Deploying The Complete Lean Daily Management System


Deploying the CompleteLean Daily Management SystemMatthew DiehlLean ManagerDePuy Synthes Companies of Johnson & JohnsonBrandywine Manufacturing CenterWest Chester, PA

Deploying the CompleteLean Daily Management SystemCONTENTS Lean Daily Management SystemEmployee Improvement SystemChange ManagementLeader DevelopmentCoaching StrategiesBusiness Results

Site Overview 285 Employees 70 MM operating budget700K units per year3,010 SKU’s

Site Overview MachiningChemical FinishingAssemblyLaser EtchingPackaging & Labeling

Product Overview

Operational Excellence Strategy

Theory Practice Results

Lean Daily Management SystemA visual daily performancemanagement system is:VisualTimelyDrives Action& Learning

Guiding Principles for Success

Critical Success Factors

Elements of aLean Daily Management System

Visual Controls

Visual Controls

Visual ControlsPPeopleQQualityVVelocityEEfficiencyPlant Level (Tier 3)Department Level (Tier 2)Cell Level (Tier 1)

Visual Controls combined withdisciplined Leader Standard WorkPPeopleQQualityVVelocityEEfficiencyPlant Level (Tier 3)Department Level (Tier 2)Cell Level (Tier 1)

Leadership is Essential"Leadership and management are two distinctive andcomplementary actions. Both are necessary for success The real challenge is to combine strong leadership andstrong management and use each to balance the other."John Kotter, Author and Professor of Organizational Behavior, Harvard Business School“more than 70 percent of failures are driven by unproductivemanagement behavior and negative employee attitudes”Keller & Price authors of Beyond Performance"Soft leadership and culture boosts or blocks strategy,structure, and change initiatives”Jim Clemmer, author of The Leader's Digest

Manage Things and Lead PeopleJim Clemmer, author of "The Leader's Digest: Principles for Team and Organization Success"

Complete Lean Management SystemLEAN DAILYMANAGEMENTLeaderStandard WorkLEANLEADERSHIPBeliefsVisualControls Behaviors Accountability& DisciplineActionsManagementLeadership- Standard Work- Visual Controls- Accountability- Discipline- Communication- Trust- Direction- CoachingSafetyQualityDeliveryCost

Who was asked to Change? Plant Manager morning meeting held on theshop-floor (not in his office) Business Unit Managers Standard Mgt Work Supervisors cell-by-cell daily performancereviews with operators Operators update their own daily KPIs Engineers engage operators in daily learning

Change Management was critical

Change Management was critical

“First week” ResultsMachinists discuss rare scrap event,identify inconsistency in inspectionstandard work and triggersmanagement awareness to a nonconformance quality problem

“Next Week” ResultsAssembly operators find newcommunication techniques to“see” delayed componentsupstream in their value streamthat prevent assemblyproduction according to thedaily build schedule

The “soft stuff” is the hard work

Lean Leadership DevelopmentSession #1Lean ManagementSession #2Gemba WalkCoachingSession #3Lean Leadership

Results from our LDMS DeploymentContributions in the first 90 days Work Orderlead timeimproved20% 66% reductionof historicalovertime costs

Visual ContinuousImprovement Process

Employee Engagement isGood for Business

“Everyone has 3 Jobs”People in Teams Drive Performance

Let Employees Drive InnovationVisual Improvement Idea Management(by the employees for the employees)

Our Employees Driving edAcceptedThe “OFI” eteEngineerCompleteEngineerComplete

The “OFI System” our Kaizen Promotion OfficeCummulative Number of OFI's ImplementedBrandywine Palnt 2010 - 2014 ar-11Jan-11Nov-10Sep-10Jul-10May-10Jan-10Mar-100

Impact on QualityBrandywine Scrap and ReworkPlant Overall Percent - Last 13 ,000Q1- 2012Q2- 20122.5%2.0%1.5%4,0001.0%2,0000.5%Monthrun scrap (units)rework (units)setup scrap (units)run scrap setup scrap rework (%)Linear (run scrap setup scrap rework 11Nov-11Oct-11Sep-110.0%Aug-110PercentQ4- 20116,000Jul-11Units Scrapped/ReworkedQ3- 2011

Long-Term Performance TrendsQualityVelocityEfficiencyYR -1LDMSYR 0YR 197.5%98.5%99.2% 99.2%Non-ConformanceRate (%)2.5%1.5%0.8%0.8%68%Scrap & Rework t PassAcceptance Rate(%)Velocity (days)WIP Turns(component inventory)YR 2%Improved

Daily Communications for Great Performanceand Continuous ImprovementCOMMUNICATIONS“LEAN LEADER” STD WORKDAILY VISUAL MANAGEMENT

Thank You!Please complete the session survey WP30Deploying the Complete Lean Daily Management SystemMatthew DiehlDePuy Synthes Companies of Johnson &

Lean Daily Management System CONTENTS Lean Daily Management System Employee Improvement System Change Management Leader Development Coaching Strategies Business Results . Site Overview 285 Employees 70 MM operating budget 700K units per year 3,010 SKU’s.