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Reaching a Sustainable Operational Excellence Programme 4 th - 6 th October, 2016 - Hilton, Düsseldorf 12 th Annual European Manufacturing Strategies Summit 2016 César Lombarte Head of Manufacturing Plant and OpEx Manager

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Page 1: Reaching a Sustainable Operational Excellence Programmefplreflib.findlay.co.uk/images/pdf/ems/Reaching-a-Sustainable... · Reaching a Sustainable Operational Excellence ... Top management

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Reaching a Sustainable Operational Excellence

Programme

4th - 6th October, 2016 - Hilton, Düsseldorf

12th Annual European Manufacturing Strategies

Summit 2016

César Lombarte

Head of Manufacturing Plant and OpEx Manager

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100%

Upon completion of this session

Implementation OpEx principles across business functions

Objectives

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3 B. Braun

The views expressed herein are the views of the presenter only and not those of any company, employer, or organization

associated with the presenter.

Disclaimer

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Do you feel identified with the picture?

Objectives Current Situation

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Organizations nowadays

Objectives Current Situation

• Price driven externally (market, regulations, …)

• Profitability via reducing cost

• Investments with short-term paybacks

• Financial cutbacks to achieve credits

• >40 years old in 2016 (50 in 2026)

• Distribution in layers: top management, management, shop floor

• Temporary jobs among job workers

• Investments and programmes against work-related health issues

• “Green” product and facilities

• Products custom-designed and with “high performance”

• Marketed to small segments of consumers

• Better quality and service

• Shorten leadtimes

BENEFITS WORKING AGE POPULATION

HEALTH, SAFETY & ENVIRONMENT

SINGULARITY OF PRODUCTS

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Some features of OpEx

Objectives Current Situation

Top management and all layers are 100% committed.

A change implemented by consultants after analysis of current situation and redesign accordingly.

Cost reduction is the motto.

Problems are shown to visualize them and we learn from them when solving.

Management work with the team to reach customers’ needs.

Waste is “the most wanted” in order to eliminate or minimize it.

Sel

ect &

Con

figur

e

Next stage is our primary customer, ergo, improve transitions and flow.

Management coaches teams with responsibitilies (even to stop the process).

Multifunctional employees are encouraged to make changes, continuous improvement

Open and clear communication shows trust among all parties.

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Some features of OpEx?

Objectives Current Situation

Top management and all layers are 100% Committed.

A change implemented by consultants after analysis of current situation and redesign accordingly.

Cost reduction is the motto.

Problems are shown to Visualize them and we learn from them when solving.

Management work with the team to reach Customers’ needs.

Waste is “the most wanted” in order to eliminate or minimize it.

Next stage is our primary customer, ergo, improve transitions and Flow.

Management Coaches teams with responsibitilies (even to stop the process).

Multifunctional employees are encouraged to make changes, Continuous improvement

Open and clear communication shows Trust among all parties.

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What will we get?

But these are “financial effects”… …these are consequences

Productivity increase

Free space

Quick changeovers and setups that

increase capacity

Better service from vendors

Increase Gross profit Savings

Investments Growth

Leadtime reduction

Defect rate decrease

Lower inventory coverages

Shorter new-product development time

Objectives Current Situation The Future

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What do we expect from this journey?

We know where we want to be, but only by determining the actual place we can find the right direction,

Let’s check where we are,… Honestly

A way to do business Satisfying customers’ needs with service and flawless products

1

Improvements in processes and innovation A system where the processes are actually value streams A system to create flow, identifying interruptions and wastes to eliminate them

3

Leaders developing the strategy and workforce influencing it by doing A thought process from a cultural transformation

2

Objectives Current Situation The Future

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Quick Quiz & Answers

Objectives Current Situation The Future

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SUCCESS

Allowed to

Able to

Want to

Requirements for a successful implementation of OpEx

Objectives Current Situation The Future

commitment common vision objectives self discipline communication trust improvements

training qualification learning

empowerment roles and accountabilities trust security independency and autonomy

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Sustainable Cultural Transformation recipe

C

G

A

F

S

TRANS FOR

MATION

C

G

A

F

Strategy

TRANS FOR

MATION

Objectives Current Situation The Future Success Recipe

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It’s not a trial & error process, neither tool box usage,…

Time line

CURRENT Situation

ACHIEVED Transformation

H2 Capability

to Change!

H1 Capability

to Change!

DESIRED Transformation

Objectives Current Situation The Future Success Recipe

C

G

A

F

Strategy

TRANS FOR

MATION

A Sustainable Cultural Transformation is mandatory

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Do we have targets? Do we have a strategy to reach them?

C

G

A

F

Strategy

TRANS FOR

MATION

Objectives Current Situation The Future Success Recipe

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Sustainable Cultural Transformation recipe

Commitment

G

A

F

Strategy

TRANS FOR

MATION

Objectives Current Situation The Future Success Recipe

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TOTAL COMMITMENT of Top management is a must … or it will never really happen

If the leader doesn’t lead, the followers won’t follow

Change people’s mind-set to change the culture of the organization

Lead the change, getting involved

Willing to go to the gemba, to the shop floor

Willing to work with teams

Assure that things said to be done, get finally done

Objectives Current Situation The Future Success Recipe

Commitment

G

A

F

Strategy

TRANS FOR

MATION

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Top management leadership style

Creates and transmits a clear vision for change

Creates partnerships to achieve team goals

Strengthens the capacity of the organization to change

Encourages desirable behaviour

Coaches the teams in gemba

Inspires employees in gemba

Leads workforce to adapt skills and behaviours in gemba

Put pressure on the organization

Objectives Current Situation The Future Success Recipe

Commitment

G

A

F

Strategy

TRANS FOR

MATION

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Sustainable Cultural Transformation recipe

Commitment

Gemba

A

F

Strategy

TRANS FOR

MATION

Objectives Current Situation The Future Success Recipe

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Touch the Gemba

Skills, behaviours, training and team work

Involve operators and team leaders in improvement

activities

Objectives Current Situation The Future Success Recipe

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Performing OpEx workshops without establishing the people foundation

will avoid getting long-term sustainable results

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Sustainable Cultural Transformation recipe

Objectives Current Situation The Future Success Recipe

Commitment

Gemba

Accountabilities

F

Strategy

TRANS FOR

MATION

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Roles of management style Layers in the organization

Objectives Current Situation The Future Success Recipe

Manage INPUTS

5M

To produce OUTPUTS QCDSM

Build a corporate culture of challenge

GROUP LEADERS FOREMEN SUPERVISORS MIDDLE MANAGERS

MTP, TWI (JI, JM, JR),

KATA Housekeeping

Problem solving,

Root cause analysis

Track performance

Develop projects

Monitoring and

Performance review

Standarization

Flow Challenge people

to attain targets

Maintain and Improve

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Sustainable Cultural Transformation recipe

Objectives Current Situation The Future Success Recipe

Commitment

Gemba

Accountabilities

Flow

Strategy

TRANS FOR

MATION

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Importance of Flow Work

Objectives Current Situation The Future Success Recipe

Commitment

Gemba

Accountabilities

Flow

Strategy

TRANS FOR

MATION

Productivity increase

Reduction of WIP

Leadtime reduction

•Batches •Inventory •Downtimes •Rework •Changeovers •Transportation •Layout •Push •Unbalanced work

Capacity increase

Optimized Resources

Customer Satisfaction

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Objectives Current Situation The Future Success Recipe Roadmap

Roadmap for the journey Phase #1

ST

RA

TE

GY

CO

MM

ITM

EN

T

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Objectives Current Situation The Future Success Recipe Roadmap

Roadmap, Phase #2 A

CC

OU

NTA

BIL

ITIE

S

G

EM

BA

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Objectives Current Situation The Future Success Recipe Roadmap

Roadmap, Phase #3 G

EM

BA

F

LO

W

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Objectives Current Situation The Future Success Recipe Roadmap

Out of the manufacturing area Is it valid for the business areas out of manufacturing?

Define standards

Cooperation to achieve common goals

Continuous information exchange

Specific trainings and skills

Technical expertise

Holistic approach

Are the foundations different from the manufacturing area? What if we try?

Other Areas

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Objectives Current Situation The Future Success Recipe Roadmap Other Areas

that appears when facing OpEx in an office:

Always We’ve always done it that way

Never We never do that

Have to We have to do it that way … due to a Compliance or a Regulatory requirement

Vocabulary

“The office presents different types of

problems than that of the manufacturing area”

“It’s impossible to do OpEx in an office”

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OpEx in office

Objectives Current Situation The Future Success Recipe Roadmap

Increase the capacity to define and solve issues internally with the cooperation of everyone?

Avoid transcription data mistakes by means of fool-proof tools?

Separate repetitive activities from the sporadic ones?

Standardize the repetitive activities?

Increase the flow of information avoiding duplicities and reports that nobody reads?

C ould we…?

If so, we can implement OpEx in the non-manufacturing areas

Other Areas

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SUPPLIERS

Objectives Current Situation The Future Success Recipe Roadmap

And extending the boundaries

CUSTOMERS AUTHORITIES

Integrate them in our global network

Visit them and let them visit us

Gauge them constantly

Monitor their needs with precision

Ethics and accuracy in procedures and formalities

Deal initiatives jointly

Other Areas

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Objectives Current Situation The Future Success Recipe Roadmap

Even when designing a new process

80% CQD are determined at Design and Planning stages.

Lean Before Launch

3P Production Preparation Process

Reduced complexity

Effective method

Availability according to demand

Focus is on PROCESS design

Other Areas

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One Billion Baby Steps…

Objectives Current Situation The Future Success Recipe Roadmap

Last but not least A

TT

ITU

DE

Be open. Same old methods, same old results.

Be persevering and consistent. There is no end point.

It sounds risky, but the real risk is not to change

Accept that there is no immediate return and there will be difficulties.

Re-improve what was improved for further improvement (Taiichi Ohno)

Make it simple. Simple is better

Other Areas

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Reaching a Sustainable Operational Excellence

Programme

4th - 6th October, 2016 - Hilton, Düsseldorf

12th Annual European Manufacturing Strategies

Summit 2016

César Lombarte

Head of Manufacturing Plant and OpEx Manager