crayola: creating a data driven culture · building the data driven culture many departments are...
TRANSCRIPT
CRAYOLA: CREATING A
DATA DRIVEN CULTURE
Richard Titus
2
Everyday Crayola
• Makes 13 million crayons
• Makes 2 million markers
• Makes 500,000 jars of paint
• Makes 22,000 Silly Putty eggs
• Makes 170,000 pounds of modeling compounds
• Sources 6 million sticks from suppliers
• Sources 20 trailers and two railcars of raw materials
• Ships 70,000 cases
Crayola’s Easton Facilities
Crayola’s Bethlehem Mfg. Facility
Crayola’s Bethlehem Distribution Center
13.9%15.2%
22.7%22.9%
27.6%
17.7%18.8%
13.0%
2.7%5.1%
8.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
New Products - % of Business
Innovation
53 skus
21 skus
61 skus
152 skus 94 skus
138 skus 152 skus
191 skus
6
158 skus 163 skus
178 skus
Since 2006: EBIT is Greatly Enhanced from Cost
Management
Six Sigma
Lean Logistics
Product
Changes
Competitive
Sourcing
Supply Chain
Design
Negotiations
What a
Great Idea!
Cost Management
Productivity Fuels
Innovation
8
Supply Chain Leadership
Stick Handling/Logistics Continuous Improvement Negotiations/Supply Base Segmentation
Speed to Market Supply Base Capability Engineering Talent
Renewable Energy (Groundwater, Solar) Recycling Colored Pencils Recycled Resin in Products
Delighting the Consumer Minimize Critical Defects/Consumer Complaints Supply Base Code of Conduct
Supply Recovery after Business Interruption Meeting Unforecasted Demand Supporting International Expansion
Agility
Quality/EthicalResponsibility
Cost
Innovation
Sustainability
9
Leadership: Building the Data Driven Culture
Pete Ruggiero, Executive Vice President, Global
Operations is the Program Sponsor
Sponsored Wave I of Green Belt Training in 2007 as
a Pilot Program
Participated in the 80 hours of Training, Passed the
Green Belt Exam and Completed his Certification
Project in the Procurement Area
Project continues to Yield Substantial Financial
Benefits to Crayola
Requires that all of his Direct Reports earn Green Belt
Certification
“You may think you know what the problem is- but
you can’t run your business on intuition. So we
look at the data in Minitab.”
-Pete Ruggiero, Executive Vice President, Global
Operations and Information Technology
10
201620152014201320122011201020092007
90
80
70
60
50
40
30
20
10
0
Year Trained
To
tal
Nu
mb
er
of
Tra
ined
Belt
s
Time Series Plot of Total Number of Trained Belts
Training: Building the Data Driven Culture
Not a “Belt’ Counting Contest
Training Program is focused on adding Value and
Organizational Capability
Program is part of Crayola’s Talent Management
Process
Champion and Yellow Belt Training included in Program
Nearly 90 Green and
Black Belts Trained
67, 76.1%
Green Belt
21, 23.9%
Black Belt
Pie Chart of Six Sigma Training
4 of 21
Black
Belts had
prior
Statistical
or GB
Training
11
Project Execution: Building the Data Driven Culture
Majority (80+%) of Projects Operations Focused
93% Project Completion Rate
3, 3.1%
R&D
83, 86.5%
Operations
2, 2.1%
Mktg
2, 2.1%
IT
2, 2.1%
HR2, 2.1%
Fin/Mktg/Ops
2, 2.1%
Fin
Pie Chart of Project Types: Operations Dominated
4, 4.8%
Other
3, 3.6%
Supplier Scrap/Rework Reduction
15, 18.1%
Scrap /Rework Reduction
2, 2.4%
Quality
10, 12.0%
Product Cost
3, 3.6%
Procurement
3, 3.6%
Overhead Reduction
21, 25.3%
Machine Efficiency
8, 9.6%
Logistics
8, 9.6%
Inventory Management
6, 7.2%
Facilitating
Pie Chart of Operations Project Focus
12
Project Management and Review: Building the Data Driven Culture
Project Leaders are Required
to Present Current Status,
Results, Issues, etc. to Mgt.
Team and Project Champions
Project Reviews are
Completed on Regular
Intervals
Projects Savings are Verified
and “Booked” by Finance
Projects are Managed using
Project Mgt. Software
13
Coaching and Support: Building the Data Driven Culture
On-site Project Coaching is
included as Part of Training
Program
Experienced Black Belts help
Coach and Mentor Green and
Yellow Belts
Master Black Belt in Training
and Black Belts assist in
Delivering Yellow Belt and
Champion Training
14
Speaking Statistics: Building the Data Driven Culture
Many Departments are
Populated by Lean Six Sigma
Active Practitioners. These
Areas include:
Facilities Engineering
Process Engineering
Continuous Improvement
Operations Management
Active Practitioners in these
Areas Utilize Statistics to
Describe, Analyze, Determine
and Solve the Root Cause of
Problems. Understanding and
Applying Statistical Tools and
Interpreting Results is a Job
Requirement
Comment puis-je calculer le score Z?
Project Benefits Presentations to Senior Leadership including: Operating
Committee Leadership Council
Projects included: Server Efficiency New Product
Process Crayon Strength
Execute the projects and ‘Book’ the Benefits
Champion and Yellow Belt Training 15
Socializing, Booking the Results and Expand the Program: Building the Data Driven Culture
Program Mgt.: A Look Back
Current active Green Belt and Black Belt Training waves include: 4 Team Leaders/Operations
Managers Quality Coordinators Molding Technicians R&D Personnel Facilities Engr. Process Engr. Continuous Improvement
Six Sigma and Lean are being more closely Coordinated and Integrated into Crayola Operating Systems
Team Leaders doing their own Process Measurement and Analysis (with Coaching…)
Yellow Belt Training Enhanced Emphasizing Detailed Tool Usage (speaking “Statistics”)
16
Reaching Critical Mass and Integrating into Daily Operations: Building the Data Driven Culture
Enhanced Yellow Belt
Team Leader Project Report Out Example:DEFINE/MEASURE
Goal:
Achieve material variance in cost system
Scope:
Reduce negative material variance at LVIP facility for the
empty paint pot strip SKU, while maintaining or improving
efficiency on the J6 production line.
Risk:
Unable to maintain consistent fill levels without capital
investment.
Assumptions:
Adjustments can be made to the pump system to
consistently accommodate fill volume.
All pump systems are different.
Team Leader Project Report Out Example:MEASURE- 35+ Hour Time Study (includes WIP)
% of faults
frequency by
machine
section
ZED = Pick and Place and Vacuum Handoff Machine Areas
% of faults
total time by
machine
section
Team Leader Project Report Out Example:MEASURE- Total Runtime by Machine Section including Line Running
Team Leader Project Report Out Example:MEASURE- 2nd Level Pareto of Filler Events
• Dust/Foreign Material on Suction Cup Handoff Area causes Mishandling of Strips and Downtime
• Dust/Foreign Material on Capper
causes Capper Faults and Downtime
Team Leader Project Report Out Example:MEASURE: Short Term Improvements via additional A3 Focus Area (Integrating Lean and Six Sigma Tool Sets)
Team Leader Project Report Out Example:MEASURE- Measurement System Analysis (MSA)
•Successfully Completed and Passed MSA on Analytic
Scale with Key Personnel.
•Analytic Scale to be Utilized to Measure Paint Fills and
Individual Paint Pots
Given the Level of Knowledge and Application of the Six Sigma and Lean Tools/Processes throughout the Organization, it is easy to Fall into some Traps. These include: Having the Answer(s) and Trying to
find Data to fit the Answer(s) Not involving a Team and Working
as the “Lone Ranger” Trying to Optimize an Unstable
Process (Stabilize First) Not doing the Hard work of Mapping
and Measuring the Process Not having a Primary Metric that
indicates if you are Winning or Losing
Searching for the Silver Bullet Trying to Outsmart the Process (“No
one is smarter that the process.”)
Not following the DMAIC Process
23
The Dark Side of the Force: Building the Data Driven Culture
24
It Starts and Ends with Leadership: Building the Data Driven Culture
"We've moved our culture from 'When you have a
problem, bury it,' to 'We have a problem and we
need to make it visible so we can solve it.”
-Pete Ruggiero, Executive Vice President, Global
Operations and Information Technology
"We start with the assumption that everything we do, we
can do better. And that's why Minitab is key—it helps us
understand the statistical analysis and lets the data
reveal where we need to go.“
Gary Wapinski, Vice President of Logistics and
Continuous Improvement
In God we trust.
All others bring data.