The word auditing comes from the Latin word audītus which means listening, so an Auditor is a person who will come and listen. (More about the State of Mind the auditor and the audited should be in can be found The Article Taking Charge of Your Change published on LinkedIn in my name.)

This means that for an improvement team you should ask someone from the outside to Audit you. The definition of outside is outside of the team that needs the Audit. For example, if you have a steering committee or any type of management/leading team, in some different types of program you might even have pillars (a team of people who focuses on a limited part of the improvement system) they are good choices of Auditors.

Let us assume that you are running a 12-week improvement team, as a minimum I recommend that you have 3 audits, after 4, 8 and 12 weeks. The 12-week audit is also called the final audit. The objectives of an audit are to support the team to stay on target, to ensure that they understand the process and that they follow the process of the improvement team. I choose to follow the PDCA approach (Plan, Do, Check Act) in this example. I also promote that the 3 Phases of change are followed, the 3 phases are…Basic Condition, Improve and Innovate. To complete a phase, you go through the PDCA cycle, so the PDCA cycle could be gone through 3 times or more if you follow all 3 phases.

2 Min Drill 3 Phases of Change                     

An Auditor should follow that approach and should also be aware of which phase the team is in and to ask questions according to the PDCA approach and in tune with the Phase, to ensure that the process is followed and understood by the team. A good auditor also leaves the team with energy after the audit. The Important role of an Auditor is highlighted in the fact that the team must understand where they are, what could be needed to develop further. What an Auditor needs to understand is that the team needs support and energy; a bad auditor will leave the team deflated only considering all the problems.

            A good audit process could look like this, the team is waiting for the auditor or auditors and will present where they are now using a team board, that I recommend every team have. They will tell the story about where the team is, the team leader or a representative, preferably several people that are a part of the team is presenting the status and what is achieved, and what they are looking forward to do. The Auditors are listening to where the team are and will ask questions according to the PDCA thinking.  They will ensure that the planning phase, the do, check and act is done properly. The questions are normally asked open ended so that you do not have “yes” or “no” responses, and that you explain the way of thinking and the auditor will then have a better understanding. This will help confirm that the team has understood the concept and the process. Sometimes an auditor can ask a question implying that something should have been done. For instance:  during the planning phase an auditor could ask “What type of root-cause analysis did you use?” This implies that you should have done a root-cause analysis and nobody can answer with a simple “yes” or “no”. This can drive the behaviour that you want in a team as an auditor. After the audit the team leader should make sure that the team understands the auditor’s comments, support and questions, as well as have a lesson learned session after the audit. Lessons learned are key for a team to gather along the whole process, the lessons learned are transferred to the next team that starts a similar type of problem-solving initiative, so we do not run into similar types of problems again.

As an Auditor, you have a choice to Put Pressure on the Team or To Inspire the Team to accomplish something. The inspiration path often has a positive effect on the climate and leaves a team energized.

If this process is followed and the principle of listening is the focus, the Audit has a positive effect on the people involved. Understanding what is done well can that being highlighted can induce energy in a team.

Johan Majlov, CEO Lean Dimensions International

LetsDoIt@askldi.com

LetsDoIt@askldi.com

If you want to tap about how we can support your organization email me to set up a call, johan@askldi.com
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Johan Majlov, CEO Lean Dimensions International

Our trademark model of Operational Excellence (OpEx Model) is a series of puzzle pieces that come together to create a cohesive strategy that truly helps businesses succeed.

Here at Lean Dimensions International, we believe that IQ * EQ = Unity  and Results. Oftentimes, when we talk about operational excellence (World Class
Manufacturing (WCM), World Class Operations Management (WCOM), Lean Manufacturing, World Class Business Process, TPM, Supply Chain Excellence, etc), it can be difficult to understand how the entire system fits together. In our industries, engineers are often promoted into positions where they are tasked with implementing a continuous improvement project of some sort, and the risk is that engineers will often focus solely on the technical side of a project or issue, and forget the emotional side altogether.

It is crucial that organizations address both the technical and emotional aspects of projects and issues if they want to achieve excellent results. Companies that have successfully managed to address the emotional needs of their employees find that they are more likely to bond with the company’s mission, their system of operation, and the tasks at hand. When you think of Operational Excellence 2.0™ as a system, and not simply a set of tools, your employees will understand that you
are asking them to buy into a way of living and acting while at work, and not simply picking and choosing from a box of helpful tools.

OpEx 2.0™ Model Explained

Just like a puzzle where the pieces fit together to create a beautiful picture, Operational Excellence 2.0™gives you the pieces you need to achieve your goals, keep our employees engaged, and create a system that reflects your organization’s mission. The image below illustrates the OpEx 2.0 model.

How Operational Excellence (OpEx) Functions

OpEx is a series of steps designed to guide organizations toward their ultimate goal. There are three crucial aspects of the OpEx model, Working on the Business, Ownership Transformation, and Working in the Business. Each of these sections directly impacts the others, and all three must be addressed if business owners wish to achieve operational excellence.

Working ON the Business

OpEx 2.0 gives you the opportunity to step back and look at the big picture to see if everything is progressing accordingly. Lean Dimensions International calls this “Working on the Business”.
The illustration above has three sides. The right side is called “working on the business”. This is about detaching yourself from the small details and examining the overall work processes to see if they are meeting your organization’s requirements. Sometimes the best way to truly understand what is going on in your business is to step back and observe everything that is going on.

OpEx 2.0 clarifies the direction

We work with your management team and/or steering committee and help them set a clear direction on where they want to go as a business. This will help the rest of your team understand where the project is headed and what tangible work products they will produce throughout the project.

What you leave behind matters

A crucial part of this process is understanding that you need to leave something in place that will bring your organization forward. Many organizations create smaller project teams to address specific aspects of the organization’s goals. These pillars may involve quality control, maintenance issues, engineering issues, etc. Each team can be in charge of a specific pillar and these pillars can all feed into your organization’s goals. It’s essential that your teams regularly meet, share information and findings, and understand how their efforts contribute to the overall goals of your organization.

OpEx-Ownership Transformation

At the bottom of the triangle, we have “ownership transformation”. This refers to the overall transformation that will take place, including cultural transformation and transactional transformation.

Through the OpEx process, project leaders will define how outputs should be handed to different teams in an organization while maintaining a degree of control and the integrity of the process. It is essential that processes are put in place that inform employees and project teams about the entire transformation process.

OpEx 2.0-Working In the Business

On the left side of the diagram, is what Lean Dimensions International calls “Working in the Business”. When you Work in the Business, you consistently use our Operational Excellence thought process every day at work to add time and reduce losses.

Time Inclusion

Through OpEx, we can show you how to add time or increase your company’s output without relying on overtime. Each and every person in your organization, from the CEO to your laborers, can find ways to increase their output during normal working hours.

Loss Reduction

Another thing businesses can do is reduce their losses. Losses can include anything that is less than ideal and they can significantly impact your organization. One of the key focuses of your project teams will be to identify and either eradicate or reduce losses.

Loss and Business Understanding

If businesses don’t know what their losses or shortcomings are, they truly don’t understand their business. Through OpEx, you will come to fully understand your business, be able to readily identify losses, and make a solid plan for reducing (or eliminating) them.

Performance Control System (PCS)

Our Performance Control System (PCS) helps businesses identify losses and effectively eliminate them so that they can achieve their output goals. PCS is not focused on the output, but rather on identifying and eliminating losses to achieve a specific output.

Through our performance control system, you will constantly identify and eliminate losses, every week of every month. You will analyze data to identify trends and ensure that your organization is moving in the right direction. Each week you will build upon the successes of the week before and identify new areas for improvement. When you work on your business, transform your ways of working, and work within your business, you’ll effectively build operational excellence. Your end product will be a world-class manufacturing operation that leverages lean thinking. That is the OpEx system.

OpEx 2.0 – a combination of brain and emotion

OpEx is based on two factors, brain and emotion. When you merge these two factors together, you can unify your staff to build a system together.

This is the Operational Excellence System, we call it “Operational Excellence 2.0” since we believe the heart has to be involved. When you bring logic and emotion together, your associates will understand that OpEx is a system, not a toolbox and they can work towards a common goal. “IQ * EQ = Unity”

If you’d like to learn more about how Operational Excellence 2.0™ can help your organization succeed, contact us to schedule a call with one of our consultants.

LetsDoIt@askldi.com