1 The Jacksonville Lean Consortium Presents…. 2 Building a Dream Team Culture: “People Powered...

1

The Jacksonville Lean Consortium

Presents…

2

Building a Dream Team Culture: “People Powered Lean”

January 28, 2010

3

Or

People are Better Than Materials!

Who Before What

4

5

“The most important process in your organization is the process that describes the relationship between the leader and their people. It is the only process that matters.”

Mike PettersPresident, Northrop Grumman Newport NewsOctober 21, 2006

Right Up Front• People are irrational, unpredictable, and incredibly talented..is that

strange? YES> deal with it!• Every person is extraordinary is some way• It is the Leaders Job to know what their people want• People and Lean: Stability First = Trust; then Continuous

Improvement• Long Term Thinking Required and steady pressure on a “Big Rock”

carries the day.• TMG has the same issues & challenges as our partners

– Values Driven

– Strategy Based

– Focused on Winning

6

7

People are not Rocket Science… they are harder!

Joe Hogan, President GE Medical

8

Core Beliefs• Start with the end in mind! …Take a Systems Approach

• Be in the business of making hard things easy…not easy things hard.

• People are good and want to do the right thing

• It is the organizations responsibility to create an environment for its’ people to be successful…and our people’s vote counts more than ours.

• If you believe the workers can only be as good as their leader then you also believe leaders can only be as good as their leaders!

• Every organization has a limited bandwidth for change

• Culture vs. Change and Leading

• Change Requires Trust and Trust Requires Stability

• Business is a Team Sport

• Turf, Ego, and $$$ and the end of the day it is about…

9

Army Basketball Team 1976-1977

10

Business is a Team Sport• Think Hard: Are we organized for success and doing

the right things?– Right Plays– Right Rules– Right Positions

• Work Hard: Are we executing the plays? – Putting the right people with the right skills in the game to run

the plays – Motivating them to produce and Win!

• Talk: Communicate– Everything is constantly changing– Providing Aggressive Leadership

11

Dream Team Business Goals• Create an atmosphere of ownership• Increase profitability• Create a condition that produces “First Time Quality”• Continuously improve safety rates• Improve customer satisfaction through increased

responsiveness to critical customer concerns• Continuously identify and eliminate waste

12

Task Force 2-4 Cavalry Tactical Operations Center TeamFeb 21, 1991 - Northern Saudi Arabia

13

Workshop Learning Objectives“Take a Good Idea Home”

• Know the importance of Team Stability, Engagement and Trust• Understand how to organize your Team for success.• Understand that Recruiting, Trying Out, and Making the Team is a

key value added activity.• Investing in the Current Workforce Development Process to optimize

headcount while increasing productivity and production capacity.• Focus on Playing to Win by developing your most valuable assets . .

1st Line Leaders and their immediate Managers.• Know the principles of how to build your Benchstrength to reduce

long term risk.• Keeping Score and building Teams that win over the long haul

Are you in the right Workshop?

Exercise

14

Do you believe it is possible to have a Dream Team at

work?

15

When was the last time you were on a Dream Team?

How did you know?

Exercise

16

AgendaJanuary 28, 2010

7:00-8:00: Continental Breakfast

8:00-12:00: Building a Dream Team Culture

12:00-12:30: Lunch

12:30-2:00 Jacksonville Sheriffs Office Case Study

2:00-4:00 Break Out Sessions and Workshops

4:00-4:30 Wrap Up and Closing

17

18

Take a Blue Slip

Our Way to Communicate and Facilitate Our Journey!

19

Take a Blue Slip

What do you want to learn today?

20

Today we will generate a lot more questions than

answers…

….and that is OK

PS: The answer is: “It Depends”

What is Corporate Culture?Culture: The predominating attitudes and behavior that characterize the functioning of a

corporation.

1. Culture refers to an organization's values, beliefs, shared assumptions, and expected behaviors.

2. In general, it is concerned with beliefs and values on the basis of which people interpret experiences and behave, individually and in groups.

3. Cultural statements become operationalized when executives articulate and publish the values of their firm which provide patterns for how employees should behave.

4. Firms with strong cultures achieve higher results because employees sustain focus both on what to do and how to do it...

5. Discouraging Culture: no shared values; lack of trust; blame culture; focus on problems, not opportunities; diversity is not celebrated; failures are not tolerated; people lose confidence in their leaders and systems...

21

22

The Power of People: Increasing Team Engagement to

Create a High Performance Culture

Team Engagement Theory

• What is Engagement? – The Theory

• How do you measure it? – Engagement Assessments

• How do you improve it?– Methods and Best Practices

24

Team Engagement Theory

Team = Leaders and the Led

Organizing for Success by applying the principles of Team

Sports

Vision and Mission

• Leadership without a Goal is irrelevant.• Goals without a Plan encourage activity not productivity• Plans align the team and assign responsibility, authority,

and accountability from the Senior Executive to the lowest Team Mate.

• Alignment shows every team member what they need to do everyday for the team to Win.

• When every team mate is engaged to execute the plan then the Team Wins!

25

Engaged Leaders Reduce Uncertainty and

Increase Situational Awareness

26

27

Team Engagement Requires Trust

• Leaders will provide:– Clear direction– Appropriate

Resources– Expert Advice– Feedback and

Coaching– Growth Opportunities– Reward and Praise– Fair Treatment

• Led will:– Treat the company

like their own– Hold each other

accountable for doing the right thing

– Give early warning of problems

– Have the courage to ask questions

28

“Trust”

• Exists in very personal, irrational, and operationally volatile terms between the Leader and the Led

• Trust is a function of Situational Awareness

• High Trust increases SPEED and decreases COST

• Low Trust decreases SPEED and increases COST

29

Vertical Dyad Linkage TheoryThe Linkage Power Depends On…

1. Leaders Managing Personal Relationships– Vertical Dyad: Leader Led x number of direct reports– Employee performance, productivity, and engagement

depend on their relationship with their IMMEDIATE Supervisor

2. Leader and Led continuously Creating Shared Mutually Supportive Goals– The Employee’s Goals and Needs– The Organization’s Goals and Needs as articulated by the

Leader– Requires continuous Goal Alignment within Developmental

Plans and continuous Feedback

30

Organizational Goals– Cost– Schedule– Quality– Safety

Individual Goals– Compensation– Opportunities– Responsibility– Work

Environment– Recognition

Communication

Leader

AwarenessGoal Alignment

Led

Leader to Led Linkage

Can only occur when there is a conversation between the Leader and the Led about the Led!

Authentic Communication

Tools•Performance Agreements

•Career Maps•Individual Development Plans

•Mentoring•Leadership Though Engagement

31

Take a Blue Slip

• When was the last time you had a Goal Alignment Session with your direct reports?

• When was the last time you had a Goal Alignment Session with your boss?

32

It is All About the Relationship between the Leader/Leds and the Goal…

Led(M)

Leader

Led(I) Led(O)

GOAL

33

Signs of Engaged (In-Group) Teammates

• High Trust• Low Task Definition Needs• High Relationship Needs• Psychologically committed to the company• Consistent levels of High Performance• Innovative and a drive for efficiency• Intentionally build supportive relationships• Clear about role outcomes expected• Passionate, high energy, and enthusiastic• Never run out of things to do• Loyal to workgroup and company• Broaden what they do and build on it• Positive constructive criticism

34

Signs of Actively Disengaged (Out-Group) Teammates

• Low Trust• High Task Definition Needs• Low Relationship Needs• Physically present but psychologically absent• “What can I take” rather than “what can I give”• Share unhappiness about work with peers• “I’m OK but everyone else is not”• Service prevention rather than service provision• Not productive but always has excuses• Inability to move from problem to solution• Normal reaction starts with resistance• Low commitment to company• Might sabotage or manipulate solutions• Isolation, low trust

35

Signs of Dis-Engaged/Satisfied/Middle Group Teammates

• Meeting the Basics• Confusion or inability to act with confidence• Low risk response• No real sense of achievement• Making up their own game• Not always committed• Show negativity but not underground

36

This is the This is the behavior of behavior of what type what type

Team Mate?Team Mate?

1.1. EngagedEngaged2.2. Disengaged/SatisfiedDisengaged/Satisfied3.3. Actively DisengagedActively Disengaged

37

Engagement Assessment Instrument

1. Who provides your daily work instructions? Name:________________

2. Do you know what you are supposed to do everyday?

3. Do you have the materials, tools, and equipment you need to do your work correctly?

4. Do you have the skills to do your work correctly the first time?

5. Are you incentivized to do your work as quickly and efficiently as possible?

6. When was the last time you received feedback on your work?

7. Does your Leader care about you as a person?

8. Is there someone that helps you improve your performance?

9. Do you have the courage to ask questions and offer ideas on how your Team can get better?

10. Are you helping your Team Win?

11. Do your Teammates hold each other accountable for doing the right thing and doing our work correctly the first time?

12. Have you and your Leader discussed your progress and how you can better contribute to the Team?

13. Do you know what you need to do to get ahead in the company?

14. Is your Team Winning?

15. Trust:a. For Teammates: Do you trust your leader?

b. For Leaders: Do you trust your team members?

16. If you were offered a promotion would you accept it?

17. Are you seeking a new job?

38

Leader:____________________ TEAM ROSTER(Led)

____________________________________________________________________________________________________________________________________________________________________________________

Actively Disengaged

Disengaged

Date:________________________

Engaged

Team:________________Step 1: Current Team Status?

39

Developing an Engaged Team Strategy

• Increase the Engaged (In-Group)• Decrease the Actively Disengaged (Out-Group)

Facts:– Little movement from Out to In– More movement from In to Out due to Leaders breaking the Goal

Alignment Contract/Agreement

40

The Key to SuccessDisengaged/Middle Group

1. New Employees make a decision within first 48 - 72 hours from introduction to immediate supervisor.

2. Dis-Engaged Employees are those “…just putting in my time” but not actively doing harm. They may be Situationally Engaged. They can be influenced by Leaders and their Engaged Teammates.

Strategy:Focus on the Disengaged/Middle Group to move them into the

Engaged/In Group as quickly as possible.

What is your plan to create Engaged teammates? One at a time!

41

Engagement Improvement Tools

1. Change your Leadership techniques based upon Engagement Assessment results/insights

2. Better matching to job which leverage strengths vs. mechanical job assignment

3. Use your Engaged Teammates to recruit Disengaged Team Mates

4. Task Based Coaching

5. Provide Training

6. Focused Leadership under normal operational circumstances

7. Leverage internal Churn Opportunities

8. Take advantage to external Turnover

9. Focus on New Teammates to create Engaged Teammates Quickly

10. Improve Leader to Led matching; especially with New People

11.Allow subordinate Leader input/selection

12. Improve Team Stability

13.Train Teammates in key engagement skills

14.Personnel Actions as required

15.Change the Batting Order

16. Build a Better Plan

42

Leader:____________________ TEAM ROSTER(Led)

____________________________________________________________________________________________________________________________________________________________________________________

Actively Disengaged

Disengaged

Date:________________________

Engaged

Team:________________Step 2: Where do you want to be?

Individual Engagement Improvement Worksheet

Name: _____________

Current Engagement Level: ___________

Goal Alignment Discussion(s) Date: ___________

Engagement Improvement Plan:

a.

b.

c.

Engagementvs.

Satisfaction

Test Question

44

45

2009 Industry Overview

• Engaged: 29%

• Not Engaged: 54%

• Actively Disengaged 17%

46

Opportunity for Improvement

• 25% of the working population are ignored by their supervisor

– Actively Disengaged: 40% of them are in their workplace

– 58% are Not Engaged – 2% are Engaged

Source: Gallup

i4cp Engagement Data

• 29%: Leaders are acting to improve engagement

• 15% of employees believe their leader knows how to engage the workforce

• 24% of companies are training leaders to engage their workforce

47

48

Getting Out of the Box… Big Picture Thinking!

49

REQUIRED Level of Performance

CURRENT Level of Performance

PerformanceGap

Mea

sure

s of

Per

form

ance

…It is All About Business Performance!

ResourcesRequired

50

Business Improvement Hypothesis

If we completely align our Lean Journey with our People SYSTEMs we will:

– Improve Quality– Improve Production to Headcount Ratio thus Reducing Labor

Cost per product – Reduce Defects through focused Continuous Improvement– Reduce Lead Time to Increase Market Share – Increase production capacity and…– Improve PROFIT margin

…by optimizing the plant’s physical production capacity to our production process.

51

The Lean House without Waste

52

Business of People“Team Engagement”

The Mission:

Provide right Leaders with right People in the right numbers, in the right skills, at the right time, at the right cost to meet business needs.

The Goal:

An agile, competent Team capable of moving at the speed of business and improving “bottom line” performance.

53

Dream Team Hypothesis

If we align the organization and improve leader behaviors then we will increase

team engagement and improve

business performance.

53

54

Organizing for Success

Theory and Application

55

Lean Goals• Improve Quality• Eliminate Waste• Reduce Lead Time• Reduce Total Costs

• Process • Materials• Cost (People)• Equipment

Through Near Real Time Visibility over:

56

A SYSTEM to Align People to Process obtaining

Employee Engagement

ProcessProcess MaterialsMaterials CostCost EquipmentEquipment People

The Requirement

57

Business ProcessSales/Quoting

CustomerOrders

ReceivingComponents

Assembly

Finished GoodsProcessing

Sampling

Scheduling

Planning

Staging

Sequencing

PurchasingComponents

Pulling Components

Sterilizer

Ship toDistributor/Customer

58

Value Stream Map

SHIP

CUSTOMER

IDEAL STEEL

Plant 3

WAREHOUSE(CASTINGS

BUSHINGS & BOSSES)

BURN

LIP ASSEMBLY

BRAKEBEVEL BEAMS

LUG TACK

SIDE ASSEMBLYROUNDO

SIDE REINF.

DAYS5

LINE 1

LUG CONNECTION

LINE 2

LUG CONNECTION

LINE 1

TACK

LINE 2

TACK

LINE 1

WELD 1

LINE 2

WELD 1

LINE 1

WELD 2

LINE 2

WELD 2

LINE 1

WELD 3

LINE 2

WELD 3

BORE

ADAPTERS

DAYS5

FINAL ASSEMBLY/BLAST/ PAINTFIFO

BOSSES

DAYS10

POINTS

DAYS5

MISCELLANEOUSBUCKETS

Cycle Time Mins45

Production mins/shift Mins540

Operators Staff1

Cycle Time Mins90


Production shift Shfts1

Operators Staff1

Cycle Time Mins108



Operators Staff1

Cycle Time Mins108


Cycle Time Mins90



MRP

ProductionControlSTEEL SUPPLIER

BUCKETS DAYS11

SHROUDS

DAYS5

BUSHINGS

DAYS5

Cycle Time Mins50

Uptime (%) %95

Operators Staff2

Cycle Time Mins45


Cycle Time Mins90



Operators Staff2

Cycle Time Mins45



Operators Staff2

Cycle Time Mins45


Operators Staff2

Production shift Shfts1 Production

shift Shfts1


BARREL

ESCO SALES

FORECAST (30-60-90)

FAX/SALE ORDER

FLOOR SHOP SCHEDULER

OXOX

FORECAST (30-60-90)

PURCHASE ORDER

FORECAST (30-60-90)

FIRST SHIFT PROCESS03/23/04

PURCHASE ORDER

Operators Staff1

Operators Staff1


A10

A20

A30

A40

B10 B20 B30 B40 B50

C10 C20 C30 C40 C50

D10

F10 F20 F30

Frequency

PER DAY1

Frequency

PER WEEK1

Frequency

Per Week2

Frequency

Per Week1

Cycle Time Mins90



Operators Staff1

Cycle Time Mins90



Operators Staff1

Cycle Time Mins90



Operators Staff1

Cycle Time Mins108



Operators Staff1

Cycle Time Mins108



Operators Staff1

Cycle Time Mins108



Operators Staff1

Operators Staff1


5.00 DAYS

50.00 Mins

5.00 DAYS

108.00 Mins

0 DAYS

108.00 Mins

0 DAYS

Uptime (%) %98

108.00 Mins

10 DAYS

108.00 Mins

0 DAYS

108.00 Mins

0.50 DAYS

90.00 Mins

5.00 DAYS

45.00 Mins

0 DAYS

WIP

DAYS.5

PLATE STEEL

DAYS5

4

WKS

DAYS

2

DAYS

SHIFTS

9.25

SHIFTS

HRS

60

HRS

Mins

60

MINS

Secs

F40


Develop In-Line Boring Capability

Completed Parts from Ideal

Develop Kanban Replenishment

SystemDevelop Kanban Replenishment

System


System

Reduce Plate Inventory by 20%


System

Develop Misc. Flow Line

Add Welding Capability at Final

Assembly

Develop New Scheduling Tools for

Flow Lines

Frequency

Per Week1

WIP

DAYS.5

WIP

DAYS.5

Frequency

PER DAY1

Operators Staff3


WIP

DAYS.5

WIP

DAYS.5

0.50 DAYS

45.00 Mins

TOTALS

Non-Value Days26.00

Value-Added Mins770.00

Operators Staff25.00

T10

Shift Shfts11

Buckets Shfts5 Buckets Shfts5 Buckets Shfts5

Buckets Shfts11

Buckets Shfts11

Buckets Shfts5Buckets Shfts5

Buckets Shfts6Buckets Shfts6 Buckets Shfts6 Buckets Shfts6 Buckets Shfts6

Qty/Assy (pcs) Shfts11



2

Shfts

DAYS

LARGE BUCKETS

Operators Staff2


E10

2nd SHIFT ONLY

How do we create value?

59

The SYSTEM that produces value is your…

ORGANIZATIONAL SCHEME

60

Value-Adding Activities….transform materials and

information into products the customer pays for

Non-Value-Adding Activities….consume resources, but don’t

directly contribute to the product and/or the customer

Non-Value-Adding but Required….consume resources, but are required

by government regulation or company policy

61

Value Stream to Cell Map

SHIP

CUSTOMER

IDEAL STEEL

Plant 3

WAREHOUSE(CASTINGS

BUSHINGS & BOSSES)

BURN

LIP ASSEMBLY

BRAKEBEVEL BEAMS

LUG TACK

SIDE ASSEMBLYROUNDO

SIDE REINF.

DAYS5

LINE 1

LUG CONNECTION

LINE 2

LUG CONNECTION

LINE 1

TACK

LINE 2

TACK

LINE 1

WELD 1

LINE 2

WELD 1

LINE 1

WELD 2

LINE 2

WELD 2

LINE 1

WELD 3

LINE 2

WELD 3

BORE

ADAPTERS

DAYS5


BOSSES

DAYS10

POINTS

DAYS5


Cycle Time Mins45

Production mins/shift

Mins540

Operators Staff1

Cycle Time Mins90


Mins540

Production shift

Shfts1

Operators Staff1

Cycle Time Mins108


Mins540

Production shift

Shfts1

Operators Staff1

Cycle Time Mins108


Mins540

Cycle Time Mins90


Mins540

Production shift

Shfts1

MRP


BUCKETS DAYS11

SHROUDS

DAYS5

BUSHINGS

DAYS5

Cycle Time Mins50

Uptime (%) %95

Operators Staff2

Cycle Time Mins45


Cycle Time Mins90


Production shift

Shfts1

Operators Staff2

Cycle Time Mins45


Mins540


Operators Staff2

Cycle Time Mins45


Operators Staff2

Production shift

Shfts1Production

shiftShfts1

Production shift

Shfts1

BARREL

ESCO SALES

FORECAST (30-60-90)

FAX/SALE ORDER


OXOX

FORECAST (30-60-90)

PURCHASE ORDER

FORECAST (30-60-90)


PURCHASE ORDER

Operators Staff1

Operators Staff1

Production shift

Shfts1

A10

A20

A30

A40

B10 B20 B30 B40 B50

C10 C20 C30 C40 C50

D10

F10 F20 F30

Frequency

PER DAY

1

Frequency

PER WEEK

1

Frequency

Per Week

2

Frequency

Per Week

1

Cycle Time Mins90


Mins540

Production shift

Shfts1

Operators Staff1

Cycle Time Mins90


Mins540

Production shift

Shfts1

Operators Staff1

Cycle Time Mins90


Mins540

Production shift

Shfts1

Operators Staff1

Cycle Time Mins108


Mins540

Production shift

Shfts1

Operators Staff1

Cycle Time Mins108


Mins540

Production shift

Shfts1

Operators Staff1

Cycle Time Mins108


Mins540

Production shift

Shfts1

Operators Staff1

Operators Staff1

Production shift

Shfts1

5.00 DAYS

50.00 Mins

5.00 DAYS

108.00 Mins

0 DAYS

108.00 Mins

0 DAYS

Uptime (%) %98

108.00 Mins

10 DAYS

108.00 Mins

0 DAYS

108.00 Mins

0.50 DAYS

90.00 Mins

5.00 DAYS

45.00 Mins

0 DAYS

WIP

DAYS.5

PLATE STEEL

DAYS5

4

WKS

DAYS

2

DAYS

SHIFTS

9.25

SHIFTS

HRS

60

HRS

Mins

60

MINS

Secs

F40


Mins540Develop In-Line Boring Capability




System


System



System



Assembly


Flow Lines

Frequency

Per Week

1

WIP

DAYS.5

WIP

DAYS.5

Frequency

PER DAY1

Operators Staff3

Production shift

Shfts1

WIP

DAYS.5

WIP

DAYS.5

0.50 DAYS

45.00 Mins

TOTALS

Non-Value Days26.00



T10

Shift Shfts11


Buckets Shfts11

Buckets Shfts11






2

Shfts

DAYS

LARGE BUCKETS

Operators Staff2

Production shift

Shfts1

E10

2nd SHIFT ONLY

Lips Assemble/ TackLug and

Beam WelderWeld 1* Weld 2* Weld 3

Production Cells

Who is going to do it?

62

Organizational Scheme Analysis

63

Org Chart

64

SS

OM

1S

MU

NE

GM

OM OM

SSSS

1S 1S

GT GT

NE

Organizational Scheme

GM: General ManagerOM: Operations ManagerSS: Shift Supervisor1S: 1st Line SupervisorMU: Make Up SupervisorGT: Go To EmployeeE: Employee NE: New Employee

Vertical Dyad Linkage

EE

65

Organizational Alignment

• We continue to be organized vertically in stovepipes yet we create value horizontally. - - Jim Womack

• Long Tail manufacturing requires greater agility yet we rarely change the way we operate to create the conditions for increased agility.

• We are running different plays but from the same formation creating waste everyday.

“My Leaders are working harder than ever but we don’t seem to be

making much progress”

66

67

Insight

• I love my leader; I hate my company

• Why? – Because the company “forces” my leader to do

bad things.– My leader cares about me but they are in a “no

win” situation.– I would never want to be a leader in my company

68

Organizational Structure can “KILL” Leaders and their people because it

forces failure no matter what anyone does!

Joe HoganPresident

GE Medical

Must Knows

• Which Leader is the “Heartbeat” of your business everyday?

• Which Leader holds the “Heartbeat” Leader in the palm of their hands?

• Have you created an environment where they can Win?

69

70

1. Know how the business makes money2. Evaluate Responsibilities of each level3. Look for Common Themes that flow

from level to level4. Look for Unique Responsibilities on

each level

5. Identify how they interface with People, Data, and Equipment at each level

6. Define Planning Horizons at each level

Developing TasksMethodology

71

Key Factors

• “Line of Sight”, Explicit, and Fixed harmonization of Accountability, Authority, and Responsibility

• ERP Impact• Execution or Analysis ?• Identification of Organizational “Tipping Points”• Leader Churn

72

Core Business Data Element

Number of Products Invoiced

Production Line Uptime

73

Core Daily Business ActivityManufacturing

ProductionSupervisors

Operations andDaily Checks

Scheduled Maintenance

Unscheduled Maintenance

Engineering and Maintenance

Operators and Maintainers

Chief Maintainers and Maintenance

Foreman

Production Line Uptime

Foreman

74

PM

Upper Level Production Organizational

SchemePM: Plant ManagerPRM: Production ManagerQM: Quality ManagerEM: Engineering ManagerAM: Administration ManagerPDM: Production Dept. Manager

QMPRM EM

PDM

Department Production Quality Engineering Admin/WH

# of Employees 124 10 33 30

AM

75

PRM

PS

PM

QM EM

PDM

CM

O

Organizational Scheme- Production -

PM: Plant ManagerPRM: Production ManagerQM: Quality ManagerEM: Engineering ManagerAM: Administration ManagerPDM: Production Dept. ManagerGPS: Gen. Production SupervisorPS: Production SupervisorMS: Maintenance SupervisorCM: Chief MaintainerM: MaintainerLO: Lead OperatorO: OperatorNO: New Operator

O

M M

LONO

GPSMS

AM

CM

M

Area of Interest

76

1st Line Leader Geometry

CM: Chief MaintainerM: MaintainerLO: Lead OperatorO: OperatorNO: New Operator

ENG: EngineeringMAINT: Maintenance

ENGMAINT

PEOPLE PROCESS

77

Key Job Activities and Accountability by Level

• Planning Horizon• Scheduling/Overtime Approval Responsibilities• Daily Focus (Execution or Planning)• Communication Tools with Subordinates• Communication Tools Laterally• Communication Tools up the Chain• Report Generation Responsibilities• Level of involvement in Production Issues• Continuous Improvement Responsibilities• Ability to Discipline People• Key Performance Metrics• Solely Responsible for ____________

78

Scope of Responsibilities

Chief Maintainer• Planning Horizon = 1 Day• Focuses on today and working with

People to maximize Machine Uptime• Key Performance Metric:

Quality Cans per Machine Spoilage Changeover Time Unscheduled Maintenance Repair Time

• Communicates verbally/non-verbally to Team• Communicates verbally to Supervisors

and Managers• Inputs and monitors production data

79


Supervisor• Planning Horizon = 4-Day Work Week• Focuses on Weekly Production Schedule • Key Performance Metric:

Quality Cans per Line Spoilage Safety Attendance/Scheduling Labor Costs

• Communicates Verbally to Chief Maintainers• Communicates Verbally and via

Data System to Managers• Prepares Production Reports and

Conducts Analysis

80


Manager• Planning Horizon = 6 Months• Focuses on Monthly Production Schedule • Key Performance Metric:

Quality Cans per Line Spoilage Labor Planning

• Communicates electronically w/ Plant Manager• Prepares Production Reports and

Conducts Analysis with Recommendations• Conflict Resolution• Hourly Personnel Decisions• Continuous Improvement

81


Plant Manager• Planning Horizon = 12 Months• Focuses on Customer Satisfaction • Key Performance Metric:

Profit/Loss Customer Retention

• Communicates electronically and via reportswith Ball Corporate

• Salaried Personnel Decisions• Budget Preparation and Management

8282

Mission Essential Task List (METL) Matrix

MISSION ESSENTIAL TASKS Chief CS GS/COS PRM PM

MAINTAINS SITUATIONAL AWARENESS X X X X X

COMMUNICATES X X X X X

COMMITTED TO SUCCESS X X X X X

LEADS X X X X X

TECHNICAL COMPETENCE X X

USES THE COMPUTER X

MATCHES PEOPLE TO JOBS X

DOES JOBS RIGHT THE FIRST TIME X

SOLVES TODAYS PROBLEMS X X

PLANS X X

DEVELOPS SUBORDINATES X X X

CONDUCTS ANALYSIS X

REMOVES BARRIERS X X X

SYNCHRONIZES OPERATIONS X X

BUILDS TEAMS X

STRATEGIC PLANNING X82

83

THINK Strategically…Continuous Improvement

“Changing the Conditions”

…ACT Tactically: “Day to Day” operations to meet

business objectives

1. Cost2. Schedule3. Quality4. Safety

84

Leader Compression

• When more than one Leader level is working the same problem simultaneously.

• The Boss always Wins!• The Subordinate Leader Loses…• The Subordinates are confused• We are killing alligators at a high rate of

speed!• But…Who is draining the swamp?

85

Continuous ImprovementOver Time

Current State

FutureState

PerfectState

TIME

Success = Product Produced within Cost, on Schedule, no Re-Work, Safely

86

Leader Lanes

Time

Current State

FutureState

PerfectState

SUP MGR MGR PM PM

SUP

87

Apollo 13

Houston… We Have a Problem! Example

Practical Exercise

88

Summary• Start with the end in mind…• Organization Charts show reporting relationships• Organizational Scheme describe how you run

your business and it changes by itself• Is there Waste in your organizational scheme?• Do your leaders know their lane and more

importantly does everyone else?• Are you Organized for Success?• You MUST get this right!

89

Break

90

On Boarding GoalsJim Collins

• Right People On the Bus

• Wrong People Off the Bus

• Right People in the Right Seats (Matched with the Right Leaders)

91

Are you forecasting your labor as you forecast your business?

Production needs drive labor requirements…

• How far out are you looking?• What skills will you require? Current or New?• Lead Time from labor requirement to

competency?• Who is responsible for managing it?• What models do you use? • What options do you have?

92

REQUIRED

CURRENT

Options:• Re-allocate Current Employees• Hire Experience • Hire New People• Work Overtime• Hire Temporary Labor• Outsource• Increase Productivity• Change the Process (Lean)• Increase Capacity (Automate)M

easu

res

of

Perf

orm

an

ceLabor Acquisition Options

Best Recruiting Pipelines?

ResourcesRequired

Data Driven Labor Forecasting

93

Workforce Snapshotas of July 31, 2009

August 12, 2009 94

Total: 220Leader to Led: 38/182

Foreman/Leadman/Worker/Temp: 15/23/129/53

NOTE: JAN 1 personnel numbers started 4/27/09

Major Job Titles by Population- Time in Position/Service –

(Data Report Date: 6/25/2009)

Job Title# in

Position

Average Years in Position

Average Years of Service

Maximum Years of Service

Minimum Years of Service

Maintainer 62 10.22 14.25 36.61 1.06

Operator 37 6.72 7.75 32.10 0.76

Material Handler 20 9.76 13.40 36.58 3.40

Chief Maintainer(Includes Maintenance Chiefs)

19 9.89 23.40 36.71 9.11

Maintenance Mech. 11 9.72 12.19 29.00 0.34

Electrical Tech. 9 13.85 13.85 29.67 1.20

Supervisor (Prod) 9 4.57 24.37 33.45 4.48

Manager 8 13.65 24.04 35.85 10.76

CPM / Chief CPM 8 16.08 22.14 36.89 9.36

QA Chiefs / Insp. 7 5.69 16.38 36.26 5.99

Warehouser 4 20.06 32.28 36.71 28.9695

= Area of Concern = High Risk

Major Job Titles by Population- Aging by Job Title –

(Data Report Date: 6/25/2009)

Job Title# in

PositionAverage

Years of AgeMaximum

Years of AgeMinimum

Years of Age

Maintainer 62 46.21 62.38 29.76

Operator 37 44.16 61.10 20.89

Material Handler 20 46.60 60.41 32.82


19 50.08 58.92 30.78

Maintenance Mech. 11 45.21 59.48 27.04

Electrical Tech. 9 44.86 60.01 27.60

Supervisor (Prod) 9 51.03 59.88 37.90

Manager 8 53.02 60.47 39.01

CPM / Chief CPM 8 52.75 62.74 36.99

QA Chiefs / Insp. 7 46.49 61.73 30.84

Warehouser 4 55.21 58.79 51.94

96

= Area of Concern

97

2009-2014 Production Aging

2009 - 2014 ManagerProd. Supervisor / Maint. Supervisor

Chief Maintainer / Maintenance Chief

Maintainer Operator

Current Position Population 3 9 18 62 37

Retirements (28 Years Service, 60 Years Old) 2 2 5 10 2

Promotions to Back Fill Positions 0 2 5 13 32

Projected Personnel Actions (Transfer, Vol., Term. etc.) 15% / 5 yrs 0 1 3 9 5

Expressed Interest in Advancement (Advancement Desire Survey) 2 8 15 40 26

Substitute Leader Pool for the Position (with Advancement Desire) NA 14 19 NA NA

Potential Hiring Requirement NA NA NA 5 39

# Vacating Current Position 0 5 13 32 39

Ratio of Near Term Potential Successors to Vacancies 8:2 14:5 19:13 NA NA

RISK: Potential for 105% turnover at the Operator position and over 50% at the Maintainer position.

98

Near Term Headcount Risk/Opportunity

Job Title2009

Current Headcount

Dec 2010Expected

Headcount(of Current Pop.)

Promotion / Hiring

Forecast

Reduction via Attrition Opportunity

Jan 2011 Potential

Headcount

Maintainer 62 51 +11 -2 60

Operator 37 32 +5 -4 33

Material Handler 20 19 +1 0 20


19 16 +3 0 19

Maintenance Mech. 11 11 0 0 11

Electrical Tech. 9 8 +1 -1 8

Supervisor (Prod) 9 8 +1 0 9

Manager 8 8 0 0 8

CPM / Chief CPM 8 5 +3 -3 5

QA Chiefs / Insp. 7 6 +1 -1 6

Warehouser 4 2 +2 -2 2

Totals 194 166 +28 -13 181

99

The On Boarding ProgramRecruitingTrying Out

Making the Team

Getting the Right People on the Bus…

On Boarding Hypothesis

Belief: Engaged Employees are your Most Valuable Assets And

Great Leaders create Engaged Employees Then

A World Class On Boarding Program is mission critical to business performance

SustainableGrowth

EngagedEmployees

EngagedCustomers

TheRight Fit

IdentifyIndividualStrengths

Real ProfitIncrease

Great Leaders

StockIncrease

On Boarding

On Boarding

Why is Talent Acquisition so Important?

• Products and marketing strategies are commodities with LIMITED/NO uniqueness

• People differentiate our business

• People are unique and want to Win!

• Our On Boarding System is a direct reflection of our Culture– Engaged People Compete– Human Machines Do Tasks as Assigned

“A century ago, the most valuable U.S. corporation was U.S. Steel, whose primary assets were smokestack factories. Today’s most valuable corporation is Microsoft, whose most valuable assets go home every night. Companies that want those assets to return every morning must pay attention to the workplace.”

From Fortune Magazine’s introduction to its 100 Best Companies To Work For

102

Our People’s Vote Counts More…• Create a system that enables both the company and

the applicant to make a “Win-Win” commitment… – First day should be a “commitment” day; not a “let’s see how

this goes day”

• It is Management’s responsibility to create an environment for our employees to be successful…– Not an environment that encourages them to fail

On Boarding Pitfalls

• Lack of a Lean System-wide approach to On Boarding/Teammate Acquisition

• Short Term Focus• One size fit all program • Insufficient Metrics and Accountability• Lack of Operations Leader Buy-in and participation

New Hires Want . . .“Successful Companies Understand The Needs of Their People”

• To know what is expected of them from the start

• The materials, equipment, and skills to do their work right

• The opportunity to do what they do best everyday

• To receive recognition or praise

• To feel that people care about them as a person

• Encouragement to develop

• To feel they are part of the solution

• To understand and live the vision & mission

• To see and hear that others are engaged and focus on quality

• To feel they have a friend at work

• To be aligned with their leader

• To feel they can learn and grow

What is the Emotional Take Away from Your On Boarding Process

“People don’t remember what you said or what you did, but they always remember what they felt.”

Diana Oreck; Ritz-Carlton, VP Global Learning

Critical Questions in Your Orientation and Onboarding Process1. “What’s the emotional take-away here? What is the way we are doing this

right now, and what emotions would a new employee take away from this experience?”

2. “Are these the emotions we want to leave them with?” If your answer is no, then ask “What emotions would we like them to experience?” and “How can we create an experience that would naturally elicit these?”

106

Reality. . .Limited Leader Focus

Current State On Boarding Process1. Operations asks for a person

2. HR finds someone

3. HR brings them on the job

4. New person either sinks or swims

As fast as HR is hiring. . .Ops is firing

90% of the Senior Managers reported their On Boarding Process was outdated and didn’t focus on Engaging the new hire

89% of new hires don’t have knowledge needed to “hit the ground running”

46% of newly-hired employees will fail within 18 months, while only 19% will achieve unequivocal success

100 “Fortune 1000” Companies Surveyed

Knowing Where You Are

• Core Metrics (Past & Present)– Attrition

• When does it occur• Why is it occurring• Who hired that individual• Where is it occuring

– Time to Competency • Proficient in first job = to others

– Headcount to Labor Hours Ratio

– Cost of Hiring– Hiring Cycle Time

– Any Production Metrics related to Attrition

• Data Capture Targets– Current State Map– Why do people stay– Why do people leave– Where do best come from– Prior job patterns– What are your differentiators– What does best New

Teammates look like– Who Owns the Process

107

New Hire Retention

Year # Hired # Retained as of December 31

% Retained

2004 561 359 63%

2005 497 215 43%

2006 274 261 94%

2007 568 530 93%

108

109

Turnover Tracking

110

Hiring Cost Calculation

• Averaged 35 Resumes per Hire in 06-07 (30 External, 5 Internal)• Klein Test: $300/candidate (after successful interview)• Drug Screen: $30/test• Background Check: $25/check• Online Job Postings: $295/hire • Touch Time Hourly Rate Conversions:

(Median Ranges for Pay Grade)• HR AA: $20.77/hr.• HR Manager or Inside Sales Team Leader: $31.15/hr.• Hiring Manager: $40.85/hr.• Manager: $60.53/hr. • Director: $80.30/hr.

• Steps requiring 5 minutes or less of Touch Timeare not included in the Cost to Hire calculation.

• This Cost to Hire calculation generates a very conservative figure, but offers a repeatable baseline for the ROI Analysis of Future State changes.

111

College Transfers

Adult Education

Current Employees

Community Colleges

High Schools CommonSkills

TrainingTech Schools

Orient,Screen

&Identify

Candidates

Building PipelinesBusiness Metrics:

- Decrease Cost of Hiring- Reduce Attrition (pre- and post- hiring)- Reduce Hiring Cycle Time- Improve New Hire Integration - Improve New Hire Job Performance- Decrease New Hire Time to Competency

Military

State Employment Offices

Temp Agencies

Other Companies

Interview&

AssessSkills

GenerateLabor Req’s

HiringDecision

Increase Cost Decrease Cost

1st JobSkills

Development

112

Employee AcquisitionCreate a New Hire “Pull System”

– When Production needs people they “create an order”– Production demand “cues” the Employee Acquisition SYSTEM.– Reduce cost of Hiring by utilizing Subject Matter Experts to recruit,

identify, and evaluate the skills of applicants.

– Optimize the use of Government Provided Employee Services to Outsource as much as possible.

– Reduce hiring cycle time to improve responsiveness.– Reduce touch time to reduce cost.

113

ForecastBy Labor Category

Minimum: ___

Maximum: ___Generate

Labor Req’s

Key Questions:What is your Labor Forecast?

vs.What is your capacity to on board new employees?

114

ExampleHiring Forecast and Schedule

Month # Hires

July: 10

August: 5

Sept: 0

Oct: 10

Nov: 5

Dec: 0

Total: 30

115

Production Identifies

Requirement

HR PostsRequisition &Sends to OET

HR Receives

Applications

HR SchedulesInterviews

Welding TestHiring

Decision

Drug Screen and

Physical

Applicant Given Report

Date

HR AdminInprocessing

8 Hours of Video

OSHA Training

OJT Training

Current State Hiring Process

Offer Sent

ProductionInterviews

Cycle Time: 10.3 WeeksCost: $2,008 per new hire (Labor costs only)

116

The On Boarding Process“Opportunity for Improvement”

117

Production Identifies

Requirement

HR PostsRequisition &Sends to OET

OETScreening

HR Receives

Applications

HR SchedulesInterviews

InterviewsConducted;

Welding Test

Hiring Decision

Drug Screen and

Physical

Applicant Given Report

Date

HR AdminInprocessing

Plant Manager Meeting

Shift Supervisor

OSHA Training

Process/Quality

Training

Modernized Hiring Process

Offer;New Hire

Packet Sent

Cell Training

Structured Orientation and Training Process

Cycle Time: 5.8 Weeks - 43.7% reductionCost: $1,420 per new hire (Labor costs only) – 29.3% reduction

118

Pre-Qualifying Questions

• Are you t least 18 years old and eligible to work in the United States?

• Are you willing to work at a Flat Standard Starting Rate of $14/hr. or $11/hr for training pay?

• Are you willing to work 2nd Shift only (no 1st shift hires)?

• Do you have reliable transportation?

119

High Performance Candidate Profiles

• Fluxcore Job Experience or Training with stable work history

• Weld Test Classification of FQ, Q or MQ to be considered.

• At least 18 years old and eligible to work in the United States

• Knowledge of Blueprints & Symbols

• Willing to Work Overtime

• 3rd Shift Only (no 1st–2nd shift)

• Reliable Transportation

• Referral from a engaged employee or family member

• Apprentice school or technical college training

120

Realistic Job Previews

Link to full RJP

http://www.tmgva.com/BallRJP/

121

Identify Recruiting Differentiators

• Working Condition– “My boss tells me what to do and then lets me do it.”

• Work Environment– Inside vs. Outside

• Pay and Benefits• Workforce Stability• Shift Schedule• Free and convenient parking• Overtime Opportunities

122

Potential Pipelines• Current Employees • Adult Education• Employment Agencies• Military• Community Colleges• High School Graduates• Technical School Graduates• College Transfers• College Graduates• Other Companies• State and Local Agencies

123

REQUIRED

CURRENT

Sources:• Current Employee Referrals (A): 29%• Company Web Site (P): 22%• Job Boards (P): 13%• Recruiting Agencies (A): 11%• Print Want Ads (P): 8%• Rehires (A): 6%• College Recruiting (A): 5%• Career Fairs (A): 4%• Walk Ins (P): 2%

Measu

res

of

Perf

orm

an

ce

Best Recruiting Tools

Talent Acquisition Magazine 2006

(A): Active(P): Passive

124

Orientation and Screening

• Conduct Initial Orientation by providing Realistic Job Preview to each interested person.

• Candidates passing minimal screening criteria are provided applications.

• Validates Pre-Requisite Experience as required and provides copy of skills assessment/test.

• Ensure application completion• Classifies Recruit• Provide Recruit with Hiring Process Information and

Tracking Sheet

Orient,Screen

&Identify

Candidates

125

Interview or “Try Out”Goal: Create a situation where the employee and the

company can determine if the new employee has the skills and attitudes to be successful.

Features:1. Plant Tour2. Skills Assessment3. Attitude Assessment4. Hiring Decision5. New Teammate Skills Development Plan

126

Focus on the ApplicantInterview and Test Schedule

– Pre-schedule appointment times to reduce cycle time.– Understand you company’s interview and test capacity. – Must support the Applicants Schedule NOT just making

things easy for the interviewers.– May require 2nd Shift/Weekend availability for interviews

and tests to support currently employed workers.

– Applicant Leaves with Administrative In Processing Packet and an Assigned Leader who maintains contact.

127

ExampleCandidate Classifications

1. Hire Now: Exceeds All Criteria 2. Hire: Meets All Criteria3. Near Hire: Will meet All Criteria within 30 days with

self-directed development4. Far Hire: Will meet All Criteria within 120-180 days with

self-directed development5. No Hire: Will not meet minimum criteria for at least 6

months 6. Best Athlete 7. Has unique skills outside of current Job Search

Requirements

128

New Teammate OrientationGoal: Create a “world class” first day.

– New Teammate Leaves after first day thinking:• Wow! These guys really know what they are doing.• I’ve talked to the Plant Manager and my Boss.• I understand what we do here and how I fit in.• I know the how to work safely. OSHA Training.

(Plant Focused)• I know what I need to do to be successful in this company.• I have a hard hat and a locker with my name on it.• I know I will get paid.• I know what I need to do tomorrow.• Let’s go to work!

129

World Class 1st DayThursday’s 9:30 AM: Arrive at Plant• Met by Production Manager• Turn HR New Hire Packet to HR Rep • Issued Locker with Name on it• Issued Helmet with Name on it • Digital Picture taken • Issued Equipment • Check Employee provided PPE

9:45 AM: Plant Tour and Safety Training with Production Manager• OSHA Safety Training Checklist Completed and placed in Employee Training File

11:45 AM: Meet Plant Manager • Lunch• Introduction to company and general information about the corporation, history, products,

markets, and facilities• Expose the new employee to Culture, Values, what the company does, how the company makes

money, and where the employee fits in the bigger picture

130

World Class 1st DayThursday’s 1:00 PM: Quality Overview • Plant Tour with Quality Manager• General training on quality• Individual expectations, metrics, quality control, quality process

2:00 PM: Process Overview • Plant Tour with Continuous Improvement Manager; • Walks the Value Stream; Sees the Big Picture• Introduction to Lean Training. • Continuous Improvement Responsibilities

4:00 PM: Administrative Questions and Answers • Verification of In-processing with HR Manager

131

SHIP

CUSTOMER

IDEAL STEEL

Plant 3

WAREHOUSE(CASTINGS

BUSHINGS & BOSSES)

BURN

LIP ASSEMBLY

BRAKEBEVEL BEAMS

LUG TACK

SIDE ASSEMBLYROUNDO

SIDE REINF.

DAYS5

LINE 1

LUG CONNECTION

LINE 2

LUG CONNECTION

LINE 1

TACK

LINE 2

TACK

LINE 1

WELD 1

LINE 2

WELD 1

LINE 1

WELD 2

LINE 2

WELD 2

LINE 1

WELD 3

LINE 2

WELD 3

BORE

ADAPTERS

DAYS5


BOSSES

DAYS10

POINTS

DAYS5


Cycle Time Mins45


Operators Staff1

Cycle Time Mins90


Production shift

Shfts1

Operators Staff1

Cycle Time Mins108



Operators Staff1

Cycle Time Mins108


Cycle Time Mins90


Production shift

Shfts1

MRP


BUCKETS DAYS11

SHROUDS

DAYS5

BUSHINGS

DAYS5

Cycle Time Mins50

Uptime (%) %95

Operators Staff2

Cycle Time Mins45


Cycle Time Mins90



Operators Staff2

Cycle Time Mins45



Operators Staff2

Cycle Time Mins45


Operators Staff2

Production shift Shfts1 Production

shift Shfts1


BARREL

ESCO SALES

FORECAST (30-60-90)

FAX/SALE ORDER


OXOX

FORECAST (30-60-90)

PURCHASE ORDER

FORECAST (30-60-90)


PURCHASE ORDER

Operators Staff1

Operators Staff1


A10

A20

A30

A40

B10 B20 B30 B40 B50

C10 C20 C30 C40 C50

D10

F10 F20 F30

Frequency

PER DAY1

Frequency

PER WEEK1

Frequency

Per Week2

Frequency

Per Week1

Cycle Time Mins90


Production shift

Shfts1

Operators Staff1

Cycle Time Mins90


Production shift

Shfts1

Operators Staff1

Cycle Time Mins90


Production shift

Shfts1

Operators Staff1

Cycle Time Mins108



Operators Staff1

Cycle Time Mins108



Operators Staff1

Cycle Time Mins108



Operators Staff1

Operators Staff1


5.00 DAYS

50.00 Mins

5.00 DAYS

108.00 Mins

0 DAYS

108.00 Mins

0 DAYS

Uptime (%) %98

108.00 Mins

10 DAYS

108.00 Mins

0 DAYS

108.00 Mins

0.50 DAYS

90.00 Mins

5.00 DAYS

45.00 Mins

0 DAYS

WIP

DAYS.5

PLATE STEEL

DAYS5

4

WKS

DAYS

2

DAYS

SHIFTS

9.25

SHIFTS

HRS

60

HRS

Mins

60

MINS

Secs

F40


Develop In-Line Boring Capability




System


System



System



Assembly


Flow Lines

Frequency

Per Week1

WIP

DAYS.5

WIP

DAYS.5

Frequency

PER DAY1

Operators Staff3


WIP

DAYS.5

WIP

DAYS.5

0.50 DAYS

45.00 Mins

TOTALS

Non-Value Days26.00



T10

Shift Shfts11


Buckets Shfts11

Buckets Shfts11






2

Shfts

DAYS

LARGE BUCKETS

Operators Staff2


E10

2nd SHIFT ONLY

Value Stream Map to Tasks to Cell Map

Lips Assemble/ TackLug and

Beam WelderWeld 1 Weld 2 Weld 3

Fit Materials

Welding

Quality Assurance

Use a Ruler

Read Blueprint

Bevel

Operate Brake

Operate Saw

Operate Glibert

Operate Lathe

Burn Table

Operate T1

Operate T2

Tasks

Cells

Value Stream Map

132

Example Common Skills Training

Trainer implements the tailored Individual Development Plan developed at the Interview and Skills Assessment.

Example Learner Based Training Lesson Outline:

1. Production Terms and Language 2. Use of Personal Protective Equipment (PPE)3. Reading Measurements to the 1/16” Detail4. Parts of a Weld and Weld Bead Placement5. Weld Quality6. Blueprints and Weld Symbols7. Welding Equipment/Maintenance; Use of Cranes and Rigging8. Quality Assurance

NOTE: A Web Based Platform so that New Hires can review and pre-train prior to Welding Skills Interview or Training. Can also be used as a post hiring support tool.

133

Example Cell Training

1st JobSkills

Development

Goal: Seamlessly integrate new Hire into the production line and reduce “Time to Competency”

Sequence List:1. New Team Mate meets with 1st Line Supervisors/Cell

Trainers 2. 1st Line Supervisor uses Welder Skills Development

Record to develop Cell Training Program3. Supervisors use 30-60-90 day Feedback System to

assess performance and update skills development record.

4. New Team Mate and 1st Line Supervisor conduct a Goal Alignment session and agree on initial Career Path and Production Skills Training Plan.

134

Management System Goal: Develop Data Driven Systems to

Manage the Process

Features:– Monthly Reports and Management Meetings– Specific Metrics Reported:

• Cycle Time (Responsiveness)• Touch Time (Cost)• In Process Flow• Turnover• Absenteeism

– Measures Head Count to Production– Predictive Measures Focus

135

# Interested 104 97 +7

# of Apps Received 85 81 +4

# of Screened Candidates Scheduled for Test/Interview 65 59 +6

# Tested & Interviewed 58 53 +5

Test

Results

Fully Qualified 7 7 -

Qualified (Less than 2 weeks) 17 17 -

Minimally Qualified (2-4 weeks) 26 22 +4

Unqualified (More than 4 weeks) 8 7 +1

Awaiting Weld Test Results (Bend) 0 0 -

Applicant Flow

Applicant Flow: Page 1 of 2

Dec. 12 Nov. 7 Delta

136

# Failed Interview 13 12 +1

# that Voluntarily Withdrew 9 9 -

# Awaiting Hiring Decision or Offer Pending 0 1 -1

# of Active Applicants 5 6 -1

# Offered and Accepted Employment 34 31 +3

# of Offers Declined or Rescinded 3 3 -

# Started 32 30 +2

# Terminated 7 5 +2

Applicant Flow

Applicant Flow: Page 2 of 2

Dec. 12 Nov. 7 Delta

137

Hiring Cycle Times- All Cycle Times measured in Calendar Days -

Cycle Time Interval Days

Application Date to Test/Interview Date 18.55Test /Interview Date to Offer Date 5.05Offer Date to Acceptance 2.64Acceptance to Start Date 10.50Total Application Date to Start Date 42.41Changes since last Program Review -1.96

138

Hiring Cycle AttritionHiring Cycle Phase # Attrited

Pre-Application 19

App Date to Weld Test 21

Weld Test to Interview 8

Post-Interview 15

Drug Test 0

Offer Declined 2

Post-Hire (In-Training) 7

Total Hiring Cycle Attrition: 72 of 104 Candidates

139

Post-Hire Attrition AnalysisName

Termination Date

Termination Reason Days on the Job

7/25/2005Discharged from Welding Training. Poor work habits

and slow progression given as primary reasons.10

10/4/2005

Unable to complete the Welding School within 7 weeks. Work Ethic was great so we offered him

positions in Assembly/Paint. He refused to work on 2nd Shift and thus was dismissed.

44

8/26/2005Discharged from Welding School. Dismissed for

‘cheating’ on his vertical Weld Test. Employee his test plate flat after receiving warning.

15

8/8/2005Discharged from Welding School. Poor work habits

and slow progression given as primary reasons.11

10/10/2005Unacceptable progress in Welding School and unwillingness to brake old habits. Needs more

experience than our training can provide.11

11/18/2005Discharged for falsifying application with regards to

educational background (HS Graduation).31

12/2/2005Discharged for falsifying application with regards to

educational background (HS Graduation).45

140

Successful Program ResultsMarch 2006/July 2008

– Labor Requirement to 1st Day (Lead Time):• 10.3 weeks / 1 week

– Cost per Hire:• $2,008 / $500

– 1st Year Attrition Rate: • 59% / 6 % • Overall Attrition Rate reduced by 31%

– Production Efficiency: Labor Hours/Bucket• 29.42 / 23.98

141

End StateIf you design and implement a good On

Boarding Program you will put yourself out of the On Boarding business…for all the right

reasons

The best companies recruit continuously, rather than simply to fill openings

Harvard Business School; “The War For Talent”

31% of top-quintile companies strongly agree that theyare always looking for great talent and bring it in whenever they find it,

compared to only 9% at mid quintile companies

142

Production Skills Development“Building the Depth Chart”

How to…Increase Productivity, Control Head Count, and Improve Capacity

143

Or…

If you have $1 dollar to spend…– Hire a new employee.– Invest in your current high

potential employee.

144

To answer this question…

If after my first 10 weeks on the job; I am the best person you have ever hired tell me the story of the next 10 years of my life…

145

Behaviors Transfer

Subject Matter Experts Standardized Work

Training Audience

Training System

Those Who Have the Information

Those Who Need the Information

146

Right Person/Right Job Move the Employee in the Right Direction

High QuantityLow Quality

Qu

anti

ty o

f W

ork

Quality of Work

Low QuantityHigh Quality

Low QuantityLow Quality

High QuantityHigh Quality

New Person

Go To Person

What is our plan to move our people along the correct developmental path?

147

0%

10%

20%

30%

40%

50%

60%

70%

80%

<1year

3-5Years

11-15Years

>20Years

Tenure

Impact of Tenure on EngagementAcross 840,000 Employees

TENURE

% Responding Favorably To

Being Engaged

The Employee Engagement Life Cycle

1. Overwhelmed

Most employees starta new job frightenedat having to learn not

only the content ofthe job but also the corporate culture.

2. Happilychallenged

With in six months, the employee is still being challenged but enjoys

the experience.

3. Smooth sailing

After another six to twelve months, the

employee isconfident in his ability

to handle the job. He stillenjoys the work, but there is not as much

challenge in it anymore, and he is

not learning as much.

4. Bored

It can take three toseven years before

the employee reachesa point at which he

can do the job in his sleep. Now the emp-loyee must actively

begin looking tomove to a new

challenge.

5. Indifferent

Left unchallenged, theemployee becomes unhappy with himselfand therefore unhap-py with the company

at which he is employed.

He won’t care enough about the work to do

it well. But if theemployee finds a new

challenge, the cyclecan begin again.

Seven Years

149

The Depth Chart

Visual Employee Management Tool– Employee Name and Picture– Skills they have demonstrated– Cell they are assigned to and qualified to work in.– Cell they are cross-trained in (Self Motivated Training)– Backed up by Web-Based Tracking System

Insert Ball Depth Chart

151

152

People Focused Training1. Every employee is on a Career Path2. The Career Path is agreed to by the employee and the supervisor

based upon needs of the company, the potential of the individual and the employee desires and aspirations

3. The Career Path drives skills required:a. To Meet required training, certifications, licensing for current job. b. To Improve Productivity on Current Job c. To Meet minimum competency level for Future Jobd. To provide for Employee Driven Self-Development Training and Education

4. Training does not exist unless a Manager creates an “order”5. The Manager then selects the most appropriate delivery method

based upon their specific operational circumstance.6. The Training is delivered via the most resource efficient and

effective method.7. The Training is evaluated and recorded8. The Employee’s Skills Record and Career Path Map is updated.

153

Training Challenges• No silver bullet…Big Problem with a lot of moving parts in a

dynamic business environment• Make Training decisions without real analysis to focus our efforts…

“Good Idea of the Day” approach waste money and our time• The Training Plan must make good business sense • We must be realistic and “eat the elephant” one bite at a time.• We must create a SYSTEM to:

– Demonstrate to our Workforce we CARE about them! (Source: Engagement Assessment)

– Better communicate with our primary clients: the Production Managers– Synchronize and integrate our Training Projects and Programs with the

normal business operations.– Give the Craft Managers predictable yet responsive support

• We must NOT:– Train people who do not need the training– Break the Bank– Disconnect training from the day to day operations of the business and make

it a science fair project production managers minimize

154

Total Distribution by Job Title

12 142 6 9 5 8 13

30

7 9 145 3

5948

2030 35

7663

105

300

156

22 2643

11 10 7 12 196

33 34

8

49

90

0

50

100

150

200

250

300

350

Acct/F

inance

Assem

bly

/Secondary

Indirect -

Mate

rial

Assem

bly

/Secondary

Indirect -

Oth

er

Assem

bly

/Secondary

Indirect -

Assem

bly

/Secondary

Indirect -

Technic

ian

Corp

Adm

in

Corp

Mfg

Corp

Mold

Mfg

Engin

eering

Exec

HR

IT

ME

D Q

ualit

y -

Both

ME

D Q

ualit

y C

OR

PR

AT

E

Mold

Main

tenance

Mold

ing Indirect -

Mate

rials

Mgm

t

Mold

ing Indirect -

Oth

er

Mold

ing Indirect -

Setu

p

Mold

ing Indirect -

Superv

isio

n

Mold

ing Indirect -

Technic

ian

Mold

ing Indirect-

Superv

isio

n

Pro

duction A

ssem

bly

/Secondary

Pro

duction M

old

ing

Qualit

y

Qualit

y A

ssem

bly

Sale

s

Superv

isio

n

Toolin

g C

NC

- D

irect

Toolin

g D

esig

n E

ngin

eering -

Direct

Toolin

g E

DM

- D

irect

Toolin

g F

asT

rack -

Direct

Toolin

g G

rinder

- D

irect

Toolin

g M

ain

tenance -

Indirect

Toolin

g M

isc. -

Indirect

Toolin

g M

old

maker

- D

irect

Toolin

g O

ther

- D

irect

Toolin

g P

olis

her

- D

irect

Adm

in -

Mfg

38 Labor Categories

155

Team Sport: Defining Positions

MachineCustomer Order and Materials

Finished Productsand Satisfied Client

Sales Representative

Material Handler

Process Technician

Machine Operator/Packer

Quality Control

Mold Maker &Maintenance

Press Maintenance Technician

Mold Setter

Assembly Operator

Mold/Part Designer

156

Soft Skills Development

Employee Career

Complex Tasks

Life Cycle Skills Development Program

Basic Skills

Intermediate Skills

Advanced Skills

Initial Entry

Skills Training

I

MentorSkills

V

Competency Level

Experienced Personnel

Employment Skills

Skills Evaluation

BasicTraining

Practical Application/

Coaching Evaluation


Coaching Evaluation


Coaching Evaluation

III

II

IntermediateTraining

AdvancedTraining

IV

Pre-Employment

“A Guide”

157

Aircraft Mechanic 1367

A/C MECHANIC 1367

Avionics/ Electronics 441

AAE&I TECH 192

AE&I MECH 249

Sheet Metal 114

A/C STRUC MECH 114

Armament 85

A/C ARMAMENT TECH 85

Technical Inspection 213

A/C TECHNICAL/ NDT INSPEC 213

Test Pilot 89

MAINT TEST PILOT 89

Maintenance Support 513

A/C COMPONENT PLATER 1

A/C REFININSHING SPEC 20

A/C SCHEDULER 12

A/C WELDER 5

AMSS ACFT ENG SHOP MECH 25

AMSS ACFT HYD SHOP MECH 10

AVIATION LIFE SUPPORT EQUIP TECH 37

COMPONENT CLEANER 8

ELECTRONIC INSTRUMENT TECH 5

FABRIC AND UPHOLSTERY TECH 1

MACHINIST 13

MATERIAL CLERK 34

MATERIAL INSPECTOR 3

MATERIAL SPECIALIST 166

P/C SPEC - ATTC 2

P/C CLERK 58

Other Support 137

A/C MONITOR 17

ACCOUNTING SPEC 6

ADMIN SPEC 21

COMPUTER OPERATOR 3

F AND M SPECIALIST 30

FLIGHT OPS SPEC 8

JANITOR 35

MESSENGER 1

PERSONNEL SPEC 8

PLANT AND FACILITIES MECH 2

PROGRAMMER 6

Maintenance Support (Cont.)

PAINT, FABRIC & UPHOL MECH 1

QDR TECH 10

RECORDS SPEC 47

SERVICE ATTENDANT 33

TECH PUBS TECH 14

TEST CELL TECH 3

WEIGHT AND BALANCE TECH 4

X RAY TECH 1

Labor Categories

Career Map

Planning

J/M 3Basic IMS TrainingBasic ManpowerBasic Budget SkillsBasic Scheduling SkillsBasic EstimatingFirst Line Leadership TrainingOSHA 30 HourBasic Computer Skills –

Admin SkillsManpowerBudget SkillsSchedulingEstimating Skills

Contracts

J/M 1

Purchasing

PeopleSkills Improver

Helper

Ship Superintendent

F/M

L/M

Snapper

J/M 3

J/M 4

J/M 5

J/M 2

IMS/IDR

L/M

J/M 5Estimating

MaterialE-mailShop FabTime KeepingIMS

J/M 2Developing Computer SkillsMotivatedShows LeadershipSkills

159

Skill Paths1. Aircraft Mechanic2. Avionics/Electronics3. Sheet Metal4. Armament Mechanic5. Technical Inspection6. Test Pilot7. Maintenance Support

a. AMSS (Hydraulics, Machinist, etc.)b. Specialized Mechanicsc. Records Clerks/Production Controld. Supply and Logistics

8. Other Supporta. Human Resourcesb. Information Technologyc. Financed. Administratione. Environment Health and Servicesf. Trainingg. Facility Support (Monitors, Service Attendants, Janitors)

42 Labor Categories

8 Skill Paths

160

Training Program Overview

Skill Paths

1. Mechanic

2. Assembly

3. Sheet Metal

4. Material Handler

5. Technical Inspection

6. Maintenance

7. Production Control

Common SkillsTraining

What every employee needs to know

CellTraining

Skills to do 1st Job

Intermediate SkillsTraining

Skills to do second and third job

Employee Skill Path

Lead/Advanced Skills Training

Skills to Teach Others the Job

Master MechanicMentor

Tech Specialist

Hiri

ng

On

Bo

ard

ing

Labor Requirement

Production Projected Hiring ForecastIndependent Variables

Assumes 800 person production workforce

161

2008 2013 2018 2023

Core Start 844 (2006) 535 (2008) 353 (2013) 233 (2018)

(Core Attrition & +65)

309 182 120 79

Core End 535 353 233 153

# Required 800 800 800 800

New HiresRequired

NA 447 (90) 567(113) 647 (130)

(New Hire 1st Attrition %)

53% 53% 53% 53%

New Hires Forecast

403(Actual)

684 (140) 744 (149) 980 (196)

50%

Risk RatingsTERM RANK % TERM RANK

LEADER CURVE

LDR % AGEOVERAL %

AGETOTAL SCORE

Paint 5 5 2 2 1 14

Machinist 5 2 2 2 1 11

Rigging 5 3 1 1 1 10

Shipfitting/ Welding

5 5 2 2 1 14

Pipe 5 3 1 1 1 10

Electrical 5 3 1 1 1 10

Carpentry 2 2 2 2 1 8

Crane 2 1 2 2 1 7

Sheet Metal 5 5 2 2 1 14

162

1. Term Rank: 5 if >= 50+ Total Terminations since 2006; 4 if >= 40 Terminations; etc.2. % Term: 5 if >= if Avg Termination is >= 50% of Dept Population; 4 if >= 40%; etc.3. Ldrs Curve: 1=Good to 5=Ugly; Good opinion leader population shows both young leaders/ high experience4. Ldr % Age: 5 if Leader 5-yr Retirement Risk % is >15% and 10-yr >40%; 4 if 5-yr>10% & 10-yr > 30%5. Overall % Age: 5 if Overall 5-yr Retirement Risk % is >15% and 10-yr >40%; 4 if 5-yr>10% & 10-yr > 30%

Crafts Critical to Future & Labor Risk Assessment

CraftRisk

Rating Best At Now?

Worst At Now?

Critical to Future

Priority

Carp/Insul 8 X

Crane 9

Electric 7 X

Machine 4 X X High

Paint 3

Pipe 6 X X High

Riggers 5

Sheetmetal 1 X X Highest

Shipfitting/Welding

2 X X Highest

163

Training Program Policies

1. Leaders are responsible for the training of their subordinates.2. Training programs must be based on the tempo of operations and the

resources available to train. 3. The majority of the training must occur on the job in conjunction with

production work. 4. Lengthy training events taking the employee away from the worksite

cannot be considered.5. Required Training must be done as efficiently as possible6. Leverage Federal and State resources for maximum effect7. The Training Support organization must provide our production leaders

with workers who understand what we do, why we do it, how they fit, and with the common skills required to reduce their time to competency

8. Training Management is a complex management task which ties Training to the Business Needs

164

A good Training Program improves Team Stability: Stable Teams attain and maintain High Performance.

Training Program Components

165

Administration Delivery Content Technology

•Strategic Planning•Registration Services•Scheduling•Finances/Billing•Assessment/Testing•Program Mgt•Client Relationship

•Instruction•Classroom Support•Instructor•Real Estate/Facilities•Feedback

•Instructional Design•Content•Graphics Design•Material Fulfillment•Portfolio•Content Refreshment

•LMS/LCMS Mgmt•Delivery Platform•Authoring Systems•Computers

AdminAdmin

TechnologyTechnology

DeliveryDelivery ContentContent

166

Effort vs. Competency in Learning• “I know” skill:

– Exchange of Information (Electronic Performance Support Modules)

• “I can do” skill: – Scenario Based Performance Focused Facilitated Learning Events

– Skills transfer from Master to Novice

– Subject Matter Experts observe and validate competency (Coaching)

• “I can adopt and apply” skill:– The actual performance requirement

– Linked to Skills Based Performance Assessments

– Embedded in Leader to Led Daily Interactions (Teachable Moments)

167

Summary1. Training is NOT about INDIVIDUAL CHOICE. We Care! 2. Job Performance and Training are Seamless3. Train on the Same Equipment, with the Same People, Under the

Same Conditions, to the Same Standard on the Job Site4. Reduce Time and Effort Between Subject Matter Experts and Users 5. Get the Most Value from Training/Education Dollars; Training Waste

is Training People on a topic they do not need to know or already know.

6. People drive Skills Based Requirements NOT Subject Matter

You can be perfectly trained and absolutely unproductive!

168

The Leader Development Challenge

“Playing to Win!”

169

If People are Hard! Leaders are Harder!!

• Everyone is at a different place developmentally

• Everyone must take responsibility for their own Development; It is a High Performance Behavior

• The Trick is to make Leader’s better at what they are good at as opposed to making them something they are not.

• Leaders are Chess Pieces Not Checkers! Each one has different goals, different potential, move differently, and has unique talents. (Buckingham)

• Bell Curves are unacceptable

170

Agenda• Improving Current Leader Performance• Building Future Leaders

171

Leader Development Program

Current State

• Leader Development conducted informally or not at all.

• Usually best operators promoted to Supervisors

• Experience gained over time• Many training courses available

but not mapped to critical tasks.• Undocumented program that is

dependent on individual Management implementation

• On the Job Training is ad hoc with few Training Materials available on the Job Site.

Perfect State

• Systematic Approach to Leader Development

• Manager’s are Responsible as the Primary Trainers of their Supervisors

• Manager’s are responsible to tailor skill development to each individual supervisor and each operational area.

• Leader Development Programs mapped directly to Performance Review System

172

Developmental Plans• Everyone has them!

• Consider education, experience, training

• Aligns Team Mate potential with organizational needs

• Focused on the Mission Essential Tasks derived directly from the Value Stream Map

• Provides measurable outcomes to monitor individual progress.

• Are the “White Space” between Performance Reviews

• Drive Training and Development budgeting and resources requirements based upon People NOT Program Focus

173

Organizational Goals– Cost– Schedule– Quality– Safety

Individual Goals– Compensation– Opportunities– Responsibility– Work

Environment– Recognition

Communication

Leader Led

AwarenessGoal

Alignment

Individual Development

Plans


Plans


Plans

ResourcesRequired

Performance Reviews

LedLedLed

Goal Alignment System

174174

Mission Essential Task List (METL) Matrix

MISSION ESSENTIAL TASKS Chief CS GS/COS PRM PM

MAINTAINS SITUATIONAL AWARENESS X X X X X

COMMUNICATES X X X X X

COMMITTED TO SUCCESS X X X X X

LEADS X X X X X

TECHNICAL COMPETENCE X X

USES THE COMPUTER X

MATCHES PEOPLE TO JOBS X

DOES JOBS RIGHT THE FIRST TIME X

SOLVES TODAYS PROBLEMS X X

PLANS X X

DEVELOPS SUBORDINATES X X X

CONDUCTS ANALYSIS X

REMOVES BARRIERS X X X

SYNCHRONIZES OPERATIONS X X

BUILDS TEAMS X

STRATEGIC PLANNING X174

175

Behavior Focus

• Skills and Attitudes are extremely difficult to describe, measure, or observe.

• Behaviors are observable actions that can be replicated.

• We KNOW how the Best Performers Behave!

• Behaviors change Leads Culture change!

176

Defining METL Based Behaviors

1. Go find the High Performers2. Find out what they do and don’t do everyday3. Write it down 4. Agree on the Mission Essential Tasks and High

Performance Behaviors5. Ensure Alignment with Business Goals and Value Stream

177

High Performing Leaders act like…

178

ObservableHigh Performance Behavior

ExampleDevelops Subordinates• Recognizes Teachable moments: Constantly stopping and

talking to subordinates with tips and best practices• When asks who is responsible for the training of their

people says “Me!”• Realizes the “best training” occurs on the job when highly

skilled people work with less skilled people: Matches novices with experts by design

• Uses normal work flow as training opportunities• Has scheduled and record of formal counseling/feedback

sessions with subordinates outside of normal job interface• Knows the Leadership Pipeline - their replacement; future

leaders

179

Observable BehaviorExample

Technically Competent:

– High: 9/10 times when asked a question gives the right answer immediately and work continues.

– Developmental: 5/10 times gives the right answer and tells the person they will get back with them with the right answer causing waste.

– Dysfunctional: Gives the person the wrong answer causing positive harm to the organization.

180

Program Objective Move Employee to the Left

Task

TechnicalCompetence

When asked a question are able to give the correct answer 90% allowing work to continue

When asked a question answer correctly 50% and will get the right answer to the person as soon as possible. Still causes work slow down

Ignore, guess or give the wrong answer to get rid of the questioner.

HIGH:All Leaders should be High Performing and displaying the behavior traits in this column. Developmental Plan to focus on sustaining performance

DEVELOPMENTAL Leaders displaying the behavior traits in this column should be involved in a defined developmental plan. Focus on moving them to the left

DYSFUNCTIONALAll Managers displaying the behavior traits in this column are creating harm in the organization. Behavior needs to be changed ASAP or the manager needs to leave.

181

High Performer 1st Line Supervisor

Mission Essential Tasks

1. Demonstrates Leadership 2. Understands Manufacturing Process 3. Seeks Continuous Improvement 4. Plans Work 5. Communicates up the Chain 6. Communicates to Subordinates 7. Builds Teams 8. Technically Competent 9. Uses Technology 10. Develops Crew

See Hand Out

182

Initial Assessment Reassessment

Send to Established

Training Course

Knows How to do the task – needs On the Job Help

Does Not Know How to do the Task

Knows the Job but has

trouble “putting it all Together”

Knows their area but needs

Focused Leadership

Task Coach – High Performing

Supervisor/ Manager

Task Coach – High Performing

Support Staff

Spend the Day with High

Performing Supervisor at their Job Site

Daily Reinforcement by

Leader

ID Support Shadowing Opportunity

Leader Developmental Strategy Matrix

Not Required

183

What is the #1 Barrier to Productivity?

1. Inefficient planning of the work.2. Organization Structure does not support work flow.3. Poor leadership in demonstrating and leading

change.

Effect: 28.8% of Total Labor is Waste as a result of management or leader issues.

Or 33.5 days per Full Time Equivalent

HR Magazine September 2006

184

Managers or

First Line Supervisor

Who is First?

Get the Managers on the right page first, then have them

develop the First Line Supervisors

185

Opportunity for Improvement

• “8 for 8”

• How many productive hours are you getting from your production worker for every 8 hours paid?

High Performers have no idea how good they can be…and are

personally dedicated to their personal journey.

186

187

Bench Strength is Working the Blue Lines

Operations Manager

Current Shift Supervisor – Future Operations Manager

Current Shift Supervisor – Current Job

Current 1st Line Supervisor – Future Shift Supervisor

Current 1st Line Supervisor – Current Job

Current “Go To” Operator – Future 1st Line Supervisor

Dept 205 Leader Benchstrength Forecast

FM LMJM(SF)

3,4,5JM(W)3,4,5

2009 ACTUAL 15 24 26 22

2009 – 2013 DEPARTURES(age, 3 yr attrite avg, etc.)

6 17 20 20

2013 REMAINDER 9 7 6 2

2013 REQ 18 24 26 22

PROMOTION -- 4 1 2

NEW FORECAST 9 13 21 22

POOL (FORECAST X2) 18 26 42 44

CURRENT POOL 4 3 19 (JM1/2) 12 (JM1/2)

CANDIDATES FOR POOLCURRENTLY NOT AVAILABLE

14 23 23 32

Source: August 2009 205 WFRA

189

Building Future Leaders

Developing Bench Strength

Goal: Leaders First Day is a Performance Day not a let’s

see how it goes day

190

191

Transition Acceleration

Current Job Future Job

TimeQuality

Level of EffortCost

Current State: How long from assignment to competency?

192

Leader Lead Time

• Example Goal: Ensure Leaders come to competency with 4 weeks of 1st Day on the Job.

• Factors:– Hiring Cycle Time: Job Requisition to 1st Day– Skills Requirements– Minimum Training Requirement– Coach/Mentor Availability– Hourly Labor Hiring– Job Flow/Production Schedule– Team Dynamics

193

Leadership Pipelines

1. Former Leaders

2. Transfers with Area Experience

3. Transfers without Area Experience

4. Pre-identified Emerging Potential Leaders (Succession Plan)

5. High Performing Mechanics/Employees

6. Product of the Hiring Process (Announcing Position, etc.)

Each Pipeline has a different mean Lead Time

194

Developmental Phases

1. Do the right things2. Do the right things right

3. Do the right things better, faster and more effectively4. Are we doing the right things? Re-defining the right things 5. Prepare for next career path position

It is our Choice on when to place the New Leaders 1st Work Day…

} Prior to 1st Day on Job

195

“Bull Pen” “Warm Up” “Throwing Ks”

“I Know” “I Can Do” “I Can Apply”

Competency Check

START: Individual Development Plan

• Required Common Training Courses

• Designated Training Courses depending on assignment

• Orientation to AOR• Work with High

Performer NOT in assigned area

• Assigned to Manager • Coach performs 1st Skill

Assessment• Orientation to Work Flow

in 1st 30 days• Orientation to Job Site

and Support Activities (PC, Planning, etc.)

• Rehearses 1st Day and Chalk Talks 1st Week with Manager and Coach

• KEY EVENT:Leader First Day with

Crew in Charge!• 90 Day Coaching Event• 30-60-90 Day Skills

Assessment (Coach, Self, Manager)

• Integrated with Performance Review Process

Normal Developmental

Process

Competency Check

New Leader On Boarding Program OVERVIEW

Gaining Manager Involvement

196

1st Day Preparation “Warm Up”1. Task: Plan Work – Conduct an analysis of the current jobs; current “checkbook” and

schedule status; and who is working the jobs;– Warm Up Event: Works with Coach to “catch the bubble”, develops Work Plan, develop “Hot

Jobs” List– Supporting Tasks: Understand Work Packages, Network with Key Players, Technically

Competent– 1st Day Event: Issue Job Assignment for each mechanic at Start Up.

2. Task: Lead by Example – Conduct 1st Day Start up Briefing with Crew; communicate personal style, establish ground rules, and goals.

– Warm Up Event: Prepares first day speech and rehearses it with the Coach.– Supporting Tasks: Live the Values of the Company; Demonstrate Ownership of Work (Quality),

Understand Union Contract, Gives Clear Direction to Subordinates.– 1st Day Event: Give 10 minute Start Up Briefing to entire crew.

3. Task: Job Assignment (Match Jobs to People) – Conduct 1 on 1 assignment sessions with every mechanic on crew

– Warm Up Event: Coach creates “role playing scenario” with own crew and rehearses/observes 1 on 1 session and provides feedback.

– Supporting Tasks: Crew Development and Performance and Set Expectations and Provide Feedback (Pulls available personnel data and personal background information on entire crew prior to first day.)

– 1st Day Event: Interact 1 on 1 with every mechanic on crew during first day to Assign Jobs, Set Expectations and Provide Feedback.

197

1st Day Preparation “Warm Up”4. Task: Network with Key Players – Interface with Planning and PC

– Warm Up Event: Coordinates/pre-briefs 1st Week Work Plan with Planning and PC under the direction of the Coach.

– Supporting Tasks: Innovate, Understand Work Packages, Communicate Laterally, Network with Key Players, Technically Competent, Understand the Manufacturing Process

– 1st Day Event: Before end of 1st Day update Key Players on “Hot Jobs” List

5. Task: Communicate Up the Chain – Pre-Brief Supervisor prior to 1st Day and Out-Brief at end of day.

– Warm Up Event: Meet with Supervisor to receive Supervisor guidance and direction with Coach. Conduct and analysis and back-brief Supervisor on 1st Day Plan.

– Supporting Tasks: None – 1st Day Event: At end of first day report progress to Supervisor.

6. Task: Administer Time and Accounting System – Pay crew– Warm Up Event: Pay Coaches Crew– Supporting Tasks: Use the Computer– 1st Day Event: Successfully Pay Crew

7. Task: Job Assignment and Give Clear Directions to Subordinates, Setting Expectations

– Warm Up Event: Complete focused Training and practice preparing Job Assignment Sheets– Supporting Tasks: Give Clear Directions to Subordinates– 1st Day Event: Issue Job Assignments and have a face-to-face conversation at the job about

setting goals and stretch goals.

198

1st Day Preparation “Warm Up”

8. Task: Understands How to Train– Warm Up Event: Work with expert Coach on how to identifying teachable moments

within the crew and understanding how to coach his/her crew to improve individual and crew performance

– Supporting Tasks: Crew Development and Performance– 1st Day Event: Within 1st week conduct a goal alignment session with each hourly and

then prepare an individual training plan.

9. Task: Crew Development and Performance – Preview/Prepare Hourly Annual Performance Feedback Form

– Warm Up Event: MPL/Foreman will go over the Hourly Performance Feedback Form – Supporting Tasks: Lead By Example, Network With Key Players, MOS Feedback– Prior to first day Foreman will contact SER and review employees attendance record – 1st Day Event: Within 1st Week go over the Hourly Performance Feedback

form individually with each employee and discuss expectations

Do you Trust Your Leaders?

199

Have you empowered them with the biggest decision you will ever make about them...

Who they work for and

Who works for them?

200

201

“Whew”

202

What group represents the biggest risk for the future of your business?

(Rank Order with 1 the Highest Priority)

__ Hourly Workforce__ 1st Line Supervisors__ Plant Middle Management__ Plant Managers__ Executive Staff__ Administrative Support staff__ Temporary Workforce

203

Which part of the People Life Cycle requires the most urgent attention?

(Rank Order with 1 the Highest Priority)

__ Organizational Scheme

__ On Boarding (e.g. Acquiring New Employees)

__ Incumbent Production Workforce

__ Line Supervisors Performance Improvement

__ Building Future Leader Benchstrength

__ Executive Leader Development

Workshops

• On Boarding New Teammates

• 1st Line Leader METL to Behaviors

204

205

Lunch and

Networking

Jacksonville Sheriffs OfficeBest Practice Presentation

206

207

Break

Workshops

• On Boarding New Teammates

• Heartbeat Leaders METL to Behaviors

208

209

On BoardingPractical Exercise

Tell me about the best person you have hired this year…

& Where did you find them or how did they

find you?

Take a Blue Slip

210

On BoardingPractical Exercise

What does every new Teammate need to know about your Team to be a High

Performer

Take a Blue Slip

211

Heartbeat Leaders METL to BehaviorsPractical Exercise

Tell me about the best 1st Line Leader you know…

What do they do everyday that makes them so good at their job?

Take a Blue Slip

212

Practical Exercise

What do your 1st Line Supervisors need to know how to do to be successful on their 1st Day…

Walk through a normal day and what do you see?

Take a Blue Slip

213

Heartbeat Leaders METL to BehaviorsPractical Exercise

Best Day DescriptionMust Do Task

Behaviors Development

Take a Blue Slip

Working GroupReport Outs

214

215

Hypothesis

If we transform our current Leaders into Lean Leaders with new responsibilities and behaviors;

we will eliminate waste and improve business performance measured in “line of sight” savings.

Outcome Metric:

WASTE Identification and Elimination

Process Metric:

Improving Leader Behaviors

216

1st Line Supervisors“We have Leaders who are busier than ever but

don’t seem to be making any progress.”

Expected Outcomes:• Increase our leader's ability to solve more day-to-day

problems correctly the first time.• Increasing our capacity to identify and eliminate Day-to-

Day Waste.• Increasing our capability to identify and eliminate

Systemic Waste to reduce the number of day-to-day problems.

217

Common Current State Issues• Operational Responsibilities have exploded yet no clear

articulation of those roles and responsibilities• Leader’s can’t see the process through the data haze• Lots of stick if you mess up the data; very little carrot to

be out in the patch• Cultural bias for solving today’s problems right now – not

necessarily in priority order based upon biggest bang.• “5 Year Old Soccer” Crisis Management Culture creating

waste in the Leadership Bandwidth

218

Lean LeaderMission Essential Tasks

1. Knows their Process2. Knows their Customers and Suppliers (SIPOC)3. Identifies Day to Day and Systemic Waste4. Prioritization5. Eliminates Waste & Improves Business

Performance6. Engages Team Mates

219

Performance Excellence SystemStrategic Objectives

1. Lower our costs and improve efficiency2. Create a cultural shift resulting in an aligned and engaged team

focused on providing value to our customer3. Improve Customer Satisfaction4. Gain the Senior Executive’s confidence in our system of calculating

savingsa. How much did we save?b. How do we know?c. Where did the savings go? (Your pocket or mine?)

5. Use the good news and cost savings in proposals, support business development, and validate the Performance Excellence Program investment.

220

Define

Measure

Analyze

Improve

Control

We are using the Navy System!

PE Program Management Process& Training Strategy

(Start One per Quarter)

ID Opportunity for Waste

Elimination

ID Champion& Process Owner

ID Target Availability

Send Champion, Process Owner &

Supt. To Champions Training

Draft Project Charter with Team

Greenbelts

Team Greenbelts Develop Plan of

Action and Milestones (POA&M)

Send Team Co-Leads to Greenbelt

Training

Executive Review Board Approves

Charter & POA&M

Greenbelts with Team

Execute POA&M

Facilitate Sub-Projects; Events &

Just-Do-Its

Greenbelts Give Weekly Updates and

Take Fives toWorkforce (Creating

Whitebelts)

Implement Action Plan(s) for

Improvement Initiatives

{Monthly PRs}

Brief Results and Return on

Investment (ROI)Analysis

Effective Participants Certified as Yellowbelts

Certify Greenbelts

221

222

Performance Excellence System Organization

TrainingWho gets trained,

when, to what standard, by whom, with what resourcesResources: Trainers

and Curriculum

ProjectsWhat projects should

we do, how many at a time, scope, and implementation plan

complexity.Resources: Facilitators

Analysis and Metrics“Dollarizing” results, Six Sigma Analysis,Proposal and Award Fee Board Support.

Resources: Dataand Cost Analysis

PE Office PMDevelops Strategy &

Annual POA&MSynchronized with

Annual Business Plan Development

• Provide data and voice of customer inputs to VSA,RIE and Projects.

• Apply concepts to their own jobs

and work areas.

Owns vision, direction, integration, business results

Leads change

Project owner Implements solutions Owns financial results Part time as part of job Develops Project Charter

Participate on Black Belt teams and/or lead projects

Part time on projects

Provide project-specific support Can be Yellow or Green Belt and includes Financial

Representation Part time on projects

Lead organizational performance improvement

Prioritize projects Full time assignment

DeploymentDeploymentChampionsChampionsProjectProject

Sponsors / Value Sponsors / Value Stream ChampionsStream Champions

Project TeamProject TeamMembersMembers

ExecutiveExecutiveLeadershipLeadership

Green BeltsGreen Belts

Train Black Belts/Green Belts Coach Black Belts/Green Belts Lead Complex/Large projects Full-time position

MasterMasterBlack BeltsBlack Belts

Execute CPI projects Train and coach Project Teams Full-time assignment

Black BeltsBlack Belts

Enables successful deployment / execution Develops and reports metrics Coordinates training Leads change management and internal / external cross-communication

All Employees

CPI CPI Core TeamCore Team

CPI Deployment Roles

224

Let’s Wrap It Up

2002 Excellence in Practice Citation - Workplace Learning and Development Category Partner: Northrop Grumman Newport News Shipyard (Newport News, Virginia) Practice: Modernized Welding School

2003 Excellence in Practice Citation - Electronic Learning Technologies Category Partner: Northrop Grumman Newport News Shipyard (Newport News, Virginia) Practice: Production Trades Training Program

2004 Excellence in Practice Citation - Workplace Learning and Development Partner: Northrop Grumman Newport News Shipyard (Newport News, Virginia) Practice: Win! Win! Big Win! Building Pipelines from the Community to the Workforce

2006 Excellence in Practice AWARD - Performance Improvement CategoryPartner: ESCO Engineered Products (Covington, Kentucky)Practice: People Powered Lean

2008 Excellence in Practice Citation – Performance Improvement CategoryPartner: Ball Metal (Williamsburg, VA)Practice: Leading to Win!

2009 Excellence in Practice AWARD – Performance Improvement CategoryPartner: Ball Metal (Williamsburg, VA)Practice: Leading to Win!

225

First Things First

TeamStability

Trust Continuous

Improvement

Increasing Business Performance

226

Business Operations will always induce variability:- Customer Demands, Suppliers, or Shareholders

227

The Bottom Line…• To Win and Win Big is the Business of People.

You must play the game.• To play you must know the rules.• Understanding and applying ROI Evaluation

Analysis is a core skill to play the game.• Skills, Knowledge, and a detailed Plan =

Courage to ACT• Turf, Ego, and Money and at the end of the

day…

228

Golden Rule of Leadership

Treat your subordinates how you would like to be treated.

…1 at a time!

they

229

The Organization Takes on the Personality of it’s Leaders!

Culture

230

Closing“I can’t control what they do on the field but I

can control who does it…”

Joe Gibbs, Washington Redskins

“…And never give that away”

Joe Barto

231

Let’s Talk…

232

Review “What you wanted to Learn”

Blue Slips

Who Before What

233

In Appreciation of the Brave Men and Women

Who Serve Our Nation

235

Thanks… and Good Luck!

Back Up

236

237

Production Schedule

Assigning Work to Crew in Discrete Increments and Measuring Goal Accomplishment

LeaderAssigning

Jobs &Approving

Time

Core Daily Business ActivityConstruction & Repair

238

Building Pre-fab material

GFMModify specification templates to match

the work

Identify what is internal and what is outsourced 60/40

In house specification

review

QA specification

review

Specification review with

govt

50%, 80%, 100% lock

Submit pricing to Gov't at

80%, 100%

Schedule AIT, MAR MC work

Negotiate with government

Definitize price and publish

internal budget

Manpower projections

Adjust subcontractor /outsourcing

Write purchase orders for

subcontractors

Bring on Hourly subcontractors

Specifications and budget printed and

distributed

Dollar is set

Receipt of funds

Navy Prioritizes work list.

Material control orders some

material

Purchase Materials

On site maintenance team provides advanced

info. Ship check

Ship Check

Develop scope of work and specifications from

AWR

Receive description of work (AWR)

Pre-fab material available

Raw material available

GFM Available

Plan Execution

Material is ordered Conex boxes filled with all the material

for job spotted

Craft Supervisor assigns work to

Leads

Leads assign work to crews

Begin work on items per plan

STOPMaterial and equipment Removal

Repair in shop

Repairs on ship, Reinstalls on ships, and installs on ship

Checkpoints Process Control

Item close outs

TestingCost

MonitoringFinal Close

OutsShip leaves

yard

Condition Reports

Open and inspect reports

Planning and scheduling

emerging work

Monitor the schedule during

execution

Progress Work

Weekly progress report

with Navy

Weekend work schedule meeting

Man according to budget

Meeting with ships force on plan of the day

Shipforce, AITs, MAR MC, does

repairs

Arrival conference

Test and Inspection Plan Development

Adjust manpower projections

weekly

WPER /WPET

Downriver temp systems, materials

put on ship

WAF Scheduling/ Coordination

Ship Arrival

Support Services Ready

Owner: ContractsSupport: None

Owner: PlanningSupport: Trades


Owner: ProgramsSupport: Planning, Trades

Owner: PlanningSupport: Programs, Trades



Owner: PlanningSupport: Trades, Programs, Contracts

Owner: TradesSupport: Programs, Planning

Owner: PlanningSupport: Programs


Owner: PlanningSupport: Programs, Trades, Contracts

Owner: QASupport: Planning

Owner: ContractsSupport: Planning, Programs

Owner: Planning

Owner: PlanningSupport: Contracts

Owner: PlanningSupport: Contracts, Program, Trades

Owner: Contracts Owner: ContractsSupport: Programs


Owner: ProgramsSupport: Contracts, Planning

Owner: ProgramsOwner: TradesSupport: Programs

Owner: PlanningSupport: Trades, Programs



Owner: PlanningSupport: Trades, Programs Owner: Trades

Support: Planning

All Hands Owner: TradesSupport: Programs


Owner: TradesSupport: Programs

Owner: TradesSupport: Planning, Programs

Owner: TradesSupport: Planning

Owner: TradesSupport: Planning




Owner: ProgramsSupport: Trades






Owner: Trades, Programs Owner: Trades, ProgramsOwner: Trades, Programs


Owner: Trades, ProgramsOwner: Trades, Programs Owner: Trades, Programs

Support: Planning

Owner: Trades, ProgramsSupport: Planning

Owner: Trades, Programs Owner: Programs

Support: Planning, Trades Owner: ProgramsSupport: Planning, Trades

All Hands

Owner: PlanningSupport: Programs


Owner: PlanningSupport: Contracts

All Hands


Owner: PlanningSupport: Contracts, Program, Trades



Responsibility

Contracts Planning Programs Trades Material Control

Internal planning meeting

Complete Planning

Complete the schedule

Aligning the Organization to the Value Stream

239

FabricationFabrication ProgramsProgramsDirector of Fabrication

Craft Manager

Craft Supervisor

Craft Foreperson

Craft Leadperson

Journeyman

Improver

Production Laborer

CS

CM

FP

IP

PL

DF

CM CM

CSCS

FP FP

JM SNP

Help

LPLP LP

Help HSHelper Hourly Sub

Snapper

Director Cost Business I

Program Manager

Superintendent

Lead/Senior Lead Superintendent

PM

S

DCB

PM PM

S S

SubSub

LSLS SLS

Subcontractor/ Teaming Partner

Breaking It Down

240


Craft Manager

Craft Supervisor

Craft Foreperson

Craft Leadperson

Journeyman

Improver

Production Laborer

CS

CM

FP

IP

PL

DF

CM CM

CSCS

FP FP

JM SNP

Help

LPLP LP


Snapper


Program Manager

Superintendent


PM

S

DCB

PM PM

S S

SubSub

LSLS SLS


PROGRAM

HULL ITEMS

ITEM

Craft ItemPiece

HOURS

When Changes Occur…

241


Craft Manager

Craft Supervisor

Craft Foreperson

Craft Leadperson

Journeyman

Improver

Production Laborer

CS

CM

FP

IP

PL

DF

CM CM

CSCS

FP FP

JM SNP

Help

LPLP LP


Snapper


Program Manager


PM

S

DCB

PM PM

S S

SubSub

LSLS SLS


A Culture of Heroic Efforts!!!

A Culture of Heroic Efforts!!!

ITEM

HOURS

Craft ItemPiece

HULL ITEMS

PROGRAM

Unscheduled/ Unplanned Events

Training Plan and BudgetExamples/Format

Purpose or Link to

Problem, Goal, or

Issue

Training Audience

Proposed Course

Delivery Method

Course Length

Exists, Develops Internally,

or BuyBudget Owner

Aluminum Weld Re- Work

35 QA Inspectors

Navy, SubK, BAE

SR

5XXX Inspection Standards

WBT 3 hours Develop $45K Training Dept

Aluminum Weld Re-

Work30 Welders Refresher

Training ILT 1on1 8 hours Exists $15K Dept 205

Required by BAE to

Reduce Corporate Business

Risk

500 New Employees

1,000 Annual

Refreshers

Corp Directed Ethics

Training

ILT for New Employees

1st Time

WBT for Annual

Refresher

ILT:

1 hr

WBT:

.5 hrs

Exists

New hire: $6K

Refresher:

$3K

New hire: HR

Refresher:

Leaders

1/12/2010

“BUSINESS SENSITIVE”

242

How do you know?

Good or Bad Culture

243

Culture Indicators

• Engagement Levels• High Performer Attrition• Transparency• Participating or Competing• The Way People Interact… what happened or

what do we do now?• Winning or Losing• Heroic Efforts or Quite Confidence

244

So what…

Can you control Culture?

245

First Things First

TeamStability

Trust Continuous

Improvement

Increasing Business Performance

246

Business Operations will always induce variability:- Customer Demands, Suppliers, or Shareholders

Leader Behaviors

1 2

249

Calculating “Leader Bench Strength”-Used in Crew Comparison Analysis-

• Tallied the Tasks in which the individual was rated “High Performing” in their Q2 2009 leader assessments (Crew Supervisors, Chief Maintainers, Lead Palletizers, Substitutes)

• Assigned score according to the following scale: 4=7or8; 3=5or6; 2=3or4; 1=0to2• Calculated a separate average for the Crew Supervisor, the Chief Maintainers/Lead Palletizers,

and the Substitute Leaders from each crew to get a combined Leader Bench Score for each Crew.• Example: CS = 4.00, CM/LP Avg. = 3.40, Subs Avg.= 3.00, Leader Bench Strength Score = 3.47

34

1

2

3

4

Employee Engagement

2009 Analysis and Annual Comparison

251

Crew Engagement by Question

QUESTION CODE A Crew B Crew C Crew D Crew

Q1 - EXPECTATIONS 3.60 3.80 3.60 3.50

Q2 – MATERIALS & EQUIPMENT 3.33 3.40 3.40 3.12

Q3 – DO WHAT I DO BEST 3.40 3.20 3.12 3.33

Q4 – RECOGNITION AND PRAISE 2.90 3.00 2.90 2.40

Q5 – SOMEONE CARES ABOUT ME 3.20 3.20 3.33 2.90

Q6 – ENCOURAGES DEVELOPMENT 3.00 3.33 3.12 2.90

Q7 – OPINIONS COUNT 3.00 3.00 2.90 2.60

Q8 – COMPANY MISSION OR PURPOSE 3.12 3.40 3.40 3.20

Q9 – COMMITTED TO QUALITY WORK 3.12 3.33 3.00 3.20

Q10 – BEST FRIEND AT WORK 2.60 2.50 2.40 2.50

Q11 – TALKED ABOUT MY PROGRESS 3.12 3.20 3.33 3.00

Q12 – OPPORTUNITYTO LEARN / GROW 3.20 3.33 3.33 2.90

Q13 – I TRUST MY LEADER 3.20 3.12 3.40 2.80

2009 ENGAGEMENT AVERAGE 3.12 3.20 3.12 2.90


DAILY CAN PRODUCTION AVERAGE 4.230M 4.000M 4.071M 4.108M

= Best Score by Question = Improvement Opportunity = Requires Attention

252

2009 Ball Production Goal TrackingData through August 16, 2009

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2009 Cumulative

8.24% 16.04% 24.02% 33.85% 41.96% 51.87% 61.78% 69.71% 79.63% 87.55% 95.49% 100% 62.66%

Target – 100% or 2.9 Billion Cans

Current: 62.66% of Goal (1,817.4M)Goal: 63.31% of Goal (1,835.1M)

61.91% of the Calendar YearAugust2009

August Notes: • As of Aug 16 the plant is 17.7M cans behind pace to reach annual goal or 0.65% short.• The plant needs to exceed goal by approximately 931,000 cans/week over the next 19 weeks to get back on pace for 2.9 Billion Cans in 2009. • A Crew remains ahead of their can production goals so far this year.

Ball Metal Williamsburg ScoreboardDifference from Weekly Production Goal

January 2008 – June 2009

2008 Band of Excellence:27 of the 52 weeks YTD (51.9%)

Standard Goal

56 Mil/WeekStandard Goal

57.5 Mil/Week

2008 Band of Excellence:16 of the 21 weeks YTD (76.2%)

254

Cre

w Engage Score R

ank

Leader Bench Strength R

ank

Man Ran

k

Total Leader Churn Events (Red =

Not Planned) R

ank

Ave

rag

e In

dic

ato

r R

ank

Avg Can Prod. per

Rotation (in Mil) R

ank

Daily Can Prod.

Avg. w/o Maint. Days

(in Mil) Ran

k 12oz. Spoil. R

ank 16oz.

Spoil. Ran

k

Ave

rag

e P

rod

uct

ion

Ran

k

Ove

rall

Ran

k A

vera

ge

A 3.12 2 3.47 1 -18 1 40 (2) 4 2.00 16.45 1 4.179 1 1.71% 1 3.02% 1 1.00 1.50

B 3.20 1 3.19 2 -31 3 38 (14) 3 2.25 15.96 4 4.000 4 2.69% 4 3.47% 2 3.50 2.88

C 3.12 2 3.07 3 -31 3 30 (2) 2 2.50 16.02 3 4.043 2 1.99% 2 3.95% 4 2.75 2.63

D 2.90 4 2.51 4 -19 2 29 (6) 1 2.75 16.13 2 4.045 3 2.40% 3 3.94% 3 2.75 2.75En

ga

ge

me

nt

Pro

du

cti

on

Ov

era

ll

Crew Comparison Insights:• A Crew (1st) remains the top performing overall Crew with #1 Rankings in Manning, Leader Bench Strength, Daily and 4-Day Can Production, 12 oz. Spoilage and 16 oz. Spoilage. (Best Overall Can Prod. Total) Exceeding Goal.

• C Crew hung on to 2nd place overall with second place rankings in Engagement, Leader Churn, and 12 oz. Spoilage.

• D Crew remains in 3rd place overall, yet ranks 2nd overall in Manning, Leader Churn, Average Can Production per Rotation and reclaimed 2nd in Daily Can Production Average w/o Maint. Days. Strong August so far.

• B Crew is improving their spoilage and production numbers, drawing closer to 3rd.

Calculation Note: Week 1 Data was parsed from the data set in order to normalize the numbers following the transformer fire. Otherwise, all numbers are unadjusted.

Updated Crew Comparison AnalysisJanuary 9 – August 16, 2009

Production Line Uptime Equivalence

A Crew B Crew C Crew D Crew



DAILY CAN PRODUCTION AVERAGE(Maintenance Days Excluded) 4.230M 4.000M 4.071M 4.108M

ALL LINES - UPTIME EQUIVALENCE +5 min. -36 min. -23 min. -16 min.

“A” Crew gains a 30,000 can/shift advantage over the 4.2 million goal by running all their lines the equivalent of five extra minutes per shift. They achieve this advantage by taking less time for label changes, equipment downtime and running less spoilage

To achieve the 4.2 M can/shift goal, •“B” Crew would have to find an additional 36 minutes of uptime per line; •“C” Crew would have to find an additional 23 minutes of uptime per line; •“D” Crew would have to find an additional 16 minutes of uptime per line

Return on Investment

Total Actual Can Production (June 07 – May 08):

Total Actual Can Production (June 08 – May 09):

Can Production Gains (Unadjusted):

Production Delta over Previous 12 Months (%):

Total Dollarized Gains @ $0.05/can:

Gains Attributed to Leader PI Initiative(50%):

Total Invested (June 07 – June 09):

Return on Investment:

2,662,149,118

2,746,714,577

+84,565,459

+%3.18

$4,228,272.95

$2,113,136.38

$1,134,000.00

$980,136.48

2008 ASTD Excellence in PracticeCitation Winners

- Accepted June 2, 2009 - Washington DC -

258

“Putting it all Together”

Strategic Planning

Vision and Mission• Leadership without a Goal is Irrelevant• Goals without a Plan encourage activity not

productivity• Plans connect the entire Team to the Goals• Connected Teams are Aligned and Engaged• Aligned and Engaged Teams WIN!!!!

• Winning Teams:– Consistent Near Perfect Performance!

259

260

Is your business in Crisis?

261

Strategy Development“A Systems Engineering Approach”

• What is the current process and cost? (Current State Map)

• What does the perfect system look like? (Perfect State Map)

• How do we get from here to there? Plan of Action and Milestones with Resources Required and Return on Investment Prediction

• What does the future system(s) look like and how will we measure progress? Future State Map(s)

262

Human Capital Management Program Components

1. On Boarding

2. Current Workforce

3. Leader Development

4. Building Benchstrength

5. Executive Development

Where do we start?

263

Start where you get the biggest bang for the buck!

CFO Speak:

Return on Investment

Team Stability Snapshot

Data Driven Diagnosis

264

Team Stability Snapshot answers…

• Is the Team positioned to meet future business needs? (1 year, 5 years, 10 Years)

• Where is the Team Risk?– Organizational Scheme – On Boarding (e.g. Acquiring New Employees)– Incumbent Workforce Development– Line Supervisors Performance Improvement– Building Future Leaders– Performance Improvement Strategic Plan

• What is the Risk?• How do we mitigate the Risk?

265

The Process1. Scoping the Problem :“Patient Intake”

2. Passive Data Capture: “Running Lab Tests”

3. Active Data Capture: “Treadmill, Observation”

4. Risk Definition: “Defining the Current State”

5. Risk Prioritization: “Patient Commitment”

6. Risk Mitigation Strategy: “Defining the Perfect State”

7. Team Stability Plan of Action with Milestones and Resources Required: “Where do we start?”

266

Passive Data Capture

Capturing as much available data as possible from various sources including but not limited to:•Income Statements (Business Performance)•Human Resources•Payroll•Training•Safety•Operational Leaders

NOTE: Passive data capture is meant to be as transparent as possible to current operations. Any interaction with team will be limited and on a not-to-interfere basis.

267

Data RequestFrom HR/Payroll Database:

• Last name • Employee Number• Job Description • Grade/Pay Rate• Start Date• Leave Date• Date they were promote/hired to current Grade • Years in Current Grade • Service Date (date hired) • Years of Service • Organizational Unit Assignment (location, job) • Years in current Assignment • Supervisors – Leader-to-Led Relationships• Last appraisal • W2s Issued to Average Monthly Headcount

268

Data Request Goal: 3 years of Past Data

• Turnover Rate (by job category, reason, and years of service• Business Measures • Labor Forecasting Methods• Current Hiring Process • Current Orientation Program • Current Initial Training Program • Current Leader Training Program • Hiring Forecast by Labor Category • Current Developmental Programs/Training Expenditures

o By Job Description o By Location

• Training Management/Tracking Data• Absenteeism Rate• Copies of job descriptions (use these to get an idea of the skills required for

each position) • Succession Planning/Career Path information• Any available Business Metrics• Org Charts• Pay scale for each grade for analysis purposes

269

Passive Data Analysis Results

• By Group (Leaders and Skilled)– Attrition (When and Why)– Length of Service (Retirement)– Aging (Sweet Spot)– Headcount Variance over Time and Business Cycle– New Hire High Performer Profile– New Hire Time to Competency– Define Core Team– “Perfect” Headcount, Roles, and Leaders

• Projection for 1, 5, & 10 years to determine risk by group. (New Hires, Incumbent Workforce, Leaders)

• Team Stability Data System Performance & Tracking

NOTE: Adjust Active Data Capture Plan as required.

270

Active Data Capture

• One-on-one observations/interactions with all leaders and employees on the job site to complete the following:– Engagement Intake with supplemental questions– Leader-to-Led Snapshot– Critical Skills Definition (Current and Future)

• Determine crew composition– Who works for whom?

• Develop a Depth Chart by Sub Organization & Skills Set to define Risk Areas.

271

Active Data Capture• Organizational scheme

– Determine what the actual organization looks like.

– Understand how requirements are decomposed to daily tasks assigned to individuals and then re-composed to cost, quality, schedule, and safety metrics.

272

CS

CM

FP

IP

PL

DF

CM CM

CSCS

FP FP

JM SNP

Help

LPLP LP

Help HS

Leader Assessment• Based upon Organizational Scheme Analysis develop a

Mission Essential Task List by Leader Level along with High Performing, Developmental, and Dysfunctional Behaviors

• Assess entire population: – Leaders Leader– Leader Self Assessment– Key Internal Clients

• Identify Strengths and Weaknesses by Task

• Identify High Performers, High Potential, Developing, and Dysfunctional Leaders

• Conduct Risk Assessment by Task, by Leader, by sub-organization

273

Engagement Assessment

• Touches “face-to-face” everyone to ensure high reliability of data.

• Aids in defining a current state picture of the Engagement Level of the department

• Supplemental questions will focus on areas such as:– Career Path– Tools– Supervisor history?– And other focused questions from Passive Data

analysis and senior executive input.

274

Deliverables1. Data Driven Team Stability Snapshot

2. Risk Areas Defined (High, Medium, Low)

3. Risk Categorized (Short or Long Term)

4. Recommended Perfect State

5. Risk Mitigation Opportunities categorized and ranked by Resources Required, Complexity, and Time to Impact for Client Input

6. Long Range Team Stability Roadmap (Strategy)

7. Detailed Risk Mitigation Plan of Action and Milestones with Resources Required addressing Highest Risk Areas

275

Program Organization“Who first then What”

• Executive Review Board– Senior Executives– Facilitator/Quality Assurance: TMG

• Partner:– Champion: – Process Owner:– Program Manager:– Subject Matter Experts:

• TMG – Program Manager:– Subject Matter Experts/Data Miners:

BUSINESS SENSITIVE 276

277

Strategy Must Do’s

• Choose early programs wisely. Early failure hurts credibility and damages morale.

• Choose a Program core to the business to gain and maintain senior leader focus.

• Define metrics to measure progress and sign up for goal accomplishment.

• Develop detailed Plans of Action and Milestones.• COMMUNICATE the PLAN!• Execute, execute, execute…

278

Strategy Must Not Do’s

• Try to make us a training company• Break the bank• Make unrealistic promises• Have a negative impact on production

279

Human Capital Challenges• No silver bullet…Big Problem with a lot of moving parts in

a dynamic business environment• The commitment is to provide some real analysis to focus

our efforts…not a “Good Idea of the Day” approach• The recommendations must make good business sense • We must be realistic and “eat the elephant” one bite at a

time.• We must create a SYSTEM to:

– Better communicate with our primary clients: the Production Managers

– Synchronize and integrate our Projects and Programs with the normal business operations.

– Give the Managers predictable yet responsive support

280

How do you choose Leaders?

First Line Supervisors

Supervisors

Managers

281281

Optimizing Team Capacity• What are you best at? (Strengths Assessment)• What were you doing the last time you were “in the zone”? • When was the last time you said to yourself…now that was

some good work! • When I call you what is the thing you hope I am going to ask

you to do? • When I call you what is the thing you hope I am NOT going to

ask you to do? • What do you hate doing? • How much of your time to do spend on both? Why?

(HMMMM!)

282

Key to playing to Strengths

• Select the right leaders

• Optimize their potential by placing them in the right jobs

• Make sure that the Organizational Scheme supports the leader in their job

• Create opportunities to get better at what they do best

283

Coaching Program Overview

Coaching is just one of many tools available to supervisor’s in the tool kit as a means of changing behaviors to improve performance.

Coaching requires a series of scheduled planning sessions, briefings and reporting & intake sessions.

Advantages of Coaching• Matches the experience of a high performer in a particular task

with another leader needing focused help • Performance Driven• Linked to the Individual Development Plan • Focused on just one assessment task identified for improvement• Short term engagement (3-4 months)• Goal is immediate behavioral change and improved performance• Occurs on the job with minimal interference to routine

operations

283

284

CoachesMission: Help you achieve consistent near perfect

performance.– Realistic Performance Agreements

• Including: – Performance Goal– Professional Development Goal– Health and Fitness Goal– Behavior Goal (TMG METL)

– Opportunities to work on the right Projects– Meet with Coachee at least monthly for face-to-face

discussions.– Coaches/Coachees report out at each monthly Learning

and Development meeting

284

285285285285

Coaching Timeline1. Goal Alignment Sessions to determine Developmental Needs.

- Administer ‘The Coaching Process’ Course to all Coaching Program Participants. - Confirm the Coach/Coachee Population with Leaders.

2. Coaching Match Up & Resource Session.

3. Coaching Line Up and Resource Approval.

4. Coaching Group Kickoff Meeting. (Participants: All Coaches, Direct Supervisors of those being Coached, Management Team)* Individuals being Coached do not attend this meeting.*

5. Individual Coaching Event Kickoff Sessions. (Participants: Coach, Coachee, Direct Supervisor. 15-20 min. each)

6. Execute Task/Behavior Focused Coaching.

7. Plant Manager Walkabouts. 8. Individual Post Coaching Sessions.

(Participants: Coach, Coachee, Direct Supervisor. 15-20 min. each)

9. Leaders Coaching Results Presentation to Senior Leader.

10. Leaders (2 Levels Up) out brief with Coached Leader.

11. Coaching Report Out

12. Coaching Process Continuous Improvement Discussions.285

286

Building Lean Leaders

287

Hypothesis

If we transform our current Leaders into Lean Leaders with new responsibilities and behaviors;

we will eliminate waste and improve business performance measured in “line of sight” savings.

Outcome Metric:

WASTE Identification and Elimination

Process Metric:

Improving Leader Behaviors

288

1st Line Supervisors“We have Leaders who are busier than ever but

don’t seem to be making any progress.”

Expected Outcomes:• Increase our leader's ability to solve more day-to-day

problems correctly the first time.• Increasing our capacity to identify and eliminate Day-to-Day

Waste.• Increasing our capability to identify and eliminate Systemic

Waste to reduce the number of day-to-day problems.• Aligning our command, control, and communications

structure from General Manager to 1st Line Supervisor to clearly define "line of sight" accountability, responsibility, and authority.

289

Common Current State Issues• Operational Responsibilities have exploded yet no clear

articulation of those roles and responsibilities• Leader’s can’t see the process through the data haze• Lots of stick if you mess up the data; very little carrot to

be out in the patch• Cultural bias for solving today’s problems right now – not

necessarily in priority order based upon biggest bang.• “5 Year Old Soccer” Crisis Management Culture creating

waste in the Leadership Bandwidth

290

What Triggers Cultural Change?…changed Behaviors!

• Target Leader Training:– Stop Doing a bunch of things not adding value– Start doing new things to add value

• Senior Leader Training:– Setting the conditions for Target Leaders to succeed– Not forcing non-value added behaviors

• Behavior Based On the Job Coaching to attain high performance

291

1st Line Supervisor Commitment“Win-Win” Terms

• If the Senior Leaders support the changes to become Lean Leaders then…– I will change my behavior to reflect the Lean

Leader Behaviors taught to me in the Training Program

– I will identify and eliminate waste in my area of responsibility

– I will improve my business performance

292

Senior Leader Commitment “Win-Win” Terms

• If the 1st Line Supervisors change their behaviors to become Lean Leaders then…– The Senior’s will create a better condition for the 1st

Line Supervisor by also identifying and eliminating waste from their position in the organization.

– The Senior’s will present their proposal for the 1st Line Supervisors for their approval.

– Once approved the Senior’s will report out to the 1st Line Supervisors on the same program management.

293

Lean LeaderMission Essential Tasks

1. Knows their Process2. Knows their Customers and Suppliers (SIPOC)3. Identifies Day to Day and Systemic Waste4. Prioritization5. Eliminates Waste & Improves Business

Performance6. Engages Team Mates

294

Change:It is harder to get the Old Idea

Out… than a New Idea In.

To do something new you have to stop doing something old!

To stop doing something requires Trust to fight the I’m doing something

WRONG instinct…

Employee Engagement Assessment Totals

Engagement Surveys Conducted: 185 Total

Engagement Average: 2.91• 36.76% = Engaged (68 Employees) • 58.92% = Satisfied (109 Employees)• 4.32% = Actively Disengaged (8 Employees)

Engagement Assessment Results

1. I know what is expected of me at work:2. I have the materials and equipment that I need to do my work right:3. At work, I have the opportunity to do what I do best everyday:4. In the last seven days, I have received recognition or praise for

good work:5. My Supervisor, or someone at work, seems to care about me as a

person:6. There is someone at work that encourages my development:7. At work, my opinions seem to count:8. The mission or purpose of my company makes me feel that my job

is important:9. My associates or fellow employees are committed to doing quality

work:10. I have a best friend at work:11. In the last six months, someone at work has talked to me about my

progress:12. This last year, I had opportunities at work to learn and grow:13. I trust my leader:

Strength Opportunity to Improve

75.7% - Had an idea but often did not want to share it with Management

24.3% - Did not have an idea

What idea(s) have you had to improve an area of the plant?

Do you feel that favoritism plays a role in your ability to advance or receive promotions?

65.9% - YES

34.1% - NO

If you were king/queen for a day, what is the one thing that you would change? How?

POSITIVE/CONSTRUCTIVE

• Improve Communications - Better PA System - Standardize Sign Language - Provide Communications Training • Lengthen or change the work cycle and consider stopping the shift rotations for the hourly workforce. • Open a training department for basic Mechanical Skills to develop subordinates.• Formalize Leader Development Training.• Provide vacuums for shop floor housekeeping efforts.• Improve ventilation of the shop floor and devise temperature control methods.• Modernize manufacturing equipment and palletizing machinery.• Increase manpower in the warehouse and on some parts of the production lines.

NEGATIVE/DESTRUCTIVE

• Fire Management/Supervisors and start with clean slate to restore trust: - Across the Board - Some by Name • Break up the ‘Good Ol’ Boy Network’ and eliminate Favoritism to restore teamwork.• Reevaluate or change the process for promotions to eliminate the vote/survey.• Improve morale by empowering employees instead of breaking them down. “The negativity is as bad as it’s ever been.”• Provide anger management training & soft skill training to reduce employee abuse.• Management styles range from micro- management to indifference. Employees are no longer empowered to make decisions. Fear and focus on production numbers prevent root cause solutions.

299

Marcus Buckingham

Leaders as Chess Pieces NOT Checkers– Each Piece has different strengths and moves

differently – Key is optimize the strengths– Goal is to turn Pawns into Queens – Each Piece has unique potential– some pawns will

never be Queens and that is OK.– Goal is to make Leaders Great at their Strengths and

not force them to be OK at their Weaknesses.

300

Business Performance is a Function of Team Engagement

Team Engagement is a function of 1st Line Supervisors ability to build and sustain Trust: – Leading Business Performance Indicators – Responsible for producing “Customer Value”– Are held accountable for production requirements– They are responsible for getting “8 for 8” from the hourly

workforce– Usually in their first leadership position– Work all shifts– Blending of technical and people skills is required– Performance is directly related to their Manager’s ability to lead

them.

301

Employee Engagement & Trust• Show me the $$$$$

• It is NOT what they say but what they DO! • Measures:

– less process waste– decreased turnover– decreased safety incidents– decreased maintenance expense– fewer grievances– decreased absenteeism– reduced error rates, etc

302302

Why a Promise?• To ensure everyone knows their responsibilities• To ensure everyone on the team knows the

responsibilities of everyone else on the team.• Allows the Team to discipline itself

• The Promise allows for:– Alignment to focus everyone on the Goal– Fixes Responsibility– Clearly States Accountability– Keeps Leaders & the Led in their Lanes.

302302

303

As a Team Mate I Promise:• To do my part to make 4.1 Millions Quality Cans per shift!

• If the line is down find out why

• To come to work everyday ready to work hard; If I CAN NOT come to work I will notify my leadership

• To know the Score

• To maintain housekeeping standards at all times

• To be a Good Team Mate by communicating and listening

• To be Safe

303

304

As an Operator I Promise:• To tell somebody fast if I see something wrong

that affects quality or production

• To inform my Chief so they can make adjustments to my team if I have to leave work

304

305

As a Maintainer I Promise:• To come to work with the right tools, of the right quality, to be able

to do my job everyday

• If I do not have the right tools then I will communicate this to my Chief.

• To maintain the equipment I am assigned to company standards and ensure quality product-- if I can not I will communicate this to my Chief

• To inform my Chief so they can make adjustments to my team if I have to leave work

305

306

As a Chief I Promise:• To arrive 15 minutes (5:45) before shift change and receive the work plan

from Crew Supervisor• To adjust my daily work plan and assign tasks to Maintainers based upon

guidance received at Shift Change • To stay on the floor to finish the shift strong and turn their areas over in

better housekeeping standard then when they came on.• To execute, monitor, and report the shift work plan to the best of my ability.• To be on the line ‘Leading by Example’.• To ensure each Team Mate knows exactly what they need to do everyday

for the team to Win.• To take care of my people by listening to them and helping them contribute

the team goal.• To ensure my team knows how to do their work.• To talk face to face with each of my teammates everyday at least at start up

on what they need to do and shift change on how they did.• To enforce the standards.

306

307

As a Crew Supervisor I Promise:

• To meet with the GS prior to Shift to finalize the work plan. Arrive 30 minutes (5:30) before shift change.

• To communicate, monitor, and report work plan execution– with a progress report near the end of the shift or not later than 5:00.

• To resolve conflict between the Chief and team mates who are not doing their part for the team to win.

• To understand the Chief’s performance barriers and remove them• To ensure my crew has the right tools, parts, and materials to do their

work• To ensure my crews have the right people scheduled to perform the work.• To anticipate problems and help the Chiefs in crisis situations• To do what I say I will do• To have trust and confidence in my Chiefs to do their Job • To give honest feedback so we can get better• To address any Operator or Maintainer, and Chief schedule changes

(vacations, PCHs, and schedule changes)

307

308

As the General Supervisor/ Changeover Supervisor

I Promise:

1. To create and implement a 30 – 60 day Production Plan that addresses Man, Machine, Material and Method.

2. To ensure the Supervisors have sufficient leaders and people to produce 4.1 Million cans per shift.

3. To ensure the shift changeover meetings are well planned and seamless.

4. To provide the Crew Supervisor with the shift work plan.

5. To communicate potential barriers to the Production Manager for resolution and report impact

6. To inform the Production Manager of support requirements.

308

309

As the Plant Manager:

I Promise My Plant to: 1. Prioritize and focus our people and resources where they have the

most positive business impact for the short and long term.2. Create a culture of relentless attention to detail from me to the

Operators which will grow a great, safe, and profitable business.3. Develop the future leadership of our Plant

I Promise Our Corporate Parent to:

1. Meet or exceed our annual EBIT Goals.2. Operate a Safe Plant3. Build Strong Customer Relationships 4. Be a steward in the Community

310

Horizontal Labor Planning Considerations

• Job Complexity• Production Tempo• Level of Manual Labor• Level of Intellectual Labor• Quality Standards• Availability and Skill Set of Labor Pool• Availability of Leaders

(Leader to Led Ratio)

311

Vertical Labor Planning

Production Workforce

SeniorManagement

1st Line Supervisors

P & L Responsible Leaders

Machine 1 Machine 2 Machine 3 Machine 4 Machine 5

Sales EngineeringIT/HR/

Accounting

312

Vertical Labor Planning Considerations• Span of Control (Leader to Led Ratio)• Physical Environment• Tempo• Hourly or Salaried• Complexity• Same Labor Categories or Mixed• IT/ERP System Granularity• Support Staff Availability (Production Control,

Planning, Quality Control, Engineering, Training, HR, etc.)

313

Creating the Conditions for Success

• Owner: Creating the Business Model (Profit and Loss)

• General Manager/Front Office: Runs the Business

• Head Coach: Decide the Game Plan (Players and the Plays)

• Coordinators: Call the Plays

• Coaches: Ensures the Players know how to run the Plays

• Leaders: Read the current situation and execute the Plays

• Players: Execute the Plays

314

AlignmentCore Business Event = Quality Cans Produced per Order

Cans Produced per Order

Engineering QualitySales Production

Responsibility + Authority = Accountability

315

Putting It All TogetherWhen the CEO/CFO say…

“OK… we see all the pieces, we understand the problem, we know this critical to our business…”

“How much money do you need and when do you need it, and how will we know it made our business better?”

316

People Focused SystemsDesign Challenges

1. No silver bullet…Big Problem with a lot of moving parts in a dynamic business environment

2. Focused effort based upon real analysis…not a “Good Idea of the Day” approach.

3. Recommendations must make good business sense

4. Design Executable Programs and be good Program Managers (Cost, Schedule, Quality)

5. Be realistic in execution and “eat the elephant” one bite at a time.

6. Focus on PEOPLE first; then FTE.

7. Requires long range thinking… People are multi-year projects-- if fact Life Long Projects

8. Do not be a part of the Profit and Loss problem!

317

Attracting and Retaining High Performers

America is producing the least productive 22 year olds and the World’s Best 30 year olds.

318

Insights• Traits:

– Instantaneous Gratification– High Expectations– High Comfort Level with Risk

• Most engaging job factors:– My Opinion Counts– I can make a difference

• Recruiting and Retention Objective:– Engage them from first contact.– Challenge Them from Day 1– Watch Out!!!

319

Churn

Sucking Cost Invisibly!

320

ChurnDefinition: Percentage of Workforce scheduled to work that

day are present to perform the work in the assigned areas.

• Scheduled: The reaction time to prepare on “On Boarding” Plan to accelerate the transition time to competency of new teammate. Usually caused by external churn factors; Promotion, Transfer, Expansion, or Downsizing Initiatives

• Unscheduled: The Leaders confidence level that the teammates they planned to work that day actually showed up to work. Usually caused by internal churn factors; sickness, vacation, and absenteeism.

Unmanaged Churn Reduces Trust!

321

Causes• Individual Induced:

– Sick– Appointment– Work Schedule– Lifestyle– Apathy– Vacation– Don’t Like My Boss– Looking for New Job– Family Crisis

• Organization Induced:– Promoted– Re-assigned– Training– Personnel Policies– Required Meetings– Additional Duties– Business Travel– Process Changes– Transferred

322

ChurnGood News - Bad News

• Bad News: – Reactively; Taken Individually or “One at a Time” – Crisis of the Day approach– Just get through…– “Do No Harm” is measure of success

• Good News:– Proactively; Taken Systematically– Opportunity to Change Culture– Increases Informal Communication Networks– Builds Trust– Every “Churn” is a Developmental Opportunity– Lean Training Opportunity: Understanding the Value Stream

both Horizontally and Vertically.

323

Foreman Scheduled Churn Overview

Sep 2003: 69 Foreman

Aug 2004: 61 Foreman– 8 Foreman rated in 2003 but not in 2004 (Transferred, Promoted, Demoted, Retired)– 8 Foremen rated in 2004 but not in 2003 (New)– 16/61 = 26% Churn Rate

Jun 2005: 45 Foreman– 15 Foremen rated in 2004 but not in 2005 (Transferred, Promoted, Demoted,

Retired)– 1 Foremen rated in 2005 but not in 2004 (New)– 16/45 = 35% Leader Churn Rate

Jan 2006: 33 Foreman– 14 Foremen rated in 2005 but not in 2006 (Transferred, Promoted, Demoted,

Retired) – 4 Foremen rated in Jan 2006 but not in 2005 (New or returned from on loan)– 18/33 = 54% Leader Churn Rate

324

Foreman Internal Churn Data

(Unscheduled)

Total Foreman = 33

# of General Foreman Changes = 19 (58%)

# of Area Changes = 9 (27%)

Both General Foreman & Area = 7 (21%)

Workforce Forecast

PERIOD2006

– 2008

2009 –

2013

2014 –

2018

2019 –

2023DATA

CORE START 111 97 57 24

CORE ATTRITE (6.25% per yr) 14 27 14 5

CORE +65 (over period) (2) 13 19 29

CORE END (over period) 97 57 24 -0-

AVG WORKFORCE Requirement 15912/20/08

*133 133 133

NEW HIRE ATTRITE (49%) 86 73 105 127

NEW HIRE RETENTION 76 109 133

NEW HIRE FORECAST 169ACTUAL

149 214 260

32550%

New hires exceed core group that has been with company for 5+ years*173 as of 5/20/09

Leader Forecast

PERIOD2006

– 2008

2009 –

2013

2014 –

2018

2019 –

2023DATA

CORE START 30 20 7 0

CORE ATTRITE (11% per yr) 10 9 6 0

CORE +65 (over period) 0 4 8 12

CORE END (over period) 20 7 0 0

AVG LEADER Requirement 4012/29/08

*32 32 32

NEW HIRE/PROMO RETENTION 29ACTUAL

25 32 32

NEW HIRE/PROMO ATTRITE (42%) 11 18 23 23

NEW HIRE/PROMO FORECAST 43 55 55326

50%*40 as of 5/20/09New hires/promotions exceed core group that has been with company for 5+ years

Workforce Snapshotas of July 31, 2009

August 12, 2009 BUSINESS SENSITIVE 327

Total: 220Leader to Led: 38/182

Foreman/Leadman/Worker/Temp: 15/23/129/53

NOTE: JAN 1 personnel numbers started 4/27/09

328

Who gets to Play?Matching Leaders to People to Jobs

Considerations1. Past

Performance 2. Technical

Experience3. Strengths and

Weaknesses4. Work Area

Complexity5. Leader-to-Led

Ratio6. Lead Times7. Crew Make-Up8. Shifts

PLANNING

M1S

M

PC SS

1S 1S

GTM GTM

M

OM

NE NE

329

Key Factors

• Do you have the expertise and bandwidth to develop new leaders?

• What are the high performance behaviors required for success?– Skills

• “Sees” the Value Stream• Identify and eliminate waste• Use the computer to analyze data

– Attitudes• Like People• Good Judgement• Character

330

Great Combat Commanders

• Intuitive sense of the battlefield…situational awareness

• Think in Time and Space…and knows the critical path by instinct

• Sense events they can not see

• Orchestrates apparently disparate actions into an exquisite harmony

331

Microsoft Leader Competencies

• Capacity to see systems, patterns, and connections beyond the obvious contained in the data.

• Ability to think and execute with a Systematic Organizational View over time.

332

Leadership Traits CLO Magazine

• Think critically• Analyze complex data• Synthesize divergent evidence into a

coherent plan of action,• Define a mission and vision for their team• Negotiate and resolve conflict• Successfully communicate all this up and

down in their organization

333

Executive Leaders…• See systems, patterns, and connections beyond the

obvious contained in the data.• Think and Execute in a Systematic Organizational View

simultaneously (e.g. 2008, 2010, and 2025)• Synthesize divergent evidence into a coherent plan of

action• Continuously define a mission and vision for their team• Sense events they can not see• Negotiate and resolve conflict• …and Communicate all this both up and down in their

organizations.

334

C-Level Insights

• High Performance requires Trust.• Everyone can get better: It is a High Performance Behavior• Leadership without a Goal is Irrelevant• Goals without a Plan means activity replaces productivity• You have got to have systems in place to “kill alligators” and “drain the

swamp” at the same time.• He who learns fastest Wins! Long Tail and Customer Pull• Learning/Training is NOT an HR Function… It is an Operations function• Learning System requires Investment.

– Convert Quality and Continuous Improvement groups to Observer Controllers to facilitate the Learning.

– Learning is about getting the information from those who have it to those who need it ahead of the production bow wave.

335

Challenging Questions

• Where is your challenge?– New Leaders– Current Leaders

• What is your new leaders time to competency?• Is that acceptable?

So you think you are too busy to fully implement to the Lean

Journey?

336

U.S. Army“The Busiest Organization in the World”

337

Beyond the Horizons

2008

Pacific Angel2008

338

Strategic Environment: 1989-2009

Sharp Guard 1993-96

Deny Flight 1993-95

Provide Hope

1992-94

HurricaneAndrew

1992

Saudi ArabiaDesert Shield

1990-91

CroatiaProvide Promise

1992

Western U.S.

Fires 1994

MidwestFloods1993 Rwanda

Support Hope1994

BangladeshSea AngelMay 1991

SomaliaRestore Hope

1992-94Cuba MigrantOperations

1994

Macedonia1993-99

Provide Comfort1991-96

Strong Support

1998-1999

LA Riots1992

HurricanesOP New Horizons

1999Provide Refuge1999Noble EagleNoble Eagle

2001-?2001-?

Tsunami AidTsunami Aid20052005

Haiti Uphold Democracy1994-2000

Dakota Floods1997

Hurricanes2004

Domestic Support/Disaster ReliefDomestic Support/Disaster Relief

Humanitarian OpsHumanitarian Ops

Peace Enforcement

Major Theater War

General WarNuclear War

Strike/Raid

Peacekeeping

JTF Liberia 1992 46 Deployments

in 20 years…

More missions … fewer SoldiersMore missions … fewer Soldiers

• Cold War End (1989): 28 Divisions (18 AC;10 ARNG)• Today (2009): 18 Divisions (10 AC; 8 ARNG)

BosniaBosnia1995-?1995-?

KuwaitDesert Storm

1991

KuwaitVigilant Warrior

1994-2003

Sinai MFOSinai MFO1982-?1982-?

Taiwan Maneuver1996

Desert Fox1998

Desert Thunder I and II1998

KuwaitVigilant Sentinel

1995

IraqiIraqiFreedomFreedom

2003-?2003-?

HOAHOA2002-?2002-?

Enduring Enduring FreedomFreedom

2001-?2001-?

KuwaitSouthern Watch

1991-2003

PanamaJust Cause

1989-90

Allied Force1999

East Timor1999-2002

Assured Response

1996

Wild Fires2007

HurricaneIniki1992

255,000 SOLDIERS DEPLOYED/“FORWARD STATIONED” IN NEARLY

80 COUNTRIES OVERSEAS*INCLUDES AC STATIONED OVERSEAS

OTHER OPERATIONS & EXERCISES

2,230 SOLDIERS

HONDURASJTF-BRAVO

450 SOLDIERS

JTF-GTMO650 SOLDIERS

KFOR1,500 SOLDIERS

M M

Army Global Commitments

OIF - IRAQ 100,600 SOLDIERS

OEF- PHILIPPINES250 SOLDIERS

SOUTH KOREA16,600 SOLDIERS

(Part of AC Station Overseas)

HOMELAND SECURITY

6,000 SOLDIERS(RC Mobilized Stateside)

MFO700 SOLDIERS

OEF- AFGHANISTAN30,200 SOLDIERS

OIF - KUWAIT14,100 SOLDIERS

BOSNIA20 SOLDIERS

ALASKA13,000 SOLDIERS

USAREUR45,500 SOLDIERS

JTF- HOA

900 SOLDIERS

QATAR

1,250 SOLDIERS

As of 05 May 09

On Average, Soldier…

RANK:

AGE:

TIME IN SERVICE:

BASE PAY:

EDUCATION:

MARITAL STATUS:

RACE:

GENDER:

AVERAGE WORK DAY:

E-4 (Corporal / Specialist)

22

4 Years

$2,127.60/Month

High School Graduate

Married with 2 Children

63% Caucasian / 37% Minority

86% Male / 14% Female

When the mission is complete

341

Your US Army…

...Moves more than 700,000 personnel in and out of theater yearly, the equivalent

of all Washington, DC residents

...Moves more than 700,000 personnel in and out of theater yearly, the equivalent

of all Washington, DC residents

…Purchases enough fuel daily to provide fuel for every car in Washington, DC

twice per day.

…Purchases enough fuel daily to provide fuel for every car in Washington, DC

twice per day.

...Resets 14,000 vehicles a year. That’s enough to fix almost all of the student

body’s cars (assuming they all have one) at Georgetown University.

...Resets 14,000 vehicles a year. That’s enough to fix almost all of the student

body’s cars (assuming they all have one) at Georgetown University.

... Ships over 10,300 Mine Resistant Ambush Protected (MRAP) vehicles to theater

in a year or enough to cover 31 football fields.

... Ships over 10,300 Mine Resistant Ambush Protected (MRAP) vehicles to theater

in a year or enough to cover 31 football fields.

… Resets 96,000 small arms or enough to overhaul the weapon of every sworn law

enforcement agent in Washington DC almost seven times/year.

… Resets 96,000 small arms or enough to overhaul the weapon of every sworn law

enforcement agent in Washington DC almost seven times/year.

342

Things That Make You Go Hmmm…

• Every year 170,000 men & women join the US Army

• Only 3 of 10 males 17-25 years of age is qualified to join the US Army

• We have been fighting this conflict longer that any war except the American Revolution

• In the American Revolution (1775-1781) your Army won 3 battles (Trenton – Saratoga – Yorktown)

• 90% of all wounded in this fight survive (70% in Vietnam)

• Reenlistment rates are the highest in our deployed units!!!!!

The Math

Total Force: 535,000

Annual Turnover: 170,000

Deployed: 255,000

Sustainment Base: 110,000

343

Culture• We will never put a soldier in harm’s way unless

we have done everything possible to ensure their success.– Current and Relevant Doctrine & Procedures

(Process)– Organization designed to Win!– Mission Focused Individual and Collective Training – Competent Leadership at EVERY level– Right and Best Equipment Available– Stable relationships between Soldiers and Leaders in

a Culture of Trust

344

All of that and still they have attained…

Consistent Near Perfect Performance!

How…

345

Team Stability…

The Brigade Combat Team

…where the Heartbeat of the business is accomplished everyday!

346

347

Buy or Build Leaders

Hire or Develop

348

If you had $10,000 to invest what % would you spend on…

1. Development– Developing your current

Leaders/Employees into future Leaders– Building Leaders Benchstrength

2. Selection– Selecting Leaders from the Pool of Internal

and External Candidates (Interview Process)

1 The Jacksonville Lean Consortium Presents…. 2 Building a Dream Team Culture: “People Powered...

Documents

Transcript of 1 The Jacksonville Lean Consortium Presents…. 2 Building a Dream Team Culture: “People Powered...