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MANAGING

MANAGING

PUBLISHER’SNOTE Look

PUBLISHER’SNOTE Look Forward with LeanSigma ® can increase capacity, improve The past year has been extraordinarily dramatic politically and economically. On both fronts, the need for change has become transparent to the most casual observer. On the business side of the ledger, the pain of the “Big T h re e” U.S. auto makers is a powe rf u l lesson about the value of embracing the broad tenets of “lean.” Putting aside for a moment the pressures that unions placed on the auto makers, what crippled their capacity to compete was an unwillingness to properly transform their companies to meet the market’s need for quality, value, innovation, and agility. In a downturn, companies tend to choose layoffs, shutdowns, and deep cost cutting as survival tools. While some of these may be unavoidable, consider also taking a hard look at your business, concentrating on what you do best, and placing a renewed focus on your customer connectivity, creativity, and search for waste. The goal must be speed and agility as well as doing more with less—and figuring out how to inject these imperatives into every last employee. When dealing with market fluctuations and economic stress, look closely at the characteristics of lean companies that have successfully transformed their enterprises for competitive advantage in any business climate. Lessons like increased responsiveness to changing customer demands can sustain market share and customer loyalty. • Focus on what you can control. Take waste out of your operation. Remove what d o e s n’t add value to free up cash. Re - e x a m i n e your inventory, your lead times, your energy use, and your accounts re c e i vable pro c e s s e s—the most obvious sources of waste. Norfolk Southern Railroad has done just that by improving its locomotive maintenance processes as well as the velocity of trains through rail yards—all to help insure that their customers get their freight on time, every time. (p. 2) A regional airline has also found that focusing on re m oving waist can shorten maintenance times, keeping planes flying longer. (p. 10) • Tighten connectivity to customers. Listen to your customers. Go to them and find out what they really want through discussions and observations so that you can develop immediate, i n n ova t i ve solutions to their unart i c u l a t e d needs. Getting close to your customers is essential to even finding out where waste is. Focus on lead time, quality, and value innovation. • Create synchronicity between your supply chain and the rest of your enterprise. Create partnerships up and down your value chain. • Leverage gains for growth. Every time you eliminate non-value-added steps and reduce waste in your processes, you productivity, and cut capital spending. Seaman Corporation has done just that, through rigorous project selection and acceleration of their lean journey to dramatically increase productivity and grow its business. (p. 6) • Create a current, compelling vision for the future. Communicate the “strained times” vision with everyone in the organization and clarify everyone’s roles. Develop a roadmap to achieve that vision that everyone can follow. Communication derails speculation and allows everyone to concentrate on w o rking together to improve the business. D Pl oy Strategy is a web-based visual management solution that will help align corporate strategy and objectives with day-to-day efforts. (p. 13) The tools are there and have been there a long time—it’s just a matter of creating the sense of uergency in 2009 to use them. We need to become more impatient, more focused, and be willing to go back to fundamentals. Revisit the things that have worked for you in the past and drive into them even deeper. Push lean down into the very roots of your organizational culture. Doing so will ensure that your company is resilient against the unexpected. LeanSigma ® will work even during economic slowdowns if you fully embrace its principles. It serves as an ally in good times as well as bad. Indeed, it can be the antidote to the pain that may lie ahead of all of us. Hard times don’t last for ever, resilient people do. Anand Sharma, President & CEO TBM Consulting Group, Inc. asharma@tbmcg.com

Q 1. 09 MANAGING TIMES LEANCOMMUNITYNEWS A publication of TBM Consulting Group 4400 Ben Franklin Boulevard Durham, North Carolina 27704 800.438.5535 www.tbmcg.com Publisher Anand Sharma: a s h a r m a @ t b m c g . c o m Executive Editor William A. Schwartz: bschwartz@tbmcg.com Managing Editor Julie Poudrier: jpoudrier@tbmcg.com Featured Columnists Mike Caldwell Bill Remy Jonathan Wheatley Contributors Samantha Bason Olga Bouche Richard Holland Gary Hoover Gary Hourselt Beth Ann Hunt Gérard Massai Art Direction and Design IONA design www.ionainteractive.com Bob McElroy Angela Scenna Jim Scott Mike Serena Noel Temple Janet Warner Printing Carter Printing & Graphics, Inc. www.carterprintingnc.com Published quarterly in Durham, NC 4400 Ben Franklin Boulevard Durham, NC 27704 TBM, the TBM logo, and LeanSi g m a ® a re re g i s t e re d trademarks of TBM Consulting Group, Inc. If you would like to receive this journal via email, send your vital information including email address to tbm@tbmcg.com On the cover: Norfolk Southern Railway, one of the nation’s premier transportation companies, has focused LeanSigma ® on its business for one main reason: to provide efficient transportation for its customers so that they get more value for their transportation costs. Pierre Chevrier has been named site director for Siemens in Grenoble, France. Yves Doin, former managing director of Siemens Grenoble left in October 2008 to join Schneider. … Greg Andersen has been named vice president of global sales and marketing for Harsco Minerals in Pittsbugh, PA. … Ma rk El i n s k i is the new continuous improvement manager for Harsco Track Technologies (HTT) in West Columbia, SC. Scott Jacoby, vice president and general manager of HTT is an enthusiastic support e r of the lean transformation approach. … Ben Cole at Harsco Air Exchangers in Tulsa, OK, was recently named continuous improvement leader for the site. Ben is a graduate of the University of Nebraska engineering school and comes to Air Exchangers with a vast experience of lean manufacturing. … Glen Armstrong recently joined Special Metals Corporation in Huntington, W V, as continuous improve m e n t leader. … Pactiv in Temple, TX, has expanded its continuous improvement team under the direction of Lorra Tindell, continuous improvement leader, to include La Donna Thigpen and Jeff Williams. Their positions were created to bring a greater focus on and support of continuous improvement at the Consumer Products Division in Temple. … Congratulations to all the recent Lean Certification graduates: Michelle de Leeuw, Jaco VanZyl, Josh Hamman, Marius de Waal, Sonja Stadler, and Roniel Sollal, BHP Billiton, South Africa; Aditi Gilman, formerly of Appleton Papers, Roaring Spring, PA; Greg Leisgang, and Brian Frost, Appleton Papers, Appleton, WI; Roseann Milliken, Appleton Papers, West Carrollton, OH; Robbie Watters, Compressor Systems, Midland, TX; Todd Kearns, Saint-Gobain in Dolton, IL; Jacob Stucky, and Dan Lindsay, Saint- Gobain Containers in Port Allegany, PA; John Cotton, formerly of Douglas Dynamics; Greg Masciana, Tektronix in Beaverton, OR; Erik Lagoy, Hardigg Industries, South Deerfield, MA; Finn Oleson, Danfoss, Apodaca, Mexico; Randy Hanson, Hayward Pool Products, Nashville, TN; Dave Johnson, ConMed, Utica, NY; Jessica Looman, Watkins, Inc., Winona, MN; Devon Leavitt, DST Output, South Windsor, CT; Monika Galius-Auburn, formerly of Advanced Bionics, Manhattan Beach, CA; Francisco Pereda, Hydro Aluminum, St. Augustine, FL; Jeff Moates, Carlisle Food Service Products, Oklahoma City, OK; Eric Noble, Owens Corning, Kansas City, KS; and Tina Varga, Owens Corning, Toledo, OH. Recent Lean Certification graduates from GEX in India include Jagdish Kumar, G. Thirumoorthy, C. Sasikumar, H. Harish, Nagesh Bhonsle, R. Manoj, S. Kamal, K. Arun Shenoy, Ananth Padmanabha, Syed Saleem, and Raghavendra Shedbal. … TBM also certified a number of SixSigma black belts and green belts in 2008. Those receiving their black belt certification included Anderson Trogo, Murilo Ozanan, and Soraya Mendes of Daimler-Chrysler Brazil; Phil Withey, Mike Looney, Kenton Cawley, Jens Hinrichs, Howard Kilgore, and Remco van der Linden of Doncasters; Scott Schram of Hayward Pools; Jonathan Ziepfel of Pella Windows; Alyson Wood of Phifer, Inc.; and Michael Boer of Tektronix. Those receiving green belt certification included Joe Kavanagh and Thomas Lewis of Canadian Forest Products; Carlos Paiva, Fábio Morelli Vieira, Leandro Gi, Luciano Azevedo, Marco Aurêlio Coutinho, Mario Grez, Suzana Pelikman, and Vinicius Silva of Daimler Chrysler Brazil; and Bill Hintalla and Ebru Selcuki of Sealy. ... In TBM corporate news, Jim Scott has received a Golden Dome Award from the State of Iowa. Jim was a member of the Iowa Department of Natural Resources Conservation and Recreation Division’s “Streamliners” team, which received the “Team of the Year” award for reducing the registration and titling process for snowmobiles and ATVs from 311 days to one day. Team of the Year awards recognize documented, measureable results supporting completion of a project that improved the effectiveness or efficiency of processes within the Iowa State Government, or reduced costs, improved customer service, or assisted Iowa State government in meeting established goals. Richard Holland is now managing TBM’s India practice. Richard will remain in charge of the UK operation while he helps us further develop the practice in India. Gary Hoover has been named manager of the European consulting practice. Gary and his family will move to Germany, where he will be based for the next three years. Eddie Kembery has been named team leader for the UK practice. Maribel Barrientos is the new assistant in the Mexico office. Managing Times | Q1.09 www.managingtimes.com 1

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