DAVID GRAHAMDAVID GRAHAM

Continuous Improvement

Manager

Executive Director

More than 100 Years of Truck More than 100 Years of Truck Building in the Town of LeylandBuilding in the Town of Leyland

1896 Lancashire1896 LancashireSteam Motor CompanySteam Motor Company

UK Truck Industry 1945 UK Truck Industry 1945 OnwardsOnwards

AECAlbionSeddon AtkinsonBMCBedfordBristolCommerDennisDodgeERFFodenFord Guy

InternationalJensenKarrierLeylandMaudslayScammellSentinelShelvoke and DrewryThornycroftTrojanVulcan

Britain’s only Britain’s only remaining remaining Truck MakerTruck Maker

Leyland

Eindhoven

Westerlo

Bayswater

Leyland

DentonMadison

St. Therese

Mexicali

Seattle

Chillicothe Leyland Trucks Leyland Trucks

DAF TrucksDAF Trucks

KenworthKenworth

PeterbiltPeterbilt

Renton

PACCAR World-wide PACCAR World-wide

Foden TrucksFoden Trucks

• Performance and quality improvement Performance and quality improvement stagnatingstagnating

• Change resistance at all levelsChange resistance at all levels

• Competitive pressures increasingCompetitive pressures increasing

• Awareness through best practice Awareness through best practice

• CHANGE was possibleCHANGE was possible

1989: THE BEGINNING1989: THE BEGINNING

RebelsRebels20%20%

Main StaysMain Stays15%15%

High PerformersHigh Performers5%5%

Miserable people/sodsMiserable people/sodsMoaning people/sodsMoaning people/sods

60%60%

Strategy -Business Plan

SystemsImprovement

Unit Improvement

Method Improvement

Daily Performance Monitoring – Action Tracking

PRODUCTION MANAGER

Logistic 20%

Shopfloor day to day problems and communications 40%

Forward Planning 5%

Quality 5%

Industrial Relations

10%

Ind Eng 10%Meetings 15%

Team Enterprise

→Leadership - can we do it? Yes we can!Leadership - can we do it? Yes we can!

‘initiating change’

→ Involvement = Ownership = CommitmentInvolvement = Ownership = Commitment

→Teams – getting people to work together.Teams – getting people to work together.

Transition / ProgrammeFIRST THREE STEPS

1. Convince and educate the Senior Management Team

2. Convince and educate the Middle Management Team

3. Establish a consensus view of workforce needs, priorities and satisfaction levels (change initiation).

Action PlanningTraining Development

Needs Recommendations on

Communications

Employee Systems

Organisation Structures

Customer Focus

Continuous Improvement

Management Style

Teamworking/Empowerment

Development Programme

S

K

I

L

L

S

G

A

P

COMMUNICATION

ClearClear

Open without ridiculeOpen without ridicule

ConsistentConsistent

Not to be guarded and cautiousNot to be guarded and cautious

Significant impact in developing the Significant impact in developing the team enterprise cultureteam enterprise culture

SUCCESSFUL COMMUNICATION

COMMUNICATIONCOMMUNICATION

NETWORKNETWORK

Training & Development Discussions

Meet the Team

Continuous Improvement

Team

Meet the Boss

Weekly TU Meeting

6 Monthly Business

Review Meeting

Team Meetings

Daily Briefings

Weekly Written Brief

QualityTime

TEAMTEAM

WORKINGWORKING

Key Operator Coaching

Self Audit of Mgmt Style

Team Briefs

Small GroupSessions (videos)

Involvement

“Meet the Boss”

Recognition

Key Operator Briefings

Joint Improvement

Groups

Continuous Improvement

TrainingBU ManagerDevelopment

Empowerment

Communication(formal)

BU Development

Every Little Counts

Change Initiation

Programme

Group Meetings

MAINTAININGMAINTAINING TEAMTEAM WORKINGWORKING

KPI ComparisonsKPI Comparisons‘Driving Forces’‘Driving Forces’

KPI 2001 2004 Improvement

Product Quality Index 13.2 6.1 55%

Defects per 100 trucks 700 80 89%

Delivery Reliability 98%/week 99%/day -

Ave. Inventory 23 turns 63 turns 270%

Overhead/truck £1874/truck £1456/truck 22%

Trucks/employee 12.9 16.3 26%

Assembly hours/truck 83 57 31%

Overtime 7% 0.5% 93%

Minor Injuries 885 508 43%

Benchmark ComparisonsBenchmark Comparisons‘Driving Forces’‘Driving Forces’

KPI 1999 Ranking 2004 ytd

Product Quality Index 7th 1st

Defects per 100 trucks 5th 1st

Delivery Reliability 5th 2nd

Inventory Turns 8th 2nd

Off-line WIP 9th 1st

Assembly Efficiency 7th 3rd

Overtime 9th 2nd

CONCLUSIONCONCLUSION

REMEMBER -BE PATIENT,

IT TAKES TIME!

Qualities Sought by a Senior Director from their own line manager.

• A clear vision of where and how they are going

• A high level of focus on the task in hand

• Energy and Enthusiasm

• Open mindedness and approachability

• Humility, willingness to accept personal mistakes

• Ability to delegate, not to micro manage

• Integrity/courage to challenge negative behaviours or attitudes

• Good interpersonal skills, including communication, recognition and listening skills

• A natural change initiator

Qualities in Addition for more Junior Management.

• Ability to coach and mentor

• Patience

• Involving/Engaging