abn amro customer excellence masterclass
TRANSCRIPT
ABN AMRO Customer Excellence Masterclass
The Philips Excellence Continuous Improvement Approach and award winning practices
Royal Philips29th June 2016
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Founded in 1891HQ in
Amsterdam NL
Brand Value > $10BnSales of circa.
€21Bn
Green Product Sales > €11Bn
Circa. 108K Employees
R&D Investment of €1.6Bn
Present in over 100 Countries
About Philips
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We started with understanding the ‘Why’ of Lean
Toyota doubled its market share from 2000 to 2010 and became no. 1 car manufacturer a number of times from 2009 onwards
Honeywell have outperformed the S&P 500 Index by over 100% over the last 10 years using the Honeywell Operating System (HOS) as a major driver of their Business
Porsche, starting in the early 1990s, used a Lean Enterprise Strategy (End-to-End) as a basis of its turnaround strategy and became the most profitable car company in the world
Danaher has grown profitably by almost 20% every year for the past 20 years, using a CI based Business System (Share Price growth of 2,909%)
Moved from a ‘factory based’ CI approach to a Business wide people system: 289% Share Price increase over 10 years (June 2003 – June 2013)
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We focussed on Lean thinking, rather than Lean Tools, and have driven a principle driven transformation
Principle Driven
System Driven
Tool Driven
Embedding principles into culture
Embedding principles into culture
Embedding principles into culture
Structuring tools into a systems context
Using specific methods to create point solutions
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The Continuous Improvement Curriculum is designed to provide our Employees with the appropriate level of competence and behavioural change.
The Central Theme of our Programme is the Certification of 100% of our People in Lean Thinking
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Lean Solutions
(e.g. Healthcare or Lighting installations)
LeanInnovation
(e.g., IT, R&D, UpstreamMarketing, etc.)
Lean Office
(e.g. Markets, Finance, HRCustomer Service, etc.)
LeanSupply
(e.g. Factories, Warehousing,Distribution, Suppliers, etc.)
Nat
ure
of
acti
vity
Value Stream
Pro
ject
Re
pet
itiv
e
Physical Virtual
We have created a Lean Excellence Model to Transform our whole Enterprise
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We are utilising the Fundamental Lean Tools, combined with Lean Thinking, to transform our business
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We are ‘Leading with Lean’ at every level of our Organisation
© Philip Holt
Team: Matt Peters, Efthymios Tsamis, Frank Kouwenberg, Manuela Voorn
June 2016
Operational ExcellenceLetter of Credit process
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Letter of Credit process poorly executed leading to substantial risk
Market Leader Africa: “A very problematic Letters of Credit process for years that has a major impact and poses a significant risk for Accounts Receivables”
25% expired LC
38% late shipments
Lead-time between 3-24 months
Philips get its money too late or never!
Customer receives products too late!
AR under risk per year:
54 M USD
Jan 2015
Slow responsiveness to our customer and sales
Review of LC: 35%<=2d
Backlog of 3 weeks equivalent to 6,5M USD
Customer frustration
&
bad Philips reputation
Escalations: >20%
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Overall Goal & Objectives
‘Turn our Letters of Credit into a secure and reliable financial instrument for the customer as well as Philips. The customer receives the goods on time and Philips is paid on time and for the correct amount in all cases. ‘
>90% Clean Documents
Nr of Escalations: 0%
AR under risk: 54 M USD
Nr of Escalations: >20%
TargetJan 2015
AR under risk: 18 M USD69% Clean Documents
Customer receives goods in time: 71% Customer receives goods in time: 95%
End to endAlignment
between all stakeholders
Holistic approach
Fast: Before 2016
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Value Stream design supported by Standard Work
77 One Point Lessons 22 Work Flow Cycles47 Standard Work
Process Description Future State VSM
Operational Exc
Applied 9 Lean in Office principles by Duggan.
Rapid maturing
> 100 revisions of process description in 1st
month.
Standardization
Steps: owner, activities, process time and lead-time
Flow
52 Steps reduced to 29 steps. Many exceptions captured.
? (L/C Desk)
Aproach Philips bank for confirmation of
quotation
PT=?min%C&A=?%
? (Philips bank)
Make bid
PT=?min%C&A=?%
? (L/C Desk)
Select best bid
PT=?min%C&A=?%
? (CFC OM)
Send SO/Pro-forma and guidelines to
Distributor. Inform RBS.
PT=?min%C&A=?%
? (Customer)
Approach Customers Bank to issue L/C
PT=?min%C&A=?%
? (Customer Bank)
Issue draft-L/C
PT=?min%C&A=?%
? (Customer)
Receive & Communicate draft-L/
C to CFC OM (sometimes Sales)
PT=?min%C&A=?%
? (Customer Bank)
Inform RBS about draft-L/C
PT=?min%C&A=?%
? (CFC OM)
Inform RBS about draft-L/C
PT=?min%C&A=?%
? (RBS)
Coordinate review of draft-L/C
PT=?min%C&A=?%
? (L/C desk)
Review draft-L/C
PT=?min%C&A=?%
? (CFC OM)
Review draft-L/C
PT=?min%C&A=?%
? (K&N)
Review draft-L/C
PT=?min%C&A=?%
? (RBS)
Consolidate review & communicate to CFC
OM
PT=?min%C&A=?%
? (CFC OM)
Contact & Inform Customer
PT=?min%C&A=?%
? (Customer)
Request amendment at Customer Bank
PT=?min%C&A=?%
? (Customer Bank)
Amend final-L/C to confirming Philips
bank
PT=?min%C&A=?%
? (Confirming PhilipsBank)
Contact RBS
PT=?min%C&A=?%
? (RBS)
Check amendments in L/C & share with L/C desk / CFC OM / K&N
PT=?min%C&A=?%
? (CFC OM)
Initiate delivery to customer
PT=?min%C&A=?%
? (K&N)
Prepare shipping and draft documentation. Legalize. Send docs to
RBS
PT=?min%C&A=?%
? (RBS)
Check draft documentation
PT=?min%C&A=?%
? (RBS)
Forward final documentation to
customer bank
PT=?min%C&A=?%
? (Customer Bank)
Check final documentation
PT=?min%C&A=?%
? (Customer Bank)
Release final documentation
PT=?min%C&A=?%
? (Customer)
Clear goods at customs
PT=?min%C&A=?%
? (Customer)
Resolve refused documents by
Customer & Cust bank & RBS / confirming
bank & L/C desk
PT=?min%C&A=?%
? (Sales)
Inform CFC Om and L/C desk about draft-L/C
PT=?min%C&A=?%
? (RBS)
Coordinate review of final-L/C
PT=?min%C&A=?%
? (L/C desk)
Review final-L/C
PT=?min%C&A=?%
? (CFC OM)
Review final-L/C
PT=?min%C&A=?%
? (K&N)
Review final-L/C
PT=?min%C&A=?%
? (RBS)
Consolidate review & communicate to CFC
OM
PT=?min%C&A=?%
? (CFC OM)
Contact & Inform Customer
PT=?min%C&A=?%
? (Customer)
Request amendment at Customer Bank
PT=?min%C&A=?%
? (Customer Bank)
Issue final-L/C and send to confirming
bank
PT=?min%C&A=?%
? (L/C Desk)
Aproach Philips bank for confirmation of
quotation
PT=?min%C&A=?%
? (L/C Desk)
Aproach Philips bank for confirmation of
quotation
PT=?min%C&A=?%
? (Philips bank)
Make bid
PT=?min%C&A=?%
? (L/C Desk)
Select best bid
PT=?min%C&A=?%
? (Philips bank)
Make bid
PT=?min%C&A=?%
? (L/C Desk)
Select best bid
PT=?min%C&A=?%
RBS xls
? (Other Bank)
Check and validate documents & forward
to Customer Bank
PT=?min%C&A=?%
? (Multi functions)
Approve in EST/Sofon
PT=?min%C&A=?%
? (Sales)
Sales Mandate
PT=?min%C&A=?%
? (CFC OM)
Send SO/Pro-forma and guidelines to End
Customer.
PT=?min%C&A=?%
? (Customer Bank)
Payment to be made to Philips
PT=?min%C&A=?%
? (Customer Bank)
Receipt of payment by Philips
PT=?min%C&A=?%
email SAP
? (Sales)
Sales Initiation with customer
PT=?min%C&A=?%
? (Sales)
Perform credit risk assessment
PT=?min%C&A=?%
? (Sales)
Discuss LC terms and conditions
PT=?min%C&A=?%
? (Sales)
Update (master) contracts
PT=?min%C&A=?%
Current StateValue Stream Map
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Implementation of Process Building Blocks
Kanban Tool
Opening Guidelines
Priorities
Train Users Daily Mgt & Reporting Transparency
Standard Work 3C
Monthly Standing Meeting
Leader Standard
Work
Standard Work
Weekly Standing Meeting
TaktWork Flow
CyclesPlanning
Interface Banks
Data migration
Reporting Database
Physical Document
Flow
Quality Feedback
LoopsArchiving
6SSharePointKamishibai Skill MatrixRole
DescriptionsInterface Markets
Quality
Mgt System
Virtual Visual Board
Physical Location
Visual BoardDaily routine Accounts
ReceivablesKaizenDiscipline
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Guaranteed Turn around Time
Applied advanced Lean in Office principlesFIFO lanes and CONWIP
Topsheets
Color coding
Trays & Lanes
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How to get full Transparency?
Kanban Board Kanban Card
Standardized steps
• Standard Work: standardized steps• Kanban Board & Cards• Super simple to use
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Capacity
Managing workload and capacity
• Workload & Backlog visibility• Plan B/C for over and under capacity• Capacity Levelling for fair distribution
Capacity Levelling
Plan B and C
Loading per person
Loading per process step
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Setting and managing priorities
Priorities Section Daily Tracking of Priorities
• Full Pipeline Visibility every morning• Identify priorities that need to be addressed first• Handouts for follow up
Visibility
• Allocate priorities to people• Work Flow Cycles for recurring activities• Daily Pitch Run to monitor progress and to stay on track
Action Kanban
Work Flow
Cycles
Handouts
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Performance Charts
Managing the Performance?
3Cs per column
Performance Section
Root causes
• Full visibility on performance and trends• Root causes analyses and countermeasures via 3C• Identify 1st improvement priorities
435 3C’s82% solved
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How to collaborate with Markets? How to instantly connect with everybody?
Virtual participation
• Virtual Visual Board• Virtual Participation• Standardized collaboration with Markets
Daily status updates for each Market
All reports on the Virtual Visual Board
Accessible to allkey stakeholders
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Aug 2015
From stormy weather to clear sky in 5 months
Feb 2016
Dec 2015
Workload & Backlog
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A revolutionary and robust improvement!
We pulled forward 18 M USD for Philips by
collecting payments earlier
100% Clean Documents
Nr of Escalations: 0%
AR under risk: 54 M USD
Nr of Escalations: >20%
Feb / Apr / May 2016Jan 2015
AR under risk: 0 M USD69% Clean Documents
Customer receives goods in time: 71% Customer receives goods in time: 100%
Final Yield: 0% Final Yield: 50%
Review of LC within 2d: 33%
Average Lead-time: 7months
Review of LC within 1d: 52%
Average Lead-time: 4,9months(Target 4 months)
We made our internal and external customers happy!
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Peter VeltmanGroup Continuous Improvement
& Six Sigma LeaderPhilips
Philip HoltHead of Operational Excellence
Accounting OperationsPhilips
LinkedIn: Philip HoltWebsite: leadingwithlean.com
Twitter: @LeanMaster1LinkedIn: Peter Veltman
Thank you!