Creating a Continuous Improvement Culture in Distell DATE: 19 September 2014 PRESENTED BY: Adam Shaw Kurt Naldrett 1
Getting started with continuous improvement is easy. Keeping it going is hard. Although we speak of long-term improvement, we tend to opt for short-term actions, and focus more on "improvement" than the "continuous". A wise old farmer once said: If you want to prosper for a year, grow rice. If you want to prosper for a decade, plant trees. If you want to prosper for a century, grow people. CI is powered by people, their ideas and their drive to make things better. We all started out as children. By nature, children are inherently curious and creative. We gradually lose this trait as we are taught to fit within society, gain responsibility and "mature" into adults. It is never too late to change. Within organizations, we need to deliberately make a safe place for creativity and curiosity. The one who says "it cannot be done" should not interrupt the one doing it. By Jon Miller - Kaizen Institute By Jon Miller - Kaizen Institute
Who are we? 3
We Are: A leading producer of wine, spirits, ciders & other alcoholic beverages, both locally and internationally.
Company Snapshot Key 2014 numbers R17.7 bn in total reported revenue an increase of 12.8% over FY2013 620 m litres sold an increase of 3.1% over FY2013 17.71% R2.7 bn return on shareholder equity reported operating profit an increase of 22.8% over FY2013 R2 bn normalised operating profit an increase of 8.1% over FY2013
Value Chain Map Key Supplies Primary Plant Bottle Wash Secondary Plant Key suppliers identified. Local and international suppliers Ingredients are delivered to fermentation and distillation plants. Bulk is transported to secondary plants. Returnable Bottles washed. Bottling and packaging operations. Finished products are transported to distribution centres and customers. Locations (DC, TX & Export) Storage of finished product for sale to customers. Customers Customers are serviced through multiple service offerings: Direct Delivery Normal Delivery Self-Service Call and Collect 6
Our Footprint Our global footprint United States of America Brazil Scotland United Kingdom France Ghana Nigeria Angola Namibia Botswana South Africa Kenya Tanzania Zimbabwe Swaziland Mauritius Singapore China Taiwan We By the Are: numbers A Global Player. R30.6 bn market cap 1 Burn Stewart ~5300 Distillers employees Bisquit 11 wineries Africa Operations 6 distilleries Exporting to 118 3 single-malt countries in Africa, distilleries Europe, North & 19 SA sales South offices America, Asia and Australia 8 international sales office 1 As at 22/08/2014
How did we get here? 8
Over the last 3 years, we have embarked on an incredible journey to entrench a culture of Continuous Improvement within our Business. We would like to share our story
Time/Resource Requirements 2011/2012: Traditional BI Strong Operational CI focus Hi Bulk Losses Improve Throughput Low Loss Reduction Cost Improvement Revenue Improvement Value Focus
Time/Resource Requirements 2012/2014: Shift in focus BI moves across the Value Chain, and starts to drive strategic initiatives Hi Productivity Upshot Revenue Management African Promise RM SFE Inventory Reduction Merchandising Procurement MDB WOW A3 DB BI has taken on a dual role: High impact strategic projects Training of CI skills within the business Teach a man to fish Lo Cost Improvement Revenue Improvement Value Focus 11
BI Vision UNLOCK VALUE BY CONTINUOUSLY CHAMPIONING A CULTURE OF QUESTIONING WHY AND HOW WE DO THINGS; AT ALL LEVELS OF THE BUSINESS BURN THE HOLY COWS Holy Cows make Great Hamburgers
Back in 2012: Discussions with senior leaders with in Distell identified 4 main areas of concern within our business: Problem solving skills Project Management skills Data analysis skills Island syndrome The Distell Belt programme was launched to address these concerns in a practical manner.
Our Vision Vision for the Distell Belt Programme 1. Create a Culture of continuous improvement 2. Train the Skills required to resolve any problem regardless of complexity 3. Include Soft skills to enable successful project completion 4. Challenge the Status Quo
What we Needed: 3 pronged approach: Incremental Improvement A3 Problem Solving Breakthrough Improvement Distell Belt Excellence Centres Master Distell Belt Skills: Lean and Six Sigma Data Analysis Project Management Soft Skills Trained in a practical manner
Programme Structure 8 Trained Leadership Active & Visible Leadership & Support of all Continuous Improvement Efforts 976 trained A3 Teams Business Improvement BIMs Support MDB Training of DB & MDB Support training of A3 25 Trained Master Distell Belts Plan: 100 Cross functional projects Support & Mentor DB Support training of DB Breakthrough Improvement 120 Trained Distell Belts Plan: 500 CI Projects Support training of A3 Coach & Mentor A3 Teams A3 teams A3 Teams A3 Team Plan: 2500 Day to day problem solving Incremental Improvement
Our Training Philosophy
Creating the Culture Creating Critical Mass Incremental Improvement Like a flywheel, the business gathers speed and momentum from a series of small pushes and eventually breaks through to a period of sustained performance. - Jim Collins Good to Great - Jim Collins
Training Model Train Each section of the programme starts with theory training Plan Planning session on how the theory & tools can be applied to a training project Apply Interval between training sessions to allow for project execution Project Mentoring Sessions Review Project reviews
Training Model Training follows the format: Have fun. Explanation of the concepts / tools Group exercise to practice the concepts / tools Report back on exercise Q&A Session Further examples Training is designed to maximise participation & discussion. Ample opportunity exists for the candidate to practice facilitation, leadership and presentation skills.
Training Model This course is: Not a Spectator Sport Hard Work Commitment Challenging the Status Quo
Training Model Reporting: Project presentation at each training phase Financial impact sign off with controller Report back to Project Sponsor Project working documents BI Final Project Report MDB DB A3
Training Model Mentoring Mentoring sessions between training phases Mentor allocated by Trainers Mentor is either a BI trainer, or a certified Master Distell Belt
Training Model Certification Completion of Certification Project Demonstration of tool & technique expertise Minimum of 75% exam score Endorsement by Trainer & Mentor
The best way to learn to ride a bicycle is to get on and start riding. Similarly, the best way to learn problem solving is to solve a problem
By the way, if its not in your project file, you didn t do it
Incremental Improvement Problem Solving the A3 Way 27
A3 Problem Solving A3 methodology was piloted at one of our bottling plants during the first half of 2012 Approach: Training session with one Mini-Business Team to prove concept Training session with Management Team Training sessions with Mini Business Teams throughout site
Feedback and Learnings We interviewed ˮ Sharief Gallie (Plant Manager) from Bergkelder on his experience in utilizing the A3 Problem Solving Methodology Entrenching A3 Part of daily operations Built into monthly management reporting Built into maintenance reviews Built into job descriptions and employee performance contract Top down approach management first Interesting fact about Sharief: Certified Distell Belt Soon to be certified Master Distell Belt
A3 Problem Solving Subsequent Roll Out A3 Road show to Other Bottling Plants Primary Production Facilities Transactional Roll Out Including: HR IT Marketing Quality Management Sales New Product Development Finance Currently, 976 people trained out of a target of 2500
A3 Progress Included in Distell Belt & Master Distell Belt Curriculum Built into Quality Management System as the Standard problem solving methodology Standard reporting format for all improvement projects BI MDB DB A3
Built into QMS System 1. Select A3 2. Select Site, Region details 4. Select details relating to the problem 3. Select Division
Breakthrough Improvement Continuous Improvement using the Distell Belt Method 35
Instead of contracting with a team of consultants, we looked at many continuous improvement projects with a view of: What Continuous Improvement tools are most commonly used What tools are not commonly used but need to be included How do we expect projects to be managed What soft skills do we need to run projects successfully Etc Problem Solvers Six Sigma Change Lean Project Mgt Coach Leaders Etc Distell + Belt = Distell Belt
Distell Belt & Master Distell Belt Mentoring Six Sigma Facilitation Lean Leadership A3 Problem Solving Prince2
Curriculum Distell Belt Six Sigma Green Belt Integrated Lean tools A3 Problem Solving Project Management Basics Planning Understanding Change Master Distell Belt Six Sigma Black Belt Lean Practitioner A3 Problem Solving PRINCE2 Practitioner Planning Leadership Change Management Coaching & Mentoring Facilitation skills Cross Functional Exposure
Roll Out 39
Roll Out Distell Belt Started Apr 2012 3 4 Waves per Year 14 Training days per wave 12 15 candidates per wave 9 Waves Completed 85% Certification Rate Master Distell Belt Started Jul 2013 2 Waves per Year 30 Training days per wave 12 15 candidates per wave 2 Waves Completed 88% Certification Rate
Roll Out Accelerate Training Projects Coaching & Mentoring Distell Belt Mentoring Programme Directing during training project Coaching & support during second and subsequent projects Use of MDB resources to coach & mentor other DBs
Roll Out Active & Visible Sponsors Project Reviews Knowledge Sharing & Communication
Next Steps 43
Design for Six Sigma Kaizen for Business Processes On Line Training for A3 Roll out to International Operations Accreditation through International Certification bodies
Lessons 45
You Cannot PowerPoint yourself to Continuous Improvement Training is the first step and the smallest step The real learning happens in the project Competence is not demonstrated through an exam pass Make it Practical Children learn by repetition Adults learn by doing stuff, so make them do stuff! If your training is one way lecturing, don t be surprised when it FAILS
Don t forget the Soft Skills You can give your CI guy the best technical skills but if he cant: Lead Motivate Coach Mentor Teach Communicate Present Etc Don t be surprised when the project fails.
Sell your programme at every opportunity Your senior management wont buy into your programme just because you think its great. You need to sell: Benefits of the programme WIFM Project progress Success Stories ROI Let the word spread Make a big thing of your candidates certification Make them feel special (gifts, speakers, etc.) Let them nominate their candidates
Select the Right Candidates for the Programme (Especially in the Beginning) Don t select people who have too much spare time Select your indispensable people Select people who want to do the programme Let word of mouth spread Go cross functional in your training
Should you wish to discuss our program in more detail, feel free to contact us at: Adam Shaw Email: aeshaw@distell.co.za Tel: 021 809 8261 Kurt Naldrett Email: ktnaldrett@distell.co.za Tel: 021 809 8181
WHO HAS THE FIRST QUESTION???