Re-Thinking Being Lean?????

I’ve recently read articles on Lean Manufacturing and in particular how certain businesses have been re-thinking the implementation of Lean.

Now for a bit of background on the articles. All of the business Leaders that started the implementation had been replaced and within 6 months of them being replaced the new Leader had decided to drop the programme. Now most of the stakeholder’s state that their objective is to address the challenges to delivering high-value to the customer, mmmmmm I wonder? By agreeing to drop a programme of business improvement?

Yes, lean takes time, yes lean utilises the front-line workers, yes you have to manage it and believe in it, but Lean is a long term strategy, a set of principles on how you do business, your business DNA. I wonder sometimes with the drive for instant results in a short space of time, particularly from stakeholders, the impatience for money, dividends, investors ultimately see the Leader that introduced the programme removed. This leads me to believe that stakeholders/leaders are either, ignorant, arrogant, none the wiser or have their own interest at heart, on what long term strategy and Implementation actually and physically means. I have been told about the removal of 11 Operations Managers over a 18 month period due to perceived lack of results, you cannot be that wrong in your recruitment process (or perhaps you can but that’s a separate discussion), so leads me to believe it’s the level above that’s the issue.

Now don’t get me wrong, if your haemorrhaging money within operations due to scrap or process variation don’t go and implement a 5S programme. Instead stop the haemorrhaging by attacking the root causes for variation and scrap, get controllable and predictable outputs. 5S may be part of the implementation but it’s not the saviour.

I worked in a number of businesses in my career and still see the same issues regarding short term results oriented thinking that has cost millions (and yes I mean millions in some cases). When I actually know that had the Lean Initiative programme, Operational Excellence, etc. been executed and maintained when it started, those losses wouldn’t have appeared and would have been quite the opposite.

Cost cutting is often a major reason for ditching the latest programme, and Leaders think that through the force of their personality or financial acumen that they are going to be able to fix the business without the aid of every employee in the business, how foolish are they??????

Any Improvement Programme is not going to be easy, but the benefits are massive for everyone, it takes time but ‘time’ is not a reason not to try.

What did make me smile was one of the businesses new Leaders justified the termination of the programme due to that fact that the frontline workers were involved, but in involving them had potentially reduced turnover times by 6.5 mins which equated into £410000/year of increased revenue.

Lean Manufacturing, business Improvement, whatever you call it, is not a short term strategy, but that’s not a reason not to pursue it.

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Sales: Just who is undermining performance?

Sales – the good guys or good for nothing? I guess it depends on your perspective, I have certainly heard both views, and whilst in Sales been the target of those and worse comments too. Personally during my tenure in the function and since, whilst I have come across the odd “rogue trader” more interested in his/her expense account than the success of his/her company, almost without exception I have found sales people to be dedicated, motivated individuals, driven almost without exception to succeed. What I have also found time and time again is sales organisations and processes that were well and truly broken with the Sales people taking the blame for a systematic failure in a company’s processes.

A few months ago Adam and I completed an assignment for a UK company, where the problem definition was something along the lines of “The ONLY problem is that the sales team are hopeless, they never go and see their customers” and on first inspection we found that indeed if the Sales team were out more than 1 day per week, then that was the exception.

However, having completed a process map, taking a typical opportunity through enquiry to order and delivery it soon became clear why this perception held – in fact the Sales team it appeared had taken it on themselves to manage the whole process, not only estimating the jobs, but project managing them through engineering, progress chasing through manufacture, even buying and organising site installation. What was worse was that everyone else including the management had let them and had abdicated all responsibility themselves, more than happy to point the finger at the Sales team when things went wrong. It was an absolute miracle that Sales ever went to see a customer at all, let alone grow the business. To be fair having had the scenario explained to them the senior management took on board our findings and re-engineered the organisation from top to bottom, allowing the sales team to let go of the internal processes, confident that they would be supported whilst out facing the customer.

When considering your organisation, remember – Sales people are employed to sell, and that it does not matter how good your operation is or how clever your design, without orders your business will die. Orders are the output of a process. A process that transforms prospects into orders.

If the process is optimised, it will be efficient, effective and create value for your customers and your business. If not, it will destroy value.

Richard Shaw – Business Practitioner

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The Productivity Puzzle and Lean

I’ve never been one to shout about Lean, Six Sigma or Theory of Constraints, to individuals to solve a solution. I personally have though, applied the tools and techniques to resolve a situation or gain an opportunity I have faced. Granted, it’s not just about the application of tools and techniques, it’s equally important to focus on People, Culture and Managing Change within today’s organisations and society. Every single person has touched or been a part of a Lean process, within our everyday life from grocery shopping to our work we will have been in contact with lean in motion.

The interesting thing I have noticed recently are the articles beginning to appear regarding “is Lean at a crossroads?” and “How Lean is perceived today” particularly in the UK (but perhaps globally). An article by Morpheus Group stated “Businesses are taking a much more pragmatic approach, using a blend of tools….with very few businesses labeling their Corporate Programmes as Lean”.

It does seem that Lean and other Japanese terms associated with it are perceived a risk to alienating the workforce. I wonder why? Are we that uncomfortable with something that is not invented by us?? Are we hiding behind the terms as an excuse not to change??? (There is no doubting it is hard to implement and sustain, but that should never be an excuse). When I personally think about these questions it’s never been about the wording (don’t get me wrong I do cringe with some of them) but it’s about the application, execution/implementation that is key and the right behaviours that drive it so that we can benefit from it.

Businesses are placing a lot of importance on Strategic Cost Saving and Quality. This is absolutely fundamental in “Change” for any business. Strategy and Performance Management, Policy Deployment, Hoshin Kanri, whatever you choose to call it, is the back bone of your business, it is how you do business.

I believe Business Improvement is more important today than it ever has been with the globalisation of markets. What is it that gives us the competitive edge? In particular UK Productivity remains below pre-recession levels. I have been in discussion groups where an estimated 40% of productivity is lost through non value added activities, an estimated £3 Billion cost. Something Lean, Six Sigma, TOC can certainly impact.

This debate will carry on and involves so much from skills, impact on society, etc., etc.

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Manage Time as a Resource

If your managing time in all sectors of the business, from Sales, Product Development and Production it will result in shorter planning and development cycles, as well as less process time in manufacturing.

Whether you’re a manufacturer making computer components, tin cans, widgets or an individual working in a purchasing department producing orders, reports, or budgets you are still producing an output, an output that someone wants.

We all have our processes (inputs) and transform them into something someone wants (outputs).

Time is the key element to control within our processes, for this we use standard work.

The establishment of time based standardised processes is the greatest key to creating consistent performance. Only when the process is stable you can begin the creative process of improvement.

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Improving Performance – Engineering Company Case Study

Increased Delivery, Increased Sales

**No images or Business Name as Customer NDA in place**

Opportunity

This Private Equity owned business was under performing against budget. Particular attention was required within the operational areas with Productivity and On Time Delivery drifting.

The Managing Director required a system to: communicate the strategy, allocate resources, focus and align actions, and control business drift. He wanted to ensure that all key improvement activities had ownership, responsibility, accountability and the relevant training and practitioner support required to increase overall company performance.

Improvement

Working with the Managing Director & Executive Team the decision of implementing Strategy Deployment and A3 Problem Solving was agreed along with hands-on project execution support.

Training was given to all Management and Leaders in what Policy Deployment and A3 Problem Solving is, what benefits and how the process should be structured to enable execution of the business objectives. Key fundamentals were as follows:

  • Identify the few, long term breakthrough objectives that are critical to long term success of the company.
  • Link these objectives with specific action plans throughout the organisation.
  • Focus and align the company’s internal organisations to achieve these long-term objectives.
  • Turn the strategic plan into a year – over – year action plan.
  • Coaches and Mentors others

Workshops were held to ascertain the critical improvement activities to be focused on within the business. Training and Coaching was given to the owners of each A3 Plan on how to manage and communicate through the A3 process. Guidance and training to understand background, current state, problem definition, analysis, actions and follow up.

Management Control Rooms were introduced with regular performance reviews held with all owners and stakeholders present. Ongoing coaching and mentoring in Management Behaviour for the process along with business improvement training and our Lean Coaching Programme to ensure execution and sustainability. Operational Excellence and Process Optimisation workshops/projects were completed covering Sales, Purchasing & Logistics, Operations and Planning.

The company significantly impacted it’s financial position over a 9 month period,

  • Increasing Sales by 20%
  • Delivery by 33%
  • Efficiency by 28%.

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The 7 Wastes: Unseen Thieves in Your Business

In the world of lean manufacturing, ‘The 7 Wastes’ are infamous for their stealthy operations, silently chipping away at profits and productivity. These wastes fly under the radar, often going unnoticed by even the most astute professionals. Yet, if left unchecked, they can cripple an organisation’s ability to remain competitive and responsive to customer demands.

The Infamous Seven: TIMWOOD

Meet the hidden culprits named TIMWOOD, an acronym that represents the seven wastes in manufacturing:

7 Wastes Infographic

Transport (Unnecessary Movement of Materials)

The unnecessary movement of materials from one place to another is often the result of poor shop layout or a disjointed process flow. This waste can lead to an increase in handling which may cause damage or loss of materials, delays, and added labour costs. Eliminating this waste requires a streamlined approach to layout design and process flow optimisation.

Inventory (Excess Products and Materials)

Excess inventory is a common issue where production outpaces demand, leading to tied-up capital, storage costs, potential obsolescence, and increased risk of damage or loss. Inventory levels should be scrutinised, and techniques such as Just-in-Time (JIT) production and demand-driven planning should be considered for improvement.

Motion (Unnecessary Movement by People)

Similar to Transport, Motion refers to any movement by employees that does not add value to the product. This can range from reaching for tools to walking between workstations. Reducing unnecessary motion is integral to improving ergonomic conditions and efficiency. This reduction can be achieved by redesigning workspaces to minimise reach and travel distance and by standardising work procedures.

Waiting (Idle Time)

When employees or machines are idly waiting for the next step in production, this represents a significant waste of time and resources. This can be due to poor workflow, machine breakdowns, or bottlenecks. Tackling this waste involves a thorough analysis of processes to synchronise work steps and to ensure a continuous flow.

Overproduction (Producing More Than Needed)

Manufacturing items before they are actually required or in quantities exceeding customer demand results in overproduction – the root of many other wastes. This can lead to excessive inventory and increased holding costs. To nip overproduction in the bud, implement pull systems based on real customer demand.

Over-Processing (More Work Than Required)

Over-processing is seen when more work is done on a product than what is valued by the customer. This waste occurs due to unclear customer specifications or internal miscommunication. Reducing over-processing demands a clear understanding of what the customer values and aligning the production process to those standards.

Defects (Production that Requires Rework)

Defects and the need for rework can be the most apparent and costly form of waste. They lead to wasted materials, labour, and time, not to mention the potential to harm a business’s reputation. A culture focused on quality—like adopting Six Sigma or Total Quality Management (TQM)—can significantly curtail the occurrence of defects.

Identification and Elimination Strategy

Recognising ‘The 7 Wastes’ is the first step to effective lean management. It’s essential to develop a keen eye for these wastes and instil this perspective across all levels of the organisation. This is not a “once in a blue moon” activity but a regular practice that should be embedded into the daily routine. Regular audits, employee training, and a culture that promotes continuous improvement are key factors for success.

To embed this practice, create a system of visible metrics and feedback loops. This promotes responsibility and awareness amongst teams. Engage employees in problem-solving and encourage them to take ownership of their workspaces, suggest changes, and implement improvements.

7 Wastes within a process

Continuous Improvement: The Lean Way

To enter into a sustainable cycle of continuous improvement, adopt the PDCA (Plan-Do-Check-Act) methodology. Regularly plan improvements, do them in controlled conditions, check the outcomes, and act to standardise and stabilise the improvements.

Key Takeaways

Employing strategies to eliminate the wastes identified by TIMWOOD ensures a company’s ability to thrive in today’s competitive marketplace. By fostering a culture of continuous improvement, providing employee education, and implementing systems that promote efficiency, companies can not only identify waste but turn it into opportunity – for growth, for innovation, and for delivering value to customers that rivals cannot match.

If you need help applying these principles and taking practical steps towards eliminating waste, our team at TCMUK Limited is equipped to guide you through the process. The impact of addressing ‘The 7 Wastes’ can be profound. Call us at 0330 311 2820 or email info@tcmuklimited.co.uk to unlock the full potential of lean in your operation.

Sharing insightful methodologies for operational excellence is at the core of what we do. If you found this article useful, please share it with your networks. We encourage feedback and welcome any questions. Feel free to connect on LinkedIn or reach out to continue the conversation on optimising your business processes.

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Leadership Standard Work: Strengthening the Core of Manufacturing Management

Effective leadership is paramount in steering organisations toward success. Leadership Standard Work (LSW) represents a transformative approach that embeds discipline, visibility, and accountability into the daily routines of leaders at all levels. At its core, LSW is a systematic, documented set of behaviours and activities that are fundamental to driving performance improvement and organisational success. Let’s delve deeper into this concept and how it can be actualised in your manufacturing environment.

The Pillars of Leadership Standard Work

Leadership Standard Work revolves around several key behaviours that align with the fundamental lean principles of continuous improvement and respect for people. These include:

  1. Go and See (Gemba): Regular, scheduled visits to the place where work happens to observe processes and engage with frontline workers.
  2. Ask Why: Applying the five-whys technique to uncover the root cause of issues, thus fostering a culture of problem-solving.
  3. Show Respect: Creating an environment in which every team member feels valued and their input is considered critical for continuous improvement.

Standard Work vs. Leadership Standard Work

Standard Work and Leadership Standard Work are twin pillars in high-functioning manufacturing environments, but they cater to different yet complementary aspects of operational excellence. To understand the distinction and the interplay between the two, let’s expand and explore.

Standard Work: The Bedrock of Consistent Quality

Standard Work is a detailed outline of the optimal current method for performing a particular task or process. It encompasses the best practices identified through continuous improvement efforts and is designed for workers at the operational level to ensure consistency and efficiency. Essentially, it’s the “what” and “how” of the daily tasks:

  • Documented Processes: Clear, concise instructions for performing a task that anyone in the role can follow for consistency.
  • Time Elements: Standard time taken for each task helps in scheduling and balancing workloads in a lean manufacturing system.
  • Sequence of Operations: An optimised sequence for carrying out tasks to reduce waste and ensure efficiency.
  • Quality Checkpoints: Built-in quality inspection points within the workflow to ensure defects are caught and corrected early.
  • Tools and Materials: Identifying and arranging necessary tools and materials to minimise movement and waiting times.

Standard Work is the baseline framework from which continuous improvements are identified and applied. It creates an environment where output quality becomes predictable, and processes become more transparent and efficient. As changes are made through kaizen (continuous improvement) activities, Standard Work documents are updated to reflect the new best practices.

Leadership Standard Work: Enhancing Management Effectiveness

In contrast, Leadership Standard Work turns the spotlight onto the roles of leaders and managers within an organisation. It pertains to the “who,” “when,” and “why” – focusing on leadership behaviours and activities that ensure the Standard Work and all other processes are effective, sustainable, and continuously improving.

  • Routine for Leaders: It includes scheduled checks and observations, regular meetings, and audits ensuring that operations are running according to the documented Standard Work.
  • Performance Monitoring: Involves reviewing key performance indicators (KPIs) to ensure that targets are met, and progress is made toward strategic goals.
  • Problem Escalation: Leaders address issues that frontline employees cannot resolve on their own, bringing a systemic approach to solving workflow interruptions.
  • Mentorship and Development: LSW emphasises developing staff; leaders schedule time to coach and mentor employees, reinforcing a culture of learning and improvement.
  • Change Management: Leaders are tasked with managing and guiding change within the organisation, ensuring that new practices are smoothly integrated and accepted.

LSW provides a blueprint for leaders to follow that ensures they are supporting the Standard Work done at all levels. By managing their time around core leadership tasks and creating a routine aligned with operational processes and goals, leaders ensure that they are not only providing direction but are also supporting and enabling their teams.

Symbiosis and Synergy

Both Standard Work and Leadership Standard Work are vital to sustaining lean manufacturing methodologies. While Standard Work prescribes “the way work is done,” LSW ensures “the way work is led.” In practice, one cannot be successful without the other. Standard Work without supportive Leadership Standard Work may lead to drifts in practice and gradual decline in outcomes as frontline employees may not feel supported or held accountable to maintain improvements. Conversely, Leadership Standard Work without solid Standard Work lacks the baseline consistency required for meaningful leadership activities, leading to disorganised efforts and suboptimal resource allocation.

The synergy between the two establishes a robust system where process efficiency is maintained and continuously improved upon, and where organisational goals are met with consistency through engaged leadership. Leaders reinforce the Standard Work by verifying its application and encouraging continuous improvement, while frontline workers carry out the carefully designed Standard Work, knowing that their efforts are supported and that there’s a framework for escalating and resolving issues. This creates a dynamic loop of performance and productivity that underpins a culture of excellence.

Implementing Leadership Standard Work

To effectively implement LSW, leaders must first understand their roles and establish a set of activities that align with organisational goals. For example:

  • For a Team Leader or Supervisor:
    • Starting the shift with a brief team huddle to discuss the agenda, safety topics, and performance metrics.
    • Routine checks for adherence to 5S standards and progress on action items.
    • Direct, on-the-floor coaching, and problem-solving sessions with team members.
  • For a Senior Manager or General Manager:
    • Weekly or bi-weekly Gemba walks to maintain firsthand knowledge of operations and employee concerns.
    • Participation in cross-departmental meetings to ensure alignment on strategic objectives.
    • Reviewing KPIs and ensuring that audit protocols are being followed to maintain high standards of quality and safety.

Each level of leadership standard work varies in scope and frequency, but the underlying principles remain the same.

Leadership Standard Work Audit

The Impacts of Effective Leadership Standard Work

By embracing LSW, manufacturing organisations can expect several key benefits:

  • Problem-Solving: Frontline associates, empowered to raise issues, drive a culture of immediate problem-solving rather than reactive fire-fighting.
  • Continuous Improvement: Regular practice of LSW ensures that improvement becomes habitual, not just a one-off event.
  • Developing Leaders: Provides a framework for nurturing future leaders by exposing them to strategic thinking and decision-making processes.
  • Performance Gains: Continuous focus on goals and metrics tends to accelerate performance improvements.
  • Team Culture: Promotes a sense of ownership at all levels, leading to stronger team bonding and collaboration.

Case Studies and Evidence

The practice of LSW isn’t theoretical; it has been successfully integrated into numerous organisations. As we implemented and embedded this within Unipart in the late 90’s early 20’s it highlighted its effectiveness. LSW was introduced across the organisational hierarchy, from team leaders to the managing director, driving substantive improvements and embedding a proactive and positive culture. Just one of the many implementations we have done throughout the years since.

The Leadership Pyramid

Visualising LSW through a leadership pyramid can provide clarity on the distribution of responsibilities and activities at all levels. It emphasises the importance of foundation work by team leaders, the managerial oversight, and strategic vision at the upper tiers of the pyramid.

Key-Takeaway

Leadership Standard Work is the engine that propels the continuous improvement vehicle forward. It provides predictability, structure, and a means by which leaders can methodically contribute to the organisation’s overall well-being while developing their teams. In embracing LSW, manufacturing organisations are not merely investing in a set of tasks; they are nurturing a culture of excellence, responsibility, and innovation that echoes through every layer of the company’s fabric.

For manufacturing leaders seeking sustainable improvement and cohesive teams, leadership standard work isn’t a choice—it’s an essential strategy in the modern manufacturing playbook.

If you need support or want to know more about Leadership Standard Work please do contact us

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World Class Traits

Committed LEADERSHIP is essential to success

Maintaining a strong CUSTOMER FOCUS assures we’re fixing the right things and going in the right direction

Effective PROCESS MANAGEMENT accelerates improvement & helps us keep ahead of our competitors

Drive improvement goals through the enterprise using effective STRATEGY DEVELOPMENT & REVIEW

Careful attention to ORGANISATIONAL DEVELOPMENT builds important foundations for continued success

Carefully chosen METRICS help us monitor our rate of improvement & make course corrections when needed

Rigorous & Structured USE OF CI TOOLS is the engine that propels improvement

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One of the Least used Tools – Standardised Work

Standardised Work is one of the most powerful but least used tools within business, yet it is one of the foundations to Lean Manufacturing

From my experience “without standards we do not have continuous improvement only chaos”.

The declarations I have heard, “we don’t make cars”, “You see, we are different”, “We’re unique….this isn’t an assembly line!

My response to such statements is “everyone works a process that process can either be destroying or creating value added for the customer, which would you rather it be. Whether you’re building cars or delivering life-saving patient care, it takes a sequence of highly coordinated tasks and processes to deliver the end result. When this sequence of tasks is standardised, you’re on your way to fundamentally improving and eliminating significant sources of waste.

Standardised work is the simple understanding that every task that can be repeated requires a written instruction of the most efficient and effective way to complete it to the highest quality Standard. We then use the selected standard work process each time the task is performed ensuring that the same results are achieved, in the same amount of time, regardless of who completes the task.

Now, we must understand here that the first step is to document what the current best practice is, this may be not be delivering the outcome you require currently, but without first understanding, how will you control any changes and what improvements have had what effect? We can’t, it would be guess work!

Key Elements of Standard Work

  • TAKT
  • Process Capacity Table
  • Work Combination Table
  • Work Layout
  • Standard Operating Procedure

Standard Work Documents

Takt Time – “Takt” is a German word which refers to the pace or beat of a musical composition, the metronome. The calculation of Takt time gives us the rate of production for meeting customer demand

Work sequence – “The time for an employee to do a prescribed task and return to his original stance.” – Taiichi Ohno
Standard inventory – In manufacturing this refers to parts, but in other sectors it can refer to applications, data inputs or other resources necessary to perform the job.

Bear in mind the following

Involve employees in the process – they are the ones who determine the best practice for each task. This also helps ensure engagement and ultimately adherence to the standard work.

Focus on the details – it must be in-depth to be useful in reducing variation. No detail should be omitted. Even the little nuances need to be understood, these are improvements that can be engineered out. (I can remember a process I worked with where the Associate had to lean on one part for the other part to fit, a stack up of tolerances had occurred. This knack had to be written in the standard work until we could engineer it out, imagine the amount of lost time/production if others weren’t aware of this)

Use visuals – Images, photographs, diagrams and examples will help bring your standard work definition to life and increase the likelihood of consistent compliance. A picture is worth a 1000 words.

Make it accessible – The documentation must be accessible at the time and place that the work is to be performed.

Innovate – While you don’t want employees deviating from the standard work process, there must be a method to give consideration to changes when new conditions or new ideas warrant revision. A governance process will increase the likelihood that changes will be analysed and approved rather than being implemented ad-hoc.


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“Performance Rooms” a powerful Visual Management Tool.

Over the last few months I had a number of discussions regarding what I call “Performance Rooms” others call “War Rooms” (never really been keen on that expression but as long as the process is followed what does it matter) or the Japanese term “Obeya Rooms”. I will use Obeya in this article.

These rooms and the disciplined approach to the process behind them helps businesses to reach their strategic/tactical goals and promotes the creation of solutions and actions that can be developed and implemented quickly. The aspect of Managing Performance Improvement for any business undertaking Growth or Lean.

Strategy Room

The following is an overview to understand the theory behind it.

Obeya is based on a simple idea that we dedicate: time, space, the coordination to root cause analysis and problem solving so that organisational barriers are minimised. This ability to maintain a disciplined approach to real-time problem awareness, listening to team members concerns, making discoveries, resolving problems, collaborating and above all developing/mentoring our people is critical to the success of a business.

They promote the coordination and implementation of Strategic and Tactical issues by mobilising and pulling together the intellectual resources of all employees in the service of the firm.

The following are different types of Obeya Rooms (not limited to):

Product Launch; when developing a new product, managers responsible for decision making in design, production engineering, and manufacturing gather in one place to shorten the lead-time through real-time problem resolution.

Business Process Layout: Centralised data collection, prioritising and action planning.

Focused: Project Performance Rooms, SQPDC, A3 Problem Solving, Continuous Improvement rooms.

Observations to consider when looking at Obeya Rooms :

  • Use two colors when tracking status, Red and Green. This avoids ambiguities; the status is ON TARGET or NOT.
  • Define SMART metrics (Specific, Measurable, Attainable, Realistic, Timely), no more than 3-5 focused metrics as more would be impractical for every day review.
  • Problem, Follow-Up and Countermeasure Boards are mandatory, the team must be prompted to solve issues immediately. The deferment/stalling to solving the problem is not allowed.
  • Meeting Discipline – Punctuality, Question and Challenge with dignity and Respect and the meeting should last no more than 30mins.
  • The flow for review takes the shape of Check, Plan, Do, Check, Act instead of the normal PDCA.

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