Continuous Improvement: Change that works David Cesar Director, SS&G Parkland

Why continuous improvement? 2 Aggressive Competitors Market Uncertainty Increasing Costs Global Market Demanding Customers Harder to Find Good Talent Difficult Lenders Margin Compression Gov. Regulations Changing Technology

Don’t allow your success to depend on who is gunning for you 3

Simple definition 4 Continuous improvement is systematically identifying and eliminating waste as quickly as possible and at the lowest possible cost Every process has waste Customers don’t pay for waste, YOU DO 7 types of waste – Overproduction – Inventory/WIP – Unnecessary motion – Waiting – Transportation – Over processing – Defects/rework/repairs

Key features 5 Break processes down to bite-sized pieces (manageable and easy to understand) Continuous improvement is change employees accept ‒Improvements are based on many small changes rather than the drastic changes ‒As the ideas come from the workers themselves, they are less likely to be radically different and easier to implement (employee involvement) ‒Encourages workers to take ownership for their work, and can help reinforce teamwork and improve worker motivation

Key features – process vs. results 6 Results are ALWAYS historical – Yesterday – Last week – Last month Improved RESULTS can ONLY be obtained by improving the PROCESS The PROCESS is NOW!

Wanting a different result and not looking at processes has been defined 7

Key feature – speak with data 8 Improving a process and increasing efficiency is achieved through speaking with data Don’t assume – Go and see; observe and measure Analyze data Make decisions with data Take action based on data Check results with data

CI Team – internal supplier, internal customer, and worker(s) 9 Continuous Improvement Assess/ Reassess Plan and Design (brainstorm) Implement Evaluate/ Validate

Key performance indicators 10 Business truism – What gets measured gets improved Measuring for the sake of measuring will not improve results An employee or team within the company needs to own each measurable being tracked and MUST have the ability to influence the result The KPIs chosen need to directly impact performance — the bottom line

What is the outcome 11 Improved competitiveness Increased profitability – Doing more with the same – Doing the same with less Employees who are involved – doing their jobs better, faster with the goal in mind

Keys to success 12 Create a sense of urgency, have a vision, and communicate it continuously Knock down the roadblocks to your employees success Don’t declare victory too soon. Ask your managers every day, every week, every month what have we done to improve our processes/performance

When aiming for your competitors, which are you? 13