Driving Competitiveness. Delivering Growth and Sustainable Jobs. 29 May 2013 Dublin Castle, Ireland

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1 Driving Competitiveness Delivering Growth and Sustainable Jobs 29 May 2013 Dublin Castle, Ireland

2 Driving Competitiveness at SteriPack Cormac Kinahan

3 BRIEF INTRODUCTION TO STERIPACK

4 Established in 1994, now with 4 facilities Clara, Ireland 10,000 sqm Wroclaw, Poland 3,500 sqm Lakeland, Florida 5,000 sqm Kuala Lumpur, Malaysia 6,500 sqm

5 What we do? SteriPack Medical device producer Sterilisation Hospital Patient Customised flexible packaging with breathable layer

6 Our Core Activities Medical Packaging Contract Manufacturing Laboratory Testing

7 DRIVING COMPETITIVENESS AT STERIPACK

8 Grow our business Safe Working Environment Best Service Highest Quality Skilled Best Motivated Service People Lowest Cost

9 What do we need to do? Improve faster than our competitors Grow faster than our competitors Innovate faster than our competitors

10 How? Lean Using Lean Principles to improve everything we do

11 Have been applying Lean since 2005 Lot s of successes. but

12 So What exactly does Lean mean?

13 Origin of the word

14 It s not the tools

15 Lucky spin or favourite tool syndrome

16 It s not about heroes, you need everyone involved

17 It s not in the books

18 It should not be complicated

19 It should not create confusion

20 It s not about the latest buzzword

21 Back to the source

22 What is Lean? Rapid recognition & resolution of problems Create healthy tension Raise sensitivity to abnormality Engagement & empowerment of employees Increase capacity for problem solving

23 Clear Expectations 1. What is the standard or expectation? 2. Is it clear? 3. Does everyone understand it? 4. Is it followed?

24 System thinking If you can't describe what you are doing as a process, you don't know what you're doing. It is not enough to do your best; you must know what to do, and then do your best. -W. Edwards Deming

25 What does that mean for SteriPack? Goal Question To answer we need.. Clear expectation What do we need to achieve? Clear targets Aligned to business needs Standardised processes

26 What does that mean for SteriPack? Goal Question To answer we need.. Clear expectation What do we need to achieve? Clear targets Aligned to business needs Standardised processes Clear, visual performance How do we know we are achieving it? Visual workplace Visual metrics Visual standards

27 What does that mean for SteriPack? Goal Question To answer we need.. Clear expectation What do we need to achieve? Clear targets Aligned to business needs Standardised processes Clear, visual performance How do we know we are achieving it? Visual workplace Visual metrics Visual standards Effective response What happens when we are not achieving it? Who responds? Meeting structure Escalation process Support team skills

28 What does that mean for SteriPack? Goal Question To answer we need.. Clear expectation What do we need to achieve? Clear targets Aligned to business needs Standardised processes Clear, visual performance How do we know we are achieving it? Visual workplace Visual metrics Visual standards Effective response What happens when we are not achieving it? Who responds? Meeting structure Escalation process Support team skills Reflection to improve What have we learned? What is the opportunity for improvement? Practical Problem Solving Improvement projects

29 Annual strategy sessions Understand the gap, create tension to improve Ultimate Goal Long term strategy Driven by business needs Hoshin plan Weekly structured meeting looking at performance trends Clear tracking of actions Improvement Target Improvement challenge informed by knowledge of current process capability Strong Supervision Structured daily meeting Close monitoring of performance to target Understand gap Rapid response Current Standard Actual Performance Need clear standards Need clear targets Current performance must be easy to see Clear Live if possible

30 Changing the way we think about our organisation Traditional thinking Lean mindset Problem Solving Directive Hierarchy based organisation Supportive Value Adding Problem Solving Supporting organisation Value adding

31 Clear expectation Schedule now used to drive discussion at all meetings, creating clear expectation at supervisor and support team level

32 Visual Performance: Abnormality highlighted creating focus and tension Focus Tension Abnormality clear Right problem, right priorities

33 5 mins 15 mins 30 mins Live Issues: First priority is the effective response when the issue occurs Identifying problem Lane not working Op tries to fix Need help Sup called to m/c Need help Sup calls support to m/c Need help Escalate to manager level Can do Can do Can do Can do Action agreed Process restarts Team agrees on actions needed and sets priorities Eg. Limp on to break Hand hold equipment Take m/c down and fix (now or later) Reflection What do we learn from issue? Practical problem solving session on larger issues Leading to possible strategy changes.. Change PM schedule Training Spare parts Etc..

34 Effective Response: Meeting structure designed to ensure right issues are addressed OEE SHEET Can do Shift Walkaround Shift handover Need help Daily Meeting Support team Plant managers meeting

35 Effective Response: Agenda for daily support team meeting Daily team review Timing: Location: 15 min daily Production Floor Office Purpose: To monitor day to day performance and agree necessary actions Agenda Safety issues Customer complaints Shipping condition Missed shipments Incomplete shipments Schedule achievement Plan vs actual Problem escalation Issues from walkabout Review actions due Meeting rules On time Issues identified, discussion off-line Attendees Production manager Shift leader QA Planning Engineering Shipping Input Data regarding issues from last 24hrs Output Agreed actions on action board

36 Reflection: Practical problem solving Reflection must address: Why did it occur, so that we can prevent re occurrence How quickly did we recover, so that we can find ways to improve our capability

37 Overall results achieved with the help of Lean Throughput time Reduced by 80% Lost production time Reduced by 30% Productivity Business volume has doubled with headcount increase of 30%

38 Finally the roles within the organisation Frontline Lean mindset Value adding Meet standard Continuous Improvement Innovation Support team Meet standard/ immediate Site Leadership Continuous Improvement/ Challenge existing Innovation/ future challenge

39 THANK YOU

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