Khaled Mabrouk, Operational Engineering Leader Sustainable Productivity Solutions, Santa Cruz, CA.
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Transcript of Khaled Mabrouk, Operational Engineering Leader Sustainable Productivity Solutions, Santa Cruz, CA.
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Tips & Techniques for Instilling a Continuous Process Improvement (CPI) CultureKhaled Mabrouk, Operational Engineering LeaderSustainable Productivity Solutions, Santa Cruz, CA
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Presenter Background
B.S. Industrial Engineering - Purdue University
30 years experience improving processes in many industries
Part-time Industrial/Simulation Engineering Instructor
Areas of Expertise:
– Solving difficult operational capability problems
– Building CPI (continuous process improvement) Culture
– Coaching leaders on improving employee engagement
– Simulation Modeling and Analysis
Published 20+ papers
Professionally active; including IIE, 6 Sigma Conference Board
AerospaceAgricultureAppliance
AutoBanking
Call CentersConsumable
GoodsDesert Racing
Forest ProductsHigh Tech HW
InsuranceOffice Products
Placement Agency
Postal ServiceSoftware
Specialty CoffeeSteel
TransportationWarehousing
Waste Management
© Sustainable Productivity Solutions 2015ReduceOR.com
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Our Company
Our team utilizes an innovative & practical approach to deliver sustainable operational improvement solutions.
We Solve operational performance problems. Facilitate operational improvement teams. Train others to successfully apply operational improvement tools
– We work side-by-side with your team to:• Resolve difficult operational performance problems
• Streamline existing processes
• Instill a continuous process improvement culture
• Use simulation to optimize facility layouts and flows
– Training programs offered both in-house and publicly
Clients: Manufacturers, Produce Growers Shippers, and Railroaders.
Based in Santa Cruz, CA (Bay Area – Central Coast)
© Sustainable Productivity Solutions 2015ReduceOR.com
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© Sustainable Productivity Solutions 2015ReduceOR.com
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Presentation Agenda
Continuous Process Improvement Defined Page 5
Common Mistakes When Instilling CPI Page 19
Recommended CPI Strategy Page 29
CPI Implementation Examples Page 55
© Sustainable Productivity Solutions 2015ReduceOR.com
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Section Outline:Continuous Process Improvement
Defined
Review of 6 Major Efforts (so far) to improve the science of operational improvement
Continuous Process Improvement (CPI) Defined
Employee Engagement is Critical
© Sustainable Productivity Solutions 2015ReduceOR.com
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Review of 6 Major Efforts to Improve Science of IE
© Sustainable Productivity Solutions 2015ReduceOR.com
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Fredrick Taylor and Scientific Management
Time and Motion Studies
Fell in disfavor for having imageof treating people like machines
“Hawthorne Effect” raised awareness that how we treat frontline people matters
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Frank and Lillian Gilbreth
“Cheaper by the Dozen” book/movies based on their life
Formalized science ofIndustrial Engineering (IE)
Over time, IE expanded to include Operations Research, Ergonomics, Quality, etc.
© Sustainable Productivity Solutions 2015ReduceOR.com
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Toyota Production System (TPS)
Japanese manufacturing quality improved significantly from 50s’ to 80s’
Based mostly on Dr. Deming’sQuality Management System
Also based on Henry Ford’s (the first) philosophy of “go to the front lines for ideas to improve”
© Sustainable Productivity Solutions 2015ReduceOR.com
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Six Sigma
Started by Motorola(where is Motorola today? )
Popularized by GE CEO Jack Welchin his effort to improve decision makingby GE executives and leaders
Has grown to be mostly a certification program, with most of its benefits in the Marketing arena
© Sustainable Productivity Solutions 2015ReduceOR.com
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LEAN
Packaging of Toyota Production Systems techniques into “easy-to-understand and apply” tools
Basic Industrial Engineering
Best starting point because of its focus on quickly identifying “low hanging” fruit
© Sustainable Productivity Solutions 2015ReduceOR.com
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Continuous Process Improvement (CPI)
Based on Toyota Production System (TPS)
Requires use of both process tools (LEAN),and people tools (Intrinsic Motivation)
Culture varies by country+,thus don’t blindly follow TPS
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Improve Using LEAN, Evolve to CPI
Continuous Process Improvement (CPI)
LEAN1990s
Six Sigma (Motorola > GE) 1980s
Toyota Production System (TPS) 1950s
Industrial Engineering (Gilbreths) 1920s
Scientific Management (Fredrick Taylor) 1900s
© Sustainable Productivity Solutions 2015ReduceOR.com
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CPI Defined
© Sustainable Productivity Solutions 2015ReduceOR.com
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Continuous Process Improvement (CPI)Frontline teams:
Monitor their operation’s performance metrics
Prioritize operational improvement opportunities
Determine root cause of these operational challenges
Generate and test solutions to resolve these operational challenges
Select and sustain best solutions for these operational challenge
© Sustainable Productivity Solutions 2015ReduceOR.com
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Employee Engagement:From LEAN to CPI
© Sustainable Productivity Solutions 2015ReduceOR.com
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Employee Engagement is Critical
Actively engaged employees deliver greater results
Basic skills to kick start Employee Engagement:
– Publicly praise people
– Drive decision making downwards
– Go into conflict resolution without assuming
© Sustainable Productivity Solutions 2015ReduceOR.com
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Presentation Agenda
Continuous Process Improvement Defined Page 5
Common Mistakes When Instilling CPI Page 19
Recommended CPI Strategy Page 29
CPI Implementation Examples Page 55
© Sustainable Productivity Solutions 2015ReduceOR.com
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Section Outline:8 Common Mistakes When Implementing CPI
1) Focus on Training and Certification
2) Take a Cookie Cutter Approach
3) Heavy Focus on Marketing CPI Effort
4) Leaders Don’t Feel Need to Be Involved
5) Focus on Tools Only
6) Focus on Executive Level Metrics Only
7) Focus on $ Savings (vs. operating margin)
8) CPI Champion Manages Projects
© Sustainable Productivity Solutions 2015ReduceOR.com
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1. Focus On Training and Certification
Certification is seen as an excellent resume enhancer
Don’t know if person with certificate actually knows how to do anything
A common metric of success is number of people certified
Training is focused on teaching many tools
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2. Take a Cookie Cutter Approach
CPI champion learned how to do CPI once before, and has learned one way of implementing CPI
Select approach where Sensei shares wisdom, while berating leadership team
Ignore specifics of organization’s culture and needs
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3. Leaders don’t feel need to be involved
Leaders expect change to happen at front line only
Leaders not coachable
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4. Focus on Tools Only
Ignoring importance of engaging frontline in problem solving process
Don’t realize that there is a “culture/people” aspect to what they need to learn
Need to select path to CPI that fits our culture/people
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5. CPI Champion Manages Project
CPI champion should directly manage few projects
CPI champion needs to be an excellent teacher of CPI
“teach a man how to fish” (facilitate vs. do)
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6. Heavy Focus On Marketing CPI Effort
A lot of work is put into promoting CPI program before organization has had time to absorb concept
Creates a “program of the month” culture
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7. Focus on executive level metrics only
Tendency is to roll down metrics from above
Frontline metrics should have a direct impact on executive level metrics
Frontline metrics should assist frontline leaders in better managing their business
Use Control Charts to drive variability reduction
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8. Focus on $ Savings (vs. operating margin)
Focus on rationalizing with $ savings drives creative accounting
At end of the year, $ savings don’t all add up
Understand metrics that drive $ savings, and focus on improving those metrics
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Presentation Agenda
Continuous Process Improvement Defined Page 5
Common Mistakes When Instilling CPI Page 19
Recommended CPI Strategy Page 29
CPI Implementation Examples Page 55
© Sustainable Productivity Solutions 2015ReduceOR.com
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Section Outline:Strategy for Continuous Process Improvement
Focus on Both Culture Change and Tools Propagation
Become Process Driven, See The Process
LEAN Tools Eliminate Wasteful Activities
Proactively Problem Solve With Control Charts
People Drive the Process, Improve Employee Engagement
Put it all into action With Gemba Boards
© Sustainable Productivity Solutions 2015ReduceOR.com
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Focus on Both Culture Change
and Tools Propagation
© Sustainable Productivity Solutions 2015ReduceOR.com
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Building CPI Culture Requires BothCulture Change & Tools Propagation
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5SVisual Mgmt
7 WastesWork/ Wait
Value AddedData Collection & Analysis Pareto Charts
VSMID Failure Points
Root Cause Analysis- Fishbone
- FMEABest Practice Standard Work
Control ChartsID Leading Indicators
Mistake ProofingSMED
Line BalancingLevel LoadingPull Systems
Etc.
Kaizen
Solution Prioritization
Process Mapping
Sustaining Solutions Continuous Process Improvement
Using Gemba Walks
LEAN
CPI Culture
LEAN on Steriods
Leadership TeamChanges Behavior
Front Line TeamEngaged
Culture Change
Tools Propagation
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Building CPI Culture Requires BothCulture Change & Tools Propagation
© Sustainable Productivity Solutions 2015ReduceOR.com
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5SVisual Mgmt
7 WastesWork/ Wait
Value AddedData Collection & Analysis Pareto Charts
VSMID Failure Points
Root Cause Analysis- Fishbone
- FMEABest Practice Standard Work
Control ChartsID Leading Indicators
Mistake ProofingSMED
Line BalancingLevel LoadingPull Systems
Etc.
Kaizen
Solution Prioritization
Process Mapping
Sustaining Solutions Continuous Process Improvement
Using Gemba Walks
Tools Propagation
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Building CPI Culture Requires BothCulture Change & Tools Propagation
© Sustainable Productivity Solutions 2015ReduceOR.com
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LEAN
CPI Culture
LEAN on Steriods
Leadership TeamChanges Behavior
Front Line TeamEngaged
Culture Change
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1st Step is to See the Process
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Process Mapping – Field Equipment
Maintenance
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Equip. Breaks Down
Field Supervisor
notifies Maintenance
Mgr.
Field Supervisor collects preliminary data in support of
repair effort
Maintenance Mgr. assigns
work to Maintenance
Team
Maintenance Team
prepares truck for trip to breakdown
site
Maintenance Team drives to breakdown
site
Maintenance Team arrives at breakdown
site
Field Supervisor and
Maintenance Team exchange
information
Maintenance Team performs
triage
Are all required tools/
material available?
Can repair be
completed in
field?
Maintenance Team drives back to base
Maintenance Team retrieves missing tools
and/ or material
Maintenance Team drives
back to breakdown site
Arrange for equipment to be hauled to repair site
Maintenance Team starts
repair process
Maintenance Team completes repair process
As repair progresses, are there
other missing tools or
material?
Yes No
No
No
Yes
Yes
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Process Mapping – Growing Produce
Meet with sales team to verify
demand projections
Decide on desired volume for next
season
Meet with production team to discuss allocation of demand to land
Generate time to harvest estimates based on varieties, land base, & crops
Generate planting schedule based on
time to harvest estimates
Adjust planting schedule, as
needed
Grower schedules equipment and
labor resources for growing
Execute irrigation and other growing
practices, as needed
Generate tentative harvest schedule
Harvest manager and sales team meet to discuss
volume projection
Harvest manager schedules
equipment and labor resources for
harvesting
Finalize schedule one week before
harvest
Adjust schedule daily based on
communication between grower & harvest manager
Harvest fieldArrange for irrigation
Yes
Will field be
harvested again?
No
Prep land by adding compost,
gypsum, lime sulphur, as needed
Expect to adhere to planting
schedule most of the timeYesIs
projected planting time
after Spring? No Expect to deviate
from planting schedule due to
weather
List field Prep beds Plant field
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LEAN’s Focus:Reduce “wait” Time
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Value Added vs. Non-Value Added
Customer Value Added (CVA)– Must be performed to meet customer demands– Adds form or feature to end product– Customer is willing to pay for it
Business Value Added (BVA)– Required by business to execute VA work, but adds no value as far as
the customer is concerned– Usually includes activities that are required by law, related to
resource maintenance, or financial reporting
Non-Value Added (NVA)– Unnecessary, wasteful, not required – Rework, duplicate activities, idle time, overproduction, unnecessary
motion, over-processing (exceeding customer requirements), and unnecessary handling (inspection, paperwork, storing, retrieving, moving materials, etc.)
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7 Common Types of Waste (NVA)
Waste Description
Over Production Developing extra capabilities that are not necessary
Delay Being ready to move forward, but not having previous/next process activities complete
Transportation Transporting material/people multiple times out of habit (instead of necessity)
Over Processing Doing more work than required
Inventory Partially done work
Motion Excessive task switching
Defects Not having the time, tools, training, or focus to do it right the first time
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Reduce Wait Time and NVA Activities
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Control Charts:Pro-actively Problem Solve
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1st 1Step - Reduce Variability
1) Documented standard processes
2) Measure process adherence
3) Document contingency plans
4) Ensure clear communications
Daily Process Throughput
60
80
100
120
140
160
180
200
Passage of Time
Th
rup
ut
Daily Process Throughput
60
80
100
120
140
160
180
200
Passage of Time
Th
rup
ut
2nd Step - Improve Process
Identify causes of Signals and problem solve them.
signal
noise
Variability in an operation is buffered by some combination of: Increasing Inventory, Increasing Capacity, and/or Increasing Process Times
Control Charts Drive Improvement Focus
© Sustainable Productivity Solutions 2015ReduceOR.com
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Control Charts Monitor Leading Indicators
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Control Charts Reduce Fire-Fighting
© Sustainable Productivity Solutions 2015ReduceOR.com
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Build a Productivity Program
Use Control Charts to
track Leading Indicators
Problem Solve in Firefighting Mode
Proactively Problem Solve
NOYES
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Intrinsic Motivation Path:Improves Employee
Engagement
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Engagement by Job Level (Tower & Perrin 2003 Study)
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Job Level Actively Engaged
Actively Disengaged
Senior Executives 53% 4%
Directors, Managers 25% 10%
Supervisors, Foremen 18% 15%
Specialists, Professionals 16% 18%
Non-Management Salaried 14% 20%
Non- Management hourly 12% 25%
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Road to Self Management
TALL Hierarchies >>>>>>> Close Supervision
Close Supervision >>>>>>> Self Management
Self Management <<<<<<< Initiative + Commitment
Self Management:LEADERS >>>>>>> Information + AdviceWorkforce >>>>>>> Decide
Workforce Inspiration = Profit
© Sustainable Productivity Solutions 2015ReduceOR.com
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Transitioning to a CPI Culture
Do nottransitionin one step
Yell & ScreamCulture
Blame & ShameCulture
Process DrivenCulture
CI Culture
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Building Blocks for Intrinsic Rewards
Choice
• Delegated Authority• Trust in workers• Security (no punishment for honest
mistakes)• Clear purpose• Information
Competence
• Knowledge• Positive feedback• Skill recognition• Challenge• High, non-comparative standards
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Meaningfulness
• Non-cynical climate• Clearly defined passions• Exciting vision• Relevant task purpose• Whole tasks
Progress
• Collaborative climate• Milestones• Celebrations• Access to customers• Measurement of improvement
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Gemba Boards:LEAN on Steroids
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Gemba Boards Drive CPI Behavior
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CURRENT PROJECTS
• 2 – 3 projects
• Brief project descriptions
• Highlight progress/results to date
• Key contact
METRICS
• 5 – 7 metrics
• Use control charts spanning 60-day time periods
FUTURE PROJECTS
• Ideas
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Presentation Agenda
Continuous Process Improvement Defined Page 5
Common Mistakes When Instilling CPI Page 19
Recommended CPI Strategy Page 29
CPI Implementation Examples Page 55
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Section Outline:Continuous Process Improvement Examples
Organization new to CPI
Organization that has trained leaders on CPI
Organization not ready for CPI
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Case Study OneOrganization New to CPI
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Organization New to CPI
$50-100 Million per year family owned farming company.
Operations executive has experience with CPI at previous manufacturing companies he worked at.
Company has quadrupled in size in last 5 years, with significant future growth expected.
Approach:– Shadow executives to ascertain culture change needed
– Work with frontline teams to determine biggest issues
– Coach frontline managers as we develop Gemba Boards
– Focus on Improving Problem Solving and Employee Engagement skills
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Case Study TwoOrganization With CPI
Trained Leaders
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Organization That Has Trained Leaders
$100-500 Million per year family owned manufacturing company.
Operations leadership team has been CPI trained.
Company has quadrupled in size in last 5 years, with significant future growth expected.
Approach:– Convince leadership that they also need to change
– Work with frontline teams to determine biggest issues
– Coach frontline managers as we develop Gemba Boards
– Focus on Improving Problem Solving and Employee Engagement skills
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Case Study ThreeOrganization Not Ready for
CPI
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Organization Not Ready for CPI
$50-100 Million per year family owned manufacturer
Want to build CPI, but leadership team does not want to change.
Company is growing at a steady 10-15% pace.
Approach:– Help leadership team understand they are not ready for CPI
– Use individual improvement projects to establish base for CPI
– Develop plan for reducing employee disengagement
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Presentation Summary PointsBuilding a CPI Culture
Work on both culture and tools propagation
Be “Process Driven”
Use LEAN tools to eliminate waste
Use Control Charts to proactively problem solve
Increase use of Intrinsic Motivation
Use Gemba Boards to involve front line team
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LEAN
CPI Culture
LEAN on Steriods
Leadership TeamChanges Behavior
Front Line TeamEngaged
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Reference Books
“Creating a LEAN Culture,” David Mann, 2005.
“Intrinsic Motivation at Work,” Kenneth W. Thomas, 2002.
“Lean Six Sigma: Combining Six Sigma Quality with Lean Production,” Michael L. George, 2002
“Toyota Productions System: Beyond Large Scale Production,” Taiichi Ohno, 1988.
“The Toyota Way,” Jeffrey Liker, 2004.
“Understanding Variation: The key to Managing Chaos,” Donald J Wheeler, 2000
“Visual Workplace, Visual Thinking,” Gwendolyn D. Galsmith, 2005.
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