pat kealy - keynote: the abbott journey to the shingo prize
DESCRIPTION
Operations Manager, Abbott Vascular, Clonmel, Ireland (Winners of the Overall Shingo Prize)TRANSCRIPT
PAT KEALYVascular Division Operations Manager
Abbott Ireland
The Abbott Journey to the Shingo Prize
Abbott Vascular Clonmel
Clonmel
What Do We Do?
What Do We Do?
What Do We Do?
MULTI-LINK VISION MULTI-LINK ZETA XIENCE PRIMEXience V
DES – Drug Eluting StentBMS – Bare Metal Stent
XIENCE Xpedition
ABSORB
What Do We Do?
Our Quality Policy
Built as if Intended for My FamilyWe celebrate this with ourCustomer Appreciation Day• Worldwide event, 2013 theme
was “Enhancing Life Together”
Operational Excellence Timeline
2012 201320112008 201020092004 20062005 2007
BEFORE AFTER
LPIMoveto Zero
Lean 14 step
Six Sigma
Lean & 5S
Std Work
Operational Excellence Timeline
2008 201020092004 20062005 2007 2012 20132011
LPIMoveto Zero
Lean 14 step
Six Sigma
Lean & 5S
Std Work
Class A
A3VSMProduct Strategies
OLSAAuto.
HPO14-step
Step 12 Design
Approval of Line Layout
Step 10 Improving
Line Flexibility
Step 10 Develop Standard
Step 5 Pilot Area Selection
Step 4 Initiating the Team
Step 3 Team
Member Selection
Step 2 Objectives
Step 1 Critical
Elements of Success
Step 9 Activity of
the Associate
Step 8 Line/Cell
Vision
Step 7 Group Tech.
Activity
Step 6 Activity of
the Product
Step 14 Business
Case Development
Step 13 Performance Measurement
14 S
tep
Proc
ess
500 to 1500 employees
Cultural Enablers – HPO (High Performing Organisation)
2010 Culture Survey results helped shape the direction of the site
Perceived to be strongest at• improving objective business metrics• meeting corporate expectations• delivering to customers
Opportunities existed in• fostering great working relationships• instilling confidence that this is a great place to build a career• coaching people to develop their capabilities for the long term
High-Achieving and High-Performing
I involve each member of my team in decisions that affect their work environment
I regularly use performance feedback
Members of my work group treat each other with respect
My work group and I consistently generate and implement improvement ideas
4 HPO statements developed for our people managers
HAO HPO
I regularly use performance
feedback
I involve each member of my team
in decisions that affect their work
environment
Members of my work group treat each other with
respect
My work group and I consistently generate and
implement improvement ideas
Link to Operational Excellence
Operational Excellence Timeline
20112008 201020092004 20062005 2007 2012 2013
LPIMoveto Zero
Lean 14 step
Six Sigma
Lean & 5S
Std Work
Class A
A3VSMProduct Strategies
OLSAAuto,
HPO14-step
WSD6-Box
Shingo
Operational Excellence Gap Analysis
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Cul
ture
Sen
ior
Lead
ersh
ip E
duca
tion
Tra
inin
g &
Coa
chin
g
Cul
ture
Sen
ior
Lead
ersh
ip E
mpo
wer
men
t&
Invo
lvem
ent
Cul
ture
Sen
ior
Lead
ersh
ip E
nviro
nmen
tal
& S
afet
y S
yste
ms
Cul
ture
Ope
ratio
ns E
duca
tion
Tra
inin
g &
Coa
chin
g
Cul
ture
Ope
ratio
ns E
mpo
wer
men
t &In
volv
emen
t
Cul
ture
Ope
ratio
ns E
nviro
nmen
tal &
Saf
ety
Sys
tem
s
Cul
ture
Sup
ply
Edu
catio
n T
rain
ing
&C
oach
ing
Cul
ture
Sup
ply
Em
pow
erm
ent &
Invo
lvem
ent
Cul
ture
Sup
ply
Env
ironm
enta
l & S
afet
yS
yste
ms
Cul
ture
Man
agem
ent E
duca
tion
Tra
inin
g&
Coa
chin
g
Cul
ture
Man
agem
ent E
mpo
wer
men
t &In
volv
emen
t
Cul
ture
Man
agem
ent E
nviro
nmen
tal &
Saf
ety
Sys
tem
s
Cul
ture
Cus
tom
er R
elat
ions
Edu
catio
nT
rain
ing
& C
oach
ing
Cul
ture
Cus
tom
er R
elat
ions
Em
pow
erm
ent &
Invo
lvem
ent
Cul
ture
Cus
tom
er R
elat
ions
Env
ironm
enta
l & S
afet
y S
yste
ms
Cul
ture
Pro
duct
& S
ervi
ce D
ev E
duca
tion
Tra
inin
g &
Coa
chin
g
Cul
ture
Pro
duct
& S
ervi
ce D
evE
mpo
wer
men
t & In
volv
emen
t
Cul
ture
Pro
duct
& S
ervi
ce D
evE
nviro
nmen
tal &
Saf
ety
Sys
tem
s
Impr
ovem
ent S
enio
r Le
ader
ship
Con
tinuo
us P
roce
ss Im
prov
emen
t
Impr
ovem
ent O
pera
tions
Con
tinuo
usP
roce
ss Im
prov
emen
t
Impr
ovem
ent S
uppl
y C
ontin
uous
Pro
cess
Impr
ovem
ent
Impr
ovem
ent M
anag
emen
t Con
tinuo
usP
roce
ss Im
prov
emen
t
Impr
ovem
ent C
usto
mer
Rel
atio
nsC
ontin
uous
Pro
cess
Impr
ovem
ent
Impr
ovem
ent P
rodu
ct &
Ser
vice
Dev
Con
tinuo
us P
roce
ss Im
prov
emen
t
Alig
nmen
t Sen
ior
Lead
ersh
ip
Alig
nmen
t Ope
ratio
ns
Alig
nmen
t Sup
ply
Alig
nmen
t Man
agem
ent
Alig
nmen
t Cus
tom
er R
elat
ions
Alig
nmen
t Pro
duct
& S
ervi
ce D
ev
Res
ults
Qua
lity
Res
ults
Cos
t / P
rodu
ctiv
ity
Res
ults
Del
iver
y
Res
ults
Cus
tom
er S
atis
fact
ion
Res
ults
Peo
ple
Dev
elop
men
t
Weighted Average 53% (534 points)
2012 AssessmentOperational Excellence Gap Analysis
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Culture
Senio
r Lead
ers
hip
Education
Tra
inin
g &
Coachin
g
Culture
Senio
r Lead
ers
hip
Em
pow
erm
ent
& Involv
em
ent
Culture
Senio
r Lead
ers
hip
Environm
enta
l
& S
afe
ty S
yste
ms
Culture
Opera
tions E
ducation T
rain
ing &
Coachin
g
Culture
Opera
tions E
mpow
erm
ent &
Involv
em
ent
Culture
Opera
tions E
nvironm
enta
l &
Safe
ty S
yste
ms
Culture
Supply
Education T
rain
ing &
Coachin
g
Culture
Supply
Em
pow
erm
ent &
Involv
em
ent
Culture
Supply
Environm
enta
l &
Safe
ty
Syste
ms
Culture
Managem
ent E
ducation T
rain
ing
& C
oachin
g
Culture
Managem
ent E
mpow
erm
ent &
Involv
em
ent
Culture
Managem
ent E
nvironm
enta
l &
Safe
ty S
yste
ms
Culture
Custo
mer
Rela
tions E
ducation
Tra
inin
g &
Coachin
g
Culture
Custo
mer
Rela
tions
Em
pow
erm
ent &
Involv
em
ent
Culture
Custo
mer
Rela
tions
Environm
enta
l &
Safe
ty S
yste
ms
Culture
Pro
duct &
Serv
ice D
ev E
ducation
Tra
inin
g &
Coachin
g
Culture
Pro
duct &
Serv
ice D
ev
Em
pow
erm
ent &
Involv
em
ent
Culture
Pro
duct &
Serv
ice D
ev
Environm
enta
l &
Safe
ty S
yste
ms
Impro
vem
ent S
enio
r Leaders
hip
Continuou
s P
rocess Im
pro
vem
ent
Impro
vem
ent O
pera
tions C
ontinuous
Pro
cess Im
pro
vem
ent
Impro
vem
ent S
upply
Continuous P
rocess
Impro
vem
ent
Impro
vem
ent M
anagem
ent C
ontinuous
Pro
cess Im
pro
vem
ent
Impro
vem
ent C
usto
mer
Rela
tions
Continuou
s P
rocess Im
pro
vem
ent
Impro
vem
ent P
roduct &
Serv
ice D
ev
Continuou
s P
rocess Im
pro
vem
ent
Alig
nm
ent S
enio
r Leaders
hip
Alig
nm
ent O
pera
tions
Alig
nm
ent S
upply
Alig
nm
ent M
anagem
ent
Alig
nm
ent C
usto
mer
Rela
tions
Alig
nm
ent P
roduct &
Serv
ice D
ev
Results Q
ualit
y
Results C
ost / P
roductivity
Results D
eliv
ery
Results C
usto
mer
Satisfa
ction
Results P
eo
ple
Develo
pm
ent
Weighted Average 53% (534 points)
Dimension: Cultural EnablersContinuous
Process Improvement
EnterpriseAlignment
Results
Seeing Reality!!
Easy Wins (Logic and Intuition)
Low Hanging Fruit
(Tools)
Good Engagement
(Systems)
True Lean Full Engagement
(Principles)
• The Shingo Model aided in setting the direction for the roadmap
Operational Excellence
Operational Excellence
• For Clonmel to progress along its Continuous Improvement journey, a vision and roadmap was required
Operational Excellence Timeline
2012 201320112008 201020092004 20062005 2007
Operational Excellence Gap Analysis
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Cu
lture
Se
nio
r L
ea
de
rsh
ip E
du
catio
nT
rain
ing
& C
oa
chin
g
Cu
lture
Se
nio
r L
ea
de
rsh
ip E
mp
ow
erm
en
t&
Invo
lve
me
nt
Cu
lture
Se
nio
r L
ea
de
rsh
ip E
nvi
ron
me
nta
l&
Sa
fety
Sys
tem
s
Cu
lture
Op
era
tion
s E
du
catio
n T
rain
ing
&C
oa
chin
g
Cu
lture
Op
era
tion
s E
mp
ow
erm
en
t &In
volv
em
en
t
Cu
lture
Op
era
tion
s E
nvi
ron
me
nta
l &S
afe
ty S
yste
ms
Cu
lture
Su
pp
ly E
du
catio
n T
rain
ing
&C
oa
chin
g
Cu
lture
Su
pp
ly E
mp
ow
erm
en
t &In
volv
em
en
t
Cu
lture
Su
pp
ly E
nvi
ron
me
nta
l & S
afe
tyS
yste
ms
Cu
lture
Ma
na
ge
me
nt E
du
catio
n T
rain
ing
& C
oa
chin
g
Cu
lture
Ma
na
ge
me
nt E
mp
ow
erm
en
t &In
volv
em
en
t
Cu
lture
Ma
na
ge
me
nt E
nvi
ron
me
nta
l &S
afe
ty S
yste
ms
Cu
lture
Cu
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me
r R
ela
tion
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du
catio
nT
rain
ing
& C
oa
chin
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tion
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en
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tion
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ron
me
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l & S
afe
ty S
yste
ms
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lture
Pro
du
ct &
Se
rvic
e D
ev
Ed
uca
tion
Tra
inin
g &
Co
ach
ing
Cu
lture
Pro
du
ct &
Se
rvic
e D
ev
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po
we
rme
nt &
Invo
lve
me
nt
Cu
lture
Pro
du
ct &
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rvic
e D
ev
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viro
nm
en
tal &
Sa
fety
Sys
tem
s
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rove
me
nt S
en
ior
Le
ad
ers
hip
Co
ntin
uo
us
Pro
cess
Imp
rove
me
nt
Imp
rove
me
nt O
pe
ratio
ns
Co
ntin
uo
us
Pro
cess
Imp
rove
me
nt
Imp
rove
me
nt S
up
ply
Co
ntin
uo
us
Pro
cess
Imp
rove
me
nt
Imp
rove
me
nt M
an
ag
em
en
t Co
ntin
uo
us
Pro
cess
Imp
rove
me
nt
Imp
rove
me
nt C
ust
om
er
Re
latio
ns
Co
ntin
uo
us
Pro
cess
Imp
rove
me
nt
Imp
rove
me
nt P
rod
uct
& S
erv
ice
De
vC
on
tinu
ou
s P
roce
ss Im
pro
vem
en
t
Alig
nm
en
t Se
nio
r L
ea
de
rsh
ip
Alig
nm
en
t Op
era
tion
s
Alig
nm
en
t Su
pp
ly
Alig
nm
en
t Ma
na
ge
me
nt
Alig
nm
en
t Cu
sto
me
r R
ela
tion
s
Alig
nm
en
t Pro
du
ct &
Se
rvic
e D
ev
Re
sults
Qu
alit
y
Re
sults
Co
st /
Pro
du
ctiv
ity
Re
sults
De
live
ry
Re
sults
Cu
sto
me
r S
atis
fact
ion
Re
sults
Pe
op
le D
eve
lop
me
nt
Weighted Average 53% (534 points)
LPIMoveto Zero
Lean 14 step
Six Sigma
Lean & 5S
Std Work
Class A
A3VSMProduct Strategies
OLSAAuto.
HPO14-step
WSD6-Box
CI HuddlesSup Ex
Shingo
People Development
Operational Excellence Timeline
2012 201320112008 201020092004 20062005 2007
Supervisor Standard Work
7:50- 9:00 9:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:20
Pre shift comms with Lead Opto ensure alignment on daily plan / tasks
(e.g. Lot Change time, Training, Op certs, CI Huddle, etc…)
DBTH (Day BY The Hour) Utilisation Check Line Performance Hourly with Line Lead - Support and take action as needed and update
on eDBTH
DBTH Utilisation Same as 09.00:-10:00
DBTH Utilisation Same as 09.00:-10:00
DBTH Utilisation Same as 09.00:-10:00
DBTH Utilisation Same as 09.00:-10:00
DBTH Utilisation Same as 09.00:-10:00
DBTH Utilisation Same as 09.00:-10:00
Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins
RCA Work
Duration: 0 - 5 min Duration: 10 mins Duration: 1 Hr 5 mins Duration: 15 mins
Rearrange station headcount and coverage if necessary
Meet with Lead OperatorReview changes to daily plan based on morning
meeting and first hour performance
MeetingsHR 1-1, Lean Review, 1-1's, CI Huddle and Comm Huddle, Safety, Staff, Others
End of shift DBTH check(reconciliation ,etc…)
Over 2 week cycle there will be more meetings on days and more RCA on evenings
Check Voice mailFollow up with Line on first hour productionMake corrections where necessary and give
feedback if positive
Station Assignment PlanCreate plan for next day including planned
holidays other known absences (training, etc..)
Mon Tue Wed Thu FriOperator Coaching
Standard Work Check
Improvement Project (Yield, SMED, etc…) - DMAIC
5S
1st & Last Hr performance As required daily or review once every 2 weeks
Line Trend Analysis As required daily or review once every 2 weeks
UPPH Analysis As required daily or review once every 2 weeks
Lot CT As required daily or review once every 2 weeks
MUV As required daily or review once every 2 weeks
CI Huddle Work As required daily or review once per week
LPIMoveto Zero
Lean 14 step
Six Sigma
Lean & 5S
Std Work
Class A
A3VSMProduct Strategies
OLSAAuto.
HPO14-step
WSD6-Box
Sup ExShingo
Connect ‘Dots
Std workCI Huddles
Connecting the Dots
Connecting the Dots
Connecting the Dots
Connecting the Dots• Links our performance to our strategic themes• Aligning performance measures to the
delivery of our strategy
Product
Operational Excellence Timeline
2012 201320112008 201020092004 20062005 2007
LPIMoveto Zero
Lean 14 step
Six Sigma
Lean & 5S
Std Work
Class A
A3VSMProduct Strategies
OLSAAuto.
HPO14-step
WSD6-Box
Sup ExShingo
Connect ‘Dots
Std workCI Huddles
Supervisor Standard Work
7:50- 9:00 9:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:20
Pre shift comms with Lead Opto ensure alignment on daily plan / tasks
(e.g. Lot Change time, Training, Op certs, CI Huddle, etc…)
DBTH (Day BY The Hour) Utilisation Check Line Performance Hourly with Line Lead - Support and take action as needed and update
on eDBTH
DBTH Utilisation Same as 09.00:-10:00
DBTH Utilisation Same as 09.00:-10:00
DBTH Utilisation Same as 09.00:-10:00
DBTH Utilisation Same as 09.00:-10:00
DBTH Utilisation Same as 09.00:-10:00
DBTH Utilisation Same as 09.00:-10:00
Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins
RCA Work
Duration: 0 - 5 min Duration: 10 mins Duration: 1 Hr 5 mins Duration: 15 mins
Rearrange station headcount and coverage if necessary
Meet with Lead OperatorReview changes to daily plan based on morning
meeting and first hour performance
MeetingsHR 1-1, Lean Review, 1-1's, CI Huddle and Comm Huddle, Safety, Staff, Others
End of shift DBTH check(reconciliation ,etc…)
Over 2 week cycle there will be more meetings on days and more RCA on evenings
Check Voice mailFollow up with Line on first hour productionMake corrections where necessary and give
feedback if positive
Station Assignment PlanCreate plan for next day including planned
holidays other known absences (training, etc..)
Mon Tue Wed Thu FriOperator Coaching
Standard Work Check
Improvement Project (Yield, SMED, etc…) - DMAIC
5S
1st & Last Hr performance As required daily or review once every 2 weeks
Line Trend Analysis As required daily or review once every 2 weeks
UPPH Analysis As required daily or review once every 2 weeks
Lot CT As required daily or review once every 2 weeks
MUV As required daily or review once every 2 weeks
CI Huddle Work As required daily or review once per week
Operational Excellence Timeline
KNOW-HOW KNOW-WHYPrinciple focusTools & Technique focus
KNOW-HOWSystems focus
2012 2013
CI Huddles
2011
Sup Ex
HPO
Connect ‘Dots
Shingo
WSD
2008 2010
Class A
2009
A3Product Strategies
VSM6-Box
Std work
Lean 14 step
2004 2006
Six Sigma
LPI
2005 2007
Lean & 5S
Std Work
14-step OLSAAuto.
Evident when we look back that our journey has mirrored a classic Operational Excellence path:1) Initially the primary focus was on tools2) A system focus then brought alignment to where and how we use the tools3) Our latter years have focused on the cultural enablers, embedding the Shingo Principles
Moveto Zero
A Lot Done….
CO - Completed NC - Overdue (not completed by due date)
WIP - Work in Progress N/A - N/A for current week 31 30 29 28 27
Area Task Owner Frequency
Month End
ActivityDue Date
Post Month End Activity Due Date 2
9-Jul-13
22-Jul-13
15-Jul-13
08-Jul-13
01-Jul-13
AP - Journals & Rec list & review month end files ALL Monthly x Day 10 WIP CO WIP NC WIP- Prepare AP & Deviation Metrics & Review RO/MC Monthly x Day 4 CO N/A N/A N/A CO- Vendor Payment Run & Review CS/RO/MC Fortnightly x Day 6 (Approx) N/A CO N/A CO N/A- VAT Return RO/MC Bi-Monthly x 19th N/A N/A CO N/A N/A- Vies & Intrastat Return RO/MC Monthly x 25th WIP NC N/A N/A N/A- 46G (To Sligo) RO Annually x 25th Feb N/A N/A N/A N/A N/A- Creditors Reconciliations (Top 10 monthly / 100% quarterly)) CS/RO/MC Monthly x Day 15-20 WIP WIP WIP N/A N/A- Review PO Edit Reports MC Monthly x Day 10 N/A N/A N/A CO N/A- Review Vendor Master Edit Report MC Monthly x Day 10 N/A N/A CO N/A N/A- PO Audit MC Quarterly x Day 12 N/A N/A N/A CO N/A- Vendor Master Maintenance MC/RO Bi - Annually x Jan/Jul N/A N/A N/A N/A N/A- Denied Party Screening MC Quarterly x Jan/Apr/Jul/Oct NC N/A N/A N/A N/A
Inter Co - Forecast Netting Payables/Receivables CS Monthly x Day 5 N/A N/A N/A CO N/A- Pre-Netting from Sligo, confirm CS Monthly x Day 10 (Approx) N/A N/A CO N/A N/A- Final Netting from Sligo, confirm and post CS Monthly x Day 15-20 N/A CO N/A N/A N/A
Payroll - Prepare Payroll Metrics & Review AM/GQ/MC Monthly x Day 4 CO N/A N/A N/A CO- Process Merit Increase for all employees & review AM/GQ/MC Annually x Annually - 1 Apr N/A N/A N/A N/A N/A- Process Bonus & Review AM/GQ/MC Annually x Annually - 10 Mar N/A N/A N/A N/A N/A- Monthly Payroll Processing AM/GQ/MC Monthly x Day 10 (Approx) N/A N/A N/A CO N/A- Fortnightly Payroll Processing AM/GQ/MC Fortnightly x Day 19 (Approx) CO N/A CO N/A CO- P30 Preparation & Submission to Revenue GQ/MC Monthly x Day 10 (Approx) N/A N/A N/A N/A CO- ESPP contributions submitted to Sligo AM Monthly x Day 5 N/A N/A N/A CO N/A
July
Finance Standard Work Activities
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
Mar
ker S
crap
Rat
e
1. Before After
16 32 48 64 80 96 112 128 144 160 176 192 208 224
Sample
Individual Measurement of Marker Scrap Rate
