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Lean management in Coloplast
18 May 2006
Gorm Bue Nielsen
2
Agenda
1. Introduction to Coloplast
2. Development of ”abc - a better company”
3. The abc business improvement system
4. Critical success factors
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• Ostomy (bags)
• Continence (leg bags, catheters)
• Wound Care (dressings)
• Skin Care (lotions etc.)
• Breast Care (prosthetics, swimwear etc.)
Products
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• 6000+ employees
• Subsidiaries in 25 countries
• Production in Denmark, Hungary, Germany, USA, Costa Rica, China
Coloplast represented in several countries
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Significant growthsince 1957
Mostly organic, some through acquisition
Coloplast sales development
0
2000
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10000
12000
14000
mD
KK
1990 1995 2000 2005 20120
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10000
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mD
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1990 1995 2000 2005 20120
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mD
KK
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mD
KK
1990 1995 2000 2005 2012
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The lean challenge
- Global coverage - several cultures
- Units with anywhere from 10 to 2000 employees
- Product development, production, sales, home care, staff functions
- Coloplast with high growth and high earnings
- “We are used to success!”
”Lean conversion” is a big challenge in Coloplast
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Agenda
1. Introduction to Coloplast
2. Development of ”abc - a better company”
3. The abc business improvement system
4. Critical success factors
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Purpose of abc in Coloplast
”The purpose of abc is to build an organisation of people
that are able to continuously improve
Coloplast’s business processes
resulting in significant bottom line impact.”
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Moved quickly from ”pilot” to ”rollout”
200620042003 2005
Ostomy projects
Continence projects
Wound Care abc pilot
CP UK abc pilot
Global rollout
Development of abc model
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12 units implemented in 2004-2005
The 12
Ostomy (H, T, E, M)Continence (K, M)Wound Care Breast Care (DE)Skin Care (+Wound)US SterlingHUNCP UKCP ITCP DE, HSCCP FRCorporate staff functions
Nextwave
in2006-2007
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Agenda
1. Introduction to Coloplast
2. Development of ”abc - a better company”
3. The abc business improvement system
4. Critical success factors
12
abc business improvement system
abc approach
& tools
abcAudit
abc management
process
abcorganisation & people
abc Handbook with detailed descriptions
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Set objectives and follow up
Value stream KPI’s - each value streamwith individual but aligned KPI’s.
2-3 KPI’s per value stream.W X Y Z V
Event KPI’s - each event withindividual but aligned KPI’s.
Business unit’s 2 - 3 abc KPI’s: Productivity, lead time and perhaps one more.
...etc.Event 7Event 6Event 5Event 4Event 3Event 2Event 1
BusinessUnitX
abc management
process
Group Management with own abc objectives/incentives
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What key figures / KPI’s do we want to improve?
What value streams should we start with?
Who is going to do this?
How are we going to prepare?
It all begins with your local management team
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Value stream analysis - UK subsidiary
abc approach
& tools
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- 75%Flow time
- 67%Scrap
+ 30%Productivity
x 5Invent. turns
Mål
The value stream analysis and the potential
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Example of ”Rapid improvement event”
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Assessment once/twice a year
Lean is a journey over decades
There is always new things to learn - especially first 5 years
A structured assessment:• Management team (understanding, support, use of abc)• On-the-floor• abc team (understanding, energy)
abcAudits
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Roles and responsibilities
Key roles:
General Manager
Management team
Senior abc Manager
abc Specialists
Team leader / co-team leader
Line managers
Controller
abc Handbook with detailed descriptions
abcorganisation
& people
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The abc spirit
”It is what it is....”
”Why did nobody - see this before?- fix this before?- do it this way before?
Who set things up like that?”
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Agenda
1. Introduction to Coloplast
2. Development of ”abc - a better company”
3. The abc business improvement system
4. Critical success factors
22
Critical for a lean transformation:Lean MUST be a ”MUST-win battle”
1. Top management must drive Lean forward, support not enough• Corporate as well as local directors• Must be must-win battle
2. Set clear targets and follow up • Results, efforts and methods• Align Lean activities with your strategy and key objectives
3. Deploy strong individuals to work full time
4. Find a sensei - someone who has taken the journey before
5. Use corporate-wide standard approach for all units
6. Don’t fire people
7. Maintain pace and rhythm
8. Communicate
