reaching a sustainable operational excellence...
TRANSCRIPT
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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
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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
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Leaders developing the strategy and workforce influencing it by doing A thought process from a cultural transformation
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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