Getting to Bronze for Lean on the

How We Do Business Scorecard

Donna Samuel, Webinar Facilitator

Richard Lynch, Webinar Presenter

Getting to Bronze for Lean on the

How We Do Business Scorecard

•Background to How We Do Business scorecard

• The Lean frameworks

• Top tips

• Help & Support

• Questions

• HWDB forms part of the balanced scorecard, including Commercial, Technical, NPD/Innovation & Service (since 2010)

• HWDB scorecard has equal weighting

• Detailed frameworks covering:

• Environmental

• Ethical

• Lean Manufacturing

• Also KPIs for Environmental and Ethical

• Should be updated twice a year

• Structured around Provisional, Bronze, Silver & Gold scoring

Background

Background

42% SILVER (by volume)

13%Silver (by no of sites)

51% PROVISIONAL12/13 13/14 14/15

1

23

35

4

5

15/16 (YTD)

48

4

Current state

• All suppliers to be Silver by 2020

• M&S are choosing to work with sites that are scoring Silver

• All sites need to get going now if they haven’t yet started

• Sites must register on Credit360 Scorecard Database

• Sites must complete 3 frameworks and 2 KPI forms:• Ethical framework

• Environmental framework

• Lean framework

• Ethical KPI’s

• Environmental KPI’s

• When a site reaches Silver, they will undergo a validation to verify score

• If you want to be Silver by 2020, you should be aiming for Bronze by end of 2016

M&S Requirements

Lean(Efficiency)

Environment

Ethical

Frameworks

• Provisional: • Legal compliance, M&S minimum standards. • Suppliers should ensure they have an action plan to get to Bronze

• Bronze: • A site strategy & basic systems of governance in place• Measurements and baselines in place to demonstrate some progress• Appropriate qualified resource in place• Action plans with a view to getting to silver

• Silver:• Able to demonstrate progress over time and regularly achieving targets• Good governance systems in place with correct training• Evidence of change embedded with staff and a culture of CI at all levels• Belong to a top tier of sites within industry

• Gold:• True ‘model sites of the future’ – sustainability embedded throughout

business• A demonstrable step change in performance across all three areas• Strong foundation of continuous improvement, staff engagement and

innovation

What is Lean Thinking?

[8]

First European Winner

The Lean Business Model

Working the framework – 5 elements, 4 levels, 5 requirements

Possible Actual % Possible Actual % Possible Actual % Possible Actual %

Overall Site Performance 25 25 100% 25 12 48% 25 5 20% 25 0 0%

Site Compliance

Gold Standard

100% 48% 20% 0%

Minimum Standard Bronze Standard Silver Standard

Bronze requirementsItem Requirement

Section 1: STRATEGY DEPLOYMENT (PURPOSE)

SD 1.1 The site management team are involved in driving longer term (1 year +) site strategy

SD 1.2 There is clear evidence of daily KPI reviews with operational team member, with visible targets and

actions driving continuous improvement

SD 1.3 The senior & middle management have a clear understanding of what the site strategy means to them

and their immediate teams

SD 1.4 There is a standard approach for the delivery of improvement by data collection, analysis and action

SD 1.5 There is a standard approach in place to capture and if necessary escalate issues (with later feedback),

which has proven successful in some areas

SECTION 2: PROCESS MANAGEMENT

PM 1.1 The business has begun to discuss & understand value from the point of view of M&S and the end

consumer in order to focus continuous improvement

PM 1.2 The business has applied a formal process to identify the critical business processes (and value

streams) as a basis for prioritising continuous improvement

PM 1.3 There are some activities in place to map the Order Fulfilment process (what adds value and what does

not)

PM 1.4 There are formal activities in place to map one or more of the other key business processes such as

New Product Development

PM 1.5 There is a formal approach in place to improve business processes

Section 3: LEADERSHIP & ENGAGEMENT (PEOPLE)

LE 1.1 There is a formal and effective process designed to provide senior managers in the business with clear

SMART objectivesLE 1.2 The business has defined and implemented a formal approach to effective line management

LE 1.3 Senior management are aware of the changes required in their roles, behaviours and skills to achieve

the business strategy

LE 1.4 There is a clear formal process in place to help identify and deliver personal development plans for

senior managers

LE 1.5 There are a range of formal approaches taken to learning and development for people and teams

Section 4: TOOLS & TECHNIQUES

TT 1.1 The organisation has begun a formal programme to help improve its workplace organisation in

production areas

TT 1.2 Standard operating procedures exist for all areas where products are being produced

TT 1.3 There is a commitment to a formal approach to the use of appropriate implementation tools.

TT 1.4 Management are accountable for problem solving in the business, possibly using a number of

specialists.

TT 1.5 There is a formal approach to the way that a wider group of people (not just specialists) are

encouraged to engage in continuous improvement (CI)

SECTION 5: EXTENDED ENTERPRISE (Your Suppliers)

EE 2.1 The process for selecting key strategic partners is fully aligned to future business requirements

EE 2.2 It is clear that all of the selected suppliers are working towards a joint long-term business vision, for

instance by jointly taking part in Value Stream Mapping activities.

EE 2.3 There is a visual cockpit-style management system in place & working for some key selected suppliers.

EE 2.4 Coordination between businesses is clear and rigorously applied for all key suppliers

EE 2.5 There are targeted areas of the supply chain where a collaborative approach to CI is providing results

How levels builds

SMART objectives are linked with business goals at

management levels with appropriate levels of support to

achieve them.

There is a formal and effective process designed to provide

senior managers in the business with clear SMART objectives

The site has clear accountabilities within the senior

management team

Effective and supportive performance management is found in

all areas and at every level of the business with Core staff.

Provisional - agree to start

Bronze – Learning from pilots

Silver – Most people doing it

Gold – Every one involved

Strategy Deployment

Alignment &

Engagement

Management

Process

Strategic

Direction

The vision, goals and

strategy are clearly

communicated throughout

the organisation with key

measures, targets and

activities appropriately

deployed

Process Management

Mapping to

Identify Waste

Managing to the

Future State

Result

Understand

Strategy and

Customer Value

Improvement is managed

through processes and value

streams to deliver outstanding

customer value with minimum

bureaucracy and waste

Technology, Tools & Techniques

Specific

Technology, Tools

& Techniques

Continuous

Improvement

Process

Workplace

Foundations

The organisation has a “daily

habit” of continuous

improvement that uses simple,

visual technologies, tools &

techniques that have been

chosen and adapted for

effective use

[14]

Leadership & Engagement

Leading in a Lean

context

Realising People

Potential

Clear

Accountabilities

Accountabilities are clear at all

levels and leaders motivate

and develop their team in an

environment where they can

realise people potential

[15]

Extended Enterprise

Supply Chain

Deployment

Collaborative

Development

End to End

Supply Chain

Strategy

The organisation develops

integrated strategies & trusting

relationships with the key suppliers

to deliver stakeholder value and

eliminate all types of waste across

the boundaries between

organisations

Identify owners for Lean framework

Make use of support available – limited number of free half day health check – contact Donna Samuel –

Link with HR for Leadership and Engagement, Purchasing for Extended Entreprise, Site GM for Strategy Deployment

Develop roadmap to achieving each level

Get buy in from all internal stakeholders

Top Tips

Regular Supplier Exchange Workshops

Lean 21 Jan, Back history of presentation

Seeing is Believing visits

9th Mar World Wide fruit

Toolkits,

Strategy deployment, process management, leadership and

engagement, tools and techniques, extended entreprise, missing

link – 3 HWDB framework linkage

Casestudies & videos (Getting to Silver, Plan A conferences)

Help & Support

Live Poll: What further support do you think would be useful?

•An in house briefing?• S A Partners can offer you a free half day session to guide you…….

•More webinars eg. explaining the Lean Business Model in more detail?

•Attendance at a supplier exchange event

•Attendance at ‘Seeing is Believing’ visit

•Something else• We will call you to discuss……………………

18

Next Steps

Identify the right people with responsibility for the frameworks

Ensure the site & framework owners are registered on Credit360 and update

framework by end of Jan 2016

Educate your management team in Lean

Develop a roadmap for how your site will achieve Bronze & share this with S A Partners

(Foods Plan A Lean team) by end Feb 2016

Foods Plan A team to communicate supplier progress to M&S category teams end Feb

2016

Email us at:

Foods.PlanA@marksandspencer.com

Lean contacts:

Richard.Lynch@sapartners.com

Donna.Samuel@sapartners.com

Find help & support at:

https://supplierexchange1.marksandspencer.com/

Complete your frameworks & KPIs at*:

https://marksandspencer.credit360.com

*(you need to be set up to do this – email us if you are not set up)

Help & Support

Questions, please