1st Edition

The Psychology of Lean Improvements Why Organizations Must Overcome Resistance and Change the Culture

By Chris A. Ortiz Copyright 2012
    182 Pages 16 B/W Illustrations
    by Productivity Press

    Fear of change—we all experience it. Some accept change immediately, some gradually adapt, while others may never get there. Whether it’s poor leadership, the inability to change, or pure ego, this Shingo Prize-winning book explores this perplexing commitment to inefficiency.

    Winner of a 2013 Shingo Prize!

    The Psychology of Lean Improvements: Why Organizations Must Overcome Resistance and Change the Culture examines the psychology behind why businesses avoid Lean transformations. It investigates why businesses cling to the eight deadly wastes and why they still find ways to place continuous improvement on the back burner.

    Frequently sought out for his expertise in Lean manufacturing, Chris Ortiz has been featured in a number of trade publications and on the television show Inside Business with Fred Thompson. In this book, Mr. Ortiz breaks down the fear of change within executives and organizational leaders. He examines the psychology of dysfunction, provides insight into why so many businesses fall short in creating visions for growth and prosperity, and identifies tools that can help you address resistance to change.

    Detailing implementation techniques with a proven track record for success, the book considers specific strategies that can be helpful towards improving your company and changing its culture—including cellular manufacturing, total productive maintenance, setup reduction, Kanban, visual communication, and in-line production. It explains how to get started on your Lean transformation, describes why an economic downturn might be a good time to embrace Lean, and warns of the dangers behind failing to do so.

    Chris A. Ortiz is the founder and president of Kaizen Assembly, a Lean manufacturing training and implementation firm in Bellingham, Washington. Watch Chris has being interviewed on Inside Business with Fred Thompson on CNN Headline News.

    (http://www.youtube.com/watch?v=LMm3fVsbPtM)

    Introduction

    The Psychology of Change
    Perception of Change
    Victimizing
    Letting Go
    Lean Is a Battlefield
    Cost–Quality–Delivery
         Cost
         Quality
         Delivery
    Changing Your Business Strategy for Lean
         Productivity
         Quality
         Inventory/WIP
         Floor Space Use
         Throughput Time
    Psychology of Metrics

    Leading the Lean Journey
    What Have We Done for Our Customers Today?
    Dangers of Not Going Lean in a Down Economy
         Business Is Good, Why Improve?
         Business Is Good, We Must Improve
         Business Is Poor, Why Improve?
         Business Is Poor, We Must Improve
    Changing into a Lean Leader
         Acknowledge and Involve Your Staff
         Provide an Environment in Which People Can Be Successful
         Do Not Humiliate Anyone Who Works for You
         Create an Environment Where Mistakes Are Okay
         Do Not Hide behind Your Position
         Be Approachable
         Admit Your Mistakes
         Listen in a Way That Encourages Employees to Talk to You
         Be Clear in Your Requests
         Stand behind Your People
         Be a Good Communicator
    Leaders
    Need an ROI
         Training
         Team Building
         People Development
         Strategic Planning
    World-Class Products Need World-Class Processes
    You Are the Creator of Your Business Reality

    The Psychology of Waste
    Psychology of Overproduction
    Psychology of Overprocessing
    Psychology of Motion and Transportation
    Psychology of Inventory
    Psychology of Defects
    Psychology of Waiting
    Psychology of Human Potential
         "I’m Paid by the Hour"
         No Investment in the People
         People Are Expendable
    Psychology of Waste: Conclusion

    The Psychology of Dysfunction
    Misconception of Working Hard
         Speed!
    Living with Waste
         Living with Overproduction
              Setup
              Quality Problems
              Machines Issues
    Living with Motion
    Living with Transportation
    Living with Overprocessing
         Administrative Functions
         Extra Steps and Redundant Effort
         Inefficient Machines
         Inability to Identify a Completion Point
    Living with Defects
    Living with Waiting
    Living with Inventory
         Facility Space
         Production Process

    Making Change Happen with 5S
    5S and Visual Control
         Sort
         Set in Order
              How to Make a Shadow Board
              Personal Tools: Dilemma or Solution?
              Tool Check Cards
              Right Sizing during Set in Order
              Examples of Right Sizing
    Shine
    Standardize
    Sustain
         Human Will
         End of the Cleanup Procedures
         Daily Walkthroughs
         5S Audit
         5S Tracking
         Incentives
    Psychology of 5S

    Making Change with Lean
    What Type of Manufacturer Are You?
         Process Based
         Assembly Line
         Cellular Manufacturing
         Inline Production
    Cellular and Inline Production
    Inline Production
    Total Productive Maintenance (TPM)
         5S Maintenance
         Baseline Equipment and One-Turn Method
         Operator PM Requirements
              Proactive TPM
              Predictive TPM
         Maintenance Technician
         Visual TPM Boards
    Kanban and Material Replenishment
    Setup Reduction and Quick Changeover
         Layout
         Tool Placement
         Visual Setup Boards
         Material Handling
         Intermediate Jigs
    Visual Metrics and Performance
         Facility Performance
              Sales
              On-Time Delivery (OTD)
              Productivity
              Quality
              Safety
    Metric Communication Boards (Production)
    Production Control Boards

    Keeping the Lean Fire Going
    Goals
    Pay-for-Skill Program
         Number of Jobs
         Experience
         Attendance
         Kaizen and Kaizen Event Participation
         Quality Errors
    More Returns
    Lean Training Programs
    New Employee Training Programs
         Level 1: Company Product Overview Training
         Level 2: Quality Overview
         Level 3: Introduction to Lean Manufacturing
              Eight Wastes
              5S and the Visual Workplace
              Standard Work
              Available Time
              Kaizen
         Level 4: Mock Line Training
    Cross-Training Program
         Levels of Progression
              Novice (N)
              Certified (C)
              Trainer (T)
         Temporary Worker Progression
    Training Managers and Engineers
         Managers
         Engineers

    Conclusion
    Glossary
    Index

    Biography

    Chris A. Ortiz is the founder and president of Kaizen Assembly, a Lean manufacturing training and implementation firm in Bellingham, Washington. Chris has been featured on Inside Business (http://www.youtube.com/watch?v=LMm3fVsbPtM) with Fred Thompson on CNN Headline News. He is the author of five books on Lean manufacturing, (see list below). Chris has been featured in dozens of publications including Assembly Magazine, Industrial Engineer, Industrial Management, Metal Finishes, Plant Engineer, Auto Body News, and Collision Repair Magazine to name a few.

    Chris Ortiz is a frequent presenter and keynote speaker at conferences such as the IIE Annual Conference and the NACE Automotive Exposition. He has also been interviewed on KGMI radio, and has written numerous articles on Lean manufacturing and business improvement for various regional and national publications. Chris also was recently on the national radio show the American Innovator. He is invited to speak at a few international business and manufacturing conference in Europe every year.

    Kaizen Assembly’s clients include industry leaders in aerospace, composites, processing industries, automotive, rope manufacturing, restoration equipment, food processing, and fish processing.

    Mr. Ortiz has been trained by the John Costanza Institute of Technology in "Demand Flow Technology" and by the Georgia Institute of Technology for ISO 9001: 2000 Internal Quality Auditing. He is also a member of the Institute of Industrial Engineers and the Society of Manufacturing Engineers. He is the creator of the LEAN Marketplace (www.leanmarketplace.com). Chris Ortiz is considered to be an expert in the field in lean manufacturing implementation.

    He is the author of:

    • Kaizen Assembly: Designing, Constructing, and Managing a Lean Assembly Line (Taylor and Francis, 2006). Now in its second print.
    • Lesson from a Lean Consultant: Avoiding Lean Implementation Failure on the Shop Floor (Prentice Hall, 2008)
    • Kaizen and Kaizen Event Implementation (Prentice Hall, 2009). Translated into Portuguese
    • Lean Auto Body (Kaizen Assembly, 2009)
    • Visual Controls: Applying Visual Management to the Factory (Taylor and Francis/Productivity Press, December 2010).