Creating a Culture of Daily Kaizen-Bryan Crowell
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The Model
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Testing and Refining the Model:
Oil
Higher Education
Manufacturing
Health Care
Retail Sales
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Alliant Techsystems, Inc.
Alliant Techsystems, Inc. (ATK) is a premier
aerospace and defense company with more than
18,000 employees, four operating segments, and
operations in 24 states, Puerto Rico and
internationally. ATK’s Armament Systems division
is the world’s largest manufacturer of military
ammunition and medium caliber gun systems and
generates 45% of ATK’s total sales.
First 12 months:
31% improvement in throughput
100% on time delivery (first time)
$38 million in savings
40,000 ideas implemented
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University of Washington
Founded in 1861, the University of Washington (UW) is one of the oldest public universities on the West Coast with three campuses,
92,000 students and a presence in more than 50 locations in 10 countries. UW ranks in the top 20 research universities in the world
with over $1.4 billion in annual grants. Six UW faculty members have won Nobel Prizes since 1989.
First 24 months:
104 areas involved
910 team members engaged
24 internal coaches
17,000+ implemented ideas
472% Return on Investment
$15 million in hard savings last year
(30% of the teams audited)
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Christie Clinic
Founded in 1929, Christie Clinic is one
of the largest physician-owned, multispecialty group medical practices in
Illinois. Christie Clinic has 153 providers
and more than 800 employees over 16
locations.
First 24 months:
7% increase in gross margin
22.1% increase in net income per
physician
29% increase in shareholder equity
7.6% increase in satisfaction
10,000+ ideas implemented
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La-Z-Boy Furniture
Founded in 1927, La-Z-Boy is one of the
world’s leading residential furniture producers.
The company manufactures a full line of
products for the living room and family room,
including recliners, sofas and love seats, sleep
sofas, modular furniture and leather
upholstery..
First 24 months:
34.9% increase in revenue per opportunity
71.2% increase in in home as % of sales
41.7% increase in inventory turns
3,700+ ideas implemented
4.4% increase in gross margins
13.4% reduction in traffic
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Today’s Focus
+
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Understanding the Four Key Systems
“What does it mean to win or
lose?”
“Are we winning or losing?”
Define clear expectations of what it
means to win or lose at each level of
the organization
Install visual management systems to
align activities and see problems in real
time
“How can I help you win
more often?”
“If we are losing, what are we
doing about it?”
Engage management through
reaction protocol, coaching and
standard follow up
Engage employees through teambased problem solving, daily kaizen
and recognition
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SISU Consulting
Group. 2012.
All Rights
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Consulting
Group.
2012.
AllReserved
Rights Reserved
There was a time when the
lone eagle on the Mountain
was a popular symbol for
leadership
In our fast-moving
organization we must
have leaders
throughout it
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If you want a better
metaphor than the eagle
consider the wild and wily
Great Northern Geese
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Everyone is Aligned
A flock of Geese will fly
thousands of miles in a
perfect V formation-and
therein lies the secret: As
each bird moves its great
wings, it creates an uplift for
the bird following. Formation
flying is 70% more efficient
than flying alone.
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Setting and Aligning Strategy
(Defining What it Means to Win)
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Key Elements of Strategy Deployment
Why
What
How
Do
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Policy Deployment– Goals to Action
JD Goals:
GOAL
Delivery
Quality
GOAL
Cost
Employee
Involvement
OBJECTIVES
orm Team
rmT
Engage Mgmt.
At Worksite
Prevent Problem
Recurrence
Employe
JDPS
MANAGEMENT CREATESe STRATEGIES
Engage
ment
SUPERVISORS CREATE ACTION PLANS
ASSOCIATES CREATE RESULTS
The company’s needs and
opportunities are translated into
Goals by the business leaders
These Goals let the team know
when the Company Wins
-Strengthen Business Partners: World
Class Supply Chain Partner for our
customers and suppliers
-Strengthen Stake Holders: Drive EBIT,
Increase Profit Sharing over target
-Strengthen our Employees: Educate and
Train employees to be successful at work
and Life
Strengthen the Community: We will
actively support the community through
service and by having a positive impact on
the environment
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Ac Policy Deployment– Goals to action
GOAL
Delivery
Quality
Quality
OBJECTIVES
orm Team
Delivery
Safety
Cost
Employee
Involvement
rmT
Cost
Employee
Involvement
OBJECTIVES
Engage Mgmt.
At Worksite
Prevent Problem
Recurrence
Employe
MANAGEMENT CREATESe STRATEGIES
Engage
ment
SUPERVISORS CREATE ACTION PLANS
ASSOCIATES CREATE RESULTS
Goals are applied to key areas and
processes with clearly stated Business
Objectives. The Metrics for each
objective. Let the team know how we
keep score
JD Operational Objectives:
•Safety: No Accidents, Injuries, or environmental findings
•Metric TRR less than 2
•Environmental Score above 97
•Quality: 100 % first pass yield
•Reduce COQ by 20 mill
•Improve FPY reduce LAT failures by 20%
•Delivery: 100% on time internal and external demand
•OTD 90%VS over 90%
•Perfect transition to production
•Improve OA by 80%
•Employee Engagement: Engaged employees driving results
•5 suggestions implemented per person
•2 projects implemented per 10 employees
•Cost: Eliminate waste through JDPS principles
•Labor efficiency >100%
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Strategy Deployment– Goals to Action
JD Operational Strategies
Engage Mgt at the worksite through reaction protocols,
daily meetings and standardized work
GOAL
OBJECTIVES
Prevent problem reoccurrence with effective problem
solving ,yokoten, and process focus
JDPS
MANAGEMENT
CREATES STRATEGIES
PES
Employee
MANAGEMENT CREATES
STRATEGIES
Engagement
SUPERVISORS CREATE ACTION PLANS
Engage each person in continuous improvement ,
through training and recognition
Develop processes to promote stop and fix culture.
Use JDPS to facilitate flow and eliminate waste.
ASSOCIATES CREATE RESULTS
Objectives are translated into Strategies for each
business area. Strategies are the game plan to score
and win.
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Strategy Deployment– Goals to Action
GOAL
OBJECTIVES
PES
Employee
MANAGEMENT CREATES
STRATEGIES
Engagement
SUPERVISORS CREATE ACTION PLANS
SUPERVISORS CREATE ACTION PLANS
ASSOCIATES CREATE RESULTS
Detailed Actions are planned and implemented in every
work area.
These are the Plays to be executed on the field
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Even the best plans will fail unless supported by rigorous
management follow up
Actions must be tracked and measured to assure
Results meet Goals
Managers role to get results
Managers get results through people
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Strategy Deployment– Goals to Action
How Many Brains in your organization
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Cascading Organizational Goals and Objectives
Plant Scrap Results
Organization
Group Scrap Results
Department
Team Scrap Results
Team
Machine Scrap Results
Individual
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When is it Working?
Everyone understands the direction and is
focused on the goals
Adjustments are made at each level by
those closest to the source
Autonomy is created and teams are
empowered
Enables the development of a kaizen
culture
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Installing Visual Management
(Seeing Problems in Real Time)
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Visual Management
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Strategy Deployment, Process Design, Jidoka
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Strengthening Community, Partners & Employees
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Creating a Visual Management System
•Visual management needs to be established at
every level of the organization
•Visual management connects the “how, why &
what” of daily kaizen
Line LMPU Results
Line Scrap Results
Supervisor LMPU Results
Supervisor Scrap Results
Manager LMPU Results
Manager Scrap Results
Plant Scrap Results
Plant LMPU Results
Copyright: SISU Consulting Group. 2012. All Rights Reserved
Weekly
Throughput
trend
Visual Management Aligns the Goals
Scrap
Customer Returns
Efficiency
and trend
Safety
Hourly
throughput
Training and
Yokoten
Daily
escalation
Suggestion
Status
Abnormality
Chart
Projects
Suggestion
Process
5S Score
Copyright: SISU Consulting Group. 2012. All Rights Reserved
Visuals Summarize the Goals (Are we winning)
VS-8 Improvement Team
Team Standards
VS-8 Improvement Team
Date: Weekly Month
Week # Goal
Goal
September
Team Leader:
8/30
9/6
9/13
1
2
3
Strengthen Business Partners and
Stakeholders
Quality:
Chad Sorenson
4
Number of weeks completed:
Operator Id Scrap:
$
875.00
Q.A. Identified Scrap
$
15.00
$ 3,500.00
$
Rev. NC
WEEK
TTL
9/20
A VG.
%
4
$389.31
$350.26
$193.37
$890.39
$ 1,823.33
$0.00
$0.00
$0.00
$0.00
$ 0.00
$ 0.00
110%
$ 0.00
$ 0.00
100%
60.00
$
455.83
and Rework:
Cust. Identified Scrap
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
P ro duc t A udit S c o re :
100%
100%
100%
100%
100%
100%
100%
100.0%
C A R e s po ns e S c o re : ( 2 We e k s )
100%
100%
100%
100%
100%
100%
100%
100.0%
System Audit Score:
100%
100%
100%
100%
100%
100%
100%
100.0%
and Rework:
A v e ra ge
Strengthen Our
People
110.0%
Cost of Production:
Overall Productivity
100%
100%
134%
87%
109%
99%
107%
107.3%
Scheduled P.M.
100%
100%
100%
100%
100%
100%
100%
100.0%
A v e ra ge
106.0%
Safety, 5S and Training:
Housekeeping and 5S Score
100%
100%
96%
96%
96%
96%
96%
96%
Reportable Incidents:
100%
100%
100%
100%
100%
100%
100%
100%
150%
100%each
Improvement Ideas
1
1
1
1
1
4
Skill Increases
1
0
0
0
0
0
A v e ra ge
Strengthen
Business
Partners
150.0%
0%
90.3%
Schedule:
We e k ly T hro ughput P e rf o rm a nc e
100%
100%
119%
70%
90%
96%
94%
93.8%
On Time to Shift
100%
100%
100%
100%
100%
100%
100%
100.0%
A v e ra ge
O n t i me t o shi f t w i l l b e cal cul at ed as a 5% d ed uct i o n f o r ever y o ccur r ence.
Weekly Combined Final Score (%)
115.1%
105.0%
104.0%
104.0%
95.9
Average Point s
Final Scores for Quarter
Quality
Cost of Production
Safety
Schedule
Combined Final Score/100
Combined Final Score (%)
Percent Possible
Final
Score
140.00%
120.00%
115.1%
105.0%
104.0%
104.0%
2
3
4
100.00%
110.0%
40
44.0
106.0%
30
31.8
60.00%
90.3%
6
5.4
40.00%
95.0%
24
22.8
20.00%
104.0
104.0%
80.00%
0.00%
1
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95.0%
Real Time Visual Management
Area managers know
where to engage
Operators if they’re
winning or losing
during the shift
Supervisors know if
they’ll meet weekly
targets
Supervisors know
where members are
engaged now
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Techs know
priorities in realtime
What Do Visuals Do?
• Connect everyone to the mission of the
organization through aligned action
• Create an environment where abnormal
vs. normal can be seen at a glance
• Enable team based problem solving at
the point of use in real time
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Engaging Teams through Daily Kaizen
(Seeing
(SolvingProblems
ProblemsininReal
RealTime)
Time)
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See the Problem
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Respond to the Problem
• Real Time Reaction
Protocol
• Rules for Reaction
1. Schedule Weekend
OT
2. Notify Manager
1. Start Collecting Information
2. Dispatch Maintenance
3. Notify Quality
4. Call Hot shot
4. Notify supervisor
1.
Work in-between shift
2. Notify Supervisor
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Understand to the Problem (Give the team the
data, Leverage Knowledge and skill of team)
1st Level Pareto
(Escalate the Issue)
2nd Level Pareto
(Focus your Search)
Align focus real-time
(Dynamic Drill-Down)
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Enable team based problem solving at the point of
use in real time
Machine
Histories &
Actions
Get what’s
needed to
repair
Update
Action &
Status
Real-time
access to
TWI
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Understand the Problem
Investigate the Cause and Answer
the Question “Why”
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Solve the Problem
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Keys to Idea Systems
• Keep it simple and visual
• Owned by the team
• Connect it to a simple and standard
follow up process
• IMPLEMENT IDEAS QUICKLY
• Dedicate time for problem solving
and kaizen
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Machinist are way Cool
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Generating Great Ideas (L. Thompson)
• Focus on quantity over
quality
• Document every idea
• Individually generate ideas
then present to team (Brainwriting)
• Spend time with other teams
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Celebrate - Inspire them with Recognition
Recognize them and they
will inspire everyone to
perform
Make the results
• Visual
• Promote success
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Keys to Effective Recognition
Make it Personal - Put a
Name and a Face to the
Change
Give a Theme to the
Change
Be Specific about the
Behaviors
Be Sincere...Does the
Behavior Really Matter?
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Engaging Managers in Standard Follow Up
(Going to Gemba and Coaching for Success)
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Why Standardize Follow Up?
• To ensure management faces reality
by going to gemba
• The best Management follow up is
real time with escalation protocols
• To coach employees and reinforce
importance of standards
• To assist in problem solving to
support daily kaizen
• To build trust with team members
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Elements of Standard Follow Up
• Individual and Team Gap Reviews
- Daily, Weekly, Monthly, Quarterly
• 1 on 1 Coaching
• Escalation & Reaction Protocols
• Leader Standard Work
• Yokoten
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JDPS Daily Escalation Process
Team Huddle
3:45 p.m.
• Work Center Team Meets both shifts
• Review Abnormalities
• Escalate issues
• Discuss Corrective Actions
• Ideas for improvement
• Recognize Team members
Escalation
Team Leader
Huddle 8:00
a.m.
• All team leaders meet daily
• Report on current status and performance
• Share corrective actions and lessons learned
• Escalate issues to management team
• Recognize Team members
Management Action and support
Management
Team Huddle
8:30
• Review shop Status
• Take Action for escalation
• Review past due CAR
• Report on constraints
• Share lessons learned
• Recognize team members
Standardized Work
Process Standard
Work
Standardized Work
M
5s Review
S
af
et
y
Th
All Levels of management
have standardized work
Participate Team Huddle
Ask employee if they have any saf ety concerns
Process Sheet being Follow ed
ity
W
Ask employee if they are winning or losing
PPE adherance, Smock Glasses, Lif ting Standards
Q
ua
l
T
Scrap Reporting by Shif t/ Red bin- Yellow bin process
Standardized work should
be focused on the process
Validate a product f eature/Product Audit
D
el
iv
er
y
Productivity Normal or Abnormal
Problem Solving: Five Why's f or Set up or Run Time
Validate following Priority Report/Schedule/Pull System
C
os
t
E
m
pl
oy
ee
Reaction Protocols being f ollow ed
Validate the Inspect your Neighbot process
Reivew kaizen board f ollow protocol
Ask employee if they have any Kaizen idea
Review one employee to standard w ork
Validate Training Matrix
Review throughput
Validate Set up times using the timers
All levels should have
common standard
work activities
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Keys to Standard Follow Up
•Should support the
development and
sustainment of the
Four Key Systems
•Make it visual & hold
leaders accountable
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Everyone Leads
At a distance, the flock appears to
be guided by a single leader. The
lead bird does in fact guide the
formation, winging smoothly and
confidently through the oncoming
elements. If the lead bird tires,
however, it rotates back into
formation and another bird moves
quickly to the point position.
Leadership is willingly shared, and
each bird knows exactly where the
entire group is headed.
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Engagement Multipliers
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Everyone Cares
•In good times or bad, Great
Northern Geese stand by
each other. When a member
of the flock gets sick or
wounded, two geese drop
out of formation and follow it
down to help and protect it.
They stay with it until it is
able to fly again. Then they
soar off together to catch up
with the flock
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W ECARE
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WE CARE
• Monthly Service Activities
• Quarterly Employee Appreciation
activities
• DOL Certified Apprentice Program
• Profit Sharing Program
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We Care
Improve employees lives through
•community involvement
•development & training
•fun activities
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We Care
Focus culture towards teams, empowered employees and personal respect.
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What Does an Engaged Workforce Look Like?
•
Fun but focused environment
•
Shared ownership of the problems
•
Team members generating and
implementing lots of ideas
•
Results (5x rate of improvement)
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JD Machine
Founded in 1979 and located in Ogden, Utah,
JD Machine is a privately held manufacturer of
high value machined parts, sheet metal
components and complex assemblies. The
company employs 140 team members and was
awarded the Utah Manufacturer of the Year
Award in 2012. And a Modern Machine Shop
Top Shop 2014.
3 years:
•59 increase in sales
•99.6% FPY (record)
•Record Delivery
•90% reduction in past due jobs
•Record Profitability
5,000+ ideas implemented
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But if you can’t empower people…
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If we have as much sense as geese,
we too will share the leadership and
stand by each other in difficult times as
well as when we are strong
-Dan Zadia
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