Onsite insights 2015 ss
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Learn from the best companies how to achieve Best Practice & World Class systems and products from the company that delivers the national best practice programme in the UK Onsite Insights. Continuous Improvement models and ideas on how to create a framework that suits your business.
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Onsite insights 2015 ss
- 1. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Ailsa Kaye Programme Director Onsite Insights Best Practice and World Class Manufacturing
- 2. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Best practice visits to award-winning companies across the UK
- 3. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk 1980’s … Dept Trade & Industry formed Inside UK Enterprise 2004 … IUKE becomes Onsite Insights 2010 … Onsite Insights achieves 10,000 visitors 2006 … Onsite Insights partners with Manufacturing Advisory Service 2020 … National & International visits to the world’s best organisations
- 4. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk International Network
- 5. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk What makes a business World Class?
- 6. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk World class companies demonstrate best practice in …. innovationflexibilityreliability quality deliveryprice
- 7. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Why pursue Best Practice and World Class?
- 8. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Customer satisfaction
- 9. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk • Financial Justification Improve Sales & Reduce Costs
- 10. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk • Better working conditions =increased staff satisfaction & loyalty • Motivated employees – look for improvement & are advocates Employee Satisfaction
- 11. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk
- 12. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk We asked our hosts what makes a world class organisation ….
- 13. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk 1. Clarity of Vision Empowering Culture Flexible Structure CI Framework Process Excellence Innovative Customer Focus Great Communication Sustainability Benchmarking 10 common themes…
- 14. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk
- 15. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk You can’t iterate on a burning platform
- 16. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk From Burning Platform to Burning Ambition
- 17. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Culture & Values
- 18. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Culture
- 19. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Flexible organisations will survive
- 20. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Create Organisational Structures that support your vision
- 21. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Look cross-sector Agile Team Structure
- 22. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Organisational Structure
- 23. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Create your own CI Framework
- 24. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Best Practice Frameworks…
- 25. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Best Practice Frameworks…
- 26. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Best Practice Frameworks…
- 27. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk
- 28. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Select the tools that will work within your business…
- 29. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Pick your battles
- 30. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk
- 31. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Demonstrating Process Excellence
- 32. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Innovation – not just a buzzword!
- 33. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk
- 34. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Demonstrating Innovation
- 35. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk
- 36. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Happy customers are advocates!
- 37. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Demonstrating Customer Focus
- 38. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Communication
- 39. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Demonstrating Great Communication - Internally & Externally
- 40. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Sustainable Manufacturing
- 41. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Demonstrating Sustainability
- 42. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk
- 43. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk What you measure matters ….
- 44. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk 1. Clarity of Vision Empowering Culture Flexible Structure CI Framework Process Excellence Innovative Customer Focus Great Communication Sustainability Benchmarking 10 common themes…
- 45. Onsite Insights Company visits across the UK www.onsiteinsights.co.ukailsa@onsiteinsights.co.uk Upcoming Visits 10 March Milliken, Bury 11 March Entek International, Newcastle-Upon-Tyne 26 March Williams Lea, Norfolk 26 March Silent Gliss, Broadstairs 21 April Mars Drinks, Basingstoke 22 April Alitex, Petersfield 28 April Buhler Sortex, London 28 April Agfa, Leeds 30 April Jaguar Land Rover, Liverpool 7 May Double H Nurseries, New Forest 21 May Fujifilm, Broadstairs 2 June BAE Systems, Rochester
Hinweis der Redaktion
- Hi my name is Ailsa Kaye and I am the Director of Onsite Insights. Onsite Insights is the national company visit programme. Over the last 25 years I have visited over 400 factories in over 20 countries. I have seen first hand best practice and quite frequently not quite great practice! What best practice and world class companies achieve is not rocket science, it is the introduction of and commitment to practical tools and concepts which have allowed them to increase their sales, reduce their costs and improve their productivity. We spoke with our current industry leading hosts companies and asked them what they felt made a world class organisation, I combined this information with industry research and analysis to define ten key areas that categorise world class companies.
- So just a bit of background to Onsite Insights…. Founded in the 1980’s by the DTI as part of the robotic grants scheme and remains strong today. Over 1000 people use the programme each year to see best practice at the UK’s best companies. We have a predominantly manufacturing focus but the programme does encourage cross-sector learning. In the last week we have arranged visits for the NHS, a leading local council and a rail management company! The programme exists to encourage the sharing of best practice and innovation between companies through a series of one day visits. Companies see first hand best practice and it allows them to implement this in their own organisations. There are currently over 60 host companies throughout the UK – which range in size from SMEs to multinationals. We survey every visitor and 100% have said that they would recommend the programme and this type of learning. Each year we aim to identify 10 new host companies to join the programme – providing fresh ideas and new thinking. Our new hosts so far this year include The Vale Group and Alitex – both dramatically different organisations – one a multinational quarrying company the other an SME manufacturer of conservatories.
- We are also part of an international network and through this network we organise visits to overseas companies and we also host inbound visits and study tours. This year we are planning two study tours – one to Canada and one to Germany and Austria.
- So what do we mean by World Class Manufacturing and Best Practice?
- There are no international standards, badges or accolades to say that you have achieved this status but it is generally accepted that World Class Manufacturers are assumed to be those that demonstrate Industry Best Practice in: Quality Price Delivery Speed Reliability Flexibility; and Innovation Saying this, the Shingo Prize is now regarded as the primary benchmark of world class companies by many global manufacturers.
- So Why pursue world class and best practice What is in it for you as an organisation and you as a business I know I am preaching to the converted in this environment. But it is sometimes good to reflect on our key drivers/motivators
- The achievement of world class manufacturing and best practice is going to benefit your customer: Products are of a better quality Time to market is improved Costs to produce are reduced Smaller batches – more customised solutions.
- There is a significant financial justification. Less Waste, Less Inventory, quicker changeovers and improved machinery utilisation all contribute to the bottom line. Improvements to the bottom line allow us to remain competitive in this global market. Achieving world class means you are producing the best possible product at the best possible price, which means better profit and the potential for re-investment.
- One very important factor of the whole Lean and WCM movement has been the drive to improve working conditions. Whilst lean and best practice isn’t just about cleaner work environments it is a substantial benefit. It is clear that those manufacturing companies with efficient and organised workplaces see much lower accident rates, better attendance and significantly higher job retention. People that value their working environment will also contribute to identifying further waste and strive to improve. Creating employees that are advocates of your product
- Pursuing world class also ensures we challenge our perceptions. By looking and comparing your organisation to others both within your industry and outside it you will challenge your perceptions of what you do and you will see how others perceive you. We don’t always see our successes and failures as others would. One company we work with closely recently went for the Shingo prize as they felt that they had significantly changed their company culture – only to find out that they had barely started on the journey. I have found that it is generally those that do not think that they are the best that strive harder and challenge the norm. That said the benefits of learning from others and benchmarking performance are unquestionable.
- So what do our hosts think make a world class or best practice organisation? We narrowed down what they told us to 10 common themes
- Companies that are world class have a number of characteristics in common: They set a clear future state – a shared goal They engage all employees in the shared goal - creating an empowering culture They have a flexible organisational structure that meets their organisational needs They have a defined CI framework They have exceptional process standards and continually strive to improve them. They are innovative and challenge industry norms They are customer-centric They have great communication – both internally and externally. They operate ethically and in a sustainable manner; and They benchmark themselves against other world leaders. It is not just multi-national companies that are pursuing world class, but also SME’s in a wide range of industries. There are no excuses, if you have a business whether there are 2 members of staff or 2000, you can continually find ways to improve what you do! Aiming for world class makes commercial and financial sense, it also engages employees and provides a clear direction for the business. I am going to look at these areas in more detail.
- To succeed it is necessary to create a compelling and shared vision. One which employees and customers can believe in. Your vision whether it is your organisations, your teams or yours personally needs to be ambitious, but also believable and achievable. Only in that way will people engage in it and pursue it. It also needs to be shared and reinforced at every turn – I will talk about communication later. But a vision without communication is pointless.
- When setting a vision or mission it is worth considering your burning platform. If you don’t have one you need to find one. Organisations without a burning platform frequently find themselves sinking if not falling completely. Recent history with the likes of Nokia an IBM are fantastic examples of how companies that don’t have a burning vision can fail. I am a big fan of this concept – manufacturing has evolved particularly in the UK because it had to. Companies with a higher level of competition – both internally and externally have had to improve their efficiency, reduce costs and waste in order to survive. We have several host companies on our programme that faced closure as little as five years ago, but through the introduction of lean and a pursuit of world class performance have shown that they can compete on a global scale. Some of these sites compete internally for work and have shown that it is still beneficial to manufacture in the UK. . Competition is good, it drives improvement. Take the public sector as another case study. I have been impressed with the work undertaken at organisations such as the passport office, and even HMRC. But the change is still probably 50% if not more of what could be achieved. These organisations have no burning platform, they have improved don’t get me wrong, but they haven’t achieved the step change or transformation that is possible because they have no real burning need. Job security is no longer as certain and budgets are being cut but they still have a long way to go.
- Once you have identified your burning platform, to be truly successful you need to turn this into a burning ambition. People will not work or respond for too long under negative pressure. Creating a company culture that is positive and empowering is the key to success.
- To see how effective and empowering culture can be ook to the most iconic and successful organisations and listen to what their employees say about the companies they work for - Google, Virgin, Apple and Innocent have created cultures that live and breath their core values.
- The important thing about culture and values is that they need to be both understood and communicated both internally and externally. They most importantly need to be relevant and preferably not generic! A great culture will ensure your employees are both experts in your business and advocates of your product.
- We live in a world of constant change and constant innovation which means that organisations must become more flexible to survive. Competition is only going to get tougher. We need to get products to market more quickly, at less cost. So we need to think differently and respond faster. Organisational structures also need to accommodate and respond to changing workforce dynamics and demands – harnessing talent and keeping it. Great employees will be attracted not by salaries alone.
- There are many types of organisational structure that can be used, the key is to find what fits with your current and future needs as a business. Toyota, Jaguar and many other large manufacturing companies have chosen to reverse their operational pyramid to drive CI and change from an operational level. This is an excellent approach if you have managed to embed CI in your culture. So whilst attractive this may not be a suitable model for organisations starting out on their lean journey.
- Some organisations are looking to the very agile software companies for inspiration. This also has its attractive points as Agile teams are small and responsive. To become an agile company would require a substantial shift in thinking and would be challenging when managing large production environments. But teams within large production companies may benefit from this structure such as R&D, Marketing and Customer Care.
- There are many different structures that work. Mars Drinks focus heavily on a team based approach creating high performing teams Operate as mini business units. Autonomous and they set their own goals, they are driven by the corporate agenda. HPT have been used in many organisations to great success. Toyota highly trained, multi skilled workforce that have great communication skills. Live and breathe the cultural commitments of challenge, creativity and courage. Double H Nurseries Small and agile teams Double H Supply the major supermarkets, orders are received and filled in one day. Communication and clarity of responsibility are critical within their environment.
- I am going to run through the most popular Continuous Improvement Frameworks in the manufacturing industry – and whilst you can obviously learn from these, it is important to develop a CI framework that is home grown and personal. If individuals are to own and adopt CI as a key part of their work they need to feel that the activities are relevant to them. So rename, reshape and adopt the elements as you see fit until you have a framework that fits your organisation.
- The Toyota Production System framework is often referred to as the House. It is built on a solid foundation of Five S, hejunka (levelling of the workload, standardised working and Kaizen. Once this is achieved companies can focus on other CI Activities until they achieve the goal of the highest quality, lowest cost product in the shortest lead time. The house has become very popular in manufacturing environments as it is easy to visualise progress and it is a strong framework for CI.
- The World Class Manufacturing CI Framework developed by Fiat in 2006, has since been adopted by 166 companies worldwide. The likes of Chrysler, Royal Mail, Unilever, Atlas and Copco. Along with some great design concept it is championed as the single reason Fiat as a company still exists. WCM is similar to the TPS in many ways and is a focus and structure for continuous improvement. As part of the framework there are 10 managerial and ten operational pillars. The target for WCM is Zero Zero waste Zero defects Zero breakddowns and Zero inventory.
- The Shingo framework for operational excellence differs to the others in that the foundations and starting point is the culture of an organisation. On this is built the CI and process improvement and there is also a focus on enterprise alignment – ensuring the CI Framework aligns with the corporate strategy is what separates this from the other approaches.
- Each of these has its merits and whilst it is important to Learn from others .. Don’t just replicate existing frameworks Create or develop the right framework for your organisation ….
- The same applies to achieving process excellence. There are numerous tools and techniques now that will support a companies journey to world class. The lean toolbox is well documented. Not all of the tools should or could be implemented at once within a company - identify which are the most important tools to help you achieve your commercial objectives. Is your priority waste – then a focus on the 7 wastes is your starting point. If quality is an issue it may be standardised work or poke yoke. If capacity is an issue then it may be necessary to concentrate on SMED or takt time.
- Select the tools that will work for you and apply them within the framework. Do not try to do all of them at once and realise also some may not add value to your business. Measuring OEE for example hit popularity in the late 90’s but is now relatively unpopular as used in isolation is not a useful measure in many businesses
- One great lean tool which is being used by many world class organisations is hoshin planning. Pfizer and Honeywell both use this to great effect. Hoshin planning is a systematic and disciplined process to align communicate and execute business strategy by focussing on those vital few breakthrough objectives that give competitive advantage. In Japanese Hoshin – means compass needle and Kanri – management ro control. One of the key drivers of CI at Havant is the use of Hoshin Planning for managing projects - Hoshin Planning is intended to help an organisaiton: Focus on a shared goal Communicate the goal to all leaders Involve all leaders in planning to achieve the goal Hold participants accountable. It assumes daily controls and performance measure are in place.
- The majority of our host companies demonstrate process excellence. As they have all achieved a level of best practice perfecting their processes has been the foundation of their success. Fujifilm, Entek and Milliken have all won national awards for business excellence.
- Creating an innovative organisation is key to becoming world class. Unless you are in a commodity market your customers will continue to demand something better, or more efficient. Innovation is not just about product design, it can be applied to all aspects of the business. Innovative companies think differently and act differently. But innovation must have strategic purpose and add value to the bottom line.
- But just as important as encouraging innovation is ensuring that the controls and systems are in place to harness ideas and implement them in a cost effective way. Ensuring you have a lean NPI system with gates/checks. New product development and implementation will continue to challenge manufacturing companies. Managing the pipeline can sometimes cause more problems than solve. There must be a return on investment in the innovation pipeline.
- Our companies that demonstrate innovative cultures and have made it a foundation of their operational strategy include: BAE Systems Agfa We would also suggest you look at Gripple who are a fantastically innovative company based in Sheffield
- Frequently in manufacturing there is not a clear understanding of who the customer or end consumer is. The manufacturer may supply parts to multiple end users for a variety of purposes. This creates a number of challenges. One of the foundations of CI and quality is to understand and remove non-value added activities. Without a clear view of who the customer is it is impossible to understand and remove non-value added activity. This doesn’t just apply to manufacturing, one of my team attended a visit with a group from the NHS who spent two hours debating who their customer really was! Does everyone in your company know who your customers and end consumers are?
- Delighting the customer is not an area manufacturers have particularly excelled at. Times have changed and there is a greater demand from customers and end consumers for information and quality. To become world class in customer service manufacturers need to look outside of their industry to other sectors such has tourism and hospitality. See how a top hotel or tourist attraction manages the customer journey and interaction with its product, how they listen at every point to get feedback and improve the experience. Our customers touch our organisations at numerous points between purchase and consumption and to become world class we need to ensure that each interaction is a positive one. About 10 years ago I was at a conference in Toronto when Jim Womack stated that every customer interaction is a kaizen opportunity – that stayed with me as I strongly believe that it is true. If a customer has to contact us for anything it is an opportunity to improve our systems. This is more important than ever before with the role of social media in marketing.
- If you want to see first hand companies that are truly customer facing I would recommend that you visit Mars Chocolate in Slough, Jaguar Land Rover, Buhler Sortex or Happy. Each of these companies have ensured that all employees have a great understanding of their customers and their role in delivering the customer experience.
- Effective communication is another attribute of world class companies. Communication is not just effective marketing it is also internal communication. People perform better and customers are happier when they have the knowledge to make informed decisions. Our goal in creating world class organisations is to create experts and advocates of our employees and our customers. Excellence in marketing and communications can not be underestimated. Apple, Dyson and many other world-leading brands have taught us that you don’t need the best product in the market place to be regarded as world leaders you need great communication.
- To see excellence in communication, I would highly recommend a visit to Mars in Slough, and Williams Lea in Norfolk. Double H Nurseries have also developed some excellent tools to communicate with their customers and employees. For internal communication I would also consider a visit to Double H Nurseries or Jaguar Land Rover
- Sustainable manufacturing is no longer an option or a luxury. In order to survive in the long term companies must be sustainable. Product lifecycles, environmental impacts of production and distribution are all elements that need to be managed carefully by any business that has long term goals.
- Every manufacture has different environmental and sustainability challenges and they don’t have to be a challenge they can be an opportunity. Organisations such as Mitsubishi Electric identified over 20 years ago that they had a role to play in setting the environmental agenda so they began participating in international forums and boards and instead of having to follow directives they are involved in setting them. Others such as Agfa have made sustainability a key aspect of their operational framework and have benefitted in numerous ways.
- Last but not least I am going to look at benchmarking – benchmarking is important to any organisation. If you don’t understand how you are performing you can’t possibly understand where you are heading or whether improvements have been made. DO NOT overly complicate benchmarking – simple online tools available. We can provide you with a link to a free benchmark which we deliver in partnership with EEF and the LeanBenchmark Awards Programmes also offer a good benchmark – Manufacturer of the Year Awards, Shingo Prize to name a few. These provide an excellent opportunity for external review of your sites Informal benchmarking also has its value: Company visits are also a valuable tool in reviewing performance. Whilst these do not provide comparable metrics, they do allow you to identify ideas and solutions for common business challenges.
- What you measure matters. Ask the questions – why am I measuring this – what impact is it having on our strategic objectives and also does it help us improve.
- Companies that are world class have a number of characteristics in common: They set a clear future state – a shared goal They engage all employees in the shared goal - creating an empowering culture They have a flexible organisational structure that meets their organisational needs They have a defined CI framework They have exceptional process standards and continually strive to improve them. They are innovative and challenge industry norms They are customer-centric They have great communication – both internally and externally. They operate ethically and in a sustainable manner; and They benchmark themselves against other world leaders.
- I hope that these insights into creating a world class company have been useful. If you have any questions please do ask me now or I will be around for about ten minutes and would be happy to talk to you then about the Onsite Insights programme Thank you for your time today I hope you enjoy the rest of the Exhibition.