Welcome back to Day 2 of the Lean Transformation Summit. Once again we'll be live-blogging the happenings here at the Red Rock Casino, Resort and Spa in Las Vegas all day long! Just keep this page open in a web browser and keep clicking "refresh" to find out the latest. (Please note that all time stamps are in PDT). We'll be live very soon!
~ CLOSING KEYNOTE ~
[4:12pm] And that's a wrap for another terrific Summit. We'll see you all next year in Carlsbad, California!
[4:10pm] Rapoza puts it well: "Last year's Summit was in New Orleans. This year was Vegas. The last two Summits have been in party cities. Next year we're in a recovery city."
[4:09pm] The attendee with the chip wins a free registration to the 2017 Summit! The attendee with the envelope opens it and reads off the location of the 2017 Summit: It's the Omni La Costa Resort in Carlsbad, California!
[4:05pm] Tabitha Dubois and Josh Rapoza have an announcement: Check under your seats for an envelope or a gold chip! If you have either, come to the stage.
[4:01pm] Shook: "Every employee at a company is an expert in something. Nobody said this better than Martin Luther King Jr."
[3:57pm] Shook: We have to keep Lean WX in mind if we are to understand the work. Lean WX = Design of Work Experience. It's about learning through doing.
[3:53pm] Shook: "We need leaders to focus on the gemba. The work occurs at the gemba, and there's meaning to be found in the work."
[3:52pm] Shook: "How do we create organizations that learn to learn? Focus on the work. The learning is in the work."
[3:46pm] Shook: "I think a key concept to help us move forward in our organizations is the idea of failure vs. success. It's not whether you get knocked down, it's whether you get up. And it's not whether you fail, it's whether you learn."
[3:45pm] Shook: I loved Phase 2's concept of the "Golden Triangle." Such a great way to frame and support the work.
[3:38pm] Shook: "I don't recommend taking lean home, personally. Never heard of a divorce over hit, but there's definitely some tensions when one spouse tries to convince the other they're causing 'waste' in the home."
[3:30pm] John Shook takes the stage for the Summit sendoff.
~ LEARNING SESSION - BUILDING THE FIT ORGANIZATION ~
[2:46pm] Markovitz: And finally...a fit organization needs coaching. There's greater motivation, passion and intensity when the coach is around.
[2:43pm] Markovitz: Visual management is key to becoming fit too, to help you see what's happening at a glance.
[2:40pm] Markovitz: "SW gives you the freedom to act and keeps you from getting bogged down. Remember: choice is paralyzing."
[2:35pm] Markovitz: No company can become fit without standard work to follow. But remember - SW is NOT just for the front line. Every worker needs to know exactly what they're supposed to do.
[2:24pm] Markovitz: "Becoming fit requires thinking horizontally. Organize everything around your customer's specific needs."
[2:10pm] Markovitz: "You'll decrease costs by increasing the customer value."
[2:03pm] Markovitz: "Cost cutting will NOT make an organization fit - that's just shedding weight. And only 10% of cost-cutting programs yield results that can make them be considered 'effective.'"
[1:58pm] Markovitz just called for an activity break: Those who do NOT have suggestion cards at their organization must sketch out a design for them in the next six minutes. A lot of people are drawing.
[1:52pm] Watching a video about improvements made in a now-fit factory. The changes ranged from large notice boards to 5S-organized work stations...to table magnets to keep salt and pepper shakers from being knocked over. Common themes in this "fit" organization:
- Everyone was excited
- Everyone was involved
- Everyone benefitted
[1:41pm] Markovitz: Make both the improvements and the commitment to them very visible. And no suggestion boxes. You're just hiding people's ideas and denying them credit for their contributions. Better altenatives: Kaizen Wall of Fame, Idea Board with Post-its, etc.
[1:38pm] Markovitz: First step to building a fit organization is commiting to improvement. You can make getting fit one of your New Year's resolutions, but without commitment that's never going to happen.
[1:32pm] Dan: "How many people in this room are satisfied with their current organization's lean efforts?" One single, lonely hand went up.
[1:30pm] Dan Markovitz is in the room and starting off the session with a fitness video. Fitness video to start off a workshop about "fit" organizations. Very "fitting."
~ LEARNING SESSION - WHAT TO SOLVE NOW AND WHAT CAN WAIT ~
[12:05pm] Smalley: "There's never an "only way" to solve a problem - that "only way" is just the way you're most comfortable using."
[11:59am] Smalley: "To reach innovative solutions you need to be constantly challenging the system."
[11:53am] Smalley on Type 4 (Innovation Oriented): "It's critical. You can fix problems all day long but in end, companies survive over the long term by innovating."
[11:50am] Smalley: "The critical concept behind Type 3 is not what we can do - it's what we should do."
[11:43am] Type 2 vs. Type 3: both start with gaps from standard but...
- Type 2 = Gap caused by decline in performance
- Type 3 = Gap caused by raising the standards
[11:40am] Type 3 (Target Setting): Starting at the gap between "normal status" and "future state" and achieving a "target state."
[11:34am] 3 types of countermeasures in Type 2:
- Administration (ex: increasing inspection duties and other weak and temporary measures)
- Detection (ex: error proofing in the process to flag and stop a defect from moving downstream)
- Prevention (ex: creative usage of techniques to prevent defects from ocurring at all)
[11:18am] Smalley on Type 2 (Gap from Standard): "In many American companies, the habit when problems occur is to just hand it off to the next person. You NEED to be careful about that, because it can and will make your lead-time skyrocket."
[11:11am] Smalley: "The 4 Cs are less about documentation and more about discussion, thinking, rapid action, and followup. And when I say 'followup,' I mean in the next hour. Not tomorrow - this is about being quick."
[11:06am] Smalley on Type 1: You can solve problems rapidly with the 4 Cs:
[11:03am] Smalley on Type 1 (Troubleshooting): "There's always something immediate that you can do to fix the problem. It's not ideal, but sometimes you just have to troubleshoot on the spot without finding the root cause. A simple target vs. actual board is an example. It's not an A3, but it's active problem-solving."
[10:59am] The 4 Types of Problem Solving:
- Gap from Standard
- Target Setting
- Innovation Oriented
[10:57am] Smalley: "You don't need to have a problem to improve."
[10:53am] Smalley: "The period of Toyota that I'm most interested in is 1950-1973. It was the period when they developed their multitude of problem-solving techniques."
[10:46am] Art Smalley is at the podium and kicking off.
~ PLENARY - NATIONWIDE ~
[10:06am] Audience Question: Are your coaching efforts planned or opportunistic?
Vasudeva: "It's a combination of the two. Is it a departmental issue that needs a planned and scheduled session? Or did I just notice something on a gemba walk that just needs some in-the-moment, on-the-spot coaching?"
[10:03am] Audience Question: Nationwide is an enormous company. How do you share your visual management across locations?
Vasudeva: We use different techniques like sharing files and pictures in shared drives to ensure everyone working on a project has access to the same info.
[10:00am] Audience Question: Have you paired lean with Agile?
Vasudeva: Yes. Agile is helpful in IT but it doesn't include key lean concepts like standard work - we combined them to get the best of both worlds.
[9:58am] Vasudeva's closing thoughts:
- Change behaviors to change thinking.
- Measure the baseline productivity, quality, and labor costs.
- Lean sustainability requires a lean management system.
- It's not just about the work - it's about being able to continuously develop your capabilities
[9:51am] Vasudeva: Nationwide's lean management system has four tiers focused on building lean leaders:
- Vice President
[9:46am] Vasudeva: Lean has lots of complex systems and tools, but at their core they are very simple. If you practice lean every day, inside and outside the office, it'll be like second nature.
[9:42am] Vasudeva: At the beginning of our lean journey, we definitely did far more things wrong than we did right. But the important part? We learned something every single time. And it all paid off in the end.
[9:38am] Vasudeva: IT is crucial to effective operations. Nationwide spends over $1 billion on IT every year.
[9:37am] Guru Vasudeva, SVP and CIO of Nationwide takes the stage for his Plenary, "Purpose-Driven Lean."
~ PLENARY - PHASE 2 ~
[9:31am] Audience Question: Can you give an example of management accountability in the Golden Triangle?
Prime: Our kamishibai boards and team huddles are probably the best examples we have. Very effective.
[9:28am] Audience Question: What was the biggest challenge of your journey?
Prime: The learning phase, especially capturing the hearts and minds of our team.
[9:22am] Important elements of Phase 2's lean journey:
- Hearts, minds and partnerships
- The "Burning Platform" Philosophy
- Tools vs. Systems
- "Golden Triangle" - "What's next? How do we maintain our gains?"
[9:15am] Phase 2's lean journey started from the ground up. They made the work visible everywhere they could think of, created better systems to identify abnormalities, and identified sources of waste. The results spoke for themselves.
[9:12am] Lucky break - Medtronic offered to send a lean manager to help Phase 2 achieve these goals.
[9:10am] In 2011, Phase 2 almost lost its biggest customer and to find a way to increase capacity by 150% and cut costs by HALF.
[9:06am] Adam Prime takes the stage.
~ MORNING KICKOFF ~
[9:05am] Reich welcomes our first Plenary speaker to the stage: Adam Prime, President of Phase 2 Medical Device Manufacturing.
[8:58am] Reich: "We're about to publish a new book to help leaders solve problems from the bottom up - Managing on Purpose. It will help align culture to purpose, and the work to people development."
[8:52am] The 5 Myths of Strategy Execution:
[8:45am] Reich: We surveyed the audience to find our their biggest lean challenge. And the most common challenge by far was "managerial behavior."
[8:40am] Reich to audience: "Did everyone have a good time yesterday?" Audience response: [Raucous applause]
[8:38am] LEI Chief Operating Officer Mark Reich ascends to the stage for his kickoff speech, "Managing on Purpose."
[8:34am] Rapoza: Help us pick the location of the 2018 Summit. Our possibilities right now are: San Antonio, Orlando, Nashville, and Puerto Rico!
[8:30am] Welcome to Day 2! Kicking off with Josh Rapoza and Tabitha Dubois again, right on time!