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Ähnlich wie The impact of a company's culture on Lean intiatives - SME
Ähnlich wie The impact of a company's culture on Lean intiatives - SME (20)
The impact of a company's culture on Lean intiatives - SME
- 1. The impact of a company’s culture on Lean initiatives Kirk Hazen, P.E. Continuous Improvement Manager Lincoln Industries
- 2. • Who we are • Building a culture of trust • Architecting a Talent Based Organization • How a great culture impacts Lean • Lincoln Industries Approach • Lessons Learned
- 3. Who we are • One of the largest US independent finishing company • Founded in 1952 • 530 PEOPLE in a 24/7 operation • Revenue in excess of $100 million • A decade of over 15% annual growth • 40+ finishing processes • Process and quality driven • TS 16949 and ISO9001 certified • ISO14001 certified • Blue chip customer list: • Harley-Davidson • Pella Corporation • Maytag • Tenneco Automotive • PACCAR • Freightliner
- 4. • Who we are • Building a culture of trust • Architecting a Talent Based Organization • How a great culture impacts Lean • Lincoln Industries Approach • Lessons Learned
- 5. “No one cares how much you know until they know how much you care.” Author Unknown
- 6. Wellness Program • “Go Platinum” – medal categories for wellness achievement including a platinum invite for 14,000 ft mountain climb • Wellbucks – financial incentive for wellness participation • Weight management (continuous offering) • Tobacco cessation (continuous offering) • Mayo Clinic newsletter for all people • “Wellness Wednesday” • Gym reimbursements • Consumer driven health care • Tobacco-free health insurance discounts
- 7. Communication • One Company - One Voice meetings • Roundtable meetings • SHINE Newsletter • Profit Sharing Letter • The LINC • Pre-shift meetings Photo from one company one voice or roundtable
- 8. Measurement tools • Individual Opinion surveys • Departmental surveys • Strategic supplier survey • Gallup customer survey • Great Places To Work® Trust survey
- 9. Recognition programs • Monthly Champions events • Annual Night of Champions • Bright Ideas • Service recognition • Safety recognition • Environmental • Wellness • Quality • Birthdays and anniversaries 2004 (25), 2005 (20), 2006 (11), 2007 (11), 2008 (20)
- 10. Growth 190 530 475 550 450 425 350 300 240 160 0 100 200 300 400 500 600 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Personnel Growth 104 96 82 18.2 77 70.1 53.6 45.5 35.3 28.3 23.9 19.8 15.9 0 20 40 60 80 100 120 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales Growth • Achieved a 8% growth in sales with a 4% decrease in personnel in 2008 • Since starting our Lean Journey in 2006 Sales Growth = 26% Personnel Growth = 12% Personnel Growth Sales Growth
- 11. Financial results Companies with great cultures out-perform other companies.
- 12. Financial results “100 Best” vs. Stock Market 1998-2005 0% 5% 10% 15% 20% "100 Best" Reset Annually "100 Best" Buy and Hold S&P 5000 Russell 3000
- 13. Lean Enterprise Lincoln Industries Lean Vision Statement: Lean is the relentless pursuit of eliminating waste as characterized by the ability to SEE it, the courage and willingness to CHANGE it, and the discipline to SUSTAIN improvements. Lincoln Industries Lean Mission Statement: Lean Enterprise will be accomplished through Educating to SEE waste, providing the System to CHANGE it, and the Leadership to SUSTAIN improvements.
- 14. • Who we are • Building a culture of trust • Architecting a Talent Based Organization • How a great culture impacts Lean • Lincoln Industries Approach • Lessons Learned
- 15. Lincoln Industries people “People making a difference.”
- 16. “Those who build great companies understand that the ultimate throttle on growth is not markets, or technology, or competition, or products. It is one thing above all others: the ability to get and keep enough of the right people.” Jim Collins, Good to Great
- 17. Talent Based Organization Vision: “An organization with the right people, in the right seats, fully engaged and successful in what they do to achieve great results.”
- 18. “Selection vs. Hiring” Talent Based Organization Individual Lincoln Industries Opportunities 1. Fit = Culture: Beliefs & Drivers 2. Talent = Hardwiring, Natural Strengths 3. Skill = Teachable, Experience, Education Project Engineer “Miss” Business Development “Miss” Area Leader “Hit” Individual Opportunity
- 19. Area Leader
- 20. • Fit, talent and skill – in that order • Select before hiring – all the time, every time • Become obsessed with getting and developing talent • Develop a talent mind set with those you manage • Play offense Talent Based Organization Weak Talent Literacy Strong
- 21. Talent Audit • A formal process and tools for conducting an audit of Fit, Talent and Skill for all Lincoln Industries people. • Drive decisions and actions that better align people to positions to increase organizational effectiveness. • “Fit” with other people systems – Selection, Performance Management, Vision College – skill training and talent development.
- 22. HT HK/S HT LK/S LT HK/S LT LK/S Low High High Talent Based Organization Talent Knowledge/Skills Talent Audit - Human Capital Balance Sheet
- 23. HT HK/S HT LK/S LT HK/S LT LK/S Hardwiring talent audit • Right seat discussions • Aggressive Performance Improvement Plans • Manage out • Leverage skills • Technical/Functional development • Teacher • “Step Up” • PPAT • IDP’s • Plan next move(s) • Compensation • Skill training and development assignments
- 24. • Who we are • Building a culture of trust • Architecting a Talent Based Organization • How a great culture impacts Lean • Lincoln Industries Approach • Lessons Learned
- 25. Culture Change How nimble is your organization to change? Will the team respond quickly to clear expectations? **Patrick Lencioni – 5 Dysfunctions of a Team
- 26. How does a great culture impact Lean? • Right people on the bus — people that fit and can bring innovative ideas to the table • Strengths-based management – provide people with the ability to do what they do best • People engaged at all levels • People ready to make a difference — ready to implement Lean tools • No fear of displacement due to improvements – managements commitment to our people • Collaborative commitment to Teamwork • Open Door/Open Book • Removal of Assumed Constraints
- 27. • Who we are • Building a culture of trust • Architecting a Talent Based Organization • How a great culture impacts Lean • Lincoln Industries Approach • Lessons Learned
- 28. Decision Making Hierarchy • SAFETY – Our people’s well-being is of the utmost importance – Safe processes are paramount to our business • QUALITY – Robust and repeatable processes will provide quality products • DELIVERY – We must meet our customers needs with the right parts at the right time and in the right amount • PRODUCTIVITY – We must continue to strive to produce a product that meets our customers expectations at the best cost possible
- 29. Lean Principles Lean focuses on: – The creation of value through the elimination of all types of waste. – The value stream. All the activities required to put a finished product in the hands of the customer. – Improving process flow to reduce lead times and inventory. – Producing based on pull instead of push-based scheduling. – Perfection of all processes and tasks
- 30. Value efective Products verproduction aiting on-utilized resources ransportation nventory otion xtra Processing DD OO WW NN TT II MM EE
- 31. Value Stream - MCpT
- 32. Flow 1. Strive for One – Piece – Flow “Handle each part ONLY once and ONLY handle one part at a time.” 2. Create continuous flow to each process and through each process
- 33. Pull 1. Build based on customer demand Your customer may be external or internal. Work to eliminate overproduction and the assumption of good quality. 2. Replenishment of ONLY products that are required
- 34. Perfection 1. Safety • Zero – Injury 2. Quality • Zero – Defects 3. Delivery • 100% On-Time Delivery 4. Productivity • Best Cost Method
- 35. Standard Work “Without standard work, there can be no Kaizen.” Taiichi Ohno
- 36. LI Lean Enterprise Voice of Customer Customer Satisfaction Profitable Sales Growth Safety Obsession Lean Manufacturing Value Stream Analysis Visual Factory Breakthrough Deployment NPD/Integration SKU Rationalization Kanban Sales/Operations Mgt Kaizen/6 S/TPM/SW Supplier Development Total People Involvement World Class Quality Unparalleled Customer Service Best in Class Productivity
- 37. • Who we are • Building a culture of trust • Architecting a Talent Based Organization • How a great culture impacts Lean • Lessons Learned
- 38. Successes • 2006 – (6) Kaizen Events – Approx. - $300k Savings Realized • 2007 – (27) Kaizen Events – Approx. - $650k Savings Realized – Over 75 participants in Kaizen Events • 2008 – (33) Kaizen Events – 50% Scrap Reduction – Approx. – $1.7M Savings Realized – Over 150 participants in Kaizen Events – EVERYONE in the company through at least 2 hours of Lean training
- 39. Lessons Learned • It takes a CRISIS to change – What is your crisis? • You must gain the TRUST of your people – What is in it for everyone? • Attain COMMITMENT at every level – How does senior leadership demonstrate their commitment? – Gemba Walks, Kaizens • Set clear EXPECTATIONS – How do people know what they need to do? • Hold everyone ACCOUNTABLE to what they say they will do – What mechanisms do you have in place to facilitate this accountability? • We must be able to MEASURE the improvement – What are the metrics that will set the direction and show improvement? • Continually CELEBRATE successes and learn from mistakes
Hinweis der Redaktion
- Good Afternoon, my name is Kirk Hazen. I work at Lincoln Industries which is located in Lincoln, Nebraska. I would like to take a second to provide you with my background and then I will get into the breadth of the presentation. First of all, I would like to thank the SME committee for putting the conference together and inviting me to be a part of this experience. I am always glad to speak to the experiences of Lincoln Industries regarding the business and our Lean journey. But most of all, I love continuously learning about how others have been successful in implementing lean tools in their organizations. Like I said before, my name is Kirk Hazen, I am a licensed professional mechanical engineer. I graduated with a degree in Agricultural Engineering and I have spent the last 10 years in engineering and continuous improvement roles within organizations that are in the agricultural equipment industry or the metal finishing industry. I have experienced LEAN transformations and understand the value of this transformation and many of the struggles that go with making the leap to change. My position with Lincoln Industries is Continuous Improvement Manager, in this role, I am charged with developing and implementing strategic plans for the organization to continue its LEAN journey and provide direction to leaders in the company regarding LEAN techniques and tools. Today I would like to speak to you about lean initiatives and the impact that a company’s culture has on the success of a lean implementation. We have heard many great presentations and took some tours already during this conference that have shown us many ways to use lean tools in an organization.
- In a snapshot, Lincoln Industries is a 56 year old company that has 550 people working in their facilities running a 24 hour per day, 7 day per week operation. This past year, we have surpassed the $100 million mark in sales revenue. One of the most fascinating business markers for Lincoln Industries is the fact that we are able to attain 15% annual growth year over year. We are certified with quality and environmental systems and are very cognizant of the environment in which we work and live. Just to give everyone a sneak peak into the customer list that Lincoln Industries serves, we have several BIG name companies that rely on us to provide products and services. Harley-Davidson, Pella Corporation, Maytag, Tenneco Automotive, PACCAR, and Freightliner are some of our larger customers.
- One of the challenges that is present in our business is managing growth. We just spoke about our annual sales increase being over 15% year over year and now you get a glimpse of our employment history. We are exploding in personnel numbers and this is to handle much of the NEW business that we are bringing on. This in and of itself presents many challenges. The Lincoln job market is very tight with unemployment number hovering around 2.5%. In a city of 250,000 people, an unemployment number in this range means that it is difficult to find people to fill positions in a growing company, but yet we are finding ways to do that.
- I would like to now discuss one of the prestigious awards that Lincoln Industries has been a recipient of for the past 5 years. The Great Places to Work Award.
- If we look at the top 100 companies as defined by the Fortune 100 listing, these are the return on investment numbers that you would have realized in the 4 different situation presented here. If every year, you purchased stock of the top 100 companies to work for, your return would be nearly 15%. In contrast, if you followed the S&P over the same timeframe, you would have realized a return of just shy of 5%. These numbers demonstrate that great companies are built by great people and cultures. These companies achieve much higher results as a matter of their care and concern for the people of their organizations.
- As we have come to recognize, the ONLY appreciating asset in our organization is our PEOPLE. We must make sure that we are investing in our people and setting them up for success in their role in the company.
- Jason has been with Lincoln Industries for 1.5 years now. He was recognized as a person with the right talent to be an Area Leader in our organization. In his previous work, Jason managed a produce department at a local supermarket. His talents include a high level of concern for people and an integrity to do the right thing in all situations. People with these talent sets fit well into our business model as leaders.
- Patrick Lencioni – 5 Dysfunctions of a Team
- SAFETY We first MUST ensure that we are able to produce the product in a safe manner because nothing is more important than keeping our people safe. Therefore, if there is a safety concern or a safety incident takes place, we need to focus 100% of our energy on solving that issue prior to moving forward with production. QUALITY After we have ensured that the process to make the product is SAFE and can be repeated safely, then we need to ensure that a quality product can be made each and every time that process is followed. If we have defective products made while utilizing the standard process, we should stop producing and solve the root issue. This will ensure a high level of quality and that is our commitment to our customers. DELIVERY After we have ensured that the process is SAFE and will produce a QUALITY part every time, we now can focus on ensuring that we have the capacity and the systems in place to deliver the product to our customer in the right quantity and at the right time. If we have an issue with capacity and can not deliver on time, we must address this issue before committing to any further production volume. Solving delivery problems is equally important as all other attributes, how valuable is it to be able to make the product safely and with quality in mind, and then NOT be able to deliver to the customer. PRODUCTIVITY Once we have established a process that can be performed safely, produce a quality part each time that the process is followed, and be able to deliver to the customer what they want when they want it, then we can begin to look for a more efficient method of producing the parts. These efficiency improvements are directly related to cost of manufacture for a product. As we make cost improvements in processes, this will lead to higher profitability, greater customer satisfaction, and more competitive pricing from our organization for our customers.
- Jim Womack and Daniel Jones – Lean Thinking
- Does anyone remember the “sea of bumpers”? About 2.5 years ago, this is what the warehouse looked like. This is normal production, the reason that we have this picture on this slide is the fact that it demonstrates and displays each of the 8 wastes. Defective Products – Red tags on the shelves Overproduction – I do not know what else would lead to this situation but overproduction. If we were producing to the customer demand and shipping the product, we would not have this situation. Waiting – The true definition of waiting is the fact that the plating line will be needing the parts on the top shelf, half way down the aisle. In order to get to these parts, the fork lift driver will have to remove all of the product on the floor in front of the shelf, remove the product that was needed, and then put the product on the floor back in place. This sometimes would take up to 2 hours to complete. Non-utilized resources – looking for parts Transportation – Movement of product Inventory – Look at the picture Motion – Extra movement of parts to get to other product Extra Processing – Rework tags on the shelves
- Like Paul talked about yesterday morning, the MCpT is the true TOP LEVEL METRIC of how lean your organization is at any one point in time.