Getting Things Done w/ SBF:
SBF
100%
1
Let’s band together for
afety, uality, peed of Execution
2
SetUp
What are some other models?
SetUp
Mine’s
Best !
To name a few (hundred) …
3 C’s ADL Matrix Acquisitions Integration Approaches Blue Ocean
Strategy Capability Maturity Model GE-McKinsey Matrix OODA Loop
Profit Pools Resource-based View of Firm Scenario Planning
Strategy Maps Application Portfolio Optimization Value Stream
Mapping Six Thinking Hats 4 P’s Marketing Mix 7 P’s Marketing Mix
6 Change Approaches Cultural Dimensions Theory Six Sigma Quality
Management Change Management Iceberg Organizational Learning
Performance Prism Crossing the Chasm . . .
What are some other models?
SetUp
Set-Up
S
Other models for SAFETY(Environment and Health)?
“ . . . we set the tone, we create an environment of
psychological safety.
Where there are no stupid questions, where we have an
obligation to speak up if we see something's not being
addressed, where we create a shared sense of responsibility
for the outcome.
It's not about who's right,
.”
SOURCE: 5 Questions: Capt. Chesley 'Sully' Sullenberger, Sept 2012,
STANFORD U. interview/article
http://med.stanford.edu/ism/2012/september/5q-sully-0910.html
Other models for QUALITY (Betterment)?
Set-Up
B
Management Matters
-McKinsey Study (n = 4000)
Further analytical detail available at:
http://cep.lse.ac.uk/management
… looked at shop floor operations; performance management;
and talent management
… findings confirm our belief that
provides the key to
improved management performance: there is no magic lever for
management excellence. (Average score across all 18 dimensions
provides the most accurate indicator.)
… Multinational companies have been forced to take a systematic approach
to management. Only by having strong, effective management practices
in place have they been able to replicate the same standards of
performance across different regions, cultures and markets.
Set-Up
F
Other models for SPEED of Execution(Faster)?
Published by Velaction, 2009
“Whadda Ya Mean I Gotta Be Lean?”
-Jeff Hajek
Jeff with the ‘jaybird’
http://www.velaction.com/velaction-continuous-improvement/lean-consultant-jeff-hajek/
Intro
We’re in the Strategy Box
VOC
• What customers
want
Strategy
• What your company
wants to do
VSM
• How your company
wants to do things
Metrics (CTQ)
• How your company
measures things
Intro
Safer, Better, Faster
Voice of Customer (VOC)
[effectiveness]
Voice of Business (VOB)
[efficiency]
H. S. & E.
Safety
Quality
Yield
On-Time
Cycle-time
Value
Cost (COGS, COS et al)
“Operational Excellence is when the efforts throughout the organization are in a
state of alignment for achieving its strategies and where the corporate culture is
committed to the continuous and deliberate improvement of company performance
AND the circumstances of those who work there – to pursue ‘Operational
Excellence by DesignSM’ and not by coincidence.” – Joseph F Paris Jr
Intro
Define KPOV (Customer-based)
Effectiveness measures look at your process outcomes from the
eyes of the customer!
• How closely are we meeting their needs and requirements?
• What defects have they received?
• How satisfied and loyal have they become, based on our performance?
i.e. - How does the auto industry
measure effectiveness?
Automotive Performance, Execution,
And Layout (APEAL): how much
consumers like or dislike the way their
vehicle looks, drives, and feels!
Initial Quality Study (IQS): problems
consumers report with their new
vehicles during the first 3 months of
ownership!
Customer Satisfaction Index (CSI):
Measure of dealer customer service!
Intro
Intro
Common Effectiveness Measures
•
•
•
•
Defects Per Unit
Customer Percent Defective
On Time Delivery
Customer Satisfaction
Intro
Safer, Better, Faster
Voice of Customer (VOC)
[effectiveness]
Voice of Business (VOB)
[efficiency]
H. S. & E.
Safety
Quality
Yield
On-Time
Cycle-time
Value
Cost (COGS, COS)
“Operational Excellence is when the efforts throughout the organization are in a
state of alignment for achieving its strategies and where the corporate culture is
committed to the continuous and deliberate improvement of company performance
AND the circumstances of those who work there – to pursue ‘Operational
Excellence by DesignSM’ and not by coincidence.” – Joseph F Paris Jr
Intro
Define KPOV (Process-based)
Efficiency measures look at how your process performs in the
eyes of the business!
• What is our process cycle time?
• What is our process yield?
• How cost effective are we at meeting customer requirements?
i.e. - How does the auto industry
measure efficiency?
Assembly Time / Vehicle
Defects Per Million Opportunities
First Pass Yield
Gross Margins
Labor / materials cost / unit
Intro
Intro
Common Efficiency Measures
• Process Cycle Time
• Cost of Poor Quality (COPQ)
• Resources expended per unit of output
• Percentage of time value-added
• Rolled Throughput (“First-pass”) Yield
Each process and sub-process should have two efficiency
requirements established:
• a ratio of input-to-output value (i.e. cost per P.O. processed, process yield)
• a measurement of cycle time (i.e. hours to process a P.O.)
Topics
eople
$afety Pays
Expand EH&S
Mistake-Proof It!
rocess
“I believe!” “I believe!”
– top person proclaims virtues of excellence…
Teams and Teamwork
T.C.S. (Total Customer Satisfaction)
roduct/ Provision of Service
Innovation
Focus on F-L-O-W
Power of Simplification
Technology [BTW: You can’t stop it!!]
Safety isn’t about a sign or
a “program”
Driving Toward 0 – report findings:
http://www.nsc.org/news_resources/Resources/Documents/Dept.%20of%20Defense%20%20Driving%20Toward%200.pdf
S
S
No Joke! Safety Pays
SOURCE:
Wall Street Journal, 6/6/2014
S
Pay Me Now or Pay Me Later…
Faulty Ignition Switch:
•
GM knew since 2004, but
failed to warn…
•
Of 303 deaths, GM
recognized 13 …
•
“None of the solutions
represents an acceptable
business case.”
– GM Manager
•
- long and grievous
tradition: the cover up …
SOURCES:
USA TODAY, 4/10/2014
Article, Ralph Nader
FORTUNE, April 2014
Article, Doron Levin
Toyota fined for ‘accelerator’ cover up: $1.2 BILLION
S
Pay Me Now or Pay Me Later…
BTW: A shipping container weighs about 30 tons !
S
Expand E. . & S.
From an organizational perspective,
it is critical to ask questions such as:
• “Is there an executive within the organization that believes
EH&S issues are important to the long term success of the
organization?” and,
• “Are they vocal in promoting the need for an EH&S program
both internally and externally?”
To enable real change in the culture, an organization needs to
have a long-term vision of
, plant
and
, and therefore needs to appoint
an executive to effectively champion this vision.
http://www.environmentalleader.com/2010/09/20/how-top-companies-execute-environmental-healthsafety-programs/
S
Expand E.H. & S.
U.S. Court Upholds Ruling Against
SeaWorld in Death by Killer Whale Case
•
In a 2-1 decision, the appeals court said SeaWorld's challenge to the finding was
unpersuasive and that the Occupational Safety and Health Review Commission
was correct when it found that the SeaWorld park in Orlando, Fla., had violated a
federal workplace safety law.
•
The court said SeaWorld had exposed trainers to recognized hazards when working
in close contact with killer whales during performances.
•
In its arguments to the federal government, SeaWorld said the finding that it
exposed its employees to a recognized hazard is unsupported by substantial
evidence. The company contended that when some risk is inherent in a business
activity, the risk cannot constitute a recognized hazard.
— The Associated Press
First published April 11 2014, 2:44 PM
S
Expand E.H. & S.
http://news.walmart.com/news-archive/2014/04/29/walmart-convenes-key-partners-at-firstever-sustainable-product-expo-to-accelerate-supply-chain-innovation
S
Expand .H. & S.
• Together with Procter & Gamble, Walmart announced a commitment to
a
for all liquid laundry detergent.
• In the area of fertilizer management, Walmart last year set a goal of
optimizing 14 million acres of farmland with the potential to
. Combined with progress already
made, the new pledges announced today will help advance that goal by
optimizing an estimated 10 million acres and eliminating 8.5 million
metric tons of GHGs.
• Working with Cargill, Walmart is developing a small-scale pilot focused
on improved beef supply chain visibility, including increased traceability
elements resulting in more visibility from farm to fork. This is part of
Walmart’s goal to
by 2023.
• In collaboration with Conservation International and suppliers, Walmart
has
palm oil.
http://news.walmart.com/news-archive/2014/04/29/walmart-convenes-key-partners-at-firstever-sustainable-product-expo-to-accelerate-supply-chain-innovation
S
Expand .H. & S.
1.
How will we do business if our critical systems—manufacturing,
storage, electronics and distribution—are rendered inoperable?
2.
How can we resume operations quickly following a business disruption,
and what will we need to do so?
3.
Are there any particularly vulnerable aspects to our business that we
can eliminate as opposed to harden?
4.
What are the pieces of our business that are so critical that a major
investment in hardening or redundancy would be justified?
5. Despite taking many proper precautions, are we still vulnerable to
disruption due to outmoded infrastructure in the region?
SOURCE: Disaster-Proofing Your Supply Chain
http://www.industryweek.com/supplier-relationships/disaster-proofing-your-supply-chain-5-question-checklistexecs?utm_campaign=Social%20Media%20Leads%20FY2014&utm_content=5796081&utm_medium=social&utm
_source=twitter
S
Expand . . & S.
Stevedoring
example
S
Winning!
INLAND/COASTAL/LAKE SHIP OPERATOR OF THE YEAR – Sponsored by Class NK
Winner - Kirby Corporation
SHIPYARD OF THE YEAR – Sponsored by ABS
Winner- NASSCO
Get on a LIST !!
MARINE CASUALTY RESPONSE AWARD
Darn it !!
Winner - Titan
(I don’t care what list…)
MARITIME SERVICES AWARD
Winner - Dr. Lee Alexander, Center for Coastal and Ocean Mapping Chase Ocean
Engineering Lab, University of New Hampshire
TRAINING AWARD
Winner - British Columbia Ferry Services Inc. with Bridge Team Simulation Team
S
Winning!
OFFSHORE SHIP OPERATOR OF THE YEAR – Sponsored by Liberian Registry
Winner - Seacor Marine
PORT OPERATOR OF THE YEAR
Winner - Port of New Orleans
Get on a LIST !!
ENVIRONMENT AWARD – Sponsored by Svitzer
Darn it !!
Winner (joint)
(I don’t care what list…)
- Fednav
- North American Marine Environment Protection Association (NAMEPA)
CRUISE/PASSENGER OPERATOR OF THE YEAR
Winner - Royal Caribbean Cruises
SAFETY AWARD – Sponsored by Inmarsat
Winner - Maersk Line
https://ibiawards.com/north-america/winners/
S
Top Ten Environmental Firms
1
2
3
4
5
6
7
8
9
10
CH2M HILL Ltd., Englewood, Colo.
URS Corp., New York, N.Y.
Veolia Environment North America, Chicago, Ill.
Tetra Tech Inc., Pasadena, Calif.
Bechtel Corp., San Francisco, Calif.
Energy Solutions Inc., Salt Lake City, Utah
AECOM Technology Corp., New York, N.Y.
MWH Global, Broomfield, Colo.
Golder Associates Corp., Mississauga, Ontario, Canada
Clean Harbors Inc., Norwell, Mass.
http://enr.construction.com/toplists/Top-Environmental-Firms/001-100.asp
S
Expand .H. & S.
S
Expand E. . & S.
Move it !!!
• One of the greatest challenges in any office
environment is that people are
. Stevens
advocates doing whatever you can to get people up out
of their chairs and moving. For example, it’s not
uncommon for LinkedIn managers
around the Mountain View campus.
• Even
can make
a difference in your health.
• Companies like Facebook are even experimenting with
. There’s nothing like contributing to the
bottom line while burning calories at the same time!
http://www.foxbusiness.com/personal-finance/2013/11/04/making-health-fun-and-social-affair/
S
Expand E. . & .
S
Expand E.H. & . (20 Questions)
1Do you have a corporate social responsibility program?
2 Do you have staff dedicated to CSR?
3 Do you have a corporate sustainability program?
http://www.ishn.com/articles/1004 Do you have staff dedicated to sustainability?
committed-companies
5 Are you a member of VPP?
6 Are you OHSAS 18001 certified?
7 Are you ISO 14001 certified?
8 Do you operate a formal, documented S&H management system?
9 Is your recordable OSHA injury-illness rate better than your industry average?
10 Have you had an OSHA inspection triggered by an employee complaint in the past 3
years?
11 Have you had an OSHA inspection triggered by a fatality or multiple injury incident in the
past 3 years?
12 Do each of your employees receive more than 24 hours of safety training per year?
13 Is the ratio of your S&H full-time professional staff at least 1 to every 200 employees?
14 Do you have a formal health promotion program to boost employee overall health?
15 Do you have a formal off-the-job safety program for employees?
16 Does your S&H full-time professional staff have more than 20 years experience
combined?
17 Does the majority of your S&H full-time professional staff have CIH or CSP certifications?
18 Are the annual salary increases of your managers and supervisors in part linked to S&H
performance?
19 Do you conduct annual S&H perception surveys of employees?
20 Do you have a formal ergonomics program?
S
Expand E.H. & . (20 Questions)
1Do you have a corporate social responsibility program?
2 Do you have staff dedicated to CSR?
3 Do you have a corporate sustainability program?
4 Do you have staff dedicated to sustainability?
5 Are you a member of VPP?
6 Are you OHSAS 18001 certified?
7 Are you ISO 14001 certified?
8 Do you operate a formal, documented S&H management system?
9 Is your recordable OSHA injury-illness rate better than your industry average?
10 Have you had an OSHA inspection triggered by an employee complaint in the past 3
years?
11 Have you had an OSHA inspection triggered by a fatality or multiple injury incident in the
past 3 years?
12 Do each of your employees receive more than 24 hours of safety training per year?
13 Is the ratio of your S&H full-time professional staff at least 1 to every 200 employees?
14 Do you have a formal health promotion program to boost employee overall health?
15 Do you have a formal off-the-job safety program for employees?
16 Does your S&H full-time professional staff have more than 20 years experience
combined?
17 Does the majority of your S&H full-time professional staff have CIH or CSP certifications?
18 Are the annual salary increases of your managers and supervisors in part linked to S&H
performance?
19 Do you conduct annual S&H perception surveys of employees?
20 Do you have a formal ergonomics program?
S
Expand E. . & .
Implement
Standardized Work
use photos, simple
diagrams, and plain text
to make work
instructions and present
them in a very clear
manner
S
Mistake Proof It!
• “Poka-Yoke” (English translation)
– Yokeru: to avoid
– Baka: inadvertent errors
Target of Zero Defects and
elimination of QC Inspection
Dr. Shigeo Shingo, circa
1986 (Toyota Motors)
attributed with
developing the
methods…
S
Danger!! Will Robinson DANGER!!
S
Mistake Proof It!
Predict Defect
Eliminate
Defect
(about to occur)
(negate possibility)
Detect Defect
(occurred)
• Shutdown Process
• Control Process
• Warn Operator
• Shutdown Process
• Control Flow
• Warn Operator
“With the addition of mistake control, Motorola was able to achieve
nonconformity rates in the tens of parts per million.”
SOURCE: “Variation, Mistakes and Complexity” Hinkley and Barkan [Sandia Labs, Stanford Univ.]
Journal of Quality Technology, Vol. 27, No.3, July 1995
S
Mistake Proof It! (Shut Down)
S
Mistake Proof It! (Control)
S
Mistake Proof It! (Warning)
S
Mistake Proof It!
• City Trader buys $1000000000 worth of shares
instead of $10,000,000.00!
• Accounts Payable pays supplier twice
• Failure to invoice customer for services provided
• Miscalculation in currency exchange
• Your experiences……..?
S
Excellence !! (um…Not So Much)
B
Ah – Excellence !!
B
Ah – Excellence !!
Leadership Behaviors that create…
– Lead with honesty, integrity, and respect
– Listen more and speak less
– Sometimes you win and sometimes you lose
– Consistent behavior is key
– Always look to Improve
– Recognize and reward
http://blog.kainexus.com/continuous-improvement-leadership-behaviors-blog-series
B
Ah – Excellence !!
According to Aberdeen Group benchmark
report "BPM and Beyond: The Human Factor of
Process Management," Best-in-Class companies work
to build an information culture around BPM usage.
B
Ah – Excellence !!
In order to improve operational processes and drive down costs,
business owners and managers are now looking for employees who
can regularly apply BPM tools to their work.
B
Ah – Excellence !!
Guess What? Advanced Supply Chain
Capabilities Improve Company Financials
•
Jennifer Baljko, Freelance writer
5/15/2014
One of the key ways leaders stay financially strong and on the cutting edge is by
embracing innovation, Deloitte found. While that includes being open to things
like
and
, there's more to it
that. Innovation is also about learning how to use emerging and disruptive
technologies, such as
, to
along with innovating the
and
.
http://www.ebnonline.com/author.asp?section_id=1061&doc_id=273266
B
Ah – Excellence !!
Some questions for you …
Process Excellence: Achieve Superior Results
http://www.rpesolutions.com/RPE_White_Paper_Process_Excellence.pdf
B
Lean Six Sigma – An Industry Standard
B
Total Customer Satisfaction
The only strategy I know of which provides
equally balanced focus on all five major areas of
differentiation is total customer satisfaction, as
the fundamental objective of the company.
Bob Galvin, when Chairman of Motorola, summed
it up by saying, ‘If you take care of the customer
better than any of your competition, the business
will take care of itself.’
B
Total Customer Satisfaction – Don Fitchett
• Like in the past or currently, reaching "Process Excellence"
may be KPIs high enough, you have a lean production process,
etc. But at that point you think you reached it, if done right,
the goal line should have moved, the bar set higher. Once you
are there, you should be looking at the bigger picture, the
future.
• Now the new "Process Excellence" is everyone a customer
culture, Lean to the Top, TDC, CMMS that leads - not just a
tool, automate to make time for innovation, etc. etc. Now
after looking at the bigger picture and to the future, "Process
Excellence" where everyone else is, is way behind what your
company defines as "Process Excellence" and strives for.
B
Total Customer Satisfaction
• For those who can remember 30 years or so ago, meeting the
purchasers demand, reaching production demand was
indicator of "Process Excellence", then about 20 years back is
was quality (parts per million), then Lean. Someday it will be
percentage of your employees who are managers/thinkers/
innovators/creators, and a human doing remedial mundane
tasks will be viewed as a company's shortcoming. (you don't
want to waste even one humans powerful creative and
problem solving capabilities…)
• Even further in the future it may not be the volume and
quality of products produced, but the number of products
themselves (diversity). 25 PPM or 0.0025% may be an
accepted standard, a company's operational excellence may
be judged by social and civic involvement and improvements.
B
Total Customer Satisfaction
Total Customer Experience
• H.E.B.
• Trader Joe’s
• Chick-fil-A
• Publix
• Aidi
• Food Lion
Get on a LIST !!
• Sonic Drive-In
Darn it !!
• A credit union
(I don’t care what list…)
• Diary Queen
• Kroger
• Piggly Wiggly
• Regions
• Sam’s Club
• Starbucks
• Albertsons
• Amazon.com
http://www.dmnews.com/the-best-and-worst-companies-for-customer-experience/article/336999/
B
Teams & Teamwork
Common reasons that
warrant team building:
• To observe the team dynamics of
a particular group.
• To identify possible leaders and
people with natural creativity and
problem solving ability.
• To improve motivation and
productivity
• To develop soft skills
• Simply for fun
http://blandfordmanor.com/the-pros-andcons-of-team-building/
B
Teams & Teamwork
… among the teams at work in Flextronics'
Improvement Idea Hub was one dedicated to
reducing lead times in setting up new customers.
(Meanwhile, it is also hard to miss the 80-foot-long
value stream map sprawling across a far wall.)
http://www.industryweek.com/iw-best-plants/2013-iw-bestplants-winner-flextronics-partner-manufacturing-excellence
B
• Thermo Fisher employs a continuous
improvement methodology called Practical
Process Improvement (PPI) that is focused
on improving safety, material flow and lead
time.
• Plant leaders and employees suggest
projects for improvement.
• The facility completes about 80 to100
kaizen events per year, says Tim Hamel, who
manages PPI, as well as another 2,000 solo
projects done by employees.
http://www.industryweek.com/quality/2013-iw-best-plants-winnerthermo-fisher-scientific-growing-quality-culture-lab
F
Innovation
Incandescent
Florescent
L.E.D.
F
Innovation (Organizations)
http://www.forbes.com/innovative-companies/list/
http://creativebits.org/interview/interview_rob_janoff_designer_apple_logo
F
Innovation (Are You Prepared for Failure?)
F
Innovation (Products)
“Folding”
Speed Bump
Air Knife (Dyson Hand Dryer)
Aide to
Water
House
Plants
F
Innovation (Products)
Bike Blinkers
Self Stirring Mug
Heated
Knife
http://wonderfulengineering.com/30-innovativeproducts-you-did-not-know-exist-but-are-tooawesome-to-miss/
3-in-1 “Breakfast Maker”
F
Innovation (Service)
Checkout Beacon – NYC’s new phone (communications) system
http://fivewhys.wordpress.com/2013/09/11/service-innovation-examples/
F
Innovation (Service)
Netflix
Netflix was offered to Blockbuster for $50 million in 2000, but Blockbuster declined.
F
Innovation (Service)
“… it leapfrogged rivals in speed, security, and capabilities …”
THE DAWN OF THE CHROME AGE, FORTUNE Article April 28th, 2014
F
Innovation (Strategy)
Value of Thinking in 3 Dimensions:
1) New Product / Service Innovation
2) Market Definition Innovation
3) Process/ Business Model Innovation
$4.00 Amazon
McGraw-Hill
2005
George Group
F
Innovation (Strategy)
• Map innovations delivered and planned across 3 dimensions
• Determine % revenue in each dimension
• Evaluate competitive advantages of expanding into another
dimension
• ID opportunities to extend currently planned innovations by
marrying with another dimension:
– Determine how these dimensions will make CUSTOMERS more
successful
• Estimate potential margin enhancements to sustaining
innovations by adopting Fast Innovation approaches
• Estimate potential revenue and operating profit from all new
innovation efforts
SOURCE:
Fast Innovation, page 90
F
Focus on Flow
Or – the lack thereof …
F
Focus on Flow
F
Focus on Flow
“GEMBA” - Go There
F
F
Go There
Starbucks boss-founder Howard
Schultz, despite a thousand
distractions associated with running a
huge global business, still/religiously
visits at least 25 shops per …week.
Source: Tom Peters!
(a few years ago…)
F
Simplification
2011
USDA circa 1945
2005
http://www.choosemyplate.gov/
1992
F
Simplification
2011
USDA circa 1945
2005
http://www.choosemyplate.gov/
1992
F
Simplification
Tethered Gas Cap
Gas Cap Eliminated
F
Simplification
http://www.theverge.com/2014/2/27/5452790/fda-redesigns-nutrition-labels-to-reflect-how-americans-actually-eat
F
Simple Sells
Post-it is now one of the least-expensive
inventions that's since made the company
millions, and has evolved to
different
products.
After having fun with the idea with his friends,
Gary Dahl wrote The Pet Rock Training Manual
which he packed in a box along with the rock,
with a .95 price tag - and the Pet Rock was born.
What started as some fun in April 1975 was selling
10,000 Pet Rocks a day by October, making Dahl
millions. It is estimated that the creator made
over a
during the first half year of
"production“.
F
Simple Sells
In a search for a way to capture the seafaring history of coffee and
Seattle’s strong seaport roots, there was a lot of poring over old
marine books going on.
Suddenly, there she was: a 16th century Norse woodcut of a twintailed mermaid, or Siren. There was something about her – a
seductive mystery mixed with a nautical theme that was exactly
what the founders were looking for.
A logo was designed around her, and our long relationship with the
Siren began.
Simple Sells
F
http://online.wsj.com/news/articles/SB10001424127887323301104578257873705189676
F
Simple Sells
Andy Paul is author of the awardwinning book, Zero-Time Selling:
10 Essential Steps to Accelerate
Every Company’s Sales.
… making it simpler for customers to reach a buying
decision paid dividends in three ways:
1. It increased the likelihood of repeat business. (Cue Daniel
Kahneman’s Peak End rule.)
2. A significant fraction of customers (up to 29% depending on
industry) were willing to pay more for “simpler experiences and
interactions”.
3. 75% were more likely to recommend a company that provided
simpler interactions.
F
Technology
Harley-Davidson uses automated guided carts to improve
safety, quality and throughput (speed). Investments like these
make the production process flexible.
http://www.industryweek.com/iw-best-plants/2013-iw-best-plants-winner-harley-davidson-driving-future-excellence
F
Technology
BETTERMENT at New Factory – York, Penn:
1,000 production workers now fabricate, paint and assemble
motorcycles in three process areas with a system simplified
by automated guided carts …
• 41 buildings to 2 buildings
• Production line travel: 9 MILES TO 3 MILES
• 20% more fenders produced than in years past
• 65 job classifications to 5 job classifications
F
Technology
Predictive data, the real workhorse behind the Internet of Things…
Businesses are learning that it's not enough to gather
mounds of data. The data on its own is only
marginally interesting. "Where we are today is static,"
says Vernon Turner, an IDC analyst.
• A fitness wearable, for instance, might tell users how many steps they've
walked in a day. But the device could be much more valuable if it were
linked to other health data. In that case, an app could tell the user that
lack of activity might explain higher blood pressure results.
• Or, the device could learn that the user tends to walk less on weekends
and send a reminder during a gap on her calendar to get some exercise.
http://www.computerworld.com/s/article/9248891/Predictive_data_the_real_workhorse_behind_the_Internet
_of_Things?pageNumber=1
Improvement: You Can’t Stop It
Innovation, Flow, Simplification and Technology
http://www.wired.com/2014/03/walmart-big-rig/
Conclude
eople
$afety Pays
Expand EH&S
Mistake-Proof It!
rocess
“I believe!” “I believe!”
– top person proclaims virtues of excellence…
Teams and Teamwork
T.C.S. (Total Customer Satisfaction)
roduct/ Provision of Service
Innovation
Focus on F-L-O-W
Power of Simplification
Technology [BTW: You can’t stop it!!]
Conclude
Looking Ahead
“Excellent firms don't
believe in excellence - only
in constant improvement
and constant change.”
-Tom Peters
Conclude
Safer, Better, Faster
Voice of Customer (VOC)
[effectiveness]
Voice of Business (VOB)
[efficiency]
H. S. & E.
Safety
Quality
Yield
On-Time
Cycle-time
Value
Cost (COGS, COS)
“Operational Excellence is when the efforts throughout the organization are in a
state of alignment for achieving its strategies and where the corporate culture is
committed to the continuous and deliberate improvement of company performance
AND the circumstances of those who work there – to pursue ‘Operational
Excellence by DesignSM’ and not by coincidence.” – Joseph F Paris Jr
Conclude
Safer, Better, Faster
Voice of Customer (VOC)
[effectiveness]
Voice of Business (VOB)
[efficiency]
H. S. & E.
Safety
Quality
Yield
On-Time
Cycle-time
Value
Cost (COGS, COS)
“Operational Excellence is when the efforts throughout the organization are in a
state of alignment for achieving its strategies and where the corporate culture is
committed to the continuous and deliberate improvement of company performance
AND the circumstances of those who work there – to pursue ‘Operational
Excellence by DesignSM’ and not by coincidence.” – Joseph F Paris Jr
Where to go from here…
Back to the Strategy Box
Decide
Higher Level
“5 Competitive Forces”
Strategy
http://en.wikipedia.org/wiki/Porter_five_forces_analysis
Drill - Down
“Hoshin Planning”
http://www.freeleansite.com/coaching.html
Thank You!
Questions?
“The problem is never how to get new,
innovative thoughts into your mind,
but how to get the old ones out.”
—Dee Hock
Voice Of the Customer (VOC)
Voice of the
Customer
Key Customer Issue(s)
What does the customer want from us?
What does the customer want from
us? We need to identify the issue(s)
that prevent us from satisfying our
customers.
Critical
Customer
Requirement
We should summarize key issues and
translate them into specific and
measurable requirements
Voice Of the Business (VOB)
Voice of the
Business
What does the business want/need from us?
Key Process Issue(s)
What does the business want/need
from us? We need to identify the
issue(s) that prevent us from
meeting strategic goals/missions.
Critical
Business
Requirement
We should summarize key issues and
translate them into specific and
measurable requirements