1

Plant ‘M’

Review Meeting

6th October 2003

2

Presentation Content

Set the Scene

Development of our Vision & Mission

Organisational Values & Design Principles

Measurement Tool Development

Structure

Team Development

Objectives & Goals

3

Organisational Development 3 – Critical Factors for Successful Change

Creating a vision of where we want the organisation to go and building peoples commitment to that vision

Mapping a strategy to make the change processes work

Providing an environment for continuous improvement to sustain change

4

4 –Process Steps

Assessment

Analyse the “as is” situation, defines the purpose

and nature of change

Planning

Articulates and defines the change processes

required to bridge the gap between the “as is”

and “to be” and defines tactical plans.

5

4 –Steps cont’d

Implementation – Builds understanding – Commitment to to change; – Trains toward new goals; – Establishes new ways of working.

Renewal – Supports culture change and workforce

empowerment – Builds in measurement process for change. – Includes achievement and learning

6

Aims of Process Steps

Analyse the “as is” condition

Determine the change processes best adapted to the organisations goals

Build a valid conceptual framework for change

Involve and empower people toward a shared vision

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Current Needs.

Develop Our Manufacturing Vision/Mission/Values/Design Principles

Develop Organisational design process

Build our Change Strategy

Align everyone's goals and objectives to achieve the Manufacturing Vision.

Interventions in line with our Vision and Mission

8

Development of our Vision and

Mission Statements

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“If you don’t know where

you’re going any road will

get you there’

Lewis Carol

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Vision

We will Develop our People

to

Create a Manufacturing Environment

that exceeds

World Class Benchmarks

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Mission Statement

To exceed our Customers Expectations

by becoming a

Centre of Manufacturing Excellence

to

Provide ‘Fine’ Quality Products

that

‘Delight’ Our Consumers

12

Development of our Manufacturing

Values and Organisational Design

Principles

13

Our Values

Safety.

Everyone takes responsibility for their own safety, team safety and those around them. Unsafe behaviour is challenged immediately within the teams.

Communication. Communication will be two-way, open,

honest and clearly reflect business realities.

14

Our Values cont’d

Individuals feel valued and empowered.

Every individual has immense potential to develop through challenge, trust, recognition and personal growth.

‘Can do’ Attitude

We will change our culture and attitude to one of ‘can do’ in order to identify and achieve solutions for our customers. Our aim is to provide our customers with a proactive, flexible, creative and innovative approach. A ‘no blame’ culture exists.

15

Our Values cont’d

Team Working.

Everyone is a member of a team and gets feedback and recognition for contribution. Individuals value team driven behaviour rather that ego driven behaviour. Constructive feedback between team members is valued.

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Our Values cont’d

Involvement. Objectives are set and met through a

process of involvement, which allows the individuals to contribute and to identify their contribution and role in the business.

Reward Reward and recognition will be based on

skills,knowledge and performance Learning Culture. Learning is valued and shared. There is

constant quest for improvements.

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Our Values cont’d

Customer supplier driven. Everyone strives to improve their

customer-supplier relationship internally and externally. People deal with each other through showing commitment and understanding.

Shared ownership. So that everyone has a good knowledge of,

and has commitment to, the business and feels responsible for managing their part of it in a value adding way.

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Our Values cont’d

Leadership.

We value shared leadership that inspires others to participate and contribute in a value adding way to our people and company wide development.

Open Systems Theory

This is the theory base of our organisation and individual development and needs to be absorbed into the culture and values.

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Organisational Guiding Design

Principles Communications

– Will be two way, open and direct – Accurately reflect business realities – Include all that is relevant for a specific job. – Create understanding of how “I” fit in the

business

The system will be teambased: the team is an organism that must have the capacity to learn and grow.

The team is responsible for the whole job.

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Organisational Guiding Design

Principles cont’d

All members of the team are responsible for the outcomes through participation.

Our people are a resource that can develop and

contribute to our competitive strength. People identify with,feel part of and are

integrated with the business. There is a shared vision

Decisions are based on knowledge and are made at

the point where corrective action can be taken. Generally moving down the organisation.

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Organisational Guiding Design

Principles cont’d

Arbitrary distinctions will be eliminated. The traditional hierarchical and status class differences between shopfloor personnel and others will not exist

There is mutual commitment (shopfloor and all others) to the system its design and principles.

The design will have minimum critical specification,

i.e. No more design than absolutely necessary.

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Organisational Guiding Design

Principles cont’d

The implementation will be compatible with the work system expressed in our :-Vision, Mission, Values and Design Principles

There is an effective/appropriate selection process for new employees and for team membership.

High Total Ethical standards are applied. The system will be open and improving:-

– Processes for renewing and improving are incorporated – Incompletion is the steady state

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Organisational Development

Measurement Tool

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The Measurement Tool

This process brings Our Vision, Mission, Values and Principles to Life at shopfloor level.

How ?

– By taking the above and breaking it into small easily understood steps that can be debated and tested for understanding at all levels in the organisation.

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0 1 2 3 4 5 6 7

0 1 2 3 4 5 6 7

0 1 2 3 4 5 6 7

0 1 2 3 4 5 6 7

Des

ign

Ele

men

ts

5

Base pay attracts the

necessary quality or

personnel.

6

There is opportunity for

advancement according to

skill.

7

Team members

understand and present

their own work system.

8

The environment of work

fully supports the work

system.

REWARDS (continued)

It is either too low to attract

the right people, or misleads

by being too high.

Base pay attracts good

people, but not the best.

There is turnover of people.

Few advancement

opportunities for most

people.

People occasionally have

advancement opportunities

according to the skill. The

need for a formal policy is

understood.

The work system is

presented by management.

Team co-ordinators present

their system. Training is in

place to extend and improve

presentation skills.

The physical environment is

bad, and there is hassle in

the organisation.

The physical environment is

fine, but there is still hassle in

the organisation.

Example of Tool Being filled in

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Whole Plant

0

1

2

3

4

5

6

7

8

9

10

ST

RU

CT

UR

E

Team

Siz

e

3 L

ayers

Com

pete

nce b

ased leadership

Shift R

ota

tion

PE

OP

LE

Perfr

om

ance a

pprais

al by team

Perfr

om

ance a

pprais

al by c

usto

mers

Recruitm

ent and s

ele

ction

Train

ing a

nd d

evelo

pm

ent

Train

ing for b

usin

ess n

eeds

Train

ing s

ele

ction s

yste

ms

INF

OR

MA

TIO

N

Rele

vant busin

ess info

rm

ation

Team

s s

ettin

g g

oals

Know

ledge b

ased d

ecis

ions

Use o

f skills

and info

rm

ation

RE

WA

RD

SY

ST

EM

S

Pay for k

now

ledge

No o

ther s

yste

ms

Opportu

niy

rew

ards

Recognitio

n o

f success

Base p

ay

Advancem

ent

Team

s p

resent th

eir s

yste

m

Supportive E

nvironm

ent

TA

SK

S

Mis

sio

n d

efined

Task d

efined

Sharin

g r

esponsib

ility

Proble

m s

olv

ing/ im

provem

net

Mis

sio

n a

ccom

plishm

ent

Team

pla

nnin

g

Tim

e for p

lannin

g

Perfo

rm

ance feedback

Sharin

g o

f ta

sks

OP

ER

AT

ING

SK

ILLS

Mechanic

al skills

Quality

responsib

ilty

Housekeepin

g / c

leanin

g

Operational skills

Team

/ o

rganis

ational skills

A Completed survey may look like this

Today

2-3 yrs

S I R T O P

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Key Points

Don’t over focus on the score. It is not important

We are structuring our peoples future expectations on how work will be done.

Our design reflects an ‘holistic’ approach to work redesign

The debate around the measurement tool is a way of unfreezing the current culture.

Don’t be afraid of debate, its healthy, its to be encouraged. The measurement tool takes the heat out of the change process

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Organisational Structure

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STRUCTURE

Production – Team leaders

Where / How do they see us at the moment?

- World famous, Traditional, Expert, Specialists

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Structure – Contd.

Where do they want to be?

- Learning organisation

- Flexible and dynamic

- Innovative

- Responsive

- Shares leadership and responsibility

- Integrated

- Flat and lean

- Dynamic

- Clear direction

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Structure – Contd.

How to get there? - Must create a shared vision and values

- Customer driven and focussed

- Quality

- Think global / international and integrate

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Structure – Contd.

What do they do as a leader ?

How do they do it ?

What are their values ?

How do they see teams in the future ?

What needs to change ?

What do effective teams look like ?

What characteristics are they struggling to achieve ?

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Structure – Contd.

Major issues :- Communication

Team size

Reluctance to share knowledge

Ownership

Team leaders not a team

Training and development

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Structure – Contd.

Issues still to be addressed :- - Selection of team managers

- Selection of development managers

- Selection of team coordinators

- Role specifications

- Chargehands

- Supporters

- The stepping stones to the vision

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Operational Team Development

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Operational Teams

Operational teams are:

“the business building blocks for the future”

37

Tools and Techniques

Downtime Recording

Effective Meetings

Problem Solving

Visual Control

Autonomous Maintenance level 1

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How it all Fits

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Process Improvement Plan

Team Meeting Operator

Team Co-ordinator

Team Leader

Technical Support

Sponsor

Sponsors

FOCUS

Activity D.S.R

From M/C

Plan

ACTION Do

Review

Weekly Pareto Analysis

Downtime Effectiveness Waste

Performance Performance

By Individual

Agenda

Structured

Meeting

Daily

5 minute

Review

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Importance of Downtime Recording

Quality and Accuracy of Information is Essential Technicians recording downtime information on line

All Downtime Must Be Accounted For Technicians entering this information into downtime package on PC

Information Analysed at Team Meetings Technicians producing graphical data (pareto analysis 1st, 2nd, 3rd levels)

Teams using information at effective team meetings to analyse problems and develop solutions

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Importance of Downtime Recording cont’d

Structured Actions Must Be Taken to Eliminate Main Causes of Downtime:

Teams to action problems with solutions

A regular review of actions/solutions at following

meetings

Determine the resultant impact on OEE

Create an action plan of main problems/faults over

a fixed period of time

To progress from current OEE to target OEE

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Importance of Downtime Recording cont’d

Review of Actions Critical:

Monitor and review all improvements

Create a new action plan

Streamline method of recording/analysis

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Effective Meetings

Teams will meet for 30 – 40 mins every week:

Communication/listening Share information Work together on problems identified from

DSR Make decisions – consensus Pass on business information Exchange ideas and experience Develop teamwork One point lessons to reinforce essential issues

e.g. Safety, PPE, Break times etc

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Effective Meetings cont’d

Purpose – know and understand prior to the meeting

Agenda– issued before the meeting

Participants – people come prepared

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Effective Meetings cont’d

Team Coordinator guides the discussion

Summary seek clarity from the meeting

Follow up - Actions written records in personal development books

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Problem Solving Through

Pareto Analysis

First Level Pareto Net productive time and losses

Second Level Pareto Idling and minor stoppages

Third Level Pareto Machine jams

0

10

20

30

40

50

60

70

First Level Pareto Analysis

Net Produtive Time & Losses

Series1 61.5 2.6 13.3 12.8 8.3 1.5

Prod

Time

Idling/

Stop

Breakd

owns

C/Over

s

Materia

lsQuality

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Visual Control

Visualise – the adjustments, the levels, the lubrication points, on plant and equipment

Inform – with indicators, with standards, with diagrams posted on the shop floor

Signal – by ground marks, by standardised information

Unify – the supplies,the documents at plant level

Audit – the shop floor regularly with a cleaning and housekeeping audit policy

Localise – communication spaces in each shop floor

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Autonomous Maintenance Level 1

Old Attitudes: “I operate, you fix”

“I fix, you design”

“I design, you operate”

New Attitude: “We are all responsible for our equipment”

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Autonomous Maintenance Level 1

Involve technicians in daily activities to maintain basic equipment conditions

And

To improve basic conditions through small group improvement action

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Role of the Technician

Prevent Deterioration:

Operate equipment correctly

Clean, lubricate and tighten bolts

Make adjustments

Record data re breakdowns and stoppages

Work with the Engineers to study/make

improvements

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Role of the Technician cont’d

Measure Deterioration (using 5 senses):

Conduct daily inspections

Conduct certain periodic inspections

Develop checklists

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Role of the Technician cont’d

Make Minor Repairs:

Report promptly and accurately re breakdowns

and stoppages

Assist in repairing sporadic breakdowns

Perform simple replacements

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Role of the Engineer

Maintain equipment through an effective maintenance plan

To guide and assist technicians with maintenance activities (training, standards and problem solving)

Improve equipment reliability

Improve equipment maintainability

54

What Can We Expect from Our

future Technicians ?

Maintain and improve basic condition of equipment

Recognise equipment abnormalities and correct quickly

Improved understanding of the relationship between the state of the equipment and quality

Make minor repairs and part replacements

55

What Can We Expect From Our

Teams? Clear aims and goals to improve productivity

Team coordinator will guide the teams, ensuring all the appropriate tools and techniques are used to improve line effectiveness

Decision Making Decisions will be made at team and technician level and not several layers up the organisation

Training focused Cross skilled/developed teams

Customer driven Teams understand their customers requirements

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What Can We Expect From Our

Teams? Cont’d

Flexibility Flexibility internally and externally within the teams

No Demarcation of Skills Minimised and matched to our business needs

Business Knowledge Teams will gain a broader understanding of our business and how they fit in the organisation

KPIs Such as: OEE, Waste, Plan Achievement, Customer Complaints, Safety, Absence, Training will be measured and actioned to improve

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Pointers, Objectives & Goals

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Interventions to Date

Setup and development of OD Team

Meeting with staff and shopfloor personnel to get

their view on manufacturing and sharing future

team processes.

Showing and discussion onVisual Control

Photographs

Team leader unfreezing process

Planning engineers unfreezing

Shop Steward communication

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Goals & Objectives

Alignment of team objectives

Establish Team development processes

Make Structure Effective

Improve Line Effectiveness (10%)

Improve Plan Achievement (Customer Service)

Reduce Customer Complaints ( 50%)

Reduce Waste (50%)

Reduction in Accidents (50%)

60

Future Actions October

Agreement on Manufacturing Structure

Internally Advertise for team co-ordinator

role.

Communication on Structure and team

processes to Factory personnel and staff

Identify team sponsors

Start weekly team meetings.

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Medium Term Actions 1 to 3mths Measurement tool to be issued and filled in.

VC in action

AM1 in action

OPL ( One point lesson in action)

Downtime accuracy development

Stores/Finished Goods Team Design

Back to basics – Breaks

– Shift handovers

– Absence control

– Working hours

– Effective Maintenance

– Training on line effective

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Medium to longer term 6mths

Planned Maintenance

Changeover time reduction

BRC Development plan

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Development Express

All Aboard