Why Are Major Initiatives Not Sustained? Bashing Barriers & - - PDF document

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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

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Quality

90%

Unit Cost

25%

Inventories

90%

Lead Times

90%

JIT Revenue 60% Floor

Space 50%

Actual Results

%

90% 25% 90% 90% 60% 50%

I M P R O V E M E N T

25%

LOHICA ! Not Another

Why do 68-70% of Major Initiatives Fail?

Program!!

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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 Staff Training Developed a Vision Middle Management (Team & Group Leaders) Training

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Prepare our Team Members for Change

Team Building Training Improvements are Measured Teams Meet to Sustain Gains and Improve Lean Training Teams are Evaluated and Gains are Celebrated Rapid Improvement (Kaizen) Event (3-5 days)

Vertical (Silo) v. Horizontal Thinking

Sales Operations Quality Procurement Planning & Logis Human Resourc Finance New Product D stics ces

Supplier Customer

Development

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Involve both – the Supplier & Customer

Supplier Us

Extended Process

Involve Customer & Supplier in a Synchronous Organization

Our Supplier Our Manufacturing Process Our Cust.

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Not only External - become a synchronous

• rganization 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?

Are We Are We Are We Are We How do we get ‘buy-in’? Cultural Change . . . . . . Are We Are We Competitive In Competitive In Cost Cost, , Quality Quality, and and Responsiveness Responsiveness? . . . . . . Are We Are We Competitive In Competitive In Cost Cost, , Quality Quality, and and Responsiveness Responsiveness? We had a Burning Platform

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Why

Why Do We Require So Much Sq. Footage? Do We Require So Much Sq. Footage?

We were Not competitive!

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 Are Up Are Up times Lower? times Lower?

Why

Why Are Up Are Up-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 8 Philosophies Concepts Theories

Barriers to Improvement

NIH NIH Politics Politics Resistance to Resistance to Change Change Mixed Mixed Signals Signals Lack Lack

• f
• f

Trust Trust Skepticism Skepticism Lack of Lack of Commitment Commitment Inconsistent Inconsistent Direction Direction

Barriers Roadblocks

Changed Work Practices

Why do we resist change?

• Gets Personal –

“Something is wrong with me!”

• Fear of the Unknown

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We wanted our team members to We wanted our team members to discover that constructive change was discover that constructive change was

So….

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 As a team, we now had a plan to become As a team, we now had a plan to become titi d h d b t i t t d titi d h d b t i t t d

We owe it to ourselves to….

competitive and we had a robust integrated competitive and we had a robust integrated 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 R i Th B i A d R dbl k R i Th B i A d R dbl k

Removing The Barriers And Roadblocks

Removing The Barriers And Roadblocks

Challenging Past Practices

Challenging Past Practices

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Philosophies Concepts Knowledge

Break-through

Barriers Barriers Barriers Barriers

Skills

Concepts Theories Understanding Changed Work Practices 10% Of What We Hear

10% Of What We Hear

We developed a lean training program – We learn and understand:

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10% Of What We Hear

10% Of What We Hear

15% Of What We See

15% Of What We See

We Learn & Understand

15% Of What We See

15% Of What We See

10% Of What We Hear

10% Of What We Hear

15% Of What We See

15% Of What We See

We Learn & Understand

15% Of What We See

15% Of What We See

20% Of What We Both See & Hear

20% Of What We Both See & Hear

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10% Of What We Hear

10% Of What We Hear

15% Of What We See

15% Of What We See

We Learn & Understand

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

10% Of What We Hear

10% Of What We Hear

15% Of What We See

15% Of What We See

We Learn & Understand

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

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10% Of What We Hear

10% Of What We Hear

15% Of What We See

15% Of What We See 20% Of Wh t W B th S & H 20% Of Wh t W B th S & H

We Learn & Understand

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 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 g ot e s e ab ed ou bus ess to ac e e eac g ot e s e ab ed ou bus ess to ac 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’

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Principles

• Manage the Business as a System
• Create a Learning Organization

Create a Learning Organization

• Develop Process Excellence
• Integrate System Thinking