Kocham 2008. 12. 09 경영 혁신을 통한 기업쇄신 김성권 회장. - 變化, 改革 그리고 革新 - 혁신은 고통스럽습니다. 그러나 반드시 해야만 합니다

Kocham

2008. 12. 09

경영 혁신을 통한 기업쇄신

김성권 회장

- - 變化變化 , , 改革 그리고 改革 그리고 革新革新 --

혁신은 고통스럽습니다 .

그러나 반드시 해야만 합니다 !

- 2 -

몸으로 일하기 보다는

머리로 일해야 합니다 !


- 3 -

남보다 빠르지 않으면

금방 쓰러져 버립니다 !


- 4 -

우리는 계란보다

닭이 필요 합니다 !


- 5 -

생각을 바꾸면

없는 길도 보입니다 .


- 6 -

굳이 설명을

하지 않겠습니다 !


- 7 -

남들이 가지않는 길도…


- 8 -

스스로 개척을 해야 합니다 !


- 9 -

빠른 것이 무조건 좋은 것 일까요 ?

즐기면서 빠르게…돈은 따고 봐야 합니다 !


- 10 -

Right People 은…

일에 끌려 다니지 않습니다 .


- 11 -

Right People 은…

결코 일을 피하지 않습니다


- 12 -

Change is Chance….

변해야만 기회를 가질 수 있습니다 !


- 13 -

나부터 먼저 변해야

우리를 변화시킬 수 있습니다


- 14 -

“ 우리”의 Teamwork 은

불가능을 가능케 합니다


- 15 -

고정관념을 바꾸면

새로운 방법이 생깁니다 .


- 16 -

“No” 를 씹고 또 되씹어보면

대안을 찾을 수 있습니다 .


- 17 -

대안이 없다는 것은

경쟁에서 이길 수 없다는 것 입니다 .


- 18 -

불가능이 가능해 집니다 .

생각을 바꾸면


- 19 -

우리의 Teamwork 은

불가능을 가능케 합니다


- 20 -

썩은 것 (Loss) 을 찾아 도려내지 않으면

전체가 썩어버립니다 .


- 21 -


- 22 -


- 23 -


- 24 -

LEAN-TOP 란 ?

LEAN-TOP 경영혁신 프로그램은 조직내의 무궁무진한 창의성과 잠재력을 발굴하여 전 부분에서 급격하고 지속적인 성과의 개선을 이루기 위해 개발된 CS WIND 프로그램입니다 .

Total Operational Performance

TT OOPP단시간의 개선 및 지속적인 성과개선 달성

시간

단시간의 개선

지속적인 향상

미래

과거

성과

LEAN-TOP 프로그램• 전 구성원의 참여

• 업무 모든 면에서의 성과 향상

자료 : McQs - 25 -

LEAN-TOP 성과 개선영역

LEAN-TOP 는 Cost, Service, Revenue 부분에서의 성과 향상을 이룹니다

자료 : McQs

Cost Time (Productivity)

Quality

Significant reduction in total costs with minimal investment

• 10-18% reduction in total costs (electric equipment manufacturing plant)

• 37% reduction in compressible costs (bakery plant)

Greater utilization and reliability Reduced cycle time

• 30% reduction in unplanned delays (rolling mill)

• 64% reduction in unloaded miles (trucking operation)

Higher grade products and reduced defects/scraps

• 25% reduction in downgraded products (textile plant)

• 19% reduction in scraps loss (rolling mill)

- 26 -

TOP 의 성공을 위한 10 대 조건

높은 수준의 개선을 위해서는 “과거 불문”과 ”성역 제거”가 TOP 프로그램 성공의 가장 중요한 조건입니다

• 과거는 불문에 붙임 • 미래가 프로젝트의

포커스임

미래

• 단계적인 절차에 따라 문제를 해결함

- 체계적인 분석을 통해 문제를 해결하고 결과를 도출함

?

• 부서간 Cross- Functional Problem Solving

• 고객 , 협력업체 , 경쟁사 , 외부 전문가 등 모든 Source 를 활용

• Cash 위주로 Business Case 를 철저히 확인함

- 1 년 미만의 Payback

- 1 년 미만의 실행 기간

- 낮은 Risk

80/20

• 가장 중요한 것에 Focus 함 - 80/20Rule 을 따름

• 부서장이 현업에서 벗어나 Project 에 Full-Time 으로 참여함

• 모든 문제는 자체적으로 해결하고 상사에게 책임을 미루지 않음

• 모든 멤버들이 위험에 과감히 도전함

• Project 성공의 장애물을 제거함

• 업무 개선에 “성역”은 없음

자료 :McQs - 27 -

TOP Process

Top 는 3 개월간 목표를 설정하고 문제를 해결한 후 , 약 1 년간의 실행기간을 통해 효과를 얻게 됩니다 .

Source:McQs

Target Setting

3 months

Problem Solving

Description

Key initiatives

1 year

Execution

• Set stretched target

• Identify key improvement levers (80:20)

• Organize taskforce teams

• Quickly set challenging financial and/or KPI goals

• Analyze problems leveraging Toolkit

• Brainstorm ideas

• Evaluate and approve ideas

• Strengthen management skill of mid-level managers

• Identify “Big Picture” issues at top management level

• Solve detailed issues from expert’s perspective

• Involve everyone in the organization

• Implement ideas according to Execution Plan

• Methodically track & verify impact of idea execution

• Evaluate and incentivize employees

• Internalize clear execution and tracking process

- 28 -

- 29 -

Contents

- 29 -

• LEAN-TOP at CS Wind

• Review of LEAN-TOP activities

• Preview of LEAN-TOP’s next steps

• Summary of key findings during project

- 30 -

LEAN-TOP at CS Wind Vietnam

TOP program has been expanded to and carried out as LEAN-TOP program in the middle of its progress to boost participation

- 30 -

TOP TOP

LEAN-TOP (CS Wind Way) LEAN-TOP (CS Wind Way)

LEAN (AWO* Module)LEAN (AWO* Module)

• Focus : Cost, quality & productivity• Key characters :

-̶Baseline analysis and target setting-̶Ideas brain-storming-̶Ideas evaluation and approval-̶Ideas implementation & tracking

• Hybrid approaches : TOP ways of analysis and LEAN ways of improvement (try-storming)

• Everyone, everywhere and everything• Ideas, improvement actions, action

plan and Tracking for Continuous improvement

Issues discussed with CEO during TOP project-̶Understandability of program contents-̶People’s participation and change in mindset-̶Action oriented improvement at shop floor

• Focus : Quality, speed & EHS**• Key characters :

-̶Waste elimination-̶Performance and EHS improve-ment and change in Mindset -̶Action and field oriented ideas try-storming

* Action Workout **Environment, health & Safety

Source:LEAN-TOP Team

- 31 -

Overview of LEAN-TOP Activities

LEAN-TOP has focused on doing Change (Clean, Safety & SMART at Work) and preparing Challenge (0.6WDFD & 900T), which is the vision and goal of CS Wind

- 31 -

Cost analysis(Unit cost)

Cost analysis(Unit cost)

Carrying-out TOP Adopting LEAN Carrying-out LEAN-TOP2008.7/7 10/26

Defect analysis(Logic tree)

Defect analysis(Logic tree)

Capacity analysis(Cycle time/ loss)Capacity analysis(Cycle time/ loss)

Ideas brain-storming

(B/S & W/S)

Ideas brain-storming

(B/S & W/S)

Reward system (Participation)

Reward system (Participation)

Ideas evaluation& approval

(Committee)

Ideas evaluation& approval

(Committee)

AWO by Korean(Pilot: WDFD/ 5S)

AWO by Korean(Pilot: WDFD/ 5S)

Reward system(Continuing

improvement)

Reward system(Continuing

improvement)

Group project(Year 2009)

Group project(Year 2009)

Reward &Competition (Booming-up)

Reward &Competition (Booming-up)

AWO by Vietnamese

(Wave 1~4: 5S )

AWO by Vietnamese

(Wave 1~4: 5S )

Roll-out planning(Expansion)

Roll-out planning(Expansion)

Action & Tracking(WDFD/ Cost)

Action & Tracking(WDFD/ Cost)

AWO activity development(Boot Camp)

AWO activity development(Boot Camp)

TOPLEANLEAN-TOP

Process

WDFD analysis Data

Defect/ capacity/ cost analysis data

Action plan (Cost) & SOP

11 33

44

55

66 77

66

22

*Standard operation procedure


- 32 -

Contents

- 32 -





- 33 -- 33 -

Result of CSWT Capacity Analysis

Maximum Asset Capacity (MAC) is XXX Tower/year

Capacity by process

Beveling Bending L. Seam Fit-up(Flange)

Fit-up(Skirt)

C. SeamCutting Fit-up(Skirt)

C. Seam

A~D E~G

MAC(XXX)

Current(XXX)

LossCurrent Capa.

• Basis-̶Based on actual measurement at shop floor (2 weeks)-̶V82 Tower-̶7 Line (A-G)

• MAC? Theoretically maximum asset capacity (Legally max. operating hours X max. line speed)

• Current Capacity 란 ?Actual operating hours X Actual line running speed

• Result of line balance analysis : Bottleneck :C. SeamWays of improvement : Eliminating downtime and skill gap among workers

(Tower / yr.)

11 Capacity

Source:LEAN-TOP Team Analysis

- 34 -

4th Bottleneck : Bending4th Bottleneck : Bending

3rd Bottleneck : Beveling 3rd Bottleneck : Beveling

2nd Bottleneck : C. Seam (E-G) 2nd Bottleneck : C. Seam (E-G)

1st Bottleneck : C. Seam (A-D) 1st Bottleneck : C. Seam (A-D)

Result of CSWT Capacity Loss

Causes of losses must be defined and resolved for each bottleneck process

- 34 -

511(100%)

MaximumAsset

Capacity

Non-operating

Hour Loss

MachineDelays

OperationDelays

QualityDelays

Slowback As-isCapacity

19(3.7%) 27

(5.3%) 61(12.0%) 11

(2.2%)70

(13.7%)

322(63.1%)

36.9%36.9%

(Tower / yr.)

• Min. 28% ~ Max. 45% capacity loss at each process

• Ways of improvement-̶1st : Eliminating causes of losses (In bottleneck order)-̶2nd: Installing new machine while considering line capacity balance

• Desired “To-be” of process :-̶Minimized capacity loss of each process-̶Balanced MAC of each process

• Next steps-̶Eliminating root-causes of losses-̶Managing causes of losses in terms of time and speed(Production mgmt.)

Holiday / Power

shortage

Holiday / Power

shortage

Maint. /Breakdown

Maint. /Breakdown

Shortage

/ change

Shortage

/ change

Re-work & insp.

Re-work & insp.

Working speed

Working speed

11 Capacity


- 35 -- 35 -

Result of CSI Capacity analysis

Maximum Asset Capacity (MAC) is xxx Tower/year, estimated in same way

Capacity by process


MAC(xxx)

Beveling Bending L. Seam Fit-up(Flange)

C. Seam(Flange)

Fit-up(Skirt)

Cutting C. Seam(Skirt)

xxx

xxx

xxx

xxx

xxx

xxxxxx

xxx

• Basis-̶Based on CSWT analysis-̶V82 Tower & 3shift/day-̶Applying improved speed up to 10% for Cutting, Bending & Fit-up-̶Applying tandem method by 25%

• Result of line balance analysis :Bottleneck : C.Seam Early adaption and stabilization of tandem method is critical to capacity enhancement

• Change in MAC while varying tandem ratio

-̶25% : xxx Tower (As-is)-̶50% : xxx Tower-̶100% : xxx Tower

(Tower / yr.)

A~H

11 Capacity

- 36 -

LEAN-TOP Ideas Development Activities

Improvement ideas were developed through workshop, brainstorming session and observation of working procedure at shop floor

Brainstorming Workshop & Hypothesis SOP* development

• Brainstorming for selected theme

– Participants : Key-men & shop-floor workers

– Sessions : 15 (120 persons)

– Dates : 1~2 times / every week

Total 3 sessions (209 persons) Building SOP on 4 major processTotal 15 sessions (120 persons)

• Key-men workshop

– Participants : Key-men


– Dates : 8/5, 8/20

• Preliminary hypothesis

– Participants : Key-men


– Dates : 7/7

• Fit-up, Bending, Welding, White tower, Painting

• Approaches :

1. Observing and analyzing operating procedures at shop floor

2. Defining CBA** of shop floor workers and managers

3. Building SOP

* SOP : Standard operation procedure ** CBA : Current best approach Source:LEAN-TOP Team

22 Ideas B/S

- 37 -

LEAN-TOP Approval Committee

All documented ideas were thoroughly reviewed at Approval Committee before making implementation decision


• Objective : Evaluating feasibility and impact of ideas and making implementation decision

• Session : Total 5 times (Every Friday)• Committee members : CEO, Directors, Team leaders• Criteria

‒ Baseline and as-is status‒ Clear how-to’s and to-be picture‒ Anticipated side effects

GO Furtherstudy

NoGo

RemainingHypotheses

Totalideas

(# of ideas)

264 37

13

200

33 Ideas Approval

14

Approval Committee Result

• Cost : 12 ($19)

• Quality : 16

• Time : 4

• Other (EHS) : 5

• Cost : 12 ($19)

• Quality : 16

• Time : 4

• Other (EHS) : 5

- 38 -

LEAN-TOP AWO

AWO aims for fast improvement at shop floor through try-storming


44 AWO

Step 1. Preparation Step 2. Boot Camp Step 3. Follow-up

• Small number of members

• Full-time participation(2~5 Days)

• Clear theme and target

• Try-storming

• Defining action items to control performance

AWOAWO

Define Measure Analyze Improve Control

• Define -̶Selecting theme-̶Organizing team -̶Setting goals & objective

• Measure -̶Flowing-down CTQ-̶Collecting data

• Analyze -̶Analyzing root causes(Fishbone, etc.)-̶Analyzing historical trend-̶Setting AWO Target

• Daily activities(2~5 days. Full-time)

-̶Planning (Eliminating root causes)-̶Try-storming-̶Picturing before and after-̶Monitoring improvement-̶Reviewing daily activity

• Action planning(for Control purpose)

-̶Action items-̶By whom & By when

• Action plan -̶Implementing action items-̶Tracking result-̶Generating additional action items for improvement

• Follow-up meeting-̶1~2 timed / month-̶Discussing result of action plan

AWO Procedure

- 39 -

LEAN-TOP Kick-off

Kick-off ceremony was held with over 300 workers before LEAN-TOP AWO began

• Explanation of needs for change in mindset and performance improvement

• Change (Clean, Safety & SMART at work) & Challenge (WDFD 0.6% & 900T)

• Boosted motivation and participation

• TOP management’s strong commitment toward continuous innovation and improvement

• Officially announcement of reward system


AWO Roll-out 55

Background and purpose

- 40 -

LEAN-TOP AWO Roadmap

Following AWO roll-out plan, all members have participated in and experienced AWO

No. Teams

Team Leader

Team Facilitator

Team Members

Participants

Cumulative Participants*

2

Korean

Core

Korean

18

18

3

Korean

Core

Local Staffs

38

56

3

Korean

Core

Local Staffs

41

97

3

Korean

Core

Local Staffs

34

131

38

Korean / Local Staffs

Core

All workers

944

1,075

Wave 1 Wave 2 Wave 3Wave 4

Group activity

Pilot

-

Korean/ Local Staffs

-

Members related to

theme-

-

*Overlapped Source:LEAN-TOP Team

55 AWO Roll-out

- 41 -

Result of AWO (1/3)

AWO is the first step in “Change & Challenge”. As the quantitative result, WDFD rates have been improving as well as 5S Score

Issues & NeedsIssues & Needs

Pilot

Wave

1~4

• Hands-on by all Korean staffs

• Experience of full AWO process (DMAIC*) for continuous improvement activity

• As part of the first step in Change & Challenge”, success experience for change

• clean and safe envirioment

추진 Theme추진 Theme

• WD & FD improvement

• 5S -̶Sort-̶Shine-̶Set in order-̶Standard-ization-̶Self discipline

• 5S -̶Sort-̶Shine-̶Set in order-̶Standard-ization-̶Self discipline

*Define, Measure, Analyze, Improve & Control Source:LEAN-TOP Team

66 AWO activity

Target10.0%

28% 26.8%

AWO전

W39 W40 W41 W42 W43

19.2% 19.2% 21.1%

AWO전

W39 W40 W41 W42 W43

Target1.0%

2.1% 2.3%

1.1%

0.8% 0.9%

WD

FD

5S

Before After

11.0

63.5

Before After

8.8

80.2Pilot Wave1~3

- 42 -

Result of AWO (2/3)

As qualitative result, changes in local workers mine-set were monitored

“We have had needs of program which initiate innovation and change workers mind-set for systematical and continuous improvement”

“It was good to see that everyone go out to shop floor and work together for improvement”

“I hope this LEAN-TOP settle as long-lasting innovation program and motivate continuous improvement “

“We could learned the truth that interest brings improvement in quality and productivity”

“Through LEAN-TOP, we watched that cooperation and collaboration bring great success in our routine work”

“Collaboration make it possible to complete work faster and better”

“LEAN-TOP program will bring better environment and safety to work place”

“We learned how to work systematically and how to protect work environment safe”


66 AWO activity

- 43 -

Result of AWO (3/3)

CS Wind Vietnam is changing to clean and safe work place

66 AWO activity


Before AWOBefore AWO After AWOAfter AWO

- 44 -

Contents

- 44 -





- 45 -

Follow-up Activity – Action Plan Target

Each team has specific target to achieve related to WDFD improvement and cost saving

Steering CommitteeSteering Committee

Chairman, PresidentChairman, President

LEAN-TOP Core teamLEAN-TOP Core team

TS KimTS Kim

WD teamWD team

CS KOCS KO

FD teamFD team

BS ChunBS Chun

WD 1.0%(including TOP ideas)

FD 10%(Including TOP ideas)

$41,723(4 ideas)

$64,481(5 ideas)

$64,958 (2 ideas)

$18,000(1 idea)

WDFD AWO

TOP Cost Idea

Target

Total $189,162 (12 ideas)


77 Action plan

- 46 -

Follow-up Activity – Tracking

Tracking on action plan will be performed to prevent enhanced performance from rolling-back and to induce further improvement ideas


Period Leader Topics

Daily • Unit/ team leader• Status of action plan (On-time completion)• Result of implementation and alternative ideas

if required• “Improvement action card” (Before and after)

• Core team

• Improvement action and tracking results• Action plan for additional tasks

(Further to tackle)• Cross-functional issues and resolutions

Monthly • CSWT CEO

Implementation(Action plan)

Tracking

ExecutiveMeeting

Illustrative

Bi-weekly• Status of action plan• KPI improvement trend• Issues and problems during implementation

77 Tracking

- 47 -

Tracking Flow

Action plan

- Action items with by whom and by when

Action plan

- Action items with by whom and by when

Action?Action?

Improvement Card

- Photo (B&A) - Actions taken - Result

Improvement Card

- Photo (B&A) - Actions taken - Result

YESEffect ?Effect ?

YES

NO

Revision - Due - New idea

Tracking

- Action result - KPI Trend (Weekly)

Tracking

- Action result - KPI Trend (Weekly)

ResultMeeting Report

- Tracking result - Improvement card

Meeting Report

- Tracking result - Improvement card

Monthly meetingMonthly meeting

YES

NO

Action plan

- From AWO

Action plan

- From AWOMaster Report

- For each team

Master Report

- For each team

Result

Card

Daily Weekly Monthly

Core

Leader/

Facilitator

Members

All

Tracking will be performed by core team, and the result will be reported periodically to top management


77 Action & Tracking

- 48 -

Next steps

As part of continuous improvement, CSWT should achieve 4 sigma in WDFD, continue 5S activities, and achieve higher performance in all areas including quality factors


Schedule

11 12 ’09.1 2 3 4 5

Key areas

5Sactivities

(Clean & Safety)

WDFD

4 Sigma

Quality, productivity

and costimprovement

ContinuousImprovement

Reward system Reward system

• Achieving 4 sigma by the end of 2008

• Launching group workout activity for each should-improve theme

• Maintaining clean & safety work place

Quality, productivity and cost improvement

Quality, productivity and cost improvement

WDFD 4 sigma’WDFD 4 sigma’

5S activities5S activities

Achieving higher goal - 6 sigma

• Motivating all member at CS Wind for continuous improvement

Reward systemReward system

- 49 -

WDFD 4 Sigma

By the end of 2008, WD and FD task force team will carry-out and action plan and develop new action items to achieve 4 sigma in WDFD


‘08/12 ‘09/12

0.6%

0%

1.0%

10.0%

20.0%

…..

…..

WD

FD

• Measuring KPI• Analyzing

root-causes• Planning

improvement activities

• Organizing team(Done)

• Try-storming

• Checking KPI• Analyzing

co-relation between action and result

• Planning additional activities

Action and field oriented continuous improvement

• Deploying cross-functional problem solving approach and workout

• Adopting use of statistical method (6 sigma)

개념적

- 50 -

5S Activities

Several 5S campaigns will be carried out to maintain clean and safe work place and to continue 5s activities


Pilot

Wave1 Wave2 Wave3

Wave4

Campaigns to keep work place clean and safe

1 My machine campaign

• Designated owner and sub-owner for each equipment and/or machinery

• Assigned roles and responsibility for owner regarding maintenance and cleaning

2 My area campaign

• 5S activities by 38 groups (each group for each designated section) covering entire working area

• Assigned roles and responsibility for group regarding cleaning designated section

3 Clean-day campaign

• Plant-wide and big-bang cleaning activity (2 hours for every month)

Insight from AWO (Action workout)

• Learning experience of AWO and 5S

• Understanding of needs for change and

importance of clean and safe work place

• Learning experience of AWO and 5S

• Understanding of needs for change and

importance of clean and safe work place

- 51 -

Quality, Productivity and Cost Improvement

With TOP analysis results, CSWT will strive to achieve higher performance in quality, productivity and cost through AWO as part of continuous improvement plan


Step1. Step2. Step3. Step4. Step5.

Continuously prioritizing and tackling new task for further improvement toward operational excellence

Continuously prioritizing and tackling new task for further improvement toward operational excellence

Quality

(1st)

Quality

(1st)

Produc-tivity

(2nd)

Produc-tivity

(2nd)

Cost

(3rd)

Cost

(3rd)

• Generating ideas through

- Try-storming

- Workshop

- Brainstorming

• Developing ideas into actionable ones and documenting

• Generating ideas through

- Try-storming

- Workshop

- Brainstorming

• Developing ideas into actionable ones and documenting

• Holding idea approval committee to evaluate ideas as follows :

- GO, FS, NG

• Building action plan for each approved idea

• Holding idea approval committee to evaluate ideas as follows :

- GO, FS, NG

• Building action plan for each approved idea

• Carrying-out action plan(implementation)

• Tracking result

- Check action

status - Develop new

ideas

• Carrying-out action plan(implementation)

• Tracking result

- Check action

status - Develop new

ideas

• Collecting updated data

• Analyzing root-causes

• Collecting updated data


• Analyzing process downtime and cycletime


• Analyzing process downtime and cycletime


• Analyzing unit-cost and consumption by process

• Analyzing unit-cost and consumption by process

• Organizing team

- Define R&R of members

- Select key task to tackle

• Planning problem solving activities

• Organizing team

- Define R&R of members

- Select key task to tackle

• Planning problem solving activities

- 52 -

Reward System

Reward system and process have been developed to motivate all members to participate in continuous improvement activities

Individual / group Unit team

LEAN-TOP Core team

ApprovalCommittee

Record

Implement

Award (Execu.)

Collect

Registrer

Award (Sugg.)

Track

EvaluateReview

Suggest

Team and group competition

Routineactivity

Event

• Scoring model

developed

– Impact

– Creativity

– Depth

– Feasibility

• Increased motivation

and participation by

given award


Change & ChallengeChange “Clean, Safety, SMART at Work” Challenge “0.6 WDFD, 900T”

World No.1 Wind Tower Company

“SMART (Specific, Measurable, Achievable, Recordable, Trackable)” “0.6% Welding Flatness Defect, 900 Tower Production”

감사합니다 .

Documents

Kocham 2008. 12. 09 경영 혁신을 통한 기업쇄신 김성권 회장. - 變化, 改革 그리고 革 新 - 혁신은 고통스럽습니다. 그러나 반드시 해야만 합니다

Kocham 2008. 12. 09 경영 혁신을 통한 기업쇄신 김성권 회장. - 變化, 改革 그리고 革新 - 혁신은 고통스럽습니다. 그러나 반드시 해야만 합니다