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American Manufacturing Strategies SummitSanta Ana, California
“Deploying Operational Excellence Across All Aspects Of A Global Operating System ”
Bob RichardsVice President, OperationsNovember 17-18, 2015
Bob RichardsCareer History Vice President Operations Global Director Operational Excellence Director Enterprise Lean-Sigma Business Entrepreneur Plant Manager
Keynote Objective
“Deploying Operational Excellence Across All Aspects Of A Global Operating System ”
Kennametal
• Headquartered in Pittsburgh, Pennsylvania• Seven Engineering Centers• 72 Manufacturing Locations on 5 continents• 13,000 employees, 13 languages• Customers in over 60 countries
Bedford, PALatrobe, PA
Fürth/Essen, Germany
Rogers, AR
Bangalore, India
Shlomi, Israel
Tianjin, China
Johnson, City, TN
Kennametal At A Glance
~ $3.0 Billion
80,000 +
13,000 +
1,700 +
40%
60 +
<3%
2014 Revenues
Active Customers
Employees
Patents
% Revenues From Products < 5 years
Global Countries
Largest Single Customer
… Serving some of the World’s Largest Companies
Product: Tungsten Carbide Cutting ToolsStructure: Vertically Integrated
Applications
Global Operating System – The Why!
“How we do our work!”
Site Assessments
Gap Analysis
• Drives Standard Approach• Validates Operating System• Utilize Operating System
Better Practice Sharing
Process Improvement Work Plans• Common Solutions
• Standard Processes
Zero Complaints Scorecard Improvement Frequent Feedback Preferred Supplier Status
GROWTH
Aligned Customer & Internal
Scorecards
Satisfaction
Categories:
100% Safe
100% Customer Satisfaction
100% Quality
100% On Time Delivery
100% Employee Engagement
100% Environmental Sustainment
100% Financial Performance
100% Continuous Improvement
Challenge: Deploy a Standard Manufacturing Operating System with focused attention on the customer!
BronzeSilver
GoldWorld Class
Current Baseline FY14
Future State
Categories:
Global Champions100% Safe – Miller 100% Customer Satisfaction – Pantano100% Quality – Quabeck100% On Time Delivery – Sylvester100% Employee Engagement – Bentley100% Environmental Sustainment – Miller100% Financial Performance – Buettner100% Continuous Improvement – Bird
Executive Champion – Richards
Global Operating System – Categories & Levels
Performance Levels
Our Path Forward
2014-16 2016-17 2017-18 2018-Forward
Crafting our systems to support business growth
Customer Satisfaction
Quality
On-Time Delivery
EHS
Employee Engagement
Finance
Continuous Improvement
Bronze Silver Gold World Class
FundamentalProcesses in
Place
Effective ExecutionManufacturing
Operating SystemProcesses
Effective Execution
Throughout Kennametal Value
Stream
FlawlessClosed-Loop End-To-End Execution with
Kennametal CustomersCategories
Plant Level Metrics by Category
Monthly Compliance Output Metrics Scorecard for all Categories
Plant Level Heat Map allows detailed drilldown problem solving.
Category Goals:100% Safe100% Customer Satisfaction 100% Quality 100% On Time Delivery 100% Employee Engagement100% Environmental Sustainment100% Financial Performance100% Continuous Improvement
Conduct Assessment
GAP Analysis
GAP Closure PlanWork Plan
Transformation Projects
World Class Journey Utilizing Continuous Improvement Tools
Establish Baseline
Determine which core Business Processes are being followed
Identify GAPs
Identify processes that are missing or not being utilized
Develop prioritized action plan to close GAPs
Plan ensures GAPs will be closed
Develop implementation plan to close GAPs
Ensure sustained gains
Conduct projects within each element; ensure intent of criteria met
Establishes stable processes, global consistency and a solid foundation for growth
Systematic Continuous Improvement approach
PDCA
Global Operating System Timeline
January FY13• Developed ISCL K100
Operating System• Developed SharePoint
information Hub
July FY14• 57 facilities
introduced to ISCL K100
June FY14• 6 plants scheduled
for FY14 validation
4th qtr FY15• 37 facilities
validated Bronze
1st qrt FY16• Silver Level piloted
in each region
FY13
FY19Metrics
Scorecard
Assessment Process
World Class
Operating System
FY16• Silver Level
deployment
FY16• Silver Level
validation
FY17• Gold Level
deployment
FY18• Gold Level
Validation
FY19• World Class
Current State
Achieved Bronze!
Update: July 2015
Bangalore METBarcelonaBedfordBedford WarehouseBoksburgChilhowieCleveland DCEbermannstadtEssenEssen METFallon METHenderson METIndaiatubaIrwinKoenigseeLichtenauMistelgauMistelgau METNabburg FMNabburg SteelNeunkirchen DCNewportNew Castle METNew MarketOrwellRockfordRogersRogers METSchongauShanghai SintecShlomiTianjinTraverse CityVictoriaVohenstraussXuzhouZory
FundamentalProcesses in
Place
Effective Execution
ofManufacturing
Operating System
Processes
FlawlessClosed-Loop End-To-End
Execution with Kennametal Customers
Effective Execution
Throughout Kennametal Value
Stream
37LOCATIONS
Minimum Score of 80 Maintain 80 for Six Months
Performance Levels
BronzeSilver
GoldWorld Class
Global Operating System Video
A World-Class Operating System = Growth
Video Insert
Key Takeaways
•Define and assure Fundamental Processes are in place
•Effectively execute and measure compliance to the standard that has been established
•Expect sustainment issues and be prepared with countermeasures
•Have the Customer be the central focus of the operating system
•Measure and Celebrate Milestones
Questions
