Roche’s Lean Journey: Learning by Doing It!

1 C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. Roche's Lean Journey: Learning by Doing It! Yavuz Goktas, Ed Fitzgerald Stephen Radspinner 10/18/2017. C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. LEAN CONSTRUCTION INSTITUTE. LEAN CONSTRUCTION INSTITUTE. C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. Agenda Kick Off and Introductions Brief introduction of Roche Overview of Lean Production System (LPS). LPS & Obeya Room for Capital Projects Overview of Obeya Room Roche Examples of Obeya Room & SQDEC. Lessons Learned LEAN CONSTRUCTION INSTITUTE 2. C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. Roche - a global pioneer in pharmaceuticals and diagnostics LEAN CONSTRUCTION INSTITUTE.

2 C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. Roche Lean Production System (LPS). Application to CAPEX Projects LPS methods in scope: Goals and ambitions Problem solving Continuous Improvement Lean maturity assessment Leveled Equipment Zero flow availability defects Visual management Structured meetings Metrics & performance Standardization boards Daily rhythm and schedule People and organization Mindset Lean leadership PT behaviors LEAN CONSTRUCTION INSTITUTE 4. C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. Summary: Obeya is an integral part of the Lean Production System (LPS). Lean Production System OBEYA ROOM. Goals and ambitions Continuous Metrics and improvement Continuous improvement performance boards Visual Leveled Equipment Zero management flow availability defects Structured Standardization Problem meetings Lean Daily rhythm and schedule solving leadership People and organization Lean leadership Team to ensure consistency of approach and coordination with ongoing LPS work in PTA function LEAN CONSTRUCTION INSTITUTE 5.

3 C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. Obeyas are the industry benchmark to implement Lean Performance Management in operations Obeya (Japanese " "), literally meaning "Big rooms" or "War What? rooms", are a component of lean production systems used in the Japanese automotive industry. Proven approach to effectively manage large-scale projects such When? as new model launches or construction megaprojects. Multiple benefits achieved by the implementation of Obeyas Provide focal points to align on project priorities and objectives Provide transparency on current problems and future Benefits restrictions Structure information and dialogues in a logical sequence that enables rapid counter measures taken in the room Bring together an entire project teams to have structured discussions on performance, enabling improved coordination LEAN CONSTRUCTION INSTITUTE 6.

4 C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. Core aim to address was increase of active project steering across interfaces Three key issues in addressed by Obeya concept and frequent Gemba daily project management walk implementation Integrated performance dialogs building on SQDEC1 metrics Performance of contractors and sub- including all sub-project teams project teams not actively measured across project Construction site visits to understand the actual status and identify challenges pro-actively Structured key activity review supports early identification and Activity interdependencies across resolution of challenges across sub-projects sub-project teams not easily visible Increased schedule and milestone ownership of sub-project teams Intuitive

5 Visual formats for schedule planning and performance Individualized planning view per reviews enable at-a-glance understanding sub-project not always readily available Active participation of entire project team with shifting focus based on project phase needs 1. SQDEC comprised of Safety, Quality, Delivery, Engagement, Cost metrics LEAN CONSTRUCTION INSTITUTE 7. C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. Obeyas focus on three key areas to achieve change I Processes II Tools III People "Lean routines" "Visual management" "Change management". Lean management approach to Visual management that makes Behavioral change before, during meetings and routines performance visible (Obeya Room) and after Obeya meetings Shorter and structured meetings Integrated set of visual panels Joint definition of new norms to with strong focus on performance distributed throughout the room to interact among team members management support Obeya routines and Individual coaching sessions to Routines that encourage root performance discussions reinforce behavioral change cause analysis and timely Use of best practices that enable at- Cross functional participation in corrective actions (PDCA)

6 A-glance view of current status Obeya meetings (including Clear definition of weekly priorities Relevant KPIs (real vs plan) contractors and support functions). for the teams (critical path/ Performance projections restrictions to solve). LEAN CONSTRUCTION INSTITUTE 8. C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. I Lean management: Routines that encourage root cause analysis & timely corrective actions - based on PDCA cycle 7. Identification and 8. 6 solution of Definition of Review of interferences weekly obj. and projections priorities 5 9. Status review Execution of of previous Plan corrective commitments actions Do 4 Obeya routines follow a Corrective actions Act continuous improvement commitments logic (PDCA) and encourage timely corrective actions Check 3 1.

7 Escalation of KPIs review other request 2 (focus on to participants Root cause deviations). discussion LEAN CONSTRUCTION INSTITUTE 9. C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. Visual management: Integrated set of visual panels II. distributed throughout the room to support Obeya routines KPIs Section Commitments to action section Room Dynamics section Real vs planned status for most Commitments to corrective actions, Highlights Obeya best practices 3 critical performance KPIs with clear responsibilities and and logistic information about the Supports discussion on current deadlines room and routines status and root cause analyses Supports definition and tracking of Reference for participants corrective actions behaviors during Obeya meetings 4 5 4 1.

8 2 3 3. Priorities and Planning Project Information section section Obeya Relevant project Weekly priorities for the team 2 Room information to 1 support technical Highlight monthly/ weekly discussions targets Critical path Supports discussion on 2 1. Construction production programs, plans interferences & restrictions LEAN CONSTRUCTION INSTITUTE 10. C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. Obeya Room Structure Planning board Behavior Metric board Countermeasure board LEAN CONSTRUCTION INSTITUTE 11. C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. III Change management: Lean Performance Management is not just about boards on walls! Process for running Information Centers Behaviors for effective LPM.

9 KPIs hand-updated before reviews Challenge; missed targets, data and perception of root causes Questioning mindset! Stand-up reviews Go-Look-See; Go to were the real value is Senior leader is chairman - not facilitator created, understand "reality". Start/finish strictly on time and <30 minutes Respect; frontline staff See them as experts KPIs reported in logical flow, left to right Prioritize; , small improvements over CAPEX. Metrics reported on by owners by exception Place; Customer first Drive understanding of how team influences client outcomes and No problem-solving in review company performance Go & See when discussing issues Well-executed process and behavioral focus are critical LEAN CONSTRUCTION INSTITUTE 12.

10 C A P T U R E A N D L E V E R A G E T H E L E A N A D VA N TA G E. III Change management: Clear definition of roles is key to ensure good meeting dynamic Leader Leads the meeting, following the Obeya routine NAME. of the Obeya Asks participants explanations when KPIs are off-target meeting Assigns responsible for each commitment Substitute Ensures compliance with the routine and manages time Moderator Ensures good definition and contractualization of the NAME. of the Obeya commitments meeting Sends invites to participants, review participation list, Substitute coordinates the update of all KPIs before the meeting Consolidates new commitments and send them to the Owner participants NAME. of the Obeya room Tracks all commitments (old and new).