Lean management in Coloplast 18 May 2006 Gorm Bue Nielsen
2 Agenda 1. Introduction to Coloplast 2. Development of abc - a better company 3. The abc business improvement system 4. Critical success factors
3 Products Ostomy Continence Wound Care Skin Care Breast Care (bags) (leg bags, catheters) (dressings) (lotions etc.) (prosthetics, swimwear etc.)
4 Coloplast represented in several countries 6000+ employees Subsidiaries in 25 countries Production in Denmark, Hungary, Germany, USA, Costa Rica, China
5 Coloplast sales development 14000 Significant growth since 1957 Mostly organic, some through acquisition mdkk 12000 10000 8000 6000 4000 2000 0 1990 1995 2000 2005 2012
6 Lean conversion is a big challenge in Coloplast The lean challenge - Global coverage - several cultures - Units with anywhere from 10 to 2000 employees - Product development, production, sales, home care, staff functions - Coloplast with high growth and high earnings - We are used to success!
7 Agenda 1. Introduction to Coloplast 2. Development of abc - a better company 3. The abc business improvement system 4. Critical success factors
8 Purpose of abc in Coloplast The purpose of abc is to build an organisation of people that are able to continuously improve Coloplast s business processes resulting in significant bottom line impact.
9 Moved quickly from pilot to rollout 2003 2004 2005 2006 Ostomy projects Continence projects Wound Care abc pilot CP UK abc pilot Development of abc model Global rollout
10 12 units implemented in 2004-2005 The 12 Ostomy (H, T, E, M) Continence (K, M) Wound Care Breast Care (DE) Skin Care (+Wound) US Sterling HUN CP UK CP IT CP DE, HSC CP FR Corporate staff functions Next wave in 2006-2007
11 Agenda 1. Introduction to Coloplast 2. Development of abc - a better company 3. The abc business improvement system 4. Critical success factors
12 abc business improvement system abc management process abc approach & tools abc Audit abc organisation & people abc Handbook with detailed descriptions
13 abc management process Set objectives and follow up Group Management with own abc objectives/incentives Business Unit X Business unit s 2-3 abc KPI s: Productivity, lead time and perhaps one more. W X Y Z V Value stream KPI s - each value stream with individual but aligned KPI s. 2-3 KPI s per value stream. Event 1 Event 2 Event 3 Event 4 Event 5 Event 6 Event 7...etc. Event KPI s - each event with individual but aligned KPI s.
14 It all begins with your local management team What key figures / KPI s do we want to improve? What value streams should we start with? Who is going to do this? How are we going to prepare?
15 abc approach & tools Value stream analysis - UK subsidiary
16 The value stream analysis and the potential Mål Invent. turns Productivity Scrap Flow time x 5 + 30% - 67% - 75%
Example of Rapid improvement event 17
18 abc Audits Assessment once/twice a year Lean is a journey over decades There is always new things to learn - especially first 5 years A structured assessment: Management team (understanding, support, use of abc) On-the-floor abc team (understanding, energy)
19 abc organisation & people Roles and responsibilities Key roles: General Manager Management team Senior abc Manager abc Specialists Team leader / co-team leader Line managers Controller abc Handbook with detailed descriptions
20 The abc spirit It is what it is... Why did nobody - see this before? - fix this before? - do it this way before? Who set things up like that?
21 Agenda 1. Introduction to Coloplast 2. Development of abc - a better company 3. The abc business improvement system 4. Critical success factors
22 Critical for a lean transformation: Lean MUST be a MUST-win battle 1. Top management must drive Lean forward, support not enough Corporate as well as local directors Must be must-win battle 2. Set clear targets and follow up Results, efforts and methods Align Lean activities with your strategy and key objectives 3. Deploy strong individuals to work full time 4. Find a sensei - someone who has taken the journey before 5. Use corporate-wide standard approach for all units 6. Don t fire people 7. Maintain pace and rhythm 8. Communicate