GSE leadership & Execution Grundfos a/s. Kaj Ørndrup, director UP plant and Director SCM (GBJ) Our new way implementing LEAN.

GSE leadership & Execution Grundfos a/s Kaj Ørndrup, director UP plant and Director SCM (GBJ) Our new way implementing LEAN.

GSE Leadership & Execution Sådan ser vi på det spm; Du kan ikke have execution uden godt GSE leadership. Hvis ikke execution er baseret på facts og vi ikke arbejder ud fra det rette fundament, så har vi intet grundlag at udvikle os fra. Du kan ikke have et godt GSE Leadership uden god execution. Hvis ikke du udfordrer dig selv i fastlæggelse af målsætninger (KPI er) med høje mål, og arbejder konsekvent med organisationen for at nå disse, så skaber dit GSE leadership ikke blivende forandringer. GSE Leadership is Execution through people.

Lean in GBJ The years with focus on Lean as a toolbox 1996-2001 2002 2003 2004 2005 2006 2007 The years with focus on Lean/GSE through leadership Grundfos Shop floor excellence is disseminated Strategic Lean/GSE projects Alpha2 projects Lighthouse in UP plant with focus on shop floor managemen t Lighthouse in CR plant with focus on shop floor managemen t Lighthouse in RF plant with focus on shop floor managemen t Lighthouse projects at RF + SP GSE Ready design Lean in DE. Green Lean. 2008 2009 2010 2011 2012 2013 2014

Lean since 1996 but improving practice more than performance To increase the deployment and impact of lean in factories, more focus is needed on leadership and workforce behaviour rather than on lean tools

EuP regulation means circulator transformations. ALPHA2 From: X mio units over the coming years ALPHA2L UPM2/3 UPS2

UP chains challenge 2011/12 Globally 10,5 mio UP15 pumps Lighthouse Sparta Purpose: Purpose: Purpose: Meet recordhigh demands with as few investments possible. Decide how to deal with 2012 demands. Lighthouse primary enabler + utilizing global capacity. Can/will influence working capital 3 primary reasons: 1. Prepare organisation for SPARTA ramp up and speed in problemsolving. 2. Show the way for Grundfos with LEAN produktion (showcase for GBJ and the Group). 3. UP competiveness up and achieve, That UP becomes the best UP production in Group Goal: Productivity: 15 % year 1 + additional 10 % year 2 Line returns: <100 ppm 2011 and below 75 ppm in 2012 Succesfully be ready for Sparta ramp up. Prepare next lines together with PGF less automated - more flexib lines for many variants Ramp UP i 2012/13 will be the fastest ramp up ever seen in Grund And will continue with the new lines Challenging do to: New products ALL NEW components New productionequipments New supply chain and suppliers w has to be equal ready. From 0 > 1,00 mio in 1 year 1 mio the first full year (2013)

Lære fra tidligere Toyota ansatte: 4 fulltime coach 1 helt år 1 fulltime coach år 2 I første omgang var det shopfloor ledelse kun begrænset supportfunktioner.

INVESTERING i LEDELSE. Produktionsleder: Gennemsnitligt 2 timer coaching hver dag i et helt år. I perioder lidt mindre og i et stepchange projekt mere. Der blev kørt typisk 3 stepchange projekter af gangen. Produktionschefer: Også tæt på 2 timer coaching hver dag i et helt år. Leanprojektledere/lean eksperter: Koblet ind i projekterne for at lære og senere kunne køre projekter selv.

Manning board meeting before each shift Clear overview over processes >< manning Manpower is visualised - > instant confirmation that all processes are carried out by the correct number of skilled operators. Advantage: Number of processes under control Visual gabs between processes and manning Manning board meeting run by OM no suboptimization OM Knowledge of individual employees

Visual Management - Plant board meeting every day at 9:30 Coaching: Concern cause - countermeasure 10 departments boards and 1 plant board in the plant + boards in supportdepartments All employees participate in a board meeting every day Purpose: Creating visibility for everyone so they can eliminate everything that disrupts the flow Learnings: Do not give solutions coach! Allow no long explanations Go-look-see Discipline and fun!

Standard work on all 105 processes in UP plant Learnings from all abnormalities are written into standards Driven by facilitator together with production team Operators sign off that they are instructed in standard work All processes are audited by facilitator, supervisor and manager following same audit template

Manufacturing dairy Being visible on shopfloor 22 hourly count sheets on each shift Shopfloor time: 7:00-7:15: Checking manning 7:15-7:30: Manning board meeting 7:30-9:30: Morning walk, signing hourly count sheets, checking prioritization, understanding problems, coaching supervisors 9:30-9:45: Plant board meeting Shopfloor meetings: 10:00-13:00: E.g. quality meetings, safety meetings Process confirmation: 13:00-14:00: T-cards e.g. check if standard is followed Other activities: 14:00-16:00: Mails, monthly meetings with supervisors, EDD, meetings with other functions Some times a day is used to participate in challenge days

Process Confirmation sustain change Process confirmation is the way by which managers/employees go and see that the process is delivering as expected - and where it isn t, understand and act on root causes. Employee Supervisor Manager Key processes/standardized work Safety walks/ house keeping Problem Countermeasure follow-up Performance Board Meetings Facilitator Minimum Job Role Challenge: To prioritize process confirmation 13

UP GBJ no. 1 Resultater i UP fabrik efter 2012. Anchoring GSE in existing production Implement LEAN SPARTA from day 1 23% nået. Prod>25% 75 ppm 1. februar 80%OPR 300k Til tiden LEAN in support = reinforce foundation OPR + 5% >10% prod Effekt i support lidt forsinket resultat.

Create and visualize the ability to react. (Step 1) From a gut feeling, to clear facts Supervisor with operators on shop floor GSE Leadership is to react based on facts Implementing systems that clearly indicate losses of quality and delivery Registration of all time losses of delivery by using Losses are broken down into causes Causes are broken down into actions

Use your ability and understanding to set directions. (Step 2) Establish daily action meetings on all levels in the organization. Track and understand relevant KPI s trend and actions C O M P A N Y Management can set clear direction P L A N T D E P A R T M E N T

Create an organisation that can react to solve problems quickly. (Step 3) GSE leadership support on all shifts Systematic problem solving on the shop floor on all shifts Clearly defined roles and responsibilities Supervisor & facilitator solving problems

Create a learning platform to involve and train the organization. (Step 4) All shop floor employees are trained in GSE/Lean systems and tools Managers are trained and assessed according to a structured plan Expert training to develop Lean project managers 80 % of all employees in GBJ have minimum 3 days of GSE/Lean traini Expert training for Lean project managers (Higest level in Denmark

Coach and develop the desired behaviours among managers. (Step 5) Change and improvement of leadership Be present and coach with direct reports to empower them Coaching of a supervisor 70% of time on shop floor Manufacturing Diary Monday Tuesday Wednesday Thursday Friday 07:30 07:45 08:00 08:15 08:30 08:45 09:00 09:15 09:30 09:45 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 12:15 12:30 12:45 13:00 13:15 Quality Gate and Handover item Confirmation Production and Planning Mtg Machining / Post Machining Review Final Assembly Review Ctr Section / HSB Review Workshop & CI Activity Review Mtgs Sho Floor Reviews / Area SHOP FLOOR Lunch Audits Go, Look, See 13:30 13:45 14:00 14:15 14:30 14:45 Management 15:00 Mtg 15:15 CostMtg Change Management Mtg Inventory Mtg Logistics Mtg Quality Mtg A3 PPS Project Review Team / Shift / Dept Meetings 15:30 15:45 16:00 16:15 T Card / Kamishibai Quality Gate and Handover item Confirmation Process Conf' 16:30 16:45 17:00 17:15 17:30 TIP Review Mtg Reporting, Handover, Admin 17:45 18:00

Sustain and demand more. (Step 6) Vision Strategy Clear link from the top management vision, all the way down to the shop floor (A3 & TIP) Managers ability to improve in a structured way Continue with setting high targets Blue Sky Objectives & KPIs Plant Manager TIP Operations TIP Dept. TIP One of the TIP rooms in GBJ (RF plant)

Results by working with GSE/Lean Customer complaints reduced with 33 % in one year Baseline 2010 150 PPM Result 2014 39 PPM Delivery quality has improve from 150 PPM to 39 PPM sins 2010 Perfect orders has increased 10% since 2013 Productivity has increased 46% since 2009

Rejsen stopper aldrig. Der er altid et næste step. Hvad så, hvad kan vi gøre mere: Fuld udbredelse i alle fabrikker Lean i alle funktioner/support Flow Efficiency projekt Define a Flow/JIT concept (ændre balance imellem flow effektivitet og ressource effektivitet) Green Lean Frontrunners Next step of GSE systems/tools SHINGO Next step of GSE behavior

Hvis nogen af jer tænker på at gå ombord så forstå: Dette er ikke et projekt det er en vej til at skabe en organisation, der effektivt forbedrer sig altid- En sådan organisation skal udfordres, følges op på, coaches til nye højder. Kræver meget struktur, disciplin, systematik, alles involvering kombineret med puls i forbedringer, prøv noget stå ikke stille (Pragmatisk) på alle skift (organisationen skal virke lige godt døgnet rundt)! Vil komme til at gælde ALLE. DET KRÆVER TYDELIGT LEDERSKAB. God rejse.

Grundfos Shop floor Excellence > GBJ Initiatives Q3 2014 Q4 2015 Q1 Q2 Q3 Q4 RF Lighthouse EL prepare EL Lighthouse SP Lighthouse KF/TR Lighthouse? EL Jishuken/Kaizen CR support KF/TR support/prepare Jishuken/Kaizen Jishuken/Kaizen Jishuken/Kaizen RF support Jishuken/Kaizen Jishuken/Kaizen Jishuken/Kaizen SP; Quality, PT, Maintenance RF; Quality, PT, Maintenance KF/TR; Quality, PT, Maintenance? EL; Quality, PT, Maintenance? CR Flow Efficiency RF Flow Efficiency?? Flow Efficiency RF Green Lean RF Green Lean Green Lean Green Lean Green Lean Green Lean Development of GSE production system Frontrunners Development of GSE competences Implement facilitators in GBJ Alignment and documentation workshop GMA Deep dive workshop GMA Deep dive workshop GMA workshop workshop workshop Deep dive GMA Deep dive GMA Deep dive GMA Deep dive GSE Image 2017 implementation in GBJ + Shingo price (silver medal) Active support to develop global GSE strategy and input to Image 2017 SBM/April. 2014