Nick Mulhall

Group Director, Survitec

THE MANUFACTURING INSTITUTEThe Survitec Story:

Successes and challenges of lean transformation in a rapidly growing global business

Nick MulhallGroup Director Quality & Continious Improvement

Agenda

• Survitec Group overview

• Improvement challenges

• Transformation strategy and process

• Growing pains & the leadership challenge

• Impact & results

• Some help from you.....

3

Survitec Group Overview

Key Facts• £200 million turnover• 7 manufacturing sites• 15 service stations• 400 accredited service

stations globally• Employ 1500 people

across the group

Make up of the group

Target - £300m in 2 years through acquisitions & organic growth

Military Liferafts

Market Leading Products

Inflatable Shelters

Pilot Flight Equipment

CommercialMarine

Liferafts

Submarine Escape Suits

Mass Evacuation

Systems

Immersion Suits

47

The Business Reality - 2009

• Group of individual companies• Little commonality in processes• Customer service poor• Cost base too high• Traditional work force

• No perceived need for improvement• Inappropriate Incentive Schemes• Institutionalised Overtime

• Inventory spiralling upwards• Request for more space for growth

8

Clear need for coordinated improvement

Our Approach

Group Business Strategy

Business Strategy

CustomerIntimacy - CRM

LeanDeployment

ProgrammeManagement

Sales and Operations Planning

OperationalExcellence

Sales & MktgGo to Market

New ProductIntroduction

Challenges of implementing Lean globally

• Complex & diverse business

• Different processes / priorities / problems across group

• Range of cultures

• Geography / Language / Time zones

• Virtually no Lean capability

• Manufacturing and service

11Needed a flexible model that would work across the group

Model for consistent & sustained lean transformation

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Group Change Platform

Lean Principles & Shingo Model

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Site Ownership

Global Rollout Strategy

• Lead Site in Dunmurry Belfast• Biggest Opportunity• Trained the management team• Used consultancy support to ‘prime the pump’

• All Other Sites Follow Same Model• Manufacturing sites simultaneous• Acquisitions lag by 6 months• Service stations and strategic suppliers to follow

• Use local consultancies to kick start programs

Create the need

Set the challenge

Managing directors present progress quarterly

Driving & Controlling the Implementation

Lean Manufacturing Program Implementation Status

Location

Group site

assessment

MD and Team

Trained

Strategy developed

& communic

ated

12 month costed

plan

Lean Office In

Place

Lean Mfg Consultant Engaged

Lean Mfg Training

PlanSite VSM

Layout Plan

Pilot Cell Sales &

Operations Planning

Site Score Card

Weekly Improvem

ent Tracking

Monthly Improvem

ent Tracking

Lean Self Assessment Score

Q310   75%   10%   TMI                  

Q410   75%       TMI       100%          

Q111           TMI                 18

Q211           TMI                 37

Q311                              45Q411                               52

Leadership Role

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Growing Pains

• Own & Lead the Change• Understand Lean &

Change process• Create the infrastructure

& organisation• Invest to improve• Challenge behaviours• Create a Vision

Support & Influence

• Show them what good looks like

• Align their incentives• Support through difficult

changes• 1 to 1 mentoring• Make progress visible• Facilitation help

Impact & Results

Pictures Today

“I would now be proud to show my wife and family where I work’’

The Dunmurry Result………So Far in 12 months

Improvements - 12 Months From KO Meeting

• Space 30% Reduction• OTD 60% Improvement• Quality 40% Improvement in FTPR• Cost £250k+ EBITDA• Inventory £2m Reduction – 40%

“we are doing this now because we want to, not just because you told us too!!” MD Dunmurry

Rented building - Closed after 19 years !

Cost Saving - £125K PA

Time for help from you....

• Consistency of tools processes and training across the group• Language • Measurement of improvements• Sharing of best practice• Going global with the lean academy• Model for service stations• Any others you see.....

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Some of my challenges......

1. Ideas, examples or suggestions of ways to improve the Survitec program.

2. Examples of where some of the elements of the Survitec program could help you.

THE MANUFACTURING INSTITUTE

The Survitec Story:Integrating new and acquired sites into global

production systems

Nick MulhallGroup Director Quality & Continious

Improvement