Lean Manufacturing
BIF, the Baking Industry Forum
Nelson Boyd, BBU
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2018 Baking Industry Forum
2018 Baking Industry Forum
Lean Transformations
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Agenda
• Opening statement - reality
• Aspects of Lean Transformations
• Five Dimensions of Lean Transformations
• Project versus new way of life
• Closing statements
• Questions and answers
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Exercise
• Please cross your arms and legs
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Reality
• Lean Transformation is a very large undertaking
• It is an acquired skill, the skill is developed while in
action
• 45 companies spanning six industries
– 70% of all transformation efforts fail to deliver the
desired results (Learning)
– Almost 50% of all Lean transformations equally failed
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Justification
• What influences companies to undertake LT?
• Payback is tremendous
• Internal and external pressures
– Increasing shareholder value
– Changes to the industry
– New technology
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Prioritization
• Importance level of the Lean Transformation
– Must be a top two across the company
• Top leadership - review of progress, to ensure
minimal interruption
• Learning: Strong Maintenance in your facilities
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Model “Road Map”
• “If you fail to plan, you are planning to
fail” – Benjamin Franklin
• Five dimensions of Lean Transformation
• Its not just manufacturing that needs
the transformation, every aspect of the
business and support function
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Change readiness
• Recent large change results
• Organizational feelings on lean
• Company wide surveys
• Learning: You need to fill vacancies and bench
staff (Not everyone can handle change)
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Organizational communication
• Associate Engagement
• Access to information
• Level and frequency
• Progress and changes on projects
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Roles and responsibilities
• Span of control
• Job functions will change
• Directly tied to new systems in place
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Structured methodology
• Disciplined approach
– Must follow it religiously
• Learning: Design a “Playbook”
• Learning: Best practice sharing and
implementation is key
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Tracking progress
• Metrics and reports
• Review meetings
• Pure financial numbers are not enough
• MSAs (Measurement System Analysis)
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Typical learning curve
• Learning: Each Department/Location will have a
different learning and improvement curve
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Celebrating successes
• Wins must be communicated
• Review the failed attempts
• Learning: Fail fast and often = growth
• Recognition
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Five Dimensions of LT
• Standard method to describing a lean
transformation
• There is no perfect approach
• Situational based on answering multiple
questions
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First Dimension of LT
Value-Driven
Purpose
1
• What problem are we
trying to solve?
• “Start with Why” by
Simon Sinek
• Situational approach
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Second Dimension of LT
Value-Driven
Purpose
Continuou
s
improvem
ent
1
2
• What work has to be done?
• How will we improve it?
• Improving the entire LT
methodology
• Sustainability mindset from
the start
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Many tools: PDCA, Pareto, Statistical Process Control, Fishbone
diagram, Kaizen, Visual Management, SOPs, etc.
MEASURE CONTROL IMPROVEMENT
2018 Baking Industry Forum
2. Continuous Improvement
• What work needs to be done?
• How are we going to improve the work?
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Exercise
• Dice, then pattern
• Knowledge Threshold
2 2,4,6,8,10,12
2,4,6,8,10,12
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IUMRING TO GQNGIUSIQNS
Exercise
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Third Dimension of LT
Value-Driven
Purpose
Respect
for People
Continuou
s
improvem
ent
Behaviors
1
2 3
• Capability building
• Skill assessments
• Learning: Tools and Skills
should not be a list to
choose from
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Fourth Dimension of LT
Value-Driven
Purpose
Management
Systems
Respect
for People
Continuou
s
improvem
ent
Behaviors
1
2 3
4
• Make coaches out of
middle managers
• Learning: KPIs and the
standard structure must
be followed with no
deviations
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4. Management Systems
• What behaviors that complement the
management systems?
• Practice new behaviors each day
• Up to 90% of the waste comes from systems,
processes and policies
• Focus on fixing processes, not the people!
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Fifth Dimension of LT
Value-Driven
Purpose
Management
Systems
Respect
for People
Continuou
s
improvem
ent
Behaviors
Basic Thinking – Mindsets
and Culture
1
2 3
4
5
• “Culture eats strategy for
lunch”
• Underlying assumptions
• Explicit
• Hidden
• Current culture to ideal
culture
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Project versus New Way of Life
1. Is the lean transformation a top priority?
2. If so, does the top leadership regularly communicate overall
results to the company?
3. Does the company communicate the Vision, Mission, and
Values of the company and continually base all their daily
decisions on them?
4. Does the company use the Lean approach in all business
processes?
5. Does the company and the managers show an internal
respect for people development?
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Closing Statements
• Why – the purpose – True North
• Prioritization
• Methodology and Structure is vital
• Five Dimensions
• Winning – let’s be better today than yesterday
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Questions and answers
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Thank You
BIF, the Baking Industry Forum
Nelson Boyd, BBU