Business Performance Improvement Models by Operational Excellence Consulting

1. © Operational Excellence Consulting. All rights reserved. This presentation is a collection of PowerPoint diagrams and templates used to convey 40 different business performance improvement models/frameworks. Business Performance Improvement Models Diagrams and Templates of Business Performance Improvement Models

2. © Operational Excellence Consulting. All rights reserved. 2 Contents (1 of 2) 1. Baldrige Performance Excellence Model 2. EFQM Business Excellence Model 3. Australian Business Excellence Framework 4. Deming Prize Framework 5. Total Quality Management Model 6. ISO 9001 Quality Management 7. Balanced Scorecard 8. Strategic Business Planning Methodology 9. Hoshin Kanri Strategy Deployment 10. Xerox Benchmarking Model 11. APQC Benchmarking Methodology 12. Business Process Redesign 13. Six Steps of Kaizen 14. Five Principles of Lean 15. Shingo Model for Operational Excellence 16. Lean Management Model (Toyota Production System) 17. Lean Leadership & Kaizen Model 18. Value Stream Mapping 19. Eight Types of Waste 20. Lean Levers for Waste Elimination NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: http://www.oeconsulting.com.sg

3. © Operational Excellence Consulting. All rights reserved. 3 Contents (2 of 2) 21. House of Gemba 22. Gemba Framework 23. 5S Principles 24. Total Productive Maintenance (TPM) 25. Heinrich’s Rule on Safety 26. Deming Cycle 27. PDCA Problem Solving Process 28. 8D (Eight Disciplines) Problem Solving Process 29. Mistake Proofing Process 30. Cause & Effect Diagram 31. Six Sigma Methodology 32. Cost of Quality Model 33. 1-10-100 Rule 34. Training Within Industry (TWI) 35. PACE Prioritization Matrix 36. Payoff Evaluation Matrix 37. Kano Model 38. RATER Model 39. ADKAR Model 40. Kotter’s Eight Phases of Change

4. © Operational Excellence Consulting. All rights reserved. 4 The Baldrige framework takes a holistic, systems approach in viewing an organization’s performance management system across seven areas Baldrige Excellence Framework Leadership Customers Strategy Operations Workforce Integration RESULTS Measurement, Analysis & Knowledge Management Organizational Profile Source: National Institute of Standards & Technology (NIST)

5. © Operational Excellence Consulting. All rights reserved. 5 EFQM Excellence Model Enablers Results Leadership People Strategy Partnerships & Resources Key Results Processes, Products & Services People Results Customer Results Society Results Learning, Creativity & Innovation EFQM Excellence Model Source: European Foundation for Quality Management (EFQM)

6. © Operational Excellence Consulting. All rights reserved. 6 APQC’s Process Classification Framework (PCF) is a list of processes that organizations use to define work processes comprehensively and without redundancies Source: APQC The APQC Process Classification Framework 1.0 Develop Vision & Strategy 2.0 Design & Develop Products & Services 3.0 Market & Sell Products & Services 4.0 Deliver Products & Services 5.0 Manage Customer Service 6.0 Develop & Manage Human Capital 7.0 Manage Information Technology 8.0 Manage Financial Resources 9.0 Acquire, Construct & Manage Property 10.0 Manage Environmental Health & Safety 11.0 Manage External Relationships 12.0 Manage Knowledge, Improvement & Change MANAGEMENT & SUPPORT PROCESSES OPERATING PROCESSES

7. © Operational Excellence Consulting. All rights reserved. 7 ISO 9001:2015 quality management system establishes proven processes that meet the requirements of interested parties ISO 9001:2015 Quality Management Model (TEMPLATE) Organization and its context (4) Customer Requirements Customer Satisfaction Products and services Results of the QMS Needs and expectations of relevant interested parties (4) Leadership (5) Performance evaluation (9) Support & Operation (7,8) Planning (6) Improvement (10) Plan Do CheckAct

8. © 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 The Balanced Scorecard

9. © Operational Excellence Consulting. All rights reserved. 9 The strategic business planning methodology defines a blueprint for achieving the organization’s future state vision Implementation Formulation Business Strategy Development Business Visioning Strategic Business Review • 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 Strategic Business Planning Methodology 1 2 3 4

10. © 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 Hoshin Kanri Senior Management Implementation Teams Middle Management  Vision  Objectives  Strategy  Resources  Action  Schedule Measures Hoshin Plan

11. © 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 Xerox Benchmarking Model

12. © Operational Excellence Consulting. All rights reserved. 12 APQC four-phase benchmarking methodology provides a simple approach to improve product and process performance Plan CollectAnalyze Adapt Establish the project scope, develop the data collection approach and requirements, and set the criteria for peer groups Collect data 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 APQC Benchmarking Methodology

13. © Operational Excellence Consulting. All rights reserved. 13 Business Process Redesign (BPR) is the fundamental reconsideration and radical redesign of organizational processes Business Process Redesign Model 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. © Operational Excellence Consulting. All rights reserved. 14 The Six Steps of Kaizen is a scientific method used by Toyota for general problem solving and generating original ideas Source: Kato & Smalley 1. Discover Improvement Potential 3. Generate Original Ideas 2. Analyze the Current Methods 4. Develop an Implementation Plan 5. Implement the Plan 6. Evaluate the New Method KAIZEN Six Steps of Kaizen

15. © Operational Excellence Consulting. All rights reserved. 15 Source: The Shingo Prize The Shingo transformation process is a methodology for accelerating a personal and enterprise-wide transformation to a culture of operational excellence The Shingo Model for Operational Excellence Results Enterprise Alignment Continuous Process Improvement Cultural Enablers Create Value for the Customer Measure what Matters Align Behaviors with Performance Identify Cause & Effect Relationships See Reality Focus on Long-term Align Systems Align Strategy Standardize Daily Management Stabilize Processes Relay on Facts & Data Standardize Processes Insist on Direct Observation Focus on Value Stream Keep it Simple & Visual Identify & Eliminate Waste No Defects Passed Forward Integrate Improvement with Work Assure a Safe Environment Develop People Empower & Involve Everyone Create Constancy of Purpose Think Systematically Focus on Process Embrace Scientific Thinking Flow & Pull Value Assure Quality at the Source Seek Perfection Lead with Humility Respect Every Individual GUIDING PRINCIPLES SUPPORTING CONCEPTS ADMINISTRATIONSUPPLY OPERATIONS CUSTOMER RELATIONS PRODUCT & SERVICE DEVELOPMENT

16. © Operational Excellence Consulting. All rights reserved. 16 The House of TPS describes a holistic approach to improving speed and quality Source: Adapted from Toyota Production System House of TPS 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 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

17. © Operational Excellence Consulting. All rights reserved. 17 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 Lean Leadership & Kaizen Model (TEMPLATE)

18. © 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 Value Stream Map

19. © 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 Eight Types of Waste

20. © Operational Excellence Consulting. All rights reserved. 20 The House of Gemba defines a management framework for achieving excellence in Quality, Cost and Delivery (QCD) Profit Management Cost Management Quality & Safety Management Logistics Management Worker’s Operations Equipment Products & Materials Standardization 5S Muda Elimination Morale Enhancement QC Circles Self-discipline Suggestions Teamwork Visual Management Information Source: Masaaki Imai

21. © 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 Gemba Model

22. © Operational Excellence Consulting. All rights reserved. 22 5S principles provide a visual and disciplined approach to workplace organization and improvement 5S Principles Sort Set In OrderShine Standardize Sustain

23. © Operational Excellence Consulting. All rights reserved. 23 The Total Productive Maintenance (TPM) model provides 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) TPM Model

24. © Operational Excellence Consulting. All rights reserved. 24 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 PDCA Cycle or Deming Wheel

25. © Operational Excellence Consulting. All rights reserved. 25 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 PDCA Problem Solving Process

26. © Operational Excellence Consulting. All rights reserved. 26 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 Mistake Proofing Process

27. © Operational Excellence Consulting. All rights reserved. 27 The six sources of variability in a system are used to understand root causes (Manufacturing) Manpower Methods Machines (or Equipment) Measurement Output Materials (or Information) Environment Causes Effect Source: Kaoru Ishikawa Cause & Effect Diagram (Manufacturing)

28. © Operational Excellence Consulting. All rights reserved. 28 Six Sigma DMAIC is a data-driven improvement cycle used for improving, optimizing and stabilizing business processes Six Sigma DMAIC Roadmap Improve Measure Analyze Define Control 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 Six Sigma DMAIC Model

29. © Operational Excellence Consulting. All rights reserved. 29 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 Cost of Quality Model

30. © Operational Excellence Consulting. All rights reserved. 30 The 1-10-100 Rule: A dollar spent on prevention will save 10 dollars on correction and 100 dollars on failure costs Source: Total Quality Management, Joel E. Ross The 1-10-100 Rule Prevention Cost Correction Cost Failure Cost 1 10 100

31. © Operational Excellence Consulting. All rights reserved. 31 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

32. © Operational Excellence Consulting. All rights reserved. 32 The RATER model 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

33. © Operational Excellence Consulting. All rights reserved. 33 Kotter’s Eight Phases of Change provides a roadmap for advancing a culture of performance excellence 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 6. Plan for and Create Short Term Wins 7. Consolidate Improvements & Produce More Change 8. Institutionalize New Approaches Committed Leadership Kotter's Change Model

35. © Operational Excellence Consulting. All rights reserved. 35 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

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