To the casual observer, aircraft manufacturer Airbus UK and pharmaceutical giant GlaxoSmithKline (GSK) wouldn't appear to share a lot of common ground. Some would say that the worlds of building airplanes and producing the next blockbuster wonder-drug are light years apart. A closer look shows that these two organizations are more similar than one might initially think. Both shared a common goal of driving out costs while not sacrificing quality. As a means to achieve that goal, they initially implemented lean-manufacturing processes. However, they became increasingly frustrated when sustainable results were slow to develop. The inescapable conclusion was that a component was missing, one that addressed the human element of the equation.
the missing
component in
manufacturing
performance
improvement
By Dustin Seale and Jim HartThe experiences of Airbus UK and GlaxoSmithKlineoffer valuable lessons for any manufacturingorganisation focusing on achieving significantbottom-line cost savings and continuousperformance improvement.
To the casual observer, aircraft tional goals and objectives. Both compa- offers interesting insights on hownies discovered that by combining lean increased gains in performance improve-manufacturer Airbus UK and manufacturing with creating a high-per- ment can be achieved when the work-pharmaceutical giant formance culture, they were able to cre- force is completely aligned with the over-ate a sustainable competitive advantage. all business objectives.GlaxoSmithKline wouldn't As Phil Swash, Vice President of Operations Airbus, like many manufacturing firms inappear to share a lot of com- at Airbus, observed: "This year we will Europe and North America, is constantlymon ground. Some would say achieve about a 14-percent productivity striving to be more efficient. Like manyimprovement, which is about three times organisations, Airbus had initiated a per-that the worlds of building what we have achieved before with lean formance improvement programme utilis-manufacturing and Six Sigma alone. Itairplanes and producing the ing the tools of Six Sigma and lean manu-greatly exceeds the industry norm of facturing first developed by Toyota manynext blockbuster wonder-drug between one and five percent per annum. years ago.Absenteeism rates have fallen from aboutare light years apart. A closer seven percent to about three percent, Although a certain level of performancelook shows that these two which, in a plant of the size of ours (with improvement was achieved, Mr Swash7,000 employees), has a significant impact observed, "Things just weren't stickingorganisations are more similar on productivity and performance." because not everyone was participating."than one might initially think. The experiences of Airbus and GSK offer Swash felt that his employees' unwilling-valuable lessons for any organisationBoth companies shared a common goal ness to become engaged was limiting thefocusing on achieving significant bottom-of driving out costs while not sacrificing programme's potential. "Quite frankly,line cost savings and continuous perform-quality. As a means to achieve that goal, they just didn't want to be engaged."ance improvement.they initially implemented lean-manufac- Lean manufacturing tools, techniques andturing processes. However, they became processes seemed to be providing only aincreasingly frustrated when sustainable Airbus: Lean manufacturing part of the solution. There must be aresults were slow to develop. alone is not enough to missing piece, but what was it?engage workersThe inescapable conclusion was that a Interestingly, it was the business press'scomponent was missing - one that The village of Broughton in the United fascination with the turnaround at Jaguaraddressed the human element of the Kingdom is best known among a small that ultimately answered these perplexingequation. group of wine aficionados as the home to questions.some of the world's best organically pro-Ultimately, leaders at both companies duced fruit wines. Not far from the vine- Jaguar's success in cutting costs from itsengaged Senn Delaney to guide them in yards sits the Airbus facility that manufac- manufacturing system while at the sameensuring that their employees were fully tures the wings for many of its planes. A time increasing quality had caught theengaged and aligned with the organisa- look inside this manufacturing operation interest of both the European and inter-
the missing component in manufacturing performance improvement [2]national business press. Jaguar's come- sations that I learned about Sennback in productivity and profitability after Delaney's involvement in the Jaguar proj- By making a deliberatefalling on hard times received much well- ect. It seemed to me that their expertise effort to shape its culturedeserved coverage. "Perhaps they knew provided the missing piece."something that we didn't? It certainly to improve performance,would be worthwhile to visit", thought This missing component focused on Airbus would be able toMr Swash. developing leadership behaviours, break- realise gains far beyonding down silos and aligning the culture of those that could beThe trip to Jaguar proved to ... [download for more]
