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Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data Scientist & Program Director, IBM Systems Client Advocacy; Adjunct Lecturer, San Jose State University Council on Industrial and Systems Engineering Service Systems Engineering 4.0 Sustaining Organizational Transformation through People, Process and Technology AND Ensuring Outstanding Client/Customer ExperienceChapter # 1

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Page 1: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Session Leaders

D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU

Featured Presenter

Sreekanth Ramakrishnan, Sr. Data Scientist & Program Director, IBM Systems

Client Advocacy; Adjunct Lecturer, San Jose State University

Council on Industrial

and Systems

Engineering

Service Systems Engineering 4.0

“Sustaining Organizational Transformation through People, Process

and Technology AND

Ensuring Outstanding Client/Customer Experience”

Chapter # 1

Page 2: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Agenda

12:00 Scott Tee-up

Quick Overview of Purpose and Objectives of Webinar

12:15 Sreekanth—Lessons Learned from the IBM Path Forward to

Lean Transformation Methodology

12:55 pm Scott: Closing Comments

1:00 pm Adjourn

Page 3: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

The Webinar, as advertised

In Jim Collins’ classics, Built to Last and Good to

Great, he introduces the Tyranny of the ‘OR’ and

the Power of the ‘AND’.

As organizations, yours, faces the constant and

dynamic forces of change and is challenged to

blend continuous improvement and transformation,

ensuring Superior Client/Customer Experience

while rapidly improving capabilities and

performance is an “art” and “science” that this

Webinar will address.

Page 4: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Submit your questions as we go

along and Scott will blend them in….

▪ The time for questions is

‘in the moment’…

▪ you can submit questions

as we go along…

▪ If you don’t do that, we’ll

probably run out of time for

them at the end…

▪ So the time for questions

is real time….

Page 5: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

The Design for the Series of

Webinars on Service 4.0

Webinar #1: Starters 6 Nov 2018 ( Scott Sink, Michael Caesar,

David Poirier)

High level view of The Industry 4.0 version of evolution/revolution is

impacting the Service Systems Sector

Data and Implementation Sciences in Health Care

Optimizing Enterprise Shared Services

Webinar #2: Jan 15, 2019--TODAY’S WEBINAR

Webinar #3: Feb 6, 2019—Smart Supply Chains

Webinar #4: April 2019 Best in Class Integrated LeanSigma

Certification Projects in the Service Sector

Webinar #5: June 2019—the winners of the IISE Outstanding

Innovation in Service Systems Engineering

Webinar #6: July 2019--Operational Analytics in Service

Systems (Scott Sink, Jared Frederici, and TBD)

Page 6: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Service Sector, Service

Systems

Page 7: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Systems Engineering—

most common framework

Page 8: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Service Systems

Engineering

The growth of services in the ever-evolving global economy has brought much needed attention

to service science and service systems engineering (SSE). Research focuses on developing formal

methodologies to understand enterprise-end-user (customer) interactions from both socio-economic and

technological perspectives, and to enable value co-creation and productivity improvements. Service

systems require trans-disciplinary collaborations between society, science, enterprises, and engineering.

Service transactions are customized and personalized to meet a particular customer need. This requires a

disciplined and systemic approach among stakeholders and resources to emphasize end-user satisfaction

in the design and delivery of the service (Hipel et al. 2007; Tien and Berg 2003; Vargo and Akaka 2009;

Maglio and Spohrer 2008; Maglio et al. 2010).

Page 9: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

The ISE role in Service Systems Engineering:

Digital Transformation in Healthcare

November 2018

Michael Caesar, MBA

Executive Director,

Data & Implementation Science

University Health Network

Data & Implementation ScienceKnowing, Understanding, Changing in a Digital WorldUniversity Health Network - Not for Distribution

Page 10: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Time 1800 1900 2000 Today

Physical Systems

Digital Systems

Digital-Physical Systems

Captured notes electronically,

work shifted to office

environment, nature of visits

remain unaffected Consultations via written

letter, few regulations on

data capture

Home visits, written

medication orders with

the pharmacy

FIRST INDUSTRIAL

REVOLUTION

SECOND INDUSTRIAL

REVOLUTION

THIRD INDUSTRIAL

REVOLUTION

FOURTH INDUSTRIAL

REVOLUTION

Augmented decision

making, Tele-medicine,

Remote monitoring/data

collection (IoT)…

1991 - Institute of Medicine published the

“Computer-based Patient Record: An

Essential Technology for Health Care

• Machine Learning

• Artificial Intelligence

• Robotics

• Blockchain

INDUSTRIAL REVOLUTIONS IMPACT ON THE PATIENT VISIT

Data & Implementation ScienceKnowing, Understanding, Changing in a Digital WorldUniversity Health Network - Not for Distribution

Page 11: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Enterprise

Shared Services

(ESS) 4.0

November, 2018

Page 12: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data
Page 13: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Brand New IISE

Award!!!

http://www.iise.org/Details.

aspx?id=47493

Page 14: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Agenda

12:00 Scott Tee-up

Quick Overview of Purpose and Objectives of Webinar

12:15 Sreekanth—Lessons Learned from the IBM Path Forward to

Lean Transformation Methodology

12:55 pm Scott: Closing Comments

1:00 pm Adjourn

Page 15: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

© 2012 IBM Corporation

Michael Testani, Sreekanth Ramakrishnan, Ph.D.

Path Forward to Business Transformation

IBM CHQ – HR, Talent, Waltham, MA

Best Practices in Managing Continuous Improvement Conference 2012

Sustaining Organizational Transformation through People, Process and Technology Lessons Learned from the IBM Path Forward to Lean Transformation Methodology

Page 16: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

16 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

People Factors

Major Change Challenges

Source: Making Change Work Study: Continuing The Enterprise of The Future Conversation from the IBM Global CEO Study, 2008 (n=1,532)

Most of the critical challenges to successful change involve people,

process-technology and leadership

Changing mindsets and attitudes

Technology barriers

Corporate culture

Complexity is underestimated

Shortage of resources

Lack of commitment of higher management

Lack of change know how

Lack of transparency

Lack of motivation of involved employees

Change of process

Change of IT systems

8%

35%

18%

15%

12%

58%

49%

33%

32%

20%

16%

Leadership FactorsProcess & Technology Factors

Available at : http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03100-usen-03-making-change-work.pdf; page 12

Points to the lack of explicit focus

on OrganizationalCulture

Page 17: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

17 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Business

Performance

Success

Leadership

The Path Forward Approach to Business Transformation

Learn

ing

Innovation and continuous improvement enabled through

process excellence and high performing organization culture

Transformational

Leadership

Adaptive

Culture Process

Excellence

Building Organizational

Capabilities for Business Transformation

Path Forward Change Paradigm

“Teach your associates to teach themselves and in that

way you will strengthen the entire organization” – IBM

Founder, Thomas J. Watson, Sr. 1947

Balanced Scorecard

• Customer Value

• Financial Excellence

• Process Excellence

• People Learning & Growth

Page 18: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

18 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

IBM Path Forward Lean Deployment Strategy

Organization Vision of

Success

Leadership Commitment

Organizational Lean

Strategy

Self-directed Improvement

TeamsContinuous Learning

STA

GE

1:

Read

iness f

or

Ch

an

ge

STA

GE

2:

Lean

Skills

Dev

elo

pm

en

t

STA

GE

3:

Co

nti

nu

ou

s L

earn

ing

The

“Burning

Platform”

Success Measures,

Barriers and

Top Actions for Success

Lean

Transformation

Skills

Development

and Training

Preferred Organizational Culture

OCI and Lean Assessment

(Culture/Process/Skill Maturity)

Leadership Development

Strategy

Leadership Impact/

Life Styles Inventory

“House of Lean” – Focus on Process, Technology

Page 19: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

19 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Organizational Readiness for Change Indicator – Key Factors

▪ Four Foundational Factors for Change Readiness

– Business Relevance: Refers to the characteristics of a particular change – aka, the burning platform

and the vision; Balanced scorecard decision making → COMPELLING REASONS FOR CHANGE

– Management Support: Tops down support and buy in is critical for a successful change →

TRANSFORMATIONAL LEADERSHIP

– Achievability: Refers to the confidence that individual employees will contribute to the change; it

defines the motivation to change (individually and collectively) → SKILLS DEVELOPMENT

– Personal Relevance: Refers to whether the change is perceived to be personally beneficial → WIIFM

Business RelevanceWhat is the context and

content of the change?

AchievabilityBelief that the change

can be made

Management

SupportAre the leaders going to

support?

Personal Relevance“What is in it for me?”

Ready for ChangeBeliefs and Attitudes

BehaviorTops Down support of change

Developing Change

LeadersBottoms Up implementation

Continuous

MonitoringReview readiness metrics

Adapted from Holt et al., 2007

Page 20: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

20 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

What is Culture and Why is it Relevant?

• Edgar Schein model of Culture:

• What you can see, hear and observe

• What is important to the organization

• What does it take to ‘fit in’

• Dr. Robert Cooke: Organizational culture—the shared beliefs and values guiding the

thinking and behavioral styles of its members

• Organizational behaviors are classified into 3 categories:

1. Constructive behaviors

2. Passive/Defensive behaviors

3. Aggressive/Defensive behaviors

• These qualitative behaviors can be measured & quantified to help evaluate and

change an organizational culture

Organizational Culture and Leadership: E. Schein, Jossey-Bass, 4 ed., (2010)

Robert Cooke’s work can be found at Human Synergistics International’s website

http://www.humansynergistics.com/news/ResearchandPublications.aspx

Page 21: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

21 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Over the past 8 years,

the OCI® has been used to

measure the current and

preferred states of the

Organizational

Cultures to identify the

key Levers for Change.

Organizational Culture Inventory – OCI®“Culture is everything” – Lou Gerstner (2002)

▪ What is the OCI?

– Most widely-used and thoroughly-researched tool for measuring organizational culture

– Quantifying and managing organizational culture is critical

Brings an organization’s values “to life,”

Supports the implementation of its strategies

Promotes adaptation, goal attainment, and sustainability

▪ How does the OCI work?

– Provides organizations with a visual profile of their operating cultures (Current Culture)

in terms of the behaviors that members believe are required to "fit in and meet

expectations."

– These behavioral norms have a significant impact on the organization’s ability to solve

problems, adapt to change, and perform effectively

▪ Why do an OCI?

– Provides a reliable, valid, and true measure of culture—clearly distinguishing culture

and climate as distinct yet interrelated organizational variables

– Supporting programs designed for strategy implementation, employee engagement,

organizational learning, quality and reliability, and/or customer service (a balanced

scorecard approach)

Human Synergistics International ®, 2012OCI® is a proprietary of the Human Synergistics International

Page 22: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

22 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Organizational Culture Inventory®, OCI

Circumplex with a Brief Description of the 12 Styles

Oppositional

Members are expected

to gain status and influence

by being critical and constantly

challenging one another

7

Power Members are expected to take charge and “control” others, and make decisions autocratically

8

Competitive Members are expected to operate in a “win-lose”

framework and work against their peers to be noticed

9

Perfectionistic Members are expected to avoid making mistakes, work long hours,

and keep “on top” of everything

10

Self-Actualizing

Members are expected to gain

enjoyment from their work and

produce high-quality

products/services

12

Humanistic-encouraging Members are expected to be supportive,

constructive, and open to influence in dealing with others

1

Affiliative

Members are expected to be friendly,

open, and sensitive to the satisfaction

of the work group

2

Achievement

Members are expected

to set challenging but realistic goals

and solve problems effectively

11

Approval

Members are expected

to agree with, gain the approval of,

and be liked by others

3

Conventional

Members are expected

to conform, follow the rules,

and make a good impression

4Dependent

Members are expected to do what they are told and clear

all decisions with supervisors

5Avoidance

Members are expected

to shift responsibilities to others

and avoid being blamed for mistakes

6

Styles of Behaviors Required to “Fit-in” OCI® is a proprietary of the Human Synergistics International

Page 23: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

23 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Levers for Change for Action Planning ▪ Focus on gaps between current

and ideal (preferred) from OCI

▪ Employee focus groups and

action planning sessions

conducted to gain insight into the

gaps on 11 areas

– Root Cause Analysis is used

extensively

▪ Implement actions that address

both climate and culture factors

▪ Weekly review by Senior

Leadership team to monitor

progress, breakdown barriers and

recognize teams

▪ Monitor Adoption Rates

– How impactful are the actions and

are employees engaged in the

transformation?

– Organizations define metrics to

monitor the engagement

Quantifying the Culture and the Outcomes of Culture are critical first steps to understand organization’s health

1

Page 24: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

24 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Corporate Culture and Performance: J.P. Kotter & J.L. Heskett, Free Press (1994)

Culture has a significant impact on an organization’s long-term

economic performance

Research and development by Robert A. Cooke, Ph.D. and J. Clayton Lafferty, Ph.D.

Copyright © 1973-2012 by Human Synergistics International. All Rights Reserved.

E.g. Lion Nathan, Australia

Culture transformation is a journey; culture health of the organization should be taken every 18-24 months

2

Page 25: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

25 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Understanding the Culture and Leadership Readiness for Change

LSI®, LI®, GSI® and OCI® are proprietary of Human Synergistics International

Organization’s Current

and Preferred Culture

Leader’s Impact on Teams

(360 Feedback)

Group Styles Inventory to

Study Team Dynamics

Individual’s Impact on Teams

(360 Feedback)

Page 26: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

26 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Studying the Role of Leadership Style to Organizational Culture

Senior

Leader

Management

Team

Dept/

Functional

Team

Plant/

Organization

Corporate

Culture

Organizational

Preferred Culture

CPI = 315

CPI = 369

CPI = 620

CPI = 884

CPI = 802

CPI = 1069

Research shows that Transformational Leaders ‘pull’ the organizational culture towards their (leader’s) constructive styles of behavior

•Underscores the need to develop more transformational leaders in the organization to enable true culture transformation

CPI = Culture Performance Index

▪Published at the 2011 Industrial Engineering Research Conference

Understanding the impact of leaders on their teams, and therefore, the organization is an important step

3

Page 27: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

27 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Identifying the Key Skills Required for Transformation

Process maturity assessed to understand the strengths, weaknesses and skill levels of the organization

4

Transformational Leadership

Teaming and Coordination

Employee Engagement

Lean Core Operations

Kaizen Practices

Visual Factory

New Product

Introduction

Lean Skill Levels

Page 28: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

28 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Successful Lean Transformations Use Team-based Problem Solving

Interpersonal Skills

• Listening

• Supporting

• Differing

• Participating

• Striving for Consensus

Rational Skills

• Analyzing the Situation

• Setting Objectives

• Simplifying the Problem

• Considering Alternatives

• Discussing the Consequences

Effective Lean Solutions =

Quality Acceptance

*The OCI is a registered Trademark of Human

Synergistics International, Inc.- Dr. Robert Cooke

X

Rational and interpersonal skills are key for transformation efforts; Team-based problem solving is

the answer for gaining consensus

5

Lean techniques successfully integrate both these skills

Page 29: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

29 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Levels of LEAN Certification – LEAN Tools and TechniquesExample - Bronze Level Certification

▪ Duration: 5 days

▪ Lean Transactional and Support Workers training

also available

▪ Project Work on a Business Challenge

– 2 practitioners per team work on an improvement project

– Expected duration: 3-6 months

Bronze

Certification

Silver

Certification

Gold

CertificationBronze Certification +

•TQM Tools

•Workload Balancing

•Kaizen Facilitation

•Lean Project Management

•Mentor Bronze Projects

Silver Certification +

•Strategic Planning

•Plant wide Initiatives

•Business Case Development

•Cultural Transformation

•Mentor Silver Projects

▪ Lean Skills

– Identify and Eliminate the 8 Wastes

– Apply Constriction Management Techniques

– Construct a VSM, Perform Value Add Analysis

– Implement 5S Principles and Visual Management Tools

– Apply the 8-Step Structured Problem Solving Methodology

– Implement Poka-Yoke / Error-proofing Techniques

– Apply Standardized Work: Standard Work, TAKT

– Set Up Reduction, Change Over

– Discuss Group Dynamics and Team Behaviors

– Apply Constructive Teaming Styles

– Interpersonal skills and Transformational Communication

– Describe the elements of a Lean Kaizen Event

– Develop an A3 report for a Lean improvement project

– Lead a Lean Improvement Project

▪ Hands-on Learning

– Turnaround an automobile manufacturing company

(manufacturing teams) or courier company (transactional)

Adapted from:

Smarter LEAN90-100% Fundamentals Level

25-50% Bronze level

10-25% Silver level

5-10% Gold level

Page 30: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

30 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Business Analytics – Modeling to Support Transformation

▪ Integrated Design of Experiments (DoE) – Simulation modeling approach for making strategic decisions

– DoE identifies the key factors that impact decisions

– Simulation modeling can represent the randomness and uncertainty

Over $50 mil. worth business decisions

have been made using modeling

Top Publications:

2008 IIE Annual Conference: Using Simulation Modeling to Establish Kanban Levels in a Server Manufacturing Environment (Won Best Paper in Lean Systems Track)

2008 IIE Annual Conference: Using Design of Experiments and Simulation Modeling to Study the Facility Layout for a Server Assembly Process

2008 Winter Simulation Conference: Using Design for Six Sigma and Simulation in a Server Manufacturing Process

2010 International Conference on ISO 9000 and TQM – ICIT

Integrating Lean

Tools with

Modeling

Page 31: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

31 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Business Analytics – Decision Support SystemsUsing Lean and Agile Techniques to Eliminate Muda

Value Stream Mapping

Data Gathering

Eliminate Waste, Process

Redesign

Enable Cross-functional Teams,

Voice of the Customer

‘LEAN’ CONCEPTS

Standardization/Learning Tools

Enable IT Improvements

Adapt Technology to Resources

Flexibility and Adaptability to

Changes

‘AGILE’ CONCEPTS

Wo

rkflo

w a

nd

Info

rma

tion

Flo

w R

e-desig

n

Training Within Industry(On-demand Training System)

SMART Warehouse

Management System

Resource

Deployment

Matrix(Flexible Workforce)

Used Parts Inventory

System (Reverse Logistics)

Demand/Constraint

Supply Reports

WW Order Status

System

Standard Work

Decision Support

Innovation Hub

• Identifies most appropriate resource for a

task based on skill, quality and complexity

• Defines a new real-time slotting principle

for warehouses (IIE 2008, Patent Pending)

• Identifies the optimal part allocation policy for

maximizing part life cycle (Greener products

through reverse logistics)

• Defines a methodology to identify

areas/processes for improvement using

standard work and lean methods

• System for employees to submit ideas

and collaborate on improvements

• A one-stop-shop for employee skill development

(online training/certification system)

• Real-time update of orders and decision support to

address (e-Gemba) any fluctuations in order deliveries

•Forecasts any demand and supply

constraints to prevent production stoppage

Page 32: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

32 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Everyone Else

Change AdvocatesChange Resistors

Transformation Team

Leadership Team

Key Path Forward Measure of Success -107% increase in Constructive behaviors

All employees

2009 2011

Advocates for Change – Creating a more Constructive Culture resulting in a

more Adaptive / High-performing Organization

Tops-down, bottoms-up approach– leadership sets the vision, employees implement the change plans

6

Page 33: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

33 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Impact of Lean on Culture – Working

towards a Constructive Culture

Lean Bronze/Silver Trained Employees

CPI=457; %Constructive: 79%

Organizational CURRENT

CPI=332; %Constructive: 29%

Organizational IDEAL

CPI=828; %Constructive: 88%

Organizations need to view Lean as a principle, rather than a set of tools; getting from tool driven,

to systems driven to principle driven is the roadmap for a Lean transformation

5S/Kaizen

Lean

Projects

OCI/

Lean

CultureLean

Advocates

Best

Practices

Sharing

Cost

Ops

Bench-

marking

Lean

Education

SMART

Lean

2011 2011

Page 34: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

34 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Creative Methods to Engage Employees Using Problem Solving Skills

Effective Problem Statement

The current situation

The desired situation

The impact statement (answers the ‘so what’?) 10%

The goal meets the SMART

criteria

-Specific

-Measurable

-Achievable

-Relevant

-Time-Based 10%

Innovation/CreativityDegree of innovation and creativity demonstrated by the team

to solve the stated problem and improve the process. 10%

Metrics definition Cycles, processes, areas, quality, that were improved. 10%

Results vs. Goal

(countermeasures if the goal

was not met)

Were the goal and results stated before achieved.10%

Business impact (financial,

quality, cycle time, inventory).Benefits accomplished by the project.

10%

Project SustainabilityThe extent to which a management system and controls that

are in place can sustain the process improvements 10%

Project Replicability Can the project be applied to another area, site? 10%

Kaizen Methodology

This will be evaluated only by your Sensei (Don Sobeski) and

will represent 20% of the Total Evaluation 20%

TOTAL 100%

CRITERION DESCRIPTION Score %

Root Cause Identification Session Kaizen Event – Card Storming Session Lean Training – Working on Simulations

Employee Driven Initiatives

“Lean Week” – Dedicated Time for Improvement Projects (Evaluation Criteria above)Sports and Gaming Team

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35 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Sustaining Lean Transformation - Synergistic Problem Solving

Published in 2010 IIE Annual Conference and Exposition, Cancun, MX

“The Role of Kaizen Events in Sustaining a Lean Transformation”

Increased Team Based Decision Making

“Safe” Environment for Employees for Idea Generation

High % of Solutions Implemented

Employee Empowerment, Build on Ideas of Team

Always look to measure “adoption rates” – are the solutions sustained and are the skills being utilized for transformation

7

Page 36: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

36 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Maintaining Skills – Critical Success Factor for Transformation▪ Standards established to increase adoption rates of LEAN techniques in the organization

– Promotes the desired LEAN behaviors for sustaining the initiatives

– Established criteria for recertification and maintaining certification

– Encourage employees to continue contributing to the LEAN transformation, while developing their rational and

interpersonal skills

– Criteria defined by employee focus groups and external research

Maintaining the transformation skills through employee initiated programs → critical for sustaining gains

8

Page 37: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

37 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

IBM Path Forward Business Transformation – Success Story

2004 2007 2011

An adaptive culture + process focus + engaged employees produce superior business results

Cultural Performance Index - CPI 181 313 369

Financial Performance Under Plan Under Plan Exceeded Plan

Inventory Management Under Plan Under Plan Exceeded Plan

Quality Performance Under Plan Improving Exceeded Plan

Process Maturity Score: 2/5 Score: 3.1/5 Score 3.9/5

Leadership CPI 245 358 728

Employee Satisfaction 3.62/5.00 3.68/5.00 3.71/5.00

Kaizens/# Ideas 0/20 0/80 46/300

# Employees Trained 10 (<3%) 30 (<10%) 220 (55%)

Assembly Plant of the Year2008

ML 100 Awards2012

IIE Lean Best Practice Award2011

Page 38: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

38 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Culture and Climate Progression

2010 2010

Culture Performance Index = 311

% Constructive Behavior = 38%

Culture Performance Index = 557

% Constructive Behavior = 75%

3.9

3.6 3.6 3.73.8

3.6

3.2 3.3 3.4 3.4

4.24.1 4.1

3.94.1

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Clear Roles "Fit In" Satisfied member Intention to stay Recommend as a

workplace

2012 2010 - OCI Constructive Benchmark

2012 PULSE

All constructive behaviors showed asignificant improvement in a

pulse survey conducted in 2012

Pulse survey shows a significant improvement in the various outcomes of culture

Outcomes are at least 90% of the constructive benchmarks

2012 PULSE

Page 39: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

39 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Lessons Learned - Summary

▪ People, Process and Leadership Focus – the foundation for a successful transformation effort

– Define the “What is in it for me to change question” early and clearly

– Leadership team needs to walk the talk – lead by example and not superficial support

▪ Skill based training for all employees to transform their own processes and organization

– Rational and interpersonal skills are critical for sustaining the gains

– Question: “What behaviors do we expect the employees to change as a result of this skill or program”

▪ Culture assessment tools prove vital information on the organization’s health and readiness for change

– Organizational culture, Leadership impact, group styles and life styles are modeled; every 18-24 mos.

– Process and technology maturity is gauged to understand the skills requirements annually

▪ Defining the right metrics to drive the right behaviors

– Metrics to monitor the key aspects of transformation efforts

▪ Dedicated time for activities and recognize contributions

– Should not be viewed as “another thing that I need to do”

– Recognize contributions to the transformation and relate it to the business results

Page 40: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

40 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Questions, Comments

▪ Thank you for your time and attention!

– Please contact me for any further questions: [email protected]

– Related PublicationsRamakrishnan, S., Testani, M., “A Methodology to Assess an Organization's Lean Readiness for Change”, Proceedings of the 2012

Industrial and Systems Engineering Research Conference, Orlando, FL, 2012, pp. 1-10.

Ramakrishnan, S., Testani, M., Orth, R., “Critical Factors for Sustainable Kaizen Events – People, Process and Technology”, Proceedings

of the 2009 American Society for Engineering Management Conference, Springfield, MO, October 2009, pp. 1-6.

Testani, M. , Ramakrishnan, S., Orth, R., Ramakrishnan, S., “Integrating People, Process and Technology for a Sustainable Lean

Transformation Using Systems Thinking”, Proceedings of the 2009 American Society for Engineering Management Conference, Springfield,

MO, 2009, pp. 1-9.

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41 © 2012 IBM CorporationBest Practices in Managing Continuous Improvement Conference 2012

Page 42: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Questions?How we did with

them..

Page 43: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Upcoming Webinars from Chapter #1

Feb 6, 2018

Industry & Service Systems 4.0:

Smart Supply Chains

❑ James Tompkins,

Chairman, Tompkins, Int’l—

The Digital

Imperative

❑ Benoit Montreuil, Director,

Supply Chain & Logistics

Institute, ISE at Georgia

Tech—The Physical

Internet

❑ David Poirier, CEO, The

Poirier Group, Toronto,

Canada—The

Practitioner View

Page 44: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Upcoming Webinars from Chapter #1

Feb 26, 2018

Industry & Service Systems 4.0:

Smarter Analytics

❑ Matheus Scuta, Global

Manufacturing Analytics Scientist,

Ford Motor Company—

Integrating Analytics into

Manufacturing

❑ Jared Frederici, Sr. Consultant,

The Poirier Group, Toronto,

Canada— Smarter

Analytics

❑ Scott Sink, Director, ILSS

Certification Program, ISE at

Ohio State— Operational

Analytics: By What

Method

Page 45: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Upcoming Webinars from Chapter #1:

Becoming a Change Master

March 5, 2018

Soft Skills 4.0—Becoming a

Change Master

❑ Bob Gold, Founder, The

Gold Group, Behavioral

Technologist–

The Art and Science

of Persuasion

❑ Scott Sink, Director ILSS

and Operational Analytics

Certification Program, ISE at

OSU–

How to Become a

Change Master

Page 46: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

Upcoming Webinars from Chapter #1:

IISE Annual Conference—

Industry Practitioner Track

March 19, 2018

The IISE Industry Practitioner

Track—Orlando

❑ Scott Sink, Director ILSS and

Operational Analytics Certification

Program, ISE at OSU– Overview

of our Track for Young

Professionals, Seasoned

ISE’s, ISE Students

❑ Kaz Takeda, Disneyland Resort

Manager, Industrial Engineering

and Co-Chair Track-- Highlights for

Seasoned Practitioners

❑ Jared Frederici, Sr. Consultant and

Co-chair for Track– Highlights for

Young Professionals and

Students

Accelerate Career

Progress and Success

Know about Industry 4.0

Expand and Extend my Network of

Peers

Get some Altitude on my

life and job and career and have some Fun

Know about Service 4.0

Operational Analytics

Strengthen my Soft Skills

Page 47: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

The “Industry Track”

Orlando May 18-21 2019

▪ We have built a mini-conference specifically designed for Young Professionals,

Seasoned ISE Practitioners, Leaders and Managers of the ISE Function in Business

and Industry.

▪ Four Focus Areas with 6 great presentations in each of the four areas:

1. Soft Skills Development: improving your change leadership and management knowledge and skills

2. Career Development: Trends and Emerging Opportunities in our Field

3. Continuing to broaden and deepen your ISE Foundational Knowledge and Skills

4. How to create more Value for your Organization and in doing so advance your career faster

▪ All Invited Speakers will ensure every session is outstanding.

▪ Jim Tompkins is our Industry Track Keynote Speaker—

if you haven’t heard Jim speak you are in for a treat!!

▪ Balanced presentations across Industry Segments (Services, Healthcare, Manufacturing, Supply

Chain and Logistics)

▪ Goal is to make it efficient and fun for you to do some Personal and Professional Development in

2019

Page 48: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

The “Industry” Track for

Orlando 2019

And, in addition to those 24 Practical, Pragmatic Presentations by hand-picked

presenters on topics ranging from habits of highly effective Young

Professionals to Smart Manufacturing and Physical Internet we’ll wrap around

some Networking opportunities:

▪ the Annual CISE Leadership Mixer

▪ the Annual Industry Advisory Board Mixer

▪ Industry Track Kick-off and Capstone Plenary Sessions

▪ The Executive Roundtable

▪ Townhalls for IAB and Young Professionals

▪ Huge opportunity to build your network and mentor

and get mentored

Page 49: Session Leaders · Session Leaders D. Scott Sink, Ph.D., P.E., Director, Integrated LeanSigma Certification Program, ISE at OSU Featured Presenter Sreekanth Ramakrishnan, Sr. Data

So, practice First things First and

take some time out and invest in

yourself and your future

It Pays Off—I’ve attended 45 IISE Conferences and the

Return on Investment has been 25+:1 !!!