Assembling an Operational Excellence Team


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Assembling an Operational Excellence Team

  1. 1. John Bratz Assembling an Operational Excellence Team February, 2004
  2. 2. Agenda <ul><li>Overview of Wyeth BioPharma’s OE Program </li></ul><ul><li>OE Execution Methodology </li></ul><ul><li>Project Team Structure </li></ul><ul><li>Lessons Learned </li></ul>
  3. 3. Operational Excellence Program Overview
  4. 4. Wyeth BioPharma’s Operational Excellence Program <ul><li>Program Objectives </li></ul><ul><li>Build a “Culture of Excellence” toward managing our business and business processes </li></ul><ul><li>Internalize a continuous improvement mindset, methods & tools </li></ul><ul><li>Proactively address areas of business & business process inefficiency </li></ul><ul><li>Realize both tangible & strategic benefits </li></ul><ul><ul><li>Cost structure (COGS) </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Compliance </li></ul></ul><ul><ul><li>Improved Job satisfaction </li></ul></ul><ul><ul><li>Speed of execution </li></ul></ul><ul><ul><li>Better understanding of costs </li></ul></ul>
  5. 5. TYPES OF (POOR) QUALITY COSTS <ul><li>Costs of stopping a defect before it happens. </li></ul><ul><li>Costs of inspecting and evaluating work/ product “in-process”. </li></ul><ul><li>Costs of correcting a defect (at the end of the line before it get to the customer.) </li></ul><ul><li>Costs of correcting and recovering from a defect after it has been experienced by the customer. </li></ul>1 - 10 - 100 - RULE! © 2005 Leap Technologies, Inc.  PREVENTION  APPRAISAL  INTERNAL FAILURE  EXTERNAL FAILURE
  6. 6. The Wyeth BioPharma OE Program Includes: <ul><li>Toolsets to address a variety of improvement opportunities </li></ul><ul><li>A standard methodology for applying the tools </li></ul><ul><li>Active learning for project teams (Just-in-Time) </li></ul><ul><li>Mechanisms for identifying and prioritizing improvement projects </li></ul><ul><li>Executive leadership and oversight (Steering Committee) </li></ul><ul><li>A programmatic communications effort </li></ul>Operational Excellence The OE Program is the means by which we will monitor our performance and continuously improve.
  7. 7. Types of Projects Project Types EXECUTIVE ACTION PROJECTS QUICK WIN PROJECTS CORE REDESIGN PROJECTS EXPERT STUDY PROJECTS <ul><li>Process Owner driven </li></ul><ul><li>Decision communication tools </li></ul><ul><li>Within 15 days or less </li></ul><ul><li>Frontline driven </li></ul><ul><li>Action Workout Team tools </li></ul><ul><li>60-days or less implementation </li></ul><ul><li>Cross-functional team driven </li></ul><ul><li>Breakthrough Workout Tools </li></ul><ul><li>60-90 day Sprint to results, 6 month process </li></ul><ul><li>Black Belt or equivalent driven </li></ul><ul><li>Six Sigma Statistical tools </li></ul><ul><li>Greater than six months </li></ul>© 2005 Leap Technologies, Inc.
  8. 8. A Model for Identifying, Prioritizing and Working Projects Train in the Appropriate Operational Excellence Tool set Apply Standard Methodology Deploy Best Practices (Implementation) Control and Monitor Implementation <ul><li>ID opportunities </li></ul><ul><li>Alignment w/ objectives </li></ul><ul><li>Database </li></ul><ul><li>Charter </li></ul>Quick Win Ideas Redesign Expert Executive Action Includes a formal process for surfacing & prioritizing new ideas “ Baseline Analysis” Prioritized projects are categorized by the appropriate Operational Excellence toolset. Pick Projects based on Organizational Strategic goals DMAIC Define, Measure, Analyze, Implement and Control C I DMA
  9. 9. A Model for Sustained OE Key Points <ul><li>Multiple toolsets offer flexibility to address various issues </li></ul><ul><li>Common implementation methodology (DMAIC or other) ensures rigorous application of tools </li></ul><ul><li>Choice of toolset will be based on specific project needs </li></ul><ul><ul><li>Six Sigma, Lean, 5S, Etc. </li></ul></ul><ul><li>Focus on short “sprints” to results (ie: 60-days) </li></ul><ul><ul><li>Maintains focus and intensity </li></ul></ul><ul><li>Teams receive just-in-time training on the specific tools for their project </li></ul><ul><ul><li>“ Active Learning” in conjunction with actual project work </li></ul></ul>Continuous Improvement Tool Box
  10. 10. KEY TOOL: THE HOUSE OF PROCESS INNOVATION FOR PROCESS REDESIGN Keep these strategies and best practices in mind as we proceed on our breakthrough expedition. Supplier Certification Centralization Decentralization Outsourcing Automation Process Customization Cellular/Team-Based Processing Total Preventive Maintenance Quick Changeover Batch Optimization Pull/Kanban Supply Quality Control at the Source Smooth Flow Facility Layout 5 S System Visual Management Internet Communications Level III Level II Level I Standardization Constraint/ Bottleneck Analysis Continuous Quality Smooth Flow Operation No Wasted Resources © 2005 Leap Technologies, Inc.
  11. 11. WHY MEASURE PROCESS CYCLE TIME AND FIRST- PASS YIELD? GREEN MONEY OPPORTUNITY ! Slower Faster Excellent Poor Total First-Pass Yield Total Cycle Time “ AS IS” PROCESS PERFORMANCE “ BEST CASE” PROCESS PERFORMANCE $ $ $ $ $ $ © 2005 Leap Technologies, Inc. Measure of Efficiency and Effectiveness
  12. 12. Trainer/Consultant Strategy <ul><li>Drive the program internally </li></ul><ul><ul><li>Utilize consultants surgically for specific program elements </li></ul></ul><ul><ul><li>Design and startup, Team tools, Training </li></ul></ul><ul><li>Partner with multiple vendors to obtain a full range of services </li></ul><ul><ul><li>Design and startup – Maxiom Consulting Group </li></ul></ul><ul><ul><li>Project team tools & support – Leap Technologies & Maxiom Consulting Group </li></ul></ul><ul><ul><li>Specific toolsets (Lean, 6 σ , etc.) </li></ul></ul><ul><li>License materials and certify internal facilitators/trainers </li></ul><ul><li>Use Wyeth’s internal corporate network to… </li></ul><ul><ul><li>Identify vendors </li></ul></ul><ul><ul><li>Develop best practices and lessons learned </li></ul></ul><ul><ul><li>Teach sections of the training </li></ul></ul>Our Goal: Purchase great tools and training material that we can customize and use internally
  13. 13. THE BREAKTHROUGH WORKOUT ROADMAP 4. 60-Day Wrap-Up Meeting 3. 30-Day Progress Check Meeting <ul><li>Weekly Action Team Meetings and Updates </li></ul>1 . Breakthrough Workshop <ul><li>Transition </li></ul>Prelaunch Planning © 2005 Leap Technologies, Inc.
  14. 14. THE BREAKTHROUGH WORKOUT PARADIGM SHIFT Start by creating critical mass ownership for the POSSIBILITY OF BREAKTHROUGH … Then work to practical implementation within 60 days using Six Sigma, Lean and Workout tools as needed. The 60 Days to Results Rule! © 2005 Leap Technologies, Inc.
  15. 15. OE Execution Methodology
  16. 16. OE Methodology -1 0 1 2 3 4 5 6 Month Baselining Breakthrough Workshop Project Selection Charters ID Team Preparation 60-Day Breakthrough Workout Implementation Design Analyze 30-Day Review 60-Day Review Monthly Progress Check-Up Document Revision Training Feedback/Revise 6-Month Benefits Review 12-Month Benefits Review Protocols Change Controls Piloting Control Plans Benefits Realization 12 DMA I C Measure Control
  17. 17. Common Project Language <ul><li>Ongoing Measurement & Reporting </li></ul><ul><li>6-Month Benefits Review </li></ul><ul><li>12-Month Benefits Review </li></ul><ul><li>Piloting </li></ul><ul><li>Final Data Review & Endorsement </li></ul><ul><li>Document Review & Approval </li></ul><ul><li>Training </li></ul><ul><li>3-Day Kickoff Workshop </li></ul><ul><li>60-Day Breakthrough Workout </li></ul><ul><li>Proposals Developed </li></ul><ul><li>Stakeholder Endorsements </li></ul><ul><li>SOPs Drafted </li></ul><ul><li>Enterprise Baselining </li></ul><ul><li>Project Chartering </li></ul><ul><li>Team Member Identification </li></ul><ul><li>Workshop Scheduling & Planning </li></ul>Control Implement Breakthrough(Design) Pre-Planning Project Phases:
  18. 18. Operational Excellence Pre-Planning Phase Tools Steps Objectives Deliverables <ul><li>Select project </li></ul><ul><li>Develop project charter </li></ul><ul><li>Identify team members, sponsors & other key roles </li></ul><ul><li>Collect baseline data </li></ul><ul><li>Plan and schedule Breakthrough Workout launch </li></ul><ul><li>Prepare team logistics </li></ul><ul><li>Prepare for OE project launch </li></ul><ul><li>Develop the project charter & scope </li></ul><ul><li>Identify and prepare team members and supporting roles </li></ul><ul><li>Potential project opportunities </li></ul><ul><li>Project prioritization and selection tools </li></ul><ul><li>Project charter templates </li></ul><ul><li>Survey/questionnaire template </li></ul><ul><li>Shared team folder </li></ul><ul><li>Project charter </li></ul><ul><li>Team & supporting players identified </li></ul><ul><li>Breakthrough Workshop planned & scheduled </li></ul>
  19. 19. Operational Excellence Pre-Planning Phase Critical Success Factors How Long? Who Is Involved? <ul><li>Approx. 4 weeks </li></ul><ul><li>OE Steering Committee </li></ul><ul><li>OE Coordination Team </li></ul><ul><li>Process SMEs and team members (minimal) </li></ul><ul><li>Identification of project Sponsor </li></ul><ul><li>Clear articulation of scope and charter </li></ul><ul><li>Advance planning (>2wks) for Breakthrough Workshop </li></ul>
  20. 20. Operational Excellence Breakthrough Phase Tools Steps Objectives Deliverables <ul><li>Conduct 3-day Breakthrough Workshop </li></ul><ul><li>Hold weekly team meetings to design solutions </li></ul><ul><li>Develop and document Breakthrough Proposals </li></ul><ul><li>Conduct Stakeholder and Steering Committee reviews for endorsement </li></ul><ul><li>Achieve rapid innovation in support of project goals </li></ul><ul><li>Breakthrough Accelerator tool </li></ul><ul><li>MS Project template </li></ul><ul><li>Weekly team meeting agenda templates </li></ul><ul><li>30-day and 60-day check-in presentation templates </li></ul><ul><li>Proposal and Stakeholder endorsement session templates </li></ul><ul><li>Initial Breakthrough Proposals </li></ul><ul><li>30-day interim report presentation </li></ul><ul><li>Fully documented proposal and plan for endorsement </li></ul><ul><li>Draft SOPs, where required </li></ul><ul><li>Implemented proposals, where possible </li></ul>
  21. 21. Operational Excellence Breakthrough Phase Critical Success Factors How Long? Who Is Involved? <ul><li>Target 60 days </li></ul><ul><li>Project Teams </li></ul><ul><li>OE Coaches </li></ul><ul><li>Project Stakeholders </li></ul><ul><li>OE Steering Committee </li></ul><ul><li>Clear, early direction on Breakthrough Proposals </li></ul><ul><li>Early Stakeholder engagement and ownership of improvement </li></ul><ul><li>Active management of scope </li></ul><ul><li>Full documentation of decisions and rationale </li></ul>
  22. 22. Operational Excellence Implementation Phase Tools Steps Objectives Deliverables <ul><li>Revisit team and champion roles </li></ul><ul><li>Finalize implementation plans </li></ul><ul><li>Conduct pilot projects, where appropriate </li></ul><ul><li>Final review and endorsement of pilot results </li></ul><ul><li>Track and manage implementations </li></ul><ul><li>Achieve rapid implementation of Breakthrough Ideas </li></ul><ul><li>MS Project template </li></ul><ul><li>Implemented proposals </li></ul><ul><li>Results of Proposal pilots </li></ul><ul><li>Intermediate status reports </li></ul><ul><li>Documents revised, where required </li></ul><ul><li>Employees trained, where required </li></ul>
  23. 23. Operational Excellence Implementation Phase Critical Success Factors How Long? Who Is Involved? <ul><li>Variable (generally <6 mos.) </li></ul><ul><li>Project Teams </li></ul><ul><li>OE Coaches </li></ul><ul><li>Project Stakeholders </li></ul><ul><li>OE Steering Committee </li></ul><ul><li>Continued Sr. level (Steering Committee) commitment & attention </li></ul><ul><li>Speedy decision making and issue resolution </li></ul><ul><li>Full documentation of decisions and rationale </li></ul>
  24. 24. Operational Excellence Control Phase Tools Steps Objectives Deliverables <ul><li>Conduct 6 & 12-month benefits reviews </li></ul><ul><li>Identify issues and gaps impacting benefits realization </li></ul><ul><li>Develop recommendations and action plans to close gaps </li></ul><ul><li>Ensure full realization of benefits </li></ul><ul><li>Benefits review template </li></ul><ul><li>Confirmation of benefits realized from project </li></ul><ul><li>Identification of implementation gaps and issues </li></ul><ul><li>Action plans to close gaps </li></ul><ul><li>Full anticipated benefits realized </li></ul>
  25. 25. Operational Excellence Implementation Phase Critical Success Factors How Long? Who Is Involved? <ul><li>2 weeks elapsed time for benefits review </li></ul><ul><li>Project Teams </li></ul><ul><li>OE Coaches </li></ul><ul><li>Project Sponsor </li></ul><ul><li>OE Steering Committee </li></ul><ul><li>Clear documentation of control points and metrics identified in the Breakthrough Proposals </li></ul><ul><li>Data collection on metrics performed prior to benefits review </li></ul><ul><li>Availability of original team to participate in benefits review </li></ul>
  26. 26. OE Pilot Projects – Utilizing Process Redesign <ul><li>Two pilot projects were initiated to test the approach and methodology. </li></ul><ul><ul><li>Streamline the Investigations process </li></ul></ul><ul><ul><li>Streamline the Environmental Monitoring processes </li></ul></ul><ul><li>Each project team went through a 3- day kickoff working session to develop “Breakthrough Proposals”. </li></ul><ul><ul><li>15 proposals were developed; 10 in one team and 5 in the other. </li></ul></ul><ul><li>Each team pursued five proposals for the duration of the 60 day process </li></ul><ul><ul><li>In essence, this created ten mini projects </li></ul></ul>
  27. 27. OE Program Projects <ul><li>Process Redesign - One project has been identified to utilize the Breakthrough methodology. </li></ul><ul><ul><li>Work Order Request process </li></ul></ul><ul><li>Introducing the Action Workout for Quick Win </li></ul><ul><ul><li>Process that has a clear defined focus </li></ul></ul><ul><ul><li>Smaller teams from 4 to 6 SMEs </li></ul></ul><ul><ul><li>Initiative - Verification on Batch Records </li></ul></ul><ul><ul><li>Follows the same 30/60 day timeframe, but is only 10% of teammember’s time </li></ul></ul><ul><ul><li>Finishes within the 60 day timeframe </li></ul></ul>
  28. 28. Project Team Structure
  29. 29. What is a Team? <ul><li>A group of people with complimentary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable. </li></ul>
  30. 30. Team Structure Basic Principles <ul><li>Those closest to a process are the best people to improve the process. </li></ul><ul><ul><li>Cross-functional </li></ul></ul><ul><ul><li>Weighted towards lower organizational levels </li></ul></ul><ul><li>Let the teams do what they’re good at… </li></ul><ul><ul><li>Technical and process knowledge </li></ul></ul><ul><li>… Include support to help members develop new skills </li></ul><ul><ul><li>Expertise in process analysis and improvement tools </li></ul></ul><ul><ul><li>Education and training </li></ul></ul><ul><ul><li>Benefits quantification </li></ul></ul><ul><li>… and offload other activities that will slow their work. </li></ul><ul><ul><li>Team administration and management </li></ul></ul><ul><ul><li>Communications and change management </li></ul></ul><ul><ul><li>Organizational decision-making </li></ul></ul>
  31. 31. Creating Our Teams <ul><li>Facilitator, Team Leader, Team members </li></ul><ul><li>6 to 8 individuals </li></ul><ul><ul><li>Can go as high as 10 </li></ul></ul><ul><li>Cross-functional </li></ul><ul><li>Subject Matter Experts (SME), seeded with fresh pair of eyes </li></ul><ul><li>Coordination resources participate to smooth team administration and provide direction/education </li></ul><ul><li>Balance political, developmental objectives with effectiveness </li></ul>
  32. 32. Sample OE Team Composition <ul><li>OE Coordination – Methods Expert & Facilitation </li></ul><ul><li>Process owner </li></ul><ul><li>Site Quality </li></ul><ul><li>Site Manufacturing </li></ul><ul><li>Site Operations </li></ul><ul><li>Two to four other members from various disciplines depending on project focus </li></ul>
  33. 33. BREAKTHROUGH WORKOUT ROLES AND RESPONSIBILITIES <ul><li>SPONSOR MANAGER(S) </li></ul><ul><li>Charters the project. </li></ul><ul><li>Reviews work products and provides input. </li></ul><ul><li>Both “Tollgate” and “Paymaster” for implementation decisions. </li></ul><ul><li>TEAM LEADER(S) </li></ul><ul><li>Designated liaison to Sponsors. </li></ul><ul><li>Orchestrates weekly Action Meetings. </li></ul><ul><li>BREAKTHROUGH TEAM </li></ul><ul><li>Stakeholder group representatives. </li></ul><ul><li>Creates the breakthrough design and implementation strategies. </li></ul><ul><li>Committed to project completion. </li></ul><ul><li>BREAKTHROUGH COACH(ES) </li></ul><ul><li>Facilitates Breakthrough Workshop, Progress Check and Wrap-Up Meetings. </li></ul><ul><li>Provides access/coordinates use of other continuous improvement tools and resources. </li></ul>© 2005 Leap Technologies, Inc.
  34. 34. Creating The Team Environment <ul><li>Align the organization prior to mobilizing teams </li></ul><ul><li>Provide structure and a clear path forward from the outset </li></ul><ul><ul><li>Team “Speed-to-Effectiveness” is critical to meet 60-day timeframe </li></ul></ul><ul><ul><li>Structured process & formalized team tools are essential </li></ul></ul><ul><li>Set clear, achievable objectives and expectations (Charter) </li></ul><ul><li>Proactively communicate to the organization </li></ul><ul><ul><li>Get in front of distracting rumors </li></ul></ul><ul><li>Provide an infrastructure that helps collaboration and supports information flow </li></ul><ul><ul><li>Document repository, Shared folders, standard tools, etc… </li></ul></ul>It is important to remove the organizational and individual “friction” that will keep teams from working well together
  35. 35. Team Meetings <ul><li>Scheduled immediately after kickoff </li></ul><ul><li>Full Team </li></ul><ul><ul><li>Weekly, consistent day and time </li></ul></ul><ul><ul><li>Duration - 2 hours </li></ul></ul><ul><ul><li>Status update, issue resolution, planning, and education </li></ul></ul><ul><ul><li>“ Work” performed in between </li></ul></ul><ul><ul><li>Focused </li></ul></ul><ul><li>Sub-Teams </li></ul><ul><ul><li>Weekly, consistent day and time </li></ul></ul><ul><ul><li>Working meeting </li></ul></ul><ul><ul><li>Conduct investigation, analysis, and design activities </li></ul></ul><ul><li>Effectiveness </li></ul><ul><ul><li>Follow standard agenda, define roles, stay focused </li></ul></ul>
  36. 36. Lessons Learned
  37. 37. Heard This Before? “ This is just the next flavor of the month. From where I stand it seems like the “same old, same old.” Nobody’s asking the people who really do the work what they think.” - Frontline Supervisor
  38. 38. Lessons Learned in Assembling the Teams <ul><li>Uncover “hidden” conflicts </li></ul><ul><ul><li>25% commitment turns to 60-70% for some key members </li></ul></ul><ul><ul><li>Opportunities to coordinate resource requirements with other efforts </li></ul></ul><ul><li>Cross-functional does not mean all-functional </li></ul><ul><ul><li>Politics and organizational bias can burden the process </li></ul></ul><ul><ul><li>Don’t need representation from all functional groups, good mix </li></ul></ul><ul><li>External processes and decision making get in the way. </li></ul><ul><ul><li>Steering Committee was too high a level to get to for quick decisions </li></ul></ul><ul><ul><li>Stakeholder groups (decision making bodies) were developed for the proposals </li></ul></ul><ul><ul><li>Early involvement with Stakeholders </li></ul></ul><ul><li>Start with Outside-In thinking </li></ul><ul><ul><li>Allow teams to think outside the box, with not too many restrictions, rather than improving the “as-is” </li></ul></ul><ul><ul><li>Strip away the job titles in the team, everyone on the same playing field </li></ul></ul><ul><li>Conflict resolution </li></ul><ul><ul><li>Clear escalation procedure within the teams and up through the stakeholders to the Steering Committee </li></ul></ul>
  39. 39. Questions?
  40. 40. Back up slides
  41. 41. HOW BIG IS THE PROBLEM?  But is that the whole story? 25 to 40% of revenue typically is spent on cost of quality activities. © 2005 Leap Technologies, Inc.
  42. 42. WORKSHOP FRAMEWORK - DMAIC D EFINE The Process 1 2 3 4 5 M EASURE “AS IS” Process Performance A NALYZE What Needs to Change I NNOVATE Breakthrough Solutions C ONTROL The Implementation <ul><li>What is it and how is it designed to work? </li></ul><ul><li>How effective and efficient is the process today? </li></ul><ul><li>What are the key leverage points for driving breakthrough performance? </li></ul><ul><li>How do we get there? </li></ul><ul><li>How do we make it happen at “controlled speed.” </li></ul>© 2005 Leap Technologies, Inc.