baxter business excellence model
TRANSCRIPT
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Baxter Business Excellence Model
Michael R. WhismanDirector, Quality
Baxter Healthcare Corporation
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Michael (Mike) R. Whisman
Ex-Army Captain (Viet Nam Era)
Over 33 Years – Healthcare Industry (Manufacturing & QA)
20 Years at Baxter
Baldrige Examiner (1997 – 2009)
Shingo Examiner (2005 – 2009)
ASQ ITEA Judge (2002 – 2009)
Chairman, ASQ Team & Workplace Excellence Forum (2008 – 2009)
BS – Management (Texas A&M)
MBA – Pepperdine Univ.
6-Sigma Black Belt
Baxter Master Black Belt
40 Years - Married – 2 Grown Kids, 1 New Grandson & Puppy
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Questions
How many are implementing models?
What kind of issues do you face?
How many believe you have to have support from the top to successfully implement?
Let’s take a look at the model we use at Baxter
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MODEL - OVERVIEWMODEL - OVERVIEW
Baxter Business Baxter Business Excellence ModelExcellence Model
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Value Streams & Key Metrics
Lean Six Sigma
Total Employee Involvement
Improvement Opportunity Identification and Prioritization
Strategic Challenges
Tool Set
Tangible, Verifiable Results
Strategic Objectives
ASSESS
ALIGN
INTEGRATE
Baxter Business Excellence ModelBaxter Business Excellence ModelComplete ViewComplete View
DFSS / DMAIC Methodology
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Value Streams & Key Metrics
Lean Six Sigma
Total Employee Involvement
Improvement Opportunity Identification and Prioritization
Strategic Challenges
6 * Kaizen ** Lean ***
Tangible, Verifiable Results
Strategic Objectives
DFSS / DMAIC Methodology
Provides focus, ensures alignment of
all employees towards common goals, time-tables and targets.
TOOLS * Six Sigma – Variation
** Kaizen – Quick Change*** Lean – Waste
Baxter Business Excellence ModelBaxter Business Excellence ModelWith PicturesWith Pictures
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Strategic Challenges and Objectives
StrategicChallenges
Operational SupplierBusinessOrganizational Competitor/Market
1. 2. 3. 4. 5.
StrategicObjectives
Note: Strategic Objectives can cover multiple Strategic Challenges
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Internal Strategic Challenges External Strategic Challenges
Customer
Key StrategicChallenges
Key StrategicObjectives
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Value Streams & Key Metrics
Lean Six Sigma
Total Employee Involvement
Improvement Opportunity Identification and Prioritization
Strategic Challenges
6 Kaizen Lean
Tangible, Verifiable Results
Strategic Objectives
DFSS / DMAIC Methodology
Map processes that support key strategic objectives and create
customer value. Include baseline on key measures and
targets for improvement; lead time, cost, quality,
yield, etc.
Baxter Business Excellence ModelBaxter Business Excellence Model
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Value Streams and Key Metrics
StrategicChallenges
Operational SupplierBusinessOrganizational Competitor/Market
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Internal Strategic Challenges External Strategic Challenges
Customer
Key StrategicChallenges
Key StrategicObjectives
Key Metrics: 1, 2 1 1, 2
Targets: A, B A A, B
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Value Streams and Key Metrics
Sales & Marketing
Manufacturing Environment, Health, &Safety
Finance
Human Resourc
es
Supply Chain
Quality & Regulato
ry
Information
Technology
Product Developm
ent
Move from departmental thinking…
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Value CreationProduct
Development Product
Manufacturing Supply
Chain
Supplier Customer
Information Technology
Finance
Human Resources
Sales & Marketing
EH&SQuality &
Regulatory
Value Streams and Key Metrics
….To process thinking driven by key metrics with customer and business excellence line-of-sight
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50 min.10 sec.
25 Min.
30 sec25 min.
30 sec.50 min
20 sec.Value Add
Non-Value Add PCT = 151.5 mins
VAT = 1.5 mins
Process Step #1 Process Step #2 Process Step #4
I50 units
Distributors
SalesData
Market Intelligence
MarketChanges
WeeklyMaterial
Shipment
Weekly Schedule
300 units
I50 units
Process Step #3
I150 units
I
Supplier
PRODUCTIONCONTROL
MRP
C/T = 30 secC/O = 1 hrUptime = 75%Yield = 60%
C/T = 30 secC/O = 2 hrUptime = 95%Yield = 80%
C/T = 20 secC/O = 2 hrUptime = 80%Yield = 70%
Example Value Stream Map
C/T = 10 secC/O = 1 hrUptime = 85%Yield = 70%
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Opportunity Identification
Value Streams & Key Metrics
Lean Six Sigma
Total Employee Involvement
Improvement Opportunity Identification and Prioritization
Strategic Challenges
6 Kaizen Lean
Tangible, Verifiable Results
Strategic Objectives
DFSS / DMAIC Methodology
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Value Stream Map: Three Primary Purposes
Value Stream 1
Value Stream 2
Value Stream 3
1. To engage the
organization in process thinking and continuous
improvement 2. To identify
improvement opportunities through process understanding
3. To manage all improvement efforts
toward meeting all key metric targets
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Value Stream 1
Quick Hit
Opportunity Identification, Prioritization and Project Selection
0-6 months future state
12 months future state
24 months future state
36 months
ideal state
ProjectKaizen
6-Sigma
Project
Project6-Sigma
6-Sigma
Quick Hit
6-SigmaKaizen
Kaizen
6-Sigma
ProjectKaizen
Project
Measure Improvements Against Key Metrics and Strategic
Objective
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Value Streams & Key Metrics
Lean Six Sigma
Total Employee Involvement
Improvement Opportunity Identification and Prioritization
Strategic Challenges
6s Kaizen Lean
Tangible, Verifiable Results
Strategic Objectives
DFSS / DMAIC Methodology
Mechanism to drive improvement. Standardized
methodology and language:
Define, Measure, Analyze, Improve,
Control.Lean Six Sigma
Toolkit.
Baxter Business Excellence ModelBaxter Business Excellence Model
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Value Analysis Value Added Activities
Activities essential to deliver product or service according to customer requirements. Three criteria:
Transforms the item or service toward completion
Customer cares (would be willing to pay for it)
Done right the first time
Non-Value Added Activities
All other activities. These activities are considered waste.
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• Overproduction • Waiting• Transportation• Excess Motion• Injuries• Inadequate procedures/methods (processing waste)• Unplanned Activities (processing waste)• Inventory• Poor Communication• Defects (not meeting customer requirements)• Variation
Baxter’s 11 WastesDefinition of Waste
Waste is anything other than the minimum amount of equipment, materials, parts, space, and worker’s time which are absolutely essential to add value to the product.
Shoichiro Toyoda - President, Toyota
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Lean Six Sigma
Value Streams & Key Metrics
Lean Six Sigma
Total Employee Involvement
Improvement Opportunity Identification and Prioritization
Strategic Challenges
6 Kaizen Lean
Tangible, Verifiable Results
Strategic Objectives
DFSS / DMAIC Methodology
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ToolsTools
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What is Lean Six Sigma (LSS)?
Lean
A focus on waste elimination, standardization, cycle time reduction, smooth process flow etc.
Six Sigma
A focus on variation reduction that impedes optimized performance.
Lean Six Sigma is a robust, data-driven approach to Lean Six Sigma is a robust, data-driven approach to improve and manage key business processes.improve and manage key business processes.
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The Methodology: DMAIC
...measure what you care about; know your measure is good...
… look for root causes; generate a prioritized list
... determine and confirm the optimal solution ...
…be sure the problem doesn’t come back...
... define the problem, clearly and related to customer...
IMPR
OV
EM
EN
TC
YC
LE
MANAGE
DEFINE
CONTROL
IMPROVE
ANALYZE
MEASURE
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The Tools: LSS Toolkit
Is/Is Not Diagram
SIPOC
Process Flow Chart
Value Stream Map
Kaizen
6S
NPV Surveys
VOC/CTQ
Kano Model
Boxplot
Dotplot
Charts
Pareto Chart
CTQ
Project Y
MSA
Gage R&R
Drilldown
Process Capability Study
Brainstorm
Fishbone
FMEA
Affinity
Multi-Voting
Scatter
Pareto Chart
Fault Tree
5 Whys
6-Sigma Tests
Takt Time
DOE
Mistake-Proofing
Standard Work
Flexible Workforce
Visual Mgt.
TPM
Level Loading
Pull/Kanban
Control Plan
Operating Procedures
Revised Process F low
Project Decom-missioning
DEFINE MEASURE ANALYZE IMPROVE CONTROL
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Value Streams & Key Metrics
Lean Six Sigma
Total Employee Involvement
Improvement Opportunity Identification and Prioritization
Strategic Challenges
6 Kaizen Lean
Tangible, Verifiable Results
Strategic Objectives
DFSS / DMAIC Methodology
Allocation of the appropriate resources
and engagement of the entire
organization.
Baxter Business Excellence ModelBaxter Business Excellence Model
Achievement of results directly supporting the organization’s
strategic objectives.
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Business Excellence ModelBusiness Excellence ModelAlign - Integrate - AssessAlign - Integrate - Assess
Value Streams & Key Metrics
Lean Six Sigma
Total Employee Involvement
Opportunity Identification, Prioritization, and Project Selection
Strategic Challenges
6 Kaizen Lean
Tangible, Verifiable Results
Strategic Objectives
ASSESS
ALIGN
INTEGRATE
DFSS / DMAIC Methodology
Assess progress toward goals.
Refine based upon results and changes
to strategic challenges and
strategic objectives.
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MODEL - DEPLOYMENTMODEL - DEPLOYMENT
Baxter EffortsBaxter Efforts25+ Years25+ Years
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Questions
How many have tried to implement a business model in your company and were successful right out of the gate?
How many have tried to implement a business model and slammed full on into cultural issues: We’re different Tried it before and failed That stuff won’t work here
How many have actually made some inroads with employees, only to see stubborn leaders kill the motivation?
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Deployment Resources & Brief History
Initiated QLP in mid-80’s – World-wide Deployment QLP Sr. VP reporting to CEO – Millions in Funding 64 Full time Director/Coaches to deploy program All Leaders sent to Crosby School in Florida
Issues Deployment to manufacturing world-wide. Division Leaders
made an effort. Merger of Baxter and American Hospital Did not include Technical Areas (i.e. R&D, IT, Finance, etc.)
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Model History
Initiated QLP (Total Quality) in mid-80’s – World-wide Deployment QLP Sr. VP reporting to CEO – Millions in Funding 64 Full time Director/Coaches to deploy program All Leaders sent to Crosby School in Florida
Initiated Baldrige Approach (1989) – Global intent Deployment to manufacturing world-wide. Some Division
Leaders were successful. Four Full-time VP’s, an award office of staff & 200+ Examiners Leaders asked “QLP or Baldrige, which one?
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Model History
Some Key Plants Initiated Shingo (2000) Success - Manufacturing Plant Level Not much interest elsewhere
Merged Shingo with Baldrige Approach (2005 – Present) Builds on everything we learned thus far Leaders at Many Levels of the Organization Interested Lost enough, we are starting over in many areas Manufacturing Plants – still generally the best examples Great efforts being made in Quality Organizations
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Model History
Lean (2002) Success in Some Manufacturing Plants One Key Leader
Business Excellence (2002) One Sr. VP reporting to Corp. Quality VP Eleven Person Corporate Group – Five Guru’s with five
coaches in training. Strongest Support in Manufacturing & Quality IT, Finance, Supply Chain, & a Division are Developing
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Pitfalls We Experienced
QLP - Not Training Everyone at Once Baldrige Model – Placing it in competition with QLP Seeing LEAN, Six Sigma, Kaizen, etc. as Models Succession Planning – Failure to consider culture/style Reduction in Organizational Resources Decentralization Program not reporting to the top
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What We Did Right
Stuck With IT – Saved Millions, Developed & Maintained a Core Competence in Manufacturing
Merged it all Together QLP – Culture Baldrige/Shingo Model – Fits Partial & Complete Organizations 6-Sigma/Lean/Kaizen/Etc. as Tools
Implementation Anywhere There is Interest Using Examples of Success to Tempt Leaders Practicing What We Preach Baxter is Charging for Success
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