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Implementing Non-Manufacturing Lean: One Company's Experience

Implementing Non-Manufacturing Lean: One Company's Experience. Presented by Tim Bloudek – Quality Manager March 2, 2006. About Braas Company. Distributor of products and solutions for Industrial Automation 100% employee owned – 75% by an ESOP trust and 25% by individual employees

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Implementing Non-Manufacturing Lean: One Company's Experience

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  1. Implementing Non-Manufacturing Lean: One Company's Experience Presented by Tim Bloudek – Quality Manager March 2, 2006

  2. About Braas Company • Distributor of products and solutions for Industrial Automation • 100% employee owned – 75% by an ESOP trust and 25% by individual employees • Approximately 100 employees • Offices in MN, WI, FL, IA, NE, IL

  3. Why Lean Administration? • ‘Good is the enemy of great’ – Jim CollinsGood to Great • Desire for better customer service • Desire for improved financial performance • Waste is prevalent and must be minimized • Many lean tools available & applicable

  4. First Steps Along the Lean Journey at Braas • Top Mgm’t Commitment – Nov 2003 • Consultant Selection- July 2004 • Introduced Kaizen Events – Oct 2004 • Introduced 6S – Mar 2005 • Began Policy Deployment – July 2005 • Introducing HPS – Nov 2005

  5. Top Management Commitment • Vision began with example from a supplier (2003) • Previous CEO helped us create our vision and begin our journey (2004) • Current CEO and management team are committed to the journey • Requires a cultural change across the organization

  6. ConsultantsChallenges • Not many consultants with Lean office experience • Matching Consultant personality with Company culture • Flexibility of the consultant • Cost

  7. ConsultantsBenefits • Experienced trainer and mentor • Event leader/facilitator • Broad range of experiences • Challenges our current thinking • Management coach for Lean transformation • ‘Task Master’

  8. Kaizen Events - Challenges • Opportunities abound but may be difficult to identify • Kaizen events tend to be complex - Simpler projects yield minimal results (CI) • Baseline data may not exist • Establishing measurable goals not easy

  9. Kaizen Events - Challenges • Concurrent team facilitation and team participation • Mentally exhausting • Only a small number of employees share the experience and learning • Sustaining results

  10. Kaizen events - Benefits • Generally cross functional in nature • First hand learning opportunity • Value Stream Map • Swim Lane Diagram • Process Flow Diagram • Kaizen Newspaper • Plus / Delta

  11. Swim Lane Map

  12. Kaizen Newspaper

  13. Plus / Delta • Daily wrap up during the Kaizen event • What went right? • What needs to be changed or improved upon? • Anything is ok to mention

  14. Kaizen events - Benefits • Excellent team building experience • Strong sense of accomplishment • Potentially powerful results

  15. Kaizen Events Tackled • On Time Delivery • Customer Account Holds • New Employee Orientation & Training • CRM Design Criteria

  16. Event results • Implemented an on time delivery metric with current accuracy of 76% (OTD) • Increased one touch order entry from 70% to a sustained 87% (On Hold) • Implemented a pre hire and post hire process for customer service • Developed a CRM design specification

  17. Lessons learned • We CAN work together for 5 straight days and nobody left! • There is a lot of knowledge within Braas that when focused on an issue can yield great results. • It’s OK and even good to fail early (and often). • What seems easy and simple on the surface isn’t always that easy and simple.

  18. Lessons learned – cont. • Consistency of process, definition of terms and follow up is critical. • Kaizen events can help knock down walls between departments. • Sustaining gains takes a lot of effort and energy.

  19. 6S Early Results • Recycled 8 skids of old IT ‘stuff’ plus donated 26 monitors & office supplies to schools • Application engineering removed 5 file cabinets, two book cases and other miscellaneous of ‘stuff’ • Work areas more organized and functional • Better record retention schedule need surfaced • Good start

  20. OK, So Now What? • Kaizen events were interesting and worthwhile but how do we decide what to do next? • 6S has some benefits but how do we decide what is really important to the organization? • What can we do to steer the culture toward improvements?

  21. Policy Deployment “Aligning and focusing our efforts to execute our strategy and achieve our vision.”

  22. Terminology • Vision - Where are we going? What do we want to be? Can you see where we want to be in the future? (10 – 20 years) • Strategy – What is the high level view for ‘how’ we are going to achieve our vision? (5 – 10 years) • Initiatives – Where will we focus our efforts and limited resources? (1 – 3 years)

  23. Terminology – cont. • Goals & Objectives – What are the tangible and actionable items that reflect the business strategy? (1 year)

  24. Braas Company Vision “We will be a global supplier of world-class automation solutions”

  25. Braas Company Strategies • Improve Sales Effectiveness • Seek Products and Suppliers for Long-term Growth • Grow High Value Services • Geographic Expansion

  26. Braas Company Initiatives • Meet revenue budget goals • Improve GM rate • Continued expansion of Lean • Implementation of CRM tool

  27. Braas Company Objectives • Achieve an annual operating income of X% • Invest in Braas for long-term financial stability and health

  28. Braas Company Goals • Achieve sales revenue of $X for FY06 • Achieve overall GM of Y% for FY06 • Achieve effective implementation of PD by end of FY06 • Fully operational CRM by end of FY06

  29. Policy Deployment Matrix

  30. Initiative Tracking & Reporting

  31. Policy Deployment • Focuses the organization and its resources on the critical few initiatives • Provides a method for de-selecting non critical activities • Ensures everyone is working toward the same ends • Minimizes wasteful use of scarce resources

  32. High Performance Supervision • Involves supervisors and other functional area leaders and their staff • Identifies key metrics for each area • Creates a link from the strategic plan and PD initiatives to front line activities • Helps drives improvement actions to all levels of the organization

  33. Wrap up • Lots of tools available • Value stream mapping • Kaizen events • 6S • Standard work • Six sigma • Policy deployment and HPS are methods that use the various tools

  34. Our rate of improvement must increase for us to prosper • Our world is different today and will be different again tomorrow • Improvement must be methodical and transferable • Technology can be an enabler or destroyer of growth or improvement – it’ not a silver bullet • Continuous improvement is a process not a project • Continuous improvement will be our competitive advantage

  35. Conclusions • A Lean way of life is essential for our success • A Lean transformation requires a cultural adjustment • Lean administration is a ‘new frontier’ worth exploring • Lean is a journey we must embrace to thrive

  36. Contact Information • Tim Bloudek 7970 Wallace Rd Eden Prairie, MN 55344 952-937-6566 direct phone 952-949-6061 direct fax timb@Braasco.com email www.braasco.com website Tbloudek SKYPE number

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