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Business Performance Improvement Models
 

Business Performance Improvement Models

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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/business-performance-improvement-models-218

This presentation is a collection of PowerPoint diagrams and templates used to convey 25 different business performance improvement models.

Models/frameworks include the following:
1. ISO 9001 Quality Management Model
2. Baldrige Performance Excellence Model
3. EFQM Business Excellence Model
4. Balanced Scorecard
5. Benchmarking Model
6. Lean Management Model (TPS)
7. Lean Leadership & Kaizen Model
8. Value Stream Mapping
9. Eight Types of Waste
10. Lean Levers
11. Gemba Framework
12. Cause & Effect Diagram
13. 5S Principles
14. Plan-Do-Check-Act Model
15. PDCA Problem Solving Process
16. Total Productive Maintenance (TPM) Pillars
17. DMAIC Process Improvement Model
18. Law of 10
19. Training Within Industry (TWI)
20. A3 Storyboard Template
21. PACE Prioritization Matrix
22. Payoff Evaluation Matrix
23. Cost of Quality Model
24. SERVQUAL Model
25. Change Management Model

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    Business Performance Improvement Models Business Performance Improvement Models Presentation Transcript

    • © Operational Excellence Consulting. All rights reserved. This presentation is a collection of PowerPoint diagrams and templates used to convey 25 different business performance improvement models. Business Performance Improvement Models Diagrams and Templates of Business Performance Improvement Models
    • © Operational Excellence Consulting. All rights reserved. 3 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 5 ISO 9001 quality management system establishes proven processes that meet customer requirements Value-adding activities Information flow Input Output Product/ service Product/ service Continual improvement of the Quality Management System Continual improvement of the Quality Management System CustomerRequirementsCustomerRequirements CustomerSatisfactionCustomerSatisfaction Management Responsibility Resource management Measurement, analysis & improvement Product realization
    • © Operational Excellence Consulting. All rights reserved. 7 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 9 Insert Header 4 Measurement, Analysis & Knowledge Management 4 Measurement, Analysis & Knowledge Management 2 Strategic Planning 2 Strategic Planning 5 Workforce Focus 5 Workforce Focus 3 Customer Focus 3 Customer Focus 6 Operations Focus 6 Operations Focus 1 Leadership 1 Leadership 7 Results 7 Results Organizational Profile: Environment, Relationships & Strategic Situation Insert bumper – takeaway statement Baldrige Performance Excellence Model (TEMPLATE)
    • © Operational Excellence Consulting. All rights reserved. 11 EFQM Business Excellence Model Enablers Results Leadership People Strategy Partnerships & Resources Key Results Processes, Products & Services People Results Customer Results Society Results Learning, Creativity & Innovation
    • © Operational Excellence Consulting. All rights reserved. 13 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 15 Insert Header FINANCIALFINANCIAL BUSINESS PROCESSESBUSINESS PROCESSES Vision and Strategy Vision and Strategy To succeed financially, how should we appear to our shareholders? LEARNING & GROWTHLEARNING & GROWTH CUSTOMERSCUSTOMERS To achieve our vision, how will we sustain our ability to change and improve? To achieve our vision, how should we appear to our customers? To satisfy our shareholders and customers, what business processes must we excel at? Source: Kaplan & Norton Insert bumper – takeaway statement Balanced Scorecard (TEMPLATE)
    • © Operational Excellence Consulting. All rights reserved. 17 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 19 1. IDENTIFY WHAT IS TO BE BENCHMARKED1. IDENTIFY WHAT IS TO BE BENCHMARKED 2. IDENTIFY COMPARATIVE COMPANIES2. IDENTIFY COMPARATIVE COMPANIES 3. DETERMINE DATA COLLECTION METHOD AND COLLECT DATA3. DETERMINE DATA COLLECTION METHOD AND COLLECT DATA 4. DETERMINE CURRENT PERFORMANCE “GAP”4. DETERMINE CURRENT PERFORMANCE “GAP” 5. PROJECT FUTURE PEROFMANCE LEVELS5. PROJECT FUTURE PEROFMANCE LEVELS 6. COMMUNICATE BENCHMARK FINDINGS AND GAIN ACCEPTANCE6. COMMUNICATE BENCHMARK FINDINGS AND GAIN ACCEPTANCE 7. ESTABLISH FUNCTIONAL GOALS7. ESTABLISH FUNCTIONAL GOALS 8. DEVELOP ACTION PLANS8. DEVELOP ACTION PLANS 9. IMPLEMENT SPECIFIC ACTIONS AND MONITOR PROGRESS9. IMPLEMENT SPECIFIC ACTIONS AND MONITOR PROGRESS 10. RECALIBRATE BENCHMARKS10. RECALIBRATE BENCHMARKS LEADERSHIP POSITION ATTAINED PRACTICES FULLY INTEGRATED INTO PROCESSES Phase 1: PLANNING Phase 2: ANALYSIS Phase 3: INTEGRATION Phase 4: ACTION MATURITY Insert Header Source: Robert C. Camp Insert bumper – takeaway statement Xerox Benchmarking Model (TEMPLATE)
    • © Operational Excellence Consulting. All rights reserved. 21 Stability Heijunka Standardized Work Kaizen Just-In-Time • Continuous flow • Takt time • Pull system • Flexible workforce Jidoka • Separate man & machine work • Abnormality Identification • Poka yoke Lean management framework provides a holistic approach to improving speed and quality Goals: highest quality, lowest cost, shortest lead times Involvement33 22 11 44 55 11 55 44 33 22 Stability Standardization Just-In-Time Jidoka Involvement Source: Adapted from Toyota Production System
    • © Operational Excellence Consulting. All rights reserved. 23 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 25 Insert Header Flow Kaizen (Value Stream Improvement) Process Kaizen (Waste Elimination) Senior Management Front Lines Focus Plan DoCheck Act Source: Gemba Kaizen by Masaaki Imai, 1997 Lean Leadership & Kaizen Model (TEMPLATE) Insert bumper – takeaway statement
    • © Operational Excellence Consulting. All rights reserved. 27 • Creates an end-to-end view of the system • Demonstrates interaction between material/work and information flow • Provides a common visual language for understanding a complex system • Creates an end-to-end view of the system • Demonstrates interaction between material/work and information flow • Provides a common visual language for understanding a complex system Supplier Management Control Customer Work & Information Flow Information flow Value stream mapping ensures an overview of the end-to- end business process
    • © Operational Excellence Consulting. All rights reserved. 29 Value Stream Mapping Steps Define and Pick the Product/ Service Family Create Current State Value Stream Map Create Future State Value Stream Map Develop an Implementation Plan & Execution
    • © Operational Excellence Consulting. All rights reserved. 31 Eight types of waste exist in our processes which can be eliminated to increase customer value Over-production Producing more than what the customer needs Inventory Building and storing extra services/products the customer has not ordered Transportation Moving from one place to another Defects Reprocessing, or correcting work Over-processing Adding excess value when the customer does not require it Motion Extra physical/mental motion that doesn’t add value Intellect Not using employees full intellectual contribution Waiting Employees waiting for another process or information Waste
    • © Operational Excellence Consulting. All rights reserved. 33 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 35 Lean levers can be applied to eliminate process waste Overproduction Producing more than what the customer needs Waiting Employees waiting for another process or a machine/tool Motion Extra physical / mental motion that doesn’t add value Transportation Moving product/ service from one place to another Inventory Building and storing extra services/produc ts the customer has not ordered Rework Reprocessing, or correcting work Over- processing Adding excess value when the customer does not require it Intellect Not using employees full intellectual contribution 1. Segmenting complexity Form separate channels for complicated tasks so that simple ones are not held up 2. Redistribute activities Align activities with appropriate skill set and group 3. Pool resources Utilize existing skills and resources to reach economies of scale 4. Flexible manpower systems Balance processing capacity with the ongoing demand by moving people to where the work activity is 5. Reduce incoming work Eliminate tasks from a person by reducing the actual work activity arising 6. Reduce NVA work Eliminate work that does not directly add value to the end customer 7. Standard operations Establish best practices in to execute a task Lever Waste
    • © Operational Excellence Consulting. All rights reserved. 37 Gemba Framework provides a holistic view of the key determinants that impact business performance Man Measurements Methods Machines Materials Operational + Materials Standards NVA = Muda + Mura + Muri 5S = Housekeeping Discipline Quality Delivery Cost S DC A P DC A Input Process Output Source: Gemba Kaizen by Masaaki Imai, 1997
    • © Operational Excellence Consulting. All rights reserved. 39 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 41 Insert Header Source: Kaoru Ishikawa Cause & Effect Diagram (TEMPLATE) Insert bumper – takeaway statement Manpower Methods Machines (or Equipment) Measurement Output Materials (or Information) Environment Causes Effect
    • © Operational Excellence Consulting. All rights reserved. 43 5S Principles Principles General Description 1S Sort Remove what is not needed and keep what is needed 2S Set in Order Arrange essential items in order for easy access 3S Shine Keep things clean and tidy; no trash or dirt in the workplace 4S Standardize Establish standards and guidelines to maintain an organized workplace 5S Sustain Make 5S a habit and teach others to adhere to established standards
    • © Operational Excellence Consulting. All rights reserved. 45 Insert Header Sort Standardize Sustain Shine Set In Order Insert bumper – takeaway statement 5S Principles (TEMPLATE)
    • © Operational Excellence Consulting. All rights reserved. 47 Plan-Do-Check-Act cycle provides a systematic approach to process improvement ACT CHECK DO PLAN Establish objectives and processes necessary to deliver results in accordance with customer requirements Monitor, measure, analyze and report results Improve process performance Implement the processes Source: Adapted from W. E. Deming
    • © Operational Excellence Consulting. All rights reserved. 49 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 51 Insert Header Select the Theme Plan the Schedule Grasp the Present Situation Establish the Target Analyze the Cause & Identify Corrective Action Implement Corrective Action Evaluate the Result Standardize & Follow-up PLAN ACT CHECK DO 1 2 3 4 5 6 7 8 PDCA Problem Solving Process (TEMPLATE)
    • © Operational Excellence Consulting. All rights reserved. 53 Eight pillars of TPM provide a structured framework to improve Overall Equipment Effectiveness (OEE) TPMintheOfficeTPMintheOffice Safety&Environmental Management Safety&Environmental Management AutonomousMaintenanceAutonomousMaintenance PlannedMaintenancePlannedMaintenance FocusedImprovementFocusedImprovement EarlyEquipment Management EarlyEquipment Management QualityMaintenanceQualityMaintenance Education&TrainingEducation&Training 5S & Visual Management5S & Visual Management TPM Goals: Zero Defects, Zero Breakdowns, Zero Accidents Source: Japan Institute of Plant Maintenance (JIPM)
    • © Operational Excellence Consulting. All rights reserved. 55 OEE can be improved by eliminating the six major equipment losses Overall Equipment Effectiveness Availability Breakdowns Setups & Adjustments Performance Reduced Speed Minor Stops & Idling Quality Defects & Rework Startup & Yield Loss Six Big Losses Source: Japan Institute of Plant Maintenance (JIPM)
    • © Operational Excellence Consulting. All rights reserved. 57 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 59 Insert Header Define Measure Analyze Control 6σImprove DMAIC Model (TEMPLATE) Insert bumper – takeaway statement
    • © Operational Excellence Consulting. All rights reserved. 61 DMAIC Roadmap KEY STEPS DefineDefine • Define and scope problem • Determine project objectives and benefits • Create project charter MeasureMeasure AnalyzeAnalyze ImproveImprove ControlControl • Define ‘As Is’ process • Validate measurement system for outputs • Quantify process performance • Identify potential causes (x’s) • Investigate significant x’s • Identify significants causes to focus on y=f(x’s) • Generate potential solutions • Select and test solution • Develop implementation plan • Create control and monitoring plan • Implement full scale solution • Finalize transition Reduction in process variation improves quality and lowers costs
    • © Operational Excellence Consulting. All rights reserved. 63 DMAIC Project Charter Template Project Name Business Problem Executive Sponsor Black Belt Champion Objective and Scope Objective: Scope: Steering Committee Process Owner: Black Belt: Green Belt: Financial Analyst: Investment Team Members DMAIC Plan Start – Plan End Operational Metric Baseline Target Define <Metrics that will impact line operations, corporate measurements, profit & loss, etc.> <Indicate gross order of magnitude – if actual estimates are not available – describe value> Measure Analyze Defect Definition: Expected Benefits Projected Savings (US$) Improve Hard Benefits: Soft Benefits: Strategic/Other Qualitative Benefits: Control
    • © Operational Excellence Consulting. All rights reserved. 65 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 67 Insert Header • Insert text • Insert text • Insert text • Insert text • Insert text • Insert text 1 10 100 Source: Philip Crosby Law of 10 (TEMPLATE)
    • © Operational Excellence Consulting. All rights reserved. 69 Training Within Industry (TWI) skills enable supervisors with the ability to lead, instruct and improve work processes Charles Allen 4-Step Learning Process TWI PDCA Cycle Scientific MethodJob Instruction Job Methods Job Relations Preparation Prepare the Worker Breakdown the Job Get the Facts Plan – observe data and reality; decide on a problem; define it Observation and Description Presentation Present the Operation Question Every Detail Weigh & Decide Do – Analyze the problem; propose a countermeasure Formulation of an Hypothesis Application Try Out Performance Develop New Method Take Action Check – Try the countermeasure; check the results Use the Hypothesis to make Predictions Testing Follow Up Apply New Method Check Results Act – if successful, standardize change; if not, start the cycle over Test the Predictions by Experiments
    • © Operational Excellence Consulting. All rights reserved. 71 TWI - Job Methods (JM) provides a structured approach to operations improvement JOB METHODS CARD HOW TO IMPROVE Purpose: A practical plan to help you produce greater quantities of quality products in less time, by making the best use of manpower, machines, and materials now available. STEP 1 – BREAK DOWN THE JOB 1. List all details of the job exactly as done by the present method 2. Be sure details include all: • Material handling • Machine work • Hand work STEP 2 – QUESTION EVERY DETAIL 1. Use these types of questions: • Why is it necessary? • What is its purpose? • Where should it be done? • When should it be done? • Who is best qualified to do it? • How is the best way to do it? 2. Also question the materials, machines, produce design, layout, work place, safety, house keeping JOB METHODS CARD HOW TO IMPROVE Purpose: A practical plan to help you produce greater quantities of quality products in less time, by making the best use of manpower, machines, and materials now available. STEP 1 – BREAK DOWN THE JOB 1. List all details of the job exactly as done by the present method 2. Be sure details include all: • Material handling • Machine work • Hand work STEP 2 – QUESTION EVERY DETAIL 1. Use these types of questions: • Why is it necessary? • What is its purpose? • Where should it be done? • When should it be done? • Who is best qualified to do it? • How is the best way to do it? 2. Also question the materials, machines, produce design, layout, work place, safety, house keeping STEP 3 – DEVELOP THE NEW METHOD 1. Eliminate unnecessary details 2. Combine details when practical 3. Rearrange for better sequence 4. Simplify all necessary details • Make the work easier and safer • Pre-position materials, tools, and equipment at the best places in the proper work area • Use gravity feed hoppers and drop delivery chutes • Let both hands do useful work • Use jigs and fixtures instead of hands for holding work 5. Work out your ideas with others 6. Write up your proposed new method STEP 4 – APPLY THE METHOD 1. Sell your proposal to the boss 2. Sell the new method to the operators 3. Get final approval of all concerned on safety, quality, quantity, cost 4. Put the new method to work. Use it until a better way is developed. 5. Give proper credit where due STEP 3 – DEVELOP THE NEW METHOD 1. Eliminate unnecessary details 2. Combine details when practical 3. Rearrange for better sequence 4. Simplify all necessary details • Make the work easier and safer • Pre-position materials, tools, and equipment at the best places in the proper work area • Use gravity feed hoppers and drop delivery chutes • Let both hands do useful work • Use jigs and fixtures instead of hands for holding work 5. Work out your ideas with others 6. Write up your proposed new method STEP 4 – APPLY THE METHOD 1. Sell your proposal to the boss 2. Sell the new method to the operators 3. Get final approval of all concerned on safety, quality, quantity, cost 4. Put the new method to work. Use it until a better way is developed. 5. Give proper credit where due
    • © Operational Excellence Consulting. All rights reserved. 73 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 75 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 77 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 79 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 81 Cost of non-conformance can be eliminated to improve quality Cost of Quality (COQ) Cost of Conformance ( COC ) Cost of Non-Conformance ( CONC ) Prevention Cost Appraisal Cost Internal Failures Cost External Failures Cost Sources: J. M. Juran & Philip Crosby
    • © Operational Excellence Consulting. All rights reserved. 83 Costs of failure can be eliminated to reduce total COQ Source: J. M. Juran Cost of Quality Internal failure costs Internal failure costs Prevention costs Prevention costs Appraisal costs Appraisal costs External failure costs External failure costs - Complaint investigation and adjustment - Return, replace or allowances - Warranty expenses - Liability - Loss of goodwill - Disposition - Inventory safety stock - Rework - Incoming material inspection - In-process inspection and testing - Maintaining testing equipment - Evaluation of stock - Quality planning - Production design and review - Process design and review - Job design and training - Process control - Data collection and analysis - Quality improvement programs - Retest - Yield loss - Downtime - Scrap Costs of Non-Conformance Costs of Conformance
    • © Operational Excellence Consulting. All rights reserved. 85 Contents ISO 9001 Quality Management Model Plan-Do-Check-Act Model Baldrige Performance Excellence Model PDCA Problem Solving Process EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars Balanced Scorecard DMAIC Process Improvement Model Benchmarking Model Law of 10 Lean Management Model (TPS) Training Within Industry (TWI) Lean Leadership & Kaizen Model A3 Storyboard Template Value Stream Mapping PACE Prioritization Matrix Eight Types of Waste Payoff Evaluation Matrix Lean Levers Cost of Quality Model Gemba Framework SERVQUAL Model Cause & Effect Diagram Change Management Model 5S Principles
    • © Operational Excellence Consulting. All rights reserved. 87 Insert Header Source: “SERVQUAL” by Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry Insert bumper – takeaway statement SERVQUAL Model (TEMPLATE) Responsiveness Empathy Tangibles Assurance Reliability
    • © Operational Excellence Consulting. All rights reserved. 89 Change Management Model Need for Change Change Behavior Change Direction Change Sustainability Committed Leadership Committed Leadership 1. Establish a Sense of Urgency 2. Form a Powerful Guiding Coalition 3. Create a Vision 4. Communicate the Vision 5. Empower Others to Act on the Vision 6. Plan for and Create Short Term Wins 7. Consolidate Improvements & Produce More Change 8. Institutionalize New Approaches Source: John Kotter
    • © Operational Excellence Consulting. All rights reserved. Appendices
    • © Operational Excellence Consulting. All rights reserved. 93 Value Stream Mapping Symbols Symbol Name Description Operator or Employee Represents operator(s). The number of available operators is shown below the symbol. Push Arrow Represents the movement of materials from one process to another. It is used when the previous process ‘pushes’ materials to the next process regardless of whether it is needed by the next process. Material Receipts & Shipments Represents movement of finished goods to the customer. It can also be used to represent movement of raw materials from the supplier to the factory. Electronic Information Flow Represents an electronic flow of electronic data or information. Manual Information Flow Represents the general flow of information.
    • © Operational Excellence Consulting. All rights reserved. 95 Value Stream Mapping Symbols Symbol Name Description Withdrawal Kanban Used to signal withdrawal of parts from a supermarket. Production Kanban Used to signal an upstream process to produce parts for a downstream process, usually a pre-defined quantity. Kanban Post Represents a location where Kanbans are placed. Signal Kanban Used to signal a process to change over and start production of a particular part. This is typically used when the inventory level in the supermarket drops below the minimum level. Supermarket Represents a stock of inventory where the next process or customer can draw upon when required. The upstream process will replenish the stock when it runs low. It is used to reduce overall inventory level and when a continuous flow is not possible.