Tag Archives: Lean

How to apply Super7 Operations without TITO

Is Super7 Operations possible without TITO, you might wonder? (Or, “What’s a TITO?”)

In my book on Super7 Operations (Super7 Operation – the Next Step for Lean in Financial Services), I describe the development of Super7 Operations – Lean and Operational Management with small autonomous teams. One of the crucial things in Super7 Operations is that there is a daily goal for each small autonomous Super7 team – one that they can reach by working together, by helping each other. In the first departments where Super7 Operations has been introduced successfully, this goal was to work TITO: Today-In, Today Out. All customer requests that are received today are processed today -finished today, the customer shouldn’t have to wait.  The team’s common goal is: finish all customer requests that you receive today or at least those that you receive up to one hour before closing time. The fluctuation in ‘demand’ isn’t buffered with inventory, but is answered with sufficient flexibility in capacity.

Recently, Super7 Operations was introduced in several operational departments where the nature of the work made it impossible or extremely impractical to work TITO. Request that take more than one day to process, in one instance. In another, extreme peaks and lows, with almost all requests of one month coming in in one single batch (Naturally, batches are evil (to summarize one of the principles of Lean to the extreme).  But sometimes batches happen).

We have found that it is possible to work with other daily goals than TITO. This requires more sophisticated planning, for one, to translate the total demand into daily goals. Working with goals like TITO+5 doesn’t work, as we experienced. The team needs to have a clear goal for each day, which is higher when demand is high and lower when demand is low. Only then you get the commitment, improvement and cooperation that you expect from Super7 Operations.

If you’r interested in how this planning for daily goals works, please drop me a note below. I can give you more details, if you want. Or, you can join the discussion on www.super7ops.com

Maturity Model for Autonomous Super7 Operations Teams

At this moment, Super7 Operations (link) is applied within several operations departments of one of the leading Dutch retail banks. A lot has been learned since. The change from strict daily steering to small autonomous teams –and at the same time keeping all the good things from LEAN and Operational Management – has asked a lot from both the shop-floor employees and their managers. What we noticed is that teams go through several phases, or maturity levels, in their journey towards autonomy. And, team managers need to grow towards supportive leadership and output steering – this too doesn’t happen overnight. 

When we recognised this, it became clear that a maturity model would be very helpful. With this, the transition can be broken up into smaller, more manageable steps. And, for each maturity level, specific training and coaching can be developed to support both managers and Super7 teams.

The maturity model is still a work in progress, and at the moment only available in Dutch. If you’re interested nonetheless, you can request a copy by replying to this post. And, I expect to be able to post an English version of the Maturity Model for Autonomous Super7 Opertions Teams on this site shortly.

I would like to hear your experiences with the development of autonomous teams. You are invited to join the discussion on Super7 Operations on http://www.super7ops.com/

Super7 Operations – the next step for Lean Operational Management

Super7 - the next wave for operationsSuper7 Operations, an innovative way of using Lean in back-offices, proves to be the next step after Lean Operational Management. Cooperation is a key ellement of Super7.

I have been always amazed by what is achieved when a production team, with operators and maintenance engineers working closely together, improves their own production line step-by-step. I’ve seen this many times, in my 15 years working as a Lean consultant. The first signs of improvement appear after the team gets training and starts applying the principles of Lean. The team finds the first quick wins, and immediately, this creates enthusiasm and momentum. The real transformation happens, however, when the team begins to truly cooperate. They become an improvement team, committed to improve performance, making optimal use of the strengths of each of the team members. When they really get going and continuous improvement starts, it’s just wonderful to witness.

I’ve been working as a Lean and Lean Six Sigma for a decade and a half now. Over the years, I’ve introduced the concept of improvement teams within a dozen production companies within The Netherlands, and a couple in Germany. In these multi-disciplinary teams, people from different departments work together on the single task of improving a production line, making it run faster and smoother, reducing down-time and break-downs, etc. As a team, they have the flexibility to cope with any production problem that can occur. For me, the people on the shop floor aren’t ‘resources’ that need to be ‘managed’, but creative and knowledgeable individuals, that can do great things, especially when they truly work together. Recently, I implemented these ideas in a financial service back-office in what I and others feel is an innovative way– the Super7 operations principle.

My book on Super7 Operations, with information on what Super7 Operations is, how it works and how you could apply it in your own work environment, is expected to be published within a couple of months. I’ll keep you posted – on www.super7ops.com!

Updated White Paper: Team Targets or Individual Targets for Super7 Operations

Super7 Operations is based of small teams, working on a common goal. What does that mean for their team targets and incentives?

A lot has been said about bonuses and target related incentives, the past few years. Do they lead to irresponsible behaviour and risk taking within financial institutions? Should managers from state-owned companies, or companies relying on state support, get a bonus if they meet their targets? Interesting questions; however, that’s not what this blog is about. How bonuses and incentives influence the way teams work together, especially in Lean organisations, now that’s something I’m very passionate about.

In my experience as a Lean consultant, I have often found that organisations struggle to maintain the initial rate of improvement: when autonomous production teams, lean quality circles or TPM-teams are first formed, the performance improves spectacular. 20%-50% increase in productivity or machine output is achieved almost every time. In some exceptional situations, I even encountered productivity increase of over 100%. Enough to exceed my clients’ expectations, but my goal was always to get to a state of ‘continuous improvement’. This is when the production teams continue to improve: relentlessly reducing waste, again and again improving their standards.

I strongly believe that financial team incentives can play an important role in making the final step towards continuous improvement. That is why I did this literature search: to find out if my believe is supported by reliable research.

My conclusion: Several publications, especially on effectiveness of ‘Operational Excellence teams’ (e.g. TPM teams, autonomous teams, six sigma project teams, etc.), confirm that team incentives are more effective than individual targets. However, I had to adjust my strong believe on two points:

  • Also individual targets have their merits, and a combination of team and individual targets may well be worth considering
  • Targets and incentives aren’t the only driver, nor the main driver, for success of Operational Excellence teams, and they should be part of an integral approach

New White Paper: optimal team size

Lean and Super7 Operations work with small, autonomous teams. Exactly how small should our small autonomous teams be?

This is the question the manager of the central back-office of a large Dutch retail bank asked me, when I proposed the idea of autonomous team to him. At the time, I was working on a project to introduce customer focus and to realise same-day processing in his organisation. I came up with an innovative organisation design, in which small teams are responsible for their work for that day, i.e. all customer request of a certain type that the bank had received that day. After successful pilots, the organisation wanted to introduce this way of working for all (ca. 400) employees. That’s when this question came up…
 
From experience, I knew that the teams shouldn’t be too big: the pilots were done with teams of 5 – 7 persons. However, factual substantiation was needed. A quick search showed me that a lot of research had been done on Agile / Scrum teams, so that’s where I started. And this article is the result: a literature search on the optimal team size for autonomous teams.

My conclusion is: Organisational design isn’t an exact science. As an engineer, I would have loved to have found statistically sound measurements on the effectiveness of teams of different sizes – but in truth, I think that team size isn’t the main driver for team effectiveness. However, if your customer, the type of work your customer asks you to do, requires your organisation to work in small teams, I would suggest – as I did to the manager of the banking back office: small teams consist of 5 to 9 persons. Or, If the flexibility of your workforce allows this, as it did in the case of the banking back office: flexible team size, ranging from 5 on slow days to 9 on a busy day.

At the moment of writing, the banking back office has implemented the new way of working, and has asked me to do a ‘check-up’ on effectiveness of the new organisation. I can’t wait to start: Ï wonder what I will find, but I bet that it will be inspiration for several articles on CoOperationalExcellence.nl!
 

White Paper: Optimal Team Size

Team targets or individual targets? Does in matter for Operational Excellence?

Team targets are essential for making Lean, Lean Six Sigma and Super7 Operations work.

Despite the increasing popularity of Six Sigma as an effective improvement methodology, many Six Sigma projects fail to deliver expected savings. The topmost reason why Six Sigma projects fall short of expectations is a lack of management engagement at the right level of the organization.

While a lack of commitment and sponsorship is the leading cause of project short falls, there are several other important reasons for project short falls, including:

  • Lack of team cohesion and leadership
  • Lack of effective project monitoring mechanism such as setting of targets and monitoring
  • Difficulty leading distributed teams
  • Improper motivation to associates
  • Differences between employees
  • Non cooperation in both horizontal and vertical due to individual targets

To overcome above mentioned problems and to achieve six sigma targets and benefits top management has to set up group targets and incentives accordingly with the help of HR team, yearly appraisals, bonuses and individual key performance indicators (KPI’s) metrics also should have reflection of team achievements. Hence all major organizations are setting group targets and group incentive plans to achieve six sigma goals and targets.

Cooperational Excellence: what’s in a name?

Cooperational Excellence: People working toghether in small teams to create excellence in your operation. This may be nothing new under the sun for manufacturing and assembly plants: mini-factories, autonomous teams, u-cell manufacturing, quality circles etc. have become the standard in the last decenia. Especially in automotive, where off course Toyota still sets the standards (Toyota Production System).

In creating Service Excellence, these methCooods and organisational principles haven’t been applied so widely. Recently, I have implemented autonomous teams in a back-office of a large financial service provider, with even for me unexpected success: costs are down, queues and ‘inventory’ have almost completely dissapeared – which means waiting times for the customer times have also – and employees and management are enthousiastic about esponsiblitly on the ‘shop floor’ instead  top-down management control.

I have named this, the application of manufacturing-style teamwork in administration and service, cooperational excellence: working toghether in small teams in close cooperation, to achieve operational excellence.

If you want to know more, contact me, or just check regularly for new posts on this website!