4/8/2014

1

P R E S E N T E D B Y

How We’ve Perpetuated

Organizational Excellence

Eric Franks

Technology & QA Manager

A p r i l 1 5 , 2 0 1 4

Bryan Vaughn

President

How We’ve Perpetuated

Organizational Excellence

KEY CONCEPTS:

• Our Company & Product

• Our Culture & Environment

• Key Steps Along the Way

• How We’ve Kept it Going

• Where We’re Headed Now

GOAL STATEMENT:

To help you see how the pursuit of Organizational Excellence has

benefited our company, so that you can see why you should: “Take

Every Opportunity to Demonstrate that Organizational Excellence Is

Your Priority by Making it Personal!”

Our Company

Leipsic, OH 1,500,000-ton

capacity

1990 joint venture between

U. S. Steel & Kobe Steel

CGL1 CGL2

CAL

Our Product

A Focus on Safety

Crumple Zones

(engine compartment, trunk)

deform to absorb energy and

control magnitude of deceleration

Safety Cage

(passenger compartment)

resists deformation to prevent intrusion

Steels for Crumple Zone

• Highest Energy Absorbing

• Strength AND Ductility

• Dual Phase and TRIP Grades Preferred

Steels for Safety Cage Zone

• Highest Strength

• High Tensile Dual Phase, Martensite,

and Boron Steels Preferred

Our Culture

“We are what we

repeatedly

do. Excellence,

therefore, is not an

act, but a habit.”

Aristotle

• Self-directed work teams

• All Associates are salaried

• Promotions occur from within

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Concept of Boundaries

Leadership is safety.

Leadership is service.

Leadership is trust.

Everyone Is a Leader Concept of Boundaries

Processes wrapped in culture ensure

quality by establishing broad boundaries

within which our Associates are free to

practice ORA and innovate!

Provide

basis to make

decisions

Freedom to

be self-

directed

Freedom to

be

innovative

Freedom

to grow

“If you can’t explain it simply, you don’t

understand it well enough.”

– Albert Einstein

Growth Phase (1993 – 2000)

• Documentation

• “Big Honking Binders”

• Automotive Supplement

ISO 9001 (’96) & QS

(‘97)

• Increased Capacity 67%

• Increased Workforce 62%

• Largest Automotive Hot-Dip Galvanize

CGL2 (‘98)

• Environmental Policy & Work Instructions

• Integrated into Quality & Environmental System (QES)

• OAE Inaugural Recipients

ISO 14001 & QES (2000)

Criteria for Performance Excellence

Customers

(Outputs)

Workforce

Context

Process

Management

&Improvement

Suppliers

(Inputs)

This is who we are &

what we do

1. Key Organization Factors

• Organizational Description

– Org. Environment

– Org. Relationships

• Organizational Situation

– Competitive Environment

– Strategic Context

– Performance Improvement

System

This is how we do what we do

3. Processes & Systems 1. Leadership

2. Strategic Planning

3. Customer Focus

4. Measurement, Analysis,

and Knowledge

5. Workforce Focus

6. Operations Focus

This is how well we do it

4. Results / Outcomes 7.1 Product & Process

7.2 Customer-Focused

7.3 Workforce-Focused

7.4 Leadership &

Governance

7.5 Financial & Market

This is what we believe

2. Core Values • Visionary Leadership

• Customer-Driven Excellence

• Organizational & Personal Learning

• Valuing Workforce Members & Partners

• Agility

• Focus on the Future

• Managing for Innovation

• Management by Fact

• Social Respons./Community

• Focus on Results & Creating

Value

• Systems Perspective

Seeking Phase (2001 – 2005)

• Preparation – OAE

• Gap Analysis – “Quality Assurance Guy’s”

• Site visit, Feedback Report, & Lots of Opportunities for Improvement (OFIs)

• Tier 3 Recognition

Initial OAE (2001-02)

• Voluntary Program with Goals & Objectives

• Refined Financial Controls & Procurement Manual

EPA-NEPT & SOX (2003)

• Strategic Planning, Key Success Factors, Balanced Scorecard, Surveys, & OFIs

• Site Visit, Feedback Report, & Lots of OFIs

• Governor’s Award (Tier 4)

2nd OAE (2003-04)

**Ohio Partnership for Excellence: Governor’s Award (September 17, 2004)

**Now known as The Partnership

for Excellence which includes Ohio,

West Virginia, and Indiana

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Seeking Phase (2001 – 2005)

• Systems Approach

• Outcomes-Based

• Beyond Compliance & Actively Soliciting OFIs

QS to ISO/TS 16949 (2004)

• Voluntary Program • STAR Site, 1st in Standard Industrial Code, and VPP and NEPT in Ohio

• VPP Site Visit, Feedback Report, Lots of OFIs

OSHA VPP (2004)

• Criteria, Focus on Support Processes, and OFIs

• Validated OAE Evaluation

• Consensus, Feedback Report, and Lots of OFIs

1st MBNQA (2005)

Innovation Phase (2006 > > > >)

• Mapped Critical Systems, 6-D Methodology, and OFIs

• Leadership Team Category Ownership • Site Visit, Feedback Report, and Lots of OFIs

2nd MBNQA (2006)

• ISO/TS and VPP Recertification (3-Year Cycle)

• VPP Site Visit, Feedback Report, Lots of OFIs

ISO/TS 16949 &

VPP (2007)

• Criteria, Mapped Culture, Vision, Tactical Team, Individual Plans, and OFIs

• Embraced by Organization

• Site Visit, Feedback Report, Lots of OFIs, BAR

3rd MBNQA (2007)

Our Journey Has Just Begun....

April 22, 2008

Where We Are Today

Baldrige Performance Excellence Criteria

• Root Cause Analysis

• Interim Actions

• Corrective Actions

• Systematic Continuous Improvement

ISO 9001, ISO 14001, ISO/TS 16949, ISO 17025

Click to edit Master title style

4/8/2014 17

Concept of Boundaries Our Mission

To foster human

potential, a spirit of

cooperation, and

technical innovation

for the betterment of

our industry,

Associates, and

community.

Vision

BE

DO

HAVE

• Totally committed to personal safety and wellness.

• Recognized as industry technology leader in both

product and process.

• Consistently profitable.

• Provide on-time delivery with world-class quality.

• Develop/maintain world-class facility and

business systems.

• Maintain high standard for community citizenship

and service.

• A highly skilled, engaged workforce committed to on-

going performance excellence.

• Optimal utilization of production capacity and

capability.

• Valuable vendor/supplier relationships.

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Core Values

• INTEGRITY – We abide by the highest standard

of moral and ethical behavior.

• HONESTY – There is truth in our words and

sincerity in our actions.

• GENEROSITY – We are willing to serve.

• COLLABORATIVE – We are willing to work

together for a common goal.

• HUMILITY – We are confident and humble.

• TRUST – Our stakeholders can rely on us to do

the right thing.

• RESPECT – We appreciate the strength of

individuals and value diversity.

Strategic Position (Core Competency): “Innovation Leader in Technologically Advanced Steel”

Strategic Themes:

• Automotive Market

• Value-Added Steel

• Coated Steel

• Technologically Advanced Steel

• Ultra-High Strength Steel

• Advanced High Strength Steel

• High Strength Steel

Ability to provide break-through processes to meet the customers’

needs using our expertise in technologically advanced automotive

steels. Through highly flexible, innovative teams, we demonstrate

the agility to develop solutions delivering high-quality, reliable

products that meet the demands of our customers.

Innovation Alignment

Organizational excellence

is perpetuated at

PRO-TEC by innovation

being a mindset and a

demonstrated behavior

inherent in our ORA

culture.

Mission: to foster human potential, a spirit of cooperation, and

technical innovation for the betterment of our industry,

Associates, and community.

Vision: BE recognized as the industry technology leader in

both product and process; DO develop/maintain a world-

class facility and business systems; HAVE a highly skilled

workforce committed to ongoing performance excellence.

One of six Key Success Factors: Technical innovation

and product development.

Today’s Records Are Tomorrow’s Standards

Strategic Position (core competency): Innovation Leader in

Technologically Advanced Steel [Strategic Themes: innovative

people and process, flexible organization, we do the tough stuff,

exceeding customer needs, advanced products]

Process Overview Map

Outside

Processing/

Warehouse

Customer

Technical

Service

Shipment to

customer

CUSTOMER

Order

Review

Continuous

Galvanizing

Line

Determine

customer

requirements

Place order

on plant

CUSTOMER

Customer

Service /

Inventory

Management

**Logistical

Services

Human

Resource

Management

Corrective

Action

Continual

Improvement/

Preventive

Action

(I-to-I Process)

Management

Review

Internal AuditsProject

Management

Information

Systems

Reliability

USS Sales

PRO-TECCorporate

Support

Processes

USS Sales

Purchasing

**Support-

Oriented

Processes

Management-

Oriented

Processes

Customer-

Oriented

Processes

Processed

Products

Finishing

Processed

Products

Business

Intelligence

(ASNs)

Corporate

Support

Process

Process Mgmt &

Customer Input

Strategic Planning &

Deployment

Charitable

Contributions,

Scholarships &

Outreach Support

Legal Compliance &

Ethics

Governance System

Leadership System

Knowledge Mgmt

Comparative

Selection Criteria for

Operation Innovation

Customer

Relationship Building

Customer & Market

Knowledge

Customer

Satisfaction

Determination

Customer Complaint

Mgmt

Training Plan

Compensation &

Benefits

Performance Mgmt

System

Work Systems

Safety &

Environmental

Hiring Process

Process Mgmt &

Customer Input

Performance

Excellence

Processes

**Product /

Line

Conditions

Audit

Process Owner (s): Current I-to-I Resource Committee Chairperson, C. Walther

Revised by: C. Walther

Process Input(s): Process Output(s): a: Concern or Potential Problem a: Preventive Actions

b: Business Plan Objectives b: Process Change

c. Key Measures c. Work Instruction Revision

d. **Opportunity for Improvement (OFI) d.

Process Effectiveness Measures: Process Effectiveness Monitoring Techniques:

a: Number of PARs a: Jeopardy Report

b: Outstanding PARs b: Monthly Reports

c.

Various Key Measures / Balanced

Scorecard c. Plant Management Meetings

d. d.

Process Efficiency Measures: Process Efficiency Monitoring Techniques:

a: Monthly Distribution of CARs/PARs/CAPs a: Monthly Reports

b: b:

c: c:

Customer Oriented Processes: Customer Oriented Processes Interactions:

a: Order Review a: Key Measures

b: CGL Process b: Key Measures

c: Finishing Process c: Key Measures

Support or Management Oriented Processes: SOP/MOP Interactions:

a: Internal Audits a: Audit Findings

b: Management Review b: Review Inputs

c: Corrective Action c: CARs

d: d:

e: e:

Methods/Procedures (how?): Equipment: (with what?):

a: Work Instructions a: ISO / TS Requirements

b: I-to-I Process b:

c: PARs c:

d: PAR Feedback d:

e: PAR Presentations at PMM e:

f: f:

Continual Improvement/

Preventive Action

(I-to-I Process) Originator fills in

the first section of

PAR and submits

Mgmt

Systems Analyst

determines

routing?

QA Specialist

assigns&logs PAR

number and types

it and forwards to

PAR Leader

Mgmt Systems

Analyst

assigns PAR

Leader,

if necessary

Forward to QA

Specialist for

typing

Actions

OK?

QA Specialist

closes and

files original

PAR

QA Specialist

assigns PAR

number, types it,

and returns it to

the Mgmt Systems

Analyst

Paperwork

returned to PAR

Leader with

explanation

Direct

to

PAR

Leader

Mgmt Systems

Analyst reviews

submitted PAR

paperwork for

completion

PAR

paperwork

complete?

Appropriate

managers review

PAR

Reviewed by

I-to-I Resource Committee

Open PARs are

reviewed at I-to-I

Resource Committee

Meetings held twice

per month

PAR Leader

completes PAR

paperwork and

submits to Mgmt

Systems Analyst

Return PAR to

PAR Leader with

explanation of

need for further

action

A

Yes

No

Yes

No

B

B

CI is deployed

through the

I-to-I Process

PAR Leader uses

team-oriented

problem-solving

to complete PAR

Mgmt Systems

Analyst presents

to I-to-I Resource

Committee

Chairperson

B

Facilitator

assigned to assist

PAR team

New

PAR

INPUTS Concern or

potential problem Business Plan

Objectives Key Measures OFIs

OUTPUTS Preventive Actions Process Change Work Instruction

Revisions

I-to-I

Resource

Committee

Review

Explanation

given to

Originator

Refuse

PAR

Hold PAR for

further review at

future meeting

End

A

Process

Redesign

Process

Redesign

+ C

om

ple

xity

-

Attributes - Scope +

QES, AssociateOrientation, ORA

Technical Training& Vendor Support

QES, TeamTraining

Strategic PlanningProcessMethods:

Associate Surveys& Evaluations

Reliability, SafetyPreventive /

Corrective ActionsBudgets, Resource

AllocationMeasurements:

“Run-the-Business” Balanced Scorecard (BSC)“Change-the-

Business” BSCTools:

Procedure ChangeEngineering

ChangeTeam-Based

ChangeCapital-Budgeted

ChangeExamples:

QES, AssociateOrientation, ORA

Technical Training& Vendor Support

QES, TeamTraining

Strategic PlanningProcessMethods:

QES, AssociateOrientation, ORA

Technical Training& Vendor Support

QES, TeamTraining

Strategic PlanningProcessMethods:

Associate Surveys& Evaluations

Reliability, SafetyPreventive /

Corrective ActionsBudgets, Resource

AllocationMeasurements:Associate Surveys

& EvaluationsReliability, Safety

Preventive /Corrective Actions

Budgets, ResourceAllocationMeasurements:

“Run-the-Business” Balanced Scorecard (BSC)“Change-the-

Business” BSCTools: “Run-the-Business” Balanced Scorecard (BSC)“Change-the-

Business” BSCTools:

Procedure ChangeEngineering

ChangeTeam-Based

ChangeCapital-Budgeted

ChangeExamples: Procedure ChangeEngineering

ChangeTeam-Based

ChangeCapital-Budgeted

ChangeExamples:

Continuous Improvement &

Innovation Methods (I-to-I)

ORA – “We JustFix It!”

Subject MatterExperts (SME)

I-to-I ResourceCommittee (RC)

LeadershipTeam (LT)Decision:

ORA – “We JustFix It!”

Subject MatterExperts (SME)

I-to-I ResourceCommittee (RC)

LeadershipTeam (LT)Decision:

AssociateSME, Department

Initiatives (6-D)I-to-I PAR Team

SPP – Initiatives(Six Disciplines)Implementation: Associate

SME, DepartmentInitiatives (6-D)

I-to-I PAR TeamSPP – Initiatives(Six Disciplines)Implementation:

Huddles, 7:15Meeting / MP2

Staff Meetings, QES,Bulletins, I-to-I 6-D

PMM Presentation,Bulletins, QES

Tactical Team &Communication Mtgs.

KnowledgeMgmt. Sharing:

Huddles, 7:15Meeting / MP2

Staff Meetings, QES,Bulletins, I-to-I 6-D

PMM Presentation,Bulletins, QES

Tactical Team &Communication Mtgs.

KnowledgeMgmt. Sharing:

Safety Audits &Conversations

IP Status Updates& Outcomes

PAR Feedback &Updates to RC

Initiative Status& Update by 6-DEvaluation:

Safety Audits &Conversations

IP Status Updates& Outcomes

PAR Feedback &Updates to RC

Initiative Status& Update by 6-DEvaluation:

I-to-I

Teams

I-to-I

Teams

Technical

Resources

Technical

Resources

Associate

Responsibility

Associate

Responsibility

Continuous

Improvement

and

Innovation

Process

Redesign

+ C

om

ple

xity

-

Attributes - Scope + QES, Associate

Orientation, ORA Technical Training & Vendor Support

QES, Team Training

Strategic Planning Process Methods:

Associate Surveys & Evaluations Reliability, Safety

Preventive / Corrective Actions

Budgets, Resource Allocation Measurements:

“Run-the-Business” Balanced Scorecard (BSC) “Change-the- Business” BSC Tools:

Procedure Change Engineering

Change Team-Based

Change Capital-Budgeted

Change Examples:

OFI: “Although PRO-TEC has put numerous initiatives in

place with the intent of changing rather than running

the business, technical innovation at an organizational

level is not carried out deliberately through a

repeatable approach.”

Continuous Improvement

Methods (I-to-I)

I-to-I

Teams

Technical

Resources

Associate

Responsibility

ORA – “We Just Fix It!”

Subject Matter Experts (SME)

I-to-I Resource Committee (RC)

Leadership Team (LT) Decision:

Associate SME, Department Initiatives (6-D) I-to-I PAR Team

SPP – Initiatives (Six Disciplines) Implementation:

Huddles, 7:15 Meeting / MP2

Staff Meetings, QES, Bulletins, I-to-I Lite

PMM Presentation, Bulletins, QES

Tactical Team & Communication Mtgs.

Knowledge Mgmt. Sharing:

Safety Audits & Conversations

IP Status Updates & Outcomes

PAR Feedback & Updates to RC

Initiative Status & Update by 6-D Evaluation:

Organizational Learning Trend

World-Class Facility [4]

0

1

2

3

4

5

6

Associate Quality of

Life [5]

Customer Service [3]

Technical Innovation

[6] Good Citizenship [1]

Long-Term Viability

[2]

4

3

2

1

0

Maturity Level

by Key Success

Factor [Category]

• Growth – Looking Back (green)

• Seeking – 1st MBNQA (orange)

• Innovation – BAR (blue)

• Current Focus (yellow)

• KEY: Criteria Scoring Guidelines {1-6}

4/8/2014

5

“Search for opportunities to demonstrate

that SAFETY is our #1 Priority.”

– Paul Worstell

“A mind once stretched by a new idea

never regains its original dimension.”

– Oliver Wendell Holmes

0

2,000

4,000

6,000

8,000

10,000

12,000

0%

20%

40%

60%

80%

100%

120%

140%

Part

s P

er

Millio

n (

PP

M)

Customer-Focused Trend

Production / Design Capacity (%) GA Value-Added Product-Mix (%)

Milestones Customer Claims (PPM)

CGL-2 AHSS 7xCE UHSS

Design Capacity

Down-Turn

GA V-A =

CE+AHSS+UHSS

1% = 10,000 PPM

“An organization’s ability to learn, and translate that learning

into action rapidly, is the ultimate competitive advantage.”

– Jack Welch

“Anyone who stops learning is old, whether at twenty

or eighty. Anyone who keeps learning stays young.”

- Henry Ford

New Continuous

Annealing Line (CAL)

Conceptual Layout

U. S. Steel and Kobe Steel Announce

Capital Investment in PRO-TEC Coating

Company – (December 2010) U. S. Steel

and Kobe Steel, Ltd., have reached an

agreement for their joint venture, PRO-TEC

Coating Company in Leipsic, Ohio, to begin

construction on a continuous annealing line

at the facility. “With this investment in

PRO-TEC Coating Company, both U. S. Steel

and Kobe Steel are well-positioned to serve

our automotive customers. PRO-TEC is an

industry leader in quality sheet steel products,

and we are pleased to bring another quality

product to market," said John P. Surma,

chairman and chief executive officer of United

States Steel Corporation.

CAL Target Product and Market

• Estimated new market – 211# per mid-sized car

• Supports new rollover rating criteria

• Improved crash resistance

• Improved fuel economy

• About 80 new jobs

CR CAL

Coated Steels

4/8/2014

6

Construction of the Continuous

Annealing Line Continuous Annealing Line

First Prime Coil

February 28, 2013

Malcolm Gets a Bath……

“Do or do not.

There is no try.”

– Yoda