Genoa Lean Update

A lot has happened since the last blog post way back in October, so here are brief updates on some of the things that have been going on:

International Trade Shows - We've attended both the Society of Naval Architects and Marine Engineers (SNAME) Maritime Technology Concference and Expo in Fort Lauderdale and the International Work Boat Show in New Orleans. Leonard and I presented at both shows innovation sessions on how a company can get lean started. Both sessions were well attended. We also had a lot of interest at our booth in what we were doing in lean and how our pursuit of lean is helping clients success. Besides rising our lean profile, the new business from the shows is impressive and will keep us busy back at the shop for a while, OK maybe a little longer than a while.

Congratulations to Genoa's employees on the excellent reputation you've established in the industry as evidenced by feedback we were getting at the booth. Also, the Kirby 90ft Towboat won a "Boat of the Year Award"...production lofting work done here.


Training and Development Team - I discussed this a few blogs back and I'm pleased to report that we are moving ahead most excellently. Brian Newhook, Chad Mercer, Angela Porter, and Dimitry Kapiturov are the team members focused on improving the skill level of employees at Genoa and have already begun the work by completing the scope and identifying the year 1 milestones of the initiative. This is in keeping with our five year plan of sorting out the skills of our people and improving our production processes through training and development. They've been meeting regularly and right now are in the process of verifying the information we've collected and determining skill level requirements.


Lean Level 1 Certification - Six employees have been selected to complete the Lean certification program offered by the Canadian Manufacturers and Exporters. In addition to Brian, Chad, and Dimitry; Penny George, Kyran Pennell, and Dean Noseworthy will attend six days of training and complete three lean projects over four months to attain certification Level 1.


Search for Takt Time - Allison Kennedy is heading into the final term of her Bachelor of Naval Architecture program at Memorial University and is writing her workterm paper on Lean Principles in a Marine Engineering Environment. She's done a fabulous job of analyzing and summarizing the data that's been collected. So much so that we will be using it to bid some potential projects (we'll test it the old way of course). If you want to learn more on our search for takt time read blogs of May 10, June 14, and Sept 5.

On a related topic, Angela Porter has been assigned some responsibility for the bid process so she'll be working with Allison and Leonard over the next weeks to understand the data and use it to work up the bids. When Allison leaves we'll be looking for a "champion of the data"!! Angela???

Lean and Project Visuals - Cheri-Lynn Chafe is back with us and has been assigned the new role of Planner and Projects Administrator. She is currently completing the Project Management Masters Certificate at Memorial University's Center for Management Development and learning Microsoft Project. We want to get better at managing projects and this role at Genoa will accelerate that process. Picture every ongoing project accurately set up, updated, and visually displayed using Microsoft Project. We'll visually represent project completion status, deliverables, milestones at risk, etc.. We will eventually set-up projects using our production rate data to set the pace. "Big job" Cheri Lynn....good luck with it.

First Christmas gift arrives at Genoa - As I write here, several employees are playing with the new toy that arrived today. Genoa's gift to employees. Nintendo Wii, 32 inch flat screen, and leather couch. Nice!!

Ken Hogan

Lean Guy at Genoa

So you want to be LEAN when you grow up?

I wrote a draft of this blog last week but didn't post it because I wanted to give more thought to getting my message across to those who may be thinking about, or have begun, implementing lean. I have to admit that upon reviewing my draft from last week, I framed the prospect of going lean as a rather frightening proposition. Even the title, "So you want to be LEAN when you grow up?" is, I admit, a little daunting.



Since last week I attended a presentation delivered by Dave Hogg of High Performance Solutions on World Class Fundamentals. His presentation focused on what it takes to become a world class organization and how companies can get there.



So here's what I wrote last week:


When you explain the merits of lean to companies who are considering implementation it's an easy sell on the benefits of reduced lead times, improved work in process(WIP), adding value for customers and the obvious benefits of continuous improvement.




What's most difficult to impress upon company leaders is the level of leadership required to move away from the status quo and take on a different approach to business. In particular a change from traditional production methods to lean systems that create flow and value from the customers perspective.




The Canadian Manufacturers and Exporters surveyed companies implementing lean, asking them to name the obstacles to lean implementation. Amongst the leading obstacles is middle managements inability to sustain lean systems.




Of course this is not unique to lean as it applies to all types of business initiatives, but this is a lean blog so I'll focus there.




This blog's title, "So you want to be LEAN when you grow up?" is a serious question to senior leaders in companies about what it is you're really in for when you say you want to be a lean company. More so; do you really know what it will look like when you get to what you said you wanted?




When people ask what I do, I ask if they know what lean is. Almost all the time they say they do not. Two types of people ask the question. Those who are being polite and really could not care less what I do and those I meet through business networking who might be interested. For the first group I tell them it's process improvement stuff; for the latter group I try to simplify what it is by what it looks like in my mind. Here's what I say: "Did you ever see a bucket brigade in action? (everyone says yes)...... well, it's creating that kind of materials flow in a production environment and I help companies do that."




Lean is a bucket brigade in a production environment. It's about level production and reducing lead time. That's a simplified version but it is the true essence of lean on the floor and every lean effort must be about getting there. I will say that you can make tremendous operational improvements by focusing on lean without ever building the operation to takt time but, in my view, it's the pursuit of operating to takt time and getting there that defines the true lean companies.




So, that's what I wrote last week. Having spent the day with Dave Hogg I realize I missed one very important point that I sort of made, but didn't stress enough. His main point throughout the day; "Lean is a people system". It was a recurring theme during the day and he's 100% right. So, back to the question, "So you want to be LEAN when you grow up?" If you do it most importantly means operating a system that relies heavily on the involvement of people and committment of leaders in the company to achieve a world class status. It also means pursuit of operating to takt time with production steps operating at the same rate, continually removing waste and adjusting the process to maintain flow.



So, is starting with lean frightening? It doesn't have to be at all. Learn as much as you can by reading first, talk to those who have started, seek advice, join a consortium of lean companies, and when you start....begin with the end in mind.


For more on Dave Hogg and High Performance Solutions go to http://www.hpsic.ca/.


Ken Hogan

Lean Guy at Genoa

Genoa Skills Assessment

One of objectives in the first year of our lean plan is to sort out (from 5S) where we are with lean, sort data we've collected, and among other things sort our people. By this I mean assessing where we stand from a skill perspective across the company.


This assessment tool is used in various formats and is generally formatted to fit the needs of the company. However, the intention is to assess skill level, identify training needs, set priorities, and track progress. It will also identify operational risk by highlighting areas where few employees are proficient in critical tasks.


So far, we have the major task required to assess the skill level completed. We recently sent to every employee a categorized list of skill requirements for the fields of design, human resources, lean, and software. We used excel and inserted a comment with a detailed description of each skill requirement and employees assessed themselves on a scale of 1 - 5, with 1 being completely unaware and 5 being at a proficiency level where the employee could train others in the particular skill.


Additionally, each employee identified their interest level in upgrading skills or the need for skill in each particular category. For example: administrative assistants would have no requirement to train in design work and, structural designers expressed interest in piping design. Employees indicated their interest or need with a simple A B C scale with A representing high priority, proficiency essential. Simple colour coding gives a visual representation of the results for both skill level and training requirements. There is also an area to capture employee comments.


Now that we have all of this information, what do we do with it and how can it improve our company?

1.) Time has to be taken by management to review each of the completed assessments for accuracy and ensure management is aware of the actual skill level within the company. It is often different from their perception, both from an individual perspective and overall.
2.) Each skill needs analysis to determine the overall company proficiency level, and a determination of whether or not it's satisfactory is required.
3.) From this analysis, deficiencies need to be prioritized and an overall plan to improve proficiency developed through training, workshops, or mentoring.
4.) Employees who have expressed interest in achieving proficiency in areas outside their normal work need to be identified and development decisions and plans undertaken.

In any case, once the assessment is analyzed and the plans are set in motion, the company begins to improve, remove waste, and offer value to the customer.

Every company can obviously benefit from this type of analysis and it is not difficult to achieve. The key though is actually setting out to get it done. Assign a champion, and begin. The results can be astounding.

Ken Hogan
Lean Guy at Genoa

Survey Results - Lean Diagnostic

The Lean Diagnostic is a tool used to measure lean performance across a number of categories. It enables a company to benchmark lean performance, set goals for improvement, and compare performance against other lean organizations. It's a scorecard based assessment and when completed assigns a percentage of lean implementation in each category as well as an overall score. For more detail see blog “We Changed our Goal” July 12, 2007.

In April, we completed an assessment based on Genoa’s performance to date and scored 32%. Scores across categories ranged from 0% in categories such as Lean Lean Product and Process Design and Lean Accounting and 60% in Value Stream Mapping and Total Productive Maintenance.

Following this initial assessment, we compiled a survey in July based on the category criteria and sent it to all of Genoa’s employees asking them to rate performance in each category based on their current knowledge. We did not alter the criteria language because it is our intent to ask these same questions annually improving employee knowledge through training and teamwork as we execute our plan.


We also added two categories that were included in older versions of the diagnostic; Safety, and Mistake Proofing. We included a feedback section and some other general questions on lean knowledge and how Genoa communicates with employees about the company.


The results of the survey were pretty much as expected with the group scoring 43% and higher than the lean consultant in most categories. This was probably due to a lack of complete understanding of the lean tool scored.

The good news is that the category scores, as well as the communication and lean knowledge scores will be improved with the implementation of the five-year plan. As well, the issues raised in the employee comments sections will be addressed through various parts of the plan.

This is a good baseline measure as we progress toward our goal of 38% at the end of year 1 and 80% at the end of five years. The complete results of the survey will be shared with employees soon.

Ken Hogan
Lean Guy at Genoa

The Team...

Notes on trying to run the company and also stay tapped into the Lean project at hand.

It is so easy to become engrossed in day to day activities, marketing, human resource issues, fires, emergencies, floods, requests, proposals, hiring, planning, strategic sessions, and all the other "stuff" that seems to interfere with running a business. Let alone trying to grow and develop a business under the umbrella of Lean principles.

As an infant might cry... "wah wah wah".

This emphasizes the importance of a Lean Champion. Someone who's primary mission in life is to push ahead with Lean improvements.

Thank goodness for "The Lean Guy at Genoa".

Thank goodness for our VP Operations, Darren, who works closely with Ken to get the right data, analyze it in the right context, identify the opportunities and help Ken push.

Thank goodness for a staff who care and are open to a shift in culture.

Thank goodness for the plan and action to bring the shift in culture about.

But to bring it full circle...one loose spoke, and the wheel fails.

I have learned that one person can only do so much. The answer is bringing the right team together.

I believe I have said this before...but it's worth repeating.

Testing continues…

Posted by Leonard...

Written by The Lean Guy at Genoa...

When we set up this blog we had a couple of purposes in mind; document our journey and share our successes, failures, and lessons learned with others. As I mentioned previously we’ve collected reams of data from past projects and loaded all of it to an excel file knowing that somewhere in there was the path to establishing takt time in our design world.

Well, I’ve just completed a high level analysis of the data and have worked out some basic production averages including parts per hour and parts per volume. This is broken out by ship part regardless of type of ship and all project hours are used. There were some obvious outliers in the data so one standard deviation was used to establish upper and lower control limits to arrive at a more “reliable” average.

The data looked great in scatter diagrams with some obvious patterns emerging.

Remember, one of our goals is to use historical data to calculate project hours based on volume or weight or some other parametric. That said, we took the rates and tested them against a project that had already been completed, calculating parts based on the known volume of each unit, and calculating hours based on the calculated parts.

The results were a little disappointing with calculated parts off by as high as 85% but on average 20%. Calculated hours were off on average 33% but as high as 70% for one unit. I thought they would be better but have to keep reminding myself that this is data from all types of ships applied against one particular type.

A positive result of our analysis, which has shown to be consistent across all ship types and unit types, is the percentage of total project hours that can be applied against modeling, assembly, nesting etc.

Lean Product and Process Design at Genoa

A couple of blogs back we shared the categories from the Lean Diagnostic Tool that will be used to measure the progress of Genoa's lean journey. An updated version of the diagnostic has categories added and some dropped. One of the categories added is Lean Product and Process Design.

Without detailing all of the steps or elements of this strategy, I'll attempt to describe how our path to Lean Product and Process Design (LPPD) will bring value to Genoa but more importantly to Genoa's customers.

We need to view the total effort of the work through to the actual fabrication of the ship in the yard and break out the effort in value streams:

1.) The Development Value Stream - The work Genoa does
2.) The Operational Value Stream - The fabrication work the customer does

Operational Value Streams are the result of Development Value Streams!!

Inherent in the Development Value Stream there are Operational Value Streams as well; that is, the steps Genoa does to provide deliverables to the customer. In order to ensure value for the customer, this value stream requires analysis to remove waste, improve lead times and quality, and add value for the customer. Most important in this analysis is to determine what value can be provided to the customer so that waste can be removed from the operational value stream before fabrication during the development and design phase. Remember the second line of Genoas mission statement ..."deliver waste-cutting work packs to clients". Genoa needs to ask itself, how can this be achieved.

Genoa can do this by ensuring that a number of events occur in the development phase;
- develop employee knowledge and sharing
- problem solve immediately, share results, and sustain improvements
- manage design flow by eliminating waste and variability
- standardize the design process
- design with assembly front of mind

Genoa needs to ensure that items within their control and influence make the customers operational value stream consistently profitable!!

In most manufacturing cases the owner of the development stream is the same as the owner of the operational stream. At Genoa the operational value stream owner is the customer. More importantly viewed as the partner in the effort. Everyone involved in the effort must work toward the success of the operational value stream which is the profit making stream.

I look forward to the day when we form a team with a partner towards this end. Right now it would be unfair to state that Genoa and it's clients operate independently because I see a lot of examples of cooperation and teamwork. I will say, that to achieve true excellence, there needs to be an effort where both value streams are viewed as one.

Ken Hogan
Lean Guy at Genoa

Before signing off, I'd like to introduce one of our designers..Brian Newhook. Brian is in his fourth year with Genoa and is responsible for most of the pictures of Newfoundland scenery on Genoas website http://www.genoadesign.com . Brian loves to kayak and his weekend activities have taken him to some spectacular places including very close to some amazing icebergs. Check this out. http://www.newfoundlandseakayaking.blogspot.com/