Management Strategies For A Successful Lean Transformation

Transcription

1 Management Strategies For A Successful Lean Transformation November 2012 Speaker John Weist CNH Saskatoon Plant

2 INTRODUCTION - Born and raised in Southern SK - Industrial Systems Engineering Degree - 4 years as Manufacturing Engineer - 4 years as WCM Manager - 1 year as ME / WCM Manager 2

3 WHY AM I SPEAKING WITH YOU TODAY? Annual Savings $5.7 M $5.6 M $5.9 M % Trans. Cost 10.3% 9.0% 9.2% saskatoon Plant #11 Plant #6 Plant #4 Plant #9 Plant #3 Plant #2 Plant #8 Plant #1 Plant #7 Plant #5 3

4 AGENDA Plant Information Product Line World Class Manufacturing (WCM) Management Strategies 1.) Senior Management Involvement 2.) Importance of KPI 3.) Goal Alignment 4.) Involve Everyone 5.) Time and Budget Investment 6.) Rigorously Audit 7.) Reward and Recognize Plant Results 4

5 Plant Information 5

6 SASKATOON FACILITY PLANT 632,000 SQUARE FT 58,700 SQUARE M LAND 156 ACRES 63 HECTARE 6

7 FLEXI-COIL COMPANY HISTORY The previous company, Flexi-Coil Ltd., was established in During the 1990s Flexi-Coil became Canada's largest farm manufacturer. Air Seeding and Tillage industry leader in North America and Australia. (air carts, drills and coil packer) New Holland purchased 35% of Flexi-Coil in Merger of New Holland and CaseIH The remaining shares of Flexi-Coil were acquired in January of

8 FULLY INTEGRATED FACILITY FAB WELD PAINT ASSEMBLY 8

9 PLANT LAYOUT East Powder Paint Line Planter, Header Assembly Lines Planter and Header Weld Stalls Fabrication Equipment West Powder Paint Line Tillage and Air Seeder Weld Stalls Air Seeder line M66 Assembly Receiving / Warehouse Tillage Crating and Component Assembly 9

10 HEADCOUNT 10

11 PLANT SUMMARY CUSTOMER DISTRIBUTION USA 70.6% Canada 21.9% CIS 1.8% China 2.6% Africa 0.5% S America 0.6% Australia/NZ 2.0% 11

12 Product Line 12

13 PRODUCTS Planters (17 models, 1 brand) Air Carts (4 models, 3 brands) Hoe/Disk Drills (4 models, 3 brands) 13

14 PRODUCTS Corn Heads (2 models, 2 brands) Grain Heads (2 models, 1 brand) Pickup Heads (2 models, 2 brands) 14

15 SOME ASSEMBLY REQUIRED!! This configuration requires ~175 hours of labor to setup 15

16 NEW PRODUCT LAUNCHES 1260 Planter February R30/18R20 Corn Header April Bu Air Cart November 2010 Pickup Header January 2011 Pull-Type Sprayer Dec 2011 M66 December

17 World Class Manufacturing 17

18 WHAT IS WCM - Corporate continuous improvement program focused on 3 objectives; 1.) employee involvement 2.) improving plant standards 3.) reducing wastes and losses - 10 technical pillars and 10 managerial pillars - focuses on the concept of zero and the sharing of best practices Plants involved in 16 different countries - Fundamentally changed how the Plant is managed - WCM is not a project, it is how we do business 18

19 Management Strategies 19

20 THE RESOURCE STRUGGLE Everyone has full time jobs where we work through the day to day things that allow us to get paid Resources We as Managers want more time for our employees to do continuous improvement type activities 20

21 IT STARTS WITH SENIOR MANAGEMENT (TOP DOWN) Senior Management including Plant Manager conduct Gemba project reviews twice per week Reviews completed and planned action items for the week Reviews road blocks and takes actions as required A lack of activity cannot be hidden on the floor (we learned this the hard way) 21

22 UNDERSTAND AND SET KEY PERFORMANCE INDICATORS - Set KPI s / Lagging metrics (3-5 most critical metrics) Plant level followed by department specific - Set KAI s / Leading metrics (30-50 supporting measures) Plant level followed by department specific **** Caution, several companies try to focus on everything, KPI s are too many **** **** KAI s need to predict KPI success and must be able to be influenced by the group**** 22

23 UNDERSTAND AND SET KEY PERFORMANCE INDICATORS - Set SMART metrics 1.) specific 2.) measurable 3.) attainable 4.) realistic 5.) timely - Set aggressive metrics 1.) 8% transformation cost savings per year 2.) zero breakdowns 3.) 90% reduction in cleaning times 23

24 VISUALLY DISPLAY YOUR KPI S / KAI S (PLANT LEVEL) Create a Scorecard Simple Highly visible to all employees Have the right metrics Must be easy for everyone to know whether they are winning or losing 24

25 VISUALLY DISPLAY YOUR KPI S / KAI S (PLANT LEVEL) KPI's Target # of breakdowns after step 3 in the model area 0 MTBF MTTR OEE by Step 5-85 May. 18 May. 25 Jun. 1 Jun. 8 Jun. 15 Jun. 22 Jun. 29 Jul % 80.1% 80.1% 80.1% 80.1% 77.2% 77.2% 77.2% B/C of each step 1 >1 B/C of each step 2 >3 B/C of each step 3 >1 KAI's Target # of SMPs in model areas 240 % EWOs closed (counter measures implemented) 100% # of MP Info in model areas 24 Breakdown Maintenance Hours vs Non Breakdown hrs in Maint. 30% vs. 70% May. 18 May. 25 Jun. 1 Jun. 8 Jun. 15 Jun. 22 Jun. 29 Jul % 91.60% 91.60% 91.60% 91.60% 91.30% 91.40% 92.80% % vs 88% 11% vs 89% 11% vs 89% 11% vs 89% 11% vs 89% 11% vs 89% 11% vs 89% 11% vs 89% Each pillar updates their specific KPIs every week Displayed in Center of Excellence Quick visual for Senior Management to see overall progress and question KPI s which are not being met 25

26 VISUALLY DISPLAY YOUR KPI S / KAI S (DEPARTMENT SPECIFIC) Standardized supervisor communication boards (hourly staff) Process Monitor Boards for department specific metrics (salaried staff) 26

27 VISUALLY DISPLAY YOUR KPI S / KAI S Front Entrance Safety Kaizen Tracking Board Activity Boards KPI Display Boards 27

28 KPI / GOAL ALIGNMENT Objectives managed through central Performance Management System (EHRMS System) Plant Functional Area Salaried Employee Hourly Employee Example of Goal Alignment from Plant Manager to the Hourly Employees: Plant Manager s Goals provide the foundation for all other objectives. For 2012 they are: -Cost (Productivity & Spending) -Safety -Quality Area Manager s Goals are derived from the Plant Manager s goals. For 2012 they are: -Delivery & Inventory -Cost (Productivity & Spending) -WCM -Safety Production Supervisor s Goals are derived from -Quality the Area Manager s Goals and linked with their employee s Goals: -HR -Spending -WCM Hourly -Productivity Employee s Goals are derived from the Success Share Targets set across all plants: -Safety -Spending -Quality -Productivity -HR -Safety -WCM -Quality -WCM 28

29 INVOLVE EVERYONE - Our WCM Pillar Leaders are Managers, no questions asked, other Plants are not this way - All salaried staff are mandated to participate on a Pillar, its part of our letter of offer now 29

30 INVOLVE EVERYONE (MAKE IT A PRIORITY) All pillars meet weekly (Using a kaizen journal) WCM Weekly Meeting Times Monday Tuesday Wednesday Thursday Friday 7:00 Management Meeting Management Meeting Management Meeting Management Meeting Management Meeting 8:00 GEMBA Walk (8:00 9:00) Pillar Leads, Plant Manager, Ops Manager 9:00 Focused Improvement Corporate (9:00-10:00) 10:00 Autonomous Activity Logistics 9:00-10:00 Floor PM (7:30-8:30) Room F 11:00 Room F (10:30-11:30) 12:00 1:00 WCM new-hire presentation EEM Room B 1:00-2:00 2:00 Quality Control Room A (2:30-3:30) WO (11:00-12:00) Corporate FI (1:00-2:00) PM (1:00-2:00) Room B Room F WCM Information Session 11:30-12:30 MTC EPM Room B 12:30-1:30 CD East Plant People EEM (2:00-3:00) Pillar Lead Meeting Corporate Environment Development Room B (2:00-3:00) 3:00 Floor project reviews Room B (10:00-11:00) Room F CD Fabrication (2:00-4:00) CD Pillar Safety Room F 3:00-4:00 4:00 Floor project reviews Floor project reviews Floor project reviews 5:00 30

31 INVOLVE EVERYONE (MAKE IT A PRIORITY) Introduction of WCM into daily production meetings (2 Pillars present each day) - Tying WCM into everyday management - Support from production for roadblocks, brainstorming and countermeasures 31

32 TIME AND BUDGET INVESTMENT (LAST 5 MONTHS) Quality Gate Central Team Conference - Racine EEM / CD Wichita AM Goodfield PD Fargo / Wichita PM North America Pillar Leads PD Chrysler Academy PD WCM Audit Toledo 32

33 TIME AND BUDGET INVESTMENT (SENIOR MANAGEMENT) BENCHMARKING Pillar Teams CD FI AM WO CNH - Zedelgem FIAT - Cassino, Sevel CNH - Fargo FIAT - Cassino, Sevel CNH San Mauro FIAT - Mirafiori FIAT - Mirafiori CNH - Jesi Iveco - Brescia Iveco - Brescia CNH Grand Island Iveco - Suzzara Iveco - Suzzara PM QC CNH - Fargo CNH Grand Island EEM/EPM Vizient PD FIAT - Cassino, Sevel FIAT - Mirafiori Iveco - Brescia Iveco - Suzzara Senior Management Benchmarking SEVEL Cassino Suzzara Brescia Mirafiori Auto Mirafiori FPT AM, PM, Minimum Material Handling, Q- Gates, Bulky Items, Golden Zone, Kitting 33

34 WCM AUDIT PROCESS AND RESULTS Audit Process Split between shop floor projects and management presentations 10 technical pillars scored managerial pillars scored 0 5 Total score is out of 100 Yamashina Audit Materazzo Audit Mr. Emo Audit Mr. Risi Audit April 2009 Aug May 2011 May Points 35 Points 41 Points 48 Points WCM Starts Mar Yamashina Audit Oct Points Mr. Pino Audit Dec Points Bronze Audit Oct

35 REWARD AND RECOGNITION Senior Management rewards 4 employees per week with small monetary reward for top kaizens Employees presented their Kaizens and Suggestions to the Senior Management and attendees 35

36 Plant Results 36

37 RESULTS Employee Suggestion Program 14 6,579 Suggestions YTD YTD Target: 9.0/person YTD Actual: 9.0/person Actual Target Projected

38 RESULTS (WCM INVOLVEMENT) ESP Kaizen Pillar Team Project Team ESP Kaizen Pillar Team Project Team ESP Kaizen Pillar Team Project Team Actual Target 100% 80% 60% 40% 20% 0%

39 RESULTS (SAFETY) KPI - Lost Time Injury Frequency LTIFI Frequency YTD 96% Decrease in LTI Frequency since 2008 LTI Target KPI First Aid Injury Frequency 75% Decrease in First Aid Frequency since

40 RESULTS Plant Shipping Customer Service Delivery 40

41 VARIABLE COST PER HOUR Variable CPH

42 COMPARISON TO OTHER PLANTS saskatoon Plant #11 BRONZE LEVEL Certification last week Plant #6 Plant #4 1 st Plant in CNH NA 3 rd Plant CNH WW Plant #9 Plant #3 Plant #2 Plant #8 Plant #1 Plant #7 Plant #

43 WHY WCM IS IMPORTANT TO SASKATOON Considerable improvements to Plant KPI s (Safety, Quality, Productivity, Shipping) Continue to empower employees (ESP, Employee Observation Form, Quick Kaizen, Plant Wide Data Collection) Staying competitive globally requires constant growth and improvement 43

44 QUESTIONS 44