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Similar a Engagement_Driven to Sustain Positive Change _ SME kirk 092110
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Engagement_Driven to Sustain Positive Change _ SME kirk 092110
- 1. Engagement: Driven to Sustain Positive Change Kirk Hazen, P.E. Quality and Reliability Manager
- 2. The World
- 3. • Who we are • Definition of Engagement • Culture as a Foundation for Implementation • Commitment at ALL Levels • Method/Tools to Track Performance • Lessons Learned Agenda
- 4. • History and Stats: • Founded in 1952 • 450 PEOPLE in a 24/7 operation • Revenue in excess of $100 million • 40+ finishing processes • One of the largest US Independent Finishing Companies • Quality Certifications: • TS 16949 and ISO9001 certified • ISO14001 certified • Customers: • Harley-Davidson • Pella Corporation • Maytag • Tenneco Automotive • PACCAR • Freightliner Who we are
- 5. In 2010, we have achieved 20% growth by leveraging current processes and developing further capabilities. Company Growth
- 6. • Who we are • Engagement Definition • Culture as a Foundation • Commitment at ALL Levels • Method/Tools to Track Performance • Lessons Learned
- 7. What is Engagement? There are several definitions of engagement, at Lincoln Industries we define engagement in the following terms. 1.A heightened emotional and intellectual connection that a person has for their job, organization, manager, or coworkers that, in turn, influences them to apply additional discretionary effort to their work. 2.The extent to which people commit to something or someone in their organization which determines how hard they work and how long they stay as a result of that commitment. Engagement
- 8. What does that look like in an organization? The proceeding definitions manifest themselves in the following observations: 1.Perform beyond their job title because they WANT to NOT because they HAVE to. 2.Consistently perform at a level exceeding the minimum requirements in effort and impact. 3.Take more responsibility and ownership of organizational performance. 4.Anticipate and adapt to change more fluidly. 5.Speak well of the organization to their friends and family members. Engagement
- 9. • Who we are • Engagement Definition • Culture as a Foundation • Commitment at ALL Levels • Method/Tools to Track Performance • Lessons Learned
- 10. “No one cares how much you know until they know how much you care.” Author Unknown People
- 11. “People making a difference.” People
- 12. “Those who build great companies understand that the ultimate throttle on growth is not markets, or technology, or competition, or products. It is one thing above all others: the ability to get and keep enough of the right people.” Jim Collins, Good to Great People
- 13. • Quarterly One Company - One Voice meeting • Quarterly SHINE Newsletter • Monthly Roundtable meeting • Monthly Profit Sharing Letter • Daily Pre-shift meetings • Continuous Streaming Information on The LINC Photo from one company one voice or roundtable Communication
- 14. • “Go Platinum” – categories for wellness achievement including a platinum invite for 14,000 ft mountain climb • Wellbucks – financial incentive for wellness participation • Weight management • Tobacco cessation • Mayo Clinic newsletter for all people • “Wellness Wednesday” • Gym reimbursements • Consumer driven health care • Tobacco-free health insurance discounts Wellness Program
- 15. • Monthly Champions • Annual Night of Champions • Service recognition • Safety recognition • Environmental recognition • Wellness recognition • Quality recognition • Birthdays and Anniversaries 2004 (25), 2005 (20), 2006 (11), 2007 (11), 2008 (20) Recognition
- 16. • Individual Opinion survey • Departmental survey • Supplier survey • Customer survey – Gallup • Trust survey - Great Places To Work® Cultural Measurements
- 17. • Who we are • Engagement Definition • Culture as a Foundation • Commitment at ALL Levels • Method/Tools to Track Performance • Lessons Learned
- 18. A successful project needs both chickens and pigs. However, given the sacrifice required of being a pig—forswearing other projects and opportunities—they can be difficult to collect. Thus, the construction of a successful project-team must ensure that the project has sufficient "pigs" and that they are empowered to drive the project in return for committing to and taking accountability for it. Commitment
- 19. Beliefs and Drivers The Beliefs and Drivers are paramount to the success of our organization. These values are not just something on the wall, they are discussed and modeled on a daily basis at Lincoln Industries. These core truths provide the “Due North” that we need to keep on track directionally.
- 20. How nimble is your organization to change? Will your team respond quickly to clear expectations? **Patrick Lencioni – 5 Dysfunctions of a Team Driving Change
- 21. • Who we are • Engagement Definition • Culture as a Foundation • Commitment at ALL Levels • Method/Tools to Track Performance • Lessons Learned
- 22. • SAFETY – Our people’s well-being is of the utmost importance – Safe processes are paramount to our business • QUALITY – Robust and repeatable processes will provide quality products consistently • DELIVERY – We must meet our customers needs with the right parts at the right time and in the right amount • PRODUCTIVITY – We must continue to strive to produce a product that meets our customers expectations at the best cost possible Decision Making Hierarchy
- 23. – The creation of value through the elimination of all types of waste. – The value stream. All the activities required to put a finished product in the hands of the customer. – Improving process flow to reduce lead times and inventory. – Producing based on pull instead of push- based scheduling. – Perfection of all processes and tasks Lean Principles
- 24. efective Products verproduction aiting on-utilized resources ransportation nventory otion xtra Processing DD OO WW NN TT II MM EE Value
- 25. Value Stream
- 26. 1. Strive for One – Piece – Flow “Handle each part ONLY once and ONLY handle one part at a time.” 2. Create continuous flow to each process and through each process Flow
- 27. 1. Build based on customer demand Your customer may be external or internal. Work to eliminate overproduction and the assumption of good quality. 2. Replenishment of ONLY products that are required Pull
- 28. 1. Safety • Zero – Injury 2. Quality • Zero – Defects 3. Delivery • 100% On-Time Delivery 4. Productivity • Best Cost Method Perfection
- 29. • Daily Operational Meetings • The operations team meets daily to discuss the prior 24 hours performance and develop countermeasures to issues that were encountered (Safety, Quality, Delivery, Productivity) • Weekly Directional Meetings • The operations team meets weekly to discuss the prior week performance and understand demand and improvement opportunities going into the next week. • Monthly Strategic Meetings • The operations team meets monthly to review the prior months performance and identify priorities for the upcoming month related to improvement opportunities Managing Daily Improvement
- 30. Operations Dashboard Continuous Information Availability = Knowledge = Engagement Managing Daily Improvement
- 31. Pareto Analysis Pareto charts are available with just a click to understand what the driving issues are behind any metric on the dashboard that is not meeting the target. Managing Daily Improvement
- 32. • Who we are • Engagement Definition • Culture as a Foundation • Commitment at ALL Levels • Method/Tools to Track Performance • Lessons Learned
- 33. • It takes a CRISIS to change – What is your crisis? Economic, Changing Regulation, Customer Demand • You must gain the TRUST of your people – What is in it for everyone? Win-Win • Attain COMMITMENT at every level – How does senior leadership demonstrate their commitment? Gemba Walks, Kaizen Events • Set clear EXPECTATIONS – How do people know what they need to do? Breakthrough Deployment, Visual Management • Hold everyone ACCOUNTABLE to what they say they will do – What mechanisms do you have in place to facilitate this accountability? PDCA • We must be able to MEASURE the improvement – What are the metrics that will set the direction and show improvement? SMART • Continually CELEBRATE successes and learn from mistakes – How do you celebrate positive changes that are made? Recognition Lessons Learned
- 34. • 2006 – (6) Kaizen Events – Approx. - $300k Savings Realized • 2007 – (27) Kaizen Events – Approx. - $650k Savings Realized – Over 75 participants in Kaizen Events • 2008 – (33) Kaizen Events – 50% Scrap Reduction – Approx. – $1.7M Savings Realized – Over 150 participants in Kaizen Events – EVERYONE in the company through at least 2 hours of Lean training • 2009 – 30% Scrap Reduction – $1M in Energy Savings • 2010 – 35% Scrap Reduction – 20% Revenue Growth – $1M in Productivity Improvement – Managing for Daily Improvement (MDI) Kickoff – Development of Cost of Poor Quality (COPQ) metric – EVERYONE involved with daily waste identification and improvement implementation Lincoln Industries Lean Journey
- 35. Thank you! Kirk L. Hazen, P.E. Lincoln Industries
Notas del editor
- Good Morning, my name is Kirk Hazen. I work at Lincoln Industries which is located in Lincoln, Nebraska. I would like to take a second to provide you with my background and then I will get into the breadth of the presentation. First of all, I would like to thank the SME committee for putting the conference together and inviting me to be a part of this experience. I am always glad to speak to the experiences of Lincoln Industries regarding the business and our Lean journey. But most of all, I love continuously learning about how others have been successful in implementing lean tools in their organizations. Like I said before, my name is Kirk Hazen, I am a licensed professional mechanical engineer. I graduated with a degree in Agricultural Engineering and I have spent the last 10 years in engineering and continuous improvement roles within organizations that are in the agricultural equipment industry or the metal finishing industry. I have experienced LEAN transformations and understand the value of this transformation and many of the struggles that go with making the leap to change. My position with Lincoln Industries is Quality and Reliability Manager, in this role, I am charged with developing and implementing strategic plans for the organization to continue its LEAN journey and provide direction to leaders in the company regarding LEAN techniques and tools. Today I would like to speak to you about people. People drive each of our businesses and it is the single most important resource that each business has. People will create your success or bring about failure depending upon how your people are engaged.
- In today’s world, there are many negative economic things that are impacting our daily lives. As business owners, we feel the impact in our business to the bottom line. What we may not take the time to realize is that these issues directly affect each of our people’s lives sometimes in a more dramatic fashion than our business. Each household is essentially a business and these economic times have had a tremendous impact on the profitability of MANY households around the world. This news increases the sensitivity of our workforce to change and sometimes can negatively affect the productivity of our workforce.
- During the remainder of the presentation, I will focus on the following areas. Who we are – Lincoln Industries Definition of Engagement – What does it mean? Culture as a Foundation for Implementation – Is the team all rowing in the same direction? Commitment at ALL Levels – This change and method of thinking MUST be driven at EVERY level of your organization (CEO to Floor). Mechanisms/Tools to Track Performance and Provide Guidance – Visual Management to Keep Score Lessons Learned – What we will continue to try and improve
- In a snapshot, Lincoln Industries is a 56 year old company that has 450 people working in their facilities running a 24 hour per day, 7 day per week operation. This past year, we have surpassed the $100 million mark in sales revenue. One of the most fascinating business markers for Lincoln Industries is the fact that we are able to attain 15% annual growth year over year. We are certified with quality and environmental systems and are very cognizant of the environment in which we work and live. Just to give everyone a sneak peak into the customer list that Lincoln Industries serves, we have several BIG name companies that rely on us to provide products and services. Harley-Davidson, Pella Corporation, Maytag, Tenneco Automotive, PACCAR, and Freightliner are some of our larger customers.
- The Lincoln job market is very tight with unemployment number hovering around 4.0%. In a city of 250,000 people, an unemployment number in this range means that it is difficult to find people to fill positions in a growing company, but yet we are finding ways to do that. We are increasing our capabilities as a strategic partner with our customers and working to become our customers strategic partners.
- In a snapshot, Lincoln Industries is a 56 year old company that has 450 people working in their facilities running a 24 hour per day, 7 day per week operation. This past year, we have surpassed the $100 million mark in sales revenue. One of the most fascinating business markers for Lincoln Industries is the fact that we are able to attain 15% annual growth year over year. We are certified with quality and environmental systems and are very cognizant of the environment in which we work and live. Just to give everyone a sneak peak into the customer list that Lincoln Industries serves, we have several BIG name companies that rely on us to provide products and services. Harley-Davidson, Pella Corporation, Maytag, Tenneco Automotive, PACCAR, and Freightliner are some of our larger customers.
- In a snapshot, Lincoln Industries is a 56 year old company that has 450 people working in their facilities running a 24 hour per day, 7 day per week operation. This past year, we have surpassed the $100 million mark in sales revenue. One of the most fascinating business markers for Lincoln Industries is the fact that we are able to attain 15% annual growth year over year. We are certified with quality and environmental systems and are very cognizant of the environment in which we work and live. Just to give everyone a sneak peak into the customer list that Lincoln Industries serves, we have several BIG name companies that rely on us to provide products and services. Harley-Davidson, Pella Corporation, Maytag, Tenneco Automotive, PACCAR, and Freightliner are some of our larger customers.
- As we have come to recognize, the ONLY appreciating asset in our organization is our PEOPLE. We must make sure that we are investing in our people and setting them up for success in their role in the company.
- Pigs and Chickens: A successful project needs both chickens and pigs. However, given the sacrifice required of being a pig—forswearing other projects and opportunities—they can be difficult to collect. Thus, the construction of a successful project-team must ensure that the project has sufficient "pigs" and that they are empowered to drive the project in return for committing to and taking accountability for it.
- Beliefs and Drivers: The Beliefs and Drivers are paramount to the success of our organization. These values are not just something on the wall, they are discussed and modeled on a daily basis at Lincoln Industries. These core truths provide the “Due North” that we need to keep on track directionally.
- Patrick Lencioni – 5 Dysfunctions of a Team
- SAFETY We first MUST ensure that we are able to produce the product in a safe manner because nothing is more important than keeping our people safe. Therefore, if there is a safety concern or a safety incident takes place, we need to focus 100% of our energy on solving that issue prior to moving forward with production. QUALITY After we have ensured that the process to make the product is SAFE and can be repeated safely, then we need to ensure that a quality product can be made each and every time that process is followed. If we have defective products made while utilizing the standard process, we should stop producing and solve the root issue. This will ensure a high level of quality and that is our commitment to our customers. DELIVERY After we have ensured that the process is SAFE and will produce a QUALITY part every time, we now can focus on ensuring that we have the capacity and the systems in place to deliver the product to our customer in the right quantity and at the right time. If we have an issue with capacity and can not deliver on time, we must address this issue before committing to any further production volume. Solving delivery problems is equally important as all other attributes, how valuable is it to be able to make the product safely and with quality in mind, and then NOT be able to deliver to the customer. PRODUCTIVITY Once we have established a process that can be performed safely, produce a quality part each time that the process is followed, and be able to deliver to the customer what they want when they want it, then we can begin to look for a more efficient method of producing the parts. These efficiency improvements are directly related to cost of manufacture for a product. As we make cost improvements in processes, this will lead to higher profitability, greater customer satisfaction, and more competitive pricing from our organization for our customers.
- Jim Womack and Daniel Jones – Lean Thinking
- About 3.5 years ago, this is what the warehouse looked like. This is normal production, the reason that we have this picture on this slide is the fact that it demonstrates and displays each of the 8 wastes. Defective Products – Red tags on the shelves Overproduction – I do not know what else would lead to this situation but overproduction. If we were producing to the customer demand and shipping the product, we would not have this situation. Waiting – The true definition of waiting is the fact that the plating line will be needing the parts on the top shelf, half way down the aisle. In order to get to these parts, the fork lift driver will have to remove all of the product on the floor in front of the shelf, remove the product that was needed, and then put the product on the floor back in place. This sometimes would take up to 2 hours to complete. Non-utilized resources – looking for parts Transportation – Movement of product Inventory – Look at the picture Motion – Extra movement of parts to get to other product Extra Processing – Rework tags on the shelves
- The MCpT is the true TOP LEVEL METRIC of how lean your organization is at any one point in time.
- 2009 Focus on Energy Kaizens