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Lean Deployment
Musaed Al-Saleem Lean Program Leader
EQUATE Petrochemical Company
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• Lean Deployment Strategies • About Lean EQUATE Program • How to Start Lean Program • Where to apply Lean • Things to watch for
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An improvement mindset that
emphasises on value as perceived
by the customer through
management of flow
What is Lean?
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Click to edit Master title style Deployment Strategy Drive Advantages Disadvantages
Top-down Deployment • Great executive commitment
• Organization-wide acceptance
• Quick dissemination of knowledge
• End to end projects
• Large initial investment required
• Large scope and complexity
Partial Deployment • Deploy on specific functional areas or business units.
• Narrow scope • Less complexity • Pilot a success story
• Longer time • Smaller ROI • Silo improvement
Focused Deployment • Focusing on specific business problems
• Quick wins • Address burning
platforms
• Narrow scope • Smaller ROI
Lean Deployment Strategies
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Lean Program Journey Milestones of Implementation
Pilot with ISC
Department
New Lean program launched
company wide
Delivered for MKT
Department
Delivered for
EBSM Department
Delivered company
wide Training in-house
Lean for leaders
August 2016
22 Feb 2017
April 2017
September 2017
March 2017
May 2017
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Why Lean ? Why Now ?
• Facts: 320/400 Trained on Six Sigma • 80% of professionals 900 Employees without any C.I tool • 70% of total population
• Believe: • Everyone has a tool for Continuous
Improvement C.I • Everyone can contribute & deliver
Value
• Actions: • Propose an A3 • Get involved D-D • Make it business as usual
• Feel: • Empowered & Supported • Important & Included • Personal Investment • Self Satisfaction
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Pilot at ISC-DO Department @ Q4 2016 Warehouse & Marine Terminal Operation
• We focused on one defined pilot assembly line and implement lean principles at that particular function. The organization worked and the pilot went successfully.
• Now We would like to adapt these lessons
learned to further areas and functions.
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Challenges from Pilot Implementation
Time Management
Most of our lean project leaders are shift time workers
Decision Making
Slow decision making process with related stakeholders (TID, RID, MFT, Day Staff)
Bureaucracy
Current Work Processes (MOC, RTS, WO, ..)
Candidates selection was based on interest and willingness
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Partnership Collaboration Proposal Lean Program Strategy
Corporate
Strategy Mapping
Road Map
Recognition
OP-EX Team
2017 Assessment
2018 Recruitment
2019 Low hanging
2020 Self Sustaining
Value Stream Mapping
Training
Opportunity finding
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How to quantify value contribution ? Metrics drive behavior
KPI 1 Cycle Time
KPI 2 Quality
KPI 3 Soft Dollar
Savings
Average execution time is
less than 12 months with 0
overdue projects
% of defect reduced or waste
eliminated
Amount of $ saved delivered
to other units or man/hrs. or
avoidance of cost 50 %
Business
KPIs
50 % ( 6 out of 12) projects highlighted
50 % of their Target $ 100,000 Non-EBIT
50 % (5 out of 10) waste identified
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EH&S PRODUCTIVITY PROFITABILITY COST EFFICIENCY
Corporate Performance Metrics
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KAIZEN Conference in Kuwait 9 April 2017
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KAIZEN ≠ Continuous Improvement
• Everyday Improvement: Tremendous self-discipline. Business as usual mindset.
• Everyone Improvement: Not only for operators vs. Top management (Commitment, support & guidance).
• Everywhere Improvement: Company wide improvement scale. All kind of business activities.
≠
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How to apply ?
How to see waste
How to recognize it
How to remove it
VSM Gemba Walks
Kaizen Events
Andon A3 Standard Work
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Click to edit Master title style Waste Type Waste
Description Possible Causes Proposed Actions Successful
Verification
Transportation
Over processing
Waiting
Inventory
Skills Unutilized
Defect
Over production
Motion
Waste Elimination Form
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Business and operational processes or workflows that are
disorganized.
Coordination and collaboration between
groups or people is disconnected.
Critical tasks or assignments get
overlooked or delayed.
Where to apply ?
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Lean Accounting “FI”
• From traditional value chain to Value Stream Costing “Money Map”
• Lean metrics: Stock turn or
inventory turnover = output/inventory
• Lean Tool: “Heijoncka”
production leveling which is a technique to facilitate JIT.
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Lean Product Development “R&D” “Research & Development”
Feedback Ideas Model
• 60% Failure of New product development creation process. Put a lot of urgency to new product development. • Make the plan as per customer
needs as well as business needs
• Bring the customer to
visualize the process before launching.
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Lean Sales “MKT”
• VOC, Benchmarking Tours, Market Research • Suspicious minds “fear from mistakes” need to be removed • Kaizen events with customers & VSM with Sales • CI projects toward Sales and Marketing. • Trust: I’ve got you culture
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Lean Office
• Multi-task environment. They don’t see process. Help them see
• Decision making is a process. What
information I need to do with it • Gemba walks “science of cleaning” +
check lists = standard work • Adopt a concept.. No one size fits all.
No copy then paste
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Lean Safety “EHS”
• From compliance safety to continuous improvement safety concept
• People have back injuries, they will be
in a kaizen event about that! • Absorb people and help them to
understand “what’s in it for me”
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Lean “HR”
• Redesign all jobs removing NVAs
• Recognize and manage talent performance.
• Lean recruitment process (faster)
• Increase employee morale and
effectiveness. • Coach & inspire leaders on lean
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Launch
Early Success
Scale / Replication
Institutionalization
Cultural Transformation
Stages of Lean Implementation
Few functions involved Few Employees (training & projects)
Initial project successes validated.
Success drives program across the company and functions.
Multiple success in each plant/function have created strong line management support.
Long period of successes has embedded into the way we do business (DNA).
One Kaizen event per quarter.
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Lean Maturity Model
Launch Early Suc cess
Scale Replication
Institu tionalization
Culture Transformation
Cultural Change D NA of O rg . Beyond Lean PDCA N ew Product
Strategy Maturing Company
Aligned Bus / Funct .
Full- Closed ( Strategy)
Software Communication Boards Dashboard
T racking Portfolio Mgmt . Strategy +
Portfolio
Reporting A3
Report
, Kaizen Gallery Walk
Cross - organization Multi - year History
Value Impact Work place
Waste Reduction
Consistent Optimization Customer Focus
Customer Loyalty
Project Selection Burning Platform
Low Hanging Copy Success
Idea Pipeline Formalized Evaluation
People Driven Few More Believers
Career Development
Repatriated Majority
Training Two Days Train the Trainer
Customized Internal e - L earning
Internal, Specialty
Leadership Support Essential
Creative Validated Across
Role Model Ingrained
Level 1 Level 2 Level 3 Level 4 Level 5
6 M onths 1 ½ Years 3 Y ears 5 Y ears
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Lean Tools of focus
Andon
5S Visual Management
Poke Yoke
Standardized Work Templates
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Practical Training Application of tools at site
Curriculum Topics Lean Tools and Techniques
Root Cause Analysis 5-Why, Fishbone Diagram; Interrelationship Digraph, Cause & Effect
Key Performance Indicators, Overall Equipment Effectiveness, TPM
Cycle Time Reduction Lead Time Reduction, ADeltaT, Tact Time, Critical Path Analysis, SMED,
Quick Changeover, Kanban, JIT
Value Chain Value Stream Mapping, Value Adding/ Non-Value Adding
Risk Assessment Error Proofing, Failure Modes & Effects Analysis, Risk-Benefit Analysis
Visual Management Control Plans, Control Charting, Gemba, A3, Communication Boards,
Andon
Work Place Optimization Kaizen, 5S, Workcell, Spaghetti Map, Handoff Map
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10% of what you read
26% of what you hear
30 % of what you see and hear together
70% of what you say
90% of what you say while doing something such as teaching or coaching. Source: Silverman
“I hear and I forgot..
I see and I remember..
I do, I understand…”
Kaizen Event “ Learning by Doing”
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The 6C Principles for Successful Lean Deployment
Corporate Strategy Alignment.
Coaching Bottom-Up Approach
Create Value Visibility
Customer-Focused Integration
Close Leadership Celebrate Success
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1. Corporate Strategy Alignment “Buy in”
We already have a
structure
Organizational Values are
aligned with lean.
Totally aligned with (people,
process, Technology)
Business & market share is declining
globally.
Same metrics & KPIs for
performance & goals.
Big opportunities
still exist between processes
Expectations from lean are
Simple & Clear.
Why Now? Compelling reasons to support Lean
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Are we strategically aligned with all
strategic themes, different goals and
targets?
Can we gain “Leaders Commitment” across all
functions?
Strategic Fit vs. Commitment
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Management Support & Commitment Top Down vs. Bottom Up Approaches
• Lean Implementation does not work bottom-up. It will face resistance and fear in the organization without the support from top management and functional leaders. • Operate top-down to get the necessary support
and backing for all lean activities from upper management. This will help you especially in making cross-departmental decisions.
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Growing with our customers
Financial Discipline
Attract, Develop, Retain Talent
Effective, Efficient, Reliable
Sustainability Business Excellence
People Excellence Maximize Value Growth
Responsible
Care
1.1 Strive for better EH&S by optimize work space through developing, maintaining current safety procedures. 1.2 Sustain new standards and leverage best lean practices to society.
3.1 Identify areas for external and internal customer needs 3.2 Enhance the product supply in terms of quality, cost & time. 3.3 Drive efficient, effective work processes.
2.1 Promote pro-activeness from the people. 2.2 Generate opportunities for people efficiencies. 2.3 Develop core technical capabilities and align it with HRO.
5.1 Achieve NIAT & EBIT company targets. 5.2 Manage controllable cost below budget.
4.1 Deliver greater value to our customers, drive growth and Innovation. 4.2 Optimize business work processes.
Lean Strategic Fit to Corporate Strategy
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2. Coaching Bottom-Up Approach “Power to the People”
Nominate Real Workers as “Lean Enablers”
Practical Teaching “Demonstrate at Site”
Listen to the people “on going feedback”
Hold people accountable “Accountability”
Roll out across all shifts “Engagement”
Remove Favorite Depts. “We saw it before”
Ensure tools & templates are simple & relevant. “A3”
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Lean KATA It is a Marchal Art Mindset Practice routines (Automatic Habits) for starters to build confidence
Coaching Style
“Mike Rother” www.katatogrow.com
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Click to edit Master title style • Action: Engage Middle Management to have better chance to success. • How ? Define Executive problems you are trying to solve.
Approach leaders on what they want to do
Align corporate targets with lean targets(Ex: raise 15% of inefficiencies)
Let them do A3 and believe in it & then flow it to their people on their problems.
Know how to socialize (socialization plan) people know what you don’t!
Leaders as Coaches
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3. Create Value Visibility “ Seeing is Believing ”
Start by Deadly Waste Elimination. “ MUDA ”
Organize Kaizen Events & Show Before/After.
The new step will be the standard. “Apply 5S “
Sustain standards in a new metrics & measure.
The Chief Engineer at Toyota “Huge influence”
A constant & consistent Message “Communicate”
Show Quick Wins immediately “ Credibility”
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4. Customer Focused Integration
Identify Areas for
External & internal C-
Needs.
Initiate a project as the
most importance
to C.
Each “C” is different, cut & paste will not work.
Focus on the big 3 change priorities for
the C.
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5. Close Leadership Leader’s “ GEMBA ”
Narrow scope by solving one problem at a time.
Avoid overpromise & unrealistic time
Operational Leading indicators “ ANDON”
No Traditional Steering Committee
Lead by Example by Asking Questions
Provide winning conditions to achieve results.
Change agents for each initiative “Ownership”
Leadership vs. Management “ Go & See ”
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Lean Leadership
• Changing the environment “set the floor” • High level of purpose “why” connect to people • Listen to their needs address the true issues
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Process Owners to be “Believers”
• If the process owner is not convinced, he will not follow that lean approach.
• Once attention is switched due to upcoming topics, the process will switch back to old conditions.
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6. Celebrate Success “ Reward & Recognition”
success stories “MSR”
“Gallery Walk”
Public recognition at big meetings “MMT”
What gets rewarded gets repeated
Set up shared workspace for leveraging
Opportunity for people to express and shine
Sense of self-satisfaction, pride and importance
“ It is not a one man show ” 5 People X 50 K.D = 250 K.D For each A3 or Kaizen Event
“ 20% of the current ERS system to push the program ”
“Lean Board”
“Hall of fame”
“Small thank you handwritten note from CEO or VP”
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People Reward & Recognition Culture and Engagement
Public Recognition & Top 10 Award
Ideation & Kaizen event
Career Development
Yearly Gallery Walk
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A3 “Simple Documentation”
1. Problem Statement: (One sentence) 3. Implementation Plan and R.C. Countermeasures Background summary: Why it is important: A simple list of short focused actions + whom + when Current State: Map or Table Future State: Map or Table Pilot Results 2. Problem Analysis: (Fishbone or 5 Why) 4. Sustainability Causes Identified and R.C Results Cost – Benefits Follow up Sign off
I C
D M A
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A3 Title: What are you talking about? Owner/Date Background: What’s wrong previously? Problem Statement: A problem is a Gap between where we are now and our target Current Conditions: • Visual is always better • Needs, problem, volume, errors • Map As is Process –If any- Goals/Targets: how to measure success of first effort? How good you want to be? When do you want to achieve this goal? How often? How many? How long? Root Cause Analysis: • What is the root causes of the problem • What to challenge? Constraints • Choose the simplest problem analysis tool that
clearly shows the cause and effect relationship • Be deliberate
Implementation Plan: What activities will be required and who, when (ECD) Proposed Countermeasures:
•What is your proposal to reach the future state, the target condition? •How will your recommended countermeasures affect the root cause to achieve the target? •Simplify and improve process performance
New modified Work Process –IF any- • What are indicators of performance (KPIs) • Resource and stakeholder alignment. Pilot or Test Results Sustainability How to sustain the gain Follow up: • What issues can be anticipated? • Ensure ongoing PDCA. • Capture and share learning.
Team members:
How Big
There is Data
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A3 Thinking & Problem Solving
• A3 is a great communication tool: 75% of the effort on how to make people talk to each other. Tool is there, communication is not. • A3 is a story format (Story telling): for communication, for discussion, for reporting on problems, strategies, changes
• A3 should contain Facts/Data: 50% of the battle. Engaging people is the other 50%
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A3 Types Containment problems start with A3 Flow problems should start with VSM
A3 types
Tactical
Strategical
Learning
Proposal
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A3 is in the “BLISS”
Plan Check Do Act 1. Problem Statement: (One sentence) 3. Kaizen ( R.C. Countermeasures) Background summary: To (action verb) remove, provide Why it is important: Short focused actions Current State: Map or Table Future State: Map or Table 2. Problem Analysis: (Fishbone or 5 Why) 4. Implementation Plan: Causes Identified A simple list of tasks with whom & when R.C Results Cost – Benefits Test Results Follow up Sign off
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Begin with the “END” in Mind
Well-educated frontliners
possess the authority and
skills to identify and resolve
problems at a tactical level.
This high performance
work environment evolves over
time with consistence
practice.
Build cross functional
teamwork with continuous
improvement mindset into the
culture.
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Article to Read
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Lean.org GEMBAAcademy.com
Books & Websites
EQUATE Petrochemical Company EQUATE Petrochemical Company www.equate.com
Thank You
EQUATE Petrochemical Company