Continuous Improvement Strategy

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1 Business Excellence through… Operational Excellence.… a Continuous Improvement Strategy Craig Marton

description

Business Excellence through Operational Excellence ... a Continuous Improvement Strategy

Transcript of Continuous Improvement Strategy

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Business Excellence through…

Operational Excellence.… a Continuous Improvement Strategy

Craig Marton

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food for thought..…

the systems that deliver value to our customers are perfectly designed to achieve the results we get.

- Unknown (but someone pretty bright)

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BusinessExcellence

Quality Improvement• Identify and Remove DEFECTS

in all processes.• Increase capacity through

better yields.• Generate results by

reducing variation.

High Performance People• MOBILIZE all PEOPLE to achieve Excellence.• Provide tools and skills - training and motivation.• Remove barriers that block the way.

Supply Chain Management• Focus on value delivery system -

supplier through customer.• Use TIME as key performance metric -

Reduce CYCLE-TIME.• Improve work flow.

HighPerformance

People

SupplyChain

Management

MaximumSynergy

QualityImprovement

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CUSTOMER First .....the EXTERNAL Dimension

Constancy of Purpose .....the LEADERSHIP Dimension

Everyone Involved .....the PEOPLE Dimension

Decisions Based on Facts .....the KNOWLEDGE Dimension

Process Focused .....the SYSTEMS Dimension

Continuous Improvement .....the LEARNING Dimension

Values of a High Performance Organization...

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Quality Improvement - PurposePurpose..........

Deliver Defect-Free Products and Services - Faster, Cheaper, Better by:

Continuous Learning and Applying Quality Improvement Approaches,

Creating Ownership through Involvement of Teams,

Sustaining the Gains through Continuous Improvement

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THE GOALS OF QUALITY IMPROVEMENT:

Improved Customer Satisfaction

Defect Reduction

Yield Improvement

Higher Operating Income

Improved, Predictable Capability

Quality Improvement Goals Are Directly andQuantifiably Linked to those of the Business.

Constant Process Measurement

Defeat the Competition

Gain Market share

Stay in Business

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A SUMMARY OF THE IMPROVEMENT METHOD

Phase 4:Sustain

Phase 3:Transform

Phase 2:Evaluate

Phase 1:Gather

o Project Definitiono Establish Process Capabilityo Map the Process o Verification of Measurement Systems

plus...Project Application

o Project Review (Phase 1)o Study Response Variableso Evaluate Input Variables o Short List of Input Variables

o Project Review (Phase 2)o Determine Critical Inputso Define Mathematical Model o Short List of Critical Input Variables

o Project Review (Phase 4)o Optimize Critical Inputso Monitor Output / Control Inputs o Sustain the Gain / Update Quality System

Final Report & EvaluationCelebration

plus...Project Application

plus...Project Application

plus...Project Application

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ROLE OF IMPROVEMENT EXPERTSLeaders: Lead and facilitate cross-functional improvement

teams using the Continuous Improvement methodologies.

Teachers: Provide training to others in how to apply statistical methods to reduce defects, improve cycle-time, and reduce waste.

Coaches: Provide support and direction to local leaders to identify important projects - improve customer satisfaction and business results.

Influencers: Selling the organization on the use of Continuous Improvement strategies and tools. Follow the methodology and help others to appreciate the power to improve.

Improvement Experts should not be viewed as “Fix-it Folks”

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GATHER EVALUATE TRANSFORM SUSTAIN

IMPROVEMENT IMPROVEMENT EXPERTSEXPERTS

PROCESS OWNERSPROCESS OWNERS

INVO

LVE M

E NT

TIME

Process Owners Must Own the Processes

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According to CSC Index, 73% of all change efforts FAIL.

Successful Change Requires:

Technical Solutions + Buy-In By Key Stakeholders = Effective Change Results

Business Excellence is a journey of change.....

Having Good Technical Solutions is the EASY part. Good, Buy-In Strategy is KEY.

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Some Precepts for Developing a Good Buy-In Strategy.....

Have well grounded, widely understood Vision and Strategies. What gets measured, gets done; what gets rewarded, stays done. High levels of trust and commitment must be achieved through

involvement. Roles and accountabilities must be clarified throughout the change

process - don't just expect people to know what to do. Listen carefully to key stakeholders, and satisfy their needs. Over-communication is impossible. Never underestimate individual resistance to change. Systems are getting what they were designed to get. Only management can change the systems.

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QualityImprovement

HighPerformance

People

Supply Chain

Management

MaximumSynergy

BusinessExcellence

The strategy is basic… Defect Reduction,Cycle-Time Reduction, Total People Involvement

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Operating Results

Opportunity Analysisand Prioritization

Resource Availability

Improvement Process

Skill Assessment

Resource Prioritization

Safety, Quality, Throughputand Cost Data

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OperatingResults

Gather Data

Evaluate Data

PrioritizeOpportunities

ImproveProcess

SustainImprovements

ContinuousImprovement