Why Are Major Initiatives Not Sustained? Bashing Barriers & Unlocking The Human Spirit Unlocking The Human Spirit Jim Dauw Jim Dauw The Aerospace & Defense Forum The Aerospace & Defense Forum Orange County Chapter Orange County Chapter November 3, 2011 November 3, 2011 A Journey Venture Aircraft LLC (HSBC) Venture Aircraft LLC (HSBC) Present Present ITT Control Technologies ITT Control Technologies 2008 2008 - - 2011 2011 GKN Special Products Group GKN Special Products Group 2003 2003 - - 2008 2008 Alcoa Fastening Systems Alcoa Fastening Systems 1980 1980 - - 2003 2003 Page 1
Actual Results Unit Lead JIT Floor Inventories Quality Times Cost Space Revenue 90% 25% 90% 90% 60% 50% I 90% 90% 90% M P R O % V 60% E M 50% E N T 25% 25% Why do 68-70% of Major Initiatives Fail? Not Another LOHICA ! Program!! Page 2
We did it to them… not, with them! Kaizen First Kaizen First – – A week A week long rapid improvement long rapid improvement event event During that week; During that week; • 59.2% increase in productivity • Reduced inventory • Reduced travel distance • Reduced space Sounds Good Sounds Good Until…..Next week Until…..Next week Lesson Learned – Must Change the Culture Senior Executive Developed a Vision Staff Training Middle Management (Team & Group Leaders) Training Page 3
Prepare our Team Members for Change Improvements are Measured Team Building Training Teams Meet to Sustain Gains and Improve Rapid Improvement (Kaizen) Event (3-5 days) Lean Training Teams are Evaluated and Gains are Celebrated Vertical (Silo) v. Horizontal Thinking Sales Operations Quality Procurement Planning & Logis Human Resourc Finance New Product D ces Development stics Customer Supplier Page 4
Involve both – the Supplier & Customer Supplier Us Involve Customer & Supplier in a Synchronous Organization Extended Process Our Manufacturing Process Our Our Supplier Cust. Page 5
Not only External - become a synchronous organization internally � What Do You Need? What Do You Need? � � How Do You Want It? � How Do You Want It? How Do You Want It? How Do You Want It? � � � When Do You Need It? When Do You Need It? � � Where Do You Want It? Where Do You Want It? � How do we get ‘buy-in’? Cultural Change . . . Are We . . . . . . Are We . . . Are We Are We Are We Are We Are We Are We Competitive In Competitive In Competitive In Competitive In Cost Cost, Cost Cost, , Quality , Quality Quality, and Quality, and and and Responsiveness? Responsiveness? Responsiveness Responsiveness We had a Burning Platform Page 6
We were Not competitive! � Why Why Do We Require So Much Sq. Footage? Do We Require So Much Sq. Footage? � Why Why Do We Require More People? Do We Require More People? � Why Why Do We Need More Inventory? Do We Need More Inventory? � Why Why Are Our Costs Higher? Are Our Costs Higher? � Why Why Are Lead Times Longer? Are Lead Times Longer? � Why � Why Why Are Up Why Are Up Are Up times Lower? Are Up-times Lower? times Lower? times Lower? � Why Why Are Our Systems So Complicated? Are Our Systems So Complicated? � Why Why Is Our Quality Cost High? Is Our Quality Cost High? We had the Opportunity to Differentiate Required: Required: � Disciplined Disciplined Production Systems Production Systems � Focus Focus On Continuous Improvement On Continuous Improvement � Dedication Dedication To Elimination Of Waste To Elimination Of Waste Page 7
Barriers to Improvement Philosophies Concepts Theories Roadblocks Barriers Lack Lack Resistance to Resistance to Mixed Mixed Inconsistent Inconsistent Lack of Lack of Skepticism Skepticism NIH NIH of of Politics Politics Direction Direction Change Change Signals Signals Commitment Commitment Trust Trust Changed Work Practices Why do we resist change? • Gets Personal – “Something is wrong with me!” • Fear of the Unknown Page 8
So…. We wanted our team members to We wanted our team members to discover that constructive change was discover that constructive change was discover that constructive change was discover that constructive change was not only possible not only possible – – but could become a but could become a reality and could be fun reality and could be fun We owe it to ourselves to…. As a team, we now had a plan to become As a team, we now had a plan to become competitive and we had a robust integrated competitive and we had a robust integrated titi titi d d h d h d b b t i t t i t t d t d system: system: � Setting The Direction Setting The Direction � Creating The Environment For Change Creating The Environment For Change � Leading The Change Process Leading The Change Process � Removing The Barriers And Roadblocks Removing The Barriers And Roadblocks R R i i Th Th B B i i A d R A d R dbl dbl k k � Challenging Past Practices Challenging Past Practices Page 9
Break-through Philosophies Knowledge Concepts Concepts Theories Understanding Skills Barriers Barriers Barriers Barriers Changed Work Practices We developed a lean training program – We learn and understand: � 10% Of What We Hear 10% Of What We Hear Page 10
We Learn & Understand � 10% Of What We Hear 10% Of What We Hear � 15% Of What We See � 15% Of What We See 15% Of What We See 15% Of What We See We Learn & Understand � 10% Of What We Hear 10% Of What We Hear � 15% Of What We See � 15% Of What We See 15% Of What We See 15% Of What We See � 20% Of What We Both See & Hear 20% Of What We Both See & Hear Page 11
We Learn & Understand � 10% Of What We Hear 10% Of What We Hear � 15% Of What We See � 15% Of What We See 15% Of What We See 15% Of What We See � 20% Of What We Both See & Hear 20% Of What We Both See & Hear � 40% Of What We Discuss With Others 40% Of What We Discuss With Others We Learn & Understand � 10% Of What We Hear 10% Of What We Hear � 15% Of What We See � 15% Of What We See 15% Of What We See 15% Of What We See � 20% Of What We Both See & Hear 20% Of What We Both See & Hear � 40% Of What We Discuss With Others 40% Of What We Discuss With Others � 80% Of What We Experience Directly Or 80% Of What We Experience Directly Or Practice Practice Page 12
We Learn & Understand � 10% Of What We Hear 10% Of What We Hear � 15% Of What We See 15% Of What We See � 20% Of What We Both See & Hear 20% Of What We Both See & Hear 20% Of Wh t W 20% Of Wh t W B th S B th S & H & H � 40% Of What We Discuss With Others 40% Of What We Discuss With Others � 80% Of What We Experience Directly Or Practice 80% Of What We Experience Directly Or Practice � 90% Of What We Attempt To Teach Others 90% Of What We Attempt To Teach Others Teaching others enabled our business to achieve Teaching others enabled our business to achieve eac eac g ot e s e ab ed ou bus g ot e s e ab ed ou bus ess to ac ess to ac e e e e sustainable results sustainable results Delivering Sustainable Results • Capturing the Hearts & Minds delivers powerful Capturing the Hearts & Minds delivers powerful results: results: � Engaged Employees Engaged Employees � Customer Satisfaction Customer Satisfaction � Top Top- -line growth line growth � Margin Expansion Margin Expansion � New Product Development Funded Internally New Product Development Funded Internally � Recruiting next generation ‘best & brightest’ Recruiting next generation ‘best & brightest’ Page 13
Principles • Manage the Business as a System • Create a Learning Organization Create a Learning Organization • Develop Process Excellence • Integrate System Thinking Page 14
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