View
0
Download
0
Category
Preview:
Citation preview
Love & Lean
George Saiz
President & CEO
Association for Manufacturing Excellence
Early Years
• First Job – General Helper @ $2.00/hr.
• Early management thoughts
– “Create an environment where they don’t want to miss
what’s going on”
• Education at night (BSBA, MBA)
• General Helper to General Management
– (9 promotions in 17 years)
$2.25/hr.!
Introduction to Lean
• 1992:
• Lot size of 1…Bottlenecks (Herbie)
• Lego Simulation
Love & Lean - Overview
• Journey towards developing a People-Centric
Culture
• Connecting the heart of engaged employees
with the tools of Lean
• Results you can see
• Summarize what has been learned
Purpose
To be a TEAM
Dedicated
Innovative Solutions
Improve Customer Outcomes
June 2013
1st AME CEO Summit on People-Centric Leadership
A culture where every day everyone goes home
fulfilled by pursuing excellence and where everybody
flourishes.
People-Centric Leadership
3 key takeaways + 1:
1. Very intentional efforts towards employees
2. “Entrusted”
3. PCL looked different at each company
Overriding thought: we have their hands, but we could have had their minds & their hearts if we had just known how to ask
Self Examination
1. Great programs for employees – episodic in
nature
– Quarterly All Employee Meetings
– Picnic, Halloween Party, Christmas Party, Chili Cook-off, Ice Cream Truck, Hot Dogs
– Recognition – Company Bucks, Living Our Mission
– Hands-on Product Training
Self Examination
2. Leadership training consisted of educating
managers to go out and do something to our
employees
– 6 one-day trainings / year on leadership
3. We never asked our employees what they
wanted!
The Trail after their Minds & Hearts
Leadership Training - February 2014
What will people-centric look like here?
• 42 leaders gathered – top management to production leads
• 3 components of the day
– Colonel Arthur Athens: “What’s love got to do with it?”
– Dissect his message and explore the behaviors of people-centric leaders
– Go to the Gemba…ask the employees what should PCL look like here?
Synthesized the day’s data…
• Communication
• Care
• Alignment
• Development
Goal Statement established:
“Engaged when we are here…
fulfilled when we go home:
New Name
“People-Centric Culture”
• Why Culture:
– Leadership is really a relationship
– Goal is to educate both sides of the equation
– Strove to make it daily…not episodic
– Wanted it to be employee driven
Communication Skills Training Seven Interlaced Modules
ALIGNMENT
LINE OF SIGHT MANAGEMENT - PDCA CYCLE
Line of Sight Evolution
Teams and
Framework
Company Culture, Strategic
Framework, Teams and
Functional Performance
Plans Introduced
Tracked, Functional
Area Plans Driven by
Routine Follow Up
Focused on Results
(Company,
Operational,
Individual)
AME
Hitting the Target!!!
Independent Units Focused, Clear Business
Direction
Behaviors Identified
and Organization
Energized
Smart and Sharp,
Lean and Mean
Vision and Mission
Driven
Development, Benchmarking &
Wellness
Pillar
• Development
• Benchmarking the Best
• Wellness
Program
• Mentoring & Coaching
• Autoliv, Danaher, AME
• Lincoln Industries Model
Pillar
• Development
• Benchmarking the Best
• Wellness
Minds & Hearts…to Hands
• Equip all employees with a standardized problem solving tool – A3
• How?
– Trained all employees in the A3 process
– Hands on workshop with real problem tackled
– 3 year incentive plan launched
A3 Incentive Plan & Evolution
• Payout if overall company goal achieved and
individual goal achieved
• Year 1: One A3/employee/quarter
– “On anything”
• Year 2: Two A3’s/employee/quarter
– Department identified focus area of improvement
• Year 3: Three A3’s/employee/quarter
– Introduced Team credit
Added in “2 Second Lean”
• Department read “2 Second Lean” as a team
• All team members – 15 minutes daily at
beginning of shift
• On my walks I reviewed their A3 submissions
• Motivated me to start daily “2 Second Lean”
One of my “2 Second Lean” Improvements
2 Second Lean – 09/15/14
BEFORE AFTER
Business cards in folder Cards stored electronically through App
A3 Results
A3’s become the standard problem solving tool
Everyone is thinking “root cause” and asking…”what problem are we trying to
solve?”
Over 1200 A3’s completed in Year 3!
Shining Example
• Over that time period, insourced flagship product
and reduced COGS by $1.8M annually with
incremental improvements
Minds…Hearts…Hands
Another Example of Results – Autoliv
• 100,000 Kaizens in one year with 1100 employees
– ~91 completed Kaizens per employee!
• In 2012, largest plant had 5X Productivity of 1995 with 3X product complexity
Copyright © 2016 Gallup, Inc. All rights reserved.
HERE’S HOW Engagement Links to
Business Outcomes and why it Matters
27
-37%
-25%
-65%
-28%
-48%
-41% -41%
10%
21% 22%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Business units in the top quartile of
engagement have 21% higher productivity than their bottom quartile
counterparts and 48% less safety incidents.
Turnover
Absen-teeism
High-Turnover
Orgs.
Low-Turnover
Orgs. Shrinkage Safety
Incidents
Patient Safety
Incidents Quality
(Defects)
Customer Metrics
Produc-tivity
Profit-ability
Meta Analysis Outcomes: Top vs. bottom quartile work units
Firms of Endearment (FoE)
Investor Returns Over Time
Summary
• People-Centric Leadership – where everybody
flourishes
• Leaders are “entrusted” with these lives
• People-Centric Leadership will look different in
each company
• Minds…Hearts…Hands
Summary (cont’d)
• Current State of Leadership / Training:
– Episodic
– Only educating half of the relationship
– Never asked our employees what they wanted
• Shared the 6 Pillar approach:
– Communication, Care, Alignment, Mentoring & Coaching, Benchmarking the Best and Wellness
Summary (cont’d)
• Equipping, Incentivizing, Turning Loose!
• A3 Progression 1,200 completed in one year!
• Business Results that differentiate you from the
competition!
Wrap Up
• Enterprise Excellence + People-Centric
Leadership / Culture can transform your
company and the lives of your employees
• The transformation of your company
cannot happen without the transformation
of your employees!
One Last Quote
“Employees are not our company’s
greatest asset…they are our company!”
Bob Pritzker The Marmon Group / Colson Associates
Thank You!
Your opinion is important to us!
Please take a moment to complete the
survey using the conference mobile app.
Session No: ThP/42
Love & Lean
George Saiz
AME
gsaiz@ame.org
Recommended