creating a culture of operational excellence · operational excellence defined 3 operational...
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powered by #IndustrialInternet
Creating a Culture of Operational Excellence
Build your brilliant industry
September 30, 2015
powered by #IndustrialInternet
Greg Flickinger, Snyder’s Lance
Steve Schlegel, OpX Leadership Network
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MOVING OPERATIONAL EXCELLENCE FORWARD
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7,600,000 results
683,670 involved
OPERATIONAL EXCELLENCE DEFINED
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Operational Excellence is a philosophy of leadership that drives deliberate and sustainable improvement by focusing on the needs of the customer, empowering employees, and optimizing processes.
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MOVING OPERATIONAL EXCELLENCE FORWARD
• community of Manufacturing , Engineering & Operations professionals
• Over 170 companies
on solving common operational challenges
• Develop best practices and
protocols for industry
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BEST PRACTICES: BY INDUSTRY FOR INDUSTRY
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IMPROVING ADOPTION OF NEW INITIATIVES
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The Engagement Framework Creating the Conditions to
Engage Your Workforce
Greg Flickinger Ph.D.
VP Manufacturing and Corp Engineering Snyder’s – Lance Inc.
September 30, 2015
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ENGAGEMENT STATISTICS
• “Engaged employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward.”
30%
52%
18%
Engaged Not Engaged Actively Disengaged
* Gallup’s 2013 State of the American Workplace Report
31.5% 17.5%
51% ** 2014 Gallup Engagement Update
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ENGAGEMENT STATISTICS
Dale Carnegie® 2012 Survey
29%
45%
26%
Engaged Not Engaged
Actively Disengaged
22%
39%
23%
16%
Highly Engaged Moderately Engaged
Passive Actively Disengaged
AON Hewitt 2014 Trends in Global Employee Engagement
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VALUE OF ENGAGEMENT
Source: Gallup’s 2013 State of the American Workplace Report
-80% -70% -60% -50% -40% -20% -10% -30% 10% 20% 30% 0%
Absenteeism
Shrinkage
Safety Incidents
Patient Safety Incidents
Quality (Defects)
Customer Ratings
Productivity
Turnover High Turnover Orgs
Low Turnover Orgs
Profitability
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VALUE OF ENGAGEMENT
$450-$550 Billion annual Lost Productivity due to
disengaged employees - Source Gallup
Companies with Engaged Employees outperform
those without by up to 202% - Dale Carnegie
$11 Billion is lost annually due to employee Turnover
- Dale Carnegie
High, Sustainable Engagement companies
Operating Margins are 3X higher than those with
the lowest levels of engagement - Towers Watson
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CULTURAL OUTCOMES OF ENGAGEMENT
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WORKFORCE DEVELOPMENT SOLUTIONS GROUP
• Diverse Group of Leaders
– Commissioned in early 2012
– Experience across many companies
– Worked in many functions
– Practitioners
• Objective: Codify how Leaders made the “Magic” happen
• Published: White Paper in Spring of 2015
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ENGAGEMENT FRAMEWORK
• Define the conditions that create an environment to allow and support engagement
Roadmap Diagnostic
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Engagement - A high degree of emotional attachment, intellectual commitment and behavioral actions creating ownership and generating individual, team and organizational performance.
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ENGAGEMENT
Values
LEADERSHIP
Mission / Vision / Purpose
*Currently at Campbell’s
ENGAGEMENT FRAMEWORK
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EMPOWERMENT CONNECTION
ENGAGEMENT ENABLEMENT
Values
LEADERSHIP
Mission / Vision / Purpose
ENGAGEMENT FRAMEWORK
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HOW DO WE START?
EMPOWERMENT CONNECTION
ENGAGEMENT ENABLEMENT
Values
LEADERSHIP
Mission / Vision / Purpose
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CASE STUDY RESULTS
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CASE STUDY: CHARLOTTE SALTY SNACKS PLANT
• Background
– 160 Employees
– Worst performing part of the site
– Known as the last stop out the door
– Decision made to invest in new kettle equipment for the plant
– Expected ROI of 12.6%
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ENGAGEMENT FRAMEWORK
EMPOWERMENT CONNECTION
ENGAGEMENT ENABLEMENT
Values
LEADERSHIP
Mission / Vision / Purpose
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• Improved Kettle Project ROI by 55%
– Project delivered on time and below budget
• Best results in plant’s history
– 47% reduction in downtime
– 32% reduction in Raw Material waste
– 31% reduction in Packaging Material waste
– 50% reduction in over pack
– 70% reduction in consumer complaints
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CASE STUDY RESULTS
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CASE STUDY RESULTS
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2.22 2.24
2.28 2.26
2.51
2.01
2.16
2.20 2.18
2.11
2.20
2.26
2.02
2.13
2.08 2.05 2.05 2.06
2.00 2.01
1.97 1.94
2.07
2.03 2.04
1.96 1.96 1.93
1.85
1.79
1.94
1.80
$1.700
$1.800
$1.900
$2.000
$2.100
$2.200
$2.300
$2.400
$2.500
$2.600
Cost Per Pound
5/26/13 - Installation Complete 6/03/13 - Commissioning Complete 6/12/13 - Line at 100% Rate
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CASE STUDY: SUGAR CREEK FOODS
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Contract manufacturer using the Engagement Framework to launch its new plant as a High Performance Work System
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Current • White Paper Download http://www.opxleadershipnetwork.org/ • Foundational Diagnostic (Under Development)
Future • 47 Element Diagnostic • Adoption Tools • User Groups
ENGAGEMENT FRAMEWORK: NEXT STEPS
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http://www.opxleadershipnetwork.org/
QUESTIONS
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