Milliken s Journey to Operational Excellence. Phil McIntyre, Managing Director

Transcription

1 Milliken s Journey to Operational Excellence Phil McIntyre, Managing Director

2 Milliken & Company

3 Milliken & Company Background Founded in 1865 Privately held ~$2.5 Billion in revenue ~7,500 associates 45 sites in 6 countries 9 Locations 15 Locations Operations throughout the Americas, Europe and Asia Corporate Offices Manufacturing /Warehousing Sales/Technical Service Floor Covering Design Studio

4 Key Markets Chemical Performance Materials Apparel & Specialty Fabrics Floor Covering

5 The Markets We Serve Duct tape to make it strong and tearable Mattresses to make them fire resistant Detergents, sponges, bowling balls to make them colorful Children s paints and markers to make them washable Bathroom sinks, countertops, tubs and appliances to make them anti-microbial School sports gear, shoes, and uniforms to reduce odor and improve comfort Luggage that is more durable and light weight 50 times a day you will come in contact with a Milliken product!

6 Safety is a Value Cases per 100 Associates U.S. Industry U.S. Textile Industry 3. MILLIKEN RECORDABLE INCIDENT RATE / 200,000 MAN HOURS

7 Milliken & Company s Reality Performance vs Domestic Textile Players 100% Percent of U.S. consumption that is Imported 120 U.S. Textile Mill Production 75% Textiles 80 50% 25% 0% All items Textile companies with > $1B sales: 1995 Milliken Springs Burlington Collins & Aikman Westpoint Stevens Fieldcrest Cannon Today Milliken

8 Milliken & Company is a 153 yr-old American company that has not only survived but thrived in the hyper-competitive global textile industry the only one in the industry with sales over $1bn that still maintains its headquarters in the United States a company that never off-shored its production and yet was able to achieve a 16% CAGR in earnings over the period now roughly 50% more productive than it was in 2004, but with 20% fewer plants operating 44 plants globally with no managers present during third shift operations proud to have earned 70% of all the JIPM-TPM prizes awarded in N America a Value-based company with one of the best safety records and most highly engaged workforces of any organization anywhere in the world one of only a couple included in Ethisphere s list of the world s most ethical companies all 12 years the survey has been conducted an Innovation company with approximately 5,000 patents worldwide

9 The Question How has Milliken survived and thrived? 1. Positioned in the right markets 2. Innovation 3. Operational Excellence With Safety as the Foundation

10 Sustaining the Gains was difficult

11 Milliken in The Good Old Days Privately held, no debt Best equipment, data rich Award Winning Value-based (Safety) Hyper-Competitive Industry Command and Control Initiative Driven Project Focused Faced with an on-going inability to Sustain Gains

12 For Years, Employees Were Called

13 The Beginning of Engagement 14 Step Process Quality Improvement Empowered Associates Cost of Quality

14 Reactive vs ProActive We were reacting

15 & Management Solved Problems

16 Evolution of Operational Excellence People Excellence Era 1980 to 1985 Process Excellence Era 1985 to 1990 Business Excellence Era 1990 to 1996 Over 125 Corporate Initiatives Implementation of the Milliken Performance System 1996 to Today We hit a plateau on each initiative

17 Study Missions to Japan Benchmarking World-Class Manufacturing Practices

18 Study Mission Companies Visited Company Name Dynic Corporation Gunze Sekisui Chemical Daikin Industries Toshiba (Himeji) Toshiba (Kanuma) Nissan Japan Butyl NEC Nippondenso Ricoh Products Textiles Textiles Plastic Film Air Conditioners Lighting Lighting Automobiles Butyl Rubber Electronics Auto Parts Copier Parts Awards TPM TPM Deming, TPM, TPM Special Deming, TPM, TPM Special Deming, TPM Deming, TPM Deming, TPM TPM Deming, TPM, TPM Special Deming, TPM Deming, TPM

19 The Leadership Challenge Measurement # of Companies Reporting Improvement Productivity Process Reliability / OEE % 32% Milliken sent 120 managers on 4 Study Mission Trips Breakdowns 9 92% Defects 7 74% Claims 6 85%

20 The Leadership Challenge Western Management 40% Daily Operations 60% Firefighting The Best in Japan 20% Daily Operations 20% Firefighting 60% Continuous Improvement/ Innovation Routine Working Through Cross-Functional Teams

21 The Leadership Challenge 58% Firefighting

22 The Milliken Performance System Safety builds trust

23 Why it stuck Losses Associate Engagement Leadership Commitment through Leadership Changes Modeling

24 The 3 Strategic Levers siloed Leadership Associates Impact Processes

25 The 3 Strategic Levers now Engage Empower Leadership A New Way Of Leading Engagement Impact Max A New Way Of Working Associates Excellence Enable System

26 My organization operates primarily by a 100% 80% 60% 40% 52% 48% 20% Initiative Approach Systematic Approach

27 My organization seeks cost reduction by a 100% 80% 76% 60% 40% 24% 20% Zero-Based Thinking Approach Budget Approach

28 My organization tends to have 100% 80% 60% 57% 43% 40% 20% Short-Term Thinking Long-Term Thinking

29 My organization relies heavily on 100% 80% 60% 40% 52% 48% 20% Individual Heroics Team Processes

30 My organization s solutions to problems derive primarily from 100% 80% 71% 60% 40% 29% 20% Experience A Scientific Process Methodology

31 In my company We make improvements by driving initiatives, based on what s in our budgets, going for short term results, under the leadership of heroic individuals who rely on their experience.

32 Thank You! Questions? Phil McIntyre