Nestle Green Belt Program 17 November 2010 Chris Ngwendu Head of Industrial Performance Nestle South Africa
Part 1 Part 2 Part 3 Part 4 Introduction: Nestle Operating The link Capability Nestle in ZAR Model (NOM) with DMAIC Building Main Topics
Geography of Nestlé's 9 Factories in ZAR Babelegi Ice Doornkloof Cream Isando Harrismith Estcourt East London Ndabeni Mossel Bay 11/21/2010 3
Co-Packers 11/21/2010 4
A number of Markets have been piloting new ways for Continuous Improvement... Lean (Waters Canada) TPM/Lean (Dreyers, Alcon) Aufwind (Germany) TPM - Kaizen (Japan) MDWT (PURINA Europe) Future Manufacturing (Nestlé USA) TPM (CPW, Mexico) TPM / Lean (Brazil) MDWT (South Africa, Oceania, Malaysia, Indonesia India, Philippines) TPM: Total Performance Management MDWT: Mission Directed Work Teams... we are now combining the strengths of these programs for Nestlé Continuous Excellence 11/21/2010 5 l
The Nestle Operating Model A common language and a common way of doing things... Nestlé Integrated Management System Quality, Safety, Environment, Standards Leadership Development Coaching and Empowerment Goal Alignment Operational Masterplanning, Performance Measures, Operations Review, Problem Solving Measure, Monitor, Organize LEAN Supply Chain TPM Audits, Self Assessment Tools Consumer Customer Distribution Manufacturing Packaging Raw Material Total Performance Management
Why we are doing this Delight Consumers Deliver Competitive Advantage Excel in Compliance From project driven initiatives to a sustainable, attitude inspired approach...
Nestlé Continuous Excellence is based on "Lean Thinking"... The 7 wastes in the Value Chain: MOTION WAITING INVENTORY WASTE OVER PRODUCTION CONVEYANCE PROCESSING CORRECTION... would you as a Consumer be prepared to pay for this?? 11/21/2010 8
The One Model A common language and a common way of doing things... Nestlé Integrated Management System (NIMS) Quality, Safety, Environment, Standards, Business Excellence... Leadership Development Nestlé Management & Leadership Principles, Business Principles, Nestlé on the Move... Goal Alignment e.g. Measures, Operation reviews & Problem solving... The NCE Foundations... Measure, Monitor, Organize LEAN Supply Chain TPM Audits, Self Assessment Tools... Consumer Customer Distribution Manufacturing Packaging Raw Material Total Performance Management 11/21/2010 9
The scope of the 3 NCE Goal Alignment Foundation Modules is on the management routines for standard work and incremental improvement Operational Master Planning Objectives: Priority Projects: 3 Goal Alignment Foundation Modules: Measures Operation Reviews Problem Solving Standard Work The management routines Improvement The purpose and scope of NCE Foundation modules is on the management of standard work and incremental improvements. Innovation Management of Innovation is typically handled using project management routines and change leadership. 11/21/2010 10
The Goal Alignment Foundation Modules Description 1 Measures Cascade measures from the master planning to the shop floor Ensure people understand the measures relevant to their area Develop people ownership and accountability for their measures 2 Operation Reviews Drive the key measures and maintain control over the process Identify and challenge actions to improve results Escalate results and issues 3 Problem Solving Use the DMAIC improvement cycle (define, measure, analyze, improve and control) as an integrated problem solving methodology. Tools suitable for everyday problem solving and small projects
The Foundation modules will restore/stabilize the performance of our operations Restore - Stabilize Improve Innovate Defects Time 11/21/2010 12
The Nestle Operating Model A common language and a common way of doing things... Nestlé Integrated Management System Quality, Safety, Environment, Standards Leadership Development Coaching and Empowerment Goal Alignment Operational Masterplanning, Performance Measures, Operations Review, Problem Solving Assess Min 70 % Measure, Monitor, Organize LEAN Supply Chain TPM Audits, Self Assessment Tools Consumer Customer Distribution Manufacturing Packaging Raw Material Total Performance Management 11/21/2010 13
Total Performance Management (TPM N ) NCE will use the standard TPM 8 Pillars A LEAN Factory pillar is added The Focused Improvement pillar uses the DMAIC problem solving cycle from Six Sigma TPM N AM PM ET FI EM QM OFFICE SHE LEAN Fact.
The Link between the NCE Foundation Modules and TPM Operational Master Planning Nestlé Operating Model (NOM): TPM Pillars: Measures The TPM N Problem Solving model and tools are aligned with the Foundations Problem Solving Module. 3 Foundation Modules: Operation Reviews Problem solving Mindset Problem Solving Operational Master Planning & 3 Foundation Modules are part of the Goal Alignment dimension.
Building DMAIC Capability Phase I Train a pool of Green Belts Green Belt certification: Master the DMAIC process and tools Be recognized by peers already trained in DMAIC Receive some train-the-trainer instruction Phase II Train Yellow Belts with outside assistance Phase III Train Yellow Belts by ourselves Outside facilitator: Knows how to train Yellow Belts Understands the training approach Self-sufficiency in training: Master the training approach MBB or Consultant Green Belt Yellow Belt
Overall building capability model Sponsor training 2d D M A I C tollgate review 1w Green Belt training project 5d 4-6w 5d 10-12w Certification on-thejob coaching 2h1h 1h 2h Black Belt training 5d 4-6w 5d project on-the-job coaching Certification (optional)
The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. Coaching model «Joint-Coaching» 10-12w Define Measure Analyse Improve Control 3h 3h 2h 2h 2h 2h The assumption is that the coaching will be 14 hours per Green Belt project which will be split as follows: 3 hours for the project set-up and Define phase 3 hours for the Measure phase 2 hours for the Analyze phase 2 hours for the Improve phase 2 hours for the Control phase 2 hours for project presentation, closure and project certification (part of the total certification). Note: In this case other Green Belt can assist at the coaching sessions. The sponsor can be part of the coaching session
Detailed Training and coaching process (I) zone NCE coordinator market IP/OP manager Factory Manager Belt candidates LGO Time no Ask for nominee to FM Capture nominees number of candidat es btw 12 and 17 yes Approve nominees Decide training location & slots Allocate to predefined training slots or contact approved provider Ask for project opportunities to FM Collect list of nominees Collect and agree on potential projects according to pre-defined criteria according to project selection criteria Purchase Minitab licenses You need to give at least one month to the provider to organize the training week 0 week 2 week 2 week 4 FM to sponsor training
Detailed Training and coaching process (II) zone NCE coordinator market IP/OP manager Factory Manager Belt candidates LGO Time Send FM to sponsor training week 6 Assign project to candidates Install Minitab licenses Validate team charter week 7 Send belt to training Run project week 8 week 20 Review progress and tollgates Final presentation and delivery of certification Pass exam Present project week 24 week 26
Competence Alignment with project scope and complexity of causes Scope of Project Complexity of Causes Competence Dedicated Time (Recommended) Focus in Chain High Black Belt Advanced DMAIC 50 100% Focus in Factory Medium Green Belt 30 40% Intermediate DMAIC Focus in Area Medium Yellow Belt Basic 2 DMAIC Focus in Line Low White Belt Basic 1 DMAIC 20 30% 10 20% 11/21/2010 21
Criteria for internal (Nestlé) competence certification Criteria White Belt Yellow Belt Green Belt Black Belt Number of projects completed 1 1 2 3 Evaluation of Knowledge acquired After Training > 70% > 70% > 70% > 70% (Test) Technical Evaluation after project completion (Assessment) Certification + Celebration/Recognition > 70% > 70% > 80% > 80% Certification + Celebration Certification + Celebration Certification + Celebration Certification + Celebration Note 1: To qualify for a competence certification, the projects completed must use the appropriate tools from the certification level Note 2: White Belt will be mainly trained through the NCE foundation modules. Additional Yellow Belt training can be delivered upon request by the same providers or by the certified Green Belt later on.
Key Success Factors Top Management Actively participates and leads the effort Links process improvement with financial measures Identifies, prioritizes, and selects DMAIC projects Determines that portfolio of projects is balanced Ensures that Green Belts are carefully selected Ensures that the finance department is involved in measuring and validating the financial benefits Breaks down existing barriers in the organization Celebrates success
Key Success Factors DMAIC Steering Committee Actively encourages the management team Leads by example Embodies new practices Establishes clear roles, expectations, outcomes, and accountability at all levels Manages/monitors deployment Ensures that Factory Managers and Sponsors are key local messengers Shares and rewards successes Promotes best practices
Key Success Factors Project Selection and Review There is a careful selection of: Projects Project Sponsors Green Belts and Yellow Belts The project scope is well defined and feasible Able to be accomplished in a reasonable time Appropriate for Belt level An effective project review process is employed on a: Plant basis Regional basis Global basis
Key Success Factors Project Execution Green Belts are given adequate time and resources to complete their projects Green Belts will be coached through the DMAIC phases to: Enhance their confidence level and leadership skills Ensure the correct application of concepts and tools Maintain the appropriate pace for project flow Speed the completion of projects Improve project benefits Increase sustainability of improvements
Market-Level Roles Local DMAIC Training Coordinator Conducts presession briefing with instructor(s) Key success factors Background on attendees Understanding of factories Size, products, performance Leadership, reporting structure TPM, quality initiatives Strengths, weaknesses Performance issues and goals Other important information Provides in-course feedback and course alignment Helps set up strategy and logistics for coaching Monitors and reports on: Green Belt candidates Projects selected Project charters completed Where additional support may be required Coaching
Market-Level Roles Factory Managers Lead NCE and FI at factory level Develop deployment plan for factory Allocate resources Select Green Belt candidates Champion loss tree analysis Identify DMAIC improvement project opportunities Prioritize and select projects Oversee project pipeline Implement results Link process improvements with financial measures
Market-Level Roles Sponsor Indentifies DMAIC improvement project opportunities Prioritizes and selects projects Sponsors improvement projects Write team charters Removes barriers Monitors and review projects Keeps Factory Managers and peers informed Ensures that project results are quantified and documented Implements results and follows up on progress Links process improvements with financial measures
Successes and Challenges Successes Green Belts Wave 1 13 out of 17 candidates passed Projects Total Potential savings of R25mio of which: 6 Projects on Waste Reduction 6 Projects on Increasing Speed/Output 1 Project on Compliance Green Belts - Wave 2 18 Candidates Challenges Right Candidates to be trained as GB s Time to do projects ( Selection criteria) Managing expectation DMAIC for everything