Traditional Change Models and Lean and Six Sigma Implementation

I recently posed the question -- Do traditional change models help or hinder Lean and Six Sigma implementation? -- to Larry Solow and Brenda Fake (authors of What Works for GE May Not Work for You: Using Human Systems Dynamics to Build a Culture of Process Improvement) and I've decided to post their reply here:

"We believe the answer is 'yes!' While we are glad many Lean/Six Sigma leaders and project managers attempt to address organizational change at some level... it is not nearly enough. Change today can no longer depend on a linear six or seven step model that is easy to follow in 'the change plan' or project charter. Those models fail because linear plans fail to address the complexity of the problem itself and the larger systems in which they are embedded.

We as Lean and Six Sigma leaders owe it to ourselves, the projects, the employees, and the customers to look at business improvement change through the lens of complexity. This requires today’s successful Lean/Six Sigma professionals to understand the initial conditions for why a change is needed, and the many moving parts that are impacted by the improvement. It is not enough to analyze the problem in a vacuum. It is critical to be able to see and influence the patterns of the relationships to the business improvement, set the initial conditions, and implement improvements that can adapt to rapid and unpredictable changes in order to sustain themselves beyond the initial implementation."

Feel free to post your thoughts or comments.

William Balzer Makes the College Connection

William K. Balzer (author of Lean Higher Education: Increasing the Value and Performance of University Processes) will appear on the College Connection radio show discussing the implementation of Lean in a university administration environment.

College Connection is the public’s radio link to information about Oklahoma’s colleges and universities and the importance of college degrees for individuals and for the state. On the air since 2004, the state-wide, weekly program targets a general audience and features news on higher education issues and interviews with education experts and newsmakers from around the state and nation.

Here are the air times and radio stations:

Saturday 10:00 a.m. & Sunday 10:30 p.m.
KOKC- AM 1520 Oklahoma City

Sunday 6:00 a.m.
KOCU-FM 90.1 Altus
KLCU-FM 90.3 Ardmore
KYCU-FM 89.1 Clinton/Weatherford/Elk City
KCCU-FM 89.3&102.9 Lawton/Ft. Sill/Duncan
KMCU-FM 88.7 Wichita Falls, TX.

Sunday 6:30 p.m.
KOSU-FM 101.9 Okmulgee
KOSU-FM 107.5 Stillwater
KOSU-FM 91.7 Tulsa/Bartlesville

Monday & Wednesday 4 p.m.
KSSU-FM 91.9 Durant

The show will also be archived on the College Connection web site.

Alaskan Lean

I had the pleasure of meeting Patrick Anderson -- the director of Chugachmiut (a Tribal consortium created to promote self-determination to the seven Native communities of the Chugach Region of Alaska) -- at the recent TWI Summit in Las Vegas. He told me about his organization and its Lean initiatives -- in fact, they are detailed right on the Chugachmiut site.

While perusing the site, I noticed a link to Patrick's engaging blog and perused some of the entries including this recent post about a kaizen event in the human resources department. In addition, Patrick participated in a podcast on the Lean Blog site hosted by Mark Graban in which he discusses applying Lean principles to healthcare delivery in Alaska.

NYU Langone Medical Center Embraces Lean & Six Sigma

The NYU Langone Medical Center partnered with the Institute for Management and Executive Development (IMED) at the Rutgers University School of Business in Camden, New Jersey to become a "world-class" and "patient-centered" medical facility according to this article on the Rutgers University Continuing Studies site.

Martin Costa, the director of Organizational Development and Learning at NYU Langone Medical Center, is now the director of the new Lean Management Office as well. He states that, other than the benefits of waste-reducing pilot projects and increased operational efficiency, "we are creating a different atmosphere here in terms of how people identify, address, and collaborate on solutions." It appears this initiative is not focusing merely on cost-saving activities, but creating a cross-functional, team based culture.

In addition, it seems change is occurring from the top down -- Martin points out that “one of the most valuable gains is a deeper knowledge of how to be effective as a leader of change.”

Can any Lean initiatives sustain if the leadership of an organization does not embrace and direct the culture change?

Is This Really a Surprise?

The University of Leicester recently published a press release titled "Quality Management Means Lean Management" that details a 22-year study (conducted by Stephen Wood, Professor of Management and Director of Research, University of Leicester School of Management) of the integrated use in British manufacturing of a set of Lean management practices in which employee empowerment was a major component. The conclusion? "We found in all 22 years that those firms that used the integrated Lean approach have higher levels of productivity (measured by value-added)."

One very interesting point caught my eye: "... pioneers in integrating these practices (the total approach) outperformed even those that subsequently adopted it. Later adopters caught up in practice usage by the end of the period studied, but their productivity growth was not sufficient to catch up with those which had adopted it earlier." This conclusion reinforces the benefit of building Lean into the culture of an organization -- the "pioneers" would not have able to sustain their rates of improvement if Lean was simply reduced to the application of a set of tools.

Are any readers of this blog surprised by the conclusion of this study?

Brett Wills on The Lean Nation Radio Program

Brett Wills –- author of Green Intentions: Creating a Green Value Stream to Compete and Win -- will be a guest on the The Lean Nation radio show May 19th from 4pm to 5pm (EDT) on 790 AM Talk and Business, hosted by Karl Wadensten. He will discuss important Lean and Green topics, and he's looking forward to sharing his insights on air to a wide audience of business leaders and change agents.

You can listen to his appearance live on 790AM (Citadel Broadcasting, ABC Affiliate) in Providence, Rhode Island. The show is also globally available via a live audio stream at 790business.com. Brett would love to hear your opinions and answer your questions, so feel free to call in to the show. The call-in number is 401-437-5000 or toll free at 888-345-0790. If you can’t tune in live, a podcast will be available after the show.

The Lean Nation is a new show on 790AM and airs from 4 pm to 5 pm, weekdays and streams online at 790business.com. The Lean Nation features real world examples and actionable advice from local and national business leaders on how to reinvent yourself into a Lean operation in business and in life. The show's host, Karl Wadensten, is the president of VIBCO, a Rhode Island manufacturing company. During the past three years, VIBCO has created a Lean Revolution using lean methodologies (based on the Toyota Production System).

3P at GE

According to this article posted on Business Wire portal, all major products manufactured by GE at its appliance and lighting facility in Louisville, Kentucky will be developed using Lean techniques. More specifically, the company is embracing a 3P (production, preparation and process) strategy.

It appears that Dirk Bowman, GE Appliances manufacturing leader, has the correct outlook and expectation because he states that "the journey will take several years to fully implement" and realizes that a Lean initiative is not merely a quick fix or a simple program to exploit short-term profits.

3P is a powerful tool that often results in the elimination of multiple process steps and dramatically reduces rework. Have you used 3P in the product development process?

Mike Osterling Explains the Differences Between Lean on the Shop Floor and in the Office

Over at the Velaction site, I came across this quite helpful podcast that features an interview with Mike Osterling conducted by Jeff Hajek. Mike discusses how Lean in the office differs from its implementation on the shop floor. He explains how to manage changes, the difference in ownership of jobs, how to recognize abnormal conditions, and what to do to manage the pace of work.

Mike was one of the principal founders of San Diego State University’s Lean Enterprise Certificate Program, where he continues to teach, and is the co-author of The Kaizen Event Planner: Achieving Rapid Improvement in Office, Service, and Technical Environments.

The 2010 TWI Summit

I am currently attending the 2010 TWI Summit in Las Vegas and am quite glad to see a steady increase in attendance since this conference's formation. The TWI (Training Within Industry) program was established more than 60 years ago by the the US government during World War II to increase productivity and standardize work during a time of crisis. The goals were to: get more done with less machines and manpower; improve quality, reduce scrap by achieving standard work across workers and shifts; reduce safety incidents; decrease training time, especially for temporary workers; reduce labor hours; reduce grievances; and transfer knowledge from a skilled, retiring workforce to an unskilled, green workforce.

The conference will feature presentations by well-known authorities and authors on the subject such Patrick Graupp, Bob Wrona, and Don Dinero.

Has TWI been instituted in your organization? This program became an essential part of the Toyota Production System, but for many years, it remained in obscurity, and many organizations instituting a Lean initiative overlooked it.

Is the Pharmaceutical Industry Ready for Lean?

I recently read this comprehensive article on the Pharmaceutical Processing magazine website titled "How to Unlock $43 Billion in Value by Improving Working Capital Management." The section on what differentiates the pharmaceutical industry from other industries in working capital performance is quite revealing. Although three main areas are defined -- inventory turns, accounts receivable, and accounts payable -- it is the information on inventory that caught my eye.

The article claims that inventory turns are poor in the pharmaceutical industry due to three specific reasons:

1. A “no stock-out philosophy" -- the high margins and impact on patients maintain this philosophy.
2. FDA regulations -- which add to lead times.
3. Unique labeling requirements and SKUs -- which result in greater inventory complexity.

In regard to improving performance, the article first suggests that pharmaceutical companies should adopt lean production techniques. In addition, it suggests using Toyota's two main metrics: cost structure and return on sales.

Do any readers have any experience working with pharmaceutical companies? Do you agree with the suggestions posited in this article?