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Creating a Culture of Continuous
Improvement
Engaging and Developing our Associates
Passion for People Development
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Protect Ι Control Ι Sense — A Global Approach
Sense Sensing technologies are increasingly used to support
complex electronic systems
Broad platform of technologies help improve product
performance, comfort, convenience and safety
Protect Today’s sophisticated electronics require greater protection
from ESD, power surges and other occurrences
Handle more power in smaller products
Innovative circuit protection solutions
Control Safely and efficiently control power in even the harshest
environments
Limit equipment damage and minimize electrical hazards
Improve productivity and reduce costs
Founded in 1927
Introduced many innovative,
industry-first technologies
Today
– 10,000+ employees worldwide
– $1.1 Billion in 2016 net sales
– Publicly held: LFUS (NASDAQ)
– More than 40 locations worldwide
Americas
Europe
Asia
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Why Lean?
Site Simplification
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Customers
Did that, then asked, “What’s next?”
A
B
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Growth and Engagement
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Six Change Approaches
1) Education and Communication
2) Participation and Involvement
3) Facilitation and Support
4) Negotiation and Agreement
5) Manipulation and Co-optation
6) Explicit and Implicit Coercion
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John Kotter and Leonard Schlesinger Choosing Strategies for Change, Harvard Business Review, 2008
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Operational Excellence: A Foundational Element of Our Success
Culture isn’t just one aspect of the
game — it is the game. In the
end, an organization is nothing
more than the collective capacity
of its people to create value.
Lou Gerstner, former CEO/Chairman of IBM
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Safety Incidents ↘
Customer Complaints ↘
On Time Delivery ↗
Cash Conversion Cycle ↘
Productivity ↗
Employee Engagement ↗
Talent Management
5-Phase Product Development
Quality Management System
Centers of Excellence
Corporate Social Responsibility
Enterprise Lean Six Sigma
Category Management
Integration Playbook
Information Technology
Sales & Operations Planning
Customer Satisfaction
Flawless Product Introduction
Acquisition Integration
Order to Cash Acceleration
Sustainable Pipeline of Best Talent
Littelfuse Operating System OPERATIONAL EXCELLENCE: EVERYONE, EVERY DAY, EVERYWHERE
STRATEGIC OBJECTIVES PRINCIPAL OPERATIONAL CAPABILITIES RESULTS
QUALITY VISION Zero Defects. Zero Excuses.
CONTINUOUS IMPROVEMENT CULTURE Think Lean. Variation Reduction (6).
CORPORATE VALUES Customer Focus, Results Driven, Teamwork, Integrity, Innovation.
OPERATIONS VALUES Data Driven, Engaged, Forward-looking.
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LF Lean Certification Level Summary
832
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Contributor Expert Master
Enterprise Lean Six Sigma Program (Cont’d)
Phase 1 (3 days)
– Site leadership; Gain understanding and support;
Lean assessment
Phase 2 (5 days; includes 2 days of activity)
– Lean basics
Phase 3 (5 days; includes 2 days of activity)
– Value Stream Mapping, Kaizen, Coaching
Phase 4 (5 days; includes 2 days of activity)
– Flow
Phase 5 (5 days; includes 2 days of activity)
– Pull
Phase 6 (3 days)
– Lean Product Development
Other (2 days, 2 weeks, 4 weeks)
– Six Sigma (Yellow Belt, Green Belt, Black Belt)
DL & IDL: 25%, 12 hours (note: some sites have a higher goal)
Professional: 50%, 40 hours
Manager: 100%, 40 hours
Measured over rolling 12 months
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Enterprise Lean Six Sigma Goals: 2017-2020
Certification Targets 2017 2018 2020
Lean Six Sigma
Yellow Belt (all associates) 30% 60% 80%
Green Belt (all professionals) 15% 25%
Black Belt (all professionals) 4% 6%
Contributor [L1] (% of professionals) 40% 60%
Expert [L2] (all professionals) 4% 8%
Advanced Capability 2% 2%
DFSS (% of NPD and Process Development Engineers)
25% 50%
Lean Masters [L3] (all professionals) 0.30% 0.60%
Master Black Belt (all professionals) 0.30% 0.40%
INTERNAL
Yellow Belt Certified: 1506
Green Belt Trained: 206
─ 61 have passed exam
Black Belt Training Wave 1 in progress (17 candidates)
EXTERNAL
Green Belt Certified: 167
Black Belt Certified: 64
Hoshin Kanri
Results
Strategies
Tactics
Metrics
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A3
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Engaging Associates in Data-driven Decision Making:
Yellow Belt Module 1: Introduction
– SPACER
– Yellow Belt Material
– Introductions
Module 2: Six Sigma Overview
– Six Sigma Introduction
– DMAIC Breakthrough Strategy
Module 3: Define
– A3 Project Form
– Voice of the Customer
– Communication
Module 4: Measure
– Data Collection
– Basic Statistics
– Measurement Systems Analysis
Module 5: Analyze
– 7 Basic Quality Tools
– Introduction to Hypothesis Testing
– Process Capability Analysis
– Failure Modes and Effects Analysis (FMEA)
Module 6: Improve
8 Wastes
6S
Visual Management
Total Productive Maintenance
Work Balancing and Theory of Constraints
Kaizen
Cost Benefits Analysis
Module 7: Control
Standardization and Documentation
Introduction to SPC/Control Charts
Mistake Proofing
Control Plans
Module 8: What It Means to Be Data Driven
Data-Driven Culture
Yellow Belt Test
In-class test at end of course
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Why Do A Gemba Walk?
Purpose:
Learn if associates have a deep understanding of why the work they are doing is necessary and important
People:
A walk is an opportunity for leaders to learn how to create a more effective environment where:
– People can do their best work
– People can fully develop their skills and capabilities
– Trust levels can increase
– People feel safe in sharing problems experienced in their work
Problem-Solving Mindset: Recognize Abnormalities
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Phase 3
Area Supervisors are
LSGA Owners • Teams formed by line/cell/shift • Set team’s goal; linked to local x-
matrix • Setup team metrics board • Daily review based on the board • A3 training and coach for LSGA
Leader • LSGA projects: low-hanging fruit
Phase 2 Phase 1
Facilitators Coach LSGA
Teams • Facilitators can be supervisors,
engineers or lean implementers • Facilitators lead and coach team(s) • Facilitator organizes team activities
• Continues until all teams are ready for Phase 3
LSGA Teams are Self Directed • The facilitator provides support as
needed • Teams organize own activities • Higher-performance LSGA Team • LSGA Teams own area:
• Autonomous Maintenance/TPM
• Cell management • Pull system maintenance • Standard work/SOP • Continuous improvement
• Conduct self assessments
Typically 3-6 months Typically 6 months – 1 year Typically > 1 year
Lean Small Group Activity: Three-Phase Development
Global Metric System
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Big-Impact Examples
Measure 1st
Round
6th round
% Change
Floor Space (M2)
-11%
Capacity (K/day)
26%
Output (EA) per year
41%
Productivity (units/hour)
65%
Cycle Time (hours)
-8%
Number of Operators
-18%
OEE
(CLIP 3S) 68% 93% 37%
• 30% yield attempting to produce at rate; improved to 95%
• Applied several experiments to find root cause(s)
Six Sigma: Sensor Product Lean VSM Round 1-6, SBU
Impact: $3.7M / year
Lessons Learned: Ooops
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1 of 4: Part-Time Lean
2009/2010
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2011-present
1%: 100% Dedicated
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95/100
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2 of 4: Operations Only
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Bottom up
Top down HELLO
MY NAME IS…
OPTIONAL
NOT OPTIONAL
3 of 4: Leadership
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If leaders do not already believe in
people development through lean….
Change the people, or change the people
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4 of 4: Advanced Topics Aren’t Advanced
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Phase 1 (3 days)
– Site leadership; Gain understanding and support; Lean assessment
– Hoshin kanri, Leader standard work, Tiered meetings
Bonus Advice: Shakespeare Got It Wrong
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“What's in a name? that which we call a rose
By any other name would smell as sweet;”
William Shakespeare
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Lessons Learned: Successes
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1 of 4: Promotions
“This is how we operate. If you
don’t understand it, how the
heck are you going to lead?”
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Dave Heinzmann, Littelfuse President & CEO
“Associates who want to be promoted
should spend time in the 1%.”
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2 of 4: Support and Flexibility
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Corporate Lean Site Lean Small Group Activity (LSGA)
Dream Team, Suzhou
PICO Tech. Avengers Team, Lipa City
ASP Team, Matamoros
3 of 4: Ownership
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“The machine”
Corporate
training
Global-team-
authored manual
“My machine”
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4 of 4: Outside Validation
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2016: Wuxi 2017: Dongguan, Suzhou
HR Support Need #1
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HR Support Need #2
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Next Steps
Continue to develop the 1% and move them into leadership roles
Support organization’s growth objectives with training as requested
Customer Interaction for Engineers
8D
New Product Introduction
Continue to focus on hoshin/strategy deployment and refine our process
Enhanced functional group support of and participation in ELSS
Design for Six Sigma and path to MBB certification (developing regional expertise)
Additional applications for AME Excellence Awards
Raise the scores on lean assessment 8 or 9 range
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It’s Not Easy
The path of least
resistance....
Ongoing: Acquisition Integration
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Corporate Lean Goal, 2011:
Work ourselves out of jobs
Corporate Lean Goal, 2017:
Develop more great lean thinkers internally
and hire externally when needed
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Ongoing: Global Standardization
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We have a talented lean group…
…take the best ideas and
standardize
“Continuous effort - not strength
or intelligence - is the key to
unlocking our potential.”
Winston Churchill
Ongoing: Training Enhancement
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Lean Boot Camp
2017
It’s not about perfect. It’s about effort. When you make that effort every day, transformation happens. Change occurs.
Someone wise (paraphrased)
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Questions
Questions?
Feedback on our program?
Ellen Sieminski
773-628-0590
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“To improve is to change; to be perfect is to change often.”
Winston Churchill