Creating a Culture of Operational Excellence · OPERATIONAL EXCELLENCE DEFINED 3 Operational Excellence is a philosophy of leadership that drives deliberate and sustainable improvement

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Creating a Culture of Operational Excellence

Build your brilliant industry

September 30, 2015

powered by #IndustrialInternet

Greg Flickinger, Snyder’s Lance

Steve Schlegel, OpX Leadership Network

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MOVING OPERATIONAL EXCELLENCE FORWARD

7,600,000 results

683,670 involved

OPERATIONAL EXCELLENCE DEFINED

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Operational Excellence is a philosophy of leadership that drives deliberate and sustainable improvement by focusing on the needs of the customer, empowering employees, and optimizing processes.

MOVING OPERATIONAL EXCELLENCE FORWARD

• community of Manufacturing , Engineering & Operations professionals

• Over 170 companies

on solving common operational challenges

• Develop best practices and

protocols for industry

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BEST PRACTICES: BY INDUSTRY FOR INDUSTRY

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IMPROVING ADOPTION OF NEW INITIATIVES

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The Engagement Framework Creating the Conditions to

Engage Your Workforce

Greg Flickinger Ph.D.

VP Manufacturing and Corp Engineering Snyder’s – Lance Inc.

September 30, 2015

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ENGAGEMENT STATISTICS

• “Engaged employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward.”

30%

52%

18%

Engaged Not Engaged Actively Disengaged

* Gallup’s 2013 State of the American Workplace Report

31.5% 17.5%

51% ** 2014 Gallup Engagement Update

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ENGAGEMENT STATISTICS

Dale Carnegie® 2012 Survey

29%

45%

26%

Engaged Not Engaged

Actively Disengaged

22%

39%

23%

16%

Highly Engaged Moderately Engaged

Passive Actively Disengaged

AON Hewitt 2014 Trends in Global Employee Engagement

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VALUE OF ENGAGEMENT

Source: Gallup’s 2013 State of the American Workplace Report

-80% -70% -60% -50% -40% -20% -10% -30% 10% 20% 30% 0%

Absenteeism

Shrinkage

Safety Incidents

Patient Safety Incidents

Quality (Defects)

Customer Ratings

Productivity

Turnover High Turnover Orgs

Low Turnover Orgs

Profitability

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VALUE OF ENGAGEMENT

$450-$550 Billion annual Lost Productivity due to

disengaged employees - Source Gallup

Companies with Engaged Employees outperform

those without by up to 202% - Dale Carnegie

$11 Billion is lost annually due to employee Turnover

- Dale Carnegie

High, Sustainable Engagement companies

Operating Margins are 3X higher than those with

the lowest levels of engagement - Towers Watson

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CULTURAL OUTCOMES OF ENGAGEMENT

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WORKFORCE DEVELOPMENT SOLUTIONS GROUP

• Diverse Group of Leaders

– Commissioned in early 2012

– Experience across many companies

– Worked in many functions

– Practitioners

• Objective: Codify how Leaders made the “Magic” happen

• Published: White Paper in Spring of 2015

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ENGAGEMENT FRAMEWORK

• Define the conditions that create an environment to allow and support engagement

Roadmap Diagnostic

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Engagement - A high degree of emotional attachment, intellectual commitment and behavioral actions creating ownership and generating individual, team and organizational performance.

ENGAGEMENT

Values

LEADERSHIP

Mission / Vision / Purpose

*Currently at Campbell’s

ENGAGEMENT FRAMEWORK

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EMPOWERMENT CONNECTION

ENGAGEMENT ENABLEMENT

Values

LEADERSHIP

Mission / Vision / Purpose

ENGAGEMENT FRAMEWORK

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HOW DO WE START?

EMPOWERMENT CONNECTION

ENGAGEMENT ENABLEMENT

Values

LEADERSHIP

Mission / Vision / Purpose

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CASE STUDY RESULTS

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CASE STUDY: CHARLOTTE SALTY SNACKS PLANT

• Background

– 160 Employees

– Worst performing part of the site

– Known as the last stop out the door

– Decision made to invest in new kettle equipment for the plant

– Expected ROI of 12.6%

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ENGAGEMENT FRAMEWORK

EMPOWERMENT CONNECTION

ENGAGEMENT ENABLEMENT

Values

LEADERSHIP

Mission / Vision / Purpose

• Improved Kettle Project ROI by 55%

– Project delivered on time and below budget

• Best results in plant’s history

– 47% reduction in downtime

– 32% reduction in Raw Material waste

– 31% reduction in Packaging Material waste

– 50% reduction in over pack

– 70% reduction in consumer complaints

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CASE STUDY RESULTS

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CASE STUDY RESULTS

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2.22 2.24

2.28 2.26

2.51

2.01

2.16

2.20 2.18

2.11

2.20

2.26

2.02

2.13

2.08 2.05 2.05 2.06

2.00 2.01

1.97 1.94

2.07

2.03 2.04

1.96 1.96 1.93

1.85

1.79

1.94

1.80

$1.700

$1.800

$1.900

$2.000

$2.100

$2.200

$2.300

$2.400

$2.500

$2.600

Cost Per Pound

5/26/13 - Installation Complete 6/03/13 - Commissioning Complete 6/12/13 - Line at 100% Rate

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CASE STUDY: SUGAR CREEK FOODS

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Contract manufacturer using the Engagement Framework to launch its new plant as a High Performance Work System

Current • White Paper Download http://www.opxleadershipnetwork.org/ • Foundational Diagnostic (Under Development)

Future • 47 Element Diagnostic • Adoption Tools • User Groups

ENGAGEMENT FRAMEWORK: NEXT STEPS

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http://www.opxleadershipnetwork.org/

QUESTIONS