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Nurturing a Continuous Improvement Culture

Gordon Castle Manager, Achieving Excellence System Bombardier Aerospace Bombardier Commercial Aircra

CSERIES CS300 CSERIES CS100 REGIONAL JET CRJ1000

REGIONAL JET CRJ700 REGIONAL JET CRJ900 Q400 Bombardier Business Aircra

Global 7000 & 8000 Global 7000 & 8000 Global 6000 Global 5000

Challenger 805 Challenger 605 Challenger 300

Lear 85 About Bombardier Around the globe, 76,200 employees work diligently to earn our worldwide leadership in aerospace and rail transportaon. As at the date of this report, we have 79 producon and engineering sites in 27 countries and a worldwide network of service centers. Our Improvement Journey

Ø Achieving Excellence System First AES Gold Cerfied teams 2013 continues to mature as Gold certified teams emerge

Achieving Excellence System (AES) 2008 Ø Evolution into a System

Achieving Ø Development of a Continuous Excellence (AE) 2005 Improvement strategy & Roadmap

Lean Manufacturing Ø Introducing Lean 2000 concepts

Six Sigma 1997 Ø Launch of Six Sigma Achieving Excellence System An integrated management system designed to foster employee engagement through a continuous improvement roadmap which defines and integrates world-class best practices

Elements of the system…… Communicaon and Change Plan Lean Tools & Methodologies Kanban, Andon, TPM…

S Management Infrastructure Enterprise Strategy

Balanced Scorecard Problem Solving Problem Solving Method

Submitted by: Step 1: Define the problem based on facts Step 4: Find Optimal Solution and Implement (Tool: Brainstorming) Describe precisely the gap between the current situation and the desired situation Ask the following questions: What? Where? When? Frequency?

The cost of the restorations of the monument Louis Riel rises on average with 2,2M$ per year whereas the other monuments of the city cost on average 1M$ annually to be restored. Solution deduced:

Desired Situation (objective): Reduce the restoration cost of the Louis Riel Monument down to 1M$ for next Implementation Plan: What Who When year.

Temporary Solution: To reduce by half the frequency of the restorations

Step completed on: 12-Jan-06 Step 2 : List all potential causes (Facts or information collection, measure and analyze) Potential causes and results of the measures taken 1- Cost of the manpow er using external firm higher (results : the gap is only 5% - cause rejected)

2- The employees of the external firm are less efficient than the municipality techniciens (results: Step completed on: w orked hours spent by our techn. are very similar to the ones spent by the firm on comparable Step 5: Control and Check monuments - cause rejected). What Who When 3 - The Louis Riel Monument deteriorates more quickly than the others. (Go ans See if it's the case !)

Step completed on: 12-Jan-06 Step 3: Find the root causes using the 5 WHYs Why does the Louis Riel Monument deteriorate more quickly than others? Master Why 1- It's washed daily 2- The bird droppings accumulates quickly Results: Why 3- There is a lot of birds that perch 4- Birds are feeding themselves with insects in the cracks of the statues Why 5- The insects are indeed for the warmth in cracks How can we better improve the solution? plans Why 6- Powerful lighting heats the monument at dusk

Step completed on: 13-Jan-06 Indicate the risk of recurrence below Step completed on: Rev. 2 - 5 SEPT 2007 Achieving Excellence System – Module title – Date Ris k of rec urrenc e: Medium Low Very slight 43 All Rights Reserved Bombardier Inc. Top 3 Issues

Detail plans

Communicaon Zone Reviews Translating Strategy into Action Creating & Executing Plans Cascading across organization Each employee must understand his/ her contribution

Vice-president Master Plan Detailed Plan Objectives Objectives

Director Master Plan Detailed Plan

Manager Master Plan Detailed Plan

Supervisor Master Plan Detailed Plan Reviews - Plan & BSC deviations

Vice-president Master Plan Detailed Plan

Director Master Plan Detailed Plan

Manager Master Plan Résults Detailed Plan

Supervisor Master Plan Detailed Plan Conducting Reviews….… • Reviews held daily(DMM), weekly and Monthly. • Deviations highlighted on BSC & Master plans • Problem Solving initiated for deviations Coaching Reviews Cascade……..

• Daily (DMM) – Getting today’s work done today ! • Weekly – Top 3 Issues and Problem Solving in meeting Master plans and BSC target(s) • Monthly – BSC trend review

Engaging every mind…….. • An enabler reward system promoting employees to initiate and implement their own improvements Employee Submits Improvement Idea

Provide Supervisors reviews, Recognion coaches & approves Award

Check (Go-see) Employee Implementaon Implements Engaging every mind…….. • 69,700 Xcells have been implemented in 2013

• 86% of BA employee participated

• Key Success factor - Coaching approach with employees

Bombardier 2013 Award Recipient 2nd Most aracve employer in “Ronstat Award” • Survey Represents “People’s Choice” from the largest 150 companies in Canada

TELUS Communications Inc

SNC-Lavalin Group Inc. of Canada, Limited Financial Corporation (Manulife, Bank of (BMO) 1 WestJet Airlines Ltd. Manuvie) Agrium Inc. Fédération Des Caisses Desjardins Du Québec Corporation (Desjardins Group) 2 Bombardier Inc. Thomson Company Inc (Thomson ) CGI Group Inc. Siemens Staples Canada Inc 3 IBM Canada Ltd. (National Bank, Lafarge Canada Inc. Banque Nationale) Nexen of Canada Limited (Chevrolet, 4 Canadian Solar Inc. Inc. Buick, GMC, Cadillac) Transcontinental Inc Canadian Imperial Bank of Commerce (CIBC) 5 CAE Inc. Great-West Lifeco Inc. (London Life) The Jim Pattison Group LuluLemon Athletica Potash Corporation of Saskatchewan Inc. Coca-Cola Refreshments Canada Company TorStar (PotashCorp) Brewers Retail Inc (The BeerStore) Garda World Security Corporation The Bank of Nova Scotia () Bruce Power Saputo Inc. Celestica Inc. Fairmont Hotels & Resorts Inc Blackberry (formerly Research In Motion Limited) Shoppers Drug Mart Corporation Honda Canada Canada Ltd. Cineplex Inc. Molson Coors Compass Group Canada Ltd. Finning International Inc. (Caterpillar) Transat A.T. Inc. (AirTransat) Loblaws Inc Kraft Canada Inc MTS Allstream Inc. Ernst & Young GoldCorp Securitas Canada Limited Genivar Pratt & Whitney Canada International Inc. Hudson's Bay Company (TheBay, La Baie) HSBC Bank Canada The -Dominion Bank (TD Bank) Alcatel Inc. Inc. Cara Operations Limited (Swiss Chalet…) Sherritt International Corporation Indigo Books & Music Inc. Winners Merchants International L.P. (Winners) Cascades Boxboard Group Inc. ATCO Ltd. Kruger Inc Stantec Inc. Motor Manufacturing METRO INC. McCain Foods Group Inc Corporation RONA inc. Corporation, Limited (Canadian Costco Wholesale Canada Ltd. G4S Secure Solutions (Canada) Ltd Tire) Canadian National Railway Company (CN) Inc. Rio Tinto Alcan Inc. Apotex United Parcel Service Canada Ltd (UPS) Precision Drilling Corporation Canada Inc. Limited (CP Railway) Inc. (Financière Sun Life) PricewaterhouseCoopers LLP Intact Financial Corporation (Intact, Belair) Agropur & Touche LLP Shell Canada Limited Pepsi Bottling Group (Canada), Co., The Home Depot of Canada Inc. (Home Depot) KPMG Aecon Group Inc.

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