engaging non-manufacturing areas in continuous improvement

PowerPoint Presentation

Engaging non-Manufacturing Team Members in Continuous Improvement Revision #: 3.2Last improved: 29-10-2015Improved by: P. Holt

Philips University

#Copyright Royal PhilipsSTRICTLY CONFIDENTIAL DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSIONa year by 2025

Were aiming to improve the lives of

Three Billion PeopleWe strive to make the world healthier and more sustainable through innovation

#Copyright Royal PhilipsSTRICTLY CONFIDENTIAL DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

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Our Vision & Mission


Founded in 1891Headquartered in Amsterdam, The NetherlandsOne of the largest global diversified industrial companies in the World, with sales of circa. 21 BnGreen Product Sales of over 11 BnA multinational workforce of approximately 108,000 employeesGlobally present with sales and services in more than 100 countriesAn R&D force with an investment of around 1.6 Bn A Brand Value estimated at over $10 Bn

About us

#Copyright Royal PhilipsSTRICTLY CONFIDENTIAL DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSIONContentsMaking Lean Thinking relevant for all Employees Adapting the Lean Deployment Methodology without losing the principlesThe Philips Lean Excellence Model and the Model Value Stream as an enabler for engagement The results of the Lean Deployment How is the Business Performance impacted?Learning by doing How to learn on the go without looking like you dont know what youre doing!


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We started with understanding the Why of LeanToyota doubled its market share from 2000 to 2010 and became no. 1 car manufacturer a number of times from 2009 onwards

Honeywell have outperformed the S&P 500 Index by over 100% over the last 10 years using the Honeywell Operating System (HOS) as a major driver of their Business

Porsche, starting in the early 1990s, used a Lean Enterprise Strategy (End-to-End) as a basis of its turnaround strategy and became the most profitable car company in the world

Danaher has grown profitably by almost 20% every year for the past 20 years, using a CI based Business System (Share Price growth of 2,909%)

Moved from a factory based CI approach to a Business wide people system: 289% Share Price increase over 10 years (June 2003 June 2013)


#Copyright Royal PhilipsSTRICTLY CONFIDENTIAL DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSIONPhilips Excellence STARTS WITH YOUWe govern through Business-Market Combinations and single value-added layerWe serve our customers with speed & excellence through Lean, Process-driven End2End value chainWe champion our Growth and Performance Culture, always acting with integrity We embrace continuous improvement and learning to enhance our capabilities

We are a learning organization that applies commonOperating principles to deliver Philips Excellence and built Lean thinking into our Business System



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We focus on Lean thinking, rather than Lean Tools, and have driven a principle driven transformation

Principle DrivenSystem DrivenTool DrivenEmbedding principles into cultureEmbedding principles into cultureEmbedding principles into cultureStructuring tools into a systems contextUsing specific methods to create point solutions


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Lean thinkingCorrectly specify value for the customerIdentify the value stream and remove wasteMake the product flowSo the customer can pullBy striving towards perfection

which starts with understanding the Customer value


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The Continuous Improvement Curriculum is designed to provide our Employees with the appropriate level of competence and behavioural change.

Certification LevelAwarenessLean Master / Six Sigma MBB CertificationLean Expert / Six Sigma BB CertificationLean Advanced / Six Sigma GB CertificationLean FoundationNO CERTIFICATION

The Central Theme of our Programme is the Certification of 100% of our People in Lean Thinking


Lean Solutions

(e.g. Healthcare or Lighting installations) `LeanInnovation (e.g., IT, R&D, UpstreamMarketing, etc.) Lean Office

(e.g. P2P, Finance, Sales,After Sales support, etc.)LeanSupply

(e.g. Factories, Warehousing, Distribution, Suppliers, etc.)Nature of activityValue StreamProjectRepetitivePhysicalVirtual

and we have created a Lean Excellence Model that can Transform our whole Enterprise


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with a Kaizen Culture at the Centre of our Continuous ImprovementKaizen \Ki-zen\A continuous improvement mindsetEverything that we do today can be improvedKaizen has no end

Kaizen Process

Standardize/AdherenceRoot CauseImplementSolutionsExposeandQuantifyProblems


and a Behavioural Assessment to ensure that we are driving and sustaining the culture changeThe Lean Maturity Matrix details the minimum standard per assessable criteria

Although the average required score can be met, it is important that each line item meets the minimum standard.

#Copyright Royal PhilipsSTRICTLY CONFIDENTIAL DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSIONWe have a Continuous Improvement SharePoint which is accessible for all Philips Employees

Activity cards

Activities

Common files

Standard work


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and have created a Global, Virtual Community of Lean Practitioners across the whole Value Stream

#Copyright Royal PhilipsSTRICTLY CONFIDENTIAL DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSIONOur Lean Excellence Model is the enabler of Learning and Sustainability of results

Function/BPOEngagementPhase 1

Model SiteDeploymentPhase 2

Replication across Function or processPhase 3Sustaining Excellence &Continuous ImprovementPhase 4People Systems

Organisational Readiness

Burning PlatformDeployment RoadmapDeployment CharterModel Sites and ScopeModel Sites Readiness ReviewVision of Excellence

Visualize processes and define Vision of ExcellenceImplement Value Stream improvements Deploy Lean fundamentalsTrain Lean NavigatorsScale-up and Standardise

Roll-out Sites Readiness ReviewReplicate across the sites, function or processLed by Lean NavigatorsMonitored by Function/BPO

Institutionalize & Improve

Maturity Sustainability Continuous Improvement4 Phases, 30 ActivitiesProcess Systems


We converted the Beauty Strategy into an executable plan via Hoshin Kanri

and synchronised our People around a single week in the Month to deliver the Tactics as workable solutions

and allows us to learn on the go in a structured way that brings results. For example, Sprint Weeks:


Images

India: KeraShine 2015 program17 BMC AOP decks

HC Consumer Engagement DAY

I Beauty

Examples of Sprints


HC Consumer Segmentation & TrendsWoW BD - CMMNext Phase Beauty ComCell

MVS LEAN week Consolidation of Output & Next steps

Always On

Examples of Sprints


Significantly increased Employee EngagementBottom line impact in the Hundreds of Millions rangeTime-to-Market improvements of between 30-70%Quality improvements of 30% Year-on-YearInventory reductions of >30%Floor space reductions typically 20-30%Kaizen implemented >200KWe have delivered significant results across Philips and continue to do so


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SummaryDeploying Lean Thinking into non-Manufacturing areas has some additional challengesThese are related to elements such as a lack of Process Thinking, Virtual Value Streams, Non-repetitive Activities, Longer Cycle Times, Geographically spread Team Members, etc.However, there are more commonalities than differences and the key factors are:Agreeing on the Why? = Why must we change?Expert Lean Coaching Resources = Joint ownership, not advisorsLeadership Commitment = Activism, not advocacyKnowledge (Competence) Development = Certification, not trainingChange Management & Culture Change = Behavioural intervention

The most effective way to ensure that all of these factors are accounted for is to utilise a Standardised Methodology, with expert resources to support the deployment and to be in it for the long haul


Further insightsare on LinkedInand my Personal BlogBoth sites are Personal and my views and ideas are not necessarily representative of those of my employer

#Copyright Royal PhilipsSTRICTLY CONFIDENTIAL DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSIONThank you


engaging non-manufacturing areas in continuous improvement

Leadership & Management