Strategies for Creating a Culture of Operational

Excellence – Experiences from Australia and

Asia Pacific Japan

Ivy Leung
GlaxoSmithKline Melbourne
 Presentation Contents

Introduction
Aligning OE with business plan
Developing an OE strategy
Building capability & confidence
Utilising rewards & recognition
Insights from Australian experiences
Asia Pacific Japan experiences
 GlaxoSmithKline Overview

A leading producer of prescription medicines, vaccines &

consumer health products

28.4 billion GBP total company sales in 2009

Over 99,000 GSK people in 120 countries

GMS: 29,000 people, 79 sites, 3 Supply Divisions

-- Pharma Operations
-- Consumer Health Supply
-- External Supply
 GSK Boronia 2006
Warehouse &
Distribution

Chemistry &
Microbiology
Laboratories

Non-Sterile
Packaging

Tablets
Manufacturing

Aerosols, Liquids
Injections
Packaging

Sterile
Manufacturing &
Packaging
 Organisation

Two supply value streams

– Steriles
– Non-Steriles
– Aligned functional areas
supporting values streams
From 420 personnel in 2009 to
345 end 2010
 GSK Manufacturing – Boronia

Domestic Supply

Export Supply
GSK Boronia Blue Chips

Grow the Business

Low Cost Supply
Best People
Boronia’s Operational Excellence Strategy

Using OE as an enabler, transform the

site from
High to low complexity
Low to high standardisation
High to low cost base
Good to best customer value
Boronia’s Operational Excellence Strategy

Steps to building OE Infrastructure & Capability

1. Establish OE Governance Board
2. Roll out OE Foundations & create Stability
3. Mobilise OE Resources
4. Embed a sustaining OE Culture
5. Create Flow
6. Rapid transformations
7. Build on site capability
 OE Foundations & Stability

5S
Visual Controls
Root Cause Analysis & Problem Solving
Tiered Accountability Process
Leader Standard Work
GEMBA
Standard Work
Continuous Improvement Process
OE Foundations & Stability – 5S & Visual Control
Area Owner: Floor person
5S
• Sort, Store, Shine,
Standardise, Sustain
• Involve & empower whole
team
• Eliminate waste & develop
disciplined work habits

5S Visual standards

• Items are in their correct location

• All items adequately stocked
• Station is clean and tidy
OE Foundations & Stability – 5S & Visual Control

Visual Control
• contrast actual vs expected
performance
• “at a glance”
• in relevant time frame to
react
• from shop floor to senior
management level
• for production & production
support processes.
OE Foundations & Stability -- Root Cause Analysis

RCA
• Proper management of
risk of recurrence of
process „flow interrupters‟
• Use a simple, standard
method to address root
causes of problems
• Not settling for work-
arounds that manage
symptoms
OE Foundations & Stability – Leader Standard Work

Leader Standard Work

• Daily scripts stating explicit
expectations for each
management level
• Focus on process & follow up
on execution of real time supply
performance management
GEMBA walks
• Work with your leader to be
coached
• Act as a mentor & coach to others
• Use shop floor as classroom
• Establish performance
expectations & follow up on
coaching discussions.
OE Foundations & Stability – Tiered Accountability

Tiered Accountability Process

• Brief & structured
• Tiered meetings at each
management level
• Interpret & react to “stories
told by visual controls”
• Assess issues
• Assign accountability for
action
• Track action
• Real time issue escalation
& resolution
 Imaichi Tiered Accountability

Daily OQ Meeting Agenda

Review Items
1. Priority Batches（優先バッチ情報）
2. Deviations Update（逸脱・更新情報）
3. Complaints Update（苦情・進捗情報）
4. Site Change Control Update（変更管理・更新情報）
5. Resource Availability （現況業務のリソース問題・懸念）
6. Plan & Plan Adherence（計画・変更できない計画情報）
7. Action Review Follow Up（取られたアクションの見直し）
Imaichi Tiered Accountability

OQ Planning Board
OE Foundations & Stability – Continuous
Improvement
 OE Resource Mobilisation

Managers lead top down & drive applications

Selected staff co-ordinate bottom -up
employee involvements
Use Green Belts in business
OE Champion/ MBBs/ BBs coach & mentor
OE Champion identifies opportunities & drive
site ambition
JIT training on demand
 Sustaining OE Culture

Common understanding of need to change &

improve
Leadership, accountability, OE expectations &
High Performance Behaviours in PDPs
Visibility of OE work & successes
Structured & visible OE suggestions & follow up
Site visits
Reward & recognition
Sustaining OE Culture – Communication

Value Driven Maintenance Communication Plan

Sustaining OE Culture -- GSK Boronia Blue Chips
Sustaining OE Culture – Reward & Recognition

Value Driven Maintenance – Stream 3

Maintenance time saved by removing no-value adding tasks

Hours Released
1000

900

800

700

600

500

400
254 hrs
300

200

100

50
 Rapid Transformations

Benchmarking
Diagnostics
Inter-site & above–site collaborations
Knowledge management including master
classes
Blueprints
Piloting & success replication
 About Culture

Country
Company
Site
Functions
Groups
Overcoming the Cultural Barrier
Creating a new Culture
 A Word on Culture

Habit 1 Be Proactive
第一の習慣・主体性を発揮する
Habit 2 Begin with the End in Mind
第二の習慣・目的を持って始める
Habit 3 Put First Things First
第三の習慣・重要事項を優先する
Habit 4 Think Win/Win
第四の習慣・Win-Winを考える
Habit 5 Seek First to Understand, Then to Be Understood
第五の習慣・理解してから理解される
Habit 6 Synergize
第六の習慣・相乗効果を発揮する
Habit 7 Sharpen the Saw
第七の習慣・刃を研ぐ
Strategies for Creating a Culture of Operational Excellence

Thank You !