Implementing Kaizen Philosophy Within Hidroelectrica Author: Ionela Stancu - Project Manager Crowne Plaza Hotel, Bucharest, November 21, 2011
…Making Good Companies Great ... The Conference is organized by KAIZEN Institute ® Romania, together with KAIZEN Institute ® Global, adicted to Kaizen Management ®/ Lean Management – Continuos Improvement Management.
PROJECT TITLE : “FORMAREA ŞI PERFECŢIONAREA PERSONALULUI SOCIETĂŢII, ÎN CONFORMITATE CU STRATEGIA DE DEZVOLTARE A RESURSELOR UMANE, BAZATĂ PE PRINCIPIILE ÎMBUNĂTĂŢIRII CONTINUE A ÎNTREGII ACTIVITĂŢI, ÎN SCOPUL CREŞTERII CAPACITĂŢII DE ADAPTARE A SOCIETĂŢII LA MEDIUL ECONOMIC ÎN SCHIMBARE”. • The Proiect is financed from Sectorial Operational Program Developing of Human Resources 2007-2013: Invest in people ! • State help scheme for general and specific proffesional training “Money for Professional Training !” • Priority axis 3 “Rising the ability of workers and enterprises” • Major intervention domain 3.2 “Training and support for enterprises and employee for promoting adaptability” • ID number of the contract: POSDRU/77/3.2/A/61491 • Beneficiary: S.C. HIDROELECTRICA S.A. • Project duration : 21 Months • Project budget: Hidroelectrica SA contribution 40,95% 600.000 lei Grant Financial assistance 59,05% 865.000 lei
Project goal • The Project promotes a gradual change of mentality in the organization by introducing the KAIZEN concept, the continuous improvement of process efficiency in organization ; • Certifying a number of specialists within the organization for continuing the training in process improvement after finalizing the project as well project sustainability; • The training of 17% of the employees for a continuous improvement of their activities, and the processes (30.04.2012).
We’ve begun to build the project’s culture….. CONTINUOUS IMPROVEMENT: A STORY FROM THE TIME OF ESOP THE IMAGE BELONGS TO “KAIZEN: THE KEY TO JAPAN’S COMPETITIVE SUCCES, BY MASAAKI IMAI (MCGRAW HILL, 1986) CONTINUOUS IMPROVEMENT, in small steps Climbing step by step on a steep slope
INNOVATION, a major change, with fast improvement
Jump over a step
The activities of the project • • • • •
1. Project management 2. Public aquisitions 3. Selection of the target group 4. Training of the target group 5. Strategy and work procedures development for implementing the continuous improvement philosophy in the entire organization PROJECT SUSTAINABILITY • 6.Dissemination of the results • 7. Promotion and project visibility
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Completed implementation stages • Opening Project Conference • SELECTION • TRAINING: – Employees Awareness in subsidiaries through organizing an awareness course (120 employees, the courses were organized in 4 subsidiaries) – Course for process improvement specialists (45 employees) – Course for process improvement managers (15 employees)
The strategy for the dissemination of the Kaizen philosophy in the company
The strategy’s expected results Dissemination and continuous sustainability of the project for training of our own employees in the next three years:
• • • •
Until 30.04.2012: 17% of employees; Until 31.12.2012: 40% of employees; Until 31.12.2013: 65% of employees; Until 31.12.2014: up to 90 % of employees.
STRATEGY - in development together with KAIZEN Institute Romania ‌. 1.1 AWARENESS through practical and theoretical training
I. EMPLOYEE TRAINING
17% 90%
1.2 TRAINING THE NEW KAIZEN TRAINERS
until 31.12.2012 A minimum of 5 sites 5S/ SH
Development of 5S sites
II.COST AND STOCKS REDUCTIONS
Development of TPM sites
Flow optimization Stock reduction
until 30.04.2012 until 31.12.2014
4 sites/ SH
A minimum of 3 flows
Kanban for supplies
The project’s results • The annual minimum numbers of suggestions for process improvement = 2 /employee • The number of suggestions thet can be implemented from the total of suggestions received from the employees =a minimum of 5%/ year • 2% from the estimated annual increase for work efficiency in physical units for the total medium employees will represent the effect of implementing the process improvement strategy.
This is how it started……. Opening Conference, 16.11.2010
The portrait of the kaizen manager: Strong points= talent+ (abilities + knowledge) • • • • • • • • • •
Performance oriented Willing to learn and to teach others With respect for work and profession Good team work abilities Creative Tenacious Responsible Ambitious An empathic person Modest 13
Selection of the target group • The selection procedure developed with the KAIZEN Institute Romania … How? in cascade • 120 employees awareness trained in the KAIZEN Basics 45 process improvement specialists 15 kaizen managers.
SELECTION STAGES
Selecting the employees for the Managers Training Program
Selecting the employees for the Awareness Program
Selecting the employees for the Specialists Training Program
Selecting the employees for the Dissemination Program (900)
Criteria for the selection of the 120 employees group that were trained in the KAIZEN philosophy • Results obtained by the employees at the annual individual performance assessment; • Results obtained following the occupation interest questionnaire applied by the company’s psychologists; • Territorial dispersion (implication of all subsidiaries). 700 EMPLOYEES from those with superior studies applied ( about 40%) !!!!
Criteria for the selection of the 45 specialists process improvement group from the employees that were trained in the KAIZEN philosophy • Results obtained in the awareness program (theory and involvement in the 5S sites); • Supplementary: territorial criteria (maximum 6minimum 2 employees qualified as process improvement specialists/ subsidiary depending on its size) ….
Criteria for the selection of the 15 kaizen managers group among the certified process improvement specialists • Results obtained within the process improvement specialists program (35% theory and 35% KAIZEN practice); • Future KAIZEN managers Leadership Potential (30%) evaluation performed with an instrument developed by the GALLUP company for HIDROELECTRICA SA. • Supplementary: employee desire, territorial criteria (minimum 1 manager / subsidiary ) ….
TRAINING (phase 1) : Awareness Courses Where are we training the employees in KAIZEN awareness? ....at BISTRIȚA, PORȚILE DE FIER, ARGEȘ and VÎLCEA
Oradea
Bistrita Bistrita
Cluj Cluj Sebes
Hateg Hateg
Caransebes Caransebes
Sibiu
Sebes Sibiu Rm Curtea Tg .Jiu Jiu Valceade Arges Tg
Rm. Valcea Slatina Portile Portile Fier de deFier Slatina
Buzau Buzau
Bucuresti Bucuresti
The subsidiaries where we implemented the awareness program
Bistrita Hydroelectric Subsidiary, Stejaru HPP
Portile de Fier Hydroelectric Subsidiary, Porțile de Fier 1 HPP
Curtea de Arges Hydroelectric Subsidiary, Vidraru Dam
Ramnicu Vilcea Hydroelectric Subsidiary, Lotru – Ciunget HPP
First stage of training: AWARENESS COURSES IN THE FOUR SUBSIDIARIES :
Ramnicu Vilcea
Portile de Fier
Curtea de Argeș –Multifunctional Hall
Bistrita- Piatra Neamt
“5S” Site Organization in subsidiaries
Ramnicu Vilcea – Office Turnu HPP
Portile de Fier - Warehouse
Curtea de Arges – Administrative office Vidraru HPP
Piatra Neamt – Plant dispatcher
The teams worked efficiently !
Ramnicu Vilcea – Engine Hall Turnu HPP – rack tidying
Porțile de Fier - Warehouse
Curtea de Arges – Administrative Office Vidraru HPP
Piatra Neamt - Warehouse
We found and solved the problems ... Numar de Numarof probleme identificate 93.71 % % Number ofprobleme problemsrezolvate/ solved/ Number problems identified == 93.71
Number of problems solved/ Number of problems identified = 93.36 %
350 286
300
268
250 200 142
150 88
100 56
132
problems probleme identified identificate
problems identified
probleme problems rezolvate solved
problems solved
84
52
50 0
S1
S2
S3
sortare Sorting
ordonare Tidying
stralucire Cleanliness
TOTAL
Sorting
Ramnicu Vilcea
Tidying
Cleanliness
Curtea de Arges
Number of problems solved/ Number of problems identified = 98.03 %
Number of problems solved/ Number of problems identified = 95.97 %
problems problems identified identified
problems identified
problems problems solved solved
problems solved
Sorting
Tidying
Cleanliness
Portile de Fier
Sorting
Tidying
Cleanliness
Piatra Neamt
The power of visual management ….
Ramnicu Vilcea – Warehouse Turnu HPP
Portile de Fier - Office
Curtea de Arges – Engine Hall Vidraru HPP
Piatra Neamt – Dispatcher Room
Second stage of training: Process Improvement Specialists Course
Lecturer KAIZEN Ing. Marian Dumitru Lecturer KAIZEN Ing. Dan Stavﾄビ
Process Improvement Specialists Course
Period : February – July 2011, 152 hours/ (72 theory + 80 practice) – Module 1 –Kaizen Basics – Module 2 – Total Productive Maintenance Basics – Module 3 – Total Flow Management Basics – Module 4 – Total Quality Management Basics – Module 5 – Total Services Management Basics
1- 12 August 2011: Visits in sites from the Kaizen lecturers & Project management team in the 13 Hidroelectrica’s subsidiaries
1. Caransebes HS
3. Slatina HS
2. Portile de Fier HS
4. Buzau HS
1- 12 August 2011: Visits in sites from the Kaizen lecturers & Project management team in the 13 Hidroelectrica’s subsidiaries
5.Oradea HS
7. Cluj HS
6. Sebes HS
8. Sibiu HS
1- 12 August 2011: Visits in sites from the Kaizen lecturers & Project management team in the 13 Hidroelectrica’s subsidiaries
9. Bistrita HS
11. Ramnicu Vilcea HS
10. Hateg HS
12. Slatina HS
1- 12 August 2011: Visits in sites from the Kaizen lecturers & Project management team in the 13 Hidroelectrica’s subsidiaries
13. Targu Jiu HS
The Visits from the Kaizen teams in the subsidiaries (gemba) had as purpose, monitoring the implementation of knowledge obtained through applying the Kaizen philosophy and practice in Hidroelectrica’s subsidiaries. The necessary corrections were performed for the efficient development of activities.
Third stage of training: Process Improvement Managers Course ‌
Process Improvement Managers Course
Period : September – November 2011, 144 hours/(78 theory + 66 practice) – Module 1 – Kaizen Coach – Module 2 – Kaizen Toolbox – Module 3 – Total Flow Management Basics – Advanced – Module 4 – Kaizen Managers – Module 5 – Kaizen Leadership
Project visibility ….. • DISCUTIONS FORUM and Kaizen information exchange on the internet. • COMPANY’S INTRANET –The development stages of the project were posted on Hidroelectrica’s intranet;
• Posting on Hidroelectrica’s website of the press releases concerning the stage of the project; • Publishing in Hidroelectrica’s 2010 ANNUAL Report of an article about the project.
Step by step…. A race we began with 120 employees, we’ll continue it with 17% of the employees until 2012 and in a few years, all of the company’s employees will enter the race ….
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Thank you for your attention!
HIDROELECTRICA SA
3 Constantin Nacu St., Bucharest www.hidroelectrica.ro