Operations Manager, Abbott Vascular, Clonmel, Ireland (Winners of the Overall Shingo Prize)

2. PAT KEALY
Vascular Division Operations Manager
Abbott Ireland

3. The Abbott Journey to
the Shingo Prize

4. Abbott Vascular
Clonmel

6. Clonmel

9. What Do We Do?

10. What Do We Do?

11. What Do We Do?
MULTI-LINK VISION MULTI-LINK ZETA Xience V XIENCE PRIME
XIENCE Xpedition
BMS – Bare Metal Stent DES – Drug Eluting Stent
ABSORB
What Do We Do?

12. Our Quality Policy
Built as if Intended for My Family
We celebrate this with our
Customer Appreciation Day
• Worldwide event, 2013 theme
was “Enhancing Life Together”

13. Operational Excellence Timeline
BEFORE AFTER
Move LPI
to Zero
Lean
14 step
Six
Sigma
Lean
& 5S
Std
Work
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

14. Operational Excellence Timeline
Step 5
Pilot Area
Selection
Step 10
Develop
Standard
Move LPI
to Zero
Step 2
Objectives
Step 7
Group
Tech.
Activity
Step 14
Business
Case
Development
Lean
14 step
Step 4
Initiating
the Team
Step 9
Activity of
the
Associate
Six
Sigma
Step 1
Critical
Elements
of Success
Step 6
Activity of
the
Product
Step 13
Performance
Measurement
Lean
& 5S
Step 3
Team
Member
Selection
Step 8
Line/Cell
Vision
Std
Work
Step 10
Improving
Line
Flexibility
Class
A
Step 12
Design
Approval of
Line Layout
VSM A3
Product
Strategies
OLSA
Auto.
HPO
14-step
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
14 Step Process
500 to 1500 employees

15. Cultural Enablers – HPO
(High Performing Organisation)
2010 Culture Survey results helped shape the direction of the site
Perceived to be strongest at
• improving objective business metrics
• meeting corporate expectations
• delivering to customers
Opportunities existed in
• fostering great working relationships
• instilling confidence that this is a great place to build a career
• coaching people to develop their capabilities for the long term

16. High-Achieving and High-Performing
HAO HPO
I involve each member
of my team in decisions
that affect their work
environment
I regularly
use
performance
feedback
Members of my
work group treat
each other with
respect
My work group and I
consistently generate
and implement
improvement ideas
4 HPO statements developed for our people managers

17. I regularly use
performance
feedback
I involve each
member of my team
in decisions that
affect their work
environment
Members of my
work group treat
each other with
respect
My work group and I
consistently
generate and
implement
improvement ideas
Link to Operational Excellence

18. Operational Excellence Timeline
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Std
Work
Lean
14 step
Six
Sigma
Move LPI
to Zero
Lean
& 5S
Class
A
VSM A3
Product
Strategies
OLSA
Auto,
14-step
HPO
WSD
6-Box
Shingo
Operational Excellence Gap Analysis
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Culture Senior Leadership Education
Training & Coaching
Culture Senior Leadership Empowerment
& Involvement
Culture Senior Leadership Environmental
& Safety Systems
Culture Operations Education Training &
Coaching
Culture Operations Empowerment &
Involvement
Culture Operations Environmental &
Safety Systems
Culture Supply Education Training &
Coaching
Culture Supply Empowerment &
Involvement
Culture Supply Environmental & Safety
Systems
Culture Management Education Training
& Coaching
Culture Management Empowerment &
Involvement
Culture Management Environmental &
Safety Systems
Culture Customer Relations Education
Training & Coaching
Culture Customer Relations
Empowerment & Involvement
Culture Customer Relations
Environmental & Safety Systems
Culture Product & Service Dev Education
Training & Coaching
Culture Product & Service Dev
Empowerment & Involvement
Culture Product & Service Dev
Environmental & Safety Systems
Improvement Senior Leadership
Continuous Process Improvement
Improvement Operations Continuous
Process Improvement
Improvement Supply Continuous Process
Improvement
Improvement Management Continuous
Process Improvement
Improvement Customer Relations
Continuous Process Improvement
Improvement Product & Service Dev
Continuous Process Improvement
Alignment Senior Leadership
Alignment Operations
Alignment Supply
Alignment Management
Alignment Customer Relations
Alignment Product & Service Dev
Results Quality
Results Cost / Productivity
Results Delivery
Results Customer Satisfaction
Results People Development
Weighted Average 53% (534 points)

19. 2012 Assessment
Operational Excellence Gap Analysis
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Culture Senior Leadership Education
Training & Coaching
Culture Senior Leadership Empowerment
& Involvement
Culture Senior Leadership Environmental
& Safety Systems
Culture Operations Education Training &
Coaching
Culture Operations Empowerment &
Involvement
Culture Operations Environmental &
Safety Systems
Culture Supply Education Training &
Coaching
Culture Supply Empowerment &
Involvement
Culture Supply Environmental & Safety
Systems
Culture Management Education Training
& Coaching
Culture Management Empowerment &
Involvement
Culture Management Environmental &
Safety Systems
Culture Customer Relations Education
Training & Coaching
Culture Customer Relations
Empowerment & Involvement
Culture Customer Relations
Environmental & Safety Systems
Culture Product & Service Dev Education
Training & Coaching
Culture Product & Service Dev
Empowerment & Involvement
Culture Product & Service Dev
Environmental & Safety Systems
Improvement Senior Leadership
Continuous Process Improvement
Improvement Operations Continuous
Process Improvement
Improvement Supply Continuous Process
Improvement
Improvement Management Continuous
Process Improvement
Improvement Customer Relations
Continuous Process Improvement
Improvement Product & Service Dev
Continuous Process Improvement
Alignment Senior Leadership
Alignment Operations
Alignment Supply
Alignment Management
Alignment Customer Relations
Alignment Product & Service Dev
Results Quality
Results Cost / Productivity
Results Delivery
Results Customer Satisfaction
Results People Development
Weighted Average 53% (534 points)
Dimension: Cultural Enablers
Continuous
Process
Improvement
Enterprise
Alignment
Results
Seeing Reality!!

20. True Lean
Full Engagement
(Principles)
Good Engagement
(Systems)
Low Hanging Fruit
(Tools)
Easy Wins
(Logic and Intuition)
• The Shingo Model aided in
setting the direction for the
roadmap
Operational Excellence
Operational
Excellence
• For Clonmel to progress along
its Continuous Improvement
journey, a vision and roadmap
was required

21. Operational
Excellence Timeline
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Operational Excellence Gap Analysis
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Culture Senior Leadership Education
Training & Coaching
Culture Senior Leadership Empowerment
& Involvement
Culture Senior Leadership Environmental
& Safety Systems
Culture Operations Education Training &
Coaching
Culture Operations Empowerment &
Involvement
Culture Operations Environmental &
Safety Systems
Culture Supply Education Training &
Coaching
Culture Supply Empowerment &
Involvement
Culture Supply Environmental & Safety
Systems
Culture Management Education Training
& Coaching
Culture Management Empowerment &
Involvement
Culture Management Environmental &
Safety Systems
Culture Customer Relations Education
Training & Coaching
Culture Customer Relations
Empowerment & Involvement
Culture Customer Relations
Environmental & Safety Systems
Culture Product & Service Dev Education
Training & Coaching
Culture Product & Service Dev
Empowerment & Involvement
Culture Product & Service Dev
Environmental & Safety Systems
Improvement Senior Leadership
Continuous Process Improvement
Improvement Operations Continuous
Process Improvement
Improvement Supply Continuous Process
Improvement
Improvement Management Continuous
Process Improvement
Improvement Customer Relations
Continuous Process Improvement
Improvement Product & Service Dev
Continuous Process Improvement
Alignment Senior Leadership
Alignment Operations
Alignment Supply
Alignment Management
Alignment Customer Relations
Alignment Product & Service Dev
Results Quality
Results Cost / Productivity
Results Delivery
Results Customer Satisfaction
Results People Development
Weighted Average 53% (534 points)
Std
Work
Lean
14 step
Six
Sigma
Move LPI
to Zero
Lean
& 5S
Class
A
VSM A3
Product
Strategies
OLSA
Auto.
14-step
HPO
WSD
6-Box
CI Huddles
Sup Ex
Shingo

22. Operational Excellence Timeline
Supervisor Standard Work
Over 2 week cycle there will be more meetings
on days and more RCA on evenings
7:50- 9:00 9:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:20
Pre shift comms with Lead Op
to ensure alignment on daily plan / tasks
(e.g. Lot Change time, Training, Op certs, CI
Huddle, etc…)
DBTH (Day BY The Hour) Utilisation
Check Line Performance Hourly with Line Lead -
Support and take action as needed and update
on eDBTH
DBTH Utilisation
Same as 09.00:-10:00
DBTH Utilisation
Same as 09.00:-10:00
DBTH Utilisation
Same as 09.00:-10:00
DBTH Utilisation
Same as 09.00:-10:00
DBTH Utilisation
Same as 09.00:-10:00
Shingo
Std work
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
People Development
DBTH Utilisation
Same as 09.00:-10:00
Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins
RCA Work
Duration: 0 - 5 min Duration: 10 mins Duration: 1 Hr 5 mins Duration: 15 mins
Rearrange station headcount and coverage if
necessary
Meet with Lead Operator
Review changes to daily plan based on morning
meeting and first hour performance
Meetings
HR 1-1, Lean Review, 1-1's, CI Huddle and Comm Huddle, Safety, Staff, Others
End of shift DBTH check
(reconciliation ,etc…)
Check Voice mail
Follow up with Line on first hour production
Make corrections where necessary and give
feedback if positive
Station Assignment Plan
Create plan for next day including planned
holidays other known absences (training, etc..)
Mon Tue Wed Thu Fri
Operator Coaching
Standard Work Check
Improvement Project (Yield, SMED, etc…) - DMAIC
5S
1st & Last Hr performance As required daily or review once every 2 weeks
Line Trend Analysis As required daily or review once every 2 weeks
UPPH Analysis As required daily or review once every 2 weeks
Lot CT As required daily or review once every 2 weeks
MUV As required daily or review once every 2 weeks
CI Huddle Work As required daily or review once per week
Move LPI
to Zero
Lean
14 step
Six
Sigma
Lean
& 5S
Std
Work
Class
A
VSM A3
Product
Strategies
OLSA
Auto.
HPO
14-step
WSD
6-Box
Sup Ex
Connect
‘Dots
CI Huddles

23. Connecting the Dots

24. Connecting the Dots

25. Connecting
the Dots

26. Connecting the Dots
• Links our performance to our strategic themes
• Aligning performance measures to the
delivery of our strategy
Product

27. Operational Excellence Timeline
Over 2 week cycle there will be more meetings
on days and more RCA on evenings
7:50- 9:00 9:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:20
DBTH Utilisation
Same as 09.00:-10:00
Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins
Check Voice mail
Follow up with Line on first hour production
Make corrections where necessary and give
feedback if positive
Station Assignment Plan
Create plan for next day including planned
holidays other known absences (training, etc..)
Mon Tue Wed Thu Fri
Operator Coaching
Standard Work Check
Improvement Project (Yield, SMED, etc…) - DMAIC
5S
1st & Last Hr performance As required daily or review once every 2 weeks
Line Trend Analysis As required daily or review once every 2 weeks
UPPH Analysis As required daily or review once every 2 weeks
Lot CT As required daily or review once every 2 weeks
MUV As required daily or review once every 2 weeks
CI Huddle Work As required daily or review once per week
Duration: 0 - 5 min Duration: 10 mins Duration: 1 Hr 5 mins Duration: 15 mins
End of shift DBTH check
(reconciliation ,etc…)
Move LPI
to Zero
Supervisor Standard Work
DBTH (Day BY The Hour) Utilisation
Check Line Performance Hourly with Line Lead -
Support and take action as needed and update
DBTH Utilisation
Same as 09.00:-10:00
DBTH Utilisation
Same as 09.00:-10:00
Review changes to daily plan based on morning
meeting and first hour performance
HR 1-1, Lean Review, 1-1's, CI Huddle and Comm Huddle, Safety, Staff, Others
Lean
14 step
DBTH Utilisation
Same as 09.00:-10:00
DBTH Utilisation
Same as 09.00:-10:00
Six
Sigma
Pre shift comms with Lead Op
to ensure alignment on daily plan / tasks
(e.g. Lot Change time, Training, Op certs, CI
Huddle, etc…)
Rearrange station headcount and coverage if
Lean
& 5S
DBTH Utilisation
Same as 09.00:-10:00
RCA Work
Meetings
Std
Work
Class
A
VSM A3
Product
Strategies
OLSA
Auto.
HPO
14-step
WSD
6-Box
Shingo
Sup Ex
CI Huddles
Std work
Connect
‘Dots
on eDBTH
necessary
Meet with Lead Operator
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

28. Operational Excellence Timeline
Sup Ex
CI Huddles
2012 2013
Evident when we look back that our journey has mirrored a classic Operational Excellence path:
1) Initially the primary focus was on tools
2) A system focus then brought alignment to where and how we use the tools
3) Our latter years have focused on the cultural enablers, embedding the Shingo Principles
HPO
2011
Six
Sigma
KNOW-HOW KNOW-WHY
KNOW-HOW
Systems focus
Tools & Technique focus Principle focus
Connect
‘Dots
Shingo
WSD
2008 2010
Class
A
2009
A3
Product
Strategies
VSM
6-Box
Std work
Lean
14 step
2004 2006
LPI
2005 2007
Lean
& 5S
Std
Work
OLSA14-step
Auto.
Move
to Zero

29. A Lot Done….
Finance Standard Work Activities
CO - Completed NC - Overdue (not completed by due date)
July
WIP - Work in Progress N/A - N/A for current week 31 30 29 28 27
Area Task Owner Frequency
Month
End
Activity
Due
Date
Post Month
End Activity Due Date
29-Jul-13
22-Jul-13
15-Jul-13
08-Jul-13
01-Jul-13
AP - Journals & Rec list & review month end files ALL Monthly x Day 10 WIP CO WIP NC WIP
- Prepare AP & Deviation Metrics & Review RO/MC Monthly x Day 4 CO N/A N/A N/A CO
- Vendor Payment Run & Review CS/RO/MC Fortnightly x Day 6 (Approx) N/A CO N/A CO N/A
- VAT Return RO/MC Bi-Monthly x 19th N/A N/A CO N/A N/A
- Vies & Intrastat Return RO/MC Monthly x 25th WIP NC N/A N/A N/A
- 46G (To Sligo) RO Annual y x 25th Feb N/A N/A N/A N/A N/A
- Creditors Reconciliations (Top 10 monthly / 100% quarterly)) CS/RO/MC Monthly x Day 15-20 WIP WIP WIP N/A N/A
- Review PO Edit Reports MC Monthly x Day 10 N/A N/A N/A CO N/A
- Review Vendor Master Edit Report MC Monthly x Day 10 N/A N/A CO N/A N/A
- PO Audit MC Quarterly x Day 12 N/A N/A N/A CO N/A
- Vendor Master Maintenance MC/RO Bi - Annual y x Jan/Jul N/A N/A N/A N/A N/A
- Denied Party Screening MC Quarterly x Jan/Apr/Jul/Oct NC N/A N/A N/A N/A
Inter Co - Forecast Netting Payables/Receivables CS Monthly x Day 5 N/A N/A N/A CO N/A
- Pre-Netting from Sligo, confirm CS Monthly x Day 10 (Approx) N/A N/A CO N/A N/A
- Final Netting from Sligo, confirm and post CS Monthly x Day 15-20 N/A CO N/A N/A N/A
Payroll - Prepare Payroll Metrics & Review AM/GQ/MC Monthly x Day 4 CO N/A N/A N/A CO
- Process Merit Increase for all employees & review AM/GQ/MC Annual y x Annual y - 1 Apr N/A N/A N/A N/A N/A
- Process Bonus & Review AM/GQ/MC Annual y x Annual y - 10 Mar N/A N/A N/A N/A N/A
- Monthly Payroll Processing AM/GQ/MC Monthly x Day 10 (Approx) N/A N/A N/A CO N/A
- Fortnightly Payroll Processing AM/GQ/MC Fortnightly x Day 19 (Approx) CO N/A CO N/A CO
- P30 Preparation & Submission to Revenue GQ/MC Monthly x Day 10 (Approx) N/A N/A N/A N/A CO
- ESPP contributions submitted to Sligo AM Monthly x Day 5 N/A N/A N/A CO N/A