I DT MC IC

Lean Cell Design @ Siemens

The True Power of Employee Engagement

Jon Blackburn – Project Leader, Siemens UK

Agenda

1. An Introduction

2. The Lean Cell Design Concept

3. How is it used?

4. How did we implement it?

5. The Results

6. Next Steps

7. Summary

An Introduction

Lean Enterprise @ Siemens

‘93 ‘97 ‘00 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08

5S

Office

Ideas

Lean

Toolbox

LCD

Un

its

pe

r h

ea

d

‘09

Lean

Office

Lean

Supply

Chain

EFQM Assessment

Lean Vision 2011

“To establish the capability of delivering product to the customer in a 1 day window”

Lean

Roadmap

CIP

Suggestio

n Scheme

Direct

Replenishment

Congleton

2011

TQ

6-Sigma

Strategy Alignment

Systematic Review

4th Quarter

(July – Sept)1st Quarter

(Oct - Dec)

3rd Quarter

(Apr - Jun)2nd Quarter

(Jan - Mar)

▪ CIP Quarterly Review

▪ Budget Agreement

▪ Half yearly Business Review UK/SD Senior

Management (dates may vary)

▪ Lean@Congleton review

▪ Balanced Scorecard content & target

setting review

▪ UK H&S Peer Audit

▪ Year End

▪ Leadership Feedback

▪ CIP Quarterly Review

▪ PMP Half Year Review

▪ Employee Feedback Session

▪ Budget Preparation

▪ Budget Review & Financial Target Setting

▪ Customer Satisfaction Survey Results (Erlangen)

▪ Supplier Day

▪ PMP evaluation & target setting

▪ Staff Dialogue cascade

▪ Congleton Policy & Strategy Review - Integrated

Management Review (Quality, Environment & H&S)

▪ CIP Quarterly Review top+ Key Projects/

Initiatives review

▪ Supplier Evaluation

▪ Employee Feedback session

▪ PMP Round table

▪ Risk Management Review

▪ Employee Opinion Survey (every 2 yrs)

▪ CIP Quarterly Review

▪ Succession Planning

▪ Suggestion Scheme Review

▪ EFQM Initiative Review

▪ Product Portfolio Review

▪ Mid Year Congleton Policy & Strategy Review -

Integrated Management Review (Quality,

Environment & H&S)

▪Evaluative Compliance Assessment

▪Half yearly Business Review UK/SD Senior Management

(dates may vary)

▪

Our Values & Behaviours

Vision

Strategy Wheel

Mission

Balanced

Scorecard

Strategy

Definition

SWOT

Business Excellence

“To achieve excellence in big things, you develop the

habit through smaller issues. Excellence is not an

exception, it is a prevailing attitude.”

The Business Excellence Team is focused on:

▪ Supporting the business in developing efficient business processes

▪ Optimising our resources

▪ Motivating our people

▪ Ultimately satisfying our customer

People make it work, but what makes the people?

Four Engagement Behaviours (Macey/Schneider/Barbera/Young 2009):

1. Adaptability; dealing with change and developing the skills needed

2. Expand roles at work; accepting that there is more to a role than the job spec

3. Persistence; task accomplishment and degree of urgency to achieve this

4. Responsiveness; initiative, don’t wait to be told, act on issues as they arise

How did we approach this at Siemens Congleton……..

Adaptability @ Siemens

Preparation Workshop Prototype Final Install

2 weeks 1 week 5 weeks 4 weeks

Sta

ge

Ex

am

ple

▪ Employees given opportunity to create their own work cells

▪ Alignment with organisational vision

▪ Skill Development & empowerment

Expanding Roles @ Siemens

Today's

Standard

Future

GrowthVSM

Segment Leader

Cell Leader

Operators

‘Kai’ translates as change ‘zen’ translates as good or better

Shop Floor Management:

Persistence & Responsiveness @ Siemens

clear role concept

project order, target, define SFM Core Team

Kick Off with Infor-

mation to shop floor

1st Pilot

Concept phase

Apr May June July Aug Sep Oct Nov Dec

F Dowling, N Eardley, S Nadin

roll out training and

exercise phase

project definition

training concept with budgeting costs

Shop Floor Cell Leader, Cell and Value Stream Manager

2 people of MM4 VS1

training phase, follow up, evaluation, improvement

final presentation

self and

mgmt.

assessment

feedback workshop

project work

experience &

coaching

training phase

identify training

needs

selection phase

Application

phase

Training offered by Internal,

External (MI,EEF) and TMI

Saving transfer through

▪CIP workshops on site

▪Project, using CIP tools

and IT tools, consider

costs, presentation

Feedback workshop with

CL & operator

find out leadership

Competence

Self and mgmt. assessment

85% of all 19 criteria

check ability to be SCL

Show ability to be CL

▪using learned

methods

▪ talk about experience

in improvement process

hand out certificate

by MD - celebration

Self and mgmt. assessment

Use of 19 criteria matrix

qualification matrix

difference between course

attended” and “ability to use

material learnt”

Start Roll Out & Exercise

Phase

The Key Driver

Our people!

Our Vision – The 2011 Project

Early beginnings……

Frederick W. Taylor (1856-1915) - looked at individual workers and

work methods.

▪ Time Study and Standardised Work - Scientific Management.

▪ Science to management was sound but Taylor simply ignored the

behavioral sciences.

▪ He had a peculiar/controversial attitude towards factory workers:

“I can say, without the slightest hesitation, that the science of

handling pig-iron is so great that the man who is ... physically able

to handle pig-iron and is sufficiently phlegmatic and stupid to

choose this for his occupation is rarely able to comprehend the

science of handling pig-iron”

Frederick Winslow Taylor

A new approach, how did it all come about?

▪ Competitors in Central Europe adopting a

new approach to Lean Cell Design

Our approach………..

Computer Software!!!

Computer Software???? What about………

Lean Cell Design, the journey begins…….

LCD Project Plan

CW45 CW46 CW47 CW48 CW49 CW50 CW51 CW02 CW03 CW04 CW05 CW06 CW07 CW08 CW09 CW10 CW11 CW12 CW13 CW14 CW15 CW16 CW17 CW18 CW19 CW20 CW21 CW22 CW23 CW24 CW25 CW26 CW27 CW28 CW29 CW30 CW31 CW32 CW33 CW34 CW35 CW36 CW37 CW38 CW39

JoWS1.1

BOP

WS1.2

I/O

WS1.3

ProfibusWS4.1 WS4.2 WS4.3 WS5.1 WS5.2 WS8.1 WS8.2 WS10 WS12

AdeWS2.1

A6 FSC

WS2.2

A6 FSB

WS4.1

A6 FSA

WS4.2

A6 FSAWS6 WS7.1 WS7.2 WS9 WS11

Sue

Ana

NOV DEC JAN

X-Mas

FEB MAR APRIL JUNE AUG SEPJULMAI

CW45 CW46 CW47 CW48 CW49 CW50 CW51 CW02 CW03 CW04 CW05 CW06 CW07 CW08 CW09 CW10 CW11 CW12 CW13

JoWS1.1

BOP

WS1.2

I/O

WS1.3

ProfibusWS4.1 WS4.2 WS4.3 WS5.1

AdeWS2.1

A6 FSC

WS2.2

A6 FSB

WS4.1

A6 FSA

WS4.2

A6 FSAWS6 WS7.1

Sue

Ana

NOV DEC JAN

X-Mas

FEB MAR

LCD Workshop Timeschedule (21 WS planned)

The catalyst……

Costs:

Develop value- added activities by

designing work processes to improve

time management and determining

the best process and avoiding

unnecessary waste.

Quality:

Define and standardise processes

- by determining the best and most

efficient processes

- in order to minimise failures

Delivery:

Improve reliability and throughput time

by concentrating on value-added

activities and parallelisation of

secondary activities

Goal: To improve competitiveness by

- reducing costs

- improving delivery reliability

- increasing quality

C - Costs

Q - Quality

Delivery - D

L C

D

Ergonomics

Lean Cell Design: The Process

Preparation Workshop Prototype Final Install

2 weeks 1 week 5 weeks 4 weeks

Sta

ge

Ex

am

ple

Current State PFA

Data Gathering,

Standard Times etc.

CIP Brainstorm

Preparation

Cardboard Mock up:

• Creation of quantity structure, identify needs and lot size

• Identify Packaging of raw materials

• Construct mock up of workstation using cardboard

• Define the optimal placement and feed of raw materials

• Correct selection of container size. Use of reusable

packaging

• Placement of tools, utilities and devices

• Simulate first production (without screwing and soldering)

Cardboard Mock Up

Theory:

• History, goals of LCD, “The 7 kinds of waste”

• Team building: introduction, motivation game

• Define expectations of the group

• Develop workshop goals together

• Discuss the actual material and product flow

• Identify advantages, disadvantages, quality problems

• Demonstrate the potential of existing LCD workstations

Duration: approx. ½ day

Theory

Transport

Lean@Congleton

All Materials Movement, double handling

The Seven Wastes

Transport

Lean@Congleton

All Materials Movement, double handling

The Seven Wastes

Inventory

Lean@Congleton

Stores, buffers, batch sizes & their control

systems

The Seven Wastes

Inventory

Lean@Congleton

Stores, buffers, batch sizes & their control

systems

The Seven Wastes

Motion

Lean@Congleton

Reaching, bending, exertion, excess

walking excess turns to loosen, unpack

The Seven Wastes

Motion

Lean@Congleton

Reaching, bending, exertion, excess

walking excess turns to loosen, unpack

The Seven Wastes

Waiting

Lean@Congleton

Materials queuing, not moving, people not

productively employed, expediting

The Seven Wastes

Waiting

Lean@Congleton

Materials queuing, not moving, people not

productively employed, expediting

The Seven Wastes

Over Production

Lean@Congleton

Too early, too much, just-in-case

The Seven Wastes

Over Production

Lean@Congleton

Too early, too much, just-in-case

The Seven Wastes

Over processing

Lean@Congleton

Too fast, too big, too variable, one big

machine instead of several smaller

The Seven Wastes

Over processing

Lean@Congleton

Too fast, too big, too variable, one big

machine instead of several smaller

The Seven Wastes

Defects

Lean@Congleton

Rework, rejects, unnecessary inspection;

consequences of not doing it right first

time

The Seven Wastes

Defects

Lean@Congleton

Rework, rejects, unnecessary inspection;

consequences of not doing it right first

time

The Seven WastesW

aste

Workshop

New Concept

Waste Reduction

Wooden/Creform prototype:

• Create wooden/Creform prototype

• Refine the ergonomic arrangement of material, tools and utilities

• Integrate data processing equipment: monitor, keyboard, scanner

and connect electricity and air pressure

• Assemble first product and refine optimal placement and feed of

raw materials

• Establish a Standard Assembly Process

• Deliver design observations to Design For Manufacturing (DFM)

or Development

• Integrate Wooden Prototype Setup within the production process

• Identify, discuss & implement necessary changes

Duration:

approx. 1-3 days for construction

approx. 3-4 weeks trial period

Prototype

Prototype

What have we achieved:

• Contemporary Design

• What are the savings?

• Revise the layout

• New SOP

• Train the team

New LCD Workstation

• Procure offer, order and delivery of the new LCD

Workstation

• Revise production layout and plan as required

• Train all workers at the “new LCD Workstation”

• Reevaluate standard time

• Determine productivity increases

Final Install

Remember: The Continuous

Improvement process never ends!!

Final Install

▪ 50% Space reduction

▪ One Piece Flow Production

▪ Ergonomic Set Up

▪ WIP Reduction

▪ Cell Flexibility

Key Results LCD Achievements

Waiting time (removal

of buffer)WIP

Space ReductionProducts through LCD

process

312

% of Product Range

Options LCD Project

Nov08 Feb09

-30%

Pieces

Nov08 Feb09

-100%

mins

Nov08 Feb08

+85%

Nov09 Feb09

-50%

▪ Flow Production

▪ Ergonomic Bench Set Up

▪ Changeover Reduction

▪ Value Stream Integration

▪ WIP Reduction

Key Results LCD Achievements

Waiting time (removal

of buffer)WIP

Changeover ReductionProducts through LCD

Process

312

Hours per day %of Products

Oct08 Jan09

-30%

Pieces

Oct08 Jan09

-100%

mins

Oct08 Jan09

100%

Oct08 Jan09

-75%

A6 LCD Project

▪ Reduction in headcount 2 to 1

▪ Space reduction

▪ Key wastes exposed

▪ Piece Flow Production

▪ Cell Flexibility

Key Results LCD Achievements

Waiting time (removal

of buffer)WIP

Space ReductionReduction in

headcount

312

No of Operators

May09 Aug09

-25%

Pieces

May09 Aug09

-100%

mins

May09 Aug09

-50%

May09 Aug09

-50%

CU LCD Project

▪ Value Stream Integration (2011 Vision)

▪ 50% Space Reduction

▪ One Piece Flow Production

▪ WIP Reduction

▪ 5S and Visual Management Improvements

Key Results LCD Achievements

Waiting time (removal

of buffer)Inventory

Space ReductionReduction in

headcount

312

No of Operators

Jun09 Sep09

-25%

Pieces

Jun09 Sep09

-100%

mins

Jun09 Sep09

-10%

Jun09 Sep09

-50%

MM4 LCD Project

Our most recent success story….

Before: The G110 Improvement Project, where we began, a mess!!!

Our most recent success story….

After: LCD……50% reduction in space, single piece flow, 40% productivity

improvement, £44,000 cost saving, 37 minute process time start to finish!

Key Achievements

▪ £270k+ Cost Savings

▪ Ave. 45% Space Reduction

▪ Ave. 37% WIP Reduction

▪ One Piece Flow Production

▪ Throughput time reduction

▪ Increased Quality

Key Considerations

▪ Change Management

▪ Training & Development

▪ ‘Bigger Picture’ Management

▪ Lean Evolution

▪ Project Commitment

▪ Each project is different!

▪ Feedback and Performance Review – Essential!

New Cell Designs, New Way of Thinking……..

LCD Awareness & Training

250+ Employees have taken part so far………..

Lean Cell Design – More then a new workstation…..

Teamwork

Innovative

Ownership

Skills Development

Fun!

So what’s next……

▪ Commitment to 6 projects per annum

▪ Monthly Lean Awareness Training

▪ Learning Circles; replicate best practice and gain feedback

▪ Siemens UK Best Practice

▪ Incorporate LCD into NPI process

▪ ‘Phase 2’ LCD Implementation

▪ Continue LCD Skill Development Programme

Summary & Feedback

Any Questions??