Invest NI Lean Conference 2016 | Case Study: Elite | Developing and sustaining a lean organisation
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This document outlines a company's plan to develop and sustain a lean organization over 12 months. It involves three key steps: identifying pillar leads to drive change; determining why change is needed to improve problem solving; and how change will be implemented through a strategy, roadmap, training, and aligned projects. Initial projects achieved improvements in schedule adherence, kitting shortages, lead times, and non-conformances. Next steps include additional A3 projects, team leader training, and 5S rollouts. Barriers to past changes involved lack of commitment, time, engagement, and early success demonstration.
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Invest NI Lean Conference 2016 | Case Study: Elite | Developing and sustaining a lean organisation
- 1. DEVELOPING AND SUSTAINING A LEAN ORGANISATION
- 4. The Company – Our Markets • Power Generation • Medical • Advanced Communication Systems • Power Supply Management • High Resolution Digital Cameras • Traffic System Management • Security/Alarm Systems • Broadcasting • Agriculture • Sports Management
- 5. PEOPLE BEHAVIOURS COACHING SKILLS We Asked Three Key Questions 1. WHO is driving and supporting the change? 2. WHY are we changing? 3. HOW are we going to change?
- 6. The Three Step Model Pillar Leads Identified Senior Manager Dedicated to Continuous Improvement. 1. WHO is driving and supporting the change? Department Head = Pillar lead Manage projects and embed the changes into the daily work.
- 7. The Three Step Model Pillar Leads Identified • Value Stream Mapping • Benchmarking • GAPs established 2. WHY are we changing? MANAGERS CHECK tbcTask Duration Min PRICE NEGOTIATED WITH CLIENT LOGIKAL ESTIMATE RECEIVED METAL TECHNOLOGY CUSTOMER TO CASH (CURRENT STATE VALUE STREAM MAP) Drawn By: Date: CUSTOMER TO CASH Process Level METAL TECHNOLOGY Company: Hugh Johnston 22/03/2013 NOTES: 1) Draft outline of the transactional activities – more information required TBC Demand per week Item 40 Defects Percent % TBCResource Staff 2Resource Staff TBCTask Duration Day THREE MAIN SALES PERCENTAGE NUMBER OF QUOTES CONVERSION REVENUES OF T/O PER ANNUM PER WEEK RATE % FABRICATORS SPECIFIED PARTNERSHIP Draft for ReviewDrawing Status Agreed Current State CRM TBCResource Staff Customer CLIENT SYSTEM LOGIKAL MT SYSTEM LOGIKAL FAXED ORDER ESTIMATE LOADED ONTO LOGIKAL PROCESS ORDER - REVIEW STOCK - AGREE DELIVERY DATES CONTACT CLIENT AND REVIEW / AMEND REQUIREMENTS ORDER STOCK GENERATE DESPATCH SCHEDULE ORDER CONFORMATION GENERATE PRODUCTION SCHEDULE tbcTask Duration Min 2Resource Staff tbcTask Duration Min 2Resource Staff tbcTask Duration Min 2Resource Staff tbcTask Duration Min 2Resource Staff tbcTask Duration Min 2Resource Staff tbcTask Duration Min 2Resource Staff tbcTask Duration Min High percentage of orders fail the managers check – track right first time and record issues at this point CUSTOMER TRAINING - LOGIKAL CUSTOMER TRAINING - PRODUCT TBCTask Duration Day TBCResource Staff TBCTask Duration Day TBCResource Staff “MUST WIN” projects selected
- 8. The Three Step Model Pillar Leads Identified “We need to get better at problem solving” MANAGERS CHECK tbcTask Duration Min PRICE NEGOTIATED WITH CLIENT LOGIKAL ESTIMATE RECEIVED METAL TECHNOLOGY CUSTOMER TO CASH (CURRENT STATE VALUE STREAM MAP) Drawn By: Date: CUSTOMER TO CASH Process Level METAL TECHNOLOGY Company: Hugh Johnston 22/03/2013 NOTES: 1) Draft outline of the transactional activities – more information required TBC Demand per week Item 40 Defects Percent % TBCResource Staff 2Resource Staff TBCTask Duration Day THREE MAIN SALES PERCENTAGE NUMBER OF QUOTES CONVERSION REVENUES OF T/O PER ANNUM PER WEEK RATE % FABRICATORS SPECIFIED PARTNERSHIP Draft for ReviewDrawing Status Agreed Current State CRM TBCResource Staff Customer CLIENT SYSTEM LOGIKAL MT SYSTEM LOGIKAL FAXED ORDER ESTIMATE LOADED ONTO LOGIKAL PROCESS ORDER - REVIEW STOCK - AGREE DELIVERY DATES CONTACT CLIENT AND REVIEW / AMEND REQUIREMENTS ORDER STOCK GENERATE DESPATCH SCHEDULE ORDER CONFORMATION GENERATE PRODUCTION SCHEDULE tbcTask Duration Min 2Resource Staff tbcTask Duration Min 2Resource Staff tbcTask Duration Min 2Resource Staff tbcTask Duration Min 2Resource Staff tbcTask Duration Min 2Resource Staff tbcTask Duration Min 2Resource Staff tbcTask Duration Min High percentage of orders fail the managers check – track right first time and record issues at this point CUSTOMER TRAINING - LOGIKAL CUSTOMER TRAINING - PRODUCT TBCTask Duration Day TBCResource Staff TBCTask Duration Day TBCResource Staff “MUST WIN” projects selected 3. HOW are we going to change?
- 9. The Strategy Directors Senior Managers Supervisors Business Strategy A3 Problem Solving Daily CI Projects Buy-in and engagement required – HOW?
- 10. The Roadmap – 12 Month Plan LEAD TARGET NOV 2015 DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT 2016 NOTES Lean training - overview 1 day Invest completed completed completed A3 - Practical Problem Solving Training 2 day training delivered by Kaizen Institute (NH) Invest completed 5S Implementation Zones 1 - 5 (10 weeks per zone) NH completed 5S Audits established and results being tracked NH planned Review organisational structure - identify under / over utilisation - Identify GAPs NH planned planned planned Select the improvement teams - pillar leads & team members EE completed A3 - Practical Problem Solving Training - A3 steps 1 to 4 Invest completed A3 - Practical Problem Solving Training - A3 steps 4 to 8 Invest completed completed completed completed Initial A3 project selection (12 week projects) NH completed completed completed Utilise ICE model Non Conformance Reduction M planned Schedule Adherence AL planned planned planned SMT Kitting Shortages SE planned NPI Lead-time Reduction JB at risk at risk Establish communication boards - lineside focus on the relevant area KPIs - support with regular reviews and use to drive improvements planned planned planned planned planned Implement a Daily Improvement System Just Do Its (JDIs) Use the KPI board to identify GAPs then engage with the teams to develop solutions - items that can be addressed on shift are recorded as JDIs, bigger issues become A3 projects. NH planned planned planned planned planned planned planned planned planned Track and communicate JDIs per area / team Establish a War Room - factory communication board linking all the area boards - support with regular reviews and use to drive improvements NH planned similar to Ensto example Value Stream Mapping exercise (Customer to Cash) Invest Identify aligned projects KEY:- PLANNED COMPLETED AT RISK MISSED PHASE1 12 MONTH PLAN ITEM LEAN IMPLEMENTATION ELITE ELECTRONICS SEE - SOLVE - SHARE PHASE:- 1 STABILITY 2 WIDER DEPLOYMENT 3 EMBED THE AGREED PLAN “communicating and managing change”
- 11. 1. 5S IMPLEMENTATION Engaging With Our People BEFORE AFTER 2. DAILY IMPROVEMENTS JUST DO ITs SOMETIMES LATER MEANS NEVER RECOGNISE THE IMPACT OF DAILY IMPROVEMENTS
- 12. Engaging With Our People 3. COMMUNICATION BOARDS 4. CHANGE OF SHOPFLOOR LAYOUT
- 13. Developing Our People • Lean Fundamentals Training attended by Managers and Supervisors across all departments. • 5S Workshops run on-site. • External A3 Training for Pillar Leads – 2 days. • Internal A3 Training for Team Members – 1 day. • Site Visits and Networking. • Mentoring and Support from Invest NI. All Training is aligned with the implementation plan and the project need.
- 14. Aligned Projects PROJECT TARGET DURATION = 12 WEEKS Weekly Review Meeting Update weekly Weekly Senior Review “MUST WIN” projects A3 A3 A3 A3 PROJECT ALIGNMENT FOR MAXIMUM IMPACT
- 15. Communication – The War Room Weekly project review meetings held in The War Room
- 16. The Results – Measuring Success • From June (project starts) to December 2015: – Schedule Adherence Improvement of 8% – SMT Kitting Shortages Improvement of 21% – NPI Lead-time Reduction of 67% – Non Conformance Reduction of 93% The Impact of A3s • Implementation of “Weekly Just Do Its” • 5S Housekeeping Audit Scores “OUR PEOPLE ARE NOW BETTER AT SOLVING PROBLEMS” IMPROVING THE WORK IS NOW PART OF THE WORK.
- 17. Next Steps: • 2nd Phase A3 projects started – Delivery Adherence & Reduction of Non-Productive Time. • 3rd Phase A3 projects identified – Production and Quotations related – Project Lead training in March. • Team Leader Development Training – March. • 5S roll out throughout the business. • Company Value Stream Map. • Layout review / optimisation.
- 18. The Gain!
- 19. Barriers crossed: • We’ve been here before and failed… • We’re successful without it… • We don’t need to change… • Commitment must come from the top… • Time must be set aside / planned… • Buy-in and engagement required at all levels… • Demonstrate success at the earliest opportunity… • Get your hands dirty… Lessons Learned: