Operational Excellence Tag

Despite its widespread application and success across various industries, there are still many misunderstandings of Lean and Lean leadership. Here are eight common misunderstandings of Lean that we have found when working across industry, the service sector, and commerce.

1. Focus on Tools Over Philosophy:
   • Misunderstanding: Many believe Lean is primarily about implementing specific tools and techniques (like Kanban, 5S, or Kaizen).
   • Reality: Lean is fundamentally a philosophy and mindset focused on continuous improvement and the reduction of waste. Tools are secondary to understanding and embodying principles that build a culture of Lean.
2. Top-Down Implementation:
   • Misunderstanding: Lean initiatives are often thought to be most effective when driven from the top down, with leaders dictating changes.
   • Reality: While leadership support is critical, Lean thrives on engaging all employees, fostering a culture of bottom-up ideas and continuous improvement. When all are focused on Lean improvement, the entire business thrives. The role of leadership becomes the removal of obstacles so all can drive capability and capacity.
3. Lean Equals Cost Cutting:
   • Misunderstanding: Lean is frequently equated with cost reduction measures.
   • Reality: This is still the overarching belief in many companies, but it is misguided. Lean aims to enhance value to the customer by eliminating waste, which can lead to cost savings, but the primary focus is on improving quality, efficiency, and employee satisfaction, not on reducing headcount.
4. Lean is Only for Manufacturing:
   • Misunderstanding: Lean principles are often seen as applicable only to manufacturing environments.
   • Reality: Lean principles can be applied across various sectors, including finance, healthcare, software development, and service industries, wherever process improvement could be beneficial. We have seen Lean employed from improving the throughput in operating theatres to debt recovery, to cross-country transport of human organs for transplantation, to management of resources for care in the community.
5. Immediate Results Expected:
   • Misunderstanding: There is an expectation that Lean implementation will yield immediate and dramatic results.
   • Reality: While the application of Lean can result in improvement in as little as one shift, Lean is a long-term commitment to a culture of continuous improvement. Significant results often take several years and demand sustained effort to materialise.
6. Lean is a One-Time Project:
   • Misunderstanding: Some view Lean as a project, a sort of ‘bolt-on’ with a defined beginning and end.
   • Reality: Those who have been successful at Lean implementation know that Lean is an ongoing journey of continuous improvement to create a sustained cultural change. It requires persistent effort, regular assessment, and adaptation.
7. Standardisation Stifles Creativity:
   • Misunderstanding: Lean’s emphasis on standardisation and process control is thought to stifle creativity and innovation.
   • Reality: Standardisation provides a stable foundation from which innovation and creativity can flourish. Standardisation eliminates chaos and frees up resources so each team member can focus on creative problem-solving and improvements.
8. Lean Ignores People Development:
   • Misunderstanding: Lean is sometimes seen as focusing solely on process improvement, neglecting the development of people.
   • Reality: Lean leadership emphasises the essential input of people and invests heavily in training and empowering employees to solve problems and improve processes.

People + Process = Performance

Understanding these aspects will help leaders more effectively implement Lean principles and cultivate a culture of continuous improvement within their organisations.

If you would like to work through these misunderstandings and drive Lean processes in your organisation, then please get in touch.

Over the years, we have had the privilege of working with some of the world’s most respected organisations to drive significant performance improvements. One such project was our Lean Plant Leadership Programme (LP2) with a leading engine valve manufacturer in the automotive industry. This reflection explores the challenges faced, the solutions implemented, and the impactful results achieved through our collaboration.

Our client is a major manufacturer in the automotive industry, supplying engine valves to most car manufacturers globally. In recent years, the company faced increasing competition from low-cost manufacturers, coupled with rising scrap rates and high levels of finished product. This competitive pressure necessitated a reevaluation of their processes to boost performance and sustain long-term success.

The company engaged Project7 to help coach and integrate a Lean Leadership Programme to enhance productivity and equipment reliability.

Our approach was designed to create a leaner structure, mentality, and culture within the organisation, ultimately leading to improved performance and a more resilient company culture.

The primary challenge was the need for a clearly defined, standardised operating system across their plants. This inconsistency led to varied processes, systems, product quality, and delivery outputs, negatively impacting customer confidence. The company urgently needed access to lean tools and principles to establish a standard foundation for operational excellence across its engine components division.

Specifically, the intervention required:

• Creation of a standard foundation for operational excellence.
• Integration of effective engineering maintenance processes to improve asset management and equipment availability.
• Identification of the right processes and the right people to achieve sustainable performance output.

These objectives were to be achieved through a Back to Basics approach, focusing on core manufacturing business elements.

After a thorough assessment, Project7, along with our client, decided to create and deploy the Lean Plant Leadership Programme (LP2). This solution aimed to design, implement, and evaluate a world-class operating system that would be standardised and applied across 14 manufacturing sites globally.

The programme encompassed seven steps of the P7 Way:

• Strategy into Action (Policy Deployment)
• Tiered Visual Performance Management (TVPM)
• Short Interval Control & Performance Dialogues
• Process Confirmation & Go Look See
• Setting Clear & Aligned Targets; Problem-solving Level 1
• Coaching for Success; Problem-solving Level 2
• Talent Management and Leadership Development

These steps were adapted and implemented to create an Engine Components Operating System. Project7 worked closely with the executive team to define their needs clearly and focus on developing the organisation through lean techniques and best practices.

Within each site, a master schedule was created with local leadership teams to drive measurable activities against performance targets. Clear directional targets were established, and processes were created to guide the improvements.

Implementing LP2 led to significant improvements in business performance across all operations. Each site underwent a four-month implementation period based on our 3P approach, yielding impressive results:

• 31% Improvement in Overall Equipment Effectiveness
• 33% Improvement in Equipment Cycle Time (Bottleneck)
• 67% Reduction in Premium Freight
• 21% Reduction in Change Overtime, Hit to Hit
• 4% Reduction in Scrap
• 7% Reduction in Temporary Resource
• 11% Reduction in Overtime
• 21% Reduction in Finished Goods Inventory
• $24 Million Cost Avoidance in Capital Investment

The programme’s success extended beyond these metrics, creating a high-performing team culture and standardising operations across all 14 plants. Introducing tiered visual performance management, short interval control, and robust governance structures ensured sustained improvements and continuous knowledge transfer.

Lessons Learned and Future Outlook

Reflecting on this project, several key lessons emerge:

1. Standardisation is Key: Establishing a standardised operating system across multiple sites is critical for consistent performance and quality.
2. Lean Leadership: Integrating lean principles and leadership development fosters a culture of continuous improvement and accountability.
3. Collaborative Approach: Close collaboration with the client’s executive team ensures the solutions are tailored to their specific needs and objectives.
4. Sustainable Change: Focusing on both process improvements and cultural shifts ensures that the changes are sustainable in the long term.

The Lean Plant Leadership Programme demonstrated the profound impact that structured, strategic interventions can have on an organisation’s performance. By creating a leaner, more resilient structure and culture, our client not only enhanced its operational efficiency but also strengthened its competitive position in the market.

At Project7 Consultancy, we remain committed to helping organisations achieve their strategic goals through targeted performance improvements.

Please get in touch with us for more information on how Project7 Consultancy can help your organisation achieve similar results.

5S is a well-known and widely implemented methodology. Its steps—Sort, Set in Order, Shine, Standardise, Sustain—are fundamental to creating an organised and efficient workplace. However, for anyone who feels they have mastered 5S, there are always new layers of value and insight to uncover. This article explores how 5S can be continually leveraged to drive innovation, efficiency, and cultural transformation.

The Deeper Value of 5S

Lean tools, including 5S, have often been the subject of gimmicks or complex graphics to try and make a supposed original point. Many of you, we are sure, will have seen new constructs around 8S, 11S, or even 14S. However, the essence of 5S has proven sufficient for around 50 years to transform from the simplest to the most complex work environments, both inside and outside of manufacturing. This is why we argue that if you learn why the 5 S’s are important and execute them correctly, then nothing else is needed.

Simplicity

The original 5S methodology (Sort, Set in Order, Shine, Standardise, Sustain) is simple and easy to understand. It provides a clear framework for organising workspaces, eliminating waste, and improving efficiency without adding unnecessary complexity. The key to this simplicity is to let all the individuals who work in the area be engaged in the change and particularly understand why the change is needed. In this way, they become their own experts, understanding the process and the need without becoming overcomplicated. As a result of this engagement, they are also far more likely to sustain the change. We often see ‘experts’ parachuted in to run a 5S exercise only to see the area back to its chaotic state, sometimes within hours, as those who will need to own the solution were not integral to building the newly organised 5S area. 5S doesn’t need experts; it needs engagement.

Comprehensive Coverage

The 5S methodology covers a broad range of areas essential for workplace organisation and efficiency. It addresses the key aspects of sorting out unnecessary items, organising necessary items, cleaning, and maintaining workspaces, establishing standardised procedures, and sustaining improvements over time. Don’t get fixated on making things pretty; make them functional, be that in organising a production line or even at home.

In one paper converting plant, a very large spanner was used under a ream cutter. It was the only place that spanner was ever used. In the 5S exercise, the operator said:

 I suppose that this spanner will now have to go in the tool store or on a shadow board.”

The operator had always kept the spanner under the machine ‘at the point of use’ where he needed it. As it wasn’t a trip or other hazard, we enabled him to put a shadow right at the place he needed it. He had his tool to hand at the right and most efficient place, and as a bonus, became an advocate for 5S methodology. 5S is about workplace optimisation, not beautification.

Adaptability

The 5S methodology has proven to be highly adaptable and has been applied to various types of commerce and industry, including manufacturing, office settings, healthcare facilities, and even virtual workspaces. You can even 5S your computer desktop! Just using 5 ‘S’s has proven in all these environments to be adaptable, allowing organisations to customise and scale the approach to suit their specific needs and circumstances. So why add unnecessary steps that over-complicate what already works?

Focus on Fundamentals

By focusing on the fundamental 5 steps of workplace organisation and standardisation, the 5S methodology helps build a solid foundation for continuous improvement initiatives. Just 5 ‘S’s used properly will instil discipline, orderliness, and a culture of cleanliness and efficiency within any organisation.

Low Cost and High Impact

Implementing the 5 ‘S’s typically requires minimal financial investment, as it primarily involves changes in behaviour, processes, and workplace layout rather than complex nugatory steps, costly equipment, or new technology. Yet, these simple steps consistently yield significant benefits across businesses in terms of productivity, quality, safety, and employee morale when leadership and teams commit.

Gateway to Further Improvement

While some organisations have chosen to expand beyond the original 5S framework, starting with the proven basics provides a stepping stone for more advanced Lean practices. Once the 5S principles are firmly established and sustained, learning organisations may choose to explore additional Lean tools and techniques to further enhance performance. However, these do not need to include overcomplicating 5S, which has already been proven to work. Expand from 5S into Leader Standard Work, Short Interval Control, Process Confirmation, Visual Management, etc., rather than trying to fix what is not broken.

Focus on Continuous Improvement

The essence of the 5S methodology lies in its emphasis on continuous improvement. By regularly reviewing and refining workplace practices, organisations can continually strive for higher levels of efficiency, quality, and safety without adding more “S’s” to the framework. Continually refine the workplace solution using PDCA, and reinforce what is known to work without adding extra complexity to 5S, which also adds risk.

Summing Up

While some organisations may find value in expanding the 5S methodology to include additional “S’s,” we don’t see the value. With our many years’ of proven experience, we put considerable weight behind the argument that just the original 5 S’s are sufficient, complemented by this methodology’s simplicity, comprehensive nature, adaptability, cost-effectiveness, and focus on continuous improvement.

Implementing the 5S methodology completely and proactively will provide a solid foundation for Lean transformation and drive meaningful improvements in organisational performance. In short, ‘we can put our house in order’ without messing with what already works; keep it simple, commit, sustain, and quickly move on to the next step in your continuous improvement journey.

For more information on how Project7 Consultancy can help you with your Operational Excellence, please contact us.

We previously undertook a significant project with London Underground (LU) to address the issue of staff availability, a critical factor affecting their overall performance and customer satisfaction. Our goal was to help LU enhance their operational efficiency by reducing absenteeism among line operations staff. The impact of this project has been profound, and we are pleased to share our reflections on the journey, the challenges faced, and the outcomes achieved.

Understanding the Challenge

London Underground operates one of the busiest metro systems globally, with over 1.34 billion passengers annually. The performance and reliability of the Tube are vital for the city’s daily functioning. However, LU was experiencing a decline in reliability performance since 2016, primarily due to increasing staff absenteeism. 

Absenteeism led to service cancellations, lost customer hours, and significant operational costs, amounting to approximately £48 million per annum.

Our initial assessment identified three main causes of poor staff availability:

1. The existing Attendance at Work Policy was not robust enough to address sustained absenteeism effectively.
2. The application of the policy by key stakeholders lacked consistency and timeliness.
3. There was an inadequate capability among managers to handle absenteeism issues properly.

Implementing Solutions

To tackle these challenges, we began with a comprehensive review of the current absence management processes. This involved deep-diving into individual absence cases, evaluating adherence to procedures, and understanding the mindsets and behaviours of those involved in managing absences.

We piloted a Visual Performance Management (VPM) process in the worst-performing areas, identifying key metrics to monitor and manage performance. Area leaders were coached on conducting regular performance dialogues and using structured problem-solving techniques. This approach led to a significant reduction in absenteeism, from 16% to 9%, within an initial 12-week period.

A Project Management Office (PMO) was established for Line Operations to oversee the improvement programme. We developed and deployed a standardised Tiered Visual Performance Management system across all line operations, ensuring transparency and facilitating regular performance reviews.

Reflecting on the Impact

The impact of our interventions was remarkable. For train operators in Line Operations, the number of employees on restricted duties was reduced from 85 (2.4%) to 35 (1%), a 58% improvement. This reduction resulted in a cost avoidance of £2.4 million in salaries per annum within the first nine months.

Additionally, the overall number of employees off sick across the network decreased by 14.2%, leading to additional cost savings. The reduction in lost customer hours provided a cost avoidance of £5 million, with a projected annual customer benefit of £13 million. In total, the project achieved a cost avoidance of £15.4 million, equating to a 64:1 Return on Investment (ROI).

Lessons Learned and Future Outlook

Reflecting on this project, several key lessons emerged:

1. Importance of a Robust Policy: Ensuring that attendance policies are comprehensive and enforceable is critical. A clear policy provides a strong foundation for managing absenteeism effectively.
2. Consistency and Timeliness: Applying policies consistently and addressing issues promptly can significantly improve staff availability. Training managers to handle these responsibilities is essential.
3. Transparency and Engagement: Implementing visual management tools and fostering regular communication about performance helps create accountability and encourages continuous improvement.
4. Holistic Approach: Addressing both the procedural and behavioural aspects of absenteeism management leads to more sustainable improvements.

This project demonstrated that targeted interventions, combined with a commitment to ongoing improvement, can deliver substantial benefits. By enhancing staff availability, LU not only improved their operational efficiency but also boosted customer satisfaction and reduced costs significantly.

Final Thoughts

At Project7 Consultancy, we are committed to helping organisations achieve their strategic goals through performance improvement. Our work with London Underground is an example of the impact that well-executed projects can have on an organisation’s success.

For more information on how Project7 Consultancy can help your organisation achieve similar results, please contact us.

At Project7 Consultancy, we understand that quality is not just a department or a checklist; it is a culture that must permeate every level of an organisation. For senior leaders committed to driving excellence, fostering an inclusive quality culture is essential for long-term success and sustainability. Our approach combines industry best practices with insights from Dr Anthony Kenneson-Adams FIoL, a former Engineering Squadron Commander in the Royal Air Force (RAF), who is part of our senior leadership team. Anthony’s military background provides a unique perspective on how quality can be ingrained into the fabric of an organisation.

The Essence of Quality Culture

A quality culture is one where every individual, from top management to the frontline worker, is dedicated to maintaining the highest standards. It’s about creating an environment where quality is everyone’s responsibility and continuous improvement is a fundamental part of the organisational ethos. When we ask Anthony about what he feels are the three core elements to build and sustain quality as an inclusive culture, Anthony cites Training, Communication, and Commitment.

Training: The Backbone of Quality

In the RAF, even simple tasks like servicing anti-collision lights were critical to flight safety, demonstrating that quality starts with the basics,” says Anthony.

Effective training is the cornerstone of a robust quality culture. It equips employees with the knowledge and skills necessary to perform their tasks to the highest standards. Reflecting on Anthony’s military background, where training is rigorous and comprehensive, we emphasise the importance of precision and responsibility from the start.

• Customised Training Programs: Tailor training to meet the specific needs of your workforce.
• Continuous Learning: Encourage a culture of continuous learning. Regularly update training materials to reflect the latest industry standards and technological advancements.
• Practical Application: Ensure training includes practical applications. Hands-on experience reinforces theoretical knowledge and helps employees understand the real-world implications of their work.

Communication: The Key to Engagement

Open and effective communication is vital in fostering a quality culture. It ensures that everyone is on the same page and that potential issues are addressed proactively. In the RAF, Anthony learned the importance of open communication channels and the confidence to voice concerns without fear of retribution, which were critical in maintaining engineering quality standards.

• Transparent Channels: Establish transparent communication channels where employees feel safe to voice concerns and provide feedback without fear of retribution.
• Regular Updates: Keep the team informed about quality goals, progress, and any changes in procedures. Regular updates help maintain focus and alignment.
• Inclusive Dialogue: Promote an inclusive dialogue where ideas and suggestions are welcomed. Encourage employees at all levels to participate in discussions about quality improvements.

Commitment: The Foundation of Excellence

Commitment to quality must start at the top and cascade throughout the organisation. Leaders play a critical role in setting the tone and demonstrating their dedication to quality. In the RAF, there is no dedicated quality manager or department; instead, a culture of individual and collective commitment to quality permeated every rank and role. Anthony’s experience underscores the importance of this collective responsibility.

• Lead by Example: Senior leaders should exemplify quality in their actions and decisions. This sets a powerful precedent for the rest of the organisation.
• Integrated Quality Goals: Integrate quality goals into the overall business strategy. Ensure that quality is a key performance indicator for all departments.
• Empower Employees: Empower employees by providing the necessary resources and autonomy to make decisions that enhance quality. Trust and support from leadership foster a sense of ownership and responsibility.

Implementing Quality Culture in Your Organisation

Implementing a quality culture requires a strategic approach and consistent effort. Here are some steps senior leaders can take to embed quality into their organisation’s fabric:

• Assessment and Benchmarking: Start with a thorough assessment of your current quality practices. Benchmark against industry standards to identify areas for improvement.
• Strategic Planning: Develop a strategic plan that outlines clear quality objectives and the steps needed to achieve them. Ensure alignment with the overall business strategy.
• Engagement and Buy-In: Engage employees at all levels in the quality journey. Secure buy-in by highlighting the benefits of a quality culture, such as improved performance, customer satisfaction, and competitive advantage.
• Monitoring and Evaluation: Implement robust monitoring and evaluation systems to track progress. Regularly review and adjust strategies to ensure continuous improvement.

At Project7 Consultancy, we believe that an inclusive quality culture is the foundation of operational excellence. By focusing on training, communication, and commitment, senior leaders can transform their organisations and achieve sustainable success. Quality should not be seen as an isolated function but as an integral part of every process and decision. 

By embedding these principles into your organisation, and drawing on insights from leaders like Dr Anthony Kenneson-Adams with a rich military background, you can drive performance, enhance customer satisfaction, and secure a competitive advantage in the marketplace.