JAMES LYONSDirector of Operations

Boston Scientific Galway

The Challenges of Operational Excellence and the Achievement of

Sustainable High Performance

Some Context…

• Boston Scientific Corporation

• Medical Device Industry• $7.5B Revenue pa• 24,000 Employees• 12 Manufacturing Sites

• Boston Scientific Galway, Ireland

• 2,500 Employees• 40 Product Families• 2,200 UPNs• 50+ Technologies

• 6 Production Units

DES SES PTA SHP

SDC

PU Size: 250 - 450 peoplePCT

The Why?

This is a good site … Why do we need operational excellence?

• Commoditisation of products with sale price erosion- Gross Margin Pressure

• Highly competitive environment- Internal- External

• Role & long term viability of a manufacturing site?- 5, 10, 15+ years

Long Term Viability: How?Create great value for the company!

We need to be a great site in order to deliver great value!

How do we accomplish this ?a) Identify our core value to the company

(Customer)

b) Envision a future state where we maximise our value (Our Vision)

c) Develop a strategy to implement our vision

d) Implement!

The How?

• LeadershipGreat change requires great leadership… at all levels of the organisation

• Vision & StrategyWe need to envision & plan our future

• Operational ExcellenceWe need to be the best at what we do!

Methodology ?Model?

Lots of Tools & Models !

Model Selection?

5P Model

Shingo

EFQM

Balanced Scorecard

Hines Model

McKinsey 7S Model

Porter: Competitive Advantage Molloy-Delany ModelKotter: Change Management

Model Selection?Operational Excellence Implementation: Learn from the best!

A Great Place to Work delivering Exceptional Performance and

Innovative Products that Save and Improve Lives

Site Vision Statement

• A values & principles based foundation for all aspects of our operational excellence journey

• A methodology to translate our Vision into Results!

Site Vision & StrategyFramework to build & deliver our site vision

Some Things To Consider…Benchmarking: Do we know what good looks like?

Benchmarking is a critical part of the

process!

Quality

Safety

Reliability

Speed

Flexibility

Cost

ContinuousImprovement

Excellence

Some Things To Consider…ManufacturingExcellence

Some Things To Consider…The People Environment Is A Multiplier

Behavioural Standards

LeadersAnyone who has someone reporting to them

TeamsAll Teams; Direct & Matrix

IndividualsHow everyone interacts with each other

Some Things To Consider…Future State Culture

Behaviours Based On Values & Principles

Some Things To Consider…Do you have the right people on the bus?

It’s about being the best at what we do!

Everyone appropriately

involved in Continuous

Improvement

Highly EngagedHigh

Performance Culture

Best in Industry

Systems & Tools

Best in Industry Results

Principles & Behaviours Program

Some Things To Consider…Communication, Education & Alignment:What is Operational Excellence?

Some Things To Consider…Does everyone know what a good system looks like?

People

Some Things To Consider…Metrics: Measure What Matters!

QualityService

CostNew Products

PSome Things To Consider…Program Prioritisation & Implementation

Strategy Workbook[3] Site Vision [4] Values, Principles

& Behaviours[5] Systems & Tools

[6] Products & Technology

[11] Results[7] Dept. Purpose & Responsibilities

[8] Strategic Programs & Goals

[1] Approval & Revision Control

[2] Strategy Implementation Framework

[9] Leadership &Management

[10] Strategic Partners & Suppliers

Site StrategyImplementingStandardWork!

Site Strategy

Safety

Quality Trends

Product Lead Time

Cost Performance

Balanced Scorecard

In Closing…

We are focused on the process! … any recognition is a by-product of being Operationally Excellent!

• LeadershipGreat change requires great leadership… at all levels of the organisation

• Vision & StrategyWe need to envision & plan our future

• Operational ExcellenceWe need to be the best at what we do!