Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen...
Transcript of Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen...
Inspired Lean Thinking and
Kaizen through Leadership
and Teamwork
Roadmap: 4 Assignments Illustrating Improvement Thinking
Organisational Structures to complement Lean And Kaizen
Common denominators related to Generic Learnings
Toolbox moving forward
Allan Hunt – Manufacturing Manager Peninsula Beverages Company
Senior Flexonics Cape Town
Manufactures flexible exhaust connectors, decouplers,
cross over bellows, and turbo dampers mainly for the
European and North American automotive markets.
Assignment # 1 - Automotive
Senior Flexonics Cape Town
In order to manage 13 global manufacturing sites objectively, the MD of the organisation (based in Wales) ensured that each business is audited in “Operational Excellence” by the same consultant, therefore creating a yardstick and benchmarking each site.
Regarding Operational Excellence and Manufacturing Business Excellence Models, for many of us as a leadership team it was our first exposure. We soon realised that the implementation successes and failures were a function of the people and their acceptance as well as our leadership.
The business, being well led by a MD (Cape Town), and
management team. There were two specific changes we
brought about which created major “spin-offs” towards
performance of KPIs in the next 6 years:
Senior Flexonics Cape Town
1) Organisational Structure:
MD
Production HR Engineering Maintenance Finance Quality
Process Focus
Senior Flexonics Cape Town So in terms of the Process Focus Teams created – driving a Matrix
Organisation (Unit Structure) – the Leadership Team were relentlessly
focussed on reaching Operational Objectives (Quality, Cost and
Delivery).
Driving Lean Thinking, and constantly taking costs out of the business
from the smallest improvement to major Capex implementations.
As a team we focussed on the KPIs of Throughput Increase & Scrap
Reduction whilst holding Quality.
We did not realise at the time how we were entrenching new cultures in
the business – eluding to “the way we do things around here” – I will
come back to that point later in the presentation.
With definite outcomes from Change Management, to Operational
Excellence we were rated on a level of 1 to 5, and we soon realised that
we need to change culture in the business to implement improvements
with longevity. (These days we refer to these as the “practices” in the
plant.)
Senior Flexonics Cape Town
2) Worked hard at creating a TEAM: “The moment you feel the need to tightly manage
someone, you’ve made a hiring mistake. The best people
don’t need to be managed. Guided, taught, led–yes. But
not tightly managed.” – Jim Collins (Good to Great)
The great Learning about working on this team was that in
order to drive sustainable performance, there needed to be
a synergy in the leadership team which would spill into the
organisation.
Glass South Africa – subsidiary of PG Group
The business brought a different mix of problems, but the need was clear
to go very deep operationally on the factory floor, as the culture had no
exposure to Operational Excellence.
As Leadership we introduced Mission Directed Work Teams on the
shop floor (after getting basic rigour & discipline in place) after 6
months.
With our Team Leaders on the floor we focused on driving the
required outcomes as called out by the MDW Measures
Hierarchy of implementation:
• Planning first inside ERP, no exceptions
• Rigour and discipline on daily operational activities glass cutting,
glass processing, glass toughening followed by OTD
Assignment # 2 – Glass Industry
Glass South Africa – subsidiary of PG
Group
Achievements:
On Time Delivery from below 40% to above 95%
Lead Time for delivery from 10 working days to 5 working days
It was hard work to drive a daily routine of cross-functional team
meetings and KPIs – again not verbalising it yet but really starting with
Kaizen culture (… the way we do things around here)
The word “Kaizen” is the Japanese word literally meaning:
“Good Change”
The Etymology of the word “Kaizen”
Leadership inside Visionary Companies
Jim Collins speaks inside his book “Built to last” about the 12 myths on
“visionary companies”
Myth Number 5:
“The only constant is change”
“For the Visionary Companies - Core values remain the same and in
tact – in some cases more that 100 years. Yet there exists a powerful
drive for progress without changing their core values.”
This might seem a paradox, but Kaizen does NOT intend a change of
core values… but refers to this “drive for progress…”
Faurecia Emissions Control Technologies
Leading Automotive Components Supplier in 34
countries with 320 manufacturing sites globally
Implementing Faurecia Excellence System
(mirror of Toyota Production System)
Working as the Ford Business Unit Manager
(about 400 people) manufacturing Catalytic
Convertors
Assignment # 3 – Automotive Industry
The success of all manufacturing operations can be measured as a
combination of the following 5 drivers or Key Performance Areas
(KPA’s) :
1. Quality
2. Cost
3. Delivery
4. Flexibility
5. Speed
Faurecia was driving this approach,
As their “Level of depth” in terms of
Kaizen practices were mature.
Right to Exist
Faurecia Emissions Control Technologies
Business Value
This assignment was operationally the toughest – going
through a very high risk period, almost stopping vehicle
plants in Europe.
Root cause being the late installation of capacity, and the
delayed implementation of operational practices to
achieve capacity.
At a certain stage management started working shifts,
and all because installed capacity was not proved early
enough with project launches.
An example of how “not to do it”?
Faurecia Emissions Control Technologies
However, given operational teamwork, and a drive to
achieve objectives on the factory floor, daily targets we
achieved and exceeded, and after a six month intense
period, supply was stabilised.
Quality problems decreased in number and severity.
One of the most significant Learnings: “The function of
leadership is to reduce the variability to the process.
Variability being caused by man, machine and material.”
– We will come back to this later in the presentation.
Faurecia Emissions Control Technologies
The Peninsula Beverages Company
…we also were faced with which model to
implement and through which organisation?
Assignment # 4 – Beverage Industry
The right practices will deliver the right results
Excellence in WCM implementation is achieved through delivering
improvements in business processes (work practices) that leads to
improvements in business relevant KPIs.
Delivering results through a process or work practices ensures
sustainability, repeatability and transferability of KPIs that are achieved.
Exc
elle
nc
e in
Res
ult
s
Excellence in Work Practices
WCM WCM
ExcellenceExcellenceUnsustainable
Progress
Incorrectly
Focused
“It becomes your
culture”
What have we achieved?
Consistent Quality Performance
Safety culture developed – that is the way we do things around here…
Line Utilisation improvement 2011 to 2013 of > than 20%
Customer OTD improvements of 15% 2011 to 2013
But more importantly, culture which practices Fairness,
Accountability, Continuous Improvement and Teamwork
The Peninsula Beverages Company
TEAMWORK
TEAMWORK
KPIs (Safety, Quality, Morale, Productivity, Delivery, Cost)
VISUAL MANAGEMENT
5S
Manufacturing
Continue with World Class
Practices
VISUAL
MANAGEMENT
TEAMWORK
FOCUSED IMPROVEMENT
FOCUSED
IMPROVEMENT
Daily Metrics – Measured & Displayed
TEAMWORK
Daily Metrics – Measured & Displayed
TEAMWORK
Team Names and Record Performances
FOCUSSED IMPROVEMENT
Rewards and recognition
FOCUSSED IMPROVEMENT
Celebrate Achievements with History
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TEAMWORK
Hourly Throughput measured by operator
FOCUSSED IMPROVEMENT
“First Hour Green”
Hourly Throughput measured and displayed (Back-End & Front-End of line) - On filler performance
TEAMWORK
Example of display of hourly throughput
TEAMWORK
Line KPI board on Line
FOCUSSED IMPROVEMENT
Blowing unit – Code of Conduct on Line
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TEAMWORK
5S - Zoning
Blowing unit – 5S Zoning
House keeping and Performance awards
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5S
FOCUSSED IMPROVEMENT
Quality Award – Monthly Trophy
NEW Quality Award
QUALITY: Is never an accident
It is always the result of
High intention, intelligent
Direction, sincere effort
And skilful execution
Quality Demonstrated
A
A
“Process Operator inside the
Value Chain”
Factory
Suppliers
Customers
Section A-A
Process Operator
Team Leader
Supervisor
Production
Manager
HR
ENGINEERING
QUALITY
MAINTENANCE
LOGISTICS
The customer inside the factory is “The Process
Operator”
The people inside the office is there to serve the Process
Operator, and not the other way around.
Common Denominators for Generic Application:
The “job of a supervisor” is to the Reduce variability
caused by man, machine and material.
“If you were able to reproduce the exact amount of variability
today as yesterday, then the performance for today will be the
same as yesterday.”
Therefore if variability was reduced to a high level of
consistency, you will be able to predict tomorrow’s performance
with a great deal of certainty.
Common Denominators for Generic Application:
A man without information cannot take responsibility.
A man with information cannot help, but to take
responsibility.
If you measure something – and make it visually transparent, it
will improve without doing anything else.
Gather information with facts and data, applying the Pareto
Principles.
Common Denominators for Generic Application:
Go and see with your legs. (Going to the Gemba.)
Inspect what you Expect.
Don’t tell me – Show me.
Common Denominators for Generic Application:
Inside Your Toolbox Moving Forward
Imagine 2 Organisations:
The first is led by a leadership team whose members are
open with one another, passionately debate important
issues, and commit to clear decisions even if they disagree.
They call each other out when their behaviours or
performance needs correction, and they focus their
attention on the collective good of the organisation.
Inside Your Toolbox Moving Forward
Imagine 2 Organisations:
The second is led by a leadership team whose members are
guarded and less than honest with one another. They hold back
during difficult conversations, feign commitment, and hesitate to
call one another on unproductive behaviours. Often they pursue
their own agendas rather than those of the greater organisation.
The question is: what kind of advantage would the first organisation
have over the second, and how much time and energy would it be
worth investing to make this advantage a reality?.... Patrick Lencioni – The Advantage
Before you start:
Be sure that your business/department is ready for the Kaizen Journey.