The Foundation for Continuous Improvement:The Purpose of Pillars

Milliken Performance System

“Operational Excellence secures the present, Innovation Excellence secures the future.”

Roger Milliken

What is a Pillar?

pil·lar [pil-er] –noun 1. an upright structure of stone,

brick, or other material, used as a building support, or standing alone, as for a monument: Gothic pillars; a pillar to commemorate Columbus. 2. a fundamental principle or practice:

Safety

• Safety is the foundation of the performance system that engages all associates in the uncompromising pursuit of zero incidents.

What

• Foundation that signals the individuals’ personal well-being comes first, and from there creates the elements for a high performance work environment.

Role in the System

• All associates

Who

• Zero incidents, high morale, 100% associate engagement, trust between associates and management

Deliverables How

• Total associate ownership• Hazards, risks identified• Steering committees • Sub-committees• Use of continuous

improvement tools and methods

• Management as a resource and coach

Daily Team Maintenance

• DTM provides operators with the knowledge and skills required to proactively prevent breakdowns and waste caused by accelerated equipment deterioration and abnormalities.

What

• Improved reliability and stability, setting foundation for other pillar improvements

Role in the System

• Operators, technicians, maintenance, production leadership

Who

• Reduction in minor stops, breakdowns, changeover time

Deliverables How

• 0: Prepare for Restoration• 1: Restore, Inspect, Understand• 2: Identify Deterioration & Implement

Solutions• 3: Establish Cleaning & Lubrication

Standards• 4: Train Operators to Detect/Correct

Abnormalities• 5: Apply Practical Application of Methods• 6: Standardize DTM Throughout the

Location• 7: Continuously Improve the Process

Daily Team Maintenance Restoration

AfterBeforeRestore to “like new” condition

DTM Improved Our:Equipment• eliminated dirt, contamination & deterioration• reduced breakdowns & downtime• defined standards for optimal equipment conditions

People• educated operators on the identification & repair of abnormalities • increased operator awareness and responsibility, & equipment

knowledge• allows technicians to troubleshoot and redesign

Culture• created an environment of pride, ownership, and responsibility• eliminated the barrier between operators and technicians

5S

• Process used to organize and maintain the workplace environment in order to improve efficiency and safety, reduce waste, and eliminate non-value added activities.

What

• Foundational process which establishes the expectations of discipline and overall engagement

Role in the System

• All associates

Who

• Improved safety, reduction in non-value added activities

DeliverablesHow

•Model areas•Separate•Simplify•Systematize•Standardize•Sustain

Continuous Skills Development

• A standardized training process to ensure our associates are doing things the right things, the right way, every single time.

What

• Decrease variation within the production systems attributed to training opportunities

Role in the System

• All associates

Who

• Reduction in process variation, turnover, and overall training spend

Deliverables How

• Model areas• Skills element tree• Skills assessment• Associate certification• Re-training process• Individual

performance measurement

Continuous Skills Development Spider Chart

A “picture” of the job checklist. Used as a visual tool to identify training gaps and effectiveness

0

1

2

3

4BASIC SKILLS

SAFETY

TERMINOLOGY

PS OVERVIEW

PLANT OVERVIEW

COMMUNICATION

Assessed Goal

Performance LevelsLevel 1 General knowledge of the

job

Level 2 Can do job with some assistance

Level 3 Can consistently do job with confidence without assistance

Level 4 Can teach job to others

Focused Improvement

• FI provides a logical thinking process which identifies root causes of opportunities in order to reduce / eliminate losses.

What

• FI Planning and FI projects direct and then generate resources to fund the performance system while improving capability of processes, people and reducing loss

Role in the System

• Operators, technicians, maintenance, process improvement leadership, engineering

Who

• Reduction in targeted loss areas, increase in problem-solving confidence

DeliverablesHow

• Project approach following the DMAIC methodology

•Define•Measure•Analyze •Improve•Control

(and

Planned Maintenance

• Combination of preventive, predictive, andzero failure activities. Oversees maintenance schedule, processes, and activities to prevent breakdowns before they occur instead of repairing them after the fact

What

• Foundation for reliability and continuous improvement

Role in the System

• Maintenance technicians, maintenance leadership, engineering

Who

• Reduction in breakdowns and spare parts spend

DeliverablesHow

•DTM support

•Lubrication management•Spare parts

management •Predictive

maintenance•Cost

management•Preventive

maintenance

The 8 PM CompetenciesDTM

SupportSpare Parts

Management

Lubrication Management

CSD for Maintenance

Predictive Maintenance

Preventive Maintenance

Maintenance Cost

ManagementZero Failure

Activities

• Zero breakdowns• Improved

reliability• Improved

maintenanceskills and capabilities

• Reduced maintenancespend

The Advanced PillarsBuilding on the Core

Production Control

How

• 7 Step process

•Value stream mapping•Waste

walks•Improveme

nt projects•Layered

audits•Demand

planning

• Reduce overall system cost through the elimination of waste identified within the system. To align the business offering with manufacturing execution.

What

• Maximization of the velocity of information and material flow through the process/system.

Role in the System

• Supply chain, production leadership, operators, technicians, suppliers, customers

Who

• Improve working capital/inventory, variable conversion cost, capacity utilization, floor space availability, inventory optimization

Deliverables

Quality Management

How

• 10-Step QM project implementation

•model project on model equipment defect

• A systematic methodology to achieve zero quality defects (not just fewer defects) by systematically seeking out, identifying, and eliminating root causes of ALL defects.

What

• Take processes beyond reliability to capability and the quality process from compliance to assurance

Role in the System

• Operators, maintenance, quality assurance, quality leadership

Who

• Reduction in defects, yield loss, waste

Deliverables

Process Flow Charting – Machine Zones

Process Flow Charting – Machine Parts

Quality Critical Components

Early Equipment Management

• To “design out” losses related to equipment start-up before they occur by utilizing existing measurement data & learnings.

What

• Improved reliability and stability, setting foundation for other pillar improvements

Role in the System

• Operators, technicians, maintenance, production leadership, engineering

Who

• Reduction in start-up time, losses and costs

Deliverables

How

• concept and equipment planning

• equipment design• manufacture equipment • preliminary testing• install equipment• commission new

equipment• full production

implementation

New Product Development • Cross-functional activity to provide a

continuous flow of innovative, new products

What

• To ensure a robust stream of new products into the system that creates value for the company and customer

Role in the System

• Customers, suppliers, business, research, manufacturing, supply chain

Who

• Shortened delivery cycle, high quality zero loss start-ups, meet/beat targeted costs, 100% on-time delivery

Deliverables How

• 6 Step Process• Discovery & concept

development• Product design requirements• Design for manufacturing• Adoption & launch• Scale-up &

commercialization

What is a ‘system’?sys·tem [sis-tuhm] – noun

1. an assemblage or combination of interactive, interdependent parts forming a complex whole: a railroad system.

2. an ordered and comprehensive assemblage of facts, principles, doctrines in a particular field of knowledge: a system of philosophy.

3. a coordinated body of methods or a scheme or plan of procedure; organizational scheme: a system of government.

Pillar Relationship Matrix5S DTM CSD PM FI QM PC EEM NPD

5S ● ● ● ● ● ● ● ●DTM ● ● ● ● ● ● ● ●CSD ● ● ● ● ● ● ● ●PM ● ● ● ● ● ● ● ●FI ● ● ● ● ● ● ● ●

QM ● ● ● ● ● ● ● ●PC ● ● ● ● ● ● ● ●

EEM ● ● ● ● ● ● ● ●NPD ● ● ● ● ● ● ● ●

= interaction= major impact on success

EnergyInventoryObsolescenceQuality / reworksWasteTrainingInspection & TestingMaterial HandlingPlanningPM & Cleaning DowntimeSpeed LossMinor StopsStart-up / shut downChange timeBreakdowns

NPDEEMPCQMPMFICSDDTM5S

EnergyInventoryObsolescenceQuality / WasteTrainingInspection & TestingMaterial HandlingPlanningPM & Cleaning DowntimeSpeed LossMinor StopsStart-up / shut downChange timeBreakdowns

5S

Some impactSome impact Medium impactMedium impact Major impactMajor impact Future impactFuture impact

Pillar to Loss Relationship Matrix

Pillars

Stand alone• goals• strategy• methods• etc.

Promote organizational alignment• Smash

“functional silos” such as maintenance, production,

• Quality, Planning, support, business, etc.

Control & reduce variation• Machinery• Methods• Materials• huMan• Measurement• environMent

Support & work together• interactive• interdependent

Benefits of the Pillar SystemsTangible

• safety • cost• productivity • quality• yield• capacity• training time

Intangible

• prioritization• systematic• common

language• common process• replication• morale

The Bottom Line

Performance System = Daily Management System

Changing the way we run our business and delight

our customers!