Improving Performance in Operations

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David Lengacher, Six Sigma MBB
Adjunct Prof., Univ. of Maryland
Principal, Concurrent Tech. Corp.

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  • …so we’re going to talk a lot about preparedness
  • Sometimes as little as 600 words.Ask yourself this….when will you make the transition from consuming advice/information….to producing it for others to consume.
  • Exercise: Now write down how you can take advantage of that fear….and convert it into action that reduces the odds of that fear ever becoming a reality.
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  • Improving Performance in Operations

    1. 1. Improving Performance in Operations<br />David Lengacher, Six Sigma MBB<br />Adjunct Prof., Univ. of Maryland<br />Principal, Concurrent Tech. Corp.<br />dclengacher@gmail.com<br />
    2. 2. Intro<br />Who are you and what brought you here?<br />Your dream job, position, or title?<br />
    3. 3. Performance & Leadership<br />You can affect organizational performance via…<br />Qualitative Skills (our focus today)<br />Quantitative Skills (Lean, Six Sigma, Ops Research)<br />
    4. 4. Leadership: Exterior & Interior<br />
    5. 5. Metaphor<br />
    6. 6. Leadership<br />“Above all other traits and characteristics…. leaders are those who are more PREPARED than anyone else”<br />-Peter Drucker-<br />Preparedness starts with developing situational awareness…<br />
    7. 7. What is SA?<br />…a perception of key details, critical to decision-makers in a complex environment. <br />Takeaway regarding Situational Awareness<br />It’s better to have STRONG opinions and be wrong than it is to be indifferent.<br />Why? Because if you wait for 100% perfect info…you’ll never have a strong opinion. <br />
    8. 8. Situational Awareness<br />Takeaway…<br />Good Leaders have STRONGER opinions about more organizational topics than their subordinates.<br />NOTE: I didn’t say “more accurate opinions”<br />
    9. 9. Test Your SA<br />…of your organization, industry, etc.<br />Name the Top 3 external “risks” facing your org.<br />Name the Top 3 internal “risks” facing your org.<br />“thing” = initiative, product line, etc.<br />
    10. 10. Test Your SA<br />…of your organization, industry, etc.<br />Name the most recent thing your org has stopped doing or divested in.<br />“thing” = initiative, product line, etc.<br />
    11. 11. Test Your SA<br />…of your organization, industry, etc.<br />Name the most recent thing currently under review for divestiture or elimination.<br />“thing” = initiative, product line, etc.<br />
    12. 12. Accurate SA = Correct Language<br />Definitions are IMPORTANT<br />
    13. 13. Test Your SA<br />…of your organization, industry, etc.<br />How does your org define “Efficiency”?<br />How does your org define “Effectiveness”?<br />Future Leaders should have strong opinions about what these terms mean in their current org…<br />
    14. 14. But….<br />….my org doesn’t really use the terms “Efficiency” and “Effectiveness” at work….<br />Don’t be afraid to introduce these terms to your peers and supervisors. <br />“But I might be way off basis?” <br /> Then use industry-specific literature/publications to identify the standard definitions and applications. <br />
    15. 15. Identify Your Information Gaps<br />Find gaps in your awareness of your organization or field and FILL THEM!<br />Write down 1 thing you know you don’t know. <br />
    16. 16. SA includes History<br />SA is not just knowing what an organization is doing or wants to do… but also what it has stopped doing. <br />The past is as important as the present.<br />Become your department’s amateur org-historian. Why? Not to score points at lunch, but to build confidence in your SA.<br />
    17. 17. Growth<br />“The first step in a growth policy is not to decide where and how to grow. It is to decide what to abandon. In order to grow, a business must have a systematic policy to get rid of the outgrown, the obsolete, the unproductive.”<br />-Peter Drucker-<br />
    18. 18. Leadership: Interior<br />
    19. 19. Internal Preparedness <br />Fear <br />Curiosity<br />Belief<br />Behavior<br />Stress<br />Expectations <br />
    20. 20. Fear<br />You can leverage it, but in most cases you will never conquer it. <br />Why? Because fear is natural and is present in every species on Earth. <br />Proof? Just watch Animal Planet!<br />
    21. 21. Fear Pays!<br />
    22. 22. Fear<br />Exercise: Write down 2 of your most recent fears that kept you up at night. 1 personal, 1 professional. <br />Good news: What % of all of your fears have ever came true?<br />
    23. 23. Leveraging Fear<br />If you lie awake at night fearful of losing “X”…<br />…then devote more of your resources to either securing “X”<br />…or liquidate “X” or remove “X” from your life plans. <br />Especially if you realize that “X” does not lie on your critical path!<br />
    24. 24. Leveraging Fear<br />If you lie awake at night fearful of your future<br />…then leverage that fear by taking a multi-pronged approach to standing out from your peers!<br />Ideas:<br />Publish! In newsletters, journals, etc. <br />Don’t just attend conferences…Present!<br />Publish! <br />
    25. 25. Publish Your Thoughts<br />….because the best and brightest people in your peer group are.<br />Exercise: List the 3 places you think your peers are publishing.<br />
    26. 26. Leveraging Fear<br />In summary…<br />You can never conquer all of your fears…<br />But you can covert many of them into TENACITY<br />
    27. 27. Exercise<br />Exercise: How can you use 1 of your fears to drive action?<br />
    28. 28. Curiosity<br />“The single most important trait when selecting a successful player is curiosity. Because a curious person will find solutions to problems before they manifest. A curious person is a prepared person.”<br />-Bobby Knight- <br />
    29. 29. Curiosity<br />Exercise: Who is the most curious person you know? <br />If that person is a 10 on the scale, then rate your own curiosity 1 to 10.<br />
    30. 30. Belief<br />“Think you can or think you can’t. Either way, you’ll be right.”<br />-Henry Ford-<br />
    31. 31. Belief<br />Exercise: Rate how strong your belief is in your own professional capabilities 1 to 10.<br />
    32. 32. Stress<br />“It’s not the load that breaks you down, it’s how you carry it.”<br />-Lena Horne-<br />
    33. 33. Stress<br />Exercise: Rate your ability to handle stress from 1 to 10.<br />
    34. 34. Risks<br />“You can’t steal 2nd base with one foot on 1st.”<br />-Frederick B. Wilson-<br />
    35. 35. Risks<br />Exercise: Name 2 risks that you almost took, but didn’t following through with.<br />Are you more risk-averse or more risk-taking?<br />Exercise: Rate your risk tolerance 1 to 10 (risky)<br />
    36. 36. Risks<br />Regardless of your answer, there is 1 sure-fire way to leverage your current risk tolerance...<br />
    37. 37. Risks<br />TELL OTHERS ABOUT IT!!!<br />
    38. 38. Expectations<br />“Expecting the world to treat you fairly because you’re a good person is like expecting the bull not to attack you because you’re a vegetarian.”<br />-Dennis Wholey-<br />
    39. 39. Expectations<br />Exercise: Rate how aggressive your professional expectations are from 1 to 10<br />
    40. 40. Internal Performance<br />So how can you use these 6 principles to improve your own performance?<br />By reallocating energy within your internal portfolio<br />
    41. 41. As-Is Model…..To-Be Model<br />
    42. 42. How to Take Action<br />
    43. 43. Consider This<br />“People don’t change much. Don’t waste time  trying to put in what was left out. Try to draw out what was left in.”<br />-Warren Buffet-<br />
    44. 44. Best use of Your Time<br />In the next 90 days, you will have xxx hours of free time to devote toward learning or skill building. Which is better for you?<br />Making your strengths even stronger<br />Making your weaknesses less weak<br />i.e. Do you want to be “average” in 5 areas….or an eventual expert in 2 areas?<br />
    45. 45. Interviewing<br />Exercise: Write down the 1 or 2 of the most popular interview tips.<br />What is one of your own tips?<br />
    46. 46. Your Next Interview<br />Don’t sell who are you today….<br />Sell who you will be in 6 months…especially when you take your current tenacious pace of learning and extend it inside the organization. <br />Sell the seed……not the plant! <br />
    47. 47. Your Next Interview<br />Ask them this: “Every organization defines efficiency and effectiveness differently; how do you define them here? <br />Efficiency<br />Effectiveness<br />You’re guaranteed to stump your interviewer and simultaneously look smart.<br />
    48. 48. Your Next Interview<br />Also ask:<br />“Innovation affects every organization differently….what is the most recent innovation that has changed the way you do business?”<br />
    49. 49. What do you see?<br />
    50. 50. From Consumer….To Producer<br />
    51. 51. Learning<br />There is no substitute for experiential or unguided learning.<br /> Classes are good <br /> Amazon.com is better<br />What does your book shelf look like? <br />Does it look like it belongs to the person you want to become? <br />Do you own at least 5 books on your field or position with highlights and sticky notes poking out?<br />
    52. 52. Quantitative Skills<br />
    53. 53. Performance Improvement via Quant<br />Lean Inc Speed/Removing Waste<br />Six Sigma  Reducing Variation<br />Ops Research  Scientific Decision Making<br />
    54. 54. Lean<br />How many units enter the END stage per hour?<br />1 min<br />End<br />A<br />Continuous Operations (aka “warmed-up”)<br />1 min<br />1 min<br />1 min<br />1 min<br />End<br />B<br />2 min<br />2 min<br />1 min<br />1 min<br />End<br />C<br />
    55. 55. Lean<br />Where would you focus your process improvement efforts?<br />1 min<br />End<br />A<br />1 min<br />1 min<br />1 min<br />1 min<br />End<br />B<br />2 min<br />2 min<br />1 min<br />1 min<br />End<br />C<br />
    56. 56. Lean<br />Reducing processing time by 50% does you no good!<br />Why? Because the slowest link defines the speed!<br />1 min<br />2 min<br />1 min<br />1 min<br />End<br />C<br />
    57. 57. Lean<br />Reducing 2 processes by 25% does make a difference<br />1.5 min<br />1.5 min<br />1 min<br />1 min<br />End<br />C<br />
    58. 58. Seven Deadly Wastes<br />Defects<br />Waiting<br />Motion<br />Transportation<br />Inventory/WIP<br />Over-production<br />Over-processing<br />Some organizations add other wastes, particularly injuries and wasted human talents<br />
    59. 59. Defects<br />In service, this can be:<br />Missing information<br />Missing deadlines<br />Incorrect documents<br />Mis-labeling/categorizing<br />Usually detected downstream<br />
    60. 60. Waiting (downtime)<br />Delays between the end of Step 1 and the beginning of Step 2.<br />Because service work is often invisible, process mapping is critical for finding these delays.<br />
    61. 61. Motion<br />Switching screens constantly or having to perform too many keystrokes to accomplish a task.<br />
    62. 62. Inventory / WIP <br />Excess WIP  Slower Reaction Time<br />Look for physical piles of forms (inboxes). <br />List of pending requests in:<br />Email<br />Callers on hold<br />People standing in line<br />
    63. 63. Overproduction<br />Creating product before it is needed<br />Looking busy <br />
    64. 64. Transportation<br />In services, manifests itself as constantly walking down hallways to collect/deliver materials or chasing information.<br />
    65. 65. Over-processing<br />Doing more work than your customer wants:<br />Multiple signatures<br />Over inspection<br />
    66. 66. Over-processing<br />Think of a process that requires multiple approvals. Does your customer think that each approval is adding this his/her value?<br />Would they be just as happy if there was 1 approval so it could get to them faster?<br />If so, then you’re over-processing!<br />
    67. 67. Six Sigma<br />Focuses on reducing variation in the processing of work.<br />Examples of variation in your job?<br />99% Quality <br /> 1% Defects<br />
    68. 68. Good<br />Defects<br />Defects<br />
    69. 69. McDonald’s Drive-Thru<br />Good<br />Defects<br />
    70. 70. How do Lean & SS Interact?<br />What if these are average cycle times? <br /> i.e. What if there is variation from 30 secs to 1.5 mins? <br />1 min<br />1 min<br />1 min<br />1 min<br />End<br />Reduce sources of variation….to both decrease defects….and increase speed!<br />
    71. 71. 99% Yield<br />99% Yield<br />99% Yield<br />80% Yield<br />99% Yield<br />99% Yield<br />99% Yield<br />Quality Level of System<br />75%<br />.99 x .99 x .99 x .80 x .99 x .99 x .99 <br />Identify the Weakest Link<br />
    72. 72. Discussion<br />What is 1 information gap you could fill to help you gain a better Situational Awareness in your current role?<br />

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