baxter bioscience - driving culture change
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Bioscience
Driving Culture Change
An on-going journey
Baxter BioScienceBaxter BioScience
Presented by:Michael Teasdale
Bioscience
8.9 Billion in sales in 2003 Over 50,000 employees More than 110 countries in 250 facilities Three key business areas
– Medication Delivery: delivering fluids, drugs and medication
– Renal Therapies: serving the needs of patients with chronic kidney disease
– BioScience
Baxter Fact Sheet
Baxter: Providing Critical Therapies for people with life-
threatening conditions
Bioscience
BioScience Overview
$2.9 Billion in sales in 2004
Over 9,000 employees
Three key product areas:
– Proteins derived from human plasma or recombinate technology to treat hemophilia, immune deficiencies and other blood related disorders
– Products to help wound treatment and tissue regeneration
– Vaccines for Meningitis C, and TBE
Bioscience
Baxter BioScience - SituationBaxter BioScience - Situation
Product supply exceeds demand in most products
Plasma prices have dropped continually since ’02
Growing competition in recombinant products
Product quality is no longer a guarantee to sales
Customers wantproduct quality and service quality at lower cost
Bioscience
Quality Leadership Process: ValuesQuality Leadership Process: Values
Meet Customer RequirementsQUALITY IS MEETING
REQUIREMENTS
PreventionIS THE WAY WE ACHIEVE
DEFECT-FREE WORK
ContinuousImprovement
KEEPS US AHEAD
OF OUR COMPETITORS
ZeroDefects
DEFECT-FREE WORK
MEETS REQUIREMENTS
100% OF THE TIME
TotalEmployee
InvolvementIS ESSENTIAL TO
ACHIEVING QUALITY
DEFINITION
STANDARD
METHOD
ATTITUDE
ORGANIZATION
Bioscience
Process Improvement - SituationProcess Improvement - Situation
Various sites and functions had made significant efforts and gotten results – but variability from site to site
Lack of common vision and language from one site to another about process improvement
Corporate “Six Sigma” program provided tools but no process of improvement
Growing reliance on multi-site process to produce product
Both Lean and Six Sigma needed to drive operational excellence
How to built on previous efforts while making a significant change in the culture?
Bioscience
Strategy for Culture ChangeStrategy for Culture Change
Two pronged approach to drive culture
Change Change SuperstructureSuperstructure
Change Change FoundationsFoundations
•Vision: Where do we want to go?
•Metrics: How do we judge success?
•Management knowledge
•Communication / Leadership presence
•Robust Project Selection
•Training Green and Black Belts
•DMAIC, Lean, Six Sigma
•Dedicated Black Belts
Bioscience
11stst Steps- Change Superstructure Steps- Change Superstructure
Gather input, train stakeholders (Plant Mgrs, Quality, Mgrs)
DMAIC, Lean and Six Sigma training
Identify needs and gather input
Operations Leadership (VPs) establishes a vision of a Green Belt company – a new leadership culture
Build on Previous Efforts and “Raise the Bar”
Bioscience
Our VisionOur Vision
An operational culture recognized as excellent in the following areas:
-Customer focused-Fact based-Process oriented-Results driven
An organization known for developing and rewarding the best operational performers
Bioscience
4Cs – Results Focus for 2004-64Cs – Results Focus for 2004-6
Cash Flow Days in inventory, cycle time
Cost Yield, cost reduction
Customer Fulfillment
Compliance Quality Systems
Key Metrics Drive Focus
Bioscience
Metric DevelopmentMetric Development
Identified the right metrics for the business based on customer / business requirements
Developed new, common definitions for the metrics to drive the right business / operational behaviors
Applied these metrics across plants, functions and products
Quality Systems dashboard already rolled out and successfully driving compliance
Engaged site leadership to build understanding, buy-in
Bioscience
DecNovOctSepAugJulJunMayAprMarFebJan
90
80
70
60
50
40
30
20
10
0
month2
BD
S C
T
BDS CT
DecNovOctSepAugJulJunMayAprMarFebJan
80
70
60
50
40
30
20
10
0
Month
CT
60%63%66%69%72%75%78%81%84%87%90%93%96%99%
Ja
n-0
4
Fe
b-0
4
Ma
r-0
4
Ap
r-0
4
Ma
y-0
4
Ju
n-0
4
Ju
l-0
4
Au
g-0
4
Se
p-0
4
Oc
t-0
4
No
v-0
4
De
c-0
4
YT
D 0
4
month
gra
ms
FG
/ g
ram
s B
DS
ACTUAL TARGETACTUAL TARGETJan-04 88.1%Feb-04 87.8%Mar-04 88.9%Apr-04May-04Jun-04Jul-04Aug-04Sep-04Oct-04Nov-04Dec-04YTD 04 88.0% 87.0%
87.0%0%
10%20%30%40%50%60%70%80%90%
100%
Ja
n-0
4
Fe
b-0
4
Ma
r-0
4
Ap
r-0
4
Ma
y-0
4
Ju
n-0
4
Ju
l-0
4
Au
g-0
4
Se
p-0
4
Oc
t-0
4
No
v-0
4
De
c-0
4
YT
D 0
4
%a
ge
hit
ACTUAL TARGET
ACTUAL TARGET
Jan-04 42.9%Feb-04 52.2%Mar-04 71.4%Apr-04May-04Jun-04Jul-04Aug-04Sep-04Oct-04Nov-04Dec-04YTD 04 53.4% 80.0%
80.0%
Fulfillment
Standard Plant DashboardStandard Plant Dashboard
Fill date to release date for each committed batch
Business Yield
Red < Budget Business Yield
Yellow N/A
Green>= Budget Business Yield
Value of Unplanned ProductionCycle time
75th percentile
Median
25th percentile
* outlier
Average
ACTUAL TARGET
Jan-04 -$ Feb-04 -$ Mar-04 -$ Apr-04May-04Jun-04Jul-04Aug-04Sep-04Oct-04Nov-04Dec-04YTD 04 -$ -$
-$
$0
$2
$4
$6
$8
$10
Jan-
04
Feb-
04
Mar
-04
Apr-0
4
May
-04
Jun-
04
Jul-0
4
Aug-
04
Sep-
04
Oct-0
4
Nov-
04
Dec-
04
YTD
04
$MM
Red < 80%
Yellow N/A
Green >= 80%
(Not actual data)
Bioscience
ACTUAL TARGETJan-04 88.1%Feb-04 87.8%Mar-04 88.9%Apr-04May-04Jun-04Jul-04Aug-04Sep-04Oct-04Nov-04Dec-04YTD 04 88.3% 87.0%
87.0%
Fulfillment - XXX
Common Product DashboardCommon Product DashboardBusiness Yield - XXXX
Days of Inventory held - XXXXX
Red > +or- 10% of target
Yellow N/A
Green < +or- 10% of target
Forecast Error
-25.00%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
% Absolute Error Rolling 6 Mo. bias>0% – % oversold forecast
<0% – % undersold forecast
60%63%66%69%72%75%78%81%84%87%90%93%96%99%
Ja
n-0
4
Fe
b-0
4
Ma
r-0
4
Ap
r-0
4
Ma
y-0
4
Ju
n-0
4
Ju
l-0
4
Au
g-0
4
Se
p-0
4
Oc
t-0
4
No
v-0
4
De
c-0
4
YT
D 0
4
month
gra
ms
FG
/ g
ram
s B
DS
ACTUAL TARGET
Red < Budget Business Yield
Yellow N/A
Green>= Budget Business Yield
0153045607590
105120135150165180
Jan-
04
Feb-
04
Mar
-04
Apr
-04
May
-04
Jun-
04
Jul-0
4
Aug
-04
Sep-
04
Oct
-04
Nov
-04
Dec
-04
YTD
AVE
Day
s In
vent
ory
held
WIP FG LSL USLActual LSL USLJan-04 178Feb-04 169Mar-04 176Apr-04May-04Jun-04Jul-04Aug-04Sep-04Oct-04Nov-04Dec-04
YTD AVE 174 94 116
94 116
0%10%20%30%40%50%60%70%80%90%
100%
Jan
-04
Fe
b-0
4
Mar
-04
Ap
r-0
4
May
-04
Ju
n-0
4
Ju
l-0
4
Au
g-0
4
Se
p-0
4
Oc
t-0
4
No
v-04
Dec
-04
YT
D 0
4
%ag
e h
it
ACTUAL TARGET
ACTUAL TARGET
Jan-04 42.9%Feb-04 52.2%Mar-04 71.4%Apr-04May-04Jun-04Jul-04Aug-04Sep-04Oct-04Nov-04Dec-04YTD 04 53.4% 80.0%
80.0%
Red < 80%
Yellow N/A
Green >= 80%
(Not actual data)
Bioscience
Ensuring Leadership EngagementEnsuring Leadership Engagement
6 Key Elements for robust improvement
Strategic Planning
QLP Structure
Quality Improvement Teams
Operating Mechanisms
Project Selection
Operational Strategies
Building a common framework for excellence
Bioscience
Categories, Criteria, ConditionsCategories, Criteria, Conditions
Strategic Planning - The development of key actions, their deployment and measurement with the aim to enhance competitive position, overall performance and ensure future success.
Conditions are
0% Implemented
Conditions are
33% Implemented
Conditions are
66% Implemented
Conditions are
100% Implemented
Conditions are
Operational Excellence
Conditions are
World Class
Strategic Business plan exists including key analytical sections (i.e Stakeholder/ competitive analysis, Market analysis, SCOT)
5
The strategic imperatives are translated into no more than five key metrics (Key Focus Areas) which track progress towards strategic objectives.
4
Precise and progressive targets are set for short-term and long-term horizons aligned with Key Focus Areas (KFAs)
3
Short and long term action plans are in place to enable progress to goals.
0
There is periodic communication of the strategic plan, metrics and performance to all employees using both electronic and visual methods
1
Average Score2.6
Definition of Main Categories
5 to 6 Criteria for each main Category
% implementation, then ops excellence and
world class
Measure per criteria and overall average
Bioscience
Tool Description and AuditsTool Description and Audits
•Criteria evaluated from 0 to 100% implementation in self-review
•“Operational Excellence” and above awarded by peer review
Common tool to measure progress
Self ReviewPeer Review
Strategic Planning - The development of key actions, their deployment and measurement with the aim to enhance competitive position, overall performance and ensure future success.
Conditions are
0% Implemented
Conditions are
33% Implemented
Conditions are
66% Implemented
Conditions are
100% Implemented
Conditions are
Operational Excellence
Conditions are
World Class
Strategic Business plan exists including key analytical sections (i.e Stakeholder/ competitive analysis, Market analysis, SCOT)
5
The strategic imperatives are translated into no more than five key metrics (Key Focus Areas) which track progress towards strategic objectives.
4
Precise and progressive targets are set for short-term and long-term horizons aligned with Key Focus Areas (KFAs)
3
Short and long term action plans are in place to enable progress to goals.
0
There is periodic communication of the strategic plan, metrics and performance to all employees using both electronic and visual methods
1
Average Score2.6
Bioscience
Measurement Tool OutputMeasurement Tool Output
•Spider Chart displays scores
•Drives balanced improvement
•Pinpoints health of process improvement process
QLP Assessment
2.6
2.0
2.0
2.8
1.8
1.8
Strategic Planning
QLP Structure
QIT
Operating Mechanisms
VIP
Operational Strategies
Bioscience
Driving Cash, Cost, Customer, and Compliance
Key Focus Areas
QLP Structure
Value Stream Maps / Metrics Cascade
VIP Project Selection
DMAICBlack Belt /Green Belt /Team Member
6 Sigma Kaizen Lean
(2) Change Foundations: QLP Process(2) Change Foundations: QLP Process
Just do it Programs:
6Ss
Standard Work
Bioscience
-20 -10 0 10 20 30 40
USLUSL
Process Capability Analysis for QAR TAT
USL
Target
LSL
Mean
Sample N
StDev (Within)
StDev (Overall)
Cp
CPU
CPL
Cpk
Cpm
Pp
PPU
PPL
Ppk
PPM < LSL
PPM > USL
PPM Total
PPM < LSL
PPM > USL
PPM Total
PPM < LSL
PPM > USL
PPM Total
5.0000
*
*
11.0625
16
7.10304
9.30774
*
-0.28
*
-0.28
*
*
-0.22
*
-0.22
*
625000.00
625000.00
*
803311.26
803311.26
*
742586.42
742586.42
Process Data
Potential (Within) Capability
Overall Capability Observed Performance Exp. "Within" Performance Exp. "Overall" Performance
Within
Overall
Metric Cascade / Project SelectionMetric Cascade / Project Selection
Customer
Fulfillment
Release Time Variability
Biggest Bang for our Buck
Internal release Product value stream
Release to shipping time
511 400 213 171 152 39 27 25
33.1 25.9 13.8 11.1 9.9 2.5 1.7 1.6
33.1 59.0 72.8 83.9 93.8 96.3 98.1 99.7
0
500
1000
1500
0
20
40
60
80
100
Defect
CountPercentCum %
Per
cen
t
Cou
nt
Visual Inspection Result (TDC) Human Albumin Vienna
Data Walk to High Value
Projects
Targets and root cause analysis drive
project selection
Future state and root cause analysis drive
project selection
Tools: Standard Work, Change Over Reduction, etc.
Tools: T –tests, ANOVA to find root cause and reduce ERs
Bioscience
Change Foundations: Link to Change Foundations: Link to StrategyStrategy
Solid line to Strategic goals
All projects should show a link to measurable change for issues management loses sleep over
Project tracking data base essential to show this link
Strategic Initiative Link
At GE, drive for growth, paperless culture, VCP
At Baxter, inventory and fulfillment initiatives
Communicate, Communicate, Communicate
Bioscience
Change Foundations: TrainingChange Foundations: Training
Training goals
1% of the population dedicated to process improvement: QLP managers, Black Belts
Green Belts: 15% of leadership population trained for 2004, 30% for 2005
Skill transfer strategy
Integrate Six Sigma and Lean under DMAIC project management process
Drive some Lean approaches as programs
Bioscience
DMAIC: Right Tools for the ProblemDMAIC: Right Tools for the Problem
•Project ID Tools•Project team charter
•Internal Rate of Return Analysis
•Discounted Cash Flow Analysis
•Stakeholder analysis
•RACI•Presentation templates
•Process Mapping
•Value Stream Mapping
•Brainstorming•Capability Studies
•Pareto Charts•Fishbone Diagrams
•Run – Control Charts
•Takt time•MSA/Gage R&R
•Added/Non Value Added Analysis
•Multi-Vari•Analysis of Flow
•Interaction Plots
•Regression•Change Point Analysis
•ANOVA•C&E Matrices•Benchmarking•Constraint analysis
•Pull/Kanban•Lot size Optimization
•Setup Reduction
•TPM•Process Redesign
•Robust Tolerancing
•DOE •Cross Training•Standardized Work
•Kaizan
•Run Charts•Histograms•Capability Studies
•Control Charts
•Control Plans
•6Ss•Mistake Proofing
•Visual Management
DDefineefineDDefineefine MMeasureeasureMMeasureeasureAAnalyzenalyzeAAnalyzenalyze ImproveImprove ControlControl
Process
Inputs
Outputs
Towards Lean Six Sigma Integration
Bioscience
Black Belts: the rubber hits the roadBlack Belts: the rubber hits the road
Fully dedicated !!!!!
Choose your best, hungriest people
Provide them with the best tool kit, method to get results
Support and monitor projects to address the key issues- leadership presence!!!
Ensure transition back to prestigious jobs
No pain, No gain; Dedication = quicker results
Bioscience
Keys to SuccessKeys to Success
Leadership
Strategic focus
Measures
Dedicated resources
Employee Engagement
• Communication, presence and focus • Demand rigor, learn DMAIC
• Link to strategic planning process • Customer sat, ROI drive selection
• Track measures on results, rigor• Track enabling metrics (forcing metrics)
• Select your best, high potentials• Part of a dedicated team
• Mobilize all employees, across departments • Common language, common vision
Focus your best resources on what matters