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How to create a Performance Management System

This video explains in 7,5 Minutes how a Performance Management system should work.

The cascading of KPI´s from strategic to operationallevel is also described in the article: The gate of Purpose - Hoshin Kanri.
The communicationscells of the Level 1, 2 and 3 meetings should be set up as discussed in the article: Communication cell in Practice

Value Stream Mapping (VSM)

Value stream mapping is a lean tool that can be used to map processes in detail, based on the both the flow of material as well as information. Data boxes make it possible to write important aspects of each process step, such as changeover times, cycle times and machine availability, which makes value stream mapping a great tool to use in (re)designing a value stream (Panneman, 2017). In traditional lean initiatives, a current state value stream map is drawn first (described here), after which a future state map can be designed which is described in the article: 8 Steps of Future State VSM.

Learning to See - M.Rother & J.Shook (summary)

Learning to See, written by Mike Rother and John Shook, is the book to read for Value Stream design. In every Lean implementation, it is important to understand the current process design and the way the design influences the flow of products through the factory. After understanding the current state of production a structured approach is needed to get to an improved, future state of the value stream. Traditionally in value stream design, a team thinks of random improvements to reduce inventories or increase throughput, which can result in a lot of kaizen events which hardly really improve the bottom line results.
This article will focus on the most important part of Learning to see: the seven steps structured approach for designing the Future state Value Stream Map.

SIPOC

The SIPOC is a visual rendering of Deming´s System Model (Scholtes, 1998), a Model that is used to visualize the complexity of a system, where the word system is defined as a combination of processes, methods and employees, who work together towards a common target. The goal of the SIPOC – and Systems Thinking- is to visualize the patterns in a system, by looking at it from a whole, instead of from different pieces like departments or specific processes (Senge, 1990).
The value the SIPOC ads compared to the Process map or a Value Stream Map is that not only tasks or production steps are visualizes, but also the communication complexity between different departments or functions.
The next step after building the SIPOC would be to reduce these complexities, which will lead to higher effectiveness and efficiency in all its processes (Morieux & Tollman, 2014). This is why the SIPOC can play an important role in improvement activities, like Kaizen events.

Leading Change - J. Kotter (summary)

When it comes to change management, John Kotter is the most cited author worldwide. In 1995, his book Leading Change became an international bestseller. In this book, Kotter describes 8 necessary steps for cultural change. 17 years later however, he changed his vision on organizational change from a organization where change is implemented top-down, towards an organization of voluntary bottom-up improvements.

In this article, both the original theory of 8 steps is explained, as well as a short summary in which Kotter explains his new view on organizational change.

Lean in a Non-Profit Organization

A motivating example of Lean principles, applied in the Non-Profit sector:

5x Why example: Jefferson Memorial

This video explains how the ´5x why´ is used to prevent further decay of the Jefferson Memorial.
The solution is absolutely impressive!

Getting Lean in 90 seconds

A short introduction video which explains four Lean Principles: Pull, One-Piece-Flow, Takt and Zero-defects:

Gung Ho! - K. Blanchard & S. Bowles (summary)

Gung Ho (K.Blanchard and S.Bowles) tells the story about an American factory in which old Indian wisdom created a cultural Change which changed the organization from a money loosing firm to a profitable business. The Gung Ho (which is Chinese for ´working together´) program is based on three animal attributes: the spirit of the Squirrel (1), the way of the beaver (2) and the gift of the goose (3). Blanchard and Bowles describe in this novel that implementing these three principles result in motivated personal which lead to better output.

5 Elements for Succesful Change

What elements influence organizational change? Dr. Mary Lippitt (1987) developed a model for complex change with 5 key elements: Vision, Inscentives, Resources Skills and plan. In this article, Lippitt´s ´Incentives´ is replaced by commitment, because commitment can be seen as the result of good incentives and is mentioned in many books, articles and internet fora as the one factor that influences cultural change the most.
There are multiple books and articles which stress the importance of the five key elements of change, especially on Vision and (management) commitment (Rother (2010), Liker (2004), Suzaki (1993). Three years ago, I thought these elements self-evident, because they were present in the first factory I came to work in. I have learned however, that these elements are not as self-evident as I thought and sometimes even lack in an organization, influencing the Lean implantation in a bad way.

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