RPL WellingboroughKaizen Rally Presentation

Mark DrywoodWayne Ward

Welcome All

Ricoh UK Products Wellingborough Ltd – A History

RPL Wellingborough

Total RPLW Employees

(28.10.2014)

772005

Integrated into RPL

2006Supply ChainWarehouse

RPLW

1996Subsidiary

Of RPL 2006Ceased

Manufacturing

RPLWRUKSCM

CEVA(RUK’s Freight

Forwarder)ESPC

RPLW

4

1

52

3

6

10

7

11

8

912

14

13

RPLW Davy Close Shut Down in

2012Completing a £4.3M Benefit

14 into 1

Our Unique Position

Sales£3.38M

Financial Data in

FY2013

Operating Profit£520K(15%)

Volumes Up

8.02%

Charges down

10.24%Jan 2010 – Oct 2014

Forward Logistics

Machines

Reverse Logistics

Machines

Forward Logistics

Parts

Reverse Logistics

Parts TechnicalWorkshop

Contributionto RPL Profit

5%

GestetnerWellingborough

1971

This Site Established

1985

UK

RPL Stirling

RPL Telford

RUK Northampton

RPL Wellingborough

RUK Feltham

RUK Runcorn

RUK

Forward Logistics

RUK Northampton

RUK Feltham

RUK Runcorn

Stock Control maintaining stock

physically and via OracleVA = one stop shop. Stock

variance at last 2 stock takes less than £100 of

£2m value counted

Order KittingCombining multiple

parts with a configured machine order.

VA = Single delivery of multiple sourced items

to end customer

Satellite WarehousingHigh usage items

shipped direct from UK satellite

VA = More efficient supply of parts to end

customer and engineers.

Process Improvement

Joint Initiative e2e on configured

machines RUK/RPL/RESCM.

KF 6 & 8

KF 6, 11 & 12

KF 4, 9, 11 &

12

KF 6, 11 & 12

RUK

Reverse Logistics

RUK Northampton

RUK Feltham

RUK Runcorn

Protocol Partsaccepting returns and

sorting product from UK market.

VA = Revenue to RUK for returned product &

compliance to global environmental policy.

End to end tracking of parts.

Field Part Returnsaccepting returns and

sorting productVA = Using technical

knowledge to maximise residual value and establish recycling

opportunities.

Machine ReturnsAccepting, assessing and sorting machine returns.

VA = Using technical knowledge to maximise

residual value by redirecting machine back

into the market.

Process ImprovementSix Sigma Joint

Initiative e2e process improvement – Waste Returns – 87% cost

reduction

Eco-lineSorting & storing

products.VA = consolidating

defective machines to make suitable product

for process.

Environment Policies Segregation of waste to maximise residual value

following the 5R principles.

VA = Zero waste to landfill.

Revenue source.

KF 4 & 5

KF 4 & 5

KF 4 & 5

KF 6, 11 & 12

KF 4 & 6

KF 4, 5, 9 &

12

RUK

Technical Workshop

RUK Northampton

RUK Feltham

RUK Runcorn

Pre-configurationinstallation of hardware and software specific to customer

needs. VA = Reduced time for engineer to attend site

resulting in benefit to the end customer & cost saving to

RUK (~£50 per machine installed)

Machine Sanitisationdata cleansing to meet

specific customer needs. VA = robust factory approved product

enabling our customer increased business

revenue generating ~ £60k per month

Machine Cannibalisation

removal of spare parts from all machine(s)

deemed beyond economical repair.VA = cost saving &

faster turnaround time £4k per month

Machine ReturnsRefurbishing of

machines to varying standards.

VA = Developing technical process to

maximise market opportunities.

Dead on Arrival AnalysisAssessing and repairing

where economical viable.VA = Returning repaired machines back into the

market.Recycling BER machines

through appropriate waste streams.

KF 6 & 11

KF 5 & 6

KF 4, 6 & 11

KF 4 & 6

KF 6 & 11

RUK

Miscellaneous

RUK Northampton

RUK Feltham

RUK Runcorn

Technical Training SuiteRPLW offices facilitate front line training for

RUK representatives & Dealers.

VA = Shared initiatives between RUK / RPLW facilities departments

RUK InductionRPLW facilitating guided

tours of recycling operations and green

initiatives.VA = New employee

awareness of RFG Green Policies.

Events & Exhibitions Coordination

arranging supply of equipment, installation and decommissioning

VA = End to end management from customer request

Environment Policies

51 tonnes of CO2 savings ytd.

VA = 12% of RPL SMO target

FY14/15.

Continuous Improvement Philosophy

Fully integrated and deployed Kaizen, VSM, 5s and other Tools into the

ways of workingVA = Continuously getting

closer to the Customer

KF 6 & 11

KF 6

KF 4, 5, 9 &

12

KF 3

KF 1, 2, 6 - 12

Europe

RPL Wellingborough

Ricoh Ireland

RESCM

ESPC

NGC

RIF

Satellite WarehousingHigh usage items shipped direct from UK satellite

VA = Transportation savings ~ £1M per annum.

Box reuse savings of 21 tonnes

CO2 savings per annum.European deployment and

shared knowledge.

Green-line Wave 2 refurbishment of

machinesSold to Italy, Spain,

Estonia, Greece & CyprusVA = Supply of used machines to a wider

market.

Process Improvement

E2E Value stream and Perfect ConfigurationVA = European supply

chain process improvement.

Horizontal Deployment

Sharing green initiatives.

VA = Synchronisation of operations between

RIF, European Green Centres & RPL.

Events & Exhibitions Coordination

arranging supply of equipment & set up for Ricoh Europe at events

such at RWBO,. ATPVA = one stop shop

Returned Wasteaccepting returns and sorting

product from Germany, France, Holland, Belgium, Ireland and

Spain. Currently recycling around 20% of European

VolumesVA = revenue for removed

product & compliance to global environmental policy.

KF 4 & 6

KF 6 & 11

KF 9

KF 4, 9, 10, 11

& 12

KF 6

KF 4 & 5

Europe

Sanitisation Active Service- UK- Poland- Finland- Sweden- Portugal- France- Ireland- Denmark

Licences Sold- Italy- Germany- Belgium- Netherland

s- Norway

Trial Licences- Spain

Machine Sanitisation Supply of software to

manage process including training. Deployed to

Sweden, Denmark, Spain, France, Finland, Ireland, Italy, Norway, Belgium,

Portugal, Holland & Germany

Profit Generation (UK only)

RUK has generated a profit of

£194,286 between Jan 14 – Sept 14

KF 6 & 9

KF 11

Europe

Automatic Installation Method (AIM)

RPL Wellingborough

RESCM

Sweden

ItalySpain

Germany

No human intervention during machine

installationReduce Labour-Time for

the configuration process, via automated

installation of customer settings, firmware

updates and quality checks

Technical SkillsReduce technical skill requirements (training) during

configuration and as such improve the flexibility in

capacity

Customer Specific Instructions

Improve the process for CSI change request

on (tender) settings and provide a tool for

CSI communication between the OpCo’s

and RESCM

AIM PotentialIn the initial program,

there has been a saving of € 594,319.18 PA with a potential additional € 435.017.09 Between Apr 14 – Sept 14 26,450 units

have been processed.

AIM DeploymentRESCM deployed

Germany Satellite Deployed

Spain, Italy & Sweden In Development

USA

Automatic Installation Method (AIM)

REI

AIM project Horizontally deployed

into the USA with a Roll out plan created.

Currently awaiting start of product line

APAC

RCL

Machine SanitisationRCL has recognised this program and positively

supports future developments.

Environment Policies Reduced CO2 emissions by 32.7% since 2000, 6

years ahead of the Ricoh Japan Target of 30% Reduction by 2020

VA = Supporting Ricoh’s 2050 targets and driving

sustainability for our future.

RPLW Connected

Ricoh UK SCM / ITS / Marketing

Ricoh Europe

Ricoh Japan

Ricoh USA

EuropeanOp Co’sRPLT

RPLW

Title: Turnover of Adecco Associates within RPLW

Log No:K000344Manager Approval: M DrywoodName: Wayne Ward, Helen Burrill, Gordon Waller & Mark Drywood

Department: RPLW – Cross Functional Completion Date: NOV 14

KBS 1 Lowest Value Chain Cost with High Reliability

KBS 2 Rapid Growth of Added Value Independent Business

KBS 3 RPL & RIF European Operations Optimisation

1. Think Safety; Act Safely

2. Embrace 5S

3. Foster Employee Development

4. Be Environmentally Responsible

5. Model Corporate Social Responsibility

6. Deliver Quality

7. Breathe Fact-Based Decision-Making

8. Show Visual Management

9. Deploy Standardisation

10. Live KAIZEN

11. Pursue Super Low Cost

12. Implement Synchronisation

S

E

Q

C

D

Background

Helen BurrillAssistant HR

Officer

The Team

Wayne WardCI / H&S

Coordinator

Newly Developed Problem Solving Module

Project Chosen for Module

Chosen because of Turnover was higher than SLA

Module had a criteria to use certain tools GO

Mark DrywoodSite Manager

Gordon WallerTeam Leader

15 Word

TOOLS

In/ Out Frame

VOC5W & 1H

SwimlanePareto

Cause & Effect Fishbone

Step 1 Introduction of Problem

15 Word

TOOLS

In/ Out Frame

VOC5W & 1H

SwimlanePareto

Cause & Effect Fishbone

Problem StatementThe controllable turnover of labour within Wellingborough exceeds Adecco’s Service Level Agreement of <4% Pm.

(2012/13 = 5.63% AVGRFT = 33%

SLA = <4%Pm)

Turnover %

Controllable Turnover Result

Personal Reasons Voluntary Leaver

Associate did not enjoy work Voluntary Leaver

Other Agency Job Voluntary Leaver

Non Attendance / Absence Dismissal

Conduct Issues Dismissal

Associate not suitable Dismissal

Performance Issues Dismissal

Non-Controllable Turnover Result

Relocation Non Voluntary Leaver

Perm Job (Not Ricoh) Voluntary Leaver

Perm Job (In Ricoh) Reassigned

Job Assignment Finished Non Voluntary Leaver

Long Term Sickness Dismissal

Maternity Leave Voluntary Leaver

Goal StatementTo decrease controllable turnover within Wellingborough from 5.63% AVG to <4%Pm by Qtr 4 FY2014

WHAT

Step 1 Introduction of Problem

Non Controllable

Turnover

Outside of RPLW

Controllable Turnover by Vol. Leaving

Ricoh Employees

Out of Scope

In/ Out Frame15 Word

TOOLS

VOC5W & 1H

SwimlanePareto

Cause & Effect Fishbone

Period of 2012/13

for DataCollection

Dismissed forSuitability

Dismissed forConduct

Dismissed forNon Attendance

In Scope

RPLW

Dismissed forPerformance

Step 1 Introduction of Problem

Controllable Turnover Result

Personal Reasons Voluntary Leaver

Associate did not enjoy work Voluntary Leaver

Other Agency Job Voluntary Leaver

Non Attendance / Absence Dismissal

Conduct Issues Dismissal

Associate not suitable Dismissal

Performance Issues Dismissal

Non-Controllable Turnover Result

Relocation Non Voluntary Leaver

Perm Job (Not Ricoh) Voluntary Leaver

Perm Job (In Ricoh) Reassigned

Job Assignment Finished Non Voluntary Leaver

Long Term Sickness Dismissal

Maternity Leave Voluntary Leaver

Step 1 Introduction of Problem

Service Level Agreement

Turnover Rate & Training Times

% Received Emails & Change Notices vs Turnover Rate

SEQCD Results

Key Performance Indicators

VOC

15 Word

TOOLS

In/ Out Frame

5W & 1H

SwimlanePareto

Cause & Effect Fishbone

We want to achieve our SLA with Ricoh

Service Level Agreement I don’t get the right

people for the job

I spend a lot of my time training associates for the job just for them to leave

Turnover Rate and Training TimesI don’t get

informed of new arrivals until they are on-site

Emails & Change Notices

I want you to maintain SLA’s & KPI’s

SEQCD

JAN

FEB

MAR AP

R

MAY JUN

JUL

AUG

SEPT

OCT

NOV

DEC

JAN

FEB

MAR AP

R

MAY JUN

JUL

AUG

SEPT

OCT

NOV

DEC

2012 2013

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

RPLW Controllable Turnover by dismissal % for 2012 / 2013

Turnover % SLA%

Month / Year

%

1. Think Safety; Act Safely

2. Embrace 5S

3. Foster Employee Development

4. Be Environmentally Responsible

5. Model Corporate Social Responsibility

6. Deliver Quality

8. Show Visual Management

9. Deploy Standardisation

10.Live KAIZEN

11.Pursue Super Low Cost

12. Implement Synchronisation

S

E

Q

C

D

Step 2 Investigation of Facts

7. Breathe Fact-Based Decision-Making

0 Wee

ks1 W

eek

2 Wee

ks3 W

eeks

4 Wee

ks7 W

eeks

9 Wee

ks10

Wee

ks12

Wee

ks13

Wee

ks14

Wee

ks15

Wee

ks18

Wee

ks19

Wee

ks21

Wee

ks26

Wee

ks31

Wee

ks78

Wee

ks86

Wee

ks

0

1

2

3

4

5

6

7

8

RPLW Associates Length of Service Dismissed in 2012/13

Employees

Length of Service (Wks)

No.

Em

ploy

ees JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

RPLW Non Voluntary Turnover by Heads 2012 / 2013

2012 2013

Department Associate Data Comparison 2012 / 2013

Department Total Recruited Retained Dismissed Dept Turnover %

NIGHTS (XDOCK) 2 0 2 100%

ESNW 30 7 23 76%

EARLIES (XDOCK) 3 1 2 67%

LATES (XDOCK) 2 1 1 50%

Days (C2, ASSET, WAREHOUSE, HBOS & CONSUMABLES and OFFICE) 11 6 5 45%

48 15 33

WHAT WHEN

15% 6%

70%

3% 6%

Associate Turnover % SITE

DAYS

EARLIES

ESNW

LATES

NIGHTS

70%

WHERE

Step 2 Investigation of Facts

Statement Current Target

Turnover by reason of dismissal in ESNW with the first 12 weeks 76% <4%

New Goal StatementTo decrease turnover by reason of dismissal in ESNW within the first 12 weeks from 76% to <4%Pm by Qtr 4 FY2014

Goal StatementTo decrease controllable turnover within Wellingborough from 5.63% AVG to <4%Pm by Qtr 4 FY2014

Step 2 Investigation of Facts

Swimlane

15 Word

TOOLS

In/ Out Frame

VOC5W & 1H

Pareto

Cause & Effect Fishbone

Department Line Manager

Adecco

HRDepartment

Associate

Department Senior Op

RequestAssoc.

Acquire Assoc.

Arrive, Ask for

Line Manager

Site Tour &

Induction Book

Access Card & Atten. Profile

Complete Induction

Guide Book

Dept. Tour & Process Training

Dept. Tour & Process Training

2 Week review

w/ Assoc.

2 Week review w/ Line

Manager

12 Week review

w/ Assoc.

12 Week review w/ Line

Manager

DA

Y 0

DA

Y 1

-14

WE

EK

2

WE

EK

12

1. Think Safety; Act Safely

2. Embrace 5S

3. Foster Employee Development

4. Be Environmentally Responsible

5. Model Corporate Social Responsibility

8. Show Visual Management

9. Deploy Standardisation

10.Live KAIZEN

11.Pursue Super Low Cost

12. Implement Synchronisation

S

E

Q

C

D

7. Breathe Fact-Based Decision-Making

Step 2 Investigation of Facts

6. Deliver Quality

Customer/s Measurable Name KPI Linked to Scale of Measure

Measure Result

Measure Target

ESPC, End Users, Site Manager Picking Outbound on Time / Delivery / Scans PPPD 2 Wks 215 Parts Maintain

ESPC, End Users & Site Manager Packing Outbound on Time / Delivery / Scans PPPD 2 Wks 195 Parts Maintain

ESPC & Site Manager Put away Inbound on Time / Delivery / Scans PPPD 2 Wks 190 Parts Maintain

ESPC, End Users & Site Manager Faults Per Million Quality 2 Wks 314 Parts Maintain

Site Manager Cost Recovery Cost 2 Wks 135% Maintain

Adecco Service Level Agreement SLA 1 Mnths Not Achieving SLA Achieve SLA

T/L Turnover Rate Cost 12 Mnths 76% <4%

HR Emails & Change Notices Quality 12 Mnths 0% 100%

Snr Op Training Times Cost 2 Wks 2 Wks 1 Wk

Step 3 Root Cause Analysis

Fishbone

Swimlane

15 Word

TOOLS

In/ Out Frame

VOC5W & 1H

Pareto

Cause & Effect

Ease of making Change Decisions

Personal Judgement instead of

DataOutdated or

Not fully deployed

support Docs – Training,

Review etc

Adecco not challenging

Decisions against agreed

procedures

We don’t Set Person

Specifications for our Roles

Disciplinary Process not fully

deployed

Absence Management Process not

followed

We don’t communicate the

Person Specifications

Root Causes

WHY

Step 3 Root Cause Analysis

Disciplin

ary Pro

cess

Support

Docs

Person Sp

ec.

Ease

of chan

ge deci

sions

Personal

Judgemen

t

No Challen

ge0

5

10

15

20

25

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CE Score Acc %

Cause & Effect

Pareto Swimlane

15 Word

TOOLS

In/ Out Frame

VOC5W & 1H

Fishbone

Top Scores from Cause & Effect

And Pareto

Use Personal Judgement

Adecco notChallenging

decisions

Ease of makingChange

decisions

We don’t Communicate Person Spec.

Outdated or Not

fully deployedSupport Docs

Disciplinary Process not

fully deployed

Step 4 Proposed Improvements

Root Cause Solution Time Risk Decision

We use Personal Judgement instead of data for our decision making in Reviews

Improve the 2 week and 12 week Associate review by introducing actual process and Ktime data

The Support Documentation is not fully deployed or is outdated – Training Docs, Induction Guides Etc

To streamline the Standard Induction Booklet and improve the delivery process as well as ensuring that ESNW has measurable Training Documentation

We don’t communicate the requirements of our Person Specification

Set specification and initiate Associate Testing at the Adecco Premises and only recruit Associates that achieve target

• Ease of making Change Decisions• Adecco is not challenging the Decisions

made against agreed procedures

Re-clarify and create a standardised, visualised process with clear ownership for the recruitment and dismissal of Associates

Disciplinary Process for Associates not fully Deployed

To ensure Adecco are deploying process consistently

Step 5 Implementation of Improvement

5W & 1H

Swimlane

15 Word

TOOLS

In/ Out Frame

VOC

Pareto

Cause & Effect Fishbone

KF What Who When

Move admin activities to Adecco in day Zero zone Wayne Ward & Helen Burrill Mar 2014

Request and complete a selection of Adecco’s In-House tests Wayne Ward Jan 2014

Agree Person specification and grade for each job Wayne Ward, Mark Drywood, Charlotte Dickerson & Helen Burrill Mar 2014

Create streamline quality version of Induction Booklet w/ Document Control Wayne Ward Jan 2014

Investigated Training Process in ESNW and ensured standard deployment

Wayne Ward, Mark Dorrian, Helen Burrill, Glenn Jones & Mario Draine Mar 2014

Improve the 2 & 12 week Review sheets to rate actual performance against target

Wayne Ward, Mark Dorrian & Helen Burrill Mar 2014

12

6

6

3

9

7

Step 6 Confirmation of Effect

Problem StatementThe controllable turnover of labour within Wellingborough exceeds Adecco’s Service Level Agreement of <4% Pm.

(2012/13 = 5.63% AVGRFT = 33%

SLA = <4%Pm)

Goal StatementTo decrease controllable turnover within Wellingborough from 5.63% AVG to <4%Pm by Qtr 4 FY2014

AchievedTurnover by reason of dismissal in ESNW within the first 12 weeks is now at an average of 1.38%

Statement Current Target AchievedTurnover by reason of dismissal in ESNW with the first

12 weeks 76% <4% 1.38%1.38%

Step 7 System Improvement

Achieved

Problem

Station Evaluation

Check Process

Ownership & Doc

Controlled Support

Processes

Associate VOC

2 & 12 Week Review Sheet

Sign Off

SUSTAINEDSUSTAINEDSUSTAINEDSUSTAINED

Step 8 Horizontal Deployment

What Where Who Responsible Implementable When

Deploy Recruitment, on-boarding and Review Process

Asset Recovery, C2, Cons & X Dock M Dorrian M Drywood Yes Mar 2014

Create and deploy a detailed &

Measureable Training Plan

Asset Recovery, C2, Cons & X Dock M Dorrian M Drywood Yes Qtr 1 FY2015

Create and deploy Measurable Review

process for 2 week and 12 week review

Asset Recovery, C2, Cons & X Dock M Dorrian M Drywood Yes Qtr 1 FY2015

Introduce testing and the Grade standard

into recruitment process

RPLT HR TelfordAdecco Telford H Burrill Yes Oct 14

Customer/s Measurable Name Measure Before Measure Target Measure Achieved

ESPC, End Users, Site Manager Picking 215 Parts Maintain

ESPC, End Users & Site Manager Packing 195 Parts Maintain

ESPC & Site Manager Put away 190 Parts Maintain

ESPC, End Users & Site Manager Faults Per Million 314 Parts Maintain

Site Manager Cost Recovery 135% Maintain

Adecco Service Level Agreement Not Achieving SLA Achieve SLA 9 out of 11 months achieved

T/L Turnover Rate 76% <4% 1.38% Average

HR Emails & Change Notices 0% 100% 100%

Snr Op Training Times 2 Wks 1 Wk 1 Wk

Step 9 Summary of Improvement JA

N

FEB

MAR AP

R

MAY JUN

JUL

AUG

SEPT

OCT

NOV

DEC

JAN

FEB

MAR AP

R

MAY JUN

JUL

AUG

SEPT

OCT

NOV

DEC

2012 2013

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

RPLW Controllable Turnover by dismissal % for 2012 / 2013

Turnover % SLA%

JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC2014

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

RPLW Controllable Turnover by dismissal % for 2014

Turnover % SLA %

JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

RPLW Non Voluntary Turnover by Heads 2012 / 2013 / 2014

2014 2013 2012

Benefit Before After Difference

Lead Time Saving from the reduction of Admin Activities 1642.52 Hrs 1480.22 Hrs 162.3 Hrs

Potential not to have to Train “ Warehouse Essential Skills” 1 Day (8 Hrs) 0 Days (0 Hrs) 1 Day (8 Hrs)

Remaining 20% on Pareto Analysis The remaining 20% was challenged along with the top 80% of the Pareto Analysis

DA

Y 0

DA

Y 0

Step 10 Remaining Issues & Future Plans

What Who WhenActions from Step 8 M Dorrian & M Drywood Qtr 1 2015

Discuss w/ Adecco 4% Per Month SLA if achievable

H Burrill & W Ward By Qtr 4 2015

Partner with Adecco to improve the quality of the data they are suppling

H Burrill & W Ward By Qtr 4 2015

1. Think Safety; Act Safely

2. Embrace 5S

3. Foster Employee Development

4. Be Environmentally Responsible

5. Model Corporate Social Responsibility

8. Show Visual Management

9. Deploy Standardisation

10.Live KAIZEN

11.Pursue Super Low Cost

12. Implement Synchronisation

S

E

Q

C

D

7. Breathe Fact-Based Decision-Making

6. Deliver Quality

UK

RPL Wellingborough

RPLW Contribution

Based on our learning from one small market place facility, RPLW is contributing to the creation of global value and competitive advantage for Ricoh Family Group.

Thank you for your attention.