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Solutions 2.0 Presentation, November 2009
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Do you have what it takes to change?
Patricia HatemSolutions 2.0 Conference
November 18, 2009
07/16/09
ohnsonDiversey: Strong Position in a Fragmented Industry2008 JD 10K Sales: $3.4B
EMA51.3%
LATAM7.2%
Japan9.0%
APAC7.1%
North America25.1%
Other0.3%
Market Position: #1 or #2 EverywhereShared leadership in EMA #1 in AsiaNarrow lead in LATAM #2 in NA; #1 in Building Care
Selling into 175 countries
10,800 employees Average tenure: 15 years 6,500 in customer-facing roles
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ohnsonDiversey: Wide range of products and services to meet customers’ needs
Services
Equipment Tools
General Cleaners
Degreasers
Sanitizers
Disinfectants
Warewashing
Hand Care
Air Fresheners
Dosing & DispensingScrubber/DriersVacuumsSweepersDisc PolishersFoam Generators
Food and Beverage water use auditing
Food safety procedures, protocols, training and consultation
e-Business solutions
Green cleaning procedures
Application training
Expert witness
Microfiber SystemsMultifunctional
TrolleysCleaning Utensils
and Systems
Finishes
Sealers
Strippers
Fabric Care
Products
Track Treatment
CIP/OPC
Membrane Cleaning
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Goals of this workshop:• Relay what I learned while Championing a Lean
implementation
• Have you think about the same issues within your organization
• Have you document actions for addressing those issues
Though this presentation will focus on my recent experience implementing Lean within a manufacturing facility, these issues are universal. They must be managed before any process improvement will be successful in any work environment.
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JD history with Process Improvement has been a bumpy road, full of starts and stops…
• 2001 – Six Sigma “trial”. Trained 1 Black Belt and 3 Green Belts.
• 2002 – Integration of newly formed JohnsonDiversey takes priority, Six Sigma put on hold.
• 2004 – Lean chosen as primary improvement methodology.
• Q2 2005 – Trained 17 employees (global representation) as Lean Leaders.
• Q3 2005 – company’s performance not on-par with expectations, substantial restructuring plan announced. Lean put on hold, except in Supply Chain. Corporate Lean group disbanded. I moved to plant manager role at our largest volume facility.
• Q1 2006 – 2 Lean Leaders assigned to largest manufacturing facility.
• May 2006 – Begin training 13 additional Supply Chain Lean Leaders
• Present – Lean only active within manufacturing facilities. Kicking off Six Sigma training to select employees to work on a few pilot projects.
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Starting in 2005, we successfully utilized the Lean tools to improve operations at our largest facility:
• 30% OEE improvement
• Unit Fill Rate improvements to 97% to >99%
• Insourced 15% additional volume
• Moved to Pull scheduling, lowering finished good inventory by 20%
Usage of the Lean tools is the easy part. The hard part is all the infrastructure that needs to be in place to enable the changes.
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Key components of successful, sustainable change
• Alignment accomplished through communication and understanding how it will impact the workforce
• The right team driving change
• Clear, visible commitment
• Consistent, constant communication
• Discipline in all processes
• Focus on the biggest problems
• Aligned Reward and Recognition system
07/16/09
Do we have to change, and will it affect me?
Our situation:
• Restructuring communicated, but lack of understanding how it would impact the facility and the workforce
• Lack of alignment with previous reward structureQuestions for you:
• What have you done to communicate the need for change?
• How has the impact to the employee been communicated?
• How does your current reward structure align with improvement needs?
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Aligned goals for everyoneActual
16 2006 Q1 Q2 Q3 Q4Plant or team metric
Speed
OEE - L 263 Signature Players 65 66 66 67 68
OEE - L269 We Know JAC 45 46 48 51 52
Schedule Compliance % Entire Plant 80% 82% 84% 86% 88%
Daily average of A items on backorder Entire Plant NA 1 3 3 1
Quality
Rejected Batches Agitators 13/year 2 2 2 2
RFT Entire Plant 98.5% 98.5% 98.5% 98.6% 98.6%
Cost
Temporary Labor Entire Plant $1,100,00/yr 251 295 201 151
$5 million plan Entire Plant $1,300,000/yr 600 600 650 750
Overtime Entire Plant 577/yr 68 159 116 87
People
Housekeeping/SBV score Individual Team 86.00% 87.00% 88.00% 89.00% 90.00%
OSHA recordables Entire Plant 5/yr 1 or less 1 or less 1 or less 1 or less
PHASED TARGETS 2007
07/16/09
Do we have to change, and will it affect me?
Lessons learned:
• Clear vision constantly communicated
• Utilize visual metrics, but don’t have too many
• Educate all employees on Lean: take them to other sites, share Lean success stories, conduct training. They should not be afraid.
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We win as a team, and we lose as a team
Our situation:
• dysfunctional staff, some without required skill sets
• staff misinterpreted process improvement
Questions for you:
• Have you analyzed the attitude and skills of your staff to ensure they are capable of driving change?
• What do you need to do to get the right skill sets in place? Can the skills be trained, or do you need to hire?
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We win as a team, and we lose as a teamLessons learned:
• If you had to recruit someone for the job, would you recruit the person who you currently have in that position?
• Change is not for the faint of heart. Some people are change agents, and some are maintainers.
• Recommended book: “The Five Dysfunctions of a Team.”
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Words are cheap, show your commitment
See next 3 slides
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My Plant Manager officeWe MUST be role models!
BAD - BEFORE GOOD - AFTER
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To show management commitment, our first 5S efforts were focused in the office supply areas.
Before After
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Our VP of Operations showed his commitment by actively participating in a week-long Kaizen event, focused on our largest
cost savings opportunity.
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Words are cheap, show your commitment
Questions for you:
• What signs has your management group given to show their commitment?
• How has that commitment been communicated to the employees?
Lessons learned:
• Actions speak louder than words
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I don’t understand because nobody every told me..
Our situation:
• PAINFUL meetings with lack of clear objectives (weekly staff, disruptive quarterly, sporadic team)
• lack of staff speaking with one voice “because Pat said so”
• lack of visibility to basic plant status
Questions for you:
• What are your formal communication methods and are they productive?
• Does your management communicate a consistent message?
• Is basic status available through visual metrics?
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Critical information from weekly staff meeting is posted
Level 3 Communication Chart Date:_04/01/09
Attendance: Brad Brian Chris Christa Dave Jeff Maritza Maureen Randy Ryan
1. Safety 4. Planning
Housekeeping Audit - Confirm it has been completed 176,750 cases @ 90% schedule adherenceUTI - Bill of Lading Accuracy = 95%Project Chariot and Project Inlaw are on the horizonSchedule is light over the next two weeksCombine production on Gallon Lines?
2. Quality 5. Processing
No verified customer complaints 0 minutes waiting for productDropped boxes on the palitizer have improved 0 rejected batchesLooking at an audit of our corrugated suppliers 6 waste trucks21 pallets were called back from Big Box 100% first time qualityMidwest Engineering is on-site working with dropped box issue New Tank being installed on 04/06; Water test by 4/18
Discussed Premia - Polymer & Raw changesPan clean - ETA
3. Continuous Improvement 6. Packaging
Review of 267 observation results with Line Lead and Shift Lead 269 - 51% / 50%268 - 59.4% / 47%266 - 45% / 46%267 - 36% / 42%263 - 63% / 67%Training on palletizer (04/02); UTI checking components for 269; Meetingwith quality to review paperwork; Issue with slip sheet quality; Hi-flow taptest with water (TBD); Plant Metrics
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Visual metrics
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I don’t understand because nobody every told me..
Lessons learned:
• Develop regular (e.g. daily team, weekly staff, monthly all-employee), productive meetings with clear purpose, accountabilities, responsibilities, etc.
• Set clear communication expectations for your management team.
• Post relevant information. This is particularly necessary for multi-shift operations.
07/16/09
Since I can come into work late, I’m pretty sure I won’t get in trouble for anything
Our situation:
• worker who was on “double secret probation” ignored rules
• Inconsistent enforcement of rules
Questions for you:
• What are your attendance and safety rules?
• How have they been communicated?
• How are employees held consistently accountable?
07/16/09
Since I can come into work late, I’m pretty sure I won’t get in trouble for anything
Lessons learned:
• Rules must be clearly defined and communicated
• Management staff must work in a united fashion, holding operators accountable consistently. Requires regular communication.
07/16/09
Why can’t you see what needs fixing?Our situation:
• Began working on label storage, not a pain point
• Lean readiness survey clearly indicated Planning was our worst process
Questions for you:
• What method has been used to determine your primary pain points?
• Where are those issues listed on your implementation plan?
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Part of the fix to our biggest problem
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Why can’t you see what needs fixing?
Lessons learned:
• ASK your employees what the biggest problem is, and focus on that.
• Have an impartial 3rd party conduct an assessment. This can be done by other internal resources, it doesn’t have to be expensive.
07/16/09
We need to celebrate our success and have some fun!
Our situation:
• We hadn’t had as many things to celebrate, so we really didn’t know how!
• Lack of a process caused us to miss opportunities to celebrate, or celebrate too late
• Lack of recognition
Questions for you:
• How do you know when you’ve had a good day and a reason to celebrate?
• Is there a clearly laid out reward and recognition system?
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Recognition of the team’s efforts
• Line 263/268 - What we are proud of: – Camera Innovation – EEE is working on this now and
we should have it installed in Q3– Install of the FoxJet OLA – with new rail system.– New corrugated is running on the line.– New in-line / off-line weight scales installed and
working.
07/16/09
We need to celebrate our success and have some fun!
Lessons learned:
• ASK your employees what they’d like
• Recognition is as important as rewards
• Set up the system prior to hitting the improvement goals
• Be consistent and personally involved
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What were those key points?
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AlignmentActual
16 2006 Q1 Q2 Q3 Q4Plant or team metric
Speed
OEE - L 263 Signature Players 65 66 66 67 68
OEE - L269 We Know JAC 45 46 48 51 52
Schedule Compliance % Entire Plant 80% 82% 84% 86% 88%
Daily average of A items on backorder Entire Plant NA 1 3 3 1
Quality
Rejected Batches Agitators 13/year 2 2 2 2
RFT Entire Plant 98.5% 98.5% 98.5% 98.6% 98.6%
Cost
Temporary Labor Entire Plant $1,100,00/yr 251 295 201 151
$5 million plan Entire Plant $1,300,000/yr 600 600 650 750
Overtime Entire Plant 577/yr 68 159 116 87
People
Housekeeping/SBV score Individual Team 86.00% 87.00% 88.00% 89.00% 90.00%
OSHA recordables Entire Plant 5/yr 1 or less 1 or less 1 or less 1 or less
PHASED TARGETS 2007
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The right team
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Clear commitment
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Consistent, constant communication
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Consistent discipline
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Focus on the biggest problems
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Rewards and Recognition• What we are proud of:
– Camera Innovation – EEE is working on this now and we should have it installed in Q3
– Install of the FoxJet OLA – with new rail system.
– New corrugated is running on the line.– New in-line / off-line weight scales
installed and working.
