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TBM serves clients throughout the world, Leading Your Competitive Transformationon five continents, in multiple languages. As we attempt to navigate the daunting challenges of today’s global economy, the survival of the businesses we lead may hinge on our ability to consistently coordinate immediate, unified responses to new threats and market shifts. To successfully compete over the long term, we must continuously break down obstacles, increase our speed and efficiency and get closer to our customers and value chain partners. But how do we embed the team-based speed and responsiveness required into the cultural DNA of our organization? Through a LeanSigma® Transformation, the journey that has taken Toyota and hundreds of other enter- prises to new levels of sus- tained competitive strength, innovation and growth. Transforming your business or organization into a competitive powerhouse is a long-term, multi-faceted journey of change. While each journey is unique, our clients typically follow the roadmap illustrated on page three. The stories that follow cover the range of TBM clients – discrete manufacturers, continuous process companies, healthcare, financial services and government – and give you a snapshot of the challenges they faced and where they stand today in their LeanSigma transformations. As you will see, the foundation of success is visionary leadership – the ability of management to inspire a new culture, motivated to continuously drive improvement in every part of your business and supply chain through the application of proven lean and six sigma tools and techniques. The payoff for your “transformational leadership” will be an energized, relentlesslyBusiness Focus innovative enterprise that can turn on a dime, in unison, to anticipate and quickly meetDiscrete Manufacturers the needs of rapidly-evolving markets and customers.Continuous Process Companies I hope these stories give you a sense of how TBM and Guidon may be able to assist you inHealthcare leading your own journey of transformation and success.Financial ServicesGovernment Anand Sharma Founder and Chairman, TBM Consulting Group 1
LeanSigma Transformation Model ®About Us Founded in 1991, TBM is the worldwide leader in lean innovation and rapid performance improvement for discrete manufacturers, continuous process companies, healthcare, financial services and government. We operate on five continents in multiple languages. TBM clients follow this roadmap to achieve rapid and dramatic The hallmark of our work is rapid implementation, generating sustainable results performance improvement and to translate their success into for our clients. Our proprietary LeanSigma® process helps clients achieve new game-changing competitive advantage and sustained growth and profitability. competitive advantages and consistent sales and earnings growth. TBM Consulting Group Over 150 senior-level consultants work side-by-side with senior management to drive culture change, transfer knowledge, and generate immediate, hands-on improvement for discrete manufacturers and continuous process industries – in “How many consulting firms the factory and in their business processes. unconditionally guarantee every TBM LeanSigma ® Institute aspect of their work? TBM is the A faculty drawn from TBM’s most experienced consultants, providing essential, only one I know of.” – Tim Powers, Chairman & CEO, experience-based LeanSigma training and development. With an action-oriented l tia Hubbell Incorporated en curriculum rooted in the Toyota Production System and distilled from hands-on t Po experience. t Guidon Performance Solutions en em A TBM subsidiary dedicated to helping healthcare, financial services, information ov pr technology, other service organizations and government agencies generate immediate Im gy te process improvement and establish a high-performance culture. tra ow th S 3 Lea n S ig ma Gr 2 Lean Value Chain 1 LeanSigma Process Improvement CURRENT ACTIVITIES Foundation: Lean Leadership & Culture Change YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Foundation Stage 1 Stage 2 Stage 3 • Policy Deployment • Operational excellence • Demand management • Market segmentation • Performance metrics • Kaizen Breakthrough • Order fulfillment • Value innovation Every TBM and Guidon consultant is a seasoned professional, with a minimum of 10 years • Managing for Daily • Time-based strategies • Supply chain development • Rapid product development of hands-on experience in their area of expertise. Unlike traditional consulting firms, we Improvement • Toyota Business System • Business planning and • Lean acquisition strategy focus on developing a vision and moving quickly to execution. And we guarantee total client • Lean Leader training segmentation satisfaction, unconditionally. 3
“Operational excellence is the price of admission to today’s global world. The real payoff Hayward Pool Products Leveraging lean for growth lies in where you go from there. Can you take that improvement across your value chain www.improvemypool.com – and translate it into significant benefits for your customers?” – Paul Adelberg, Vice President of Lean Technology, Hayward Pool Products“We thought we’d have to makethis pump in China.”“Instead, we’re producing it just as efficiently in North Carolina, with higherquality – and a fraction of the lead time,” points out Paul Adelberg, Hayward’svice president of lean technology. “It’s one example of how we’re converting ourlean improvement into meaningful benefits for our customers and employees.”When it began its LeanSigma transformation in 1999 with TBM, Hayward PoolProducts was an unlikely candidate for serious change – already the worldwidemarket leader, growing at double-digit rates nearly every year. “We were enjoyingvery good growth, or what we thought was good growth,” Paul recalls. “But wewere a typical batch manufacturer and growth meant more equipment, spaceand inventory. TBM showed us a new way, which enabled us to do far morewith less.”Since then, Hayward has tacked on an additional 10 market share points – anddoubled their business with less space and no change in direct labor headcount.Work in Process ( WIP) inventory turns have jumped from 12.6 to over 50 peryear, on-time delivery is up almost 25 percentage points and time-to-market fornew products has been cut in half. Integral to that dramatic improvement: aKaizen Promotion office in each plant and ongoing Kaizen Breakthrough events.For TBM clients like Hayward, operational excellence is not the end game, butrather the starting line for a Lean Value Chain – and sustained growth, innova-tion and competitive advantage. Two initiatives Hayward is now aggressivelypursuing with TBM: new product development, using Design for LeanSigma,and strategic “lean” acquisitions.“Instead of sending out a new brochure, our salespeople invite customers andprospects to tour one of our plants,” explains Paul. “They experience our entireprocess, the efficiency and testing, the enthusiasm, the quality and innovationwe’re building into every product. It’s an easy sell. Especially if they’ve been toone of our competitors’ plants first.” In the PowerFlo Matrix pump Lean Value Chain cell in Hayward Pool Products’ Rapid Product Development Clemmons, North Carolina plant: Paul Adelberg, Vice President Strategic Acquisitions of Lean Technology, Hayward Pool Products; Anand Sharma, Chairman, TBM Consulting Group. 5
“The LeanSigma process is more rigorous than Six Sigma. It allows us LeanSigma in 24/7 continuous Sappi Warren to use existing resources to quickly identify and fix sophisticated problems process operations www.warrenreleasepapers.com – and significantly improve profitability and competitive strength.” – John Martis, Managing Director, Westbrook Mill, Sappi Warren “This paper machine is 100 years old. It’s probably more productive now than when it was brand new.” Aging, inefficient infrastructure is a common issue for 24 /7 process operations – and Sappi Warren’s Westbrook Mill in Maine is older than most, dating back to the 1850s. It also had all the typical throughput and revenue-drainers when TBM began working there in 2004. “We were losing share to more responsive domestic competitors,” recalls John Martis, the mill’s managing director. “Long change-over times, excess WIP and machine downtime were dragging us down. TBM began engaging teams with targeted Kaizen and 5S events in high-opportunity areas, combined with process capability and equipment maintenance initiatives.” Unplanned mechanical downtime has been reduced by more than 50%, as Total Productive Maintenance and Operator Autonomous Maintenance have been implemented throughout the mill. WIP (work in process) inventory turns have tripled, total process time has been cut in half and value-added time has doubled. Change-over time and frequency have improved dramatically. “At first look, you’d think this 100 year-old machine couldn’t possibly run efficiently,” says John. “But it does and change-overs now take 70% less time.” “TBM’s LeanSigma methodology,” John continues, “is an incredibly powerful improvement tool in a continuous process environment, where the root causes of problems are less visible. How an activity impacts other parts of the operation may not be readily apparent. Lots of people talk about Lean and Six Sigma. TBM speaks from a wealth of process experience. They are hands-on and more disciplined about implementation than I’ve seen with any other consultants.” “The word is getting out,” John points out. “Other parts of the company are calling to say ‘we want to try this.’ They’ve seen how we have significantly improved our financial and business performance and are taking back market share – using the same resources we started with.”In Sappi Warren’s Throughput and Process CapabilityWestbrook, Maine mill: Overall Equipment Effectiveness ( OEE )John Martis, the mill’smanaging director; Bill Total Productive Maintenance ( TPM )Schwartz, Executive VicePresident, TBM ConsultingGroup; Doug Bonner, SeniorManagement Consultant,TBM Consulting Group. 7
WIKAGlobal competitive strategy www.wika.de How do you become so valuable to your customers that you cannot “We’re connecting our operational performance be replaced by a low-priced, directly with the needs of outsourced competitor? our customers, so we’re positioned as an essential The growth of the global marketplace has made it harder for companies to stay business partner. Our relevant doing the same thing, year after year. When you listen to customers, customers are buying based you become aware that their needs are changing rapidly. To avoid getting stuck on value, not price.” in endless, no-win price wars – as global competitors race to deliver attractive – Alexander Wiegand, alternatives to your traditional customers – you must constantly reinvent the Chairman and Chief Executive Officer, products and services you offer. WIKA Alexander Wiegand GmbH & Co. KG “We had unintentionally become the producer of a commodity, which customers tended to purchase infrequently, in large quantities,” observes Alexander Wiegand, WIKA’s chairman and chief executive officer. “New competitors were selling similar products for 30-50% less. Our competitive response was much more powerful than outsourcing. We began to leverage our ongoing process improvement into significant, tangible value for our customers.” WIKA, the global market leader for pressure and temperature instruments, was a typical batch manufacturer when they began their LeanSigma transformation in Germany and the United States in 2002. Huge reductions in manufacturing lead time, change-over time and delivery time have enabled WIKA to implement a “just in time” low-volume, high-variation production strategy – which is creating loyal customers and driving higher profits. Says Michael Gerster, who leads WIKA’s U.S. operations, “Today, WIKA is the clear alternative to low-cost, low-quality and long supply chain performance. Customers always ask for product variations to meet specific needs. We can produce high-quality, customized products and have them in customers’ hands in just 3-5 days. We’re truly selling added value.” Making your company irreplaceable begins with a different answer to the question about what your company does. “The old system of ‘we make stuff, you buy stuff ’ is over” emphasizes Michael. “I believe a company’s strength is determined by the level of customer dependence. We must keep finding ways to increase our customers’ reliance on WIKA as a valuable partner. That’s our future – and TBM is helping In a lean work cell in us write the script.” WIKA’s Klingenberg, Germany plant: Michael Herr, Managing Director Fast High-Variation Production Europe, TBM Consulting Group; Alexander Wiegand, Replace Price with Value Chairman and Chief Leveraging Lean for Growth and Profitability Executive Officer, WIKA Alexander Wiegand GmbH & Co. KG. 9
“Design for LeanSigma enabled us to develop and launch the two largest Game-changing Hubbell Incorporated product lines in our company’s 120-year history – a total of 2,200 discrete SKUs – new product development www.hubbell.com in less than half the time of our normal product development cycle.” – Bob Murphy, Senior Group Vice President, Hubbell Wiring Systems, Hubbell Incorporated “This is something no other manufacturer in our industry has ever done.” Translating your lean improvement into sustained growth and competitive advantage is the biggest potential payoff of a LeanSigma transformation, which Hubbell began with TBM in 2001. Wiring Systems, Hubbell’s first division, had a long-established reputation as the industry’s top-of-the-line supplier. “We identified two significant strategic gaps in our product offering,” explains Bob Murphy, Wiring Systems’ senior group vice president. “In 2004, we received the go-ahead to self-develop both. One alone would have been a mammoth undertaking, not to mention both together. We decided to use TBM’s Design for LeanSigma process, which another division had utilized to quickly develop a breakthrough new product.” With TBM’s guidance, Hubbell formed two dedicated product teams. “In the past,” says Bob, “one function would throw the project over the wall to the next group. Instead, we had all disciplines working as a team, in the same location, through the entire process – from Voice of the Customer and concept to packaging and delivery. Each project was managed as a team, rather than by individual disciplines, with everyone committed to a specific timeline. We got feedback instantly and made prompt decisions. It was totally collaborative.” Added Kevin Mallory, who headed up the residential product line team, “We had no preconceived notion of what the new product line would look like. Each team member collected Voice of the Customer input related to their function. Based on that input, we decided to differentiate through incremental improvements. One might not be a knock-out punch, but together we had a clear, defendable advantage over our competitors.” “We’ve transformed the business,” Bob concludes, “into a full-line supplier that can sell profitably at every price point. Before, we would have developed these two product lines in sequence, with each taking two to three years. We developed and commercialized both concurrently in just 24 months – at far less cost and with high-quality innovative products that could immediately be produced efficientlyIn a Hubbell product development “war and flexibly. That’s a great story.”room”: Bill Schwartz, Executive VicePresident, TBM Consulting Group; HubbellWiring Systems’ Bob Murphy, SeniorGroup Vice President; Brian McGlone, Design for LeanSigmaSenior Vice President, Marketing and Concurrent Product DevelopmentSales; Rajiv Katwala, Section Head,Residential Devices Design Engineering; Market LeadershipJohn Lamoureux, Section Manager,Hubbell Asia Plant Support; Kevin Mallory,Vice President, Residential Markets. 11
“To the unknowing eye, many business processes seem almost invisible. LeanSigma transformation Electronic Data Systems A finger hits a key to input an order, but what happens next? Guidon helps us (EDS) in the service sector see every step – so we can quickly evaluate and improve the entire process.” www.eds.com – Jeff Ruiter, Director of Demand Management Distribution, BPO Service Delivery US, EDS “Those who say it cannot be done… should not interrupt the person doing it.” “That gives you a pretty good idea how our team feels about process improve- ment,” observes Jeff Ruiter, referring to the Chinese proverb posted on the door of the Kaizen/LeanSigma “war room” in EDS’ Des Moines distribution and fulfillment center. “We may run into a brick wall, but we’re always going to figure out a way to the next level, fast. Guidon has been a huge contributor to our engaged, can-do culture.” Guidon Performance Solutions, TBM’s service industry and public sector practice, works with healthcare institutions, financial service organizations, government agencies, information technology and other service organizations. This EDS facility began its LeanSigma transformation with Guidon in 2005. “We handle a wide range of business process outsourcing for our customers – from processing and fulfilling orders to warehousing and managing their inventories,” adds Jeff. “Our performance and efficiency reflect directly on our customers’ reputations – and how competitively we can sell our services. So it’s imperative to keep improving quality, cost and delivery.” “Guidon provides a unique toolset, using LeanSigma methodology, that’s tremendously effective at generating rapid improvement in service environments, from office processes to distribution and fulfillment.” Part of that toolset is the Guidon High Performance Culture (GuidonHPC™), which simultaneously drives three critical improvement elements: culture change, performance management and talent development. To date, Jeff ’s team has conducted over 250 Sigma Kaizen Breakthrough events, with 93% full-time employee participation, turning the operation into a solid profit center. Units per labor hour are up almost 70%, accompanied by major improvements in accuracy and first-pass yield. Cycle time and floor space have been cut over 30%. “Guidon is also helping us translate that improvement into enhanced value and innovation for our customers, which in turn generates revenue growth for us. As space and resources are freed up, we’re able to add new services and value that our competitors can’t.”In the EDS “war room”: Larry Mead,Co-founder and Vice President, Guidon Value-Stream MappingPerformance Solutions; Jeff Ruiter, Time-Based StrategiesDirector of Demand ManagementDistribution, BPO Service Delivery US, High Performance CultureEDS; and members of the EDS Kaizen/LeanSigma office brainstorm their nexthigh-impact improvement target. 13
Jason Incorporated Rapid value creation www.jasoninc.com “We set stretch goals two years ago “If we don’t live and that each of my presidents thought breathe our LeanSigma transformation from the top, were ludicrous...” it’ll never work. It has “And we’ve exceeded them every year,” says Dave Westgate, president and chief to be led by our entire executive officer of privately-held Jason Incorporated, a global diversified management team. For manufacturing company headquartered in Milwaukee, Wisconsin. “We’ve culture change to take hold, increased profitability 40% each year, recovered over 200,000 square feet of our people need to see that manufacturing space, drastically reduced inventories and added hundreds of millions in revenue.” we’re passionate about lean and actively involved.” Jason began working with TBM in 2005. “We weren’t realizing our intrinsic – David Westgate, value as a public company,” adds Dave. “Effective private owners like ours President and Chief Executive Officer, establish aggressive goals – we basically had a two-year window to execute a Jason Incorporated five-year plan for transforming the company. TBM is very comfortable in situations like this. They immediately began to show us, hands on, how to use the Policy Deployment process and LeanSigma methodologies to quickly drive operational excellence and culture change throughout our five businesses.” “Policy Deployment has been critical. It helps us identify what’s really important to the company – the vital few objectives that our lives depend on. More importantly, it tells us what we should not be focusing our resources on. We also use it as a communications tool to cascade those objectives down through each level of the organization, so everyone is focused on what we need to do. And LeanSigma processes provide the speed and toolsets for achieving and sustaining operational excellence, the foundation for profitable organic growth.” Today, Jason is either the North American or global leader in 90% of its niche products. “The active example set by my entire management team has been essential. One of us is always on a kaizen team, on a shift-change walkthrough or involved in some other activity with our workers – to demonstrate how important this is for all of us. It’s a journey that’s never done because substantial improvement opportunities always exist.”On the shop floor at MilscoManufacturing, a Jason Lean Leadershipbusiness and major supplierto Harley-Davidson® Policy Deploymentmotorcycles since 1934.Left to right: Gary Hourselt, Rapid Culture ChangeExecutive Vice President,TBM; Jerry Bole, Presidentof Milsco; David Westgate,President and CEO of JasonIncorporated. 15
Responding to Sealy Corporation “Over 85% of our customers are within 300 miles of one of our manufacturing facilities. Our foreign competitors quote eight to ten week lead times. We build customized products foreign competition www.sealy.com to order in 48 to 72 hours, without any finished goods inventory. Who’s got the advantage?” – Shailesh Patel, Vice President Operations, Central Region, Sealy Corporation “Keeping production in the U.S. isn’t only patriotic, it’s fundamental to our business strategy.” “If you walk through any of our customers’ warehouses,” says Sealy’s Mike Hofmann, executive vice president of operations for North America, “you’ll see that over half their inventory says ‘made in China.’ We could have jumped on that bandwagon, but felt that we could build a far more powerful competitive model, with TBM’s help.” Sealy began their LeanSigma transformation in a strong position, as the world’s largest bedding manufacturer, holding the number-one U.S. market share for over 20 years. However, their 26 factories in North America were typical of the entire industry – inefficient batch and queue piece-rate production with mountains of inventory. “So far, we’ve cut total inventory 62 %,” states Shailesh Patel. “For a business our size, a one-day reduction equates to about $1.5 million in freed-up cash.” A focus on using LeanSigma principles, kaizen events and Managing for Daily Improvement (MDI) to drive rapid improvement and culture change has been a hallmark of Sealy’s initiative. All critical metrics are posted on shop floor SQSCM boards (Safety, Quality, Service, Cost, Morale), as part of the MDI discipline. Asked how lean and MDI have changed his environment, one long-time Sealy supervisor replied, “A year ago, if you had asked me how we were doing at any given point, I couldn’t tell you. Now I know.” “Our regional manufacturing strategy is about improving the workplace, encouraging innovation – and producing great products close to our customers,” adds Mike. “We’re using lean to drive standardization and eliminate waste throughout our supply chain, with TBM as our trainer and catalyst. We have lots of work ahead of us, but we’ll only become more competitive as our journey continues.” Managing for Daily Improvement Visual Management Mixed-Model ProductionIn Sealy’s Batavia, Illinois mattressfactory: Don Pflug, Plant Manager;Carl Deeley, Director – US Consulting,TBM Consulting Group; Shailesh Patel,Vice President Operations, CentralRegion, Sealy Corporation. 17
“TBM helped us build the infrastructure of our LeanSigma improvement program A.O. Smith Electrical A roadmap to self-sufficient – and trained and certified our Value Process Champions, who are now spearheading Products Company LeanSigma leadership our lean transformation in 30 locations worldwide, in four languages.” www.aosmithmotors.com – Fred Stell-Smith, Continuous Improvement/Kaizen Manager for Mexico, A.O. Smith Electrical Products Company “With this training, you can lead your own LeanSigma transformation, anywhere en el mundo.” LeanSigma leadership and the ability to drive and sustain culture change are essential foundations of a successful lean transformation. That challenge is magnified when the transformation involves multiple countries and languages, as it does for A.O. Smith, a leading global manufacturer of electric motors. Mike Mills, manager of continuous improvement, recalls, “We wanted to be self-sufficient, to train our own team of ‘Value Process Champions’ who would conduct regular kaizen events and be the front line of our LeanSigma transfor- mation.” A.O. Smith began their self-driven transformation in late 2004. “One of our fundamental values,” says Anand Sharma, TBM chairman, “is to always teach you everything we know. We formalized our hands-on improvement knowledge into a curriculum of essential lean learning for each stage of your LeanSigma transformation. That learning is absolutely critical to the success of your initiative, whether you get it from TBM’s LeanSigma Institute workshops or somewhere else.” “We felt TBM had the strongest training program, with the real-world application of lean tools our champions would use every day,” adds Mike. “First, our entire management team and one Value Process Champion from each plant attended TBM’s foundational lean-immersion workshop, Quest for the Perfect Engine. Then we put every champion through four other intensive workshops, what I call TBM’s ‘self- reliance package’: Kaizen Breakthrough Experience, Kaizen Promotion Office, Shop Floor Kaizen Breakthrough Instructor Training and Managing for Daily Improvement.” This training, conducted in both English and Spanish, was completed in June 2005. “We hit the ground running”, says Mike. “Our champions ran 145 shop floor and business process kaizen events in 2005 and almost 300 in 2006. We’ve implemented the same model in China, with TBM’s China office giving our champions the identical training in Mandarin and English. The efficiencies and performance improvement we’ve achieved have been outstanding. We bring in TBM periodically to assess our progress and suggest ways to get better, but otherwise, we’re running our transformation ourselves.” Essential LeanSigma Learning Knowledge Transfer Culture-Specific TrainingRocio Hernandez, one of A.O. Smith’sTBM-trained Value Process Champions, Multi-Lingual Curriculumleading a Kaizen team in A.O. Smith’sIG Mex #6 plant in Juarez, Mexico. 19
Creating competitive advantage “When a customer is looking for a product we normally carry – and we don’t have it Argos UK with a lean, synchronized for them – they don’t care if the problem is in our warehouse, with one of our suppliers, www.argos.co.uk value chain or someone who put it on the wrong shelf. It’s all Argos to them.” – Alistair Sercombe, Head of Operational Excellence, Argos“The value chain contains thelargest chunk of total costs andlead time… but is often the weakestlink in a LeanSigma transformation.”Ninety-five percent of the United Kingdom’s population lives within 10 miles ofan Argos store. Argos sells all types of merchandise, from toys and electronics tojewelry and furniture. Like most major retailers today, they offer a multi-channelapproach, serving over 130 million customers a year in nearly 700 stores, as wellas handling approximately four million orders either online or over the phone.“Once you could sell speed or price,” says Alistair Sercombe, Argos’ head ofoperational excellence. “Now customers routinely expect both. The performanceof our retail, supply and distribution operations are all intertwined in thatcustomer satisfaction equation.” Argos started working with TBM in 2004,focused on building operational excellence into its new National DistributionCentre. After saving more than $2 million at this facility in the first 18 months,Argos expanded its Lean Value Chain focus to other areas:— Regional distribution centers: product returns, goods received and dispatch— Home delivery distribution centers: small parts put-away, returns and picking— Retail stores: customer picking, returns and repairs“We’re in the early stages, but a cultural shift is definitely taking place,” addsAlistair. “People are generating new ideas and building enthusiasm for involve-ment and improvement, not because it’s a top management edict, but becausethey see the value.” One recent benefit: by cutting truck-loading time by 75 %and reducing the number of loading docks required by 55 %, Argos can nowmeet anticipated growth targets without new warehouse facilities.The Lean Value Chain, the second ongoing phase of a LeanSigma transformation,eliminates excess pipeline inventory, long lead times, erratic demand, poor on-time delivery, price variances and limited visibility. By opening the entire chain’seyes to all the processes involved in getting their products to the customer – andthen building excellence into all those areas – companies create the power totransform their competitive landscape. Demand Management Order Fulfillment At Argos’ Magna Park Distribution Centre: Richard Holland, Managing Supply Management Director – UK, TBM Consulting Business Planning and Scheduling Group; Alistair Sercombe, Head of Operational Excellence, Argos. 21
“Everyone at Pella wants to improve every day. Continuous improvement is embedded Sustaining a culture of Pella Corporation in our culture. It’s the way we do business. It’s how all of us think.” continuous improvement www.pella.com – Denny Van Zanten, President, Wood Division, Pella Corporation “What we’ve achieved isn’t about the company’s management.” “Each person here deserves credit. All of us are proactively engaged in the improvement process,” points out Denny Van Zanten, Wood Division president. “We do MDI walkthroughs like this at every shift change to share key metrics. Each team member always knows where we stand and what we need to accom- plish. It’s an essential discipline that maintains improvement momentum – and reinforces how serious we are about it.” Lack of sustained culture change is the number-one reason LeanSigma initiatives fail to take hold or lose momentum. Pella, a leading manufacturer of premium- quality windows and doors, is one of the business world’s outstanding examples of the impact of culture change in a lean transformation, which they began with TBM in 1993. Using two of the most powerful drivers of rapid improvement and culture change – Kaizen Breakthrough events and Managing for Daily Improvement (MDI) – Pella has achieved operational excellence, which they are extending across their value chain. “It’s a testament to the quality and initiative of our people, at every level,” says Van Zanten. “Together with TBM , we’ve built a positive, can-do culture, which engages everyone. Our people know they’re leading our transformation – that it means better conditions for them, improved company performance and more satisfied customers.” Culture change is a primary focus of TBM’s teaching and implementation work, because it is such an essential component of success. Pella has been at it for 15 years, Toyota over 50. Reinforces Mel Haught, Pella’s president and chief executive officer, “I don’t think you can ever relax or assume that you’ve got it.” Culture Change Long-Term Sustainment Managing for Daily Improvement ( MDI )An early morning production line meeting andwalk through in the Pella, Iowa plant: Pella’sDenny Van Zanten with Pella team members. 23
“We want Iowans to know they are getting the most effective, LeanSigma transformation State of Iowa responsive state government possible – that we are customer- and in the public sector www.lean.iowa.gov results-driven and work hard for them every day.” – Teresa Hay McMahon, Performance Results Director, Iowa Department of Management “Traditional government doesn’t see taxpayers as customers they need to satisfy or compete for.” Ask people about their state government and chances are you’ll get an earful about long lines, infuriating waits and illogical levels of bureaucracy. If you’re the only game in town, what difference does it make how fast or innovative you are? “Every state agency competes for visibility, constituent support and scarce resources,” observes Teresa Hay McMahon, performance results director in Iowa’s Department of Management. “You may be the only department issuing a certain permit, but you’ve got plenty of competition.” When Iowa began its LeanSigma transformation with Guidon Performance Solutions, TBM’s service industry and public sector practice, collaboration among state agencies was alien to the culture. The first Sigma Kaizen event focused on the air quality permit process. At 62 days, it was one of the short- est in the country, but the one-week event reduced it to 12 days, with process steps cut 70 %. The next one-week event decreased the lead time of another permitting process from 28 to 4.5 months. So far, Iowa has conducted more than 70 Sigma Kaizen events in 18 departments – and similar dramatic examples of new efficiency and responsiveness are now commonplace. Says Teresa, “It’s human nature to be defensive about the way you’ve always done things. Guidon’s approach removes personalities and allows workers to step out of the process, so they can see and implement far better solutions. And it helps them empathize with the needs of their ultimate customer, the taxpayer.” With LeanSigma tools designed for the public sector, Guidon helps state governments quickly build efficiency and performance into their culture. Concludes Teresa, “We can be more responsive to constituents, minimize the need to raise taxes and deploy scarce resources where they serve the public best. It’s a big win for everyone.” In the Senate Chamber of the Iowa State Capitol building: Teresa Hay McMahon, Performance Results Director, Iowa Department ofCompeting for Scarce Resources Management; Brent Jameson, Director of Business Development,Public Sector Service Excellence Guidon Performance Solutions; Anita Walker, former Director, Iowa Department of Cultural Affairs. 25
Knowledge TBM LeanSigma Institute “If I had eight hours to chop down a tree, Id spend six sharpening my axe.” Transfer Essential training and development for each stage of your Lean journey – Abraham Lincoln Awareness. Skill Development. Skill Mastery. Peer Networking. 100% Satisfaction Guarantee. Lean leadership and culture change are the foundation for every step of a Workshops at the Customized learning Lean “Best Practice” successful LeanSigma transformation. Unless your entire organization under- TBM LeanSigma Institute Work directly with senior TBM LeanSigma conferences stands and rallies behind your initiative – and is proficient with the critical The TBM LeanSigma Institute conducts Institute consultants to develop a training Peer networking is an extremely effective a comprehensive curriculum of interactive, curriculum customized to your unique form of knowledge transfer. TBM holds tools and techniques required to drive fast, continuous improvement – it is instructor-led workshops at our headquarters enterprise needs and culture. Provides the several “Best Practice” conferences each year, unlikely you will succeed. The TBM LeanSigma Institute was formed to provide in Durham, North Carolina and at confer- skills, tools and roadmap for a self-driven designed to encourage experiential learning that essential learning and motivation – and facilitate its rapid, efficient transfer ence centers and hotels around the world… transformation, similar to the A.O. Smith from peers and outside experts around the to every part of your organization. to position each level of your organization story on pages 18-19 of this brochure. world, who share challenges and successes for success at every stage of your LeanSigma from their LeanSigma journeys. All the clients in this brochure have relied on the Institute’s experience-based transformation. Online learning learning at different phases of their transformation… from basic awareness TBM’s innovative Online Learning Center training for senior management… to skill development and skill mastery for Workshops in live, delivers LeanSigma learning globally, at host-company operations internet speed, providing a convenient, operational teams. Each of our instructors is a senior TBM consultant who’s Nothing reinforces and builds upon cost-effective way to train an infinite spent more than ten years, hands-on, actually implementing the LeanSigma classroom learning more effectively than number of employees in a short time. Our principles they’re teaching, grounded in the roots of the Toyota Production the hands-on, real-life application of approach combines interactive exercises “Tell me and I’ll forget. System. Many are widely-recognized experts. They spend most of the year in critical LeanSigma tools and techniques… with simulations to reinforce key learning… the field, quickly leading client teams to dramatic performance improvement, conducted in operations similar to your and get everyone quickly speaking the same Show me and I’ll enabling them to bring a wealth of real-world experience to every workshop. own, on an actual manufacturing or improvement language. remember. Involve me continuous process plant floor or in a and I’ll understand.” business process or service environment. Materials licensing with – Native American Proverb 24/7 online access “If you have knowledge, let others light their candles with it.” On-site, dedicated workshops Quick and easy access to TBM’s extensive – Winston Churchill TBM on-site workshops bring our full library of training materials… online, in learning curriculum right to your facility, or seven languages. Immediately download the location of your choice, tailored to your materials you need to conduct training at Introduce the concepts of LeanSigma to multiple levels of management and needs and objectives. A cost-effective alter- local facilities worldwide… and even view operations… and give them a clear understanding of the road ahead. Advance native if you have six or more individuals the latest report-outs for LeanSigma events new skill sets and internal capabilities to create teams of action-oriented to train. within your organization. change agents who will help your organization travel further, faster. Build leadership skills. And create the rock-solid internal capability you need for sustained innovation, growth and competitive advantage. The TBM LeanSigma Institute provides essential LeanSigma Multinational, multilingual knowledge and support at each stage of your transformation, Uniquely qualified to serve the training needs of multinational clients, the TBM for every level of your organization. LeanSigma Institute provides a comprehensive global curriculum in multiple languages, from offices in North and South America, Europe, Asia and Australia… to help our clients implement consistently, across multiple cultures. 27
® TBM Consulting GroupTBM Corporate Headquarters TBM Consultants (India) Guidon Performance Solutions4400 Ben Franklin Blvd. Private Ltd. 2550 N. Thunderbird CircleDurham, NC 27704 Technopolis, Sector-54 Suite 317Tel 800.438.5535 DLF (Golf Course Road) Mesa, AZ 85215Fax 919.471.5135 Gurgaon, India 122 002 Tel 866.986.4414 Tel +91.124.437.5995 Fax 480.357.6324TBM BrazilAvenida Moema 170, cj - 45/46 TBM MexicoSão Paulo – S.P. Calzada San Pedro #250 Nte. www.guidonps.comBrazil 04077-020 Edificio HQTel 55.11.5051.7490 Col. MiravalleFax 55.11.5052.0082 Monterrey, NL CP 64660 MexicoTBM China Tel 52.81.50.00.91.36Room 3, 3/F, POS PLAZA Fax 184.108.40.206.00.691600 Century AvenuePudong TBM United KingdomShanghai, 200122 3 Gleneagles HouseP.R. China Vernon GateTel: 86.21.6888.6671 Derby DE1 1UPFax: 86.21.6888.6672 United Kingdom Tel 44.1332.367378TBM Europe Fax 44.1332.367.37929, Route de Pré-Bois1215 Geneva 15Switzerland www.tbmcg.comTel 41.22.710.77.70Fax 41.22.710.77.71Copyright 2008 – LeanSigma®, TBM and the TBM logo are registered trademarks of TBM Consulting Group, Inc.
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