Baxter Bioscience - Driving Culture Change

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  • To create the proper focus for the day’s activities, let’s review what Operational Excellence looks like. Emphasize integration, fact-based evaluation, and good performance relative to competitors/comparisons.
  • Strategic Objectives: Provide focus, ensure alignment of all employees towards common goals, metrics, time-tables and targets. QLP structure: Provides an organizational structure to drive improvement through dashboards and scorecards: metric driven leadership. VSs: Map processes that create customer value with baseline measures and targets. Business Units (BUs) are areas with key metrics to improve. Project Selection: Helps allocate the appropriate resources and prioritize projects aligned with strategic objectives, creates a culture of continuous improvement. DMAIC: Our common language and methodology of project management and leadership: Define Measure Analyze Improve Control (Includes QLP tools)
  • Baxter Bioscience - Driving Culture Change

    1. 1. D r iving Culture Change An on-going journey Baxter BioScience Presented by: Michael Teasdale
    2. 2. <ul><li>8.9 Billion in sales in 2003 </li></ul><ul><li>Over 50,000 employees </li></ul><ul><li>More than 110 countries in 250 facilities </li></ul><ul><li>Three key business areas </li></ul><ul><ul><li>Medication Delivery: delivering fluids, drugs and medication </li></ul></ul><ul><ul><li>Renal Therapies: serving the needs of patients with chronic kidney disease </li></ul></ul><ul><ul><li>BioScience </li></ul></ul>Baxter Fact Sheet Baxter: Providing Critical Therapies for people with life- threatening conditions
    3. 3. BioScience Overview <ul><li>$2.9 Billion in sales in 2004 </li></ul><ul><li>Over 9,000 employees </li></ul><ul><li>Three key product areas: </li></ul><ul><ul><li>Proteins derived from human plasma or recombinate technology to treat hemophilia, immune deficiencies and other blood related disorders </li></ul></ul><ul><ul><li>Products to help wound treatment and tissue regeneration </li></ul></ul><ul><ul><li>Vaccines for Meningitis C, and TBE </li></ul></ul>
    4. 4. Baxter BioScience - Situation <ul><li>Product supply exceeds demand in most products </li></ul><ul><li>Plasma prices have dropped continually since ’02 </li></ul><ul><li>Growing competition in recombinant products </li></ul><ul><li>Product quality is no longer a guarantee to sales </li></ul>Customers want product quality and service quality at lower cost
    5. 5. Quality Leadership Process: Values Meet Customer Requirements QUALITY IS MEETING REQUIREMENTS Prevention IS THE WAY WE ACHIEVE DEFE C T-FREE WORK Continuous Improvement KEEPS US AHEAD OF OUR COMPETITORS Zero Defects D EFECT-FREE WORK MEETS R EQUIREMEN T S 100% OF THE TIME Total Employee Involvement IS ESSENTIAL TO ACHIEVING QUALITY DEFINITION STANDARD METHOD ATTITUDE ORGANIZATION
    6. 6. Process Improvement - Situation <ul><li>Various sites and functions had made significant efforts and gotten results – but variability from site to site </li></ul><ul><li>Lack of common vision and language from one site to another about process improvement </li></ul><ul><li>Corporate “Six Sigma” program provided tools but no process of improvement </li></ul><ul><li>Growing reliance on multi-site process to produce product </li></ul><ul><li>Both Lean and Six Sigma needed to drive operational excellence </li></ul>How to built on previous efforts while making a significant change in the culture?
    7. 7. Strategy for Culture Change Two pronged approach to drive culture Change Superstructure Change Foundations <ul><li>Vision: Where do we want to go? </li></ul><ul><li>Metrics: How do we judge success? </li></ul><ul><li>Management knowledge </li></ul><ul><li>Communication / Leadership presence </li></ul><ul><li>Robust Project Selection </li></ul><ul><li>Training Green and Black Belts </li></ul><ul><li>DMAIC, Lean, Six Sigma </li></ul><ul><li>Dedicated Black Belts </li></ul>
    8. 8. 1 st Steps- Change Superstructure <ul><li>Gather input, train stakeholders (Plant Mgrs, Quality, Mgrs) </li></ul><ul><ul><li>DMAIC, Lean and Six Sigma training </li></ul></ul><ul><ul><li>Identify needs and gather input </li></ul></ul><ul><li>Operations Leadership (VPs) establishes a vision of a Green Belt company – a new leadership culture </li></ul>Build on Previous Efforts and “Raise the Bar”
    9. 9. Our Vision <ul><li>An operational culture recognized as excellent in the following areas: </li></ul><ul><ul><ul><ul><ul><li>- Customer focused </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>-Fact based </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>-Process oriented </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>-Results driven </li></ul></ul></ul></ul></ul>An organization known for developing and rewarding the best operational performers
    10. 10. 4Cs – Results Focus for 2004-6 Key Metrics Drive Focus Cash Flow Days in inventory, cycle time Cost Yield, cost reduction Customer Fulfillment Compliance Quality Systems
    11. 11. Metric Development <ul><li>Identified the right metrics for the business based on customer / business requirements </li></ul><ul><li>Developed new, common definitions for the metrics to drive the right business / operational behaviors </li></ul><ul><li>Applied these metrics across plants, functions and products </li></ul><ul><li>Quality Systems dashboard already rolled out and successfully driving compliance </li></ul>Engaged site leadership to build understanding, buy-in
    12. 12. Fulfillment Standard Plant Dashboard Fill date to release date for each committed batch Business Yield Value of Unplanned Production Cycle time (Not actual data) >= Budget Business Yield N/A < Budget Business Yield Green Yellow Red >= 80% N/A < 80% Green Yellow Red
    13. 13. Fulfillment - XXX Common Product Dashboard Business Yield - XXXX Days of Inventory held - XXXXX Forecast Error (Not actual data) < +or- 10% of target N/A > +or- 10% of target Green Yellow Red % Absolute Error Rolling 6 Mo. bias >0% – % oversold forecast <0% – % undersold forecast >= Budget Business Yield N/A < Budget Business Yield Green Yellow Red >= 80% N/A < 80% Green Yellow Red
    14. 14. Ensuring Leadership Engagement <ul><li>6 Key Elements for robust improvement </li></ul><ul><ul><li>Strategic Planning </li></ul></ul><ul><ul><li>QLP Structure </li></ul></ul><ul><ul><li>Quality Improvement Teams </li></ul></ul><ul><ul><li>Operating Mechanisms </li></ul></ul><ul><ul><li>Project Selection </li></ul></ul><ul><ul><li>Operational Strategies </li></ul></ul>Building a common framework for excellence
    15. 15. Categories, Criteria, Conditions Definition of Main Categories 5 to 6 Criteria for each main Category % implementation, then ops excellence and world class Measure per criteria and overall average
    16. 16. Tool Description and Audits <ul><li>Criteria evaluated from 0 to 100% implementation in self-review </li></ul><ul><li>“ Operational Excellence” and above awarded by peer review </li></ul>Common tool to measure progress Self Review Peer Review
    17. 17. Measurement Tool Output <ul><li>Spider Chart displays scores </li></ul><ul><li>Drives balanced improvement </li></ul><ul><li>Pinpoints health of process improvement process </li></ul>
    18. 18. (2) Change Foundations: QLP Process Driving Cash, Cost, Customer, and Compliance Key Focus Areas QLP Structure Value Stream Maps / Metrics Cascade VIP Project Selection DMAIC Black Belt /Green Belt /Team Member 6 Sigma Kaizen Lean Just do it Programs: 6Ss Standard Work
    19. 19. Metric Cascade / Project Selection Customer Fulfillment Release Time Variability Biggest Bang for our Buck Internal release Product value stream Release to shipping time Data Walk to High Value Projects Targets and root cause analysis drive project selection Future state and root cause analysis drive project selection Tools: Standard Work, Change Over Reduction, etc. Tools: T –tests, ANOVA to find root cause and reduce ERs
    20. 20. Change Foundations: Link to Strategy <ul><li>Solid line to Strategic goals </li></ul><ul><ul><li>All projects should show a link to measurable change for issues management loses sleep over </li></ul></ul><ul><ul><li>Project tracking data base essential to show this link </li></ul></ul><ul><li>Strategic Initiative Link </li></ul><ul><ul><li>At GE, drive for growth, paperless culture, VCP </li></ul></ul><ul><ul><li>At Baxter, inventory and fulfillment initiatives </li></ul></ul>Communicate, Communicate, Communicate
    21. 21. Change Foundations: Training <ul><li>Training goals </li></ul><ul><ul><li>1% of the population dedicated to process improvement: QLP managers, Black Belts </li></ul></ul><ul><ul><li>Green Belts: 15% of leadership population trained for 2004, 30% for 2005 </li></ul></ul><ul><li>Skill transfer strategy </li></ul><ul><ul><li>Integrate Six Sigma and Lean under DMAIC project management process </li></ul></ul><ul><ul><li>Drive some Lean approaches as programs </li></ul></ul>
    22. 22. DMAIC: Right Tools for the Problem <ul><li>Project ID Tools </li></ul><ul><li>Project team charter </li></ul><ul><li>Internal Rate of Return Analysis </li></ul><ul><li>Discounted Cash Flow Analysis </li></ul><ul><li>Stakeholder analysis </li></ul><ul><li>RACI </li></ul><ul><li>Presentation templates </li></ul><ul><li>Process Mapping </li></ul><ul><li>Value Stream Mapping </li></ul><ul><li>Brainstorming </li></ul><ul><li>Capability Studies </li></ul><ul><li>Pareto Charts </li></ul><ul><li>Fishbone Diagrams </li></ul><ul><li>Run – Control Charts </li></ul><ul><li>Takt time </li></ul><ul><li>MSA/Gage R&R </li></ul><ul><li>Added/Non Value Added Analysis </li></ul><ul><li>Multi-Vari </li></ul><ul><li>Analysis of Flow </li></ul><ul><li>Interaction Plots </li></ul><ul><li>Regression </li></ul><ul><li>Change Point Analysis </li></ul><ul><li>ANOVA </li></ul><ul><li>C&E Matrices </li></ul><ul><li>Benchmarking </li></ul><ul><li>Constraint analysis </li></ul><ul><li>Pull/Kanban </li></ul><ul><li>Lot size Optimization </li></ul><ul><li>Setup Reduction </li></ul><ul><li>TPM </li></ul><ul><li>Process Redesign </li></ul><ul><li>Robust Tolerancing </li></ul><ul><li>DOE </li></ul><ul><li>Cross Training </li></ul><ul><li>Standardized Work </li></ul><ul><li>Kaizan </li></ul><ul><li>Run Charts </li></ul><ul><li>Histograms </li></ul><ul><li>Capability Studies </li></ul><ul><li>Control Charts </li></ul><ul><li>Control Plans </li></ul><ul><li>6Ss </li></ul><ul><li>Mistake Proofing </li></ul><ul><li>Visual Management </li></ul>Towards Lean Six Sigma Integration D efine M easure A nalyze I mprove C ontro l Process Inputs Outputs
    23. 23. Black Belts: the rubber hits the road <ul><li>Fully dedicated !!!!! </li></ul><ul><li>Choose your best, hungriest people </li></ul><ul><li>Provide them with the best tool kit, method to get results </li></ul><ul><li>Support and monitor projects to address the key issues- leadership presence!!! </li></ul><ul><li>Ensure transition back to prestigious jobs </li></ul>No pain, No gain; Dedication = quicker results
    24. 24. Keys to Success Leadership Strategic focus Measures Dedicated resources Employee Engagement <ul><li>Communication, presence and focus </li></ul><ul><li>Demand rigor, learn DMAIC </li></ul><ul><li>Link to strategic planning process </li></ul><ul><li>Customer sat, ROI drive selection </li></ul><ul><li>Track measures on results, rigor </li></ul><ul><li>Track enabling metrics (forcing metrics) </li></ul><ul><li>Select your best, high potentials </li></ul><ul><li>Part of a dedicated team </li></ul><ul><li>Mobilize all employees, across departments </li></ul><ul><li>Common language, common vision </li></ul>Focus your best resources on what matters

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