Vin WijeratneFinance Director The Royal Mint

The new standards of global enterprise excellence…

Agenda

Who we are, what we do and where we live Why Shingo and our journey to date Our Essentials and results so far Conclusion

900

1279

1811

1967

2010

We can trace our history back over 1,100 years.

Tower of London

Purpose built premises at Tower Hill

‘Decimal Branch’ announced in South Wales

The Royal Mint Limited vests from HMT

800 people 1 SITE £500M TURNOVER

Circulating Coin5bn coins & blanks

per year

2bn for UK, 3bn overseas

World’s largest exporting Mint

60 overseas customers

Who we are, what we do…

Comm’ Coin£5 to £100,000

Royal events QDJ, national celebrations

London 2012

Annual sets and collectors

Weddings & births

Bullion

Precious metal Britannias & Sovereigns

Lunar year products

Expanding market share

Licensing in India

Medals

London 2012 victory medals

Services, Police etc.

History, tradition and craftsmanship

A BROAD RANGE OF PRODUCTS, CUSTOMER AND FUNCTIONS

PRIDE IN OUR PAST CONFIDENCE IN OUR PRESENT

Where we live…

The Royal Mint’s headquarters covers 38-acres based in Llantrisant, Wales.

Why Shingo?

TODAY embracing the Shingo model provides the us a significant competitive advantage in the markets in

which we compete since we believe the world’s best manufacturers are not from the minting industry.

……. And to be around and successful for the next 1,100 years+…..

TOMORROW we recognise world class operational excellence and customer value delivery will prove

invaluable credentials for entry and success in new markets in which we choose to compete.

CONFIDENCE IN OUR PRESENT AND OPTIMISTIC ABOUT OUR FUTURE

Lessons previously learned…

Everything we do is about people

We must invest up front to win their hearts and minds

Lean programmes must be linked to a clear vision and cohesive strategy

Without support, engagement and commitment from the very top improvement programmes fail

Our journey to date

Manufacturing units run as silos

BEFORE

High rectification costs

Highly variable product quality

Poor inventory management

Little “through-business” visibility

Volume mentality tonnes and pieces

“In the past, we wanted to get better but we didn’t know how: now there’s a clear view of where we need to improve and everyone knows where we want to get to.”

“We used to be driven by measures of volume tonnes and pieces: now we aim for delivery performance and prioritise by schedule adherence and flow rate.”

Delivery performance “- If we had a quality problem, we would put the job to one side and produce something else. Now we intervene straight away to stop the flow rate deteriorating.”

“When machines broke down, we used to move material and people which hid the problem: now we can see clearly where downtime is hurting us.”

“Circulating Coin pipeline inventory has reduced from 9 weeks to 9 days”

Our Essentials

A clear Vision that is well communicated A clear Strategy Deployment model Key Components Ability to identify and close the gaps The Wedge, learning from the past

…It is essential to engage and involve all of our people.

Vision StatementWE WILL BE PROUD TO BE RECOGNISED AS THE WORLD’S BEST MINT

With the UK at our core and leading our markets across the world, we will improve our financial performance every year by being smart in everything we do. We will delight our customers by listening and delivering the best, most trusted products, services and customer experience. Being a great and safe place to work, with a real team spirit, where everybody makes a difference.

By doing this, we will enhance our status as a national treasure and secure a bright future for the Royal Mint, our people, customers and communities.

Our Vision – Shared Simply

This one page summary captures all we do.

It is very visual and simple to understand.

It has been used as a consistent reference point for all site briefings for past 3 years.

It reinforces our message that we are committed to delivering our agreed strategy and that we have clear direction and aligned leadership.

It proved invaluable to reassure our people when our business faced challenging market conditions.

Strategy Deployment – Vision > 5yr plan > 1 yr plan > Hourly

VISION TARGETS GAP

Departments

Executive

Sections

Teams

Team BasedDaily

Improvements

Key Components

CULTURAL ENABLERS High performing and visible CEO Strong SHE Culture Leadership Framework Coaching Engaged and committed people

CONTINUOUS PROCESS IMPROVEMENT Vision Critical Project Governance Leader Standard Work Performance Boards and Visual Management Creation of an army of problem solvers

ENTERPRISE ALIGNMENT One Business System Supplier Development Programme Embedded Manufacturing Production Systems Strategy Deployment everyone understands where they fit

RESULTS Voice of the customer and customer surveys Customer complaints handling Visitor Centre Performance Metrics

Identify and close the gaps

Visual Management system allows leaders to quickly see gaps

Leaders coach and support their teams to close the gaps

Problem solver must still visit workplace to fully understand it

System does not replace face-to-face communication and Emails on problems now reduced

Teams now work in synch to close gaps

The wedge – learning from our past

Our ‘wedge’ includes…

Standards Root Cause Leader Standard Work Employee Engagement

INTRODUCTION OF A WEDGE IS ESSENTIAL TO PROTECT PROGRESS MADE AND PREVENT US SLIPPING BACK…

Standards

Root Cause

Leader Standard Work

Employee EngagementImprovements

Time

Results so far

Percentage of people involved in SHE activities up from 10% to 95% of employees (100% in Operations), Accidents reduced by 71%, Lost time accident rate cut by >60%, Annual landfill waste volumes reduced by 90%, >95% people feel safe in work and are confident to raise safety concerns

Blank first time pass rate up 20%, Cost of poor quality down 60%, Commemorative coin poor quality metric reduced 35%

Employee engagement levels in top 3 of 80 surveyed UK companies, Awarded Investor in People Gold status in 2013 in recognition of tier system

>93% of Commemorative Coin orders now delivered within 3 days of receipt* (was <20% in 7 days) *Not all customers want or expect next day delivery

Work-in-progress tonnage reduced by 75%, £5 million positive impact on cash position and ROACE, still improving

Conclusion

Shingo Prize Recognition is an essential part of the future for the Royal Mint as it will independently validate all the good work we are doing and confirm we are heading in the right direction.

It will allow us to learn from industry leaders and be one of the very best manufacturers in the world. This will ensure that we remain competitive and successful today and relevant and competitive tomorrow.

Thank you