1 Achieving Change in a Manufacturing Environment

2 OBJECTIVES To cover:  Why is Change so Difficult  Steps for Achieving Change  Example of Operational Visibility  Involvement from all Levels  Review Key Performance Indicators  Making Change Stick

3 THE CHANGE CURVE PERFORMANCEPERFORMANCE T I M E UnfreezingSTAGETransitionAcceptance DENIAL (Apathy) RESISTANCE & FEAR (Anger & Apprehension) UNDERSTANDING (Assessment) EXPLORATION (Activity) COMMITMENT (Acceptance) “We don’t need help” We have a plan” “I hate this. “What about me?” “I understand this” “I like this!”” ““Why didn’t we do this before?”

4 Have a common goal – identify specific issues that will be addressed, implementation plan must be reasonable and practical Change management efforts – Change requires everyone within the organization, even management Involve factory floor personnel – Operators in continuous improvement events, empowering them to feel they can make a difference Take action and provide feedback – Allow operators to see how they are performing and that action items are being addressed Enable real time visibility and transparency – Quickly identify the root cause of a problem on the floor and take action Just do it – Quick wins Be reasonable and practical ACHIEVING CHANGE

5 OPERATIONAL VISIBILTIY Helps show root cause and what/where our improvement efforts need to be placed Helps to drive focus Operators can see their performance – allowing them to take appropriate action Management can see KPI’s and to take action when needed Dashboard Visibility builds towards Accountability

6 OPERATOR INVOLVEMENT Operators can take action and see what other shifts are doing Diverse team allows for input from each department Allows for better communication – department to manager to individual Everyone can feel they can make a difference

7 Find and establish the few Key Performance Indicators and targets at each level Goals should be aligned throughout all levels of organization Find and establish the few Key Performance Indicators and targets at each level Goals should be aligned throughout all levels of organization  Profit  Cost  Quality  Market share  Profitability  Quality cost  Delivery times  Inventory costs Example targets Division Level (Weekly to Monthly Reviews) Plant Level (Daily to Weekly Reviews) Department Level (Daily Reviews)  Downtime  Productivity  OEE  Loss Points REVIEW KEY PERFOMANCE INDICATORS

8 MAKING CHANGE STICK Get people affected by change involved to help define the opportunity and design the solution Base change on facts and business intelligence that are accessible to everyone in the organization Institutionalize the change by starting with a pilot initiative…. ….Then move to consistently apply a repeatable process to sustain it Build accountability into the process and…. ….Through the use of scorecards and dashboards create interlocking dependencies between all levels of the organization so that their mutual interest is in sustaining the change Perhaps the most important, view change as a continuous process, not a one-time event