The six phases of a Lean Transformation Project
A Lean Transformation is a project that should be carried out step by step. According to our experience it must go through the following six phases which we are going to describe pointing out the risks that can be incurred in each phase :
Phase 1: Sharing objectives
Top management defines medium term objectives to be achieved through the lean transformation process.
In a few and short strategic workshops these objectives are discussed and shared with first line managers.
The main risk in this phase is that the objectives are too generic or that they are perceived as an imposition. Involvement, discussion, brain storming are important in order to define objectives that are at the same time realistic, ambitious and shared.
Phase 2: Training
Through a number of training sessions company’s personnel are taught Lean principles and techniques. People from Production and Product Development must participate in these training sessions which can be useful also for people in other areas.
The main risk in this phase is that lean principles, simple as they are, are judged inadequate or inapplicable. It is therefore advisable to launch from the very beginning a few work teams with limited objectives that allow people to understand how it is possible to get meaningful results in a very short time.
Phase 3: Analysis and Awareness
An in depth analysis carried out using specific methods and tools, points out problems and wastes of the “current state” . Based on the results of this analysis a new organizational solution based on lean principles is devised. This solution, that we call “future state”, becomes the objective of the lean transformation process.
A lean transformation requires a deep change in people’s mentality and the risk is that they refuse to give up their value systems and their consolidated habits.
What is needed is to replace old values like power, status, individual objectives, self fulfilment with new values like service, cooperation, team spirit, common objectives.
To this purpose it is useful to set up an inter functional steering group that includes Consultants and Managers from all areas with the responsibility to coordinate the whole project.
It is also necessary to define, discuss and share quantitative objectives and the best indicators to measure them.
In order to avoid spending too much time on the analysis, it is important to launch the first work teams as soon as possible and to explain the future state in a simple and visual way.
Another important aspect is to work simultaneously on processes , methods and behaviours involving a team made of both HR consultants and lean transformation consultants.
Phase 4: Start up
In order to implement the future state, a number of work team are launched, each with a definite set of objectives. Normally at the beginning team members are highly motivated.
It is very important to appoint an internal leader of the whole project of lean transformation in order to avoid problems like ineffective management of single teams, poor coordination among the teams, poor involvement etc.
The internal leader should be a capable and competent person but, at the same time, he/she should have a very strong personal motivation and the ability to motivate people and to coordinate their work.
For each team it is necessary to appoint a team leader and to identify the expected results, the activities to be performed and the indicators needed to measure the achievement of the results.
It is crucial to involve as many people as possible inside and outside the operations area in order to stimulate interest, curiosity, creativity.
It is also essential that people could see concrete results achieved within a very short time.
Phase 5: Consolidation
The first work teams are concluded and new ones are started.
The risk to be avoided in this phase is that the project becomes routine or is turned into a habit. To this purpose it is important to emphasize and divulge the results achieved, underline the contribution of each person to the success of the project, create events of communication to the whole organization.
Among these events particularly effective can be “Open days” or “Lean Schools”.
Other valid communication tools are well placed billboards and “newsletters” .
Phase 6: Enhancement
Work teams set up to face new problems and achieve ever better results have become part of the company’s DNA. The lean transformation process is completed and yet the story has just begun. Now the tension towards continuous improvement must become one of the company’s leading values.
What is needed is to maintain a high level of attention and enthusiasm.
The methodology described above ensures the success of a lean transformation project.
In its implementation it is of basic importance to pay special attention not only to the technical side but also to the human side, or in other words to such aspects as communication, motivation, involvement.
That is the reason why we involve in lean transformation projects not only experts in manufacturing, logistics and product development, but also experts in change management and HR management.