Assembling an Operational Excellence Team

John Bratz

Assembling an Operational Assembling an Operational Excellence TeamExcellence Team

February, 2004February, 2004

Agenda

1. Overview of Wyeth BioPharma’s OE Program

2. OE Execution Methodology

3. Project Team Structure

4. Lessons Learned

Operational ExcellenceOperational ExcellenceProgram OverviewProgram Overview

Wyeth BioPharma’s Operational Excellence Program

Program Objectives

1. Build a “Culture of Excellence” toward managing our business and business processes

2. Internalize a continuous improvement mindset, methods & tools

3. Proactively address areas of business & business process inefficiency

4. Realize both tangible & strategic benefitsCost structure (COGS)QualityCompliance

Improved Job satisfactionSpeed of executionBetter understanding of costs

– Costs of stopping a defect before it happens. PREVENTIONPREVENTION

– Costs of inspecting and evaluating work/ product “in-process”. APPRAISAL

– Costs of correcting a defect (at the end of the line before it get to the customer.)

INTERNALFAILURE

– Costs of correcting and recovering from a defect after it has been experienced by the customer.

EXTERNALFAILURE

TYPES OF (POOR) QUALITY COSTS

© 2005 Leap Technologies, Inc.

The Wyeth BioPharma OE Program Includes:

Toolsets to address a variety of improvement opportunities A standard methodology for applying the tools Active learning for project teams (Just-in-Time) Mechanisms for identifying and prioritizing improvement projects Executive leadership and oversight (Steering Committee) A programmatic communications effort

Operational Excellence

The OE Program is the means by which we will monitor our performance and continuously improve.

Types of Projects

Project TypesProject Types

EXECUTIVEACTION

PROJECTS

QUICK WIN PROJECTS

CORE REDESIGNPROJECTS

EXPERTSTUDY

PROJECTS

Process Owner driven

Decision communication tools

Within 15 days or less

Frontline driven

Action Workout Team tools

60-days or less implementation

Cross-functional team driven

Breakthrough Workout Tools

60-90 day Sprint to results, 6 month process

Black Belt or equivalent driven

Six Sigma Statistical tools

Greater than six months


Train in the Appropriate Operational

Excellence Tool set

Apply StandardMethodology

Deploy Best Practices

(Implementation)

Control and Monitor

Implementation

•ID opportunities

•Alignment w/ objectives

•Database

•Charter

Qu

ick

Win

Ideas

Red

esig

n

Exp

ert

Exe

cuti

ve A

ctio

n

Includes a formal

process for surfacing & prioritizing new ideas“Baseline Analysis”

Prioritized projects are categorized

by the appropriateOperational Excellence

toolset.

A Model for Identifying, Prioritizing and Working Projects

Pick Projects based onOrganizational Strategic

goals

DMAICDefine, Measure, Analyze,

Implement and Control

C

I

DMA

A Model for Sustained OEKey Points

Multiple toolsets offer flexibility to address various issues

Common implementation methodology (DMAIC or other) ensures rigorous application of tools

Choice of toolset will be based on specific project needs

Six Sigma, Lean, 5S, Etc.

Focus on short “sprints” to results (ie: 60-days) Maintains focus and intensity

Teams receive just-in-time training on the specific tools for their project

“Active Learning” in conjunction with actual project work

Keep these strategies and best practices in mindas we proceed on our breakthrough expedition.

SupplierCertification

CentralizationDecentralization Outsourcing Automation

ProcessCustomization

Cellular/Team-BasedProcessing

TotalPreventive

Maintenance

QuickChangeover

BatchOptimization

Pull/KanbanSupply

QualityControl at the

Source

Smooth FlowFacility Layout

5 SSystem

VisualManagement

Internet Communications

LevelIII

LevelII

LevelI

Standardization

Constraint/BottleneckAnalysis

Continuous QualitySmooth Flow OperationNo Wasted Resources

KEY TOOL: THE HOUSE OF PROCESS INNOVATION FOR PROCESS REDESIGN


GREEN MONEY

OPPORTUNITY!

SlowerFaster

Excellent

Poor

Total First-Pass

Yield

Total Cycle Time

“AS IS” PROCESSPERFORMANCE

“BEST CASE”PROCESSPERFORMANCE

$$ $$ $$

$$

$$

$$

WHY MEASURE PROCESS CYCLE TIMEAND FIRST- PASS YIELD?


Measure of Efficiency and Effectiveness

Trainer/Consultant Strategy

Drive the program internally Utilize consultants surgically for specific program elements

Design and startup, Team tools, Training

Partner with multiple vendors to obtain a full range of services Design and startup – Maxiom Consulting Group

Project team tools & support – Leap Technologies & Maxiom Consulting Group

Specific toolsets (Lean, 6σ, etc.)

License materials and certify internal facilitators/trainers Use Wyeth’s internal corporate network to…

Identify vendors

Develop best practices and lessons learned

Teach sections of the training

Our Goal:Purchase great tools and training material that we can

customize and use internally

4. 60-Day Wrap-Up Meeting

3. 30-Day Progress Check Meeting

2. Weekly Action Team Meetings and Updates

1. Breakthrough Workshop

5. Transition

Prelaunch PlanningPrelaunch Planning

THE BREAKTHROUGH WORKOUT ROADMAP


Start by creatingcritical mass ownership for thePOSSIBILITY OF BREAKTHROUGH … Then work to practical implementation within 60 days using Six Sigma, Lean and Workout tools as needed.

The 60 Days to Results Rule!

THE BREAKTHROUGH WORKOUT PARADIGM SHIFT


OE Execution MethodologyOE Execution Methodology

OE Methodology

-1 0 1 2 3 4 5 6

Month

Baselining

Breakthrough Workshop

Project Selection

Charters

ID Team

Preparation60-Day

Breakthrough Workout Implementation

Design

Analyze

30-Day Review

60-Day Review

Monthly ProgressCheck-Up

Document Revision

TrainingFeedback/Revise

6-Month Benefits Review


Protocols

Change Controls

Piloting

Control Plans

Benefits Realization

12

Measure

Control

Common Project Language

Project Phases:

Pre-PlanningBreakthrough

(Design)Implement Control

Enterprise Baselining

Project Chartering

Team Member Identification

Workshop Scheduling & Planning

3-Day Kickoff Workshop

60-Day Breakthrough Workout

Proposals Developed

Stakeholder Endorsements

SOPs Drafted

Piloting Final Data

Review & Endorsement

Document Review & Approval

Training

Ongoing Measurement & Reporting



Tools

Steps

Objectives

Deliverables

Select project Develop project charter Identify team members, sponsors & other key roles Collect baseline data Plan and schedule Breakthrough Workout launch Prepare team logistics

Prepare for OE project launch Develop the project charter & scope Identify and prepare team members and supporting

roles

Potential project opportunities Project prioritization and selection tools Project charter templates Survey/questionnaire template Shared team folder

Project charter Team & supporting players identified Breakthrough Workshop planned & scheduled

Operational ExcellencePre-Planning Phase

Critical Success Factors

How Long?

Who Is Involved?

Approx. 4 weeks

OE Steering Committee OE Coordination Team Process SMEs and team members (minimal)

Identification of project Sponsor Clear articulation of scope and charter Advance planning (>2wks) for Breakthrough

Workshop

Operational ExcellencePre-Planning Phase

Tools

Steps

Objectives

Deliverables

Conduct 3-day Breakthrough Workshop Hold weekly team meetings to design solutions Develop and document Breakthrough Proposals Conduct Stakeholder and Steering Committee

reviews for endorsement

Achieve rapid innovation in support of project goals

Breakthrough Accelerator tool MS Project template Weekly team meeting agenda templates 30-day and 60-day check-in presentation templates Proposal and Stakeholder endorsement session

templates Initial Breakthrough Proposals 30-day interim report presentation Fully documented proposal and plan for

endorsement Draft SOPs, where required Implemented proposals, where possible

Operational ExcellenceBreakthrough Phase


How Long?

Who Is Involved?

Target 60 days

Project Teams OE Coaches Project Stakeholders OE Steering Committee

Clear, early direction on Breakthrough Proposals Early Stakeholder engagement and ownership of

improvement Active management of scope Full documentation of decisions and rationale

Operational ExcellenceBreakthrough Phase

Tools

Steps

Objectives

Deliverables

Revisit team and champion roles Finalize implementation plans Conduct pilot projects, where appropriate Final review and endorsement of pilot results Track and manage implementations

Achieve rapid implementation of Breakthrough Ideas

MS Project template

Implemented proposals Results of Proposal pilots Intermediate status reports Documents revised, where required Employees trained, where required

Operational ExcellenceImplementation Phase


How Long?

Who Is Involved?

Variable (generally <6 mos.)

Project Teams OE Coaches Project Stakeholders OE Steering Committee

Continued Sr. level (Steering Committee) commitment & attention

Speedy decision making and issue resolution Full documentation of decisions and rationale


Tools

Steps

Objectives

Deliverables

Conduct 6 & 12-month benefits reviews Identify issues and gaps impacting benefits

realization Develop recommendations and action plans to close

gaps

Ensure full realization of benefits

Benefits review template

Confirmation of benefits realized from project Identification of implementation gaps and issues Action plans to close gaps Full anticipated benefits realized

Operational ExcellenceControl Phase


How Long?

Who Is Involved?

2 weeks elapsed time for benefits review

Project Teams OE Coaches Project Sponsor OE Steering Committee

Clear documentation of control points and metrics identified in the Breakthrough Proposals

Data collection on metrics performed prior to benefits review

Availability of original team to participate in benefits review


OE Pilot Projects – Utilizing Process Redesign

Two pilot projects were initiated to test the approach and methodology.

Streamline the Investigations process

Streamline the Environmental Monitoring processes

Each project team went through a 3- day kickoff working session to develop “Breakthrough Proposals”.

15 proposals were developed; 10 in one team and 5 in the other.

Each team pursued five proposals for the duration of the 60 day process

In essence, this created ten mini projects

OE Program Projects

Process Redesign - One project has been identified to utilize the Breakthrough methodology.

Work Order Request process

Introducing the Action Workout for Quick Win Process that has a clear defined focus

Smaller teams from 4 to 6 SMEs

Initiative - Verification on Batch Records

Follows the same 30/60 day timeframe, but is only 10% of teammember’s time

Finishes within the 60 day timeframe

Project Team StructureProject Team Structure

What is a Team?

A group of people with complimentary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable.

Team StructureBasic Principles

Those closest to a process are the best people to improve the process.

Cross-functional Weighted towards lower organizational levels

Let the teams do what they’re good at… Technical and process knowledge

…Include support to help members develop new skills Expertise in process analysis and improvement tools Education and training Benefits quantification

…and offload other activities that will slow their work. Team administration and management Communications and change management Organizational decision-making

Creating Our Teams

Facilitator, Team Leader, Team members 6 to 8 individuals

Can go as high as 10

Cross-functional Subject Matter Experts (SME), seeded with fresh pair of

eyes Coordination resources participate to smooth team

administration and provide direction/education Balance political, developmental objectives with

effectiveness

Sample OE Team Composition

OE Coordination – Methods Expert & Facilitation Process owner Site Quality Site Manufacturing Site Operations Two to four other members from various disciplines

depending on project focus

SPONSOR MANAGER(S)– Charters the project.– Reviews work products and provides input.– Both “Tollgate” and “Paymaster” for implementation decisions.

TEAM LEADER(S)– Designated liaison to Sponsors.– Orchestrates weekly Action Meetings.

BREAKTHROUGH TEAM– Stakeholder group representatives.– Creates the breakthrough design and implementation strategies.– Committed to project completion.

BREAKTHROUGH COACH(ES)– Facilitates Breakthrough Workshop, Progress Check and Wrap-Up

Meetings.– Provides access/coordinates use of other continuous improvement tools

and resources.

BREAKTHROUGH WORKOUT ROLES AND RESPONSIBILITIES


Creating The Team Environment

Align the organization prior to mobilizing teams Provide structure and a clear path forward from the outset

Team “Speed-to-Effectiveness” is critical to meet 60-day timeframe

Structured process & formalized team tools are essential

Set clear, achievable objectives and expectations (Charter) Proactively communicate to the organization

Get in front of distracting rumors

Provide an infrastructure that helps collaboration and supports information flow

Document repository, Shared folders, standard tools, etc…

It is important to remove the organizational and individual “friction” that will keep teams from working well together

Team Meetings

Scheduled immediately after kickoff Full Team

Weekly, consistent day and time Duration - 2 hours Status update, issue resolution, planning, and education “Work” performed in between Focused

Sub-Teams Weekly, consistent day and time Working meeting Conduct investigation, analysis, and design activities

Effectiveness Follow standard agenda, define roles, stay focused

Lessons LearnedLessons Learned

“This is just the next flavor of the month.

From where I stand it seems like the

“same old, same old.” Nobody’s asking

the people who really do the work what

they think.” - Frontline Supervisor

Heard This Before?

Lessons Learned in Assembling the Teams

Uncover “hidden” conflicts 25% commitment turns to 60-70% for some key members Opportunities to coordinate resource requirements with other efforts

Cross-functional does not mean all-functional Politics and organizational bias can burden the process Don’t need representation from all functional groups, good mix

External processes and decision making get in the way. Steering Committee was too high a level to get to for quick decisions Stakeholder groups (decision making bodies) were developed for the proposals Early involvement with Stakeholders

Start with Outside-In thinking Allow teams to think outside the box, with not too many restrictions, rather than improving the

“as-is” Strip away the job titles in the team, everyone on the same playing field

Conflict resolution Clear escalation procedure within the teams and up through the stakeholders to the Steering

Committee

Questions?

Back up slidesBack up slides

But is that the whole story?

25 to 40% of revenue typically is spent on cost of quality activities.

HOW BIG IS THE PROBLEM?


DEFINE The Process1

2

3

4

5

MEASURE “AS IS” Process Performance

ANALYZE What Needs to Change

INNOVATE Breakthrough Solutions

CONTROL The Implementation

– What is it and how is it designed to work?

– How effective and efficient is the process today?

– What are the key leverage points for driving breakthrough performance?

– How do we get there?

– How do we make it happen at “controlled speed.”

WORKSHOP FRAMEWORK - DMAIC


Assembling an Operational Excellence Team

Education

Transcript of Assembling an Operational Excellence Team