murray easton engineering and construction. nov08/ms292-08 a complex leadership challenge quality of...
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Murray Easton
Engineering and Construction
Nov08/MS292-08
A Complex Leadership ChallengeQuality of Performance and Product
Nov08/MS292-08
“Leadership is about capacity – the capacity of leaders to listen and observe, to use their expertise as a starting point to encourage
dialogue between all levels of decision making, to establish processes and transparency in
decision making; to articulate their own values and visions clearly, but not impose them –
initiating change that makes for substantive improvement rather than managing change”
Live safety and quality – zero compromise
Leadership
SafelyDelivering
Affordable
Together
Capability
Nov08/MS292-08
My background
3
Nov08/MS292-08
The Product
4
Submarine Solutions Business Units
Barrow-in-Furness (4427)
Farnborough (82)
Weymouth (50)
Filton (13) Ash Vale (38)
Total Employees – c 4600
2009(numbers excl of apprentices, graduates)
Nov08/MS292-0804/05-MS001-05
Barrow Shipyard
Nov08/MS292-08 7
Historical View – The Challenges
SafelyDelivering
Affordable
Together
Capability
• Cost plus contracts, behaviours and mentality, high quality/low productivity
• Monopoly – Trident
Then....
• Astute, a fixed price development ‘prime’ contract arrangement.
• 2002 – 3.5yrs late, £760M loss.
‘monster of the deep wreaks havoc’
Nov08/MS292-08 7
Historical View
SafelyDelivering
Affordable
Together
Capability
• Difficult to compete when you haven’t been playing regularly!
10 year gap design 10 year gap like-for-like production skills
Headco
unt
0
2000
4000
6000
8000
10000
12000
14000
Astute ClassVanguard Class
Upholder
1988 1992 1996 2000 2004 2008
TrafalgarSuccessor
Workforce engaged in Submarine building
Other
Nov08/MS292-08 7
Business Improvement – If you could turn back time!
SafelyDelivering
Affordable
Together
Capability
Headco
unt
0
2000
4000
6000
8000
10000
12000
14000
Astute ClassVanguard Class
Upholder
1988 1992 1996 2000 2004 2008
TrafalgarSuccessor
Workforce engaged in Submarine building
Other
Could have managed the samewith approx 7000 employees!
• Abolish the PCO
• Flatter organisation structure
• Re-baseline schedule
• Change contract to target costs, incentive fee
• Address behaviours and culture
• Less hierarchical
• Increased employee engagement and teamwork
The Immediate Response
SafelyDelivering
Affordable
Together
Capability
Attitude + Behaviour = Performance
SafelyDelivering
Affordable
Together
Capability
ProcessesProcesses
ProcessesProcesses
ProcessesProcesses
People
Nov08/MS292-08 8
• 5 years ago Boat 4 was becoming increasingly unaffordable - threat to seven boat programme.
• Our team responded to the Affordability challengethrough performance, innovation and determination
• We did not have control of some external influences
Response - Affordability
12
34
Boat
Cost
30% Overhead
Reduced
Cost Conscious
Culture
Supplier PerformanceManagement
20% Material
Reduced30% Labour
Reduced
Productivity
SafelyDelivering
Affordable
Together
Capability
Nov08/MS292-08 8
• Leadership drove a tenacious ZBB programme (Zero Based Budgeting)
• Questioned affordability of all non-essential expenditure
• Cost consciousness
Overhead Costs
SafelyDelivering
Affordable
Together
Capability
Nov08/MS292-08 8
• Change of build strategy.• EB/Vertical Outfit.• Modules ‘vs’ stick build
• Productivity and Lean manufacturing.• Pipeshop V1• Pipeshop V2
• Safety culture
• Responsible behaviours (Organisation Development)• Sickness absence• Motivation• Reward and recognition (financial and non-financial)• Mature working arrangements (breaks, etc)• Etc
Labour Costs & Innovation
8
SafelySafelyDelivering
Affordable
Together
Capability
Nov08/MS292-08
Lean Engineering Principles
16
Nov08/MS292-08
• Major work improvements• DDH – Service Towers
• ‘plugged in’ tools, QC, Planning, Leadership, etc.
• Kitting – 100% kitted; 2 weeks supply on one pallet
• Value stream mapping
• Recruitment, attitude focus
• Coaching
• Collective and individual responsibility – One Team• Peer group pressure
• Challenge and be challenged – trust and respect agenda
Response – Labour & Innovation
Nov08/MS292-08
• Embraced genuine 2 way communication philosophy.
• End to end comms process redesign; consistent themes, language and media.
• Regular face to face employee briefings by leadership.
• Employee forums.
• Team briefs.
• Visual management (supported).
• PRIDE – generating innovation and providing recognition.
Internal Communication, Engagement and Motivation
Nov08/MS292-08 88
SafelySafelyDelivering
Affordable
Together
Capability
Nov08/MS292-08
Culture and Behavioural ImprovementThe Change Wheel
Performance
Management
Organisation
Focus and
Clarity
Leadership
Development
Reward and
Recognition
Teamwork
Communication
& Involvement Behaviours
to Succeed
SafelyDelivering
Affordable
Together
Capability
Nov08/MS292-08
Performance
Management
Organisation
Focus and
Clarity
• Build strategy• Logistics (kitting) & Supply Chain• Monthly performance and development reviews• Performance improvement plans (PIPs)• Visual Management (Lean)• Behavioural Performance Feedback (BPF)
• Objective deployment• Common and Functional clarity• Fixed people manager objectives (safety, quality and performance management)
Culture Change
Nov08/MS292-08
Leadership
Development
Reward and
Recognition
• Development centres• Coaching• Conferences (engagement)
• Grading structure• All employee bonus (aligned to Exec bonus)• PRIDE (recognising innovation)
Culture Change
Nov08/MS292-08
Teamwork
Communication
& Involvement
• Natural Work Teams (Psychologists)• Transactional Analysis (how we work together)
• Employee opinion surveys (39% - to – 80%)• External comms• Internal comms• Trade Union partnership working• Community newsletter• Celebrating success• Work, Life, Barrow
Culture Change
Nov08/MS292-08 10
• Absence waste = cost of those absent + cost of disruption in the business.
Sickness Absence
• Performance recognised via national HR awards. • If you need medical help - you got it.
• We need you healthy – and we need you at work!
Down over two thirds!
Reduced to
per annum
9%+ 2003 2008
per annum
2.5% SafelyDelivering
Affordable
Together
Capability
Safety
First Think Safe, Act Safe, Be Safe.
10RIDDORS
350Accidents
42Incidents
1566Near Misses
118RIDDORS
1323Accidents
21Incidents
9Near
Misses
2003Jan-Dec
2008Jan-Jul
SafetyFirst
• The threat of a serious accident always remains.
• Risks must be avoided, there is always more to be done.
• Point of Work Risk Assessments
• Ensure all assess own work area.
• Look after workmates/ colleagues and those around you.
•You have to ask, what are you going to do to ‘take care’?
Nov08/MS292-08 13
Safely
Safety 2009+
• The next phase of the Safety First campaign includes:
•Behaviour and personal responsibility•SHE - Safety, Health and Environment•Product Safety •Nuclear Safety•“We are no longer a shipbuilder that builds nuclear vessels, we are a nuclear facility that builds submarines”
Delivering
Affordable
Together
Capability
All of usContractors Apprentices New starts
Nov08/MS292-08 8
• Supply Chain• Key supplier forum
• CAD accuracy + Optimised Manufacturing Processes = Material cost saving through reduced waste• E.g. Pipework
Response – Material
SafelyDelivering
Affordable
Together
Capability
Nov08/MS292-08 9
SAFELY DELIVERING AFFORDABLE CAPABILITY TOGETHER
Nov08/MS292-08 8
• Individual and company ownership of quality and safety to the extent that the regulator was prepared to reduce his oversight with the confidence that we were managing our own safety and quality, sharing identical values.
• Complete transparency to any external regulation and open invitation to external inspectors to participate in management meetings about quality and safety.
• Red-team reviews, objective and transparent evaluation of project performance on an annual basis, including active participation of senior NII personnel.
• Mutual trust and respect.
“A Learning Company” - NII
SafelyDelivering
Affordable
Together
Capability
Nov08/MS292-08
My Learning Observations of Leadership• Credibility
• Capability
• Courage
• Commitment
• Communication
• Caring (and a large dose of emotional intelligence throughout management)
• ....and FUN !(aka COMEDY, for those of you
that need CONFORMITY)!!!!!
Nov08/MS292-08 9
QUESTIONS?
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