Employee Suggestion System (Kaizen Teian)

2. © Operational Excellence Consulting. All rights reserved. 2 Objectives 1. Understand the key elements of suggestion systems 2. Explain how to plan and launch an effective suggestion system 3. Describe how to set up a strategy and mechanism to generate ideas, capture quality ideas, evaluate ideas and sustain a constant flow of ideas 4. Explain how to develop employees to identify opportunities for improvement and write good quality ideas 5. Define success factors for sustaining a suggestion system Copyrights of all the pictures used in this presentation are held by their respective owners. 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 1 Introduction to Kaizen 2 Introduction & Basic Concepts of Suggestion Systems 3 Scope of Suggestions 4 Goals of a Suggestion System 5 Planning & Launching a Suggestion System 6 Roles & Responsibilities 7 The Suggestions Process 8 Evaluation & Award Systems 9 Examples of Effective Procedures 10 Techniques for Developing Creativity 11 Examples of Ideas for Improvement 12 Points for Improvement 13 Ways to Develop “Kaizen Eyes” 14 How to Sustain a Suggestion System Outline

4. © Operational Excellence Consulting. All rights reserved. 4 ”Engaged” Employees Gallup Global Employee Satisfaction Survey 13% 24% 63% ”Not Engaged” Employees ”Actively Disengaged” Employees 87% of employees “are emotionally disconnected from their workplaces and less likely to be productive” Source: Gallup, 2011-2012

5. © Operational Excellence Consulting. All rights reserved. 5 Dual Aims of a Suggestion System Engaged Employees Promote Organizational Growth Improved QCD Performance Improved Morale Promote Personal Growth

6. © Operational Excellence Consulting. All rights reserved. 6 What is a Suggestion System? • A formalized mechanism which encourages employees to contribute constructive ideas for improving the organization in which they work • The overall aim is to gather, analyze and implement ideas in order to create results that have a positive impact on the business and/or deliver new value to customers

7. © 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

9. © Operational Excellence Consulting. All rights reserved. 9 Two Approaches to Suggestion Systems • Bottom up approach  Let us improve the way we work  Continuous improvement through implemented proposals  High participation • Top down approach  Cash for your ideas  Innovative, big ideas  Low participation

11. © Operational Excellence Consulting. All rights reserved. 11 Push versus Pull Suggestion Systems The Push Method Starting from the present situation, we eliminate inconveniences and irregularities one by one, making continuous improvement one step at a time. Present level The new target, the ideal situation The Pull Method We establish a target and then discover what we need to do to attain it.

12. © Operational Excellence Consulting. All rights reserved. 12 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

13. © Operational Excellence Consulting. All rights reserved. 13 Scope of Suggestions • Acceptable suggestions  Improvement in one’s own work and the working environment  Savings in energy, labor, materials and other resources  Improvement of processes/practices  Improvement on tools, jigs and equipment  Improvement in safety

14. © Operational Excellence Consulting. All rights reserved. 14 Scope of Suggestions • Matters not regarded as suggestions (out of scope)  Company policy  Compensation and benefits  Disputes or grievances  Mere criticisms or complaints lacking constructive reasoning  Jobs carried out under supervisor’s specific instructions

16. © Operational Excellence Consulting. All rights reserved. 16 Goals of a Suggestion System Tangible & Intangible Results Development & Activation of the Organizational Structure Improvement of Performance on the Job (OJT) Effects Participation Development of Skills 1 3 2 Source: Kaizen Teian 1 - Developing Systems for Continuous Improvement Through Employee Suggestions

17. © Operational Excellence Consulting. All rights reserved. 17 Two trends and two methods for creating added value Source: Kaizen Teian 1 Creating Profit Mainly creative ideas helping to develop sales Mainly creative ideas helping to improve productivity and administration Improving image by improving service Opening markets and developing business Continuous Improvement Keeping costs down Efficiency and rationalization eliminating poor quality Cost Creating Added Value Major Innovation

18. © Operational Excellence Consulting. All rights reserved. 18 Link Between Mechanism & Strategy  System  Organization  Regulations  Awards system  Evaluation standards  Proposal forms Proposal Activity  Education and training  Campaigns  Promotional activities  Encouragement  Guidance and assistance Mechanism (“Hardware”) Strategy (“Software”)

19. © Operational Excellence Consulting. All rights reserved. 19 The Suggestion Box is Obsolete 1. Employees can come forward with proposals 2. It is alright if employees make proposals 3. It is alright if employees don’t make proposals Suggestion Box A passive suggestion box is a lazy system.

20. © Operational Excellence Consulting. All rights reserved. 20 Walking Suggestion Boxes • A proactive system to solicit ideas from employees • Managers may write proposals on behalf of employees Let’s think of ideas to improve our work methods!

21. © Operational Excellence Consulting. All rights reserved. 21 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 Circles

22. © Operational Excellence Consulting. All rights reserved. 22 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

24. © Operational Excellence Consulting. All rights reserved. 24 Typical Suggestion Flow Participant writes idea on form Participant submits form to Department Representative Department Representative submits form to Section/Department head for comments & approval Submit form to Suggestion Committee for evaluation, feedback and implementation

25. © Operational Excellence Consulting. All rights reserved. 25 Old-style Evaluation System Evaluation Criteria Scale of Criteria / Scores Effectiveness (50%) Extremely effective Fairly effective Somewhat effective Minimally effective 50 ~ 36 35 ~ 21 20 ~ 11 10 ~ 5 ~ 0 Applicability (10%) Immediately applicable Preparation needed Consideration needed Further reconsideration needed for potential future application 10 ~ 9 8 ~ 6 5 ~ 4 3 ~ 0 Originality (20%) Highly original / Excellent idea Fairly original / Very good idea Partially borrowed idea but good Unoriginal / Shallow idea 20 ~ 16 15 ~ 11 10 ~ 6 5 ~ 3 ~ 0 Effort (20%) Maximum effort Considerable effort Small effort Minimal effort 20 ~ 16 15 ~ 11 10 ~ 6 5 ~ 3 ~ 0 Table of Criteria for Evaluating General Suggestions

26. © Operational Excellence Consulting. All rights reserved. 26 Three Dimensions of Evaluation Idea development Effect Kaizen 3 Levels: • Level 1 – Observation and perception (pointing out problems and making them public) • Level 2 – Original ideas (making proposals for improvement) • Level 3 – Implemented proposals (proposals have been implemented and an effect has been achieved) = not bad, so- so = good = very good 3 Grades of Quality

27. © Operational Excellence Consulting. All rights reserved. 27 Quick Evaluation Chart So-so Good Very Good Effect of implementation ¥200 ¥500 ¥1,000 or more Idea development Participation Bonus ¥200 ¥500 Perceptiveness (problem identification) Rejected Participation Award ¥200 Level Dimension

28. © Operational Excellence Consulting. All rights reserved. 28 Improvement Proposal Form Employee’s Self-evaluation (Mark only one award amount as your bonus payment.) Decision of first reviewer (¥1,000 or less) (Mark only one award amount.) Decision of committee Guidance and response of the first reviewer (or written opinion of the committee) Title of Proposal Date Name Department Always include an explanatory diagram or illustration. (Append extra sheets if necessary.) Explain clearly and concisely the main points of the proposal. Effect ☐ Already implemented ☐ Not yet implemented (anticipated effect) Countermeasure (idea) Problem areas (identification) First reviewer (initials)

29. © Operational Excellence Consulting. All rights reserved. 29 Guidelines for Evaluating Suggestions • As a general rule, suggestions should be evaluated and returned within one month of submission • Priority for evaluation should be given to suggestions received from other business units/departments

30. © Operational Excellence Consulting. All rights reserved. 30 Example: Best Suggestion Awards • Best suggestion of the quarter award • Best suggestion of the year award • Most innovative suggestion award • Highest number of suggestions of the year award

31. © Operational Excellence Consulting. All rights reserved. 31 Techniques for Developing Creativity 1. Listing Faults 2. Listing Wishes 3. Listing Characteristics 4. The Gordon Method 5. The Checklist Method

32. © Operational Excellence Consulting. All rights reserved. 32 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

33. © Operational Excellence Consulting. All rights reserved. 33 How to Formulate a Good Quality Suggestion Locate a Problem Investigate the Problem Examine the Problem Devise the Solution(s) Consider its Feasibility Fill out the Suggestion Form Submit the Suggestion Are there any irrationalities? (Find out exactly where) What are the circumstances? (Get the facts) Why doesn’t it work? (Find out the reason) How could it be done more easily, quickly, cheaply or accurately? (Think up ideas) Is it feasible? Would it be effective? (Work out the best method) Decide on a final written version (Explain the idea fully and clearly) Put into practice all that is within your capacity

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

Employee Suggestion System (Kaizen Teian)

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