True North at Zimmer. Made as if intended for my family
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- Bruno Wade
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1 True North at Zimmer
2 History of Zimmer US Orthopaedic Multinational founded in 1927: Justin O. Zimmer 1972: Acquired by Bristol-Myers Squibb 2001:Spin-off Zimmer from BMS and NYSE (ZMH) Justin O. Zimmer Acquisition of Centerpulse/Sulzer Orthopedics by Zimmer 2008 Announce Operations Expansion to Shannon, Ireland
3 Zimmer Today In the top 5 Orthopaedic Companies Globally Headquarters Warsaw, Indiana, USA Global Sales ~$4.45 Billion >7,000 employees 13 manufacturing locations globally Celebrated 10 years on NYSE in 2011
4 $30 Billion Market Opportunity Extremities $1.0 Billion Global Market 15% Market Growth, full year % ZMH Market Share #3 Market Position, full year 2009 Hips $5.8 Billion Global Market 4% Market Growth, full year % ZMH Market Share #2 Market Position, full year 2009 Knees $6.4 Billion Global Market 5% Market Growth, full year % ZMH Market Share #1 Market Position, full year 2009 OSP Dental $3.3 Billion Global Market (5)% Market Growth, full year % ZMH Market Share #5 Market Growth, full year 2009 Spine $8.7 Billion Global Market 10% Market Growth, full year % ZMH Market Share #6 Market Position, full year 2009 Trauma $4.4 Billion Global Market 6% Market Growth, full year % ZMH Market Share #5 Market Position, full year 2009 Includes Bone Cement, Wound Management and Tourniquet System Products for Zimmer s human musculoskeletal system products. 4
5 Shannon History Legal Entity registered 6 th Dec 2007 Site Purchased 4 th Feb 2008 Building Constructed mid 90 s Previously occupied by Flextronics (Distribution Warehouse) Commenced Construction February 2008 Construction Works Complete September 2008 First Products shipped in 2009 Achieved FDA approval signified end of start up mode 2011 focus on high volume Femoral manufacturing Currently employees
6 Factory Floor Blank Canvas
7 Zimmer (ZOML) Operations Business Model
8 Integrating the Business
9 We are.?
10 Zimmer (ZOML) Operations Deployment
11 Vision Manufacturing will at ZOML become a strategic weapon for Zimmer, providing the industry s highest-quality products at the lowest cost. Our ability to quickly flex capacity and respond to market changes will set new standards and provide the commercial organization with absolute confidence in product supply, providing our sales force with more leverage to take share. Centre of Excellence What does that mean?
12 Our Vision
13 Our Vision
14 Our Vision
15 Our Vision
16 Our Vision
17 Guiding Principles People are our greatest asset Safety - Everybody s responsibility Quality comes first compliance culture Always look for ways to do things better Business Excellence ( a culture of continuous improvement) Balance the books Customer focus Make and keep commitments One set of numbers Performance Management Find time for important versus urgent Balance short and long term views and actions Have fun!! Are you outstanding?
18 Shannon Manufacturing Over Emphasis on the Tools.be careful... CI Tools Pull Supermarkets Cellular Manf Heijunka Anova Line-Balancing Gage R&R SPC Layout Analysis 6 Sigma Bench-marking OEE Ergonomics Kanban Systems Jidoka Standard Work 5S Visual Mgt SMED Takt Time 1-Piece Flow Metrics Cause & Effect TPM Poka Yoke Value Stream Mapping
19 Shannon Manufacturing Most Common Five Lean Implementation Mistakes. 1. Leadership Team does not actively champion the Lean-Thinking Approach 2. Lean initiatives not tied to overall Business Objectives / Goals 3. All Employees are not educated on Lean or involved in the change-process 4. No Lean Strategy / Plan is put in place 5. Over emphasis on the Lean Tools (Random Acts of Lean)
20 Shannon Manufacturing Why choose Lean? Measure Top 10% Companies Zimmer Customer service % % Yield % % Overall Equipment Effectiveness (OEE) % 90% 45% Inventory Days on Hand Annual Productivity Improvements 5-15% 10-12% Capacity used for changeovers % 0.6 April, 2008
21 Shannon Manufacturing Our Drive towards Business Excellence 1.LEADERSHIP2.SCOPE LEAN 6. MEASURE 3.PEOPLE STRATEGY 5.TOOLS 4.PROCESS
22 Shannon Manufacturing Our Drive towards Business Excellence LEADERSHIP: Training & Commitment of Site Senior Management SCOPE: Define functional areas (re lean deployment) PEOPLE: Define resources to Manage, Facilitate & Support Train all employees in Lean Principles PROCESS: Define Process for applying, reviewing and reporting Lean Activity TOOLS: Define clear toolkit that will be used to execute CI projects MEASURE: Agree on a set of lean-related metrics (plus calculation rationale) make it visual!!!
23 Shannon Manufacturing Key Challenges Source: Aberdeen Group,
24 Shannon Manufacturing Industry - Key Challenges Source: Aberdeen Group,
25 Factory Floor - Today
26 Zimmer Operations Excellence
27 ZOML Headcount
28 We create the future. Enjoy the Journey!!!!!
29
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