Lean Daily

Management (LDM)

Ralph Seely
Lean Consultant
(206) 701-3382
http://www.pointb
.com
 Overview

• Lean Daily Management (LDM) is the system that allows you to

deliver customer value through proper support and leadership to
those who are closest to the process (customers and process owners).

• Some of the Lean Daily management elements which are commonly

used are Leader Standard Work (LSW), visual control boards, and
daily accountability.

• The elements are not effective unless used with the right mindset-
starting with effective lean management.
“Reality” of missed opportunity to sustain
 Traditional vs. Lean Work Environment
Traditional Lean
• Complex • Simple and visual
• Management by status reporting • Management by sight
• Push system • Pull system
• Just-in-case inventory • Inventory as needed
• Batch production • Single item or small lot size
• Long lead time • Minimal lead time
• Quality inspected in • Quality built in
• Functionally managed • Value stream managed

In a Lean system, abnormalities are easily seen

 Traditional vs. Lean Leadership

Traditional Lean
• Staff meets goals set by • Ensures team goals support
leader vision
• Leader plans • Direction setter (visionary)
• Information controller • Information conduit (sharing)
• Sole problem solver • Facilitates ‘root cause’
• Technical expert analysis
• Technical resource

Creating a culture of Problem Solvers

 Lean Daily Management goals
• Support Lean Principles
• Minimal inventory
Lean
Assure
Operating System Assure
Delivery & Assure Safety and Morale Product &
Minimum Cost Process
JUST IN TIME OBJECTIVES METHODS PRINCIPLES Quality
Q
Act Plan Operate with the Develop Standard Paced
U
minimum resources Skills Work Production
required to AL
consistently deliver: IT
Check Do • Just what is Minimal
One - Piece
Y
levels • Inventory
needed. of Flow One-by-one
• In just the required material confirmation to
amount. detect abnormalities.
• Just where it is • Signal Produce Stop and respond
needed. Effective use
of
identifying only on to every
• Just when it is machines abnormality abnormality.
needed. demand
Separate machine
Level Production work from human
5S / Visual Management work. Enable
machines to detect
abnormalities and
Continuous Cost Reduction Through The Elimination of Waste
stop autonomously.
Eliminate waste as it is revealed through inconsistent or unexpected results.
 The core of Lean Daily Management
• Process Focus
• Predictable Outcome Lean
Operating System
Assure Assure
Delivery & Assure Safety and Morale Product &
Minimum Cost Process
JUST IN OBJECTIVES METHODS PRINCIPLES Quality
TIME Paced
Q
Act Plan Develop
Skills
Standard
Work Production U
Operate
AL
with the minimum
resources required IT
Check Do to consistently Minimal
One - Y
levels • Inventory
deliver: of Piece Flow One-by-one
material confirmation to
• Just what is
detect abnormalities.
needed. • Signal
Effective Produce
• In just the required use of identifying Stop and respond
only on to every
amount. machines abnormality
• Just where it is abnormality.
demand
needed. Separate machine
• Just when it is Level Production work from human
needed. work. Enable
5S / Visual Management machines to detect
abnormalities and
Continuous Cost Reduction Through The Elimination of Waste
stop autonomously.
Eliminate waste as it is revealed through inconsistent or unexpected results.
 Visual Management
• Exposes non-conformances
• Allows for quick action
Lean
• Plan vs. Actual Operating System
Assure Assure
Delivery & Assure Safety and Morale Product &
Minimum Cost Process
JUST IN TIME OBJECTIVES METHODS PRINCIPLES Quality
QUALITY
Paced
One-by-one
Operate with the Standard
Act Plan minimum resources
Develop
Skills Work Production
confirmation to
detect abnormalities.
required to
consistently deliver: Stop and respond
Minimal
to every
Check Do • Just what is
needed.
levels • Inventory One -
Piece Flow
abnormality.
of
• In just the required material Separate machine
amount. work from human
work. Enable
• Just where it is Effective • Signal Produce machines to detect
needed. use of identifying only on
machines
abnormalities and
• Just when it is abnormality
stop autonomously.
needed. demand
Level Production
5S / Visual Management
Continuous Cost Reduction Through The Elimination of Waste
Eliminate waste as it is revealed through inconsistent or unexpected results.
Lean Daily Management Elements

Leader Standard Visual Controls

Work (LSW) (Visual walls)

Lean Daily Management

Daily
Leadership Accountability

discipline (Huddles/Tiered
(Audits) meetings)
 Lean Daily Management (Element overview)
• Sustains Proper Behaviors

• Effects All Levels of Management

Leader
Standard Work Status Problem Tracking Tier 3 Accountability Board
RESPONSIBILITY
rt
d Pa Greg
Ba ol
e To Joe
ok
Br Amy
Jim
Kim
James
Brett

Leader Response Andon

Leader Standard Work (LSW)
• Provides a structure and routine for Leaders
• Sets Standards for the Expected Behaviors of Leaders
• Drives Accountability by Measuring “Actual versus Plan”

Director
Standard Work
Manager
What To Do
Supervisor Standard Work
When To Do it
Standard Work What To Do
Team Leader Was It Completed
What To Do When To Do it
Standard Work (if not-Why?)
When To Do it Was It Completed
What To Do
Was It Completed (if not-Why?)
When To Do it
(if not-Why?)
Was It Completed
(if not-Why?)
 Who Should Have Leader Standard Work?
Role % of work time Responsibilities
that should be
standard
Executives 15% Verify production process is improving

Value Stream 25% Monitor and support Managers

Manager
Managers 50% Monitor and support Supervisors

Supervisors 50% Monitor and support team leaders

Team Leaders 80% Ensure operator standard work is followed

Operators 95% Used in performing task consistently

(associates)

Standard work is more

defined and specific in roles
closest to the process
 Leader Standard Work
Each Layer of Management
has a list of tasks/ responsibilities
that need to be completed in a
Leader Standard Work – Manager particular time frame

• Prepare for team Meeting

• Verify Self Checks and Successive Checks

• Audit safety compliance items

• Ensure all issues have been documented

• Determine overtime requirements

• Review production requirements

• Audit cross-training plans

 Leader Standard Work (Team Leader Example)
Te a m Le a d e r Standard Wo r k
Name: Area: Date:
Start o f Shift Initial
Ve r i f y a ll T M ' s h a v e p r o p e r P P E i n p l a c e ( S a f e t y g l a s s e s / s h o e s , e a r p l u g s ) Tu r n this f o r m into y o u r s u p e r v i s o r
R e a d T O S bit / L e a d Stretc hes (E ne rg y stretch routine) at the e n d o f the d a y
Distribute TM's daily c on suma ble s I s su e s ( w h y w a s t h e std. w o r k n o t f o l l o w e d ) : E a c h r e q u i r e s a n
A3 report
Unplanned a b s e n c e s noted a n d Supervisor notified
S t a t u s b o a r d fille d o u t w i t h S e r i a l N u m b e r s
Ve r i f y S W I P i s c o m p l e t e a n d i n t h e d e s i g n a t e d l o c a t i o n

unit 11
unit 4
E a c h Ta k t T i m e

unit 12
unit 10
( C h e c k off w h e n c o m p l e t e )

unit 7
unit 2

unit 3

unit 5

unit 6

unit 8

unit 9
unit 1
Ve r i f y s e l f a n d s u c c e s s i v e c h e c k s h e e t s a r e c o m p l e t e a n d s i g n e d o ff
Ve r i f y S t a t u s B o a r d c o m p l e t e d a n d u p - t o - d a t e
R e s p o n d to A n d o n calls within 3 0 s e c o n d s
Escal ate to Supervisor: safety items, missing/late/non-conforming parts
All non-conforming parts (on ce t a g g e d ) delivered to Q R B a r e a
Ve r i f y c e r t i f i c a t i o n s h e e t s a r e s i g n e d o ff ( A s s y. o n ly )
During Production
Ve r i f y T M ' s a r e f o l l o w i n g S t a n d a r d W o r k S e q u e n c e ( 2 t i m e s p e r d a y )
Serial Number: Model: TM: Ye s / N o :
Serial Number: Model: TM: Ye s / N o :
Serial Number: Model: TM: Ye s / N o :
At the E n d of Shift Initial C O M M E N T S / N O T E S :
E n s u r e all e x t r a p a r t s a r e r e m o v e d f r o m t h e a r e a
Ve r i f y 5 S w o r k w a s c o m p l e t e d a n d s i g n e d - o f f b y e a c h T M
Ve r i f y S W I P i s i n p l a c e
P l a n f o r n e x t d a y ( c o v e r a g e f o r T M ' s p l a n n e d t i m e o ff )
G e m b a walk with supervisor
 Visual Controls
• The purpose for visual controls in Lean Daily Management is to focus on the
process and make it easy to compare expected vs. actual performance.

• Visual Controls highlight when the process is not performing as expected and
where improvement might be needed enabling us to take immediate corrective
actions.

• Visual Controls are an important enabler for disciplined focus on adherence to

lean processes.

• Visual controls vary widely (charts, checks, dashboards, scorecards,

display boards)
Visibility Wall
• A visibility wall is an essential element of Lean Daily Management. It provides
a permanent location to easily view the work of the organization

• Posting categories include quality, cost, delivery, safety and morale.

• Each wall has a statement of purpose, a communications section for unit

activities and improvement ideas or projects.
Production display boards
• An “at-a-glance” visual display of the status of the production/office area

• Provides a way to quickly and easily see the status of processes

• Helps bring focus to the process to drive improvements

Andon (Signal to identify abnormalities)
• A signal to notify management and support personnel of a safety, quality, or
process problem

• The signal helps the team determine the root cause of the abnormality, defect,
or delay in order to prevent a re-occurrence
 Escalation Procedure
• Structured series of steps to be followed whenever a team member (at any level)
encounters an abnormal condition

• Escalation is used to raise the level of awareness and sense of urgency in the
identification and rapid resolution of problems or issues in production

Detect/stop

Intermediate
fix

Countermeasure
Daily accountability-Huddles
• Daily huddles are a key part of daily management.

• Daily huddles are team or cross-functional group meetings focusing on

process status, identification of challenges

• Benefit: Enable the team to raise and address issues as they occur,
preventing larger problems from developing.

• Huddles typically occur at the visibility wall at the same time each day.
Daily accountability -Tiered Meetings
Three Separate but Interconnected Meetings:
• Tier 1 - Team Leader with Team Members
• Tier 2 - Supervisor with Team Leaders

• Tier 3 - Manager with Supervisor(s) and support staff (possibly Director)

Tiered meetings: Standards
Tier Meeting Content
Tier 1 – Team Leaders & Team Members Tier 2 – Supervisors & Team Leaders Tier 3 – Manager, Supervisor & Support

Safety Safety Safety

PPE Issues from previous period Safe Day previous period?
Injuries from previous period
Attendance Delivery
Attendance Plan for next period Plan vs. Actual from previous period
Backfill / X-training Conversions / RA from previous period
Delivery Downtime from previous period
Delivery Schedule for next period
Schedule Line Stop from previous period Quality
Line Stop from previous period Plan vs. Actual from previous period Direct Run from previous period
First Pass Yield from previous period
Concerns This Period Quality Units in Hospital
Materials / SWIP Issues from previous period
Equipment / Tools Abnormalities
Process / Methods Projects All un-planned events that effected
Done by Team / Move to Accnt. Board the Daily PLAN
Problem Tracking
• Methodology to track issues that cause variation from a safety, quality, cost or
delivery standard
Leadership discipline-Audits
Leadership discipline-Daily Accountability board
• Accountability reinforces the need to adhere to commitments
• Ensures Timely Counter Measure Implementation
30, 60, 90 Day
Name Section
Department

Incoming
Queue
 Lean Daily Management Implementation

• Identify the demand Leader Standard Visual Controls

• Understand your • Develop a
• takt time (pace) production board
• Understand your Work (LSW) (Visual walls) • Develop a response
processes plan (escalation)
• Develop daily
management processes

Lean Daily Management

Daily
• Monitor problems Leadership Accountability •Conduct daily
• Monitor performance
stand-up meetings
discipline (Huddles/Tiered
(Audits) meetings)
Benefits
• Helps provide data on where you are (actual) compared to where you
want to go (planned)

• Assists with meeting customer demand

• Improves process quality

• Reduces process variation

• Ensures effective problem solving

• Helps standardize the way organizations manage their facilities

• Ensures sustainability for improvement efforts

Lean Daily Management - Summary

• Supports all principles of the Lean Operating/Business System

• Ensures countermeasures are put into place for identified non-

conformances

• Process not people focused

• Allows for a reliable method for problem solving

• Problems are more visual to allow quick action

• Relies on Leader Standard Work to sustain correct behaviors

• Gives transparency to management decisions

Questions?