Employee Engagement Thorugh Lean Initiatives

JOHN F WHITE

VICE PRESIDENT HUMAN RESOURCES &
ORGANIZATIONAL DEVELOPMENT

Employee Engagement through Lean Initiatives

Building Blocks for Leadership Development

March 29, 2012

1

J O H N F . W H I T E

(314) 630-3914  johnfwhite2011@gmail.com 524 Rooster Ridge Court  Defiance, MO 63341

Employee Engagment

1. House of Lean

2



Employee Engagement

2. Implemented Red Flag Safety Program

Empowering the employees in their cells to manage their safe practices.

a. Recordables from 70 to 13

70
70
60
60 56
R
Chicago
e I 50 46 44
41 Franklin Park
c n
40 35 Total Company
o j
r u 27
30 23
d r
17 17
a i 20 14 14 13
b e 10 6 6 67
l s
e 0
1 2 3 4 5 6

Year

3



Employee Engagement

b. LWDIIR (Lost Work Day Ilness and Injury Ratio) from 4.47 to 1.51

Company Actual
L
5 4.47
W
3.85
D
4 3.12
I
I 3
2.05
R 1.5
2

% 1

0
1 2 3 4 5
Year

4



Employee Engagement

c. IIR (Illines and Injury Ratio) from 22.15 to 6.74

Company Actual

25 22.15

20
I
I
R 15
11.69
10.31
8.6
% 10 6.74

5

0
1 2 3 4 5
Year

5



Employee Engagement

3. Annual Employee Survey

a. 36 questions on company culture grouped into 4 categories

Employee Engagement Surveys

This survey (38 total questions)
Scale is 1 to 5, (1 disagree and 5 agree)
Sample
Neither
Agree
Statement Disagree Tend to Tend to Agree
# nor
Disagree Agree
Disagree

My team is willing to give the extra effort required to help 01 02 03 04 05
11 the company succeed.

The company at which I work does an excellent job of 01 02 03 04 05
12 keeping associates informed about matters affecting us.

My supervisor gives me regular feedback on my 01 02 03 04 05
13 performance.

I am encouraged to offer my ideas and suggestions to 01 02 03 04 05
14 make things better.

15 If my suggestions and ideas are not used, I am told why. 01 02 03 04 05

The company at which I work prioritizes quality ahead of 01 02 03 04 05
16 delivery and cost.

The company where I work has changed the way we do 01 02 03 04 05
17 things because we have listened to our customers.

I understand the quality standards that apply to my 01 02 03 04 05
18 position.

6



Employee Engagement

b. Identified areas of opportunity (Lowest Scores) scores.

Some questions identified as areas opportunity

1. I work in a blameless environment
2. I receive recognition and praise for doing good work
3. If I disagree with a management decision on an important matter,
I am comfortable discussing it with higher levels of management

c. Assigned teams to develop improvement plans

1. 4 teams formed (1 hourly and I salaried in each location)
2. Guidelines issued and teams trained by HR
3. Teams established action plans

d. Actions put in place and published to employees

1. Week of 4/29 – HR to facilitate first team meetings to help articulate key issues
2. Week of 5/6 – HR to bring teams together to reach common understanding and consensus of
key issues
3. Week of 5/13 – Teams work together to develop cross-functional action plan
4. 5/17 – Presentation by teams to Senior Staff
5. 5/31 – Action Plans revised and in place
e. Results showed 25% improvement in category from previous year
1. 42% rose to 53% from previous year

7



Lean & Individual Initatives

4. Increased front line kaizen champions to 50 employees

Hourly Kaizen Champions
E
60
m
p 50
l 40
# o
30
y Company
20
e
e 10
s 0
Year 1 Year 2 Year 3 Year 4 Year 5

a. Absentee rate from 2%/mo. To .5%/mo

3.50
Absenteeism
3.00 3.00
P
2.50 2.50
e
r 2.00 2.00 Company
c 1.50
1.30
e 1.00
n
0.50 0.50
t
0.00

Year

8



Lean & Individual Initatives

b. On-time delivery from 56% to 92%

On-Time Delivery
% 100
90
O 80
n 70
- 60
T 50
i Company
40
m
30
e
20
10
0

c. Scrap rate reduction of 50% over 2- year period

60
S Scrap Rates
c 50
r
40
a
p
% 30

R 20 % Scrap Rates
a
10
t
e 0
YR 1 Jan to YR 1 July to YR 2 Jan to YR 2 July to
June Dec June Dec

9



Leadership Development

5. Implemented leadership traits for all managers

a. 360 degree feedback

Score each category from 1 to 10. ( 1 lowest; 10 highest )

Team Member (1)Works as an Effective (2)Gets Results while (3)Demonstrates Our Core TOTAL
Team Player Driving for Continuous Values and Management Style
and Team Builder Improvement, (Ethics, Transparency, Honesty,
OpEx Credibility, Commitment to IC)

Name

Name

Name

Name

Name

Name

b. Individual results reviewed with Functional Leader and HR and coaching established
c. Perform semi-annual review

Manager Name: Review Comments
a. Individualized Training
b. Scope: “Comments provided here”
i. Date Finished :
ii. Date of Semi-Annual Review:

10




6. Succession Plans Developed

a. Included all managers with potential successors and corresponding development plans
VP Engineering

Base Salary: $ xxx,xxx

Yrs of Svs: xx Yrs in Position:

Successor Candidates:

Age: xx Yrs of Svs: xx Yrs in Position: xx Perf Rating: xx

Director of Engineering Director of Design Engineering

Base Salary: $ xx,xxx Base Salary: $ xx,xxx

Yrs of Svs: xx Yrs in Position: xx Perf Rating: xx Yrs of Svs: xx Yrs in Position: xx Perf Rating: xx

Successor Candidates: Successor Candidates:

Yrs of Svs:xx Yrs in Position: xx Perf Rating: xx Ready: xx Yrs of Svs:xx Yrs in Position: xx Perf Rating: xx Ready: xx

Employee Name: Name Plan Initiation Date:

Manager Name: Manager Review Date:

Individual Development Plan
Development Objective Action Steps Target Date
When should each action be
Competency to be acquired or enhanced Actionable steps to develop competency
completed?

Participate in X Kaizen events that will provide exposure to
91/2010
different types of production methods across Crane

Participate in the X project with our procurement team in
October 1, 2009
order to learn material sources and types
PRODUCTION: Set up, operate, monitor, control and
improve manufacturing processes and schedules to Participate in X Kaizen events that will provide exposure to
meet customer requirements. assembly processes, fabrication, electrical and continuus November 1, 2010
flow line processes.

Enroll in a college course on Basic Manufacturing Process
for Assembly Processes, Fabrication Processes, Electrical
Electronics Manufacturing Processes, Continuous Flow/Line December 1, 2010
Balancing Processes, Finishing, Clean Room Processes,
Experiment Design

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b. Identified “Franchise Players”: Leaving would cause risks to different elements of the strategic plan

Employee A

Employee B
Employee C

High Business Risk
The employee’s departure would cause significant disruption to the business. Recovery would take 12-24 months (or
more).
Medium Business Risk
The employee’s departure would cause significant disruption to the business. Recovery would take 6-12 months.
Low Business Risk
The employee’s departure would cause significant disruption to the business. Recovery would take 1-6 months

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c. Identified gaps in Organization

READY
POSITION INCUMBENT TODAY READY IN 1-2 YEARS READY IN 3-5 YEARS

President Vacant

Executive VP

Group OpEx Director

VP, BD Vacant

VP, EMS Solution Vacant

VP, Finance Vacant
Vacant
VP, Human Resources
Vacant
VP, ME Solution Vacant
Vacant
VP, Microwave Solution
Vacant
VP, Operations Vacant
Vacant
VP, Power Solution
Vacant
VP, Supply Chain

13



Learnings to Action

7. Cascading Strategic Plan

a. Identify Organizational gap to achieve

b. Define Initiatives to address gaps (Supply Chain Example)

Correlation to 2008 strategic priorities

Competency #1 #2 #3 #4 Assessment
Leadership l l l l
Negotiations l l l l
Strategic Sourcing Process l l l l
Drive quality corrective action l l l l
Material Replenishment m m l l
2008 Stratgic Priorities Correlation

1.D& I the procurement organization, l
processes and activities to drive NPD Strong
2. D & I an action plan to reduce material
costs and achieve favorable PPI of
$3,000K m Medium
3. Support D & I of value stream
enterprise at Dixie-Narco
4. Support D & I of value stream
enterprise at St. Louis'
Good to Go
Concerned
Gap

14



Learnings to Action

c. Identify strengths, weakness, action items and responsibility for each initiative

Note: Target dates for completion tied to individual assigned to accomplish the required action

2008 Strategic Priorities IC Strengths IC Weaknesses Required Actions
1. Restructure Procurement
D& I the procurement organization. 1.Insufficient resources to effectively support
organization, processes and 2. Assigned, from procurement team, NPD, specifically pertaining to cost
activities to drive NPD specific owners to each NPD project objectives. 1.Add 1 new strategic sourcing leader.

1.Restructured procurement
organization. 1.Lack of support in tactical day to day
D & I an action plan to 2. Developed solid action plans to drive activities require strategic sourcing leaders 1.Add 1 new strategic sourcing leader.
reduce material costs and favorable PPI to become involved and detract from driving 2. Add 2 new supplier quality engineers
achieve favorable PPI of 3. Completed a 3P evemt om Bev Max cost reduction action plans. 3. Upgrade current planning position to
$3,000K to reduce material costs 2. Supplier quality development buyer/planner job function
1. Add 1 new supplier quality engineer
1.Restructured procurement 2. Upgrade current planning position to
Support D & I of value organization. 1. Supplier quality development buyer/planner job function
stream enterprise at Dixie- 2. Procurement team members 2. Insufficient resources to support value 3. Add tactical buyer.
Narco participated in PFEP kaizen event stream linkage. 4. Add Director of Materials
1.Restructured procurement
Support D & I of value organization. 1. Supplier quality development 1. Add 1 new supplier quality engineer
stream enterprise at St. 2. Procurement team members 2. Insufficient resources to support value 2. Upgrade current planning position to
Louis. participated in PFEP kaizen event stream linkage. buyer/planner job function

15



Executive Coaching

8. 360 Degree Reviews/Assessments

a. Define opportunities to improve

10 14 questions grouped
by Results-Team Work-
8 Company Values.

6 Executives did self-
rating and was
Rating 4 compared to peer group
from 1 (in some cases included
to 10 2 customers and
suppliers)
0

b. Define strengths to continue

Comment Section to be filled out by rater
1.
Results………………..

Team Work…………..

Company Values……………

16



Executive Coaching

c. Define projects for development

Action Target
Step/ Date for
Kaizen Owner Development Projects Completion
Events
Develop and Implement three
development programs as
identified in the 360 degree
assessment: individual
communication; floor level
metrics; advanced coaching
1a Executive techniques.
Identify 3 personal coaches and
secure 1 that would work with
1b VP HR executive level employees.
Coach and the Executive
identify targets to improve as
1c VP HR shown in their assessment.

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Employee Engagement Thorugh Lean Initiatives

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