Practical Value, Leading-Edge Best Practices Shared

Practical Value, Leading-Edge Best Practices Shared

Network and exchange “lessons learned.

Great organizations, great individuals, and great teams all share a commitment to excellence. In this year’s AMEannual conference in BaltimoreNovember 15-19, attendees will encounter many opportunities to learn about concepts and ideas for extending best practices throughout their enterprise. In addition to a rich program of presentations, workshops, plant tours, exhibits, and other conference offerings, “Excellence Inside” participants can learn about — and share — leading-edge improvement “lessons learned” during numerous networking gatherings.

For example, conference attendees who belong to a consortium (or who are considering membership or in forming a consortium) will learn about networking and exchange activities designed to provide practical value that can be used when they return to their organizations. The Consortia Program, coordinated by Dave Hogg and Bob Kerr, will include informal presentations about best practices by participating consortia in Canada, the United States, and Australia. “One-on-one” sessions with Steven J. Spear (author of Chasing the Rabbit: How Market Leaders Outdistance the Competition and senior lecturer at the Massachusetts Institute of Technology) and George Koenigsaecker (a pioneer of lean in North America at Jake Brake and HONand author of Leading the Lean Enterprise Transformation), plant tours at consortium member sites, and a special interest session on how to start a consortium are among additional planned activities for consortium members. A variety of additional networking and idea exchange sessions will enable conference attendees to gain added value from their conference participation.

Learning for Leaders

AME’s commitment is that participants will find excellence and value in all aspects of the conference program, according to Dan McDonnell, conference marketing chair. Learnings that will help leaders initiate and implement effective improvement strategies for rejuvenation of their organization will be takeaways for attendees, he noted. 

Among the keynoters sharing their inspiration and experiences will be Malcolm Gladwell, author of the book, Outliers: The Story of Success (suggesting a new approach for helping people succeed by using the factors that really foster success). Keynoter George Koenigsaecker is a principal investor in several lean enterprises, board member of The Shingo Prize for Operational Excellence, AME, the ThedaCare Center for Healthcare Value, Ariens Outdoor Power Equipment, Baird Capital Partners, Simpler Consulting, and Watlow Electric Corporation; he led the lean conversion of (furniture manufacturer) HONCompany.

Colleen Abdoulahwill also give a keynote presentation. She is the only female CEO to lead a Top 20 cable company and has guided WOW!Internet, Cable and Phone through seven years of industry-leading financial success. Abdoulah will share her views on the strategic importance of customer experience and company culture; development of gender-balanced management and leadership; and cultivation of authentic leadership. Keynoter Dr. John Toussaint is the former president and chief executive officer of ThedaCare, Inc., a community-owned, four-hospital health system in Wisconsin. He introduced the ThedaCare Improvement System (TIS), derived from the Toyota Production System that helped save millions of dollars in healthcare costs by reducing patient errors, improving outcomes, and delivering better quality care at a higher value.

Presentations and Workshops

Seven value streams of practitioner-to-practitioner presentations as well as a broad program of workshops will be offered during the conference. Presentation value streams include Customer Focus, Finding True North, Process Sustainment, Respect for People, Continuous Improvement, Daily Value Stream Management, and Material Flow; approximately 60 presentations are planned. The lineup of presenters includes representatives from Autoliv; Acuity Brands Lighting; Cogent Power Inc.; Cancer Treatment Centers of America; Alcon Laboratories, Inc.; Watlow Electric (Hannibal Plant); DJO, LLC; HID Global; Currier Plastics; GE Transportation; Barry-Wehmiller; Wenger Corporation; and O.C. Tanner. Insights about improvement strategies and results will also be shared by Eaton Corporation; AccuRounds; S&C Electric Company; Warren Distribution; Grunau Company; Fres-co System USA, Inc.; Northrop Grumman Shipbuilding; Northrop Grumman Electronics Systems/Defense Electronics; VIBCO Vibrators; Ventana Medical Systems; Harland Clarke; the U.S. Department of Housing and Urban Development (HUD); Stoner Incorporated; Ball Metal Container Operations; HABCO, Inc.;and other organizations.

Best practices in the healthcare field will be offered by presenters from ThedaCare Health System; Cancer Treatment Centers of America (CTCA); Denver Health Medical Center; St. Joseph Health System; and New York City Health and Hospitals System.

Tours

MarquipWard United, Siemens Healthcare Diagnostics, Harley Davidson, GM Powertrain, GE Healthcare, Leonhardt Manufacturing, Wright Manufacturing, and Marlin Steel Wire Products, LLCare among the conference tour hosts. Also sharing their experiences with plant “tourists” will be W.R. Grace & Co., Grace Davison Technical Center; Phillips Seafood, Inc.; EDCO(Equipment Development Company); etc. There will be special tours at Camden Yards (home of the Baltimore Orioles) and the U.S.NavalAcademy.

Added Activities for Practitioners

AME/APQC Community of Practice, lean certification, Minitab Statistical Software, and other special interest sessions will be offered during the conference. Attendees can also participate in hands-on learning kaizens, the Practitioner Idea Exchange Café, exhibits, and other conference activities. The Greater Chesapeake and Potomac(GC&P) Region of the American Red Cross, which has implemented a lean process in all blood drive operations, will conduct a blood drive and tour during the annual conference.  It now uses a pull process with standardized work guidelines and visual tools to help staff and donors move through the blood drive process.  For more information on the conference activities as well as registration information, visit http://ameconference.org.

AMEInstitute Pursues Education, Research Program

The AME Institute was created to fund and sponsor longer term programs to advance the mission of AME. So far it has funded attendance of professors and students at the AME annual conference, and also the Lean Accounting Summit.

The AME Institute board is developing a partnership with Dan Shunk and Jeff Goss of the Arizona State University School of Engineering to offer leadership development for senior managers interested in moving organizations beyond the first stages of lean implementation, that is, to extend lean principles to all functions of a company and create a culture in which lean thinking is sustained. A follow-on research program will explore how this can be better accomplished.

The AME Institute’s vision is to leverage the knowledge, experiences, and resources of people in manufacturing, primarily in North America, devoted to enterprise excellence in order to promote fresh, original, creative, and sustainable ideas for improving their workplace now and in the future. Its mission: to promote learning through experience sharing, idea broadcasting through experimentation, leadership models through examples, and knowledge acquisition via discovery.

More information about the AMEInstitute is available at www.ame.org/institute or from Chairman Basem Hishmeh at bhishmeh@aol.com or President Ralph Keller at rkeller@ame.org.  Donations to support the Institute’s programs are tax deductible. Just make out a check to “AMEInstitute” or “Mac McCulloch Fund” and send them to the AMEoffice in Rolling Meadows, IL. Or for more sustained contributions, contact Director of Development Dick Barton at dbarton@ame.org.

Champion’s Club

Champion’s Club is a special group of AMEmembers who are identified as the strategic leaders with responsibility for leading progress in their organizations. During the last year, a small team of long-time AMEChampions has focused on supporting the improvement of this group to ensure that member companies are aware of this unique opportunity to network with fellow leaders of improvement.

Over the year, the team developed the key principles that drive the Champion’s group, executed a process for identifying and contacting potential members, and created a new orientation process with a personal touch, according to team member Cheryl Jekiel. The team also developed an on-boarding process that will be used to improve how new members discover the benefits of their membership. The team will document their efforts to allow future use of their work to increase membership and provide a valuable program as part of the AMEorganization.

For more information on the Champion’s Club or to join, visit www.ame.org and select Champion’s Club; or contact Director Patrick Carguello at carguellopat@att.net or 315-387-5611.

Expanding Professional Partnerships, Alliances

AMEcontinues to expand networking and enterprise excellence opportunities through partnerships with other industry organizations. For example, a new partnership with the American Society for Quality (ASQ) was recently announced. The affiliation “will open more doors during this challenging economic time,” said Phil Roether, AMEpresident. “Our organizations and members can exchange best practices, fresh ideas, and new tools and technologies that may improve everyone’s bottom lines.”

The new partnership will offer opportunities for the Society of Manufacturing Engineers (SME), The Shingo Prize, ASQ, and AMEtogether to offer and expand their lean certification programs. “Our lean certification program consists of three levels — bronze, silver, and gold,” said Bill Baker, AME’s vice president of affiliations. “It is not just a certificate; rather, professionals must dedicate time and effort into demonstrating industry-standard lean expertise.” Additional information on the lean certification program is featured in the article, “Certification Updates, Test Taking Suggestions,” in this issue.

A memo of understanding for an AMEalliance with Productivity Alberta (PA) was also signed by Roether. He noted that Mike McAloney and Brian Bush contributed to the development of this agreement, which will offer numerous opportunities for AMEand PA members such as enhanced benchmarking capabilities, greater access to best-practice research and lessons learned, broadened marketing exposure and recognition, and expanded member access to networking, knowledge sharing, and learning opportunities.

Target Moving Into the Digital World

AMEis evaluating a possible electronic publication to supplement Target and address readers’ interest in current news, commentary, and additional information sharing opportunities. The prospects for a potential e-publication startup were discussed by Bill Baker, AME’s vice president of affiliations and benchmarking process specialist of Team AvaTar (which was made up of the Target editors and several volunteers who benchmarked e-pub best practices with other leading e-pub magazines and gathered data on related activities including content, content management, communication, cost, staffing, and frequency) at the third quarter AMEboard meeting in Chicago.

Thanks to responses from Target readers who participated in an online Zoomerang survey, Team AvaTar learned their preferences for e-publishing related to coverage, frequency, and other areas. The team agreed that readers’ input is essential to successful e-publication and that initiatives to attract reader feedback will continue.  Keep those comments coming!

Smarter, Greener Freight Transport

For potential cost savings and more environmentally-friendly practices, organizations are turning to the U.S. Environmental Protection Agency’s (EPA) SmartWaySM Transport Partnership program (www.epa.gov/smartway). Launched in 2004, it offers a collaborative effort among government, business, and consumers to reduce fuel consumption and protect the environment.

Shippers, carriers, logistics companies, and truck stops can affiliate with the SmartWay partnership and receive information/tools for cutting fuel usage and saving money. The program also provides information on companies that lease SmartWay-certified vehicles, tractors, and trailers. Nonprofit affiliates include trade and professional associations, academic institutions, government agencies, and other organizations.

Logistics partners assist shippers and carriers in making better choices for their businesses and the environment, for example. According to Jared Palmer, general counsel for Niles, ILlogistics provider AFN® (a SmartWaycertified logistics provider), “Many of our customers are under pressure to be more environmentally-friendly. The myth is that green initiatives will cost money. We are trying to dispel those myths by working with them on strategies such as consolidating shipments with other companies. By joining forces with their neighbors, consolidating shipments, and sending full truckloads to their customers’ location in the same geographic area, they are finding the ‘sweet spot’ for more efficiencies.”

Palmer noted that the SmartWay program includes a rating system for carriers, shippers, and logistics providers. “For us, they analyze how many SmartWay-approved trucking companies we use,” Palmer said. The criteria help shippers make better decisions for cost savings and how to reduce the amount of carbon emissions associated with shipping.

Symposium: Green Initiatives

During the recent Environmental Business Symposium (EBS) in Norfolk, VA, nearly 150 participants learned about “green initiatives” and how these efforts can contribute to operational performance improvements. “We can support efforts and successfully raise awareness about green workforce training and job creation, especially those manufacturing energy-efficient products,” said Green Jobs Alliance cofounder Randy Gilliland. In the “Lean and Green” session track, he introduced speakers from AMEand the Virginia Philpott Manufacturing Extension Partnership (VPMEP). Presenters included Bill Baker, AME’s vice president of alliances and a member of the steering team for the AME/APQC Benchmarking Community of Practice (CoP), and Jeff Kohler, executive director of VPMEP. Baker made the connection between lean principles and the burgeoning green principles, noting that the combination results in extra “lift.”

Bill Haslett, manager of enterprise sourcing and logistics for Northrop Grumman, said the company is reducing energy demands to decrease the organization’s carbon footprint by 25 percent. “Everyone needs to ‘go green’ — it’s not an option,” Haslett said. “At some point, we’re going to use up all of our resources if we don’t start taking responsibility for our actions toward the environment.” More information about the EBS is available at the Inside Business website, www.insidebiz.com/ebs2010.

Recruit AMEMembers, Excel with AME

A strong community of practitioners dedicated to enterprise excellence is the core of AME. The organization’s leadership is encouraging members to serve as AMEambassadors, helping to broaden understanding of improvement concepts and practices.

A key component of the “Excel with AME” membership campaign launched this year is the “Recruit a Member” program. Members are asked to visit www.ame.org/recruit and refer a business associate to membership in AME. The web page has related details for members referring their colleagues for AMEstaff follow-up. Based on how many new members are recruited by an existing member, rewards for the “recruiter” range from a $25 gift card to membership in the Ambassador’s Club to a fully-paid registration for the 2011 AMEInternational Conference in Dallas.

Benchmarking Community of Practice: Re-shoring of Production

The AME/APQC Benchmarking Community of Practice (CoP) is continuing to grow, with 313 companies and more than 700 members from around the globe. Every month a webinar is presented, dealing initiatives of interest to CoP membership.

The most recent webinar, on “Reshoring,” was presented by Harry Moser, leader of the Re-Shoring Initiative for the National Tooling and Machining Association (NTMA) and Precision Metal forming Association (PMA). Companies are beginning to see the disadvantages of offshore production, including shipping costs, supply chain issues, and inferior quality, according to Moser. He recommended that companies use a total cost of ownership analysis (preview.tinyurl.com/22uhbht) tool to effectively compare total cost of local and off-shored sources and make informed business decisions. The webinar link for free replay of the session is: webmedia.apqc.org/il80web20025/Marketing/Webinars/AME_APQC_Benchmarking_CoP%20_%20June_2010.wmv.

Moser called for on-shoring or reshoring of production. He said this trend is gaining broader acceptance as the weak dollar and surging wage rates in low-labor cost countries make it more costly to import products from overseas. “We are committed to changing the sourcing paradigm from ‘off-shored is cheaper’ to ‘local reduces the total cost of ownership,’” said Moser. “NTMA and PMA purchasing fairs (www.purchasing fair.com) help OEMs find competitive sources for outsourced work.”  He added that a shorter supply chain reduces safety stock, inventory, and end-of-life obsolescence, and local industry is much more sustainable due to a smaller carbon footprint. AMErecommends re-shoring as a means of breathing new life into the rebirth of manufacturing jobs.

For more information on the AME/APQC Benchmarking CoP, go to www.ame.org and click on Benchmarking, then Community of Practice, or go to www.apqc.org and search for APQC/AMEBenchmarking CoP.