Invest NI Lean Conference 2016 | Case Study: TRB Lightweight Structures | Lean leadership to grow...

TRB Lightweight Structures CONFIDENTIAL & PROPRIETARY

Lean leadership to Grow Shareholder valueLeading the lean journey

Richard Holland


My background

Perkins Engines 91 – 99

Started in Personnel and Training

Moved to implement lean with consultant support

Moved to production management

Goodrich Aerospace 99 – 01

Created Internal lean consulting team

Plant moves in EU and US

Whirlpool 01 – 06

Refrigeration Plant management

TBM consulting 06 – 14

Led Consulting Europe

TRB Lightweight structures 14 – now

Managing Director


Did you know...

77% of manufacturers have some sort of continuous

improvement program in place

75% of manufacturers are increasing or maintaining CI

project activity

Nearly 50% of executives say their CI initiatives are

“not or somewhat effective” at helping achieve

operational and market objectives

Sources: RSM McGladrey 2010 MWD Survey and proprietary research by TBM Consulting Group and Training Industry, 2010.


Why are many companies hitting a plateau with lean?

▪ Lean is seen as a cost reduction activity in manufacturing

▪ Focus is on activity and tools

▪ Leadership are not seeing results

TIME

RA

TE

OF

CH

AN

GE

TRADITIONAL LEAN

MATURITY

Year

1

Year

2

Year

3

Year

4


The Focus Has Shifted to “Intelligent Growth”

▪ Can’t cost-cut our way to prosperity

we want growth with “attention” to

cost

▪ Customer intimacy

▪ Culture change is critical – employees

must buy in

▪ Open to looking at business structure

in new ways

Source: Kennedy Consulting & Research Advisory, May

2011.


Cut or Grow?

6


“Unreasonable ambition”

Growth is a great challenge

Vision


Achieving Vision through Strategy Deployment


Three Stages of a Lasting Lean Transformation

9

TIME

RA

TE

OF

CH

AN

GE

Year

1

Year

2

Year

3

Year

5

Year

4

TOOL DRIVEN SYSTEM DRIVEN PRINCIPLE DRIVEN1 TOOL DRIVEN 1 SYSTEM DRIVEN2 PRINCIPLE DRIVEN3


Three Stages of Lasting Lean Transformation

▪ Functional approach with focus on manufacturing only

▪ Studied & embraced lean concepts

▪ Tool application not yet wide-spread

▪ Results not clearly reflected in the financial statements

▪ Culture change not yet grounded

10

TIME

RA

TE

OF

CH

AN

GE

Year 1 Year 2 Year 3 Year 5Year 4

TOOL DRIVEN1

1. Tool Driven

TOOL DRIVEN 1SYSTEM

DRIVEN2

PRINCIPLE

DRIVEN3


Three Stages of Lasting Lean Transformation

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TIME

RA

TE

OF

CH

AN

GE


SYSTEM DRIVEN ▪ Systematic approach involving many other functions

▪ Widespread tool application, awareness & acceptance

▪ Visible improvements in cost reduction and cash generation

▪ Beginning to extend lean across value streams

▪ Culture change spreading

2. System Driven

TOOL DRIVEN 1SYSTEM

DRIVEN2

PRINCIPLE

DRIVEN3


Three Stages of Lasting Lean

Transformation

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TIME

RA

TE

OF

CH

AN

GE


PRINCIPLE DRIVEN ▪ Business-wide

philosophy for intense

focus on customers

▪ VOC focus for value

innovation & significant

competitive advantage

▪ End-to-end value chain

alignment for seem less

customer value delivery

▪ Comprehensive

business management

system for growth

▪ Embedded culture

3. Principle Driven

TOOL DRIVEN 1SYSTEM

DRIVEN2

PRINCIPLE

DRIVEN3


TIME

RA

TE

OF

CH

AN

GE

Year

1

Year

2

Year

3

Year

5

Year

4

TOOL DRIVEN PRINCIPLE DRIVEN2 3

Results of Lasting Lean Transformation

13

Are your lean results directly aligned to top and bottom line growth?

Revenue

Growth

Cash

Net Income

TOOL DRIVEN 1 SYSTEM DRIVEN2 PRINCIPLE DRIVEN3


“The culture of a company is the behavior of its leaders.

Leaders get the behavior they exhibit and tolerate. You

change the culture of a company by changing the

behavior of its leaders. You measure the change in

culture by measuring the change in personal behavior of

its leaders and the performance of the business.”

▪ Larry Bossidy (former CEO of Honeywell)

▪ Author of the book “Execution”

A Great Working Definition


Are Leaders Born or made?

15

“10 out of eleven good to great CEO’s came from inside the

company, three of them by family inheritance. The

comparison companies turned to outsiders with 6 times

more frequency.”

Jim Collins “Good to Great”


● “Brilliant process management is our strategy

● We get brilliant results from average people managing brilliant processes

● We observe that our competitors often get average (or worse) results from brilliant people managing broken processes”

● Which is why Toyota will be No 1 by 2010

presented at Production Systems Conference – Stuttgart in June 2004 – www.leanuk.org

Toyota’s Lean Strategy


Leadership Blueprint for Culture Change

High Speed Culture

Improvement Methodology

▪ Kaizen

▪ Sigma/Project

methodology

▪ Improvement

Organisation

Employee empowerment

and teamwork

Strategy and values

Shared and compelling vision

Strategy Deployment

Business objectives

translated to action plans

Annual Target setting

Investing in people

skills

Creating Favorable

environment

Lean Management System

▪ Daily management

system

▪Visual Management

▪Root cause problem

solving

▪ Standard work

DAILY EXECUTIONVISION/LEADERSHIPIMPROVEMENT

METHODOLOGY


TRB Case study

THE BUILDING BLOCKS OF LIGHTWEIGHT STRUCTURES ARE CONTINUALLY EVOLVING

Experts In Composites


19

The TRB story

What I found when I arrived

56 people who I sat with for 1hr each during my first two weeks, they told me what was wrong!

● Letter from the workforce signed by all - unhappy with pay mechanism● Full time customer representative sitting in the foyer waiting for parts● Many people didn’t know who their boss was● Everyone busy but no idea how we are doing● No Bills of material – running the company on excel● No idea of product margins● Quotes sent to customers late and often to make a loss● Multiple Portacabin offices inhumane!● Financial numbers produced sometimes● People didn’t have accountabilities clear● No project planning● Leadership behaviour very poor


Ticket Barriers

MANUFACTURE:Gate paddles manufactured using lightweight honeycomb core structure


LIGHTWEIGHT DURABLE SOLUTIONS FOR INDUSTRIAL APPLICATION

LTC Taxi Ramp and Steps


COMPLETE FEA ANALYSIS AS WELL AS PHYSICAL PROTOTYPE AND MOCK UP TESTING

In-house design capability and validation


In-house Design capability

RAMP DEPLOYMENT Exit door on underground trains

23


Bike Storage Solution


25

The Numbers?

My 2013 predecessor had recruited new young talent and ran policy of win work at low prices


26

The last 2 yrs of change!


27

How it looked!


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How it looks now


• Shop relay out

complete

• Shop floor

problem solving

teams

• 5S program

installed

• Competency

program with

training centre

World Class Manufacturing Journey


World Class Manufacturing Journey


New Machine Shop

First Machine arrived Nov and is commissioned

5 Axis CNC mill, 5 Axis lathes and laser cutter still to come


Clean Room

● 4000 sq ft clean room● ISO 14644 classified● Aerospace grade and F1 ready● Sales Jan £10k, Feb £60k Mar £100k


Autoclave System

1.5M Ø x 3.0M long, the vessel is designed and manufactured to meet the requirements of PD 5500 with a design pressure capability of 10 Bar @ 250°C.


34

Visual Standard


35

Performance room


36

Looking after people

Training

● 2 shop floor on engineering apprenticeships

● 2 Buyers studying for CIP’s● 1 shop floor studying HNC for

Quality role● 1 Engineer Prince 2 trained● HR director studying Personnel

qualification

Competencies

● New 4 level Competency pay structure introduced. Trainer now hired to carry out training for new and existing staff

● New unemployed from Job centre are trained by local college for 2 weeks prior to our interviews for jobs

Team Leader structure introducedAll team leaders appointed internally


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Operations

Mngr

New

Old

Production

mngr

now lean

and

facilities

Finance

Director

New

Old

finance

director

now HR

director

Quality

Mngr

New

Old

mngr

was

sacked

Engineering

Director

New

Old Director

now

Technical

sales

support

HR

Mngr

New

Old

mngr

sacked

Sales

Director

New

Old director

selling

composites

Getting the team in place

All those sacked were new hires from the previous attempt to bring in talent!!2 people on performance management,

HR, Quality, Salesman


38

Early Kaizen activity

● NPI process with gateway structure○ 1st large project launched on time, under cost in January

● RFQ to quote process○ Quotes now on time and turnaround in 10 days av○ 116 RFQ’s declined in 2015

● Product margin review○ Led to significant price increases (10-50%) to many customers.○ Not one customer has left

● Shop floor kaizen on ramp product○ move the cell but otherwise no affect

● Stores Kaizen○ Relayed out stores and increased capacity 37%

Kaizen activity


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How we are doing now?

34% 40% 41% 36% 31%Overhead %

● 2015 Increased sales £1.6m and improved profit by £400k● 2016 Will increase sales £ £3.1m and improve profit by £700k


Any questions

40

Thank you

Invest NI Lean Conference 2016 | Case Study: TRB Lightweight Structures | Lean leadership to grow...

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Transcript of Invest NI Lean Conference 2016 | Case Study: TRB Lightweight Structures | Lean leadership to grow...