A Culture of Continuous
Improvement
Gary Peterson
Executive Vice President,
Supply Chain & Production
1
People
How would you describe the role your
people play?
Do they make your parts/
provide your services?
or
Do they make things better?
How do you see your people?
Are they people like you, with real
concerns, hopes, dreams, needs, and fears?
or
Do they sometimes seem less relevant
than you, less important, less real?
Twin Pillars
Respect
for People
Continuous
Improvement
Managing by Metrics & Results
Results come because people
are passionately engaged and
driving Continuous Improvement
Performance Measurements
Before
• Order Size:
The bigger the better; small orders killed us
Now
We make everything one at a time
Performance Measurements
Before
• Factory Layout:
28 Departments
Now
Fully Functional Mini-Factories
Performance Measurements
Before
• Order Production Time:
26 Days
Now
1/2 Hour Throughput Time
Performance Measurements
Before
• Gold WIP:
475,000 pieces
Now
<1,000 pieces
Performance Measurements
Before
• Annual Paper:
6 million pieces
Now
Paper-Less Emblematic Production
Performance Measurements
Before
• Extras:
17%
Now
0
Performance Measurements
Before
Finished Goods
Now
No Finished Goods
Performance Measurements
Before
• On-Time Delivery:
82%
Now
98%+
Performance Measurements
• Efficiency improved 300%
• Floor space reduced by 70%
• Eliminated 100% of the extremely toxic
hazardous wastes
• Inventory turns improved 4x
• Almost no missed banquets: 0.001%
• Annual cost savings of $10 Million
Principles
Lead with Humility
Leaders spend time on the floor. They seek input. They teach and
encourage. They hold themselves publically accountable for the success of their people.
Respect Every Individual We develop, empower and involve all our people. We provide a safe
workplace and continually strive to care for the environment. We value diversity. We know we are
better together than we are apart. Focus on Process We understand that processes require
good inputs to achieve good outputs. We focus on the foundational 5S practices of sort and shine as
one way to ensure sound processes. Improvements of all kinds come from involving everyone in
solving process problems and learning from out mistakes. We value great ideas, ingenious solutions
and a collaborative spirit. Profits grow when we drive down costs. This is one way we deliver value
to our clients.
Embrace Scientific Thinking We use our scientific problem -solving model,
S.T.E.P.S. , in our practice of continuous improvement. A3s help us follow the model, learn and
challenge ourselves through discussion with others, and create a story for future learning.
We focus on flow to better satisfy customers with efficient processes that produce high quality
awards. We only pull materials when we have a customer order. Flow and pull together create value
for the company and our customers. Flow and Pull Value
Our people do the right thing because it’s the right thing to do. We understand that poor quality
comes from poor processes. We look to our people, as process experts, to surface problems, solve
them and only pass on high quality.
Our quality policy is
Assure Quality at the Source
‘To touch the fringes of perfection.’ Toward this vision, we are disciplined in our adherence to our
systems and principles. While we may not ever achieve perfection, we will never stop reaching for it.
Seek Perfection Our mission is to help companies appreciate people who do great work.
Everything we do must be in service to this mission. Our first True North statement is to “Impact
every life for good.” We strive to do this by providing meaningful work to our people and high
impact recognition awards to our clients.
Create Constancy Of Purpose This is the unifying
principle upon which all others depend. Systemic thinking requires logic and creativity, the ability to
take things apart, and to see how they might work together. Constancy of purpose and continuous
improvement rely on our ability to think systemically. Think Systemically
Provide a vision Rational – “I get it”
Give them a reason to care
Emotional – “I feel it”
Respect for People
Create processes and systems that allow
them to move closer and closer to
perfection Motivational – “I act on it”
Lead with Humility
Respect every Individual
How I am
How I interact
How I lead
Lead with Humility
Respect every Individual
How I am
Do I recognize the importance of others?
Do I choose to be of service to them?
Do I have a correct understanding of my own
importance, and of everyone else’s value?
Is it safe to make mistakes?
Lead with Humility
Respect every Individual
How I interact
Do I show care and respect to others?
Is it genuine?
Do I engage people in an exchange of ideas?
Do I extend myself, and show vulnerability that
opens the conversation and makes it safe?
Is my world non-zero sum – abundance?
Lead with Humility
Respect every Individual
How I lead
Am I aware of both my Position power and
my Personal power?
Neither Position or Personal power should
ever be abused.
Lead with Humility
Respect every Individual
How I am
How I interact
How I lead
Lead with Humility
Respect every Individual
&
Create Constancy of Purpose
OUR MISSION
we help companies appreciate people
who do great work. because celebrating
great work inspires people to invent, to
create, to discover, and when people are
inspired, companies grow.
Lead with Humility
Respect every Individual
Create Constancy of Purpose
&
Seek Perfection
Seek Perfection
Obert C. Tanner
“All my life I have tried to touch the fringes of
perfection. And at best I sometimes came near.”
“ …..a future better beyond our present best.”
Processes and Systems
Continuous Improvement is improving all
systems and processes at every level of the
company every day.
Simple and repeatable processes that
make it easier to do the right thing and
harder to do the wrong thing.
Safety – wall
Systems
Coaching & Training
Coaching & Training help people learn how to learn. We
develop capable and committed employees who are aligned to and driving company
strategies. We focus on creating strong teams who work together to build a better
future of all. Safety, Health & Environment Our vision is that every employee
will go home at the end of the day as healthy and well as they were when they arrive.
We also believe in aggressively and efficiently using our resources in a way that
minimizes waste and emissions into the environment.
Learning Learning is
fundamental to building a better tomorrow. It is a necessary and lifelong endeavor.
Through job skill training, scheduled classes, informal teaching moments, reflection and
kata practice, we become a learning organization. Standardized Work
Standardized work is the beginning point of how we improve, and the sustaining
vehicle for the improvement cycle. It allows us to find the root cause of problems. It
maximizes performance and minimizes waste. Visual Management Our work
environment is visual. Our workplace speaks to us. It tells us what we are doing, how
we are doing, and what we need to do. 5S With its focus on being clean and
organized, is a foundational block upon which all improvements are developed. 5S
helps prepare us as individuals, and our environment for improvement. Gemba We
go to where the work is done to see and understand the current state. Our gemba
assessment system involves leaders in seeing how our systems are working, and taking
advantage of learning and teaching opportunities. Problem Solving We must
involve everyone in problem-solving. The Red/Green card system, used in conjunction
with the S.T.E.P.S. scientific model enables us to improve processes, morale and
profitability. Leader Daily Work Leaders are committed solving the principles
that will ensure a future better beyond our present best. They develop systems that
strengthen the culture of continuous improvement. They develop people through
stretch goals and then celebrate their achievements. Strategy Deployment Our
daily improvement is driven by our strategy, and every person in our company is
involved in the development and execution of the strategy. In this way we align our
efforts and our improvements to that which is most important to our customers, our
people and our company.
Lean
Visual Mgmt
Bees
Mark non-conformities with an 'X'. 1 or more 'X' equals a 'No Pass'
Kanbans are being used properly
Signs posted have clear purpose
Team board is clean & easy to understand
Team board is up-to-date & being used
Assessment Status
Pass
Date:
Assessor:
No Pass
Coaching
Monthly
Jade
Mark non-conformities with an 'X'. 1 or more 'X' equals a 'No Pass'
Coaching record form shows coaching is current for all
team members for previous month
Ask 3 team members:
Do you get feedback on how you're doing?
Assessment Status
Pass
Date:
Assessor:
No Pass
OUR PEOPLE
we appreciate people: who believe we’re bigger together than
we are apart ▪ who work shoulder-to-shoulder even when they
don’t see eye-to-eye ▪ who have great ideas, ingenious
solutions and a collaborative spirit ▪ who understand what
clients really need is a good listening to ▪ who watch out,
speak up, and work safely ▪ who keep their promises, learn
lessons, laugh, spread joy and create a sense of family ▪ who
do the right thing because it’s the right thing to do ▪ who
realize that ultimately we’re in the most important business of
all: the business of valuing others
Principles, Systems & True North
How do I improve things?
How do I know what to work on?
How do changes get made?
How do we know we did the right thing?
True North
Our most important
long-term objective:
Gross Profit Dollar Growth
True North
Impact every life for good
Zero injuries and illnesses
100% Asset accountability
100% Quality
Zero defects and returns
100% Value-added
1-Piece flow on demand
100% On-time delivery
Zero missed events, zero out-of-stock
Delight clients 100%
With the most relevant, creative product value
100% Capability
System, process, people and equipment
Processes and systems
Give them a reason to care
Processes and systems
Provide a vision
Give them a reason to care
Processes and systems
People
Who can make
things better
and better
Culture of Continuous
Improvement
- Are your lean practices primarily driven by your
supervisors and managers or by your associates?
- Do people express eagerness to share input up
the ladder?
- Do associates at every level routinely go above
and beyond what is expected?
- Do your people astonish you every day?
Passionate,
Empowered
People
Believe in
themselves
Trust
Clear
expectations
Training
Development
Appreciation
Results
Quality
Cost
Delivery
Impact
Culture
“We learned a very valuable lesson today.
We have the same equipment and
systems . . . but what [they] did not see was
our competitive advantage, which is our
people. We are successful because we have
intelligent, caring, highly successful team
members.” – Mr. Cho