Behavior-Based Performance Excellence

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Behavior-Based
Performance Excellence
Fuller, Jones & Associates, Inc.
“A Radically Simple Approach to Improving Performance”
April 2006
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FJA-301-06
Leading Enterprises …



Identify and Avoid Unnecessary Costs
Maintain Superior Levels of Customer
Satisfaction
Optimize Organizational Performance
What Are the Barriers to Achieving the Above?
April 2006
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FJA-301-06
What Are The Barriers To Success?
System Barriers
Business flows
(inputs)
Performance indicators
(outputs)
Waste
Focus of Lean
People and process
Material
Variability
Focus of 6s
Information
Quality
Cost
Inflexibility
Focus of Theory Of
Constraints
Time
Feedback Loop
Waste = High Cost
Variability = Low Customer Satisfaction
Inflexibility = Sub-optimization
April 2006
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FJA-301-06
The Manifestation of Barriers
“The Iceberg Analogy”
Cost Of Poor Quality
“Above The Waterline”
~5% of Operating Expense*
Examples:
• Scrap
• Rework
• Downtime
• Warranty
Cost Of Poor Quality
“Below The Waterline”
~35% of Operating Expense*
Examples:
• Incorrect Billing
• Improper Tools
• Lack of Training
• Overtime
• Unclear Requirements
• Absenteeism / Tardiness
• Lack of Process
• Accidents
* Philip Crosby & Associates Estimate
Does Your Organization Understand the Hidden COST of Poor Quality?
April 2006
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FJA-301-06
What Choices Existed Before BBPE?
PDCA
8Disciplines (8D)
7-Step
PLAN
1st Discipline - Form Team
2nd Discipline - Define Problem
4th Discipline - Contain the Problem
1. Define and Contain the
Problem
Theory of Constraints
Identify Constraint
Lean Mfg, JIT, DFT
Six Sigma /
Design for Six Sigma
Identify cycle time
and WIP reduction
as major issue
Define / Identify
Establish cycle
time and WIP
baselines
Conduct Analysis:
Value Stream
7 "Deadly" Waste
5S
Measure / Design
1st Discipline cont.
2. Measure the Problem
3rd Discipline - Root Cause
Description
3. Root Cause Analysis
Decide How To
Exploit Constraint
DO
5th Discipline - Permanent CA Plan
4. Plan and Implement
Improvement
Subordinate Everthing
To The Above
CHECK
ACT
6th Discipline - Verify Effectiveness
7th Discipline - Prevent Recurrence
5. Evaluate effectiveness
6. Standardize & Control
Elevate Constraint
Analyze / Design
Improve and
verify effectivess
Improve / Optimize
Establish controls
Control / Validate
7. Realize & Reflect
8th Discipline - Congratulate Team
Many Choices To Traditional Approaches, All Essentially The Same
April 2006
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FJA-301-06
Drawbacks to the Traditional Approaches
Why Can’t You…
 Leverage existing people/practices
 Have management lead and train their employees
 Deploy in all areas at once, with focus on key problems
 Use your existing infrastructure
 Reduce problem solving cycles
 Generate results beyond traditional expectations
 Transform management and staff behaviors
Many Of The Drawbacks To 6s, Lean, etc Are Attributable To The
Overemphasis Given To Sophisticated, Rarely Used Tools.
April 2006
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FJA-301-06
Responding to Industry’s Needs
The Evolution of Performance Excellence (PE)
Measures Of Success & Deployment
Criteria
Traditional PE Methods
BBPE
80~160 hours
8-12 hours
External Experts
Managers and Leaders
Low – stays with a few experts
High – deploys across an
enterprise
Project Cycle time
4-6 months
4- 6 weeks
Program Scalability
Few “Experts”
Enterprise-wide
Training time
Trainers
Org. Knowledge Transfer
Types of
Defects/Symptoms
Addressed
6s - Process Variability
• Lean – Process Waste
TOC – Process Inflexibility
•
•
BBPE draws best practices from
all PE methodologies
This Evolution From Contemporary Tools To Progressive Behavior
Change Is Achieving Greater Results In Shorter Time In All Areas
April 2006
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FJA-301-06
What is Behavior-Based Performance
Excellence?
The BBPE methodology contains two key
components:
• Process Management: Changes leadership and
management practice behaviors
• Process Improvement: Changes problem
solving behaviors
April 2006
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FJA-301-06
The Behavior-Based Performance
Excellence Model
Document and
Benchmark
Process, Metrics
& Objectives
Behavior-Based
Process
Improvement
April 2006
Process
Management
Activities
Identify Key Process
Leverage Points
Process
Improvement
Activities
Review Performance
And Identify
Opportunities
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Combining Process Creation and
Process Improvement
FJA-301-06
Select
Yes
Significantly
New Feature /
Process
Design/Develop
New
Process/Product
No
Improve Existing
Process/Product
Yes
More
Improvement
Needed?
No
Monitor
April 2006
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FJA-301-06
Behavior-Based Process Creation
Steps
Deliverables
Select Problem
Measure Problem Solving
Behavior…
Define and Contain the
Problem
Measure the Problem
… Through Key
Deliverables …
Root Cause Analysis
Implement and Assess
Solution
Control and Standardize
Solution
April 2006
… At Every Step
Tools
Typically Requires
Only Basic Tools
Such As
 Run Charts,

Pareto Charts,

5-Why Analysis,

Basic Stat,

Simple DOE,

etc
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FJA-301-06
Behavior-Based Process Improvement
Steps
Deliverables
Select Problem
Measure Problem Solving
Behavior…
Define and Contain the
Problem
Measure the Problem
… Through Key
Deliverables …
Root Cause Analysis
Implement and Assess
Solution
Control and Standardize
Solution
April 2006
… At Every Step
Tools
Typically Requires
Only Basic Tools
Such As
 Run Charts,

Pareto Charts,

5-Why Analysis,

Value Stream,

Risk Analysis,

etc
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FJA-301-06
BBPE Optimizes Cost, Time, Effectiveness
and Development
Better
Leadership / Organizational
Development
Low
PDCA
High
7-Step
Behavior-Based
Performance
Excellence
Training
Better
8D
Traditional
Green Belt
Six Sigma
Training
Training
Cost
Traditional
Lean
Manufacturing
Training
Business
Process
Reengineering
High
Short
(weeks)
Cycle
Time
TOC
Traditional
Black Belt
Six Sigma
Training
Long
(months)
Low
Problem Solving Effectiveness
High
Better
April 2006
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Better
Low
FJA-301-06
BBPE Is Highly Effective
• Works Across the Enterprise
• Employees, Managers, Leaders all follow the same methodology
• BBPE permanently changes behavior and the way staff do their
jobs each day
• Eliminates process waste and reduces variability
• Solves problems for the “last” time
• Identifies and develops future leaders
BBPE Is Based On An Integration Of Best Practices From Leading
Process Excellence Methods
April 2006
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FJA-301-06
BBPE Enables More Rapid Leadership
and Organizational Development
BBPE Supports Organizational
Transformation and Leadership
Development:
Skills And Traits Of
Successful Leaders Include:
Open minded, willing and able to
change

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Data driven, process oriented

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Customer focused

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Must be able to teach, then learn,
then teach and be an effective
coach
 Consistently
behaviors


models winning

April 2006
Facilitates top-down and bottom-up
change across the organization
Identifies and develops the next
generation of leaders
Compliments other leadership
development programs
Leaders serve as the problem solving
experts capable of leading and training
their own team
Problem solving behaviors demonstrated
as part of their normal work activity
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FJA-301-06
FJ&A Experience Deploying
Performance Excellence
Many leading Fortune 100 and 500 Companies including:
Lexar Media
Cisco Systems
Extreme Networks
GMAC Mortgage
Ingram Micro Logistics
Lawrence Livermore Lab
Sony Pictures
Cholestech
Lockheed Martin
Seagate Technology
Solectron Corporation
SonyBMG, USA
Arvato Services, Inc.
PeopleSoft
Intuit
SonyBMG, International
High Tech, Software, Medical, Finance, Defense, Entertainment, Manufacturing
April 2006
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BBPE Success Stories – Achieving
Results in 6-8 Wks , by Regular
Staff as Part of Their Normal Work

FJA-301-06
Improved Customer Fulfillment to 99.7% from 89%
– Conventional Wisdom: Most orders arriving were incomplete
– FJ&A approach showed missing information not an issue; equipment and
timeliness of information were the major obstacles

Reduced Cycle Time Avg, Variability & WIP 50%
– Conventional Wisdom: Testing equipment was a bottleneck, needed to purchase
more equipment and hire more people
– FJ&A approach showed test equipment idle ~50% of the time; upstream product
grouping and synchronization were the primary issues

Reduced Complaint Mean Time To Resolution (MTTR) by 50%
–
–

Conventional Wisdom: People not working hard enough or competent
FJ&A approach showed no clear operational definitions for prioritizing, navigating
and escalating issues
Business Goal Returns Rate of < 12% from 19%
– Conventional Wisdom: Industry is too unpredictable to manage shipments
– FJ&A approach showed initial shipment sell-off highly variable but initial ship
eventually consumed, and reshipments recreated exposure and very predictable
April 2006
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FJA-301-06
Thank You!
FULLER, JONES & ASSOCIATES, INC.
www.fullerjonesassociates.com
4000 Pimlico Drive, Suite 114
Pleasanton, CA 94588
Tel: 866-479-4979
Fax: 925-931-0136
Dr. Howard T. Fuller
hfuller@fullerjonesassociates.com
Direct: 925-413-2255
April 2006
Andrew M. Jones, MBA
ajones@fullerjonesassociates.com
Direct: 925-922-1225
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FJA-301-06
Background
Dr. Howard T. Fuller:
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Corporate VP of Quality & Reliability – SanDisk
Corporate VP of Quality & Functional Excellence – Solectron Corporation
Corporate Director of Design For Six Sigma – Seagate Technology
Manager, Process Improvement – LifeScan, a Johnson & Johnson Co.
Adjunct Professor at San Jose State University ISE
Ph.D. in Quality Engineering, M.S. in Math/Statistics
Published over 25 papers in leading journals
Andrew M. Jones, MBA:
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April 2006
Director, Process Excellence - Intuit
Director, Performance Improvement Office – GMAC Mortgage
Sr. Manager, Business Process Development Group - Cisco
Consultant, Reengineering & Change Management Office – Sony Pictures
Sr. Examiner, Baldrige National Quality Program
Six Sigma Program Manager, Master Black Belt
MBA, International Business
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