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Applying for the AME Excellence Award

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Here are slides describing the process of applying for AME's Excellence Award. Deadline for Intent to Apply has been extended through February 28, 2018.

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Applying for the AME Excellence Award

  1. 1. Applying for the AME Excellence Award The lean standard for continuous improvement Pat Wardwell, Owner Pt. North Ventures, LLC Member, AME Excellence Award Leadership Council
  2. 2. Agenda – Overview of AME’s NEW, SIMPLER Excellence Award Applicant Process and timeline – Review of Key Applicant Documents • Plant Profile • Lean Sensei self assessment tool • Metrics Supplement – What to expect if awarded a site visit – Feedback provided to applicants – What makes a good applicant submission – Questions 2
  3. 3. Background of the AME Excellence Award • A framework to guide continuous improvement within an organization • A way to recognize the accomplishments of companies that are making good progress on their journey 3
  4. 4. Purpose of Awards Receive Feedback Hard Work To Improve We bring together great people (assessors and award applicants), doing great things, who are willing to share their knowledge. 4
  5. 5. Management System (300pts) Management System (150pts) Human & Organizational Development (150pts) Safety & Environment (50 pts) Safety & Environmental Health Extended Value Stream Mgmt. (150 pts) Product Development (75pts) Supplier Development & Procurement (75pts) Quality (50pts) Scrap/Yield Rates Customer Rejects Warranty Claims Other Measures Cost (50pts) Value Added/Associate Inventory Turns Other Related Measures Delivery (50pts) On-time Shipments Premium Freight Costs Other Related Measures Manufacturing Operations (200pts) Waste (Muda) Unevenness, Fluctuation & Variation (Mura) Overburden People or Machines (Muri) Business Operations (100 pts) Waste (Muda) Unevenness, Fluctuation & Variation (Mura) Overburden People or Machines (Muri) AME Pathway Toward Excellence AME Excellence Award Criteria Key Deployment Processes Manufacturing & Business Operations Plant Results Profitability (50pts) EBIT Operating Income Other Related Measures Feedback Feedback Feedback Business Results Total Points: 1000 5 http://www.ame.org/files/15-ame-2018-awards-guidlines-8.5x11-sept-25.pdf Use the link below to get the awards brochure which includes the criteria and intent to apply form
  6. 6. Application and Assessment Process 1. Intent to Apply/Plant Profile Form 2. Submittal of Applicant Required Documents 1. Lean Sensei excel file and Metrics supplement sheet 3. Review of Applicant Documents/Scoring – Decision on Site Visit – Feedback report for sites that don’t merit a visit 4. Site Visit to confirm and clarify – Final Scores – Feedback Report 5. Notification by Awards Council 6. Awards Celebration held to officially acknowledge recipients6 Link to general information and documents: http://www.ame.org/excellence-awards
  7. 7. General Process/Timeline- A lot to be done in March – May by Assessor Teams and Awards Council! J F M A M J Ju A S O N D Submit Intent to Apply/Profile Form Submit Lean Sensei file and Metrics supplement document Site Visits conducted Award recipients notified and feedback reports sent Recipients honored at AME Awards event Minimum score for recommending site visit: > 750 points 7 Questions can be directed to Jerri Strohmeyer at jstrohmeyer@ame.org or fax it to 224-387-3370.
  8. 8. 8 Links to get the award guidelines and intent to apply form http://www.ame.org/files/15-ame-2018- awards-guidlines-8.5x11-sept-25.pdf Sent to AME by February 5, 2018 together with application fee
  9. 9. Eligibility and Non- Disclosure 9 Introduction to NAICS: The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. The application entity is a single plant in the United States, Canada or Mexico. Applicants doing "maintenance, repair and overhaul" in either the private or public sector are eligible. The plant should have been in operation for a minimum of three years. Award eligibility must be delineated as “manufacturing" by the North American Industry Classification System (NAICS) – (see http://www.census.gov/eos/www/naics/). Questions regarding eligibility should be forwarded to the AME office. AME members should contact the AME office if they wish to have one of their international affiliate operations apply. Final decisions regarding AME Excellence Award recipients are made by the AME Awards Council. CONFIDENTIALITY & NON-DISCLOSURE All members of the AME Awards Council and all AME assessors have signed confidentiality and nondisclosure agreements. The AME Excellence Award also has a clear policy and process to ensure that conflicts of interest are avoided.
  10. 10. Application Process: Download and Use the AME Lean Sensei A completed sample is included for your review 60 Questions based on the Criteria 10 Link to YouTube webinar on how to use the Lean Sensei tool: https://www.youtube.com/watch?time_continue=29&v=L1mKoi-nWTQ http://www.ame.org/lean-sensei
  11. 11. Ratings automatically generate a score 11 Sections and Sub Categories Possible Actual LetterGrade % SectionGrade Muliplier Possible Weighted Points YourActual Weighted Points Management System 20 16 80 A 7.5 150 120 o Policy Deployment 5 4 A o Management System Reporting 5 4 A o Leader Standard Work 5 4 A o Continuous Improvement 5 4 A Human and Organizational Development 25 20 80 A 6 150 120 o Respect for Team Members 5 4 A o Morale 5 4 A o Problem Solving 5 4 A o Employee Development 5 4 A o Rewards and Recognition 5 4 A Safety and Environmental Health 15 12 80 A 3.3335 50 40 o Safety 5 4 A o Energy 5 4 A o Carbon Neutral 5 4 A Manufacturing Operations 85 68 80 A 2.353 200 160 o Waste Reduction 5 4 A o On Time Delivery 5 4 A o Quality 5 4 A o Raw Materials 5 4 A o Finished Goods 5 4 A o Material Handling 5 4 A o Standard Work 5 4 A o Pull Systems 5 4 A o Synchronization 5 4 A o Level Loading 5 4 A o Maintenance Programs 5 4 A o Visual Performance 5 4 A o Value Streams 5 4 A o 5S 5 4 A o Change Over 5 4 A o Layout for Flow 5 4 A o Cross Training 5 4 A Business Operations (in the Office) 55 44 80 A 1.8182 100 80 o Waste Reduction 5 4 A o Service Levels 5 4 A o Quality 5 4 A o Information Synchronization 5 4 A o Level Loading 5 4 A o Standard Work 5 4 A o Visual Performance 5 4 A o Value Streams 5 4 A o 5S 5 4 A o Layout for Flow 5 4 A o Cross Training 5 4 A Product Development 15 12 80 A 5 75 60 o Design Internal 5 4 A o Design External 5 4 A o Design Tools 5 4 A Supplier Development and Procurement 15 12 80 A 5 75 60 o Supplier Decisions 5 4 A o Supplier Improvement 5 4 A o Pull Based Systems 5 4 A Quality Focus 20 16 80 A 2.5 50 40 o Scrap 5 4 A o Customer Loyalty 5 4 A o Customer Results 5 4 A o Warranty 5 4 A Cost 15 12 80 A 3.3335 50 40 o Value Add / Employee 5 4 A o Inventory Turns 5 4 A o Capacity Management 5 4 A Delivery 20 16 80 A 2.5 50 40 o On Time and Complete 5 4 A o Lead Time 5 4 A o Premium Freight 5 4 A o Parts Shortages 5 4 A Profitability 15 12 80 A 3.3335 50 40 o EBIT 5 4 A o Operating Income 5 4 A o Market Share 5 4 A Totals 300 240 80 A Totals 1000 800 Lean Sensei® Report Card Weighted per Actual Audit Points for AME Award Do not enter data on this sheet; it will autopopulate Weights your ratings to arrive at an AME Excellence Award application score
  12. 12. • Add evidence to support your scores to the file http://www.ame.org/lean-sensei-excel-tool • Download and fill in the Metrics Supplementary Worksheet (will be available on-line, by the end of August) • Send the completed Excel file & Metric Supplement to the AME Office by March 12th Application process: Supporting Your Scores 12 ….During our monthly Hoshin feedback meeting, the x-matrix and lean metrics and improvement efforts are reviewed…
  13. 13. Application process: Show Your Measured Results • Download and fill in the Metrics Supplementary Worksheet • 3 years or more results required 13 Link to get to Metric Supplementary Worksheet and example: http://www.ame.org/excellence-awards Lean Sensei with supporting information and Key Metrics Supplement due on March 12, 2018!
  14. 14. Where to get all the information and documents you might need • http://www.ame.org/excellence-awards • To apply for the AME Excellence Award, please download the following and review the examples provided for assistance: – 2018 Lean Sensei Application – Lean Sensei Application Example – 2018 Metric Supplement Worksheet – Metric Supplement Worksheet Example – Alternative Word Doc Format to Submit Achievement Report 14
  15. 15. What happens once you submit the LEAN SENSEI and Metrics Supplement documents? • Reviewed by team of Examiners • Scored individually and then consensus is reached on scores and the team also recommends whether or not to support a site visit
  16. 16. Feedback From applicant documents Site Visit Awarded Get ready for site visit! No Site Visit Receive report, view the feedback and continue your journey. When will you next apply?
  17. 17. Site Visit and Related Fees • Site Visit Team – Small plant (generally less than 300 people) assessment team will generally consist of three assessors – Medium-sized plants will require a team of four to five – Large plants will require a team of six to seven assessors. • PLANT ASSESSMENT FEE – The plant assessment site visit fee will vary depending upon the size and scope of the plant. Applicants will be notified of the fee prior to the plant assessment site visit. – This fee will generally run between $4,500 and $10,500. 17
  18. 18. Prior to the Site Visit • Team Leader contacts Site Contact to establish dates • Discuss basic flow of the site visit and provide requirements for meeting space • Confirm logistics of visit Team Leader will confer with Site and Assessment Team to answer any questions and ensure that they understand expectations of visit.
  19. 19. What is the team looking for? • Confirm self-assessed scores and what was submitted, see with their own eyes what is happening • Verify, clarify as needed points which may not have been clear in submitted documents • Determine degree continuous improvement is practiced in all areas of the business. – Appropriate use of lean thinking, methods and tools • Understand breadth and depth of culture and effective implementation of philosophies, systems and tools • Confirm results since application received
  20. 20. Basic Site Visit Expectations • Quick 30 min. kick off meeting with Leadership • Facility Tour – process flow in reverse order and show us what you want to in those areas. • Most of balance of Day 1 & and early on Day 2 – “Go and See” deeper divers, attend meetings, scheduled visits – Meet with leaders and associates in areas – Site liaisons needed to move assessors to/from meeting rooms/visits • Lunch Day 1 – with Leadership team, if desired. • If have off shift activity – will make plans to see it • Score late morning and afternoon of Day 2. Working lunch for assessors only • Quick 30 min Close out meeting end of day 2
  21. 21. Post Site Visit • Complete comprehensive feedback report and make Award recommendation • Submit to Award Leadership Council
  22. 22. What Feedback is Provided to Applicants? – A detailed, scored report • Specific feedback, organized according to the criteria outline – Concrete examples wherever possible, including pictures as appropriate – Guidance to achieve next levels of improvement 22
  23. 23. What makes a good submission package? • Clear and Concise – Supporting information flows logically, according to order of the criteria – Spelling and Grammar checked – Strong examples as evidence (no laundry lists) • Photos and/or graphs are relevant to the section requirements, and are appropriately sized, titled and captioned – Include goal and trend lines where applicable – Indicates direction of improvement (e.g. Good) – Explain any exceptions23
  24. 24. What makes a good submission? • Overall scores, evidence provided and data submitted give a sense of current state and how the journey has unfolded for the site • Demonstrates breadth and depth of improvement efforts – Appropriate attention to each of the 3M’s (Muda, Mura, and Muri) in Mfg and Bus. Operations section – Examples from non-production areas – Examples of how Leaders are personally involved • Plant Profile included in Lean Sensei24
  25. 25. For More Information/Questions • AME Excellence Award – http://www.ame.org/excellence- awards • Award Council Leader – Michael Bremer 630-235-4210 michael@cumberlandchicago. com • Jerri Strohmeyer (AME Office) 224-232-5980 jstrohmeyer@ame.org 25
  26. 26. Thank you and we look forward to receiving your application! Questions? 26 Important Dates! • Intent to Apply: 2/5/18 • Required Applicant Documents Submitted: 3/12/18 • Site Visits Conducted: June – Mid July • Award Notification: 8/10/18 • Feedback Reports Sent: 8/10/18 Pat Wardwell: tompat_01730@yahoo.com 781-789-0153