in     by Darren Walsh 19-11-2015
0

Results:

  • 12 Point increase in Customer Service
  • 9 Point increase in Return on Sales
  • $7Mn saving thru cost & inventory reduction

Company Profile

A global leader in the design and manufacture of motion and control products for: Industrial; Food; Military; Health Care; Transport (Truck, Rail, Bus, Automotive, and Aerospace) & General Industry.
This was one of the largest divisions within the corporation employing approximately 1100 employees with sales of circa $400Mn. The corporation was renowned for its Lean system, but even with this mature strategy the division was significantly underperforming.

Situation

Operating within a complex centralized/ decentralized management system the division was responsible for the design, sale and manufacture of product from 8 European locations and whilst each of these locations had their own unique products they also had their own unique challenge. Some had no or poor improvement capability, others were resistance to change, some had product issues, management issues, resource issues and most operated within very different cultures. Only 2 of these locations had dedicated Lean/ Improvement Leaders, but there was a need to significantly improve them all.

Approach

The approach taken to create a step change in performance at this key division, was to develop Lean
management routines to actively engage all: front line; plant and division management in improving the
work, developing capability and reinforcing change.

New Lean Management routines deployed, by:

Created the new standards:

  • Gaining agreement from key stakeholders.
  • Alignment of division, plant, value stream and team objectives through policy deployment.
  • Development of new Lean daily management routines, management standard work & layered audits. Also refining roles & responsibilities, performance objectives and capability matrices to include Lean thinking.

Created the desire to change, by:

  • Communication of need to change at both the division and plant level.
  • Communication of the changes and what they mean to each level of the management.
  • Introduced new value stream structure and roles & responsibilities.
  • Developed the desire to succeed by linking new Lean routines with the performance goals at the Value Stream, Plant and Division level.

Off the Job Training for front line Value Stream teams and management, in:

  • How to improve the work using ‘Daily Lean Management’ routines.
  • How to present Lean reviews and an understanding of the key deliverables.
  • Management standard work for how to review a Lean shop floor review.

Developed ‘on the job’ capability by coaching & mentoring front line teams & management:

  • Developed internal improvement capability.
  • Developed capability of plant management to deliver the Lean review.
  • Coached both division & plant management to challenge understanding & maintain performance standards of Lean reviews.

Reinforced new routines, standards and continued to development capability, by:

  • Developing Lean management routines to actively engage and support change.
  • Connected strategic & plant reviews with value stream reviews.

Results:

  • Increased engagement of all front line teams, plant and division management.
  • Developed front line improvement capability throughout 8 plants and 15 value streams teams.
  • Developed Division & Plant Management’s understanding of Lean to be capable of improving the work and developing others to improve the work.

Example of additional business impact:

  • 99% reduction in customer lead time for XX15 Solenoids thru the application of Flow Thinking.
  • 65% productivity increase for XX Regulators with the application of pitch problem solving.
  • 40% productivity increase in on XX Transmission Valves with the use of standard work & pitch mgmt.

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