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Developing an Organization’s Ability to Achieve Big Challenges

Scott W. Simmons

VP Manufacturing & Global Supply Chain

Leupold & Stevens Inc.

A Challenge….

“I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth…”

Visionary Leadership

I BELIEVE….

CHALLENGED

CREATIVE

VALUED

The deepest principle in human nature is the craving to be appreciated.

~ William James

C2V = Challenged Creative Valued

Formula for Real Employee Engagement

CHALLENGED

Our Nemesis Then: Clear & Immediate

Our Nemesis Today: Traditional Thinking and Status Quo Leadership

•70% Not Engaged

•38% Actively Disengaged

•Losses Include…

Current State

Advantages of Engagement

• 31% Higher creativity

• 37% Higher sales

• 3x Productivity

C2V

Creative Benefit

Or

The benefit derived when an entire organization’s creativity is brought to bear on an opportunity.

Creatively Challenged

Envision a Design Where Your Organization is Wildly Successful & Competitive

Co-Create an Agreed & Followed Skills Development Plan to Support the Design

Identify the Necessary Roles to Create and Support Your Envisioned Design

Identify the Tasks each Role is Expected to Complete Within the Design

Perform a Manager & Worker Skills Assessment Include a Leveling Conversation

Catch Ball*

*Catch-ball: Dialogue both up & down your structure to drive clarity, alignment, & agreement with involved individuals & Teams.

Developing People to Build a World Class

Organization

DESIGN

ROLES

TASKS

SKILLS

Plan

Catch Ball MP7a

The process of: Consensus Building, Collaborating, Sharing Ideas, Clarity and Understanding.

World Class American Manufacturing

Quality Systems

OEM Value Center

Assembly Value Center

Machining 2nd

Ops 2nd

Ops Assembly

& Pack

Mounts: Domestic Sup ply Chain

Quality

Duane H. Eric Uppiano

Machining 2nd

Ops

Richard Snyder

Assembly

& Pack

Sourcing

Chris Bailey

Rangefinders

Binoculars

Spotting Scopes

Accessories

RawMaterial

SuppliersPurchase

Orders

Chris Bailey

Procurement

Incoming

Inspection

In Process

Inspection

Quality SystemSupplier

Quality

QualityQualityASL

(Approved Supplier List)

Duane Hatfield

Distribution

CenterShipping

2 Times Daily

2 Times Daily

Daily

Custome r

Quality

Scopes: Domestic Sup p ly Chain

Steve Hodge

Quality

Bob Cannon

Bob C.

Facilities

Maintenance

Characte ris tic s

Engaged Team Members

Zero Accidents

Highest Quality

Delivered as Committed

Profitable Growth

Continuously Improving

Profitably match supply and demand by Flow & Pull

Machining Value Center

Mounts Value Center

Robust Quality System to ensure 100% value to our Customers

Support

Proce sses

Maximize Team Member, Facility and Equipment Benefit

Anodize Clean

Finishing

True North

ConsumerDirect

Drop Ship

OEM: Outsourced Sup p ly Chain

L&S World Class Prod uction Syste mPlanning System

Sheila C.

Continuous

Improvement

Specialists

Pull

CustomerPull

CISSupport

CISSupport

CISSupport

CISSupport

Rev: E

Custom ShopTim O’Conner

Custom

Shop

Consumer Direct

VMIFulfillment

David Kruse

Risk

Management

&

Contingency

Planning

RawMaterial

Components

Sourced

Pull

Stockroom

Pull

MRO

Purchasing

World Class Production

System

Mounts Systems

Procurement

Planning Systems

Assembly

Continuous Improvement

Machine Shop

Challenge: Create a World Class Production System

C2V

Challenge: 750 Cylinders Firing,

PDCA Thinking, Go-See Learning Org.

C2V

Assembly Value Center Future State Design

Challenge: 1x1 Flow, LT = 1 day

Assembly Value Center Future State Design

Challenge: 1x1 Flow, LT = 1 day

FPY = 98%

C2V

C2V = Challenged Creative Valued

Don’t Wait, Develop a Challenge Today

TRUCK DIRECT TO MACHINE CHALLENGE:

Move raw material bar stock directly from the truck to the machines by 11/1/14

Result:

Benefit:

Challenge: Truck Direct To Machine (Before)

Challenge: Truck Direct To Machine (After)

Challenge: Truck Direct To Machine (After)

Two New Machines

TRUCK DIRECT TO MACHINE CHALLENGE:

Move raw material bar stock directly from the truck to the machines by 11/1/14

Result: New Planning and Procurement System developed

Benefit: • Eliminated over $500k of raw material bar stock • Gained 4000 sq ft of production floor space • Eliminated $170k replacement cost of sideloader • Built cross-functional team capability and energy

CAPACITY CHALLENGE:

Gain 10,000 hours of Machine Shop capacity by 12/31/14

Result: Benefit:

CAPACITY CHALLENGE:

Gain 10,000 hours of Machine Shop capacity by 12/31/14

Result: Applied Overall Equipment Effectiveness Strategy

Benefit: • 13,354 Hours Saved • Over $400,000 Outsourcing Reduction • Maintenance System Improvements • Created Insourcing Team • Team learning: We are capable of extraordinary accomplishments

Respect for People

Realize Creative Benefit

Engagement

Safe Environment

People

Excellence

Challenge

Thriving Environment

C2V

Safety

Defects

Missed Deliveries

Valuing Input

Developing People

Engaged Teams

Thank You!

Please complete the session survey at:

www.ame.org/survey

Session: THP/54

Developing an Organization’s Ability to Achieve

Big Challenges

Scott W. Simmons

Leupold & Stevens Inc.

ssimmons@Leupold.com