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SUSTAINING LEAN JOURNEYTHROUGH MINI COMPANY
September 25th, 2020
PT Hanes Supply Chain Indonesia
Mini Company - Webinar Series
Improvement Through People 2
PQM’s main areas of specialization are:
• Productivity & Quality Management
• Human Capital Development
• Service Excellence
About Us
PQM Consultants is a consulting, training, and research institution
specializing in productivity and quality improvement through people.
Founded in 1987, PQM Consultants has been working together with our
clients from various industries in aligning their people and processes to
compete through high speed, excellent quality and low cost.
We strongly believe that the key to our success is our total
commitment in delivering value to our clients, based on integrity,
honesty and openness
Improvement Through People 3
Jarot AnorogoPrincipal Consultant at PQM Consultants
• Industrial Engineering background and Certified Supply Chain Professional (CSCP) from ASCM-APICS
• Assist and help clients through building sustainable business growth in productivity and quality improvement area
• Specialization of LEAN implementation in various industries
Moderator
Improvement Through People 4
Ground Rules
Q&A
MuteBe Curious Ask Us!Uncheck Side by Side Mode
Screen
Improvement Through People 6
Webinar Agenda
Session Time
Opening
Sharing Session
Q&A
Closing & Feedback
09.30 - 09.35 WIB
09.35 - 10.30 WIB
10.30 - 10.55 WIB
10.55 - 11.00 WIB
Improvement Through People 8
Speaker
2001
PT. Sandang Mutiara Cemerlang
Industrial Engineer
2002
PT. Ichikoh Indonesia
Quality Assurance Engineer
2003-2006
Bogart Lingerie
IE Manager
China
2007-2015
Pacific Brands Indonesia
IE, Costing & Lean Manager
2016-Current
Hanes Supply Chain Indonesia
Regional Engineering & Lean Value Stream Manager
DEVY YUNITA RAHMI
SUSTAINING LEAN JOURNEYTHROUGH MINI COMPANY
September 25th, 2020
PT Hanes Supply Chain Indonesia
Mini Company - Webinar Series
Improvement Through People 10
WHO ARE WE?
HANES SUPPLY CHAIN INDONESIA Manufacturer of Intimate Apparel
Location Jl. Jababeka XIIB Block W No.39 Cikarang
Established on March 02, 1998 – internal manufacturing of Hanes Brands Inc.Product Brassieres, Ladies underwear, Men’s underwearCapacity 3million Bras & 10million Briefs / year
Brands Bonds, Berlei, Champion, BNT, Jockey, Hestia, Target
Improvement Through People 13
LEAN AS COMPANY STRATEGY
Source: Jeffrey Liker
• Continual organization
• See for yourself
• Make decisions
• Grow Leaders
• Respect, develop & challenge your people
• Respect, develop & challenge your suppliers
• Create process “flow”
• Use Pull Systems
• Level out workload
• Jidoka (Stop the line)
• Standardized Tasks
• Use visual Control
• Use only tested
technology
• Management Decisions also based on
a long-term philosophy
4Ps Management Principles
of The Toyota Way
PROBLEM
SOLVING
PEOPLE and PARTNERS
PROCESS
PHILOSOPHY
Improvement Through People 15
WHAT WE LEARNED
FROM OUR LEAN JOURNEY
Many companies working on Lean focus on the Hardware
(equipment) & Business Processes/tools to expose the
problems.
• Less than 5% of companies starting Lean sustain it in the
long term.
• According to Mike Hoseus (Author of Lean Culture), the
3rd leg of the stool, ‘Humanware’ is often missed.
“Visitors to a Toyota Plant can see the Visual boards, layouts
and the equipment. However they can’t see what/how the employees think”
Lean is a System for People Development
Improvement Through People 16
THE FUNDAMENTALS
OF PEOPLE MOTIVATION
Reference: 2013,
Human Synergistics Conference,
Shaun McCarthy
Improvement Through People 17
KEY SUCCESS OF LEAN (1)
Combining Hoshin Kanri (Strategy Deployment), Cultural Building (Constructive Leadership),
Mini Company & Visual KPI as Key success of LEAN implementation
Culture of Constructive
LeadershipHoshin Kanri Mini Company
True North, Purpose,
Vision, Goals
Respect for Others,
Teamwork
Empowerment,
Problem Made Visible
& Resolved
$
Improvement Through People 18
Which Way are We Going,
and How?Leadership, ownership,
vision, tools, …
Source:
Improvement Through People 19
KEY SUCCESS OF LEAN (2)
[1] Hoshin Kanri = True North = Direction of Management
MINI COMPANY
Improvement Through People 21
Leaders becoming Coaches• Behavioural: Socratic style: Open questions, lack of anger & generally demonstrating
constructive cross functional behaviours.
• Avoiding the use of blame, anywhere.
• Building ownership, trusting subordinates with tasks / projects.
• Beginning to snowball constructive behaviours down.
• Learning to understand the ‘current condition’ through deep Gemba activities.
• Working towards becoming expert problem solvers
[2] Culture of Constructive Leadership
KEY SUCCESS OF LEAN (3)
Improvement Through People 22
Do as I say...How can I help?
Just tell me
what to doHere are
my suggestions
How can we manage …
...without managing?
What do you
think?
Making People: Full Utilization of Potential
[2] Culture of Constructive Leadership
Source:
Improvement Through People 24
What is Mini Company Concept ?
• A way to practice Costumer orientation by involving all employees.
• Everybody is a president of his or her area of responsibility.
• Every “unit” or “department” is equivalent to a Mini company.
• People are owners and run such mini company to accomplish each mission.
Basic of Mini Company
• Self management: People develop a sense of ownership
• Glass-wall management : Making management process visible to everybody (Relevant key management information is shared with people on the shopfloor so that everybody
understand the situation)
• Involvement of ALL employees : People support what they help to create
• Customer supplier relationship : Check and balance mechanism to assure customer orientation while promoting self management
Mini Company [1]
Improvement Through People 25
Mini Company [2]
Framework of Mini Company
Every one of us, as president of our particular area of responsibility needs to generate profit
therefore regardless of rank in the organization, every person should understand what he or
she accountable for and how performance of his or her operation is reported.
Furthermore, on effective reporting mechanism should allow us to see the relationship between the mini company’s contribution and the overall company’s performance.
Since each individual is president of his or her area responsibility, then he or she with the
other mini company member should manage his or her own mini company. Which means
than each mini company should self check or self inspect its own work. And improvement is part of each mini company responsibility as well.
Improvement Through People 26
Mini Company [3]
How to create Mini Company
• Name of the Mini Company• Mission statement
• Company profile : Name of employee, Skills of employee, Costumer-Supplier Relationship• Make customer satisfaction the number one priority
• Scoreboard – a board to monitor the KPI progress and achievement• Daily meetings to discuss problems and opportunities
• Skill development through training plan
• Share accomplishment
• Report progress to Bankers/Investors and peers through departmental or cross functional team
• Use Mini company KPI board and follow PDCA cycle of continuous improvement
Improvement Through People 27
Mini Company [3]
Example of Production’s Mini Company Structure
Structure of mini company in production as viewed from different job responsibility
Packing
warehouse
Trimstore,
Cutting
Improvement Through People 29
Mini Company [5]
Organization of a Mini-Company Meeting Area
It’s important, to make
everything visible !
Source:
Improvement Through People 31
Mini Company [7]
Attending & Late Comers5 S Audit Result & Injury
Skill Matrix Chart
Daily Output & Balancing chart
Why need Visual Management?
o Aligning shopfloor with Hoshin goals/objectives.
o Visual boards are used to visually demonstrating :
- The management condition of the shopfloor
- Alignment daily activities to Hoshin targets
- Exposes gaps between target and actuals
provide the starting point of the Lean
improvement cycle (PDCA)
Quality – PQV Report
Deviation – Problem Solving
Improvement Through People 32
Mini Company [8]
Why need Daily Meeting?
o The daily meeting promoting two-way communication, creating the environment to :
- Address abnormal condition- Develops Supervisors into problem solvers & junior
managers
- Identifies where management support is
required.- Develop team member and identify potential
talent to be a leader
Mini Company Live Board – Identify the Gaps,
to drive Problem Solving
Improvement Through People 33
Mini Company [9]
Production Sewing Line Mini Company
Each Supervisors become the president, all operators / subordinates become engaged members.
Daily Morning Meeting Mini Company (15mins before start working)
o Led by : Rotate operator mostly Examiner and Packing opro Attended by : Supervisor, PQV, Mechanic, Operators
o Meeting Agenda :
- Greeting
- Discuss unachieved KPI from previous day
- Follow up previous action
- Improvement ideas from the operator or kaizen in progress
- Pray
- Yell yell team together
Mini Companies – Developing
Self Managed & Engaged Teams
Improvement Through People 34
Mini Company [10]
Production Sewing Line Mini Company – KPI Achievement
Improvement Through People 35
Mini Company [11]
Sample line has twice a day Daily meeting- Morning meeting with cross
function Customer-supplier relations
- Afternoon meeting with internal sample mini company
Developing
Self Managed &
Engaged Teams
Improvement Through People 36
Mini Company [12]
Mechanic’s Mini Company
called Mechanic United
Mechanic Dept has Daily Meeting after lunch break for internal Mechanic’s Mini company.
And each mechanic also attending the Sewing
Line’s Mini Company morning meeting
Developing
Self Managed &
Engaged Teams
Improvement Through People 37
Mini Company [13]
Mechanic’s
Mini Company
called
Mechanic United
• Mechanic has high contribution for the impact to Production Sewing
Efficiency through their KPI to reduce downtime.
• They create mini company to focus on the downtime reduction to
improve Production Sewing Efficiency that will boost company main
KPI on Factory Efficiency.
• Mini Company Name: Mechanic United
• President (CEO): Agus Kurnia
• KPI Measures:
• Down Time minutes
• Breakdown Occurrences
• Repeat Repair Occurrences
• Response Time in 5 mins
• Style Change Down Time
• Daily meeting at 1:30 PM with all MU members discuss unachieved KPI and each team member share resolved problem solving for
other learning or escalate unresolved problem solving.
MECHANIC UNITED
Improvement Through People 38
Mini Company [14]
Purchasing’s Mini Company
called Pioneer Excellent & Shine
Pioneer Excellent Shine
Improvement Through People 39
Mini Company [15]
One of our Non-production Mini Company is Purchasing Department
Purchasing Dept has aggressive target on their main KPI on LT reduction, RM inventory reduction and
generate RM reduction improvement with resourcing local supplier or negotiate price with Supplier. Since
we have about hundreds of RM item to look after and Raw Material build up 65-70% of our garment cost
so Purchasing Team build 3 mini companies on our main RM category.
Mini Company/Team: “Excellent”President/Team Leader : Septi TanakaMission : To achieve LT reduction on trim elastic with localsourcing and best quality
KPI Measures:• LT reduction• Inventory reduction• RM cost reduction
• RM ETA Accuracy• 1st Bulk Pass rate• Kaizen (improvement initiatives)
Mini Compay/Team : “Shine”
President/CEO : Suharni NingsihMission : To achieve LT reduction on fabric withlocal sourcing with best delivery
KPI Measures:• LT reduction• Inventory reduction• RM cost reduction• RM ETA Accuracy1st Bulk Pass rate• Kaizen (improvement initiatives)
ExcellentShine
Improvement Through People 40
Mini Company [16]
Mini Company/Team : “Pioneer”President/Team Leader : Tuti SusantiMission : To achieve best delivery and quality on local Packaging
KPI Measure :• LT reduction• Inventory reduction• RM cost reduction• RM ETA Accuracy
Kaizen (improvement initiatives)The Daily meeting held per Mini company team to discuss daily issue and problem solving or in progress kaizen initiatives.
A weekly meeting held with all Purchasing Mini Company with the Manager to escalate unsolved problem on unachieved KPI. Each
mini company also measure the absentism of the team member and build their team capability by arranging the training required
for any of the new team member. This is independently manage by the mini company president with little supervision from their
Manager. The Purchasing Manager here then acting as a coach in building the Constructive leadership’s behaviour on the team leader.
AchievementPurchasing main Hoshin KPI has achieved :
• RM LT reduction
• Highly improve our inventory in stock turn
• RM cost reduction
Pioneer
Improvement Through People 50
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or contact via:
Improvement Through People 52
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SALAM IMPROVEMENT !
Improvement Through People 54
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