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STRATEGICALLY CHANGING TO SUPPORT-Team Version 11-2013
- 1. STRATEGICALLY CHANGING TOSUPPORT Better Thinking + Better Technology = BETTER RESULTS THE FUTURE OF MANUFACTURING • Technology • Best Part of Lean • Economical Structured Market • Time to Market (Days vs. Weeks) TECHNOLOGY TECHNOLOGY
- 2. Future of Manufacturing Progressivewith Overlapping & Divergent Paths Technology Culture CAPABLITY FOCUS Best Part of Lean Economical Structured Market Market Variables 2
- 3. REASON FOR CHANGE HEALTHCARE SECTOR MEDICAL DEVICE Evolution 2-3 year cycles with possible Complete transformation Economical & Social Drivers Market Pricing INDUSTRIAL SECTOR AEROSPACE & DEFENSE PRODUCTION 7-10 year cycle remaining with possible continuous transformation & shorter technology cycles. Likely super downturn to follow this super upturn GLOBAL COMPETITION & OFFSETS & SUPPLIER RQMTS US Defense Budget sequestration ENERGY OIL DRILLING EQUIPMENT Evolution. 10-12 year cycles with possible transformation in 50% of applications Social & Enviro driving Alternative energy
- 5. STRATEGIC ELEMENTS &TRANSITIONS FIXTURING TECHNOLOGY PROCESSES APPLICATIONS & DME -TOOLS PROFESSIONAL SKILLS FPY – OEE- UTILIZATION -ALL TOOLS ENGINEERING PROCESS MGMT FINANCIAL MGMT CORE
- 6. SPECIFICALLY HOW THISHAS BECOME OUR NORM
- 7. 2012-15 Path -Drive a Focused & Continuous Improvement Culture Demonstrated OS tool proficiency drives improvement Improve Processes Develop Strategy Track Results Monitor Progress Establish Vision Prioritize Opportunities Voice of the Customer (VOC) Key Input to the Operating System (OS) Define Metrics Create RoadmapCreate Roadmap Communicate Goals & Objectives Qualifying Learning Coaching, Teaching & Baselining Using the tools; getting results and Building foundations Bronze Silver Gold Significantly improving business metrics Year-over-year business metrics improvements Qualifying Learning Coaching, Teaching & Baselining Using the tools; getting results and Building foundations Bronze Silver Gold Significantly improving business metrics Year-over-year business metrics improvements Achievement Levels for Cells/Sites/Programs Guide to Next Level VOS Qualifying Level 0 1 3 1 1 21 1 1 2 1 1 2 00 1 2 3 4 5 VOC - Voice of the Cus t omer Surve y FO D Co mplia nc e MOS Imp leme ntat io n V OS Ac ademy Tra ining 5S V is ual F a cto ry VS M Curre nt/ Fut ure QCPC Imp le me nt a tion Skills Training Mat rix RC CA Training S t anda rd Wo rkImp lement ation TPM - Tot al Product ive Maint e nance Prog ram D emand Pull S ys tem Emp loyee Develo p me nt Identify Business Opportunities Identify Business Opportunities Drive Execution KMI Ops Measures Financial Measures Trend Data Crew Plan / JDS Wkly Summary/Review Drive product focus Day to Day Task Lean Model G/O Milestone 2007 Vought Site Control Tower Achieved Goal Yellow-Within 10% Red- Missed Target > 10% Not Applicable Metrics Target/Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act July'07 1 1 100% 0% 100% 100% $3.86 $2.46 11 9 90% 80.0% 90% 55.9% 100% 100% 298 279 208 207 10.0% 21.8% 5.0% 8.8% 50.8% 50% 5.4 7.78 $17.5 $19.664 Aug '07 1 1 100% 100% 100% 100% $3.86 $6.34 11 11 90% 76.7% 90% 51.7% 100% 100% 298 278 208 208 10.0% 20.6% 5.0% 9.3% 50.8% 49% 5.4 7.25 $17.5 $21.109 Sept '07 1 1 100% 67% 100% 100% $3.86 $5.24 11 9 90% 73.7% 90% 46.5% 100% 100% 298 276 208 212 10.0% 27.4% 5.0% 11.0% 50.8% 53% 5.4 6.89 $17.5 $22.211 Oct-7 1 0 100% 100% $3.86 $2.67 11 8 90% 72.6% 90% 45.7% 100% 100% 298 277 208 217 10.0% 27.7% 5.0% 11.8% 50.8% 52% 5.4 N/A $17.5 $20.145 Oct-14 1 1 100% 0% 100% 100% $3.86 $2.62 11 7 90% 79.3% 90% 42.3% 100% 94.7% 298 292 208 220 10.0% 29.1% 5.0% 11.6% 50.8% 50% 5.4 N/A $17.5 $21.630 Oct-21 1 0 100% 100% $3.86 $3.24 11 10 90% 77.0% 90% 50.2% 100% 87.0% 298 297 208 227 10.0% 25.4% 5.0% 9.9% 50.8% 48% 5.4 N/A $17.5 $22.248 Oct-28 1 0 100% 100% $3.86 $3.47 11 9 90% 81.7% 90% 52.1% 100% 100% 298 297 208 235 10.0% 24.7% 5.0% 12.3% 50.8% 50% 5.4 N/A $17.5 $22.712 % onTime CA R3 ($/Stdhr) Tot. Inventory (M)% Direct OT % Indirect OT % Productivity Non-Touch Headcount (Indirect) Cost Working CapitalSchedule Inventory TurnsFOB onTime MTDDefects /1000stdhrs Starts on Time Completes on Time Touch Headcount (Direct) OSHA Recordables Timeliness Reporting Safety Quality 2007 Vought Site Control Tower Achieved Goal Yellow-Within 10% Red- Missed Target > 10% Not Applicable Metrics Target/Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act July'07 1 1 100% 0% 100% 100% $3.86 $2.46 11 9 90% 80.0% 90% 55.9% 100% 100% 298 279 208 207 10.0% 21.8% 5.0% 8.8% 50.8% 50% 5.4 7.78 $17.5 $19.664 Aug '07 1 1 100% 100% 100% 100% $3.86 $6.34 11 11 90% 76.7% 90% 51.7% 100% 100% 298 278 208 208 10.0% 20.6% 5.0% 9.3% 50.8% 49% 5.4 7.25 $17.5 $21.109 Sept '07 1 1 100% 67% 100% 100% $3.86 $5.24 11 9 90% 73.7% 90% 46.5% 100% 100% 298 276 208 212 10.0% 27.4% 5.0% 11.0% 50.8% 53% 5.4 6.89 $17.5 $22.211 Oct-7 1 0 100% 100% $3.86 $2.67 11 8 90% 72.6% 90% 45.7% 100% 100% 298 277 208 217 10.0% 27.7% 5.0% 11.8% 50.8% 52% 5.4 N/A $17.5 $20.145 Oct-14 1 1 100% 0% 100% 100% $3.86 $2.62 11 7 90% 79.3% 90% 42.3% 100% 94.7% 298 292 208 220 10.0% 29.1% 5.0% 11.6% 50.8% 50% 5.4 N/A $17.5 $21.630 Oct-21 1 0 100% 100% $3.86 $3.24 11 10 90% 77.0% 90% 50.2% 100% 87.0% 298 297 208 227 10.0% 25.4% 5.0% 9.9% 50.8% 48% 5.4 N/A $17.5 $22.248 Oct-28 1 0 100% 100% $3.86 $3.47 11 9 90% 81.7% 90% 52.1% 100% 100% 298 297 208 235 10.0% 24.7% 5.0% 12.3% 50.8% 50% 5.4 N/A $17.5 $22.712 % onTime CA R3 ($/Stdhr) Tot. Inventory (M)% Direct OT % Indirect OT % Productivity Non-Touch Headcount (Indirect) Cost Working CapitalSchedule Inventory TurnsFOB onTime MTDDefects /1000stdhrs Starts on Time Completes on Time Touch Headcount (Direct) OSHA Recordables Timeliness Reporting Safety Quality STRATEGICASSESSMENT & FOCUS OBJECTIVES TIED TO STRATEGIES EMBEDDEDACTION ITEMS ALL THINGSLINKED KEEPING TRACK OF PROGRESS INCENTIVE Assess & Understand Develop Preliminary Business Plan •Performance Assessment Vision 2013 $9million-capable 35% EBITDA Identify Objectives •Market Opportunity •Product Develop Strategies •Market Forecast &Focus •Product Develop Resource Plan •Labor •Expense •Capital Establish Performanc e Measures Deploy Plans • Short Term Determine Priorities Assess Plan Effectiveness November 12 March Timeline Technical Partnership
- 8. 2014-2015 Vision &Direction CONSIDERATIONS & KEY POINTS •MARKET STRATEGY-MUST DEFINE SPECIFICS IN EACH SECTOR AS TO POTENTIAL CUSTOMER & SALES VALUE •TRUE VALUE OF COMPANY IN INDUSTRIAL MARKET PLACE- 3X,4X OR 5X •SWOT-REASSESSMENT NEEDED TO ASSURE ORGANIZATION & CULTURE IS SUPPORTIVE OF “FACTORY OF FUTURE’ AND SUSTAINABLE •FINANCIAL STRUCTURE-FUNDEMENTALS / RATIOS MUST BE IN LINE WITH COMPETITORS •MANUFACTURING CAPABILITY & CAPACITY MUST EXHIBIT GROWTH POTENTIAL FUTURE:FUTURE: Customer Contract Level Load (FINITE PLAN) SupplierSupplier Mthly Shipments Of R/M Level of Inventory Release/ Distribute R/MR/M Finished Parts Finished Parts Max--- Min--- Max--- Min--- Assy/ Ship *Inventory Controlled using “Pull” System. “Visual Control” VISUAL SYSTEMS PARTNERING 3PL
- 9. VISION LEAN CULTURE &COMMITMENT FOR TOTAL TRANSFORMATION TURN KEY PROVIDER THAT DELIVERSINNOVATIVE / QUALITY / RELIABLE PRODUCT SMALL COMPANY STRUCTURE WITH BIG BUSINESS CAPABILITY ABILITY TO COMPETE Great Complete Solution Good Quality Source MARTON Hire 5 people Work like 10 People Pay like 8 People Core Competency Best Passion Economical Driver Disciplined People…Thoughts…Actions… Repetitative Cycles-Question / Debate / Decision / Autopsy Strong level of Comprehension Predict-Question-Visualize-Sequence-Compare-Cause / Effect- Summarize =
- 10. Key Philosophy &Methodology Group Facilitator You’re empowered Task Master Here is what to do & How…do it! Builder of Learning Organization Here is our purpose & direction I will guide & coach Bureaucratic Mgr Follow the rules General Management Expertise In-Depth Understanding Of Work Top-Down Directives Bottom-Up Development LEADERSHIP MODEL Learning Enterprise Enabling Systems Clear Expectations Stable, Reliable Processes Fair and Honorable Business Relations Next Level Of Improvement Stabilility •Map all elements together as a system •Sense of accountability throughout Value Stream •Coercive vs. Enabling •Focus on the Manual Process, then automate •Visual Control People & Partners Eliminate Process Waste Philosophy-Long Term Thinking Continuous LEARN TO DEAL WITH DICS Driving / Inspiring / Cautious / Steady people •Driver •Expressive •Analytical •Amiable = Reserved & Slow = Outgoing & Fast
- 11. IDEAL STATEMENT •4 HABITS-ALWAYS KEEP END STATE IN MIND / PROACTIVE / FIRST THINGS FIRST / UNDERSTAND, THEN BE UNDERSTOOD •ABILITY TO COMPETE – 5 PEOPLE WORK LIKE 10, PAY LIKE 7 •STABLE & RELIABLE PROCESSES •GOALS FOR ALL ELEMENTS OF COMPANY •PARADIGM SHIFT UNDERSTOOD BY ALL –EVERYONE SEE’S NEED •5 SEC LOOK TO UNDERSTAND ‘WHERE ARE WE”
- 12. Ideal State Vision FutureState Focus Waste Process Model Focus Business Driver Emp Subs Emp Major Assy Prop Sub Prop Major Assy EBU Spare Burning Platform Affordability Charter Ideal Statement Key Elements/ Requirements Go Fwd MOS/Lean Score G/O Milestones Lean Milestone/Plan Ideal State Market competitor Control Tower VOS Level 1 3 4 2 VOC Safety Quality Schdl Cost SPF/Cell & People moving (crew cycling) to support demand +/- •Affordability for ultimate customer •Timing to redeploy workforce •Balance workforce to market place VISION BOARD SIPO
- 13. 1. Defined StrategicElements / Strategic plan to support Marton Vision & Business Market 2. Structure organization to assure min overlap and complete ownership to assure 99.9 value add operations. 3. Complete SWOT, finalize TOP FIVE that have the most impact on the strategic direction and establish measures to track results of actions. 4. Establish Financial targets and budgets, then educate process owners on their relationship to financials. (visibility for each key decision maker) 5. Engage employees in an aggressive “lean” focus to eliminate process failures and to maximize the utilization of all employees with measured processes. 13 Establish “End State” & Get Understanding by Key Personnel
- 14. *Must Align toStrategic Business Plan •Performance Mgmt •Competitive Analysis –Targeted Change •Contracts Mgmt •Capacity Plan •Job Performance •Machine •Assemble ProcessDefinition SupportSupport ExecuteExecute Quality&Ops Excellence Quality&Ops Excellence Operations Mgmt Operations Mgmt MfgMfgEXPECTATION ENABLE EXECUTE Redesign Im prove Im prove SetExpectation Process Design & Execute Performance Tracking •Formal Review Performance Tracking •Formal Review CPI Projects: •LLI / NOV SPF •Visibility Bds •Klune Cell Flow •Quality –FPY •Ideal State Supt CPI Projects: •LLI / NOV SPF •Visibility Bds •Klune Cell Flow •Quality –FPY •Ideal State Supt Capacity Analysis •3-6 mth plan Capacity Analysis •3-6 mth plan Skills Assessmt. • Hire Key Position Skills Assessmt. • Hire Key Position R/M Contracts •LTA-JIT R/M Contracts •LTA-JIT OP Suppliers •JIT / pull system plan OP Suppliers •JIT / pull system plan Shop Load •Level load all production cells Shop Load •Level load all production cells VMS •Implement OEE •Implement Job Pack VMS •Implement OEE •Implement Job Pack ASSY Ld & Inv. Mgmt. (Kanban) ASSY Ld & Inv. Mgmt. (Kanban) SMED (set up Reduction) SMED (set up Reduction) Current Focus 1-2 months Near Term Focus (3-8 months) TOP OBJECTIVES TOP FIVE OBJECTIVES / ACTIONS & RELATIONSHIP TO ORGANIZATION STRUCTURE LEADERSHIP MODEL & ROLES R & DMarket Estimate & Quote Procure •R/M Buy •OP / OM Tool Mgmt •Prekit Tool Mgmt •Prekit Bench Marking & Comparative Analysis Bench Marking & Comparative Analysis Assure Competitiveness Assure Competitiveness Lean Structure with a Quality Focus Lean Structure with a Quality Focus Assure Productivity Assure Productivity Supply Chain Alignment Supply Chain Alignment Employee Involvement Employee Involvement Factory Flow •Ideal state flow Factory Flow •Ideal state flow Enhanced 5X Capability Enhanced 5X Capability •Inventory •Maintenance (Facility & Machine) •Tool Mgmt •Job Planning •Schedule •Customer Status •Continuous Improvement •CRM •QSM
- 15. MARTON END STATE2015 HIGH & LOW VOLUME BUT CONTINUOUS HIGH VOLUME , HIGH MIX BUT CONTINUOUS SHORT RUN, HIGH MIX, LOW VOLUME PROCESS ENGINEERING GROUP ALL CPI FOCUSED TECHNICAL R&D GROUP ADDITIVE MFG THREE ENABLERS FOR GROWTH & POSITIONING 1.SDWT- 2.TECHNICAL PARTNERS 3.TECHNOLOGY
Editor's Notes
- #3 Key Points: How do we get from left to right ….transition skill sets, blending technology & people. Bottom line gain efficiency in both labor utilization & machine utilization
- #4 This Focus is on strong sectors in our economy, each have pro’s and con’s, all being sustainable, yet common thread introduces Major threat. Customers compete the work on a frequent basis with aggressive targets.
- #5 Another source of media that indicates the shift in technology and results in much lower labor cost Re-skilling the workforce Multi tasked workforce Low overheads / automation / real time data at operator level.
- #6 Technology expands capability of every individual and machine..discuss each major aspect
- #11 Focus – stabilize – create learning environment –establish relationship and commitment
- #12 First thing – create fundamental ground rules in the form of a statement
- #13 Promote methodology and establish linkage business objective and current / future states
- #14 Everyone, I mean everyone is involved and has knowledge of every aspect of our business.
- #15 WE have three major groups of activity..Planning & Expectation / Enabling / Execution – all have descrete values
- #16 Execution – Summing it up ….three activities supported by three technological advancements