Sustaining a Lean Transformation in Complex Server Assembly and Test Organization

Transcription

1 Sustaining a Lean Transformation in Complex Server Assembly Test Organization Nominee: Leadership Team, IBM Integrated Supply Chain Operations, Poughkeepsie, NY ISC Poughkeepsie, Manufacturing Operations

2 Outline of Presentation Problem Statement Burning Platform Vision of Success Path Forward to Business Transformation Overview Integrating Process Excellence Cultural Transformation Lean Deployment Framework Assessment Hoshin Planning SMART Lean Skills 14 Lean principles the Circumplex Lean Tools Techniques employed Implementation Results Success Stories Benefits of the Lean Deployment 2 ISC Poughkeepsie, Manufacturing Operations

3 Background of Domain High-end server assembly manufacturing Fabrication-fulfillment environment Combines build-to-plan with make-to-order operations Continuous quest for decreasing time to market cycle time Components extremely expensive, high inventory carrying costs Extreme dem skews, constant engineering changes, long lead-times Assembly/manufacturing process has high energy requirements e.g.: Cooling water, thermal chambers requirements Short product life cycle new product introduction challenge 3 ISC Poughkeepsie, Manufacturing Operations

4 Approach to a Successful Change Initiative* Compelling Reason for Change ( Why leave where we are? ) OCI Current State Vision ( Where do we want to go? ) Transformational Leadership ( Who will take us there? ) OCI Preferred State Path Forward Transformational Leadership Development Change Plan ( How will we get there? ) Enable advocates for change ( How will we enroll others to go where we want them to go? ) Lean Transformation Roadmap Path Forward Transformation Teams *Reference: Adapted form Dr. Marvin Washington 4 ISC Poughkeepsie, Manufacturing Operations

5 Problem Statement Burning Platform What is our burning platform Why leave where we are? Highly competitive marketplace coupled with the economic downturn in Multiple new products introduced; varying complexity of design Inefficient non-adaptive processes for these products causes delays in prototyping launch Increasing cost to maintain facilities infrastructure, with the constant business pressure to reduce operational costs Customers expectations are increasing for more performance, cost quality Problems observed during design manufacturing were dealt with as they appeared (reactive) versus being proactive Employee morale engagement declining 5 ISC Poughkeepsie, Manufacturing Operations

6 Vision of Success We are an organization of Self-Driven Personally Motivated Employees deeply engaged bought in to Key Lean Initiatives (5S, Kaizen, Gemba, etc) local, everyday Lean Implementation which drives continuous improvement achieves strong business results; which include: Broad Effective Training that reaches the entire Mfg Organization as well as extending into supplemental employees, sub-contractors, Engineering, other Support Groups Public, consistent, timely recognition system that reinforces rewards Lean progress success The plant is formally recognized as the most Lean/Cost effective site in the Supply Chain Restructuring our internal management systems Advanced Manufacturing Science tactics to proliferate LEAN at a working level lower the center of gravity for core skills A Common, Shared Alignment Understing of LEAN Goals Cost Objectives across all Organizations Improved Morale Trust across the Organization 6 ISC Poughkeepsie, Manufacturing Operations

7 Defining the Change Plan ISC Poughkeepsie, Manufacturing Operations

8 The Path Forward Approach to Business Transformation Adaptive Culture People Success Process Process Excellence Learning Business Performance Technology Building Organizational Capabilities for Business Transformation Path Forward Change Paradigm Transformational Leadership Innovation continuous improvement enabled through process excellence high high performing organization culture culture 8 ISC Poughkeepsie, Manufacturing Operations

9 Aligning the Organization to Achieve the Vision Kaplan Norton, 2002 The Path Forward approach works with the senior leadership team to implement a People-centric Balanced Scorecard Customer Value Value Financial Customer Value Internal Internal Thomas J Watson (1947) Business Business Processes Teach your associates to teach themselves Processes Teach your associates to teach themselves in in that that way way you you will will strengthen strengthen the the entire entire organization organization People: Learning & Growth Internal Business Processes 9 ISC Poughkeepsie, Manufacturing Operations

10 Organizational Culture Inventory, OCI Circumplex with a Brief Description of the 12 Styles Perfectionistic Members are expected to avoid making mistakes, work long hours, keep on top of everything 10 Competitive Members are expected to operate in a win-lose framework work against their peers to be noticed 9 Power Members are expected to take charge control others, make decisions autocratically 8 Oppositional Members are expected to gain status influence by being critical constantly challenging one another 7 Styles of Behaviors Required to Fit-in Achievement Members are expected to set challenging but realistic goals solve problems effectively 11 Self-Actualizing Members are expected to gain enjoyment from their work produce high-quality products/services 12 Avoidance Members are expected to shift responsibilities to others avoid being blamed for mistakes Humanistic-encouraging Members are expected to be supportive, constructive, open to influence in dealing with others 1 Affiliative Members are expected to be friendly, open, sensitive to the satisfaction of the work group 2 Approval Members are expected to agree with, gain the approval of, be liked by others 3 Conventional Members are expected to conform, follow the rules, make a good impression 4 Dependent Members are expected to do what they are told clear all decisions with supervisors 5 10 ISC Poughkeepsie, Manufacturing Operations 6

11 Why Focus on Process? 14 Lean Principles* the OCI Circumplex Stardized tasks Stardized tasks Become a learning organization processes: continuous Become a learning organization processes: continuous through relentless reflection improvement employee through relentless reflection improvement employee continuous improvement (kaizen). empowerment. continuous improvement (kaizen). empowerment. Develop exceptional people Build a culture of stopping to Develop exceptional people Build a culture of stopping to teams who follow your fix problems, to get quality teams who follow your fix problems, to get quality company's philosophy. right the first time. company's philosophy. right the first time. Base your management Base your management decisions on a long-term decisions on a long-term philosophy, even at expense of philosophy, even at expense of short-term financial goals. short-term financial goals. Grow leaders who thoroughly Grow leaders who thoroughly underst the work, live the underst the work, live the philosophy, teach others. philosophy, teach others. Respect your extended network of Respect your extended network of partners suppliers by partners suppliers by challenging them helping challenging them helping them improve. them improve. Use visual control so no problems Use visual control so no problems are hidden. are hidden. Make decisions slowly by Make decisions slowly by consensus, thoroughly considering consensus, thoroughly considering all options; implement decisions all options; implement decisions rapidly (nemawashi). rapidly (nemawashi). The need for empowering employees The need for empowering employees to to affect affect their their processes processes is is key key for for a a constructive constructive culture culture Create a continuous Create a continuous process flow to bring process flow to bring problems to the surface. problems to the surface. Use "pull" systems to avoid Use "pull" systems to avoid overproduction. overproduction. Level out the workload (heijunka). Level out the workload (heijunka). Go see for yourself to Go see for yourself to thoroughly underst the thoroughly underst the situation (Genchi Genbutsu). situation (Genchi Genbutsu). Reference: The Toyota Way, Jeffery Liker 11 ISC Poughkeepsie, Manufacturing Operations

12 Our Deployment Model: Engaging People to Transform Processes Critical to Business Transformation Focus Focus on on Continuous Continuous Improvement Improvement Learning Learning Engaged Engaged Employees Employees & Suppliers, Suppliers, Generate Generate Business Business Value Value Fundamental Fundamental Lean Lean Thinking Thinking Seeing Seeing& Eliminating Eliminating Wastes Wastes Starts Starts with with Transformational Transformational Leadership Leadership Engaging Engaging employees employees directly directly contribute contribute to to improving improving constructive constructive styles, styles, reducing reducing passive/aggressive passive/aggressive styles styles Transforming Transforming culture culture generating generating business business value value 12 ISC Poughkeepsie, Manufacturing Operations

13 SMART Lean Assessment Defining the Transformation Plan SMART SMART Lean Lean Assessment Assessment (SLA) (SLA) was was conducted conducted in in conjunction conjunction with with the the OCI OCI to to underst underst the the organization s organization s process process technology technology maturity maturity 13 ISC Poughkeepsie, Manufacturing Operations

14 STAGE 1: Deployment Strategy Readiness for Change The The Burning Burning Platform Platform Balanced Scorecard, Lean Assessment, & Global Competition Organization Vision Vision of of Success Leadership Commitment Leadership Commitment Define Define Success, Success, Success Success Measures, Measures, Barriers Barriers Top Top Actions Actions for for Success Success OCI, Sub-cultures STAGE 2: Skills Development Lean Transformation Plan Lean Transformation Plan Lean Lean Transformation Transformation Skills Skills Development Development Deployment Deployment Transformational Transformational Leadership Leadership Development Development Roadmap Roadmap Preferred OCI STAGE 3: Continuous Learning Bottoms-up Kaizens Bottoms-up Kaizens Gemba & Kaizens are the engine for continuous improvement Continuous Employee Skills Skills Development 14 ISC Poughkeepsie, Manufacturing Operations

15 IBM Path Forward Business Transformation Results ISC HE Server Manufacturing Operations, Poughkeepsie Shoot for the Stars Shoot for 2005 the Stars Assembly Plant of the Year Assembly Plant 2008 of the Year 2008 Progressive Manufacturing Cultural Performance Index - CPI Financial Performance Under Plan Under Plan Exceeded Plan Inventory Management Under Plan Under Plan Exceeded Plan Quality Performance Under Plan Improving Exceeded Plan Lean Process Maturity Score: 2/5 Score: 3.1/5 Score 3.9/5 Leadership CPI Employee Satisfaction 3.62/ / /5.00 Kaizens/# Ideas 0/20 0/80 46/300 # Employees Trained 10 (<3%) 30 (<10%) 220 (55%) An adaptive culture + process excellence consistently produce superior business results 15 ISC Poughkeepsie, Manufacturing Operations

16 Patents Publications 22 Publications at IIE Annual Conferences ( ) One publication won the best of the simulation track 10 Publications at the American Society of Engineering Management Conference ( ) 1 Publication at the IEEE Winter Simulation Conference 5 Patents (filed, pending) Recent Recognition Assembly Magazine Assembly Plant of the Year 2008 Progressive Manufacturing ISC Poughkeepsie, Manufacturing Operations

17 Backup ISC Poughkeepsie, Manufacturing Operations

18 Lean Projects Productivity Delivered Gains Poughkeepsie LEAN Journey Story of Driving Continuous Improvement Cultural Transformation Strategic Innovation 2010 VISION EMPOWERMENT Principle Driven SDWT 2004 Part-Time Team 2005 Part-Time Team 2006 Dedicated Lean Team 2007 Dedicated Lean Team 2008 Dedicated Lean Team 2009 Dedicated Lean Team Oppty Scheduing Analysis Opptys Oppty Analysis $3 Million Cost Savings- Oppty Analysis Client Focus Tour Strategy 5S Plan The Goal $7 Million (Tot) Cost Savings- Oppty Analysis 5S Deployment Green Supply Chain Team $10 Million (Tot) Cost Savings- Oppty Analysis Organization Kaizen Plan Kickoff $11.5Miilon (Tot) Cost Savings Oppty Analysis Lean Certification Programs (G/S/B) Stard Work Innovation Hub GEMBA Deployment Local Innovate Winner Factory Relayout Modeling/Simulation Innovation Council Kickoff Assembly Magazine Plant of the Year WW Smart Lean OCI Measurement OCI Measurement Strategic PLAN for NPI Data Analysis Team (Business Intelligence) OCI Measurement 1 st Line MGR Training Leading Lean Planning Layout of new bldg Poke Yoke Organization MGR LSI EXEC LIs New Bldg OPENING Supplier Relations 18 ISC Poughkeepsie, Manufacturing Operations

19 Foundational Competencies: Lean Certification Levels GOLD GOLD LEVEL LEVEL Pass Pass the the Gold Gold Level Level Certification Certification Examination Examination Lead Lead or or Actively Actively Participate Participate in in 5 5 Lean Lean TACTICAL* TACTICAL* Projects Projects Coach Coach Mentor; Mentor; Conduct Conduct Workshops Workshops or or Kaizen Kaizen Events Events using using 8 8 Step Step Lead Lead or or Actively Actively Participate Participate in in 3 3 STRATEGIC STRATEGIC # # Projects Projects Gold practitioners help to lead the Lean deployment across an organization SILVER SILVER LEVEL LEVEL Pass Pass the the Sliver Sliver Level Level Certification Certification Examination Examination Lead Lead or or Actively Actively Participate Participate in in 3 3 Lean Lean TACTICAL* TACTICAL* Projects Projects Coach Coach Mentor; Mentor; Conduct Conduct Workshops Workshops or or Kaizen Kaizen Events Events using using 8 8 Step Step * - Deployment application of lean principles, concepts methods within a work cell, work group or value stream * - Deployment application of lean principles, concepts methods within a work cell, work group or value stream BRONZE BRONZE LEVEL LEVEL Complete Complete Class Class Pass Pass the the Bronze Bronze Level Level Certification Certification Examination Examination Lead Lead or or Actively Actively Participate Participate in in 1 1 Lean Lean TACTICAL* TACTICAL* Project Project Knowledge Knowledge of of 8 8 Step Step Structured Structured Problem Problem Solving Solving * - Deployment application of lean principles, concepts methods within a work cell, work group or value stream # - Projects that demonstrate the transformation of a business or organization Silver practitioners Lead Lean Improvement Project teams Bronze practitioners lead lean quick win opportunities Kaizens Adapted from SME Lean Certification BOK 19 ISC Poughkeepsie, Manufacturing Operations

20 House of Lean- Concepts Knowledge Elements Lean Vision of Success Continuous Learning Organization Client Satisfaction Financial Excellence Capabilities & Skills Strategic Planning Information & Support Systems Pull Value & Streamline E2E Flow Structured Problem Solving Plan -Do-Check -Act Basic Stability Basic Knowledge (Getting Started) Deployment Leadership & VSM Management Decision Support Systems Pull Systems, Kanban 5S, Visual Management House of Lean Building Blocks QFD 8D Problem Solving & A3 Process Improvement Lean 101 Core Team Training Lean/Agile/LSS Applied Learning POUS Visual Control Board Single Unit Flow Stard Work Process Map, Value Add Analysis Science of Mfg. Web Lectures High Performing Adaptive Culture Transformational Leadership DMAIC & DFSS Hoshin Planning Simulation Modeling Process vs. Functional Layout FMEA Kaizen Events Leadership Book Clubs & Workshops Process Excellence Employee Empowerment Results Feed the Organization s Balanced Score Card Value Value Stream Stream Mapping Mapping 20 ISC Poughkeepsie, Manufacturing Operations

21 Foundational Competencies: Kaizen Training Increased Team Based Decision Making Safe Environment for Employees for Idea Generation High % of Solutions Implemented Employee Empowerment, Build on Ideas of Team Published in 2010 IIE Annual Conference Exposition, Cancun, MX The Role of Kaizen Events in Sustaining a Lean Transformation 21 ISC Poughkeepsie, Manufacturing Operations

22 Foundational Competencies: 5S AMS Cleanliness Campaign Pou ghkeepsie PACC Mission: To utilize Poughkeepsie team ingenuity along with Japanese 5s concepts to implement organization, orderliness, cleanliness for establishing a highly functional, visual, state-of-the-art manufacturing facility. What are the goals expectations? We will succeed in building a world class visual factory set the bar for the future. We will all buy-in to sustaining PACC take personal responsibility for our work areas. We will revitalize our factory in for our new product base. 5S Kaizen Red Tag Area Graveyard Kanban for Shipping Assembly Area Thermal Chambers Parts Transport Carts Take Ownership Eliminate Waste Create Order Visual Factory Sustain & Measure 22 ISC Poughkeepsie, Manufacturing Operations

23 Pull Streamline E2E Flow: Factory Layout Flow Matrix: A one-stop-shop matrix to re-layout a floor, using key factors, such as distances, frequency, transportation costs, resource utilization To To FLOW MATRIX Station 1 Station 2 Station 3 Station 4 Station 5 Station 6 5A 0C 4D 0C 0C Station 1 5A 4C 3B 4C 1A Station 2 0C 4C 5D 0A 4A Station 3 4D 3B 5D 8B 0B Station 4 0C 4C 0A 8B 5A Station 5 Shared Resource Shared Tool/Workstation Both Close shouldn t be 1A/B, 2C R Ease of movement Y OPPORTUNITIES G Far shouldn t be >= 3C R Y Easy--> Green Moderate--> Yellow Hard--> Red G Total From O p e ra tio n 1 O p e ra tio n 2 O p e ra tio n 3 O p e ra tio n 4 O p e ra tio n 5 O p e ra tio n 6 O p e ra tio n 7 O p e ra tio n 8 O p e ra tio n 9 O p e ra tio n 10 Operation 1 5A 0C 0B 0C 0C 0C 0C 0C 0C 0C 0B 0B 0B 2E 2D 4C 0D 0D 4B 0B 0B 2C 1B Operation 2 5A 4C 3B 4C 0B 5B 4C 0C 2C 2C 4B 0B 1B 2E 0D 0C 2D 0D 0B 0B 3A 0C 0D Operation 3 0C 4C 5B 0A 4A 0D 3A 5A 3A 0A 0B 0B 0C 0E 0C 0C 3C 4D 0C 0E 3D 0A 0B Operation 4 0B 3B 5B 8B 0B 1B 0A 0A 4B 0B 0A 0A 3B 0E 0C 0B 0D 0D 0D 0D 3B 0B 0B Operation 5 0C 4C 0A 8B 5A 1A 4A 0B 3B 0B 0B 0B 3C 0E 0C 0C 0D 0D 0D 0E 3C 0C 0B Operation 6 0C 0B 4A 0B 5A 3A 0B 0B 1B 0B 0B 0B 0C 0E 0C 0C 0C 0C 0E 0E 3D 0C 0B Operation 7 0C 5B 0D 1B 1A 3A 0B 0B 0C 0D 0C 0C 1C 0E 0E 0E 0E 0D 0E 0D 3E 0C 0B Operation 8 0C 4C 3A 0A 4A 0B 0B 3A 0A 2A 0B 0B 0B 0E 0B 0C 0C 0C 0D 0E 4C 0B 0B Operation 9 0C 0C 5A 0A 0B 0B 0B 3A 0A 0A 5B 0B 0C 0E 0B 0C 0C 0C 0D 0D 0D 0B 0B Operation 10 0C 2C 3A 4B 3B 1B 0C 0A 0A 4A 0B 0B 0C 1E 0B 0C 0C 0C 0C 0D 1D 0A 0B Operation 11 0C 2C 0A 0B 0B 0B 0D 2A 0A 4A 0B 0B 0C 1E 0B 0B 0C 0C 0D 0D 0D 0B 0B Operation 12 0B 4B 0B 0A 0B 0B 0C 0B 5B 0B 0B 4A 0B 0E 0A 0B 0B 4B 0C 4C 0B 0A 4C Operation 13 0B 0B 0B 0A 0B 0B 0C 0B 0B 0B 0B 4A 4A 0E 0A 0B 0B 0B 0C 0C 0B 0B 0C Operation 14 0B 1B 0C 3B 3C 0C 1C 0B 0C 0C 0C 0B 4A 0E 0B 0A 0B 0B 0C 0C 1B 0B 0C Operation 15 2E 2E 0E 0E 0E 0E 0E 0E 0E 1E 1E 0E 0E 0E 0E 0E 0E 0E 0E 0E 0E 0E 0E Operation 16 2D 0D 0C 0C 0C 0C 0E 0B 0B 0B 0B 0A 0A 0B 0E 2A 0B 0B 0B 0C 0B 0C 0E Operation 17 4C 0C 0C 0B 0C 0C 0E 0C 0C 0C 0B 0B 0B 0A 0E 2A 0B 0B 5A 4B 0B 0C 1D Operation 18 0D 2D 3C 0D 0D 0C 0E 0C 0C 0C 0C 0B 0B 0B 0E 0B 0B 2A 0C 0C 0C 0B 0D Operation 19 0D 0D 4D 0D 0D 0C 0D 0C 0C 0C 0C 4B 0B 0B 0E 0B 0B 2A 0C 0C 0C 0B 0E Operation 20 4B 0B 0C 0D 0D 0E 0E 0D 0D 0C 0D 0C 0C 0C 0E 0B 5A 0C 0C 0A 0E 0D 0E Operation 21 0B 0B 0E 0D 0E 0E 0D 0E 0D 0D 0D 4C 0C 0C 0E 0C 4B 0C 0C 0A 0C 0D 0E Operation 22 0B 3A 3D 3B 3C 3D 3E 4C 0D 1D 0D 0B 0B 1B 0E 0B 0B 0C 0C 0E 0C 0E 0D Operation 23 2C 0C 0A 0B 0C 0C 0C 0B 0B 0A 0B 0A 0B 0B 0E 0C 0C 0B 0B 0D 0D 0E 0E Operation 24 1B 0D 0B 0B 0B 0B 0B 0B 0B 0B 0B 4C 0C 0C 0E 0E 1D 0D 0E 0E 0E 0D 0E AS-IS Opportunities in the Server Assembly Area, 67 Relationships Identified TO-BE Identified Implemented 16 Proximity Improvements Space Savings: 18.3K sqft, Transportation Cost Savings: $120K/yr IT Simplification/Reduction, Cycle Time Savings, WIP Reductions O p e ra tio n 11 O p e ra tio n 12 O p e ra tio n 13 O p e ra tio n 14 O p e ra tio n 15 O p e ra tio n 16 O p e ra tio n 17 O p e ra tio n 18 O p e ra tio n 19 O p e ra tio n 20 O p e ra tio n 21 O p e ra tio n 22 O p e ra tio n 23 O p e ra tio n 24 Station 6 Cost 0C 1A 4A 0B 5A Published in 2008 IIE Annual Conference Exposition, Vancouver, BC A Novel Method to Re-Layout Facilities Using Industrial Engineering Concepts 23 ISC Poughkeepsie, Manufacturing Operations

24 Strategic Planning: 3P Simulation Modeling Integrated Design of Experiments (DoE) Simulation modeling approach for making strategic decisions DoE identifies the key factors that impact decisions Simulation modeling can represent the romness uncertainty Over $50 mil. worth business decisions have been made using modeling Integrating Lean Tools with Modeling Publications: 2008 IIE Annual Conference: Using Simulation Modeling to Establish Kanban Levels in a Server Manufacturing Environment (Won Best Paper in Lean Systems Track) 2008 IIE Annual Conference: Using Design of Experiments Simulation Modeling to Study the Facility Layout for a Server Assembly Process 2008 Winter Simulation Conference: Using Design for Six Sigma Simulation in a Server Manufacturing Process 2010 International Conference on ISO 9000 TQM ICIT Note: In the 2011 IIE Annual Conference, a member of the team will be hosting the Modeling to Support Lean Transformation Session 24 ISC Poughkeepsie, Manufacturing Operations

25 Strategic Planning: Information Systems Decision Support Systems Using Lean Agile Techniques to Eliminate Muda Dem/Constraint Dem/Constraint Supply Supply Reports Reports WW WW Order Order Status Status System System Training Training Within Within Industry Industry (On-dem Training System) (On-dem Training System) Innovation Hub Innovation Hub Forecasts any dem supply constraints to prevent production stoppage Real-time update of orders decision support to address (e-gemba) any fluctuations in order deliveries A one-stop-shop for employee skill development (online training/certification system) System for employees to submit ideas collaborate on improvements Value Stream Mapping Data Gathering Eliminate Waste, Process Redesign Enable Cross-functional Teams, Voice of the Customer LEAN CONCEPTS Stardization/Learning Tools Enable IT Improvements Adapt Technology to Resources Flexibility Adaptability to Changes AGILE CONCEPTS Workflow Information Flow Re-design Stard Stard Work Work Decision Decision Support Support Used Used Parts Parts Inventory Inventory System System (Reverse Logistics) (Reverse Logistics) Resource Resource Deployment Deployment Matrix Matrix (Flexible Workforce) (Flexible Workforce) SMART SMART Warehouse Warehouse Management Management System System Defines a methodology to identify Identifies the optimal part allocation policy for Identifies most appropriate resource for a Defines a new real-time slotting principle areas/processes for improvement using maximizing part life cycle (Greener products task based on skill, quality complexity for warehouses (IIE 2008, Patent Pending) stard work lean methods through reverse logistics) 25 ISC Poughkeepsie, Manufacturing Operations

26 Continuous Improvement: GEMBA Objective: To Improve business efficiency by transforming the factory from current management process to lean visual management process Using communication gemba boards implementing shift to shift crossover management gemba walk discipline Highlights: Implemented in 2010 after 6S is in Sustain Reduced number of status meetings (impact of ~$0.5M a year in lost productivity Reduced time from problem identification to problem resolution Employee empowerment: Eliminates time where employees are waiting for direction Integrated with 5S TAKT Management System 26 ISC Poughkeepsie, Manufacturing Operations

27 Continuous Improvement: 8 Step Structured Problem Solving 8 8 Step Step Structured Structured Problem Problem Solving Solving Methodology Methodology Uses Uses qualitative qualitative process process analysis analysis tools, tools, along along with with the the seven seven quality quality tools tools PLAN Focus Focus on on Quick Quick Wins Wins to to address address problems problems opportunities opportunities 1-2 month projects 1-2 month projects Empowers Empowers employees employees to to identify identify problems problems implement implement containment containment actions actions countermeasures countermeasures Increased Increased collaboration collaboration between between teams teams as as a a result result of of team team based based problem problem solving solving DO CHECK ACT 8. Recognize Success Improves Improves constructive constructive styles styles of of behavior behavior reduces reduces passive/aggressive passive/aggressive styles styles Available Available learning learning resources: resources: Path Path Forward Forward 2 2 day day workshop workshop (face-to-face) (face-to-face) or or virtual virtual delivery delivery Web lectures available for reference Web lectures available for reference Used Used organization organization wide wide for for quick quick major major wins wins Key Key enabler enabler to to GEMBA GEMBA process process 27 ISC Poughkeepsie, Manufacturing Operations

28 Balanced Scorecard of Poughkeepsie ISC Server Organization ( ) Process Excellence Dedicated Process Improvement Team Self Directed Work Teams (2010 strategy) Kaizen Events, PACC Strategic Initiatives SMART Lean WW Collaboration Stard Work on all Processes Modeling Simulation Competency Data Analysis Reporting Competency Over $11.5 mil cost savings through Process Improvements (over $10 mil savings in ) People Growth People-centric initiatives GEMBA, 5S/PACC Lowering Center of Gravity for Decision Making Lean Certifications for Manufacturing 10 Silver Trained (generated ~ $500k in savings) 50+ Bronze Trained (projects under progress) Lean for Services for support functions Innovation through Think-Place Ideas Kaizen Events empowering teams to implement new ideas (>100 employees, >300 ideas) Leading Lean for Managers (LSI s LI s) Client Satisfaction Flagship Site Launching three new products Successful Zero Pends Initiatives Frequent Customer tours Green initiatives Assembly Plant of the Year Award (2008) other recognitions (IP Publications) Financial Excellence Over $ 11.5 mil cost savings through Process Improvements 2005 Shoot for the Stars Award ($1m cost savings) Successful building bring up (cost competitive advantages): The new product family bring-up product performance has been the faster than the predecessor 28 ISC Poughkeepsie, Manufacturing Operations

29 Current Culture 2004 to Culture Performance Index: 181 Culture Performance Index: 313 Culture Performance Index: 369 Key Improvement Areas (from ): Significant Improvement in Constructive Styles of Behavior Substantial Reduction in Aggressive Styles of Behavior Significant Reduction in Passive Styles of Behavior More than Doubled the Culture Performance Index from % increase from ISC Poughkeepsie, Manufacturing Operations

30 Impact of Process Excellence on Improving Culture Over $11.5 mil. Cost Savings Over $11.5 mil. Cost Savings Successful in Opportunity Analysis Successful in Opportunity Analysis Product Launches Self Directed Work Teams Product Launches Self Directed Work Teams Setting the Lean Vision of Process-related Patents Setting the Lean Vision of Process-related Patents Success External Publications Success External Publications Kaizen Events Kaizen Events AMS Core Team AMS Core Team Modeling Simulation Modeling Simulation Data Analysis Team Data Analysis Team Strategic Initiatives Strategic Initiatives Leading Lean for Managers Leading Lean for Managers Self Directed Work Teams Self Directed Work Teams Stard Work Stard Work Kaizen Events Kaizen Events GEMBA, Gemba, 6S 5S GEMBA, Gemba, 6S 5S SMART Lean WW SMART Lean WW Collaboration Collaboration Innovation Council Innovation Council Think Place Ideas Think Place Ideas Gemba, 6S Gemba, 6S Innovation Council Innovation Council ThinkPlace ThinkPlace Kaizen Events Kaizen Events 6S, Gemba 6S, Gemba Kaizen Events Kaizen Events AMS Core Team AMS Core Team Poka-yoke Organization Poka-yoke Organization Gemba, 6S Gemba, 6S LSI/LI for Managers LSI/LI for Managers Innovation Council Innovation Council ThinkPlace, Kaizen Events ThinkPlace, Kaizen Events Cultural Transformation Cultural Transformation Program Program Strategic Initiatives Strategic Initiatives SMART Lean SMART Lean Lean Certifications Lean Certifications Bronze, Silver, Gold 1 1 st Bronze, Silver, Gold Line Manager Leading 1 st Line Manager Leading Lean Lean Action Planning for Lean Action Planning for Lean 30 ISC Poughkeepsie, Manufacturing Operations

31 Sustaining the Gains from Lean Deployment ISC Poughkeepsie, Manufacturing Operations

32 How Do We Sustain Our Success? Employee Engagement Innovation Framework Ideas Ideas in in DB DB Over Over $1M $1M Savings Savings Employee Develops New Skills Competencies Organization Provides a Vehicle that allows employee(s) to overcome business challenges Kaizen Events Scrum Meetings Innovation Council 5S Teams Green Teams Self-directed Improvement Teams Strategic Initiatives Ideas Idea Database Innovation Recognition 32 ISC Poughkeepsie, Manufacturing Operations

33 Publications "The Role of Leadership in Sustaining a Lean Transformation, 2010 Industrial Engineering Research Conference, IIE "The Role of Kaizen Events in Sustaining a Lean Transformation", 2010 Industrial Engineering Research Conference, IIE "A Simulation Approach to Determine Inventory Release Times for a Pull System", 2010 Industrial Engineering Research Conference, IIE "Using Lean Optimization Techniques to Determine Line-Side Stock Kanban Limits", 2010 Industrial Engineering Research Conference, IIE "A Fuzzy Optimization Approach for Product Configuration in Reverse Logistics", 2010 Industrial Engineering Research Conference, IIE "A Used Parts Inventory Monitoring System for Server Reverse Logistics", 2010 Industrial Engineering Research Conference, IIE Critical Factor for Sustainable Kaizen Events People, Process Technology, 2009 American Society for Engineering Management (ASEM) Conference A Simulation-based Framework to Study the Impact of Lean Techniques on Green Supply Chain, 2009 American Society for Engineering Management (ASEM) Conference A Fuzzy Optimization Model for Employee Deployment in Complex Manufacturing Environment, 2009 American Society for Engineering Management (ASEM) Conference Integrating People, Process Technology into Lean Business Transformation, 2009 American Society for Engineering Management (ASEM) Conference Integrating a Structured Problem-Solving Process in a Lean Project Challenges Opportunities, 2009 American Society for Engineering Management (ASEM) Conference A Hybrid Approach of Data Mining Simulation Modeling for Production Planning in a Server Manufacturing Environment, The 14th Annual International Conference on Industrial Engineering Theory, Applications & Practice, A Novel Methodology to Allocate Commodities Re-Layout a Warehouse, 2009 Industrial Engineering Research Conference, IIE Designing Optimizing the Test Operations During New Product Introduction of High-end Server, 2009 Industrial Engineering Research Conference, IIE Using Simulation Design for Six Sigma to Study the Server Assembly Process, 2008 IEEE Winter Simulation Conference Maintaining an Efficient Workforce Through Innovative Resource Deployment Methodologies An e-order Reconciliation Management System in a Server Manufacturing Environment, 2008 American Society for Engineering Management Conference An Integrated Real-time Visual Shop Floor Monitoring System in a Server Manufacturing Facility, The 13th Annual International Conference on Industrial Engineering Theory, Applications & Practice A Novel Approach to Relayout a Facility Using Industrial Engineering Principles, 2007 Industrial Engineering Research Conference, IIE Using Design of Experiments Simulation Modeling to Study the Facility Layout for a Server Assembly Process, 2007 Industrial Engineering Research Conference, IIE A Lean Training Certification Information System for a High-end Server Manufacturing Environment, 2007 Industrial Engineering Research Conference, IIE A Systems Approach for Evaluating Discrete Event Simulation Softwares, 2007 Industrial Engineering Research Conference, IIE An Alternate Configuration Tool for Fabrication Testing in a Server Assembly Environment, 2007 Industrial Engineering Research Conference, IIE 33 ISC Poughkeepsie, Manufacturing Operations

34 Questions? 34 ISC Poughkeepsie, Manufacturing Operations