Lean 911

Some metrics were never meant to survive in a Lean world. OEE and absorption accounting might sound smart on paper, but they push the exact behaviors that wreck flow, bury quality issues, and inflate inventory. The result? A system that looks efficient but delivers chaos. Mark DeLuzio breaks down how these outdated measures keep companies locked in batch production and bad habits. He shares firsthand stories from the factory floor and the boardroom, including a jaw-dropping moment with a CFO who learned the hard way that ROI is not a reason to keep machines running at all costs. This episode is for anyone tired of playing metric games that look good in reports but hurt performance where it matters. If you've struggled to explain why certain KPIs feel off in a Lean environment, you'll walk away with clear examples and a smarter alternative to measure what actually matters.

Replay from our live April 7 webinar. Most Lean initiatives stall because leaders chase tools instead of building capability. In this rare unfiltered session, Mark DeLuzio teams up with seasoned transformation veteran Mark Forkun for a blunt conversation on the realities of Lean, why most organizations fake it, and what it takes to get results that last. From the hidden failure of matrix org charts to the silent sabotage of cost accounting, this webinar replay is a wake-up call for anyone tired of surface-level improvement. You'll hear how Toyota's true strength isn't what's on the walls, but what's in the minds. You'll also get hard-won insight on problem solving, value stream management, and the dysfunction of Lean "audits" that create motion without impact. Plus, Mark Forkun shares a preview of his new book and the habits he believes matter most for sustaining Lean results. Timestamps 00:02:10 Why there's no silver bullet in Lean 00:04:30 What you don't see is what matters — Culture, mindset, and invisible systems > visible tools. 00:07:40 Value stream management vs. functional silos 00:13:00 How Lean accounting drives better decisions — Traditional cost systems sabotage transformation. 00:24:00 Cost of poor quality is hidden everywhere — Why finance must stop tracking irrelevant metrics. 00:25:10 Lean ≠ TPS 00:33:00 Standard work and problem solving 00:47:00 Philosophy and principles lead the way 00:54:00 Why Gemba boards fail and audits backfire — Most Lean efforts are theater, not transformation. 01:00:00 Tech without waste elimination = faster waste — AI and ERP as enablers, not solutions.

In this episode, Mark DeLuzio talks about Lean Horizons' Managing Director Jon Boucher discussing the span of control necessary for problem-solving. In particular, Mark and Jon address the following: What is span of control, and why is it important for any lean journey Problem Solving – What is the definition of a problem? What is meant by standards? How do you begin, how deep do you go, and what is the timeline? What is the purpose of a line? (to expose the problems) Who "owns" problem-solving? What is the role of the operator?

In this episode, Mark DeLuzio talks about why Lean/CI people are not being listened to and gives sage advice as to how to reverse this trend.

Do you want to get the attention of leadership? Then you need to speak their language. In this episode, Mark DeLuzio discusses FCF %NI and why this measure is key to a successful Lean transformation.

You will never transform your company by point kaizen alone. Learn why traditional Japanese consultants were not enough in order to propel Danaher into a space all by themselves. Kaikaku (radical change) was a hallmark of Danaher's Strategy Deployment process.

Mark discusses how companies develop On-Time Delivery KPIs (OTD) that do not reflect the customer's needs. Learn how Mark calls these "Watermelon KPIs" – GREEN on the outside and RED on the inside. Do your OTD metrics truly drive customer satisfaction?

Mark discusses building profitability into the design process via the Target Costing methodology. Roughly 70% of a product's cost is baked into the product's design and process, leaving only 30% to Kaizen (post-design). Learn from Mark's experience as CFO of Danaher's JAKE Brake, where Target Costing played a significant role in JAKE's profitability.

Mark talks about the types of Value Stream organizations and their benefits. But why are organizations reluctant to move to a Value Stream structure? Mark discusses the reasons why.

Mark talks with Jerry Wright on his new book about the ills of MRP. Jerry talks about his experience of seeing failure after failure with companies trying to perfect MRP. He argues that a Lean Transformation is impossible if MRP is used as the primary resource planning tool. MRP was first introduced in 1964 and despite its failures, is still the tool of choice for so many companies today.

Mark talks with an esteemed Lean colleague, Griselda Abousleman, whose life story should be an inspiration to all minority women, as well as to all of us who are struggling to make it in this world. Her incredible story is chronicled in her newly released book, “From the Border to the Boardroom.” Griselda talks about her upbringing in a Texas border town and her tenacity to refuse to give in when others told her she cannot succeed. Her rise from the border town of Brownsville, Texas, to an Ivy League education to the top echelons of Corporate America, and now, a successful entrepreneur, should inspire all. Known globally, Griselda is the founder of a Lean consulting and executive coaching business, Lean Business Excellence (www.businesscoachingresults.com). Her personal mantra, "Let your optimism carry you forward,"  is not only a lesson for business but a lesson in life!

Most people define defects based on an engineering product specification. There is nothing wrong with this. However, in this episode, Mark DeLuzio explains why we need to broaden our thinking when it comes to defining defects.

Are you focusing on productivity as your barometer of Lean improvements? Mark DeLuzio discusses why this approach may be leading your Lean transformation into a brick wall.

Have you ever wondered why a supplier is auditing their "customer?" Mark discusses the ills of Lean Audits and the destructive culture created by those executing these audits.

It appears that the Lean Community has lost its way from the originators of Lean…that is, Toyota. Mark DeLuzio discusses the many reasons why and points out the need for us to get back to basics.

Nathan Corliss joins Mark DeLuzio to discuss the crucial topic of respect for people within lean transformation processes. As they navigate through personal anecdotes and professional insights, they discuss the significance of understanding and valuing employees' contributions and the principles of continuous improvement.

Ever wonder what a Lean Investor thinks? What they see? The questions they ask? Probably not, since there are so few in existence. In this episode, Mark talks with his long-time friend and colleague of 34 years, Cliff Ransom, of Ransom Research. As a Wall Street Analyst, Cliff covered Danaher, starting in 1990 at their Jake Brake Division. He has dedicated his professional career to the understanding of Lean Thinking as it relates to investing and profitable growth. A life-long learner who has invested his own time on Shingijutsu Study Missions around the world, including Toyota Japan. Having grown up with Danaher, Cliff understands the growth and mindset that made Danaher the powerhouse it is today. Listen as you learn to see Lean through Cliff's eyes, as well as our discussion on the “next generation Danahers.”

Like many poisons, they initially taste good. However, over the course of time, the poison will be your ultimate demise. Mark and Jon talk about how our metrics drive behaviors that fly in the face of Lean principles.   Most metrics today do little to truly solve a problem. Traditional accounting, Gemba Boards, and standard KPIs need to be carefully evaluated to ensure they are congruent with your Lean transformation.

Learn about the 7 Flows of Manufacturing as taught by our Sensei Chihiro Nakao of Shingijutsu. Jon takes us through The 7 Flows, which are easy to understand. However, not all that easy to implement. These concepts are a must if you are to call your operations “Lean.”

Mark discusses why TOC was not included in the framework of DBS and how TOC is in conflict with fundamental Lean principles. In the final analysis, it was determined that TOC offered nothing unique when compared to Lean and had the potential to drive the wrong behaviors while creating mass confusion amongst Danaher companies.

Mark talks with Art Byrne, former Danaher executive and Wiremold CEO, about the early days at Danaher. Learn that it was more than the factory floor that had to change…more importantly, it was the mindset of Danaher's leadership. Art and Mark discuss the history of Jake Brake and Jacobs Chuck, the two early adopters of the Toyota Productions System, as led by the disciples of Taiichi Ohno, Shingijutsu Consulting, LTD. Little did Art know that we would be setting the stage for the adoption of Lean in the United States and beyond.

Mark talks with Art Byrne, former Danaher executive and Wiremold CEO. Art talks about the elements to create a Lean culture. In plain words, Art states that culture is defined as: “Just the way we do things here.” As you listen to Art, who pioneered one of the most successful Lean transformations at Wiremold, you will see the emphasis he places on people and his strict advice as to the changes a CEO needs to make in order to successfully execute a Lean transformation.

Mark talks with Lean Horizons' Managing Director, Kevin Mathis, about why a company needs an experienced Lean Sensei (teacher). Learn Kevin's 5 Points of a Lean Sensei as well as what Toyota has to say about this.

Mark talks with Art Byrne, former Danaher executive and Wiremold CEO. This Lean Pioneer has led some of the most successful Lean turnarounds in brownfield environments. Art discusses his latest publication, “The Lean Answer Book” which documents the most common questions Art had been asked in over four decades regarding Lean Transformations.

Kevin Mathis, Managing Director of Lean Horizons Consulting, talks about how he created the first Mixed Model Production cell in Danaher. In this episode, Kevin discusses how to implement a mixed model cell as well as how it all relates to the fundamentals of the Toyota Production System, specifically, JIT, Standard Work, Heijunka, Kaizen and Jidoka.

In this episode of the Lean 911 podcast, Mark DeLuzio is joined by Kevin Mathis, a Managing Director at Lean Horizons. Kevin shares insights from his extensive experience, including pioneering mixed model production at Danaher's Hennessey plant. The discussion covers the background of mixed model production, its challenges and benefits, the critical role of engaging employees in the lean transformation process, and the impact on safety, quality, delivery, and cost. The conversation also touches on the importance of product design in lean manufacturing and how mixed model production aligns manufacturing processes more closely with customer demand. Key lean concepts such as kaizen, standard work, and respect for people are emphasized as fundamental to successful implementation.

So many leaders have a gross misunderstanding as to how to get true, sustainable results using Lean principles and methodologies. When times get tough, many revert to headcount reductions, and many times, these reductions are in their Lean organization. Learn how to focus on the right things and avoid the well-deserved, however unfortunate, moniker that L.E.A.N. = Less Employees Are Needed.

Learn why measuring on-time delivery to REQUEST date is essential if a company truly believes in customer excellence. Mark DeLuzio dispels all of the excuses when companies refuse to measure OTD to request date.

Learn why chairs in a cell are detrimental to a good Lean cell design. Mark DeLuzio discusses the negative consequences of chairs from an SQDC perspective. (Safety-Quality-Delivery-Cost)

Learn why problem escalation processes send signals to frontline associates that they are not qualified to solve problems over work that they are best suited to solve. This elitist approach demoralizes and demotivates employees when their engagement opportunities are stripped away from leaders who do not walk the talk when they preach that problems need to be solved at the lowest possible level in the organization.

Hida Oba discusses the importance of Standard Work and why all other aspects of Lean are connected to this very important, however, neglected component of the Toyota Production System. Hide also discusses how his famed father, Hajime Oba, facilitated the teachings of TPS Basics in his own unique way.

Hajime Oba had a storied career with Toyota, culminating as the CEO of the famed Toyota Supplier Support Center (TSSC) in Georgetown, KY. In this rare interview with his son, Hide Oba talks of the lessons learned from his father's unique view which he perfected in the implementation of the Toyota Production System.

More and more companies today are on the Lean bandwagon. There are plenty of Gemba Boards, fancy posters, Lean polo shirts, and don't forget the yellow tape. But when asked about their Kaizen activity, the response is lethargic, at best. Learn how a rigorous and disciplined Kaizen approach is essential to any Lean transformation.

The Production Preparation Process (3P) was invented by Chihiro Nakao, who is known as the Father of Moonshine (FOM). Nakao, one of the original disciples of Taiichi Ohno, (Father of the Toyota Production System) taught us at Danaher and GE how to develop processes that will drive your company to industry-wide competitive advantage. Learn from Jon Boucher, a star pupil and disciple of Nakao, how 3P and Moonshine are that part of Lean that few will ever learn, and why your company should adopt this practice.

All good humor has some truth to it. Please see Mark's parody on how to get rid of GAN (Japanese for Cancer) from your organization with our new product GAN-AWAY! Just one spray and GAN is removed forever! GAN comes in many forms, including new consulting inventions that pull your attention away from the basics of Lean. Therefore, the title, “Basic” Lean Humor. Enjoy!

Joe Rutz, Managing Director of Lean Horizons Consulting, was instrumental in the development of the Danaher Business System (DBS). Joe brought his experience in information technologies and administration to bring DBS to the next level. Learn from Joe his principles and guidelines as to when to apply information technology to an administrative process and when to not!  Better yet, learn that IT solutions need to work for you, rather than the other way around!

Learn what it takes to be able to call your process a “process.” These 10 Rules of a Process outline the basic framework of a process and, when followed, greatly increase the probability of sustaining and subsequently improving your results. If you focus on the process, the results will follow!

An industry has been created where self-anointed, higher-power “Lean” organizations have convinced companies that their mark of approval is a necessary credential for Lean success. In our opinion, these organizations are shams whose real intent is to generate profits from consulting services, conferences, and publications. Learn why we feel the only mark of approval that matters is from your key stakeholders: Employees, Customers, and Shareholders.

How many times have you attempted to solve a problem and were told you “CAN'T” do something because of customer requirements, specifications, government regulations, supplier guidelines, industry standards, etc.? The list goes on and on. In this episode, learn that these so-called regulations need to be challenged and, many times, are no longer in effect. Your problem-solving efforts will be substandard if you do not challenge the status quo. As Ronald Reagan once said, “Trust but verify!”

Problems can be categorized into three main types. It is helpful to understand whether you have a Type 0, Type 1, or Type 2 problem, since different courses of action may be required for each. Learn the three types of problems and why it is useful to understand the nature of the problem you are trying to solve, before embarking on your problem-solving journey.

Most businesses today focus on lagging indicators, while important, are not conducive to proper problem-solving. Learn the difference between leading and lagging indicators and why it is essential to identify and improve the leading indicators if true improvement is to occur.

Poor problem-solving usually begins with a poorly defined problem. When this happens there are usually many solutions looking for a problem. Listen to Mark DeLuzio describe the basics of creating a meaningful problem statement as well as the pitfalls surrounding problem definition.

How many “solutions” proposed by leadership actually work? Do we really engage the front-line associates in solving problems? As a part of a series on Problem Solving, Mark DeLuzio discusses why it is crucial to engage those closest to the problem in developing a problem-solving culture. He also gives examples as to why this approach really works, and is a key ingredient towards enriching the work life of your fellow associates.

Are you truly “solving” problems in your Lean Transformation, or simply reacting to problems and putting out today's fire (problem “fixing”)? Listen to Mark DeLuzio talk about the difference and why it is critical to develop a true problem-solving culture within your organization.

Mark DeLuzio discusses the topic of daily management and Gemba Walks in this episode of the Lean 911 Podcast. He highlights the confusion surrounding daily management and emphasizes the importance of using leading indicators rather than lagging indicators on Gemba boards. Mark also emphasizes the need to tie together the hard tools and soft tools of Lean, such as work standards and problem-solving, in order to truly advance in daily management. He encourages listeners to avoid "Fake Lean" and virtual signaling and instead focus on real value and improvement.

Mark DeLuzio dives into the details of what constitutes a Kaizen and how it can be effectively communicated through a Kaizen report out. With a focus on providing insights into the process, Mark shares a presentation he has put together that outlines the various elements of a successful Kaizen.

In this episode of Lean 9 1 1, Mark DeLuzio discusses the pitfalls of Kaizen, the second part of a three-part series on the subject. He highlights the importance of avoiding these pitfalls, whether you are new to Kaizen or have experience in its implementation. The first pitfall he addresses is the presence of observers in the Kaizen event. Mark firmly believes that there should be no observers and that everyone should be actively involved in the team. He emphasizes the value of learning by doing and compares it to watching golf videos without practicing the sport oneself. Mark also stresses the significance of keeping the team together throughout the Kaizen event and being fully dedicated to the process. He discourages part-time participation and emphasizes the need for punctuality and commitment to the team.

Join Mark DeLuzio as he unravels the essence of Kaizen and presents the 10 Rules of Kaizen. Drawing from his extensive experience and learnings from notable figures in the industry, Mark shares practical wisdom that challenges conventional thinking and encourages continuous improvement. From discarding traditional concepts and keeping an open mind to rejecting excuses and embracing imperfection, these rules shed light on the fundamental principles behind successful Kaizen implementation. Mark also provides a glimpse into the upcoming episodes, where he will delve into the pitfalls of Kaizen and dissect the anatomy of a kaizen, focusing on the transformative power of the Kaizen report out.

In this podcast episode, Mark DeLuzio discusses the traditional definition of value-adding and non-value-adding activities in lean manufacturing. He argues that this definition is flawed because it does not consider the importance of all the activities that contribute to the success of a company, even if they are not directly related to the production process. He also points out that even activities that are traditionally considered to be value-adding can have non-value-adding aspects. DeLuzio concludes by suggesting that we need to "reset our thinking" about value-adding and non-value-adding activities. He argues that we should focus on eliminating waste from all aspects of our work, not just the production process.

This episode discusses the concept of accounting for lean, which is the modification of accounting processes and internal management reporting to better promote lean behaviors. Lean accounting is designed to take waste out of the accounting process, provide more timely and quality information, and help the accounting group become navigators rather than historians. Accounting for lean is important as it sets the foundation for other lean behaviors.

Lean accounting is the application of lean concepts and methodologies to drive waste out of the accounting process, just like any other process. Accounting for Lean is modifying the accounting process and internal management reporting to promote lean behaviors and provide more timely, accurate, and customer-focused information. The benefits of lean accounting include eliminating waste, providing more timely and accurate information, freeing up accounting resources, and allowing accountants to be more navigators than historians. Implementing lean accounting requires taking out the waste of the accounting process, which will allow for a successful transition to accounting for Lean.