employee engagement thorugh lean initiatives

1

JOHN F WHITE

VICE PRESIDENT HUMAN RESOURCES &

ORGANIZATIONAL DEVELOPMENT

Employee Engagement through Lean Initiatives

Building Blocks for Leadership Development

March 29, 2012

2

J O H N F . W H I T E

(314) 630-3914 [email protected] 524 Rooster Ridge Court Defiance, MO 63341

Employee Engagment

1. House of Lean

3



Employee Engagement

2. Implemented Red Flag Safety Program

Empowering the employees in their cells to manage their safe practices.

a. Recordables from 70 to 13

0

10

20

30

40

50

60

70

1 2 3 4 5 6

56

46

35

27

17

6

14 14

6

17

6 7

70

60

41 44

23

13

R

e

c

o

r

d

a

b

l

e

I

n

j

u

r

i

e

s

Year

Chicago

Franklin Park

Total Company

4



Employee Engagement

b. LWDIIR (Lost Work Day Ilness and Injury Ratio) from 4.47 to 1.51

0

1

2

3

4

5

1 2 3 4 5

4.47

3.85

3.12

2.05 1.5

L

W

D

I

I

R

%

Year

Company Actual

5



Employee Engagement

c. IIR (Illines and Injury Ratio) from 22.15 to 6.74

0

5

10

15

20

25

1 2 3 4 5

22.15

10.31 8.6

11.69

6.74

I

I

R

%

Year

Company Actual

6



Employee Engagement

3. Annual Employee Survey

a. 36 questions on company culture grouped into 4 categories

Employee Engagement Surveys

This survey (38 total questions) Scale is 1 to 5, (1 disagree and 5 agree)

Sample

#

Statement

Disagree

Tend to Disagree

Neither Agree

nor Disagree

Tend to Agree

Agree

11 My team is willing to give the extra effort required to help the company succeed.

01 02 03 04 05

12 The company at which I work does an excellent job of keeping associates informed about matters affecting us.

01 02 03 04 05

13 My supervisor gives me regular feedback on my performance.

01 02 03 04 05

14 I am encouraged to offer my ideas and suggestions to make things better.

01 02 03 04 05

15 If my suggestions and ideas are not used, I am told why. 01 02 03 04 05

16 The company at which I work prioritizes quality ahead of delivery and cost.

01 02 03 04 05

17 The company where I work has changed the way we do things because we have listened to our customers.

01 02 03 04 05

18 I understand the quality standards that apply to my position.

01 02 03 04 05

7



Employee Engagement

b. Identified areas of opportunity (Lowest Scores) scores.

c. Assigned teams to develop improvement plans

1. 4 teams formed (1 hourly and I salaried in each location) 2. Guidelines issued and teams trained by HR 3. Teams established action plans

d. Actions put in place and published to employees

e. Results showed 25% improvement in category from previous year 1. 42% rose to 53% from previous year

Some questions identified as areas opportunity

1. I work in a blameless environment 2. I receive recognition and praise for doing good work

3. If I disagree with a management decision on an important matter, I am comfortable discussing it with higher levels of management

1. Week of 4/29 – HR to facilitate first team meetings to help articulate key issues 2. Week of 5/6 – HR to bring teams together to reach common understanding and consensus of

key issues 3. Week of 5/13 – Teams work together to develop cross-functional action plan 4. 5/17 – Presentation by teams to Senior Staff 5. 5/31 – Action Plans revised and in place

8



Lean & Individual Initatives

4. Increased front line kaizen champions to 50 employees

a. Absentee rate from 2%/mo. To .5%/mo

0

10

20

30

40

50

60

Year 1 Year 2 Year 3 Year 4 Year 5

#

E

m

p

l

o

y

e

e

s

Hourly Kaizen Champions

Company

3.00

2.50

2.00

1.30

0.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50


P

e

r

c

e

n

t

Year

Absenteeism

Company

9



Lean & Individual Initatives

b. On-time delivery from 56% to 92%

c. Scrap rate reduction of 50% over 2- year period

0

10

20

30

40

50

60

70

80

90

100


%

O

n

-

T

i

m

e

On-Time Delivery

Company

0

10

20

30

40

50

60

YR 1 Jan toJune

YR 1 July toDec

YR 2 Jan toJune

YR 2 July toDec

S

c

r

a

p

R

a

t

e

%

Scrap Rates

% Scrap Rates

10



Leadership Development

5. Implemented leadership traits for all managers

a. 360 degree feedback

Score each category from 1 to 10. ( 1 lowest; 10 highest )

Team Member (1)Works as an Effective Team Player

and Team Builder

(2)Gets Results while Driving for Continuous

Improvement, OpEx

(3)Demonstrates Our Core Values and Management Style

(Ethics, Transparency, Honesty, Credibility, Commitment to IC)

TOTAL

Name

Name

Name

Name

Name

Name

b. Individual results reviewed with Functional Leader and HR and coaching established c. Perform semi-annual review

Manager Name: Review Comments

a. Individualized Training b. Scope:

i. Date Finished : ii. Date of Semi-Annual Review:

“Comments provided here”

11




6. Succession Plans Developed

a. Included all managers with potential successors and corresponding development plans

VP Engineering

Base Salary: $ xxx,xxx

Yrs of Svs: xx Yrs in Position:

Successor Candidates:

Age: xx Yrs of Svs: xx Yrs in Position: xx Perf Rating: xx

Director of Engineering

Base Salary: $ xx,xxx

Yrs of Svs: xx Yrs in Position: xx Perf Rating: xx


Yrs of Svs:xx Yrs in Position: xx Perf Rating: xx Ready: xx

Director of Design Engineering

Base Salary: $ xx,xxx

Yrs of Svs: xx Yrs in Position: xx Perf Rating: xx


Yrs of Svs:xx Yrs in Position: xx Perf Rating: xx Ready: xx

Employee Name: Name Plan Initiation Date:

Manager Name: Manager Review Date:

Development Objective Action Steps Target Date

Competency to be acquired or enhanced Actionable steps to develop competencyWhen should each action be

completed?

Participate in X Kaizen events that will provide exposure to

different types of production methods across Crane91/2010

Participate in the X project with our procurement team in

order to learn material sources and typesOctober 1, 2009

Participate in X Kaizen events that will provide exposure to

assembly processes, fabrication, electrical and continuus

flow line processes.

November 1, 2010

Enroll in a college course on Basic Manufacturing Process

for Assembly Processes, Fabrication Processes, Electrical

Electronics Manufacturing Processes, Continuous Flow/Line

Balancing Processes, Finishing, Clean Room Processes,

Experiment Design

December 1, 2010

Individual Development Plan

PRODUCTION: Set up, operate, monitor, control and

improve manufacturing processes and schedules to

meet customer requirements.

12




b. Identified “Franchise Players”: Leaving would cause risks to different elements of the strategic plan

High Business Risk The employee’s departure would cause significant disruption to the business. Recovery would take 12-24 months (or more). Medium Business Risk The employee’s departure would cause significant disruption to the business. Recovery would take 6-12 months. Low Business Risk

The employee’s departure would cause significant disruption to the business. Recovery would take 1-6 months

Employee A

Employee B Employee C

13




c. Identified gaps in Organization

POSITION INCUMBENT READY TODAY READY IN 1-2 YEARS READY IN 3-5 YEARS

President

Vacant

Executive VP

Group OpEx Director

VP, BD Vacant

VP, EMS Solution Vacant

VP, Finance Vacant

VP, Human Resources Vacant

VP, ME Solution Vacant Vacant

VP, Microwave Solution Vacant

VP, Operations Vacant

Vacant

VP, Power Solution Vacant

VP, Supply Chain Vacant

14



Learnings to Action

7. Cascading Strategic Plan

a. Identify Organizational gap to achieve

b. Define Initiatives to address gaps (Supply Chain Example)

Competency #1 #2 #3 #4 Assessment

Leadership l l l l

Negotiations l l l l

Strategic Sourcing Process l l l l

Drive quality corrective action l l l l

Material Replenishment m m l l

2008 Stratgic Priorities Correlation

1.D& I the procurement organization,

processes and activities to drive NPD

l

Strong2. D & I an action plan to reduce material

costs and achieve favorable PPI of

$3,000K m Medium3. Support D & I of value stream

enterprise at Dixie-Narco

4. Support D & I of value stream

enterprise at St. Louis'

Good to Go

Concerned

Gap

Correlation to 2008 strategic priorities

15



Learnings to Action

c. Identify strengths, weakness, action items and responsibility for each initiative

Note: Target dates for completion tied to individual assigned to accomplish the required action

2008 Strategic Priorities IC Strengths IC Weaknesses Required Actions

D& I the procurement

organization, processes and

activities to drive NPD

1. Restructure Procurement

organization.

2. Assigned, from procurement team,

specific owners to each NPD project

1.Insufficient resources to effectively support

NPD, specifically pertaining to cost

objectives. 1.Add 1 new strategic sourcing leader.

D & I an action plan to

reduce material costs and

achieve favorable PPI of

$3,000K

1.Restructured procurement

organization.

2. Developed solid action plans to drive

favorable PPI

3. Completed a 3P evemt om Bev Max

to reduce material costs

1.Lack of support in tactical day to day

activities require strategic sourcing leaders

to become involved and detract from driving

cost reduction action plans.

2. Supplier quality development

1.Add 1 new strategic sourcing leader.

2. Add 2 new supplier quality engineers

3. Upgrade current planning position to

buyer/planner job function

Support D & I of value

stream enterprise at Dixie-

Narco


organization.

2. Procurement team members

participated in PFEP kaizen event


2. Insufficient resources to support value

stream linkage.

1. Add 1 new supplier quality engineer



3. Add tactical buyer.

4. Add Director of Materials

Support D & I of value

stream enterprise at St.

Louis.


organization.

2. Procurement team members

participated in PFEP kaizen event


2. Insufficient resources to support value

stream linkage.

1. Add 1 new supplier quality engineer



16



Executive Coaching

8. 360 Degree Reviews/Assessments

a. Define opportunities to improve

b. Define strengths to continue

1.

14 questions grouped

by Results-Team Work-

Company Values.

Executives did self-

rating and was

compared to peer group

(in some cases included

customers and

suppliers)

Rating

from 1

to 10

Comment Section to be filled out by rater

Results………………..

Team Work…………..

Company Values……………

0

2

4

6

8

10

17



Executive Coaching

c. Define projects for development

Action Step/ Kaizen Events

Owner

Development Projects

Target Date for Completion

1a Executive

Develop and Implement three development programs as identified in the 360 degree assessment: individual communication; floor level metrics; advanced coaching techniques.

1b VP HR

Identify 3 personal coaches and secure 1 that would work with executive level employees.

1c VP HR

Coach and the Executive identify targets to improve as shown in their assessment.

employee engagement thorugh lean initiatives

Documents

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total company o j r

company culture

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