How t o S ust ain a Cult ure of Cont inuous Improvement : An - - PowerPoint PPT Presentation

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How t o S ust ain a Cult ure of Cont inuous Improvement : An - - PowerPoint PPT Presentation

Jun 11, 2023 174 likes •533 views

How t o S ust ain a Cult ure of Cont inuous Improvement : An Execut ive Discussion June 11, 2019 Phil McIntyre, Managing Director Discussion Topics Intro to Milliken & Co. and why we began our Journey Key Elements to Creating a

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How t o S ust ain a Cult ure of Cont inuous Improvement : An Execut ive Discussion

June 11, 2019 Phil McIntyre, Managing Director
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Discussion Topics

  • Intro to Milliken & Co. and why we

began our Journey

  • Key Elements to Creating a Culture
  • f Continuous Improvement
  • Intro to Performance S
  • lutions by

Milliken

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Milliken & Company Background

  • Founded in 1865
  • Privately held
  • ~$2.5 Billion in revenue
  • ~7,500 associates
  • 45+ sites in 7 countries
  • Operations throughout the

Americas, Europe and Asia

9 Locations 15 Locations Corporate Offices Manufacturing /Warehousing Sales/Technical Service Floor Covering Design Studio Seth Milliken Gerrish Milliken Roger Milliken
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Chemical Performance Materials

Apparel & S pecialty Fabrics

Floor Covering

Key Markets

You touch a Milliken product 50x per day
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Milliken & Co. is…

… there’s a 154 yr-old American company that has not only survived but thrived in the hyper-competitive global textile industry … … the company is the only one in the industry with sales over $1bn that still maintains its headquarters in the United States … … the company never off-shored its production and yet was able to achieve a 16% CAGR in earnings over the period 2004-2018 … … the company is now roughly 50% more productive than it was in 2004, but with 20% fewer plants … … the company now operates 44 plants globally with no managers present during third shift operations … … the company has earned 70% of all the JIPM-TPM prizes awarded in N America … the company has one of the best safety records and most highly engaged workforces of any organization anywhere in the world … … the company is one of only a couple included in Ethisphere’s list of the world’s most ethical companies all 13 years the survey has been conducted … the company holds approximately 5,000 patents and is carbon neutral
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Milliken & Company’s Reality Performance vs Domestic Textile Players

Textile companies with > $1B sales: 40 80 120 1950 1960 1970 1980 1990 2000 2010 U.S. Textile Mill Production 75% Textiles 25% 100% 0% 50% All items Percent of U.S. consumption that is Imported 1995 Milliken Springs Burlington Collins & Aikman Westpoint Stevens Fieldcrest Cannon Today Milliken
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How has Milliken survived & thrived ?

  • 1. Positioned in the right markets
  • 2. Innovation
  • 3. Operational Excellence

With Safety as the Foundation

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Evolution of Operational Excellence

People Excellence Era 1980 to 1985 1985 to 1990 Process Excellence Era Over

125

Corporate Initiatives 1990 to 1996 Business Excellence Era 1996 to Today Implementation of the Milliken Performance S ystem
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Our Business Case for Change

1994 25 Benchmarking World-Class Manufacturing Practices
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Study Missions…companies visited

Product Produced Copier Parts Deming, TPM Ricoh Auto Parts Deming, TPM Nippondenso Electronics Deming, TPM, TPM Special NEC Butyl Rubber TPM Japan Butyl Automobiles Deming, TPM Nissan Lighting Deming, TPM Toshiba (Kanuma) Lighting Deming, TPM Toshiba (Himeji) Air Conditioners Deming, TPM, TPM Special Daikin Industries Plastic Film Deming, TPM, TPM Special Sekisui Chemical Textiles TPM Gunze Textiles TPM Dynic Corporation Awards Company Name
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Study Missions…results seen

# of Companies Reporting Improvement Measurement 6 7 9 8 9 85% 74% 92% 32% 61% Claims Defects Breakdowns Process Reliability Productivity
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Audience Question

Which of these options best describe your organization ?

  • 1. We have a Culture of Continuous Improvement from

Leadership to the Hourly Associate (less than 25% FireFighting)

  • 2. We walk a fine line between Daily Operations and

Fighting Fires (approx. 50% FireFighting)

  • 3. We’ re damn good at FireFighting ! (greater than 50%

FireFighting)

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The Leadership Challenge

Western Management

40%

Daily Operations

60%

Firefighting

The Best in the World

20%

Daily Operations

Routine 20%

Firefighting

Working Through Cross-Functional Teams

60%

Continuous Improvement/ Innovation

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The Leadership Challenge

58%

Firefighting

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The Milliken Performance S ystem

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Milliken’s results in the Journey

# of Companies Reporting Improvement Measurement

_ 7 9 8 9 74% 92% 32% 61% 36% Safety 80% Defects 88% Breakdowns 30% Process Reliability 78% Productivity

Milliken Improvement
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Discussion Topics

  • Intro to Milliken & Co. and why we

began our Journey

  • Key Elements to Creating a Culture
  • f Continuous Improvement
  • Intro to Performance S
  • lutions by

Milliken

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Audience Question

Which of these options best describe your organization ?

  • 1. We select proj ects based on the current opportunity at

hand

  • 2. Proj ect establishment is based on experiential

knowledge

  • 3. We have a mature process for proj ect establishment

based on facts/ data and prioritization

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Key #1 – Zero Loss Thinking

Embrace Zero Loss Thinking

  • S

trong benevolent discontent

  • S

top measuring success internally

  • Celebrate the RED as opportunity
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Learning to See

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Learning to See

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What is a Loss ?

Cost Reduction Opportunity

The difference between actual cost & ideal cost

Loss Actual Cost

Total real dollars spent to manufacture a product.

Ideal Cost

Absolute minimum cost required to manufacture a product. (theoretical cost)

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Loss Categories

Other Conversion Costs Yield Losses Quality Losses (Yield)

Performance Rate (Speed)

OEE Losses (Downt ime)

  • 1. Breakdowns
  • 2. Change Over
  • 3. S
tart-Up and S hutdown
  • 4. Minor S
tops
  • 5. PM & Cleaning Downtime
  • 6. Planning
  • 7. Material Handling
  • 8. S
peed Loss
  • 9. Off-Quality
  • 10. Rework
  • 11. Waste
  • 12. Obsolescence
  • 13. Allowances
  • 14. Inventory Variances
  • 15. Training
  • 16. Inspection & Testing
  • 17. Indirect Materials
  • 18. Purch. Price Var./ Vendor Claims
  • 19. Over/ Under S
pending
  • 20. S
pending Not Captured Milliken Losses
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Audience Question

Which of these options best describe your organization ?

  • 1. Less than 25%
  • f my Hourly Workforce is part of a

continuous improvement team or proj ect

  • 2. 25 to 50%
  • 3. 50%

to 75%

  • 4. 100%
  • f my Hourly Workforce is part of continuous

improvement Team

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Associate engagement is structural

Empowerment Involvement Structure Provide the
  • pportunity via
teams, projects & deployment Education Prepare people to be successful Measurement Measure, track and provide feedback Recognition Reinforce and recognize behavior

Key #2 -

Performance Integrated S ystem, not tools

Engagement
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Key #3 – Leadership Development

Model then Replicate

Build stability of equipment and people – through Proof of Concept - before adding complexity and speed

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Once Established, Expand, and Evolve

Key #4 – Change Management

Establishment of the system will be evident through associate “ pull”

  • Expand the system outside of the plant’s 4

walls

  • Allow the system to evolve and improve
  • rganically
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A Performance Evolution: Starting Point

Supply Chain Journey Associate Engagement Supply Chain Excellence Operational Excellence Business System Excellence Non-Std. processes
  • Value-network
  • rchestration
  • Exceptional reliability
  • World-class safety
  • 100% problem solvers
  • CI redefined
Management driven & turnover weary Six Sigma Lean Flow: information, material & people Value-added complexity & working capital Dashboard KPI visibility
  • Std. processes
aligned to demand Value-add talent re-allocation Associate led safety and pillar teams Cascaded and aligned metrics Phases of Maturity Operational Journey
  • Sustained labor & asset
productivity gains
  • ROIC optimization
Initiative-driven improvement Footprint network
  • ptionality
Losses prioritized & eliminated Replicable processes & systems Defect reduction, yield/capacity gain S&OP Excellence
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SLIDE 29 Supply Chain Journey Associate Engagement Supply Chain Excellence Operational Excellence Business System Excellence Non-Std. processes
  • Value-network
  • rchestration
  • Exceptional reliability
  • World-class safety
  • 100% problem solvers
  • CI redefined
Management driven & turnover weary Six Sigma Lean Flow: information, material & people Value-added complexity & working capital Dashboard KPI visibility
  • Std. processes
aligned to demand Value-add talent re-allocation Associate led safety and pillar teams Cascaded and aligned metrics Phases of Maturity Operational Journey
  • Sustained labor & asset
productivity gains
  • ROIC optimization
Initiative-driven improvement Footprint network
  • ptionality
Losses prioritized & eliminated Replicable processes & systems Defect reduction, yield/capacity gain S&OP Excellence

A Performance Evolution: Long-term target

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Key #5 – translate Wins to $

100 98 104 106 104 81 94 105 108 108 122 127 128 130 133 50 100 150 200 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 100 134 205 261 290 146 229 271 327 378 427 480 602 638 643 100 200 300 400 500 600 700 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenue Earnings

2% CAGR 16% CAGR
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View of a Performance S ystem

Leadership Associates System

Impact Max

Engagement A New Way Of Leading A New Way Of Working

Engage Enable Empower

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Who we Are

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Audience Question

Which of these options best describe your organization ?

  • 1. I’ m highly interested in a Tour of a Milliken site
  • 2. I’ m somewhat interested in a Tour of a Milliken site
  • 3. I’ m not interested in a Tour of a Milliken site
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S trategic Imperative to Culture Change

The “Modeling” Approach

  • The Model machine approach within a
Model site enables Associate Engagement which is key to sustainability
  • With Safety, acts a cornerstone to
Culture Shifting

The “Zero Loss Thinking” Analysis

  • Challenges existing paradigms as to
‘what’s possible’
  • Allows for strategic resource allocation
discussions
  • If embraced, eliminates wastes as
  • pposed to reduces wastes

“Proof of Concept (ROI)”

  • Allows for ‘intelligent design’ when
considering horizontal replication (within the site) and vertical replication (to other sites)
  • Validates successes early…step on the
gas or step on the brake !
  • Drives Capability Building.
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Thank You! Questions?

Phil McIntyre

Phil.McIntyre@ Milliken.com 864-680-1946

Nicole Yeske

Nicole.Y eske@ Milliken.com 864-415-6332