Hilti Global Logistics Organization

LCS Impact Award: Engaging people and creating value through lean upskilling

Background

Hilti stands for quality, innovation, and direct customer relationship. With more than 32,000 employees in more than 120 countries, the family-owned Hilti Group supplies the worldwide construction and energy industries with technologically leading products, systems, software, and services with the sole purpose of making construction better. Continuous improvement is implicit in the company purpose and the company has a caring and performance-oriented culture as a strategic foundation. This has allowed Lean activities to grow and develop throughout the company in the last years. At the beginning of 2022, the company’s Lean upskilling program was accredited by the LCS. The program uses the 70-20-10 approach: After a self-learning and training sessions, learners are required to demonstrate knowledge and practical capability delivering continuous improvement projects at different levels. This created a great opportunity to motivate employees to engage in continuous improvement activities and the Global Logistics Organization at Hilti decided to use it to accelerate their lean journey and create value (economic impact, customer experience improvement, CO2 reduction, H&S) for the customer and the business.

Activity

The global logistics management team took the decision to deploy the program worldwide and took some key decisions and actions.

• Clear upskilling expectations for regions and functions were defined, agreed, and communicated.
• The program was deployed trough assigned global and regional trainers with clearly defined R&R
• Clear selection criteria for participation were established, trainings scheduled, and mentors assigned.
• Employees participating in the programs were responsible to deliver lean projects according to their level.
• A global steering board has been put in place to frequently review the progress.
• Recognition activities have been organized to celebrate results and certifications.
• An award was designed to recognize the best performing region globally at the end of the year: The living Lean Award
• The program was running throughout 2022 and results were summarized at the end of the year.

Impact

The program received great acceptance from leaders and team members and after one year the global logistics organization achieved results that exceeded the original expectations:

• The upskilling program has been deployed in all 10 geographical regions through local / regional trainers.
• LCS approved trainers’ certificates given to 11 trainers in the regions.
• More than 150 leaders and team members were certified in at least one of the levels.
• Over 650 employees (Around 40% of the total global logistics population) were involved in CI activities.
• This created an overall impact of 5M+ CHF. Doubling the previous year result.
• Employee engagement score increased significantly in regions which exceled in program deployment.
• Living Lean Award granted to the region with the best performance.

World Courier – New Hyde Park

Background

Building on its world-class business model, World Courier kicked off the Center of Excellence (COE) initiative at the beginning of 2022. The program focused on standardizing and improving product workflows focusing on the New Hyde Park (NYC) station. There was significant variation in processes to deliver customer product that utilized the same packaging containers.

This variation had been observed in the inconsistent level of documentation regarding work instructions impacting team member training. The operational variation coupled with other factors resulted in a wide range of performance between stations leading to dramatic variations in customer satisfaction impacting financial performance. Business metrics and visual management to track current performance was not at the level to drive clear actions, identify root causes, and implement effective countermeasures limiting the opportunity for improvements impacting customer satisfaction.

The continuous improvement efforts driven by the COE initiative has dramatically impacted operational performance at New Hyde Park and made it one of the leading stations in the network. Continuous improvement is now becoming “the way we do work” at New Hyde Park and is the foundation to create the World Courier Way. The next step is to roll out the initiative to every station around the world.

Activity

The focus of the COE initiative was on how World Courier customer packaging jobs were processed. The team analyzed the end-to-end value stream from initial customer order to package creation to product pickup and finally to delivery of the product. The team worked with various stakeholder groups across the company that were directly involved in the processes or supported the processes, such as Customer Service and Brokerage.

The working group started by developing value stream maps for each of the product workflows to identify waste and flow issues. In every process, the team began to more consistently and accurately capture defect data to drive root causes by creating pareto charts and using Five Whys and Ishikawa diagrams to perform analysis. Next the team brainstormed potential countermeasures to improve, refine, and standardize the operational processes in New Hyde Park. The team created flow in the process by moving workstations, implementing 5S+ at each station, and instituting visual management.

The team updated standard operating procedures and work instructions to standardize the process. The team also implemented pull by instituting Kanban. All team members received Lean training with many attending the AmerisourceBergen Continuous Improvement Basic Course earning the LCS Level 1a certification.

Impact

The impact to the two main customer facing metrics are On-Time Pickup and On-Time Delivery has been dramatic. Over the six-month period of the initiative both metrics have increased over 30% from 60% to 94%. Other impacts include:

• Improved the flow of packaging and implemented the 5S+ approach to reduce waste and optimize productivity as well as tracking the work completed at the site.
• Stepped up efficiencies when assets are returned including GTCs and Dry Shippers. The team also created a model which optimizes the workflow, in return, maximizing the space to improve our productivity.
• Harnessing the visual management approach to significantly improve and increase workflow and defined lanes to process the incoming and outgoing shipments.
• Defined and implemented new dispatch processes to manage pickups and deliveries and improved the workflow to include visual management during the job activities.
• Eliminated dummy gels in packaging process saving $140k and 120 labor hours annually.
• Eliminated two manual checklists saving 320 labor hours annually.
• Reduced errors in the package check-in process, streamlined return assets process, and eliminated supervisor check by separating packaging and return asset product flows.
• Reduced packaging job issues due to temperature monitor defects by 65%.
• Increased team member engagement and pride.

Continuous Improvement Culture & Capability Build

Background

Sellafield Ltd Group Business Services (GBS) is a Multi-Functional Shared Service organisation. Delivering operational services in People (HR), Finance and Administration. Their primary customers are the 11,000+ employees that work for Sellafield Ltd.

Newly formed in 2020, GBS were looking to build on the work started by Nuclear Shared Business Services (NSBS), with a focus on 4 key areas:

1. Seeking to transform service performance, efficiency, pace and quality.
2. How? Through Service Management, Digital solutions, E2E process improvement, and driving Business Improvement Culture.
3. Transitioning focus of capability from transacting to assuring and adding value.
4. Seeking to establish credibility and reputation to delivering more of the services they currently deliver, take on new service lines and deliver to new customers.

Summary

• LCS Impact Award category: Team
• Team name: GBS & BI central team, Sellafield Limited
• Award title: Continuous Improvement Culture and Capability Build.

Activity

Paul Dobson, Business Improvement Practitioner at Sellafield, said:

“I made contact with the GBS Lead Team and explained how I would use the Lean Competency System (LCS) programme approach and conceptualise this to support the demand for a GBS wide improvement in performance with a focus on adding value and minimising waste with the aim being to remove obstacles and frustrations within processes.

The GBS Lead Team signed off on the approach and a roll out plan was formulated, recognising firstly the need for a baseline of current levels of Business Improvement tools and techniques in use to be established. They also recognised the immediate need for a capability build within their area and the longer-term requirement for a Business Improvement culture to be embedded in the area.

With regards to the delivery of 1a and 1b, adding some area specific information to the content has proven to be extremely effective. We also wanted all attendees to understand what we expect from a 1b so a role profile was created. All 1b’s were also to have a specific improvement project to work on which would cover at least 75% of workbook content.”

Impact

No other enabling function at Sellafield Ltd has such a focus on Business Improvements and that is down to the work the Central Business Improvements team has completed in collaboration with GBS over the last 12 months; using the LCS approach to successfully build capability and create the culture.
By building capability and creating this culture of Business Improvements, GBS have ensured that they maximise value across the whole organisation; working together with other areas of the business proactively.

Through the 1a and 1b, GBS employees have developed the skills, values, behaviours and culture that will drive performance. The GBS teams have focused on process optimisation and identification of waste, ensuring they perform collaboratively and effectively.

They now have a defined vision and mission which feeds down into design principles with clear links to the Manifesto.

Error rates have reduced; productivity has increased; Team Leaders are no longer spending half their days dealing with problems raised to them and the introduction of SQCDP has brought multiple benefits across all teams.

130 GBS employees have attended the 1a and 10 employees have completed their 1b modules. 2 out of the 10 1b’s have been certified as Level 1b Business Improvement Practitioners in line with the Lean Competency system. It is expected the other 8 will be signed off in June 2022. This is impressive as the first 1b module was in November 2021, giving an overall time of between 7 to 8 months from start to completion.

All 1b’s have a project to work on which is specific to GBS and this approach has enabled each workbook to be completed in an average of 4 to 5 weeks in between modules and each project has brought immediate benefits to different areas of GBS.

Establishing Global CI Impact & Sustainability

Background

LGC is a leading, global life science tools company, providing mission-critical components and solutions into high-growth application areas across the human healthcare and applied market segments. 

• LCS Impact Award category: Team
• Team name: the LGC Lean Academy
• Award title: Establishment of an Impactful and Sustainable Global CI Organisation and Infrastructure

Activity

Based in the UK and led by Simon Leonard, the LGC team of David Kilroy, Samantha James & Roland Gilliam, established the newly formed ‘LGC Lean Academy’ as a centre of excellence to support the roll-out of sustainable Cl activity across the global LGC footprint.  

Under normal circumstances this alone might be considered unremarkable, however the Academy was created during the peak of the COVID-19 pandemic with all travel restricted, teams working from home wherever possible, supply chain challenges and a backdrop of unprecedented increases in customer demand for COVID-19 related diagnostic products.

During this period the LGC Leadership and their teams were primarily focused on responding to huge increases in customer demand with long term CI seen as a strategically lower priority.   It’s not surprising therefore, that this business backdrop provided a huge challenge for the Lean Academy team to engage the organisation with a strategic and sustainable CI approach.

Impact

Despite the prevailing business headwinds, the first challenge for the team was to move from a face to face to an online delivery model delivered for the

Despite the prevailing business headwinds, the first challenge for the team was to move from a face to face to a global online delivery model delivered from the UK. 

All of the training materials needed to be re-imagined and this was successfully completed with complimentary investment in a purpose built training facility utilising the latest digital and learner management technologies.  The global time zones (up to + 9 hours) meant that the delivery model and the working practices needed to be adapted.

The range of remotely delivered support services developed covered both short and long term impact including: a point of impact service, initial awareness training, Leadership training, a practical managing for daily improvement process, an applied green belt programme and a lean reward and recognition system.

Quality assurance was ensured in associated with becoming an LCS certification centre and Pearson Assured training Centre.

The organisation and infrastructure has so far delivered 149 people trained in Cl methods across all production, commercial and support functions in each geography (EU, US & APAC), across ten Production Sites and seven non-production function, growing organisational Cl capability.  In addition, 60 Green belts have generated £495K of bottom line benefit with a further £420K in progress. 

There are many benefits from remote delivery in terms of saving time and cost.  Some aspects of developing a CI culture are still best done face to face and as most of the world begins to open up again, the LGC Lean Academy will move to a hybrid approach – building on the existing delivery model to take it to the next level of performance.

Lean Programme Sustainability

Background

GuideWell is a mutual insurance holding company based in Florida, primarily focused on health insurance. GuideWell companies include: Florida Blue, GuideWell Health (a healthcare delivery company), GuideWell Connect (a healthcare consumer marketing company) and GuideWell Source (an administrative and claims processing company for state and federal healthcare programmes).

Its mission is to help people and communities achieve better health, and it is at the forefront of the evolution of health care, forging ahead by innovating, collaborating and advocating for better health care. GuideWell became LCS accredited in 2020.

Activity

2020 saw the development and implementation of the lean architecture that has allowed it to rapidly lay the foundations for a sustainable CI culture, An extensive lean program included the introduction of a Green Belt course, which delivered 6 classes for the year. The program value was formalised and Lean certified staff were in 23 of 127 departments of the business and a community of practice for 200 staff was established, with 73 Certified Green Belts.

In 2021, the Green Belt course was expanded to 9 classes a year and Lean leadership seminars were offered 3 times in the year for all areas of the company, focussing on how to manage lean resources. A Brown Belt Program was developed to create 20 internal coaches a year, deploying in November and a Black Belt program with a selection process was developed to accept 20 candidates, also starting in November. A ‘Lunch and Learn’ round table seminar developed for deployment in December and the first annual Corporate Lean Awards event took place on December 16th.

The executive leadership has requested an expansion of the programme in 2022 Plans for 2022, which includes making Green Belt CI certification a requirement for five business areas and Green Belt OpEx certification a requirement for three additional business areas

Impact

GuideWell’s Lean Programme that has created real impact in a comparatively short period of time and lean is beginning to be seen as part of the company’s ethos. The creation of an enthused community of practitioners has been a key ingredient to building momentum and making it sustainable.

Several factors have contributed to this, including the entire lean training programme and especially the Green Belt course and the many certifications it has delivered, plus a range of communication mechanisms, such as leadership seminars, lunch and learn sessions and the awards event.

The programme has positive senior management buy-in – commonly quoted as the most important factor in creating sustainable lean success – and importantly, there is a shared understanding of what represents value, especially in terms of hard savings and cost aversions, and a widely understood and applied method to identify that value, with improvement projects having formal management sponsorship and therefore appropriate strategic alignment.

Key highlights:

• $2.3 Million in cost aversion was generated by certified Green Belt in 2020
• Program was expanded based on request from executive leadership
• Lean certified staff were in 58 of 127 departments of the business
• Community of practice of over 850 members of the company
• 277 Certified Green Belts (as of date 12/31/22)
• 12.1 Million in cost aversion was generated by certified Green Belt for 2021

Programme Director Effectiveness

Background

Eduardo is a highly experienced lean practitioner, who has held senior roles with Merrill Lynch, Bank of America, Resource Solutions and currently with GuideWell, where he is Lean Programme Principal and responsible for developing and implementing the company’s lean programme. He has several lean related qualifications and holds the highest LCS award – the Level 3b certificate.

Activity

• Led 13 large scale projects over 2020-2021 to reduce 100,000 hours of waste company-wide
• Led deployment of culture change in the company via grassroots movement
• Built ties with community in and outside of the company to show value of Lean and LCS accreditation
• Established an internal community of practice with more than 850+ current active members
• Established a curriculum and registration process that was full 9 months prior to deployment
• Established curriculum and framework for Brown Belt and Black Belt programs with application process

Impact

Eduardo made a significant impact through mobilising internal change champions, developing a sense of urgency and creating a structured methodology for implementation and project management. His championing role has involved motivating, guiding and spearheading the effort and galvanising his colleagues into action.

In particular, his development and application of structured methodology for problem solving and a robust program architecture provided direction and clarity, through linking projects to bottom line impact, such as hard savings and especially to cost aversion. Together with his energy and passion, he created a positive sense of urgency, helping and assisting everyone on a widespread scale.

Key highlights:

• Certified 225 of 247 Green Belts (created 58 team huddles)
• Lead all three annual Lean Leadership seminars
• Formalized expansion plans to develop within company culture
• Worked with Executive and Senior leadership to establish requirements for job competency roles
• Integrated in to 58 current departments with another 50 planned in 2022
• Fostered Online community via LinkedIn to showcase value as corner stone of sustainability
• 44 of 247 Green Belts promoted due to lean skills and certification
• Received 39 awards for recognition
• Received 2 Value Awards from Executives
• Received 4 letters of commendation for various business areas champions