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9/20/2011 1 Transformation Simpler Transformation Versus Execution h e a t e r s | s e n s o r s | c o n t r o l l e r s Tom LaMantia Agenda Watlow Watlow Lean History Epiphany 1 - People Epiphany 2 - Process Epiphany 3 - Purpose Results h e a t e r s | s e n s o r s | c o n t r o l l e r s

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  • 9/20/2011

    1

    TransformationSimpler

    Transformation Versus

    Execution

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    Tom LaMantia

    Agenda

    WatlowWatlow Lean HistoryEpiphany 1 - PeopleEpiphany 2 - ProcessEpiphany 3 - PurposeResults

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

  • 9/20/2011

    2

    Watlow OverviewFounded in 1922 by Louis Desloge Sr.Family-owned, third generation120 family shareholdersFounded to serve the shoe industryDesign and mfg. thermal solutions industrial heaters, sensors, and controllersOver 2,000 team members

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    Watlow ProductsHeaters ControllersSensors

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

  • 9/20/2011

    3

    The Thermal ExpertsQuick turn around, custom engineered thermal solutions

    Over 400 thermal engineers and specialists

    Semiconductor Processing EnergyDiesel

    Life Sciences

    Processing Industries

    Diesel Emissions

    Packaging

    Foodservice Equipment

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    Aerospace

    Global Organization

    11 manufacturing facilities in 6 countries22 sales offices in 14 countries3 Technology Centers

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    A global network of sales engineers, account managers and technical support specialists

  • 9/20/2011

    4

    Brief Lean Journey HistoryWe went big bang!

    Enterprise VSALine Of Business VSAs

    Implemented Basics7 week cycle (Kaizen)Employment PolicyEvent Pace (N/10)

    ResultsPockets Of ImprovementDifficulty Sustaining GainsVery Basic Tools Based UsedManufacturing BasedImprovement Top Down DrivenInsufficient Pre event planning

    2005

    ply to

    ols

    Borro

    wing t

    hen

    Devel

    oping

    Techn

    ique

    Developin

    g

    New Beli

    efsFo

    rever

    Impro

    ve

    Cultu

    re Ch

    ange

    prov

    emen

    ts in

    HD

    , Q, C

    , D

    Changing

    ChangingValues

    Understanding &

    EmbeddingPrinciples

    ( )Dedicated Resources (3%)Strategy Deployment (Level 1 & 2)

    Value Streams Begin To Form (Factory)Value Stream Mgmt

    Lean AccountingS&OPBox Score/Visual Mgmt

    Defined Cultural Future State - Watlow WayLean Work Begins in Demand CreationWatlow Business System (version 1)Global Improvement Activity

    Insufficient Pre event planningVery Mechanical In Our Approach

    Improved DisciplineImproved Results But InconsistentSome Sustainment Being RecognizedAdmin Processes IncludedTools Added to Tool Belt (eg 3P)Recognized the Value of CultureTools and Kaizen Based Improvement Only

    2007

    Began to understand the WBS as a System

    ChangingActions

    Apply

    Imp

    Introduction Year 1-2

    IntenseYear 3-5

    Development Year 5 - 10

    ChangingHabits

    ChangingActions

    Apply

    tools

    Borro

    wing t

    hen

    Deve

    loping

    Tech

    nique

    Develop

    ing

    New Bel

    iefsFo

    rever

    Impr

    ove

    Cultu

    re Ch

    ange

    Impr

    ovem

    ents

    in H

    D, Q

    , C, D

    Introduction Year 1-2

    IntenseYear 3-5

    Development Year 5 - 10

    ChangingHabits

    ChangingValues

    Understanding &

    EmbeddingPrinciples

    provege

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    Global Improvement ActivityStrategy Deployment 2 Level 1,2 and 3Mission ControlAME Conference TorontoLean NPD BeginsStrategy DevelopmentWatlow Business System (Current)Managing For Daily ImprovementLean Leadership Today

    2008 Began to understand the WBS as a SystemBegan Linking Processes TogetherImprovement Driven From Top Down & From The Bottom Up People DevelopmentBegan to Understand The Role ofStrategy - Purpose

    Tools & Technique Based ImprovementTransformation vs executionBetter understood WBS failure modes

    ChangingActions

    Apply

    tools

    Borro

    wing t

    hen

    Devel

    oping

    Tech

    nique

    Develop

    ing

    New Bel

    iefsFo

    rever

    Impro

    Cultu

    re Ch

    ange

    Impr

    ovem

    ents

    in H

    D, Q

    , C, D

    Introduction Year 1-2

    IntenseYear 3-5

    Development Year 5 - 10

    ChangingHabits

    ChangingValues

    Understanding &

    EmbeddingPrinciples

    Epiphany 1

    People

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

  • 9/20/2011

    5

    Epiphany 1 - People

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    Box 1 Reasons For Actions

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

  • 9/20/2011

    6

    Box 2 Current State

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    Box 3 Future State

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

  • 9/20/2011

    7

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    Our Culture

    Box 9 Insights - People = Our Culture

    Our Culture

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

  • 9/20/2011

    8

    Epiphany 1 - Results

    A framework for all that we do!Better description of desired cultureCreated Wide scale awarenessCreated Wide-scale awarenessHelped develop broad ownershipGenerated huge pull by the organization to learn moreA platform for all people related initiatives or processes

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    ChallengesDid not know what good looked like in a lean worldDid not know how to make it real everydayDid not have anything to hang it off of

    Epiphany 2

    Process

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

  • 9/20/2011

    9

    AME USA Survey3% are achieving transformation17% underachieving80% little improvementOnly achieve low road resultsWhy? High Road to the new world of Mfg

    Beyond Lean Great

    Delivering The Value - The Awakening

    The 1st Step Starts With The Transformation Of The Individual It f d t di th t f f d k l d

    No leadership within the enterpriseTo take the high road

    New challenges require DifferentAnswers a change of thinkingIs required

    Create a race to the high road

    Beyond Lean

    y

    Low Road to Old World Mfg

    Full Lean Focus on leadership, HumanDevelopment & Innovation

    Good Start Short term gains ContinuingLong term returns profound change occurs

    Gap

    It comes from understanding the system of profound knowledge The individual, transformed, will receive new meaning to life, toevents, to numbers, to interaction between people

    Edward Deming

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    Beyond Lean gFake Lean Focus On Tools

    Good Start Short term gains diminishingLong term returns often fades away or justholds the line

    Copyright Gary Stewart

    In very Simple Terms, Its About Developing The Individual FirstWe need everyones hands, hearts and minds!

    Epiphany 2 Epiphany 2 Process: Making the WBS ActionableProcess: Making the WBS Actionable

    Innovation/planning Top Management

    Middle Management

    Traditional Perception of Job Functions

    Continuous Improvement TransformationPlanAct

    Continuous Improvement TransformationPlanAct

    Innovation/ Planning

    Strategy

    Running the Business

    (Firefighting!)

    Supervisors

    Workers

    Top Management

    Lean Enterprise Perception of Job Functions

    GOAL STEADILY INCREASE

    0% 100%% of Time Spent

    Time

    Kno

    wle

    dge

    Daily Kaizen Break-Through SD

    Plan

    DoCheck

    Act

    Plan

    DoCheck

    Act

    Plan

    DoCheck

    Act

    Plan

    DoCheck

    Act

    Time

    Kno

    wle

    dge

    Daily Kaizen Break-Through SD

    Plan

    DoCheck

    Act

    Plan

    DoCheck

    Act

    Plan

    DoCheck

    Act

    Plan

    DoCheck

    Act

    h e a t e r s | s e n s o r s | c o n t r o l l e r s

    Daily Management(Run the Business Processes)

    Middle Management

    Supervisors

    Workers

    GOAL= STEADILY INCREASE THE PORTION OF THE ORGANIZATION THAT WORKS FULL TIME ON IMPROVEMENT WHILE DOING IT THE RIGHT WAY (WBS)

    0% 100%% of Time Spent

  • 9/20/2011

    10

    The MDI Model

    Opera

    t in gS ys

    tem

    Continual Improvement

    of

    the quality management

    system

    Understanding

    Believing

    Doing

    Team Member

    Opera

    t in gS ys

    tem

    Continual Improvement

    of

    the quality management

    system

    Understanding

    Believing

    Doing

    Team Member

    Opera

    t in gS ys

    tem

    Continual Improvement

    of

    the quality management

    system

    Understanding

    Believing

    Doing

    Team Member

    Daily Improvement Model

    Team Structure & Organization

    Team Responsibilities & Training

    Visual Management to Target

    Highlight Waste & Variation

    Team Based Problem Solving

    Cell Team , Value Stream Team & Value Stream Leadership

    Other Functional Support

    Enterprise LOB & Functional Leadership,

    Ope

    ratin

    gS

    yste

    m

    wW

    a yB

    ehav

    iors

    Team Structure & Organization

    Team Responsibilities & Training

    Visual Management to Target

    Highlight Waste & Variation

    Team Based