Overcoming barriers to successful implementation

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Overcoming barriers to successful implementation

• Case Study

Pat Kennelly General Manager, Customer
Service Dimpco
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Change

• The process by which the future invades our lives
• Toffler

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Change in context

• The last 50,000 years 800 lifetimes
• 650 of those lifetimes spent in caves
• Writing for the last 70
• Printing for the last 6
• Electricity for the last 2
• Computers for the last ½

The world today is as different from the world
in which I was born as that world was from
Ceasers Boulding
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First Snag

• Lean and change are synonymous..
• In order to understand implementation you first
  need to understand 3 things
• Why
• What
• How

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Todays agenda

• Context of Lean change initiatives
• Why
• (What)
• How
• Barriers / Issues
• Methods
• Keenan
• Background
• Early days
• Recent developments
• The future

Theory
Practice
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Why Lean part one

• MNCs
• HQ dictat
• Competition within group
• Customer requirements

• SME
• (typical reasons)
• Improve efficiency
• Eliminate Waste

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Change Failures

• HBS Study on change programs
• gt30 had little effect on bottom line
• 40 of IT projects abandoned
• lt30 of BPR are successful

• Iceberg model1 is a useful way of thinking about
  the change process

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• In other words were talking about a journey.

1 Source IMI Handbook of Management Pg 330
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The continuum of Resistance to Change2

• Enthusiastic
• Co-operation
• Co-op under pressure from mgt
• Acceptance
• Passive resignation
• Indifference
• Apathy
• Doing only what is ordered
• Non learning
• Protests
• Working to rule
• Doing as little as possible
• Slowing down
• Personal withdrawal
• Committing errors
• Spoilage
• Deliberate sabotage

• Acceptance
• Indifference
• Passive Resistance
• Active resistance

2 AS Judson, Changing Behaviour in
Organizations Minimizing Resistance to Change
1991 p48
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10 Leading reasons for resistance 3

• Individual predisposition towards change
• Fear of unknown
• Climate of mistrust
• Fear of failure
• Loss of Status
• Peer pressure
• Disrupt cultural traditions or group
  relationships
• Personality conflicts
• Lack of tact / poor timing
• Non re-inforcing reward systems

Is the resistance Rational or Emotional /
Specific or General Emotional implies
perception is personal, hard to understand
and cannot be overcome with rational solutions
3 Kreitner Kinicki. Organisational Behaviour.
p671
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Methods to reduce resistance

• Books written on the subject
• Numerous techniques
• Lewin (Unfreeze / Change / Freeze)
• Lewin (Force field analysis)
• Kotter (8 Steps)
• Morgan (15)
• 2 Bottom lines.
• What are the organisational drivers
• Organisation needs to be ready

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Organisational Drivers

• Most successful change initiatives are founded
  on
• Crisis
• A drive for common progress (something in it for
  everyone)
• It is the second one that builds the virtuous
  circle of CI change

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Readiness..

• Source Ray McEvoy..
• D x V x C gt R

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Richard Keenan Co. Ltd
Founded 1979 Borris Co Carlow
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• Richard Keenan Co. Ltd

Core Purpose To make a real difference for farmers
Vision To become the unique world force in
innovative machine based system solutions for
farmers
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• Richard Keenan Co. Ltd

• Today
• Corporate headquarters and global manufacturing
  base is in Borris, Co. Carlow
• gt 40m T/O
• 85 Export
• 170 people in Ireland
• 70 people overseas including Australia, US,
  Germany, France UK
• 15,000 customers in 40 countries

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Largest manufacturer in Europe 2nd largest in the
world
A 25 year journey
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Early Steps Key Drivers

• BSE - 1996
• The need for a clear Vision / Strategy
• Market change
• Management Focus
• A need for Cost Reduction and Better Product
• A drive towards more Value added for Customer
• Live or Die !!

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The Keenan System

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Keenan Competitiveness

• Market position based on machine capability
  integrated with knowledge
• More than simply production efficiency

Initial focus was WCB not just WCM
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Mechanism

• Key Consultants
• John Sprouster
• Enterprise Ireland
• Waste reduction
• Management structure and processes
• Redefined the Keenan differentiation
• Relationship building

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Key Initial Concepts

• WCM
• Teams
• Process control
• Automation
• Flow

• WCB
• Sales process
• Costs
• Procurement
• Warranty

Quality
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Key production steps

• New production line
• Kan Ban System for material control
• Teams for each main assembly area
• People within each team responsible for
• Health Safety
• Kan Ban
• Right First Time / ISO
• Housekeeping
• Consumables

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Key steps (contd)

• KPIs (Key Performance Indicators)
• Weekly Production Targets
• Accident Reporting / Risk Assessment
• Right First Time Reporting
• Suggestion Scheme
• Absenteeism

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Tangible results (early wins)

• Snapshot of an interim (1999) report
• 19 separate metrics
• Benefits clear from an early stage

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More recent developments

• Brought to focus by some key strategic drivers

• Competitiveness within Ireland
• Capacity constraints in the factory

Make in house Material Cost 16.14 Outsource
(E.Europe)Total Cost 19 including delivery.
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Production Strategy

• Increase competitiveness
• Outsource lower value added activity
• Keep key competencies in house
• Move towards high value add production
• Improve layout
• Increase Capital investment
• Modify machine design to improve efficiency
• Build further innovation capability

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Capability Development

• Keenan Engineering
• Dedicated engineering building
• 0.5 million investment
• Foundation for future growth

• 4 Engineers
• 2 Draftsmen
• 3 Technicians
• (66 dept. degree qualified)

• 4 staff in Production and Engineering recently
  became lean green belts

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Example 1

• Paddles
• New cell designed and built (group input)
• Part specific tooling designed and made in house
• New materials allowed design change with lower
  cost weight, but higher strength
• Capital team built cell, tested process and
  trained teams
• Time to manufacture reduced by gt50
• Part cannot be bought in cheaper than can be made
  in house

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Example 2

• Chassis Cell
• Most of the product complexity is in the chassis
  area
• More than 1000 permutations of chassis, wheel,
  tyre
• Historically built in 2 plants, with lots of
  material movement
• Not suitable for outsourcing

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Chassis Cell - results

• New cell in a single location
• Part specific tooling designed and made in house
  (reversible jigs draggers)
• Increased capacity
• Staff count reduced from 9 to 7 (-22)
• No movement of material

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New cell during construction
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Common Themes

• Change credibility built up during late 90s
• Allowed more aggressive changes in the last
  couple of years
• In house skill with jigs and tooling
• Combined benefits
• Easier working conditions
• Better productivity
• Redeployment of staff

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Results
Hours to manufacture reduced by 66 since 1997
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The Future

• Develop the Keenan Manufacturing System
• Single assembly plant
• Mixed model value stream
• Double production capacity (30 min takt time)
• Drivers
• Current facility is capacity constrained
• Future EPA requirements needs state of art
  painting
• Current 2 plant layout not optimum efficiency

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Single Assembly Plant Layout
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Summary

• Keenan continue to thrive and prosper in a global
  business based in an economy that has been
  written off from a manufacturing perspective
• That they do so, is not just testimony to the
  product offering, but is a measure of, and just
  reward for the skill and innovation necessary to
  keep the product competitive
• It can be done.

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Better Farming - Better Food