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  • Notes Say”Just by mapping our process, we found ways to improve it. This next technique is a process analysis tool that applies a rigorous test to process steps. By using this tool, we can get an idea of what our ideal process would be. The concept of “value” in this analysis is strict and precise: Value must be viewed in the eyes of the CUSTOMER. If an activity does not contribute to the end product or service being provided to the customer—or help them feel better about the experience—it’s probably Non-Value-Adding, or perhaps Value Enabling (which helps us better add value to the customer). Many business activities—for example, selecting new employees, purchasing supplies, balancing the books, may be critically important to the company, but are really not value-adding to the customer. Using this strict definition can help you look more honestly at work from the context of who benefits from it—and better prioritize time and resources.
  • Our human nature is often to jump to solutions. The DMAIC process forces us to let the data lead us to the root causes. The solutions can then be designed around the root causes, or Xs.

Transcript

  • 1. Baxter Business Excellence Model Michael R. Whisman Director, Quality Baxter Healthcare Corporation
  • 2. Michael (Mike) R. Whisman
    • Ex-Army Captain (Viet Nam Era)
    • Over 33 Years – Healthcare Industry (Manufacturing & QA)
    • 20 Years at Baxter
    • Baldrige Examiner (1997 – 2009)
    • Shingo Examiner (2005 – 2009)
    • ASQ ITEA Judge (2002 – 2009)
    • Chairman, ASQ Team & Workplace Excellence Forum (2008 – 2009)
    • BS – Management (Texas A&M)
    • MBA – Pepperdine Univ.
    • 6-Sigma Black Belt
    • Baxter Master Black Belt
    • 40 Years - Married – 2 Grown Kids, 1 New Grandson & Puppy
  • 3. Questions
    • How many are implementing models?
    • What kind of issues do you face?
    • How many believe you have to have support from the top to successfully implement?
    • Let’s take a look at the model we use at Baxter
  • 4. MODEL - OVERVIEW Baxter Business Excellence Model
  • 5. Value Streams & Key Metrics Lean Six Sigma Total Employee Involvement Improvement Opportunity Identification and Prioritization Strategic Challenges Tool Set Tangible, Verifiable Results Strategic Objectives A S S E S S A L I G N I N T E G R A T E Baxter Business Excellence Model Complete View DFSS / DMAIC Methodology
  • 6. Provides focus, ensures alignment of all employees towards common goals, time-tables and targets. TOOLS * Six Sigma – Variation ** Kaizen – Quick Change *** Lean – Waste Baxter Business Excellence Model With Pictures Value Streams & Key Metrics Lean Six Sigma Total Employee Involvement Improvement Opportunity Identification and Prioritization Strategic Challenges 6  * Kaizen ** Lean *** Tangible, Verifiable Results Strategic Objectives DFSS / DMAIC Methodology
  • 7. Strategic Challenges and Objectives Strategic Challenges Operational Supplier Business Organizational Competitor/Market 1. 2. 3. 4. 5. Strategic Objectives Note: Strategic Objectives can cover multiple Strategic Challenges 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Internal Strategic Challenges External Strategic Challenges Customer Key Strategic Challenges Key Strategic Objectives
  • 8. Map processes that support key strategic objectives and create customer value. Include baseline on key measures and targets for improvement; lead time, cost, quality, yield, etc. Baxter Business Excellence Model Value Streams & Key Metrics Lean Six Sigma Total Employee Involvement Improvement Opportunity Identification and Prioritization Strategic Challenges 6  Kaizen Lean Tangible, Verifiable Results Strategic Objectives DFSS / DMAIC Methodology
  • 9. Value Streams and Key Metrics Strategic Challenges Operational Supplier Business Organizational Competitor/Market 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Internal Strategic Challenges External Strategic Challenges Customer Key Strategic Challenges Key Strategic Objectives Key Metrics: 1, 2 1 1, 2 Targets: A, B A A, B
  • 10. Value Streams and Key Metrics Sales & Marketing Manufacturing Environment, Health, &Safety Finance Human Resources Supply Chain Quality & Regulatory Information Technology Product Development Move from departmental thinking…
  • 11. Value Creation Product Development Product Manufacturing Supply Chain Supplier Customer Information Technology Finance Human Resources Sales & Marketing EH&S Quality & Regulatory Value Streams and Key Metrics … .To process thinking driven by key metrics with customer and business excellence line-of-sight
  • 12. 50 min. 10 sec. 25 Min. 30 sec 25 min. 30 sec. 50 min 20 sec. Value Add Non-Value Add PCT = 151.5 mins VAT = 1.5 mins 50 units Distributors Sales Data Weekly Material Shipment Weekly Schedule 300 units 50 units 150 units Supplier Example Value Stream Map Process Step #1 Process Step #2 Process Step #4 I Market Intelligence Market Changes I Process Step #3 I I PRODUCTION CONTROL MRP C/T = 30 sec C/O = 1 hr Uptime = 75% Yield = 60% C/T = 30 sec C/O = 2 hr Uptime = 95% Yield = 80% C/T = 20 sec C/O = 2 hr Uptime = 80% Yield = 70% C/T = 10 sec C/O = 1 hr Uptime = 85% Yield = 70%
  • 13. Opportunity Identification Value Streams & Key Metrics Lean Six Sigma Total Employee Involvement Improvement Opportunity Identification and Prioritization Strategic Challenges 6  Kaizen Lean Tangible, Verifiable Results Strategic Objectives DFSS / DMAIC Methodology
  • 14. Value Stream Map: Three Primary Purposes Value Stream 1 Value Stream 2 Value Stream 3 2. To identify improvement opportunities through process understanding 3. To manage all improvement efforts toward meeting all key metric targets
    • To engage the organization in process thinking and continuous improvement
  • 15. Value Stream 1 Quick Hit Opportunity Identification, Prioritization and Project Selection 0-6 months future state 12 months future state 24 months future state 36 months ideal state Project Kaizen 6-Sigma Project Project 6-Sigma 6-Sigma Quick Hit 6-Sigma Kaizen Kaizen 6-Sigma Project Kaizen Project Measure Improvements Against Key Metrics and Strategic Objective
  • 16. Mechanism to drive improvement. Standardized methodology and language: Define, Measure, Analyze, Improve, Control. Lean Six Sigma Toolkit. Baxter Business Excellence Model Value Streams & Key Metrics Lean Six Sigma Total Employee Involvement Improvement Opportunity Identification and Prioritization Strategic Challenges 6s Kaizen Lean Tangible, Verifiable Results Strategic Objectives DFSS / DMAIC Methodology
  • 17. Value Analysis
    • Value Added Activities
      • Activities essential to deliver product or service according to customer requirements. Three criteria:
        • Transforms the item or service toward completion
        • Customer cares (would be willing to pay for it)
        • Done right the first time
    • Non-Value Added Activities
      • All other activities. These activities are considered waste.
  • 18.
      • Overproduction
      • Waiting
      • Transportation
      • Excess Motion
      • Injuries
      • Inadequate procedures/methods (processing waste)
      • Unplanned Activities (processing waste)
      • Inventory
      • Poor Communication
      • Defects (not meeting customer requirements)
      • Variation
    Baxter’s 11 Wastes Definition of Waste
      • Waste is anything other than the minimum amount of equipment, materials, parts, space, and worker’s time which are absolutely essential to add value to the product.
      • Shoichiro Toyoda - President, Toyota
  • 19. Lean Six Sigma Value Streams & Key Metrics Lean Six Sigma Total Employee Involvement Improvement Opportunity Identification and Prioritization Strategic Challenges 6  Kaizen Lean Tangible, Verifiable Results Strategic Objectives DFSS / DMAIC Methodology
  • 20. Tools
  • 21. What is Lean Six Sigma (LSS)?
    • Lean
    • A focus on waste elimination, standardization, cycle time reduction, smooth process flow etc.
    • Six Sigma
    • A focus on variation reduction that impedes optimized performance.
    Lean Six Sigma is a robust, data-driven approach to improve and manage key business processes.
  • 22. The Methodology: DMAIC
    • ...measure what you care about; know your measure is good...
    … look for root causes; generate a prioritized list ... determine and confirm the optimal solution ... … be sure the problem doesn’t come back... ... define the problem, clearly and related to customer... DEFINE CONTROL IMPROVE ANALYZE MEASURE IMPROVEMENT CYCLE MANAGE
  • 23. The Tools: LSS Toolkit Is/Is Not Diagram SIPOC Process Flow Chart Value Stream Map Kaizen 6S NPV Surveys VOC/CTQ Kano Model Boxplot Dotplot Charts Pareto Chart CTQ Project Y MSA Gage R&R Drilldown Process Capability Study Brainstorm Fishbone FMEA Affinity Multi-Voting Scatter Pareto Chart Fault Tree 5 Whys 6-Sigma Tests Takt Time DOE Mistake-Proofing Standard Work Flexible Workforce Visual Mgt. TPM Level Loading Pull/Kanban Control Plan Operating Procedures Revised Process F low Project Decom-missioning DEFINE MEASURE ANALYZE IMPROVE CONTROL
  • 24. Allocation of the appropriate resources and engagement of the entire organization. Baxter Business Excellence Model Achievement of results directly supporting the organization’s strategic objectives. Value Streams & Key Metrics Lean Six Sigma Total Employee Involvement Improvement Opportunity Identification and Prioritization Strategic Challenges 6  Kaizen Lean Tangible, Verifiable Results Strategic Objectives DFSS / DMAIC Methodology
  • 25. Business Excellence Model Align - Integrate - Assess Value Streams & Key Metrics Lean Six Sigma Total Employee Involvement Opportunity Identification, Prioritization, and Project Selection Strategic Challenges 6  Kaizen Lean Tangible, Verifiable Results Strategic Objectives A S S E S S A L I G N I N T E G R A T E DFSS / DMAIC Methodology Assess progress toward goals. Refine based upon results and changes to strategic challenges and strategic objectives.
  • 26. MODEL - DEPLOYMENT Baxter Efforts 25+ Years
  • 27. Questions
    • How many have tried to implement a business model in your company and were successful right out of the gate?
    • How many have tried to implement a business model and slammed full on into cultural issues:
      • We’re different
      • Tried it before and failed
      • That stuff won’t work here
    • How many have actually made some inroads with employees, only to see stubborn leaders kill the motivation?
  • 28. Deployment Resources & Brief History
    • Initiated QLP in mid-80’s – World-wide Deployment
      • QLP Sr. VP reporting to CEO – Millions in Funding
      • 64 Full time Director/Coaches to deploy program
      • All Leaders sent to Crosby School in Florida
    • Issues
      • Deployment to manufacturing world-wide. Division Leaders made an effort.
      • Merger of Baxter and American Hospital
      • Did not include Technical Areas (i.e. R&D, IT, Finance, etc.)
  • 29. Model History
    • Initiated QLP (Total Quality) in mid-80’s – World-wide Deployment
      • QLP Sr. VP reporting to CEO – Millions in Funding
      • 64 Full time Director/Coaches to deploy program
      • All Leaders sent to Crosby School in Florida
    • Initiated Baldrige Approach (1989) – Global intent
      • Deployment to manufacturing world-wide. Some Division Leaders were successful.
      • Four Full-time VP’s, an award office of staff & 200+ Examiners
      • Leaders asked “QLP or Baldrige, which one?
  • 30. Model History
    • Some Key Plants Initiated Shingo (2000)
      • Success - Manufacturing Plant Level
      • Not much interest elsewhere
    • Merged Shingo with Baldrige Approach (2005 – Present)
      • Builds on everything we learned thus far
      • Leaders at Many Levels of the Organization Interested
      • Lost enough, we are starting over in many areas
      • Manufacturing Plants – still generally the best examples
      • Great efforts being made in Quality Organizations
  • 31. Model History
    • Lean (2002)
      • Success in Some Manufacturing Plants
      • One Key Leader
    • Business Excellence (2002)
      • One Sr. VP reporting to Corp. Quality VP
      • Eleven Person Corporate Group – Five Guru’s with five coaches in training.
      • Strongest Support in Manufacturing & Quality
      • IT, Finance, Supply Chain, & a Division are Developing
  • 32. Pitfalls We Experienced
      • QLP - Not Training Everyone at Once
      • Baldrige Model – Placing it in competition with QLP
      • Seeing LEAN, Six Sigma, Kaizen, etc. as Models
      • Succession Planning – Failure to consider culture/style
      • Reduction in Organizational Resources
      • Decentralization
      • Program not reporting to the top
  • 33. What We Did Right
      • Stuck With IT – Saved Millions, Developed & Maintained a Core Competence in Manufacturing
      • Merged it all Together
        • QLP – Culture
        • Baldrige/Shingo Model – Fits Partial & Complete Organizations
        • 6-Sigma/Lean/Kaizen/Etc. as Tools
      • Implementation Anywhere There is Interest
      • Using Examples of Success to Tempt Leaders
      • Practicing What We Preach
      • Baxter is Charging for Success