Josh Howell, LEI President, and Mark Reich, LEI Chief Engineer Strategy, talk with Carl Klemm, former General Motors and Toyota executive (including six years as President and CEO of Toyota Motor Manufacturing Poland). After retiring from Toyota in 2015, Carl founded Carl Klemm Management Solutions so he could continue to work with companies and share what he has learned about lean through the years.

This month The Management Brief explores how leaders transform and rethink traditional management approaches to achieve success with lean. Carl’s management thinking has certainly changed since he started as an apprentice with General Motors. Early in his career at GM, he saw that virtually everyone had a “dreadful” relationship with industrial engineering that wanted to improve processes, and then, when studying NUMMI, the Toyota-GM joint venture, realized that did not have to be the case.

After 24 years Carl left GM, joined Toyota, and was excited by what he could learn there. “I really wanted to join. I wanted to learn. I wanted to understand. I wanted to be able to do it, not just understand it, be able to do it and make it work.”

Carl, author of The Balance of Excellence,1 also discussed:

• Toyota compared to GM: Senior executives at Toyota were more communicative with employees down through the organization, more management maturity on Toyota shopfloors, the long-term perspective of Toyota management, and “the planning and strategic activity is much more intense” at Toyota.

• Importance of management to achieve results and develop people concurrently and in harmony: “Management’s job is to keep those wheels aligned. That’s a true key difference between Toyota and other organizations I’ve come across.”

• The operational and cultural benefits of pulling the andon: The process of pulling the andon allows standard work and throughput to be maintained while a problem is addressed, and frontline members can see that they immediately get support for their work rather than “waiting for ages” for assistance to come.

• Four levels of management maturity: The four levels of maturity — reactive, stabilizing (getting control of processes), proactive (beginning to do kaizen), and progressive — ultimately get leaders to a place where they understand that the organization underneath them is independently performing kaizen and they can focus on what the organization needs to achieve “in the coming five, 10, 15, 20 years. And, of course, Toyota does that. Toyota is thinking 25, 30 years ahead always.”

• Advice for those getting started with lean: “First establish the situation of mutual trust and respect, because without that everything is difficult.”

In this special dual-release edition of The Design Brief and The Management Brief, Josh Howell, LEI President, is joined by LEI veterans Jim Morgan, Senior Advisor, and Mark Reich, Senior Coach and Chief Engineer Strategy. These two lean heavyweights discuss two fundamental lean processes that are absolutely critical to transform and grow an enterprise: lean product and process development (LPPD) and hoshin kanri.

Jim is a former Ford Global Engineering Director and Rivian Chief Operating Officer. He co-authored The Toyota Product Development System and Designing the Future, both of which elements of LPPD, a system for developing new products and services and their required value streams. Jim co-authored The Toyota Product Development System and Designing the Future, both of which explore elements of LPPD, a system for developing new products and services and the processes needed to produce and deliver them. LPPD surfaces and resolves issues across the product-development value stream in order to minimize time- and profit-consuming wastes and rework.

Mark, a 23-year veteran of Toyota, including work in Corporate Strategy at the automaker, recently authored Managing on Purpose, which explores hoshin kanri and how it aligns enterprises at every level — C-suite through the frontline — via a shared common purpose, problem solving, and continuous learning. Since 2011 when he joined LEI, Mark has successfully helped many executives apply hoshin kanri and transform their companies in a variety of business sectors.

For executives not yet familiar with LPPD and hoshin kanri — especially those leading and growing enterprises — this discussion should be eye-opening. Jim and Mark reveal these two processes as not operations-only tools but game-changing methods for corporate leaders to transform their organizations. They describe the importance of these powerful processes to overall business success, their successes at Toyota and other lean organizations, and how the processes can significantly help any business, big or small.

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In this episode of the WLEI Podcast, we speak with Eric Ethington and Matt Zayko about how to build strong teams and robust product and process development systems, and why doing so takes a skilled chief engineer. Eric Ethington is a senior coach and Chief Engineer, Lean Product and Process Development (LPPD) at The Lean Enterprise Institute. Matt Zayko is global head of the Lean Office at GE HealthCare. Eric and Matt are also coauthors of the book, The Power of Process: A Story of Innovative Lean Process Development.

The conversation explores:

• The key skills every chief engineer needs to be effective and “lead with responsibility, not authority”

• How chief engineers can begin the work of “designing the value stream”

• Why conflict is necessary to create good products and how to manage conflict with care

• System integration and how chief engineers optimize work at the product level, balancing the inputs and needs of product development and manufacturing, for example

• Real stories of product and process development where Eric and Matt have seen teams persevere and use LPPD thinking to innovate and achieve success

Read Eric and Matt’s article “9 Tips to Better Process Development” here.

Get Started with Lean Product & Process Development

Improving how you develop and deliver products doesn’t require a full transformation to start—it begins with learning to see problems clearly, involve your team, and improve how work gets done.

Explore your next step:

• Read Designing the Future or The Power of Process

• Take the 60-minute Lean Product and Process Development Overview course

• Join the coach-led online Designing the Future Workshop for hands-on practice, and the in-person Introduction to Lean Process Development course Oct 7

• Bring a coach into your organization for customized support

Let’s take the first step—together. Learn more at lean.org/LPPD »