Lean Deployment - cdn-cms.f-static.com€¦ · effective work processes. 2.1 Promote pro-activeness from the people. targets. 5.2 . 2.2 Generate opportunities for people efficiencies

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Lean Deployment

Musaed Al-Saleem Lean Program Leader

EQUATE Petrochemical Company

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Click to edit Master title style Agenda

• Lean Deployment Strategies • About Lean EQUATE Program • How to Start Lean Program • Where to apply Lean • Things to watch for

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An improvement mindset that

emphasises on value as perceived

by the customer through

management of flow

What is Lean?

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Click to edit Master title style Deployment Strategy Drive Advantages Disadvantages

Top-down Deployment • Great executive commitment

• Organization-wide acceptance

• Quick dissemination of knowledge

• End to end projects

• Large initial investment required

• Large scope and complexity

Partial Deployment • Deploy on specific functional areas or business units.

• Narrow scope • Less complexity • Pilot a success story

• Longer time • Smaller ROI • Silo improvement

Focused Deployment • Focusing on specific business problems

• Quick wins • Address burning

platforms

• Narrow scope • Smaller ROI

Lean Deployment Strategies

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Lean Program Journey Milestones of Implementation

Pilot with ISC

Department

New Lean program launched

company wide

Delivered for MKT

Department

Delivered for

EBSM Department

Delivered company

wide Training in-house

Lean for leaders

August 2016

22 Feb 2017

April 2017

September 2017

March 2017

May 2017

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Why Lean ? Why Now ?

• Facts: 320/400 Trained on Six Sigma • 80% of professionals 900 Employees without any C.I tool • 70% of total population

• Believe: • Everyone has a tool for Continuous

Improvement C.I • Everyone can contribute & deliver

Value

• Actions: • Propose an A3 • Get involved D-D • Make it business as usual

• Feel: • Empowered & Supported • Important & Included • Personal Investment • Self Satisfaction

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Pilot at ISC-DO Department @ Q4 2016 Warehouse & Marine Terminal Operation

• We focused on one defined pilot assembly line and implement lean principles at that particular function. The organization worked and the pilot went successfully.

• Now We would like to adapt these lessons

learned to further areas and functions.

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Challenges from Pilot Implementation

Time Management

Most of our lean project leaders are shift time workers

Decision Making

Slow decision making process with related stakeholders (TID, RID, MFT, Day Staff)

Bureaucracy

Current Work Processes (MOC, RTS, WO, ..)

Candidates selection was based on interest and willingness

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Partnership Collaboration Proposal Lean Program Strategy

Corporate

Strategy Mapping

Road Map

Recognition

OP-EX Team

2017 Assessment

2018 Recruitment

2019 Low hanging

2020 Self Sustaining

Value Stream Mapping

Training

Opportunity finding

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How to quantify value contribution ? Metrics drive behavior

KPI 1 Cycle Time

KPI 2 Quality

KPI 3 Soft Dollar

Savings

Average execution time is

less than 12 months with 0

overdue projects

% of defect reduced or waste

eliminated

Amount of $ saved delivered

to other units or man/hrs. or

avoidance of cost 50 %

Business

KPIs

50 % ( 6 out of 12) projects highlighted

50 % of their Target $ 100,000 Non-EBIT

50 % (5 out of 10) waste identified

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EH&S PRODUCTIVITY PROFITABILITY COST EFFICIENCY

Corporate Performance Metrics

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KAIZEN Conference in Kuwait 9 April 2017

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KAIZEN ≠ Continuous Improvement

• Everyday Improvement: Tremendous self-discipline. Business as usual mindset.

• Everyone Improvement: Not only for operators vs. Top management (Commitment, support & guidance).

• Everywhere Improvement: Company wide improvement scale. All kind of business activities.

≠

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How to apply ?

How to see waste

How to recognize it

How to remove it

VSM Gemba Walks

Kaizen Events

Andon A3 Standard Work

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Click to edit Master title style Waste Type Waste

Description Possible Causes Proposed Actions Successful

Verification

Transportation

Over processing

Waiting

Inventory

Skills Unutilized

Defect

Over production

Motion

Waste Elimination Form

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Business and operational processes or workflows that are

disorganized.

Coordination and collaboration between

groups or people is disconnected.

Critical tasks or assignments get

overlooked or delayed.

Where to apply ?

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Lean Accounting “FI”

• From traditional value chain to Value Stream Costing “Money Map”

• Lean metrics: Stock turn or

inventory turnover = output/inventory

• Lean Tool: “Heijoncka”

production leveling which is a technique to facilitate JIT.

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Lean Product Development “R&D” “Research & Development”

Feedback Ideas Model

• 60% Failure of New product development creation process. Put a lot of urgency to new product development. • Make the plan as per customer

needs as well as business needs

• Bring the customer to

visualize the process before launching.

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Lean Sales “MKT”

• VOC, Benchmarking Tours, Market Research • Suspicious minds “fear from mistakes” need to be removed • Kaizen events with customers & VSM with Sales • CI projects toward Sales and Marketing. • Trust: I’ve got you culture

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Lean Office

• Multi-task environment. They don’t see process. Help them see

• Decision making is a process. What

information I need to do with it • Gemba walks “science of cleaning” +

check lists = standard work • Adopt a concept.. No one size fits all.

No copy then paste

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Lean Safety “EHS”

• From compliance safety to continuous improvement safety concept

• People have back injuries, they will be

in a kaizen event about that! • Absorb people and help them to

understand “what’s in it for me”

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Lean “HR”

• Redesign all jobs removing NVAs

• Recognize and manage talent performance.

• Lean recruitment process (faster)

• Increase employee morale and

effectiveness. • Coach & inspire leaders on lean

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Launch

Early Success

Scale / Replication

Institutionalization

Cultural Transformation

Stages of Lean Implementation

Few functions involved Few Employees (training & projects)

Initial project successes validated.

Success drives program across the company and functions.

Multiple success in each plant/function have created strong line management support.

Long period of successes has embedded into the way we do business (DNA).

One Kaizen event per quarter.

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Lean Maturity Model

Launch Early Suc cess

Scale Replication

Institu tionalization

Culture Transformation

Cultural Change D NA of O rg . Beyond Lean PDCA N ew Product

Strategy Maturing Company

Aligned Bus / Funct .

Full- Closed ( Strategy)

Software Communication Boards Dashboard

T racking Portfolio Mgmt . Strategy +

Portfolio

Reporting A3

Report

, Kaizen Gallery Walk

Cross - organization Multi - year History

Value Impact Work place

Waste Reduction

Consistent Optimization Customer Focus

Customer Loyalty

Project Selection Burning Platform

Low Hanging Copy Success

Idea Pipeline Formalized Evaluation

People Driven Few More Believers

Career Development

Repatriated Majority

Training Two Days Train the Trainer

Customized Internal e - L earning

Internal, Specialty

Leadership Support Essential

Creative Validated Across

Role Model Ingrained

Level 1 Level 2 Level 3 Level 4 Level 5

6 M onths 1 ½ Years 3 Y ears 5 Y ears

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Lean Tools of focus

Andon

5S Visual Management

Poke Yoke

Standardized Work Templates

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Practical Training Application of tools at site

Curriculum Topics Lean Tools and Techniques

Root Cause Analysis 5-Why, Fishbone Diagram; Interrelationship Digraph, Cause & Effect

Key Performance Indicators, Overall Equipment Effectiveness, TPM

Cycle Time Reduction Lead Time Reduction, ADeltaT, Tact Time, Critical Path Analysis, SMED,

Quick Changeover, Kanban, JIT

Value Chain Value Stream Mapping, Value Adding/ Non-Value Adding

Risk Assessment Error Proofing, Failure Modes & Effects Analysis, Risk-Benefit Analysis

Visual Management Control Plans, Control Charting, Gemba, A3, Communication Boards,

Andon

Work Place Optimization Kaizen, 5S, Workcell, Spaghetti Map, Handoff Map

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10% of what you read

26% of what you hear

30 % of what you see and hear together

70% of what you say

90% of what you say while doing something such as teaching or coaching. Source: Silverman

“I hear and I forgot..

I see and I remember..

I do, I understand…”

Kaizen Event “ Learning by Doing”

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The 6C Principles for Successful Lean Deployment

Corporate Strategy Alignment.

Coaching Bottom-Up Approach

Create Value Visibility

Customer-Focused Integration

Close Leadership Celebrate Success

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1. Corporate Strategy Alignment “Buy in”

We already have a

structure

Organizational Values are

aligned with lean.

Totally aligned with (people,

process, Technology)

Business & market share is declining

globally.

Same metrics & KPIs for

performance & goals.

Big opportunities

still exist between processes

Expectations from lean are

Simple & Clear.

Why Now? Compelling reasons to support Lean

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Are we strategically aligned with all

strategic themes, different goals and

targets?

Can we gain “Leaders Commitment” across all

functions?

Strategic Fit vs. Commitment

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Management Support & Commitment Top Down vs. Bottom Up Approaches

• Lean Implementation does not work bottom-up. It will face resistance and fear in the organization without the support from top management and functional leaders. • Operate top-down to get the necessary support

and backing for all lean activities from upper management. This will help you especially in making cross-departmental decisions.

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Growing with our customers

Financial Discipline

Attract, Develop, Retain Talent

Effective, Efficient, Reliable

Sustainability Business Excellence

People Excellence Maximize Value Growth

Responsible

Care

1.1 Strive for better EH&S by optimize work space through developing, maintaining current safety procedures. 1.2 Sustain new standards and leverage best lean practices to society.

3.1 Identify areas for external and internal customer needs 3.2 Enhance the product supply in terms of quality, cost & time. 3.3 Drive efficient, effective work processes.

2.1 Promote pro-activeness from the people. 2.2 Generate opportunities for people efficiencies. 2.3 Develop core technical capabilities and align it with HRO.

5.1 Achieve NIAT & EBIT company targets. 5.2 Manage controllable cost below budget.

4.1 Deliver greater value to our customers, drive growth and Innovation. 4.2 Optimize business work processes.

Lean Strategic Fit to Corporate Strategy

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2. Coaching Bottom-Up Approach “Power to the People”

Nominate Real Workers as “Lean Enablers”

Practical Teaching “Demonstrate at Site”

Listen to the people “on going feedback”

Hold people accountable “Accountability”

Roll out across all shifts “Engagement”

Remove Favorite Depts. “We saw it before”

Ensure tools & templates are simple & relevant. “A3”

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Lean KATA It is a Marchal Art Mindset Practice routines (Automatic Habits) for starters to build confidence

Coaching Style

“Mike Rother” www.katatogrow.com

http://www.katatogrow.com/

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Click to edit Master title style • Action: Engage Middle Management to have better chance to success. • How ? Define Executive problems you are trying to solve.

Approach leaders on what they want to do

Align corporate targets with lean targets(Ex: raise 15% of inefficiencies)

Let them do A3 and believe in it & then flow it to their people on their problems.

Know how to socialize (socialization plan) people know what you don’t!

Leaders as Coaches

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3. Create Value Visibility “ Seeing is Believing ”

Start by Deadly Waste Elimination. “ MUDA ”

Organize Kaizen Events & Show Before/After.

The new step will be the standard. “Apply 5S “

Sustain standards in a new metrics & measure.

The Chief Engineer at Toyota “Huge influence”

A constant & consistent Message “Communicate”

Show Quick Wins immediately “ Credibility”

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4. Customer Focused Integration

Identify Areas for

External & internal C-

Needs.

Initiate a project as the

most importance

to C.

Each “C” is different, cut & paste will not work.

Focus on the big 3 change priorities for

the C.

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5. Close Leadership Leader’s “ GEMBA ”

Narrow scope by solving one problem at a time.

Avoid overpromise & unrealistic time

Operational Leading indicators “ ANDON”

No Traditional Steering Committee

Lead by Example by Asking Questions

Provide winning conditions to achieve results.

Change agents for each initiative “Ownership”

Leadership vs. Management “ Go & See ”

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Lean Leadership

• Changing the environment “set the floor” • High level of purpose “why” connect to people • Listen to their needs address the true issues

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Process Owners to be “Believers”

• If the process owner is not convinced, he will not follow that lean approach.

• Once attention is switched due to upcoming topics, the process will switch back to old conditions.

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6. Celebrate Success “ Reward & Recognition”

success stories “MSR”

“Gallery Walk”

Public recognition at big meetings “MMT”

What gets rewarded gets repeated

Set up shared workspace for leveraging

Opportunity for people to express and shine

Sense of self-satisfaction, pride and importance

“ It is not a one man show ” 5 People X 50 K.D = 250 K.D For each A3 or Kaizen Event

“ 20% of the current ERS system to push the program ”

“Lean Board”

“Hall of fame”

“Small thank you handwritten note from CEO or VP”

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People Reward & Recognition Culture and Engagement

Public Recognition & Top 10 Award

Ideation & Kaizen event

Career Development

Yearly Gallery Walk

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A3 “Simple Documentation”

1. Problem Statement: (One sentence) 3. Implementation Plan and R.C. Countermeasures Background summary: Why it is important: A simple list of short focused actions + whom + when Current State: Map or Table Future State: Map or Table Pilot Results 2. Problem Analysis: (Fishbone or 5 Why) 4. Sustainability Causes Identified and R.C Results Cost – Benefits Follow up Sign off

I C

D M A

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A3 Title: What are you talking about? Owner/Date Background: What’s wrong previously? Problem Statement: A problem is a Gap between where we are now and our target Current Conditions: • Visual is always better • Needs, problem, volume, errors • Map As is Process –If any- Goals/Targets: how to measure success of first effort? How good you want to be? When do you want to achieve this goal? How often? How many? How long? Root Cause Analysis: • What is the root causes of the problem • What to challenge? Constraints • Choose the simplest problem analysis tool that

clearly shows the cause and effect relationship • Be deliberate

Implementation Plan: What activities will be required and who, when (ECD) Proposed Countermeasures:

•What is your proposal to reach the future state, the target condition? •How will your recommended countermeasures affect the root cause to achieve the target? •Simplify and improve process performance

New modified Work Process –IF any- • What are indicators of performance (KPIs) • Resource and stakeholder alignment. Pilot or Test Results Sustainability How to sustain the gain Follow up: • What issues can be anticipated? • Ensure ongoing PDCA. • Capture and share learning.

Team members:

How Big

There is Data

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A3 Thinking & Problem Solving

• A3 is a great communication tool: 75% of the effort on how to make people talk to each other. Tool is there, communication is not. • A3 is a story format (Story telling): for communication, for discussion, for reporting on problems, strategies, changes

• A3 should contain Facts/Data: 50% of the battle. Engaging people is the other 50%

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A3 Types Containment problems start with A3 Flow problems should start with VSM

A3 types

Tactical

Strategical

Learning

Proposal

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A3 is in the “BLISS”

Plan Check Do Act 1. Problem Statement: (One sentence) 3. Kaizen ( R.C. Countermeasures) Background summary: To (action verb) remove, provide Why it is important: Short focused actions Current State: Map or Table Future State: Map or Table 2. Problem Analysis: (Fishbone or 5 Why) 4. Implementation Plan: Causes Identified A simple list of tasks with whom & when R.C Results Cost – Benefits Test Results Follow up Sign off

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Begin with the “END” in Mind

Well-educated frontliners

possess the authority and

skills to identify and resolve

problems at a tactical level.

This high performance

work environment evolves over

time with consistence

practice.

Build cross functional

teamwork with continuous

improvement mindset into the

culture.

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Article to Read

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Lean.org GEMBAAcademy.com

Books & Websites

EQUATE Petrochemical Company EQUATE Petrochemical Company www.equate.com

Thank You

EQUATE Petrochemical Company

Documents

Lean Deployment - cdn-cms.f-static.com€¦ · effective work processes. 2.1 Promote pro-activeness from the people. targets. 5.2 . 2.2 Generate opportunities for people efficiencies