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Welcome back, everybody, to another episode of the Allied Advisors Podcast, the podcast for mid-market manufacturers looking to scale operations and improve that ever-important bottom line.
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I'm your host, Justin Goathi, and today's episode is a special one because it marks our 25th episode.
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That's 25 conversations about what it really takes to build operations that run better.
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And I'm grateful to everyone who's been along for the ride.
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To mark the milestone, I want to come back to the heart of what we do here at Allied Advisors and walk you through the systemic improvement cycle, our framework for turning strategy into structured, sustainable improvement that outlasts any one person.
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From value stream mapping and the KPI tree to Project A3s and the plan do check act discipline that ties it all together.
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Whether you're just starting your lean journey or fighting to make hard won games stick, this one's built to give you a clear, repeatable path forward.
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Let's get into it.
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All right.
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Well, and before we get into it, I have got to pull up my presentation.
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So give me just one second.
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All right, here you go, guys.
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The systemic improvement cycle.
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How do we turn strategy into structured, sustainable improvement?
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Well, at the heart of it, all, I mean, really at the heart of lean, it's all comes down to a plan do check act cycle, PDCA, right?
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The goal is to do PDCA cycles at ever tightening frequencies, right?
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So we're doing it today at a 30,000 foot view.
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Where are we going as a business?
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Where are we trying to go as an organization?
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And the goal is to do that at ever lower frequencies.
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So 30,000 feet, then we move into monthly reviews, then we go down to weekly, daily, and even down to the shift level, right?
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Where we're checking to make sure that the plans we're putting in place are having the desired impact.
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If we see that they're not, we're reacting and using that as input to help us make better plans, right?
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That's all we're trying to do here.
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PDCA.
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Okay, and and this is what that looks like.
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Oh, you know what?
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Let me back up.
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So for those of you that are listening at home, by all means, please continue to listen to the to the audio version of this podcast.
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But if you can, it would be better if you could check this one out on YouTube because I have obviously some slides that I'm presenting, and this will make a lot more sense if you're following along with the slides rather than just listening to me talk.
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But if you can't, I will do my best to try to illustrate what we're looking at so that you can also understand the conversation.
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All right, so the slide on the screen shows the visual representation of our systemic improvement cycle framework.
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It starts in the top left corner with our vision.
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This is where we come on site with your team and we help you set the vision for where we're going in the next 90 days.
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All of these cycles, these systemic improvement cycles, they're all done on 90-day increments.
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And the reason for that is, you know, if you get assigned a project and it's not due until a year from now, well, what's the first thing you're gonna do?
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Nothing.
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You're gonna do nothing.
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You're gonna go back to your desk, sit down, and work on something else because that project's not due for another year.
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I don't need to do anything with that right now.
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So to avoid that, we want to break these projects down into 90-day cycles so that you always keep that tension and you always have to show progress week over week.
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So let's just all the line, all of this is done in a three-month on a three-month interval.
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And we start with setting the vision.
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So, how do we do that?
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Well, the first thing we're gonna do is we're gonna talk about our focus topics.
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Where are we focused over the next 90 days?
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You know, focus topics break down into three categories business requirements, right?
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What's the business telling us?
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Do we need to expand into a new facility?
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Do we need to start off a new product line, right?
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Where are we going from a business standpoint?
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The second thing is market requirements.
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Are orders shifting?
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Are they going up?
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Are they going down?
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Are they changing from one product line to the next?
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Right?
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What's the market telling us?
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Where are we, where's the market pushing us?
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And then finally, what's the vision?
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Are we going to RFID or autonomous guided vehicles?
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Are we trying to figure out how we're going to implement AI in the at the administrative side of the business or on the shop floor, right?
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What's the vision?
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Where are we trying to go?
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Maybe we're we're trying to do a lean uh transformation and we want standard work for all of our processes.
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Whatever it is, we want to outline that.
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We want to all align on what the vision is for the company.
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The next thing is we're going to talk about the timeline.
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When we're on site setting this vision, we're going to set a future state, right?
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We're going to design a value stream for some point out in the future.
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Where is that point?
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Is it a year from now?
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Is it nine months from now?
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Is it 18 months from now?
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We need to decide on that.
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Typically, I recommend to my clients, let's do it for a year from now.
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Do it for 12 months.
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Unless there's something coming up where, hey, we're we're starting up this new product line and it's going to ramp up 18 months from now.
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You know, maybe we'll design it for that 18-month look.
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But, you know, barring any extenuating circumstances like that, we really want to try to get it one year out, right?
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12 months from now, how do we want this value stream to look?
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So once we've kind of figured out the focus topics, the timeline, we're going to come on site and we're going to do a value stream map.
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We're going to map out the current state.
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How does material and information flow from the receiving dock through the value stream out the door to your customer?
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We're going to walk it together as a group.
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We're going to be looking for the eight forms of waste, right?
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We're not going to go into that right now, but we're as we're walking the value stream, we're going to be looking for, you know, excess motion, waiting, unutilized talent.
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We're going to be laser focused on this waste as we're walking the value stream.
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Now, one other caveat, not a caveat, just one thing to know.
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We're going to walk it starting in shipping and we're going to walk it backwards to receiving.
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So why do you do that?
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Why would you walk it backwards instead of, you know, from receiving to shipping?
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You know, it's the same reason that the cops ask you to say your ABCs backwards if they pull you over and suspect you may have had too many to drink.
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It's not that you don't know your ABCs.
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Of course you know your ABCs.
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But when you get asked to say them backwards, you have to think about it.
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You know, A we say ZYX, V U T.
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It takes you a second to process that.
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Same thing when we're walking the value stream out.
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We want to start at the end and walk it backwards so that we have to think, how do parts get here?
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Oh, that's right.
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They're coming from X process, whatever.
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So we're going to walk it backwards, we're going to draw it out, we're going to map out the waste.
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Then the next day we're going to come in and we're going to say, okay, here's where we are.
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Here are the focus topics.
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What do we need this value stream map to look like, you know, in that time, that timeline we discussed, that year look, that 12 months from now.
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And we're going to draw out that future state map.
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Then once we have our current state, once we have our future state, we're going to start putting together the project roadmap.
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And a project roadmap, and we'll talk about this some more detail.
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It's just a list of projects, but we're going to list out those projects.
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We're going to come up with project A3s and we'll review that in more detail in just a second.
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Bear with me.
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And that's going to be it.
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So those two days, we're going to set the current state map.
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We're going to define what the future state looks like.
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And then we're going to define what projects we're going to work on in the next 90 days.
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And for each of those projects, we're going to create a project A3, which is a project management tool.
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After that's complete, we're going to move into our weekly roadmap cadence.
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So every week we're going to meet as a team, and the project owners are going to pull up those project A3s and give us an update.
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This is really where the accountability is built.
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The problem with most continuous improvement systems is they lack an accountability tool.
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All they provide is a wish list.
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Hey, I want to do this, but they don't give you the structure that you need to actually get those things across the finish line.
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That structure is the roadmap meetings, those weekly roadmap meetings.
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That's where we build in that accountability.
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Because every week these project owners have to show up and they have to give us an update.
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They either made progress or they did not make progress.
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And if they did not make progress, why?
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And we're going to have those conversations.
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Maybe there's a roadblock that needs to be removed.
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Maybe they're overloaded with some other things.
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Maybe they don't have the skill sets that we thought they did to get these projects completed.
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That happens.
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So let's assume it all goes well, the projects get implemented.
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The next phase we move into is in this bottom right corner, which is the process validation phase.
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That's where we're actually going out there and validating that the process is working the way we intended it to work, right?
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You can see this.
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We talk about this in a little more detail on the daily leadership routine podcast that I did a few months ago.
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So if you want more information on how we do that process validation, you can reach out to me via the website.
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I'll link to it in the show notes.
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Or you could check out that earlier podcast on the daily leadership routine.
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Either way, I'm happy to help, happy to provide more information.
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Give me a call.
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Would love to talk to you.
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But regardless, process validation.
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We're out there, we're validating that the improvement KPI that we determined when we are creating that project A3, we're validating that we are within the stability criteria, that we are hitting our targets there.
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Once we've done that and we've proved that yes, the process is working the way that the standard says it should work, and we're getting the results that we thought we would get, then we move into our daily management phase.
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Hey, okay, how are we going to monitor this to ensure that this process stays within stability?
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And if it deviates, what's our standard reaction to get it back to stability?
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And if we continue to see deviations, how do we use that as an input into the next system CIP cycle, right?
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Continuous improvement.
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How do we use that into the next value stream mapping, value stream design workshop?
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So again, PDCA, plan, do, check, act.
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All in a continuous loop.
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All right.
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And again, if you have any questions on this, please, please, please, please, please don't hesitate.
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Give me a call, send me an email.
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Would love to talk you through it.
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All right.
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So it sounds pretty easy.
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All right.
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I don't know if it sounds easy, but it sounds pretty straightforward.
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So why doesn't this work?
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Why do so many companies struggle with this?
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And and and look, it's not me saying that they struggle with it.
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You know, HBR, Kathleen and Norton, McKenzie, these are all huge, you know, consulting firms or industry experts that have also came to the same conclusion that most companies that try to do continuous improvement, they never, it never really becomes a part of their culture.
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It never lasts.
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It always feels like a fad, you know, something that um you know just never got there.
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And the reason for that, the reason that so many of these these initiatives fail is because they lack the four must-haves for any CI system.
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And the first must-have is a way of deriving projects, right?
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And that's what we're doing here with the value stream mapping, value stream design workshop.
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That is our mode of making sure that we're working on the right things, right?
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I'm gonna say that again.
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We can work on a million things.
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How do we know we're working on the right things?
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We know because we have the conversations every 90 days where we're talking about the focus topics.
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What's the business doing?
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What's the market doing?
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What's the vision?
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And there's some other tools that we're gonna talk about here in just a second.
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Number one being a KPI tree, but we've got to have a way of monitoring that we're working on the right things.
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Next thing is we've got to have a way of managing that execution, like we talked about, those weekly roadmap meetings.
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This is really where the rubber meets the road.
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This is where we live and die, right here, is in these weekly roadmap meetings.
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If you're not having that, how are you making sure that your team is delivering the results that you think they're delivering?
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And then finally, you got to have a way to validate the results and to sustain those standards.
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If you don't have those last two things, what's gonna happen is you're gonna make a change, you're gonna train folks, but then you're gonna walk out there three weeks later and it's like nothing ever happened because you didn't take the time to validate the standard, and you don't have a way to make sure that people are gonna use that standard moving into the future.
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You gotta do it.
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You really, it's non-negotiable.
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If you don't do these things, it becomes a wish list.
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It's not a meaningful program.
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All right, so where this cycle fits, you know, you've got your strategy.
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Your strategy is your, you know, what's a year, hey, we're setting the strategy, what are we trying to do this year?
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This systemic improvement cycle sits just below that.
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It's more the tactical piece of the strategy.
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Hey, here's where we would like to go, here's what we would like to accomplish.
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The systemic improvement cycle really kind of helps you figure out how do we do that?
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How do we get there?
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How do we drive these initiatives?
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So many times I see companies that have a strategy, and because they don't have a structure for achieving that strategy, it's it's hit or miss as to what gets what actually gets done.
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And it really comes down to in the in those instances, who's driving it, right?
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Who's on the team, whose pet project is it, as opposed to, hey, it all gets done because we have a systematic, structured way of approaching it.
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Um, once, you know, once we get through this, we're actually doing the implementation phase.
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That's where we get into that daily leadership routine, which again, I would encourage you to check out in the earlier version or in the earlier podcast that we released.
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I think it was back in April or May.
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Um, I I think that's I think it's very valuable material.
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If you haven't seen it, you should.
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All right.
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So, like we talked about, there's three components that we come up with when we're on site doing the systemic improvement cycle, that workshop.
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First one is the value stream map.
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We're gonna do the value stream map, current state and future state.
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We're gonna develop that project roadmap.
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Each project in that project roadmap has a few critical elements defined.
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Uh, those elements are the key performance results, right?
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What's the high level uh KPI that we're trying to attack, right?
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The key performance result, the highest level.
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The next one is uh the department KPIs.
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And then finally, it's the process KPIs.
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So the process KPIs, you can think of that as something on the shop floor that is a that is observable.
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I can walk out there and see, hey, are they following the process?
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Are they following the standard?
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Yes or no, right?
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That's the process KPI.
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Then if they're following that pro if they're following that standard and we're getting the desired results, that we're meeting that process KPI target, the department KPI is what's the next level KPI up in the hierarchy that we expect to impact, right?
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And we'll talk about that just a second, a little bit more detail.
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But but we're gonna define that when we're completing that project roadmap.
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Uh, and then the next thing we're gonna talk about is the project day three.
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I think a project A3 is such a valuable tool.
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It's a one-page document that defines the scope, the goals, current future state, um, the the metrics for each project, right?
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It really it's it's the Bible for every project, essentially.
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Okay, so the current state value stream map.
00:16:36.480 --> 00:16:41.360
So we want to map when we're out there, how does material and information flow end to end?
00:16:41.519 --> 00:16:45.360
That includes all the process steps, all the cycle times, right?
00:16:45.440 --> 00:16:48.320
How does material get from one place to another?
00:16:48.480 --> 00:16:50.399
Is it via a common bottle pool system?
00:16:50.559 --> 00:16:57.679
Is it a look and see, right, where somebody's going to check the inventory levels and then they're making a decision on what needs to get delivered?
00:16:57.840 --> 00:16:58.320
All of that.
00:16:58.399 --> 00:17:08.640
We want to map all of that onto the value stream map along with observed waste, waiting time, unnecessary motions, unnecessary transportation.
00:17:08.720 --> 00:17:13.519
We want to call all of that out in Starburst on the value stream map so that we can see it.
00:17:13.680 --> 00:17:14.799
Anyone can see it.
00:17:15.039 --> 00:17:23.920
Um once we're done, we want to use the inventory that we count while we're out there on the floor to calculate the lead time.
00:17:24.160 --> 00:17:28.160
How much material do we have in the pipeline?
00:17:28.240 --> 00:17:28.880
Is it too much?
00:17:29.039 --> 00:17:29.680
Is it too little?
00:17:29.839 --> 00:17:34.160
Do we have it in the right places along the value stream map?
00:17:34.400 --> 00:17:34.720
Right.
00:17:34.880 --> 00:17:36.559
And then the KPIs bisection.
00:17:36.640 --> 00:17:41.039
What are how are we doing today in quality, cost, delivery, and safety?
00:17:41.279 --> 00:17:42.640
Are we hitting those targets?
00:17:42.799 --> 00:17:52.720
We want to make sure that we're looking at that and and and in a good way, or or maybe we're not in a good way, and we need to we need to focus our attention.
00:17:53.119 --> 00:18:05.039
But the big thing about doing a current state map is it gets you out of the office and onto the shop floor where the action is, where the problems are, and most importantly, where the solution lives.
00:18:05.599 --> 00:18:14.799
Go into the gimma, freight the chain to the desk, getting out there on the shop floor with the people, that's where real change happens in manufacturing.
00:18:14.960 --> 00:18:19.279
Okay, so then once we've got that current state map, then we're gonna move into the value stream design.
00:18:19.359 --> 00:18:22.480
How are we gonna change this in the next 12 months?
00:18:22.640 --> 00:18:25.920
And we want to think through things like how does material flow?
00:18:26.160 --> 00:18:31.920
Is it pulled through the value stream where somebody's actually tried to pull things through to hit a due date?
00:18:32.079 --> 00:18:37.519
Or is, you know, I'm sorry, pushed, is it pushed through the value stream where we're trying to push things through to hit a due date?
00:18:37.680 --> 00:18:41.680
Or is it pulled where we're responding to customer behaviors?
00:18:41.839 --> 00:18:47.359
We've set supermarkets in place, and when a customer pulls something out of that supermarket, we're replenishing it.
00:18:47.519 --> 00:18:50.319
Sorry, I got push and pull mixed up there for a second.
00:18:50.559 --> 00:18:54.480
Push is when you're pushing it through, trying to hit a due date at the end.
00:18:54.720 --> 00:18:59.759
Pull is when you're reacting to customer behaviors and you're just trying to replenish a supermarket.
00:18:59.920 --> 00:19:04.559
If you get really good, you can go, you can try to do production leveling.
00:19:04.799 --> 00:19:12.000
That is, you know, that's what every lead organization is trying to get to eventually, is where you're doing every part, every interval.
00:19:12.160 --> 00:19:25.200
You have a level schedule where you level out the workload, and then you're mixing in your exotic components as you have time based on your capacity models, which include things like changeover time, cycle time, tack time.
00:19:25.279 --> 00:19:30.559
And again, there's a lot of details we can get into here, but that's the target that we're trying to get to.
00:19:30.720 --> 00:19:32.400
Can we get to that level schedule?
00:19:32.559 --> 00:19:34.960
If we can't, what do we need to do to get to it?
00:19:35.039 --> 00:19:37.680
Maybe there's some supermarkets we got to implement first.
00:19:37.920 --> 00:19:40.160
Maybe there's some work standards we got to implement.
00:19:40.240 --> 00:19:44.400
Maybe there's a you know, a single-minute exchange of dyes program we've got to stand up.
00:19:44.559 --> 00:19:48.160
But eventually we want to be able to level out that workload, right?
00:19:48.240 --> 00:19:54.400
And like I said, you do that through considering the tag time, changeovers, cycle time.
00:19:54.720 --> 00:19:56.640
And we want to try to make all this visual.
00:19:56.799 --> 00:20:02.400
How can we make this visual on the shop floor so that anybody can walk up and immediately see the status?
00:20:02.559 --> 00:20:03.200
Are we ahead?
00:20:03.279 --> 00:20:04.000
Are we behind?
00:20:04.160 --> 00:20:05.599
Are we winning or are we losing?
00:20:05.759 --> 00:20:10.480
Okay, so like we talked about, how do we run that workshop?
00:20:10.559 --> 00:20:12.079
How do we run those two days?
00:20:12.240 --> 00:20:20.000
We start, we walk the value stream, we design the current state, we build the future state, and then we start talking through those that roadmap and those project A3s.
00:20:20.079 --> 00:20:22.240
All right, so this is an example of a roadmap.
00:20:22.400 --> 00:20:32.319
I'm sorry for those of you that are listening and you can't see this, but you can see each one of these projects is listed here on the on the roadmap.
00:20:32.400 --> 00:20:39.759
Uh, it talks about what value stream we're working on, what is it a cost, quality, safety, or delivery uh topic?
00:20:40.000 --> 00:20:41.119
You know, why are we working on it?
00:20:41.200 --> 00:20:42.480
Are we trying to impact cost?
00:20:42.640 --> 00:20:44.480
Are we trying to improve safety, right?
00:20:44.640 --> 00:20:46.960
High level, what are we, what are we really focused on here?
00:20:47.119 --> 00:20:48.720
What's the activity title?
00:20:48.880 --> 00:20:51.039
When does the when does the project start?
00:20:51.200 --> 00:20:53.200
When is it supposed to be completed by?
00:20:53.359 --> 00:20:56.480
What's the KPR that we're trying to impact?
00:20:57.119 --> 00:20:57.359
Right.
00:20:57.519 --> 00:21:02.240
And then getting into the process KPIs and the department KPIs that we discussed.
00:21:02.400 --> 00:21:08.079
Another thing that we're gonna look at is the stability metrics for those process KPIs.
00:21:08.319 --> 00:21:11.680
What are we trying to check and what are we gonna accept?
00:21:11.839 --> 00:21:17.680
Right, where do those metrics need to be for us to feel like yes, this is working?
00:21:17.839 --> 00:21:21.359
We want to have that discussion and we want to define that before we do the project.
00:21:21.519 --> 00:21:23.759
We don't want to try to do it after the fact.
00:21:24.079 --> 00:21:29.200
So this slide just details what belongs on every roadmap, and it's just what we just discussed.
00:21:29.359 --> 00:21:31.359
The project name, the owner.
00:21:31.440 --> 00:21:38.559
We we haven't talked about that, but every project needs an owner and it needs to have one name, not a department, not three names, one person.
00:21:38.720 --> 00:21:44.720
Now, that person can have a project team that supports them, but it should be one person responsible for that project.
00:21:44.960 --> 00:21:49.680
What are the KPIs, KPRs, department KPIs, process KPIs?
00:21:50.000 --> 00:21:54.160
What standard are we going to be changing or implementing?
00:21:54.559 --> 00:21:56.319
Start and end dates of that project.
00:21:56.400 --> 00:21:58.240
And finally, what's the stability criteria?
00:21:58.400 --> 00:21:59.519
What is the target for that?
00:22:00.160 --> 00:22:02.319
Process KPI that we're trying to hit.
00:22:02.559 --> 00:22:02.880
Okay.
00:22:03.279 --> 00:22:12.559
And maybe, arguably, possibly, one of the most important tools in anybody's lean toolbox is a KPI tree.
00:22:12.880 --> 00:22:19.680
And if you can't see this image because you're listening to the podcast, whenever, you know, if you're in your car, don't do it.
00:22:19.839 --> 00:22:25.680
But when you get stopped, go to YouTube, download this file.
00:22:26.000 --> 00:22:34.160
I will put it in the, I'll put a link to it in the show notes and look at this KPI tree because this is the important piece that you need.
00:22:34.319 --> 00:22:45.200
A KPI tree shows the hierarchy going down from profit all the way down to process KPIs, which are the behaviors on the shop floor that impact the profit.
00:22:45.359 --> 00:22:49.599
And you can see there's a ton of metrics in this tiny little example.
00:22:49.759 --> 00:22:53.920
Now, people say, well, Justin, do we need to have data for all of these metrics?
00:22:54.240 --> 00:22:55.920
Well, not necessarily.
00:22:56.079 --> 00:22:59.920
You need to have data for the metrics that you're going to use to manage your business, right?
00:23:00.000 --> 00:23:03.039
You're going to need the data for the key performance results.
00:23:03.200 --> 00:23:13.440
Obviously, you got your profit data, but you're going to need key performance results like zero mileage defects, on-time delivery, um OEE, right?
00:23:13.599 --> 00:23:14.880
We want to have data for that.
00:23:15.039 --> 00:23:28.720
And then the the KPIs underneath those that go into those metrics, you're going to need that data because, for example, if I miss my OEE target, why did I miss my OEE target?
00:23:29.119 --> 00:23:30.000
Was it quality?
00:23:30.160 --> 00:23:31.039
Did I have bad quality?
00:23:31.119 --> 00:23:32.640
Did I do I need to go look at that?
00:23:32.799 --> 00:23:35.039
Is it am I missing my cycle time?
00:23:35.200 --> 00:23:37.279
Uh is cycle time a problem?
00:23:37.440 --> 00:23:39.440
Is my plan operating time not enough?
00:23:39.519 --> 00:23:41.200
Do we need to look at a different shift model?
00:23:41.359 --> 00:23:51.200
If I don't have that data available, how do I know what lever to pull to get us back to target, to get us back to those goals?
00:23:51.519 --> 00:24:01.839
You know, somebody asked me one time, Justin, I need you to lay out a roadmap to figure out how we're going to add value to this company.
00:24:02.000 --> 00:24:04.480
And I told him, you know, I just met them.
00:24:04.559 --> 00:24:05.599
I didn't know anything about their company.
00:24:05.680 --> 00:24:07.279
I said, well, that would be difficult.
00:24:07.440 --> 00:24:10.799
I can't tell you exactly what to do for this company because I don't know your company.
00:24:10.880 --> 00:24:17.279
But I can tell you this if you've got a KPI tree that looks like this, you're off to a pretty good start, right?
00:24:17.440 --> 00:24:25.200
So for those of you that can't see this, this KPI tree shows each of these metrics along with actual data.
00:24:25.359 --> 00:24:26.400
What's the target?
00:24:26.480 --> 00:24:28.319
And then what's the what's the status?
00:24:28.480 --> 00:24:30.480
Did I hit my target or did I miss my target?
00:24:30.640 --> 00:24:32.079
If I missed it, it's red.
00:24:32.240 --> 00:24:33.759
If I hit it, it's green.
00:24:34.079 --> 00:24:39.599
So in this example, um, you know, indirect productivity is green.
00:24:39.759 --> 00:24:45.119
So do I need to go, do I need to go do a lot of work on indirect productivity?
00:24:45.359 --> 00:24:46.720
No, because we're green.
00:24:46.799 --> 00:24:48.160
I don't need to worry about it.
00:24:48.319 --> 00:24:50.240
Uh direct productivity is red.
00:24:50.400 --> 00:24:52.480
So do I want to look at direct productivity?
00:24:52.640 --> 00:24:53.039
Yeah.
00:24:53.200 --> 00:24:55.519
Yeah, I should look at that because I'm missing my target.
00:24:55.599 --> 00:24:57.119
Well, why am I missing my target?
00:24:57.279 --> 00:24:59.440
Or is it an output problem?
00:25:00.079 --> 00:25:01.599
No, my output's good.
00:25:01.680 --> 00:25:10.240
I'm hitting my target on the output in terms of pieces off the end of the line, but my operator working time, I'm working too many hours.
00:25:10.400 --> 00:25:12.880
I'm using too many heads to get to that output.
00:25:12.960 --> 00:25:15.599
So I need to focus on pieces per hour.
00:25:15.759 --> 00:25:19.440
How do I get more pieces off with less manpower?
00:25:19.599 --> 00:25:23.440
Where how can I make my resources more efficient?
00:25:23.599 --> 00:25:27.039
That's where I need to focus my attention.
00:25:27.359 --> 00:25:36.400
So, anyway, this gives you a really good view on what you need to do uh to get to to achieve those business targets.
00:25:36.480 --> 00:25:41.920
If you have a KPI, you are so far ahead of most of the folks.
00:25:42.079 --> 00:25:47.759
All right, so project A3, you know, this is that project management tool I was telling you about that's so critical.
00:25:48.160 --> 00:25:51.359
What are the hallmarks of a good project A3?
00:25:51.599 --> 00:25:54.640
Well, number one, you got to have a background business case.
00:25:54.799 --> 00:25:56.240
Why are we working on this?
00:25:56.480 --> 00:26:00.319
And on the document, here's an example of the document.
00:26:01.119 --> 00:26:05.359
Some people like to write a paragraph or paragraphs in this section.
00:26:05.519 --> 00:26:06.799
And that's fine.
00:26:07.119 --> 00:26:09.119
However, nobody's gonna read it.
00:26:09.359 --> 00:26:20.799
If you want people to actually read your document, you need to use charts and data because it tells a story much quicker and much, much easier than a paragraph, right?
00:26:20.880 --> 00:26:24.240
So the more charts and data you can use, the better off you're gonna be.
00:26:24.559 --> 00:26:27.839
After that, we need to have our current state.
00:26:28.000 --> 00:26:29.359
How do things work today?
00:26:29.519 --> 00:26:32.000
A value stream map is a great way to show this.
00:26:32.160 --> 00:26:34.640
Pictures, another great way to show this.
00:26:34.960 --> 00:26:37.920
Show the process as as well as you can.
00:26:38.000 --> 00:26:40.559
And then you can describe it using bullet points.
00:26:40.799 --> 00:26:42.559
But what's the current state?
00:26:42.799 --> 00:26:45.039
Next, we've got the future state.
00:26:45.119 --> 00:26:46.799
How do we want it to work in the future?
00:26:46.880 --> 00:26:50.720
Again, another value stream design is a great, great thing here.
00:26:50.960 --> 00:27:01.359
You know, if as you go through the project, if you can get some pictures to put in the future state and show what the intended result is, that's another great thing to have.
00:27:02.400 --> 00:27:04.720
Uh, and then next is the approach.
00:27:04.880 --> 00:27:11.920
So, what are the steps that I need to complete to be able to say that, you know, this project is done, right?
00:27:12.079 --> 00:27:14.799
I need to do A and then B and then C and then D.
00:27:14.960 --> 00:27:17.680
Who's gonna do each of those steps and what's the due date?
00:27:17.759 --> 00:27:19.440
By when will it be complete?
00:27:19.759 --> 00:27:26.799
This is the most important part of any project A3 because this is where we spend most of our time in those weekly roadmap meetings.
00:27:26.880 --> 00:27:30.079
I'm gonna pull up this approach section and then we're gonna walk through it.
00:27:30.240 --> 00:27:32.079
I'm gonna say, hey, this is due next week.
00:27:32.240 --> 00:27:33.039
Are you gonna be done?
00:27:33.200 --> 00:27:35.039
And they're either gonna say yes or no.
00:27:35.200 --> 00:27:36.640
If it's yes, great.
00:27:36.799 --> 00:27:38.240
If it's no, why not?
00:27:38.400 --> 00:27:39.119
What's the issue?
00:27:39.200 --> 00:27:40.400
What can I do to help?
00:27:40.559 --> 00:27:40.880
Right?
00:27:40.960 --> 00:27:43.440
That approach section is super duper important.
00:27:43.680 --> 00:27:46.880
And then finally, we've got the metrics down here at the bottom.
00:27:47.039 --> 00:27:49.200
That's the same metrics that we have on the roadmap.
00:27:49.279 --> 00:27:53.839
We're basically just copying and pasting them into the A3 uh so that they match.
00:27:54.079 --> 00:27:58.160
So this one-page document, it some people are like, why do I need to do that?
00:27:58.319 --> 00:28:14.559
Well, number one, it forces clarity, it forces us to align on the scope because you would be shocked the amount of time that four people discuss the same project, and then they all leave with a different idea of what the scope of that project is.
00:28:14.799 --> 00:28:23.359
Filling out a project A3 forces that conversation because you have to review it with the team, and everybody has to look at it and go, Yes, I agree.
00:28:23.599 --> 00:28:29.440
Uh finally, it builds that accountability that we talked about, right?
00:28:29.599 --> 00:28:31.839
Because every week you got to come in there and give me an update.
00:28:31.920 --> 00:28:33.519
Where are we at on the approach?
00:28:33.759 --> 00:28:34.720
Are we on time?
00:28:34.880 --> 00:28:35.839
Are we behind?
00:28:36.000 --> 00:28:40.720
And it helps, and if you see that we're behind, it helps to figure out why.
00:28:40.880 --> 00:28:43.440
Sometimes, like I said, it's a robot that needs to be removed.
00:28:43.519 --> 00:28:45.839
And sometimes it's a coaching opportunity.
00:28:46.000 --> 00:28:51.359
You got to help people because they don't know, they don't know how to move further, they get stuck.
00:28:51.519 --> 00:28:58.000
And that gives us as leaders the ability to coach and help develop our people and develop our teams.
00:28:58.240 --> 00:29:07.759
You know, and then another thing that's not shown on this slide, but I think is just as important is an A3 makes a great marketing tool.
00:29:08.079 --> 00:29:18.240
At the end of the year, if I've got eight project A3s that I've completed, when it comes time for my yearly review, I can slide those across the desk to my boss and say, hey, here's what I did this year.
00:29:18.319 --> 00:29:21.200
Here's the value that I had on the business, right?
00:29:21.440 --> 00:29:22.960
Please give me a raise.
00:29:23.200 --> 00:29:27.680
It's also great if you're managing a team, you can set up a whiteboard on the floor.
00:29:27.759 --> 00:29:32.480
And when you have visitors, you can show them, you know, what you're doing, or you know, other managers.
00:29:32.559 --> 00:29:33.920
They come to the your area.
00:29:34.000 --> 00:29:38.640
Hey, here's what we're doing to drive improvements and to drive results within the organization.
00:29:38.799 --> 00:29:42.160
So they make great, great, great marketing tools.
00:29:42.880 --> 00:29:43.440
All right.
00:29:43.599 --> 00:29:48.000
So what are some common pitfalls to this strategy?
00:29:48.160 --> 00:29:51.119
Where do some folks, you know, maybe go off course?
00:29:51.279 --> 00:29:58.000
Number one is you don't take the time to do the value stream map and the value stream design.
00:29:58.079 --> 00:30:03.279
You just come up with your initiatives because you you just know what you need to work on.
00:30:04.720 --> 00:30:15.200
This can work sometimes, but if you don't, if you do it in a comfort room and you never go to the shop floor, what I see most of the time is you wind up working on the wrong thing.
00:30:15.359 --> 00:30:20.799
You wind up solving problems that either A don't exist or B, aren't really your biggest problems.
00:30:20.880 --> 00:30:28.079
There's other things that you need to solve before you focus on, you know, these other things, you know, whatever the initiatives are.
00:30:28.480 --> 00:30:30.400
The next thing is too many priorities.
00:30:30.640 --> 00:30:33.200
Look, everybody's limited in resources.
00:30:33.359 --> 00:30:37.200
So let's be realistic about what we can get done in 90 days.
00:30:37.440 --> 00:30:40.799
You know, let's be discerning on where the value is.
00:30:40.880 --> 00:30:44.160
And that that's really where that KPI tree comes into play.
00:30:44.480 --> 00:30:48.720
We need to make sure we're working on the right things because we can't work on everything.
00:30:48.960 --> 00:30:52.319
So how do we make sure that we're working on the right things?
00:30:52.559 --> 00:31:00.160
Uh, and that when we say we're gonna get it done, we have the resources to get it done and we're gonna get it done.
00:31:00.400 --> 00:31:06.400
Uh, next one is if you don't assign an owner, projects without an owner, again, that's that's worse than a wish list.
00:31:06.559 --> 00:31:10.000
I mean, that's I don't I don't know what that is.
00:31:10.240 --> 00:31:12.799
Every project has to have an owner and it has to have one name.
00:31:12.960 --> 00:31:20.799
If you give it to a department, it's not gonna get done because you know what's more than one person's responsibility is nobody's responsibility.
00:31:20.880 --> 00:31:30.400
So every project's got to have one owner owner, and that project needs to link up to the overall business strategy, it needs to fit where the organization is trying to go.
00:31:30.640 --> 00:31:40.319
Um, next thing is the A3, if you're just filling out an A3 as wallpaper and you're not using it to manage your project, you know, that's that's that's definitely a gap.
00:31:40.480 --> 00:31:45.839
And then finally, and most importantly, not having that weekly roadmap meeting.
00:31:46.000 --> 00:32:00.000
If you just do the the values mapping workshop and you don't follow it up with a weekly roadmap meeting, you're almost guaranteed to fail because other things are gonna come up, other things are gonna take priority, and the projects are gonna slide.
00:32:00.160 --> 00:32:05.519
And and you're gonna be stuck three months from now without making any progress.
00:32:05.759 --> 00:32:15.359
So, what I've laid out for you in the course of this, I don't know, 30 minutes, however long we've been here, is basically our fractional CI manager program.
00:32:15.759 --> 00:32:25.039
You know, at Allied Advisors, we use this program to help our clients build a culture of continuous improvement within the teams they already have.
00:32:25.200 --> 00:32:32.400
Instead of paying for very expensive consultants to come in and do projects and then leave and watch those projects fall apart.
00:32:32.640 --> 00:32:41.519
We want to help build up this skill set, build these tools within your team so that you become a self-sustaining group and this becomes a part of who you are.
00:32:41.680 --> 00:32:44.559
It becomes the cornerstone for your corporate culture.
00:32:44.799 --> 00:32:47.519
We want to come in, we want to help facilitate these workshops.
00:32:47.599 --> 00:32:56.799
We want to coach your team in those weekly roadmap meetings, and we want to help mentor them to get them to that next level within your career, within their career.
00:32:57.039 --> 00:33:02.000
So if this sounds, you know, like something you'd be interested in, please don't hesitate to reach out.
00:33:02.079 --> 00:33:03.200
We'd love to talk to you.
00:33:03.359 --> 00:33:06.640
We could talk about you know what value stream would make sense for you to start with.
00:33:06.720 --> 00:33:15.200
If you've got multiple value streams, value streams within your facility, uh block off a couple days for the workshop and then you know get after it.
00:33:15.359 --> 00:33:24.079
Come on site, knock it out, and and start really doing the uh the coaching and the hard work that delivers the results and really has the biggest impact.
00:33:24.559 --> 00:33:37.200
So again, if you have any questions, if if if this doesn't make sense to you, if you want to get into more details about any one topic, please don't hesitate.
00:33:37.359 --> 00:33:38.240
Give me a call.
00:33:38.400 --> 00:33:41.039
Would love to chat, would love to talk more about it.
00:33:41.279 --> 00:33:51.119
And really, again, thank you so much, guys, for listening to me, uh, for taking the time out of your schedule to learn more about our way of approaching systemic improvement.
00:33:51.279 --> 00:34:00.960
Um, and like I said, look forward to to having um some future guests down the road to get back to that, you know, that that that typical podcast format.
00:34:01.119 --> 00:34:03.680
I think we've got some great ones in store for you coming up.
00:34:03.839 --> 00:34:06.720
And uh anyway, look forward to seeing you then.
00:34:07.200 --> 00:34:08.159
Take care.
00:00:03.120 --> 00:00:14.320
Welcome back, everybody, to another episode of the Allied Advisors Podcast, the podcast for mid-market manufacturers looking to scale operations and improve that ever-important bottom line.
00:00:14.480 --> 00:00:20.879
I'm your host, Justin Goathi, and today's episode is a special one because it marks our 25th episode.
00:00:21.039 --> 00:00:26.079
That's 25 conversations about what it really takes to build operations that run better.
00:00:26.160 --> 00:00:29.280
And I'm grateful to everyone who's been along for the ride.
00:00:29.440 --> 00:00:43.759
To mark the milestone, I want to come back to the heart of what we do here at Allied Advisors and walk you through the systemic improvement cycle, our framework for turning strategy into structured, sustainable improvement that outlasts any one person.
00:00:56.640 --> 00:01:04.079
From value stream mapping and the KPI tree to Project A3s and the plan do check act discipline that ties it all together.
00:01:04.239 --> 00:01:12.159
Whether you're just starting your lean journey or fighting to make hard won games stick, this one's built to give you a clear, repeatable path forward.
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Let's get into it.
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All right.
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Well, and before we get into it, I have got to pull up my presentation.
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So give me just one second.
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All right, here you go, guys.
00:01:22.719 --> 00:01:24.480
The systemic improvement cycle.
00:01:24.640 --> 00:01:28.799
How do we turn strategy into structured, sustainable improvement?
00:01:29.359 --> 00:01:39.200
Well, at the heart of it, all, I mean, really at the heart of lean, it's all comes down to a plan do check act cycle, PDCA, right?
00:01:39.359 --> 00:01:44.000
The goal is to do PDCA cycles at ever tightening frequencies, right?
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So we're doing it today at a 30,000 foot view.
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Where are we going as a business?
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Where are we trying to go as an organization?
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And the goal is to do that at ever lower frequencies.
00:01:54.719 --> 00:02:02.480
So 30,000 feet, then we move into monthly reviews, then we go down to weekly, daily, and even down to the shift level, right?
00:02:02.640 --> 00:02:08.960
Where we're checking to make sure that the plans we're putting in place are having the desired impact.
00:02:09.120 --> 00:02:14.719
If we see that they're not, we're reacting and using that as input to help us make better plans, right?
00:02:14.800 --> 00:02:16.080
That's all we're trying to do here.
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PDCA.
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Okay, and and this is what that looks like.
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Oh, you know what?
00:02:20.879 --> 00:02:21.840
Let me back up.
00:02:22.080 --> 00:02:29.919
So for those of you that are listening at home, by all means, please continue to listen to the to the audio version of this podcast.
00:02:30.159 --> 00:02:43.360
But if you can, it would be better if you could check this one out on YouTube because I have obviously some slides that I'm presenting, and this will make a lot more sense if you're following along with the slides rather than just listening to me talk.
00:02:43.520 --> 00:02:51.599
But if you can't, I will do my best to try to illustrate what we're looking at so that you can also understand the conversation.
00:02:51.840 --> 00:02:58.719
All right, so the slide on the screen shows the visual representation of our systemic improvement cycle framework.
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It starts in the top left corner with our vision.
00:03:02.240 --> 00:03:10.319
This is where we come on site with your team and we help you set the vision for where we're going in the next 90 days.
00:03:10.560 --> 00:03:15.919
All of these cycles, these systemic improvement cycles, they're all done on 90-day increments.
00:03:16.240 --> 00:03:24.000
And the reason for that is, you know, if you get assigned a project and it's not due until a year from now, well, what's the first thing you're gonna do?
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Nothing.
00:03:24.639 --> 00:03:25.520
You're gonna do nothing.
00:03:25.680 --> 00:03:31.520
You're gonna go back to your desk, sit down, and work on something else because that project's not due for another year.
00:03:31.599 --> 00:03:33.520
I don't need to do anything with that right now.
00:03:33.759 --> 00:03:43.599
So to avoid that, we want to break these projects down into 90-day cycles so that you always keep that tension and you always have to show progress week over week.
00:03:43.759 --> 00:03:49.520
So let's just all the line, all of this is done in a three-month on a three-month interval.
00:03:49.759 --> 00:03:51.840
And we start with setting the vision.
00:03:52.000 --> 00:03:52.800
So, how do we do that?
00:03:52.960 --> 00:03:56.639
Well, the first thing we're gonna do is we're gonna talk about our focus topics.
00:03:56.800 --> 00:03:59.759
Where are we focused over the next 90 days?
00:03:59.919 --> 00:04:04.879
You know, focus topics break down into three categories business requirements, right?
00:04:05.039 --> 00:04:06.639
What's the business telling us?
00:04:06.879 --> 00:04:09.199
Do we need to expand into a new facility?
00:04:09.439 --> 00:04:13.599
Do we need to start off a new product line, right?
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Where are we going from a business standpoint?
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The second thing is market requirements.
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Are orders shifting?
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Are they going up?
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Are they going down?
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Are they changing from one product line to the next?
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Right?
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What's the market telling us?
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Where are we, where's the market pushing us?
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And then finally, what's the vision?
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Are we going to RFID or autonomous guided vehicles?
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Are we trying to figure out how we're going to implement AI in the at the administrative side of the business or on the shop floor, right?
00:04:42.000 --> 00:04:42.879
What's the vision?
00:04:42.959 --> 00:04:43.920
Where are we trying to go?
00:04:44.079 --> 00:04:51.120
Maybe we're we're trying to do a lean uh transformation and we want standard work for all of our processes.
00:04:51.360 --> 00:04:53.759
Whatever it is, we want to outline that.
00:04:53.920 --> 00:04:58.079
We want to all align on what the vision is for the company.
00:04:58.319 --> 00:05:01.680
The next thing is we're going to talk about the timeline.
00:05:02.160 --> 00:05:07.120
When we're on site setting this vision, we're going to set a future state, right?
00:05:07.439 --> 00:05:11.439
We're going to design a value stream for some point out in the future.
00:05:11.680 --> 00:05:12.720
Where is that point?
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Is it a year from now?
00:05:13.920 --> 00:05:14.959
Is it nine months from now?
00:05:15.120 --> 00:05:16.480
Is it 18 months from now?
00:05:16.639 --> 00:05:18.399
We need to decide on that.
00:05:18.639 --> 00:05:22.240
Typically, I recommend to my clients, let's do it for a year from now.
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Do it for 12 months.
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Unless there's something coming up where, hey, we're we're starting up this new product line and it's going to ramp up 18 months from now.
00:05:30.480 --> 00:05:33.680
You know, maybe we'll design it for that 18-month look.
00:05:34.000 --> 00:05:42.399
But, you know, barring any extenuating circumstances like that, we really want to try to get it one year out, right?
00:05:42.560 --> 00:05:45.759
12 months from now, how do we want this value stream to look?
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So once we've kind of figured out the focus topics, the timeline, we're going to come on site and we're going to do a value stream map.
00:05:54.319 --> 00:05:56.160
We're going to map out the current state.
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How does material and information flow from the receiving dock through the value stream out the door to your customer?
00:06:03.439 --> 00:06:05.279
We're going to walk it together as a group.
00:06:05.439 --> 00:06:08.319
We're going to be looking for the eight forms of waste, right?
00:06:08.399 --> 00:06:17.360
We're not going to go into that right now, but we're as we're walking the value stream, we're going to be looking for, you know, excess motion, waiting, unutilized talent.
00:06:18.079 --> 00:06:23.040
We're going to be laser focused on this waste as we're walking the value stream.
00:06:23.279 --> 00:06:27.360
Now, one other caveat, not a caveat, just one thing to know.
00:06:27.519 --> 00:06:32.000
We're going to walk it starting in shipping and we're going to walk it backwards to receiving.
00:06:32.160 --> 00:06:33.199
So why do you do that?
00:06:33.279 --> 00:06:37.279
Why would you walk it backwards instead of, you know, from receiving to shipping?
00:06:37.519 --> 00:06:45.519
You know, it's the same reason that the cops ask you to say your ABCs backwards if they pull you over and suspect you may have had too many to drink.
00:06:45.680 --> 00:06:47.680
It's not that you don't know your ABCs.
00:06:47.759 --> 00:06:49.199
Of course you know your ABCs.
00:06:49.439 --> 00:06:53.360
But when you get asked to say them backwards, you have to think about it.
00:06:53.439 --> 00:06:57.360
You know, A we say ZYX, V U T.
00:06:57.600 --> 00:06:59.600
It takes you a second to process that.
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Same thing when we're walking the value stream out.
00:07:01.920 --> 00:07:06.800
We want to start at the end and walk it backwards so that we have to think, how do parts get here?
00:07:07.040 --> 00:07:07.680
Oh, that's right.
00:07:07.759 --> 00:07:10.639
They're coming from X process, whatever.
00:07:10.879 --> 00:07:14.560
So we're going to walk it backwards, we're going to draw it out, we're going to map out the waste.
00:07:14.720 --> 00:07:19.439
Then the next day we're going to come in and we're going to say, okay, here's where we are.
00:07:19.759 --> 00:07:21.120
Here are the focus topics.
00:07:21.279 --> 00:07:29.040
What do we need this value stream map to look like, you know, in that time, that timeline we discussed, that year look, that 12 months from now.
00:07:29.199 --> 00:07:31.279
And we're going to draw out that future state map.
00:07:31.519 --> 00:07:36.879
Then once we have our current state, once we have our future state, we're going to start putting together the project roadmap.
00:07:36.959 --> 00:07:40.399
And a project roadmap, and we'll talk about this some more detail.
00:07:40.480 --> 00:07:43.519
It's just a list of projects, but we're going to list out those projects.
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We're going to come up with project A3s and we'll review that in more detail in just a second.
00:07:48.160 --> 00:07:49.279
Bear with me.
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And that's going to be it.
00:07:50.879 --> 00:07:53.279
So those two days, we're going to set the current state map.
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We're going to define what the future state looks like.
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And then we're going to define what projects we're going to work on in the next 90 days.
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And for each of those projects, we're going to create a project A3, which is a project management tool.
00:08:05.040 --> 00:08:09.120
After that's complete, we're going to move into our weekly roadmap cadence.
00:08:09.199 --> 00:08:15.759
So every week we're going to meet as a team, and the project owners are going to pull up those project A3s and give us an update.
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This is really where the accountability is built.
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The problem with most continuous improvement systems is they lack an accountability tool.
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All they provide is a wish list.
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Hey, I want to do this, but they don't give you the structure that you need to actually get those things across the finish line.
00:08:38.799 --> 00:08:42.720
That structure is the roadmap meetings, those weekly roadmap meetings.
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That's where we build in that accountability.
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Because every week these project owners have to show up and they have to give us an update.
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They either made progress or they did not make progress.
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And if they did not make progress, why?
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And we're going to have those conversations.
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Maybe there's a roadblock that needs to be removed.
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Maybe they're overloaded with some other things.
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Maybe they don't have the skill sets that we thought they did to get these projects completed.
00:09:07.039 --> 00:09:08.080
That happens.
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So let's assume it all goes well, the projects get implemented.
00:09:26.240 --> 00:09:32.000
The next phase we move into is in this bottom right corner, which is the process validation phase.
00:09:32.159 --> 00:09:38.559
That's where we're actually going out there and validating that the process is working the way we intended it to work, right?
00:09:38.960 --> 00:09:39.840
You can see this.
00:09:40.000 --> 00:09:45.200
We talk about this in a little more detail on the daily leadership routine podcast that I did a few months ago.
00:09:45.360 --> 00:09:52.080
So if you want more information on how we do that process validation, you can reach out to me via the website.
00:09:52.320 --> 00:09:53.840
I'll link to it in the show notes.
00:09:54.000 --> 00:09:58.159
Or you could check out that earlier podcast on the daily leadership routine.
00:09:58.320 --> 00:10:01.679
Either way, I'm happy to help, happy to provide more information.
00:10:01.919 --> 00:10:02.720
Give me a call.
00:10:02.879 --> 00:10:04.080
Would love to talk to you.
00:10:04.240 --> 00:10:07.279
But regardless, process validation.
00:10:07.360 --> 00:10:20.000
We're out there, we're validating that the improvement KPI that we determined when we are creating that project A3, we're validating that we are within the stability criteria, that we are hitting our targets there.
00:10:20.159 --> 00:10:32.480
Once we've done that and we've proved that yes, the process is working the way that the standard says it should work, and we're getting the results that we thought we would get, then we move into our daily management phase.
00:10:32.639 --> 00:10:37.440
Hey, okay, how are we going to monitor this to ensure that this process stays within stability?
00:10:37.600 --> 00:10:42.159
And if it deviates, what's our standard reaction to get it back to stability?
00:10:42.320 --> 00:10:49.279
And if we continue to see deviations, how do we use that as an input into the next system CIP cycle, right?
00:10:49.440 --> 00:10:50.559
Continuous improvement.
00:10:50.639 --> 00:10:54.399
How do we use that into the next value stream mapping, value stream design workshop?
00:10:54.559 --> 00:10:58.480
So again, PDCA, plan, do, check, act.
00:10:58.960 --> 00:11:00.879
All in a continuous loop.
00:11:01.120 --> 00:11:01.679
All right.
00:11:02.159 --> 00:11:06.799
And again, if you have any questions on this, please, please, please, please, please don't hesitate.
00:11:07.120 --> 00:11:08.879
Give me a call, send me an email.
00:11:09.039 --> 00:11:10.240
Would love to talk you through it.
00:11:10.480 --> 00:11:10.799
All right.
00:11:10.960 --> 00:11:12.960
So it sounds pretty easy.
00:11:13.039 --> 00:11:13.200
All right.
00:11:13.440 --> 00:11:16.159
I don't know if it sounds easy, but it sounds pretty straightforward.
00:11:16.320 --> 00:11:17.759
So why doesn't this work?
00:11:17.919 --> 00:11:21.120
Why do so many companies struggle with this?
00:11:21.360 --> 00:11:25.279
And and and look, it's not me saying that they struggle with it.
00:11:25.440 --> 00:11:44.639
You know, HBR, Kathleen and Norton, McKenzie, these are all huge, you know, consulting firms or industry experts that have also came to the same conclusion that most companies that try to do continuous improvement, they never, it never really becomes a part of their culture.
00:11:44.720 --> 00:11:45.679
It never lasts.
00:11:45.759 --> 00:11:53.919
It always feels like a fad, you know, something that um you know just never got there.
00:11:54.639 --> 00:12:07.120
And the reason for that, the reason that so many of these these initiatives fail is because they lack the four must-haves for any CI system.
00:12:07.279 --> 00:12:10.879
And the first must-have is a way of deriving projects, right?
00:12:10.960 --> 00:12:15.279
And that's what we're doing here with the value stream mapping, value stream design workshop.
00:12:15.519 --> 00:12:22.320
That is our mode of making sure that we're working on the right things, right?
00:12:22.480 --> 00:12:23.600
I'm gonna say that again.
00:12:23.759 --> 00:12:25.759
We can work on a million things.
00:12:26.000 --> 00:12:28.960
How do we know we're working on the right things?
00:12:29.440 --> 00:12:34.960
We know because we have the conversations every 90 days where we're talking about the focus topics.
00:12:35.120 --> 00:12:36.480
What's the business doing?
00:12:36.639 --> 00:12:37.840
What's the market doing?
00:12:38.000 --> 00:12:38.799
What's the vision?
00:12:38.960 --> 00:12:41.840
And there's some other tools that we're gonna talk about here in just a second.
00:12:42.000 --> 00:12:49.840
Number one being a KPI tree, but we've got to have a way of monitoring that we're working on the right things.
00:12:50.240 --> 00:12:55.120
Next thing is we've got to have a way of managing that execution, like we talked about, those weekly roadmap meetings.
00:12:55.360 --> 00:12:57.519
This is really where the rubber meets the road.
00:12:57.600 --> 00:13:01.519
This is where we live and die, right here, is in these weekly roadmap meetings.
00:13:01.759 --> 00:13:08.320
If you're not having that, how are you making sure that your team is delivering the results that you think they're delivering?
00:13:08.639 --> 00:13:12.799
And then finally, you got to have a way to validate the results and to sustain those standards.
00:13:12.960 --> 00:13:31.279
If you don't have those last two things, what's gonna happen is you're gonna make a change, you're gonna train folks, but then you're gonna walk out there three weeks later and it's like nothing ever happened because you didn't take the time to validate the standard, and you don't have a way to make sure that people are gonna use that standard moving into the future.
00:13:32.559 --> 00:13:33.519
You gotta do it.
00:13:33.600 --> 00:13:35.519
You really, it's non-negotiable.
00:13:35.679 --> 00:13:39.519
If you don't do these things, it becomes a wish list.
00:13:39.759 --> 00:13:41.200
It's not a meaningful program.
00:13:41.360 --> 00:13:45.279
All right, so where this cycle fits, you know, you've got your strategy.
00:13:45.519 --> 00:13:50.960
Your strategy is your, you know, what's a year, hey, we're setting the strategy, what are we trying to do this year?
00:13:51.200 --> 00:13:54.399
This systemic improvement cycle sits just below that.
00:13:54.559 --> 00:13:57.279
It's more the tactical piece of the strategy.
00:13:57.519 --> 00:14:00.720
Hey, here's where we would like to go, here's what we would like to accomplish.
00:14:00.879 --> 00:14:05.279
The systemic improvement cycle really kind of helps you figure out how do we do that?
00:14:05.440 --> 00:14:06.159
How do we get there?
00:14:06.320 --> 00:14:08.639
How do we drive these initiatives?
00:14:09.440 --> 00:14:22.559
So many times I see companies that have a strategy, and because they don't have a structure for achieving that strategy, it's it's hit or miss as to what gets what actually gets done.
00:14:22.720 --> 00:14:27.200
And it really comes down to in the in those instances, who's driving it, right?
00:14:27.360 --> 00:14:37.200
Who's on the team, whose pet project is it, as opposed to, hey, it all gets done because we have a systematic, structured way of approaching it.
00:14:37.440 --> 00:14:42.399
Um, once, you know, once we get through this, we're actually doing the implementation phase.
00:14:42.559 --> 00:14:50.080
That's where we get into that daily leadership routine, which again, I would encourage you to check out in the earlier version or in the earlier podcast that we released.
00:14:50.240 --> 00:14:52.480
I think it was back in April or May.
00:14:52.720 --> 00:14:56.000
Um, I I think that's I think it's very valuable material.
00:14:56.159 --> 00:14:57.679
If you haven't seen it, you should.
00:14:57.919 --> 00:14:58.240
All right.
00:14:58.320 --> 00:15:06.159
So, like we talked about, there's three components that we come up with when we're on site doing the systemic improvement cycle, that workshop.
00:15:06.320 --> 00:15:07.759
First one is the value stream map.
00:15:07.840 --> 00:15:10.799
We're gonna do the value stream map, current state and future state.
00:15:10.960 --> 00:15:12.960
We're gonna develop that project roadmap.
00:15:13.120 --> 00:15:18.000
Each project in that project roadmap has a few critical elements defined.
00:15:18.320 --> 00:15:22.399
Uh, those elements are the key performance results, right?
00:15:22.559 --> 00:15:27.440
What's the high level uh KPI that we're trying to attack, right?
00:15:27.679 --> 00:15:29.759
The key performance result, the highest level.
00:15:29.919 --> 00:15:33.200
The next one is uh the department KPIs.
00:15:33.360 --> 00:15:35.919
And then finally, it's the process KPIs.
00:15:36.080 --> 00:15:42.960
So the process KPIs, you can think of that as something on the shop floor that is a that is observable.
00:15:43.360 --> 00:15:47.440
I can walk out there and see, hey, are they following the process?
00:15:47.600 --> 00:15:49.039
Are they following the standard?
00:15:49.120 --> 00:15:50.240
Yes or no, right?
00:15:50.320 --> 00:15:51.759
That's the process KPI.
00:15:51.919 --> 00:16:06.799
Then if they're following that pro if they're following that standard and we're getting the desired results, that we're meeting that process KPI target, the department KPI is what's the next level KPI up in the hierarchy that we expect to impact, right?
00:16:06.879 --> 00:16:09.919
And we'll talk about that just a second, a little bit more detail.
00:16:10.080 --> 00:16:14.639
But but we're gonna define that when we're completing that project roadmap.
00:16:14.799 --> 00:16:17.679
Uh, and then the next thing we're gonna talk about is the project day three.
00:16:17.840 --> 00:16:20.720
I think a project A3 is such a valuable tool.
00:16:20.879 --> 00:16:29.120
It's a one-page document that defines the scope, the goals, current future state, um, the the metrics for each project, right?
00:16:29.279 --> 00:16:33.519
It really it's it's the Bible for every project, essentially.
00:16:33.679 --> 00:16:36.399
Okay, so the current state value stream map.
00:16:36.480 --> 00:16:41.360
So we want to map when we're out there, how does material and information flow end to end?
00:16:41.519 --> 00:16:45.360
That includes all the process steps, all the cycle times, right?
00:16:45.440 --> 00:16:48.320
How does material get from one place to another?
00:16:48.480 --> 00:16:50.399
Is it via a common bottle pool system?
00:16:50.559 --> 00:16:57.679
Is it a look and see, right, where somebody's going to check the inventory levels and then they're making a decision on what needs to get delivered?
00:16:57.840 --> 00:16:58.320
All of that.
00:16:58.399 --> 00:17:08.640
We want to map all of that onto the value stream map along with observed waste, waiting time, unnecessary motions, unnecessary transportation.
00:17:08.720 --> 00:17:13.519
We want to call all of that out in Starburst on the value stream map so that we can see it.
00:17:13.680 --> 00:17:14.799
Anyone can see it.
00:17:15.039 --> 00:17:23.920
Um once we're done, we want to use the inventory that we count while we're out there on the floor to calculate the lead time.
00:17:24.160 --> 00:17:28.160
How much material do we have in the pipeline?
00:17:28.240 --> 00:17:28.880
Is it too much?
00:17:29.039 --> 00:17:29.680
Is it too little?
00:17:29.839 --> 00:17:34.160
Do we have it in the right places along the value stream map?
00:17:34.400 --> 00:17:34.720
Right.
00:17:34.880 --> 00:17:36.559
And then the KPIs bisection.
00:17:36.640 --> 00:17:41.039
What are how are we doing today in quality, cost, delivery, and safety?
00:17:41.279 --> 00:17:42.640
Are we hitting those targets?
00:17:42.799 --> 00:17:52.720
We want to make sure that we're looking at that and and and in a good way, or or maybe we're not in a good way, and we need to we need to focus our attention.
00:17:53.119 --> 00:18:05.039
But the big thing about doing a current state map is it gets you out of the office and onto the shop floor where the action is, where the problems are, and most importantly, where the solution lives.
00:18:05.599 --> 00:18:14.799
Go into the gimma, freight the chain to the desk, getting out there on the shop floor with the people, that's where real change happens in manufacturing.
00:18:14.960 --> 00:18:19.279
Okay, so then once we've got that current state map, then we're gonna move into the value stream design.
00:18:19.359 --> 00:18:22.480
How are we gonna change this in the next 12 months?
00:18:22.640 --> 00:18:25.920
And we want to think through things like how does material flow?
00:18:26.160 --> 00:18:31.920
Is it pulled through the value stream where somebody's actually tried to pull things through to hit a due date?
00:18:32.079 --> 00:18:37.519
Or is, you know, I'm sorry, pushed, is it pushed through the value stream where we're trying to push things through to hit a due date?
00:18:37.680 --> 00:18:41.680
Or is it pulled where we're responding to customer behaviors?
00:18:41.839 --> 00:18:47.359
We've set supermarkets in place, and when a customer pulls something out of that supermarket, we're replenishing it.
00:18:47.519 --> 00:18:50.319
Sorry, I got push and pull mixed up there for a second.
00:18:50.559 --> 00:18:54.480
Push is when you're pushing it through, trying to hit a due date at the end.
00:18:54.720 --> 00:18:59.759
Pull is when you're reacting to customer behaviors and you're just trying to replenish a supermarket.
00:18:59.920 --> 00:19:04.559
If you get really good, you can go, you can try to do production leveling.
00:19:04.799 --> 00:19:12.000
That is, you know, that's what every lead organization is trying to get to eventually, is where you're doing every part, every interval.
00:19:12.160 --> 00:19:25.200
You have a level schedule where you level out the workload, and then you're mixing in your exotic components as you have time based on your capacity models, which include things like changeover time, cycle time, tack time.
00:19:25.279 --> 00:19:30.559
And again, there's a lot of details we can get into here, but that's the target that we're trying to get to.
00:19:30.720 --> 00:19:32.400
Can we get to that level schedule?
00:19:32.559 --> 00:19:34.960
If we can't, what do we need to do to get to it?
00:19:35.039 --> 00:19:37.680
Maybe there's some supermarkets we got to implement first.
00:19:37.920 --> 00:19:40.160
Maybe there's some work standards we got to implement.
00:19:40.240 --> 00:19:44.400
Maybe there's a you know, a single-minute exchange of dyes program we've got to stand up.
00:19:44.559 --> 00:19:48.160
But eventually we want to be able to level out that workload, right?
00:19:48.240 --> 00:19:54.400
And like I said, you do that through considering the tag time, changeovers, cycle time.
00:19:54.720 --> 00:19:56.640
And we want to try to make all this visual.
00:19:56.799 --> 00:20:02.400
How can we make this visual on the shop floor so that anybody can walk up and immediately see the status?
00:20:02.559 --> 00:20:03.200
Are we ahead?
00:20:03.279 --> 00:20:04.000
Are we behind?
00:20:04.160 --> 00:20:05.599
Are we winning or are we losing?
00:20:05.759 --> 00:20:10.480
Okay, so like we talked about, how do we run that workshop?
00:20:10.559 --> 00:20:12.079
How do we run those two days?
00:20:12.240 --> 00:20:20.000
We start, we walk the value stream, we design the current state, we build the future state, and then we start talking through those that roadmap and those project A3s.
00:20:20.079 --> 00:20:22.240
All right, so this is an example of a roadmap.
00:20:22.400 --> 00:20:32.319
I'm sorry for those of you that are listening and you can't see this, but you can see each one of these projects is listed here on the on the roadmap.
00:20:32.400 --> 00:20:39.759
Uh, it talks about what value stream we're working on, what is it a cost, quality, safety, or delivery uh topic?
00:20:40.000 --> 00:20:41.119
You know, why are we working on it?
00:20:41.200 --> 00:20:42.480
Are we trying to impact cost?
00:20:42.640 --> 00:20:44.480
Are we trying to improve safety, right?
00:20:44.640 --> 00:20:46.960
High level, what are we, what are we really focused on here?
00:20:47.119 --> 00:20:48.720
What's the activity title?
00:20:48.880 --> 00:20:51.039
When does the when does the project start?
00:20:51.200 --> 00:20:53.200
When is it supposed to be completed by?
00:20:53.359 --> 00:20:56.480
What's the KPR that we're trying to impact?
00:20:57.119 --> 00:20:57.359
Right.
00:20:57.519 --> 00:21:02.240
And then getting into the process KPIs and the department KPIs that we discussed.
00:21:02.400 --> 00:21:08.079
Another thing that we're gonna look at is the stability metrics for those process KPIs.
00:21:08.319 --> 00:21:11.680
What are we trying to check and what are we gonna accept?
00:21:11.839 --> 00:21:17.680
Right, where do those metrics need to be for us to feel like yes, this is working?
00:21:17.839 --> 00:21:21.359
We want to have that discussion and we want to define that before we do the project.
00:21:21.519 --> 00:21:23.759
We don't want to try to do it after the fact.
00:21:24.079 --> 00:21:29.200
So this slide just details what belongs on every roadmap, and it's just what we just discussed.
00:21:29.359 --> 00:21:31.359
The project name, the owner.
00:21:31.440 --> 00:21:38.559
We we haven't talked about that, but every project needs an owner and it needs to have one name, not a department, not three names, one person.
00:21:38.720 --> 00:21:44.720
Now, that person can have a project team that supports them, but it should be one person responsible for that project.
00:21:44.960 --> 00:21:49.680
What are the KPIs, KPRs, department KPIs, process KPIs?
00:21:50.000 --> 00:21:54.160
What standard are we going to be changing or implementing?
00:21:54.559 --> 00:21:56.319
Start and end dates of that project.
00:21:56.400 --> 00:21:58.240
And finally, what's the stability criteria?
00:21:58.400 --> 00:21:59.519
What is the target for that?
00:22:00.160 --> 00:22:02.319
Process KPI that we're trying to hit.
00:22:02.559 --> 00:22:02.880
Okay.
00:22:03.279 --> 00:22:12.559
And maybe, arguably, possibly, one of the most important tools in anybody's lean toolbox is a KPI tree.
00:22:12.880 --> 00:22:19.680
And if you can't see this image because you're listening to the podcast, whenever, you know, if you're in your car, don't do it.
00:22:19.839 --> 00:22:25.680
But when you get stopped, go to YouTube, download this file.
00:22:26.000 --> 00:22:34.160
I will put it in the, I'll put a link to it in the show notes and look at this KPI tree because this is the important piece that you need.
00:22:34.319 --> 00:22:45.200
A KPI tree shows the hierarchy going down from profit all the way down to process KPIs, which are the behaviors on the shop floor that impact the profit.
00:22:45.359 --> 00:22:49.599
And you can see there's a ton of metrics in this tiny little example.
00:22:49.759 --> 00:22:53.920
Now, people say, well, Justin, do we need to have data for all of these metrics?
00:22:54.240 --> 00:22:55.920
Well, not necessarily.
00:22:56.079 --> 00:22:59.920
You need to have data for the metrics that you're going to use to manage your business, right?
00:23:00.000 --> 00:23:03.039
You're going to need the data for the key performance results.
00:23:03.200 --> 00:23:13.440
Obviously, you got your profit data, but you're going to need key performance results like zero mileage defects, on-time delivery, um OEE, right?
00:23:13.599 --> 00:23:14.880
We want to have data for that.
00:23:15.039 --> 00:23:28.720
And then the the KPIs underneath those that go into those metrics, you're going to need that data because, for example, if I miss my OEE target, why did I miss my OEE target?
00:23:29.119 --> 00:23:30.000
Was it quality?
00:23:30.160 --> 00:23:31.039
Did I have bad quality?
00:23:31.119 --> 00:23:32.640
Did I do I need to go look at that?
00:23:32.799 --> 00:23:35.039
Is it am I missing my cycle time?
00:23:35.200 --> 00:23:37.279
Uh is cycle time a problem?
00:23:37.440 --> 00:23:39.440
Is my plan operating time not enough?
00:23:39.519 --> 00:23:41.200
Do we need to look at a different shift model?
00:23:41.359 --> 00:23:51.200
If I don't have that data available, how do I know what lever to pull to get us back to target, to get us back to those goals?
00:23:51.519 --> 00:24:01.839
You know, somebody asked me one time, Justin, I need you to lay out a roadmap to figure out how we're going to add value to this company.
00:24:02.000 --> 00:24:04.480
And I told him, you know, I just met them.
00:24:04.559 --> 00:24:05.599
I didn't know anything about their company.
00:24:05.680 --> 00:24:07.279
I said, well, that would be difficult.
00:24:07.440 --> 00:24:10.799
I can't tell you exactly what to do for this company because I don't know your company.
00:24:10.880 --> 00:24:17.279
But I can tell you this if you've got a KPI tree that looks like this, you're off to a pretty good start, right?
00:24:17.440 --> 00:24:25.200
So for those of you that can't see this, this KPI tree shows each of these metrics along with actual data.
00:24:25.359 --> 00:24:26.400
What's the target?
00:24:26.480 --> 00:24:28.319
And then what's the what's the status?
00:24:28.480 --> 00:24:30.480
Did I hit my target or did I miss my target?
00:24:30.640 --> 00:24:32.079
If I missed it, it's red.
00:24:32.240 --> 00:24:33.759
If I hit it, it's green.
00:24:34.079 --> 00:24:39.599
So in this example, um, you know, indirect productivity is green.
00:24:39.759 --> 00:24:45.119
So do I need to go, do I need to go do a lot of work on indirect productivity?
00:24:45.359 --> 00:24:46.720
No, because we're green.
00:24:46.799 --> 00:24:48.160
I don't need to worry about it.
00:24:48.319 --> 00:24:50.240
Uh direct productivity is red.
00:24:50.400 --> 00:24:52.480
So do I want to look at direct productivity?
00:24:52.640 --> 00:24:53.039
Yeah.
00:24:53.200 --> 00:24:55.519
Yeah, I should look at that because I'm missing my target.
00:24:55.599 --> 00:24:57.119
Well, why am I missing my target?
00:24:57.279 --> 00:24:59.440
Or is it an output problem?
00:25:00.079 --> 00:25:01.599
No, my output's good.
00:25:01.680 --> 00:25:10.240
I'm hitting my target on the output in terms of pieces off the end of the line, but my operator working time, I'm working too many hours.
00:25:10.400 --> 00:25:12.880
I'm using too many heads to get to that output.
00:25:12.960 --> 00:25:15.599
So I need to focus on pieces per hour.
00:25:15.759 --> 00:25:19.440
How do I get more pieces off with less manpower?
00:25:19.599 --> 00:25:23.440
Where how can I make my resources more efficient?
00:25:23.599 --> 00:25:27.039
That's where I need to focus my attention.
00:25:27.359 --> 00:25:36.400
So, anyway, this gives you a really good view on what you need to do uh to get to to achieve those business targets.
00:25:36.480 --> 00:25:41.920
If you have a KPI, you are so far ahead of most of the folks.
00:25:42.079 --> 00:25:47.759
All right, so project A3, you know, this is that project management tool I was telling you about that's so critical.
00:25:48.160 --> 00:25:51.359
What are the hallmarks of a good project A3?
00:25:51.599 --> 00:25:54.640
Well, number one, you got to have a background business case.
00:25:54.799 --> 00:25:56.240
Why are we working on this?
00:25:56.480 --> 00:26:00.319
And on the document, here's an example of the document.
00:26:01.119 --> 00:26:05.359
Some people like to write a paragraph or paragraphs in this section.
00:26:05.519 --> 00:26:06.799
And that's fine.
00:26:07.119 --> 00:26:09.119
However, nobody's gonna read it.
00:26:09.359 --> 00:26:20.799
If you want people to actually read your document, you need to use charts and data because it tells a story much quicker and much, much easier than a paragraph, right?
00:26:20.880 --> 00:26:24.240
So the more charts and data you can use, the better off you're gonna be.
00:26:24.559 --> 00:26:27.839
After that, we need to have our current state.
00:26:28.000 --> 00:26:29.359
How do things work today?
00:26:29.519 --> 00:26:32.000
A value stream map is a great way to show this.
00:26:32.160 --> 00:26:34.640
Pictures, another great way to show this.
00:26:34.960 --> 00:26:37.920
Show the process as as well as you can.
00:26:38.000 --> 00:26:40.559
And then you can describe it using bullet points.
00:26:40.799 --> 00:26:42.559
But what's the current state?
00:26:42.799 --> 00:26:45.039
Next, we've got the future state.
00:26:45.119 --> 00:26:46.799
How do we want it to work in the future?
00:26:46.880 --> 00:26:50.720
Again, another value stream design is a great, great thing here.
00:26:50.960 --> 00:27:01.359
You know, if as you go through the project, if you can get some pictures to put in the future state and show what the intended result is, that's another great thing to have.
00:27:02.400 --> 00:27:04.720
Uh, and then next is the approach.
00:27:04.880 --> 00:27:11.920
So, what are the steps that I need to complete to be able to say that, you know, this project is done, right?
00:27:12.079 --> 00:27:14.799
I need to do A and then B and then C and then D.
00:27:14.960 --> 00:27:17.680
Who's gonna do each of those steps and what's the due date?
00:27:17.759 --> 00:27:19.440
By when will it be complete?
00:27:19.759 --> 00:27:26.799
This is the most important part of any project A3 because this is where we spend most of our time in those weekly roadmap meetings.
00:27:26.880 --> 00:27:30.079
I'm gonna pull up this approach section and then we're gonna walk through it.
00:27:30.240 --> 00:27:32.079
I'm gonna say, hey, this is due next week.
00:27:32.240 --> 00:27:33.039
Are you gonna be done?
00:27:33.200 --> 00:27:35.039
And they're either gonna say yes or no.
00:27:35.200 --> 00:27:36.640
If it's yes, great.
00:27:36.799 --> 00:27:38.240
If it's no, why not?
00:27:38.400 --> 00:27:39.119
What's the issue?
00:27:39.200 --> 00:27:40.400
What can I do to help?
00:27:40.559 --> 00:27:40.880
Right?
00:27:40.960 --> 00:27:43.440
That approach section is super duper important.
00:27:43.680 --> 00:27:46.880
And then finally, we've got the metrics down here at the bottom.
00:27:47.039 --> 00:27:49.200
That's the same metrics that we have on the roadmap.
00:27:49.279 --> 00:27:53.839
We're basically just copying and pasting them into the A3 uh so that they match.
00:27:54.079 --> 00:27:58.160
So this one-page document, it some people are like, why do I need to do that?
00:27:58.319 --> 00:28:14.559
Well, number one, it forces clarity, it forces us to align on the scope because you would be shocked the amount of time that four people discuss the same project, and then they all leave with a different idea of what the scope of that project is.
00:28:14.799 --> 00:28:23.359
Filling out a project A3 forces that conversation because you have to review it with the team, and everybody has to look at it and go, Yes, I agree.
00:28:23.599 --> 00:28:29.440
Uh finally, it builds that accountability that we talked about, right?
00:28:29.599 --> 00:28:31.839
Because every week you got to come in there and give me an update.
00:28:31.920 --> 00:28:33.519
Where are we at on the approach?
00:28:33.759 --> 00:28:34.720
Are we on time?
00:28:34.880 --> 00:28:35.839
Are we behind?
00:28:36.000 --> 00:28:40.720
And it helps, and if you see that we're behind, it helps to figure out why.
00:28:40.880 --> 00:28:43.440
Sometimes, like I said, it's a robot that needs to be removed.
00:28:43.519 --> 00:28:45.839
And sometimes it's a coaching opportunity.
00:28:46.000 --> 00:28:51.359
You got to help people because they don't know, they don't know how to move further, they get stuck.
00:28:51.519 --> 00:28:58.000
And that gives us as leaders the ability to coach and help develop our people and develop our teams.
00:28:58.240 --> 00:29:07.759
You know, and then another thing that's not shown on this slide, but I think is just as important is an A3 makes a great marketing tool.
00:29:08.079 --> 00:29:18.240
At the end of the year, if I've got eight project A3s that I've completed, when it comes time for my yearly review, I can slide those across the desk to my boss and say, hey, here's what I did this year.
00:29:18.319 --> 00:29:21.200
Here's the value that I had on the business, right?
00:29:21.440 --> 00:29:22.960
Please give me a raise.
00:29:23.200 --> 00:29:27.680
It's also great if you're managing a team, you can set up a whiteboard on the floor.
00:29:27.759 --> 00:29:32.480
And when you have visitors, you can show them, you know, what you're doing, or you know, other managers.
00:29:32.559 --> 00:29:33.920
They come to the your area.
00:29:34.000 --> 00:29:38.640
Hey, here's what we're doing to drive improvements and to drive results within the organization.
00:29:38.799 --> 00:29:42.160
So they make great, great, great marketing tools.
00:29:42.880 --> 00:29:43.440
All right.
00:29:43.599 --> 00:29:48.000
So what are some common pitfalls to this strategy?
00:29:48.160 --> 00:29:51.119
Where do some folks, you know, maybe go off course?
00:29:51.279 --> 00:29:58.000
Number one is you don't take the time to do the value stream map and the value stream design.
00:29:58.079 --> 00:30:03.279
You just come up with your initiatives because you you just know what you need to work on.
00:30:04.720 --> 00:30:15.200
This can work sometimes, but if you don't, if you do it in a comfort room and you never go to the shop floor, what I see most of the time is you wind up working on the wrong thing.
00:30:15.359 --> 00:30:20.799
You wind up solving problems that either A don't exist or B, aren't really your biggest problems.
00:30:20.880 --> 00:30:28.079
There's other things that you need to solve before you focus on, you know, these other things, you know, whatever the initiatives are.
00:30:28.480 --> 00:30:30.400
The next thing is too many priorities.
00:30:30.640 --> 00:30:33.200
Look, everybody's limited in resources.
00:30:33.359 --> 00:30:37.200
So let's be realistic about what we can get done in 90 days.
00:30:37.440 --> 00:30:40.799
You know, let's be discerning on where the value is.
00:30:40.880 --> 00:30:44.160
And that that's really where that KPI tree comes into play.
00:30:44.480 --> 00:30:48.720
We need to make sure we're working on the right things because we can't work on everything.
00:30:48.960 --> 00:30:52.319
So how do we make sure that we're working on the right things?
00:30:52.559 --> 00:31:00.160
Uh, and that when we say we're gonna get it done, we have the resources to get it done and we're gonna get it done.
00:31:00.400 --> 00:31:06.400
Uh, next one is if you don't assign an owner, projects without an owner, again, that's that's worse than a wish list.
00:31:06.559 --> 00:31:10.000
I mean, that's I don't I don't know what that is.
00:31:10.240 --> 00:31:12.799
Every project has to have an owner and it has to have one name.
00:31:12.960 --> 00:31:20.799
If you give it to a department, it's not gonna get done because you know what's more than one person's responsibility is nobody's responsibility.
00:31:20.880 --> 00:31:30.400
So every project's got to have one owner owner, and that project needs to link up to the overall business strategy, it needs to fit where the organization is trying to go.
00:31:30.640 --> 00:31:40.319
Um, next thing is the A3, if you're just filling out an A3 as wallpaper and you're not using it to manage your project, you know, that's that's that's definitely a gap.
00:31:40.480 --> 00:31:45.839
And then finally, and most importantly, not having that weekly roadmap meeting.
00:31:46.000 --> 00:32:00.000
If you just do the the values mapping workshop and you don't follow it up with a weekly roadmap meeting, you're almost guaranteed to fail because other things are gonna come up, other things are gonna take priority, and the projects are gonna slide.
00:32:00.160 --> 00:32:05.519
And and you're gonna be stuck three months from now without making any progress.
00:32:05.759 --> 00:32:15.359
So, what I've laid out for you in the course of this, I don't know, 30 minutes, however long we've been here, is basically our fractional CI manager program.
00:32:15.759 --> 00:32:25.039
You know, at Allied Advisors, we use this program to help our clients build a culture of continuous improvement within the teams they already have.
00:32:25.200 --> 00:32:32.400
Instead of paying for very expensive consultants to come in and do projects and then leave and watch those projects fall apart.
00:32:32.640 --> 00:32:41.519
We want to help build up this skill set, build these tools within your team so that you become a self-sustaining group and this becomes a part of who you are.
00:32:41.680 --> 00:32:44.559
It becomes the cornerstone for your corporate culture.
00:32:44.799 --> 00:32:47.519
We want to come in, we want to help facilitate these workshops.
00:32:47.599 --> 00:32:56.799
We want to coach your team in those weekly roadmap meetings, and we want to help mentor them to get them to that next level within your career, within their career.
00:32:57.039 --> 00:33:02.000
So if this sounds, you know, like something you'd be interested in, please don't hesitate to reach out.
00:33:02.079 --> 00:33:03.200
We'd love to talk to you.
00:33:03.359 --> 00:33:06.640
We could talk about you know what value stream would make sense for you to start with.
00:33:06.720 --> 00:33:15.200
If you've got multiple value streams, value streams within your facility, uh block off a couple days for the workshop and then you know get after it.
00:33:15.359 --> 00:33:24.079
Come on site, knock it out, and and start really doing the uh the coaching and the hard work that delivers the results and really has the biggest impact.
00:33:24.559 --> 00:33:37.200
So again, if you have any questions, if if if this doesn't make sense to you, if you want to get into more details about any one topic, please don't hesitate.
00:33:37.359 --> 00:33:38.240
Give me a call.
00:33:38.400 --> 00:33:41.039
Would love to chat, would love to talk more about it.
00:33:41.279 --> 00:33:51.119
And really, again, thank you so much, guys, for listening to me, uh, for taking the time out of your schedule to learn more about our way of approaching systemic improvement.
00:33:51.279 --> 00:34:00.960
Um, and like I said, look forward to to having um some future guests down the road to get back to that, you know, that that that typical podcast format.
00:34:01.119 --> 00:34:03.680
I think we've got some great ones in store for you coming up.
00:34:03.839 --> 00:34:06.720
And uh anyway, look forward to seeing you then.
00:34:07.200 --> 00:34:08.159
Take care.
