HOW TO MANAGE YOUR LEAN INITIATIVE

Last month we introduced the argument that for Lean and other improvement efforts to be successful, we need a highly structured, disciplined approach to managing the implementation process.We suggested that senior management must be fully committed to run the program "top down"?that their vision and determination should be rooted in a clear understanding of the key principles of Lean and other World Class improvement strategies. We then outlined an approach to organizing for success and discussed the make-up and the role of the World Class Programs Steering Team.

Now we continue our discussion of how to run a successful program by first addressing the qualifications and role of the program coordinator, then discussing the role of outside resources, with a brief primer on selecting a consultant.

To restate our basic purpose: we want to provide a specific, proven approach to launching and managing a highly effective Lean initiative.

THE WORLD CLASS PROGRAMS COORDINATOR
The title attached to the coordination function that we discuss here is completely discretionary. "Lean Champion", "Continuous Improvement Manager", and others are quite common. The important thing is that the function is understood and well executed.

Qualifications of the Coordinator. We have seen coordinators drawn from many different functions, but those who have a good technical understanding of the company?s products and basic business processes seem to be most effective. Manufacturing and industrial engineers, quality engineers, product engineers and production supervisors do well in the role provided they have or can develop the necessary "people skills." Some human resource professionals quickly learn the training and facilitation aspects of the job, but are rarely able to provide hands on technical support to project teams. Some companies are successful in pairing a great human resource person with a good technical expert to achieve the desired outcomes.
The selection process should be guided by the following criteria:

1. A bright, enthusiastic person with a keen interest in Lean and other continuous improvement tools.

2. Able and willing to learn quickly the basic tenets of Lean and other World Class Enterprise (WCE) improvement strategies.

3. Ability to work comfortably at every level of the organization.

4. Able to persuade others and "sell" ideas and action plans without the benefit of formal authority.

5. Must learn to transfer knowledge and drive good decisions through skillful training and facilitation.

6. Be able to support project team efforts with hands-on technical support as needed.

This position is often used to develop promising, high potential employees. It should never be filled with a marginal individual who has been "unloaded" from another function. Placing a high caliber person in this role is another way in which leaders demonstrate their commitment to achieving excellence.

PICKING A WINNER
The coordinator position is often used to develop promising, high potential employees. It should never be filled with a marginal individual who has been "unloaded" from another function.

Role of the Coordinator. The coordinator will perform the following activities on a regular basis:

1. Participate as a member of the Steering Team

2. Coordinate with Steering Team members

3. Serve as a support and resource person to managers, supervisors, team leaders and team members

4. Report project status and problem areas to facilitate corrective action when needed

5. Communicate scheduled budget performance to the Steering Team

6. Establish an on-going education program in collaboration with the Steering Team

7. Support Kaizen and Project Teams as follows:

? Coordinate schedules and activities of consulting resources

? Ensure that project teams are trained in the disciplines need to execute their projects

? Ensure that teams have fully developed project plans, including problem statement, objectives, work steps and schedules

? Monitor progress of the teams

? Support the teams in using World Class Enterprise (WCE) technology, i.e., Lean Business Practices, Six Sigma quality improvement tools, team development techniques, etc.

? Aid the team leaders in meeting preparations

? Critique effectiveness of team meetings

? Observe group processes and work with team leaders to design and implement activities that contribute to team health and effectiveness

? Provide a link between the leaders of the project teams and the Steering Team

? Keep up-to-date on WCE know-how

? Instruct in general problem solving techniques

? Facilitate some Kaizen events

? Prepare and deliver training on selected topics

? Assist in preparing team report-outs

? Recommend the use of staff specialists or experts to team leaders

? Cross-communicate success and experience (best practices) between project teams

The coordinator will need time and training to become proficient in performing the functions outlined above. The Steering Team, project team leaders and project teams will also have to learn how to carry out their respective roles. Especially in the early going, no one will have the experience necessary to teach others how to make effective contributions that are necessary to organize and drive an improvement process. With this in mind, it is often (if not always) advisable to bring in outside expertise to help jump-start the program.

OUTSIDE RESOURCES
Perhaps the greatest threat to a fledgling Lean implementation is one or more false starts. A false start can occur for a host of reasons ranging from poor project selection to inadequate train ing to management inattention. The result is always the same: time and money is allocated to the effort and there are no significant gains. Everyone loses interest and the program dies.
Herein lies the wisdom and justification for using a consulting resource and other outside specialists to help in getting started. Your consultants and specialists will bring these benefits to the table:

1. Most importantly, they will accelerate your journey to World Class performance by building a Lean/WCE knowledge base at a faster rate, preventing missteps and helping to select the right projects.

2. They will bring specific expertise, most of which will be passed on to your people by training internal trainers, mentoring the Steering Team and the development of the coordinator.

3. Their time, energy and objectivity will be focused exclusively on the Lean implementation.

4. The right firm will bring a solid mix of technical skill, training capability and business acumen that is rarely found in a company focused on day-to-day operations.

Obviously, the selection of outside resources must be done carefully. As with any profession, there are gradations of skill and ability; and there are a large number of "Lean" consulting firms. If you know of a company who has a successful Lean implementation underway, you might begin by asking them about the consultant they used to get started.

Another approach is to do a web search under "Lean Implementation Consultants." Pick 6-8 firms, study their web sites and request their literature packets. Narrow the field to 3-4 firms and have them come in for a preliminary visit.

Try to give each firm the same set of objectives or success criteria and ask for a proposal. Ask them to deliver the proposal in person, as it is almost impossible to get a good understanding of the proposal and gage the intangible factors in the consultant/client relationship without a face-to-face meeting. There should be no cost for these preliminary steps.

As you evaluate proposals, look for these elements:

1. A good understanding of your business, your opportunities and problems

2. An assessment of where you stand with respect to World Class performance standards

3. A clear set of objectives that address both the need to jump start the Lean program and to address your unique set of problems and opportunities

4. A detailed approach that states clearly how you will work with the consultant to execute the approach and achieve the objectives

5. A statement of how the program will be organized

6. A program schedule

7. Billing rates and total project costs that fit your budget

8. A summary of deliverables and benefits

9. A schedule of not-to-exceed costs (fees and expenses)

10. Resumes

11. References

If the proposal is too complex or confusing, move on to the next candidate. Look for logic and clear thinking based on experience. Resumes should show good academic preparation and strong industrial backgrounds to complement consulting experience.

CHECK REFERENCES! Ask if the reference believes that he got his money back (and then some) from the engagement. Try to visit a couple of the references if you can. Ask who the top notch people are and make sure that they will be assigned to your program.

In summary, your selection process should provide the leadership of the company with a collective confidence in the firm you choose. The proposal review and follow-up should build a high level of mutual trust, even before the engagement begins. If this trust and confidence are absent or in question, keep looking.

Other resources. In addition to your primary consulting resource, you will probably need training specialists and technical (process content) experts from time to time. Many of the problems identified with Lean and Six Sigma tools have root causes that are embedded in basic process technology.

Eliminating or controlling these causal factors will sometimes require expertise that does not reside in the company. Local colleges and technical schools often have people with the required know-how to address a problem or to provide focused training. Equipment and tooling suppliers are also a rich source of technical help and learning. Your consultant will often be able to help find the right resources.

CONCLUSION
Amidst the flurry of activities associated with running a business, the added work required to properly launch and manage a Lean/WCE program may seem formidable, and our recommendations for structuring and disciplining the process may look like "overkill." Yet our 25 years of experience suggests that a full-up effort pays off handsomely, and shortcuts are treacherous and often fatal.
Next month we will conclude our series by examining project selection, project management and project team functions.

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Dave Dixon is the executive vice president of Technical Change Associates, Inc. and a registered professional engineer with more than 35 years of experience in lean manufacturing, Six Sigma and other improvement initiatives. For more information, call 801-621-8980 or visit www.technicalchange.com.