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Presented by Richard Kelly
CeeDCulture Change ½ Day workshop
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SustainableBusiness
Improvement
SustainableBusiness
Improvement
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Where is it applicable
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“This is excellent, I don’t often seeimprovement as good as this.”John de Poot, Manager, Global ContinuousImprovement, HJ Heinz
“The IMPACT Masterclass pilot atViridor has been a great success.Damon Brierley, ITOO Manager, Viridor
“The significant lift in OEEgenerated by the IMPACTProgramme produced two extradays of cylinder head productionper month.Gef Keys, Continuous Improvement ManagerMontupet, UK
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Motivation andcapability
Motivation andcapability
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ChangeChange
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“It is easy to take part, difficult to beworld class”
“If you always do what you’ve alwaysdone then you'll always get what you’ve
always got”
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“We’re throwing away old thinking”
“The world is changing. Once there was ‘waste’.Now there are potentially valuable resources thatwe must all challenge ourselves and recover”
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Stuart Gibbs,AZ
‘OperationalExcellence’ is the onlygame in town… thereis no Plan B
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Lean / Operational Excellence /Continuous Improvement
Culture
Lean / Operational Excellence /Continuous Improvement
Culture
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Lean
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Operational Excellence
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Shipping
YardI
II
200 G 200 G 350 G Ducts
ASDMetals Co.
Sheets
Punch
1 T500
Guillotine1
Spinning Cell
1
Galv. Process
1
Drill and Tap
1
2,400 pcs/week-1800 “G”-600 “P”
2 Shifts
TT = 180 sec.
Assembly
0.5 0.5 days 0.5 days 1 day 0.5 day5 sec. 120 sec. 630 sec. 45 sec. 40s
Lead Time=4 daysValue Creating time=800 sec
DailyMilk Run
Sheet
Cut Blanks
Cut Blanks
SMED
KANBAN
KANBAN
KANBAN
FIFO
OCT = 20 mins24 Hour contract200 WIP
OCT = 40 secC/O = 0REJ = 7%U/T = 100%2 Shifts
27,600 sec. Avail.
OCT= 39 secC/O = 10 minREJ = 4%OEE= 40%2 Shifts
27, 600 sec Avail.
MCT= 3 secondC/O = 10 mins maxREJ = 3%OEE = 90%1 Shift
27,600 sec. avail.
OCT = 208 secC/O = 10 minREJ = 5%OEE = 60%2 Shifts
27,600 sec. Avail.
FIFOFIFO
FUTURE STATE FOR RUNNERS
pull
Planning Board
TPM
Batch Kanban
FIFO
pull
pull
18x7
Paint. Process
1
6x718x7
pull pull
Operational Excellence
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Transport Over-Processing DefectsInventory Motion Waiting Over
Production
Operational Excellence
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Operational Excellence
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Operational Excellence
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Visual Management
Operational Excellence
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Operational Excellence
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Operational Excellence
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OperationalExcellence
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Killer Questions& Killer
statements
Killer Questions& Killer
statements
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Given that the organisation got itself into thissituation, how defensive will it be and resistant togetting itself out?
Will leaders & teams be flexible and open enoughto change their own embedded practices?
Change-Readiness - Killer QuestionsWhat is the question that operational Excellenceis the answer to?
How long will the person in charge be in charge?
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Change-Readiness - Killer StatementsWhat got us here won’t necessarily get usthere
The concept of Lean is logical, Resistance oradoption is emotional
Not everyone here will be willing or able tomake the transformation
Being Prepared for change is key to success
Being prepared for change means sharingthe same burning platform
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Awareness‘Something is going on’
Action‘I’m going to support this change’
Testing‘I’m going to give it a chance, try it out’
Positive perception‘I like what I see’
Engagement‘I can see the implications for me’
Understanding‘I know what it is’
Action‘I’m going resist as long as possible’
Testing‘I’m going to challenge what I see’
Negative perception‘I don’t like what I see’
Control and policeCompliance
‘I’m doing it because I have to’
Encourage and guideOwnership‘I’m doing it because I want to’
Commitment to change
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What is aParadigm shift?
What is aParadigm shift?
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Change-Readiness – Paradigm Thinking
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“You cannot change theoutcome by using the
same thinking that causedthe problem in the first
place.”
Albert Einstein, 1950
Change-Readiness
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ParadigmShift
Change-Readiness – Flat Earth
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“The greatest danger for most of us is notthat our aim is too high and we miss it.
Rather, it's that we aim too low and wereach it."
Michelangelo (1475-1560)
Change-Readiness
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Creating a highperforming team
culture
Creating a highperforming team
culture
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Why we think likewe think
Why we think likewe think
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Heroic Leadership Post-heroic Leadership
•Be the expert - have all the answers
•Be in control
•Help by solving problems
•Don’t show weakness
•Know what’s going on in detail
•Have high (my) standards.
•Know how to use experts – how to get to the answers
•Be in control – but not tightly; accept uncertainty
•Help others to solve their own problems•Trust others to know the detail – keep a broadoverview
•Strive for high collective (our) standards.
•Be human
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Creating a VisionCreating a Vision
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Objectives Goals Strategies Measures
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UnitOBJECTIVES
(words)
UnitGOALS
(Numbers)
CEO negotiates with SeniorManagement Group to agree unit
Objectives and Goals
Which Become ‘O’ and ‘G’for Level 2 teams
LEVEL 1
UnitSTRATEGIES(how-words)
UnitMEASURES(Numbers)
LEVEL 1
Level 2OBJECTIVES
(words)
Level 2GOALS
(Numbers)
LEVEL 2
SET LEVEL 2STRATEGIES &MEASURES
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Objectives Goals Strategies
1. Improve reliability and reducemaintenance costs using Lean RCM process
To transformwaste into highqualityrecyclables, rawmaterials orenergy whilstproviding a highlevel of service tothe GMWDA in asafe, compliantand profitableway with anengagedworkforce
Productivity cost per tonneof waste processed reducedfrom £120 £100/tonne
Maintain the contractdiversion target at 90%
Increase income fromrevenue streams by 10%
Continue to operate withinthe contracted performancecriteria 100% of the time
Improve safety &environmentalperformance via legalcompliance from 5 OOC <3OOC per year RIDDOR from4 <2
Improve employeeengagement from 75% to ascore of 92% in GALLUPQ12
Overall EquipmentEffectiveness (OEE)
Landfill diversion rate
Number of Contract Issues(CIMS)
Plant utilisation %
Accident & incident statistics
EA reportable incidents rate
Engagement, turnover %
Measures
2. Introduce and instituionalise CI processes(Lean RCM, PPI, RCA)
3. Introduce and instituionalise operationalreview process
4. Introduce and institutionalise anorganised, safe and efficient workplace
5. Re-organised team structure to facilitateintegration and deployment of the newskills into daily roles
6. Involve the wider workforce in the Leanjourney and teach new skills
7. Create an organisational culture that isready for change, stimulates change anddevelops people
8. Create a culture of zero safety incidents
Operational costs (energy,materials, contracts, people)
% people involved in lean withnew skills9. Handover of facilities
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Daily Process ReviewDaily Process Review
Site Weekly Review MeetingSite Weekly Review Meeting
Area Monthly Review MeetingArea Monthly Review Meeting
Operations MonthlyReview Meeting
Operations MonthlyReview Meeting
Area OGSMArea OGSM
RegionalOGSM
RegionalOGSM
CompanyOGSM
CompanyOGSM
Market
Customers
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why change fails& Creating
successful change
why change fails& Creating
successful change
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Change-Readiness - Harvard why change failsHarvard University Review:
• Did not create a sufficient sense of urgency• Did not create a powerful leadership coalition• Understanding the need for a clear vision• Allowing too much complexity• Under Communicated by a factor of 10• Not planning and getting short-term wins• Did not celebrate short term wins• Declared victory too soon (Sustainability)• Not anchoring changes in culture
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Sense ofurgency
Communicatethe vision
Vision &StrategyDon’t let up
Anchorchanges
in culture
Short-termwins
Guidingcoalition
Empowerothers to act
John Kotter
Creating successful change
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Sense ofurgency
Guidingcoalition
Vision &Strategy
Communicatethe vision
Working on thesedefrosts the ‘status quo’
Empowerothers to act
Working on theseputs new practices in place
Working on thissecures success
Anchorchanges
in culture
Short-termwins Don’t let up
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