LEAN IMPLEMENTATION WITHIN

Unilever Crumlin

Author: Lee Taylor

Date: 21/5/2013

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CompanyUnilever CrumlinCONTENTS

o The History of Lean

o Introduction

o Waste at Crumlin

o Change Management

o Kaizen

o 5S

o Transition Planning

o Hoshin Kanri

o Value Stream Mapping

o Visual Management

o Conclusion

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THE HISTORY OF LEAN

Lean is a systematic approach of eliminating waste so every step adds value for the customer

The opposite of waste is value-added, which has a special lean definition. An activity is “value added” if, and only if, these three conditions are met:

1. The customer must be willing to pay for the activity

2. The activity must change the “form, fit, or function” of the product, making it closer to the end product that the customer wants and will pay for

3. The activity must be done right the first time

It is generally accepted that there are 8 types of waste:

1. Transportation2. Inventory3. Motion4. Waiting5. Over production6. Over Processing7. Defects8. Staff (or people potential)

Within the Tim Woods there sits lots of other potential waste streams that only become evident when drilling down in to detail

People Wastes

1. Processing Wastes2. Motion Wastes3. Goal Alignment Wastes4. Assignment Wastes5. Waiting Wastes (waiting for)

Process Wastes

1. Standardisation Wastes2. Sub-Optimisation Wastes3. Work Around Wastes4. Uneven Flow Wastes5. Error Wastes6. Checking / Inspection Wastes7. Control Wastes8. Variability Wastes9. Strategic Waste10. Tampering Wastes11. Reliability Wastes

Leadership Wastes

1. Focus Wastes2. Structure Wastes3. Discipline Wastes4. Ownership Wastes

Information Wastes

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1. Translation Wastes2. Hand Off Waste3. Missing Information Waste4. Irrelevant Information Wastes5. Inaccurate Data Wastes

Asset Wastes

1. Inventory Wastes2. Work in Progress (WIP) Wastes3. Fixed Asset Wastes4. Moving Things Waste

The term "lean" was coined to describe Toyota's business during the late 1980s by a research team headed by Jim Womack, Ph.D., at MIT's International Motor Vehicle Program

The automotive industry laid the foundations for the widespread use of the techniques we see in manufacturing facilities worldwide, although there are instances of rigorous process thinking in manufacturing all the way back to the Arsenal in Venice in the 1450s.

The first person of note to truly integrate an entire production process was Henry Ford, the founder of the Ford Motor company and widely regarded as the inventor of the motor car. In 1913 he married consistently interchangeable parts with standard work and moving conveyance to create what he called flow production, essentially the first car production line.

Toyota picked up the baton in the 1930’s and mid 1940’s where Kiichiro Toyoda, Taiichi Ohno further enhanced Henry Ford’s thinking to develop the Toyota Production System (TPS).

TPS, in essence shifted the focus of the manufacturing engineer from individual machines and their utilization, to the flow of the product through the total process. Toyota concluded that by right-sizing machines for the actual volume needed, introducing self-monitoring machines to ensure quality, lining the machines up in process sequence, pioneering quick setups so each machine could make small volumes of many part numbers, and having each process step notify the previous step of its current needs for materials, it would be possible to obtain low cost, high variety, high quality, and very rapid throughput times to respond to changing customer desires. Also, information management could be made much simpler and more accurate.

TPS is not a rigid company-imposed procedure but a set of principles that have been proven in day-to-day practice over many years. Many of these ideas have been adopted and imitated all over the world.

TPS has three desired outcomes:

To provide the customer with the highest quality vehicles, at lowest possible cost, in a timely manner with the shortest possible lead times.

To provide members with work satisfaction, job security and fair treatment. It gives the company flexibility to respond to the market, achieve profit through cost reduction

activities and long-term prosperity.

TPS strives for the absolute elimination of waste, overburden and unevenness in all areas to allow members to work smoothly and efficiently.

The foundations of TPS are built on standardisation to ensure a safe method of operation and a consistent approach to quality. Toyota members seek to continually improve their standard processes and procedures in order to ensure maximum quality, improve efficiency and eliminate waste. This is known as kaizen and is applied to every sphere of the company's activities.

INTRODUCTION

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The recent of history of the site is relatively unsettled due to major re-structuring; this had an adverse effect on morale and the skill base within the factory as a lot of skilled people were lost due to voluntary and compulsory redundancies.

The work force is long serving with virtually nonexistent operator turnover but management turnover is far more prevalent. The factory is heavily unionised and any management improvement recommendations are viewed with suspicion, making change a very difficult thing to execute.

There is some evidence that some lean methodologies including 5S & Visual Management have failed to be fully embedded and sustained within the factory; this I believe is linked to the churn of management and resistance to change from the operator population.

The experience within the factory is vast but appears not to be cumulative, but a case of re-living the same experiences year after year; it could be said that some body that has worked within the factory for 15 years does not have 15 years worth of experience but 1 years experience 15 times!

The performance of the factory has changed significantly over the years since the re-structure ,mainly due to the reduction of numbers with in the factory – the target OE% is 70% (Quality is not considered as in the traditional OEE calculation)

The kit, in the main, is ageing, and in some cases obsolete, making preventative maintenance difficult allied with little to no MTBF data to support a meaningful preventative maintenance schedule.

There was a successful bid made to the Welsh Assembly Government for training funds to deliver some key business improvement techniques training to the operator population, Green and Black Belt Lean Implementation training to management, the BIT modules chosen were:

5S Kaizen Problem Solving Visual Management

These modules have been identified as key foundation blocks for lean implementation in the business.

"Just as a carpenter needs a vision of what to build in order to get the full benefit of a hammer, Lean Thinkers need a vision before picking up our lean tools," said Womack. "Thinking deeply about purpose, process, and people is the key to doing this."

Waste at Crumlin

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The “main” wastes experienced at Crumlin that are “focussed” on are, these are focussed upon due to the financial impacts they have on the business

OE% Losseso Poor achievement against plan (PPC)o Morale – OE% is an incentive payment

Materials Wastedo High cost to the business circa £500k - £700k p.a.o BOM & Materials Planning issueso Unplanned downtime due to unplanned material shortageso Poor achievement against plan (PPC)

Down time due to break downs, minor stops and recurring breakdownso Poor Morale o People Waitingo Poor OE%o Poor PPC

Reject Wasteso Poor Moraleo People Waitingo High costo Reworking

The “main” wastes listed above can by enlarge be attributed to the PROCESS WASTE category, where “we” at Crumlin are poor at following the disciplines required to eliminate waste “right first time”

People waste isn’t generally investigated but absence is a high cost to the business that is closely monitored.

In an attempt to standardise the way in which we work at Crumlin, a TPG (Training Process Guide – a Crumlin version of an SOP) refresher program has been established, implemented and in the main completed. The full benefits of this initiative are yet to be seen but there has been a notable improvement in performance over the previous 6 – 8 months since the program started. There has also been a tangible improvement in the reduction of accidents on site.

There is a “Waste Team” in place at Crumlin that is charged with tackling Flour & Oil Waste as this represents the biggest financial loss to business at present as it is very visible in the accounts. The adoption of Kaizen planning techniques and implementation have proven to be very successful but the involvement of Key Operators, Engineers and Process Experts has proven to be the most beneficial and is an approach that we will definitely adopt going forward,

CHANGE MANAGEMENT

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What is Change Management?

The systematic approach and application of knowledge, tools and resources to deal with change. Change management means defining and adopting corporate strategies, structures, procedures and technologies to deal with changes in external conditions and the business environment.

Defining and instilling new values, attitudes, norms, and behaviours within an organisation that support new ways of doing work and overcome resistance to change.

Building consensus among customers and stakeholders on specific changes designed to better meet their needs.

Planning, testing, and implementing all aspects of the transition from one organizational structure or business process to another.

What is Change Management like at Unilever Crumlin?

The change management at Crumlin is “managed” through briefs and union consultation. The culture is antiquated and very much set in stone with high resistance to change.

The Normso The typical behaviours within the operator population are suspicion and negativity with any

change or new initiatives. I believe this is largely to do with the relative unrest caused by the relatively recent re-structures and redundancies and all management or authority figures are viewed as the “enemy”

o These NORMS have proven to be disruptive and hinder progress when trying anything new

There are no Transition Plans or Current State / Future State maps in place detailing the journey that is required to get from where are now to a place where we need to be years down the line

What are the recommendations towards Change management?

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We recognise that the success of the program is largely dependent upon employee / operator “buy in” and the way in which we plan to deliver the program.

Inspire a Shared Vision

In order to avoid any potential pit falls, the Union Shop Stewards were informed of the plans to introduce the BIT modules in to the business, with the single view to implementing the lean practices and techniques to secure the long term future of the site. Any concerns over the introduction of these techniques to reduce head count were dealt with and agreed at these meetings. Clear, Open and Honest communication was a key part of the process.

Encourage the Heart The training modules selected require evidence of implementation of their newly acquired skills

and knowledge. The Kaizen Module required a full investigation and report to be generated as evidence of the learning; these projects were decided by the cross skilled groups highlighting issues that affect them on a daily basis.

o This approach was taken to : promote a sense of ownership demonstrate that we take their concerns seriously Empower the work force

An incentive scheme to recognise contributions to the business by these groups or individuals is being explored.

Model the Way

The Lean Implementation Team and Support Network will support the creation of standards of excellence, setting an example for others to follow – these examples will have been derived from the work the operators have completed during their project creation, 5S implementation etc The expansion of the projects teams joining the Green and Black Belts will provide a vehicle to drive success (Lean support structure)

Creation of the Transition Plan and Hoshin Kanri documents will provide a compass by which we can be guided through the change that is required at Crumlin (documents attached)

Creation of an Operational Transition Plan (attached) and Future State Map that can identify “WHAT?”,”HOW?” and “WHY?” we need to change and to detail the benefits of the change.

The creation of a Steering Team to manage the lean implementation is key in order for the process to be:

Managed Lead from the Front Planned Reviewed Amended If and When required

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Challenge the Process

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Any change program brings its risks, risks of failure need to addressed and accepted, where maybe in the past they may have been deemed as unacceptable and cause to reject a process as a result of the failure. The failures need to be investigated and viewed as opportunities to learn and understand “WHY?” This process will be clearly communicated at the outset. This will go some way to change “the 1 year’s experience 15 times”

Clear and concise definitions of positive and negative behaviours to be established – a number behavioural workshop sessions have been set up specifically for this purpose

Enable Others to Ac t

The establishing of working groups supported and mentored by green & Black Belts NOT managed by them will enable the originators of the projects and initiatives to maintain control and in doing so may feel empowered and build confidence in their own ability and crucially build ownership and sustainability as a result

. Thinking deeply about purpose, process, and people is the key to doing this."

Womack

Lean Support Structure at Crumlin

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KAIZEN

What is Kaizen

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Kai – to take apart and make new Zen – to think about so as to help others Continuous Improvement Japanese term for a gradual approach to ever higher standards in quality enhancement and waste

reduction, through small but continual improvements involving everyone in the business. Gemba

A Japanese word that literally means "the real place", used in business process improvement contexts to refer to the place where value is added, such as a manufacturing area or a workshop.

A related term, "Gemba Kaizen", is used in Japanese process improvement initiatives to mean "continuous improvement on the shop floor", where production takes place.

What is Kaizen like at Crumlin Kaizen is not implemented at Crumlin; the approach is currently to “solutionise” based upon “gut

feel” and experience in the absence of reliable, accurate data.

There are no formal processes in place for capturing “improvements” or alterations to settings.

There is a preventative maintenance program in place, the maintenance is usually reactive to issues – this is the only regular type “improvement” activity that is carried out at Crumlin.

What are the recommendations towards Kaizen?

There has been a widespread training program at a basic level to help build competency in this area at all levels in the manufacturing department; this is to ensure everyone understands the concept and more importantly the benefits of following a structured approach to tackling waste and non value added activities to drive improvements in the business

Kaizen teams and events will be scheduled to tackle the issues highlighted throughout the training and to manage existing groups such as the “Waste Team”

To help with the “change” in culture all training groups that underwent the Kaizen Module Training have developed a Kaizen project using many problem solving techniques (5 Whys, Ishikawa Diagrams, Cost v Benefit) – these will ensure the “gut feel method” will be a thing of the past with “real” data being used instead. A Kaizen Project Schedule will be compiled to ensure the projects are not ignored – these projects will be prioritised based upon their COST V BENEFIT CHART by the Lean Steering Team.

A Lean Implementation Support Structure has been built so management of activities is made easier. An internal mentor network has been set with each Green & Black Belt being allocated a specific area of responsibility.

The kaizen events planned for Crumlin will be publicised on boards to display the following:

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Problem Description Key Issues What Does Good Look like What Does the Process Not Include What Does the Process Include Measureables Cost V Benefit Chart Action Plan Team Members & Responsibilities

Hand Written Kaizen Board

Kaizen Planner

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Event Number Duration

Date of Event

Team Name

Leader

Deputy

Associates

Associates

Associates

0Eliminate

20%20%

10%

20%

70% +

% Change SavingsPre-

Event Objective After Event

% Change

Savings / Improvement Future State

Flour and Oil Waste

Reduce Kibble Stock

Cost

Inventory

Productivity

Other

Improve OE

Kaizen Metrics

Safety

Quality

Delivery

Manual Handling IssuesKibble Fires

Improved GMPReduce Kibble Rejections

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Reduce Flour & Oil Waste (10%)

Reduce Manual Handling

Reduce Risk of Kibble Fires

Standardise Process Settings / SPC

Reduce Line Downtime

Improve Waste Data Capture

Improved GMP

Waste Team

Kaizen Objectives - sustainable achievement of the

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2

3

4Huw Thomas

Lee TaylorKevin Brown

J o LeeJ oseph Gibson

Carl RoyallSarah Beaumont

Kaizen Event Planner

Name Sign Off (Post Event)

Area / Operation for Improvement :

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Kaizen Project Board

What is 5S?

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o 5S is a systematic approach to Workplace Organisation that seeks to make the workplace more productive whilst maintaining high levels of cleanliness, organisation, standardisation, housekeeping and safety.

o The 5s structure allows a thorough and complete re-organisation of the work area and sets visual standards that need to be adhered to. The agreed visual standards can always be referenced and makes training against minimum standards easier. The process removes clutter and potential spills that could cause injury to staff or damage to equipment - an organised workplace is safer when it is kept orderly and clean.

o Workplace organisation will allow optimum placement of tools and machinery to limit / reduce / eliminate the need for excess movement / lifting / transport. Clean, tidy machinery could also reduce excess wear of parts reducing manual intervention due to breakdowns due to "poor" housekeeping thus improving OE%

What is 5S like at Crumlin?

The current workplace organisation and auditing system is based upon GMP (Good Manufacturing Practices). The factory is spilt in to various areas and audit sheets detailing pre-determined criteria to score against are contained on the sheets.

There are little to no visual standards available to help quickly identify good and bad practices. An audit score is allocated dependent upon auditor\'s perception of compliance against the criteria.

There is some evidence of 5S that has failed to be sustained within the Factory. There are some areas with demarcation areas on the floor, evidence of shadow boards and "what does good look like” is sporadic at best

What are the recommendations towards 5S?

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There has been a widespread training program at a basic level to help build competency in this area at all levels in the manufacturing department; this is to ensure everyone understands the concept and more importantly the benefits of following a structured approach to tacking waste and non value added activities to drive improvements in the business

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A Lean Implementation Structure has been built so management of activities is made easier. An internal mentor network has been set with each Green & Black Belt being allocated a specific area of responsibility – ensure this is implemented

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The allocation of 5S areas have been identified and audit sheets created

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To build upon an excellent and improving safety record for the site, a full and complete 5S introduction has been targeted to aid this ongoing priority for the business, plus the added benefits that a fully implemented 5S process will bring

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The introduction of 5S boards to the auditable areas will bring a much needed focus to 5S and GMP adherence as currently there is no “What Does Good Look Like” standards in the factory – these boards will help to drive consistency and improvements both from workplace organisation and safety perspectives

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The plan is to embed 5s in Q3 and Q4 of 2013 by completing the SORT and SET elements. 2014 will see the continuation of the 5s process. The Process has started, examples of which can be found below

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5S Action Plan Introduced to Crumlin

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