The Human Side of Lean at Technicolor, Home Entertainment Services, Michigan Operations

Increasing Employee Involvement in the Technicolor Continuous Improvement Process

Technicolor, Home Entertainment Services, Michigan, A THOMSON Service, has an employee involvement process called TIPs (Technicolor Improvement Process) which was a typical suggestion program receiving very little input from employees, especially the people adding value on the line. At the end of 2002 Technicolor, Michigan changed to the Quick & Easy Kaizen system and has seen an exponential growth in the number of ideas, which are now implemented and not just suggested. Employee involvement (and morale) has also grown exponentially. The process has been recognized as a best practice by Technicolor’s parent company, THOMSON and by the National Association of Idea Management.  We will also explain the cultural, management, process and thinking changes that made all of this possible.

This presentation will include statistics on improvement and involvement as well as before & after photographs of implemented improvements. Also included in the presentation is the 19 minute SME video “The Human Side of Lean Manufacturing at TECHNICOLOR”. (We will require a DVD player or VCR and screen for the video viewing by the group.)

Headquartered in Camarillo, California, Technicolor is part of the Services division of Thomson (Euronext Paris: 18453; NYSE: TMS). Along with being the world’s largest film processor, Technicolor has evolved to become the world’s largest manufacturer and distributor of videocassettes, DVDs, and CDs, a leading provider of production, postproduction, and visual effects services to film studios and cable and television networks. On an annualized basis, Technicolor processes more than five billion feet of motion picture film, and has the capacity to produce over 1.5 billion DVDs, 330 million videocassettes, and 300 million CDs. The company is also a principal developer and supplier of services for comprehensive, end-to-end digital cinema distribution, channel origination and broadcast playout, and cinema advertising. Technicolor serves an international base of entertainment, software, game manufacturing, promotional, direct marketing, OEM, and corporate customers with its manufacturing and postproduction facilities worldwide. Major Hollywood clients include The Walt Disney Co., DreamWorks SKG, New Line Cinema, Universal, Paramount, and Warner Bros. Software publishing clients include Microsoft, Vivendi Universal Games, Electronic Arts, and Atari.

Gary Smuda , Director of Continuous Improvement

Gary has been with Technicolor, A Thomson Service, for 23 years in several positions including supervisor, scheduler, superintendent, production manager and director. Currently as Director of Continuous Improvement he oversees Technicolor’s Canadian and Michigan facilities continuous improvement initiatives. Functions reporting include employee development, purchasing.

His lean journey with Technicolor began in 1999. As a Plant Manager and “Lean Champion” he lead, coached and mentored a team of change agents at Technicolor that have been successful at changing the culture and thinking in their organization. They have their fingerprints on their operations’ processes, systems, visual factory and work instructions.

Gary has taught and used the basic lean tools such as 5 S, value stream mapping, standardized work, 8 wastes identification, 8 step problem solving and mentoring to develop this team of change agents. He is also the Canadian and Michigan operations, rapid plant assessment team leader that has performed assessments identifying opportunities for improvement. Rapid plant assessments are conducted annually by his team.

He is also the Technicolor Improvement Process (TIP’s) manager and the Thomson corporate “Cost Killer” for the Michigan operations. In 2004 these initiatives helped cut costs by $10 million. Conservative estimates attribute 70% of these savings directly to the TIP’s program. In 2005 the 1,820 employees of the Michigan facilities submitted 27,420 suggestions (Tips) of which 17,313 were implemented.

His lean leadership and mentoring has contributed to the following Technicolor milestones:

• 2 billion duplicated videocassettes produced since 1987.
• Over One Billion Disney units distributed 1993 – 2003.
• ISO9000 certified since 1996.
• 1998, 2002, 2003 & 2005 National Safety Council awards (1,000,000 hours 0 lost time).
• Automated operations reducing cost (with out loss of employment).
• Reduced number one quality defect 50% four years running.
• ISO14001 certified in June 2004.
• TIP’s program saves $7 million in 2004.
• Number One Technicolor Cost Killer in 2H04.
• AME - Award for Manufacturing Excellence award, January 2004.
• Electronic Arts Gold Quality Standard Award, April 2005.
• National Association of Idea Management award for the TIP program, May 2005.
• Restructured operations integrating VHS employees into other parts of the business.