Welcome
Process Excellence and The Inspirational Leader:
Enablers and Challenges
Jay Watson
Director, Process Excellence Development
PortsAmerica, Chandler, AZ
MA- Human Resources Development
BS – Business Administration
35+ years experience:
• Flowserve, Siemens, GTE, Orbital Sciences, Motorola, Honeywell, GE …
1
Elevator Speech
• Process Excellence (P.E.) is a journey that will create a
sustainable platform for
– managing our current Business
– preparing us for profitable growth
• By better understanding our processes, we can
– implement changes that meet our Customers’ needs
– improve them to create greater value
• Offering greater Value is a Competitive Advantage
– P.E. directly benefits our Customers and Colleagues,
making it easier for our Customers and efficient for us
2
Issues of Change Management
3
Elements of Change Management
4
KPI
Revenue
Profits
Growth
Morale
Turnover
Costs
5
Start Here: Instill a C.I. Mentality
Continuous
Improvement
6
Instill a C.I. Mentality
Ideal for Champions and
Sponsors!
Check Out:
“What is Lean Six Sigma?”
Mike George
$ 15.00
$ 4.00 used
Continuous
Improvement
7
Evolution from Reactive to Preventive
• What are the indicators of a good day at work
versus a bad day at work?
Where are you in the spectrum of process
management?
Fire-fighting
Problem Based
Project Based
Process Based
 What is the
immediate priority?
 What changes
have occurred?
 What can we
improve upon?
 What additional
resources /
synergies are
available?
8
Among Other Things
‘Continuous Improvement’ is all about:
Safety, Quality, Speed of Execution
• Respect for People (SHE)
• Improving performance by flawless execution (6S)
• Removal of waste to reduce time (Lean)
Problem Solving
• Achieving rapid breakthrough improvement
• Applying advanced tools that work
• Making a positive and deep cultural change
• Getting Real Financial Results
9
Increase Value Add
How can we, as LEADERS …
1. Increase “Value-Add”
2. Reduce Waste and Variation
3. Inculcate Effective Problem Solving
10
Increase Value Add
• Won 2012 AMA Silver “Effie” Marketing Award
11
Increase Value Add
What is ‘Value Added’ Work Content?
• Must be performed to meet Customer needs
• Customer recognizes the value (willing to pay for it)
• Changes feature /product / data in a desired manner
(Enhances form, fit, or function to the product / service)
• Processes that are done right the first time. (Enables
service Quality, enables on-time or more competitive
delivery, or has a positive impact on price competition)
Increase Value Add
Definition of ‘Value Added’ Work Content
Dorecognizes
You or Your
Team
• Customer
the value
(willing to
pay for it)
• Changes the product in a desired manner
• Processes that are done right the first time
Think and Act this Way??
Ideally, running operations “Without the Cost of Waste …”
Increase Value Add
What is ‘Non-Value Added’?
Non-Value Added Work Content
Anything other than the
minimum number of people;
the minimum amount of effort,
material, information, and
equipment necessary to add
value.
Increase Value Add
Ideal for Champions and
Sponsors!
Check Out:
“Lean Thinking”
Womack and Jones
$ 15.00
$ 6.00 used
INSPIRE!
Instilling a ‘Can Do’
Attitude
Check Out:
“The
Process
Manager”
www.pmi.co.uk
$ 30.00
15
Increase Value Add
Enabler 1
Cross Functional Teams
Why?
• One closest to the job, knows best how to improve it
• Two Heads are Better then One
• Adopt new ideas faster
Increase Value Add
Challenge 1
Cross Functional Teams
Why?
• Team members are scarce resources
• Time constraints
• Overcoming WIIFM
Increase Value Add
Resource 1
Cross Functional Teams
Check Out:
“The Team Handbook”
Joiner
$ 35.00
$ 25.00 used
Increase Value Add
Enabler 2
Value Stream Mapping
Why?
• Identify Key Process Activities and focus on high value impact
• Understand Business outputs and value to Customer
• Improve end-to-end processes and standardize when possible
• Understand Inventories / Waste
• Simplify processes
Increase Value Add
Challenge 2
Value Stream Mapping
Why?
• Requires indoctrination
• Takes too long
• Looks and Feels ‘Foreign’
Increase Value Add
Resource 2
Value Stream Mapping
Lean Enterprise Institute
www.lean.com
Check Out:
“Learning To See”
Rother and Shook
$ 50.00
$ 45.00 used
Increase Value Add
Enabler 3
Value Analysis of Process Steps / Process Map
Why?
“Process Analysis is the foundation toward
achieving Process Excellence.”
- Jay Watson
Checkout
http://www.youtube.com/watch?v=1rlyHYDCtr8
22
Increase Value Add
Challenge 3
Value Analysis
Why?
• Value Analysis (VA) investigative techniques (analytical questioning)
a “Lesser Known” skill set
DEFINITION:
“It improves the effectiveness of work that has been
conventionally performed as it questions and probes into
the very purpose, design, method of manufacture, etc., of
the product / (service) with a view to pinpointing
unnecessary costs (waste), obvious and hidden which can
be eliminated without adversely affecting quality, efficiency,
safety, and other customer features.”
23
Increase Value Add
Resource 3
Value Analysis
Simple critical thought and questioning techniques, applicable to any
process needing improvement, are provided.
http://www.freeleansite.com/training.html
Refer to ‘Value Analysis / Flow Analysis’ power-point module
Check Out:
http://www.freeleansite.com/
Jay Watson
$ 0.00
3 take aways
How can we, as LEADERS …
1. Increase “Value-Add”
2. Reduce Waste and Variation
3. Inculcate Effective Problem Solving
25
Reduce Waste and Variation
Learn more about combining Lean, Six Sigma,
and the Theory of Constraints (TOC):
Check Out:
“Velocity”
Jacob, Bergland, and Cox
$ 20.00
$ 4.00 used
INSPIRE!
Instilling a ‘Can Do’ Attitude
26
Reduce Waste and Variation
Enabler 1
5S
Why?
5S is a visually-oriented system of
cleanliness, organization, and arrangement
designed to facilitate greater productivity,
safety, and quality.
Standardize workplace organizations:
• Have needed material, tools,
supplies, and documentation at
hand, organized, and identified
• Maintain a clean work area with
tools and equipment in top condition
• Maintain a occupationally-safe,
ESD-safe, FOD-free workplace
www.5ssupply.com
Reduce Waste and Variation
Challenge 1
5S
Why?
• Mistaken as Housekeeping
• Goes against culture (borrowing tools, looking for tools, et al)
• 5S tools no longer ‘personal’
• People tend to slip back into their own habits
We’re overly accepting of Little’s Law:
# of things-in-process
Avg. Lead Time (any process) = Avg. Completion Rate
Reduce Waste and Variation
Resource 1
5S Complimentary Material
http://www.freeleansite.com/
$ 0.00
29
Reduce Waste and Variation
Enabler 2
Lean, Green and Black Belt Development
Why?
• Identify Key Process Activities and focus on high value impact
• Understand Business outputs and value to Customer
• Improve end-to-end processes and standardize when possible
• Understand Inventories / Waste
• Simplify processes
Reduce Waste and Variation
Challenge 2
Lean, Green and Black Belt Development
Why?
• Costly and Time consuming
• Don’t see Benefit
• Not sexy
• NIH
Reduce Waste and Variation
Resource 2
Six Sigma Consulting Service
http://www.firefly-consulting.com/
$ 80,000.00
32
Reduce Waste and Variation
Resource 2a
Lean Consulting Service
www.velaction.com
$ 250.00
33
Reduce Waste and Variation
Resource 2b
Complimentary Lean Enterprise Material
http://www.freeleansite.com/
$ 0.00
Jay Arthur
$ 9.95
http://www.qimacros.com/store/proddetail.php?prod=206
34
Reduce Waste and Variation
Enabler 3
Specialized Skills Development
Why?
• Different Process Paths / Types Identified
• Process Flow / Bottlenecks (Theory of Constraints)
• Process Optimization (Six Sigma)
Reduce Waste and Variation
Challenge 3
Specialized Skills Development
Why?
• Change resistance
http://www935.ibm.com/services/us/ceo/leansixsigma/pdf/CLB_Topic_1_IBM_Smarter_Leadership_in_
the_New_Economic_Environment.pdf
Reduce Waste and Variation
Tough Questions to Consider (from IBM prezo)
• How will you develop the critical capabilities to
enhance creativity among your leadership?
• In what ways can you explore, reward and integrate
diverse and unconventional points of view?
• What is your approach to evaluate every element of
your business model to get the most from currently
untapped opportunities?
• How will you leverage new communication styles,
technologies and tools, both to lead a new generation of
talent and encourage breakthrough thinking?
37
Reduce Waste and Variation
Resource 3
TOC Consulting Service
AGI Goldratt Institute:
• “What To Change?”
• “What To Change To?”
• “How To Cause The Change?”
http://www.goldratt.com/
38
Reduce Waste and Variation
Resource 3a
Six Sigma
“Will six sigma companies get more valuation in the
marketplace? Not unless they produce results.
You can’t put up a slogan that says we are a six
sigma company and think the pe is going to move.”
- Jack Welch
Six Sigma Breakthrough Technologies, Inc.
http://sbtionline.com/
Breakthrough Management Group, Inc.
http://www.bmgi.com/
Smarter Solutions, Inc.
https://www.smartersolutions.com/index.php
Six Sigma Qualtec
http://www.ssqi.com/
Pyzdek Institute
http://www.sixsigmatraining.org/
39
Reduce Waste and Variation
Resource 3a continued ...
Six Sigma
Rath and Strong Management Consultants
http://www.rathstrong.com/
Oriel Stat A Matrix
http://www.orielstat.com/lean-six-sigma
Bain and Co.
http://www.bain.com/index.aspx
TBM Consulting Group
http://www.tbmcg.com/
Novaces
http://www.novaces.com/lean-six-sigma-implementation.php
40
Reduce Waste and Variation
Resource 3a continued ...
Six Sigma
SSA and Co. (formerly Six Sigma Academy)
http://www.ssaandco.com/
Accenture
http://www.accenture.com/us-en/Pages/service-process-innovation-leansix-sigma.aspx
Booze Allen Hamilton
http://www.boozallen.com/
Pivotal Resources
http://www.pivotalresources.com/
Air Academy Associates (Knowledge Based Management)
http://www.airacad.com/Home.aspx
41
Different Way of Thinking (Stevedore example)
Practical Problem
Vessel Start times are slower than
expected
Statistical Problem
Reduce vessel start times from 24
minutes to 15 minutes
Statistical Solution
The assignment of the first move is
statistically significant to vessel
start times
Practical Solution
First move for UTRs given at gate
entrance, instead of at vessel
42
3 take aways
How can we, as LEADERS …
1. Increase “Value-Add”
2. Reduce Waste and Variation
3. Inculcate Effective Problem Solving
43
Inculcate Effective Problem Solving
Learn and utilize 7 Greatest ‘Ideation’
techniques:
1) Questioning Assumptions
2) Opportunity Redefinition
3) Wishing
4) Triggered Brainwalking
5) Semantic Intuition
6) Picture Prompts
7) Worst Idea
INSPIRE!
Instilling a ‘Can Do’ Attitude
44
Inculcate Effective Problem Solving
Think Again
…
1) Questioning Assumptions
2) Opportunity RedefinitionCheck Out:
“Idea Stormers”
3) Wishing
Bryan W. Mattimore
4) Triggered Brainwalking
$ 30.00
“Thinkertoys”
5) Semantic Intuition
$ 13.50 used
Michael Michalko
6) Picture Prompts
7) Worst Idea
$ 20.00
$ 6.66 used
45
Inculcate Effective Problem Solving
Enabler 1
Capture Problems (A3)
Why?
• Only Thinking Drives Sustainable Change
• A3 formats are a waste-free way for report writing and
communication
“By standardizing and making visible the process of
identifying problems and formulating solutions, individuals
and companies can execute to their ideal state.”
- Jamie Flinchbaugh
Author, “A3 Problem Solving” Applying Lean Thinking
Inculcate Effective Problem Solving
Challenge 1
Capture Problems (A3)
Why?
Confusing (Definition and Use)
• A3s evolved from the Toyota Production System in the early
1960s as a simple, concise method for process improvement.
• The designation “A3” stands for the international size of the
paper (11” x 17”) used to capture all the important information for
easy understanding and decision making.
• The key element is not the form itself but the thinking that goes
into the problem analysis and resolution practice.
• Common uses for A3s include: problem solving, proposals,
project status and even value stream maps or hoshin planning.
Inculcate Effective Problem Solving
Resource 1
Capture Problems (A3)
For today's challenging business cycle, the A3 approach can offer
faster, less bureaucratic results, building on more frequent cycles of
learning through revision than DMAIC.
“Managing to Learn”
John Shook
$ 50.00
$ 40.00 used
“Understanding A3 Thinking”
Sobek and Smalley
$ 38.00
$ 29.00 used
48
Inculcate Effective Problem Solving
Enabler 2
Ideation Workout
Why?
• Identify Key Process Activities and focus on high value impact
• Understand Business outputs and value to Customer
• Improve end-to-end processes and standardize when possible
• Understand Inventories / Waste
• Simplify processes
Inculcate Effective Problem Solving
Challenge 2
Ideation Workout
Why?
• People are comfortable
• Never asked to think
• No Follow-through
50
Inculcate Effective Problem Solving
Resource 2
Problem Solving (Memory Jogger)
http://www.goalqpc.com/shop_products.cfm
Goal QPC or
amazon.com
$ 20.00
$ 3.00 used
51
Inculcate Effective Problem Solving
Enabler 3
Problem Solving (Advanced)
Why?
If there were no barriers in the way of achieving a goal, then there
would be no problem.
Problem solving involves overcoming the barriers or obstacles
that prevent the immediate achievement of goals.
Find more at:
http://www.skillsyouneed.co.uk/IPS/ProblemSolving.html#ixzz2FXoPrrHo
Inculcate Effective Problem Solving
Challenge 3
Problem Solving (Advanced)
Why?
“We believe, to do well into the future, companies must resolve that
problem-solving is the key to business, then develop a robust
problem-solving capability at all levels.”
-BMGI (article)
There are a number of different obstacles that can interfere with our
ability to solve a problem quickly and efficiently. Researchers have
described a number of these mental obstacles, which include
functional fixedness, irrelevant information, and assumptions.
-Kendra Cherry (article)
Inculcate Effective Problem Solving
Resource 3
Problem Solving (Advanced)
Kepner Tregoe (K-T) decision making is a structured methodology
for gathering information and prioritizing and evaluating it. It was
developed by Charles H. Kepner and Benjamin B. Tregoe in the
1960’s. This is a rational model that is well respected in business
management circles.
http://www.kepner-tregoe.com/
54
Inculcate Effective Problem Solving
Resource 3a
8D
A popular method for problem solving because it is reasonably easy to teach and
effective. 8D uses composite problem solving methodology, by borrowing tools and
techniques from various approaches.
The original 8D process was pioneered by Ford Motor Company and called TOPS
(Team Oriented Problem Solving).
http://en.wikipedia.org/wiki/Eight_Disciplines_Problem_Solving
Parallel Thinking
http://www.debonoconsulting.com/six_thinking_hats.asp
TRIZ
http://www.aitriz.org/
55
3 take aways
Through Improvement Initiatives
we, as LEADERS can …
1. Increase “Value-Add”
2. Reduce Waste and Variation
3. Inculcate Effective Problem Solving
56
Git-R-Done
1) Develop the ability:
• To recognize and identify waste
• To have to courage to call it waste
• To have the desire to eliminate it
2) Eliminate the waste!
3) Truly understand that variability:
– Raises costs
– Produces no corresponding benefit
– Threatens all of our jobs
57
Git-R-Done
Learn more about Change Management:
Check Out:
“Leading Change”
John P. Kotter
$15.00 - $18.00
Check Out:
“The Spirit of Kaizen”
Dr. Robert Maurer
INSPIRE!
Instilling a ‘Can Do’ Attitude
$9.00 - $14.00
58
Git-R-Done
“ Products and services
commoditize at such a
rapid rate that in the end,
the only competitive
advantage you have is
speed, talent, and brand.”
- John Chambers, CEO, Cisco
You can do this! … Questions? Need Help?
e-mail …
Call …
jay.watson.tempe@cox.net
480-820-0877 HOME
480-496-7008 OFFICE jay.watson@freeleansite.com
jay.watson@portsamerica.com
480-249-2326 CELL
59
Safe Travels
Process Excellence and The Inspirational Leader:
Enablers and Challenges
Jay Watson
Director, Process Excellence Development
PortsAmerica, Chandler, AZ
MA- Human Resources Development
BS – Business Administration
35+ years experience:
• Flowserve, Siemens, GTE, Orbital Sciences, Motorola, Honeywell, GE …
60