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April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 1 Behavior-Based Performance Excellence Fuller, Jones & Associates,

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Presentation on theme: "April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 1 Behavior-Based Performance Excellence Fuller, Jones & Associates,"— Presentation transcript:

1 April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 1 Behavior-Based Performance Excellence Fuller, Jones & Associates, Inc. “A Radically Simple Approach to Improving Performance”

2 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 2 Leading Enterprises … Identify and Avoid Unnecessary Costs Identify and Avoid Unnecessary Costs Maintain Superior Levels of Customer Satisfaction Maintain Superior Levels of Customer Satisfaction Optimize Organizational Performance Optimize Organizational Performance What Are the Barriers to Achieving the Above?

3 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 3 What Are The Barriers To Success? Business flows (inputs) Performance indicators (outputs) (outputs) System Barriers People and process MaterialMaterial InformationInformation QualityQuality CostCost TimeTime Waste Focus of Lean Variability Focus of 6  Inflexibility Focus of Theory Of Constraints Feedback Loop Waste = High Cost Variability = Low Customer Satisfaction Inflexibility = Sub-optimization

4 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 4 The Manifestation of Barriers “The Iceberg Analogy” Cost Of Poor Quality “Above The Waterline” ~5% of Operating Expense * Examples: Scrap Scrap Rework Rework Downtime Downtime Warranty Warranty Cost Of Poor Quality “Below The Waterline” ~35% of Operating Expense * Examples: Incorrect BillingIncorrect Billing Improper ToolsImproper Tools Lack of TrainingLack of Training OvertimeOvertime Unclear RequirementsUnclear Requirements Absenteeism / TardinessAbsenteeism / Tardiness Lack of ProcessLack of Process AccidentsAccidents Does Your Organization Understand the Hidden COST of Poor Quality? * Philip Crosby & Associates Estimate

5 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 5 What Choices Existed Before BBPE? Many Choices To Traditional Approaches, All Essentially The Same

6 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 6 Drawbacks to the Traditional Approaches Many Of The Drawbacks To 6 , Lean, etc Are Attributable To The Overemphasis Given To Sophisticated, Rarely Used Tools. Why Can’t You…  Leverage existing people/practices  Have management lead and train their employees  Deploy in all areas at once, with focus on key problems  Use your existing infrastructure  Reduce problem solving cycles  Generate results beyond traditional expectations  Transform management and staff behaviors

7 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 7 Responding to Industry’s Needs The Evolution of Performance Excellence (PE)Criteria Measures Of Success & Deployment Traditional PE Methods BBPE Training time 80~160 hours 8-12 hours Trainers External Experts Managers and Leaders Org. Knowledge Transfer Low – stays with a few experts High – deploys across an enterprise Project Cycle time 4-6 months 4- 6 weeks Program Scalability Few “Experts” Enterprise-wide Types of Defects/Symptoms Addressed 6  - Process Variability 6  - Process Variability Lean – Process Waste Lean – Process Waste TOC – Process Inflexibility TOC – Process Inflexibility BBPE draws best practices from all PE methodologies This Evolution From Contemporary Tools To Progressive Behavior Change Is Achieving Greater Results In Shorter Time In All Areas

8 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 8 The BBPE methodology contains two key components: Process Management: Changes leadership and management practice behaviors Process Improvement: Changes problem solving behaviors What is Behavior-Based Performance Excellence?

9 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 9 The Behavior-Based Performance Excellence Model Behavior-Based Process Improvement Review Performance And Identify Opportunities Identify Key Process Leverage Points Document and Benchmark Process, Metrics & Objectives Process Management Activities Process Improvement Activities

10 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 10 Combining Process Creation and Process Improvement Improve Existing Process/Product Design/Develop New Process/Product More Improvement Needed? Yes Monitor No Select Significantly New Feature / Process Yes No

11 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 11 Behavior-Based Process Creation StepsDeliverablesTools Select Problem Measure Problem Solving Behavior… Define and Contain the Problem Measure the Problem … Through Key Deliverables … Root Cause Analysis Implement and Assess Solution … At Every Step Control and Standardize Solution Typically Requires Only Basic Tools Such As Run Charts, Run Charts, Pareto Charts, Pareto Charts, 5-Why Analysis, 5-Why Analysis, Basic Stat, Basic Stat, Simple DOE, Simple DOE, etc etc

12 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 12 Behavior-Based Process Improvement StepsDeliverablesTools Select Problem Measure Problem Solving Behavior… Define and Contain the Problem Measure the Problem … Through Key Deliverables … Root Cause Analysis Implement and Assess Solution … At Every Step Control and Standardize Solution Typically Requires Only Basic Tools Such As Run Charts, Run Charts, Pareto Charts, Pareto Charts, 5-Why Analysis, 5-Why Analysis, Value Stream, Value Stream, Risk Analysis, Risk Analysis, etc etc

13 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 13 BBPE Optimizes Cost, Time, Effectiveness and Development Problem Solving Effectiveness Training Cost High Low High Cycle Time Long (months) Short (weeks) PDCA 7-Step 8D TOC Traditional Black Belt Six Sigma Training Business Process Reengineering Traditional Green Belt Six Sigma Training Behavior-Based Performance Excellence Training Better Leadership / Organizational Development Low High Better Traditional Lean Manufacturing Training

14 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 14 BBPE Is Highly Effective Works Across the Enterprise Employees, Managers, Leaders all follow the same methodology BBPE permanently changes behavior and the way staff do their jobs each day Eliminates process waste and reduces variability Solves problems for the “last” time Identifies and develops future leaders BBPE Is Based On An Integration Of Best Practices From Leading Process Excellence Methods

15 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 15 BBPE Enables More Rapid Leadership and Organizational Development Open minded, willing and able to change Data driven, process oriented Customer focused Must be able to teach, then learn, then teach and be an effective coach Consistently models winning behaviors BBPE Supports Organizational Transformation and Leadership Development: Skills And Traits Of Successful Leaders Include: Facilitates top-down and bottom-up change across the organization Facilitates top-down and bottom-up change across the organization Identifies and develops the next generation of leaders Identifies and develops the next generation of leaders Compliments other leadership development programs Compliments other leadership development programs Leaders serve as the problem solving experts capable of leading and training their own team Leaders serve as the problem solving experts capable of leading and training their own team Problem solving behaviors demonstrated as part of their normal work activity Problem solving behaviors demonstrated as part of their normal work activity

16 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 16 Many leading Fortune 100 and 500 Companies including: Lexar MediaLockheed Martin Cisco SystemsSeagate Technology Extreme NetworksSolectron Corporation GMAC MortgageSonyBMG, USA Ingram Micro LogisticsArvato Services, Inc. Lawrence Livermore LabPeopleSoft Sony PicturesIntuit CholestechSonyBMG, International FJ&A Experience Deploying Performance Excellence High Tech, Software, Medical, Finance, Defense, Entertainment, Manufacturing

17 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 17 BBPE Success Stories – Achieving Results in 6-8 Wks, by Regular Staff as Part of Their Normal Work Improved Customer Fulfillment to 99.7% from 89% Improved Customer Fulfillment to 99.7% from 89% –Conventional Wisdom: Most orders arriving were incomplete –FJ&A approach showed missing information not an issue; equipment and timeliness of information were the major obstacles Reduced Cycle Time Avg, Variability & WIP 50% Reduced Cycle Time Avg, Variability & WIP 50% –Conventional Wisdom: Testing equipment was a bottleneck, needed to purchase more equipment and hire more people –FJ&A approach showed test equipment idle ~50% of the time; upstream product grouping and synchronization were the primary issues Reduced Complaint Mean Time To Resolution (MTTR) by 50% Reduced Complaint Mean Time To Resolution (MTTR) by 50% – Conventional Wisdom: People not working hard enough or competent – FJ&A approach showed no clear operational definitions for prioritizing, navigating and escalating issues Business Goal Returns Rate of < 12% from 19% Business Goal Returns Rate of < 12% from 19% –Conventional Wisdom: Industry is too unpredictable to manage shipments –FJ&A approach showed initial shipment sell-off highly variable but initial ship eventually consumed, and reshipments recreated exposure and very predictable

18 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 18 Thank You! FULLER, JONES & ASSOCIATES, INC Pimlico Drive, Suite 114 Pleasanton, CA Tel: Fax: Dr. Howard T. Fuller Dr. Howard T. Fuller Andrew M. Jones, MBA Direct: Direct:

19 FJA April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 19 Dr. Howard T. Fuller: –Corporate VP of Quality & Reliability – SanDisk –Corporate VP of Quality & Functional Excellence – Solectron Corporation –Corporate Director of Design For Six Sigma – Seagate Technology –Manager, Process Improvement – LifeScan, a Johnson & Johnson Co. –Adjunct Professor at San Jose State University ISE –Ph.D. in Quality Engineering, M.S. in Math/Statistics –Published over 25 papers in leading journals Andrew M. Jones, MBA: –Director, Process Excellence - Intuit –Director, Performance Improvement Office – GMAC Mortgage –Sr. Manager, Business Process Development Group - Cisco –Consultant, Reengineering & Change Management Office – Sony Pictures –Sr. Examiner, Baldrige National Quality Program –Six Sigma Program Manager, Master Black Belt –MBA, International Business Background


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