Lean Round Tables 2015
Sme Downeast Chapter 46
2015 Lean Round Tables
!
Welcome!
Agenda 5:00 – 5:05
Welcome & Introductions
5:05 – 5:30
Dinner and Stage Setting SME & Host Presentations
5:30 – 6:00 Visual Management 1 – Set the Gaps - Continuous Improvement System 2 – See the Gaps - Goal Alignment / Daily Management 3 – Close the Gaps – Daily Kaizen Questions and Discussion
6:05 – 6:55
Plant Tour
7:00 – 7:45
Roundtable Discussion and Presentations
7:45 – 8:00
Wrap Up
‘Connection before Content’ – 3 min • Meet with 1-2 people in the room you haven’t met before and share: – Who you are, where you work, why you’re here tonight. – If you attended last session at Goodwill Industries – what you learned and took away. Did you put into practice anything new since then? - or - What you are hoping to learn in this session about Visual Management
Society of Manufacturing Engineers
Meet – Know - Grow
Networking / Best Practices Leadership Development Knowledge Sharing Professional Recognition Educational and Technical Resources Business Growth Opportunities
Check out the Sme Downeast Chapter 46 website at http://i.sme.org/c046/Home/ If you Google “Downeast Chapter 46”, the website will be the first result.
SME Strategic Initiatives • Professional Development for Members • Technical and Leadership Training • Partnering—ASQ, APICS, MAMe, MEP, AME, Community Colleges, U Maine System, Northeast Lean Collaborative • K-12 and beyond STEM Education Support to grow the future economy of Maine • Your Chapter 46 Board is here to work for you. Want to see an event come to Maine or are looking to connect with someone professionally? Reach out and we will do what we can to make it happen.
SME Value for You • SME is a National Organization with over 100,000 professional members. • Chapter 46 connects you. Members have access to a tremendous network of manufacturing innovation from peers and the connectivity SME provides. • More than manufacturing! We represent healthcare, marketing, aerospace, biomedical, retail, etc. • New you can use - Manufacturing Engineering monthly • magazine and advancedmanufacturing.org. • SME.org has exclusive resources and content for members • on virtually any topic you could need to grow your business. • Professional Certifications – LEAN, CMfgE, Green Manufacturing and more. • Support the future. Your involvement and membership dues support scholarships for engineering students, Middle School and HS Robotics Clubs, School Programs and more.
SME Value for You • Let us know what type of events you are interested in – Lean – Leadership – Technology – Other • Participate on committees – Education – Membership recruitment/retention – Student chapters – Nominating
We thank our partner MAMe The Manufacturers Association of Maine hosts many great events throughout the year and partners with many great collaborators. www.mainemfg.com
Round Table Orders of Business 1. Expect a breakout session after our tour. You may be asked to present! 2. Please share your experiences with the group during questions and answers. formation request 3. After the tour, provide advice to our host on their Lean Initiative and Innovation Ideas. Include your name and contact info if you’d like.
Who are we? • • • • • •
Privately held Company Founded in 1996 “Under One Roof” - Development, Manufacturing, Sales & Marketing Sales & Distribution in Brazil as well as Global Distribution Network 115 Employees – Primarily Scientists Purchased by Ensign Bickford Industries in 2010 Started Lean Journey in 2010
What do we do? OUR MISSION, “To create innovative solutions to diagnostic challenges that provide value to our customers, employees and shareholders.”
SEED
GRAIN
MILLS
FEED
We are a technology company that enables Point of Need testing In Agriculture from Seed to Feed. 13
How do we do it? Immunoassay
Molecular Detection
Test Kits & Readers
Test Kits & Instruments
Develop & Manufacture Quality Products & Technology Platforms 14
Where do we do it? At Point of Need: Field88.
to Grain Silo88. to Laboratory
OUR VISSION, “We are the global market leader and employer of choice, providing the fastest, smartest and most effective analytical tools for every lab, in every field.” 15
Visual Management February 17, 2015
Thanks to our Speakers and Hosts: Panelist A - Mark Quadrini, Lean Director Panelist B - Sonya Hawkins, Manager of Manufacturing Operations Panelist C - Michael Leveille, Manager, Production Planning, Shipping & Receiving
–Moderated by: Doreen Rumery
SME Board Members
Visual Management SET the Gaps Clear and aligned expectation of what it means to WIN
17
Visual Management - EBI Continuous Improvement Systems
Mike Martyn “Own The Gap” 18
Visual Management Strategy Deployment EnviroLogix Top Level "X" Matrix 2014
Increase DNAble Profitability in 2017
Improve operating income > 20% YOY Improve working capital as % of sales by 10%YOY
Chris Southerland
Mark Quadrini
Kathy Brooks
Marie Pupecki
Mark Quadrini
AP4
AP3
Lenity Larribee
Breck Parker
Dean Layton
John Markin
AP2
10. Customer Loyalty (NPS) / Score of >65
Global Breakthrough
9. DNAble Assay Development Cycle Time / 25% Reduction
Targets to Improve "How Much"
8. Closing the Gaps - 1000 Ideas Generated (includes HH)
AP5
Level 1 Improvement Priorities "How"
2014 Annual Objectives "What"
7. On Time Major Project Milestones / >93.5% Achievement
New Products/New Markets/New Customers
Increase Customer Loyalty
Manage costs and generate productivity
Cycle time reduction (including AR and R&D)
6. Order Fill Rate / >97%
AP1
5. First Pass Quality / >97%
Deploy the EBI Continuous Improvement Process Across the Organization Continue to improve customer satisfaction rating (NPS) Develop and Execute Strategy to Drive new products and new markets
2. Gross Margin improvement / >XXX%
Risk Mitigation for Operating Income
Employee Engagement
4. Order to Cash days / 25% Reduction
3. Manage Controllable Budgets / 90% of Plan
1b. DNAble Revenue / XXXM
1a. Immuno Revenue / $XXXM
Pri ma ry Res pons i bi l i ty
Seconda ry Res pons i bi l i ty
Leaders Set the Gaps – What do we need to do to WIN? 19
Visual Management Company Scorecard Max
Month
Month
3
4
5
Milestone
Score
Current Data
2013 Actual
2014 Plan
+5%
+10%
5
50
+11%
XX.X
2013 Actual
2014 Plan
+25%
+50%
1
16.8
+75% 2013 Actual
20%
XX.X
2013 Actual
2014 Plan
+5%
+10%
5
100
61.3%
Marie P.
15%
100%
95%
93%
90%
87.5%
85.0%
4
71.2
85.6%
DAYS
Mark Q.
15%
0.0%
15%
20%
25%
37.5%
50%
0
0
-13.1%
% / 3MMA
Mark Q.
5%
95%
96%
96.5%
97%
98.0%
99%
4
23.5
98.7%
% On Time / 3MMA
Mike L.
5%
95%
96%
96.5%
97%
98%
99%
2
9.1
96.4%
7. On Time R&D Project Milestones (%)
% / YTD
Lee N.
5%
91.3%
92.4%
93.0%
93.5%
94.3%
95.0%
5
25
96.0%
8. Closing the GAPS (Includes HH)
Ideas & Hazards
Lenity L.
5%
0
500
750
1,000
1,200
1400
5
25
1523
Days
Paula L.
5%
0.0%
15%
20%
25%
30%
35%
5
25
52.7%
Survey Results
Sue W.
5%
61
62
62.5
63
63.5
64
0
0
59
Gain share
2.50%
3.75%
5%
6.25%
7.50%
345.6
5.57%
Current State
Threshold
JOP
1
10%
XX.X
Chris S.
10%
%YTD
Marie P.
3. Manage controllable budgets (% Plan)
0.9
4. Order to Cash Days (% Improvement)
2014 ELIX Scorecard Metric (TTI)
UOM
Owner
1a. Immuno Revenue ($M)
$M/ytd
Chris S.
1b. DNAble Revenue ($M)
$M/ytd
2. Gross Margin (%)
5. First Pass Quality (%) 6. Order Fill Rate (%)
9. DNAble Assay Development Cycle Time (% Improvement) 10. Customer Loyalty (NPS)
Scorecard Results: Target = 300 (5%)
Weight
Target
2
January
February
March
April
May
June
July
August
September
October
November
December
135
125
145
140
155
165
190
185
300
305
290
345.6
Operating Income Gate: EBITDA > Minimum
How do we know if we are winning? 20
Visual Management Goal Alignment
Alignment - Show EVERYONE how they contribute to success? 21
Visual Management
Visual Management SEE the Gaps Visual management that allows everyone, everyday to know whether they are winning or losing
22
Visual Management Kanban In the GREEN! ☺
Are we in the RED? If so, What is the Plan to get to Green? 23
Visual Management Metrics, 6S, Resource Gaps
Performance, Resources, Safety 24
Visual Management Morning Market EnviroLogix Order Fill Rate 3MMA 99% 97%
Percentage
95% 93% 91% 89% Dec
2014 3MMA 2014 Stretch Goal
Nov
Oct
Sep
Aug
2014 Plan Baseline (2013 Result) Actual
Jul
Jun
May
Apr
Mar
Feb
Jan
87%
EnviroLogix Net Promoter Score
First Pass Quality (3MMA) 100
100.0% 99.0% 98.0% 97.0% 96.0% 95.0% 94.0% 93.0% 92.0% 91.0% 90.0%
90 80
Baseline
Max Month
Dec-14
Nov-14
Oct-14
Sep-14
Jul-14
Aug-14
Jun-14
Apr-14
May-14
Feb-14
Mar-14
Jan-14
3MMA
60 Score
Target
Experience
78
70 50
61
54
75
Recommend
72
68 67 65
62
65
62
61
60 60 60 59 56 58 58 57 58 59 58 5758 56
40
GOAL Stretch
30 20 10 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month
Escalate Issues when they are FRESH Leaders and Managers support Associates to close Gaps 25
Visual Management CLOSE the Gaps Daily team based problem solving aligned with organizational goals
26
Visual Management Daily Huddle Boards
Daily Team Huddles - Work the Gaps 27
Visual Management Idea Generation
Daily Kaizen - More than 800 Improvement Ideas generated in 2014 (47%
Implemented) and More than 700 Hazards Identified and Addressed by Employees 28
What do we have to show for all our efforts?
RESULTS!! Exceptional Customer Loyalty – NPS of 59 47% Reduction in Manufacturing Lead Time 52% Reduction in Product Development Cycle Time 57% Reduction in Inventory 96% Order Fill Rate 98% First Pass Quality >1400 Improvements Implemented in 2014 – Daily Kaizen
29
Visual Management
SET the GAPs SEE the GAPs CLOSE the GAPs
GO TO GEMBA 30
Q&A
Questions Welcome
31
Special Instructions for the Tour
You will not need any PPE for the Tour We will be walking outside to the building next door so please bring
your coats We request that you do not take any photographs during the tour. However, please let us know if there is something you are interested in and we will do our best to accommodate.
32
Plant Tour 6:05 to 6:55 During the tour record examples of outstanding use of visual management and suggestions of where there is potential for improvement.
Focus Questions • Do you know if you are winning or losing every day? • How are you using Visual Management in your business? • What three ideas will you take back to your team?
Table Discussions 7:00 – 7:45 Topic Summary 10 min total • Select Leader • Brainstorm Topic • Prepare Summary • Assign SpokesPerson
Large Group Debrief 5 min per Topic • Spokesperson Report out - 5 min • Large group discussion 5 min
Lean Resources Gemba Kaizen —Masaaki Imai Visual Controls – Chris Ortiz, Murray Park
Creating Your Lean Future State: How to Move from Seeing to Doing - Tom Luyster, Don Tapping
Visual Tools: Collected Practices and Cases - Taylor & Francis
Wrap Up - Plus / Delta What worked well? + + + + + + +
What do you want at the next event? -
Thank you for coming to
! See you at the next roundtable at Jøtul North America 55 Hutcherson Drive Gorham, ME March 17, 2015 Topic: Lean as a Game Changer
2015 Lean Round Tables
!
Welcome!
Agenda 5:00 – 5:05
Welcome & Introductions
5:05 – 5:30
Dinner and Stage Setting SME & Host Presentations
5:30 – 6:00 Visual Management 1 – Set the Gaps - Continuous Improvement System 2 – See the Gaps - Goal Alignment / Daily Management 3 – Close the Gaps – Daily Kaizen Questions and Discussion
6:05 – 6:55
Plant Tour
7:00 – 7:45
Roundtable Discussion and Presentations
7:45 – 8:00
Wrap Up
‘Connection before Content’ – 3 min • Meet with 1-2 people in the room you haven’t met before and share: – Who you are, where you work, why you’re here tonight. – If you attended last session at Goodwill Industries – what you learned and took away. Did you put into practice anything new since then? - or - What you are hoping to learn in this session about Visual Management
Society of Manufacturing Engineers
Meet – Know - Grow
Networking / Best Practices Leadership Development Knowledge Sharing Professional Recognition Educational and Technical Resources Business Growth Opportunities
Check out the Sme Downeast Chapter 46 website at http://i.sme.org/c046/Home/ If you Google “Downeast Chapter 46”, the website will be the first result.
SME Strategic Initiatives • Professional Development for Members • Technical and Leadership Training • Partnering—ASQ, APICS, MAMe, MEP, AME, Community Colleges, U Maine System, Northeast Lean Collaborative • K-12 and beyond STEM Education Support to grow the future economy of Maine • Your Chapter 46 Board is here to work for you. Want to see an event come to Maine or are looking to connect with someone professionally? Reach out and we will do what we can to make it happen.
SME Value for You • SME is a National Organization with over 100,000 professional members. • Chapter 46 connects you. Members have access to a tremendous network of manufacturing innovation from peers and the connectivity SME provides. • More than manufacturing! We represent healthcare, marketing, aerospace, biomedical, retail, etc. • New you can use - Manufacturing Engineering monthly • magazine and advancedmanufacturing.org. • SME.org has exclusive resources and content for members • on virtually any topic you could need to grow your business. • Professional Certifications – LEAN, CMfgE, Green Manufacturing and more. • Support the future. Your involvement and membership dues support scholarships for engineering students, Middle School and HS Robotics Clubs, School Programs and more.
SME Value for You • Let us know what type of events you are interested in – Lean – Leadership – Technology – Other • Participate on committees – Education – Membership recruitment/retention – Student chapters – Nominating
We thank our partner MAMe The Manufacturers Association of Maine hosts many great events throughout the year and partners with many great collaborators. www.mainemfg.com
Round Table Orders of Business 1. Expect a breakout session after our tour. You may be asked to present! 2. Please share your experiences with the group during questions and answers. formation request 3. After the tour, provide advice to our host on their Lean Initiative and Innovation Ideas. Include your name and contact info if you’d like.
Who are we? • • • • • •
Privately held Company Founded in 1996 “Under One Roof” - Development, Manufacturing, Sales & Marketing Sales & Distribution in Brazil as well as Global Distribution Network 115 Employees – Primarily Scientists Purchased by Ensign Bickford Industries in 2010 Started Lean Journey in 2010
What do we do? OUR MISSION, “To create innovative solutions to diagnostic challenges that provide value to our customers, employees and shareholders.”
SEED
GRAIN
MILLS
FEED
We are a technology company that enables Point of Need testing In Agriculture from Seed to Feed. 13
How do we do it? Immunoassay
Molecular Detection
Test Kits & Readers
Test Kits & Instruments
Develop & Manufacture Quality Products & Technology Platforms 14
Where do we do it? At Point of Need: Field88.
to Grain Silo88. to Laboratory
OUR VISSION, “We are the global market leader and employer of choice, providing the fastest, smartest and most effective analytical tools for every lab, in every field.” 15
Visual Management February 17, 2015
Thanks to our Speakers and Hosts: Panelist A - Mark Quadrini, Lean Director Panelist B - Sonya Hawkins, Manager of Manufacturing Operations Panelist C - Michael Leveille, Manager, Production Planning, Shipping & Receiving
–Moderated by: Doreen Rumery
SME Board Members
Visual Management SET the Gaps Clear and aligned expectation of what it means to WIN
17
Visual Management - EBI Continuous Improvement Systems
Mike Martyn “Own The Gap” 18
Visual Management Strategy Deployment EnviroLogix Top Level "X" Matrix 2014
Increase DNAble Profitability in 2017
Improve operating income > 20% YOY Improve working capital as % of sales by 10%YOY
Chris Southerland
Mark Quadrini
Kathy Brooks
Marie Pupecki
Mark Quadrini
AP4
AP3
Lenity Larribee
Breck Parker
Dean Layton
John Markin
AP2
10. Customer Loyalty (NPS) / Score of >65
Global Breakthrough
9. DNAble Assay Development Cycle Time / 25% Reduction
Targets to Improve "How Much"
8. Closing the Gaps - 1000 Ideas Generated (includes HH)
AP5
Level 1 Improvement Priorities "How"
2014 Annual Objectives "What"
7. On Time Major Project Milestones / >93.5% Achievement
New Products/New Markets/New Customers
Increase Customer Loyalty
Manage costs and generate productivity
Cycle time reduction (including AR and R&D)
6. Order Fill Rate / >97%
AP1
5. First Pass Quality / >97%
Deploy the EBI Continuous Improvement Process Across the Organization Continue to improve customer satisfaction rating (NPS) Develop and Execute Strategy to Drive new products and new markets
2. Gross Margin improvement / >XXX%
Risk Mitigation for Operating Income
Employee Engagement
4. Order to Cash days / 25% Reduction
3. Manage Controllable Budgets / 90% of Plan
1b. DNAble Revenue / XXXM
1a. Immuno Revenue / $XXXM
Pri ma ry Res pons i bi l i ty
Seconda ry Res pons i bi l i ty
Leaders Set the Gaps – What do we need to do to WIN? 19
Visual Management Company Scorecard Max
Month
Month
3
4
5
Milestone
Score
Current Data
2013 Actual
2014 Plan
+5%
+10%
5
50
+11%
XX.X
2013 Actual
2014 Plan
+25%
+50%
1
16.8
+75% 2013 Actual
20%
XX.X
2013 Actual
2014 Plan
+5%
+10%
5
100
61.3%
Marie P.
15%
100%
95%
93%
90%
87.5%
85.0%
4
71.2
85.6%
DAYS
Mark Q.
15%
0.0%
15%
20%
25%
37.5%
50%
0
0
-13.1%
% / 3MMA
Mark Q.
5%
95%
96%
96.5%
97%
98.0%
99%
4
23.5
98.7%
% On Time / 3MMA
Mike L.
5%
95%
96%
96.5%
97%
98%
99%
2
9.1
96.4%
7. On Time R&D Project Milestones (%)
% / YTD
Lee N.
5%
91.3%
92.4%
93.0%
93.5%
94.3%
95.0%
5
25
96.0%
8. Closing the GAPS (Includes HH)
Ideas & Hazards
Lenity L.
5%
0
500
750
1,000
1,200
1400
5
25
1523
Days
Paula L.
5%
0.0%
15%
20%
25%
30%
35%
5
25
52.7%
Survey Results
Sue W.
5%
61
62
62.5
63
63.5
64
0
0
59
Gain share
2.50%
3.75%
5%
6.25%
7.50%
345.6
5.57%
Current State
Threshold
JOP
1
10%
XX.X
Chris S.
10%
%YTD
Marie P.
3. Manage controllable budgets (% Plan)
0.9
4. Order to Cash Days (% Improvement)
2014 ELIX Scorecard Metric (TTI)
UOM
Owner
1a. Immuno Revenue ($M)
$M/ytd
Chris S.
1b. DNAble Revenue ($M)
$M/ytd
2. Gross Margin (%)
5. First Pass Quality (%) 6. Order Fill Rate (%)
9. DNAble Assay Development Cycle Time (% Improvement) 10. Customer Loyalty (NPS)
Scorecard Results: Target = 300 (5%)
Weight
Target
2
January
February
March
April
May
June
July
August
September
October
November
December
135
125
145
140
155
165
190
185
300
305
290
345.6
Operating Income Gate: EBITDA > Minimum
How do we know if we are winning? 20
Visual Management Goal Alignment
Alignment - Show EVERYONE how they contribute to success? 21
Visual Management
Visual Management SEE the Gaps Visual management that allows everyone, everyday to know whether they are winning or losing
22
Visual Management Kanban In the GREEN! ☺
Are we in the RED? If so, What is the Plan to get to Green? 23
Visual Management Metrics, 6S, Resource Gaps
Performance, Resources, Safety 24
Visual Management Morning Market EnviroLogix Order Fill Rate 3MMA 99% 97%
Percentage
95% 93% 91% 89% Dec
2014 3MMA 2014 Stretch Goal
Nov
Oct
Sep
Aug
2014 Plan Baseline (2013 Result) Actual
Jul
Jun
May
Apr
Mar
Feb
Jan
87%
EnviroLogix Net Promoter Score
First Pass Quality (3MMA) 100
100.0% 99.0% 98.0% 97.0% 96.0% 95.0% 94.0% 93.0% 92.0% 91.0% 90.0%
90 80
Baseline
Max Month
Dec-14
Nov-14
Oct-14
Sep-14
Jul-14
Aug-14
Jun-14
Apr-14
May-14
Feb-14
Mar-14
Jan-14
3MMA
60 Score
Target
Experience
78
70 50
61
54
75
Recommend
72
68 67 65
62
65
62
61
60 60 60 59 56 58 58 57 58 59 58 5758 56
40
GOAL Stretch
30 20 10 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month
Escalate Issues when they are FRESH Leaders and Managers support Associates to close Gaps 25
Visual Management CLOSE the Gaps Daily team based problem solving aligned with organizational goals
26
Visual Management Daily Huddle Boards
Daily Team Huddles - Work the Gaps 27
Visual Management Idea Generation
Daily Kaizen - More than 800 Improvement Ideas generated in 2014 (47%
Implemented) and More than 700 Hazards Identified and Addressed by Employees 28
What do we have to show for all our efforts?
RESULTS!! Exceptional Customer Loyalty – NPS of 59 47% Reduction in Manufacturing Lead Time 52% Reduction in Product Development Cycle Time 57% Reduction in Inventory 96% Order Fill Rate 98% First Pass Quality >1400 Improvements Implemented in 2014 – Daily Kaizen
29
Visual Management
SET the GAPs SEE the GAPs CLOSE the GAPs
GO TO GEMBA 30
Q&A
Questions Welcome
31
Special Instructions for the Tour
You will not need any PPE for the Tour We will be walking outside to the building next door so please bring
your coats We request that you do not take any photographs during the tour. However, please let us know if there is something you are interested in and we will do our best to accommodate.
32
Plant Tour 6:05 to 6:55 During the tour record examples of outstanding use of visual management and suggestions of where there is potential for improvement.
Focus Questions • Do you know if you are winning or losing every day? • How are you using Visual Management in your business? • What three ideas will you take back to your team?
Table Discussions 7:00 – 7:45 Topic Summary 10 min total • Select Leader • Brainstorm Topic • Prepare Summary • Assign SpokesPerson
Large Group Debrief 5 min per Topic • Spokesperson Report out - 5 min • Large group discussion 5 min
Lean Resources Gemba Kaizen —Masaaki Imai Visual Controls – Chris Ortiz, Murray Park
Creating Your Lean Future State: How to Move from Seeing to Doing - Tom Luyster, Don Tapping
Visual Tools: Collected Practices and Cases - Taylor & Francis
Wrap Up - Plus / Delta What worked well? + + + + + + +
What do you want at the next event? -
Thank you for coming to
! See you at the next roundtable at Jøtul North America 55 Hutcherson Drive Gorham, ME March 17, 2015 Topic: Lean as a Game Changer
