Lawrence Rosier & Associates
Management Consultants Government and Industry Reform
12143 Cedar Grove Rd. Rolla, MissouriPhone 573-364-8789 Cell 573-578-4716
Letter of Transmittal: August 7, 2013
To: Ford Motor Company
From: Lawrence Rosier Principal Management Consultant
Subject: Proposal for a Pilot Demonstration of Reform of a Ford Department office
This proposal is for a pilot demonstration and implementation of a unique method of using Enterprise Lean with Lean Teams to get the highest efficiency with the most effectiveness within a Departments office environment of the Ford Motor Company.
Ford has been a leader in the use of Lean and TQM to increase the efficiency of its shop floor employees now I am proposing a demonstration of the application of Enterprise Lean (Toyota’s TPS) to its office and Knowledge workers within a department. Ford has demonstrated the effectiveness of Lean Six Sigma to solve high level individual systems problems. But this is only on a project by project basis fixing one major system at a time within Fords bureaucracy and between agencies. While the Systems are improved and there is a significant cost reduction resulting from the elimination of waste the approach does little to reform an entire department making it more efficient and effective. This is accomplished in this proposal by implementing the General Reform Model developed by Lawrence Rosier adapted specifically to address the reform of a Ford department.
Please Review the following Proposal for a Pilot demonstration of my General Reform Model. This document is intended to be used to promote understanding and to start discussion on consulting activities. The Ford Motor Co. may modify the attached Proposal to fit its specific needs.
Kindest Regards Lawrence Rosier Principal Management Consultant
Lawrence Rosier & Associates
Management Consultants Government and Industry Reform
12143 Cedar Grove Rd. Rolla, Missouri
Phone 573-364-8789 Cell 573-578-4716
http://managementconsultant.blogsome.com
PROPOSAL August 7, 2013
Proposal for Pilot demonstration Reform in a Ford office environment
By Lawrence Rosier Principal Management Consultant
This proposal is for the implementation of a pilot reform using the General Reform Model developed by Lawrence Rosier Principal Consultant to be implemented in a selected office environment. The Method implements Functional Lean Teams of employees throughout the selected Department‘s office environment. The Lean concept was developed by Toyota to involve employees in increasing the efficiency and the continuous improvement of their jobs. The benefits to Ford are from efficient and effective operations but also the change in the way Ford employees view their jobs empowering them to innovate and make continuous improvements to their jobs. The General Reform Model uses the data developed by the Lean Teams for Work Measurement and from that staffing and budgeting is determined. The objective of the General Reform Model is to get the highest efficiency possible and improve the effectiveness of the selected department and turn a difficult major reform into a relatively smooth operation.
Goals:
Phase 1:
The main goal is to use Enterprise Lean to get the highest productivity possible and improve the effectiveness of a department while empowering its employees through Lean training to innovate and make continuous improvement to the systems in their jobs.
Phase 2:
The Lean Team data is used for right-sizing and the development of a bottoms-up budget the result is to increase the efficiency and effectiveness of the department which may result in the reduction of staffing. A major benefit is the transparency to Ford’s Management of the detailed costs associated with each of the functions within the department’s budget.
Phase 3.
The final Phase changes the Bureaucratic organization to a Team Managed organization using the already established High level management Lean Teams for management and the Functional Lean Teams at the functional work place. The steps are to train employees to do multiple jobs, eliminating wait times and implement weekly work planning for variable jobs. Redundant employees are remove from the work environment and retrained for other jobs. The General Reform Model is a method designed to accomplish these goals.
Proposal Details:
I suggest a meeting to allow Ford leaders and staff members to become fully familiar with the logic of the method I am proposing using my General Reform Model. I suggest this meeting be an across the table discussion of my proposed General Reform Model and how it can be implemented successfully at Ford.
The first step is the formation of a high level Implementation Committee with broad powers to lead and implement reforms. This is necessary for legitimacy and to make sure that data developed through Work Measurement belongs to the Committee and not to the Department where it was obtained. This is followed by the selection of the Department to be reformed.
I suggest that the day to day activities of the implementation be co-chaired by the Principal Consultant and a Ford Management Representative. The Management Representative will be tasked with providing those employees who will participate in the implementation and their expenses including equipment, offices and meeting rooms.
The Management Consultant will form an Implementation Team with Budget Analysts and or Auditors on loan from Ford Audit Division. The required number is entirely dependent on those who can be made available and the size of the Department. I do not bring any of my own staff to the job but chose to train current employees such as Budget Analysts from the Lean Facilitators to fill key jobs during the implementation . The advantage is that the knowledge they acquire in managing the new methods will stay within Ford.
Phase 1:
The first act of the Reform Committee and the Principal Consultant is in planning for the implementation of Lean Teams throughout the selected Department. The purpose is to resolve issues related to Lean training, Facilitators, Budget Analysts and specifically what the Lean Teams must do to meet the requirements for determining staffing and budgets. I suggest that a Certified Lean trainer be brought in to train the training staff. Lean training should begin immediately by the Ford’s training staff. Training should be made for staff members first followed by management and then Lean Facilitators. Lean facilitators organize and train each employee Functional Lean Team work group which usually meets for one hour on a weekly basis. There are three major Lean Team endeavors, a high-level Steering Lean Team, a mid-level Lean team made up of mid-level managers to make document flows efficient and at-the-work-place Functional Lean Teams, those who do the basic work of the Department. The Steering Lean Team will report to the Principal Consultant and will assist in the management of the implementation. The Steering Team also has another task to consolidate the Department’s internal Services as described in my Consolidation Model (if required). Mid level Lean Teams are tasked to study inter-department document flows.
Phase 2:
After a period of about two months most Functional Lean Teams, those that were organized and trained by Facilitators, should have their Value Stream Analyses completed. I have had success with doing the flow of the current method on long butcher or brown wrapping paper taped around a conference room on the walls. The proposed improved method is done directly under the current method to highlight the differences between the methods. I would allow the Lean Teams to present their improved method to management. After the presentation the Lean study data is given to a Budget Analyst to determine the savings from the Lean study data.
Phase 3.
The final Phase changes the Bureaucratic organization to a Team Managed organization using the already established High level management Lean Teams for management and the Functional Lean Teams at the functional work place. The steps are to train employees to do multiple jobs, eliminating wait times and implement weekly work planning for variable jobs. Redundant employees are remove from the work environment and retrained for other jobs. The General Reform Model is a method designed to accomplish these goals.
Activities of the Principal Consultant:
The Principal Consultant will play a key role in being sure that the Lean Teams are properly trained and in the selection and approach of the high-level Lean Teams. The Principal consultant will insure that the activities of Analysts currently employed by the Budgeting and Auditing Departments can determine the correct staffing level through Work Measurement and any expenses needed during the process. Some Analysts may find the proper staffing for variable processes difficult to determine. If so the analysis will be done by the Principal Consultant. This data combined with the number of occurrences of the Function over time, obtained from a daily log kept by each Lean Team, provides the basis for an accurate Functional budget. The data from the Lean study will be Transferred to a spread sheet by the Budget Analysts and summarized in a database where all of the Agency’s Functional Data is stored. The activities of Budget Analysts are important and will be followed closely by the Principal Consultant.
The Consultant will make a final review of the data to determine the actual staffing required. Note that in most cases this is not a simple calculation due to variations in the times required to do some processes. Consolidation of Departmental employees is required meaning most employees who currently do not have a full time job will have to be trained to also do a second job while other employees will become redundant. A Special skill is required in balancing the work load to give the remaining employees a full time job. This may be further complicated by jobs which continually change which will require the training of a Work Planner to balance the work load assignments for each employee on a weekly basis an appropriate management tool. This is also the period of time for Right-sizing the entire Department once it is known where staffing can be reduced. Retraining and reassignment of redundant employees should be completed within three months.
Current knowledge about Bureaucratic staffing has shown that nearly all bureaucracies are overstaffed by at least 10% and most are overstaffed by as much as 20%. Savings to the Ford Motor Company for this implementation is largely from the salaries and benefits of redundant employees. Long term benefits continue from employee empowerment to innovate and make continuous improvement to their jobs. Other benefits are from the simplification of government processes. The Return On Investment is expected to be significant and may reach as much as $100 for every $ 1 invested. After three months with the Pilot Demo projections can be made for actual savings can be made.
The Ford Motor Company Agrees to Pay Lawrence Rosier & Associates a Fee per week for services rendered. This agreement can be canceled by either party with a one week notice. All expenses such as travel, lodging, rental car, per diem are the sole responsibility of Lawrence Rosier & Associates.
The following Client signatures of the representatives for the Ford Motor Co. represents a general agreement that the Ford Motor Co. will follow the proposal’s outline of Lawrence Rosier’s General Reform Model as presented. The proposal contains suggestions for the implementation of the General Reform Model which may be modified by mutual agreement. By the following signatures the Client also agrees to the weekly fee required by Lawrence Rosier and Associates.
_____________________ ___________________
Signatures of Ford Motor Co. Representatives
______________________
Signature of Lawrence Rosier Principal Management Consultant
Lawrence Rosier & Associates 12143 Cedar Grove Rd. Rolla, Missouri 65401
573 364 8789, cell 573 578 4716, fax: 573 368 2907
Email: Lawrencerosier4@gmail.com
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