The power of Procter & Gamble’s IWS: can you get it for free?

1. Introduction

Procter & Gamble’s Integrated Work Systems (IWS) is a comprehensive approach to operational excellence that has gained global recognition for its effectiveness in improving manufacturing efficiency, reducing waste, and enhancing overall productivity. IWS combines elements of Total Productive Maintenance (TPM), Lean Manufacturing, Six Sigma and other methodologies within a holistic framework for continuous improvement.

Licensing

But that doesn’t mean these companies have to forego all the benefits it promises. Just keep in mind that navigating customised use of IWS involves understanding of what aspects are protected by intellectual property (IP), and what elements are publicly available.

The allure of IWS

IWS is highly desirable to businesses around the world because it offers a structured, systematic approach to optimizing operations. It emphasizes employee engagement, process standardization, and data-driven decision-making. The system’s holistic nature means that it can address various operational challenges, from equipment maintenance to production scheduling and quality control, and forms a strong operational basis for efficient operations for any factory.

IWS in (very) short

In the words of Marc Winkelman, P&G’s Global Director IWS Manufacturing Excellence:

IWS is P&G’s chosen corporate operational excellence program based upon our practical experience to drive common culture and common standards across all functions and all levels in all supply chains.

IWS is grounded in lean principles, emphasizing the Zero Loss Mindset and a culture of 100% ownership. This approach aims to eliminate inefficiencies, optimize processes, and foster a sense of individual and collective responsibility. By integrating people, processes, technology, and culture, IWS strives for operational excellence and adaptability.

Zero Loss

The goal is to refine processes through Continuous Improvement and ensure every operation adds value. This involves systematically removing all types of “defects”. In a variation of the “‘eight wastes” of LEAN, within the IWS framework, these are defined as the following seven types: 1. Minor Flaws 2. Unfulfilled Basic Conditions. 3. Inaccessible Places (hard to reach) 4. Contamination Sources 5. Quality Abnormality Sources 6. Unnecessary and Non-urgent items 7. Unsafe Conditions.

100% Ownership

Every employee actively engages in identifying and eliminating losses, contributing to Continuous Improvement. This culture of shared responsibility underscores the importance of each team member in enhancing efficiency. This is married by the foundational cultural principle of Servant Leadership.

IWS vs. Traditional Systems

Unlike traditional systems focused on immediate results and mostly top-down decision-making, IWS embraces challenges, encourages bottom-up initiative and decision-making, and maintains a self-sustaining system of continuous improvement.

2. Pillars and Principles

IWS Pillars

Structured around 12 pillars – LDR, FI, PM, ET, SN, WPI, IM, Q, HSE, ENT, AM, and ORG – IWS provides a comprehensive framework for achieving desired outcomes. With different departments responsible for different pillars within the same framework, it helps shape a coordinated approach with unified goals and principles.

1. LDR: Leadership: Cultivates leaders who drive cultural transformation and strategic alignment, fostering a culture of Total Employee Ownership (TEO). This pillar ensures leaders are equipped to inspire commitment, encourage innovation, and align the organization with its strategic goals.
2. FI: Focused Improvement: Continuously identifies and eliminates inefficiencies using tools like Root Cause Analysis (RCA) and Failure Mode and Effects Analysis (FMEA). This proactive approach fosters a culture of continuous improvement, driving sustainable increases in productivity and quality.
3. PM: Progressive Maintenance: Employs proactive strategies, including predictive maintenance with data analytics, to ensure equipment reliability and prevent failures. This approach minimizes downtime, extends asset life, and supports operational excellence.
4. ET: Education & Training: Emphasizes ongoing training and development to enhance skills and engagement in continuous improvement initiatives. Continuous learning keeps employees motivated, adaptable, and equipped to drive innovation and performance.
5. SN: Supply Network: Optimizes material flow, inventory levels, and supplier relationships through advanced analytics and real-time data. This pillar ensures the supply chain operates efficiently, reduces costs, and responds swiftly to market demands.
6. WPI: Work Process Improvement: Streamlines and optimizes processes by using Lean Manufacturing principles and Six Sigma methodologies. The focus is on reducing waste, improving efficiency, and enhancing overall productivity and quality.
7. IM: Initiative Management: Utilizes the SIMPL (Simplified Initiative Management and Product Launch) methodology for cross-functional PMO and bringing innovations to market, ensuring they are aligned with strategic goals and delivered effectively, accelerating innovation.
8. Q: Quality: Ensures high-quality product delivery through robust quality control and continuous monitoring, including the application of Six Sigma principles and tools to identify and eliminate defects and reduce variability.
9. HSE: Health, Safety & Environment: Promotes a safe, healthy, and environmentally responsible workplace, adhering to regulations and sustainability initiatives, with a Zero Incident approach that reflects a commitment to preventing accidents and minimizing environmental impact.
10. ENT: Enterprise: Integrates IWS across the organization for cohesive operational excellence, synchronizing processes and aligning the supply chain to drive efficiency and support overall business goals.
11. AM: Autonomous Maintenance: Empowers operators to handle routine maintenance, enhancing their skills and ensuring equipment efficiency. This approach reduces downtime, fosters ownership, and supports operational reliability.
12. ORG: Organization: Builds a strong organizational structure and culture that supports IWS principles and fosters continuous improvement. Clear roles, responsibilities, and communication channels ensure alignment with strategic objectives and long-term success.

IWS Key Principles

All pillars are guided by the same 5 key principles:

1. Daily Management Systems (DMS): DMS provides a structured approach to maintaining and enhancing results. It promotes ownership and quick response to deviations, with an emphasis on standardizing practices for lasting efficiency.
2. Daily Direction Setting (DDS): DDS ensures a systematic approach to information management, crucial for effective decision-making. It focuses on timely communication and priority alignment, creating a unified operational direction.
3. Learn, Do, Teach: This principle emphasizes continuous growth by identifying and developing new skills. It integrates learning with practical application, emphasizing teaching, coaching, and qualification to sustain improvement.
4. Tools Supporting Zero Loss: Utilizing tools like Loss Analysis and Unified Problem Solving, this principle aims to identify and reduce losses throughout the organization, ensuring comprehensive operational efficiency.
5. Servant Leadership: This principle encourages leaders to add value by supporting and enabling their teams, promoting a culture of empowerment and shared responsibility. It emphasizes bottom-up decision-making for collective success.

3. Protected elements of IWS

While many components of IWS are based on widespread, proven industry methodologies, P&G has also developed proprietary tools and processes as part of IWS that are protected by IP. When implementing your own version of IWS in your operations, these elements must not be utilized without appropriate authorization or licensing, to respect P&G’s rightful ownership and not infringe on their legal rights. Here are some key components considered proprietary.

1. Specific Process Templates and Standards: Detailed templates and standard operating procedures (SOPs) unique to or developed for P&G’s processes.
2. Internal Training Materials: Comprehensive training modules, documentation, and manuals developed by P&G.
3. Custom Performance Metrics: Unique performance metrics and KPIs developed by P&G beyond standard industry metrics.
4. Detailed Methodologies and Frameworks: Unique approaches and methodologies developed by P&G.
5. Company-Specific Best Practices: Best practices unique to P&G’s operations and supply network, that are not in the public domain.
6. Proprietary Software Tools: Custom applications developed internally by P&G for data analysis, performance tracking, and workflow management.
7. Strategic Implementation Plans: Detailed strategic plans and roadmaps for implementing IWS within P&G.
8. Proprietary Problem-Solving Techniques: Specific techniques developed internally that are not part of general toolkits like Lean or Six Sigma.
9. Internal Assessment and Audit Tools: Custom tools and checklists used for assessing and auditing IWS implementation.
10. Innovative Operational Models: Unique operational models or frameworks supporting IWS efforts.
11. Benchmarking Data: Proprietary benchmarking data and performance comparisons used internally by P&G.
12. Customized Workflow Solutions: Bespoke workflow solutions tailored to P&G’s environment.
13. Confidential Case Studies and Success Stories: Detailed case studies with proprietary information about IWS application at P&G.
14. Any other proprietary tools, methodologies, data, or systems developed internally by P&G that are not publicly available or commonly used in the industry.

Most of these components, as you will have noticed, will be quite specific to P&G’s own operations, and with that, less interesting for other organisations to reapply. Besides that, in terms of scale, many of these would not be very usable or meaningful in the smaller operations of most companies other than MNCs.

Disclaimer

This is not a legal document and does not constitute legal advice. The information provided here is intended for general informational purposes only. In case of doubt or uncertainty regarding the use or protection of any IWS materials mentioned, always consult with P&G or EY to confirm whether they are free to be used or considered protected. For specific guidance on intellectual property rights or any related matters, please seek appropriate legal counsel.      

 4. Publicly available building blocks

Despite these protected elements, many of the main building blocks of IWS are based on well-known industry standard methodologies that have been around for a long time and are available for public use. While, as we have just seen, most of P&G’s IP-protected parts are specific to their own factories, many main, publicly available building blocks are sufficient to get you most of the benefits when properly shaped and applied to your own specific operations. Here are the publicly available core components used within IWS that you can freely use to build your own effective operational improvement strategy:

1. CI, Employee Engagement and Empowerment: Encourages employees at all levels to participate in problem-solving and decision-making, fostering a culture of continuous improvement.
2. Total Productive Maintenance (TPM): Engages all employees in maintaining equipment to ensure it operates reliably. TPM includes autonomous maintenance, planned maintenance, quality maintenance, and design principles such as EEM (early equipment management).
3. Lean Manufacturing Principles: Focus on eliminating waste, improving flow, and delivering value to customers. This includes practices like 5S, Kaizen / continuous improvement, and Just-In-Time production.
4. Six Sigma: A data-driven approach to improving quality by identifying and eliminating defects in processes. Six Sigma uses tools like DMAIC (Define, Measure, Analyse, Improve, Control) and statistical analysis.
5. Standard Work: Documenting and maintaining the best way to perform a task to ensure consistency and efficiency, often recorded in Standard Operating Procedures (SOP’s).
6. Visual Management: Using visual signals to communicate essential information quickly and effectively. This includes tools like Kanban boards and Andon lights.
7. Performance Measurement and KPIs: Tracking key performance indicators (KPIs) to monitor progress and identify areas for improvement.

With these publicly available parts, if brought together in an intelligent and purposeful plan, you can already do wonders and make huge strides in operations and supply chain efficiency.

The below table makes the link between these 7 components, and the 12 pillars of IWS.

Diving into a bit more detail on these elements:

1. Continuous Improvement, Employee Engagement and Empowerment

Engaging employees in continuous improvement processes can lead to significant benefits:

• Problem-Solving Teams: Forming cross-functional teams to tackle specific problems and develop solutions.
• Suggestion Systems: Encouraging employees to contribute ideas for improvements.
• Training and Development: Providing ongoing training to equip employees with the skills needed for continuous improvement.

2. Total Productive Maintenance (TPM)

TPM seeks to maximize the effectiveness of equipment. Key components include:

• Autonomous Maintenance: Operators are trained to perform routine maintenance tasks, such as cleaning and inspections, to prevent breakdowns.

• Planned Maintenance: Scheduled maintenance activities to prevent unexpected equipment failures.
• Quality Maintenance: Focusing on maintaining equipment to produce high-quality products consistently.
• Early Equipment Management (EEM): Designing equipment that is easy to inspect, clean, and maintain to ensure reliability and performance.

3. Lean Manufacturing Principles

Lean manufacturing aims to maximize value by eliminating waste and improving processes. Key lean principles include, for example:

• 5S: Sort, Set in order, Shine, Standardize, and Sustain. This methodology organizes the workplace to improve efficiency and safety.

• Kaizen: Continuous improvement involving everyone in the organization, from executives to workers. It promotes small, incremental changes to improve productivity and reduce waste.
• Just-In-Time (JIT) Production: Producing only what is needed, when it is needed, and in the amount needed. This reduces inventory costs and increases efficiency.

4. Six Sigma

Six Sigma aims to improve quality by reducing variability and defects. Some key tools:

• DMAIC: A structured problem-solving methodology that stands for Define, Measure, Analyse, Improve, Control.

• Statistical Analysis: Using statistical methods to analyse data and identify root causes of defects and variability.
• Process Mapping: Visualizing processes to identify areas for improvement.

5. Standard Work

Standard work ensures that tasks are performed consistently and efficiently:

• Documentation: Creating clear, detailed work instructions and SOPs.

• Training: Ensuring that all employees are trained to follow standard work procedures.
• Continuous Improvement: Regularly reviewing and updating standard work to reflect best practices.

6. Visual Management

Visual management makes important information easily accessible:

• Colour Coding: Using intuitive gauges and indicators to facilitate autonomous maintenance.
• Kanban Boards: Visual tools to manage workflow and inventory.
• Andon Lights: Visual signals to indicate the status of equipment or processes.

7. Performance Measurement and KPIs

Effective performance management involves selecting the right KPIs to drive continuous improvement. Here are several often-used KPIs for operational performance:

• Overall Equipment Effectiveness (OEE): Measures equipment productivity by combining availability, performance, and quality. Higher OEE indicates more efficient use of equipment.

• Cycle Time: Total time from the start to the completion of a process. Shorter cycle times generally mean more efficient operations.
• Throughput: Amount of product produced over a given period. Higher throughput indicates more productive processes.
• First Pass Yield (FPY): The percentage of products that pass quality inspection the first time without requiring rework. Higher FPY indicates better quality and less waste.
• Changeover Time: Time taken to switch from one product to another. Reducing changeover time can significantly improve efficiency and flexibility.

5. Your own Integrated Work Systems

Designing your own version of an Integrated Work System (IWS) can be a transformative journey for your operations. Whether you choose to implement a few key components or undertake a major overhaul, tailoring IWS to your specific needs can significantly enhance efficiency and productivity.

Depending on your starting point and business requirements, you may decide to integrate select elements or develop a comprehensive, bespoke system. This approach ensures that you address the unique challenges and opportunities within your operations.

Creating a customized IWS involves a strategic approach to select and implement the methodologies that will drive the most significant improvements for your business.

You may have sufficient capacity and expertise in-house on these methodologies and on PMO practices, or you may prefer to enlist the support of an external expert. The principal factors are to get the design right from the start, as this will determine the benefits you can hope to attain – and to perfectly execute the implementation, ensuring success and reaping those benefits in a sustained, long-term manner.

Here are some key steps to consider.

1. Assess your needs

Begin by conducting a thorough assessment of your operations. Identify the specific challenges and opportunities that exist within your current processes. This will help you understand where the most significant improvements can be made and which IWS components will be most beneficial.

2. Choose the right components

Select the IWS building blocks that align best with your operational goals. For example:

• If your factory struggles with frequent machine breakdowns, implementing TPM can help reduce downtime and improve overall equipment effectiveness.
• If you face challenges with quality control, Six Sigma methodologies might be more relevant.

• If inventory management is a significant issue, adopting Lean Manufacturing principles like Just-In-Time (JIT) production can help reduce excess inventory and improve cash flow.

Make your cost/benefits analysis of the different building blocks that can benefit your operations. Listing them in a Pareto chart may help in deciding what parts to implement in your initial project, given restrictions in terms of budget and other resources.

3. Plan the implementation

Structure your implementation plan to maximize efficiency. Some components can be implemented in parallel, while others should be sequential. For example, establishing standard work procedures might be a prerequisite for effective visual management.

• Parallel Implementation: You can start with both TPM and Lean 5S practices simultaneously, as they complement each other by focusing on equipment efficiency and workplace organization.
• Sequential Implementation: Begin with implementing standard work before moving on to more complex methodologies like Six Sigma to ensure a solid foundation is in place

4. Design and preparation

Develop a detailed plan that includes timelines, responsibilities, and resources needed. Ensure that you have the necessary tools, training materials, and support systems in place before you begin. This phase is critical for setting clear expectations and ensuring that everyone involved understands their roles.

5. Implementation phases

Implement the chosen components in phases. Start with pilot projects to test and refine your approach. Once successful, gradually roll out the practices across the entire operation.

• Pilot Phase: Select a small, manageable area of your operations to test the implementation of the chosen methodologies. Use this phase to gather data, refine processes, and address any challenges.
• Full Rollout: Based on the success of the pilot phase, expand the implementation across the entire operation, ensuring that lessons learned are applied to improve efficiency.

6. Sustaining the improvements

Ensure that the improvements are maintained over time. This involves regular monitoring, continuous training, and periodic reviews to identify areas for further improvement.

• Regular Monitoring: Establish key performance indicators (KPIs) to track progress and ensure that the implemented changes are delivering the expected benefits.
• Continuous Training: Provide ongoing training to employees to reinforce the new practices and ensure they are sustained over the long term.

7. Resources and training

Engage both internal and external expertise to support your efforts if needed. Provide ongoing training to employees at all levels to ensure they have the skills and knowledge needed to sustain the improvements. Having the right resources and training programs in place is essential for long-term success.

6. The Secret Sauce: It’s all about the culture…

For lasting success, you cannot forget about the cultural transformation that is an integral part of IWS. Even when just introducing a few base methodologies, without the cultural change that supports the right way of working, successes can be very short-lived.

Ensuring that cultural transformation occurs alongside technical implementation is key. The combination of the two is where the magic happens… Here’s a small ‘roadmap’ with recommendations on how to effectively blend these elements to create a cohesive and empowered workplace culture:

1.       Articulate the Vision and Principles

• Clearly communicate the vision of operational excellence through IWS, emphasizing cultural elements like 100% ownership and servant leadership.
• Link these principles to tangible business outcomes.
• Use storytelling and examples to illustrate the desired cultural behaviours.

2.       Engage Leadership and Foster Servant Leadership

• Train leaders to support and empower their teams, adopting a servant leadership style.
• Encourage leaders to actively listen to employees and act on their feedback.

3.       Promote 100% Ownership

• Encourage every employee to take responsibility for identifying and solving issues, fostering a 100% ownership mindset.
• Implement recognition programs to reward proactive problem-solving and continuous improvement.
• Create clear channels for employees to voice ideas and take part in decision-making processes.
• Share stories of successful employee initiatives to inspire others.

4.       Facilitate Bottom-Up Initiative and Decision-Making

• Establish systems that support input from all levels, ensuring decisions are informed by frontline insights.
• Implement suggestion systems and feedback loops, with visible follow-up actions to build trust.

5.       Integrate Training and Coaching

• Provide comprehensive training on IWS methodologies, including TPM, Six Sigma, and other key components.
• Use real-life scenarios and case studies in training to make learning practical and relevant.

6.       Create a Supportive Environment

• Foster a positive and collaborative atmosphere by creating platforms for sharing best practices and successes.
• Encourage cross-functional teams to work together, breaking down silos and leveraging diverse perspectives.
• Organize workshops and events that highlight collaboration and innovation.
• Provide safe spaces for constructive feedback and dialogue.

7.       Monitor Progress and Celebrate Successes

• Use both quantitative and qualitative metrics to assess cultural transformation progress.
• Regularly communicate achievements and recognize contributions at all levels.

8.       Sustain and Evolve the Culture

• Continuously reinforce cultural elements through regular communication and training.
• Adapt cultural strategies as the organization evolves, ensuring they remain relevant and effective.
• Encourage a culture of feedback where continuous improvement is a shared goal.
• Invest in ongoing leadership development programs.

This approach ensures a holistic integration of cultural transformation with the technical elements of IWS. By weaving these elements together, Companies can build a robust, integrated system that not only implements powerful methodologies but also fosters a culture of ownership and continuous improvement, and a unified and committed workforce. It is this integration that will enable you to unleash the real power of IWS, and drive sustainable success.

Conclusion

While Procter & Gamble’s IWS includes elements that are protected by IP, this does not pose an absolute barrier to growing towards the levels of operational excellence that IWS is renowned for. The publicly available components of IWS by themselves provide a robust foundation for improving efficiency and productivity in your operations. By leveraging these proven methodologies and adapting them to your specific needs, and applying them in a coordinated and integrated manner across your organization, you can achieve substantial improvements in performance – especially when combining the improvements with the workplace culture transformations that will provide the strong foundation to sustain these improvements long-term.

Implementing IWS effectively requires careful planning, selection of the right components, and a structured approach to employing and sustaining both cultural and technical improvements. Building on the right internal and/or external expertise in these methodologies is critical to your ability to ensure selecting, structuring and implementing the right mix of strategies for your operations. By doing so, you can realize the potential of IWS and drive significant structural gains in operational efficiency and ROI.