TLS - Integrating Tools for Big Results
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Transcript of TLS - Integrating Tools for Big Results
http://pinnacle-strategies.com1
TLS – Integrating Tools for Big Results
Mark Woeppel, Pinnacle Strategies http://pinnacle-strategies.com
“Brilliant process management is our strategy. We get brilliant results from average people
managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people
managing broken processes.”
http://pinnacle-strategies.com 4
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• Theory of Constraints
T• Lean
L
• Six Sigma
S
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An Integrated Approach
• Continuous Improvement• Makes CI a profit center
A System
• Governance• Strategic deployment• Aligns local efforts with
overall strategy
What is TLS?
http://pinnacle-strategies.com
TLS supports different situations with specific tools for that situation.
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Theory of Constraints
It’s about focus and synchronization
20 25 10 12 16Levera
ge Point
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Lean Principles
SPECIFY VALUE
IDENTIFY VALUE
STREAM
FlowCUSTOMER PULL LEAN
Pursue Perfection
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Six Sigma PrinciplesBefore you improve a process, stabilize
Use empirical data
Y=f(x)
Effective Project Management
Customers feel the variance, not the mean
Every project must be financially driven
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TLS
Six SigmaReduce
Variation
LeanReduce Waste
ToCSystemic Alignment
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TLS •Create Structure for CI Governance & Align Goals
ToC •Identify the Constraint & Stabilize the Global Process
Lean •Drive Out Wastes at the Constraint (Exploit)
6 Sigma •Drive Out Process Variation at and Around the Constraint
ToC •Subordinate, Elevate the Constraint•Identify the new constraint
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Sanmina-SCI DOE Results
Lean Six Sigma TLS0
0.5
1
1.5
2
2.5
3
3.5
4
TLS returned 3.9 times more than Lean or Six
Sigma
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Contribution to Results
89%
7%
4%
% of Savings Contribution
TLS
Six Sigma
Lean
89% of benefits came from 6 of the 21 plants
using TLS
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The Improvement Challenge
“All IMPROVEMENTS results from a CHANGE to the
process….
But not all CHANGES result in an improvement….
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The Traditional Approach to Improvement
“A cent plus a cent plus a… will accumulate to a fortune…”
Realist
Global Improvement = ∑ Local Improvement
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The Systems Approach to Improvement
“If I find the leverage point I can move the earth...”
Archimedes
Global Improvement ∑ Local Improvement
20 25 10 12 16Leverage Point
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CI Methods In Use
Lean TQM Six Sigma
TPS TOC Agile Other None0%
10%
20%
30%
40%
50%
60%
70%70%
34%29%
17%14%
6%
15%12%
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Progress Toward World Class?
None Some Significant Full0
10
20
30
40
50
60
70
12.8
61.1
24.2
1.9
20
The goal is to create improvement
Create systematic
improvement s
A
CI Projects focus on biggest time
sinks
D
CI Teams get results
BThe Troops
21
Improve the things that are important to the business.
Create systematic
improvement s
A
CI Teams are focused on
business needsC
CI Projects do not focus on biggest
time sinksD’
The Leadership
22
We have a problem!
Create systematic
improvement s
A
CI Teams are focused on
business needsC
CI Projects focus on biggest time
sinks
D
CI Teams get results
B
CI Projects do not focus on biggest
time sinksD’
The Troops
The Leadership
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The Existing Solution & Its Effects
People are cynical about
CI
Management is frustrated
Management does not
support CI efforts
Overall company
performance does not improve
Difficult implementatio
ns
Many projects do not
achieve resultsCI Projects
focus on biggest time
sinks
D
CI Projects do not focus on biggest time
sinksD’
Focus on the large time sinks
unless there is a major problem
Resistance to change
The problems still exist
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What’s wrong with the conventional approach to CI?
Time spent at every resource is a major waste
Create systematic
improvement s
A
CI Teams are focused on
business needsC
CI Projects focus on biggest time
sinks
D
CI Teams get results
B
CI Projects do not focus on biggest
time sinksD’
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Only the projects focused on the leverage point have any return.
20 25 10 12 16Leverage Point
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The Biggest Obstacle to CI Program Success?
Reason Cited0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%Middle Management Resistance
Lack of Know How
Employee Resistance
Supervisor Resistance
Lack of Criteria
Backsliding
Unknown
Flavor of the Month
Financial Value Not Recognized
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Malcolm Baldrige Research ResultsIs there a causal link between the Baldrige Criteria and actual performance of firms?
Leadership is the most important driver of system performance
Information and Analysis is the second most important
Process Management is twice as important when predicting customer satisfaction as when predicting financial results
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The Reasons for Unsatisfactory Results?
Projects not geared towards the bottom line (phantom cost savings)
Lack of focus
Emphasis on tools, not results
Lack of leadership of CI ProcessNo structure to reinforce improvements or manage improvement process
Accountability for sustained improvements is not clear
No alignment with global goals or strategy
Teams are “self-directed”, not led
TLS Process Addresses the Core Problems
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Tools – Create Alignment
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Commissioning / Governance
Visual Display
Measurements Analysis
Constraint Analysis
G e t i t D o n e
G e t Re s u l t s
B r e a k B a r r i e r s
CHAMPIONS
LEADERS
PRACTITIONERS
APPLICATORS
EXPERTS FINANCE
Tools – Stabilize The Delivery Process
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D1 D2 D3 D4 D50
100
200
300
400
500
Buffer Management
Level Loading / BalancingSDBR – Pull System
Drive Waste Out of the Process
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Process Mapping
Desired
Result
Cause and Effect Analysis
Texas Style QFD
Process
Output Process Input (OPI)
Who are the customers?
What do they want/need?
How are the needs met?
Purchasers of ice cream
Taste Ingredients
Quantity for price
Provide consistent weight
Packaging appeal
Shape, size, art work, color, verbiage
Texture / visual Air, fat content, Consistency
Order
Step 1
Step 2
Step 3 Cash
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Drive Variation Out of the Process
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Desired Result
Process Variables either as Noise or Constant
Visual Work Instructions
Run / SPC charts
?Variable Characterization
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The Path Forward
Create Alignment
Sponsorship of Senior Manager
CI Team leader chosen (Process
Manager)
Tools training – simple applications
Metrics alignment / Strategic linkage
Project list created
Apply Tools to the Process
Stabilize Order Fulfillment
Visual Measurements
Process Mapping
1st project completed
successfully
Stabilize
Celebrate
Next level of training
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The Path Forward
1st project completed
successfully
Next level of training
Go back the beginning
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TLS – A Synergistic Solution
The Causes
Focusing on the wrong things
No system to produce improvements
No linkage to global strategies
Un-Synchronized improvement teams
No change in culture
The SolutionsFocus on the constraint
Continuous Improvement system with clear accountability
Projects deployed to constraint processes
Each CI initiative tied to process manager
Approach CI as a culture shift TLS
ToCSystemic Alignment
LeanReduce Waste
Six SigmaReduce
Variation
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TLS Benefits
Fast, significant improvements as measured by the global metrics of Net Profit and ROI
Overall company performance improves
People are have tools to improve their sphere of process influence
A culture of continuous improvement exists
Significant progress towards world class with
ZERO capital investment
“Brilliant process management is our strategy. We get brilliant results from average people managing
brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people
managing broken processes.”
http://pinnacle-strategies.com 40
More information about TLS
http://pinnacle-srategies.com/BusinessExcellence.htm