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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 Business
Excellence
Quality Improvement Supply Chain Management
• Identify and Remove DEFECTS • Focus on value delivery system -
in all processes. supplier through customer.
• Increase capacity through • Use TIME as key performance metric -
better yields. Reduce CYCLE-TIME.
• Generate results by • Improve work flow.
reducing variation.

High Performance People

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

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 Values of a High Performance Organization...

 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

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Quality Improvement - Purpose.....

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  Constant Process

Satisfaction Measurement

 Defect Reduction  Defeat the Competition

 Yield Improvement  Gain Market share

 Higher Operating Income  Stay in Business

 Improved, Predictable
Capability

Quality Improvement Goals Are Directly and

Quantifiably Linked to those of the Business.

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 A SUMMARY OF THE IMPROVEMENT METHOD

Project Application
Phase 1: o Project Definition
Gather o Establish Process Capability
o Map the Process o Verification of Measurement Systems

Phase 2: Project Application

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

Phase 3: Project Application

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

Phase 4: Project Application

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

Celebration Final Report & Evaluation

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 ROLE OF IMPROVEMENT EXPERTS
Leaders: 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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Process Owners Must Own the Processes

IMPROVEMENT PROCESS OWNERS

EXPERTS

GATHER EVALUATE TRANSFORM SUSTAIN

TIME

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

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

Successful Change Requires:

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

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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 Business
Excellence

The strategy is basic… Defect Reduction,

Cycle-Time Reduction, Total People Involvement

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 Operating Results Resource Availability

Safety, Quality, Throughput

Skill Assessment
and Cost Data

Opportunity Analysis
Resource Prioritization
and Prioritization

Improvement Process
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 Operating
Results

Sustain
Gather Data
Improvements
Continuous
Improvement
Improve
Evaluate Data
Process

Prioritize
Opportunities

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