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Inspired Lean Thinking and Kaizen through Leadership and Teamwork Roadmap: 4 Assignments Illustrating Improvement Thinking Organisational Structures to complement Lean And Kaizen Common denominators related to Generic Learnings Toolbox moving forward Allan Hunt Manufacturing Manager Peninsula Beverages Company

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Page 1: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Inspired Lean Thinking and

Kaizen through Leadership

and Teamwork

Roadmap: 4 Assignments Illustrating Improvement Thinking

Organisational Structures to complement Lean And Kaizen

Common denominators related to Generic Learnings

Toolbox moving forward

Allan Hunt – Manufacturing Manager Peninsula Beverages Company

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Senior Flexonics Cape Town

Manufactures flexible exhaust connectors, decouplers,

cross over bellows, and turbo dampers mainly for the

European and North American automotive markets.

Assignment # 1 - Automotive

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Senior Flexonics Cape Town

In order to manage 13 global manufacturing sites objectively, the MD of the organisation (based in Wales) ensured that each business is audited in “Operational Excellence” by the same consultant, therefore creating a yardstick and benchmarking each site.

Regarding Operational Excellence and Manufacturing Business Excellence Models, for many of us as a leadership team it was our first exposure. We soon realised that the implementation successes and failures were a function of the people and their acceptance as well as our leadership.

The business, being well led by a MD (Cape Town), and

management team. There were two specific changes we

brought about which created major “spin-offs” towards

performance of KPIs in the next 6 years:

Page 4: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Senior Flexonics Cape Town

1) Organisational Structure:

MD

Production HR Engineering Maintenance Finance Quality

Process Focus

Page 5: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Senior Flexonics Cape Town So in terms of the Process Focus Teams created – driving a Matrix

Organisation (Unit Structure) – the Leadership Team were relentlessly

focussed on reaching Operational Objectives (Quality, Cost and

Delivery).

Driving Lean Thinking, and constantly taking costs out of the business

from the smallest improvement to major Capex implementations.

As a team we focussed on the KPIs of Throughput Increase & Scrap

Reduction whilst holding Quality.

We did not realise at the time how we were entrenching new cultures in

the business – eluding to “the way we do things around here” – I will

come back to that point later in the presentation.

With definite outcomes from Change Management, to Operational

Excellence we were rated on a level of 1 to 5, and we soon realised that

we need to change culture in the business to implement improvements

with longevity. (These days we refer to these as the “practices” in the

plant.)

Page 6: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Senior Flexonics Cape Town

2) Worked hard at creating a TEAM: “The moment you feel the need to tightly manage

someone, you’ve made a hiring mistake. The best people

don’t need to be managed. Guided, taught, led–yes. But

not tightly managed.” – Jim Collins (Good to Great)

The great Learning about working on this team was that in

order to drive sustainable performance, there needed to be

a synergy in the leadership team which would spill into the

organisation.

Page 7: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Glass South Africa – subsidiary of PG Group

The business brought a different mix of problems, but the need was clear

to go very deep operationally on the factory floor, as the culture had no

exposure to Operational Excellence.

As Leadership we introduced Mission Directed Work Teams on the

shop floor (after getting basic rigour & discipline in place) after 6

months.

With our Team Leaders on the floor we focused on driving the

required outcomes as called out by the MDW Measures

Hierarchy of implementation:

• Planning first inside ERP, no exceptions

• Rigour and discipline on daily operational activities glass cutting,

glass processing, glass toughening followed by OTD

Assignment # 2 – Glass Industry

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Glass South Africa – subsidiary of PG

Group

Achievements:

On Time Delivery from below 40% to above 95%

Lead Time for delivery from 10 working days to 5 working days

It was hard work to drive a daily routine of cross-functional team

meetings and KPIs – again not verbalising it yet but really starting with

Kaizen culture (… the way we do things around here)

The word “Kaizen” is the Japanese word literally meaning:

“Good Change”

Page 9: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

The Etymology of the word “Kaizen”

Page 10: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Leadership inside Visionary Companies

Jim Collins speaks inside his book “Built to last” about the 12 myths on

“visionary companies”

Myth Number 5:

“The only constant is change”

“For the Visionary Companies - Core values remain the same and in

tact – in some cases more that 100 years. Yet there exists a powerful

drive for progress without changing their core values.”

This might seem a paradox, but Kaizen does NOT intend a change of

core values… but refers to this “drive for progress…”

Page 11: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Faurecia Emissions Control Technologies

Leading Automotive Components Supplier in 34

countries with 320 manufacturing sites globally

Implementing Faurecia Excellence System

(mirror of Toyota Production System)

Working as the Ford Business Unit Manager

(about 400 people) manufacturing Catalytic

Convertors

Assignment # 3 – Automotive Industry

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The success of all manufacturing operations can be measured as a

combination of the following 5 drivers or Key Performance Areas

(KPA’s) :

1. Quality

2. Cost

3. Delivery

4. Flexibility

5. Speed

Faurecia was driving this approach,

As their “Level of depth” in terms of

Kaizen practices were mature.

Right to Exist

Faurecia Emissions Control Technologies

Business Value

Page 13: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

This assignment was operationally the toughest – going

through a very high risk period, almost stopping vehicle

plants in Europe.

Root cause being the late installation of capacity, and the

delayed implementation of operational practices to

achieve capacity.

At a certain stage management started working shifts,

and all because installed capacity was not proved early

enough with project launches.

An example of how “not to do it”?

Faurecia Emissions Control Technologies

Page 14: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

However, given operational teamwork, and a drive to

achieve objectives on the factory floor, daily targets we

achieved and exceeded, and after a six month intense

period, supply was stabilised.

Quality problems decreased in number and severity.

One of the most significant Learnings: “The function of

leadership is to reduce the variability to the process.

Variability being caused by man, machine and material.”

– We will come back to this later in the presentation.

Faurecia Emissions Control Technologies

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The Peninsula Beverages Company

…we also were faced with which model to

implement and through which organisation?

Assignment # 4 – Beverage Industry

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The right practices will deliver the right results

Excellence in WCM implementation is achieved through delivering

improvements in business processes (work practices) that leads to

improvements in business relevant KPIs.

Delivering results through a process or work practices ensures

sustainability, repeatability and transferability of KPIs that are achieved.

Exc

elle

nc

e in

Res

ult

s

Excellence in Work Practices

WCM WCM

ExcellenceExcellenceUnsustainable

Progress

Incorrectly

Focused

“It becomes your

culture”

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What have we achieved?

Consistent Quality Performance

Safety culture developed – that is the way we do things around here…

Line Utilisation improvement 2011 to 2013 of > than 20%

Customer OTD improvements of 15% 2011 to 2013

But more importantly, culture which practices Fairness,

Accountability, Continuous Improvement and Teamwork

The Peninsula Beverages Company

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TEAMWORK

TEAMWORK

KPIs (Safety, Quality, Morale, Productivity, Delivery, Cost)

VISUAL MANAGEMENT

5S

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Manufacturing

Continue with World Class

Practices

VISUAL

MANAGEMENT

TEAMWORK

FOCUSED IMPROVEMENT

FOCUSED

IMPROVEMENT

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Daily Metrics – Measured & Displayed

TEAMWORK

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Daily Metrics – Measured & Displayed

TEAMWORK

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Team Names and Record Performances

FOCUSSED IMPROVEMENT

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Rewards and recognition

FOCUSSED IMPROVEMENT

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Celebrate Achievements with History

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TEAMWORK

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Hourly Throughput measured by operator

FOCUSSED IMPROVEMENT

“First Hour Green”

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Hourly Throughput measured and displayed (Back-End & Front-End of line) - On filler performance

TEAMWORK

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Example of display of hourly throughput

TEAMWORK

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Line KPI board on Line

FOCUSSED IMPROVEMENT

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Blowing unit – Code of Conduct on Line

29

TEAMWORK

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5S - Zoning

Blowing unit – 5S Zoning

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House keeping and Performance awards

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5S

FOCUSSED IMPROVEMENT

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Quality Award – Monthly Trophy

NEW Quality Award

QUALITY: Is never an accident

It is always the result of

High intention, intelligent

Direction, sincere effort

And skilful execution

Page 33: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Quality Demonstrated

Page 34: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

A

A

“Process Operator inside the

Value Chain”

Factory

Suppliers

Customers

Page 35: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Section A-A

Process Operator

Team Leader

Supervisor

Production

Manager

HR

ENGINEERING

QUALITY

MAINTENANCE

LOGISTICS

Page 36: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

The customer inside the factory is “The Process

Operator”

The people inside the office is there to serve the Process

Operator, and not the other way around.

Common Denominators for Generic Application:

Page 37: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

The “job of a supervisor” is to the Reduce variability

caused by man, machine and material.

“If you were able to reproduce the exact amount of variability

today as yesterday, then the performance for today will be the

same as yesterday.”

Therefore if variability was reduced to a high level of

consistency, you will be able to predict tomorrow’s performance

with a great deal of certainty.

Common Denominators for Generic Application:

Page 38: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

A man without information cannot take responsibility.

A man with information cannot help, but to take

responsibility.

If you measure something – and make it visually transparent, it

will improve without doing anything else.

Gather information with facts and data, applying the Pareto

Principles.

Common Denominators for Generic Application:

Page 39: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Go and see with your legs. (Going to the Gemba.)

Inspect what you Expect.

Don’t tell me – Show me.

Common Denominators for Generic Application:

Page 40: Inspired Lean Thinking and Kaizen through Leadership … · Inspired Lean Thinking and Kaizen through Leadership ... Kaizen culture … the way we do ... House keeping and Performance

Inside Your Toolbox Moving Forward

Imagine 2 Organisations:

The first is led by a leadership team whose members are

open with one another, passionately debate important

issues, and commit to clear decisions even if they disagree.

They call each other out when their behaviours or

performance needs correction, and they focus their

attention on the collective good of the organisation.

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Inside Your Toolbox Moving Forward

Imagine 2 Organisations:

The second is led by a leadership team whose members are

guarded and less than honest with one another. They hold back

during difficult conversations, feign commitment, and hesitate to

call one another on unproductive behaviours. Often they pursue

their own agendas rather than those of the greater organisation.

The question is: what kind of advantage would the first organisation

have over the second, and how much time and energy would it be

worth investing to make this advantage a reality?.... Patrick Lencioni – The Advantage

Before you start:

Be sure that your business/department is ready for the Kaizen Journey.