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Jacques Deschamps keynote (TETRA PAK) — LeanForum 2019 (12/12/2019)

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Jacques Deschamps keynote (TETRA PAK) — LeanForum 2019 (12/12/2019)

  1. 1. Tetra Pak’s way to Enterprise Excellence. “How to build leadership team” JD/2019/12/12 / 1
  2. 2. What makes the difference A comprehensive strategy to mobilize the organization at every level Only WCM! From performance to excellence. Build to last. Synopsis What good leaders do when trying to motivate others to change JD/2019/12/12 / 2
  3. 3. What makes the difference A comprehensive strategy mobilize the organization at every level Only WCM! From performance to excellence. Build to last. Synopsis What good leaders do when trying to motivate others to change JD/2019/12/12 / 3
  4. 4. 1. ”Develop others”: As leaders we are expected to grow and develop our people. Listen and spend time with others 2. “Develop self”: Recognize our limits – to plan right individual development. 3. “Collaborate”: A leader facilitates, she or he should get solutions from others by creating the right environment. 4. “Perform”: Deliver expected results as a Team. 5. “Change”: Promote changes whenever we see the needs, understand them and drive it. 6. “Engage”: Seek opportunity to communicate and discuss our strategy. Be an enabler of successful future. What is expected from us… “Tetra Pak 6 leadership elements” JD/2019/12/12 / 4
  5. 5. 1. Inspiring others. • Working with the individual to set an aspirational goal. • Exploring alternative avenues to reach an objective. • Seeking other’s ideas for the best methods to use going forward. What good leaders do when trying to motivate others to change JD/2019/12/12 / 5
  6. 6. 2. Noticing problems. Lots of management advice focuses on the need for individuals to become better problem solvers; but there is an important step that comes earlier. It is the ability to recognize problems (to see situations where change is needed and to anticipate potential snares, pitfalls and traps in advance). What good leaders do when trying to motivate others to change JD/2019/12/12 / 6
  7. 7. 3. Providing a clear goal. The farmer attempting to plough straight furrows selects a point in the distance and then constantly aims in that direction. Change initiatives work best when everyone’s sight is fixed on the same goal. What good leaders do when trying to motivate others to change JD/2019/12/12 / 7
  8. 8. 4. Challenging standard approaches. Successful change efforts often require leaders to challenge standard approaches and find ways to maneuver around old practices and policies – even sacred cows. What good leaders do when trying to motivate others to change JD/2019/12/12 / 8
  9. 9. 5. Building trust in your judgment. This is both about improving your judgment, and improving others’ perceptions of it. What good leaders do when trying to motivate others to change JD/2019/12/12 / 9
  10. 10. 6. Having courage. Every initiative you begin as a leader, every new hire you make, every change in process you implement, every new product idea you pursue, every reorganization you implement, every speech you deliver, every conversation in which you give difficult feedback to a colleague, and every investment in a new piece of equipment requires courage. The need for courage covers many domains. What good leaders do when trying to motivate others to change JD/2019/12/12 / 10
  11. 11. 7. Making change a top priority. Many change efforts are not successful because they become one of a hundred priorities. To make a change effort successful you need to clear away the competing priorities and shine a spotlight on this one change effort. Leaders who do this well have a daily focus on the change effort, track its progress carefully and encourage others. What good leaders do when trying to motivate others to change JD/2019/12/12 / 11
  12. 12. What is a good leader for you? “The enemy is the problem not the colleague” ØSet high personal objectives ØTransfer knowledge and experience ØBring sense - Method – Guidelines ØProvide grooming and learning opportunity “In summary: be an example” Build confidence and respect among people “Lead by example is not the best way of influencing people, this is the only one” JD/2019/12/12 / 12
  13. 13. Leadership is not • Being nice. Sorry, but nice guys finish last in the change game. It might be easier if all it took to bring about change was to have a warm, positive relationship with others. But that isn’t the case. • Giving others incessant requests, suggestions, and advice. This is commonly called nagging. For most recipients this is highly annoying and only serves to irritate them rather than change them. (This is the approach many tend to adopt first, despite its lack of success.) JD/2019/12/12 / 13
  14. 14. What makes the difference A comprehensive strategy mobilize the organization at every level Only WCM! From performance to excellence. Build to last. Synopsis What good leaders do when trying to motivate others to change JD/2019/12/12 / 14
  15. 15. The company challenges Overall spending, Quality, flexibility and productivity ► Increase commoditization of the base business triggered a rapid growth of competition offering low price at acceptable quality. ► Price pressure will necessitate revision of current business model. ► System Quality – Machine Material Interaction ► Low service level – OT - IF ► High manufacturing costs – TW ECTC JD/2019/12/12 / 15
  16. 16. Our Objectives ► Reduce costs ► Excel in customer service Easy to do business with On time, in full and Flexibility ► Drive innovation 3 Our enablers ► Drive a deep rooted change through WCM - Accomplish JiPm Advanced SpecialAward ► Drive and comply with Corporate Social Responsibility ► Drive indirect cost reduction with Supplier Mgt Our values ► Safety ► Quality ► Engagement 3 3 3 main goals to be taken by the plants We want to be better, faster, cheaper JD/2019/12/12 / 16
  17. 17. Burning Platform Turning challenges to opportunities § We must reduce our production costs § We have to facilitate innovation deployment § We need to improve our service level § Safety first - SAM program § Comply to CSR – sustainability – Sedex § Regain Quality leadership – MMI JD/2019/12/12 / 17
  18. 18. JD/2019/12/12 / 18
  19. 19. In Tetra Pak Rubiera, we have a vision To become the best factory in Western Europe JD/2019/12/12 / 19
  20. 20. Safety first! Driving SaM program Cracking the Full Supply Chain cost structure Improving Supply Chain Service Index Strive for Sustainability Quality first! “Clean the pipe line” Improve EE Coating “85” and Finishing output Increase Pay-load Improve Perfect Delivery Comply to Corporate Social Responsibility Deploy SPC Reduce Extended CTC “9” Eradicate Air freight Write-Off “Perfect Order Concept” Reduce CO2 emission Manage Recycled & Not Recycled waste Driving Innovation Developing an High Performing Organization toward World Class Level: capable employees, role model leaders and fair recognition system WCM Assessment Score OCRwithTSandCustomers WCMAssessmentLogisticPillar Driving with WCM Effective Strategy cascading – Clear and simple Rubiera’s key actions 2015-2019 3 3 3 85.9 Rubiera EE Coating 85% Extended CTC 9 EE coating: 85% Extended CTC: 9 JD/2019/12/12 / 20
  21. 21. Futuro Ambiente Sicurezza Cliente Crescita Leadership Innovazione Responsabilità Sociale Effective Strategy cascading 9 messages on laser guided vehicles JD/2019/12/12 / 21
  22. 22. What makes the difference A comprehensive strategy mobilize the organization at every level Synopsis What good leaders do when trying to motivate others to change Only WCM from performance to excellence. Build to last JD/2019/12/12 / 22
  23. 23. WCM in Tetra Pak Rubiera Our mission: build to last “ We drive a deep rooted change to achieve zero loss by involving all employees to ensure our future through customers’ trust JD/2019/12/12 / 23
  24. 24. What is a World Class Factory? Must be defect-free, fast, flexible, lean, and environment-friendly Defect-free ü high quality outputs, inputs, and processes. It must have both ü Low external failure. Defects undetected that escape the factory. ü Low internal failure. Defects discovered and fixed inside the factory. Note: external defect free is not enough if there are extensive on going rework and repair operations inside. ü Inspection between stations should be nil or minimal. If at any stage or process the organization needs to do 100% inspection, this is an evidence of inadequate quality at the source. Instead, of inspection, extensive fool-proofing devices to prevent defects are in place. Most of incoming inspections are eliminated as the factory partner only with reliable suppliers. ü The machines and processes are made robust against their operator’s inattention and even carelessness. JD/2019/12/12 / 24
  25. 25. Fast ü Short order processing time ü Short manufacturing lead time or turnaround time, for make-to-order. Note: The factory is fast not because of fast machines and workers and high capacity, but because it does less activities than ordinary factories to produce the same things. How to achieve this high speed? ü Eliminating wasteful, unnecessary processes and then streamlining what remain as necessary. Note: through this approach, process cycle times (from procurement to shipping down to the sub- processes that make them up) are constantly examined and cut to the bare bones using world-class benchmarks as a guide. With less inspection and rework activities due to its high quality described earlier, it further cuts its lead time. JD/2019/12/12 / 25 What is a World Class Factory? Must be
  26. 26. Lean ü Using less resources than its conventional competitors in producing products of the same quality and quantity. ü High productivity and efficiency reduce drastically inventories, space, machines, and even required people and suppliers to achieve the production target. ü Embracing market driven or “pull” approach rather than the more conventional forecast/capacity driven “push” concept of production. The pull system ensures that only the needed products and parts are planned and produced at the right time at the right quantity. Note: ordinary factories produce based on capacity or forecast (always wrong), and tend to be cluttered with inventories and other idle resources. Thanks to their short lead times, World Class Factories avoid overproduction and overstocking, without incurring stock-outs. As a consequence, less raw materials, work-in-process (WIP), and finished goods, meaning reduced working capital investment, space and warehouse requirements. JD/2019/12/12 / 26 What is a World Class Factory? Must be
  27. 27. Flexible ü Global market’s demand for more product variety and models imply factories with highly flexible and adaptive manufacturing systems. ü Having the capability to produce high variety products in the short term as the need or market demand for them arises. ü Short set-up time, the amount of time to changeover from one model to another are the keys. Note: in ordinary factories, this could take hours if not days. Long set-up times, to justify and recover their high downtime costs, translate to big production batches of one model, high minimum order quantities, and limited product offerings. JD/2019/12/12 / 27 What is a World Class Factory? Must be a factory for the future, with a future
  28. 28. Environment-friendly ü Operating in a clean and safe environment A WCF produces only “green” products, products designed for the protection and preservation of the environment. ü Namely products are recyclable, repairable, re-manufacturable, re-usable, or biodegradable. Products have been designed with proper disposable in mind at the end of their useful lives. ü Good and thorough housekeeping to keep the place orderly, clutter-free, and less accident-prone. ü Prepared and equipped to effectively deal with external and internal emergency situations, like fire, earthquake, explosion, and accidents. ü A World Class Factory is a conducive place to work in. Its workers and the community are proud of it. It serves as a model corporate citizen in its community. Note: A dirty and dangerous factory, however productive, cannot be considered World Class. JD/2019/12/12 / 28 What is a World Class Factory? Must be“brown processes,” meaning waste and pollution free.
  29. 29. … A collection of programs the factory/company chooses to employ Ø Total Quality Management (TQM) Ø Total Quality Environmental Management (TQEM) Ø Total Productive Maintenance (TPM) Ø ISO 9000, ISO 14000, ISO 18000 Ø Six-Sigma Program Ø Kaizen or continuous improvement Ø Quality Circles Ø Business Process Reengineering Ø 5S-Houskeeping Ø Supply Chain Management Ø Just-in-Time Ø Activity Based Costing JD/2019/12/12 / 29 A World Class Factory is not…
  30. 30. LF/2018-05-15 WCM Development Supply Chain InnovationChain Customers and Consumers Suppliers Source Make Deliver Plan Technology Development Product Development TPM Level 1 Reducing Manufacturing Costs • AOV & CFC deployment per process • TW deployment per process • Loss tree definition TPM Level 2 Reducing Product Costs • Focus on Total Production Costs • Cost Driver identification • Define Target Cost to survive in the market TPM Level 3 Extended SC World Class Business Reducing Supply Chain Costs • Focus on extended Supply Chain Costs • Loss-Cost Matrix for extended Supply Chain Costs • Inventories optimization (J-cost theory) • Define Target Cost to win and stay in the market TPM Excellence Award 2008 TPM Consistency Award 2010 TPM Special Award 2014 TPM Special Advanced Award 2016 TPM World Class Award 2019 Supply Chain Integration Extended SC World Class Business JD/2019/12/12 / 30
  31. 31. 11 Pillars WCM Pillars in TP organization JD/2019/12/12 / 31
  32. 32. Effective Strategy cascading “What does it mean for me?” Effective Structure Skilled People Engaged people Valuable Teamwork WCM principles Four successful elements – PDCA ensuring sustainability P D C A Ensuring sustainable results JD/2019/12/12 / 32
  33. 33. LF/2018-05-15 Deep rooted change of mindset Effective structure WCM team (Office + Pillars) Process Cells Focused Teams (All) Steering Team Focus on specific losses (chronic & sporadic) Seek sporadic losses + Short Term Vision Spread the Strategy; attack chronic losses + Middle Term Vision Develop and drive an effective strategy + Long Term Vision JD/2019/12/12 / 33
  34. 34. Tetra Pak Process Cell organization JD/2019/12/12 / 34
  35. 35. SLITTING & DOCTORING COATING PRINTING PRE - PRESS Factory Targets Pre-press Targets Printing Targets Coating Targets Slitting-Finishing Targets CDI Exp Proc Dry M15 M16 T2 Ink M1 M2 M3 M4M26 Chil Sil M4 Teams Teams Teams Teams Teams Teams Teams TeamsTeams Teams Teams Teams Teams TeamsTeams Teams Results Results Results ResultsResults Results Results Results ResultsResultsResults Results Results Results Results Results WCM Everyone contribution counts JD/2019/12/12 / 35
  36. 36. Pre Production •Design Management 09:00 •Order Handling 09:15 •Planning 09:30 Production •Prepress 09:00 •Printing 09:00 •Coating 09:00 •Slitting 09:00 Post Production •Maintenance 08:45 •Quality 09:15 •Logistic 09:00 •Warehouse 09:00 Production meeting 10:00 30 mins maximum. Everyone standing Last 24 hours events. Regular decision meeting in each area Daily Management System 2003 2010 2011 2012 2013 YTD 2014 TG 2014 TG 2015 TG 2016 a Full SC Cost index vs 2013 unit cost 100,00 96,38 99,70 98,10 97,50 a CTC (€/Kspk) Index vs 2010 100,00 98,95 95,99 95,32 94,44 95,64 94,70 93,94 a Total Waste % 6,57 5,51 5,23 4,84 4,54 3,93 4,08 3,80 3,65 a Process Waste % 4,04 4,31 3,71 3,52 2,89 3,19 3,12 TBD a Dummy rolls used % 90 99 100 100 100 a EE Printing % 56,6 58,2 59,3 59,3 61,1 TBD a EE Slitting % 17,6 19,0 18,5 19,0 TBD TBD a Other material cost* Index vs 2010 100 106 92 100 97,8 101,9 99,9 98,9 a Productivity spk / FTE 1.062 1.114 1.141 1.189 1.206 1.189 TBD TBD a TEE Coating % 52,3 53,5 53,3 51,7 60,7 TBD a EE Laminator M26 % 68,9 71,8 74,5 73,6 80,4 82,1 a Flying Setup % 28,0 55,0 50,0 75,0 100,0 a Climate efficiency Kg / msp 6.882 5.972 5.504 5.214 4.734 5.036 4.885 TBD a Recycled waste reduction Kg / msp 2.146 2.098 1.910 1.688 1.702 1.427 1.550 1.500 TBD a World Class Level Level Start up GL Special GL Special Special JiPm GL spc advc spc advc JiPm a FI Pillar Score % 54,5 60,90 66,40 66,4 TBD TBD History Yearly trend Target COST SCO Cluster Strategy KMI KPI KAI FI Pillar Indicators Unit ENVIRONMENT PEOPLE Consistency Award Different score criteria JD/2019/12/12 / 36
  37. 37. 8 8 10 23 40 101 110 108 112 116 0 20 40 60 80 100 120 140 2010 2011 2012 2013 2014 2015 2016 TG16 TG 17 TG 18 No. No. of Multi-skilled Operators FI - AM - E&T Skilled people 85,2% of shopfloor operators are multiskilled 2018 JD/2019/12/12 / 37
  38. 38. Engaged workforce Celebrating results min 6.8 12.1 17.4 22.7 28 max 12 17.3 22.6 27.9 28.9 36 Teams awarded & 174 colleagues 2018 JD/2019/12/12 / 38
  39. 39. Reward & Recognition System • Recognitions through communication channels – boards, meetings, TV Info • Team presentations in front of StC and Top management • Publishing teams through network -– (f.e. i – cast - Nex Flex set up Team) • Visit to other factories (Tetra Pak or local WCM – FIAT, Carlsberg, Tarket) • Reward at year end – non monetary JD/2019/12/12 / 39
  40. 40. What makes the difference A comprehensive strategy mobilize the organization at every level Synopsis What good leaders do when trying to motivate others to change Only WCM from performance to excellence. Build to last JD/2019/12/12 / 40
  41. 41. TPM - Way to Factory Success Based on: 1. Intelligence 2. Eradication 3. Prevention Basic Principles: • 100% Involvement • Cross functional Teams • Hands-On, Shop Floor Approach • Eradication-Zero Philosophy • Prevention Philosophy • Standard Work (OPLs,SOPs, ..) • Visual Management •People •Processes •Organization Losses Develop JD/2019/12/12 / 41
  42. 42. Key success factors 1. TOP management committment 2. Shop-floor presence – Lead by example 3. Middle Management involvement – from boss to coach 4. Empower people to take decisions and contribute 5. Focus on «MAN» and communication 6. We never lose, either we win or we learn (Resilience)
  43. 43. Hurdles to overcome 1. Firefighting culture 2. See WCM as additional work 3. Middle management mindset 4. Mismatch between employee interest and strategy 5. Tendence to jump to conclusions 6. Cinema perception (form overcome substance) JD/2019/12/12 / 43
  44. 44. Common mistakes 1. Put process or pillar responsibility on one person 2. Focus on method and tools is not the purpose 3. Unclear strategy/vision/direction 4. Rush to results with no solid foundations 5. Set too ambitious scope for teams and pillars 6. Lack of guiding coalition to drive change 7. Beware of the messages conveyed by managers 8. Disregard HR role into change JD/2019/12/12 / 44