Planning & Implementing an Effective Staff Suggestion System

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No doubt, employees bestow many improvement ideas. If you don't have a formal system to collect and evaluate the ideas, you will lose them. These ideas can save you money, grow your business, and affect your overall bottom line. A good manager / leader needs to evaluate all ideas prior to selecting (or combining) and implementing the best idea. This formal system details the phases of collecting, evaluating, implementing and rewarding good ideas.

Many companies try to implement a formal suggestion system, but after some time the program slips, loses its focus and benefits. Why? Because the program started with a flawed system. This Staff Suggestion System presentation incorporates best practices from successful companies and teaches the methods to sustain the program. It teaches roles, responsibilities, infrastructure, and how employees should write good ideas.

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Planning & Implementing an Effective Staff Suggestion System

  1. 1. © Operational Excellence Consulting. All rights reserved. 1 Planning & Implementing an Effective Staff Suggestion System © Operational Excellence Consulting. All rights reserved.
  2. 2. © Operational Excellence Consulting. All rights reserved. 4 Contents 1 Introduction & Basic Concepts 2 Scope of Suggestions 3 Goals of a Suggestion System 4 Planning & Launching a Suggestion System 5 Roles & Responsibilities 6 The Suggestions Process 7 Evaluation & Award Systems 8 How to Develop Good Quality Suggestions 9 How to Sustain a Suggestion System Outline This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  3. 3. © Operational Excellence Consulting. All rights reserved. 7 Benefits of a Suggestion System • Improves one’s own work and the working environment • Engages and empowers employees • Creates ownership and trust • Builds teamwork • Enhances communication between employees and management • Improves motivation and morale • Promotes self-development • Discovers hidden talents • Improves customer satisfaction • Improves profitability This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  4. 4. © Operational Excellence Consulting. All rights reserved. 10 Integration with Corporate Initiatives Business Excellence Initiatives Safety Lean5S SSSTQM others Six Sigma This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  5. 5. © Operational Excellence Consulting. All rights reserved. 13 Two Approaches to Suggestion Systems • Traditional approach Cash for your ideas Innovative, big ideas Low participation • Participative approach Let us improve the way we work Continuous improvement through implemented proposals High participation This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  6. 6. © Operational Excellence Consulting. All rights reserved. 16 The Suggestions Cycle Encouraging People to Participate Improvement Proposals Review, Evaluation & Guidance Awards & Recognition Source: Kaizen Teian 1 - Developing Systems for Continuous Improvement Through Employee Suggestions This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  7. 7. © Operational Excellence Consulting. All rights reserved. 19 Scope of Suggestions • Acceptable suggestions Prevention of waste Elimination or simplification of records, data, materials or documents Improvement in quality of products/services Ideas for new products/services Customer retention and satisfaction This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  8. 8. © Operational Excellence Consulting. All rights reserved. 22 Who Can Submit Suggestions? • Individual Staff Manager • Group This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  9. 9. © Operational Excellence Consulting. All rights reserved. 25 Goals of a Suggestion System Tangible & Intangible Results Development & Activation of the Organizational Structure Improvement of Performance on the Job Effects Participation Development of Skills 1 3 2 Source: Kaizen Teian 1 - Developing Systems for Continuous Improvement Through Employee Suggestions This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  10. 10. © Operational Excellence Consulting. All rights reserved. 28 Planning a Suggestion System • Form a Suggestion Committee Get together a small group of people from different functions Integrate your suggestion system into existing in-company productivity initiatives, e.g. Quality CirclesThis document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  11. 11. © Operational Excellence Consulting. All rights reserved. 31 Launching the Suggestion System • Most effective communication is face-to-face • Newsletters and posters • Convention / Conference Opening address by CEO Distribute suggestion form and invite employees to submit at least one suggestion per month • Quick report This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  12. 12. © Operational Excellence Consulting. All rights reserved. 34 Promoting the Suggestion System • Launch an Ideas Day Speech by CEO or senior executive Announce tangible/intangible results achieved Present awards to individuals, groups and departments Share success stories Talks by external speakers on topics related to suggestions Provide refreshments to staff and guests This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  13. 13. © Operational Excellence Consulting. All rights reserved. 37 Role of Suggestion System Committee • Report and brief management on progress of Suggestion System • Obtain funds from management • Hold periodic meetings to discuss and review progress of Suggestion System and solve problems brought up by department representatives This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  14. 14. © Operational Excellence Consulting. All rights reserved. 40 Role of Suggestions Office/ Secretariat • Sets concrete targets, and ensure that the targets are well deployed in each department/function e.g. One suggestion per employee per month • Make monthly and annual plans to attain the targets This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  15. 15. © Operational Excellence Consulting. All rights reserved. 43 Role of Suggestions Office/ Secretariat • Keep a monthly record of the estimated amount of savings made from suggestions • Ensure that the evaluation criteria are clear and well understood by all members of the evaluation committee • Adjust possible discrepancies between departments/ functions to ensure objectivity and fairness This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  16. 16. © Operational Excellence Consulting. All rights reserved. 46 Key Elements of a Suggestion System • A system (or box/boxes/ email/online) to receive suggestions • A format to fill suggestions • A system for registration, response, evaluation, reward, commendation and publicity This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  17. 17. © Operational Excellence Consulting. All rights reserved. 49 Typical Suggestion Flow • Submit to Suggestion Committee Register the suggestion forms and returns acknowledgement slip Sort out those suggestions that are acceptable and recommended for further action Refer unrelated suggestions to relevant department Evaluate suggestions Submit to management for approval of implementation and award Notify staff of suggestion result This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  18. 18. © Operational Excellence Consulting. All rights reserved. 52 Evaluation System • Upon receiving a suggestion form, it will be registered with a serial/reference number and date received • Acknowledgement slips/emails will be sent to the individual or group participants • Evaluation will be carried out by the Suggestion Committee based on defined Evaluation Criteria (see example on next slide) This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  19. 19. © Operational Excellence Consulting. All rights reserved. 55 Guidelines for Evaluating Suggestions General Suggestions • If the suggestion is related to matters concerning: Lines of Business - it should be evaluated by the LOB Departments/Sections - it should be evaluated by the person in charge of the department/section Corporate organization - it should be submitted to the Suggestions Office in the Head Office for evaluation • Need to be objective and fair in evaluations when a suggestion is made verbally This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  20. 20. © Operational Excellence Consulting. All rights reserved. 58 Guidelines for Evaluating Suggestions • If there are delays in evaluation, interim updates should be sent to the submitter of the suggestion • If a suggestion is lost for any reason, appropriate actions should be taken to compensate for the loss This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  21. 21. © Operational Excellence Consulting. All rights reserved. 61 Special Awards • President Award • Committee Chairman Award • Best suggestion of the year award • Accumulated suggestions point award • Best department award • Individual award • Most outstanding/unique suggestion award This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  22. 22. © Operational Excellence Consulting. All rights reserved. 64 Characteristics of a Good Quality Suggestion What Constitute A Good Suggestion? Description Logical The idea makes logical sense Radical The idea is original and surpasses ordinary ways of thinking Practical The suggestion is applicable and effective in producing beneficial results This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  23. 23. © Operational Excellence Consulting. All rights reserved. 67 Techniques for Developing Creativity: 2. Listing Wishes • Not the opposite of listing faults • Create an ideal development in your mind Step 1 – Decide on a subject and describe in words how you wish it to be Step 2 – Consider how these wishes can be realized, listing concrete measures that will enable it to transpire This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  24. 24. © Operational Excellence Consulting. All rights reserved. 70 Techniques for Developing Creativity: 4. The Gordon Method • However, when we concentrate solely on the function of the toaster, namely, “to toast”, our mental image is no longer restricted by the notion of a conventional “toaster” or by the usual property of being “electric”. What other ways are there for toasting bread? This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  25. 25. © Operational Excellence Consulting. All rights reserved. 73 Techniques for Developing Creativity: Assessment of Ideas • Categorize the various ideas derived from brainstorming into one of the 4 boxes • A - Put into practice immediately • B - Make maximum efforts to put the idea into practice • C - Reconsider applicability (idea may be abandoned) • D - Abandon the idea (idea is worthless) C A D B High Low APPLICABILITY High Low EFFICIENCY This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  26. 26. © Operational Excellence Consulting. All rights reserved. 76 Examples of Ideas for Improvement • Upgrade and stabilize product quality • Raise yield rate (prevent defects) • Improve transport, storage and packaging • Economize by substituting materials • Improve handling of materials • Utilize reject products and scrap Products & Materials This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  27. 27. © Operational Excellence Consulting. All rights reserved. 79 Examples of Ideas for Improvement • Standardize and improve quality of design • Reduce designing costs and time expended • Create ideas for new technology • Improve and develop new processing methods • Improve and automate inspection procedures • Prevent problems against warranty claims. Determine better means of handling complaints. Technology This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  28. 28. © Operational Excellence Consulting. All rights reserved. 82 Examples of Ideas for Improvement • Improve product planning – new products and product improvement • Improve sales promotion – sales routes, time of promotion and product demonstration • Improve advertising and publicity – improve company image, sales promotion materials and cost efficiency • Improve service of sales organizations, shops and consumers Sales & Planning This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  29. 29. © Operational Excellence Consulting. All rights reserved. 85 Sustaining the Suggestion System • Periodic company-wide campaign Fix a specific month each half-year/ one year to organize a company-wide campaign to promote suggestions Competition for Department/Team/ Employee which has the most number of suggestions • Special campaign on specific theme Have a period for specific themes such as Quality, Safety, Cost Savings, Sales Promotion, etc. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  30. 30. © Operational Excellence Consulting. All rights reserved. 88 Critical Success Factors • Top management commitment • Involvement of middle management • Promoter or Facilitator • Special gimmicks • Credibility to the workforce – good suggestions are acted upon • Evaluate suggestions fairly This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  31. 31. © Operational Excellence Consulting. All rights reserved. 91 Copyrights of all the pictures used in this presentation are held by their respective owners. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
  32. 32. © Operational Excellence Consulting. All rights reserved. 94 Topics for Group Discussions 1. Employees are not interested in submitting suggestions 2. Employee finds it too much trouble filling out the form 3. How to motivate employees to submit suggestions? 4. How to motivate part-time and temporary employees to submit suggestions? 5. How to formulate suggestions to improve quality? 6. How to promote suggestion activities in functions who are indirectly involved in production? This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/planning-and-implementing-an-effective-staff-suggestion-system-157
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