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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