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Business Performance Improvement Models by Operational Excellence Consulting
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Business Performance Improvement Models by Operational Excellence Consulting

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This presentation is a collection of PowerPoint diagrams and templates used to convey 36 different business performance improvement models. ...

This presentation is a collection of PowerPoint diagrams and templates used to convey 36 different business performance improvement models.

Models/frameworks include the following:

ISO 9001 Quality Management Model
Baldrige Performance Excellence Model
EFQM Business Excellence Model
Balanced Scorecard
Strategic Business Planning Methodology
Hoshin Kanri Strategy Deployment Model
Xerox Benchmarking Model
TRADE Best Practice Benchmarking Model
APQC Benchmarking Methodology
Business Process Re-engineering Model
Shingo Model for Lean Transformation
Lean Management Model (Toyota Production System)
Lean Leadership & Kaizen Model
Lean Maturity Model
Value Stream Mapping
Eight Types of Waste
Lean Levers
Gemba Framework
5S Principles
Total Productive Maintenance (TPM) Pillars
Plan-Do-Check-Act Model
PDCA Problem Solving Process
8D (Eight Disciplines) Problem Solving Process
Mistake Proofing Process
Cause & Effect Diagram
Six Sigma DMAIC Methodology
Six Sigma DMADV Methodology
Law of 10
Training Within Industry (TWI)
A3 Storyboard Template
PACE Prioritization Matrix
Payoff Evaluation Matrix
Cost of Quality Model
SERVQUAL Model
ADKAR Model
Kotter Change Management Model

To download this complete presentation, please go to: http://www.oeconsulting.com.sg

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Business Performance Improvement Models by Operational Excellence Consulting Business Performance Improvement Models by Operational Excellence Consulting Presentation Transcript

  • © Operational Excellence Consulting. All rights reserved. This presentation is a collection of PowerPoint diagrams and templates used to convey 36 different business performance improvement models. Business Performance Improvement Models Diagrams and Templates of Business Performance Improvement Models
  • © Operational Excellence Consulting. All rights reserved. 2 Contents 1. ISO 9001 Quality Management Model 2. Baldrige Performance Excellence Model 3. EFQM Business Excellence Model 4. Balanced Scorecard 5. Strategic Business Planning Methodology 6. Hoshin Kanri Strategy Deployment Model 7. Xerox Benchmarking Model 8. TRADE Best Practice Benchmarking Model 9. APQC Benchmarking Methodology 10. Business Process Re-engineering Model 11. Shingo Model for Lean Transformation 12. Lean Management Model (Toyota Production System) NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: http://www.oeconsulting.com.sg
  • © Operational Excellence Consulting. All rights reserved. 3 Contents 13. Lean Leadership & Kaizen Model 14. Lean Maturity Model 15. Value Stream Mapping 16. Eight Types of Waste 17. Lean Levers 18. Gemba Framework 19. 5S Principles 20. Total Productive Maintenance (TPM) Pillars 21. Plan-Do-Check-Act Cycle 22. PDCA Problem Solving Process 23. 8D (Eight Disciplines) Problem Solving Process 24. Mistake Proofing Process
  • © Operational Excellence Consulting. All rights reserved. 4 Contents 25. Cause & Effect Diagram 26. Six Sigma DMAIC Methodology 27. Six Sigma DMADV Methodology 28. Law of 10 29. Cost of Quality Model 30. Training Within Industry (TWI) 31. A3 Storyboard Template 32. PACE Prioritization Matrix 33. Payoff Evaluation Matrix 34. SERVQUAL Model 35. ADKAR Model 36. Kotter Change Management Model
  • © 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 Continual improvement of the Quality Management System CustomerRequirements CustomerSatisfaction Management Responsibility Resource management Measurement, analysis & improvement Product realization
  • © Operational Excellence Consulting. All rights reserved. 6 Baldrige Criteria for Performance Excellence 4 Measurement, Analysis & Knowledge Management 2 Strategic Planning 5 Workforce Focus 3 Customer Focus 6 Operations Focus 1 Leadership 7 Results Organizational Profile: Environment, Relationships & Strategic Situation
  • © Operational Excellence Consulting. All rights reserved. 7 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. 8 The Balanced Scorecard focuses the entire organization on financial and non-financial outcomes FINANCIAL BUSINESS PROCESSES Vision and Strategy To succeed financially, how should we appear to our shareholders? LEARNING & GROWTH CUSTOMERS 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
  • © Operational Excellence Consulting. All rights reserved. 9 Implementation Formulation Business Strategy Development Business Visioning Strategic Business Review The strategic business planning methodology provides a blueprint for achieving the organization’s future state vision • Review current state • Identify areas of competitive advantage • Analyze industry trends and competition • Envision desired state • Identify and screen opportunities • Analyze opportunity gaps • Benchmark and make recommendations • Define blueprint • Identify programs • Define implementation plan
  • © Operational Excellence Consulting. All rights reserved. 10 Hoshin Kanri Strategy Deployment Process focuses and aligns the organization to the core objectives of the business Source: Yoji Akao
  • © Operational Excellence Consulting. All rights reserved. 11 1. IDENTIFY WHAT IS TO BE BENCHMARKED 2. IDENTIFY COMPARATIVE COMPANIES 3. DETERMINE DATA COLLECTION METHOD AND COLLECT DATA 4. DETERMINE CURRENT PERFORMANCE “GAP” 5. PROJECT FUTURE PEROFMANCE LEVELS 6. COMMUNICATE BENCHMARK FINDINGS AND GAIN ACCEPTANCE 7. ESTABLISH FUNCTIONAL GOALS 8. DEVELOP ACTION PLANS 9. IMPLEMENT SPECIFIC ACTIONS AND MONITOR PROGRESS 10. RECALIBRATE BENCHMARKS  LEADERSHIP POSITION ATTAINED  PRACTICES FULLY INTEGRATED INTO PROCESSES Phase 1: PLANNING Phase 2: ANALYSIS Phase 3: INTEGRATION Phase 4: ACTION MATURITY Xerox Benchmarking Model helps to identify best practices which can be adapted to improve business competitiveness Source: Robert C. Camp
  • © Operational Excellence Consulting. All rights reserved. 12 TRADE Benchmarking Methodology focuses on the exchange of information and best practices to improve the performance of processes, goods and services Terms of Reference Research Act Deploy Evaluate • Determine area of focus for benchmarking project • Develop project brief • Form and train project team • Understand benchmarking code of conduct • Prepare Terms of Reference • Develop documenta- tion system • Review Terms of Reference process • Obtain approval to start the next stage of TRADE • Understand area of focus to be benchmarked • Define performance measures • Identify current performance • Review Research process • Obtain approval to start the next stage of TRADE • Establish criteria for selecting benchmarking partners • Select potential benchmarking partners • Invite and acquire benchmarking partners • Prepare for data collection • Collect and store data • Analyze data • Formulate recommendations • Review Act process • Obtain approval to start the next stage of TRADE • Communicate findings • Develop action plan • Obtain approval for action plan • Implement actions • Review deploy process • Obtain approval to start the next stage of TRADE • Perform cost/ benefit analysis • Review TRADE process • Share experiences and project outcomes • Close project Source: Center for Organizational Excellence Research (COER)
  • © Operational Excellence Consulting. All rights reserved. 13 The Business Process Re-engineering (BPR) Model establishes four stages to transform the current state to the future state Source: ‘The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants.’ 
S. A. Burtonshaw-Gunn, 2008 Evaluate Envision Empower Excel Empower and support people to make the necessary changes Identify what the ideal “to-be” position should cover Examine and evaluate the current “as-is” processes Monitor and adopt to new process to keep in step with any changing requirements through continuous improvement
  • © Operational Excellence Consulting. All rights reserved. 14 Shingo Model: Three levels of business improvement stages provide structure to Lean transformation Source: Shigeo Shingo PRINCIPLE-DRIVEN SYSTEM-DRIVEN TOOLS-DRIVEN Imbedding principles into culture Using specific methods to create point solutions Structuring tools into a system concept
  • © Operational Excellence Consulting. All rights reserved. 15 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 Involvement3 2 1 4 5 1 5 4 3 2 Stability Standardization Just-In-Time Jidoka Involvement Source: Adapted from Toyota Production System
  • © Operational Excellence Consulting. All rights reserved. 16 Lean leadership and kaizen model Flow Kaizen (Value Stream Improvement) Process Kaizen (Waste Elimination) Senior Management Front Lines Focus Plan DoCheck Act Source: Gemba Kaizen by Masaaki Imai, 1997
  • © Operational Excellence Consulting. All rights reserved. 17 Lean Maturity Model provides a roadmap to organizations to become Lean Enterprises The Milestones of Lean Maturity • Formal structure • Only specialists • Team learning Stage 2: Formal • Reactive approach • Little or no involvement • Adhoc learning Stage 1: Reactive • Vision-aligned deployment • Majority involvement • Cross-functional learning Stage 4: Autonomous • Goal oriented • Selected teams • Value stream learning Stage 3: Deployed • Autonomous habit • Full involvement • External learning / benchmarking Stage 4: Way of Life Key Characteristics: 1. Ways of working 2. Employee engagement 3. Learning best practices
  • © Operational Excellence Consulting. All rights reserved. 18 • 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. 19 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. 20 Lean levers can be applied to eliminate process waste Segmenting complexity Redistribute activities Flexible manpower systems Reduce incoming work Reduce NVA work Standardize operations Form separate channels for complicated tasks so that simple ones are not held up Align activities with appropriate skill set and group Balance processing capacity with the ongoing demand by moving people to where the work activity is Eliminate tasks from a person by reducing the actual work activity arising Eliminate work that does not directly add value to the end customer Establish best practices to execute a task 1 2 4 5 6 7 Pool resources Utilize existing skills and resources to reach economies of scale 3
  • © Operational Excellence Consulting. All rights reserved. 21 Gemba Framework provides a holistic view of the key determinants that impact business performance Source: Gemba Kaizen by Masaaki Imai, 1997
  • © Operational Excellence Consulting. All rights reserved. 22 5S principles provide a visual and disciplined approach to workplace organization and improvement Sort Set In Order Shine Standardize Sustain
  • © Operational Excellence Consulting. All rights reserved. 23 Eight pillars of TPM provide a structured framework to improve Overall Equipment Effectiveness (OEE) TPMintheOffice Safety&Environmental Management AutonomousMaintenance PlannedMaintenance FocusedImprovement EarlyEquipment Management QualityMaintenance Education&Training 5S & Visual Management TPM Goals: Zero Defects, Zero Breakdowns, Zero Accidents Source: Japan Institute of Plant Maintenance (JIPM)
  • © Operational Excellence Consulting. All rights reserved. 24 OEE can be improved by eliminating the six major equipment losses Source: Japan Institute of Plant Maintenance (JIPM)
  • © Operational Excellence Consulting. All rights reserved. 25 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. 26 PDCA problem solving process 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
  • © Operational Excellence Consulting. All rights reserved. 27 A Mistake Proofing Process prevents or detects a specific error from occurring or recurring Select Process Define Problems Prioritize Opportunities Find Root Causes Create Potential Solutions Select / Implement Solutions Monitor / Standardize
  • © Operational Excellence Consulting. All rights reserved. 28 Six Sigma DMAIC is a data-driven improvement cycle used for improving, optimizing and stabilizing business processes Define the problem or opportunity Measure the current performance and capability Analyse to identify root causes Improve by implementing potential solutions Control by standardizing solution and monitoring performance Define Measure Analyze Improve Control
  • © Operational Excellence Consulting. All rights reserved. 29  Identify the critical business issues and concerns  Understand the current process and it’s customers  Characterize the Y and potential X’s  Collect data for process elements  Verify/quantify important X’s  Identify factors (X’s) that have an influence on the business issue.  Implement solutions to improve Y  Adjust the factors that influence the business concerns  Manage important X’s and monitor the Y over time  Mange routine or day-to-day operations for these critical factors  DMAIC allows for the utilization of multiple tools and techniques when improving processes; including statistics and Lean techniques.  The Control phase allows teams to develop a process to ensure improvement results will be sustained over the long-term. Define Opportunity Measure Performance Analyze Opportunity Improve Performance Control Performance Each step in the DMAIC process is required and results in deliverables that ensures the team is focused on key process performance measures
  • © Operational Excellence Consulting. All rights reserved. 30 Six Sigma DMADV is used for projects aimed at creating new product or process keeping in mind customer requirements at every stage Define the project goals and customer deliverables Measure and determine customer needs and specification Analyse the process options to meet the customer needs Design the process to meet the customer needs Verify the design performance and ability to meet customer needs Define Measure Analyze Design Verify
  • © Operational Excellence Consulting. All rights reserved. 31 Law of 10 – The system for quality is prevention Minimal defects due to prevention- based activities Defects found within the company and corrected internally Customer finds defects and makes complaints 1 10 100 Source: Philip Crosby
  • © Operational Excellence Consulting. All rights reserved. 32 The 6 sources of variability in a system are used to understand root causes Manpower Methods Machines (or Equipment) Measurement Output Materials (or Information) Environment Causes Effect Source: Kaoru Ishikawa
  • © Operational Excellence Consulting. All rights reserved. 33 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. 34 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. 35 TWI - Job Instruction (JI) provides a structured approach to the implementation of standardized work JOB INSTRUCTION CARD HOW TO INSTRUCT STEP 1 – PREPARE THE WORKER • Put the person at ease • State the job • Find out what the person already knows • Get the person interested in learning the job • Place the person in the correct position STEP 2 – PRESENT THE OPERATION • Tell, show and illustrate - one Important Step at a Time • Do it again – stress Key Points and Reasons Instruct clearly, completely, and patiently giving no more than they can master at one time STEP 3 – TRY OUT PERFORMANCE • Have the person do the job – stating IMPORTANT STEPS – correct errors • Have the person do the job again – explaining KEY POINTS and REASONS Make sure the person understands Continue until YOU know THEY know STEP 4 – FOLLOW UP • Put the person on his own • Who to go to for help • Check frequently • Encourage questions • Taper off extra coaching and close follow-up IF THE PERSON HASN’T LEARNED THE INSTRUCTOR HASN’T TAUGHT JOB INSTRUCTION CARD How to Get Ready to Instruct Before instructing people on how to do a job: 1. HAVE A TRAINING TIME TABLE Determine who to train… On what tasks… By what date. 2. BREAK DOWN THE JOB • List important steps • Pick out key points and reasons • Safety is always a key point 3. HAVE EVERYTHING READY Have the right equipment, tools, materials and supplies – everything needed to instruct 4. ARRANGE THE WORK AREA Just as in actual working conditions
  • © Operational Excellence Consulting. All rights reserved. 36 A3 Storyboard Template THEME: Concise statement of what this Kaizen is about. BACKGROUND: • Note any contextual or background information necessary to fully understand the issue. • Indicate how this problem affects the company’s goals or is related to its values. ROOT CAUSE ANALYSIS: • List the main problem(s) • Ask appropriate “why?” questions until you reach the root cause. A rule-of-thumb: you haven’t reached the root cause until you’ve asked “why?” at least 5 times! • List the answers to each why question TARGET CONDITION: • Insert a diagram that illustrates how the proposed process will work, with labels. • Note or list the countermeasure(s) that will address the root cause(s) identified. • Predict the expected improvement in the measure of interest (specifically and quantitatively) IMPLEMENTATION PLAN: • List the actions which must be done in order to realize the Target Condition, along with the individual responsible for the action and a due date. • Add other items, such as cost, that are relevant to the implementation. Action Responsibility Deadline Action 1 D. Smith Oct. 1 Action 2 N. Jones Nov. 5 Action 3 M. Jordan Nov. 28 Etc. COST: no expenditures required FOLLOW-UP: Plan Actual  Note the plan to measure the effectiveness of the proposed change.  Indicate when it will be measured, and by whom.  Leave blank initially  After follow-up, record the results of implementation  Record the date of actual follow-up To: ___________________ By: ___________________ Date: __________________ CURRENT CONDITION: • Insert a diagram that illustrates how the current process works. • Label the diagram so that anyone knowledgeable about the process can understand. • Note the major problems • Include quantified measures of the extent of the problem – graphical representations are best!
  • © Operational Excellence Consulting. All rights reserved. 37 PACE Prioritization Matrix EaseofImplementation Difficult Low Anticipated Benefit High Priority Action Eliminate Easy Consider
  • © Operational Excellence Consulting. All rights reserved. 38 Payoff Matrix High Benefit Low Cost High Cost Low Benefit BENEFIT: Defects Satisfaction Cost Timeliness COST: Resources Financial, People, Time Least Attractive Most Attractive
  • © Operational Excellence Consulting. All rights reserved. 39 SERVQUAL method can be used to perform a gap analysis of an organization’s service quality performance Source: “SERVQUAL” by Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry Responsiveness Empathy Tangibles Assurance Reliability
  • © Operational Excellence Consulting. All rights reserved. 40 The ADKAR Model (Awareness, Desire, Knowledge, Ability, Reinforcement) helps project teams understand the change position of both individuals and groups impacted by a project Source: Prosci ADKAR Model
  • © Operational Excellence Consulting. All rights reserved. 41 Kotter Change Management Model Need for Change Change Behavior Change Direction Change Sustainability 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. 42 Copyrights of all the pictures used in this presentation are held by their respective owners.
  • © Operational Excellence Consulting. All rights reserved. 43 Other Presentations You May Like… Check out our presentations catalog at http://www.oeconsulting.com.sg/#!training-presentations/c1les
  • © Operational Excellence Consulting. All rights reserved. About Operational Excellence Consulting
  • © Operational Excellence Consulting. All rights reserved. 45 About Operational Excellence Consulting • Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. • The firm’s mission is to create business value for organizations through innovative operational excellence management training and consulting solutions. • OEC takes a unique “beyond the tools” approach to enable clients develop internal capabilities and cultural transformation to achieve sustainable world-class excellence and competitive advantage. For more information, please visit www.oeconsulting.com.sg
  • © Operational Excellence Consulting. All rights reserved. www.oeconsulting.com.sg END OF PARTIAL PREVIEW To download this presentation, please visit us at: