operational excellence series iii continues improvement deployement
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OPERATIONAL EXCELLENCE SERIESCONTINUOUS IMPROVEMENTDEPLOYMENT
Operational excellence Series is an informative set of documents prepared by Simple and Pragmatic Consultancy
CONTINUOUS IMPROVEMENTDEPLOYMENT
In the previous chapter ofour OPEX approach, weemphasized theimportance of continuousimprovement. In thischapter we will go deeperin CI and study how todeploy it successfully.
The deployment of continuous improvement is asignificant step that organizations can take to becomemore competitive.
To ensure the longterm sustainability of CI,companies need to analyze and accept itsstrengths and weaknesses and properlyutilize chosen methods, principles,concepts and tools.
EFFICIENCY & EFFECTIVENESSAND FLEXIBILITY
The deployment of continuous improvement is a significantstep that organizations can take to become morecompetitive.
To ensure the longterm sustainability of CI,companies need to analyze and accept itsstrengths and weaknesses and properlyutilize chosen methods, principles,concepts and tools.
INITIALCONDITIONSREVIEW
Before any CI deployment, initial conditions like company culture,sector of activity, challengers/leaders,business results, competitors,customers as well as previous deployment fails and success, managers vision & involvements should be identified.
Then deployment method should be choosen in order to :Transform vision in strategy and strategy in long terms goals, Conduct change management, with strong management support, Succeed in enterprise transformation and process improvement,Problem solving& cost reduction.
CI DEPLOYMENT ALIGNMENTWITH STRATEGY
CI objective cascading company strategy 5 years to 1 year
B U I L D I N G T H E C IO B J E C T I V E S P L A N
Top down objectives
Organizational objectivesmust drive CI actions,such as Six Sigma projectsCI projects should bealigned and prioritizedaccording toorganizational objectives
Six Sigma specialistsshould support theexecution of strategy
Bottom up opportunities
CI professionals, such asLSS black belts, coulddevelop customersurveys, testquestionnaires, gathercustomer data, analyzedata and establish focusgroup to name a fewactivities
Best practicessharing
5S,VM,VSM primer,Kaizen eventsobjectives shouldprovide a strong CIdynamic and shouldalso be part of annualobjectives
While CI professionals are traditionally known for demonstrating costsavings, they also should be regarded as those thru who strategy is
executed.
CI AND LSS DEPLOYMENTMETRICS AND FOLLOW UP
It is critical to follow up CI deployments and LSS projects with SMART metrics.In order to see how company evaluate, it is necessary to build up data andperformance driven management culture to measure Organizational, Processand LSS performances
DEPLOYMENT METHODCHOICE
According to company strategy andorganizational readiness , we should choosedeployment method and its scale, whether itconcerns entire organization, department,section.
Organizational readiness is related thecurrent culture, past experiences,management team and stability.
Remember that there is no “right model”.However there are four models ofdeployment to the organization’s situation.
Enterprise wide (traditional model) Reduced perimeter/department (scalablemodel)Targeted (problem solving model)Grass roots (bottom up model)
DEPLOYMENT MODELSDEPLOYMENT MODELS
Enterprise widemodel
Top down drivenComprehensiveMajor culture changeRapid, highly visibledeployment
Long to develop butlasting culture changeScale savings and globalinvolvement over timeSolid leadership fromthe top management isessentialCostly : Largeinfrastructure and fulltime staffCastes syndrome riskDeviation from primaryfunctions risk
Reducedparameters/Department model
Department leadership butenterprise management supportDepartment pilot for enterpriseComprehensive at the departmentlevelLocal culture change
Similar to enterprise scale but on asmaller scaleEasier to start due to smaller scaleSlower pace is possible; scale upafter initial successLess integration with otherfunctions and managementssystemsRisk of developing CI culturemisunderstandingRisk of not getting beyond thedepartment level
Targeted model
Top managementleadershipFocused in a few specificbusiness problemsDriven by a desire forstrategic impact Culture change nit adeployment objective
Easy to get startedCan work in smallerorganizationsQuick results because ofproblems are identifiedahead of timeInfrastructure needs aresmall; use contractedresources Risk of not sustaining thegains as soon as thecontracted resourcesdepartFew CI culture blossom
Grass Roots model
Originates at the bottom ofthe organizationHighly motivatedindividuals lead the effortProject or problem specificCulture change not anobjective
Easy to doTrack record forsustainable improvementis not goodFew if any infrastructureneedsBig success can lead tousing other deploymentmodelsDifficult to spread to otherperimetersRisk of concurrentinitiatives
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DEPLOYMENT SUPPORTINFRASTRUCTURE
In order to meet deployment support needs,we need to build a strong infrastructure on
three pillars ; Projects, People, Training
Projects
Project idea and charterdevelopment processProject financial validationprocessProject selection processAudit results processProject database
People
Selection processCertification processDevelopment plansRewards and recognitionOrganizational structureEngagement
Training
Lean SigmaStatistical softwareTools and templates
COMMUNICATIONNEEDS
Building an effectivecommunication is highly
important for CIdeployment , as employeeawareness has a critical
role for success.Projects are effective onlywhen the organization asa whole understands the
need and their scopeThe approach need to be
communicated toeveryone through clear
and opencommunication
channelsMaking the employeesaware will contribute to
overcome any resistance
It is necessary to outlinethe strategies and the
goals
CI projects stakeholdersneed to have methods and
process information
Clearly define the role ofevery employee in relation
to his/her contribution
Attention to !
Lack of clear and effectivecommunication channels
Underestimating the employees'needs of information
Bottomup approach
Regularly asses the situationfrom employee’s point ofviewConduct general surveys,thematic surveys, face to faceand informal interview
IMPROVINGCOMMUNICATION
An executive with a little knowledge ofCI can be more dangerous than an
executive who admits knowing nothingabout the methodology.
.
Select the most effective channel ofcommunication
Emails, intranet, blogs, forums, video,online presentationsMagazines, newsletters, posters, CI goodies,quizGeneral meetings, operational cascadedmeetings, thru Kaizen, VSMProject events, best innovative ideasmonthly prize
Be realistic
It takes time to developeffective communicationsystemsBuilding trust among theemployees, no promise thatcannot be fulfilledCounter examples are terriblycounter productive
Here are some tips to improve communication :
GOVERNANCE &STAKEHOLDERS ROLES
Who should run the CI organizations and what do they need?
The leader of a CI organization have to be familiar with the tools andmethodologies.They should be able to look at big picture and orchestrate activities that get theright people involved doing the right things.They, also are able to ask right questions and motivate people so that projects arecompleted in timely fashion .
The CI steering must be tied to company steering thru steering committee inwhich they select candidates and projects as well as validate charters.
OPERATIONALINVOLVEMENT
Hardest part to mobilize..
Whether is the IT,marketing or any otherdepartment, resistancewill be tougher in someareas.Reasons may beorganizational, culturalor individual. Therefore,CEO and/or sponsorsshould be challenged onthese issue in order todefine the appropriateCI strategy and leverbarriers without letting unhealable scars.
Bottom-up improvementsourceSuggestion, Kaizen inputsR&D product breakthroughIT or IS breakthrough
Innovation sharing anddistributionAppropriate process shouldbe set to share fieldinnovation inside the entityand promote it to otherentities.
KPI& DEPLOYMENTMATURITY ASSESSMENT
Hardest part to mobilize..
Choosing SMART KPIs covering theglobal CI deployment progress is crucial
KPIs should be ;Specific Clear statement of what KPIexactly measureMeasurable It must be easy to comparethe actual value to objectiveAchievable It must be acceptedRelevant The KPI must give moreinsight in the performanceTime phased Value expressed in time
Remember !
Most KPIs provide aftertheevent information, these KPIsare “lagging” as they are notpreventive
When KPIs only measureprocess steps, we can becometoo reliant on them and fail tospot the potential risks
WHAT TO DO FIRST ?
When an organizationbegins a CI deployment,what should be the firststep ?
Kaizen events todemonstrate the impactof quick processimprovement?
Or Six Sigma projects,using DMAIC or DFSSroadmap, with a deepdive into sophisticatedstatistics?
Ideally, we should start with a LSS maturity assessment, – a self – evaluation of where theorganization stands. Knowing where the organizations needs to be in the futureLeaders know the current state of their business its strengths, weakness andimprovement opportunities.
LSS MATURITY ASSESSMENT
A lean six sigma maturity assessment canfollow a three phase approach;
Assess,Analyze,
Address short and log term actions
Scorecards and radar charts can be used for LSS maturity self assessmentScorecards can be completed by CI leaders and operational leaders.They usually address 12 LSS parameters
12 LEAN SIX SIGMAPARAMETERS
Leadership alignment
Leadership approach toward lean
Employee involvement
Training and education
Process capability
Approach to errors
Data driven problem solving
Methodologies of continuous
improvement
Standard work
Value stream mapping
Accounting support to Lean
5S/Housekeeping
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