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Implementing a Sustainable Continuous Improvement Process at Andersen Corporation

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Article created with A3 thinking for Target magazine about continuous improvement process and tool at Andersen Corporation

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Page 1: Implementing a Sustainable Continuous Improvement Process at Andersen Corporation

Which approach should we take in order to continuously improve the process?

Kaizen: Continuous and incremental improvement to remove waste, variation and overburden. Teian Kaizen: System used for generating and implementing employee ideas with a special focus on the rate of implementation rather than the dollar value of the ideas.Waste: Everything that is not adding value in the eyes of the customer (think TIM WOOD: Transportation, Inventory, Motion, Waiting, Overproduction, Over processing, Defects)

Single Point Lesson: Implementing a Sustainable Continuous

Definitions

Situation• The current suggestion system has been in use since the 1960’s• 379 suggestions per year from the 1,500 employees, with 125 implemented (0.1 per employee)

• The process:

Problem• Many mistakes and flow interrupters keep recurring everyday• The process is unstable and the expected production output is unpredictable• Many “solutions” are put forward with fingers pointing in many directions

• In the mean time…

Reflection and analysis

• Be people focused: use “5 Who’s” to hold employees accountable

• Train 16 year seniority employees on product specifications for the nth time

• Replace supervisors and teamleaders if results are not achieved

• Hire more engineers to improve operations

• Be process focused: use “5 Why’s” to find the root cause of the problems

• Develop employees into problem solvers with PDCA expertise

• Redefine supervisor roles as teachers in waste, variation, overburden elimination

• Functional support and leaders using supportive leadership approach

This Way

Not There!

Engineering

Operators just need to follow Standard

Work!

Quality

Operators need training to do their job

TRAININGTRAINING

Some people

If only supervisors were holding operators

accountable for mistakes!

Supervisor

I am tired of playing whack-a-mole with the

same problems everyday

Employee

I work hard everyday. I became numb to these

recurring problems

Employee fillsout suggestioncard

Supervisorreviewsand signs

Managerassigns anEngineer

Engineerevaluatesfeasibility

EngineerManagerapproves

AdministrativeAssist. loadsthe database

Committeefor finalreview

Engineerimplementssuggestion

Financial auditfor potentialreward

Improvement Process at Andersen Corporation

Situation

Objectives

Trial solution

Situation

• More than four thousand ideas implemented per year (6 per employee)• Employees are asking to be involved in quality circles and kaizen activities• Teams are exchanging ideas, discoveries, and best practices during lunch hours• Process reliability (OEE) is consistently improving

Outcomes

ResourcesDidier Rabino, Andersen Corporation ([email protected]) David Mann, DMLC ([email protected])Creating a Lean Culture (ProductivityPress.com)

Business:• Eliminate recurring issues to meet business goals• Reach predictable output in terms of quantity and quality• Improve value proposition

People:• Feel good about contribution• Develop new skills• Feel respected and valued• Easier job to do• Have fun!

Leaders are teachers: on-going PDCA coaching

Supportive Leadership

0. Blank card is retrieved by the employee Card is documented with idea, and expected quantitative result1. Card placed into idea box2. Supervisor approves idea. If project, card is placed in Engineer bucket

Improvement is structured as a set of experiments

Supervisors &Team Leads

ManagersProduction Employees

Supervisors &Team Leads

ManagersProduction Employees

LEADER’S ROLE EMPLOYEE’S ROLE

Three options:

1. Adjust & experiment again

2. Adopt the change3. Abandon the idea

Three options:

1. Adjust & experiment again

2. Adopt the change3. Abandon the idea

• Experiment – test the change

• Experiment – test the change

• Develop idea• Determine

expected result

• Develop idea• Determine

expected result

• Monitor & Measure• Analyze gaps between

actual & expected

• Monitor & Measure• Analyze gaps between

actual & expected

• Identify the problem• Define current situation• Analyze potential causes

• Identify the problem• Define current situation• Analyze potential causes

Act Plan

Check Do

GRASP THESITUATIONThree options:

1. Adjust & experiment again

2. Adopt the change3. Abandon the idea

Three options:

1. Adjust & experiment again

2. Adopt the change3. Abandon the idea

• Experiment – test the change

• Experiment – test the change

• Develop idea• Determine

expected result

• Develop idea• Determine

expected result

• Monitor & Measure• Analyze gaps between

actual & expected

• Monitor & Measure• Analyze gaps between

actual & expected

• Identify the problem• Define current situation• Analyze potential causes

• Identify the problem• Define current situation• Analyze potential causes

Act Plan

Check Do

GRASP THESITUATION

THE CONTINUOUS IMPROVEMENT BOARD PROCESS

3. Team selects ideas to do (max 5 on the board)4. Employee experiments and checks result against plan5. Idea is adopted and $2 are banked for the team If necessary documents (std work) are updated… Team spends $ for food, party or goodies

Focus on own station and gaps in business goals

OPERATOR

TEAM LEADER

SUPERVISOR

PLANT MANAGER

ENGIN

EERI

NG & M

AINTE

NANCE

FULF

ILLM

ENT

SAFE

TY &

HUM

AN R

ESOUR

CES

MANAGER

Protect Std workand supportits improvement by removing:

• waste• variation • overburden