The Continuous Improvement Process (CIP)

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1 The Continuous Improvement Process (CIP)

2 CIP and our goals Process Quality Continuously improving quality to achieve higher customer satisfaction/ loyalty CIP and its origins CIP started out in the 1950 s in Japan How do we design CIP at Hellmann? The four CIP principles lay the founda- the improvement: it should become second nature to every employee with the purpose to raise the quality of tion for delivering the customer order involved in the process, because a product or service. The CIP approach in exactly the requested quality, time standardization prevents a relapse is synonymous to the Japanese Kai- and quantity. into old habits ( standard-wedge ). zen both incorporate the idea of a change for improvement. CIP spread CIP is brought to life by all of us ap- out to all work and economic fields plying these four principles to every- and became a fundamental characte- day work life. The four CIP principles Motivation of our employees ristic trait for an employee- and participation oriented company culture. help us to identify, minimize and even completely eliminate unneces- Increasing motivation and satisfaction of our employees to make sure we achieve customer satisfaction CIP and our vision Making it work better every day sary waste in ways and resources (e.g. work equipment). Each stage of improvement has to be fol- Costs Optimizing costs to establish an economically efficient basis for our logistic offers Delivery reliability Reducing lead times, ways and floor to reduce cycle times is a headnote of our company s DNA and lays the foundation for our company s culture. We want to live continuous improvement nationally lowed by a stage of stabilization. This aims for a standardization of and internationally and implement it fig.: target triangle sustainably. What exactly does CIP at Hellmann mean? We live continuous improvement everyday by...creating added value for our customers, employees and the whole company...constantly looking for hidden improvement potential at our workplace and within our processes....realizing step by step our improvement potentials. fig.: The four CIP principles We want to inspire our customers with CIP at Hellmann! Photo: One of the many CIP workshop teams at Hellmann in Bremen 03

3 The Model Logistics Center (MLC) What are our four CIP principles? FLOW PRINCIPLE Non-stop flow of goods/information from customer to receiver. Ex.: Data communication between customers and Hellmann runs parallel to cargo handling to generate its routing in the unloading dock and to ensure loading without interruption PULL PRINCIPLE The following process determines the previous process. Ex.: Our loading speed determines internal transport and thereby our unloading speed. Factor of Success No. 1: Qualified employees at Hellmann CIP at Hellmann is a tool to bring our headnote Making it work better, every day! from our corporate DNA to life. That is the reason why Klaus Hellmann initiated the implementation of CIP in CIP focuses on each employee from the industrial area as well as the commercial area. For CIP to be applied in everyday work it is necessary that each employee is schooled in CIP s theoretical basics. Motivating employees to act is crucial for the successful implementation of CIP. By developing the so-called Model Logistics Center (MLC) we want to introduce our employees to CIP in a playful manner central way and tool to spread out and ensure for the implementation of our Hellmann-CIP-culture. Our MLC, opened March 4th, 2010, simulates a typical logistics process from Unloading to Loading. CIP goals and CIP principles are taught in a twoday training session. The change from theoretical input to practical simulation makes the MLC unique in consolidating CIP knowledge. The participants simulate the CIP principles and improve processes together from round to round. Dispatching Value added services Unloading Routing How does the MLC work? THE GOAL: 7 participants are supposed to load 80 packages in 8 minutes. DISPATCHING: deal with incoming information relevant for loading ROUTING assign all packages on the right unit VALUE ADDED SERVICES: attach manual to packages TRANSPORT MANAGEMENT: make sure to order enough units for the 80 packages LOADING: Load 80 packages on the expected units Red arrow = flow of information Black arrow = flow of material PRINCIPLE OF HARMONIZATION The customer-oriented process determines optimal use of resources and distribution of working appliances. Ex.: To manage increased workload before holidays, additional employees and vehicles are allowed for. and inspire them to use it in everyday work life. The MLC is embedded in the overall process at Hellmann. It is a Loading NO-ERROR PRINCIPLE/APPROACH Reduction of errors and implementation of standards lead to stability and improvement of all processes. Ex.: As a matter of principle, every Hellmann employee should avoid and eliminate errors. Transport Management The new video for the MLC can be found at: Photo: Participants in the MLC 04

4 MLC learning targets»it was an impressive experience to gain an enormous increase in productivity within two days due to minimal changes. The most exciting part was driving this approach forward with the help of the interaction between colleagues from several departments and branches. Thus every participant was able to bring in ideas and the group established the optimal solution for an improved workflow.«assuming responsibility Participants realize quickly that everyone is responsible for success. Everybody has to assume their responsibility and support the overall process. Participants feel highly valued when asked: YOU are the expert in your area which possible improvements do YOU see? From affected people to acting people Changes have to be actively undertaken in order for the participants to reach their ambitious goal. The two MLC trainers make sure that the CIP principles are applied and every idea is taken into consideration. Mistakes are appreciated The participants see that keeping silent about mistakes prevents success. Only when errors are named and spoken about, improvement can thrive and we are one step closer to the No-Error Approach. The MLC trainers moderate the discussion without insisting on a specific solution. From strangers to a team First successes make the participants grow closer. Already after the first round an atmosphere full of excitement calls all of the trainers abilities to direct the participants enthusiasm to structured solutions. Each round s evaluation is eagerly awaited and each improvement is greeted with a round of applause. Connecting across branches Because of Hellmann s decentralized organization, employees and manager from different branches come together in the MLC. All participants benefit from the different points of view shared in this unique opportunity of coming together. Experiencing Hellmann from another perspective As an additional benefit, prejudices and hierarchies are broken down: White-collar workers roll up their sleeves and can sweat. Employees from the industrial area have ideas which can prove crucial for success. Additionally, our commercial employees and team leaders are sensitized for the industrial employees difficulties at work. Working for improvements together with customers By using the MLC, we are able to demonstrate our ideas of cooperative partnership to our customers. It helps us establish a common basis where we are able to openly analyze our processes and locate improvement potential and to deepen our relationship. Are you ready to get inspired by CIP? We are looking forward to seeing you in our MLC! Our experienced trainers will lead you through the two days and support you with their expert knowledge. Please feel free to contact Tina Hörner: Tina Hörner Tel.: tina.hoerner@de.hellmann.net Employees can be inspired from the CIP! 07

5 THINKING AHEAD MOVING FORWARD Hellmann Worldwide Logistics, the global logistics network, operates in 443 branches in 157 countries and employs in excess of 19,300 dedicated people to serve our customers worldwide.