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Transcript of Murray Easton
Nov08/MS292-08
A Complex Leadership ChallengeSurvival by engagement and empowerment
Murray Easton
Nov08/MS292-08
• Murray Easton• Barrow shipyard and challenges:
• The past• The challenges• The response
• Waste identification & Removal:• Overheads• Labour• Material
• Closing Observations• Questions
Business Improvement and the Removal of Waste
SafelyDeliveringAffordable
TogetherCapability
Nov08/MS292-08
My background
3
Nov08/MS292-08
The Product
4
Submarine Solutions Business Units
Barrow-in-Furness (4427)
Farnborough (82)
Weymouth (50)Filton (13) Ash Vale (38)
Total Employees – c 46002009
(numbers excl of apprentices, graduates)
Nov08/MS292-0804/05-MS001-05
Barrow Shipyard
Nov08/MS292-08 7
Historical View – The Challenges
SafelyDeliveringAffordable
TogetherCapability
• Cost plus contracts, behaviours and mentality, high quality/low productivity
• Monopoly – Trident
Then.... • Astute, a fixed price development ‘prime’ contract arrangement.
• 2002 – 3.5yrs late, £760M loss.
‘monster of the deep wreaks havoc’
Nov08/MS292-08 7
Historical View
SafelyDeliveringAffordable
TogetherCapability
• Difficult to compete when you haven’t been playing regularly!
10 year gap design 10 year gap like-for-like production skills
Head
coun
t
0
2000
4000
6000
8000
10000
12000
14000
Astute ClassVanguard ClassUpholder
1988 1992 1996 2000 2004 2008
TrafalgarSuccessor
Workforce engaged in Submarine building
Other
Nov08/MS292-08 7
Historical Waste – If you could turn back time!
SafelyDeliveringAffordable
TogetherCapability
Head
coun
t
0
2000
4000
6000
8000
10000
12000
14000
Astute ClassVanguard ClassUpholder
1988 1992 1996 2000 2004 2008
TrafalgarSuccessor
Workforce engaged in Submarine building
Other
Could have managed the samewith approx 7000 employees!
• Abolish the PCO
• Flatter organisation structure
• Re-baseline schedule
• Change contract to target costs, incentive fee
• Address behaviours and culture
• Complete overhaul of communication processes.
• Less hierarchical
• Increased employee engagement and teamwork
The Immediate Response
SafelyDeliveringAffordable
TogetherCapability
Nov08/MS292-08 8
• 5 years ago Boat 4 was becoming increasingly unaffordable - threat to seven boat programme.
• Our team responded to the Affordability challengethrough performance, innovation and determination
• We did not have control of some external influences
Response - Affordability
12 3 4
Boat
Cost
30% Overhead
ReducedCost
ConsciousCulture
Supplier PerformanceManagement
20% Material
Reduced30% Labour
ReducedProductivity
SafelyDeliveringAffordable
TogetherCapability
Nov08/MS292-08 8
• Leadership drove a tenacious ZBB programme (Zero Based Budgeting)
• Questioned affordability of all non-essential expenditure
• War on waste.
Overhead Costs
SafelyDeliveringAffordable
TogetherCapability
Nov08/MS292-08 8
• Change of build strategy.• EB/Vertical Outfit.• Modules ‘vs’ stick build
• Productivity and Lean manufacturing.• Pipeshop; Victorian design• Pipeshop; based on Lean
• Safety culture
• Responsible behaviours (Organisation Development)• Sickness absence• Motivation• Reward and recognition (financial and non-financial)• Mature working arrangements (breaks, etc)• Etc
Labour Costs & Innovation
8
SafelySafelyDeliveringAffordable
TogetherCapability
Nov08/MS292-08
• Major work improvements• DDH – Service Towers
• ‘plugged in’ tools, QC, Planning, Leadership, etc.
• Kitting – 100% kitted; 2 weeks supply on one pallet
• Value stream mapping
• Recruitment, attitude focus
• Coaching
• Collective and individual responsibility – One Team• Peer group pressure
• Challenge and be challenged – trust and respect agenda
Response – Labour & Innovation
Nov08/MS292-08 23
Safely
• We have challenged cost wherever and whenever appropriately
• IT Systems - we opted out from our IT provider.
• 40% improvement in customer satisfaction.
Affordability - IT systems
DeliveringAffordable
TogetherCapability
Reduced by factor of
10!Downtimeper user
per month 3 2008
MinutesMinutes
2005 36
Nov08/MS292-08 9
SAFELY DELIVERING AFFORDABLE CAPABILITY TOGETHER
Nov08/MS292-08
• Embraced genuine 2 way communication philosophy.
• End to end comms process redesign; consistent themes, language and media.
• Regular face to face employee briefings by leadership.
• Employee forums.
• Team briefs.
• Visual management (supported).
• PRIDE – generating innovation and providing recognition.
Internal Communication, Engagement and Motivation
Nov08/MS292-08 88
SafelySafelyDeliveringAffordable
TogetherCapability
Nov08/MS292-08
Culture and Behavioural ImprovementThe Change Wheel
PerformanceManagement
OrganisationFocus and
Clarity
LeadershipDevelopment
Reward andRecognition
Teamwork
Communication& Involvement
Behavioursto Succeed
SafelyDeliveringAffordable
TogetherCapability
Nov08/MS292-08
LeadershipDevelopment
Reward andRecognition
• Development centres• Coaching• Conferences (engagement)
• Grading structure• All employee bonus (aligned to Exec bonus)• PRIDE (recognising innovation)
Culture Change
Nov08/MS292-08
PerformanceManagement
OrganisationFocus and
Clarity
• Build strategy• Logistics (kitting) & Supply Chain• Monthly performance and development reviews• Performance improvement plans (PIPs)• Visual Management (Lean)• Behavioural Performance Feedback (BPF)
• Objective deployment• Common and Functional clarity• Fixed people manager objectives (safety, quality and performance management)
Culture Change
Date/reference/classification
04/05-MS001-05
04/05-MS001-05
Vertical outfit of 5 pressure hull units has been achieved
25
Nov08/MS292-08
• What have we achieved?• Modules
• Achieved on a design not intended for modules!
Safely
Delivery - the last 5 years
DeliveringAffordable
TogetherCapability
Modules SmallBig And
MassiveShift!Increased to
Boat 14 2003
650+ 2008
Boat 4
Nov08/MS292-08
Teamwork
Communication& Involvement
• Natural Work Teams (Psychologists)• Transactional Analysis (how we work together)
• Employee opinion surveys (39% - to – 80%)• External comms• Internal comms• Trade Union partnership working• Community newsletter• Celebrating success• Work, Life, Barrow
Culture Change
27
Nov08/MS292-08
Safely
Together - employee survey
• Employee survey 2008 - fantastic, well done Team!
• We still have issues - well understood and we continue to improve our ability to perform…
DeliveringAffordable
TogetherCapability
Participation Double!Response
2004
39% 80%2008
Response
Trust RewardRespect Recognition
Nov08/MS292-08
Inclusive employee effort
- Diversity
- Graduates
- Apprentices
- Mature Apprentices
Nov08/MS292-08 10
• Absence waste = cost of those absent + cost of disruption in the business.
Sickness Absence
• Performance recognised via national HR awards. • If you need medical help - you got it. • We need you healthy – and we need you at work!
Down over two thirds!
Reduced to
per annum 9%+
2003 2008
per annum 2.5% Safely
DeliveringAffordable
TogetherCapability
Safety
First Think Safe, Act Safe, Be Safe.
10RIDDORS
350Accidents
42Incidents
1566Near Misses
118RIDDORS
1323Accidents
21Incidents
9Near
Misses2003
Jan-Dec
2008Jan-Jul
SafetyFirst
• The threat of a serious accident always remains.
• Risks must be avoided, there is always more to be done.
• Point of Work Risk Assessments
• Ensure all assess own work area.
• Look after workmates/ colleagues and those around you.
•You have to ask, what are you going to do to ‘take care’?
Nov08/MS292-08 8
• Supply Chain• Key supplier forum
• CAD accuracy + Optimised Manufacturing Processes = Material cost saving through reduced waste• E.g. Pipework store of 3500 ferrous and non-ferrous pipes
Response – Material
SafelyDeliveringAffordable
TogetherCapability
Nov08/MS292-08 8
• Engineering, 15 design exercises. e.g. Gearbox and Chilled Water Plant; legacy designs and legacy equipment.
• Design for operation Y
• Design for maintenance N
• Design for manufacture N
• Redesign cost justification always an issue
Could Have Been Better?
SafelyDeliveringAffordable
TogetherCapability
Nov08/MS292-08 8
• Fundamentally the leadership need to relentlessly motivate the entire workforce to reduce waste by creating a culture of encouragement and recognition.
• Its an attitude of mind that has huge cost and performance benefits.
Final Observations
SafelyDeliveringAffordable
TogetherCapability
Nov08/MS292-08
My Learning Observations of Leadership• Credibility• Capability• Courage• Commitment• Communication• Caring (and a large dose of emotional intelligence throughout
management)
• ....and FUN !(aka COMEDY, for those of you
that need CONFORMITY)!!!!!
Green Point Stadium (GPS), Cape Town
Andy Fanton, GPS Managing Director• “What a journey!• It’s true that each project is a step into the unknown. Of course,
there are plans and models of the ultimate structure but the journey towards that end is filled with moments that are tense, as well as moments that are awe inspiring, challenging, human, and often funny. Oddly the funny bits are the moments you cherish.
• Green Point Stadium is the last place I thought I would spend 32 months of my career. Having taken the step and completed the journey; I would not have missed it for anything! GPS is not just about the iconic jewel that was nurtured from nothing, it’s equally about the personalities I have had the pleasure of working with along the way. I can say with absolute honesty that Team Green Point is the best I have worked with in six countries over a period of 21 years.......
......continued.• There are two things that ring clearly in my mind when I reflect on
the project:• “Without Passion You have nothing…”• “Fear of Failure is a Fantastic Motivator…”• Chaps, we did it! Your unwavering commitment to the cause is
something to be proud of, I know I am. • I will miss our exchanges, but will continue to recall them with fond
memories as long as I live.• I think a poet once said that it was not the destination that mattered
but the journey. He was right, although I believe that our destination will become a famous place where people will gather to celebrate the triumph of the human spirit”.
...the customer’s message;
• “To my friend Andrew and the team:• It is said that “cometh the hour, cometh the man”. In the case of
GPS one should rather state that “cometh the hour cometh the team”! A building as iconic, challengingly complex, innovative and urgent as this could not have asked for, or received, the attentions of a more driven and competent group, indeed it deserved nothing less. Looking back, as we all will, the enduring memories will be of the people and not the difficulties encountered. So there we are, look back and know that it was a job well done, and, more importantly, one that could not have been better accomplished by any others! Know also that, as we move on to other challenges and other life paths that this is something to remember, as I certainly will, with pride, as none of us will ever walk this way again!”
• Silas Darby
Nov08/MS292-08 9
QUESTIONS?