Gary Kapanowski Moeller Manufacturing CLSSMBB The 8 Waste

Gary Kapanowski Moeller Manufacturing CLSSMBB The 8 Waste

Gary Kapanowski Moeller Manufacturing CLSSMBB The 8 Waste th 1 Resources and gender pay inequality 02/28/2020 Warning This presentation might: o Alter your perception on business and competitiveness

o Challenge your views o Disturbing to understand o Obliterate your paradigm of business Welcome to the exciting world of LEAN !!!!! 02/28/2020 2 The Lorax 02/28/2020 3 Summary

The 8th Waste Lean Maturity: Gender Pay in US The Case to Identify Gender Pay Inequality Examples in Silicon Valley Gender Pay Inequalitys Financial Impact Violation of Toyota Production System (TPS) Action Plan: Lawrence Technological University PDC Womens Forum What Can We Do? 02/28/2020 4 The 8 Waste

th 5 Why is this still occurring? 02/28/2020 The 8 Waste th 7 wastes in the Toyota Production System (TPS) o Transportation o Inventory o Motion o Wait

o Over-Production o Over Processing o Defect 02/28/2020 6 The 8 Waste th The 8th waste is the use of Resources or Talent o De-motivating of the workforce o Not incorporating your team members in the input phases of the process o Not recognizing success 02/28/2020

7 The 8 Waste th LEAN is o Lean is the identification, elimination, and reduction of waste or non-value added activity within a process as perceived by the customer o Better, cheaper, easier, faster, and safer o Do more with less 02/28/2020 8 The 8 Waste

th People Focused o Know what the expectations are for the task o Method to keep problems from returning o Influence & correct problems Establish mutual trust o People development o Promote team work Jim Womacks Gemba Walk o Voluntary continuous improvement o Create positive environment for problem solving 02/28/2020 9

The 8 Waste th Why LEAN is not a One Size Fits All application o Implementation is what is expected (adjust) in the current culture o Environment o Social o Economic 02/28/2020 10 The 8 Waste th

Why LEAN is not a One Size Fits All application o As explained in the book: The Machine that Changed the World, Womack, Jones, & Roos LEAN is not a singular culture driven methodology It can be implemented in any situation Adjusted to your environment with people as the focus for continuous improvement LEAN will change over time 02/28/2020 11 The 8 Waste th

The 8th waste is the use of Resources or Talent o Knowledge worker named by famed management consultant Peter Drucker o Managements responsibility to align the tasks with the resources 02/28/2020 12 The 8 Waste th The 8th waste is the use of Resources or Talent o If performed properly, the knowledge workers will be more motivated to accomplish their tasks to produce

profits o Culture transformation towards worker, i.e. LEAN 02/28/2020 13 Lean Maturity: Gender Pay in US 14 Is Gender Pay Equality Possible? 02/28/2020 Lean Maturity: Gender Pay in US Introduce Lean Maturity Life Cycle

Where do you think US is on the Life Cycle model? 02/28/2020 15 Lean Maturity: Gender Pay in US Evidence beyond Introduction o Laws o Genders work same roles / jobs o Open Society o Education 02/28/2020 16 Lean Maturity: Gender Pay in

US STEVE JOHNSONS INNOVATION MODEL o Adjacent Possible CAVEMAN EXAMPLE: o After discovering the club, what is available to the cavemans next innovation for advancement o Gender Pay in US 02/28/2020 Is

Is Is Is Is it possible for women to be paid equally? there any technological gap blocking this advancement? there any physiological gap blocking this advancement? there any cultural gap blocking this advancement? the gap as large as developing the club to atomic bomb? 17 Lean Maturity: Gender Pay in US As a group, decide where you think the US is on equal pay in Lean Maturity 02/28/2020 18

What is your favorite color? 19 Remember this for later in the presentation 02/28/2020 The Case to Identify Gender Pay Inequality 20 An issue that continues 02/28/2020 Identify Gender Pay Inequality The results on equal pay for women o There have been many studies to indicate the wage inequality

o The only issue is really by how much $.$$ 2% to 4%, segmented data +20%, macro view 02/28/2020 21 Identify Gender Pay Inequality Results from within the organization on equal pay o Over the past 25 years, women have outpaced men in earning college degrees by 60% to 40% o However, the top management and board positions held by women are 20% and 25% respectively 02/28/2020

22 Identify Gender Pay Inequality Results from within the organization on equal pay o The variance still exists after 50 years of the Equal Pay Act o Why do we see such a large variances? 02/28/2020 23 Identify Gender Pay Inequality Coaching the Alpha Male, Harvard Business Review study, May 2004 o Teams and collaboration management style more favorable

to produce positive results in todays business environment o More common with women managers than men o Metrics should improve for women in future Question not being asked: o If the study is true, why is there a pay and diversity issue with corporate executive teams? 02/28/2020 24 Identify Gender Pay Inequality Study by firm Equilar and Associated Press, 12/20/15 o Median Pay for CFOs o Women: $3.32M, up 11% yr-yr

o Men: $3.30M, up 7% yr-yr o The gains are due to expansion of the role of CFO, includes more responsibility and visibility o The paradigm changed for this role: Equality can be achieved o Transforming into something new, i.e. no longer a bean counter 02/28/2020 25 Identify Gender Pay Inequality Women in the C-Suite, a study by Chief Executive, 5/9/15 o Women CEO pay higher than Male counterparts, but. o Lower in numbers, 22 female CEO in S&P 500, 4.4%

o One and Done scenario: 02/28/2020 Women obtaining a CEO role drops 51% if the team has a women Check the box quota mentality No room for any others No more effort No more mentoring 26 Identify Gender Pay Inequality Women in the C-Suite, a study by Business Insider,

9/20/15 o Women make up 47% workforce o Women make up 51% of management o Women make $0.78 for every dollar a man is paid o Fortune 500 Statistics women account for: 17% of board members 15% of C-Suite executives 5% of CEOs, 25 women executives o Fortune 1000 Statistics women account for: 5% of CEOs, 52 women executives 02/28/2020 27 Identify Gender Pay Inequality Women in the C-Suite, a study by Business Insider, 9/20/15

o 2013 Fortune 500 results 4th consecutive year without significant growth in women executive 8th year without significant growth in female board members o Policy is easy..perception and expectations are hard 02/28/2020 28 Identify Gender Pay Inequality Women in the C-Suite, a study by Business Insider, 9/20/15 o Subtle biases being a mother viewed as lacking commitment Trust those that look like you Men enjoy 6% pay increase when they have a baby Women lose 4% of pay for every child they have

02/28/2020 29 Identify Gender Pay Inequality Women in the C-Suite, a study by Business Insider, 9/20/15 o Research from McKinsey & Deloitte Linked a diverse executive team and business success Diverse leadership cultivate talent from a larger pool then competitors Fosters innovative solutions due to different ways of thinking Synergies Question not being asked: o Why arent men at the leadership positions invite women into

the conversation to take advantage of these opportunities? 02/28/2020 30 Identify Gender Pay Inequality Women in the C-Suite, a study by Business Insider, 9/20/15 o Research from Catalyst (2010): 10,000 alumni from elite business schools o Women were 30% more likely to begin their careers at entry level Harder to obtain C-Suite from lower starting point o Women were 3x more likely to be laid off during recession CEOs look for people who they trust, i.e. look like them o When women followed mens CEO strategy, they were less likely to reap the benefits than then men

Mens Strategy: Networking, work extra hours, negotiating for raises, communicating desire for corporate hierarchy advancement 02/28/2020 31 Identify Gender Pay Inequality Women in the C-Suite, a study by Business Insider, 9/20/15 Question not being asked: o When will change come from the top? o When will the workplace be fixed? Isnt this a process issue? Red-Bead Experiment .

02/28/2020 32 Identify Gender Pay Inequality Women in the C-Suite, a study by Business Insider, 9/20/15 o Ideas that are working: To move up the ranks, place people on visible projects in roles where performance is crucial to weather project succeeds or fails Make a business case for diversity within the organizational culture Diverse group of people making key business decisions Make diversity metric that you measure Question not being asked: o If you value diversity, why aren't you measuring it?

02/28/2020 33 Identify Gender Pay Inequality Women in the C-Suite, a study by Business Insider, 9/20/15 o Sallie Krawcheck, former president of wealth management at Bank of America When I graduated from college (1987), I thought we would have had this figured out by now. But we just havent. Flexibility without shame Established an index fund in 2015 that utilizes an algorithm to invest in companies with higher proportions of women leadership to prove empirically that more women means more money 02/28/2020 34

Identify Gender Pay Inequality How Marissa Mayers Maternity Decisions Affects Young Women, a study by LinkedIn, 9/2/15 o CEO of Yahoo taking 2 weeks leave for having twins Less than the paternity policy at Yahoo What does this signal to young female professionals at Yahoo or other companies Work / Family life balance: is it undesirable or unrealistic Deterring young women from aspiring to be CEOs Question not being asked: o Is the culture being set at the top? 02/28/2020 35

Identify Gender Pay Inequality How Female CEOs Actually Get to the Top, 11/6/14 o Of the 25 women CEOs: 3 followed the men strategy of consulting firm or bank as 1st college job 5 stayed at their current company their entire career 70% were with the company for over 10 years before promoted to CEO while men was 48% The other 30% moved laterally before obtaining CEO role after staying with original company over 10 years 02/28/2020 36 Identify Gender Pay Inequality

How Female CEOs Actually Get to the Top, 11/6/14 o Of the 25 women CEOs: Median time working at a company before becoming CEO Men is 15 years Women is 23 years, 50% longer Culture means a lot for women progressing toward the CEO role 02/28/2020 37 Identify Gender Pay Inequality How Female CEOs Actually Get to the Top, 11/6/14 o Corporate Structure instrumental for women to obtain CEO: Company culture important Supportive organization

Strong mentors Biases toward maturity leave Ambition to remain as strong as men over time, not drop off Ivy league school degree not an issue (4% men and 8% women) Top tier business school: 16% men and 25% women Average age CEO: 56 women, youngest is 45 year old 02/28/2020 38 Identify Gender Pay Inequality How Female CEOs Actually Get to the Top, 11/6/14 o What matters for women to obtain CEO opportunity: Commit to a company Work Hard Prove yourself in multiple roles Find a good place to climb Steady focus wins the day

02/28/2020 39 Is this a person or process problem? 40 LEAN Answer: Fix the process not the person 02/28/2020 Identify Gender Pay Inequality Results supported by research from UCLA Women's Law Journal by Schipani, Morehead Dworkin, & Ramaswami o This is not a supply problem Workforce is represented by 42% men and 58% of women 53% increase since 1963

Number of working mothers have grown to 70% from 54% (1962) A record number of Title VII sex discrimination cases were filed in 2012 88% of women completed High School or more 37% of women completed four years of college 11% of women completed graduate school compared to 8% of 02/28/2020 men 41 Identify Gender Pay Inequality Results supported by research from UCLA Women's Law Journal by Schipani, Morehead Dworkin, & Ramaswami o This is not a supply problem Overall gender breakdown: Women with master degrees: 60% to 40% men

Women with PhD degrees: 52% to 48% men 02/28/2020 42 Identify Gender Pay Inequality American Association of University Women and National Partnership on Women and Families, Fall 2015 o Equal pay is critical to families economic security With a record number of women in the workforce 2/3 of women functioning as the primary earner in the family www.aauw.org www.aauw.org/research/the-simple-truth-about-the-gender-p

ay-gap/ 02/28/2020 43 Identify Gender Pay Inequality American Association of University Women and National Partnership on Women and Families, Fall 2015 o Women experience a 7% pay inequality or earn 93 cents when compared to men for college graduates just one year after graduation After controlling for factors known to affect earnings: Occupation College major Hours worked 02/28/2020

44 Identify Gender Pay Inequality A national study by American Association of University Women and National Partnership on Women and Families o As of 2013, women earned 77 cents compared to every dollar by a man The inequality was larger for women of color Pay inequality appears early in a womans career After one year out of college, working full time, paid on average 82% of male counterparts 02/28/2020 45 Identify Gender Pay Inequality

A national study by American Association of University Women and National Partnership on Women and Families o The difference between the 93 cent and 77 cent pay inequality indicates: Different distributions for women and men, why? What do the distributions look like? (bimodal / skewed) Correlation between the data of men and women? What does the short and long term data tell us bout the process capability? 7% not explained, why? 02/28/2020 46 Identify Gender Pay Inequality A national study by American Association of

University Women and National Partnership on Women and Families o Wage inequality disappears in 2086 for the state of Michigan o Higher paying careers had larger disparity o Average loss by women in career is $530,000 This is the Cost of Poor Quality (COPQ) for this variance or waste What does this represent for the economy? Is this a zero-sum game? 02/28/2020 47 Identify Gender Pay Inequality What is your favorite color?

$530,000 could buy you thisand more. 02/28/2020 48 Identify Gender Pay Inequality How do you feel about this? Do you feel that you are treated equally? How would this effect team performance?

Does this affect you, spouse, family member? 02/28/2020 49 Examples in Silicon Valley 50 One industry example 02/28/2020 Examples in Silicon Valley Empirical and Statistical results on equal pay for women o The Lean In book by Facebooks COO Sheryl Sandberg demonstrated the issue on a hiring experiment within Facebook

02/28/2020 51 Examples in Silicon Valley Twitter funds frat party for employees, highlighting Silicon Valley bro culture: By Jennifer Booton : 7/22/15 Exposed by female Twitter employee then activist group Global Tech Women using #diversitymatters and #brogrammers 02/28/2020 52

Examples in Silicon Valley Non-diverse work culture in Silicon Valley Among the top tech companies, glaring percentages Twitter: 70% staff male, 90% tech jobs male Facebook: 69% male Apple: 70% male

What is the diversity percentage at your workplace? 02/28/2020 53 Examples in Silicon Valley Non-diverse work culture in Silicon Valley Current class action lawsuits for discrimination: o Twitter:

March 2015 Complaint by former software engineer Glass ceiling culture o Google: March 2015 Complaint by former software engineer Secret spreadsheet highlighting gender & minority wage inequalities Venture capital firm Kleiner Perkins Caulfield & Byers won a discrimination lawsuit filed by Ellen Pao considered as a landmark decision, 3/2015 02/28/2020 54 Examples in Silicon Valley

Non-diverse work culture in Silicon Valley Utilizing US Department of Labor data from 2014 Female software developers were paid 83.9% when compared to their male colleagues 02/28/2020 55 Examples in Silicon Valley Can you provide examples of the gender pay

inequality? In your industry? At your company? At your volunteer organization? Discuss with another or as a team 02/28/2020 56

Gender Pay Inequalitys Financial Impact 57 Market value impact on organizations 02/28/2020 Financial Impact If we assume for our hypothesis test: Talent / skills are distributed evenly across genders Gender pay inequality and glass ceiling at C-suite exits

If there is a misallocation of resources, the economic impact would indicate a market that is not in equilibrium and not maximizing profits 02/28/2020 58 Financial Impact Predictive result: This dilutes talent at the C-suite Organizations with diverse C-suites has the ability to

produce abnormal growth / profits when compared against male dominated C-suite organizations In our case, incorrect decisions would occur to devalue the market value of the non-diverse organization Market inefficiencies produce higher consumer prices and greater risk for recessions 02/28/2020 59 Violation of TPS 60 Toyota production system (TPS) and gender pay inequality 02/28/2020

Violation of TPS The heart of lean is eliminating waste (muda) Waste can be defined as anything that does not add direct value to the end service or product from the customers perspective 02/28/2020 61 Violation of TPS Talent De-motivating the workforce by not asking for input or recognizing success Transportation

Unnecessary movement of material or product Motion Unnecessary movement of people; multiple hand-offs The 8 Wastes Inventory Material or product that is used to cover for inefficiencies Waiting Elapsed time between processes when no work is being done Over-production Making or manufacturing in excess of customer requirements;

providing a service that is not really needed Over-processing Defect Anything that s does not meet Adding unnecessary steps to a process; redundancies between processes the acceptance criteria 02/28/2020 62 LEAN Principles: Toyota Production System (TPS) 1. 1. Long

Long Term Term Philosophy Philosophy Quality Quality is is Free Free base base your your decision decision on on long-term long-term goals goals Hoshin Hoshin Kanri: Kanri:

Long-term Long-term meets meets shortshortterm term goals goals 2. 2. Continuous Continuous flow flow bring bring problems problems to to the the surface surface 3. 3. Use Use pull pull system

system produce produce only only whats whats needed needed Industry Industry Does Does Not Not Matter Matter 5. 5. Quality Quality right right first first time time stop,

stop, fix, fix, do do it it right right -- jidoka jidoka Use Use customer customer input input to to improve improve your your products products and and services. services. 6. 6. Create

Create standards standards ensure ensure continuous continuous improvement improvement 7. 7. Visualize Visualize dont dont hide hide information information 02/28/2020 I. I. Long Long Term

Term Philosophy Philosophy II. II. Right Right Process Process Right Right Results Results III. III. Senior Senior Management Management Leads Leads the

the Charge Charge IV. IV. Solve Solve root root causes causes 13. 13. Slow Slow -- Fast Fast approach approach Nemawahsi Nemawahsi make make decision decision slow, slow, implement

implement fast fast 12. 12. Go Go and and See See experience experience the the situation situation The The Toyota Toyota way way can can be be applied applied to

to every every process process 4. 4. Level Level workload workload balance balance need need -- heijunka heijunka 14. 14. learn learn reflect reflect -- measure measure and and improve improve -kaizen

kaizen Not Not why why did did you you fail, fail, but but why why did did the the process process fail fail TYPES TYPES OF OF MUDA: MUDA: TIM

TIM WOODS WOODS 1. 1. Transportation: Transportation: 2. 2. Inventory: Inventory: 3. 3. Motion: Motion: 4. 4. Wait Wait Time: Time: 5. 5. Over-Processing: Over-Processing: 6. 6. Over-Production: Over-Production: 7.

7. Defects: Defects: 8. 8. Separated Separated From From Employee Employee Creativity: Creativity: Big Big Waste Waste 11. 11. Respect Respect Partners Partners help help and and challenge challenge supplier supplier

10. 10. Develop Develop Teams Teams success success is is based based only only on on teams teams 9. 9. Grow Grow your your own own leaders leaders understand, understand, live live and

and teach teach work work 8. 8. Keep Keep it it simple simple reliable reliable and and standard standard processes, processes, structure, structure, and and technology technology 63 Violation of TPS

The principles violated by not eliminating the pay inequality o 1. Long Term Philosophy: base your decision on long-term o o o o o o o o goals 5. Quality right first time: stop, fix, do it right - jidoka 6. Create standards: ensure continuous improvement 7. Visualize: dont hide information 9. Grow your own leaders: understand, live and teach work 10. Develop Teams: success is based only on teams 11. Respect Partners: help and challenge supplier 12. Go and See: experience the situation

14. Learn: reflect - measure and improve - kaizen 02/28/2020 64 Action Plan 65 Corrective measures initiated by Lawrence Technological University Professional Development Center (LTU PDC) participants 02/28/2020 LTU PDC Womens Forum As lean professionals, we are chartered to identify and eliminate waste when we can o Identified several continuing educational professional students having a difficult time finding work even after completing classes

o After placing the individuals on a spreadsheet, I realized that the segment having trouble were women transitioning from a non-manufacturing to a manufacturing environment o The group of nine women were contacted and asked to participate in a womens forum to discuss their issues regarding employment 02/28/2020 66 LTU PDC Womens Forum As lean professionals, we are chartered to identify and eliminate waste when we can o During this Lean Huddle, we identified the necessary skills needed for employment and met the following week in a Kaizen blitz to improve each professionals resume, LinkedIn profile, and elevator speech

o All completed in one session with industry experts for each area o The results were impressive with seven of the nine women receiving job offers within 30 days and all nine receiving job offers within 60 days o Mentor program, either formal or informal, works 02/28/2020 67 What Can We Do? 68 How can we make an impact? 02/28/2020 What Can We Do? If we can agree that the gender pay inequality is waste, we need to utilize our Lean Eyes to eliminate it

This can be performed during the yearly performance review 02/28/2020 69 What Can We Do? Start informal or formal mentor program to overcome challenges to networking for women with dependents Supported by research from UCLA Women's Law Journal by Schipani, Morehead Dworkin, & Ramaswami 02/28/2020 70 What Can We Do?

REMEMBER: LEAN = PEOPLE 02/28/2020 71 What Can We Do? Promote diversity and teams Produce better results, i.e. more profitable organizations 02/28/2020 72

What Can We Do? Some gains are being made, i.e. CFO roles The inequality gap remains Look at process not person for continuous improvement 02/28/2020 73 What Can We Do? We cannot adopt the men strategy for CEO

progression Have to align with organizations with culture open for change, diversity, and teams 02/28/2020 74 What Can We Do? Pass the Paycheck Fairness Act (S. 84/2199 and H.R. 377) Pass the Fair Pay Act (S. 168/H.R. 438) Supported by the American Association of University Women 02/28/2020 75 Thank You 02/28/2020

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