Scanlon July 2004 E-zine

Greetings!

A recent Maritz poll of American Workers found that 52% viewed their relationship with Management as "lukewarm" or "negative." The consequence of such little trust is devastating for individuals and organizations. Work does not have to be this way. It takes effort to build trust, but it can be done. Trust starts when information is shared. It builds with meaningful Participation. It is nurtured by Equity systems and it expands with increased Competence. In this E-zine we feature articles about Ferro Corporation's successful lean initiatives. With the help of the Network, Ferro Managers have increased the competence of thousands of their employees in creating a Lean Enterprise. Jeff at SGS and Sylvia and Kathie at Smith Dairy show how Scanlon is building trust in these organizations. (The Scanlon Conference where Front-line employees and Managers learn together is often mentioned as a powerful way to build trust and commitment.) According to Maritz "You just can't buy employee trust, you have to earn it." The Network provides the Principles, tools and techniques to help Scanlon Managers earn it.

Lean Manufacturing Expands Its Scope

Lean Manufacturing has been so successful at the Ferro Corporation in the two years since it was first introduced that the company has expanded the scope of the concept beyond manufacturing to research and development, sales, marketing functions, quality control, customer service, shipping, order entry and maintenance.

"I call this broadened initiative Lean Enterprise," says Hal Musler, Worldwide Director of Manufacturing for Ferro's Color and Glass Performance Materials (CGPM) business. Musler, who is spearheading the company's global Lean Enterprise program says, "Lean is not a stand-alone manufacturing effort. It is a continuous process using managerial tools to optimize efficiency and eliminate waste and unnecessary activities."

The company established "Lean University" to offer training and resources for Ferro operations around the world after Ferro's CGPM business first initiated lean activity in November 2002 at the company's Washington, PA site with the advice and assistance of Leadership Network President Paul Davis and the Network's Lean Sim machine. Since then Ferro has trained more than 1,000 employees in lean principles at 35 plants around the world and Lean Teams have identified and/or implemented 576 projects that will generate significant savings.

"Lean Manufacturing Value Stream Mapping (VSM) which identifies bottlenecks and problems is a powerful tool," says Hal. "It has helped Ferro avoid significant capital investment, achieve working capital objectives and maintain on-time deliveries to customers. Value Stream Mapping is an important aspect of Lean Enterprise because it teaches employees to see the waste and problem areas," said Hal. "We are very pleased with the motivation, positive attitude and levels of participation we have seen. The training has been very well received."

VSM follows a process from shipping back to incoming raw materials. By mapping each step wasted steps can be easily detected. This can lead to improved process flow with less wasted material and personnel movement. VSM aids in the elimination of non-value-added activities, consolidation of process steps, optimizing through-put rates, and reducing change-over times.

The result of a reduction in raw materials, work in progress and finished goods inventories will yield a reduction in working capital.

Lean Champions have been identified and are leading Lean Teams, conducting kaizen events and monitoring lean projects at the plant sites. Lean Teams work closely with other departments because improvements are seldom isolated incidents and usually impact other operations and departments.

"At Ferro we strive for quality, on-time delivery and customer satisfaction," says Hal. "There will always be benchmarks to maintain and improve and we believe that Lean Enterprise is the best tool to help us do it. It is a continuous ongoing global process."

SGS Employee Applies Scanlon Ideals At Work, Home



A strong proponent of the Scanlon Leadership Network's principles, Jeff Wilson, Distribution C for SGS Tool, says that the lessons learned through his association with Scanlon have strengthened aspects of not only his work life, but also his personal life. (Jeff is wearing a clown nose from a Humor, Risk, and Change workshop).

"I had already implemented many of Scanlon's values here at work, such as positive motivation techniques and teamwork, even before our company was a part of the Network," said Jeff. "But when Scanlon came along, I knew immediately that I wanted to get involved," he added.

Jeff's mother-in-law, Sandra Wolfe, explains that Jeff just can't get enough of Scanlon.

"He's been talking about it for the last two or three years," said Sandra. "I bought him a Scanlon book and other materials through the website as a birthday gift this year, and he was thrilled."
Jeff has attended two Scanlon conferences, and most recently participated in workshops such as Stress Management and Humor, Risk and Change.

"What draws me most to Scanlon is how everything is so interactive," said Jeff. "The closeness that we share as a company helps us grow professionally and personally - it's overwhelming."
The Stress Management workshop reminded Jeff not to "sweat the small stuff."

"It taught me how stress plays a part in our lives, what the triggers are and ways to defuse the tension," said Jeff. "Scanlon's ideals have helped me learn to focus and relax while I'm working and while I'm at home."

Each year when participants return from the Scanlon conference, they share what they have learned in an attempt to bring the conference to their colleagues. For the second year in a row, SGS is producing a video to show throughout various branches of the company. Jeff will appear in this year's video, entitled Scanlon at SGS: Past, Present and Future.

Jeff's wife, Sandy, says that he enjoys talking to other people about Scanlon because he wants to help improve the company.

"He brings home all kinds of literature and paperwork about it," said Sandy. "He's got Scanlon stuff everywhere."

Jeff agrees that Scanlon has been a huge part of his life.

"I didn't expect it to carry over into my personal life, but I want to thank Scanlon for that," he said. "The values continue to help me grow as an individual, and also allow me to add the personal touch at work."

Located in Munroe Falls, Ohio, SGS Tool Company is one of the world's largest independently owned manufacturer of solid carbide rotary tools. SGS became a part of the Scanlon Leadership Network in May 1998.

As I See It - Sylvia Hurst



Sylvia Hurst, QUEST (Quality Using Education, Suggestions and Teamwork) Coordinator and Accounts Receivable, Smith Dairy, Orrville, OH. Sylvia began working at Smith Dairy in 1997, and has been involved with QUEST, the dairy's Scanlon plan, since its inception in September 2001.

"The Scanlon ideals are principles I believe in and I am passionate about. The values are tremendous - they match so well with Smith Dairy's values. QUEST is a great tool that strives to keep everyone here focused."

Sylvia supports and encourages department meetings and encourages participation in QUEST. She also passes on information from managers and keeps employees informed by posting bulletin boards with suggestions, Quality Chekd results and updates on how different QUEST goals are doing, and shares news via television monitors in different branches of the company.

"Communication is a big issue, and people always seem to want more. My job is to make sure that everyone is heard and has a voice within the company. The fact that upper management shares so much information shows monumental trust and faith in our associates. By doing this they validate employees' voices and opinions. At Smith Dairy, empowerment isn't just about making decisions, it's about having input."

As I See It - Kathie Massie

Kathie Massie, Co-Leader of the Scanlon Suggestion Committee and Accounts Receivable, Smith Dairy, Orrville, OH. Kathie, who has worked with a team to review employee suggestions for almost two years, attended her first Scanlon Conference in May.

"I was so inspired when I returned from the Conference that I wanted to get started right when we got back. I attended Scanlon workshops on humor, employee suggestions, and brainstorming, which were quite helpful because we're always trying to incorporate more of the Scanlon techniques and values.

"My committee meets every two weeks and goes through suggestions and input from Smith Dairy employees. One of our main goals now is to have each department investigate and implement suggestions pertaining to their areas. These meetings would include department associates and their managers as a way of information sharing. Scanlon uses a lot of concepts that I feel make a good company, such as empowering their associates and using them to their fullest capabilities, which is something that I think every company needs."