Driving Improvements at Canada Post

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Driving Improvements at Canada Post

• Ensuring Lean Six Sigma Efforts align with
  Business Objectives

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Agenda

• About Canada Post
• Organization for CI
• Business objectives
• Example project
• Question and Answer

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About Canada Post

• Became a Crown Corporation in 1981
• Employ almost 72,000 people
• Support an additional 45,200 jobs
• Approximately 70 of our cost is in labour

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About Canada Post

• Our brand is the most trusted of all Canadian
  Federal Institutions
• Rated as one of Canadas top 100 employers

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About Canada Post

• Over 14,000,000 points of call
• Increasing by 240,000 per year
• Largest area of all Postal Organizations
• Profitable for 14 years consecutively

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About Canada Post

• 4 different Unions or Associations
• 5 different Collective Bargaining Agreements
• No lay-off clause
• 33 of work force to retire in the next 4 years.

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About Canada Post
Process Management Visual Depot
Introduction Of Lean
Plant Equipment Alignment
Introduction Of Six Sigma
Use of JIT Principles
VSS Organization Deployed
Visual Depot ROI
Process Council
2003
2001
1999
1997
1995
2005
2007
2009
1993
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Organization for CI Roles in ECI
Operations Goals Cost Quality Service Employee
Lines of Business Parcels Transaction
Mail Direct Mail
Lean Sigma Center
GM ECI
Requirements
Requirements
Regional Lead and National Champion
RET
Regional ECI Director
IE Skills Process Changes
IEs Continuous Improvement and Projects
Local Process Owners
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Organization for CI Process Management
Lines of Business Operations
National PE Directors
Lean Sigma Center
Replication A3 s
Requirements
Parcels
Direct Mail
Transaction Mail
Process Engineer
Improvements (A3)

• Product changes
• National projects

2009 Scorecard 500K per VSS

• Process Specifications
• (Process Management System)
• Process requirements
• Outcome metrics
• Process metrics
• Process map
• Hand-offs
• Gap analysis checklist
• Audit plan
• Assess best practices

• Conduct Gap analysis
• Implement Process Specs
• Understand performance trends opportunities
• Continuous improvement
• Coach/guide standard work pace on floor (e.g
  play-book, RTO)
• Control Process Changes

Process Owner (strategy management)
Minimum Standard Baseline
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2009 Performance Scorecard Value Stream Specialist
Expenses

50

• Deliver 500K ( approx 13,500 equivalent worked
  hours) in value stream improvement savings
  documented through A3 project/ initiative reports
  (50)

Health and Safety Culture
10

• Number of accidents - plant results ( 5 )
  
• Number of accidents direct value stream actions
  ( 5 )

Service and Delivery Quality
25

• Achieve plant cut-off times for assigned value
  streams (15 )
• Service results to own value stream (10)

Employee Engagement
15

• Employee Involvement
• (i) Employee involvement in every continuous
  improvement project standard work update ( 5)
  
  
  (ii) Visible and active
  leadership ( 5 )
  
  (iii) YOY improvement in EE
  survey score in assigned plant ( 5 )

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Organization for CI VSS Scorecard
The VSS improvements will be directly
attributable to your bottom line. This is not a
separate cost savings target from yours.
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Organization for CI Doing it right!
VSS success depends on excellent support from
several directions
ECI Director
Operations Director

• Coaching
• Mentoring
• Eliminate barriers
• IE Support

• Help prioritize
• Mentoring
• Validate analysis
• Team alignment

Dialogue

• Role clarity
• Prioritizing

Manon Grise
Tony Kloosterman
Engaged Front Line Team
Process Owner
A3
Lean Sigma Center
Bob Watson (Bryan Epp)
Alison Hillis, VSS Transaction Mail
Steve Withers

• Local Process Owner
• Improvement specialist
• Lean Black Belt

• Coaching
• Training
• Tools
• Process

• PO Specs
• Measurement
• Best Practices
• ID Opportunities
• Evaluate A3s

Project 1 BCS Improvement 1 M per year Project
2 O/S Breakdown Improvement 198K per year plus
61 reduction in lead time
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Organization for CI Why Standardize?

• The true value of standard work is to serve as
  a basis for experimentation.  Standards are set -
  as bases of comparison - and are used as
  baselines for improvement.  As long as current
  standards are as they are, there should be no
  deviation.  However, if someone has a better idea
  for how to perform his or her own work, that idea
  is proposed, approved (via VSS - my words),
  tried, evaluated against the current standard and
  rewarded.

John Shook, Managing To Learn
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Business Objectives
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Business Objectives

• Business Objective
• Reduce accidents
• Improve Service
• Lower cost

Activities
Remove hazardous or wasteful activities Reduce
lead time Reduce lead time and wasteful
activities
Lean Six Sigma leads to business results
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About Canada Post

• Who is our customer?
• What processes add value?

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Example Project

• P.F.M ? Current State VSM ? Future State Map
• 48 hours!

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Example Project
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Example Project

• Do NOT brainstorm a future state!
• 8 Questions
• Takt time?
• Finished good supermarket or direct?
• Where can we flow?
• Where is pull needed?
• Where is the pacemaker?
• Production mix at the pacemaker?
• Production volume at the pacemaker?
• What other improvement are needed?

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Example Project

• Objective decision making

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Example Project
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Example Project
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Example Project
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Example Project
10 improvement Makes waste more visible
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Example Project
Did the change improve as much as we
hypothesized? If so 22,000 hours work or
814,000