Building the Production System through a Developed Lean Programme
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BUILDING THE PRODUCTION SYSTEM THROUGH A DEVELOPED LEAN PROGRAMME
The Philips Excellence Lean Model
Royal Philips2nd March 2017
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Founded in 1891
HQ in Amsterdam
NL
Sales of circa. €17Bn
Circa. 69K Employees
R&D Investment of around 7% of
revenue
Present in over 100 Countries
About Royal Philips
“Our goal is to improve the lives of 3 billion people a year by 2025”
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The Leadership ProblemLeading with Lean
Only 13% of Employees
worldwide are engaged at work
Sources: Gallup 2013 Employee Engagement Survey & Harvard Business Review 2013
24% of Employees are actively disengaged
71% of Senior Executives rank
Employee Engagement as very important for
Organisational Success
?
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We started with understanding the ‘Why’ of Lean
Toyota doubled its market share from 2000 to 2010 and became no. 1 car manufacturer a number of times from 2009 onwards
Honeywell have outperformed the S&P 500 Index by over 100% over the last 10 years using the Honeywell Operating System (HOS) as a major driver of their Business
Porsche, starting in the early 1990s, used a Lean Enterprise Strategy (End-to-End) as a basis of its turnaround strategy and became the most profitable car company in the world
Danaher has grown profitably by almost 20% every year for the past 20 years, using a CI based Business System (Share Price growth of 2,909%)
Moved from a ‘factory based’ CI approach to a Business wide people system: 289% Share Price increase over 10 years (June 2003 – June 2013)
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Significantly increased Employee Engagement
Bottom line impact in the Hundreds of Millions € range
Time-to-Market improvements of between 30-70%
Quality improvements of 30% Year-on-Year
Inventory reductions of >30%
Floor space reductions typically 20-30%
Kaizen implemented >200K
We have delivered significant results across Philips and continue to do so
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We focussed on Lean thinking, rather than Lean Tools, and have driven a principle based transformation
Principle Driven
System Driven
Tool Driven
Embedding principles into culture
Embedding principles into culture
Embedding principles into the culture
Structuring tools into a systems context
Using specific methods to create point solutions
Based upon the Shingo Institute Model
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Lean thinking
1. Correctly specify value for the customer
2. Identify the value stream and remove waste
3. Make the product flow
4. So the customer can pull
5. By striving towards perfection
Which starts with understanding the Customer value
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The Continuous Improvement Curriculum is designed to provide our Employees with the appropriate level of competence and behavioural change.
The Central Theme of our Programme is the Certification of 100% of our People in Lean Thinking
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Lean Solutions
(e.g. Healthcare or Lighting installations)
LeanInnovation
(e.g., IT, R&D, Upstream
Marketing, etc.)
Lean Office
(e.g. Markets, Finance, HRCustomer Service, etc.)
LeanSupply
(e.g. Factories, Warehousing,Distribution, Suppliers, etc.)
Nat
ure
of a
ctivi
ty
Value Stream
Proj
ect
Repe
titive
Physical Virtual
We have created a Lean Excellence Model to Transform our whole Enterprise
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We are utilising the Fundamental Lean Tools, combined with Lean Leadership, to transform our business
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We are ‘Leading with Lean’ at every level of our Organisation
Leadership Activism provides the essential
elements of Role Modelling and leading
by example
Mosquito Leadership multiplies the Leader’s
impact beyond their span of control, which will usually, even in the case of Senior Leaders,
be quite small
Visible Leadership ensures that the
employees see what the Leader is doing and helps to engage the team members
Coaching Leadership moves from directive to
coaching leadership and enables sustainable
improvement
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Thank you!
Philip Holt
LinkedIn: Philip HoltWebsite: leadingwithlean.com
Twitter: @LeanMaster1
Leading with Lean
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