ame 2010 conference - baltimore

Didier Rabino, Plant Manager

Kolleen Schneider, Supply Chain Manager

VS6-05: Lean Management System

at Andersen Corporation

Agenda1. Andersen Corporation

2. Running the Business withTier Management System

3. Improving the Business withA3 Thinking & Policy Deployment

4. Lessons Learned / Q&A

1 - Andersen Corporation

• Industry Leader• 10,000 employees• 14 manufacturing sites

Andersen Corporation

The Andersen Enterprise 2009Manufacturing Locations

Menomonie, WI

Menomonie, WIOne plant, Two products

A-Series: Architectural Product

200 Series: Traditional Product

History of Lean at Andersen

Philosophy behind AMS

1. Customers always come first

2. Continuous improvement is a way of life

3. Our people are our number one resource

4. Everything is grounded back to the floor.

AMS Concepts & Tools

2 - Running the Business with Tier Management System

See as a team Learn as a team Act as a team

Tier Management Structure

Tier 3

Tier 4

Tier 2

Tier 1

Team leadersand associatesSupervisors, TL and support groupManagers anddirect team membersPlant management staff

Supportive Leadership

Tier 1: Stand-up Meeting

Daily team meeting held to provide a status update to the team members and to discuss the previous day’s issues.

Tier 1: Plan vs. Actual Board

Hour by hour tracking of actual production numbers and the immediate notation of any obstacles that impeded reaching the planned output.

Tier 1: Run Chart

The compilation of the daily data for a period of time allowing for a visual reference to one-time issues and reoccurring problems.

Three options:

1. Adjust & experiment again

2. Adopt the change3. Abandon the idea

Three options:

1. Adjust & experiment again

2. Adopt the change3. Abandon the idea

• Experiment – test the change

• Experiment – test the change

• Develop idea• Determine expected

result

• Develop idea• Determine expected

result

• Monitor & Measure• Analyze gaps between

actual & expected

• Monitor & Measure• Analyze gaps between

actual & expected

• Identify the problem• Define current situation• Analyze potential causes

• Identify the problem• Define current situation• Analyze potential causes

Act Plan

Check Do

GRASPTHE SITUATION

Tier 1: Plan-Do-Check-Act

Idea

The CI Board offers the associate a quick and easy way to document ideas to improve their work areas.

Tier 1: The CI Board

Improvement

Tier 1 - Example

PVA Board

CI Board

(PDCA)

Run Chart

Std up

Meeting

Leader

Std Work

Tier 2: Supervisor & Support Team

Standup Meeting

SQDCM Visual Controls

Accountability Board

•Engineering

•Maintenance

•Supply Chain

Tier 1: Leads

•Team Leads

Top 3 Areas of Focus

1.

2.3.

Tier 2: SQDCM Visual Controls

Run Chart Data

Top 3 Issues

Tier 2: Accountability Board

The accountability board is the place where teams meet to report progress. Team members are held accountable for these daily tasks.

Accountability: Task or Project Completion

Tier 3: Value Stream

Standup Meeting

Daily Report Visual Indicators

• Value Stream Manager• Supervisors• Lean Specialist• Safety Specialist

Tier 2: Supervisors

Tier 3: Supply Chain

Tier 2: Supply ChainRepresentatives

Standup Meeting

Agenda:DAILY STATUS1. Customer Service Risks2. Supplier Delivery3. Material Shortages4. Immediate Support NeedsPROJECT STATUS1. Strategy Status

•Shipping/Receiving

•Scheduling

•Procurement

•Supermarket

Daily Metrics

Progress toward Strategy


Tier 3: Engineering, Quality & Maintenance Support

Tier 2: EngineeringRepresentatives

Standup Meeting•Support Manager•Maintenance•Quality•Engineering


Strategic Metrics and Projects

Tier 4: Plant staff

STOPS (3) ACT (Observations from / / ) (2) CHECK (1) PLAN8:20 FPA board Produce conforming products200 Series Air / water test Produce performing productsFixed Windows Feedback loop Provide feedback to SM

Repair run chart / FTT Make product right the first time8:25 Run chart Deliver correct part to the lineA Series Run chart Deliver good parts to the lineFabrication Feedback loop Provide feedback to the suppliers8:30 FPA board Produce conforming productsA Series Feedback loop Provide feedback to SMPaint Repair run chart / FTT Make product right the first time8:35Ship. & Receiv.8:40 FPA board Produce conforming productsA Series Air / water test Produce performing productsAssembly Feedback loop Provide feedback to FAB

Repair run chart / FTT Make product right the first time8:45 FPA board Produce conforming products200 Series Air / water test Produce performing productsWork Center 6 Feedback loop Provide feedback to SM

Repair run chart / FTT Make product right the first time8:50 Run chart Deliver correct part to the lineSupermarket Run chart Deliver good parts to the line

Feedback loop Provide feedback to the suppliers8:55 FPA board Produce conforming products200 Series Air / water test Produce performing productsWork Center 4 Feedback loop Provide feedback to SM

Repair run chart / FTT Make product right the first time9:00 FPA board Produce conforming products200 Series Feedback loop Provide feedback to lineMulls Repair run chart / FTT Make product right the first time

Staff Meeting

Daily Report “Go See” Accountability Board

• Plant Manager• Value Stream Manager• Supply Chain Manager• Engr & Maint. Support Manager• Safety Specialist• Finance Specialist• HR Generalist

Tier 4: “Go See”The Objectives

1. Standards:• Do they exist?• Are they the right ones?• Are they followed?

2. Problem solving:• Active?• Supportive?• Using PDCA thinking?

3. Performance:• Acceptable?• Visually displayed?• Understandable by anybody at a glance?

Tier 4: “Go See”The Process

• Agenda:

• Floor Review:

Monday Tuesday Wednesday Thursday Friday

Safety Quality Delivery Cost Morale

Stops:8:30 A series Fabrication8:40 A series Assembly8:50 Supermarket8:55 200 Series

3 - Improving the Business with A3 Thinking & Policy Deployment

Policy Deployment

P

4249NANAFab. Escape

10.710.520.26FPA

100.0%93.3%86.0%68.5%Perf.

16,93011,1622,2261,911IQ

Quality

GoalActualGoalActual

A-Series P12 YTD200 Series P12 YTD

4249NANAFab. Escape

10.710.520.26FPA

100.0%93.3%86.0%68.5%Perf.

16,93011,1622,2261,911IQ

Quality

GoalActualGoalActual

A-Series P12 YTD200 Series P12 YTD

Reflection of Previous Year

Yearly

Review A3 Strategy for SQDCM

Review Bowling Chart Review Project A3

D

C

A

Monthly

WeeklyMonthly

• Plant management reflection on results

• Plant management reflection on activities

• Strategic direction provided by executives

• Clear direction defined for the plant

Policy DeploymentBefore the beginning of the year

Functional Leaders SAFETY QUALITY DELIVERY COST MORALE

Value Stream Manager

Technical SupportManager

Supply Chain Manager

Deployment LeadersSafety

SpecialistTechnical Support

ManagerSupply Chain

ManagerFinanceSupport

HRGeneralist

• Development of the plant A3 Strategy– Catch ball process

• Development of “SQDCM” Strategies

Before the beginning of the year

Policy Deployment

• Policy Deployment Review

Policy DeploymentWeekly Checks


Safety


Quality


Delivery


Cost


Morale

WEEK 1

WEEK 2

WEEK 3

WEEK 4

WEEK 5

5WEEKCYCLE

1. Activity

2. Results

0

200

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1800

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0.0%

1.0%

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7.0%

Production Actual Production TargetProfit Actual Profit Target

0%

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30%

40%

50%

60%

70%

80%

90%

100%


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Customer Sat Actual Customer Sat TargetOEE Actual OEE Target

Red

Yellow

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%


0

1,000

2,000

3,000

4,000

5,000

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7,000

8,000

9,000

Missed Orders Actual Missed Orders TargetExpedite Costs Actual

Yellow

0

5

10

15

20

25

30

35


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

# Suggestions Actual # Suggestions TargetSavings Actual

Red

Policy DeploymentWeekly Checks

• Strategic Project Review

1. Status Update

2. Results

Meeting Timeline

Plan to get back on track

Plan vs. Actual

Plan Do Check Act

Reflection

• Bowling Chart Review

Policy DeploymentMonthly Checks

Are we delivering the expected business results?

Reflection

Plant Strategy Reflection

Safety Strategy

Reflection

Quality Strategy

Reflection

Delivery Strategy

Reflection

Cost Strategy

Reflection

Morale Strategy

Review Results Review Results Review Results Review Results Review Results

TIER 4 Org Chart

Meetings & Board Guidelines

Four Rules of AMS

SAFETY QUALITY DELIVERY COST

<< AREA NAME>> A3 BOARD

Strategy A3

MORALE

Go See MORALE

OWNER: *******

Go SeeCOST

OWNER: ******

Go See DELIVERY

OWNER ********

Go See QUALITY

OWNER: *******

Go See SAFETY

OWNER: ******

DASH BOARD DASH BOARDDASH BOARDDASH BOARDDASH BOARD

Deployment Leader

Strategy A3 Strategy A3Strategy A3Strategy A3

Deployment Leader Deployment Leader Deployment Leader Deployment LeaderPlant Strategy A3

Putting Everything Together

Project A3 Project A3 Project A3Review Projects Review Projects Review Projects

4 - Lessons Learned / Q&ATier Management System • Supportive Leadership empowers decision making at appropriate level of the organization• Tier 2 teamwork removes functional silos• Tier System is a dynamic process and continues to improve

A3 Thinking and Policy Deployment PDCA process with A3 projects enforces reflection and learning• PDCA process with Policy deployment helps determine project priorities

Overall system provides the linkage between yearly policy deployment to the day to day operations

• Didier [email protected]

• Kolleen [email protected]

Please return your completed Session Survey to the Room Host

VS6-05: Lean Management System

at Andersen Corporation

ame 2010 conference - baltimore

Documents

tier management structure

strategy accountability

plant policy deployment

plant a3 strategy

act reflection

floor review

team act

year policy deployment