Kmart Business Overview. Why the business needed to change Business structures Strategy The New Look

Transcription

1 Cultural Shift

2 Kmart Business Overview Why the business needed to change Business structures Strategy The New Look

3 The way we were 3

4 Fast Facts 172 Kmart stores in Australia and 15 Kmart stores in New Zealand 25,419 Kmart team members across Australian and New Zealand Distribution Centres, National Office, Store Teams, and Kmart Asia 1969 is when the first Australian Kmart store opened in Burwood, Victoria is when Wesfarmers Ltd became the owners of Kmart 2008 is when Guy Russo traded burgers for the big box and came on board as Kmart Managing Director 2.5 million customers on average are served by Kmart each week 67% of Kmart team members are female 4

5 Organisational Structure Managing Director Guy Russo MD Kmart Tyre & Auto Chief Operating Officer Chief Financial Office General Manager Human Resources Chief Operations Officer General Manager Corporate Affairs & Sustainability General Manager Business Development General Manager Supply Chain 7 5

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7 Kmart Strategy

8 The New Look

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11 Kmart Supply Chain

12 Why it began New Strategic Direction for the Business Urgency for change Opportunities needed to improve Supply Chain overall costs Consolidation of facilities Leveraging and optimising resources

13 Where did it start Business review of Supply Chain Network and configuration Clear Strategic Direction for Supply Chain Team Focus on Cost, Service and Safety Establishment of Cross Functional Project teams

14 What was done well Supported from the top General Manager & National Operations Linked with business strategy Key Performance indicators developed Extensively trained all managers & key influencers Introductory training for all team members Created central repository for information sharing Balanced differences for each site

15 How was it done Supply Chain Senior Team set the overall Business improvement strategy, including performance measures Improvement strategies developed at each site setting clear targets Functional areas developed their improvement strategy Identification of Opportunities for improvement both quick wins and project work

16 Going Visual Centralised board established with consolidated information on Vision, National Improvement Strategy, Site & Functional Strategies, Priority Matrix, Projects, Achievements Lean Information boards set up in one key location Quick wins & Focussed improvement projects recognised when completed Measures & KPIs communicated & visual Standards & Operating procedures documented

17 ACT / ADJUST Achieving Objectives ACT (Std Work / LSW) If not achieving - ADJUST to bring back into plan Business Excellence Operating System Structure PLAN National Improvement Strategy Guiding Principles: Improve Customer Service; Develop our People; Improve Profitability Building internal capability: Training; Participation; Involvement; Coaching Deploying the Improvement Strategy : People; Promotion; Product; Price; Place; Profit; Customer; DC Improvement Strategy A3s: Site Focus DO CHECK Check achieving objectives Deployment of Improvement Strategy Internal capability build Structure to RUN the Business using: Daily/Weekly Management Systems Key areas (People; Promotion; Product; Price; Place; Profit; Customer) Good Visual Controls Problem Solving Quick Wins Disciplined adherence to standards T3 Daily T2 Daily T4 Weekly Nat Steering Group DC Steering Group Department Task Force Eg Sorter Structure to IMPROVE the Business using: Fortnightly Strategy Refresh Management System Good Visual Controls L&MC + Best Practices Loss & Waste Analysis Focused Improvement Projects Disciplined adherence to standards Guiding Principles Structures to Run the Business LSW T1 Daily Shift Based Teams Structures to improve the business SW

18 Improvement Strategy Deployment Develop A3 for each level Strategy L/T Goals S/T Goals National Steering Group Business Case Current State Target State Action Plans Metrics Site Steering Group Examples of Measures OEE Throughput Inventory Operational Expense Best Practice Profiles Business Case Current State Target State Action Plans Implementation FI Teams Examples of Measures Set-up time Scrap Rate Efficiencies Business Case Current State Target State FI Process Action Plans Results PDCA

19 Involvement in Projects Project Leaders were appointed to lead the project team Teams were cross functional and included employees from all levels Reporting on project progress was conducted monthly updating the Supply Chain Business Excellence group Trials and feedback were conducted with buy-in from all parties prior to full roll outs Central Information repository Standard Operating Procedures Pallet control Cluster sortation Transport consolidation Pallet Integrity Pallet Drop Zones Batch Picking Sortation De Bottlenecks Last 50 metres truck to shelf Four new DCs in Four years Picking segmentations Rack reconfigurations Non conveyable processing Safe Work Practice redesign Sortation Lock Out Apparel Decant Scan Consolidation

20 Opportunities & Learnings Alignment with business strategy Clear direction Establishment of project structure Administrative control including meetings and reporting Accountability of workstream leaders Decision Making Development of Standard Operating procedures by working with existing teams Leverage on learnings from each project

21 Opportunities & Learnings cont. Maintaining momentum during peak operational times Communication of outcomes using visual boards Engaging the team on an ongoing basis Feedback cycle Audits cascaded to teams Benchmarking

22 Transition from existing site to new site The Kmart Supply Chain Journey

23 Planning Shared Strategic Direction for the Business Developed understanding for change for all employees Operational team formed part of project Shared information about project Site visits and ongoing engagement

24 Key Areas aspects of engagement Understanding of building/infrastructure functionality At Grade and Recessed docks Container yard and Isoloader Park and Charge and MHE changes Sortation System Team Managers actively participating in set up for each functional area area Re-induction and orientation of all team members over several weeks including site visits weeks including site visits Safety focus with new Committee; re-training on equipment; separation of pedestrians and MHE; separation of pedestrians and MHE;

25 Team Engagement Use of team members for supporting transition to new site Opportunity to be trained on different types of new equipment Retraining on new Materials Handling Equipment 25

26 Lean Steering Committee Establish a committee on move to new sites Developed Charter, Communications plan and Stakeholder plan with Sites Lean Team Completed training on Lean Principles Standardisation of 5S boards across all areas OEE trials for sortation system; 26

27 Cultural Shift Its not quick and you need to allow time for transitions Own the changes and communicate the need Accept support Encourage appropriate behaviours Involve your people Make Decisions and action issues Communicate Go Visual, Go Visual, Go Visual

28 QUESTIONS? 28