Focused BenchmarkingCurrent State to Best in Class

Richard WiltseMaster Black Belt

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About Tremco Commercial Sealants and Waterproofing –

◦ North America's foremost supplier of sealant, weatherproofing, and passive fire control solutions for commercial and residential construction and industrial applications.

◦ Serve products and services to architects, engineers, home

builders, contractors and building owners worldwide.

◦ Part of Tremco Inc. held by RPM

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About AME Cleveland Lean Consortia

Started in 2014 SGS Tool, Rockwell Automation, Graftech, and Tremco. 2nd wave: Goodyear, SSP, Preformed Line Products, Qualtech. Recently added MTD

Our Vision: The AME Cleveland Lean Consortia Vision is to provide our member companies with a platform for Benchmarking, Learning, Sharing and Growing our collective Lean and CI programs. We will accomplish this through creation of a collaborative learning environment in which Lean Leaders can learn, implement, and share their ideas and discoveries.

Benchmarking, Roundtable discussions, Workshops

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Richard Wiltse Tremco Commercial Sealants & Waterproofing

Master Black Belt developing Lean Six Sigma teams and continuous improvement culture across organizations

Founded the AME Lean Consortia Cleveland chapter

Education:◦ B.S. – Illinois State University, ◦ MBA – Shenandoah University, ◦ Master Black Belt – Ohio State/MoreSteam.com

Background

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Good is the Enemy of Best

Best is the Enemy of Better

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“We still haven't played Madison Square

Garden. That's a benchmark. Something will

have gone seriously wrong if we don't play

Madison Square Garden for this album.”

Dan HawkinsEnglish Rock Guitarist

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Benchmarking:

The continuous process of searching, identifying, and adapting new ideas for methods, practices, and processes….

The continuous process of measuring our products, services, and practices against the toughest competitors or industry leaders.

The search for Best Practice !

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The simple goal of Benchmarking:

“Actionable Intelligence”

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Has your company ever performed a formal Benchmarking event?

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Presentation agenda

Brief history of Benchmarking Types of Benchmarking Benchmarking definitions and lingo Why Benchmark? Critical success factors Focused Benchmarking

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Brief history of Benchmarking

Pre industrial revolution: craftsman benchmarked each other for better methods

Late 1800’s Fredrick Taylor encouraged comparison of work processes and standardization

WW2: Companies benchmarked each other to help meet production demands as well as standards for pay, safety, etc

1950’s Taiichi Ohno / Shigeo Shingo benchmarked American manufacturing….grocery store replenishment !

1970’s Xerox Corporation performed competitive, process, and functional benchmarking

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Benchmarking

Prior to the Xerox event, benchmarking was an art Xerox brought benchmarking to a science

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Xerox

Patents ran out in 1975 Foreign competition entered the market with small

personal copiers, as opposed to large industrial copiers Competition experienced a steady gain in market

share... Xerox losing business one page at a time! New products taking twice as long in development Xerox manufacturing cost equal to sales price of

competition Declining ROA: 25% to 5%

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Xerox

Created a team of managers to investigate best practice of other companies

Xerox turned to others …◦ Sears: inventory management◦ LL Bean: warehouse operations◦ American Express : Billing and collection◦ Toyota: Quality Management◦ Hewitt Packard : R&D

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Xerox Benchmarking results – early 1990’s

Customer Satisfaction up 38% Customer complaints down 60% Service response time down 27% Inventory costs reduced 66% Increase in sales Decrease in cost per labor hour Won Malcom Baldridge award

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Types of Benchmarking

Strategic: Long term strategies. Breakthrough opportunities Competitive / Performance : Products, Competitive product

designs Process: Benchmarking a general process such as

Innovation, Six Sigma, or Lean Functional: Compare functional area such as Purchasing

practice Internal: Within company such as a sister plant External: Outside the company Generic: Outside one’s own industry International: Outside your country

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Definitions

Best Practice: The set of activities tasks, resources, training and methods that created the observed level of performance◦ Process expert validation, otherwise subjective

Entitlement: The best level of accomplishment your current process can achieve – no defects, no hiccups, no delays, etc.◦ Represents the gap between original process design and current

process performance Baseline Analysis: Initial comparison of performance

data across all benchmarked processes. ◦ Highest average sustained performance

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Definitions…. cont

Gap analysis: The evaluation of the performance difference between current internal state at entitlement and benchmark performance at best practice◦ Gap analysis may include confidence intervals

Critical Success Factors: Vital few factors that resulted in Best Practice as measured by quantifiable indicators of process performance and capability in key business processes◦ Effectiveness, efficiency, economy◦ Quality, cycle time, cost

Enabler: The specific activity, method, action, or technique that stimulated progress in one process over comparative processes that lead to identification of best practice◦ Example: Using FMEA in product development

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Why Benchmark?

What does “Best” look like ? How does your current practice stack up? Set realistic goals…allowing for better estimates of

resource allocation Motivational value “Management likelihood value” Easier when others go

first Awareness of hurdles, pains, and enablers required to

make a breakthrough Challenges the status quo Breaks down the “not invented here” syndrome

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Success factors

An active commitment from Management Willingness to change and adapt Know your own process as the baseline for comparison Ability to understand and articulate the gap Use of creativity and innovation on observations made Realization that the competition is likely changing to get better Willingness to share information Relationships with associates in leading companies Continuous benchmarking and commitment to learning!!! Adherence to a benchmarking process Documentation

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“Focused” Benchmarking

Benchmark topic is driven by the needs of the organization and determined semi-annually at board meetings.

Focused on particular Lean topics – Example: Product Innovation, Lean Office, Toyota Kata / Coaching, TPM

Pre-Benchmark survey◦ Research on Best Practice

Pre-Benchmark visit◦ Interviews, Go and see, Facilitation strategy

Benchmark event◦ Participative, facilitated

Post Benchmark Report

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Pre-Benchmark Survey – TPM

Survey questions reviewed by numerous experts: ◦ Consortia facilitators◦ Consultants◦ Local experts◦ Book authors

Piloted

Distributed one week in advance

“What does Best Practice look like ???”

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Thursday, November 05, 2015

Q1: Describe your companies maintenance program.

Answered: 11 Skipped: 0

Q1: Describe your companies maintenance program.

Answered: 11 Skipped: 0

Q5: Do key performance indicators (KPI's) exist for maintenance and are the KPI's being monitored?

Answered: 11 Skipped: 0

Q5: Do key performance indicators (KPI's) exist for maintenance and are the KPI's being monitored?

Answered: 11 Skipped: 0

Q11: Is there an autonomous maintenance program?

Answered: 11 Skipped: 0

Q11: Is there an autonomous maintenance program?

Answered: 11 Skipped: 0

Q17: What percentage of work orders are planned vs reactive?

Answered: 11 Skipped: 0

Q17: What percentage of work orders are planned vs reactive?

Answered: 11 Skipped: 0

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Benchmarking Survey

Allows the organization a preliminary understanding of what Best Practice looks like

The organization sees where they rank relative to other Consortia members as well as Best Practice – Quantifiable Gap Analysis !

Participants in the Benchmarking Study are “prepped” for the event◦ Eliminates “Industrial Tourism”

Identifies key Benchmarking companies for future reference ◦ Survey outside the Consortia

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Pre-Benchmark visit

What are the strengths? What are the weaknesses?

◦ Encourage being humble !! Go to the Gemba Develop Facilitation / Learning strategy

◦ Prep the host company◦ How can I make this a learning experience?

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Benchmarking event

Standard work

◦ Gives the host company a template to work to◦ Events are more efficient and informative◦ Hones in on key deliverables ◦ Provides a baseline for benchmarking improvement

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AME Cleveland Lean Consortia Benchmarking Standard Work Pre-Benchmark Meeting – Facilitator and Host Company

Review Lean history and current progress Review struggles, issues, and focused improvements Develop facilitation strategy

Arrival of attendees to host facility 20 minute networking “Meet and Greet” Coffee and refreshments

Introductions Potential new members Host company tour guides Consortia members

Agenda review – cover today’s agenda including: Plant overview including safety measures Tour Post tour wrap up

Plant overview Primary products Company history Lean history Lean Plan Plant map review Strategic Hoshin planning / Value Stream Maps / Process maps Focus areas – Lean improvements that you would like to show Where is the host company headed with Lean?

Tour Group formation if applicable Operations area review Review of area and primary purpose

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Demonstrate flow and tack time if applicable Review of Standard Work Review of WIP and WIP caps if applicable Review Kanbans where flow cannot be achieved Metric boards and other visuals Review the focus feature and how the host got to where they are ! Review sustainment and Leader Standard Work Allow time for Consortia members to review, discuss, take notes, and absorb

Host company tour wrap up Future Lean Plans and expectations

Post tour briefing What were the top 3 Lean elements the host company is good at? What were the top 3 Lean opportunities you noticed? What did you learn from the Lean focus feature the host presented? What other observations / comments do you have for the host? Host company – what can Consortia members hold you accountable to?

Lunch Host company discretion

Facilitator wrap up Summarize learnings Review upcoming local and regional AME events

Facilitator report Top Lean elements observed – what we liked Top opportunities listed by Consortia members Any learnings from the focus feature Accountability: what further improvements will the host company plan to make?

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Benchmark Facilitator Report

Summarizes key learnings and focus features Archives the event Primary use as a “memory jogger” Can be used as evidence in a change effort Report

◦ Executive summary◦ Agenda◦ Key points with lots of pictures◦ Consortia members review

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AME Cleveland Lean Consortia Key Points of Toronto Benchmarking Event

A review of what the David Mann Lean Management System is and the main elements that comprise the system can be found in the accompanying Lean Management power point.

The group started the tour with a review of “Tier 1” meetings which occur between the work cell Team Leader and the groups Operators. The meeting intent is to:

Review the previous shifts problems Discuss any Standard Work changes or issues Brief review of Quality and Safety metrics Where the cell is at relative to weekly production goals Discuss the Accountability Board and small k board

The Team Leader (TL) thus far is a non-rotating position but this may change at some point in the future. Today about 50% of the TL is spent on supporting the work cell visuals, change-overs, problem solving, operator assignments, and hourly pitch charts. The remaining 50% is spent running a low priority machine or other value added work. The TL is not yet performing audits, but Management hope to get to this sometime in the future.

As with all Tier meetings, the meeting was brief – a 10 minute short discussion. All Tier meetings at Tremco are stand up only. The Tier 1 meeting attempts to push responsibility and authority downward in the organization to the point of execution.

Here we saw the TL reviewing the metrics for safety, quality, quick response (breakdowns), and Standard Work. Also seen in each cell is an Accountability Board for specific continuous improvement tasks.

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Below is a close up of the metrics board. Red indicates that the metric was not reached. Note the Pareto Charts displaying various causes of not meeting the goals. The main metrics on the Tier one board focused on Safety, Quality, Quick Response, and Standard Work.

Below is an example of Tremco’s “small k” board which displays at what stage an idea is at relative to implementation. The small k’s are a vital part of Tremco’s lean efforts and are reviewed in all Tier meetings including the Tier 4. The board serves as both a visual of the ideas submitted but also as a kanban to prevent overflow of ideas that cannot be serviced in a reasonable time period.

The group then proceeded to the Tier 2 meeting. The Tier 2 meeting is primarily between the TL and the TD (Team Developer), as well as Maintenance, Process Engineers, and the Unit

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The following Yokotin Strategy matrix shows the 3- 5 year breakthrough objective (in this case capacity – located at the bottom), the annual policy breakthrough objectives, top level improvement priorities, and finally Targets to improve. Black dots show where relationships exist. Note “TWI Deployment to SVS (Strategic Value Streams) under Target to improve.

Below is the TWI tactical hoshin that helps support the strategic yokotin capacity. The graph below shows the percent people trained – expected vs actual.

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Top Level Improvement Priorities

3-5 Year Breakthrough

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Annual Policy Breakthrough

ObjectivesTarget to Improve

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The final meeting of the day was the weekly Tier 4 meeting between the Plant Manager and his immediate staff and included the topics of:

Strategic initiatives Tactical Hoshin progress to strategic yokotin initiatives High level overview of safety HR review Unit Leader accountability board

Below is the Tier 4 meeting. Note that even at the top level Tier 4 meeting there is a small k board for ideas.

Other visuals - There existed other visuals at Tremco Toronto. Examples include the hourly tracking of cases of cartridges produced at a workcell. The theory behind hourly charting is that barriers to flow are noticed and addressed in a more timely manner.

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Facilitator Report – Consortia Member ReviewConsortia members review:

Process behavior. Not just checking the box, but understanding reasons for activity. Leader standard work: What do leaders need to do different in their work? Tremco leaders have a plan for how

to approach day to day activities and they follow through. They focus on what is happening at the time; during the daily or weekly stand-up meetings. They mentioned “looking at yesterday’s data is too late”.

Leader Standard Work: Also important for transition. When you bring someone new into the role. Broken into Tiers. 1 -4. Each level included appropriate personnel for each Tier and provided the necessary

visibility and action assignment. The Tier 4 was more for Leadership. It was refreshing to see leadership participate in the same process as the line workers. I also liked how they made Tier 4 board visible in cafeteria; to show all employees that the leadership is also committed and accountable.

7S I have not seen the level of commitment to 5S at any other facility in my 30 years experience (Tremco uses 7S, adding Safety and Sustainability). The organization, lack of clutter, visual controls was evident everywhere in the building. Not just the plant floor. The culture seems to be well-established. Click this link to view the first 7S parade at the facility. Tremco 7S Parade

7S. In the maintenance/tool areas. This was incredible. The maintenance staff is typically the toughest sell 9although office employees can be pretty defensive about their “personal” space too. The organization and cleanliness was world class.

7S. In the office. Desks, work surfaces, signs, coat racks, printer supplies. Very well marked and organized. Also in process of 7S on personal computers. Our team received a demonstration of how files are being organized on desktops for consistency between teams. Anyone can find any file they need on anyone’s PC within 30 seconds.

Visual Boards: Well organized. All the same with exception of the production control boards (some piloting of different options are in process). I really liked the small k approach. Was managed as a kanban to prevent overload of ideas which are not being completed. The color-code of red k-cards was good to show linkage between actual problem.

Leader Standard Work: Very tough to do. Have gone through three different iterations to get to current state. Still have some work to do.

Leader Standard Work: OK to change as needed for improvement. Best management practices. Even OK to stop doing, but must be planned and have reason.

Leader Standard Work: Based on audits, not check-the-box. The audit questions will drive discussions; not just open ended chatting.

Hoshin X-Matrix planning in place. Tier 3 and 4 activities driven by Hoshin. I liked the color coded X-Matrix which showed linkage between the levels.

Weekly Tier 3 meeting in office. They are struggling with metrics. I would suggest a black belt get involved to help them through it. We had similar issues in some of our non-production areas. It is good to have someone from the outside with cause-effect discipline to help ask the right questions.

In summary, this was a very well-run operation. It was not purely a dog-and-pony show. These behaviors are instilled and practiced to a stage of discipline. This is not easy to do. It is obvious that Plant Manager and VP of Quality & Continuous Improvement are driving and supporting this culture. Having David Mann in the consulting role and providing the model for the Lean Organization is certainly important; but equally important is the leadership that Plant Manager and VP provide (including their staff).

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Summary

Focused Benchmarking◦ Use of surveys to provides a complete and quantifiable baseline

used for gap analysis◦ Pre-Benchmark visit to develop facilitation strategy◦ Follows a comprehensive standard process which includes

facilitated discussions and feedback to the host company◦ Archived Reports

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Challenges and Lessons Learned

Survey concept ◦ Nationwide surveys in development◦ Surveys to include summarized score

Best practice◦ Go outside the Consortia

Standard Work needs to be improved◦ Template to use in each Benchmarking session

Kill Industrial tourism

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Questions

Have you ever encountered ....

Would you explain more how you’ve approached ….

How have you handled ....

Richard WiltseTremco Inc., MBB