{"id":871,"date":"2018-10-09T20:01:46","date_gmt":"2018-10-10T03:01:46","guid":{"rendered":"http:\/\/savingusmanufacturing.com\/blog\/?p=871"},"modified":"2018-10-09T20:01:46","modified_gmt":"2018-10-10T03:01:46","slug":"lean-frontier-summit-focuses-on-transformation-into-lean-enterprise","status":"publish","type":"post","link":"https:\/\/savingusmanufacturing.com\/blog\/reshoring\/lean-frontier-summit-focuses-on-transformation-into-lean-enterprise\/","title":{"rendered":"Lean Frontier Summit Focuses on Transformation into Lean Enterprise"},"content":{"rendered":"

On September 20-21,2018, Lean Frontiers<\/a> held their annual Lean Leadership Summits at the Westin Hotel on Jekyll Island.\u00a0 This was my fifth year to be invited as a speaker at the conference. This year\u2019s summit continued the combination of Lean Management,\/Lean Accounting, and Lean H.R.\/People Development summits that was begun last year.<\/p>\n

Co-founder Dwayne Butcher explained last that year that \u201cIt\u2019s about time that the whole enterprise be involved in becoming a Lean company. Lean is a business model and must therefore include every part of the business, including those in Executive Leadership, Accounting, HR, Sales, Product Development, Supply Chain. We need to breakdown the silos between these departments.\u201d<\/p>\n

Between the keynote speakers, there were four tracks related to Lean Management\/Lean Accounting, and Lean H.R.\/People Development.\u00a0 Besides giving my own presentation, \u201cHow Reshoring and Lean are Helping Rebuild Manufacturing,\u201d based on my new book Rebuild Manufacturing \u2013 the key to American Prosperity<\/em>, I attended the keynotes and several of the sessions in the Lean Management and Lean Accounting tracks.<\/p>\n

Lean Frontiers is not a consulting firm. Its sole focus is to provide learning opportunities to<\/p>\n

address:\u00a0 Enterprise?wide adoption of Lean and the foundational skills needed to become a Lean company.<\/p>\n

Co-founder Jim Huntzinger, said, \u201cThe first Lean Accounting Summit was held in 2005, and out of that summit, Lean Frontiers was born.\u00a0 Lean is still perceived as a program with short term results by too many, and we need to make the transition to Lean as a business model.\u00a0 We need to traverse unclear territory \u2014 trust the process to go from current condition to the target position. We can use XYZ Thinking:\u00a0 If we do X, then we will get Y, but if we get Z instead, then we will learn.\u201d<\/p>\n

Mike DeLuca of the Lean Enterprise Institute introduced a Lean Accounting A3 for attendees to provide ideas on how to achieve the aspiration of having Lean Accounting be self-sustaining within five years.<\/p>\n

Jim announced that the Journal of Cost Management has taken an interest in the summit and has a booth in the foyer. Lean Six Sigma Master Black Belt Gary Kapanowski, who is a Guest Editor for the Journal, invited attendees to sign up to contribute articles to the magazine in the coming year as they are interested in running more stories about Lean in the magazine.<\/p>\n

Then, he introduced the first keynote speaker, Karen Martin, author and President of the Karen Martin Group, spoke about her new book, Clarity First.\u00a0 <\/em>Clarity was a concept that she introduced in her book, The Outstanding Organization<\/em>, wherein she looked at common patterns at companies and individual performance. She covered four areas: clarity, focus, discipline, engagement in her previous book and was asked by her readers to expand on the topic of clarity.\u00a0 She discussed \u201cwhat is clarity and what it is not,\u201d saying that \u201cit is coherence, precision, and elegance. Information needs to be complete accurate and easy to understand. Think of your target audience as your customer. The opposite of clarity is ambiguity, which complicates, slows, frustrates, increases risk, and is expensive. Ambiguity is manmade and different than lack of certainty. Strategic ambiguity can be useful for certain purposes. \u201c<\/p>\n

She asked: \u201cWhat type are you? Clarity pursuer, clarity avoider, clarity blind\u201d She stated, \u201cChildren have a natural curiosity but it gets stamped down when they ask why. Same thing can happen at work. Close to curiosity is humility about how you are communicating and how you are being received. We have 180+ cognitive biases that affect communication. Rushing hampers clarity; take time to be clear. Fear can be underlining lack of clarity. Fear can be biggest reason for resistance to Lean transformation.<\/p>\n

She explained that clarity liberates purpose, priorities, process, performance, and problem solving:<\/p>\n

Purpose – great way to get people engaged about what you do.<\/p>\n

Priorities – defining true north.<\/p>\n

Process – Value stream thinking is critical to defining process<\/p>\n

Processes: documented, current, followed, consistently monitored, regularly improved; Standard work description is necessary for each task<\/p>\n

Problem solving – CLEAR<\/p>\n

C = clarity<\/p>\n

L = learn<\/p>\n

E = experiment<\/p>\n

A= access<\/p>\n

R = Rollout<\/p>\n

In conclusion she recommended, \u201cInfuse clarity into your organization\u2026You need a scoreboard at all levels of company showing how you are doing.\u201d<\/p>\n

Prior to the afternoon keynote speaker, Jean Cunningham announced the awardees for the Lean Enterprise Institute\u2019s Lean Accounting professor and student awards.\u00a0 Professor Laurie Burney of Baylor University and her student, Katie Kearny of KMPG received the award for their research on Lean Accounting that will be published this fall.<\/p>\n

Harry Moser, founder and head of the Reshoring Initiative was the afternoon keynote speaker. He spoke on \u201cTCO\/Reshoring: \u00a0Simplify your Lean Journey, Improve Employee Morale.\u201d\u00a0 Harry developed the Total Cost of Ownership (TCO) calculator that quantifies he hidden costs of doing business offshore, which is free for companies to use at www.reshorenow.org<\/a>. Harry highlighted the fact that the tide turned in 2016 between offshoring and reshoring as reshoring increased by 500% and offshoring fell by 75%.\u00a0 Reshoring and Foreign Direct Investment (foreign companies setting up plans in the U.S.) are responsible for an increase of nearly two million jobs in the U.S. \u00a0He reminded the audience that Lean leaders, W. Edwards Deming, John Shook, and Jim Womack all advised companies to identify the \u201ctrue cost,\u201d and that offshoring multiples the wastes to be eliminated through Lean:\u00a0 overproduction, waiting transport, overprocessing, inventory, motion, and defects. He stated that among the top ten reasons for reshoring are:\u00a0 \u201cquality\/rework\/warranty issues, freight costs, inventory, intellectual property risk, rising wages, and communication problems.\u201d<\/p>\n

He said, \u201cBy understanding the advantage of producing near the consumer, and the small TCO gap instead of the large price gap, U.S. companies can justify domestic investment, process improvement, automation, training, etc., and they do not have to sacrifice quality, delivery, time-to-market, or employees to be competitive and profitable.\u201d\u00a0 He announced two awards for reshoring for 2019: the first Sewn Products Reshoring Award and the second Metalworking Reshoring Award.<\/p>\n

In conclusion, he invited attendees to cooperate with the Reshoring Initiative by testing Made-in-USA impact on volume and price, incorporating TCO in your lean efforts, and documenting their reshoring cases.<\/p>\n

The day ended with a Townhall Conversation on \u201cThe Lean Economy\u201d in which panelists Jim Huntzinger, Tom Jackson, Harry Moser, and Bill Waddell discussed how Lean business and practice can be one of the most profound impacts for elevating a strong economy.<\/p>\n

On Friday morning, Mike Wroblewski, author of Creating a Kaizen Culture<\/em> and President of Dantotsu Consulting LLC, was the keynote speaker on the topic of \u201cLeading a Lean Transformation.\u201d\u00a0 He said, \u201cMost companies measure performance by EBITDA, which he defined as earnings before interest, taxes, depreciation and amortization. Cutting heads is the first thing management does to improve EBITDA by reducing costs. Which path are you on? Lean can be like the path to hell. You need upper management support but you also need lower level support. There are two things you can control – your effort and your attitude.\u201d<\/p>\n

He was taught Lean by Shifeo Shinzo from Japan in 1985 when he worked at Hill-Ron. He shared, \u201cWe did Kaizen events all week for SMED and after repeated Kaizen events, we got our die change from one hour down to 4 1\/2 minutes.\u201d He admonished, \u201c Kaizen needs to be your way life. It\u2019s the culture. Lean isn\u2019t meant to find blame faster. What do you do in the course of the day? Check email, respond to emails, make phone calls, plan, etc. How much time should you spend in Gemba? You should be spending 80% of your time in the Gemba. The standard you walk by is the standard you set for others.\u201d<\/p>\n

Space doesn\u2019t permit me to highlight all the excellent breakout presentations during the summit.\u00a0 If you haven’t started on your Lean journey, I recommend that you do so soon. If you are already on a Lean journey,I encourage you to put next year\u2019s Lean Leadership Week on your calendar.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

On September 20-21,2018, Lean Frontiers held their annual Lean Leadership Summits at the Westin Hotel on Jekyll Island.\u00a0 This was my fifth year to be invited as a speaker at the conference. This year\u2019s summit continued the combination of Lean Management,\/Lean Accounting, and Lean H.R.\/People Development summits that was begun last year. Co-founder Dwayne Butcher […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[140,51,6],"tags":[11,186,26,82],"class_list":["post-871","post","type-post","status-publish","format-standard","hentry","category-lean","category-manufacturing","category-reshoring","tag-american-manufacturing","tag-lean-accounting","tag-reshoring-2","tag-total-cost-of-ownership"],"_links":{"self":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts\/871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/comments?post=871"}],"version-history":[{"count":1,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts\/871\/revisions"}],"predecessor-version":[{"id":872,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts\/871\/revisions\/872"}],"wp:attachment":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/media?parent=871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/categories?post=871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/tags?post=871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}