The ShawCor Manufacturing System

The ShawCor Manufacturing System
Global Leadership and Culture
Development at ShawCor

Agenda
• ShawCor - Company Background
• The Requirement for Change
• The ShawCor Manufacturing System
• Cultural Development

Seven Independent Business Units
Bredero Shaw
Guardian
Flexpipe Systems
DSG-Canusa
Shaw Pipeline Services
ShawFlex
Canusa-CPS

ShawCor is a Global Organization

Agenda
• ShawCor - Company Background
• The Requirement for Change
• The ShawCor Manufacturing System
• Cultural Development

The Requirement for Change
We have a stable and profitable business and long term employees
No burning platform!
However, we recognized that we can …
• Reduce material waste (material over-application; quality; etc)
• Reduce downtime (Labour inefficiency; downtime; rework; etc)
• Improve processes
• Counter increased presence and pressure from global competition
• Develop Leadership & Culture for a High Performance Organization
• Drive for long term sustainable competitive advantage

Agenda
• ShawCor - Company Background
• The Requirement for Change
• The ShawCor Manufacturing System
• Cultural Development

The ShawCor Manufacturing System
SMS
ShawCor’s Continuous Improvement Program
in Manufacturing, Service, and Office

The SMS Vision
• SHOWCASE SITES
• EMPOWERED EMPLOYEES
• RELIABLE ORGANIZATION
• FLAWLESS EXECUTION
• OUTSTANDING FINANCIAL
PERFORMANCE
FORMAL DEPLOYED AUTONOMOUS WAY OF LIFE
9

SMS – Business Integration
ShawCor
Strategic Themes
The path and approach for
Continuous Improvement
Programs and
business processes
to effect our Vision . . .
The implications for
operating divisions
Alignment with
strategic priorities
Culture
PEOPLE
• SHOWCASE SITES
• EMPOWERED EMPLOYEES
• RELIABLE ORGANIZATION
• FLAWLESS EXECUTION
• OUTSTANDING FINANCIAL
PERFORMANCE
GROWTH
SMS GUIDEBOOK
Embodiment of principles
& the desired culture
METHODOLOGY
ShawCor Mission
& SMS Vision
FLAWLESS
EXECUTION
TRAINING
SMS ASSESSMENT
Leadership
INNOVATION
MASTER PLANNING
KNOWLEDGE SHARING
Engaged
Leadership
LEADERSHIP
Processes
Resources, Support & Guidance
Capable and
reliable processes

SMS Programs
ShawCor Manufacturing System
2011 Guidebook
RELEASED 07 December 2010
Copyright © 2010-2011 ShawCor Ltd. All Rights Reserved
1
SMS Guidebook Methodologies Training Workshops
SMS 2010 Assessment Results
2011
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
OVERALL SCORE
64%
Standard Operating Procedures 1.
Product & Process launch 2.
Process Improv ement Engineer 3.
Global Operations Metrics 4.
Management to lead SMS 5.
Engage Workforce Through Visual Workplace 6
Establish Quality & Process Control 7.
66%
58%
68%
68%
56%
58%
82%
SAMPLE ONLY
Knowledge Sharing 8.
57%
Updated 23 September 2010
2010 SMS Interim Assessment DRAFT Summary
SMS Assessment Master Planning Knowledge Sharing
SMS Database

How We Started
• Initial focus on Bredero Shaw
–5S
– Global Metrics
– Process Mapping
– Regional Initiatives
Measure, Measure, Measure

SMS Global initial resources
ShawCor Global SMS Support

Transition to Achieve the Vision
• Hired technical subject matter experts
• Developed formal long term program
• Created the 8 SMS Elements
• Increase focus on culture and leadership
• Developed the Annual SMS Guidebook
• Developed the SMS Assessment
• Expanded SMS to other divisions

Culture, Leadership and Process
CULTURE
• Employees are engaged and empowered
• Teams have ownership of objectives and
continuously improve targets (raise the
bar)
• Employee are competent and trained
beyond minimum requirements
• Employees are effectively improving
business performance and seek perfection
PROCESS
• Listen to the Voice of the Customer and
deliver value
• Data and fact-based analysis and decision
making is engrained at all levels
• Processes are stable and reliable;
Abnormal conditions are visible and timely
actions are taken
• Year over year reliable execution resulting
in outstanding safety, quality, delivery,
people, and financial, performance
C
P
L
LEADERSHIP
• Lead environmental and safety
program to achieve or maintain
Incident and Injury Free (IIF)
status
• Committed and actively
practicing, applying, coaching,
mentoring SMS elements in all
aspects of the operation
• “Go Look See is practiced. Facts
and data are used to drive the
way we work
• Lead by example, nurture
relationships and seek
opportunities to recognize
employees

SMS Program Elements
1. Standardized Work
2. Product/Service and Process Launch
3. Process Improvement Engineers
4. Operations Metrics
5. Management to Lead SMS
Culture
Leadership
Processes
C
P
L
6. Engage Workforce Through Visual Workplace
CLP
7. Establish Quality and Process Control
8. Knowledge Sharing
Achieving the SMS Vision relies on the balanced integration of Culture, strong
Leadership and reliable Processes in our company. Each SMS Program elements is
designed to develop and support one or more aspects of “CLP”

Global SMS Resources
ShawCor Global SMS Support
Divisional/Regional PI Engineer/ Tech Support

Agenda
• ShawCor - Company Background
• The Requirement for Change
• The ShawCor Manufacturing System
• Cultural Development

Role of Leadership
Team Members
Superintendents and
Supervisors
Site Managers
Committed &
Supportive
Leaders
Divisional
Leaders
ShawCor
Leaders

Senior Leadership development
Identifies activities that will exemplify the behavioural characteristics
that foster the desired Culture, Leadership, and Processes
Guide Contents:
• Leadership Activities
• SMS Guidebook
• Procedure for Site Visit
• Keys to Success
• SMS Tools
• Glossary

Site Manager Development
• SMS Champion Training and Certification
• Provide site managers the knowledge to
independently lead SMS at their site
• Program Composition
– SMS Concepts and Techniques
– Leadership and Coaching Skills
– Application and Sustaining SMS
– Final Assignment – Business, People,
Personal development
• VP Involvement
• Provide overview of the Champion program
• Practice concepts that apply to VPs
• Understand the VP role in enabling SMS
• Initiate actions to support participants

SMS Supervisor and Technical
Development
SMS Tactical
• A focused program that will develop specialists in the use of the SMS techniques and methodologies.
• Apply the knowledge gained to the scope of each individual’s responsibilities
P I Engineer
• SMS Implementation
• Process technical support
• Medium to Long term
Improvement Projects
• Process Management
• Complex Problem Solving
Supervisor
• Applied to daily tasks
• Front Line Leadership
• Contribute to projects / Lead
Short term initiatives
• Daily Management
• Line side Problem Solving
Raise the technical skill level
Broaden the knowledge base
Train key employees to become “change agents” to lead and drive operational improvements

Global SMS Resources
ShawCor Global SMS Support
Divisional/Regional PI Engineer/ Tech Support
Divisional CI Managers
Site Managers
Supervisor and additional technical support for SMS
Vice Presidents

Cultural Development –
Select Initiatives
• Master Planning
• 5S
• A3 – Problem Solving
• Standardized work - SOP’s; Standard Work for
Leaders
• Daily Management Process
• Knowledge Sharing Dbase
• SMS Assessment
• AME

Alignment and Engagement
Aligned
Focused
Constraining
Performing
Rewarding
Future
State
Alignment
What is the Current Reality
Characteristic of the
organization
Feeling of the people
Scattered
Latent
Confusing
Passive
Engagement
Chaotic
Liberating
Engaged

The SMS Master Plan
Timeline
On target
At risk Complete
Behind Schedule
PLAN DO CHECK ACT

Cascading and Alignment of
Objectives
Corporate
(Corp Ops/SMS)
Strategic Plan/ Business Plan
Strategic Plan/ Business Plan
Feedback
Division/
Region
(VP/GM)
Facility Plan
(Plant
Manager)
Department/
Work Cell DMP
Supervisor/
Employees

5S at ShawCor
• 5S was one of our first initiatives
• It engaged our employees in business improvement

5S Activity Boards
The 5S Activity Board is used by the team members to write new 5S ideas and
their estimated date of completion.
5S Activity Board
What Who When
1S
2S
3S
4S
5S
- Remove construction material from blaster area Jim 1-Mar-09
- Designate a location for new shop vacuum Jim 1-Mar-09
- Add cleaning of FBE booth guns to weekly schedule Jane 1-Mar-09
SAMPLE
- Paint new guards to site standards -
Revise blaster signage to reflect white/blue standard -
Stage all cables along south side of blaster
Stuart
Mike
Dave
4-Mar-09
4-Mar-09
15-Mar-09
- Complete 5S intro training for 2 new hires Peter 4-Mar-09
Each work area or team is assigned a set of 5S Notice and Activity ty Boards

5S at ShawCor
Our 5S model and workshop style
engages people through teamwork
and inspires them to come up with
creative and effective solutions to
everyday problems.

A3 Problem Solving Methodology
• A ShawCor wide standardized and structured problem
solving methodology aimed at developing…
• Fact and data driven root cause analysis and decisions
• Discipline to follow each step of the problem solving process
• Ownership and sense of urgency in addressing problems
• Employee and stakeholders involvement

Standardized Work
• Standardized Operating Procedures
• Documented “Set Up” and “Run” procedures
• Leader Standard Work
• Documented leader behaviors & tasks focused on process support
• Establishes supportive leadership focused
on process to achieve results
• Base for future improvement
• Reduces the learning curve
• Consistent and reliable execution
• Improved employee engagement
Leader Standard Work Template - Operations Manager
Time Tasks Time
□ Lead Plant production meetings
□ Regularly conduct audits (ASA, SMS, 5S, etc)
□ Review staff standard work
□ Review activities with a l department heads
□ Approve reviewed documents (MOC, Quality, RA, etc)
□ Review and update Master Plan with staff (monthly)
□ Initiate actions to complete master plan on time
□ Lead monthly site meetings
□ Update GM about the progress/trends
Daily Assigned Tasks
Time Notes/Flow Interrupters
□ Gemba walk with supervisor (once a week)
□ Attend DMP meetings (rotational basis)
Date:
Name:

The Daily Management Process
Team Members
High frequency,
regularly scheduled
two-way discussions
between leaders and
their organizations
facilitated by
standardized metrics
and display boards
Supportive
Leadership
Superintendents and
Supervisors
Site Managers
Divisional
Leaders
ShawCor
Leaders

We engage our employees around the world in our
business

Global Workforce Engagement
• Kembla Grange DMP Walkabout.wmv

Knowledge Sharing – SMS Database

SMS Assessment - Sample
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
OVERALL SCORE
54%
81%
Standard Operating Procedures
47%
92%
Product & Process Launch
71%
77%
Process Improvement Engineers
76%
Global Operations Metrics
66%
80%
Management to Lead SMS
48%
82%
Engage Workforce through Visual
Management
52%
82%
Establish Quality & Process Control
38%
72%
Sharing of Best Practices
29%
80%
2010 Initial Final Assessments 2009 Assessment

AME Conferences 2008 - 2011
ShawCor Events
• Daily 5:05 Team Review
• Best Practice presentations
• Leadership Update
• SMS Program Launch
• Dinner & Awards Night
ShawCor Attendance
2008 San Diego 11
2008 Toronto 32
2009 Charleston 7
2009 Calgary 30
2009 Kentucky 32
2010 Baltimore 85
2011 Calgary 50
2011 Dallas ≈ 70+
6

Insights from Industry Experts

Daily 5:05 Sharing & Learning Sessions
Baltimore Convention Center
Mon – Thurs 5:05 pm – 6:05 pm
Room 323
Name :
Division:
List three ideas or concepts that you learned today
How can these ideas be applied to our business
The Daily ShawCor 5:05
WE SHARE OUR LEARNING
EXPERIENCES…
….WE LISTEN
and WE SPEAK A COMMON LANGUAGE
ACROSS ALL LEVELS

Participation in AME Events
Southern California Lean Tour - Bredero Shaw Fontana March 3-4, 2010 | Riverside/Ontario, CA
2010 AME Baltimore Nov 15-19 2011 AME Calgary June 6-9
• “Flawless Execution through the Daily
Management Process”
ShawCor & ShawFlex
• Best Practices Plant Tour Site
Flexpipe Systems
• “Building a Reliable Organization”
Bredero Shaw

Recognition of Achievements

Supportive and Engaged Leadership
Team Members
Superintendents and
Supervisors
Committed
Supportive
& Engaged
Leaders
Site Managers
Divisional
Leaders
ShawCor
Leaders
How are we
doing

Kabil
Kevlar
Sleeve
Hearing
Protection
Hand
Foot
Safety
Gla ses
Line:
Hard
Hat
LATCH
1
Photo 6
E-STOP
Buzzer
Photo 5
Photo 7
+
Photo 8
1G
Photo 9
M
i
Successful Plants
• Have committed, supportive, and engaged leaders and support staff
• Have demonstrated knowledge of SMS and sustain results
• Have changed the way they work
• Have demonstrated reliable and predictable performance
• Are developing best practices for the organization to learn from
• Have taken ownership & built local capability
Reviewed and Approved by;
QA Manager HSET Manager
Operations Manager Plant Manager
Dave Conroy
Prasetyoadi Rab Wilson
Alistair Salmond
Indonesia
Country:
Plant:
Rock Jacket
Coating Rock Jacket
SOP#
Work Station
Required PPE
Activity & Seq. Operating
Positions
1 - Wire Prep 2 - Wire Latch (3)
3 - Plant Operator
4 - Supervisor
5 -
Raw Materials & Equipment: Wire Cutter, Shear, Wire Holding Rack with Shaft and Post, E-Stop, Buzzer
Op No Main Steps Hazard/Non-Conformance
Control Measure
KP Reference Documents
1,2,3,4,5 1
Wire Mesh Feed
RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING RJ COATING
Stay Clear from Forklift Path, adequate work
Forklift delivers Wire Bundles from Storage to the Wire Station Area.
5,4 1A Struck by Forklift or Wire Bundle
space, adequate i lumination, authorised &
Verify the Wire Gage or Specification with Supervisor
trained operator, constant communication
+
between coworker
Long Handle Shears, hand leather glove,
Use Wire Cu ter, Cut Banding Strap to separate Individual Wire Ro ls Cuts/Laceration, struck by wire ro l,
2 1B proper work position, constant communication
from Bundle (Photo 1 on the background)
trip/fa ling
between coworker, fo low manual handling
+
procedure properly, team work
2 1C Use Wire Cu ter, Cut Front Wire to form a Latch (Photo 2)
Cuts/Laceration, Projectiles Wire
Handleather glove, long sleeve shirt
+
2 1D When required, Use Wire Cu ter, Trim from Center of the Ro l Cuts, Puncture
Handleather glove, long sleeve shirt
+
Fo low manual handling procedure properly,
Muscle Strain, Cuts/Laceration, Fa l/Trip
1,2 1E Ro l the Wire Ro l and Position behind the Wire Rack (Photo 1)
team work, housekeeping, provide plastic/wire
Hazard
bin, hand leather glove +
Fo low manual handling procedure properly,
Muscle Strain, Cuts/Laceration, Fa l/Trip
1,2 1F team work, housekeeping, provide plastic/wire
Ro l the Wire Ro l into the Rack using the ramp from the rear of Wire Hazard, pinch point
bin, hand leather glove +
Stand, Place Shaft into Center Ro l, Pu l out 1 foot of Wire (Photo 3)
When the Wire is about 2-3 feet or 1 meter left, Latch the wire together
Constant communication with coating operator,
1,2 by placing Fist on the Wire and Spring the Wire back, then release with Pinch Point, Cuts, Laceration, Puncture
emergency stop, hand leather glove
your two finger (Photo 4)
Push Buzzer ONCE when Latch is made/a tached (Photo 5), to notify
1 1H Non Continuous Operation
Constant Communication with Plant Operator
Plant Operators and others that Wires have been Latched
i
Watch the latched wire as i travels through the Ro lers (Photo 6, 7) and
1 1I Non Continuous Operation
Constant Communication with Plant Operator
Applicator (Photo 8)
E
1,3 1J IF Latch is missed/broken/comes apart at some point of travel, Hold the Misfeed or Discontinuous Operation Never Fo low Wire into Ro ler E
Buzzer Down (Photo 5) until Plant Operator STOP the Coating
Repair the Latch, then Press the Buzzer to Notify Plant Operator to Start
1,3 1K Misfeed or Discontinuous Operation Never Fo low Wire into Ro ler
Coating again
E
Once Latched Wire is trave ling smoothly, Remove Shaft, Push Down
Don't place your hand/finger on pinch point,
1 1L Pinch Point, Cuts, Laceration, Puncture
pedal to a low new Wire ro l to advance forward (Photo 9)
hand leather glove
+
Repea the same steps until finish Concrete Coating operation. Return
1,2,3,4 1M Missing Tools
Housekeeping Workplace Organization
a l Tools at the end of shift operation
5S
+ Q
SOP-RJ-005
WIRE FEED OPERATION
END OF WIRE FEED OPERATION
5S E ficiency =
Forklift Driver
Photo/Sketch
Key Points Safety =
Quality =
5S =
Information =
E CMV =
Environmental =
SOP Revision #: 001 Originator: CCT Team
Revision Date: 3-Feb-10
Status:
Approved
Page: 1 of 1
Protection
Protection
Center Shaft
Photo 1 Photo 2
Join Latch
Photo 3 Photo 4
Wire Rack

SMS Global Leadership and Culture
Q&A