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Welcome Process Excellence and The Inspirational Leader: Enablers and Challenges Jay Watson Director, Process Excellence Development PortsAmerica, Chandler,

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Presentation on theme: "Welcome Process Excellence and The Inspirational Leader: Enablers and Challenges Jay Watson Director, Process Excellence Development PortsAmerica, Chandler,"— Presentation transcript:

1 Welcome Process Excellence and The Inspirational Leader: Enablers and Challenges Jay Watson Director, Process Excellence Development PortsAmerica, Chandler, AZ MA- Human Resources Development BS – Business Administration 35+ years experience: Flowserve, Siemens, GTE, Orbital Sciences, Motorola, Honeywell, GE … 1

2 Elevator Speech Process Excellence (P.E.) is a journey that will create a sustainable platform for – managing our current Business – preparing us for profitable growth By better understanding our processes, we can – implement changes that meet our Customers’ needs – improve them to create greater value Offering greater Value is a Competitive Advantage – P.E. directly benefits our Customers and Colleagues, making it easier for our Customers and efficient for us 2

3 Issues of Change Management 3

4 Elements of Change Management 4

5 KPI 5 Revenue Profits Growth Morale Turnover Costs

6 Start Here: Instill a C.I. Mentality 6 Continuous Improvement

7 Instill a C.I. Mentality 7 Continuous Improvement Ideal for Champions and Sponsors! Check Out: “What is Lean Six Sigma?” Mike George $ 15.00 $ 4.00 used

8 Evolution from Reactive to Preventive What are the indicators of a good day at work versus a bad day at work? Where are you in the spectrum of process management? 8 Fire-fightingProblem Based  What changes have occurred? Project Based  What can we improve upon? Process Based  What additional resources / synergies are available?  What is the immediate priority?

9 Among Other Things ‘Continuous Improvement’ is all about: Safety, Quality, Speed of Execution Respect for People (SHE) Improving performance by flawless execution (6S) Removal of waste to reduce time (Lean) Problem Solving Achieving rapid breakthrough improvement Applying advanced tools that work Making a positive and deep cultural change Getting Real Financial Results 9

10 Increase Value Add 10 How can we, as LEADERS … 1.Increase “Value-Add” 2.Reduce Waste and Variation 3.Inculcate Effective Problem Solving

11 Increase Value Add Won 2012 AMA Silver “Effie” Marketing Award 11

12 What is ‘Value Added’ Work Content? Must be performed to meet Customer needs Customer recognizes the value (willing to pay for it) Changes feature /product / data in a desired manner (Enhances form, fit, or function to the product / service) Processes that are done right the first time. (Enables service Quality, enables on-time or more competitive delivery, or has a positive impact on price competition) Increase Value Add

13 Definition of ‘Value Added’ Work Content Customer recognizes the value (willing to pay for it) Changes the product in a desired manner Processes that are done right the first time Ideally, running operations “Without the Cost of Waste …” Increase Value Add Do You or Your Team Think and Act this Way??

14 What is ‘Non-Value Added’? Non-Value Added Work Content Anything other than the minimum number of people; the minimum amount of effort, material, information, and equipment necessary to add value. Increase Value Add

15 INSPIRE! Instilling a ‘Can Do’ Attitude 15 Ideal for Champions and Sponsors! Check Out: “Lean Thinking” Womack and Jones $ 15.00 $ 6.00 used Check Out: “The Process Manager” www.pmi.co.uk $ 30.00 Increase Value Add

16 Enabler 1 Cross Functional Teams Why? One closest to the job, knows best how to improve it Two Heads are Better then One Adopt new ideas faster

17 Increase Value Add Challenge 1 Cross Functional Teams Why? Team members are scarce resources Time constraints Overcoming WIIFM

18 Increase Value Add Resource 1 Cross Functional Teams Check Out: “The Team Handbook” Joiner $ 35.00 $ 25.00 used

19 Increase Value Add Enabler 2 Value Stream Mapping Why? Identify Key Process Activities and focus on high value impact Understand Business outputs and value to Customer Improve end-to-end processes and standardize when possible Understand Inventories / Waste Simplify processes

20 Increase Value Add Challenge 2 Value Stream Mapping Why? Requires indoctrination Takes too long Looks and Feels ‘Foreign’

21 Increase Value Add Resource 2 Value Stream Mapping Lean Enterprise Institute www.lean.com Check Out: “Learning To See” Rother and Shook $ 50.00 $ 45.00 used

22 Increase Value Add 22 Enabler 3 Value Analysis of Process Steps / Process Map Why? “Process Analysis is the foundation toward achieving Process Excellence.” - Jay Watson Checkout http://www.youtube.com/watch?v=1rlyHYDCtr8

23 Increase Value Add 23 Challenge 3 Value Analysis Why? Value Analysis (VA) investigative techniques (analytical questioning) a “Lesser Known” skill set DEFINITION: “It improves the effectiveness of work that has been conventionally performed as it questions and probes into the very purpose, design, method of manufacture, etc., of the product / (service) with a view to pinpointing unnecessary costs (waste), obvious and hidden which can be eliminated without adversely affecting quality, efficiency, safety, and other customer features.”

24 Increase Value Add Resource 3 Value Analysis Simple critical thought and questioning techniques, applicable to any process needing improvement, are provided. http://www.freeleansite.com/training.html Refer to ‘Value Analysis / Flow Analysis’ power-point module Check Out: http://www.freeleansite.com/ http://www.freeleansite.com/ Jay Watson $ 0.00

25 3 take aways 25 How can we, as LEADERS … 1.Increase “Value-Add” 2.Reduce Waste and Variation 3.Inculcate Effective Problem Solving

26 Learn more about combining Lean, Six Sigma, and the Theory of Constraints (TOC): 26 Check Out: “Velocity” Jacob, Bergland, and Cox $ 20.00 $ 4.00 used Reduce Waste and Variation INSPIRE! Instilling a ‘Can Do’ Attitude

27 Enabler 1 5S Why? 5S is a visually-oriented system of cleanliness, organization, and arrangement designed to facilitate greater productivity, safety, and quality. Standardize workplace organizations: Have needed material, tools, supplies, and documentation at hand, organized, and identified Maintain a clean work area with tools and equipment in top condition Maintain a occupationally-safe, ESD-safe, FOD-free workplace Reduce Waste and Variation www.5ssupply.com

28 Reduce Waste and Variation Challenge 1 5S Why? Mistaken as Housekeeping Goes against culture (borrowing tools, looking for tools, et al) 5S tools no longer ‘personal’ People tend to slip back into their own habits We’re overly accepting of Little’s Law: # of things-in-process Avg. Lead Time (any process) = Avg. Completion Rate

29 Reduce Waste and Variation 29 Resource 1 5S Complimentary Material http://www.freeleansite.com/ $ 0.00

30 Reduce Waste and Variation Enabler 2 Lean, Green and Black Belt Development Why? Identify Key Process Activities and focus on high value impact Understand Business outputs and value to Customer Improve end-to-end processes and standardize when possible Understand Inventories / Waste Simplify processes

31 Reduce Waste and Variation Challenge 2 Lean, Green and Black Belt Development Why? Costly and Time consuming Don’t see Benefit Not sexy NIH

32 Reduce Waste and Variation 32 Resource 2 Six Sigma Consulting Service http://www.firefly-consulting.com/ $ 80,000.00

33 Reduce Waste and Variation 33 Resource 2a Lean Consulting Service www.velaction.com $ 250.00

34 Reduce Waste and Variation 34 Resource 2b Complimentary Lean Enterprise Material http://www.freeleansite.com/ $ 0.00 Jay Arthur $ 9.95 http://www.qimacros.com/store/proddetail.php?prod=206

35 Reduce Waste and Variation Enabler 3 Specialized Skills Development Why? Different Process Paths / Types Identified Process Flow / Bottlenecks (Theory of Constraints) Process Optimization (Six Sigma)

36 Reduce Waste and Variation Challenge 3 Specialized Skills Development Why? Change resistance http://www- 935.ibm.com/services/us/ceo/leansixsigma/pdf/CLB_Topic_1_IBM_Smarter_Leadership_in_ the_New_Economic_Environment.pdf

37 Tough Questions to Consider (from IBM prezo) 37 How will you develop the critical capabilities to enhance creativity among your leadership? In what ways can you explore, reward and integrate diverse and unconventional points of view? What is your approach to evaluate every element of your business model to get the most from currently untapped opportunities? How will you leverage new communication styles, technologies and tools, both to lead a new generation of talent and encourage breakthrough thinking? Reduce Waste and Variation

38 38 Resource 3 TOC Consulting Service http://www.goldratt.com/ AGI Goldratt Institute: “What To Change?” “What To Change To?” “How To Cause The Change?”

39 Reduce Waste and Variation 39 Resource 3a Six Sigma Six Sigma Breakthrough Technologies, Inc. http://sbtionline.com/ Breakthrough Management Group, Inc. http://www.bmgi.com/ Smarter Solutions, Inc. https://www.smartersolutions.com/index.php Six Sigma Qualtec http://www.ssqi.com/ Pyzdek Institute http://www.sixsigmatraining.org/ “Will six sigma companies get more valuation in the marketplace? Not unless they produce results. You can’t put up a slogan that says we are a six sigma company and think the pe is going to move.”pe - Jack Welch

40 Reduce Waste and Variation 40 Resource 3a continued... Six Sigma Rath and Strong Management Consultants http://www.rathstrong.com/ Oriel Stat A Matrix http://www.orielstat.com/lean-six-sigma Bain and Co. http://www.bain.com/index.aspx TBM Consulting Group http://www.tbmcg.com/ Novaces http://www.novaces.com/lean-six-sigma-implementation.php

41 Reduce Waste and Variation 41 Resource 3a continued... Six Sigma SSA and Co. (formerly Six Sigma Academy) http://www.ssaandco.com/ Accenture http://www.accenture.com/us-en/Pages/service-process-innovation-lean- six-sigma.aspx Booze Allen Hamilton http://www.boozallen.com/ Pivotal Resources http://www.pivotalresources.com/ Air Academy Associates (Knowledge Based Management) http://www.airacad.com/Home.aspx

42 42 Different Way of Thinking (Stevedore example) Reduce vessel start times from 24 minutes to 15 minutes Practical Problem Statistical Problem Statistical Solution Practical Solution Vessel Start times are slower than expected The assignment of the first move is statistically significant to vessel start times First move for UTRs given at gate entrance, instead of at vessel

43 3 take aways 43 How can we, as LEADERS … 1.Increase “Value-Add” 2.Reduce Waste and Variation 3.Inculcate Effective Problem Solving

44 Learn and utilize 7 Greatest ‘Ideation’ techniques: 1) Questioning Assumptions 2) Opportunity Redefinition 3) Wishing 4) Triggered Brainwalking 5) Semantic Intuition 6) Picture Prompts 7) Worst Idea 44 Inculcate Effective Problem Solving INSPIRE! Instilling a ‘Can Do’ Attitude

45 Think Again … 1) Questioning Assumptions 2) Opportunity Redefinition 3) Wishing 4) Triggered Brainwalking 5) Semantic Intuition 6) Picture Prompts 7) Worst Idea 45 Check Out: “Idea Stormers” Bryan W. Mattimore $ 30.00 $ 13.50 used “ Thinkertoys ” Michael Michalko $ 20.00 $ 6.66 used Inculcate Effective Problem Solving

46 Enabler 1 Capture Problems (A3) Why? Only Thinking Drives Sustainable Change A3 formats are a waste-free way for report writing and communication “By standardizing and making visible the process of identifying problems and formulating solutions, individuals and companies can execute to their ideal state.” - Jamie Flinchbaugh Author, “A3 Problem Solving” Applying Lean Thinking

47 Inculcate Effective Problem Solving Challenge 1 Capture Problems (A3) Why? Confusing (Definition and Use) A3s evolved from the Toyota Production System in the early 1960s as a simple, concise method for process improvement. The designation “A3” stands for the international size of the paper (11” x 17”) used to capture all the important information for easy understanding and decision making. The key element is not the form itself but the thinking that goes into the problem analysis and resolution practice. Common uses for A3s include: problem solving, proposals, project status and even value stream maps or hoshin planning.

48 Inculcate Effective Problem Solving 48 Resource 1 Capture Problems (A3) For today's challenging business cycle, the A3 approach can offer faster, less bureaucratic results, building on more frequent cycles of learning through revision than DMAIC. “Managing to Learn” John Shook $ 50.00 $ 40.00 used “Understanding A3 Thinking” Sobek and Smalley $ 38.00 $ 29.00 used

49 Inculcate Effective Problem Solving Enabler 2 Ideation Workout Why? Identify Key Process Activities and focus on high value impact Understand Business outputs and value to Customer Improve end-to-end processes and standardize when possible Understand Inventories / Waste Simplify processes

50 Inculcate Effective Problem Solving 50 Challenge 2 Ideation Workout Why? People are comfortable Never asked to think No Follow-through

51 Inculcate Effective Problem Solving 51 Resource 2 Problem Solving (Memory Jogger) http://www.goalqpc.com/shop_products.cfm Goal QPC or amazon.com $ 20.00 $ 3.00 used

52 Enabler 3 Problem Solving (Advanced) Why? If there were no barriers in the way of achieving a goal, then there would be no problem. Problem solving involves overcoming the barriers or obstacles that prevent the immediate achievement of goals. Find more at: http://www.skillsyouneed.co.uk/IPS/ProblemSolving.html#ixzz2FXoPrrHo http://www.skillsyouneed.co.uk/IPS/ProblemSolving.html#ixzz2FXoPrrHo Inculcate Effective Problem Solving

53 Challenge 3 Problem Solving (Advanced) Why? “We believe, to do well into the future, companies must resolve that problem-solving is the key to business, then develop a robust problem-solving capability at all levels.” -BMGI (article) There are a number of different obstacles that can interfere with our ability to solve a problem quickly and efficiently. Researchers have described a number of these mental obstacles, which include functional fixedness, irrelevant information, and assumptions. -Kendra Cherry (article) Inculcate Effective Problem Solving

54 54 Resource 3 Problem Solving (Advanced) Kepner Tregoe (K-T) decision making is a structured methodology for gathering information and prioritizing and evaluating it. It was developed by Charles H. Kepner and Benjamin B. Tregoe in the 1960’s. This is a rational model that is well respected in business management circles.rational model http://www.kepner-tregoe.com/

55 Inculcate Effective Problem Solving 55 Resource 3a 8D A popular method for problem solving because it is reasonably easy to teach and effective. 8D uses composite problem solving methodology, by borrowing tools and techniques from various approaches. The original 8D process was pioneered by Ford Motor Company and called TOPS (Team Oriented Problem Solving). http://en.wikipedia.org/wiki/Eight_Disciplines_Problem_Solving Parallel Thinking http://www.debonoconsulting.com/six_thinking_hats.asp TRIZ http://www.aitriz.org/

56 3 take aways 56 Through Improvement Initiatives we, as LEADERS can … 1.Increase “Value-Add” 2.Reduce Waste and Variation 3.Inculcate Effective Problem Solving

57 Git-R-Done 57 1) Develop the ability: To recognize and identify waste To have to courage to call it waste To have the desire to eliminate it 2) Eliminate the waste! 3) Truly understand that variability: – Raises costs – Produces no corresponding benefit – Threatens all of our jobs

58 INSPIRE! Instilling a ‘Can Do’ Attitude Learn more about Change Management: 58 Check Out: “Leading Change” John P. Kotter $15.00 - $18.00 Git-R-Done Check Out: “The Spirit of Kaizen” Dr. Robert Maurer $9.00 - $14.00

59 59 “ Products and services commoditize at such a rapid rate that in the end, the only competitive advantage you have is speed, talent, and brand.” - John Chambers, CEO, Cisco You can do this! … Questions? Need Help? Call … 480-820-0877 HOME 480-496-7008 OFFICE 480-249-2326 CELL Git-R-Done e-mail … jay.watson.tempe@cox.net jay.watson@freeleansite.com jay.watson@portsamerica.com

60 Safe Travels Process Excellence and The Inspirational Leader: Enablers and Challenges Jay Watson Director, Process Excellence Development PortsAmerica, Chandler, AZ MA- Human Resources Development BS – Business Administration 35+ years experience: Flowserve, Siemens, GTE, Orbital Sciences, Motorola, Honeywell, GE … 60


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