that we need
to be thinking about for the lean supply chain
there are seven a ban I there is a logical flow to them but it doesn't mean
you absolutely have to
be thinking about these things in this order
I but there is a logical flow to them in and we'll dissect them a little bit here
the first thing is making consumption visible throughout the fulfilment
schumer throughout the supply chain
that means to our downstream customer do we actually have visibility
to their consumption in the key takeaway here's to
to differentiate between orders and signals and triggers
versus true visibility in as close to real time as we can get to that
consumption
because there's lotsa reasons why are our customers are ordering things the
way they are
and that's at least to some degree always disconnected with
their actual consumption or the true demand
so in order for us to connect to demand and that's another court the move
the the middle three days is having demand be that P setting process
fifty in the previous like 50 50 50 well
we need to be able to see that in fact it is fifty
the second one gets back to leave time right we're producing lead time inside
the supply chain
I to enable poland to reduce inventory
right so we're work trying to shrink from when we get a customer order
met doesn't have to be external I can be an internal customer to when we actually
are able to replenish that
create level flow this one is really really critical drive C
on above waist inside a bar supply chains when our activity looks
I lumpy throughout the month there throughout the weaker throughout the
year
that drives a wastin you can just use what we call the Monday morning
kinda the Monday morning example folks at work inside receiving departments
you know they walk into work Monday morning in all the activity from
transportation happened over the weekend
is sitting right there waiting for them on Monday morning in a lot of times
that's our peak activity inside a bar receiving docs
I'm sure some of you out there having saying at that happens to us well
you have to ask yourself over able to get through monday morning
we have capacity and equipment and resources allocated to deal with Monday
morning
what happens when are activity is is less than Monday morning in
we know that that means that there's waste so we focus on
level flow every day trying to look is close to the same as we can
up in that is part of eliminating waste
are using pull systems to reduce complexity overproduction
I and I we I really like in this one the
comment reducing complexity if we if we just use pull systems
I had to minimize overproduction but reduce complexity think about
all the forecasting activity in all the the ad
the effort that goes into trying to figure out what we're going to meet
tomorrow
of we just let the pool system happening actually simplifies our business and
the effort that this at that pace
and then in a movie nine the number five collaborate
solve problems and focus on process disappoints an hour talking about
the I a a principal about how we're going to run
the supply chain in number six at increase velocity to drive flexibility
to meet customer demand so
and a velocity is an overused word a and
I'm oftentimes cycle what does that even mean well velocity mean speed
and the way that you create speed from a tactical point of view
in our experiences to move smaller shipments more frequently over level
period of time so that's got a tactical nature
but the principle involved with it is around velocity
on and then number seven lead to make decisions based on poll cost of the film
it
total cost this gets to the system's thinker
you know i i was job with people that say if you wanna arm
the armed with a great question they go into a conference room is when your
problem solving inside a concert just
you know put your Ananya Chando I wonder what the total cost
this decision is gonna be in the end if we really take
systems thinking and theory of unintended consequences into
into in you know into mind
you know at the end of the day with the where these where these principles can
come from is I can and I had the
pleasure and honor being asked to write I
the workbook for the Lean Enterprise Institute Tom
the fifth in the series workbooks call building the lien for film and stream
and unlike I'm like other elements of tactical nature as we started
writing the book it became very clear very clear
you know very early on that there is no
just go do this to implement Lean in the supply chain
because everybody supply chain is so so different you know from
I you know if you if you just look at you know from
automotive I to healthcare
I you know to hallways and and seasonal products at
the supply chains are just fine the mentally
different and there is no just go do this and this and this and this
and so we really had to take a step back and then look at the work we were doing
with our customers and
and say you know why this isn't about a step-by-step
this is about the hear some principles
that need to be recognized and then you have to go and see how does this apply
to my business so
it forces the thinking we can't just go and blindly implement step 1 step 2 step
3 we need to say okay make customer consumption visible
how is that going to I'm can act with with our
with our business so that's why you know the word guiding principles was chosen
very deliberately as Kevin mentioned
a guiding principle is just something you believe in
I you know data no rori no break even analysis to
to you know to support it you just believe this is the right way
to run supply chain and during the
you know the three days I have the building leaves quite a professional
we go into the seven principles and look at the
the thinking that needs to take place at the tactical
I at the and the tactical implementation to get at these
to get at the seven principles but these are
the elements have driving lean inside
inside the supply chain and overall in in the overall
the film industry now the last part is
around we need leadership in what we really focus I'm hearing in the last
three days is
to help prepare the student
to going back to their organization recognizing that they've now
Haddin you know embraced some things that the organization may not really be
ready for and how do we deal with that I we've got a lot of
people in our organization and I've now here and I'm supposed to come back and
show that this
course is going to bring value to the organization yet
wait a second nobody else was in the class I
lot of people have not even been introduced to lean when we talk about
lean supply chain
the don't know what it means so how do we actually
prepare them to go back to their organizations and get some things done
and that's what this three days is about to end the first thing is
we talked about this at the very very beginning which is people
maple if we're gonna go back in influence
and try to really drive change in really implemented
what we're doing inside of our supply chain
well supply chain is about people and process
and we're gonna have to say what does this mean for people
soul the lean leader creates a safe and visual
in work environment attic or fundamental that the
mean leader called back and said okay do I have a safe and visual work
environment
how how do we communicate and how do we make sure we're a wind and the purpose
of our organization
connecting people to the purpose of the organization
is it's just something we absolutely have to do
for for showing respect for people they don't can act with
why is what I'm doing a poor important inhabits it impact the business
that were not showing them respect I recognizing that
a fair day's pay and a fair day's effort are both
business exchanges rate this is a be there is a business exchange: hearing
that's a fundamental I we owe them an opportunity for growth and for
development
and what's our process do we really really have
infrastructure that lends itself to developing our people and growing
Canada respectful feedback on performance we've all been there
great you we sit into our performance reviews and it's clear to us that our
superior doesn't really know what we do all day and has very little respect so
we have to be thinking about
quick of in candid feedback on performance
and then the last 3 no problem identification and improvement at
and fixing things at the root cause and the ability to
we we use the word experiment and that's a you know the word experiment is a big
part of the love the lean community and and problem-solving commune in the ideas
let's try stuff and will be at were gonna fail some
have and then will reflect and then we'll go back and we'll try it again
you know there's nothing wrong with with say know what I think we know
I an idea here we see we've done it we've done our work to understand the
problem we think we've got some good solutions
and let's just give something to try and I it won't be perfect but you know what
it'll be an experiment and then we'll come back and and and self reflect and
then move the ball
down the field a little bit more and then the lasses mutual trust
creating strong relationships for change so what server
you know change management is nothing new and i in fact
you know leadership by if you few Google
on Amazon or I guess you don't Google on Amazon but if any of you search whatever
your searches
and there's there is tens of thousands of books on
leadership and change in so you know the the but the fact the matter is to drive
lean thinking your operational excellence thinking in the supply chain
you there does need to be a leadership component
there does need to be a change components so know what we really tried
to do
in in these three days say okay what really needs to happen
for us in order for us to drive this 7 guiding principles in the lean supply
chain
through our organization and and
the three days is really spend really uncovering and what's at
what some been excited about that is that you know over the last three years
when we when we come to the class
and you know the the the class makeup can be everything from
see ol business owners VPS
directors you know down to down to team members who are you know
been has to become Eileen leaders
on the floor of the operations and so forth so
complete spectrum and the it's very interesting to hear
you know the perspective that the CEO role around
people and change and Dre how to drive
a Lean Thinking down to you know what team member
I who may have no authority I
and no span of control at all to just say please do this
I and that's really where the the value love the dialogue
and the the work around the elements have
lean leadership and their definitely are some aspects
to lean leadership that don't exist in those ten thousand
books that that are out there on traditional leadership thinking
and a way for us to embrace voice of customer we actually have some feedback
from my
firms wanna views viewers out there with a question so we're gonna take that in
real time
I held at question is Matt
matters that's what constitutes a visual
work environment you know where we've done so much work inside this now
just you know I just was at one of our customers and
their visibility is the problem and they're trying to
trying to understand how how to make it visible
so we just literally went through this so the first thing is you know what does
the work look like today
or tomorrow what work do we have to have
Don what's the demand this area
our what are the requirements of the business so we
need to know that and then we need to make that visible to those that have to
get that work done
and then as you progress then you create a plan to get that work done
at twenty trucks to unload today okay will do even know we have 20 trucks to
unload
no okay that's a problem we need understand what's the work look like
today
and then we have to show a plan for work and then we have to
for as we progress we show how we're actually what's the status of us getting
this work done and what's the gap between how we're actually
performing versus how we were planning on performing and that's the visual work
environment
and connecting people to that is showing respect for them
right now we say well I know what tomorrow looks like for me
I you know at link or I know what the business requires a me and I actually
know when have good visibility
moving out four five six months of what the business requires me
not being able to know what your day looks like is not showing respect for
people so we create that visual work environment it's really really critical
and
it's all about making problems visible and you know and to build on what can I
was saying I think I always
if I had to describe a visual work environment you know
with an elevator speech II my my
I'll default is always from Pascale Denis his book lean production
simplified a visual workplace you can see is a group know as a group in act as
a group
so you can see I problems as a group
you can know I'll what's going on as a group
and you can act am as a group so that you know the the best analogy is Jess
the the streetlights and I love our traffic
the visual management around traffic you know the their red light orange light
green light
you can't we see is a group we know as a group and we act
as a group so that is the quintessential real definition of whatever visual work
environment is about
thanks Pat and the leadership shown respect for process
array respect for humanity through process thinking and
you know our customers only a all the customers experiences for us
for anybody is in aggregate dove the performance of all of your processes
very even if you don't believe you have a process for something you in fact
do because you're running a business and my nappy is this a plan that might not
be as bakkie minted
but there is a process and the lean leader really shows a deep respect for
process very
this is how we do things and we always do them
so as part of that will k what does that mean Kevin
deep respect for processing for process thinking well
internal or external customer expectations and don't all
what is our customer expect is that communicated is that visible to those
doing the work
understood standards to be use for improvement baseline right
how are we currently performing what's our baseline how do we then use that as
the
benchmark for baseline to improve are recognizing that
environment I if you're a lean leader you recognize that stability
been operation is critical and if you don't have stability
that needs to become I the first
the first Stapp is gaining stability so we look at
stabilizing processes I we focus on following delivering customer value
right flow thinking back to lead time and how do we get things to go
from one step to the next hour from 10 in the supply chain to the next
and only doing those things that are bringing in value
and then you know the idea quality in our work so
the the lean leader has complete respect for process
relative to quality at the source air proofing where mistakes are made because
we absolutely no mistakes are going to be made as
the saying goes if they're human beings involved and mistakes are going to be
made there is a a
for mister to six point of view there is a absolute one hundred percent
probability
that mistakes will be made so how do we air proof those things how do we
guard against them on and then I
from a leadership point of view really engaging processes relative
the waste elimination justice this idea that
we would asked people to do
something that is not adding value for the customer for the organization
on you know henry ford I'm in in sum up his writing
said that to ask you know something asked to ask somebody to do something
that is not
adding value to the customer to the organization
is probably the worst insult that you can actually make on a person
so early leaders really say you know what if we're gonna ask people to spend
moments in their lives working
insider organizations then it's our role as a leader to make sure that they're
working on those things that
that add value to the organization
overall so the the three-day span to
around lean leadership is really TTT chess a very healthy respect for what
does it really mean to respect
and individual relative to driving lean in size supply chain and what is it
really truly mean to respect processes
because by a large you know are waste exists because
have poorly
I designed and delivery processes
in this just
you know kinda summarizes wanna for slides you see in the last 3 daysin
missus again our way of trying to capture
what does it mean to become a lean leader what are the things that you need
to focus on in
would say if you were if you are a student this is one of these ones you
just
you print out you put it on your in your officer in your cubicle and you're
always thinking about
how to develop the skills and am I actually
doing these things but your responsibility to build the Lean
Enterprise
into really really embrace Lean Thinking I
to become a lean leader and understanding the differences between
leadership in traditional leadership that's something we we delve
pretty deep into up focusing on principles and purpose
and really connecting people to the purpose of the organization
being principle based in supporting your your
organizations principles
are leading the vision and thinking about alignment at the lean leader will
always be thinking about alignment on how
are the lean leader is we haven't touched amber really really
thinking about how you're able to connect up in the organization
being able to talk a little differently and connect with people
that are at a senior level be able to talk down in the organization to people
that are
I our core team members but really important talking across the
organization being able to
can act then think about systems thinking in total cost them being bad
you know the person that's responsible for bringing that to the organization
are lots of other things in here I'm you'll cease
you know the student and teacher recognizing that the lean leader is
always both
what does it mean to be a student in what does it mean to be a teacher but
you're always Bowl thing you have to be willing to learn
and always looking for opportunities to teach a power grab a kissy an inquiry
and doing
II starting to hone those skills which
we learn in the three aces is a challenge
I'm showing respect for people I am process we
we hit those pretty hard understanding management systems right management
systems do we have in our business
which ones do we require to become a Lean Enterprise
I how what are our measurement systems today in
what behaviors are those driving and how do we need to change
change those from a lien perspective really embracing reflection
we talked about time management at that the whole concept that will your
standard work
really really critical where the kinda
the more the promise a bad is taking more responsibility for your time
not you know the things that you deem are important absolutely have to get
those things done
and we can you know we we use the term coined in one of the classes
the time hijackers we cannot let people hijacker time
we have to take responsibility and we talk about introduces tools to do that
the visual management the visual workplace and
really embracing go see rate there's problems
will not solve problems here we need to go see for better understanding
and embracing at I were
part iv: teams all the time in world teach a little bit on how to build teams
and what
makes an effective team in the progression of teams and then
you know it dealing with resistance in change management
we talk in touch and help hone those skills
and one other big things you have to do is just be able to be passionate about
lean
and understand why you're why organizations are bracing
so there's that there's a lot there for
for for three days on the leadership are but I
you know I I can do go back and remember when
the link or team in the Georgia Tech team we're putting together
this series I and really
you know both on the Georgia Tech side and on the link or side
he said you know what there's a ton of things that we could all be doing with
our time
and I i kno the folks watching today and
and dis everybody out there are large we are we are also busy
I and we're competing with with with different priorities both
you know professionally and personally and and it's just amazing how fast a
daily goals and
when we were putting this course together we say you know what
this absolutely has to pass the so what test
because people just don't have time and travel dollars
and I and energy to to
X expand if it's not going to pass a so what test and that's how we ended up
with you know what
what we need to make sure is that passes so what s for the individual but also
for the organization who is investing in the individual
so that's where the format can about like let's so we bring people together
for three days
and we do lean problem-solving so we talk about how do you solve a problem
then you go away for mine
but during that month there's an egg an expectation
and you're accountable in order to get the certificate from Georgia Tech
that your solving a problem so the power vs
is that your organizations are actually getting
true problem solved that and the return on that investment is typically
you know hundredfold then we come back again for
a month later and we say okay what worked what didn't work
you know we we dialogue around the fact that some people solve great problems
and some people
didn't even get to it because they got back to work all pumped up and
life took over and and then the next thing they know a month has gone by
and they've just been fighting fires for that might so we talk about that we
understand what we're going to do to try to fix at
but then we spent three days connecting it to the supply chain
building a lean supply chain professional and then go away for
another month and
take your problem solving and now yours new supply chain
I knowledge and really start working
on problems inside the supply chain you team you know lean principles I love
flow and pole on and visual management and and all the powerful
improvement at as toolset that we have
then come back and we'll talk again okay what was good what was bad what you get
done what you knock it down and then we dive into the leadership element
and spend and spend I'm three days on that
meanwhile over the last three months the students have been
spending only nine days at George attack which are nine fantastic days but
they've spent
you know I upwards to upwards to 10 weeks
in the workplace working on problems where hopefully that's at that's having
a huge benefit in RI for the organization and
in our minds that was the only way that this was going to pass a
the so what test relative to to true
professional education we have one more question
up
from again all I
or it sounded like a Mac question so how do we drive accountability
in in the process of the visual work was
well I even the word accountability we've we've tried to be actually
hammer this out the last mind a course
and we struggled a as as a group we try to understand the difference between
responsible in county building ownership in control
I I F it's important though we're or by my
first reaction to that question is the accountability is
is you know we were quick to go there but the
what we're really trying to do with the visual work places to make problems
visible and it's not about
you know accountability for anything other than
the responsibility to address that problem so the visual workplace
you walk in you actually can see problems and then those become the work
that
that we focus on that's the think the opportunity
and the accountability needs to be driven in the
response to those problems at army me visible
and nothing beats that besides
whiteboards in this is with the three problems that the business I'm covered
yesterday and he was the owner
as its mayor area not that it's there issuer
we always ask why not who but that's a patsy count ability that
you try to drive through that and you know I think that
if you gotta be dry if you're having problems with
driving accountability I think typically what that means is that people just
aren't doing
other things around the visual management at you know you're not
staying 5 ass to organize workplace
I'm you not just sustaining progress board so whatever
the case may be rather relative to the visual management and
so if people are doing it then what that means is that they don't see any value
in it
we we go through this all the time in particular in our own operation where
we're continuously changing
are elements a visual management and if you're
if you here here's the litmus test if you took away
elements have your visual management and everybody cheered
then you didn't design your visual manager processes work
any good if you took away your visual management
and every and and people on the floor in the warehouse or in the transportation
department said
oh my gosh I can't do my job anymore then
you now know that your visual management processes are
are are where they're getting to be there because the actually adding value
there are graveyards have white boards
and and and failed visual management
initiatives because somebody's read a book and they decided well you need
approx an hour in our progress board
when Howard our progress has zero connection
to the actual process that you're looking at the progress may need to be
every 10 minutes army need to be
every four hours it we got we got me thinking
through these things so the visual
I E visual management process where you're struggling with accountability
what that really means is that the people that you are trying to
I'm engage individual major processes do not see value
I in in what you've designed and you need to go back
and say look at what is this really need to be for us to see is a group known as
a group and
act as a group
so you see some information out there about the date so the the nine-day
course and a a link that takes you to where you need to go and
you'll if you wanna meet robert nigh person will be doing
the nine days the March April May and then again September October November in
the land is fun place to be so and Georgia Tech is world class
absolutely world-class yes
thank you everybody