getting good at getting better · cultural enablers cultural enablers make it possible for people...

July 28th, 2017

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STERIS – Who We Are

MISSION

At STERIS, WE HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science product and service solutions around the globe

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About Our History

• Founded as Innovative Medical Technologies in Ohio in 1985

• Renamed STERIS Corporation in 1987

• Renamed STERIS plc In 2015

• STERIS Corporation acquired Synergy Health to create STERIS plc

• A better-positioned global healthcare leader

• Publicly traded company in 1992

• More than 280 U.S. patents and 833 international patents issued

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• Incorporated in the United Kingdom

- U.S. operational headquarters in Mentor, Ohio

• 14,000 employees worldwide

• Production/manufacturing facilities in 17 countries

• Products and services sold in over 60 countries

• Annual sales of $2.2 billion

• Traded on NYSE under symbol STE

• Acquired Synergy Health plc Nov 2, 2015

STERIS: Company Overview

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Recent Acquisition History

2012 2013 2014 2015

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Reporting Segments

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Healthcare Products Segment

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Healthcare Specialty Services Segment

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Applied Sterilization Technologies Segment

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Life Sciences Segment

Pharma: solutions for producers of active pharmaceutical ingredients or finished pharmaceuticalsResearch: solutions for contamination control in research to get results to the marketplace faster. Biotechnology: solutions for the formulation and fill of drugs, vaccines, and therapeutics in a variety of dosage forms in small or large batch production

CAPITAL EQUIPMENT

• Washers

• Sterilizers

• VHP

• Water Stills

Service

• Equipment maintenance

• Installation

• OEM parts

• Controlled environment certification

Consumables

• Application-specific detergents

• Surface disinfectants, cleaners and alcohols

• Sterility maintenance and barrier protection products

Welcome to US Endoscopy!

Company Profile

• A world leader in endoscopy device design &

manufacturing

• Serve the USA & International GI markets

• Work closely with Physicians & Nurses to deliver

solutions that address unmet needs

History

• Established in 1991 by Marlin Younker, a great

innovator in endoscopy

• Worked with many key physicians over the

years to design & commercialize Customer

solutions

• Grew portfolio to 250+ products

• Joined STERIS Corporation in July 2012

In-House Capabilities

• Design / Process Engineering

• Manufacturing / Operations

• Global Marketing / Sales

• New Product Development

• Regulatory / Quality

• Customer Service

FacilitiesBuilding 1 – 65,000 ft2 (6,040 m2)

Single-Shift Manufacturing Operations,

Design Engineering, Regulatory

Building 2 – 22,000 ft2 (1,950 m2)

Sales/Marketing, Finance, IT, HR, R&D Offices

and Lab/Training Center

Manufacturing Center (MC) – 69,000 ft2

(6,410 m2)

Multi-Shift Manufacturing Operations,

Quality, Buyer/Planners, Process

Engineering, Production, Injection Molding

Our Corporate Culture;

A Competitive Advantage

• Mutual respect, professionalism & collaboration

• Work hard, stay positive & take pride in our work

• Communicate openly & honestly

• Act with compassion & understanding

Procedural Areas of Focus

• Care & Cleaning / Infection Control

• GI Emergency / Foreign Body

• Tissue Sampling / Polypectomy

Care & Cleaning / Infection Control

• A broad portfolio of single-use products

to promote patient safety by reducing

the risk of cross-contamination

Cleaning brushes BioShield® biopsy

valves and

accessories

Torrent® irrigation

tubing

AquaShield® water

bottle system

GI Emergency / Foreign Body

• A global leader offering unsurpassed

security and peace of mind during these

challenging cases

Roth Net®

retrieversGuardus®

overtubes

Raptor® grasping

deviceTalon® grasping

device

Tissue Sampling / Polypectomy

• A unique line of devices including

snares, injection needles, retrieval nets,

and polyp traps.

Exacto® cold snare Carr-Locke

injection needle

Roth Net® polyp

retrievers

Lariat® snare

What Does Enterprise Excellence Look Like?

Hajime Oba

A VP for a US manufacturing company once asked Hajime Oba to come visit his company and evaluate their operations. During the visit the VP walked Mr. Oba through their plant, he discussed how all the operations were in cells, on a pull system with visual management tools. He showed Mr. Oba their minimal inventory and nearly flawless On-Time delivery. Finally the VP asked Mr. Oba, “Well, have we achieved Operational Excellence?” Mr. Oba responded, “I don’t know, how could I know? I didn’t see your plant yesterday! Everyday should look different than the day before.”

“Operational Excellence is when you are able to produce the customers exact order, immediately, without defects. It is

when everybody, every minute, everyday is engaged in continuous improvement.”

Bruce Hamilton

VSM

KAIZENS

HR X HRTAKT

KANBAN

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Achieving Enterprise Excellence

JIDOKA CELLS

VSM

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VALUES

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JIDOKA CELLS


VSM

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BRIDGING the GAPA lean transformation must be built from both sides. The Systems & Tools on one side and the Guiding Principles on the other. A lean transformation will invariably fail if the focus in purely on Systems, Tools, and Event based activity.

Creating the

Culture for

Continuous

Improvement

JIDOKA CELLS


VSM

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HR X HRTAKT

KANBAN

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Creating the

Culture for

Continuous

Improvement

JIDOKA CELLS


“Know-How alone isn’t enough! You need to Know-Why! All too often, people visit other plants to copy their tools and methods.” – Shigeo Shingo

VSM

KAIZENS

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Creating the

Culture for

Continuous

Improvement

A New Era of Enterprise Excellence

JIDOKA CELLS

Achieving Enterprise ExcellenceRitsuo Shingo’s response when asked why American companies fail at Lean:

“Too much focus on the tools. Let me ask you this, if I bought you a tool box full of tools and told you to fix my broken car, or my refrigerator, could you fix it? – No! Before you can apply the tools you must understand why, where, and how to use them. Otherwise you use the tools incorrectly or unnecessarily. This is the waste we do not see. Tools are used here at Toyota to solve problems.“

https://www.youtube.com/watch?v=q82LGG7lCcY&index=7&list=PLIQuAwohP8M8djfIFjm51GzbksmuNnpxd

The Shingo Model – Sustaining Change

RESULTS are achieved through the ideal BEHAVIOR

(culture) being guided by the right PRINCIPLES,

using brilliant SYSTEMS that properly integrate the

appropriate TOOLS.


A Behavior is the range of actions made by a person as influenced by internal and external forces and systems

Which statement is a behavior?A. Our associates know our

vision and missionB. Our associates understand

our vision and missionC. Our associates talk about our

vision and mission at the beginning of every meeting

A. Our managers are confused with what is a priority

B. Our managers come in early and stay late every day

C. Our managers are angry with all the special projects

A Behavior is…. Observed, Described, Recorded

The Shingo Model – Sustaining ChangeRESULTS GUIDING PRINCIPLES

SYSTEM TOOLS

A broad philosophy that guides an organization through its life in all circumstances, irrespective of changes in its strategies, type of work, or senior management.

These Principles are Universal Truths • Timeless • Self-Evident

• Govern Consequences

(Dr. Stephen R. Covey)

A collection of tools or tasks that are highly integrated to accomplish an outcome. It defines the approach, tool use, measure, feedback and support:a

• production plan• onboarding new employees• recognition systems• customer support system

A single device or item that accomplishes a specific task. Examples:a

• Value stream map• 5S• Standard Work• An Award• Jidoka

Ultimately, results we seek must be defined through the lens of what a customer wants and is willing to pay for. Organizations that

fail to deliver both effectively and efficiently on this most fundamental outcome cannot

be sustained over the long-term.

Create Value

IMBEDDING PRINCIPLESINTO CULTURE

STRUCTURING TOOLS INTO A SYSTEMS CONTEXT

USING TOOLS TO CREATEPOINT SOLUTIONS

PRINCIPLE DRIVEN

SYSTEM DRIVEN

TOOL DRIVEN

Creates Consistency& Purpose


As an individual’s role expands, their focus will expand from using tools to

structuring systems to driving the culture through imbedding

principles

Three Insights of Enterprise Excellence1. Ideal Results Require Ideal Behaviors

• Ideal Results: Any outcome that are both excellent and sustainable.

• Ideal Behavior: Any action that creates outcomes that are both excellent and sustainable.

• Ultimately how we achieve a result is more important than the result itself

• To achieve ideal results, leaders must create an environment where ideal behaviors are evident in every associate.

“…Yet I came to see in my time at IBM that culture isn’t just one aspect of the game –it IS the gameLou Gerstner

Three Insights of Enterprise Excellence

2. Purpose and Systems Drive Behavior• Purpose and systems have an

equally profound impact on behavior.

• Most systems were designed to create a result without regard for the behavior it is driving.

• Leadership must realign both management and work systems to drive the ideal behavior required to achieve the ideal result.

Can you think of an example of a work system that drives a wrong

behavior?

Three Insights of Enterprise Excellence

3. Principles Inform Ideal Behavior• Principle: a foundational rule that

has an inevitable consequence• Principles help us to see both the

positive and negative consequence of our behaviors and allow us to make a more informed decision.

• Behavior is a choice

The greater the understanding of the principles, and the more

perfectly systems are aligned to ideal behaviors, the more likely a

sustainable culture of excellence is achieved where ideal results is the

norm rather than the aspiration.

STERIS Business System

“The more deeply leaders, managers and associates understand the principles of operational excellence and the more perfectly

systems are aligned to reinforce ideal behavior, the greater the probability of

creating a sustainable culture of excellence where achieving ideal results is the norm rather than the aspiration”

- Shigeo Shingo -

STERIS Business System• Mobilize cultural transformation• Add granularity to progress• Heavily aligned to Shingo Model• 18 Chapters centered around:

• Customer, People, Stakeholders

Cultural Enablers

Cultural enablers make it possible for people within the organization to engage in

the transformation journey, progress in their understanding, and ultimately build a

culture of operational excellence.

Enterprise excellence cannot be achieved through top-down directives or piecemeal

implementation of tools. It requires a widespread commitment throughout the organization to execute according to the

principles of enterprise excellence. Developing a culture of mutual respect and

humility takes a consistent commitment over a sustained period of time.

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Cultural Enablers – Respect for Every IndividualThe Need for Respect:• Respect must become something that is deeply felt for and by every person in

an organization.

The Results of Respect:• Individuals are energized when this type of respect is demonstrated.• Surveyed associates said that it is most important thing they want from their

employment. • When people feel respected, they give far more than their hands—they give

their minds and hearts as well.

What does it mean to show respect for every individual?• Some say…."We hire smart people, we give them great latitude in how they do

their work because we trust them, and we hold them accountable. That’s respect for people."

Jim Womack, when asking Toyota managers how they show respect for people:

“Managers begin by asking employees what the problem is with the way their work is currently being done. Next they challenge the employees' answer and enter into a dialogue about what the real problem is.

Then they ask what is causing this problem and enter into another dialogue about its root causes. True dialogue requires the employees to gather evidence on the gemba – the place where value is being created -- for joint evaluation.

Then they ask what should be done about the problem and ask employees why they have proposed one solutioninstead of another. This generally requires considering arange of solutions and collecting more evidence.

Then they ask how they – manager and employees – willknow when the problem has been solved, and engage one more time in dialogue on the best indicator.

Finally, after agreement is reached on the most appropriate measure of success, the employees set out to implement the solution.”

Cultural Enablers – Respect for Every Individual

A Plant Manager once invited Shigeo Shingo to come and visit his beverage bottling plant in the US. The Plant Manager wanted Shingo to tell him how he was doing on his lean journey.

After a few warm greetings, Shingo asked to see the plant. The Plant Manager took him onto a mezzanine which over looked the whole operation. The plant manager began pointing to different parts of the process explaining what was happening and how lean had improved their productivity, quality and safety.

No matter where the Plant Manager pointed, Shingo’s gaze stayed fixed on this one man at the end of the

filling operation, sitting on a stool and staring at the bottles as they passed. The Plant Manger finally noticed and remarked, “Our automated cap screwing operation sometimes misses a bottle, that operator makes sure the missed bottles don’t make it to packaging.” Shingo was visibly upset and told the Plant Manager, “You are disrespecting that man!!” The Plant Manager was shocked, “How am I disrespecting him? I pay him for his work, which provides for his family. I showed him what he would be doing before he was hired.” Shingo responded, “You disrespect him because you do not challenge him”

What do these stories teach us about the principle of Respecting People?



Describe the difference between a traditional manager and a coach?

Activity:• Break into teams. Discuss and identify on a flip chart 1 ideal behavior

that show respect for every individual as they relate to:• Leaders (Senior Leadership)• Managers• Associates

• How could we directly observe these behaviors on the floor?• As a team, identify questions we could ask operators, to gauge how

well the behaviors are ingrained?• What do we expect their responses to be?


Shop Floor Exercise:• Go to the floor and ask your questions to three

individuals• Return and discuss what you learned

A Behavior is…. Observed, Described, Recorded

What does Humility mean to you?

Can you describe someone in your life that exemplified humility?

Cultural Enablers – Lead with Humility

What is the opposite of Humility?



An email from Elon Musk on Safety to Tesla Employees:

“No words can express how much I care about your safety

and wellbeing. It breaks my heart when someone is injured building cars and trying their best to make Tesla successful.

Going forward, I've asked that every injury be reported

directly to me, without exception. I'm meeting with the safety team every

week and would like to meet every injured person as soon as they are

well, so that I can understand from them exactly what we need to do to

make it better. I will then go down to the production line and perform the same task that they perform. This is what all

managers at Tesla should do as a matter

of course. At Tesla, we lead from the

front line, not from some safe and

comfortable ivory tower.”

SBS Current State at US Endoscopy

Tile Score 0 – 2.9 3.0 – 3.4 3.5 – 3.9 4 - 5

Shingo Percent 0 - 59 60 - 69 70 - 79 80 - 100

In February 2017, US Endoscopy was formally assessed and received 240 pts out of 520 total pts, (2nd Highest in STERIS)

with 416+ approaching Shingo Prize status.

Grading System STERIS Business System

https://eon.phase5group.com/en/heatmaps/

SBS Current State at US Endoscopy

Aligning FocusUS Endoscopy has been charged with challenging for the Shingo Prize within 3 internal audits

To begin the gap closure, the 18 chapters of the SBS were prioritized through aligning to this fiscal year’s objectives.

This process helped us prioritize and choose 4 chapters from the SBS to focus our efforts. Chapters selected were ones identified as most likely to help us achieve our fiscal year objectives. This helps us close the SBS gap while also focusing on activities that align with our business needs.

Strategy Planning Session

Once the 4 Focus Areas were selected, teams were formed from

the Plant Leadership Team.

After fully defining Current and Future State the team began developing Gap Closure Plans

Embedding Principles of Enterprise Excellence

Steris Embeds the Principles by:• Strengthen The Core• Extend The Reach• Accelerate the Gains

Accelerate the Gains - Lean NPD - PVP

Physician Visitation Program – Physicians are brought on site, and given US Endoscopy’s latest prototypes. They work in a full scale lab where they test

each product, give feedback, rate the performance and provide

vital feedback to the CFT’s of each project

Accelerate the Gains - Lean NPD - HOQ

A visual process that helps design teams focus on the needs of the customer and translate those needs into product specifications.

Accelerate the Gains - Lean NPD - DFX

Design for Excellence (DFX) Workshop

Goal is to come up with best design, balancing product cost, time to market, quality and reliability, and up front/capital investment

Accelerate the Gains - Lean NPD – Visuals

Visual board for reserving

time in production cells to trial and develop prototypes and initial

builds. Poorly based off of Goodyear.

Accelerate the Gains - Lean NPD – 2P

Purpose of this event is to get production ready to produce a new product. Process includes Quality Mapping, Mock Cell design, Product Fishbone

Strengthen the Core – eSQDC MeetingsElectronic Safety Quality Delivery Cost Board (eSQDC)

What: Visual Management tool to evaluate daily, weekly, monthly the health of the cell or department.

Why: To make abnormalities visible, help problem solve, trend data and track actions.

Who: Everyone at Start Up, Engineers & Supervisors at VS Meetings, Managers at Board Walk

How: Value Stream members update daily/weekly. Teams use data to evaluate status of the site / department / cell, investigate and problem solve and document actions for

improvement with owners and due dates.

Idea Generation BoardWhat: Visual Management tool to track ideas from submission to implementation

Why: No one knows your job better than you. Everyone at US Endoscopy should improve their work everyday. The Idea Generation Board helps us make sure no idea is “lost in the shuffle”

Who: Everyone

What We Changed:- Visual Thermometers- 24 Hour Rule- Layered Auditing- Shift Start Up

Discussion At least 1 Idea Per Employee Per Month

Strengthen the Core – Idea System

0

20

40

60

80

100

120

140

160

180

200

August September October November December January February March April May June July

Ideas Implemented By Month

Actual FY17 Average FY18 Target

Added Visual Thermometers, Layered Auditing & idea

discussion at start up

Strengthen the Core – Idea System

- Week Long Training Program for all new hires- Topics: Company Overview, Lean, Quality, Safety, Product Use

Strengthen the Core – Onboarding

Lean Facilitator Training Program – Week long program designed to create lean facilitators across the enterprise

Strengthen the Core – LFT Program

Kaizen Sustainment Meeting – Weekly meeting where progress is evaluated, open items are addressed and event planning occurs

Strengthen the Core – Kaizen Sustainment

Kaizen Sustainment Meeting – Weekly meeting where progress is evaluated, open items are addressed and event planning occurs

Strengthen the Core – Kaizen Sustainment

SPONSORS

KAIZEN REPORT OUTS

KAIZEN CHARTERS

KAIZEN NEWSPAPERS

KEY PERFORMANCE INDICATORS (WITH TARGETS)

EVENT PIPELINE

3 MONTH CALENDAR

Extend the Reach – Lean Steering Committee

Committee chaired by VP/GM of US Endoscopy, reviews quarterly; corporate lean metrics, event performance, department progress, lean strategy

Extend the Reach – Employee Involvement

US Endoscopy’s family environment

Extend the Reach – Employee InvolvementBeyond the

Scope

Vending Bucks

Perfect Attendance

Free Kaizen Friday

Snacks with Sonya

You Opinion Matters Survey

Extend the Reach – President’s Kaizen

https://player.vimeo.com/video/193781529

https://player.vimeo.com/video/193781529

Tour Information• Safety glasses with side shields required

• Hairnets required

• Open toed shoes not permitted

Appendix

Level Frequency Duration Intensity Scope Leadership Associates

0 Nothing Nothing Nothing Nothing Nothing Nothing

1 Rare Undeveloped Apathetic Isolated Fire Fighting Job Focus

2 Irregular Experimental Individual Silos Uninvolved Occasional

3 Frequent <2 Yrs Local Several Set Direction Frequent

4 Consistent 2-3 Yrs Wide Multiple Involved Involved

5 Constant >3 Yrs FullEnterprise-

WideDriving Culture

Understand Why

SBS Grading System

STERIS Business System

getting good at getting better · cultural enablers cultural enablers make it possible for people...

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