building a culture of continuous improvement...• develop tpm checklist with cadence to keep...
TRANSCRIPT
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Building a Culture of Continuous Improvement
The Business System Approach to Best Practices
Eric LussierSenior VP, Steel Business System
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Who We Are Focusing on Today in 2019
Disparate Companies – Different Markets, Suppliers, & Customers
Diversified Industrial Group + IWCO
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Steel Business System Overview
Steel Business System is a proven, holistic approach to increasing shareholder value and achieving long term, sustainable and profitable growth
STRATEGY DEPLOYMENT forms the roof of the Steel Business
System and serves to convert long-term strategic plans into actionable tactical plans to align the goals of
each business
The STEPS of the Steel Business System provide a foundation of process-oriented tools that drive performance improvement in all
aspects of the business
SBS strives to eliminate non-value activities and improve business performance (SQDC) through
deployment of LEAN TOOLS, VARIANCE REDUCTION TOOLS, and TRANSACTIONAL
PROCESS IMPROVEMENT
GROWTH TOOLS provide standard processes to achieve high
customer satisfaction thereby driving profitable, organic growth
based upon VOC
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Strategy Deployment
Associate DevelopmentLean Tools
Variation Reduction ToolsTools for Growth
Safety
Quality
Cost
Delivery
Inventory
Grow
thSteel
Business System
Process Systems
People Systems
Business System is the interface between Process Systems and People Systems
Key Concepts• 5S+S• Visual Management / QDIP• Metric Driven• Flow, Pull, Takt• Waste Elimination• Standard Work• Daily, Weekly, Monthly Checks• Cycle time reduction• Problem-Solving
Key Concepts• Leader Standard Work• Daily Accountability• Leadership Discipline• Live the philosophy• Long term thinking• Organization design• Leaders as teachers• Gemba – Go See
Processes Highlight Problems…People Solve Them
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Pillars of the Business System
Respect for People
Continuous Improvement
Equally balanced pillars for a reason!
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TPM
Lean ManufacturingModel Cell, 5S+S, Visual Management (+QDIP), Lean Leadership
New Product Development / VOC / DFSSStage Gate Development / Tool for Growth / Variation Reduction
Strategy DeploymentAlignment to the Business Objectives
Lean Learning KaizensCross-Company Participation and Teaching Lean Tools
Getting Things DonePersonal Productivity / Workflow
A Historical Look
Time
Identify & Solve Problems
Solution SellingProcess for Standardized Selling
Breakthrough Performance
3P for Processes and VRK
Prevent Problems
2008
2008
2009
2010
2011
2012
Sustain Gains
Securing the Future
Tools for Growth
2012Predict and Prevent Downtime2012
Steel Business System Implementation
Managing Work
Optimize
Prevent Problems
Rapid Innovation Feed the NPD Funnel2013
Acquisition IntegrationSynergy and Accelerate Growth2014
2015 Problem-SolvingCountermeasures
Future Growth
Build Culture
GrowthIntellectual PropertyMarket Research / VOC
2016Skill Refinement
2017 - Today StrategyStrategy CreationOrganic Growth / Strategic Thinking
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Foundational Concepts of the Steel Business System
• Businesses are composed of processes– All processes generate and have waste– Processes can be improved
• Processes have customers– Lean processes gives customers what they want when they
want it with minimal waste• Variation is in everything
– We cannot eliminate it, but we can reduce it or its effects• Variation leads to poor process capability
– Increased non-conformances– Increased inventory– Increased cycle time– Increased cost
There is even a PROCESS for Leadership!
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Build the Culture of Lean!
Goals & Objectives of the Steel Business System
• Involve all employees in the transformation– Employee Problem-Solving
• Establish a culture of continuous improvement– Sustain the gains!
• Eliminate all types of waste from the business• Align and Execute Strategy through Strategy Deployment• Improve morale, lead time to the customer, market share,
productivity, quality, and safety• Reduce working capital and Capex• Create a competitive Advantage• Increase Shareholder Value
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Strategy Reference / Research
Quick summary• Minimize risk by building a wider
moat• Best ROI - Focus on Operational
Excellence
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Steel Approach to Create the Culture
• One full time Business System champion at each manufacturing location– Sustain changes / drive culture– “Seasoned” experience
• “A good leader can make a poor plan succeed, a poor leader can kill the best of plans.” - George Koenigsaecker
• Train all salaried in weeklong lean leadership training– Initially consultant led – now led internally
• Common visual management format with problem-solving – +QDIP– Make problems visible…so they can be solved!
• Model cell• Lean Learning Kaizens• President’s Kaizen• Coaching & mentoring….coaching & mentoring….coaching &
mentoring….
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Key Principles for Steel Business System (Lean) Implementation
• Focus on the Gemba (where work is done)• Start with the Value Stream (not isolated project)• Just in time training (learning by doing)• Drive cultural change through concrete projects and coaching• Engage work force for ideas and buy-in• KEY TO SUCCESS: Involve management and those in pilot
area in real time learning process– KAIZEN!
“Lean management is very much about asking questions and trying things or encouraging others to try things. Lean management itself is not much about providing the right answers but it is very much about asking the right questions.” – John Shook
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Kaizens Get People Engaged!
• Classroom Training• Present real business problems (opportunities for improvement)• Explain Steel Business System and Lean Manufacturing overview• Teach Lean elements along with observations on shop floor
• Planning• Teams are created to focus and solve problems with specific goals• Employees are empowered to make decisions and take action
• Implementation• Activities include cleaning, physical rearrangement,
documentation, etc.• Transformation occurs over a 2-3 (or 5) day period
• Report-Out• Teams prepare presentations of activities conducted during kaizen
week• Teams share experiences and knowledge with all other plant
employees
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Does Lean and Kaizen apply for my company?
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Does Lean and Kaizen apply for my company?
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Does Lean and Kaizen apply for my company?
Beginning Points• Lean requires process stability before improving• The tools of lean are simply countermeasures to problems• Lean is the over-arching philosophy focused on eliminating
waste and defects (variation reduction is simply a tool)
• What problems can you solve with lean tools related to Metallizers, Coaters and Laminators?
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Sample Tools
• TPM• SMED• Visual Management• Kaizen• VRK• Value Stream Mapping• Flow
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Vacuum Metallizer TPMDunmore Keystone
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Day 1: TPM Education
• Clean and inspect equipment
• Tag problems• Fix problems that are
immediately fixable, prioritize others
• Develop TPM checklist with cadence to keep machine in proper state
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Problems Identified
• How many tags were written? 56• How many were repaired during the kaizen event? 42• % complete: 75%
– Air leaks– Oil plugged filters and pipes– Loose/hanging cables– General tidyness
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6s Future State Board
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Operator Asset Care List
C = Cleaning, I = Inspection, L=Lubrication, O=operator, and M= Maintenance
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Material Flow Warehouse Kaizen
Dunmore CorporationBristol, PA Facility
September 17-21, 2018
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Team Photo
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Material Flow Spaghetti Diagram
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WIP Inventory Area
All DAF (customer) material
Leader material
All R&D material
Empty Rack!!!
After
Scrapped material
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Material Review Board (MRB) Process
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AHA! Moments
• Forklift operators are spending a large amount of time locating and shuffling rolls around
• Materials are not grouped in a manner to make identification and quantities easy
• Not optimal flow of materials relative to the coaters and metallizer• When roll in a rack ages, it doesn’t get dispositioned in a reasonable
manner• Don’t have a defined temporary storage area• We have a lot of water in storage• Too much “stuff” in the available warehouse space• Hard to get good storage density due to the number of racks, type of
lift trucks, weight of rolls, diversity of roll sizes
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Bobst Step 1 TPM• Team Members:
– Micheal Gardner– Kingsley Mgbike– Riley Gibson– Dylan Johnson– Darren Torneden– Joe Souders– Zebulun Eggers– Mike Flory
• Special Thanks: Rick Stanwix and Scott
Younkin and Russell Epperson
Lawrence, KS
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Changed 4 Cameras for Chamber Monitor
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The Pit: Safety Concern—Foil Scrap Can Short Transformers in the Pit
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Results Summary
Average Pump-Down Time = 31+ Minutes
Average Pump-Down Time = 15 Minutes, 50% improvement.
Vacuum Loss Frequency During Pump-Down = 1 for 2
Vacuum Loss Frequency During Pump-Down = 0
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SMED Kaizen, Lawrence KSOctober 2018
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Changeovers Defined
• Three primary types of changeover
• Process Change was the focus with an average duration of 175 minutes
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Spaghetti Diagram
• Each of the steps / motion in the process was placed in a spaghetti diagram
• Significant time spent walking in and out of the Delpro area
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Changeover AnalysisWhere Is The Opportunity?
Writing roll # on finished rollUnloading finished roll (center slit)Cut down corePut on single (core)Lower layon arm and raise bladeCleaning (not seen in video) 5 minutes - coater 1remove CH1 wax ink reservoirRemove wax supply hoses from drum CH1Get glovesSeal wax drum and removeGet glovesTake out CH1 Chamber (use laq for sizing)Junk drum to formulationsUnhooking portableTaking portable back to formulationsRemoving cartagan shaft CH1Take out CH1 TrolleyRemove cardigan shaft CH2Remove CH2 TrolleyWaitingUnhooking CH2 hosesCH1 replace bladesBring CH2 tray backstop to back and soak
• Identified 92 tasks that occurred during the changeover
• Identified whether tasks were Internal or External
• Separated Internal / External tasks
• Brought in Subject Matter Expert – Kyle Robb
• Streamlined the process• Identified tasks that
could be done in parallel
Internal – Equipment has to be stopped in order to do the task. External – task can be performed while equipment runs
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Step Process Description MAN AUTO CAM
9 Writing roll # on finished roll 0.37
10 Unloading finished roll (center slit) 3.45
11 Put on single (core) 3.17
12 Lower layon arm and raise blade 1.02
13 Cleaning (not seen in video) 5 minutes - coater 1 5.00
14 remove CH1 wax ink reservoir 2.10
15 Remove wax supply hoses from drum CH1 2.10
16 Rewebbing for sizing 6.50
17 dryers turn on 0.03
18 Removing cardan shaft CH1 2.27
19 Take out CH1 Trolley 0.54
20 Remove CH2 Trolley 13.05
21 Use motorized pallet jack (prime mover) and move vertically down the hall
22 Turn horizontally at the formulations door and pick up the trolley
Position under hoistUse Prime to position to move vertically down the hall (one person operates pallet
and one person steers
Move to CH1
Two people push trolley in place 20.00
12 Replaced cardan shaft for CH1 2.55
Total 62.15
51.0
0
54.0
0
Graphical Increments (min) 3
33.0
0
36.0
0
21.0
0
24.0
0
27.0
0
30.0
0
42.0
0
Work Sequence Operations by Operator (minutes)
Time (min)
3.00
6.00
9.00
12.0
0
15.0
0
18.0
0
39.0
0
45.0
0
48.0
0
Delpro Coating Line Standard Work Combination SheetShift Leader Daily Requirement 6 Takt (min)
Developed New Work Combination
Step Process Description MAN AUTO CAM
9 Cleaning CH2 *20 minutes 20.00
10 Turn dryers off / dryer 1 1st 1.00
11 Remove cardan shaft CH2 1.51
12 Unhooking CH2 hoses 1.12
13 Remove CH2 Trolley 13.05
14Use motorized pallet jack (prime mover) and move vertically down
the hall
15 Turn horizontally at the formulations door and pick up the trolley
16 Position under hoist
17 Rmove finger guard
18 Remove cylinder with hoist
19 Place on the soda blaster (have cleaned ahead of time)
19 Use hoist to pick up sizing cylinder that was pre-staged
19 Use hoist to place on to the trolley and attach finger guard
19Use Prime to position to move vertically down the hall (one person
operates pallet and one person steers
20 Move to CH1 20.00
20 Two people push in place 2.00
20 Connect size head CH1 Reservoir/tubing 5.01
20 Cleaning laq doctor blade (correct) 5.00
20 putting in doctor blade chamber 0.42
21 screen messing with / to lift heads 1.47
22 Wet out size cylinder 5.00
Run test pull 4.00
Measure coat weight 4.00
12 Test stamp 4.00
87.58
88.2
0
Graphical Increments (min) 4.2
54.6
0
58.8
0
63.0
0
67.2
0
71.4
0
75.6
0
29.4
0
33.6
0
37.8
0
42.0
0
46.2
0
50.4
0
Work Sequence Operations by Operator (minutes)
Time (min)
4.20
8.40
12.6
0
16.8
0
21.0
0
25.2
0
79.8
0
84.0
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Delpro Coating Line Standard Work Combination SheetOperator #1 Daily Requirement 6 Takt (min)
ManMachWalk
Manual Machine Walk
Step Process Description MAN AUTO CAM
1 Unhooking portable 2.14
2 Taking portable back to formulations 0.39
3 Take out CH1 Trolley 0.54
4 Bring CH2 tray backstop to back and soak 1.01
5 Remove drip tray and bring to back to soak 3.51
6 getting tray/backstop 1.43
7 getting portable from formulations/connecting 11.26
8 Juice down 7.00
Total 27.28 Graphical Increments (min) 2.5
2750
17.5
0
20.0
0
22.5
0
25.0
0
Work Sequence Operations by Oper
Time (min)
2.50
5.00
7.50
10.0
0
12.5
0
15.0
0
Delpro Coating Line Standard Work Combination SheetFormulator Daily Requirement 6
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Kaizen Results
• Moved cleaning trough to point of use by the Delpro• 5S the shelving area at the Delpro• Ordered Work Station for the Operator to hold the blade
assembly• Brought in additional carts from Dunmore and modified to fit our
needs• Size coating tray / small mixer modified• Ordered tools needed by the Delpro Operator• Changeover reduction down to 87.58 minutes from 175 minutes
by following new process
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“Leaders learn by leading, and
they learn best by leading in the face of obstacles.
As weather shapes mountains, problems shape leaders.”
Kaizens are a fantastic way to present obstacles to overcome.
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What a Lean Culture is NOT About
• Manufacturing Heroics• Fire Fighting
– Some of our best fire fighters may also be arsonists!• Shooting the messenger• Fixing the blame versus fixing (solving) the problem
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To Change the Culture
• We must know…– Current state – what culture do we have today– Future state – what culture do we want– And be able to clearly delineate the differences between the two
• Then, continue talking about the culture that we want and the behaviors we want to see– Reinforce those behaviors– “What gets measured gets done”
• Next, do things differently in alignment with the behaviors– And do those things consistently and frequently for a long period
of time• Celebrate and recognize success – reward the behaviors you
want to see
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Sustaining the Changes
• Kaizen event follow-up is critical• What gets measured gets done
– Are lean activities / participation part of your performance review process?
• Standard work sustains any improvement• Multiple kaizen events on same areas lead to further
improvement• Do you have dedicated resources in place to support lean?
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Visual Management Principles
• +QDIP– Our job is NOT to make the scoreboard metrics “green”– Our job is to make people become strong problem solvers
• This focuses on process rather than results which is what we want (process is sustainable)
– +QDIP boards should focus on measuring process– + for Safety is first and foremost for a reason– Purpose is to bring visibility and drive countermeasures– Develop a culture of problem-solving!
Businesses are composed of processes. Processes can be measured.
What gets measured gets done.
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Standards Promote Common Language and
“Intelligent Questions”
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Lessons Learned
• Lean is NOT about waste elimination– It is all about PEOPLE– Demonstrate and clarify What’s In It For Me?– Define compelling reason to change – burning platform mentality
• Pick a fight if necessary• Good to Great Mentality with People
– Right People on the bus…wrong people off the bus then worry about right seat
• Focus on the process – if it is right, the Results will follow• Solve the problem – don’t fix the problem• Gemba Walks
– Best opportunity to learn, reinforce culture, and understand– Walk the Talk! Lead by Example and Model the Behavior
• What can I do to help? What are the barriers?
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Lessons Learned Continued
• Theory Y mentality– Work is as natural and as much fun as play– People want to do a great job and be involved
• Accounting / Finance role – share meaningful metrics as to where individuals / companies are at in game– Teach / train people in metrics that are important to senior
leadership and stakeholders – speak the CEO’s language• Recognition of efforts provides fulfillment
– People want to know their efforts matter– People like challenges and want to be respected and recognized
for their efforts
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Final Thoughts• Culture change takes time
– Have realistic expectations at first• Consistency in purpose is critical• Success breeds success so celebrate!
– Use lean to achieve early successes to build momentum
• Focus on the “right” things and results will follow• People, particularly talented people, are most
valuable asset• Communicate, communicate, communicate
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• We are on a multi-year journey that continues…
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Purpose Driven Excellence
• Steel Business System builds a culture of problem-solvers and thinkers pursuing excellence
• So we can serve our customers better• And grow profitably!
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