Management Strategies For A Successful Lean Transformation...- 10 technical pillars and 10...
Transcript of Management Strategies For A Successful Lean Transformation...- 10 technical pillars and 10...
CNH Saskatoon Plant
Management Strategies For A Successful Lean Transformation
November 2012
Speaker – John Weist
- Born and raised in Southern SK - Industrial Systems Engineering Degree - 4 years as Manufacturing Engineer - 4 years as WCM Manager - 1 year as ME / WCM Manager
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INTRODUCTION
2010 2011 2012
Annual Savings $5.7 M $5.6 M $5.9 M
% Trans. Cost 10.3% 9.0% 9.2%
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WHY AM I SPEAKING WITH YOU TODAY?
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2008 2009 2010 2011 2012
saskatoon
Plant #11
Plant #6
Plant #4
Plant #9
Plant #3
Plant #2
Plant #8
Plant #1
Plant #7
Plant #5
• Plant Information • Product Line • World Class Manufacturing (WCM) • Management Strategies 1.) Senior Management Involvement 2.) Importance of KPI 3.) Goal Alignment 4.) Involve Everyone 5.) Time and Budget Investment 6.) Rigorously Audit 7.) Reward and Recognize • Plant Results
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AGENDA
Plant Information
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PLANT 632,000 SQUARE FT
58,700 SQUARE M
LAND 156 ACRES
63 HECTARE
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SASKATOON FACILITY
• The previous company, Flexi-Coil Ltd., was established in 1952.
• During the 1990s Flexi-Coil became Canada's largest farm manufacturer.
• Air Seeding and Tillage industry leader in North America and Australia. (air carts, drills and coil packer)
• New Holland purchased 35% of Flexi-Coil in 1997
• 1999 Merger of New Holland and CaseIH
• The remaining shares of Flexi-Coil were acquired in January
of 2000
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FLEXI-COIL COMPANY HISTORY
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FULLY INTEGRATED FACILITY
FAB WELD
PAINT ASSEMBLY
East Powder Paint Line
Planter, Header Assembly Lines
Planter and Header Weld
Stalls Fabrication Equipment
Receiving / Warehouse
West Powder Paint Line
Air Seeder line
Tillage and Air Seeder Weld
Stalls
Tillage Crating and Component
Assembly 9
M66 Assembly
PLANT LAYOUT
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HEADCOUNT
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USA 70.6%
Canada 21.9%
China 2.6%
S America 0.6%
Australia/NZ 2.0%
Africa 0.5%
CIS 1.8%
PLANT SUMMARY – CUSTOMER DISTRIBUTION
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Product Line
Air Carts (4 models, 3 brands)
Hoe/Disk Drills (4 models, 3 brands)
Planters (17 models, 1 brand)
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PRODUCTS
Grain Heads (2 models, 1 brand)
Corn Heads (2 models, 2 brands)
Pickup Heads (2 models, 2 brands)
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PRODUCTS
This configuration requires ~175 hours of labor to setup
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SOME ASSEMBLY REQUIRED!!
2010- 2012 NEW PRODUCT LAUNCHES
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Pickup Header January 2011
16R30/18R20 Corn Header April 2010
580 Bu Air Cart November 2010
1260 Planter February 2010
M66 December 2012
Pull-Type Sprayer Dec 2011
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World Class Manufacturing
- Corporate continuous improvement program focused on 3 objectives; 1.) employee involvement 2.) improving plant standards 3.) reducing wastes and losses - 10 technical pillars and 10 managerial pillars - focuses on the concept of “zero” and the sharing of best practices - 168 Plants involved in 16 different countries - Fundamentally changed how the Plant is managed - WCM is not a project, it is how we do business
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WHAT IS WCM
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Management Strategies
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THE RESOURCE STRUGGLE
Everyone has full time jobs where we work through the day to day
things that allow us to get paid
We as Managers want more time for our employees to
do continuous improvement type
activities
Resources
Reviews completed and
planned action items for the week
Reviews road blocks and takes actions as required
A lack of activity cannot be hidden on the floor (we learned this the hard way)
Senior Management including Plant Manager conduct Gemba project reviews twice per week
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IT STARTS WITH SENIOR MANAGEMENT (TOP DOWN)
- Set KPI’s / Lagging metrics (3-5 most critical metrics) Plant level followed by department specific - Set KAI’s / Leading metrics (30-50 supporting measures) Plant level followed by department specific **** Caution, several companies try to focus on everything, 10-20 KPI’s are too many **** **** KAI’s need to predict KPI success and must be able to be influenced by the group****
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UNDERSTAND AND SET KEY PERFORMANCE INDICATORS
- Set SMART metrics 1.) specific 2.) measurable 3.) attainable 4.) realistic 5.) timely - Set aggressive metrics 1.) 8% transformation cost savings per year 2.) zero breakdowns 3.) 90% reduction in cleaning times
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UNDERSTAND AND SET KEY PERFORMANCE INDICATORS
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VISUALLY DISPLAY YOUR KPI’S / KAI’S (PLANT LEVEL)
• Create a Scorecard • Simple • Highly visible to all employees • Have the right metrics • Must be easy for everyone to know whether they are
winning or losing
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VISUALLY DISPLAY YOUR KPI’S / KAI’S (PLANT LEVEL)
• Each pillar updates their specific KPIs every week
• Displayed in Center of Excellence • Quick visual for Senior Management to see overall
progress and question KPI’s which are not being met
May. 18 May. 25 Jun. 1 Jun. 8 Jun. 15 Jun. 22 Jun. 29 Jul. 60 3 0 0 1 1 1 0
999 417 417 417 417 548 517 548207.5 289 289 289 289 202 151 15180.1% 80.1% 80.1% 80.1% 80.1% 77.2% 77.2% 77.2%
May. 18 May. 25 Jun. 1 Jun. 8 Jun. 15 Jun. 22 Jun. 29 Jul. 6367 367 367 367 367 398 398 398
90.00% 91.60% 91.60% 91.60% 91.60% 91.30% 91.40% 92.80%16 16 16 16 16 16 16 16
12% vs 88% 11% vs 89% 11% vs 89% 11% vs 89% 11% vs 89% 11% vs 89% 11% vs 89% 11% vs 89%
KPI's Target# of breakdowns after step 3 in the model area 0MTBF - 1000MTTR - 200OEE by Step 5 - 85
B/C of each step 1 >1B/C of each step 2 >3B/C of each step 3 >1
KAI's Target# of SMPs in model areas 240% EWOs closed (counter measures implemented) 100%# of MP Info in model areas 24Breakdown Maintenance Hours vs Non Breakdown hrs in Maint. 30% vs. 70%
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VISUALLY DISPLAY YOUR KPI’S / KAI’S (DEPARTMENT SPECIFIC)
• Standardized supervisor communication
boards (hourly staff)
• Process Monitor Boards for department specific metrics (salaried staff)
Kaizen Tracking Board
Activity Boards
Front Entrance Safety
KPI Display Boards
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VISUALLY DISPLAY YOUR KPI’S / KAI’S
Objectives managed through central Performance Management System
(EHRMS System)
Plant
Functional Area
Salaried Employee
Hourly Employee
Plant Manager’s Goals provide the foundation for all other objectives. For 2012 they are: -Cost (Productivity & Spending) -Safety -Quality -Delivery & Inventory -WCM
Area Manager’s Goals are derived from the Plant Manager’s goals. For 2012 they are: -Cost (Productivity & Spending) -Safety -Quality -HR -WCM
Production Supervisor’s Goals are derived from the Area Manager’s Goals and linked with their employee’s Goals: -Spending -Productivity -Safety -Quality -HR -WCM
Hourly Employee’s Goals are derived from the Success Share Targets set across all plants: -Spending -Productivity -Safety -Quality -WCM
Example of Goal Alignment from Plant Manager to the Hourly Employees:
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KPI / GOAL ALIGNMENT
- Our WCM Pillar Leaders are Managers, no questions asked, other Plants are not this way - All salaried staff are mandated to participate on a Pillar, its part of our “letter of offer” now
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INVOLVE EVERYONE
• All pillars meet weekly (Using a kaizen journal)
WCM Weekly Meeting Times Monday Tuesday Wednesday Thursday Friday
7:00 Management Meeting Management Meeting Management Meeting Management Meeting Management Meeting
8:00
GEMBA Walk (8:00 – 9:00) Pillar Leads, Plant Manager, Ops
Manager
PM (7:30-8:30)
Room F
9:00 Focused Improvement Corporate (9:00-10:00) Logistics 9:00-10:00 Floor
10:00
Autonomous Activity
11:00 Room F (10:30-11:30) WO (11:00-12:00) Corporate
WCM Information Session 11:30-12:30 MTC 12:00 WCM new-hire presentation
EPM Room B 12:30-1:30 1:00 EEM Room B 1:00-2:00 FI (1:00-2:00) PM (1:00-2:00)
Room B Room F
2:00 Quality Control Room A (2:30-3:30)
CD East Plant People EEM (2:00-3:00)
Pillar Lead Meeting Corporate (2:00-3:00) Environment Development Room B
3:00 Floor project reviews Room B (10:00-11:00) Room F CD Fabrication Safety Room F 3:00-4:00
(2:00-4:00) CD Pillar
4:00 Floor project reviews Floor project reviews Floor project reviews
5:00
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INVOLVE EVERYONE (MAKE IT A PRIORITY)
Introduction of WCM into daily production meetings (2 Pillars present each day) - Tying WCM into everyday management - Support from production for roadblocks, brainstorming and countermeasures
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INVOLVE EVERYONE (MAKE IT A PRIORITY)
PD – WCM Audit Toledo
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Quality Gate Central Team Conference - Racine EEM / CD – Wichita
AM – Goodfield PD – Fargo / Wichita
PM – North America Pillar Leads
PD – Chrysler Academy
TIME AND BUDGET INVESTMENT (LAST 5 MONTHS)
CDFI
AMWOPMQC
EEM/EPM PD
BENCHMARKING
FIAT - Mirafiori
Pillar Teams
FIAT - Cassino, Sevel
CNH - Fargo
CNH – Grand Island
Iveco - Brescia
CNH - Fargo
FIAT - MirafioriFIAT - Cassino, Sevel
FIAT - MirafioriFIAT - Cassino, Sevel
CNH – San MauroCNH - Zedelgem CNH - Jesi
Vizient
Iveco - Suzzara
Iveco - Brescia
Iveco - Brescia
Iveco - Suzzara
Iveco - Suzzara
CNH – Grand Island
Senior Management Benchmarking SEVEL Cassino Suzzara Brescia Mirafiori Auto Mirafiori FPT AM, PM, Minimum Material Handling, Q-Gates, Bulky Items, Golden Zone, Kitting
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TIME AND BUDGET INVESTMENT (SENIOR MANAGEMENT)
WCM Starts
Mar. 2008
Yamashina Audit
Oct. 2010 37 Points
Yamashina Audit
April 2009 14 Points
• Audit Process Split between shop floor projects and management presentations 10 technical pillars scored 0 – 5 10 managerial pillars scored 0 – 5 Total score is out of 100
2008 2009 2010 2011 2012
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WCM AUDIT PROCESS AND RESULTS
Materazzo Audit
Aug. 2010 35 Points
Mr. Emo Audit
May 2011 41 Points
Mr. Risi Audit
May 2012 48 Points
Bronze Audit
Oct 2012
Mr. Pino Audit
Dec 2011 44 Points
Senior Management rewards 4 employees per week with small
monetary reward for top kaizens
Employees presented their Kaizens and
Suggestions to the Senior Management and
attendees
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REWARD AND RECOGNITION
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Plant Results
Employee Suggestion Program
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RESULTS
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2009 2010 2011 Projected 2012
Actual
Target
YTD Target: 9.0/person YTD Actual: 9.0/person
6,579 Suggestions YTD
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RESULTS (WCM INVOLVEMENT)
0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 2013
Actual Target
ESP Kaizen Pillar Team Project Team
2011 1 1 1 1
ESP Kaizen Pillar Team Project Team
2012 3 3 1 1
ESP Kaizen Pillar Team Project Team
2013 6 4 1 1
KPI - Lost Time Injury Frequency
KPI – First Aid Injury Frequency
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RESULTS (SAFETY)
96% Decrease in
LTI Frequency since 2008
75% Decrease in First Aid Frequency since 2008
0 0.3 0.6 0.9 1.2 1.5 1.8 2.1
2008 2009 2010 2011 2012 YTD
Freq
uenc
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LTIFI
LTI Target
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RESULTS
Plant Shipping – Customer Service Delivery
VARIABLE COST PER HOUR
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46.00
48.00
50.00
52.00
54.00
56.00
58.00
2008 2009 2010 2011 2012
Variable CPH
COMPARISON TO OTHER PLANTS
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2008 2009 2010 2011 2012
saskatoon
Plant #11
Plant #6
Plant #4
Plant #9
Plant #3
Plant #2
Plant #8
Plant #1
Plant #7
Plant #5
BRONZE LEVEL Certification last week
1st Plant in CNH NA 3rd Plant CNH WW
Considerable improvements to Plant KPI’s (Safety, Quality, Productivity, Shipping) Continue to empower employees (ESP, Employee Observation Form, Quick Kaizen, Plant Wide Data Collection) Staying competitive globally requires constant growth and improvement
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WHY WCM IS IMPORTANT TO SASKATOON
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QUESTIONS