versus simpler execution - lean frontiers – be bold. be ... · pdf...

9/20/2011

TransformationSimpler

Transformation Versus

Execution

h e a t e r s | s e n s o r s | c o n t r o l l e r s

Tom LaMantia

Agenda

WatlowWatlow Lean HistoryEpiphany 1 - PeopleEpiphany 2 - ProcessEpiphany 3 - PurposeResults

9/20/2011

Watlow OverviewFounded in 1922 by Louis Desloge Sr.Family-owned, third generation120 family shareholdersFounded to serve the shoe industryDesign and mfg. thermal solutions –industrial heaters, sensors, and controllersOver 2,000 team members

Watlow ProductsHeaters ControllersSensors

9/20/2011

The “Thermal Experts”Quick turn around, custom engineered thermal solutions

“Over 400 thermal engineers and specialists”

Semiconductor Processing EnergyDiesel

Life Sciences

Processing Industries

Diesel Emissions

Packaging

Foodservice Equipment

Aerospace

Global Organization

11 manufacturing facilities in 6 countries22 sales offices in 14 countries3 Technology Centers

A global network of sales engineers, account managers and technical support specialists

9/20/2011

Brief Lean Journey HistoryWe went big bang!

Enterprise VSALine Of Business VSA’s

Implemented Basics7 week cycle (Kaizen)Employment PolicyEvent Pace (N/10)

Results•Pockets Of Improvement•Difficulty Sustaining Gains•Very Basic Tools Based Used•Manufacturing Based•Improvement Top Down Driven•Insufficient Pre event planning

ply tools

Borrowing th

Developing TechniqueDeveloping

New BeliefsForeve

r Improve

Culture Change

, Q, C

Changing

ChangingValues

Understanding &

EmbeddingPrinciples

( )Dedicated Resources (3%)Strategy Deployment (Level 1 & 2)

Value Streams Begin To Form (Factory)Value Stream Mgmt

Lean AccountingS&OPBox Score/Visual Mgmt

Defined Cultural Future State - Watlow WayLean Work Begins in Demand CreationWatlow Business System (version 1)Global Improvement Activity

•Insufficient Pre event planning•Very Mechanical In Our Approach

•Improved Discipline•Improved Results But Inconsistent•Some Sustainment Being Recognized•Admin Processes Included•Tools Added to Tool Belt (eg 3P)•Recognized the Value of Culture•Tools and Kaizen Based Improvement Only

•Began to understand the WBS as a System

ChangingActions

Introduction Year 1-2

IntenseYear 3-5

Development Year 5 - 10

ChangingHabits

ChangingActions

Apply tools

Borrowing th

New BeliefsForev

Culture

Change

, C, D

IntenseYear 3-5

ChangingHabits

ChangingValues

Understanding &

EmbeddingPrinciples

provege

Global Improvement ActivityStrategy Deployment 2 – Level 1,2 and 3“Mission Control”AME Conference TorontoLean NPD BeginsStrategy DevelopmentWatlow Business System (Current)Managing For Daily ImprovementLean Leadership Today

2008 •Began to understand the WBS as a System•Began Linking Processes Together•Improvement Driven From Top Down & From The Bottom Up – People Development•Began to Understand The Role ofStrategy - Purpose

•Tools & Technique Based Improvement•Transformation vs execution•Better understood WBS failure modes

ChangingActions

Apply tools

Borrowing th

New BeliefsForev

Culture

Change

, C, D

IntenseYear 3-5

ChangingHabits

ChangingValues

Understanding &

EmbeddingPrinciples

Epiphany 1

People

9/20/2011

Epiphany 1 - People

Box 1 – Reasons For Actions

9/20/2011

Box 2 – Current State

Box 3 – Future State

9/20/2011

Our Culture

Box 9 Insights - People = Our Culture

Our Culture

9/20/2011

Epiphany 1 - Results

A framework for all that we do!Better description of desired cultureCreated Wide scale awarenessCreated Wide-scale awarenessHelped develop broad ownershipGenerated huge pull by the organization to learn moreA platform for all people related initiatives or processes

ChallengesDid not know “what good looked like” in a lean worldDid not know how to make it real everydayDid not have anything to hang it off of

Epiphany 2

Process

9/20/2011

AME USA Survey•3% are achieving transformation•17% underachieving•80% little improvement•Only achieve low road results•Why? High Road to the new world of Mfg

Beyond Lean “Great”

Delivering The Value - The Awakening

The 1st Step Starts With The Transformation Of The Individual It f d t di th t f f d k l d

No leadership within the enterpriseTo take the high road

•New challenges require DifferentAnswers – a change of thinkingIs required

•Create a race to the “high road”

Beyond Lean

Low Road to “Old World” Mfg

Full Lean Focus on leadership, HumanDevelopment & Innovation

Good Start – Short term gains – ContinuingLong term returns – profound change occurs

• It comes from understanding the system of profound knowledge• The individual, transformed, will receive new meaning to life, toevents, to numbers, to interaction between people

Edward Deming

Beyond Lean gFake Lean Focus On Tools

Good Start – Short term gains – diminishingLong term returns – often fades away – or justholds the line

Copyright – Gary Stewart

In very Simple Terms, Its About Developing The Individual FirstWe need everyones hands, hearts and minds!

Epiphany 2 Epiphany 2 –– Process: Making the WBS ActionableProcess: Making the WBS Actionable

Innovation/planning Top Management

Middle Management

Traditional Perception of Job Functions

Continuous Improvement TransformationPlanAct

Innovation/ Planning

Strategy

Running the Business

(Firefighting!)

Supervisors

Workers

Top Management

Lean Enterprise Perception of Job Functions

GOAL STEADILY INCREASE

0% 100%% of Time Spent

Daily Kaizen Break-Through SD

DoCheck

Daily Kaizen Break-Through SD

DoCheck

Daily Management(Run the Business Processes)

Middle Management

Supervisors

Workers

GOAL= STEADILY INCREASE THE PORTION OF THE ORGANIZATION THAT WORKS FULL TIME ON IMPROVEMENT WHILE DOING IT THE RIGHT WAY (WBS)

9/20/2011

“The MDI Model”

t in gS ys

Continual Improvement

the quality management

system

Understanding

Believing

Team Member

t in gS ys

system

Understanding

Believing

Team Member

t in gS ys

system

Understanding

Believing

Team Member

Daily Improvement Model

Team Structure & Organization

Team Responsibilities & Training

Visual Management to Target

Highlight Waste & Variation

Team Based Problem Solving

Cell Team , Value Stream Team & Value Stream Leadership

Other Functional Support

Enterprise LOB & Functional Leadership,

Strategy & Purpose For Change Not Widely UnderstoodStandard Inconsistently Followed: Lacked Clear Standard On “What Good Looks Like”Organization Structure Does Not Enable Transformation and Daily ImprovementDeep Learning & Understanding Not Being Achieved By Cells or Support Teams“Abnormalities Are Not Visible; Visual S t W N t Ad t

h e a t e r s | s e n s o r s | c o n t r o l l e r sSource: IMAI & Koenigsaecker

Customer

Link to Strategy

Create Model Flow Cell

Customer

Link to Strategy

Customer

Link to Strategy

lowSystems Were Not Adequate

Problems Were Not Being Solved Effectively; Corrective Actions Were Not Permanent

Sustainable Daily Improvement Requires Engaging the Hands, Minds & Hearts of our Team Members

Solution Approach

Implement Daily Improvement Fundamentals To Enable Sustainable Continuous Improvement

A Series of 3 Events Focused On Defining Flow Cell Standards, Roles & Responsibilities, and A

tingSys

system

Understanding

Believing

Team Member

tingSys

system

Understanding

Believing

Team Member

orVisual Management to Target

tingSys

system

Understanding

Believing

Team Member

3 Company-Wide Events Scheduled for Early 2009

1. Create and Deploy Cell Structure, Processes and Attributes

Physical characteristicsVisual management and controlAssessment process

2. Develop and Align Roles and ResponsibilitiesRoles and Responsibilities (Std. Work for Roles)Knowledge, skills and behaviors

What does the ideal cell look like and why?

How does it apply to my role? What do I do differently?

People Development Methodology In a Model Cell

Customer

Link to Strategy

Customer

Link to Strategy

Customer

Link to Strategy

3. Development Tools and ProcessesSkill assessmentTraining/Development ProgramsSkills Matrixes Training delivery processes

How do we develop team members to get there?

3 Events With Enterprise-Wide Participation Defined The MDI System

9/20/2011

MDI Event 1 Deliverables – Ideal Cell

Strider Std Work

Red Tag Team: ________________________

Tag # Area Item D escript io n R eason fo r Tagg ing $

Red Tag Log Sheet

Disposition

AreaDate

Auditor sAr ea Represent ative

Score Comments

0 Perf ormed every auditSOR T

Tea m mem bers ar e regular ly allowed time to make 6 S impr ovements

Section Score ( out of 5)

A ll chem ica ls a re store d in labeled containe rs

Tea m mem bers can d emonstra te knowledge of sa fety shelter locations, evacuation r outes, an d safety contacts

Work too ls & equipm ent are being used pr operly with appr opriate guar ding

6S Production Assessment

SAFETY & 6S COMMI TMEN TPersonal pr otective equipmen t is being used pr operly (accor ding to posted requirem ents)

Andon Process

STANDARD WORK CENTERK EY QUE STIO NS:► A re we following s tandard work?► A re we bui lding to the design?► A re we pass ing along good parts?► A re we demonstrating the Watlow W ay Behaviors , Values , and P rinc iples?► D o w e know w hen we need help? H ave we asked for help? Are w e getting the help we need?

FOLLO W-UP ACTIO NS: Today's Date:

STANDARD OPERATING PROC ESS -- - Operator ROLES & R ESPON SIB ILITIES:

D AILY:► Pa rti ci p ate i n Ce l l sta rt-of-sh i ft me eting► Do s tart-o f-s hi ft c he ck li st► Fol l ow a ll Safe ty Sta nd a rd s► Un de rsta nd an d fol l ow Stan d ard Wo rk► Bu il d p rod uc t to de sign us in g wo rk i n struc tio ns /sta nd ard s► Fol l ow q ua li ty ch e ck s for ev ery o p era tio n (u se C TQ b oa rds )► Up da te Prod u ctio n Co n tro l s he e t (h ou r b y h ou r)► Ma inta in 6S sta nd ard s thro u gh ou t th e s hi ft► Ide n ti fy a bn orm al i ti e s as th e y oc cu r► Ide n ti fy a nd do cu me nt impro ve me n t o p po rtun ti e s wi th in cu rren t sys tem s - us e p ro blem so lv in g c en ter, sta nd ard work c en ters , e tc.► Fol l ow the an d on p ro ce ss a s d efi ne d► Us e pro b le m so l ving to o ls to u n de rsta nd & re so lv e p rob le ms► Fle x/Ro tate p er s ta n da rd wo rk an d e rg on om ic req ui rem en ts► Proa cti ve l y id e nti fy was te (Ju st Do It Im pro ve me nt) an d u se Prob le m So lv in g C en te r to imp ro ve pro ce ss es

PER IO DIC (w eekly, monthly, as needed):► Schedule time off per guidel ines► Know your respons ibi l ities in achieving value stream goals► Participate in Kaizen► Participate/ schedule training sess ions to acquire new sk il ls (per c ross tr aining plan)► Identi fy 6S Improvements / week ly► Share learnings across the team

KNO WLEDG E LIB RARY:►Rec ipe Cards -C el l Physical Attributes -C el l Improvement Center -Standard Work C enter -Point of Use -Problem Solv ing Center►Dimens ion Library: -Job Family D imension Wheel►Watlow Way Tr aining Plan►Watlow Way Tr aining Modules►Work Ins truc tion/Produc tion Standards►MSDS Library

Eliminate one abnormal ity each day

Standard Work Center1 MDI Std Operating Procedure for Operator,

Lead Op, PTL, & Support - Size: 8.5 x 11 or A4- Location: in Cell- preshift, during shift, end shift actions- daily, weekly, monthly actions2 Production Control Sheet- Size: 8.5 x 11 or A4- Location: in Cell- visible to all operators- must show plan quantity vs. actual- must show pitch- reasons for not meeting plan3 Standard Work Layout- Size: 8.5 x 11 or A4- Location: in Cell- done by hand on Watlow format4 Standard Work Bar Chart- Size: 8.5 x 11 or A4

Cell Physical Attributes1 Cell Improvement Center, Standard Work, & Problem

Solving Boards- Kiosk (Watlow Standard) or Flat board (White)- Accessible and visible- Content to be determined by individual recipe card- Mobile (optional)2 Cell U-shaped- Must follow Watlow Standard color code system- People on the inside; counter clockwise; 1-piece flow- Operators to not cross paths- Must meet 6S audit criteria requirements- Cell must be right-sized to product dimensions- Physical locations marked per Watlow color code system3 Right Sized Equipment- Must be mobile with quick disconnects- Poka Yoke / Mistake-proofed- Optimal store front for the largest part- Maintenance access from rear/outside cell optimal- Must be safe guarded and tamper proof- No reaching above shoulders or below waist- Tools meet ergonomic requirements- Preference for Load-Load capability4 Raw Material Delivery- Material fed from outside of U cell- Material pulled from upstream process- Point of use of materials with optimal orientation

PSC Standard

ACTIO N PLAN ACTION PLAN

Direct Cause. Direct Cause.

RESP. RESP.

5 WHY ANALYSIS

DIRECT CAUSE INVESTIGATION FISHBONE

Blank PPS A3 Active PPS A3 Closed PPS A3

PSC Standard Work Illustration

Model Cell A3

PROBLEM SOLVING CENTER

Action Item List

Problem Solving Center1 Improvement A3- Size: 11 x 17 or A3- Standard 9 Block (See Example)

2 Action Item List- Size: 8.5 x 11 or A4- Box 7 from Improvement A3 (Model Cell Rail)

3 Direct Cause Investigation Fishbone- Size: 34 x 30 Outside Dimension- Outline on erasible board- Writing is easily visible for standing team meeting4 Work Area- Size: 12 x 30 Outside Dimension- Date, Team Members Names

-Location for drawing ideas, cause chains and suggestions

5 5 Wh Fl h t

Standardized Cell Structure & Processes

Revision Date: 6-15-09 Content Owner: Tom Lyons

Work0 M ust score 5 o f 5 befor e moving on to next " S"

0 M ust score 5 o f 5 befor e moving on to next " S"Sco re

Descr ipt ionOne or mor e vio lat io ns within a rea boun daries, re quires suppor ting comm entsNo violations wit hin area b oundaries

Items a re put a way imm ediately after use

Section Score ( out of 5)

A isle ways, bound aries, workstations, a nd equipm ent locations are clearly indicated

Specifie d locations for ite ms mater ials, WIP are approp riate for amount of use

Mater ial and WIP st orage location s clea rly lab eled and used proper ly

Section Score ( out of 5)SET IN OR DER

Necessary items saf ely stor ed and organized in ob viou s loca tio ns (tools, docum entation, per sonal items, et c. )

No unnecessar y document ation is present to prefo rm contr oled pro ce sse s in the area

Personal item sto rage ar ea(s) are app ropriate ly sized and used prop erly

A ll unn ecessary and excess item s are r ed-tagg ed (or equivalent) fo r relocation and red -tag pr ocess is being followed

All m achines/equipmen t is wor king, prop erly shut-down, o r a RMT/M aintenance ta g affixed to item

All m aterials, tools, and equipment in the area are r equired to perfor m planned processes

Standard Work Center Philosophy/Key Points:Centralized, standardized tools for managing daily operations within the cell either on a flat board or Kiosk (Simpler standard).Visual to allow for ease of use for all cell members.Hand written to allow for real time cell member interaction and drive self directed daily improvement as a culture. (elements 2,3,4,5,9,10)Tool to help drive management to SQDC.Without a standard there can be no improvementDrives actions to eliminate waste

- Location: in Cell- done by hand on Watlow format5 Andon Process- Location: in cell - defines hierarchy for response- visible and audible(telephone, radio etc…)6 Red Tag Process- every item is tagged- location within cell boundaries- criteria 37 Water Strider MDI Std Operating Process- Size: 8.5 x 11 or A4- Location: in Cell- done by hand on Watlow format8 6S Daily Checklist- detailed list- responsibilities- sign off9 Daily Improvement Suggestions- opportunities documented- comes from the team- improvement owned by the team

10 Interruptions Sheet (optional)- Size: 8.5 x 11 or A4- time process was down is recorded- cause identified

Responsible for Execution: Lead OperatorUsers: Cell Team Members

Revision Date: 6-16-09 Content Owner: John Huber

Physical Cell Philosophy/Key Points:Using best practices to eliminate wasteAllows for flexibility – demand, laborWithout standards there can be no improvementQuality begins with standardizationCells are the foundation of the improvementProperly designed and managed cell is the lifeblood of any organization and is the source of the greatest revenues

Responsible for Execution: Lead OperatorUsers: Cell Team Members

- Supplied by water strider- Replenishment with lean tools (i.e.KanBan,2-bin,water marks)5 No Chairs- Exception - operators assigned to light duty 6 Right Sized Table- Ergonomically designed and adjustable - White- No closed cabinets or drawers- No shelves except for point of use needs7 Trash Locations- One per standard work operator as needed 8 Non-Conforming Material Location- maximum one per standard work operator9 Personal Property Storage- Must be stored outside of the cell area- Exception = marked drink area as allowed by process

10 Finished Goods - Right-sized for quantity and load- Set up for packaging as needed.- identified within the cell

11 Cell Production Records- Within cell boundaries per record retention procedure- electronic (optional)

12 Supplies Location (6s,PPE, TPM)- Within cell boundaries- Stored per OSHA requirements

13 Cell Identification- visible identification posted within cell boundaries

14 Planning and Scheduling Board- shows sequence of work to be completed visually

9 11 12

ANDON Recipe Card 1 Pre-requisites- Problem solving center is in place- Team members know they are responsible for quality &

will call attention to abnormalities- Support team members are ready to respond (SOP)

1.5 Next Steps (should be within 90 days)- Each team member is disciplined and understands the

importance of following Standard Work- Team understands SQDC priority order - Standard Work is in place (baseline)- Quality Key Points are in place- Equipment TPM's are in place- Kanban replenishment systems are in place- Andon Cord, Trigger, or Button is readily accessible to

each team member- triggers visual levels and audible tones3 Visual signal- is visible from aisleway / entrance to the cell

Andon Key Points / Philosophy:Andon is an information tool that provides instant,

Cell Improvement Center1 Key Performance Indicators Sheet (KPI)- Size: ANSI D (approximately 24 x 36) or equivalent- S,Q,D,C metrics in vertical columns - Action Item list- Day to Day metric plot- 6S Audit with Score- calendar with visual indicators (green/red)- pareto charts for each metric - metrics link with VS linkage chart2 Watlow General Communications- 3 sections; size: 8.5 x 11 or A4- Watlow Way- Safety Communication- Various communications (OT, Watlow news etc..)3 Cross Training / Skills Matrix- list of cell members- skills list needed for functional area within the VS- updated real time by team member and trainer- proficiency levels of training

Blank = has not been trained

CALENDARKEY PERFORMANCE INDICATORS

Model Cell A3

CELL IMPROVEMENT CENTER

First Aid Info

VALUE ST REAM NAME

Fi rst Name L ast Nam eTo tal Sk il ls

Tra in ed Tra

d Stra

Betty Bo op 46 9 4Sue Sno wba ll 44 1 08 T T T T T T T T T T T

Mic ha el J ord an 32 7 4

Jo e Sc hmo 27 7 5

Sa m Hag ar 29 7 6 T T T T T T T T T T T T T

Oz zy O sbo rne 35 6 5

T ig er W o od s 18 4 9

Ad am La mbe rt 27 7 5 T

Ni cho la s Cl au s 18 4 2

T otal S ki ll s Trai ne d 27 6

T otal Ski l ls i n De pt 60

# Ope rators 9To ta l Dept Sk il ls 54 0

% Tra ine d 51 .1 1%

Cell Name

POINT OF USE 1 Standard Work Combination Sheet- Standard format defined- Size: 8 1/2 x 11 (A4)- Handwritten

2 Critical to Safety (CTS)- Identifies specific hazards- Follow OSHA Requirement - consult with safety specialist- Safety cross indicated on standard work layout3 Quality Key Points- Located arms length and eye level in front of the operator- Reference Quality Key Points Example4 Work Instructions-Key Point and/or Detailed- Detailed WI Accessible via Electronic or Hard Copy - Step by step instructions- Key Point Hard copy posted in cell

Controlled Document- Located arms length and eye level in front of the operator- Reference Key Points & Detailed Examples

5 Daily Equipment Check Sheet (See Tool on MDI Menu)

Revision Date: 11-10-09 Content Owner: Lynn Loynes

Recipe Card Philosophy/Key Points:This area is the center of team-based problem solvingNO REPEAT CONCERNS – solve at the root causeTeam should “GO & SEE” problem to ensure clear understanding“Focus on the vital few” - Quality rather than Quantity of problem solving activityINVOLVES people closest to the problemUses structured problem solving techniqueAll forms follow established Watlow Standard

5 5 Why Flowchart- Two 5 Why Flocharts, Vertically oriented

-Includes Blocks for Cause, Five Whys, Root Cause, Solution, Action Items

6 Problem Solving Center Standard Work- Size: 11 x 17 or A3 and 8.5x11 or A4 - Sequence of events for Problem Solving Process7 Blank Practical Problem Solving A3

Size: 11 x 17 or A3- Blank copy of Practical Problem Solving A38 Active Practical Problem Solving A3- Size: 11 x 17 or A3

-Hard copy of Practical Problem Solving A3 from erasible board

- Active copy storage until actions completed9 Closed Practical Problem Solving A3- Size: 11 x 17 or A3

-Hard copy of Practical Problem Solving A3 from erasible board

Responsible for Execution: Area LeadershipUsers: Everyone

Revision Date: 10-29-09 Content Owner: Tom Lyons

y- Yellow = abnormality detected- Red = cell will not make goal4 Audible signal- audible signal is distinctive for each cell- easily heard by support team members5 Escalation process- Support for red and yellow lights based on Takt- EXAMPLE: Takt time = 2 min

> LO responds in 2 min (1x takt) > PTL responds in 4 miin (2x takt) > Support responds in 10 min (5x takt)

- Faster response for red than yellow signal6 Cell Andon Process defines;- When to trigger the andon- How to repond to & resolve the abnormality- Recognition for effective use & response

p ,visible, & audible warning to the operations team that there is an abnormality in the work areaAndon allows timely corrective action by alerting personnel when abnormalities occur (“stop & fix it now” thinking)Andon allows TL to spend less time monitoring process and more time solving problems at root cause and supports zero-defect conceptsAn Andon system creates a safe environment of healthy tension for the operations team

Responsible for Execution: PTLUsers: Operators

Revision Date: 3-16-10 Content Owner: Tony Page

Responsible for Execution: PTLUsers: Lead Operator & Cell Team Members

Cell Improvement Center Philosophy/Key Points:Centralized, standardized tools for visually managing daily operations within 6 feet of the cell. No improvement can happen without a standard.Visual to enable cell members to easily use it and understand daily cell status for SQDC. Enables cell members to identify the vital few.Hand written to allow real time cell member interaction and drive self directed daily improvement as a culture. (elements 1,4,6)Tool to help drive improvement to SQDC thru daily team communication.Requires honesty and candour – this is not a grading system, it is a way to make abnormalities visible allowing us to correct them.

Yellow = can perform taks with supervisionGreen = can perform task with no supervisionGreen T = can train others

4 6S Audit - use Watlow standard 6S audit- 7th element allowed for special reqmts (e.g. ESD)- minimum monthly audits5 Watlow Way Cell Assessment- Size: 8.5x11 or A4- updated quarterly at minimum- uses standard Watlow audit and spider chart6 Daily Production Control record- Size: 8.5x11 or A4- Defines pitch interval or cell output- Identifies "gold nuggets" for daily improvement7 Monthly Calendar - Cell scheduled activities- Vacations- type and size not mandated

Point of Use Philosophy/Key Points:All information critical to effective daily operation of cellAvailable within sight of operator and within reachDocuments are color coded whenever possible for ease of useTools available for operator to quickly identify abnormalitiesUtilize Watlow Standard for documents

Responsible for Execution: Lead OperatorUsers: Lead Operator and Cell Team Members

y q p ( )- Visual/pictorial

-Defines Equipment start up/shut down steps if start up is longer than 3 steps

- Required when start up is longer than 3-4 steps- Defines Total Productive Maintenance (TPM) steps- Located near machine

-Defines Standard Operating Conditions (SOC) specific to equipment or cell

- SOC defines Machine settings or ranges

6 Product/Process Deviations (Optional)- Detailed Description- Approval signoff- Size: 8 1/2 x 11 (A4)

7 Stop Work (Optional)- Detailed Description & actions taken to release- Approval signoff- Size: 8 1/2 x 11 (A4)

Revision Date: 1-15-10 Content Owner: Kim Kleinow

Define the Standard…Provide a Picture of What “Good” Looks Like

MDI Event 1 ExamplesStandardized Cell Structure & Processes

Cell Physical Attributes Recipe Card1 Cell Improvement Center, Standard Work, & Problem

Solving Boards

- Kiosk (Watlow Standard) or Flat board (White)

- Accessible and visible

- Content to be determined by individual recipe card

- Mobile (optional)

2 Cell U-shaped

- Must follow Watlow Standard color code system

- People on the inside; counter clockwise; 1-piece flow

- Operators to not cross paths

- Must meet 6S audit criteria requirements

- Cell must be right-sized to product dimensions

- Physical locations marked per Watlow color code system

3 Right Sized Equipment

- Must be mobile with quick disconnects

Physical Cell Philosophy/Key Points:

Using best practices to eliminate waste

- Poka Yoke / Mistake-proofed

- Optimal store front for the largest part

- Maintenance access from rear/outside cell optimal

- Must be safe guarded and tamper proof

- No reaching above shoulders or below waist

- Tools meet ergonomic requirements

- Preference for Load-Load capability

4 Raw Material Delivery

- Material fed from outside of U cell

- Material pulled from upstream process

- Point of use of materials with optimal orientation

- Supplied by water strider

- Replenishment with lean tools (i.e.KanBan,2-bin,water marks)

5 No Chairs

- Exception - operators assigned to light duty

6 Right Sized Table

- Ergonomically designed and adjustable

- White

- No closed cabinets or drawers

- No shelves except for point of use needs

Allows for flexibility – demand, labor

Without standards there can be no improvement

Quality begins with standardization

Cells are the foundation of the improvement

Properly designed and managed cell is the lifeblood of

any organization and is the source of the greatest

revenues

Responsible for Execution: Lead OperatorUsers : Cell Team Members

- No shelves except for point of use needs

7 Trash Locations

- One per standard work operator as needed

8 Non-Conforming Material Location

- maximum one per standard work operator

9 Personal Property Storage

- Must be stored outside of the cell area

- Exception = marked drink area as allowed by process

10 Finished Goods

- Right-sized for quantity and load

- Set up for packaging as needed.

- identified within the cell

11 Cell Production Records

- Within cell boundaries per record retention procedure

- electronic (optional)

12 Supplies Location (6s,PPE, TPM)

- Within cell boundaries

- Stored per OSHA requirements

13 Cell Identification

- visible identification posted within cell boundaries

9/20/2011

MDI Event 2 Deliverables – How does it apply to my role?

IDEAL ORGANIZATIONAL STRUCTURE 1 Operator- Adding value thru mfg or support for 90% of time- Team based problem solving consume 10% of time

- Eliminate one abnormality each day2 Lead Operator

Working Leader responsible for daily coaching 3 to 6 team members

- Adding value thru mfg for 80% of time- Team based problem solving consumes 20% of time

- Focus on consistent, repeatable, least-waste way-

p gembrace it.

3 Production Team Leader- Responsible for a group of no more than 3 - 6 cells- Teaching and mentoring teams 80% of time- Administrative tasks consume no more than 20% of - Be teachers of proper behavior - explain desired

Wa ter S trid er

COI Faci li tator

Mai nt . M ech ani c

En gi neer

Pr oduc t Eng

Bu yerPlan n er

Quali ty E ng.

Designer

Produc t Spec .

Finance Analyst

HR S i li

Ideal State Value Stream OrganizationMay 2009

VSL S pan = 6 to 8 reports

O per ato r

L ead Op erat or

O per ato rOp erat or

Lead O pera to r

O per at or

Op erat orO per at or

Ope rat orO per at or

L ead O perat or

O per at or Op erat or

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Op erat or

Lead O pera to r

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Lead O perat or

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Lea d O p erat or

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Lead O pera tor

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L ead O perat or

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W at er St rid er

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M ain t. M echa ni c

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Lea d O p erat or

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Lead O pera to r

Op erat or O per ato r

Lea d O p erato r

O per ator O per at or

Op erat or

Lead O pera tor

O per ato r

O per ator

Lea d O p erat or

O per at or

Oper at or

Lead O perat or

O per ator

L ead O perat or

Op erat or

Lead O perat or

O per ator

O per at orO per at or

Lead O pera tor

O per ato r

O per at orO per at or

L ead O perat or

Ope rat or

O per atorO per ator

MF G Leade r

Product Eng

BuyerP lanner

Quality Eng.

Designer

Product Spec.

Custome r Se rvic e

COI Te ch

P roduct Spec.

De signer

Ma in t. Mech an ic

W ater S tri der

Wat er St rid er

Bu yerPl ann er

En gin eer

Value Stream #1 Value Stream #2

Value Stream #3

Low mfg support needs = Mfg Leader not

appropriate

appropriate High cell / PTL content so Mfg Leader is

needed

PT L Span = 3 to 6 Ops

ML Span = 3 to 6 Leads

Quali ty E ng

F inance Analyst

HR Spec ia li

KEY QUESTIONS:►What is the ideal state for this cell? What is the path to get there?►How do you know how this cell is performing?►What are the key issues that are impacting this cell? How do you know? Can you show me what the plan is to resolve?►Do you have everything you need in this cell? How do you know?►What steps do you take when something goes wrong?►What steps do you follow to make an

STANDARD OPERATING PROCESS --- Senior LeadershipROLES & RESPONSIBILITIES:DAILY:►Go and See one place in Gemba and see if Root Cause Problem Solving in the Problem Solving Center is occurring.

PERIODIC (weekly, monthly, as needed):►Participate in Lean Events ►Champion the Lean Transformation by understanding the Ideal State and coach team members on why the Ideal State exists►Discuss alignment of Model Cell activity with Enterprise objectives ►Review Watlow Way self-assessments and provide feedback for alignment to Enterprise goals►Observe activity in a cell relative to Visual Management of Standard Work, Andon, and Prod ction Control Sheets Act all alk

KNOWLEDGE LIBRARY:►Recipe Cards -Cell Physical Attributes -Cell Improvement Center -Standard Work Center -Point of Use -Problem Solving Center►Dimension Library: -Job Family Dimension Wheel►Watlow Way Training Plan►Watlow Way Training Modules►VS metric board►Opportunity Funnel

KEY QUESTIONS:► Have a Fishbone or 5-Why been started?►Are multiple cell members involved in the improvement activity?►Are all cell members aware of the improvement activity?►Why have we chosen this issue? (show me the data)►Is additional support needed?►Does each member of the cell team understand what is happening?►Are we following the recipe card as defined in the Problem Solving

STANDARD OPERATING PROCESS --- Support Team Member ROLES & RESPONSIBILITIES:DAILY:► Respond to Andon within 5 minutes of notification.►Participate in a GEMBA walk and review opportunities across all cells. ►Across the support team, review each Cell Improvement Center and pick one SQDC improvement to resolve. Prioritize based upon SQDC as well as pareto. (Data Based)►Ensure that all items that you are responsible for have been provided to the cell.►Utilize the Problem Solving Center to

PERIODIC (weekly, monthly, as needed):► Initiate with one cell a waste elimination activity weekly.►Improve knowledge of Lean by leading 1 Kaizen or participating in 1 Kaizen (minimum) yearly.►Participate in Strategy Deployment, Value Stream VSA's, and Watlow Way Self Assessments.►Conduct an audit to review Standard Work Compliance, 6S, and Visual M t 1 ll thl

KNOWLEDGE LIBRARY:►Recipe Cards -Cell Physical Attributes -Cell Improvement Center -Standard Work Center -Point of Use -Problem Solving Center►Dimension Library: -Job Family Dimension Wheel►Watlow Way Training Plan►Watlow Way Training Modules►VS metric board►Capacity planning tool►MSDS Library

Roles, Org. Structure & Responsibilities

Revision Date: 6//6/09 Content Owner: Sheryl Hicks

Organizational Philosophy & Key Points:Watlow is positioned as a teaching organizationPrimary role of Leaders has shifted to teaching others toward true north and encouraging and recognizing the the right behaviorsLeaders spend 50% of time developing individuals and 50% of timemanaging the businessLeaders seek to understand rather than directing workAll levels of organization execute daily to Std operating processesOne solution does not fit all locations or vs’s

Responsible for Execution: All Leaders Users: Team Members

results4 Support Resource- Respond to Andon in 5 minutes or less- Seek understanding & work to improve processes in

the Gemba for 50% of time- Reinforce functional excellence by helping others

identify and solve problems5 Manufacturing Leader- Span of direct reports is 4 to 8 people- Teaching and mentoring teams 80% of time- Remove ambiguity by teaching mfg to structure and

standardize activities6 Value Stream Leader- Span of direct reports is 6 to 10 people- Teaching and mentoring teams 50% of time

Establish and communicate the vision - explain how each team member can contribute

- Achieve breakthrough performance by expecting and rewarding the best from teams

7 Functional Leaders- Seek understanding & work to improve processes in

the Gemba for 30% of time- Company wide resource for Yokoten- Reinforce functional excellence by helping design and

standardize best practice8 Executive Level Leaders- Primary sponsors of the organizational change- Engaged in catching people doing the right things- Recognizes and encourages the right behaviors

Site Leader (LOB)

Executive Team

Eng. M anager

Controller

Quality Mgr

Busine ss Develop

COI M anager

Product M anager

HR M anager

inside value stre am org

outs ide value s tr eam or g

Specia list

Span = 8 to 10 r epor ts

KEY QUESTIONS:► Are we working on the correct things?► Are we doing it the correct way?► Are we winning or losing? ► Are we improving? ► How do you look for waste in your job?► What is the KPI telling us today?► What do we need to do to improve our cell assessment?► What is takt?► Show me your Standard Work Combination sheet and tell me what it means to you?

STANDARD OPERATING PROCESS --- Lead Operator ROLES & RESPONSIBILITIES:DAILY:► Gather prior day's data► Load/Release work to cell► Initiate/Update Prod Control Sheet► Facilitate and coach at cell start-of-shift team meeting► Lead Gemba walk around Cell Improvement, Std Work & PSCs► Follow Andon process ► Provide on the job training► Coach team to follow standard work► Verify daily 6S is followed► Recognize 1 team member for cell or personal improvements► Create value by building product► Conduct communication handoff with next or prior shift► Update KPI at the end of the shift► Follow up on actions on Cell I S d W k & PSC

PERIODIC (weekly, monthly, as needed):► Update training matrix / as needed► Facilitate Just Do It improvements / weekly► Evaluate employee performance to MDI standard operating process and give feedback / monthly► Backup PTL / as needed► Participate in Kaizens / as needed► Create and follow up on maintenance work orders / as needed► Resolution of customer concerns / as needed► Develop Lead Operator backup / ongoing► Verify 6S Improvements / weekly► Verify team is following cross-training plan► Share learnings across the team► Updated Workforce - time and attendance / weekly► Audit one area per Point of Use Recipe Card, capture actions on KPI► Inventory Accuracy►Goal Setting and Performance Reviews of

KNOWLEDGE LIBRARY:►Recipe Cards -Cell Physical Attributes -Cell Improvement Center -Standard Work Center -Point of Use -Problem Solving Center►Dimension Library: -Adaptability -Continuous Learning - Initiating Action - Work Standards - Building Trust - Coaching - Builidng a Successful Team - Managing Work - Decision Making►Knowledge Assessment►Lead Operator Training Plan &

KEY QUESTIONS:► What is the teams takt time for today? How do you know?► What is the process when you have an abnormality (safety, quality, delivery …)?► What is being done to eliminate the abnormality from reoccurring?► Are we working on the correct things?► Are we doing it the correct way?► Are we winning or losing? ► Are we improving?

STANDARD OPERATING PROCESS --- Production Team Leader ROLES & RESPONSIBILITIES:DAILY: Review prior day data for Gemba

Walk► Make staffing adjustments to meet customer takt► Go, see and listen at cell start-of-shift meetings (rotate as necessary)► Coach Lead Operator on feedback from daily cell meetings► Facilitate Gemba walk around Cell Improvement, Standard Work and Problem Solving Centers ► Follow up on actions on Cell Improvement, Standard Work and Problem Solving Centers (drive SQDC improvement)► Teach one problem solving activity - drive to root cause (opportunity from KPI or Hr.xHr. Board)

PERIODIC (weekly, monthly, as needed):► Updated Workforce - time and attendance► Provide updates for VS weekly metric meeting► Update checkbook► Support operations capacity planning thru SOFP► Share insights/learnings across teams / as needed► Perform cell assessments / monthly► Audit for team 6S improvement activities / weekly► Develop Lead Operator backfill► Lead Kaizens► Execute Performance Management Process► Develop cross training plan.► Evaluate Lead Operator performance to MDI Standard Operating Process and give feedback. / monthly ► Approve Standard Work updates and close loop with team members.

KNOWLEDGE LIBRARY:►Recipe Cards -Cell Physical Attributes -Cell Improvement Center -Standard Work Center -Point of Use -Problem Solving Center►Dimension Library: -Job Family Dimension Wheel►Watlow Way Training Plan►Watlow Way Training Modules►VS metric board►Capacity planning tool►MSDS Library►Andon Process

KEY QUESTIONS:►What is the Standard Work Center board telling us?►What key barriers are identified on the KPI sheet? What actions are in place to attack the barriers?►Are there other barriers to the cell that aren't defined on the Cell boards? Why?►Does everyone understand what just happened here? Does everyone agree? What other issues does this cause?►What can we do now to make this better tomorrow?►Are we demonstrating Watlow Way Values, Principles and Behaviors?►What did the team learn?►How are the MDI SOP worksheets helping you? What are the barriers to following the sheet?

STANDARD OPERATING PROCESS --- Value Stream LeaderROLES & RESPONSIBILITIES:DAILY:►Lead daily opportunity and funnel review to support VS growth►Facilitate site Demand Creation Gemba Walk with VS team to review support groups Cell Improvement Center and Standard Work Center to understand the performance of the cells►Seek out key barriers within the VS with the team and provide support as needed.►Verify 1 cell's (admin or production) adherence to Standard Work, 6S, and utilization of Andon process.►Review 1 cell's (admin or production) Problem Solving Center to verify adherence to the Lean Problem Solving tools.►Recognize 1 team or individual►Ask a member of the VS team how they supported a cell today.

PERIODIC (weekly, monthly, as needed):►Conduct weekly VS meetings to review progress of Future Growth, Weekly Metrics, True North Metrics and Strategy Deployment ►Conduct meetings with the Channel to get actionable feedback to ensure future growth►Attend Delivery Gemba Walk with VS team to review Cell Improvement Center and Standard Work Center to understand the performance of the cells►Develop communications to cascade down to each cell level from Customer, MCAB, Mission Control and key Enterprise meetings. ►Ensure that the VS Board is updated weekly prior to the VS Review Meeting. ►Own the Watlow Way VS self-assessment and ensure it is updated to reflect current state.►Develop the VS roadmap to achieving Strategy

KNOWLEDGE LIBRARY:►Recipe Cards -Cell Physical Attributes -Cell Improvement Center -Standard Work Center -Point of Use -Problem Solving Center►Dimension Library: -Job Family Dimension Wheel►Watlow Way Training Plan►Watlow Way Training Modules►VS metric board►Capacity planning tool►MSDS Library►Andon Process►Opprotunity Funnel

►What steps do you follow to make an improvement?►What are the barriers to improvement for your team?►Are we demonstrating Watlow Way Values, Principles and Behaviors?

FOLLOW-UP ACTIONS: Today's Date:

Production Control Sheets. Actually walk through the Standard Work. Draw out insights from the team through questions►Have a coaching discussion with each direct report at least once per month - verfiy they are using SOP worksheet►Recognize an individual or team that typifies the behavior that is driving the team towards the Ideal State weekly

►Opportunity Funnel►Enterprise Mission Control

Recognizes and encourages the right

behaviors

defined in the Problem Solving Center?►What questions do you have that you need help with?

►Utilize the Problem Solving Center to teach cell members how to utilize Lean Problem solving tools while resolving each SQDC improvement.►Observe activity in each cell relative to Visual Management of Standard Work, Andon, and Production Control Sheets. This activity starts at the Standard Work Center. Draw out insights from the team through questions►Ensure that standard work is updated as improvement/problem solving occurs.

Management on 1 cell monthly. Initiate gap closure with the team immediately.►Share learnings across the team►Gather feedback and measure performance of functional systems in support of Model Cell.

►MSDS Library►Andon Process

Reinforce functional excellence by helping

others identify and solve problems

Improvement, Std Work & PSCs► Follow-up on identified opportunties of improvement from team members.► Assess need for Overtime ► Lead one team problem solving activity from KPI or Hr.xHr. - drive to root cause

Team members►Support Cell A3 RAIL►Coaching/Development(Team and themselves - possible A3)►Participate in systematic or catastrophic problem solving

►Lead Operator Training Plan & Modules►MSDS Library

Coach your team members to embrace

change.

► Recognize 1 team member embracing change and taking action to eliminate waste ► Follow Andon process as defined ► Audit cell Standard Work and SOP

► Conduct one audit against one MDI recipe card and document actions on KPI ► Backup ML/VSL as needed

Be teachers of proper behavior - explain

desired results

suppo ted a ce today►Discuss the MDI Standard Operating Process sheet with one team member

p p g gyDeployment and True North Metrics through the VSA process semi-annually.►Continue to learn Lean Tools through going to Gemba, leading Kaizens, consultations with Lean Sensei, and TPOC generation.►Lead SOFP for the VS (monthly)►Have a coaching discussion with each direct report at least once per week.

Establish and communicate the vision -

explain how team members contribute

Daily Improvement Requires Engaging All Levels of the Organization…

MDI Event 2 Examples

Organization Structure & Lean LeadershipTeam Member

Team Leader

Value Stream LeaderProduction Production

IDEAL ORGANIZATIONAL STRUCTURE 1 Operator- Adding value thru mfg or support for 90% of time- Team based problem solving consume 10% of time- Eliminate one abnormality each day2 Lead Operator

-Working Leader responsible for daily coaching 3 to 6 team members

- Adding value thru mfg for 80% of time- Team based problem solving consumes 20% of time- Focus on consistent, repeatable, least-waste way-

p gembrace it.

3 Production Team Leader- Responsible for a group of no more than 3 - 6 cells- Teaching and mentoring teams 80% of time- Administrative tasks consume no more than 20% of - Be teachers of proper behavior - explain desired

results4 Support Resource- Respond to Andon in 5 minutes or less- Seek understanding & work to improve processes in

the Gemba for 50% of timeR i f f ti l ll b h l i th

W ate r Str ide r

COI Facilitator

Maint. Mec hanic

Engine er

Pro du ct En g

BuyerPlanner

Qu ality E ng.

D es ig ner

Produ ct Sp ec.

Si te Leader (L OB)

E ng. Manager

Controller

Quality Mgr

B usiness Develop

COI Manager

Product Manager

H R Manager

ins id e valu e s tream org

Finance Analyst

ou tsid e value stream org

H R Special i

Ideal State Value Stream OrganizationMay 2009

Span = 8 to 10 reports

VSL Span = 6 to 8 reports

Opera to r

L ead Op era to r

Op eratorOperator

OperatorOp erator

L ea d Oper ator

Op erator

Operato rOpe ra to r

Op eratorOperator

L ead Op era to r

Ope ra to r Op erator

Op eratorOperator

Operator

L ea d Ope rator

Operator

Ope ra to rOp erator

Op eratorOperato r

Le ad Op erato r

Operator Opera to r

Op eratorOp erator

L ead Op era tor

Operator

OperatorOperator

L ead O pera tor

Operato r

Opera to rOp erator

L ea d Ope rator

Op erator

Op eratorOp erator

Op erator

Op eratorOp erator

Opera to r

L ead Op era to r

Ope rato r

Op eratorOperator

OperatorOp erator

L ea d Oper ator

Operato r

Operato rOpe rato r

Op eratorOperator

L ea d Ope rator

Ope ra to r

Ope rato rOp erator

Op eratorOpe ra to r

Op erator

L ead Oper ator

Op erator

OperatorOpe ra to r

Op eratorOperator

L ea d Ope rator

Operator Operator

Water Stride r

E nginee r

Maint. Mec hanic

L ea d Oper ator

Operato r

Opera to rOpe rato r

Op eratorOperator

L ead Op era tor

Op erator

OperatorOperator

Operato rOp erator

L ea d Oper ator

Operato r

Op eratorOperator

L ea d Ope rator

Ope ra to r

Op eratorOpera to r

Le ad Op erato r

Op erator

Op eratorOp erator

OperatorOp erator

Le ad Op erato r

Operator Operato r

Op eratorOp erator

Le ad Op erato r

Operato r Ope ra to r

Op eratorOperator

L ead Op era tor

Ope ra to r Op erator

Op eratorOperator

Op erator

L ead Oper ator

Op erator

OperatorOpera to r

Ope ra to rOperator

Op erator

L ea d Oper ator

Operator

Op eratorOperator

Operator

Le ad Op erato r

Ope ra to r

Op eratorOp erator

OperatorOp erator

L ea d Op erator

Op erator

Op eratorOpe ra to r

Le ad Op erato r

Op erator

OperatorOp erator

L ea d Ope rator

Op erator

Op eratorOperato r

L ead Op era tor

Operator

OperatorOp erator

MFG L eader

Product Eng

B uyerPla nner

Quality Eng.

Designer

Product Spec.

C us tomer Service

COI Tech

Product Spec.

Design er

Maint. Mechanic

Water Strider

W ate r Str ider

B uyerP lanner

E nginee r

Value Stream #1 Value Stream #2

Value Stream #3

appropriate

appropriate High cell / PTL content so Mfg Leader is

needed

PTL Span = 3 to 6 Ops

ML Span = 3 to 6 Leads

Qua lity Eng

Finance Analys t

HR Speciali

Production Team Leader

Value Stream Leader

Sr. Leaders

Team Leader Team Leader

Team & Team Leader

Revision Date: 6//6/09 Content Owner: Sheryl Hicks

Organizational Philosophy & Key Points:Watlow is positioned as a teaching organizationPrimary role of Leaders has shifted to teaching others toward true north and encouraging and recognizing the the right behaviorsLeaders spend 50% of time developing individuals and 50% of timemanaging the businessLeaders seek to understand rather than directing workAll levels of organization execute daily to Std operating processesOne solution does not fit all locations or vs’s

Responsible for Execution: All Leaders Users: Team Members

- Reinforce functional excellence by helping others identify and solve problems

5 Manufacturing Leader- Span of direct reports is 4 to 8 people- Teaching and mentoring teams 80% of time- Remove ambiguity by teaching mfg to structure and

standardize activities6 Value Stream Leader- Span of direct reports is 6 to 10 people- Teaching and mentoring teams 50% of time

Establish and communicate the vision - explain how each team member can contribute

- Achieve breakthrough performance by expecting and rewarding the best from teams

7 Functional Leaders- Seek understanding & work to improve processes in

the Gemba for 30% of time- Company wide resource for Yokoten- Reinforce functional excellence by helping design and

standardize best practice8 Executive Level Leaders- Primary sponsors of the organizational change- Engaged in catching people doing the right things- Recognizes and encourages the right behaviors

Executive Team

Daily Improvement Requires Engaging All Levels of the Organization…

Support Sr. Leadership

9/20/2011

MDI Event 2 Examples

Lead Operator Responsibilities

KEY QUESTIONS:► Are we working on the correct things?► A d i it th t ?

STANDARD OPERATING PROCESS --- Lead Operator ROLES & RESPONSIBILITIES:DAILY:► Gather prior day's data► Load/Release work to cell

PERIODIC (weekly, monthly, as needed):► Update training matrix / as needed► Facilitate Just Do It improvements / weekly

KNOWLEDGE LIBRARY:►Recipe Cards -Cell Physical Attributes

C ll I t C t ► Are we doing it the correct way?► Are we winning or losing? ► Are we improving? ► How do you look for waste in your job?► What is the KPI telling us today?► What do we need to do to improve our cell assessment?► What is takt?► Show me your Standard Work Combination sheet and tell me what it means to you?

► Load/Release work to cell► Initiate/Update Prod Control Sheet► Facilitate and coach at cell start-of-shift team meeting► Lead Gemba walk around Cell Improvement, Std Work & PSCs► Follow Andon process ► Provide on the job training► Coach team to follow standard work► Verify daily 6S is followed► Recognize 1 team member for cell or personal improvements► Create value by building product► Conduct communication handoff with next or prior shift► Update KPI at the end of the shift► Follow up on actions on Cell Improvement, Std Work & PSCs► Follow-up on identified opportunties of improvement from team members.► Assess need for Overtime ► Lead one team problem solving

► Facilitate Just Do It improvements / weekly► Evaluate employee performance to MDI standard operating process and give feedback / monthly► Backup PTL / as needed► Participate in Kaizens / as needed► Create and follow up on maintenance work orders / as needed► Resolution of customer concerns / as needed► Develop Lead Operator backup / ongoing► Verify 6S Improvements / weekly► Verify team is following cross-training plan► Share learnings across the team► Updated Workforce - time and attendance / weekly► Audit one area per Point of Use Recipe Card, capture actions on KPI► Inventory Accuracy►Goal Setting and Performance Reviews of Team members►Support Cell A3 RAIL►Coaching/Development(Team and themselves - possible A3)►Participate in systematic or catastrophic

-Cell Improvement Center -Standard Work Center -Point of Use -Problem Solving Center►Dimension Library: -Adaptability -Continuous Learning - Initiating Action - Work Standards - Building Trust - Coaching - Builidng a Successful Team - Managing Work - Decision Making►Knowledge Assessment►Lead Operator Training Plan & Modules►MSDS Library Coach your team

members to embrace

p gactivity from KPI or Hr.xHr. - drive to root cause

problem solving

members to embrace change.

The “Rapid Experiment”

Setting Up the Model

Model Cell was an Existing Flow-cellModel Cell was an Existing Flow cellHighly Complex Cell – High VariationHigh Potential Leaders (Team Leader, Production Team Leader, Andon Support)“Average” Team (4 Diverse Team Members)Team Leadership Participated in 3 MDI Events

Improvements Implemented During 3 MDI Events

Will The MDI Model Achieve Breakthrough Results?Will MDI Create a Sustainable Continuous Improvement Culture?

9/20/2011

Model Cell

IF CALLSet Andon Light To:

No Problems Not Applicable Green

Barb HaleyRon Loper by cell phone Cell Phone (314) 651-2359

There is an accident Emergency Team Red

F04 Cartridge Flow Cell ANDON Process

SAFETY

Dial 59 # 01 then page: "Emergency Team come to Firerod Line "F04". Say this twice.

Yellow

TELEPHONE NUMBER

Someone needs first aid for a minor injury

Cultural Results

Team Stops When a Problem is Identified and Support Responds Immediately

Duane Kujawa by cell phone Cell Phone (314) 258-1724

Ron Loper by cell phone Cell Phone (314) 651-2359

Duane Kujawa by cell phone Cell Phone (314) 258-1724

Ron Loper by cell phone Cell Phone (314) 651-2359 Duane Kujawa by cell phone Cell Phone (314) 258-1724Ron Loper by cell phone Cell Phone (314) 651-2359 Maintenance Call or page the Maintenance Department

Over Capacity Ron Loper by cell phone Cell Phone (314) 651-2359 Red

Under Capacity Not Applicable Green

QUALITY

DELIVERY

Scrap three or more heaters in a row or five in an hour

The Line is not meeting hourly Takt goals

DELIVERY

Visual Scheduling Board ANDON Process Cumulative Points:

Yellow

RedThe Line is completely down: Equipment, Design, Material

Problems are Resolved Through Structured, Team Based Problem SolvingTeam Gets First Shot at Solving ProblemSupportive/Coaching Leadership Style Creates Comfort & Trust With the Transformation ProcessFront-Line Leadership & Andon Support

Front Line Leadership & Andon Support are “Where the Game is Won or Lost”Focus on the Processes When Problem Solving – Not Blaming People

Model Cell is Sustaining Improvement…Given the Choice, The Team Would Not Return to Old Ways

MDI Results1/2" Firerod On Time Performance

100.0%

On Time Pe

rformance

1/2" Firerod Quality

Yield Pe

rcentage

1/2" Firerod Productivity

Units per Lab

or Hou

r 44% Improvement

8 Months @99% Yieldu50% Improvement

Innovation/ Planning

Continuous Improvement

the Business Processes

Lean Enterprise Perception of Job Functions

3/8/09

5/8/09

7/8/09

9/8/09

11/8/09

1/8/10

3/8/10

5/8/10

7/8/10

Week (February 2009 to August 2010)

On Time Performance Percentage4 per. Mov. Avg. (On Time Performance Percentage)

2/22/09

4/22/09

6/22/09

8/22/09

10/22/09

12/22/09

2/22/10

4/22/10

6/22/10

8/22/10

Unit Yield Percentage 4 per. Mov. Avg. (Unit Yield Percentage)

2/22/09

4/22/09

6/22/09

8/22/09

10/22/09

12/22/09

2/22/10

4/22/10

6/22/10

8/22/10

Units per Labor Hour 4 per. Mov. Avg. (Units per Labor Hour)

99% Yieldu50% Improvement

MDI I O M th d t E t th

Daily Management(Run the Business Processes)

(Improve the B

MDI Is Our Method to Execute the Watlow Business System At All Levels of the Organization !

9/20/2011

Epiphany 3

Purpose

Lean As A System

Plan/Do/Check/Act is Not Just A Platitude –It Actually Means Something!

9/20/2011

Feedback

WatlowEnterprise

Strategy & EVSA

Strategic Goals & Priorities

1 2 3 4

Small Customer Growth and SupportMeet Engineering Capability and Capacity Needs

Active A3'sby 12/31/09

~unless otherwise noted~

3 Year Strategies

Breakthrough Goals

r stre

e offe

Product Standardization and Improvement

1.TL A3 Metrics

Watlow Way Transformation A3 (Enterprise TPOC)Mega Opportunity GrowthEurope and Asia Growth Strategy

Deployment L11 2 3

Watlow Way Transformation A3 (Enterprise TPOC)Mega Opportunity GrowthEurope and Asia Growth

LOB L2

Watlow Business System – Rev 1

What Does This Picture Tell Us? Complexity is King – We love it!Not easily understood or explained2006 W tl E t i St t

True North Metrics & Visual Boards

Updated

P f R i

Business

Value StreamCell

Core Fundamentals• Enterprise level focus (portfolio)• Solid Growth Strategy + True North +

Stretch Goals + Alignment & Linkage + Operating Systems

• Drive WW Transformation:- 3% of population full time COI- N/10 Pace of change- Event Participation- Engage Everyone in daily CI

Value Stream Analysis (2x/yr.)

1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Grow Market Share (revenue at 3* Regional GDP)

Cycle Times (-25% / Yr.)

Operating Income (15%)

1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14

ity (1

3 Year Strategies

Breakthrough Goals

e offe

1.TL A3 Metrics

LOB L2

“Linkage” Process with VS & Cell Teams

1-ITEMFLOW

STD.WORK

BASIC6-S

PULLSYS.

SETUPREDUC-TION

BASICQUALITY CHECKS

TAKT TIME OUT -PUT

LOT-SIZE 1

ZERODEFECTS LEVEL-

LOAD- LOAD

DEFECT-FREE ON-DEMAND

1-BY-1 LOWEST COST

VISUAL MANAGEMENT

WATLOW WAY BEHAVIORS

1-ITEMFLOW

STD.WORK

BASIC6-S

PULLSYS.

SETUPREDUC-TION

BASICQUALITY CHECKS

TAKT TIME OUT -PUT

LOT-SIZE 1

ZERODEFECTS LEVEL-

LOAD- LOAD

1-BY-1 LOWEST COST

VISUAL MANAGEMENT

Value Stream Management Op System

Sales, Operations, Financial Plan (“SOFP”)

Not easily understood or explainedPlanning activity is not holistic – primarily designed for manufacturingWe realized that the pieces of the process must connect to form a system We realized the system must be closed loopFocused on Process Only – It was mechanical!Addresses Variation WithinDoes not address those things that

2006 Watlow Enterprise StrategyGrow Organic Sales to US $400 M by 2010Longest Custom Turn Time (Days): Quotes-5/Prototypes-10/Shipments-10Improve Labor Productivity by 1.5% monthly to regain Price CompetitivenessBuild world class engineering functional

Future State VS PlanRIE A3s; VS Improvement Target & Future state Box

Performance ReviewsMission Control Meetings

VSM Op SystemGemba Walks

Problem SolvingRCCA & Robust

CountermeasuresWW Self-AssessmentsInclude all Stakeholders

Reset Expectations

pportunity

Support Value Streams

Design & Development

Product Management

Demand Creation

New Product Development Value Streams

Supply Chain Delivery

Update VS Operating

System (VSM)

Linkage Process

Just Do-Its

Projects

Managing for Daily Improvement

affect variation between (linkages)PeoplePurpose

Build world class engineering functional excellence

Watlow Business System Rev 5Watlow Business System:

The Model to Lean Transformation OVERVIEWRED OUTLINES are Links To Details

FeedbackACT

WatlowEnterprise

Strategy & EVSA

Strategic Goals & PrioritiesWW Transformation A3WW Transformation A3 Update VS

Operating

System (VSM)

inkage

Aug 09

2007 Watlow Business StrategyC

LTrue North Metrics

& Visual Boards Updated

Business

Value StreamCell

Core Fundamentals• Enterprise level focus (portfolio)• Solid Growth Strategy + True North +

Stretch Goals + Alignment & Linkage + Operating Systems

• Drive WW Transformation:- 3% of population full time COI- N/10 Pace of change- Event Participation- Engage Everyone in daily CI

Value Stream

1 2 3 4

1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14

ity (1

wth ($)

rofitabi

lity im

nity M

etric Pl

ticipat

ion (5

0% of the

ect(PP

M) Red

ycle T

ime Red

3 Year Strategies

Breakthrough Goals

rive th

to agg

ressiv

ely gr

ers by

increa

offerin

to ach

ore ba

al rev

ity and

lability

as a Gro

1.TL A3 Metrics

Strategy Deployment L1

1 2 3 4

1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14

ity (1

3 Year Strategies

Breakthrough Goals

1.TL A3 Metrics

LOB L2

LOB/Site TPOCLOB/Site TPOC

“Linkage” Process with VS & Cell Teams

1-ITEMFLOW

STD.WORK

BASIC6-S

PULLSYS.

SETUPREDUC-TION

BASICQUALITY CHECKS

TAKT TIME OUT -PUT

LOT-SIZE 1

ZERODEFECTS LEVEL-

LOAD- LOAD

1-BY-1 LOWEST COST

VISUAL MANAGEMENT

1-ITEMFLOW

STD.WORK

BASIC6-S

PULLSYS.

SETUPREDUC-TION

BASICQUALITY CHECKS

TAKT TIME OUT -PUT

LOT-SIZE 1

ZERODEFECTS LEVEL-

LOAD- LOAD

1-BY-1 LOWEST COST

VISUAL MANAGEMENT

Linkag

Process

Value Stream Management Op System

What Does This Picture Tell Us? • Complexity is Still King• Recognized the WBS is a PDCA Cycle• Designed for Manufacturing• We recognized the need to incorporate people development through our WW transformationi h

Double Revenue Every 3-5 Yrs.50% Reduction in Defects every Year95% On Time to Request for Quotes, Prototypes, and Shipments

N Future State VS PlanRIE A3s; VS Improvement Target & Future state Box

Performance ReviewsMission Control Meetings

VSM Op SystemGemba Walks

Problem SolvingRCCA & Robust

CountermeasuresWW Self-AssessmentsInclude all Stakeholders

Reset Expectations

Analysis (2x/yr.)Customer

Satisfaction

SQDC Grow

Opportunity

Product Management

Demand Creation

Customer

Satisfaction

SQDC Grow

Opportunity

Product Management

Demand Creation

Update VS Operating

System (VSM)Linkage Process

Just Do-Its

Projects

Team Based Continuous

Improvement

Individual

IdeasManaging for Daily Improvement

g Op y

Sales, Operations, Financial Plan (“SOFP”)into the process

• Unfortunately, we looked at it as separateactivities

• We introduced a new term call Transformation Plan of Care was (TPOC)

•Purpose has not yet been addressed

Improve Labor Productivity by 1.5% MonthlyMeasure and Improve Organizational Effectiveness

9/20/2011

Watlow Business System – Rev 38Strategy

Development

StrategyDeployment/True North

What does this picture tell us:•Much more simplified and understandable

2011 Watlow Strategy• Grow to $500M by achieving #1 or #2 leadership

SOFPLead

ipLean NPDPortfolio

Act•The WBS is a simple PDCA Cycle•More holistic approach including all

improvement and development activities•All planning activities roll up into 1

business plan (SOFP)• Lean Product development integrated into

the system

y g pposition in targeted spaces (Optimize Performance of the Customers Thermal System)

• $150 M Revenue from new breakthroughsolutions (Product Leadership)

• Create capacity to grow by using the WatlowBusiness System (WBS) to achieve 12% annual

Breakthrough

VisualMgmt

Kaizen MDI Lean NPD

the system•People culture/culture development

integrated into the system•Leadership is defined as critical

productivity improvement• All Leaders achieve level 4 maturity in their personal

development

Epiphany 3 - Purpose

2011 Watlow Strategy• Grow to $500M by achieving #1 or #2

leadership position in targeted spaces (Optimize Performance of the Customers

From To2007 Watlow Business Strategy

Double Revenue Every 3-5 Yrs.50% Reduction in Defects every Year (Optimize Performance of the Customers

Thermal System)• $150 M Revenue from new breakthrough

solutions (Product Leadership)• Create capacity to grow by using the

Watlow Business System (WBS) to achieve 12% annual productivity improvement

• All Leaders achieve level 4 maturity in their

50% Reduction in Defects every Year95% On Time to Request for Quotes, Prototypes, and Shipments Improve Labor Productivity by 1.5% MonthlyMeasure and Improve Organizational Effectiveness

personal development

WE FINALLY GOT IT! ITS ABOUT…PEOPLE

PURPOSEPROCESS

9/20/2011

Epiphany 3: The Impact of Strategy/PurposeThe first principle of lean is about Creating Value

Our strategy now reflects where and with whom that value is being createdOur history and DNA said we were a “product leadership” company but our flow down was around QDC for 4 – 5 years of our transformation

This very much confused the organization and in some ways paralyzed our transformation

W h t t d h ld l VPWe have never targeted where we would apply our VPWe have always provided “everything for everybody” which created a very large job shop with high complexity and without scale

What’s Changed Since Our Strategy Has Better Articulated?We are very focused:

Attractive spacesStrategic Products and CustomersImprovement and Development Activities

Our Value Streams look very different. They are better focused on where the value is created

D d C ti d D li

Demand Creation and DeliveryWe have and are “cleaning out” products that are not strategic and do not flow

Creating ScaleWe have defined and focused on “Critical Capabilities”

Lean Product Development Thermal System ExpertiseLarge Customer ManagementUnderstanding our Markets and positioning ourselves to Win

5 Year True North ResultsSafety - TCIR Quality Escapes – Parts Per Million

10,000

12,000

66%% Improvement71% Improvement

Delivery - OED Productivity

-2,000

History 7,000 5,282 4,499 5,850 2,958

Target 3-Mo Avg 2,835 2,712 2,588 2,465 2,342 2,219 2,095 1,972 1,849 1,726 1,602 1,479

Actual 3-Mo Avg 3,877 5,762 4,669 4,993 3,485 3,254 2,564

Month PPM 2,759 10,447 2,503 4,223 4,027 1,765 2,169

UCL 5997.741242 5997.741242 5997.741242 5997.741242 5997.741242 5997.741242 5997.741242 5997.741242 5997.741242 5997.741242 5997.741242 5997.741242

LCL -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82.04188633 -82.04188633

2006 2007 2008 2009 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0.00

History 2.32 1.89 2.24 2.24 1.17

3 Month Average 0.51 0.51 0.78 0.61 0.98 0.9 0.8

Target 2.00 1.95 1.95 1.90 1.85 1.80 1.75 1.70 1.65 1.60 1.55 1.50

YTD Average Actual 0.51 0.51 0.78 0.85 0.98 0.89 0.85

2006 2007 2008 2009 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

120 0%

140.0%

Sales $ / Team Member

100.0%

120.0%

History 18.0 15.0 15.0 14.0 13.0

Target Pct of Baseline 97.9% 95.8% 93.8% 91.7% 89.6% 87.5% 85.4% 83.3% 81.3% 79.2% 77.1% 75.0%

Actual Pct of Baseline 102.0% 103.0% 101.0% 96.0% 95.0% 95.0% 94.0%

2006 2007 2008 2009 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$147,600$147,400$149,900

$140,000$138,800

$90,000

$100,000

$110,000

$120,000

$130,000

$140,000

$150,000

$160,000

History $105,00 $115,00 $126,00 $130,00 $123,58 $139,40

Target $140,49 $141,89 $143,31 $144,74 $146,19 $147,65 $149,13 $150,62 $152,13 $153,65 $155,18 $156,74

Actual $138,80 $140,00 $149,90 $147,40 $147,60 $0 $0 $0 $0 $0

2005 2006 2007 2008 2009 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

History 2011

47% Improvement32% Improvement

9/20/2011

Transformation

Enhancing the

Results“The Right Way”

Using The WatlowBusiness System

gValue Proposition

Watlow PeopleBusiness = PurposeSystem Process

"Every time I put on my uniform, every time I throw a pass, every decision that I make, every time I speak to my children, every time I communicate with my wife, every time I go to church and pray -- everything that I do I want to be as close

The Pursuit of Excellence

church and pray -- everything that I do, I want to be as close to perfect as I possibly can," he said. "That's what motivates me more than anything. I know I can be better in all those areas. And that's the great thing about it. I'm never going to be perfect. Never going to play the perfect game, never going to have a perfect season, never going to be the perfect dad or the perfect husband... But I have an ideal I'm trying to live up to and trying to focus on, and I think that's what it's all

about.”Kurt Warner

St. Louis Post Dispatch

January 13, 2002

9/20/2011

StrategyDevelopment

StrategyDeployment/True North

Failure ModesWe Have Seen

•Lack of clarity around strategy•Linkage gaps from level 1 to the cell•SD Created Without Team•Level 2 Contains Initiatives That Did Not Connect to Level 1

• Too Many Initiatives•Level 3 Reprioritized Level 1•Manufacturing Improvement Only•Improvement Plan Not Quantified

Epiphany 4 - WBS Failure Modes

True North

p Q•Not clear that the improvement actionsadd up to level 2 SD requirements

•Every VSA has n/10 events – whatdoes it take to deliver SD

• Productivity expectation for MDI and othercells not built in or communicated

•Not viewed as the business playbook•Labor Capacity Plan Only•VSA results not included•Product Development plans not included•Implementation Not a Priority

Lean NPDPortfolio

Breakthrough

VisualMgmt

•Event Benefit Tracker Not being used•Event Targets not established•MDI Cell not properly staffed•Lead and PTL developmentplans not being followed

•Not asking deep enough questions On the Gemba walks

•Ineffective event execution•Objective for Visual Mgmt Unclear• Not following standards•Unable to identify abnormalities

Kaizen MDI Lean NPD

Clarity of WBS and The Failure ModesBetter understanding of the WBS as a PDCA process

Closed loopEver changing and improving

Epiphany 4 – Results of Understanding WBS Failure Modes

Created some level of improvement and consistencySite Reviews – they follow the processVisual Management – PDCAImproved VSA processPortfolio Decision Making – VSA and Product DevelopmentUnderstanding the role of SOFPGoal linkage from the Enterprise to the cell

Goal linkage from the Enterprise to the cellImproved focus on “standards”

Better understood that “variation between” is just as harmful as “variation within”

Allowed us to focus on gaps/failure modes

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