Deploying the Complete

Lean Daily Management System

Matthew Diehl
Lean Manager
DePuy Synthes Companies of Johnson & Johnson
Brandywine Manufacturing Center
West Chester, PA
 Deploying the Complete
Lean Daily Management System
CONTENTS
• Lean Daily Management System
• Employee Improvement System
• Change Management
• Leader Development
• Coaching Strategies
• Business Results
 Site Overview

• 285 Employees
• $70 MM operating budget
• 700K units per year
• 3,010 SKU’s
 Site Overview

• Machining
• Chemical Finishing
• Assembly
• Laser Etching
• Packaging & Labeling
Product Overview
Operational Excellence Strategy
Theory  Practice  Results
Lean Daily Management System
A visual daily performance
management system is:
Drives Action
Visual Timely & Learning
Guiding Principles for Success
Critical Success Factors
 Elements of a
Lean Daily Management System
Visual Controls
Visual Controls
 Visual Controls
P People

Q Quality

V Velocity

E Efficiency

Plant Level (Tier 3)

Department Level (Tier 2)

Cell Level (Tier 1)

 Visual Controls combined with
disciplined Leader Standard Work
P People

Q Quality

V Velocity

E Efficiency

Plant Level (Tier 3)

Department Level (Tier 2)

Cell Level (Tier 1)

 Leadership is Essential
"Leadership and management are two distinctive and
complementary actions. Both are necessary for success
… The real challenge is to combine strong leadership and
strong management and use each to balance the other."
John Kotter, Author and Professor of Organizational Behavior, Harvard Business School

“more than 70 percent of failures are driven by unproductive

management behavior and negative employee attitudes”
Keller & Price authors of Beyond Performance

"Soft leadership and culture boosts or blocks strategy,

structure, and change initiatives”
Jim Clemmer, author of The Leader's Digest
Manage Things and Lead People

Jim Clemmer, author of "The Leader's Digest: Principles for Team and Organization Success"
Complete Lean Management System
LEAN DAILY Leader
+ Visual
+ Accountability
Safety
Standard Work Controls & Discipline
MANAGEMENT Quality
Delivery
Cost
LEAN Beliefs Behaviors Actions
LEADERSHIP

Management Leadership

- Standard Work - Communication

- Visual Controls - Trust
- Accountability - Direction
- Discipline - Coaching
 Who was asked to Change?
• Plant Manager … morning meeting held on the
shop-floor (not in his office)
• Business Unit Managers … Standard Mgt Work
• Supervisors … cell-by-cell daily performance
reviews with operators
• Operators … update their own daily KPIs
• Engineers … engage operators in daily learning
Change Management was critical
Change Management was critical
“First week” Results
Machinists discuss rare scrap event,
identify inconsistency in inspection
standard work and triggers
management awareness to a non-
conformance quality problem
 “Next Week” Results
Assembly operators find new
communication techniques to
“see” delayed components
upstream in their value stream
that prevent assembly
production according to the
daily build schedule
The “soft stuff” is the hard work
Lean Leadership Development
Session #1
Lean Management

Session #2
Gemba Walk
Coaching

Session #3
Lean Leadership
 Results from our LDMS Deployment
Contributions in the first 90 days

• Work Order • 66% reduction

lead time of historical
improved overtime costs
20%
 Visual Continuous
Improvement Process
Employee Engagement is
Good for Business
“Everyone has 3 Jobs”

People in Teams Drive Performance

Let Employees Drive Innovation
Visual Improvement Idea Management
(by the employees for the employees)
Our Employees Driving Innovation
Operator Operator
Generate
Generate Idea
Idea WIPEngineer Complete Engineer
Ideas
Ideas Accepted
Accepted WIP Complete
Engineer Engineer
WIP Complete
The “OFI” Form
The “OFI System”
… our Kaizen Promotion Office
Cummulative Number of OFI's Implemented
Brandywine Palnt 2010 - 2014 YTD
1,233
1,200
1,131
1,100

1,000

900
845
800

700

600 560

500 194
400

300
225
200

100

0
Jan-10

Jan-12

Jan-13
Jan-11

Jan-14
Sep-10

Sep-11

Sep-12

Sep-13

Sep-14
Nov-10

Nov-11

Nov-12

Nov-13

Nov-14
Jul-10

Jul-12

Jul-14
Mar-10

Mar-11

Jul-11

Mar-12

Mar-13

Jul-13

Mar-14
May-10

May-11

May-12

May-13

May-14
 Impact on Quality
Brandywine Scrap and Rework
Plant Overall Percent - Last 13 Months

10,000 3.5%
1.89% 1.93%
Goal
1.24% 1.13% 1.73%
3.0%
8,000
Q3- 2011 Q4- 2011 Q1- 2012 Q2- 2012
2.5%
Units Scrapped/Reworked

6,000
2.0%

Percent
1.5%
4,000

1.0%

2,000
0.5%

0 0.0%
Nov-11
Jul-11

Jan-12

Jun-12

Jul-12
Aug-11

Sep-11

Dec-11

Feb-12
Oct-11

Mar-12

Apr-12

May-12
Month

run scrap (units) rework (units)

setup scrap (units) run scrap + setup scrap + rework (%)
Linear (run scrap + setup scrap + rework (%))
 Long-Term Performance Trends
LDMS
YR -1 YR 0 YR +1 YR +2
First Pass
Quality Acceptance Rate 97.5% 98.5% 99.2% 99.2% %
(%) Improved
Non-Conformance
Rate (%)
2.5% 1.5% 0.8% 0.8% 68%
Velocity

Scrap & Rework % 2.1% 1.9% 1.2% 1.0% 52%

Efficiency Velocity (days) 5.9 4.0 3.3 3.5 41%

WIP Turns
(component inventory)
8 26 31 23 188%
Daily Communications for Great Performance
and Continuous Improvement

COMMUNICATIONS
“LEAN LEADER” STD WORK
DAILY VISUAL MANAGEMENT
 Thank You!
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Session: WP30
Deploying the Complete Lean Daily Management System
Matthew Diehl
DePuy Synthes Companies of Johnson & Johnson
mdiehl@its.jnj.com