Why continuous improvement matters,

and how we bring it to life

12 June 2015

Jon Alder

Director, Group Lean Enterprise

Introductions

Jon Alder

Director, Group Lean EnterpriseCorporate HQ

...to be the best beverage can maker in the world

Our Vision…

Continuous improvement driven

High capacity utilisation vital

Skilled labour (mechanic/engineer level)

Flexibility a modern necessity

8,000 people

£3.9 billion – sales in 2013

62 billion cans per year

Rexam

Recap on what is “lean enterprise” – the essential cornerstone

The problems The outcomes The solutions

Any and every process suffers from………

Mura (English: Unevenness or irregularity):

Muri (English: Overburden):

This results in……..

Muda (English: Waste)

Mitigated by simple and universal

principles

Customer First! Respect Everybody!

Current thinking

And then?

Current State

Future StateHow are we going to get there?

What does best mean?

What does best mean?

For Lean Enterprise at Rexam

Current State

Future State

Deliver, on time, a better can at a lower cost

Task 1

Create a Sense of Purpose

Deliver, on time, a better can

at a lower cost

It’s timeless and universal, and should mobilise everyone

After the “what?” we need a “how?”

Current State

Future State

Task 1

Create a Sense of Purpose

After the “what?” we need a “how?”

Keep it simple and relevant

to everybody all of the time….

….and over time, evolve.

Current State

Future State

Task 1

Create a Sense of Purpose

Task 2

Make a solution Fit for Purpose

Current State

Future State

Task 2

Make a solution Fit for Purpose

Task 3

Show Constancy of Purpose

Task 1

Create a Sense of Purpose

After “how?, there will be a continued need for a “why?”

Take a Long term view

JIPM

Rexam circa 2002

Lessons learned

Shingo Principle – See Reality

Six Sigma

Variance

Reduction

T zero

TimeDesign for Six Sigma

Statistical Process Control

Industrial Experimentation

Correlation

FMEA

Measurement

C&E

Lean basics!

Waste

Reduction

Value Stream Mapping

Total Productive Maintenance

SMED

Kanban

Heijunka

JIT

5S

Back to Basics!

Culture

5S

TPM

SMED

6 Sigma

VSM

People want logic in what they do – fit for purpose!

Leadership and

consistency

Employee engagement and

participation

Orchestration of

activity

Enabling

improvement

5S

VSM

6

Sigma

Culture

TPM

SMED

Put the tools into a system to deliver value

We have taken a systematic approach

SO UTH AM ERICA (CAN S)

Ex trema BG BG BG Silver

Aguas Cla ras BG BG BG W IN N ER Shingo

Santa Cruz no audit BG

Brasilia no audit

Recife La tas no audit

Chile (Santiago) no audit No audit

Argentina no audit no audit

Jacarei BG BG

Cuiaba no audit Bronze

Pouso Alegre BG

SO UTH AM ERICA (EN DS)

Recife Tampas no audit BG BG BG Silver Shingo

M anaus (Ends) BG BG Silver

BEV ERAGE CAN EURO PE

Argayash

Berlin no audit no audit BG BG BG

China

Denmark (Fredericia ) no audit

Egypt 2009

Ejpovice 2009 2011 BG 2013

Enzesfeld no audit BG BG BG no audit

Fosie BG BG BG BG

Gelsenk irchen no audit no audit no audit BG BG

I reland (W aterford) no audit

Ludesch 2009 BG BG

M ilton Keynes no audit no audit BG BG

M ont 20-Apr BG

M umbai (Ta loja ) No award

N aro Fominsk cans no audit no audit

N aro Fominsk ends no audit no audit no audit

N ogara no audit no audit

Reck linghausen cans no audit BG no audit BG BG

Reck linghausen ends BG BG no audit BG BG

La Selva 2009 no audit BG

San M artino no audit BG BG

STPB/ Vsevolozhsk

Turkey (M anisa ) BG BG BG no audit no audit

Va ldemorillo BG no audit BG BG no audit

W akefield BG BG BG no audit NEW

2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3

Gold

Silver

Bronze

Diamond

Sapphire

Emerald

1

2

3

We have come a long way

We have come a long way

We have come a long way

Enzesfeld, Austria Manaus, Brazil Cuiaba, Brazil

Rio HQ, Brazil Extrema, Brazil Aguas Claras, Brazil

4 more plants currently in process for Shingo accreditation

Recife, Brazil

ECA/Rexam , Guatemala

Are we bringing

everyone with

us?

Lessons (re)learned

Are we fit for purpose?

• Shingo focuses on sustaining changethrough embedded principles

• Principles are the new Basics!

Tools Systems Principles Tools

traditional

Shingo

Systems

Principles leaders

associates

managersDr Shigeo Shingo

3 using TPM

methodology1

Current thinking

2

Sustainability of a Lean culture Targeted loss elimination Leveraging what we know

Current thinking - From stepped to linear

Shingo as a concept

http://www.shingoprize.org/

•Lead with Humility

•Respect every Individual

•Focus on Process

•Embrace Scientific Thinking

•Flow & Pull Value

•Assure Quality at the Source

•Seek Perfection

•Create Constancy of Purpose

•Think Systemically

•Create Value for the Customer

Guiding Principles

Alignment

Process

People

Results

Zero Loss (driving efficiency savings)

Zero Loss

In our plants

from to

Zero Loss

Global EIP (strategic best practice)

Strategic best practice as a concept

©Our Iceberg is Melting! Copyright - John Kotter

= orFind Your melting Iceberg!

Questions to ask yourselves

• Do you have a clear sense of purpose?

– Is it timeless and universal?

– Is it simple so anybody and everybody can understand?

– Can anybody and everybody play a positive (or negative) role?

– Has it been communicated effectively?

Questions to ask yourselves

• Is what you are doing fit for purpose?

– How relevant is your programme to meeting the goal?

– Is it appropriate to the current level of knowledge or sophistication?

– Are you constantly reviewing it to be sure it fits?

– Do people understand that there will always be a “next level”.

Questions to ask yourselves

• Do you demonstrate a true constancy of purpose?

– Are we easily distracted away from “the programme”?

– Are we only really looking for that “silver bullet”?

– Does our reward and recognition structure encourage a long term view?

– Is your senior leader an overt advocate?

Summary and wrap up