Alabama

Operations Management Institute 

A Partnership between Alabama’s Industry and Higher Education Systems

Background

Current Economic downturn presents a situation where a focus on the sustainability of current state businesses is 

required.

•

The opportunity exists to redeploy or redefine the role of state

resources to support this sustainability.

•

Mercedes (MBUSI) use of a Production System can be used to create a direction for sustainability.  Basic 

premise being that a “Production System”

is a prerequisite for Operational Strength / Sustainability.

A working Committee was formed comprised of representatives from:

•

AIDT

•

ATN

•

Governor’s Office of Workforce Development

•

MBUSI

From this Committee an Initiative called the Alabama Operations Management Institute (AOMI) was conceived.

AOMI Objective:

“The creation of an “Industry / Higher Education System”

network that develops “Process Oriented”

leadership with a focus on Production System implementation.

AOMI MANDATE 

“ The State of Alabama is committed to the sustainment and growth of industry to provide jobs that are secure and robust. Strong business performance is steered by Operating Systems that serve to ensure operational excellence, 100% participation and are flexibleenough to embrace best practices. The Alabama Operations Management Institute is a 

key response to meet the needs of existing business 

and  industry. Using the collective and collaborative resources of the Governor’s Office of Workforce Development and Alabama’s Education Systems,  AOMI will actto improve the Operating System implementation success rate of  Alabama businesses by providing a strong Operations Management development 

process.”

The template ‐

‐

• Mercedes’

Production System as originated  and implemented in Vance, Alabama

– “Give back”

to the State

The Model Production System

1.

Consistent use of standardized

management concepts 

applied to all areas of business

2.

Ultimate target is high quality/low cost product, when it is 

needed, in as short a time as possible

3.

Attempts to simplify the business to allow greater 

involvement by all Team Members

4.

Focus on the elimination of waste (optimization of 

resources) in all parts of the business

– This is accomplished through the uncovering of problems 

and treating these as opportunities for continuous 

improvement

The Model Production System

5.

Beyond the tools ‐

‐

Holistic,

integrated

system

“the whole system is greater than the sum of its  parts”

6.

Uses an inverted organization chart

7.

Leaders play critical role

12 Characteristics  of an Effective Ops Manager

1.

Able to identify wastes

2.

Ability to work in a Team/Lead a Team

3.

Able to lead Continuous Improvement efforts 

4.

Good Problem Solving Skills

5.

Understands and can teach “Lean“

Tools

6.

Good coach and teacher

7.

Can coach the management role at various levels

8.

Can establish commitment

9.

Can implement Leadership Behaviors

10.

Shop floor focus

11.

Understands how to communicate to shop floor team 

members 12.

Passionate about "Lean”

and C.I.

Desired Ops Manager Behaviors

• Promote problems as being normal • “Thank You!”

• Be a Coach– Lead by question versus specific answer

• Manage by Exception– Create “normal”

conditions

• Requires standardization and visual management– When you walk by something Abnormal, you set a new 

standard

• Apply Plan‐Do‐Check‐Action (PDCA) to everything you do• Create a culture founded on:

• Safety – Real Caring• Quality –

Pride in the Product / Company

• Promote open communication and teamwork through 

systems and opportunities versus just personality• Seek out involvement opportunities

– 100% participation

JIT / Flow ContinuousImprovement

Participants

‐Nominated and selected.

‐Manager or Above 

InterimWork

Interim Work

Interim Work

Target Company‐Nominated and Selected.‐Committed to Operational Improvement.‐Willing to change, but needing assistance.  

Revised  6 Jan, 09

Johnston / Kinney

The  Process

Future role inour Support Network

Success Stories

Standardization Quality

Steering Committee

Director

Training venue to be determined by proximity to target company

*

*

Implement aProject at own site

The training model

• Participants– “Nominated”

rather than open enrollment– Target: willing/capable to lead a PS implementation– Limited number; diverse– Industry

• Initially, automotive• Expand to all

– Interviewed• Tailor learning experience

– Commitments• Meaningful attendance• Implementation in home organization

– Between each of the weekly sessions– After conclusion of training– Follow up by AOMI facilitators

• Network with other participants

The training model

• Host company– Purpose:

1.

Provide a “live”

classroom

2.

Impact operational performance

– Selection

– Commitment and Expectations • Implementation of changes identified between each 

session

The Training

Month 1

Week 1

Month 2

Week 2

Month 3

Week 3

Month 4

Week 4Standardization‐

History and Overview ‐

Production SystemSimulation (Lean 101). ‐

STANDARDIZATION‐ 5 S

‐The Role of the Leader

Program Content 

Quality Continuous Improvement‐5 S application ‐Standardized Work  application   ‐

Continuous ImprovementWorkshop / C.I. Tools

‐The Role of the Leader

‐

JIT / Pull System ‐

Quick Changeover ‐

Value Stream Mapping‐ Cellular Manufacturing 

‐The Role of the Leader

SStandardization S S SStandardization Standardization Standardization

QUALITY

QUALITY

QUALITY

JIT

JIT

Environment

Continu

ous  Improvement 

‐”Zero Defects”‐

Quality at the   process‐

Error‐

Proofing‐

Problem Solving ‐

TPM‐

Visual Management 

‐The Role of the Leader 

Environment

J.I.T. / Flow

EnvironmentEnvironment

The AOMI program follows the logical development of  a “Benchmark”

production system, first by establishing Management commitment to change followed bythe implementation of methods and leadership behaviors required to implement effective, efficient processes.    

Training Method

• Instruction– Content source:

• MEP

• MPS

– Coaching style

• Exercises1.Simulations

2.Real‐time

What is unique about AOMI?

• AOMI will be an improvement process available to all Alabama Manufacturers

• It is intended to not only provide tools for sustainability, but

also to teach a holistic, 

Integrated way of leading a company.

• AOMI supports existing industry by helping to make the transition from “start‐up”

to “profitability.

• A focus on the strong role of Leadership required for engagement of the workforce 

to  ensure effective, sustained Production System implementation.

• AOMI  will provide it’s participants with a development process which includes 

Learning,  Application and Mentoring. 

2010 + Beyond3rd Quarter 2009 4th Quarter 2009

AIDT

Industry / Business

MBUSI / Dedicated Suppliers

Timeline 1st Quarter 2009

UA Business Facult

ATN / AOMI Dir.

2nd Quarter

Initial Content + Management "Coaching"

1

Transitio

2

Simulation

Production System (incl.)

*Empirical Evaluation of Production System sustainability

MBUS

I Sh

utdow

n Add Increased Management

Content

3AOMI Model including

Target Company

4

Spin-of f to Undergrad / Post-Graduate

4

3

2

1 Classroom Training w/Management

ADD Increased Hands-on Simulation

ADD On-Site (Target Company) Practical Training AND Implementation

ADD Increased Management Content

ADD Undergrad / Post-Graduate Leadership Development

MILESTONE PLAN ACTUAL1) MBUSI material development and classroom training with supplier management Jan 30 – May 1 On schedule - COMPLETE

2) -Add Increased hands-on simulation – Hand off from AIDT to ATN Feb. 6 – Jun 1 UA/ATN to assign material -Material “Pilot” with Simulation Pilot Jun 1 - 12 development responsibilities – Mid Feb - COMPLETE

3) Full AOMI Pilot. Includes “Target Company” practical application Aug. - Nov ‘’09 On time, in progress

4) Add AOMI content to undergrad / postgrad Business School curriculum 2010

AOMI IMPLEMENTATION “ROADMAP”

54 hours

80 hours

160 hours

Key Success Factors and strategies

• Leader orientation• Host company• Real‐time exercises; host company• Learn – by – doing

– Trying PS concepts on the shop floor in real time– Practicing the role of the leader

• Teach – by – coaching• Long range view

• Follow‐up with participants– Trainers as mentors

• Creating a peer network of PS Leaders

In summary - -

www.alabamaoperationsmanagementinstitute.com