Continuous Improvement & The Learning Organisation: Collaborating To Hit Top Gear - Journey towards sustainable operational excellence
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Continuous Improvement & The Learning
Organisation: Collaborating To Hit Top Gear
Journey towards sustainable operational excellence
John de Poot
Leader Continuous Improvement
Europe
1
Heinz Global Performance System
About Heinz
The Heinz Continuous Improvement Journey
The TRACC System
The Heinz Global Performance System
2
About Heinz
• More than $10.1 billion in sales
• Three valued-added Categories
• Ketchup & Sauces
• Convenience Meals
• Infant Nutrition
• More than 30,000 employees
• >70 factories
3
World Class Products and Brands
4
Heinz Global Footprint
>70 Factories Operating Around the World
5
Heinz Global Performance System
About Heinz
The Heinz Continuous Improvement Journey
The TRACC System
The Heinz Global Performance System
6
Heinz CI Evolution
“Global
Organizational-wide CI”
Future
“Global
Supply Chain CI”
Present
“Mfg/Ops CI”
06 -09
“Expert Driven CI”
TQM 04-06
Regional WCM
Limited Engagement 02-04
Pockets of Success,
Big Opportunities to Be Better
• Regional progress
• Various improvement
programs and disciplines
However...
across all the regions
within Heinz
• Lack of global consistency
and standards on
• Major improvement improvement approaches
programs yielded many
benefits in multiple • Huge opportunity for
regions (Six Sigma, WCM aligning all programs into
based,TPM, Lean) one Global Heinz
Improvement Process
• Evidence of best
practices in many regions
8
All Sights Set on Sustaining the
Future
The challenge:
How do we continue to
meet aggressive business
growth in a stagnating
economy?
9
Key elements
Key elements
Foundational Elements Operational Excellence Elements
•People & Organization:
•Operational improvement system
– SC Vision, Mission and Strategy
– Leadership engagement and ownership
•Quality improvement system
at all levels
– Process focussed and dedicated •Supply planning process
improvement structures
– Team-based improvement •Asset reliability and maintenance system
•Process:
– One way of measuring, target setting and
•Supplier improvement system
opportunity identification across Heinz
– Standardising and sustaining results •People Excellence program
•Tools & Technology:
•Communication, visualization and
– Data Measuring reporting structure
– Management Operating Systems
•Data:
– Common set of KPI’s, definitions and
units of measureGuiding Principles for CI
• Shift ownership deeper into organization;
transfer knowledge to local level
• Evolve from a project base productivity
process to a rigorous process-based
system
• Integrate Change Management Model into
system
• Develop integrated, effective
communication process
• Use roadmap base system that’s easy to
follow at site level
• Multi-language capability / Global reach
It’s all about connecting the dots
11The road to Continuous Improvement
The road to continuous improvement is difficult to navigate due to the
complexity inherent in culture change.
• Business alignment is required to translate financial requirements
to operating indicators and to effectively prioritize CI activities
against the strategic goals of the organization
• Organizational alignment is required from the operator to CEO.
Effective alignment will streamline the decision processes and
accelerate improvement implementation
• Methodology alignment is required to effectively communicate
and deploy the appropriate tools of continuous improvement to
maximize the return
But with dedication, commitment and a well structured system, a
global improvement programme will bring a World Class operational
excellence level.Partner Selection
• Heinz Selection Team with representatives from the business
• An extensive and detailed selection procedure was executed involving >40 external
consultants working on CI programmes.
• Suppliers were evaluated and rated on their ability to provide CI Roadmap Services,
focussing on a number of specific elements
• After a first screening, 8 suppliers were invited in a RFI
• Suppliers were measured using a balanced scorecard on a number of Key Elements
for Success that were communicated in the RFI
• Based on this selection, the top 4 suppliers were selected and invited to present
themselves to the core team and were invited to complete the Request for Proposal
• All suppliers were invited to give a 2-hour presentation of their proposal to the
selection committee
• Finally reference visits to sites in Europe and in the US were made in order to see
the work they have been involved
TRACC
Global implementation support by
Competitive Capabilities International (CCI) networkMore Than a Production System; It’s
Across the Global Supply Chain Enterprise
Procurement Manufacturing Logistics BU/Customer
14Key HGPS Elements Work Together
COMMUNICATION
All elements tie back to the Heinz Mission and Values
15Develop Sustainable, Repeatable
Communications for Alignment
Strategy Sessions
Leaders Alignment &
Orchestration Blueprint
Communications Tactical
Audience Analysis and HGPS Plan Execution
Global Team Alignment Around • Distribute
Messages Messages
(by audience)
Pilot Site Workshops and • Arm
Site Planning Toolkit
Communicators
• Build/Use
Arm Sites with Critical Channels
Introductory Communication
• Manage Timing
Tools
• Begin Evaluation
Design Long-Term
Communication Plan &
Measurement
16Heinz Global Performance System
About Heinz
The Heinz Continuous Improvement Journey
The TRACC System
The Heinz Global Performance System
17CI in perspective
Collaborative
Learning
organisation
enabling
Systemised
organisational
Excellence
Codified
Functional
Excellence
Expert Based
Improvement
Learn as
you go
TimeTRACC enables you to • Assess your operations’ current best practice maturity • Create a clear, coordinated, logically-sequenced best practice implementation road map and measure your progress against that road map. • Collaborate with specialists to create internal expertise to guide implementation teams on what good practice looks like and provide consistent ‘WHATs’ and ‘HOWs’ • Train operational teams, build competency and engage people at all levels of the organization in various locations • Create common understanding & alignment between plants on best practices and share knowledge across the organization
Where are you at this moment?
WORLD
Operational
CLASS
excellence
systems must
show results by Organisations unable to
sustain performance
improving hard
PERFORMANCE
KPIs or they will
lose support
before they are Defining what ‘good’ looks like and
embedded in the monitoring best practice implementation
culture ensures a focus not on current
Organisations with
potential
performance but on long-term, sustainable
Poor performing
organisations market-beating performance
PRACTICES AND SYSTEMS
PRACTICES
1 2 3 4 5Above the line and below
Operating/Work Practices
Standard work instructions, maps, loss and waste analysis,
Above the line
5 Why analysis, one-point lessons, standard operating procedures,
Readily Visible quality control practices, etc.
Enabling management systems
Below the line Practices measurement framework, competency
Not visible but framework, organisational design, systems
critical to reinforcing behaviour, knowledge management
successful processes, incentive/empowerment
framework, etc.
implementation
Vision and Commitment
Framework, understanding,
philosophy
leadership, etc.A complete framework
Functional process improvements
must be integrated into the overall
Continuous Improvement System to
ensure functional priorities do
not sub optimize organizational
priorities.
World Class Competitiveness
Business Centered Maintenance
Administrative Excellence
Autonomous Maintenance
Set-up Time Reduction
Process Flow
Supply Chain
Quality
Teamwork 5S Visual Performance Measurement Focused Improvement
Environment, Health and Safety (EHS)
Leading and Managing Change
Business and Operations StrategySustainability, transformation, integration
…..more than just tools…….
sustainable implementation requires that the
tools integrate into an operating system and
are bound by clear management principles
into a complete framework. Operating Practices “A companies’ culture is a result
and Tools of its management system”
David Mann
“Creating a lean culture”
Enabling Systems
Sustainability
Transformation
Principles
…..an integrated approach…….
Implementation cannot be done
functionally. Each new component of
change becomes “The way we do work”
Incremental sequence of implementation ….
Transformational, behavioral based change
1 2 3 4 5
requires an evolution of the organization and its
people. The implementation approach must
incrementally develop the maturity of the
organization.Results are integrated over multiple organizational
dimensions to generate a consolidated maturity profile
TRACC provides the ability
to benchmark plants on
common metrics and to
monitor progress of each
plantAn integrated action plan
Implementation Action
“WHAT”TRACC Implementation example
Phase 2 – Stabilisation and Phase 3 – Ownership and Phase 4 – Best World Class
Phase 1 – Preparation
Awareness Improvement Practice →
MANAGING CHANGE
Establis
Establi Redesi
LEADING AND
Formula Broade h Identify
Establish Build a Underst Assess Develop Develop sh Develop Manage gn Train Enhance
Form a Analys te Train Recogni n Manag Recruit Entrenc Develop Review Strategi & Manage Encoura
Need for Shared and and Leaders Broad Implem Detailed Ensure Performa Releva New Sustain Leadersh Incentivise Anticipat Drive Encoura Develop
Steering e Key Commu Coachi se Plan Stakeh e and h the Competenc Organi- c Levera Internal ge
Change - Vision Impact Manag hip Plan en- Impleme Early nce nt Work the ip Performan e the Innovati ge Resilien
Committ Stakeh n- ng Achieve Roll-out older Learnin Retain New y sational Human ge New Know- Self-
Assessme for of e the Capabili for tation n-tation Wins Effectivel Roles & Practic Vision Capabilit ce Future on Diversity ce
ee olders ication Skills ment Involve g Talent Culture Framework Design Capital Oppor- ledge Mastery
nt Change Change Risks ty Change Structu Plan y Structu es y
Plan ment Measur tunities
res re
es
Empow
Clarify Train Refine
IMPROVEMENT
Initiate Review Formali Formalis Formali Stream- er
Busine Establis Loss Identify Train Team Review the Select Strength Identify Select Confirm Measur Launch
FOCUSED
& Track the se Identify e se Tiers Entrenc line Teams Share
ss h Daily and Improv Improve- in Meetin Loss Standar and en Black and Custom e in Black
Improv Improv Busines New Project of h Problem to the
Improv Operat’l Waste e-ment ment Basic g and -dise Train Problem Belt Train er Statisti Belt
ement ement s Project Benefit Proble Solutio Solving Make Learnin
e-ment Review Analysi Project Facilitato Proble Structu Waste OP’s Green Solving Project Black Require cal Project
Project Strateg Process s Reportin m ns Meeting Improv gs
Strateg (MDT) s s rs m re Analysi Belts Skills s Belts ments Terms s
s y es g Solving s e-
y Solving s ments
Develo Train Start to Initiate
Define Develo Impleme Train Introdu Train
Impleme pa Train the
TEAMWORK
Decide Train Establis p Review nt Face- Review Develop Update Distribu Interactio
Team Train Train Start Review Re- Skills the Team the ce Team
on Constit the ha Build nt Team Team Trainin te n with
Leader Team Team Team Team Team to-Face Team Cross- in Inter-
Team ute the Team Meetin the Shift Team organis Matrix Team in Progres Procedur g Leader- Customer
Respon Coache in Meetin Leader Meetin Shift Leader Trainin person
Structu Team Leader g Team Handov Work e Work & Leader Comm s es Plans ship s&
- s WCM gs Contra gs Handov III g al Skills
re I Area er Trainin II un- Tasks Suppliers
sibilities ct er
g Plan ication
Prevent Review Allocat
Train Introdu Initiate Implem Ensure
Do Make Reappe the 5S Take Take Review Take
Launch Take Team Train Take ce Do Cleanin ent Inspecti e Refine
Clear- 5S arance Plan to New New Formali 5S Plan Impleme 'After'
the 5S ‘Before’ Leaders Work ‘After’ Manag Deep g Cleanin on Storag Set the
up Improv of Focus 'Before' 'After' se the to nt Visual Storage
Cleanin Improv g during e Limits 5S
5S
Promoti Photo- in Teams Photo- e-ment on Photo- Photo- 5S Audit Focus Controls Photo-
Exercis e- Unneed g e- Schedul Cleanin Locatio Audit
on graphs Managin in 5S graphs Walk Cleanin graphs graphs on Site graphs
e ments ed ments e g ns
g 5S abouts g
Items
Train
MEASUREMENT
PERFORMANCE
Define Perfor
Develop the Set Develop Create Introduc Improv
the Install Train Expand Perform Impleme Balance m Automa
Company Team Team the Review Ownersh e Let the e Expand
VISUAL
Team’s Visual the Performan Internal nt Short the Externa te
Balanced Leader Perfor- Measur Performan ip of Feedbac Team Access the
Key Score Team in ce Bench Interval Team's l Data
Scorecar in mance e-ment ce Targets Score k Review to Team's
Indicator Boards VPM Indicators marking Control Scoreca Bench- Captur
d Facilitati Targets System Boards Sessions Targets Infor- Horizon
s rd markin e
ng VPM mation
g
BUSINESS CENTRED
Widen Compil
Create Develo Introdu Introduc Refine Do Implem Refine Identify Integrat Multi-
Plan for Analys e
MAINTENANCE
Do Do 5S Create Establis Clean, Ensure Formali Scope Control Review Potenti Roll-out Extend e the Skill
Aware- p an ce e the Restore Fast ent Maint.
Asset Facilitie Windo Identify h Work Start to Inspect Critical se of Techni Maint. 'Pit Reduce e Checkli
ness Asset Root Basic Asset Critical TRACC Prevent Busine al Fast Compon Compu Mainte-
Care s ws for Equipm Plannin Measur and Spares Trainin Root cal Facilitie Stop' Materia Chronic sts for
of Care Cause PM Care Equipm RCM . ss Improv TRACC ent ter nance
Trainin Shut ent g and e KPI’s Tag Availabil g Cause Infor- s and Mainte- l Costs Proble Maint.
Asset Strateg 5S Analysi Schedul Strateg ent Analysi Mainte- Proces e- RCM Life System Person
g Workshop Work Control Equip. ity Plans Analysi mation Tools nance ms Prevent
Care y s es y s nance ses ments s nel
s ’n
AUTONOMOUS
MAINTENANCE
Plan Train Perfor Give
Introdu Develop Implement Develop
Perfor Clean the m Make Operato Implem Implement
ce Addres Do Do Lubricati Autonomo Do Inspecti Do
m and Team the Cleanin Develop rs ent Autonomo
Regular s the Step 1 Step 2 on us Step 3 on Step 4
Initial Tag in AM Clean g SOP’s Technic Visual us
Cleanin Tags Audit Audit Schedule Lubricatio Audit Schedul Audit
Audit Exercis Principl and Easier al Controls Inspection
g s n es
e es Tag Training
Identify Separa Compil
SET-UP TIME
Focus Train Transfer Organi Addres
REDUCTION
Flexibili Analyse Measur Implem Docume te e Improve
on Teams Respon- se s Introduc
ty Train Product’ e and ent nt Internal Checkli Producti
Losses in Set- sibility Change Improv e Visual
Require Facilitato n Display 5S on Set-up and st for on
and up Time to Parts e-ment Producti
-ments rs Planning Set-up Set-up Procedu Externa Externa Planning
Prioritie Reducti Operato and Sugges on Plans
for the Process Times Items res l l Process
s on rs Tools tions
Site Tasks Tasks
MANAGEMENT
Refine Integrat
Develo Identify Impleme Deal with Confir Train Implem Introdu Extend Refine
QUALITY
Define Compil Train Review Qualify Custom Launch Automa e
pa Major nt Non- m Specialis Assess ent Impleme ce Implem Proces Introdu Certify Supplie
Quality e Teams Standardi Quality the Update er Improv te the Quality
Quality Quality Quality Conformi Custom ts Process Statistic nt Supplie ent s ce Key r
Standar Quality in se OP’s Perfor Measur Quality Require ement Proces Infor-
Strateg Proble Control ng er Statistica Capabili al Operato r Quality Capabil Operat Supplie Spec’s
ds Plans Quality m-ance e-ment Plans ments Project s mation
y ms System Products Require l Process ty Process r Control Quality Audits ity or SPC rs Throug
Targets System Thro s Control System
-ments Control Control Plans Studies h QFD
QFD s
HEALTH AND SAFETY
ENVIRONMENT,
Train Design
Launch Share
Commu Establis Develop Workforc Address Formali Implem Establis Expand Train Impleme Assess to Organi-
Assess Develop EHS Develop Identify Impleme Strengthe Train Sharing Learning
-nicate h EHS SOP’s for e in Contract se ent EHS h EHS Inciden Introdu Assess on nt Contract Minimis sational
Present EHS Meetings an EHS and nt EHS n Team Work EHS and
to the Structur EHS Regulator or Incident Audit Manag t ce Self- EHS Culture Culture or e Error
State of Correcti & Scoreca Manag Improve Involveme Teams Infor- Accom-
Workfor e& Complian y Compe- Investi- Progra e-ment Investi- Audits Culture Change Change Manage Human Proofin
EHS on Plan Suggestio rd e Risks -ments nt in EHS mation plishmen
ce Resp. ce Complian tence gation m System gations Tools Projects ment Impact g
ns ts
ce sDevelop WCP expertise and specialists…
action
learning
…sustain performance improvement by
not only embedding a continuous
improvement culture, but also developing knowledge
company experts and specialists who in transfer
turn share and expand organisational
knowledge…
AND IN A VERY COST EFFECTIVE WAY
workshopsFocused Improvement Road Map to Stage 2
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5
Fire-Fighting Loss Awareness Waste Reduction Waste Pro-Active
Elimination Improvement
Focused The Failure
Progression
Improvement Improvement of Recognition
towards Six
Readiness Approach Suggestion and Reward Detailed
Sigma
Check Schemes guidance exists
for each Stop
‘n’ Think and
Implementation
Action
Clarify the Establish Perform a Initiate and Train Work
Identify Profit Train Review
Business Daily Loss & Track Teams in Basic
Improvement Improvement Problem- Meeting
Improvement Operational Waste Improvement
Projects Facilitators Solving Structures
Strategy Review Analysis ProjectsDetailed implementation guidance
‘What’ and ‘How’
Implementation Action
“WHAT”
Implementation Action
“HOW”TRACC facilitates sharing of practices
…systemic learning… standardise and codify…
100
90
80
70
60
50
40
30
20
10
0
1 2 3 4 5 6 n Multiple plant
Systemised collaboration to leverage internal capability and learning
across multiple plantsFinding best practices by comparing sites on
performance and practice
Scatter plot of
sub-levels
• All sub-level points
are presented in
summarised version
• Details pop up when
cursor is moved over
the dotsHeinz Global Performance System
About Heinz
The Heinz Continuous Improvement Journey
The TRACC System
The Heinz Global Performance System
33HGPS: Our Story At A Glance
HGPS is our improvement roadmap empowering all
employees to deliver sustainable, world-class performance.
• HGPS is a global, company-wide effort
aligned with our Heinz strategies that will help Everyone must
us deliver on our goal to become world-class understand and own
• We’re empowering our entire workforce to their role in our
drive their own improvement journey to be world-
• Implementing HGPS will require employee class…and that takes
momentum over 5-to-7 years with multiple
phases and rollouts, but continuous improvement
consistent, clear
is an ongoing process that will never end communication
• We’re standardizing practices and improving
performance standards in ways that require
significant behavior change
34Where We Are Now:
Establishing Global Baseline
25 sites to be started in First 15 Months
Deployed-to sites
Future deployed-to sites
• Different countries, different cultures, different languages, different businesses
• Share learnings from every site : improve the implementation
• Create ownership, develop internally : Train the Trainer
• Lots of experiences and discussions : stick to the program and structure
35Top 10 Keys to Success for HGPS 1. Executive leadership ownership and engagement 2. Third-party relationship with CCI 3. Global Governance model to drive compliance 4. Leverage high-impact communication plans and tools to drive alignment, awareness, action 5. Site level ownership 6. Line level ownership by operators 7. Set goals and measure 8. It’s a journey, not a race! 9. Work – and trust – the process 10. Patience, patience, patience 36
Thanks!
37
37Questions?
For more information please visit: www.blomconsultancy.com
or mail info@blomconsultancy.comGlobal TRACC presence Some TRACC sites TRACC global offices
For more information
• Contact us on www.etracc.net
• Or contact:
Ton Aerdts:
• Office: +31 (0)499 – 42 79 79
• Mob.: +31 (0)653 - 89 69 06
• E-mail: ton.aerdts@BlomConsultancy.com
Also visit our free best practice sharing
community:”What does Good Look Like”
Through www.blomconsultancy.comWGLL homepage
Control instructions are clearly displayed
TRACC Reference: TRACC stage: 3
Valve indicator showing open position Autonomous
maintenance TRACC
Implementation
action: 3IA6
Good practice:
Pipework color coding standard • Implement visual controls
Flow direction indicators and pipe content labels
Why this is good:
• It is easy to see what is abnormal (incorrect)
• Operators do not need to know exact
pressures, temperatures etcYou can also read
