1. New Horizons, No Boundaries
O-I Case Study: Lean Six Sigma — Not Just for Manufacturing Anymore
by Dan Rubin, Senior Consultant and Alina Haas, O-I, VP Human Resources
May 1-3, 2011
© 2011 Towers Watson. All rights reserved.
2011 HR Service Delivery Forum

2. 2
World’s leading glass packaging company
Who is O-I?
Asia PacificNorth America EuropeLatin America
A market leader in all regions in which we operate

3. 3
We are a truly global company
 $6.6 billion in net sales in 2010
 24,000+ employees
 81 plants in 21 countries
 Joint ventures in five countries
 1,900+ worldwide patents
 13 official languages
 World headquarters in the United States (Perrysburg, Ohio)

4. 4
We are a
preferred partner for many global brands
 Glass packaging for beer, wine and spirits, food and non-alcoholic
beverages
 Glass packaging for drug and chemical industries
 Tableware, including stemware

5. 5
What is Lean Six Sigma
Continuous improvement philosophy that
combines traditional Lean Manufacturing
approach with Six Sigma DMAIC
methodology

6. 6
DMAIC
Process Improvement Road Map
Define the problem, the voice of the customer and the project goals
Measure key aspects of the current process and collect relevant
data
Analyze the data to investigate and verify cause-and-effect
relationships. Seek out root cause of the defect under investigation
Improve or optimize the current process based upon data analysis
Control the future state process to ensure that any deviations from
target are corrected before they result in defects

7. THE ENGAGEMENT SURVEY
Lean Six Sigma in Practice

8. 8
Overarching Principles
 Build broad-based support and process
discipline by engaging all regions and
major functions in development, delivery,
analysis and survey action planning
 Segment employee population to allow for
meaningful analysis and clear
accountability for follow-up
 Establish appropriate benchmarks
(manufacturing, high-performing
companies, country-specific norms)
 Survey must generate actionable
outcomes

9. 9
Kaizen Charter
 Deliver global employee engagement survey to 22,000+ employees
during a four week period
 Measure global and regional employee engagement against O-I’s
strategic priorities
 Assess changes since prior leadership-only survey
 Develop on-going tracking and reporting process to hold organization
accountable to improvement
 Identify linkages between key ongoing initiatives and employee
engagement
 Build accountability for improvement into managerial performance
assessment

10. 10
LSS Process
Pre-Kaizen
 Team member selection
 Teams and role definition
 Participant pre-work
Kaizen
 Part I — Survey design and development (2 days)
 Part II — IT considerations, metrics and survey
logistics (2 days)
 Part III — Communications strategy (2 days)
Post Kaizen
 Communication plan
 Survey administration strategy
 Manager and HR support tools
 Results rollout

11. 11
Pre-Kaizen
Team Member Selection
Individual Characteristics
 Key leader in area of expertise
 Knowledgeable in regional/functional issues
 International exposure
 Ability to express opinions and ideas clearly and
confidently
 Fully empowered to make decisions and take action
 Able to devote up to five hours of pre-work in
preparation for Kaizen
Team Structure
HR Communications Finance
Technical LSS Black Belt Business

12. 12
Pre-Kaizen
Pre-work is essential to success
 Gather Voice of the Customer from regional and functional leaders
and key stakeholders
 Complete organizational hierarchy

13. 13
Finalize Questions
Identify carryover questions
Validate against
topics/initiatives
Fit to 20 minutes
Questions Reviewed and Selected Based on Best Fit to Survey Objectives
Item selection checks
and balances
continually revisited
Reality check on
content and project
scope
Rationalization of
questions
Analysis and
revalidation of themes
Kaizen — Survey Design & Development
Category and Question Selection Process
Survey Categories Distributed to Teams

14. 14
Survey Design
Category Selection and Alignment
Towers Watson
Categories and
Questions
O-I
Categories and
Questions
O-I Initiatives
Category
Empowerment
Change Readiness
Wellness Culture
Category
Risk-Taking
This company has
established a
culture where:
People can
challenge our
traditional ways of
doing things.
O-I has established
a culture where:
People can
challenge our
traditional ways of
doing things.
Index Score
provides metric for
questions related
to specific
initiatives.

15. 15
Kaizen — Survey Design & Development
Selecting Survey Questions
 Is the question relevant for the global
employee population?
 Can the question measure achievement
against O-I’s strategic focus areas?
 Is normative data available for this
question?
 Will we be able to take action as a result
of the data gathered from the question?
 Does changing the question of a
normed question add real value?
Data — Key Issues
Normed/Not Normed
In Scope/Out of Scope
Strategic/Tactical
Validated/Non-Validated

16. 16
Kaizen — Survey Logistics
Survey Delivery Process — Paper
Suppliers Inputs Process Outputs Customers
Surveys
Submitted
Survey tool kit
Paper surveys
Communication
Towers-Watson
Comm. team
Kaizen team
Employees
Local Mgmt
Senior Mgmt
Receive
tool kit
Develop
Location
strategy
Prep &
Setup
Schedule
& admin
survey
Ship
surveys
back to
TW
Close
out
survey
Input Metrics Process Metrics Output Metrics
Quality
Speed
Cost
Number of
paper surveys
15-20 minutes
per survey
75 – 80%
participation
rate
Customer
Employees
Kaizen Team
Senior Mgt
Senior Mgt
Kaizen team
OT Hours

17. 17
Survey Delivery Process - Paper
Proctor
Towers-
Watson
Local
Coordinator
Employee
Regional
HRRep
Leadership
Plant
Manager
Receive Tool
Kits
Receive Tool
Kits
Logistics
Room setup
Food
Create a Launch
Team
Communication
promotion of
survey
Communication
promotion of
survey
Communication
promotion of
survey
Assign
Coordinators
Setup survey
schedule
Setup survey
schedule
Complete
surveys
Train proctors
on roles and
expectations
Administer
survey
Evaluate
response rate
Communication
Track overall
plant response
rate
Evaluate
response rate
Thank employees
for completing
survey
Kaizen — Survey Logistics
Swimlane for Paper Survey Delivery Process

18. 18
Kaizen - Survey Logistics
High-level Project Timeline
Step Date Responsibility
1 Send Kaizen pre-work to participants June 3 O-I
2 Return pre-work assignments June 17 O-I
3 Complete planning for Kaizen event June 18 O-I/JB/TW
4 Survey design and development – Kaizen Part 1 June 21-22 O-I/TW
5 Tech requirements, metrics, logistics – Kaizen Part 2 June 23-24 O-I/IT
6 Communication strategy – Kaizen Part 3 June 28-29 O-I/TW
7
Finalize communication strategy/plan for survey
launch/administration
July 2 O-I/JB
8
Sign-off on all survey content, including
demographics
July 2 O-I
9
Finalize senior leadership participant list (those who
will receive the leadership supplement)
July 2 O-I
10
Align senior leadership HRIS information with
demographics
July 6-16 O-I/TW
11 Set up English online and paper surveys . . . etc. July 6-12 TW

19. 19
Kaizen
Communication Strategy
Communication Objectives — Examples
Launch and Administration Results and Action Planning
 Provide rationale for “why survey and why
now”
 Define “what’s in it for me” for all key
stakeholders
 Share high-level results, key themes and
overarching priorities (don’t drown people
with data)
 Set expectations about action and the
plan to make this happen
Barriers and Challenges
Launch and Administration Results and Action Planning
 Complexity of 13 different languages and
two survey methods (paper and online)
 Participation in light of conflicting priorities
 Skepticism — what could I lose if I answer
this survey honestly?
 Risk of “dead space” between time
employees take the survey in Sep/Oct and
results/action planning in 2011
 Ongoing commitment of resources at local
levels

20. 20
Post Kaizen
Next Steps
 Final survey sign-off from key stakeholders
 Project plan and timeline
 Communication
• Elevator speech — talking points for report out to stakeholders
• Participant invitation to survey
• Define survey terminology

21. 21
Post-Kaizen
Deliverables
 Communication plan finalized and disseminated
 Survey administration toolkits developed in 13 languages for regional
and corporate locations
 Train-the-trainer workshop
 Employee feedback sessions held
 Your Voice collaboration space launched

22. 22
Project Plan
The project plan
was updated for the
remaining project activities
We are here at the
close of the event

23. 23
Post-Kaizen
RACI
R = Person(s) who is responsible for performing the action/task
A = Person who is held accountable for action/task completion
C = Person(s) who is consulted before performing the action/task
I = Person(s) who is informed after performing the action/task

24. 24
Storyboard:
Global Employee Engagement Survey
Project Goal Results & Outcome Process Sustainability
 Survey requirement is to
have an average
completion time of 15 to
20 minutes
 Global manufacturing
company response rate
benchmark:
75 – 80%
(2008 response rate –
93%)
 Name of Survey: Your Voice
 Incorporated data from the following surveys:
HPP, Change Readiness, LSS, Pathways into
survey design
 Determined delivery method which will be a
combination of paper and web based approach
 Survey will be translated into 13 languages
 Communication strategy was developed to
engage the location coordinators, management
and the O-I population
 Business linkage analysis developed to include
the addition of internal O-I metrics to survey
results to determine correlations between
engagement and business results
 Project Plan revised with
Towers Watson (TW) and
task ownership
established
 A follow-up Kaizen will be
conducted in early 2011 to
establish the action
planning process
 Location coordinators
have been identified to
carry out the process at
the local levels to
maximize participation and
handle daily tasks for
survey administration
TEAM
Back Row:
Front Row:
Sponsor: Alina Haas
LSS Black Belt: Mike Petrous

25. 25
Key Learnings
 Pre-work added value to survey results
 Access to dedicated subject matter experts invaluable
 Participation was rewarding
 End product is better by virtue of team diversity
 We are proud of the product delivered through a disciplined process
 Cross-functional and cross-regional participation in Kaizen creates
win for team and O-I
 Fosters long-term work relationships
 Reduced survey creation time by 80%
S6-Talent Management – O-1 Case Study