armstrong® acoustibuilt™ - a case history in using agile ... · sustain 5 -7% top line growth...

Armstrong® ACOUSTIBuilt™ -A Case History in Using Agile Methods & Tools

STEVEN WILKINSON

February 2020

22016 – Our Operating Framework as a Standalone Ceilings & Walls Company

Our Goal

Our Strategy

Our Values Serve stakeholders with passion & balance, be candid & respectful, behave ethically, and do what we say

Sustain 5-7% top line growth and double-digit EBITDA growth . . . no matter what!

Sell into more spaces and sell more into every space . . . through growing the core and expanding into adjacencies

Our Purpose

© Armstrong World Industries

3Strategic Framework

Sell into more spaces & sell more into every space

1%

6%

8%

0%1%2%3%4%5%6%7%8%9%

Average Revenue Growth %

2013 – 2015* 2016 – 2018* 2019 – 2022*

1. Grow the Core (MF)• Accelerate Renovation (volume) • Innovation Leadership

2. Expand Into Adjacencies• Specialty Ceilings• Specialty Walls

3. Digitalization & Sustainability• Exceptional customer experience• Commitment to corporate citizenship


432

Category Trends… What the Market Is Looking for

Solutions address market needs

Volume/open space feelAcoustical solutions that meet the design intent

Higher end interior finishes with less design constraints

Product Transparency

Inspirational Flexible Design

Exposed Structure

Products without “chemicals of concern”

Innovative solutions free of “chemicals of concern”

A custom looks with standard parts and pieces

Acoustical Comfort Acoustical comfort and privacy in every environment

What the market seeks…. What AWI delivers…

Ideal combinations ofabsorption & blockingsound

Monolithic Visual with Acoustical Comfort

Uniform look, hides the grid ACOUSTIBuilt™ sound absorbing ceilings, with no visible seams


5ACOUSTIBuilt™ Monolithic Ceiling System

Armstrong® differentiated market driven innovation

Comcast Installation (Newark, DE) – Third floor cloud

Non cannibalized growth


6ACOUSTIBuilt™ Lowering Reverberation Time of Spaces

ACOUSTIBuilt has HALF the reverberation time as drywall!

• Significantly lower reverberation time than drywall

• Results you can hear and feel

Avenue drywall and ACOUSTIBuilt installations

Dry

wal

l

ACO

UST

IBui

lt

RT =0.78 RT =0.39 With ACOUSTIBuilt™ Ceiling

Without


7ACOUSTIBuilt™ - Installation Steps For Quality Product

Training the trainers for successful jobs – critical to growth ramp-up

Take no short cuts !


8Bring Down the Noise

Julian Treasure – Armstrong ACOUSTIBuilt™© Armstrong World Industries

9Applying Agile Methods/Tools to Innovations

Accelerating innovation, Agile approach to launching Armstrong® ACOUSTIBuilt™

Aspects of Agile

Applied to Innovation


10

The Agile Manifesto

Agile challenges the Status Quo in terms of our leadership beliefs

What an Agile Organization Truly Values

Individuals & interactions over

Working Products over

Customer Collaboration over

Responding to Change over

The Agile Manifesto was written in February 2001, at a summit of 17 independent-minded practitioners of several programmingmethodologies• Event history can be foundat:www.agilealliance.org/the-alliance/the-agile-manifesto

Agile concepts have spread from software development toproduct development in general• And from development to operations

Processes & Tools

Comprehensive Documentation

Contract Negotiation

Following a Plan

“While there is value for items on the right, We value the items on the left more”

Reference: Learning Tree International, Inc.

https://www.agilealliance.org/agile101/the-agile-manifesto

11Comparing Agile & Traditional Project Management

Agile Organizations: Lower uncertainty by adapting to new knowledge learned during the process

Goal Setting Goal Setting

Traditional Agile

Stated in terms of “Deliverables”

Predicting the future based on our knowledge

Waterfall planning managed with command and control

Stated in terms of “Customers”

Adapting to thefuture based on our learning

Incremental planningmanaged with userinput

High Uncertainty/Ambiguous

Low Uncertainty

Reference: Learning Tree International, Inc.


12Agile Language Translated to Laymens’ Terms

Overcoming resistance to change, take jargon to practical terms “Don’t make it a religion”

Short, focused, timeboxed work, tocreate a working prototype

Short, daily team meeting (15 mins)(do’ers not managers)

A visual team ‘to do’ list

Sprint

Scrum

Kanban Board

Minimal Viable Product(MVP)

Minimum set offeatures/benefitrequirements

AgileArmstrong(R) Lean

Rapid Improvement Team

Huddle/Gemba

Gemba Walk

MGPP’sProduct requirements

ImpedimentsConstraints


13Agile Teams & The People Who Thrive

Key Traits; Handles complexity & strives for agreement,embraces uncertainty & the challenge to reduce it

Cope’s with ambiguity without loss of focus

Concentrates on outcomes rather than process

Straightforward and open with opinions, while being polite/courteous when opinion conflicts with team

Striving to figure it out, “a can do attitude”

Stays calm, not overwhelmed with anxiety with unexpected outcome

Staffing for successIdentify the talent needed

Ref. McKinsey & Company

Results demonstrating relative importance of various personality traits


14Armstrong ACOUSTIBuilt™

Accelerating Innovation, Agile Approach to Launching ACOUSTIBuilt™

Applying Agile Tools/Methodologies


15Team and Project Structure

We selected an Agile approach because the opportunity involved new technology, uncertain requirements, and a desire to be early-to-market. We knew the opportunity but did not know the end product.

Agile Team Agile Method

Agile time boxed method, scope is flexible, time fixed.Sprint to meet objectives, teams adapt to constant change


16Dedicated Scrum/Huddle Room with Kanban Board

Connected Work Breakdown Structure with Kanban BoardSprints add time constraint to team

Kanban Board• Sprint, timing & goals,• Product backlog increments• Daily ‘to do’ list• Impediment list

• Working Prototype For Discussion Leadership Review

Work Breakdown Structure• Color Coded to Each Sprints• 6 Sprints in Total,• Indicates Fixed Timeframe (4Q 2018)


17

• Invent a seamless visual ceiling system with acoustical properties,Mineral Fiber tile installed on DGS with traditional drywall (mud and tape) install methods

• Target soft launch limited areas Fall 2018; Full launch Spring 2019

Monolithic Seamless Drywall - Sprints 1 and 2

• Completed Sprint 1 contractor installed mock-up,good learnings, seam finishing needs to be improved

• Sprint 2 contractor installed mock-up week of May 7th,goal is to achieve Level 4 drywall finish

Approach: Focus on Minimal Viable Product

Objectives

Install w/ Standard

Trades

Total Acoustics (.75/35*)

Sustain

Class AFire Repairable

Support MEP

Drywall like visual

(Calla Target)

Wall to Wall

Key Product Reqts

*35 CAC ‘Nice to Have’ Reqt

Used drywall contractor from FIRST mock up after lab trials


18

Drywall taper

Gen 1 Product Scope – High End Level 4 Finish

AWI MonolithicSprint 2 Focus

Minimally viable product requires a Robust and Repeatable Level 4 Finish

• Sprint 1 mock-up did not deliver a fully acceptable seam finish

Sprint 2 Innovation & Development Efforts:• Creating a drywall taper like option and finish:

Option 1 – scrim removal & extra sanding Option 2 – board routing, typical sanding

• Contractor Installation of Opt 1 & Opt 2, May 7 – 11

Need to minimize the height of the seam for a Robust and Repeatable Level 4 Finish

that is not highly dependent on contractor skill level

After first two sprints, seams still visible© Armstrong World Industries

19Monolithic Update – Sprint 3 Breakthrough

Standardized instructions delivered successful installation.Positive feedback from key leaders – Minimal Viable Product

Sprint 3: Mock Up 5

Installation InstructionsTaper depth verified Spackles specified Acoustic targets met

Monolithic visualSlight transparency in areas

Breakthrough Success

6/4


20

GOALObtain feedback from contractors:

• Installation cost estimates• Materials + packaging on jobsite• Installation instructions• Material handle-ability • Overall installation process

ACOUSTIBuilt™ Beta Installations Validating Minimal Viable Prod.

Positive contractor feedback and early validation of assumptions from BetasAdditional work/testing required on coating process

B401 Installation Washington DC

Validated Lower Install Cost Advantage

Validated Less Installation Steps than Competition [Overall # of steps comparable to drywall]

Positive feedback on lightweight board and all 4 edges tapered – potential for labor savings/installers less fatigued

Validated MVP Some iterative improvements

needed on coating process

Beta Installation Feedback

Coating process not intuitive for finishers – need to address robustness of process, training material and spec awareness

Validate Assumptionswith contractor VoC

via Beta installations

Chicago


22ACOUSTIBuilt™ Installation Highlights and Challenges

Iterations using contractor feedback during ramp-up to beta test sitesCustomer paint point -> rapid innovation -> simpler, robust solution

Validated Assumptionswith contractor VoC

via Beta installations

1/29/19Status

Reduced variationMore User Friendly

Tested and validated in Avenue Install

1 2 3 4

HARDER PROCESS3 Coats

3 Pressure Settings3 Processes

SIMPLER PROCESS4 Coats

1 Pressure Setting1 Process

SUCCESSFULProof of ConceptSUCCESSFUL

Proof of Concept


23ACOUSTIBuilt™ First Few Jobs Challenges

Installation instructions and education, critical to successful visual

Ultra lightweight spackle• Easy sand and blend

Overfill fasteners• Eliminate dimple• Board absorbs spackle

Lightly sand• Avoid scrim damage

Focused Job Tracking• ISS Support at job• Feedback

Dedicated Resources• National Sales Manager• 2 ISS Reps

Education Program• Hands on courses

Add’l Training for Reps• Regional Mtgs• Hands on training

AGILE DEVELOPMENTCRITICAL STEPS

COMCAST INSTALLATIONFIRST CLOUD

POTENTIAL COUNTERMEASURES

Fasteners and Seams visible

Didn’t use correct spackleDidn’t overfillOversanded at the seams

Successful installs when ISS present and/or hands on

experience*See Slide 7


24Difference Between Classic and Agile Product Development

• The problem or need can be identified & understood by up-front studies & assessment (homework)

• The requirements for the solution can be defined correctly before the Development stage

• The problem or need can only be understood by exploring possible solutions

• Thus, understanding the requirements does not occur before Development, but is part of the solution-finding.

Project environment is uncertainProject environment is stable & predicable

ClassicProject Management

Build

TestLearn

IterativeProject Management

Basic Understanding (source: P Furst, Five Is)

25ACOUSTIBuilt™ Go To Market – Delighting Customers

Advertising plan and GTM efforts continue to be critical to success

LABELS COMPLETE INSTALLATION VIDEOIN WORK

DEMO BOX AND SAMPLES

6,300 SF INSTALLNORTHERN, DE SPRING 2019


26Embracing Agile Culture

Teams encouraged to Kanban Boards

Using Agile ToolsMaking Projects Visible


27Kanban Board, Sprint Goals, & Product Backlog Increments

Team ‘To Do’ list ~2-3 day actions items© Armstrong World Industries

28Kanban Boards Don’t Have To Be Complex

Each project is different, choose the right tool and level© Armstrong World Industries

29Setting Up Kanban Room for Sprint Meetings

Different boards per project –Variations on frequency of use© Armstrong World Industries

30Armstrong ACOUSTIBuilt™ Team + Many Others

Terrific effort by the entire team

Thank YouAcknowledgements

Jason CavanaughJohn HughesLori SchaeferBart Torres

Eric KragnessAlex Waltmeyer


armstrong® acoustibuilt™ - a case history in using agile ... · sustain 5 -7% top line growth...

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