PAT KEALYVascular Division Operations Manager

Abbott Ireland

The Abbott Journey to the Shingo Prize

Abbott Vascular Clonmel

Clonmel

What Do We Do?

What Do We Do?

What Do We Do?

MULTI-LINK VISION MULTI-LINK ZETA XIENCE PRIMEXience V

DES – Drug Eluting StentBMS – Bare Metal Stent

XIENCE Xpedition

ABSORB

What Do We Do?

Our Quality Policy

Built as if Intended for My FamilyWe celebrate this with ourCustomer Appreciation Day• Worldwide event, 2013 theme

was “Enhancing Life Together”

Operational Excellence Timeline

2012 201320112008 201020092004 20062005 2007

BEFORE AFTER

LPIMoveto Zero

Lean 14 step

Six Sigma

Lean & 5S

Std Work

Operational Excellence Timeline

2008 201020092004 20062005 2007 2012 20132011

LPIMoveto Zero

Lean 14 step

Six Sigma

Lean & 5S

Std Work

Class A

A3VSM Product Strategies

OLSAAuto. HPO14-step

Step 12 Design

Approval of Line Layout

Step 10 Improving

Line Flexibility

Step 10 Develop Standard

Step 5 Pilot Area Selection

Step 4 Initiating the Team

Step 3 Team

Member Selection

Step 2 Objectives

Step 1 Critical

Elements of Success

Step 9 Activity of

the Associate

Step 8 Line/Cell

Vision

Step 7 Group Tech.

Activity

Step 6 Activity of

the Product

Step 14 Business

Case Development

Step 13 Performance Measurement

14 S

tep

Proc

ess

500 to 1500 employees

Cultural Enablers – HPO (High Performing Organisation)

2010 Culture Survey results helped shape the direction of the site

Perceived to be strongest at• improving objective business metrics• meeting corporate expectations• delivering to customers

Opportunities existed in• fostering great working relationships• instilling confidence that this is a great place to build a career• coaching people to develop their capabilities for the long term

High-Achieving and High-Performing

I involve each member of my team in decisions that affect their work environment

I regularly use performance feedback

Members of my work group treat each other with respect

My work group and I consistently generate and implement improvement ideas

4 HPO statements developed for our people managers

HAO HPO

I regularly use performance

feedback

I involve each member of my team

in decisions that affect their work

environment

Members of my work group treat each other with

respect

My work group and I consistently generate and

implement improvement ideas

Link to Operational Excellence

Operational Excellence Timeline

20112008 201020092004 20062005 2007 2012 2013

LPIMoveto Zero

Lean 14 step

Six Sigma

Lean & 5S

Std Work

Class A

A3VSM Product Strategies

OLSAAuto, HPO14-step

WSD 6-BoxShingo

Operational Excellence Gap Analysis

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Cul

ture

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Weighted Average 53% (534 points)

2012 AssessmentOperational Excellence Gap Analysis

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

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Weighted Average 53% (534 points)

Dimension: Cultural EnablersContinuous

Process Improvement

EnterpriseAlignment

Results

Seeing Reality!!

Easy Wins (Logic and Intuition)

Low Hanging Fruit (Tools)

Good Engagement (Systems)

True Lean Full Engagement (Principles)

• The Shingo Model aided in setting the direction for the roadmap

Operational Excellence

Operational Excellence• For Clonmel to progress along

its Continuous Improvement journey, a vision and roadmap was required

Operational Excellence Timeline

2012 201320112008 201020092004 20062005 2007

Operational Excellence Gap Analysis

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Cul

ture

Sen

ior L

eade

rshi

p E

duca

tion

Tra

inin

g &

Coa

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g

Cul

ture

Sen

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t&

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Weighted Average 53% (534 points)

LPIMoveto Zero

Lean 14 step

Six Sigma

Lean & 5S

Std Work

Class A

A3VSM Product Strategies

OLSAAuto. HPO14-step

WSD 6-Box

CI HuddlesSup Ex

Shingo

People Development

Operational Excellence Timeline

2012 201320112008 201020092004 20062005 2007

Supervisor Standard Work7:50- 9:00 9:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:20

Pre shift comms with Lead Opto ensure alignment on daily plan / tasks

(e.g. Lot Change time, Training, Op certs, CI Huddle, etc…)

DBTH (Day BY The Hour) Utilisation Check Line Performance Hourly with Line Lead - Support and take action as needed and update

on eDBTH

DBTH Utilisation Same as 09.00:-10:00

DBTH Utilisation Same as 09.00:-10:00

DBTH Utilisation Same as 09.00:-10:00

DBTH Utilisation Same as 09.00:-10:00

DBTH Utilisation Same as 09.00:-10:00

DBTH Utilisation Same as 09.00:-10:00

Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins

RCA Work

Duration: 0 - 5 min Duration: 10 mins Duration: 1 Hr 5 mins Duration: 15 mins

Rearrange station headcount and coverage if necessary

Meet with Lead OperatorReview changes to dai ly plan based on morning

meeting and fi rst hour performance

MeetingsHR 1-1, Lean Review, 1-1's, CI Huddle and Comm Huddle, Safety, Staff, Others

End of shift DBTH check(reconci l iation ,etc…)

Over 2 week cycle there will be more meetings on days and more RCA on evenings

Check Voice mailFollow up with Line on first hour productionMake corrections where necessary and give

feedback if positive

Station Assignment PlanCreate plan for next day including planned

holidays other known absences (training, etc..)

Mon Tue Wed Thu FriOperator Coaching

Standard Work Check

Improvement Project (Yield, SMED, etc…) - DMAIC

5S

1st & Last Hr performance As required daily or review once every 2 weeks

Line Trend Analysis As required daily or review once every 2 weeks

UPPH Analysis As required daily or review once every 2 weeks

Lot CT As required daily or review once every 2 weeks

MUV As required daily or review once every 2 weeks

CI Huddle Work As required daily or review once per week

LPIMoveto Zero

Lean 14 step

Six Sigma

Lean & 5S

Std Work

Class A

A3VSM Product Strategies

OLSAAuto. HPO14-step

WSD 6-Box

Sup ExShingo

Connect ‘Dots

Std workCI Huddles

Connecting the Dots

Connecting the Dots

Connecting the Dots

Connecting the Dots• Links our performance to our strategic themes• Aligning performance measures to the

delivery of our strategy

Product

Operational Excellence Timeline

2012 201320112008 201020092004 20062005 2007

LPIMoveto Zero

Lean 14 step

Six Sigma

Lean & 5S

Std Work

Class A

A3VSM Product Strategies

OLSAAuto. HPO14-step

WSD 6-Box

Sup ExShingo

Connect ‘Dots

Std workCI Huddles

Supervisor Standard Work7:50- 9:00 9:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:20

Pre shift comms with Lead Opto ensure alignment on daily plan / tasks

(e.g. Lot Change time, Training, Op certs, CI Huddle, etc…)

DBTH (Day BY The Hour) Utilisation Check Line Performance Hourly with Line Lead - Support and take action as needed and update

on eDBTH

DBTH Utilisation Same as 09.00:-10:00

DBTH Utilisation Same as 09.00:-10:00

DBTH Utilisation Same as 09.00:-10:00

DBTH Utilisation Same as 09.00:-10:00

DBTH Utilisation Same as 09.00:-10:00

DBTH Utilisation Same as 09.00:-10:00

Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins Duration: 10 mins

RCA Work

Duration: 0 - 5 min Duration: 10 mins Duration: 1 Hr 5 mins Duration: 15 mins

Rearrange station headcount and coverage if necessary

Meet with Lead OperatorReview changes to daily plan based on morning

meeting and first hour performance

MeetingsHR 1-1, Lean Review, 1-1's, CI Huddle and Comm Huddle, Sa fety, Staff, Others

End of shift DBTH check(reconcil iation ,etc…)

Over 2 week cycle there will be more meetings on days and more RCA on evenings

Check Voice mailFollow up with Line on first hour productionMake corrections where necessary and give

feedback if positive

Station Assignment PlanCreate plan for next day including planned

holidays other known absences (training, etc..)

Mon Tue Wed Thu FriOperator Coaching

Standard Work Check

Improvement Project (Yield, SMED, etc…) - DMAIC

5S

1st & Last Hr performance As required daily or review once every 2 weeks

Line Trend Analysis As required daily or review once every 2 weeks

UPPH Analysis As required daily or review once every 2 weeks

Lot CT As required daily or review once every 2 weeks

MUV As required daily or review once every 2 weeks

CI Huddle Work As required daily or review once per week

Operational Excellence Timeline

KNOW-HOW KNOW-WHYPrinciple focusTools & Technique focus

KNOW-HOWSystems focus

2012 2013

CI Huddles

2011

Sup Ex

HPO

Connect ‘Dots

Shingo

WSD

2008 2010

Class A

2009

A3 Product StrategiesVSM

6-Box

Std workLean 14 step

2004 2006

Six Sigma

LPI

2005 2007

Lean & 5S

Std Work

14-step OLSAAuto.

Evident when we look back that our journey has mirrored a classic Operational Excellence path:1) Initially the primary focus was on tools2) A system focus then brought alignment to where and how we use the tools3) Our latter years have focused on the cultural enablers, embedding the Shingo Principles

Moveto Zero

A Lot Done….

CO - Completed NC - Overdue (not co mpleted by due date)

WIP - Work in Progress N/A - N/A for current week 31 30 29 28 27

Area Task Owner Frequency

Month End

ActivityDue Date

Post Month End Activity Due Date 29

-Jul-1

3

22-Jul-1

3

15-Jul-1

3

08-Jul-13

01-Jul-13

AP - Journals & Rec list & review month end files ALL Monthly x Day 10 WIP CO WIP NC W IP- Prepare AP & Deviation Metrics & Review RO/MC Monthly x Day 4 CO N/A N/A N/A CO- Vendor Payment Run & Review CS/RO/MC Fortnightly x Day 6 (Approx) N/A CO N/A CO N/A- VAT Return RO/MC Bi-Monthly x 19th N/A N/A CO N/A N/A- Vies & Intrastat Return RO/MC Monthly x 25th WIP NC N/A N/A N/A- 46G (To Sligo) RO Annually x 25th Feb N/A N/A N/A N/A N/A- Creditors Reconciliations (Top 10 monthly / 100% quarterly)) CS/RO/MC Monthly x Day 15-20 WIP WIP WIP N/A N/A- Review PO Edit Reports MC Monthly x Day 10 N/A N/A N/A CO N/A- Review Vendor Master Edit Report MC Monthly x Day 10 N/A N/A CO N/A N/A- PO Audit MC Quarterly x Day 12 N/A N/A N/A CO N/A- Vendor Master Maintenance MC/RO Bi - Annually x Jan/Jul N/A N/A N/A N/A N/A- Denied Party Screening MC Quarterly x Jan/Apr/Jul/Oct NC N/A N/A N/A N/A

Inter Co - Forecast Netting Payables/Receivables CS Monthly x Day 5 N/A N/A N/A CO N/A- Pre-Netting from Sligo, confirm CS Monthly x Day 10 (Approx) N/A N/A CO N/A N/A- Final Netting from Sligo, confirm and post CS Monthly x Day 15-20 N/A CO N/A N/A N/A

Payroll - Prepare Payroll Metrics & Review AM/GQ/MC Monthly x Day 4 CO N/A N/A N/A CO- Process Merit Increase for all employees & review AM/GQ/MC Annually x Annually - 1 Apr N/A N/A N/A N/A N/A- Process Bonus & Review AM/GQ/MC Annually x Annually - 10 Mar N/A N/A N/A N/A N/A- Monthly Payroll Processing AM/GQ/MC Monthly x Day 10 (Approx) N/A N/A N/A CO N/A- Fortnightly Payroll Processing AM/GQ/MC Fortnightly x Day 19 (Approx) CO N/A CO N/A CO- P30 Preparation & Submission to Revenue GQ/MC Monthly x Day 10 (Approx) N/A N/A N/A N/A CO- ESPP contributions submitted to Sligo AM Monthly x Day 5 N/A N/A N/A CO N/A

July

Finance Standard Work Activities

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

Marke

r Scra

p Rate

1. Before After

16 32 48 64 80 96 112 128 144 160 176 192 208 224Sample

Individual Measurement of Marker Scrap Rate