HID Global Parent - Lean Accounting Summit

Transcription

HID Global
Overview: ASSA ABLOY
(HID Global Parent Company)

Lean Operations & Finance
The worldwide leader in locking solutions
Annual revenues of $4.8 billion in 2009
150 companies in 50 countries
Over 29,000 employees
Dedicated to meeting customer needs for safety,
security, and convenience
Teaming Up at HID Global
September 2010
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PROPRIETARY INFORMATION. Do not reproduce, distribute or disclose. No authorized use.
® 2007 HID Global Corporation. All rights reserved.
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HID Global Product Portfolio
MIFARE®
DESFire®
NETWORKED ACCESS
SOLUTIONS
ACCESS CREDENTIALS
MIFARE®
DESFire®
IDENTITY & ACCESS
MANAGEMENT
HID Global
North Haven, CT
Access Control and
d Identity
ACCESS CONTROL READERS

The factory is located in a single leased building in
North Haven, CT U.S.A.
The facility manufactures custom access cards with
various technologies. (Value Add)
The location is also a distribution center of HIDG
readers and programmable white cards.
2009 Production/Shipments – 18.4 million units
Workforce - Total 110
DL 65
Four Value streams
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4
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Why we chose Lean:
Need For Change was recognized in 2005

Poor Performance
High Scrap
Low Morale
No growth in a
Growing Market
Measure
Shipments
Why Lean??
2005
$1.15M
# cards/month
480k
On time ((12 month
average)
69%
Lead time (days)
25
Scrap % sales
6.10%
Inventory turns
7
Employee Driven
Improvements
Capability
Morale
Turnover
Cross training
Customer satisfaction
Few
Basic
customization
Low
High
Seldom
Low
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6
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HID Finance History – Information Sharing
The Results
Attribute
2005
Mar ’09 – Aug ‘10
$1.15 M
$3.3 M
# cards/month
480 k
1.7 M
On time (12 month average)
69%
95%
25
4.5 overall
6.10%
2.6%
Shipments/month
Lead time (days)
Scrap % sales
Inventory turns
7
15.2
Few
2,524
Limited to basic
customization
Extensive
Morale
Low
High
T
Turnover
Hi h
High
L
Low
Seldom
Extensive
Employee Driven Improvements
Capability
Cross training

North Haven Is a Cost Center
Finance
COO
Local Mgmt!!!
Lock Packs Moving to Regionalize
......and we still have a long way to go!!!
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Policy Deployment to Attain Mission Statement
North Haven Value Streams

We will provide our
customers with the
highest quality trusted
solutions, on time, every
time, through our
relentless pursuit of world
class practices
RFID
Wiegand
Priority Plus Program
IoD – Identity on Demand
RFID
IoD
Wiegand Readers
Wiegand
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PPP
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Policy Deployment - Matrix
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Policy Deployment – Bowler Metrics
Wiegand Value Stream
BSC
Balanced Score Cards
PPP Value Stream
BSC
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Balanced Score Cards
Balanced Score Cards - PPP
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Value Stream Income Statements

Once we identified the value streams, we
recognized the need to publish financial results for
each one.
one
We follow Standard Costing reporting requirements
from HIDG and Assa Abloy.
Support departments had to be allocated due to
cross departmental activity and low headcount.
We wanted to show global sales results from the
efforts
ff t off the
th Value
V l Streams,
St
nott just
j t local
l
l sales
l $$.
$$
For the first iteration, we replicated the detailed
income statement.

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You can
guess the
reaction
from the
value
streams
leaders.
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We knew we had to simplify the information.

We met with the V/S & OP’s leaders
Decided on more meaningf
meaningfull categories for
expenses
Remembering advice from previous Lean
Accounting Summit session presenters.
“Just Try It!”
Created Plain Language Income Statement
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Communication

Meetings
{
{
{
{

Reports
{
{
{

Focus would be on what their teams can
affect.
Mapped from original I/S format
Able to drill down for detail
Added run rate % for easier comparisons
{

Daily – 9:15 Meeting
Weekly – VS report metrics (all ops)
Monthly – VS PD meeting
Bi-Monthly
y – Town Halls
Daily scrap, WIP, Inventory
Weekly – Inventory
Monthly – All (VS income statement)
New Data Warehouse
Other metrics reported (Shingo Metrics)
{
{
{
{
{
Cycle Count Results
Labor Cost per unit shipped
Overhead cost per unit shipped
Asset Productivity
Energy Consumption per unit and sales dollar
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Plant Wide Visuals
Plant Wide Visuals
5S layout
Heijunka
scheduling
h d li
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Kanban
replenishment
Visual
scheduling
h d li
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Month End Close

Month End Close: Example of Task List
Corporate Finance Office was closing in
3 days
We wanted to get it down to 1 ½ days.
days
First step was to map all processes and
interdependencies.
{
{
{
{
We asked each person to make a task list
Lists were combined with day and time
Master List also showed what tasks were
required
i db
before
f
another
th could
ld b
be started
t t d
Was put on a share drive for everyone to log
in and note when they were complete with a
task.
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Month End Close

Month End Close

The next step was to challenge why a task
was needed at all or if it could be
performed
f
d prior
i tto month
th end.
d
Payroll entries, Accruals, Depreciations,
etc. were moved up to the days before a
month end.
Increased usage of software
enhancements
h
t reduced
d
d ti
time reqs.
Reviews in mid-month help to minimize
time spent on day one of the close.

After a year, we were able to eliminate
using the master task list.
A/P kaizen for subledger closing reduced
processing time from 2 days to 5 hours
Number of Journal Entries have been
reduced.
Communications between departments
has improved
improved.
Hand-offs have been reduced.
We are now down to 1 ½ days.
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Office Kaizen – Streamline the Accounts
Payable Process

We recognized that a lot of effort was
being made by the AP personnel.
personnel

Was all of this effort necessary?

How do we find out?
A/P Kaizen: Starting the Process

A Kaizen event with process mapping
was needed

We decided to map the process for a 4way match.
We needed to include the entire process
which starts with the purchasing
department placing a PO to buy an item.
The item is received
The invoice is received and processed
A check is sent to pay for the invoice
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A/P Kaizen: Process Mapping
The results of the AP Kaizen

After we finished the current state, we then mapped out a leaner
process. This reflected our decisions to eliminate waste.

194 Steps in the before process, 139 steps in the
after process
14.53 hours saved per day
{
7 hours, matching invoices to packing slips
{
4 hours, by changing the filing process
{
2 25 h
2.25
hours, attaching
tt hi packing
ki slips
li and
d
eliminating loops
{
1 hours, logging key supplier process
{
.28 hours, eliminate on-hold root causes
Understanding of the process across various
departments within the company
Documentation of the accounts payable process
which can be used for training
A baseline to start our next improvement event
5S of the accounts payable department to improve
quality (sort, straighten, set in order, shine,
&standardize)
Reduced check runs to minimize down time
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Large factor in our success:
Additional Finance Improvements

{

CULTURE CHANGE
Recognition that processes needed to
standardized globally among all finance offices
sharing best practices along with local Kaizen
gp
processing
g silos that do not
events. Eliminating
share with each other.
“If you do what you always did, you’ll get what
yyou’ve alreadyy got!”
g
Kaizen events (Germany, Irvine, Argentina, Payroll -HR)
Outsourced cutting checks and have vendors sign
up for EFT.
Automated manual Payroll processes.
Reviewed, modified, and or automated intercompany cross charges and netting payments.
A/P implemented “Expensables” software usage
for expense report processing and approvals.
Get everyone pulling in the same
direction
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Supporting each other
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Other Activities
Culture and Community Events
Created a Morale Team
• Volunteers from all over the plant sign up for one year by signing up on a
posted sheet. The employee must be active on the Team to get credit for
being on Team. Volunteers are selected from the sign up sheet, and HR
makes
k sure the
th participation
ti i ti does
d
nott hit any one d
department
t
t ttoo h
hard.
d
• Volunteers represent their peers on the Team
• Includes off shifts
• Time is shared – company time and personal time is used
• Team is tasked with developing creative ways to foster a team atmosphere
combined with learning lean and the team concept
• Uses fun activities to boost morale and demonstrate lean lessons
• Events are planned quarterly –
• Can
C b
be around
dah
holiday
lid such
h as V
Valentine’s
l ti ’ D
Day or M
Mother’s
th ’ D
Day
• Plan the holiday party and summer outing
• Team leader serves 2 years – first year as the leader, 2nd year as a
member to help the new leader
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Other Activities
Created a Community Relations Team
Employee Morale Team Events
• Management Committee selects 3-5 charities to support each year, but
can also accept requests throughout year from community organizations
to support. This committee and HR is filtering all the requests that can
come in during a year. Employees can suggest events to support to the
Management Committee.
Some of the culture changing events…..
2005
Shingo Picnic, Team building, Points for Progress…
• American Red Cross
• American Cancer Society
• Connecticut Food Bank
• Animal Haven No Kill Shelter
2006
Ice Cream Truck
Chair Massage
Pumpkin Carving
Scavenger Hunt
Count the Candy Corns
Thanksgiving Deserts
Gingerbread Contest
Christmakwanhanukkah
Chili Cook-off
• Volunteers from all over the plant sign up for each event planned by the
Management Committee by signing up on a posted sheet that describes
the current event. The employee must be active in the event to get credit
for being on the event team. Volunteers are selected from a sign up
sheet, and HR makes sure the participation does not hit any one
department too hard.
• Includes off shifts
• Time is shared – it is often on own time due to nature of event
• Moneys that may be collected at Morale Committee events are given to
this committee to donate to the charities
2007
Year Beginning Celebration
Valentine’s Day Tea and Coffee
Green Bagels and Cake
Spin the Wheel on Mother’s Day
Spin the Wheel on Father’s Day
Ice Cream Social
Company Picnic at Holiday Hill
Family open house
Bake sale
Family Day – Dunking Booth
HID Bowling
Walk-A-Dog
Mohegan Sun – Bus Trip
Chair Massage
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2008
Year Beginning Celebration
Valentine’s Day Chocolate Fountain
Mother’s Day roses
Father’s Day Lunch
Company Picnic at Anthony’s
Bake sale For World Vision
HID Summer
S
Olympics
Ol
i
Holiday Lunch
2009
Survivor Team Building Event
Mother’s Day Pot Luck
DeFEET Hunger Walk
Lean Problem Solving Event
Carnival Day
Holidayy Luncheon
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1) Kaizens
2) Implemented Improvements – 2 per employee per month
Next Steps:

Implemented Improvements

600

Implemented improvements
Target
506

500
425
400
312
252243
196
200
258
232223
220
168 171178
143134143137
100
64
86 78
69
101
85

311
300
151
135
120
241
236
218
192190 197 187
179
159
147
157158
144139
127
120

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Automate the VS income statements
More reports to provide visibility downward
One source of the truth (Data Warehouse)
Continue develop the culture of speaking to and
understanding your data (Make it Ugly)
For upcoming Oracle R12 implementation – internal
review of all processes looking for uniformity
between all global locations.
K i
Kaizen
b
between
t
HR and
dP
Payrollll tto smooth
th outt
processing issues.
Automating Inter-Org Invoicing.
Look for more opportunities to improve.
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