Employee Involvement: The Heart of Lean Production

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Total Employee Involvement is the heart of the Toyota system, just like the wind that brings the sailboat to life. Employee Involvement should be managed as intensely as production and quality. Involvement includes all three segments of employees: Management, Workgroup and Individual. Employee Involvement is the direct participation of staff to help an organization fulfil its mission and meet its objectives by applying their own ideas, expertise, and efforts towards solving problems and making decisions. For Employee Involvement to thrive, management must create a conducive work environment that encourages team participation, generation of ideas and play an active role to reinforce employee involvement. In this presentation, you will learn how to harness the power of Employee Involvement to achieve the dual objectives of job satisfaction and development of a Lean enterprise. LEARNING OBJECTIVES 1. Understand the key concepts and principles of total employee involvement. 2. Acquire knowledge of the various channels of employee involvement. 3. Learn how to apply the process and tools to improve employee involvement. 4. Understand the critical role of management in sustaining total employee involvement. To download this complete presentation, visit: https://www.oeconsulting.com.sg

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Presentation Transcript

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© Operational Excellence Consulting. All rights reserved. 1 © Operational Excellence Consulting. All rights reserved. 1 Employee Involvement The Heart of Lean Production

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© Operational Excellence Consulting. All rights reserved. 2 © Operational Excellence Consulting. All rights reserved. 2 Learning Objectives Understand the key concepts and principles of total employee involvement Acquire knowledge of the various channels of employee involvement Learn how to apply the process and tools to improve employee involvement Understand the critical role of management in sustaining total employee involvement

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© Operational Excellence Consulting. All rights reserved. 3 Contents 1.  Key Concepts Principles of Employee Involvement 2.  Segments of Employee Involvement 3.  Common Channels of Employee Involvement 4.  Process Tools for Employee Involvement 5.  Role of Management NOTE: This is a PARTIAL PREVIEW. To download the complete presentation please visit: http://www.oeconsulting.com.sg

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© Operational Excellence Consulting. All rights reserved. 4 Introduction to Employee Involvement §  The Toyota Production System consists of five main elements: Stability Standardization Just-in-Time Jidoka and Involvement §  Total Employee Involvement is the heart of the Toyota system just like the wind that brings the sailboat to life §  Employee Involvement should be managed as intensely as production and quality §  Involvement includes all three segments of employees: 1.   Management 2.   Workgroup 3.   Individual

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© Operational Excellence Consulting. All rights reserved. 5 Introduction to Employee Involvement §  Taylor’s assumptions regarding worker capability are no longer valid §  Today’s workers are better educated and more literate than ever before and our modern culture places a premium on creativity and individual expression §  Moreover today’s companies need flexibility and creativity to traverse rapidly changing markets technology and financial conditions §  We need all hands on the deck to avoid the rocks and other dangers in the competitive marketplace

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© Operational Excellence Consulting. All rights reserved. 6 © Operational Excellence Consulting. All rights reserved. 6 All Hands on Deck §  To continually improve we need to engage all our team members especially those in the front lines where the real work gets done §  Only they can fix the myriad small problems that invariably add up to monster problems Very few big problems Few medium- sized problems Many small problems How problems are distributed at most organizations. Source: Adapted from ‘Lean Production Simplified’ Pascal Dennis

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© Operational Excellence Consulting. All rights reserved. 7 “Some in management positions operate as if they are in a tree of monkeys. They make sure that everyone at the top of the tree looking down sees only smiles. But all too often those at the bottom looking up see only asses.” Simon Sinek

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© Operational Excellence Consulting. All rights reserved. 8 © Operational Excellence Consulting. All rights reserved. 8 Source: Adapted from ‘Lean Production Simplified’ Pascal Dennis Employee Involvement is the Heart of the Lean Production System Stability Standardization Just-In-Time Jidoka Customer Focused Goals: Highest quality lowest cost shortest lead times by continually eliminating muda Involvement: Flexible motivated team members continually seeking a better way

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© Operational Excellence Consulting. All rights reserved. 9 What is Employee Involvement §  A participative process that uses the input of employees to increase their commitment to the organization’s success §  The direct participation of staff to help an organization fulfil its mission and meet its objectives by applying their own ideas expertise and efforts towards solving problems and making decisions §  Regular participation of employee in deciding how work is done making suggestion for improvement goal setting planning and monitoring of their performance

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© Operational Excellence Consulting. All rights reserved. 10 What Employee Involvement Is NOT §  Taylor’s principles of scientific management §  Excludes managers and the trade union §  Formed to address external customer complaints §  An old-fashion “QC” circle activity §  An employee suggestion scheme §  Another one of those “extra-curricula activities”

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© Operational Excellence Consulting. All rights reserved. 11 © Operational Excellence Consulting. All rights reserved. 11 A Thinking Worker is a Productive Worker Thinking Worker Productive Worker

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© Operational Excellence Consulting. All rights reserved. 12 © Operational Excellence Consulting. All rights reserved. 12 Employee Involvement and Maslow’s hierarchy of human needs Self-actualization needs Esteem needs Social needs Safety needs Physiological Needs Degree of Employee Involvement

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© Operational Excellence Consulting. All rights reserved. 13 © Operational Excellence Consulting. All rights reserved. 13 Employee Involvement includes Management Teams Workgroups and Individuals System Facility Teams Productivity committees QC/Kaizen Circles Zero Defect Movements Safety Groups MBO Groups Workshop Involvement Movements Suggestion Groups Mini Think Tanks Problem-solving Groups Jishu Hozen Groups Workshop Talk Groups Factory-of- the-Future Groups Recreational Activities Groups A.I. Groups Training Resource Groups

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© Operational Excellence Consulting. All rights reserved. 14 Goal of Employee Involvement §  The explicit goal of all involvement activities is to improve productivity quality cost delivery time safety and environment and morale PQCDSM by: –  Solving specific problems –  Reducing hassles –  Reducing risk –  Improve team-member capability

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© Operational Excellence Consulting. All rights reserved. 15 © Operational Excellence Consulting. All rights reserved. 15 3 Ingredients for Employee Involvement Success Authority Employees need to be given the authority to participate in substantive decisions Training or Experience Employees need to have training or experience with appropriate decision-making skills Incentives Incentives to participate must be present 1 2 3

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© Operational Excellence Consulting. All rights reserved. 16 © Operational Excellence Consulting. All rights reserved. 16 How Employee Involvement Improves Decisions Identify and define problems better Usually identify more and better solutions More likely to select the best option Employee Involvement

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© Operational Excellence Consulting. All rights reserved. 17 Benefits of Employee Involvement §  Increased employee productivity §  Increased plant performance §  Improved organizational decision-making capability §  Improved work attitude §  Improved employee well-being §  Reduced costs through waste elimination §  Increased job satisfaction

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© Operational Excellence Consulting. All rights reserved. 18 © Operational Excellence Consulting. All rights reserved. 18 3 Key Segments of Employee Involvement Source: Adapted from ‘Kaizen’ Masaaki Imai Management- Oriented Group- Oriented Individual- Oriented

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© Operational Excellence Consulting. All rights reserved. 19 © Operational Excellence Consulting. All rights reserved. 19 Setting up a 5S Steering Committee facilitates the implementation of Small-Group Activities at the shopfloor Leader: Factory manager Production Level Leader: Division manager Implementation Level ILLUSTRATIVE 5S Steering Committee Division A Department C Team C1 Team C2 Department D Team D1 Team D2 Department E Team E1 Team E2 Division B Department F Team F1 Team F2 Department G Team G1 Team G2 Department H Team H1 Team H2 Evaluation Certification 5S Planning Office Kaizen Projects

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© Operational Excellence Consulting. All rights reserved. 20 Planning and operation All-at-once activities Deploying the 5S activities at specific workplaces Kaizen projects Technical training Kaizen announcements and certification The 5S Implementation Plan defines a roadmap for step- by-step employee involvement activities ILLUSTRATIVE Promotional meetings Education Basic planning Setting up of 5S Steering Committee and Sub-committees Planning review PR Posters calling for participation Monthly themes Selecting 5S pilots Start Releasing 5S manuals for 5S activities Pilot 1 Pilot 2 Company-wide rollout Step-by-step rollout Step 1 Step 2 Step 3 etc. Announcements as appropriate Kaizen technology and maintenance technology Initial training Follow-up training 5S audits and certification inspections

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© Operational Excellence Consulting. All rights reserved. 21 Involvement of Management and Workgroups in fuguai tagging during “Initial Cleaning” illustrates the importance of TPM to the company During initial cleaning Afterwards – Everyday process Tag is removed only after the repair is made

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© Operational Excellence Consulting. All rights reserved. 22 © Operational Excellence Consulting. All rights reserved. 22 The Compliance Pyramid establishes a structure for Standard Work and facilitates employee involvement Make it the only way: §  No alternatives left Warning: §  Warns for abnormalities Showing: §  One-point-lesson §  Visual information Reading: §  Manuals §  Procedures §  instructions Fail-safe Visual control tools Visual aids Procedures Instructions and Manuals The Compliance Pyramid

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© Operational Excellence Consulting. All rights reserved. 23 A Culture of Continuous Improvement is a result of effective employee involvement at all levels Materials and parts Measurements People Methods Machines equipment Feed in materials Ship to customers Standard Sloppy work defective off-standard products That’s not what they ordered Customer request Different product Control Points Elements for Building Quality into Products

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© Operational Excellence Consulting. All rights reserved. 24 Kaizen Circle Roles Responsibilities Role Responsibilities Circle Member Attends meetings. Contribute ideas. Choose and analyze problem. Recommend and implement solutions. Make presentations. Facilitator Attend training. Guide team members through problem-solving process. Attend circle meetings. Complete and submit KCA meeting records. Advisor Attend training. Provide technical and administrative advice as required. Attend circle meetings. Help coordinate presentations to management. Circle Trainer Develop and conduct training. Attend circle meetings if requested. Provide problem-solving training if requested. Collect meeting records and report to management. Manager Encourage circle formation and involvement. Periodically check circle progress and offers suggestions. Approve recommendations. Attend presentations.

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© Operational Excellence Consulting. All rights reserved. 25 © Operational Excellence Consulting. All rights reserved. 25 3 Essential Factors of Bottom-up Activity §  Education and training activities §  Learning about the principles and rules §  Learning through practice OJT §  Top management policy §  Participation of senior executives §  Administrative targets §  Competition between departments Motivation Compelling Force Skills Development Bottom-up Activity §  Understanding the purpose §  Reward system §  Evaluation system §  Information from outside Source: Kaizen Teian 1

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© Operational Excellence Consulting. All rights reserved. 26 Involving Employees to generate quantity of ideas “The only way to have a good idea is to have a lot of ideas.” Winston Churchill

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© Operational Excellence Consulting. All rights reserved. 27 © Operational Excellence Consulting. All rights reserved. 27 The Suggestions Cycle Encouraging People to Participate Improvement Proposals Review Evaluation Guidance Awards Recognition Source: Kaizen Teian 1 - Developing Systems for Continuous Improvement Through Employee Suggestions

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© Operational Excellence Consulting. All rights reserved. 28 © Operational Excellence Consulting. All rights reserved. 28 Hoshin Planning Model helps to align Employee Involvement activities to the organization’s vision Source: Yoji Akao 1991 q  Vision q  Objectives q  Strategy q  Resources q  Action q  Schedule Measures Hoshin Plan Senior Management Implementation Teams Middle Management

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© Operational Excellence Consulting. All rights reserved. 29 © Operational Excellence Consulting. All rights reserved. 29 Hoshin Planning at 3 Different Levels •  Vision •  Mission •  Shared Values Management by Principles •  Objectives Setting •  Target-means Deployment Management by Priorities •  Network of Inter-related Projects •  Cross-functional Management Management by Projects

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© Operational Excellence Consulting. All rights reserved. END OF PREVIEW To download this presentation please visit: www.oeconsulting.com.sg

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