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The ShawCor Manufacturing System
Global Leadership and Culture Development at ShawCor
Agenda
ShawCor - Company Background
The Requirement for Change
The ShawCor Manufacturing System
Cultural Development
Seven Independent Business Units
Bredero Shaw
Flexpipe Systems
Shaw Pipeline Services
Canusa-CPS
Guardian
DSG-Canusa
ShawFlex
ShawCor is a Global Organization
Agenda
ShawCor - Company Background
The Requirement for Change
The ShawCor Manufacturing System
Cultural Development
The Requirement for Change
We have a stable and profitable business and long term employeesNo burning platform!
However, we recognized that we can …
Reduce material waste (material over-application; quality; etc)
Reduce downtime (Labour inefficiency; downtime; rework; etc)
Improve processes
Counter increased presence and pressure from global competition
Develop Leadership & Culture for a High Performance Organization
Drive for long term sustainable competitive advantage
Agenda
ShawCor - Company Background
The Requirement for Change
The ShawCor Manufacturing System
Cultural Development
SMSShawCor’s Continuous Improvement Program
in Manufacturing, Service, and Office
The ShawCor Manufacturing SystemThe ShawCor Manufacturing System
9
FORMAL DEPLOYED AUTONOMOUS WAY OF LIFE
•• SHOWCASE SITESSHOWCASE SITES
•• EMPOWERED EMPLOYEESEMPOWERED EMPLOYEES
•• RELIABLE ORGANIZATIONRELIABLE ORGANIZATION
•• FLAWLESS EXECUTIONFLAWLESS EXECUTION
•• OUTSTANDING FINANCIALOUTSTANDING FINANCIALPERFORMANCEPERFORMANCE
The SMS Vision
Resources, Support & Guidance
ShawCor Mission & SMS Vision
PEOPLE
GROWTH
FLAWLESSEXECUTION
INNOVATION
LEADERSHIP
METHODOLOGY
TRAINING
ShawCorStrategic Themes
SMS ASSESSMENT
SMS GUIDEBOOK
MASTER PLANNING
The path and approach for Continuous Improvement
Programs and business processes
to effect our Vision . . .
The implications for operating divisions
Culture
Leadership
Processes
Alignment with strategic priorities
Embodiment of principles & the desired culture
Engaged Leadership
Capable and reliable processes
KNOWLEDGE SHARING
SMS – Business Integration
•• SHOWCASE SITESSHOWCASE SITES
•• EMPOWERED EMPLOYEESEMPOWERED EMPLOYEES
•• RELIABLE ORGANIZATIONRELIABLE ORGANIZATION
•• FLAWLESS EXECUTIONFLAWLESS EXECUTION
•• OUTSTANDING FINANCIALOUTSTANDING FINANCIALPERFORMANCEPERFORMANCE
•• SHOWCASE SITESSHOWCASE SITES
•• EMPOWERED EMPLOYEESEMPOWERED EMPLOYEES
•• RELIABLE ORGANIZATIONRELIABLE ORGANIZATION
•• FLAWLESS EXECUTIONFLAWLESS EXECUTION
•• OUTSTANDING FINANCIALOUTSTANDING FINANCIALPERFORMANCEPERFORMANCE
SMS Programs
SAMPLE
ONLY
2011
SAMPLE
ONLY
2011
Updated 23 September 2010 2010 SMS Interim Assessment DRAFT Summary
SMS 2010 Assessment Results
64%
82%
66%
58%
68%
68%
56%
58%
57%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
OVERALL SCORE
Standard Operating Procedures 1.
Product & Process launch 2.
Process Improv ement Engineer 3.
Global Operations Metrics 4.
Management to lead SMS 5.
Engage Workforce Through Visual Workplace 6
Establish Quality & Process Control 7.
Knowledge Sharing 8.
1Copyright © 2010-2011 ShawCor Ltd. All Rights ReservedRELEASED 07 December 2010
ShawCor Manufacturing System 2011 Guidebook
1Copyright © 2010-2011 ShawCor Ltd. All Rights ReservedRELEASED 07 December 2010
ShawCor Manufacturing System 2011 Guidebook
SMS Guidebook Methodologies Training Workshops
SMS Assessment Master Planning Knowledge Sharing SMS Database
How We Started?
Initial focus on Bredero Shaw– 5S– Global Metrics– Process Mapping– Regional Initiatives
Measure, Measure, MeasureMeasure, Measure, Measure
SMS Global initial resources
ShawCor Global SMS Support
Transition to Achieve the Vision
Hired technical subject matter experts
Developed formal long term program
Created the 8 SMS Elements
Increase focus on culture and leadership
Developed the Annual SMS Guidebook
Developed the SMS Assessment
Expanded SMS to other divisions
LLPP
CC
PPLLLL
PP
CC
PPLL
Culture, Leadership and Process CULTURE
Employees are engaged and empowered Teams have ownership of objectives and continuously improve targets (raise the bar)Employee are competent and trained beyond minimum requirementsEmployees are effectively improving business performance and seek perfection
LEADERSHIPLead environmental and safety program to achieve or maintain Incident and Injury Free (IIF) status
Committed and actively practicing, applying, coaching, mentoring SMS elements in all aspects of the operation
“Go Look See is practiced. Facts and data are used to drive the way we work
Lead by example, nurture relationships and seek opportunities to recognizeemployees
PROCESSListen to the Voice of the Customer and deliver value
Data and fact-based analysis and decision making is engrained at all levels
Processes are stable and reliable; Abnormal conditions are visible and timely actions are taken
Year over year reliable execution resulting in outstanding safety, quality, delivery, people, and financial, performance
1. Standardized Work
2. Product/Service and Process Launch
3. Process Improvement Engineers
4. Operations Metrics
5. Management to Lead SMS
6. Engage Workforce Through Visual Workplace
7. Establish Quality and Process Control
8. Knowledge Sharing
LLPP
CC
PPLLLL
PP
CC
PPLL
CLPCLPCLPCLP
CultureCultureLeadershipLeadership
ProcessesProcesses
CultureCultureLeadershipLeadership
ProcessesProcesses
SMS Program Elements
Achieving the SMS Vision relies on the balanced integration of Culture, strong Leadership and reliable Processes in our company. Each SMS Program elements is
designed to develop and support one or more aspects of “CLP”
Global SMS Resources
Divisional/Regional PI Engineer/ Tech Support
ShawCor Global SMS Support
Agenda
ShawCor - Company Background
The Requirement for Change
The ShawCor Manufacturing System
Cultural Development
Role of Leadership
ShawCor Leaders
Divisional Leaders
Site Managers
Superintendents and Supervisors
Team Members
Committed &Supportive
Leaders
Senior Leadership development
Identifies activities that will exemplify the behavioural characteristics that foster the desired Culture, Leadership, and Processes
Guide Contents:Leadership Activities
SMS Guidebook
Procedure for Site Visit
Keys to Success
SMS Tools
Glossary
SMS Champion Training and Certification• Provide site managers the knowledge to
independently lead SMS at their site• Program Composition
– SMS Concepts and Techniques– Leadership and Coaching Skills– Application and Sustaining SMS– Final Assignment – Business, People,
Personal development
Site Manager Development
VP Involvement• Provide overview of the Champion program• Practice concepts that apply to VPs• Understand the VP role in enabling SMS• Initiate actions to support participants
SMS Supervisor and Technical Development
Supervisor Applied to daily tasks
Front Line Leadership
Contribute to projects / Lead Short term initiatives
Daily Management
Line side Problem Solving
P I Engineer SMS Implementation
Process technical support
Medium to Long term Improvement Projects
Process Management
Complex Problem Solving
SMS TacticalSMS Tactical• A focused program that will develop specialists in the use of the SMS techniques and methodologies.
• Apply the knowledge gained to the scope of each individual’s responsibilities
Train key employees to become “change agents” to lead and drive operational improvements
Broaden the knowledge baseRaise the technical skill level
Global SMS Resources
Site Managers
ShawCor Global SMS Support
Divisional CI ManagersDivisional/Regional PI Engineer/ Tech Support
Supervisor and additional technical support for SMSVice Presidents
Cultural Development –Select Initiatives
Master Planning
5S
A3 – Problem Solving
Standardized work - SOP’s; Standard Work for Leaders
Daily Management Process
Knowledge Sharing Dbase
SMS Assessment
AME
Passive
Aligned
Alignment
EngagementEngaged
ScatteredChaotic
Liberating
PerformingRewarding
LatentConfusing
FocusedConstraining
What is the Current Reality?
Characteristic of the organization Feeling of the people
?
Future State
Alignment and Engagement
On targetAt risk
Behind Schedule
Complete
Timeline
PLAN DO CHECK ACT
The SMS Master Plan
Strategic Plan/ Business Plan
Strategic Plan/ Business Plan
Corporate (Corp Ops/SMS)
Division/ Region(VP/GM)
Facility Plan(Plant Manager)
Feedback
Department/ Work Cell DMPSupervisor/ Employees
Cascading and Alignment of Objectives
5S was one of our first initiatives
It engaged our employees in business improvement
5S at ShawCor
5S Activity Board
What Who When
1S- Remove construction material from blaster area Jim 1-Mar-09
2S- Designate a location for new shop vacuum Jim 1-Mar-09
3S- Add cleaning of FBE booth guns to weekly schedule Jane 1-Mar-09
4S- Paint new guards to site standards - Revise blaster signage to reflect white/blue standard - Stage all cables along south side of blaster
Stuart Mike Dave
4-Mar-09 4-Mar-09 15-Mar-09
5S- Complete 5S intro training for 2 new hires Peter 4-Mar-09
Each work area or team is assigned a set of 5S Notice and ActiviEach work area or team is assigned a set of 5S Notice and Activity Boardsty Boards
The 5S Activity Board is used by the team members to write new 5S ideas and their estimated date of completion.
5S Activity Boards
SAMPLE
Our 5S model and workshop style engages people through teamwork and inspires them to come up with creative and effective solutions to everyday problems.
5S at ShawCor
A ShawCor wide standardized and structured problem solving methodology aimed at developing…
Fact and data driven root cause analysis and decisionsDiscipline to follow each step of the problem solving processOwnership and sense of urgency in addressing problemsEmployee and stakeholders involvement
A3 Problem Solving Methodology
Standardized Operating ProceduresDocumented “Set Up” and “Run” procedures
Leader Standard WorkDocumented leader behaviors & tasks focused on process support
Time
Tasks
Time
□ Gem
ba walk
with su
perviso
r (onc
e a w
eek)
□ Atte
nd DMP m
eetings (
rotatio
nal bas
is)
□ Lead P
lant pro
duction m
eetings
□ Regu
larly
cond
uct audits
(ASA, S
MS, 5S, e
tc)
□ Revie
w staff
standard
work
□ Revie
w activit
ies with
all departm
ent h
eads
□ Appr
ove re
viewed docu
ments
(MOC, Q
uality,
RA, e
tc)
□ Revie
w and update
Maste
r Plan w
ith st
aff (m
onthly)
□ In
itiate
actions t
o com
plete mas
ter plan o
n time
□ Lead m
onthly sit
e meetin
gs
□ Upda
te G
M about th
e pro
gress
/tren
ds
Date:
Daily A
ssig
ned T
asks
Leader
Sta
ndard W
ork T
emplat
e - O
perat
ions M
anag
er
Time
Notes/Flo
w Inter
rupter
s
Name:
Standardized Work
• Establishes supportive leadership focused on process to achieve results
• Base for future improvement• Reduces the learning curve• Consistent and reliable execution• Improved employee engagement
High frequency, regularly scheduled two-way discussions between leaders and their organizations facilitated by standardized metrics and display boards
The Daily Management Process
ShawCor Leaders
Divisional Leaders
Site Managers
Superintendents and Supervisors
Team Members
The Daily Management Process
Supportive Leadership
We engage our employees around the world in our business
Global Workforce Engagement
Kembla Grange DMP Walkabout.wmv
Knowledge Sharing – SMS Database
SMS Assessment - Sample
81%
92%
77%
80%
82%
82%
72%
80%29%
76%
54%
71%
66%
48%
52%
38%
47%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
OVERALL SCORE
Standard Operating Procedures
Product & Process Launch
Process Improvement Engineers
Global Operations Metrics
Management to Lead SMS
Engage Workforce through VisualManagement
Establish Quality & Process Control
Sharing of Best Practices
2010 Initial Final Assessments 2009 Assessment
AME Conferences 2008 - 2011
ShawCor EventsDaily 5:05 Team ReviewBest Practice presentationsLeadership UpdateSMS Program LaunchDinner & Awards Night
ShawCor Attendance2008 San Diego 112008 Toronto 322009 Charleston 72009 Calgary 302009 Kentucky 322010 Baltimore 852011 Calgary 502011 Dallas ≈ 70+
6
Insights from Industry Experts
Name : Division:
Daily 5:05 Sharing & Learning SessionsBaltimore Convention Center
Mon – Thurs 5:05 pm – 6:05 pmRoom 323
List three ideas or concepts that you learned today
How can these ideas be applied to our business?
The Daily ShawCor 5:05WE SHARE OUR LEARNING
EXPERIENCES…
….WE LISTEN
and WE SPEAK A COMMON LANGUAGE ACROSS ALL LEVELS
Participation in AME Events
Southern California Lean Tour - Bredero Shaw Fontana March 3-4, 2010 | Riverside/Ontario, CA
2010 AME Baltimore Nov 15-19 2011 AME Calgary June 6-9
“Flawless Execution through the Daily Management Process”
ShawCor & ShawFlex
“Building a Reliable Organization”
Bredero Shaw
Best Practices Plant Tour Site
Flexpipe Systems
Recognition of Achievements
Supportive and Engaged Leadership
ShawCor Leaders
Divisional Leaders
Site Managers
Superintendents and Supervisors
Team Members
CommittedSupportive & Engaged
Leaders
How are we doing?
Successful Plants
Have committed, supportive, and engaged leaders and support staff
Have demonstrated knowledge of SMS and sustain results
Have changed the way they work
Have demonstrated reliable and predictable performance
Are developing best practices for the organization to learn from
Have taken ownership & built local capability
Country:
SOP#
1
1 -
2 -
3 -
4 -
5 -
Op No
KP
1,2,3,4,5 1
5,4 1A
+
2 1B
+
2 1C
+
2 1D
+
1,2 1E
+
1,2 1F
+
1 1H
i
1 1I
E
1,3 1J
E
1,3 1K
E
1 1L
+
1,2,3,4 1M
5S
001
Page: 1 of 1Environmental =
Roll the Wire Roll into the Rack using the ramp from the rear of Wire
Stand, Place Shaft into Center Roll, Pull out 1 foot of Wire (Photo 3)
Once Latched Wire is travelling smoothly, Remove Shaft, Push Down
pedal to allow new Wire roll to advance forward (Photo 9)Pinch Point, Cuts, Laceration, Puncture M
Watch the latched wire as it travels through the Rollers (Photo 6, 7) and
Applicator (Photo 8)
IF Latch is missed/broken/comes apart at some point of travel, Hold the
Buzzer Down (Photo 5) until Plant Operator STOP the Coating
Repair the Latch, then Press the Buzzer to Notify Plant Operator to Start
Coating again
5S =
Long Handle Shears, hand leather glove,
proper work position, constant communication
between coworker, follow manual handling
procedure properly, team work
Follow manual handling procedure properly,
team work, housekeeping, provide plastic/wire
bin, hand leather glove
Never Follow Wire into RollerMisfeed or Discontinuous Operation Never Follow Wire into Roller
Misfeed or Discontinuous Operation
Push Buzzer ONCE when Latch is made/attached (Photo 5), to notify
Plant Operators and others that Wires have been LatchedNon Continuous Operation
Quality =
SOP Revision #:
Originator:
Revision Date:
CCT Team
Key Points
E
Muscle Strain, Cuts/Laceration, Fall/Trip
Hazard
Cuts/Laceration, Projectiles Wire
+QRepeat the same steps until finish Concrete Coating operation. Return
all Tools at the end of shift operation
Missing Tools
Safety =
Muscle Strain, Cuts/Laceration, Fall/Trip
Hazard, pinch point
END OF WIRE FEED OPERATION
Raw Materials & Equipment: Wire Cutter, Shear, Wire Holding Rack with Shaft and Post, E-Stop, Buzzer
Handleather glove, long sleeve shirt
Forklift delivers Wire Bundles from Storage to the Wire Station Area.
Verify the Wire Gage or Specification with Supervisor
Use Wire Cutter, Cut Front Wire to form a Latch (Photo 2)
When required, Use Wire Cutter, Trim from Center of the Roll
Roll the Wire Roll and Position behind the Wire Rack (Photo 1)
Follow manual handling procedure properly,
team work, housekeeping, provide plastic/wire
bin, hand leather glove
Control Measure
Use Wire Cutter, Cut Banding Strap to separate Individual Wire Rolls
from Bundle (Photo 1 on the background)
Cuts/Laceration, struck by wire roll,
trip/falling
Struck by Forklift or Wire Bundle
Cuts, Puncture
Plant:
Line:
Kabil
Rock Jacket
Indonesia
PrasetyoadiRab Wilson
Photo/Sketch
Forklift Driver
Alistair Salmond
CMV =
Handleather glove, long sleeve shirt
Approved
5SEfficiency =
iInformation =
Status:
3-Feb-10
Supervisor
RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING
Stay Clear from Forklift Path, adequate work
space, adequate illumination, authorised &
trained operator, constant communication
between coworker
Positions
Main Steps
Hazard/Non-Conformance
WIRE FEED OPERATION
Reference Documents
Operating
Activity & Seq.
Reviewed and Approved by;
Operations ManagerPlant Manager
QA ManagerHSET Manager
Dave Conroy
Plant Operator
+
CoatingRock Jacket
Wire Mesh Feed
Work Station
Wire Prep
Wire Latch (3)
SOP-RJ-005
Required PPE
1G1,2
Pinch Point, Cuts, Laceration, PunctureConstant communication with coating operator,
emergency stop, hand leather glove
When the Wire is about 2-3 feet or 1 meter left, Latch the wire together
by placing Fist on the Wire and Spring the Wire back, then release with
your two finger (Photo 4)
Constant Communication with Plant Operator
Housekeeping Workplace Organization
Non Continuous Operation
Don't place your hand/finger on pinch point,
hand leather glove
Constant Communication with Plant Operator
HardHat
Foot
Protection
Hand
ProtectionSafety
Glasses
Hearing
Protection
Kevlar
Sleeve
Photo 7
Photo 8
Photo 6
Wire Rack
Photo 5
Buzzer
E-STOP
Center Shaft
Photo 9
Photo 1Photo 2
LATCH
Photo 3Photo 4
Join Latch
SMS Global Leadership and Culture
Q&A