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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:

Baldrige Performance Excellence Model
EFQM Business Excellence Model
ISO 9001 Quality Management Model
Balanced Scorecard (Kaplan & Norton)
Strategic Business Planning Methodology
Hoshin Kanri Strategy Deployment Model
Xerox Benchmarking Model
TRADE Best Practice Benchmarking Model
APQC Benchmarking Methodology
Business Process Redesign (Hammer & Campy)
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 for Workplace Organization
Total Productive Maintenance (TPM) Framework
The Deming Cycle
PDCA Problem Solving Process
8D (Eight Disciplines) Problem Solving Process
Mistake Proofing Process
Cause & Effect Diagram
Six Sigma DMAIC Methodology
Six Sigma DMADV Methodology
Philip Crosby's Law of 10
Cost of Quality Model
Training Within Industry (TWI)
A3 Storyboard Template
PACE Prioritization Matrix
Payoff Evaluation Matrix
SERVQUAL Model
ADKAR Model
Kotter's Eight Phases of Change

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

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  • 1. Business Performance Improvement Models Diagrams and Templates of Business Performance Improvement Models This presentation is a collection of PowerPoint diagrams and templates used to convey 36 different business performance improvement models. © Operational Excellence Consulting. All rights reserved.
  • 2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: http://www.oeconsulting.com.sg © Operational Excellence Consulting. All rights reserved. 2 Contents (1 of 2) 1. Baldrige Performance Excellence Model 2. EFQM Business Excellence Model 3. ISO 9001 Quality Management Model 4. Balanced Scorecard (Kaplan & Norton) 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 Redesign (Hammer & Campy) 11. Shingo Model for Lean Transformation 12. Lean Management Model (Toyota Production System) 13. Lean Leadership & Kaizen Model 14. Lean Maturity Model 15. Value Stream Mapping 16. Eight Types of Waste 17. Lean Levers 18. Gemba Framework
  • 3. © Operational Excellence Consulting. All rights reserved. 3 Contents (2 of 2) 19. 5S Principles for Workplace Organization 20. Total Productive Maintenance (TPM) Framework 21. Plan-Do-Check-Act (PDCA) Cycle 22. PDCA Problem Solving Process 23. 8D (Eight Disciplines) Problem Solving Process 24. Mistake Proofing Process 25. Cause & Effect Diagram 26. Six Sigma DMAIC Methodology 27. Six Sigma DMADV Methodology 28. Philip Crosby’s 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’s Eight Phases of Change
  • 4. Baldrige Criteria for Performance Excellence 4 Baldrige Performance Excellence Model 2 Strategic Planning 5 Workforce Focus 3 Customer Focus 6 Operations Focus Measurement, Analysis & Knowledge Management © Operational Excellence Consulting. All rights reserved. 4 1 Leadership 7 Results Organizational Profile: Environment, Relationships & Strategic Situation
  • 5. EFQM Business Excellence Model EFQM Business Excellence Model Enablers Results © Operational Excellence Consulting. All rights reserved. 5 Leadership People Strategy Partnerships & Resources Key Results Processes, Products & Services People Results Customer Results Society Results Learning, Creativity & Innovation
  • 6. ISO 9001 quality management system establishes proven processes that meet customer requirements ISO 9001 Quality Management Model (TEMPLATE) Continual improvement of the Quality Management System Input Output Product/ service Value-adding activities Information flow © Operational Excellence Consulting. All rights reserved. 6 Customer Requirements Customer Satisfaction Management Responsibility Resource management Measurement, analysis & improvement Product realization
  • 7. The Balanced Scorecard focuses the entire organization on financial and non-financial outcomes FINANCIAL BUSINESS PROCESSES To succeed financially, how should we appear to our shareholders? Vision and Strategy LEARNING & GROWTH © Operational Excellence Consulting. All rights reserved. 7 The Balanced Scorecard 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
  • 8. The strategic business planning methodology provides a blueprint for achieving the organization’s future state vision Strategic Business Planning Methodology Implementation Formulation Business Strategy Development Strategic Business Review Business Visioning • Review current state • Identify areas of competitive advantage • Analyze industry trends and competition • Envision desired state © Operational Excellence Consulting. All rights reserved. 8 • Define blueprint • Identify programs • Define implementation plan • Identify and screen opportunities • Analyze opportunity gaps • Benchmark and make recommendations
  • 9. Hoshin Kanri Strategy Deployment Process focuses and aligns the organization to the core objectives of the business Hoshin Plan © Operational Excellence Consulting. All rights reserved. 9 Hoshin Kanri Source: Yoji Akao Senior Management Implementation Teams Middle Management  Vision  Objectives  Strategy  Resources  Action  Schedule Measures
  • 10. Xerox Benchmarking Model helps to identify best practices which can be adapted to improve business competitiveness Xerox Benchmarking Model 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 © Operational Excellence Consulting. All rights reserved. 10 Phase 1: PLANNING Phase 2: ANALYSIS Phase 3: INTEGRATION Phase 4: ACTION MATURITY Source: Robert C. Camp
  • 11. Benchmarking focuses on how to improve any given business process by exploiting “best practices” TRADE Benchmarking Methodology © Operational Excellence Consulting. All rights reserved. 11 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)
  • 12. APQC four-phase benchmarking methodology provides a simple approach to improve product and process performance Plan APQC Benchmarking Methodology Adapt Analyze Collect Establish the project scope, develop the data collection approach and requirements, and set the criteria for peer groups Collect data © Operational Excellence Consulting. All rights reserved. 12 Analyze and validate information collected to identify performance levels, leading practices, enablers, and proven templates and other tools Report and develop action plan for change Source: American Productivity & Quality Center
  • 13. Business Process Redesign (BPR) is the fundamental reconsideration and radical redesign of organizational processes Business Process Redesign Model © Operational Excellence Consulting. All rights reserved. 13 1. Determine Scope & Goal 3. Install Management 4. Implement & Integrate Indicator for need:  Conflicts  Meetings  Non-structure communication  Strategic dialog Key elements:  Focus on output requirements  Critical success factors  Efficiency Key elements:  Define management tools  Performance measurement  Learning  Compensation Key elements:  Install management  Manage change management 2. Redesign Process Structure Source: Hammer & Campy, 1993
  • 14. Shingo Model: Three levels of business improvement stages provide structure to Lean transformation Structuring tools into a system concept © Operational Excellence Consulting. All rights reserved. 14 Source: Shigeo Shingo PRINCIPLE-DRIVEN SYSTEM-DRIVEN TOOLS-DRIVEN Imbedding principles into culture Using specific methods to create point solutions Shingo Model of Lean Transformation
  • 15. Lean management framework provides a holistic approach to improving speed and quality Lean Management Model (a.k.a. Toyota Production System) Heijunka Standardized Work Kaizen © Operational Excellence Consulting. All rights reserved. 15 Source: Adapted from Toyota Production System Stability Just-In-Time • Continuous flow • Takt time • Pull system • Flexible workforce Jidoka • Separate man & machine work • Abnormality Identification • Poka yoke Goals: highest quality, lowest cost, shortest lead times Involvement Stability Standardization Just-In-Time Jidoka Involvement 1 2 3 4 5 1 2 3 4 5
  • 16. Lean leadership and kaizen model Lean Leadership & Kaizen Model (TEMPLATE) Flow Kaizen (Value Stream Improvement) Process Kaizen (Waste Elimination) Plan Act Check Do © Operational Excellence Consulting. All rights reserved. 16 Senior Management Front Lines Focus Source: Gemba Kaizen by Masaaki Imai, 1997
  • 17. Lean Maturity Model provides a roadmap to organizations to become Lean Enterprises The Milestones of Lean Maturity Stage 2: Formal • Formal structure • Only specialists • Team learning Stage 4: Autonomous Stage 3: Deployed Stage 4: Way of Life © Operational Excellence Consulting. All rights reserved. 17 Stage 1: Reactive • Reactive approach • Little or no involvement • Adhoc learning • Vision-aligned deployment • Majority involvement • Cross-functional learning • Goal oriented • Selected teams • Value stream learning • Autonomous habit • Full involvement • External learning / benchmarking Key Characteristics: 1. Ways of working 2. Employee engagement 3. Learning best practices Lean Maturity Model
  • 18. Value stream mapping ensures an overview of the end-to-end business process Information flow • 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 © Operational Excellence Consulting. All rights reserved. 18 Supplier Management Control Customer Work & Information Flow Value Stream Map
  • 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 © Operational Excellence Consulting. All rights reserved. 19 Over-processing Adding excess value when the customer does Defects not require it Reprocessing, or correcting work 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 Eight Types of Waste
  • 20. Lean levers can be applied to eliminate process waste © Operational Excellence Consulting. All rights reserved. 20 Lean Levers 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
  • 21. Gemba Framework provides a holistic view of the key determinants that impact business performance © Operational Excellence Consulting. All rights reserved. 21 Gemba Model Source: Gemba Kaizen by Masaaki Imai, 1997
  • 22. 5S principles provide a visual and disciplined approach to workplace organization and improvement Standardize Sustain © Operational Excellence Consulting. All rights reserved. 22 5S Principles Sort Shine Set In Order
  • 23. The Total Productive Maintenance (TPM) model provides a structured framework to improve Overall Equipment Effectiveness (OEE) TPM in the Office Safety & Environmental Management TPM Goals: Zero Defects, Zero Breakdowns, Zero Accidents © Operational Excellence Consulting. All rights reserved. 23 Autonomous Maintenance Planned Maintenance Focused Improvement Early Equipment Management Quality Maintenance Education & Training 5S & Visual Management TPM Model Source: Japan Institute of Plant Maintenance (JIPM)
  • 24. Plan-Do-Check-Act cycle provides a systematic approach to process improvement ACT PDCA Cycle or Deming Wheel CHECK DO PLAN Establish objectives and processes necessary to deliver results in accordance with customer requirements © Operational Excellence Consulting. All rights reserved. 24 Improve process performance Monitor, measure, analyze and report results Implement the processes Source: Adapted from W. E. Deming
  • 25. PDCA problem solving process 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 DO CHECK ACT © Operational Excellence Consulting. All rights reserved. 25 1 2 3 4 5 6 7 8
  • 26. The 8D (Eight Disciplines) Problem-Solving Process is an approach for solving problems in a disciplined way Plan Establish the Team Describe the Problem Develop an Interim Containment Action Define & Verify Root Cause Choose & Verify Permanent Corrective Action 8D Problem-Solving Process Implement & Validate Permanent Corrective Action Prevent Recurrence © Operational Excellence Consulting. All rights reserved. 26 0 1 2 3 4 5 6 7 8 Recognize the Team
  • 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. 27 Mistake Proofing Process
  • 28. The six sources of variability in a system are used to understand root causes (Manufacturing) Cause & Effect Diagram (Manufacturing) Manpower Methods Machines (or Equipment) Measurement Output © Operational Excellence Consulting. All rights reserved. 28 Materials (or Information) Environment Causes Effect Source: Kaoru Ishikawa
  • 29. 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 Control Analyse to identify root causes Control by standardizing solution and monitoring © Operational Excellence Consulting. All rights reserved. 29 performance Improve by implementing potential solutions Define Measure Analyze Improve Six Sigma DMAIC Model
  • 30. 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 © Operational Excellence Consulting. All rights reserved. 30 1 10 100 Crosby’s Law of 10 Source: Philip Crosby
  • 31. Cost of non-conformance can be eliminated to improve quality Cost of Quality (COQ) Cost of Quality Model Cost of Conformance © Operational Excellence Consulting. All rights reserved. 31 ( COC ) Cost of Non-Conformance ( CONC ) Prevention Cost Appraisal Cost Internal Failures Cost External Failures Cost Sources: J. M. Juran & Philip Crosby
  • 32. Training Within Industry (TWI) skills enable supervisors with the ability to lead, instruct and improve work processes © Operational Excellence Consulting. All rights reserved. 32 Charles Allen 4-Step Learning Process TWI PDCA Cycle Scientific Job Method 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
  • 33. A3 Storyboard Template TITLE / THEME Concise statement of what this A3 storyboard is about. COUNTERMEASURES CHECK RESULTS FOLLOW UP CURRENT STATE Detailed description of the current situation (e.g. process flow, trend chart, Pareto analysis, gap identification and problem statement). Specific goal to address the gap or target state from the current state. © Operational Excellence Consulting. All rights reserved. 33 GOAL ANALYSIS Depiction of analytical techniques to uncover the root causes of the problem or factors that affect the problem in the current state. Alternatively it may be a description of a proposed target state to achieve. A summary of who will do what by when in order to resolve the problem situation or achieve the target date. Quantitative comparison of actual results versus your goal. Summary of follow up action items (e.g. lessons learned, communication to other parties, training, standardization, or other areas). BACKGROUND Relevant historical data and information.
  • 34. PACE Prioritization Matrix Priority © Operational Excellence Consulting. All rights reserved. 34 Ease of Implementation Difficult Low Anticipated Benefit High Action Eliminate Easy Consider
  • 35. © Operational Excellence Consulting. All rights reserved. 35 Payoff Matrix High Benefit Low Cost High Cost Low Benefit BENEFIT: Defects Satisfaction Cost Timeliness COST: Resources Financial, People, Time Least Attractive Most Attractive
  • 36. SERVQUAL model (a.k.a. RATER) can be used to perform a gap analysis of an organization’s service quality performance Responsiveness Assurance Reliability Empathy Tangibles Source: “SERVQUAL” by Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry © Operational Excellence Consulting. All rights reserved. 36 SERVQUAL Model (RATER)
  • 37. The ADKAR Model (Awareness, Desire, Knowledge, Ability, Reinforcement) helps project teams understand the change position of both individuals and groups impacted by a project • Support the change • Participate and engage • How to change • Implement new skills and behaviors • Implement the change • Demonstrate performance © Operational Excellence Consulting. All rights reserved. 37 Source: Prosci ADKAR Model Awareness Desire Knowledge Ability Reinforcement • Understand the need for change • Understand nature of the change • Sustain the change • Build a culture and competence around change
  • 38. Kotter’s Eight Phases of Change © Operational Excellence Consulting. All rights reserved. 38 Source: John Kotter Need for Change Change Behavior Change Direction Change Sustainability 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 7. Consolidate Improvements & Produce More Change 6. Plan for and Create Short Term Wins 8. Institutionalize New Approaches Committed Leadership Kotter’s Change Model
  • 39. About Operational Excellence © Operational Excellence Consulting. All rights reserved. Consulting
  • 40. 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. 40
  • 41. END OF PARTIAL PREVIEW To download this presentation, please visit us at: www.oeconsulting.com.sg © Operational Excellence Consulting. All rights reserved.