DAVID GRAHAM Continuous Improvement Manager Executive Director

More than 100 Years of Truck Building in the Town of Leyland 1896 Lancashire Steam Motor Company

UK Truck Industry 1945 Onwards AEC Albion Seddon Atkinson BMC Bedford Bristol Commer Dennis Dodge ERF Foden Ford Guy International Jensen Karrier Leyland Maudslay Scammell Sentinel Shelvoke and Drewry Thornycroft Trojan Vulcan

Britains only remaining Truck Maker Leyland

Eindhoven Westerlo Bayswater Leyland Denton Madison St. Therese Mexicali Seattle Chillicothe Leyland Trucks DAF Trucks Kenworth Peterbilt Renton PACCAR World-wide Foden Trucks

Performance and quality improvement stagnatingPerformance and quality improvement stagnating Change resistance at all levelsChange resistance at all levels Competitive pressures increasingCompetitive pressures increasing Awareness through best practiceAwareness through best practice CHANGE was possibleCHANGE was possible 1989: THE BEGINNING

Rebels20% Main Stays 15% High Performers 5% Miserable people/sods Moaning people/sods 60%

Strategy - Business Plan Systems Improvement Unit Improvement Method Improvement Daily Performance Monitoring – Action Tracking

PRODUCTION MANAGER Logistic 20% Shopfloor day to day problems and communications 40% Forward Planning 5% Quality 5% Industrial Relations 10% Ind Eng 10% Meetings 15%

Team Enterprise Leadership - can we do it? Yes we can! Leadership - can we do it? Yes we can! initiating change Involvement = Ownership = Commitment Involvement = Ownership = Commitment Teams – getting people to work together. Teams – getting people to work together.

Transition / Programme FIRST THREE STEPS 1. Convince and educate the Senior Management Team 2. Convince and educate the Middle Management Team 3. Establish a consensus view of workforce needs, priorities and satisfaction levels (change initiation).

Action Planning Training Development Needs Recommendations on Communications Employee Systems Organisation Structures Customer Focus Continuous Improvement Management Style Teamworking/Empowerment Development Programme SKILLSGAPSKILLSGAP

COMMUNICATION Clear Open without ridicule Consistent Not to be guarded and cautious Significant impact in developing the team enterprise culture

SUCCESSFUL COMMUNICATION COMMUNICATION NETWORK Training & Development Discussions Meet the Team Continuous Improvement Team Meet the Boss Weekly TU Meeting 6 Monthly Business Review Meeting Team Meetings Daily Briefings Weekly Written Brief Quality Time

TEAMWORKING Key Operator Coaching Self Audit of Mgmt Style Team Briefs Small Group Sessions (videos) Involvement Meet the Boss Recognition Key Operator Briefings Joint Improvement Groups Continuous Improvement Training BU Manager Development Empowerment Communication (formal) BU Development Every Little Counts Change Initiation Programme Group Meetings MAINTAININGTEAMWORKING MAINTAINING TEAM WORKING

KPI Comparisons Driving Forces KPI Improvement Product Quality Index % Defects per 100 trucks % Delivery Reliability98%/week99%/day- Ave. Inventory23 turns63 turns270% Overhead/truck£1874/truck£1456/truck22% Trucks/employee % Assembly hours/truck835731% Overtime7%0.5%93% Minor Injuries %

Benchmark Comparisons Driving Forces KPI1999 Ranking2004 ytd Product Quality Index7th1st Defects per 100 trucks5th1st Delivery Reliability5th2nd Inventory Turns8th2nd Off-line WIP9th1st Assembly Efficiency7th3rd Overtime9th2nd

CONCLUSION REMEMBER - BE PATIENT, IT TAKES TIME!

Qualities Sought by a Senior Director from their own line manager. A clear vision of where and how they are going A high level of focus on the task in hand Energy and Enthusiasm Open mindedness and approachability Humility, willingness to accept personal mistakes Ability to delegate, not to micro manage Integrity/courage to challenge negative behaviours or attitudes Good interpersonal skills, including communication, recognition and listening skills A natural change initiator

Qualities in Addition for more Junior Management. Ability to coach and mentor Patience Involving/Engaging