Lean Leadership at Lean Leadership at Medtronic and in Medtronic and in the Communitythe Community

Jerry BussellJerry Bussell

Vice PresidentVice President

Global OperationsGlobal Operations

OverviewOverview

Medtronic, Inc.Medtronic, Inc.Medtronic ENT/NTMedtronic ENT/NTLean JourneyLean JourneyLean Leadership – 10PsLean Leadership – 10PsLean Leadership in the CommunityLean Leadership in the Community

Medtronic Corporate OverviewMedtronic Corporate Overview

World leader in medical technologyWorld leader in medical technology~$12 billion in sales~$12 billion in sales38,000 employees worldwide38,000 employees worldwideNamed Named “100 Best Companies to Work “100 Best Companies to Work

For”For” by Fortune Magazine by Fortune Magazine

Medtronic MissionMedtronic Mission

Contributing to human welfareContributing to human welfare

by the application ofby the application of

biomedical engineeringbiomedical engineering

to alleviate pain,to alleviate pain,

restore health, and extend liferestore health, and extend life

Medtronic, Inc.Medtronic, Inc.

Every five seconds, someone, Every five seconds, someone, somewhere in the world is alive or somewhere in the world is alive or

living a fuller life because of a living a fuller life because of a Medtronic product or therapy.Medtronic product or therapy.

Medtronic ENT/NT Business SectorMedtronic ENT/NT Business Sector

ENT & Neurological Technologies productsENT & Neurological Technologies products>$600 million in sales>$600 million in sales1900 total employees1900 total employeesFive manufacturing facilitiesFive manufacturing facilitiesHeadquarters – Jacksonville, FLHeadquarters – Jacksonville, FL17,000 finished goods items17,000 finished goods items

XPSXPS®® Microdebrider System Microdebrider System

NIM ResponseNIM Response®® Nerve Monitor Nerve Monitor

Image Guided SurgeryImage Guided Surgery

Merocel/MerogelMerocel/Merogel®® Dressings and PackingDressings and Packing

Otology/HearingOtology/Hearing RestorationRestoration

Sales RevenueSales Revenue

Disposables Equipment

20%

80%

USA Asia Pacific Americas Europe

23%

4%8% 65%

Medtronic ENT/NTMedtronic ENT/NTSalesSales

How Did We Get Involved?How Did We Get Involved?

Best practices review 1998 and early 1999Best practices review 1998 and early 1999

Malcolm Baldrige and Shingo modelMalcolm Baldrige and Shingo model

Shingo model included lean thinkingShingo model included lean thinking

Shingo conference – lean presentations, Shingo conference – lean presentations, May 1999May 1999

Our Initial StepsOur Initial Steps

1. Study lean thinking

2. Sell strategy to top management

3. Teach others about lean

4. Develop implementation plans

5. Consult an expert

6. Change the operations organization

7. Conduct value map training

8. Start value mapping

Consult the ExpertsConsult the Experts

Dr. James P. Womack, Dr. James P. Womack,

Founder Lean Enterprise Founder Lean Enterprise

InstituteInstitute

Lean Enterprise Institute Training –

“Training to See” from

Learning to See – Value Stream Mapping

by Rother and Shook

Lean at Medtronic ENT/NTLean at Medtronic ENT/NT

Tool BoxTool Box

LEANLEAN

ValueValue MappingMapping Visual Visual

MgmtMgmt

StandardStandardWorkWork

KanbansKanbans

HeijunkaHeijunkaMistake Mistake ProofingProofing

5S5S

TrainingTraining

KaizenKaizenEventsEvents

SixSixSigmaSigma

SMEDSMED

Our ResultsOur ResultsLead Time CostLabor Required Space Inventory Defects

Customer ResponsivenessCapacityEmployee Satisfaction

What Does Lean Require?What Does Lean Require?

PassionPassionKnowledgeKnowledgeCommitmentCommitmentFocusFocusDisciplineDisciplineExecutionExecution

““If you can’t describe what If you can’t describe what

you are doing as a process, you are doing as a process,

you don’t know what you’re you don’t know what you’re

doing.”doing.”

--W. Edwards --W. Edwards

DemingDeming

Our Approach…Our Approach…Start with the top level company objectives…Start with the top level company objectives…

Then apply tools…Then apply tools…

1.1. Policy DeploymentPolicy Deployment- Create alignment with objectivesCreate alignment with objectives- Get the right things done to achieve objectivesGet the right things done to achieve objectives

2.2. Value MapsValue Maps- Ensure understanding the whole value stream- Ensure understanding the whole value stream- Identify specific improvement opportunities- Identify specific improvement opportunities

3. Assign Projects, Rapid Improvement 3. Assign Projects, Rapid Improvement Events and KaizensEvents and Kaizens

The Toyota WayThe Toyota Way

Continuous ImprovementContinuous Improvement

Respect for PeopleRespect for People

LeadershipLeadershipDefinitionDefinition

- “Leadership is a function of - “Leadership is a function of knowing yourself, having a vision knowing yourself, having a vision that is well communicated, building that is well communicated, building trust among colleagues, and taking trust among colleagues, and taking effective action to realize your own effective action to realize your own leadership potential.”leadership potential.”

----Warren BennisWarren Bennis

Leadership 10Leadership 10PPss

1. P1. Probityrobity

2. P2. Peopleeople

3. P3. Passionassion

4. P4. Persuasionersuasion

5. P5. Persistenceersistence

6. P6. Process thinkingrocess thinking

7. P7. Problem solvingroblem solving

8. P8. Performanceerformance

9. P9. Policy olicy deploymentdeployment

10. P10. Possibilitiesossibilities

Leaders are visionaries with a Leaders are visionaries with a poorly developed sense of poorly developed sense of fear and no concept of the fear and no concept of the odds against them. They odds against them. They make the impossible happen.make the impossible happen.

-Dr. Robert Jarvik-Dr. Robert Jarvik