Lean in Henkel Adhesives, Europe Vladimir Martinenko, Manager Lean Enterprise Europe CEE South & Central Asia and Caucasus 1. Kaizen Congress in Serbia Belgrade, 28 th of Sept. 2017
Agenda 1. Did you know about Henkel 2. How Continuous Improvement programs work in Henkel... 3. What does it mean to be Regional Lean manager... 2
Did you know that Henkel is the world's number one adhesives producer? that Henkel sells detergents for around 25 billion wash loads per year? that every second, more than 20 hair colorants from Henkel are sold worldwide? 3
Who we are Leading positions in consumer and industrial businesses Adhesive Technologies Beauty Care Laundry & Home Care 4
Who we are Henkel at a glance 2016 More than 50,000 employees from 123 nations Around 18.7 bn sales, +3.1% organic sales growth 3.2 bn adjusted 1 operating profit (EBIT) 42% of our sales generated in emerging markets 171 manufacturing and 22 major R&D sites around the world More than 140 years of success 1 Adjusted for one time charges/gains and restructuring charges. 5
What guides us Leadership in sustainability Our sustainability strategy: Achieving more with less Ambitious long-term goal for 2030: Triple value in relation to our footprint (Factor 3) Interim target 2010 2020: Increase our overall efficiency by 75% External recognition: Leading positions in various national and international sustainability ratings and indices. 6
Status of our sustainability targets Our progress toward our long-term goal Factor 3 1 Compared to the base year 2010. 2 Waste footprint of our production sites, excluding construction and demolition waste.. 7
Henkel Srbija Henkel plant in Kruševac Administrative centre in Belgrade Henkel Plant in Inđija 2002. 2008. 2007. 8
Key Developments 1839 Founded as soap & candles factory 1927 Cosmetic production started 1970 First cooperation with Henkel 2004 Production of building adhesives started 2011 Name changed to Henkel Srbija 1924 Name changed to Merima, largest soap producer in Balkan region 1961 Powder detergents production established 2002 Bought by Henkel; new name: Henkel Merima 2007 Adhesive production moved to Indjija 9
Henkel Srbija Izvozi na 35 tržišta Albanija Austrija Bosna i Hercegovina Bugarska Hrvatska Mađarska Makedonija Nemačka Crna Gora Poljska Rumunija Turska Ukrajina I druga 55 miliona potrošača 10
Agenda 1. Did you know 2. How Continuous Improvement programs work in Henkel... 3. What does it mean to be Regional Lean manager... 11
Development of Lean Manufacturing from the KAIZEN- era at Toyota to HENKEL today 1950 1980 1991 1992 since since 1997 1998 2003 2006 2007-2008 2009-2011 2013 2014 future KAIZEN era starts at Toyota KAIZEN translated into English Recognition of productivity differences of up to 40% between Japan and Europe/USA Start of KAIZEN in the Western world Confirmation of the success factors and methods in various industries Different Kaizen activities Louviers Düsseldorf Winsford Since 1998 Henkel successfully implements Lean principles Introduction of Site Excellence Introduction of TOPP in Heidelberg Roll out of g4e Düsseldorf Dublin Hannover Roll out of g4e Montornés Schönbach Caleppio Casarile Cerano Scheemda Integration of SixSigma in g4e Global Alignment of Continuous Improvement Initiatives & Standards in Adhesives Operations (AO) Introduction Lean Enterprise in AO Global Alignment of A&B&L Transformation to Henkel Production system HPS HPS Henkel Production System 12
Henkel Production System Aligning A, B, and L Across Henkel Today A B L Lean Enterprise Future HPS Henkel Production System Create a standard operating system for the Henkel Supply Chain and Operations based on Lean principles that will accelerate performance improvements and create customer value 13
Henkel Production System Standards Standards Standardized work Visual management 5S Risk based project selection Value stream mapping CI workshops Problem solving Quick changeover Autonomous maintenance 14
Henkel Production System Standards Additional in Adhesive Technologies Standards Control Plan Error Proofing Management of Change Statistical Controls FMEA OEE Six Sigma Pull System 15
Who we are Adhesive Technologies 8,961 m sales +2.8% organic sales growth 1,629 m adjusted 1 operating profit (EBIT) 30% innovation rate 2 >80% of our sales generated with our top 10 brands 1 Adjusted for one time charges/gains and restructuring charges. 2 Percentage share of sales generated with new products launched onto the market within the last five years. 16
Adhesive Technology Plants Europe (52 Plants) Valkeakoski Headcount per Site > 100 51 100 < 50 Tallaght Ballyfermont Winsford Westerlo Antwerpen Epernon Wehr Villefranche Hernani St. Neots Montornes Hannover Porta Westfalica Unna Scheemda Drogenbos Düsseldorf Casarile Norrkoping Heidenau Norderstedt Uljanovsk Staporkow Vysgorod Schönbach Dzierzoniow Engels Heidelberg Balakleya Bopfingen Környe Rosnov Oleshky Erlinsbach Campia Zingonia Lviv/Mikolaiv Stavropol Indjija Pantelimon Caleppio di Settala Pärnu Wrzaca Bileca Tartu Zaslavl Mirovjane Tosno Kolomna Tbilisi (Georgia) Chelyabinsk Novosibirsk Kapshaghai (Kazakhstan) 17
Lean Enterprise Europe - Management Team 18
How we are doing Lean? Objectives of Lean Enterprise Europe Why? We want to coach, train and develop people We want to improve all key metrics How? We want to establish a system of improvement based on lean principles and involvement of all employees We want to focus on waste elimination to generate customer and shareholder value 19
Henkel Production System Tie-in to Overall Strategy End-to-End Supply Chain 20
LE Europe 2016: Short facts Team lead: 1 Workforce: 8 Sites in Europe: 52 Workshops 50 workshops 4% 82% 14% VSM CI WS Invest workshops in 26 sites 444 travel days 3 Six Sigma trainings + support in 460 additional local workshops > 1500 participants reached 21
Impressions of Lean workhops Liofol workshop, Düsseldorf (Germany) VSM workshop, Villefranche (France) Significant productivity increase and space reduction possible: 2 floors instead of 3. The target on productivity increase by 10% can be reached by the improvements found. AM & HPS leadership workshop, Krusevac (Serbia) QCO workshop, Heidenau (Germany) It was a great workshop across businesses. Time variances of 25% - Why does everyone do it so different? 22
Agenda 1. Did you know 2. How Continuous Improvement programs work in Henkel... 3. What does it mean to be Regional Lean manager... 23
What does it mean to be Regional Lean manager? Knowing different people and Technologies Sharing of Best Practise Good ratio between physical and virtual meetings Intensive usage of new ways of communications, networks DIVERSITY per location, technologies, nation LONG DISTANCES Belgrade Novosibirsk Different sub-culture Way of leadership Language barrier Travelling (time, money ) Virtual meetings Recognition taking them out of their normal work Celebrating small wins MOTIVATION OF PEOPLE WIIFM Additional activity - > overload? Actions and Result belong to local team! GEMBA, GEMBA, GEMBA... Work not harder, but smarter and safer EXPECTATIONS Savings, savings, savings 24
AO Europe Lean Enterprise team Change is the only constant. - Heraclitus 25
Thank you!