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BUSINESS PROCESS MANAGEMENT
DEVELOPMENT OF HIGH PERFORMANCE FACILITY MANAGEMENT ORGANIZATIONS
Copyright 2014 © Mohammed Hamed Ahmed Soliman 1
PREPARED BY: MOHAMMED HAMED AHMED SOLIMAN
Copyright 2014 © Mohammed Hamed Ahmed Soliman 3
Copyright 2014 © Mohammed Hamed Ahmed Soliman 4
Developing a Strategic Deployment Process
Policy deployment Involve two main pillars:
Direction: we are all moving the same direction, playing the same piece. Imagine each
department is working to its own piece, no alignment, no movement toward a common goals
that will push the organization forward and higher it. Together these departments look
terrible. You really need to get those departments moving to the same direction.
How do you do it (methodology): Leadership development, training, coaching, skills
enhancement, culture change.
Copyright 2014 © Mohammed Hamed Ahmed Soliman
5
Best Management Practice
Linking the strategic depoloyment to the shop floor
Shopfloor Management
Developing a Strategy Mission, Vison, and Values
Aligning the Core Values with the Vision
Action Plan
Motivating People the Right Way
Reponsibility, Delegation and Leadership
Turningaround a Company and changing culture
Business Process Management Elements
Copyright 2014 © Mohammed Hamed Ahmed Soliman 6
Management Best Practices
Oveview on the Old Management Practices (MBO)
For decades, management has relied on the old principle MBO or also called management by
results (MBR) which is a short-term focused method and not a philosophy. The theory that was
invented by Peter Drucker (1954) and is still being taught in many business schools focus only
on the results, the numbers and reward the winner. I don’t care how you will do it as long as
you get the numbers. You may lay off people, ignore the employees training, lose trust with
your employees, break the law, ignore team orientation or produce unsustainable processes to
get the numbers quickly. And as long as you get me the numbers you are fine. Those who
succeed will get rewarded, and those who failed will be punished. This makes people hide
their problem and resistant the change. It creates a very bad culture that we really don’t want
in the continuous improvement environment.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 7
Still many companies are thinking that MBO as a tool is not a problem, but what is MBO as a
tool? It is the managers making decisions about what they believe the business needs to go and
turning those into objectives for their people. Sometimes objectives are being discussed among
group of peoples, but often they are handed down from the top down. Since the focus is on
the results only, there are many lost opportunities.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 8
Traditional management habits focus more on managing people based on command and
control. It is a management through systems. Managers have learned to manage the process
via distance, from their offices, with no direct involvement in the process. They have lost the
connection with the reality. Your job is to manage people. Make them do their jobs and
apply the systems instead of empowering them, developing them, motivating them and
getting them to agree about the problems and seek the solution by themselves with the help
and support from the managers to remove the roadblocks and encourage new ideas. In MBO
managers tend to use metrics to evaluate people and control them instead of using metrics to
evaluate the progress, and guide employees through the right direction. People should have
a degree of autonomy and feel they are contributing in the success of their work rather than
being used to achieve the process results.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 9
Oppositely, modern management focus more on people and how they are going to be
developed to solve their own problems. It is managing through getting people to solve
problems. Management is about teaching and improving. Managing people in a continuous
improvement environment require a strong leadership to achieve the excellence goals.
People are naturally resistant to change, to get them to change the way they behave or act is
very difficult. Plus many people still review lean as a tool for cutting resources. So they will
be fear to lose their jobs as a result from the process improvement efforts. One of the most
common problems face leaders when implementing lean is getting the buy in from the top
senior managers and getting the bottom workers involved. Bottom workers need to feel they
are protected and that lean won’t make them lose their jobs. Layoff must be separated from
the process improvement results. Managers usually face a problem of getting people
involved, every time they ask their people to do something they hear them saying “No” or
“Get someone else”
Modern Management in the 21th Century
Copyright 2014 © Mohammed Hamed Ahmed Soliman 10
In the continuous improvement strategy, managers should pay attention to details using the
management technique “go and see” and at the same time focus on the strategic thinking and
the north goals unlike MBO which focus only on the strategic thinking and doesn’t link this
to the shop floor efforts. There is a lost connection between the shop floor efforts and the
strategic business objectives. The connection is very important so you can get everyone in the
company contribute in achieving the business results.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 11
MBO Industrial Management
Management based on command and
control
Management is based on empowering and
motivating people
Focus on the results Focus on the plan, the method, and the innovation
of the whole system
Reward the individuals Rewarding is based on team accomplishmeents
Promote individualism Promote teamwork
Top down method Top down with linkage to shopfloor
Managing process via distance Managing on shopfloor
Use metrics to evaluate people Give people degree of autonomy and use metrics
to understand the obstacles need to be removed
to assit the people work and the improvement
efforts
Focus on the strategic thinking only Link the strategic thinking to the shopfloor efforts
Vision
Mission
Values
Strategic Objectives
Strategy
Plans
Strategic Planning Main Components
Copyright 2014 © Mohammed Hamed Ahmed Soliman
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Strategic Planning Process
Gather
Facts
SWOT
Analysis
Review
Inputs
Strategic
Matrix
Define
Strategies
Final
Review
Where are you? Where we want to be? How we will do it? How are we doing?
•Overview
•Environmental Scan(SWOT)
•GAPAnalysis
•Benchmark & Competitors
Analysis
•IndustryAnalysis
•Company Performance
•Company Strategies
ExternalAnalysis
•Opportunities
•Threats
InternalAnalysis
•Strengths
•Weakness
•All stakeholders
•Review Inputs
•Review SWOTAnalysis
•Define strategies to
address SWOT
combinations
• OpportunitiesVS
Strengths
•OpportunitiesVS
Weakness
•ThreatsVS Strenghts
•ThreatsVSWeakness
•Objectives
•Key Strategies
•Short & long
term goals
•Operational plans
•All stakeholders
•Review strategies
•Review goals
• Review plans
•Adjust as necessary
Copyright 2014 © Mohammed Hamed Ahmed Soliman
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Copyright 2014 © Mohammed Hamed Ahmed Soliman 14
Copyright 2014 © Mohammed Hamed Ahmed Soliman 15
Vision ‫:ﺍﻟﺭﺅﻳﻪ‬ traditionally, your vision should be 5 years and this statement should be generic
enough that your vision will fit any future acquisitions. Think of your vision in business
terms – such as No. 1 market share, zero warranty cost and 100 percent accountability. Break
those down into concrete goals for your employees and departments to use. Make sure these
goals are concrete and aligned with your strategic business objectives by aligning them with
the value you provide to your customers.
Core Values
Action Plan
How to translate to
plan and repeat the
PDCA cycle
Copyright 2014 © Mohammed Hamed Ahmed Soliman 16
Copyright 2014 © Mohammed Hamed Ahmed Soliman 17
Strategy & Mission ‫ﺃﻭﺍﻻﺳﺗﺭﺍﺗﻳﺟﻳﻪ‬ ‫ﺍﻟﺭﺳﺎﻟﻪ‬ : you will need a strategy statement that articulates
your vision and incorporates the stretch goals that are required to achieve it. Even if your
people don’t fully understand where you are taking them, repeating the words of your strategy
will help them understand that they are part of a team going in the same direction.
It is important that your strategy defines the operational excellence that you envision. For
example, be the leading supplier in your industry or be one of the globe’s top 10 corporations.
‫ﻫﻰ‬ ‫ﺍﻟﺭﺳﺎﻟﻪ‬"‫ﺍﻟﻭﺟﻭﺩ‬ ‫ﺳﺑﺏ‬"‫ﺭﺳﺎﻟﺗﻰ‬ ‫ﺑﻳﻬﺎ‬ ‫ﺃﺣﻘﻖ‬ ‫ﺳﻭﻑ‬ ‫ﺍﻟﺗﻰ‬ ‫ﺍﻟﺧﻁﻪ‬ ‫ﻫﻰ‬ ‫ﻭﺍﻻﺳﺗﺭﺍﺗﻳﺟﻳﻪ‬
Copyright 2014 © Mohammed Hamed Ahmed Soliman
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Nike: "To bring inspiration and innovation to every athlete in the world.“
Starbucks: "To inspire and nurture the human spirit — one person, one cup and one neighborhood at
a time.“
Chevron: "To be the global energy company most admired for its people, partnership and
performance.“
Amazon: "To be the most customer-centric company in the world, where people can find and discover
anything they want to buy online.“
Intel: "Delight our customers, employees and shareholders by relentlessly delivering the platform and
technology advancements that become essential to the way we work and live.“
eBay: "Provide a global trading platform where practically anyone can trade practically anything."
Example: Missions
Mission always indicate the reason for existence
Copyright 2014 © Mohammed Hamed Ahmed Soliman 19
Values ‫ﺍﻟﻘﻳﻡ‬ : core values must be articulated. Achieving excellence requires teamwork, trust
and respect for people. Core values are like guideposts that will point your workforce
toward your ultimate goal of working in a culture of improvement.
The main core values to consider are people, customer and quality. Respect for people is one
of the Toyota production system’s pillars and is the main reason for Toyota’s success.
A policy of not laying off employees because of improving efficiency is a good thing to
follow. Letting workers go after they improve a process will disrupt the whole system, and it
means no improvement in the next time. Employee will resist change as long as it threatens
their livelihoods. If a strategy of respect for people is set, then a 20 percent cost reduction
target clearly means process improvement, not cutting resources. Always remember that a
company can’t change its core values every few years without losing the respect and
confidence of its people.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 20
Challenge
Kaizen
Go & see
Respect for people
Team work
Mutual trust
Core Values are like the Guide Posts
Copyright 2014 © Mohammed Hamed Ahmed Soliman 21
Toyota has 5 core values: challenge, kaizen, go and see, respect for people, and team work
and they strive to build mutual trust with its employees, customers, and suppliers.
1. Challenge: every part of the company from the senior leader to the floor worker is
regularly challenged to continuously improve themselves and the process. The challenge
comes from a definition of the gap between the current state and the ideal state. There
should be a very clear direction of where we want to go. Challenge is about giving a clear
direction and defining success in terms of progress or improvement goals. Rather than
telling people what to do. Challenge is about leading people to agree on a clear description
of the problem, the criteria for an acceptable solution, and the expected pace of progress.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 22
2. Kaizen: kaizen refer to the practice of continuous improvement. Everybody in the
company should practice continuous improvement and problems solving. Problems solving is
the driver of continuous improvement. The rule is no process is perfect. By continuously
improving the process using the Deming cycle P-D-C-A you are moving toward the
perfection and ensuring that the process doesn’t slip back. Kaizen is about improving
operations and striving for innovation and evolution.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 23
3. Go and see: this is a management technique and is considered the foundation of lean
practice. Go and see is about leading from the front by seeing the actual situation, and
meeting with people one-by one to learn, challenge, and support.
4. Respect for people: this includes your people, employees, workers, suppliers and
customers. Respect for your people means developing their skills, teach them problems
solving, commit to their safety and protect their work. Teaching people problem solving is
one of the main requirements of lean success. It is about developing the staff autonomy to
analyze and solve their own problems. This often means giving them a hard time on correctly
visualizing the problem and seeking root causes before jumping to the first obvious solution.
This require day-in, day-out, hands-on coaching. Most importantly, this means giving people
space to think for themselves, and respect their ideas. Respect for people also mean putting
customers first and listen to their needs.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 24
5. Team work: is not a matter of people getting along, but of them solving difficult problems
together. People didn’t need to be friends, they just had to be able to agree to workable
compromises. No team working mean no problem solving. Team work mean cooperation
across functions. For example, production and logistics need to work together to solve
customer delivery problems and setup a proper pull system.
Team work notion extend to both customers and suppliers and not only within the company.
Managers should encourage team working and should clarify enough issues for their
employees so they can work on together. For example, if I can’t see the problems in the
complete value stream, I won’t work with the supplier to solve the inventory problems or
work with the customer to solve the irritable ordering issue and level the production.
Psychological experiments proved that individual development is best in teamwork. People
learn better when work in team. Managers should work to get people with different outlooks
to solve problems together. There is no problem solving in lean environment without a team
work and cooperation.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 25
Mutual trust: you build mutual trust with your people by solving their problems. In lean
management you work with people to solve every problem so that you end up developing a
different kind or relationship with them, which is when mutual trust starts building up. In
MBO, people are being used to deliver the results.
You also build trust with your suppliers by supporting them to improve their process and
work with them as a partner. You build trust with your customers by committing to quality,
safety, reliability and produce a defect-free product. Deliver products on time with no
delays or shortage, and provide value in your service.
To achieve a level of proactive operational excellence that establishes us as
the leader within our industry.
Our maintenance mission is the provision of timely, high quality, cost-effective
service and technical guidance to support short-range and long-range
company's vision and its strategic and operations (production) plan. We will
ensure, through proactive practices rather than reactive, that assets are
maintained to required levels of reliability, availability, output capacity,
quality and customer service. The maintenance mission seeks to continuously
improve work practices and maintenance effectiveness and will actively seek
out and eliminate waste. Our mission is to be fulfilled within a working
environment that fosters the highest levels of safety, morale and job
fulfillment for all members of the maintenance team while protecting the
surrounding environment."
To achieve a level of proactive operational excellence that establishes us as
the leader within our industry.
Copyright 2014 © Mohammed Hamed Ahmed Soliman
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100% On Time Customer
Service
Delivery on Time
Meeting the Customer Takt
Reducing the Machine Cycle
Time
Reduce Machine Downtime
Vision No.1 Leading Supplier in
the Market
Business/strategic Objective
Stretch Goals
Cascaded Goals
Constantly
strengthen
Our base
Operations
Strategy
Operational Level Key Performance Indicators
Copyright 2014 © Mohammed Hamed Ahmed Soliman 28
A strategy of bringing new customers every year require an improvement efforts in
the quality. Building quality for customers can bring new customers to any business.
This require a contribution from the design department, quality department,
production department, and maintenance department to reduce the probability of
failure and improve the process
Ex. Maintenance Objectives
Maintain all our assets and infrastructure on
a planned and scheduled basis.
Extend the life of assets
Improved Reliability and Availability
Enhanced and consistent product quality
Quick response and repair times
Continuity of production and suppliers
Copyright 2014 © Mohammed Hamed Ahmed Soliman 29
SWOT ANALYSIS
Copyright 2014 © Mohammed Hamed Ahmed Soliman 30
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Strenghts: What is the company good at? Why do your customers buy from you? Example
strengths : sales team has excellent skills, quality is excellent. “We have some great design
ideas-if we could only make them work.” Count the good half of the comment as one of the
“strengths” but also consider the negative half. Find out why the strengths don’t always work
and list them under weaknesses.
Weaknesses: This is the other side of the strengths. What do you know you are not good at?
Or not happy with? What you are not doing to a satisfactiory standard? For example, we
have a lot of reworks, there are lots of cash laying on the ground, too many customer
complaints from the delivery,…etc.
Opportunities: What is happening in the marketplace now? What can you see developing in
the future? Do you have extra capacity you can fill?What do your competitors make that you
can do better? Is there any new skills that company need to learn that will open up options?
Threats: This is the opposite of opportunities. Consider any current or potential threats that are
facing the company. Any cash-flow issues? Any foreighn companies competing in the local
market?
Strengths
Sales team.
Design team.
Quality of the product.
Factory and Equipment.
Skilled Labors.
Weakness
Can take too long to complete a design.
No new products has been innovated to enter the
market.
Too much money tied up in the stores.
High reqork costs.
75 percent on-time delivery.
Lake of marketing expertise.
Opportunities
Lower taxes makes good opportunity for
opening new factories.
There is a new product entering the market
that we can compete.
We can fill our extra capacity by selling
new products.
Threats
A competitor has a new product or service.
Bank interest.
Sourcing raw materials.
Global players are increasing.
Over dependence on fewer customers for
business.
SWOT
Copyright 2014 © Mohammed Hamed Ahmed Soliman 32
STRATEGIC PLANNING PROCESSSTRATEGIC PLANNING PROCESS
Mission Vision Guiding Principles
Environmental assessment
Strategies
Strategic Objectives
Action Plans
Broad statements of direction
Capabilities and risks “SWOT”
Things to change or improve
Implementation
Reason for existence Future intent Attitudes and policies
ALIGNING SHOPFLOOR
EFFORTS WITH THE
STRATEGIC OBJECTIVES BY
PERFORMING A GAP
ANALYSIS
Copyright 2014 © Mohammed Hamed Ahmed Soliman 34
SMART Goals/Strategic Objectives Calculations:
Perspective Key Indicator Measuring
Finance
Annual Maintenance Cost Maintenance Cost/ Total Operation Cost
Downtime losses Productivity losses due to maintenance downtimes
Maintainability
Reliability of critical equip Available time/planned
Availability of critical equip Total working time-total downtime/total working time
Training Total training hrs per year
Skills
Crew Efficiency Actual hours completed/ estimated time
Supervision control Unplanned labor hrs/total labor hrs
Planning Planned work Total work actually completed to schedule/total work in schedule
Planned compliance All labor hrs actually completed to schedule/ total labor hrs
PM Performance Backlog ratio
Copyright 2014 © Mohammed Hamed Ahmed Soliman
35
Strategic Objectives & Benchmark
Perspective Key Indicator Current 2011 Internal Benchmark External Benchmark
Finance
Maintenance cost ratio
Downtime losses 0.25% 0.1% 10-20%
Maintainability
Reliability of critical
equip
95% 98% 99.9999%
Availability of critical
equip
98.5% 99.5% 99.9999%
Training
Total training hrs per
year
20-30hrs 100hrs 200hrs
Skills
Crew Efficiency 90% 95% 95%
Supervision control 40% 20% 10%
Planning Planned work 45% 20% 10%
Planned compliance 40% 70% 90%
PM Performance Backlog ratio 20% 30% 50-60%
Copyright 2014 © Mohammed Hamed Ahmed Soliman
36
Perspective Key Indicator 2011 2012 2013 2014 2015
Finance
Maintenance Cost
ratio
Downtime losses 0.25% <0.25% <0.12% <0.1% 0.05%
Maintainability
Reliability of critical
equip
95% >95% 98% 99% 99.9999
%
Availability of critical
equip
98.5% >98.5% 99% 99.5% 99.9999
%
Training
Total training hrs per
year
NA >50hrs >100hrs >150h
rs
200hrs
Skills
Crew Efficiency 90% >90% >92% 95% 98%
Supervision control 40% 30% 20% <20% 10%
Planning Planned work 45% 30% 20% <20% 10%
Planned compliance 40% >50% >75% >80% 90%
PM performance Backlog ratio 20% 30% 40% 50% 60%
Goals & MeasurableTargets
Copyright 2014 © Mohammed Hamed Ahmed Soliman 37
MAINTENANCE STRATEGY MISSIONS
FROM WORLDWIDE LEADERS
Copyright 2014 © Mohammed Hamed Ahmed Soliman 38
Aggressively identify all assets and associated tasks to be included
in the preventive maintenance program and enter this
information into our Database.
Schedule and coordinate preventive maintenance activities to
take full advantage of available human and fiscal resources.
Establish preventive maintenance as our top priority and
measure schedule compliance.
Progressively incorporate facilities/asset condition assessment into the preventive
maintenance program.
Planned and regular maintenance are fully funded on an annual basis.
All stuff to be go in a process of change culture/management process to match the
new maintenance vision.
Optimization the usage of lean principles a long with the maintenance procedures.
Assign a complete performance evaluation system to be declared periodically.
Maintenance Strategies
Copyright 2014 © Mohammed Hamed Ahmed Soliman 39
Strategy” Objectives”
Perspective Objectives/Goals Measurement Parameters Target
Numbers
Initiatives/Methodolog
y
Finance
Reduce maintenance costs Maintenance cost/ total operation cost Cost reduction program
Reduce maintenance downtimes Productivity losses due to maintenance
downtimes
0.05% -/yr TPM & PdM programs
Maintainability
Increase reliability
Available time/planned 2% +/yr Integration of PdM
policy
Increase availability Total working time-total downtime/total
working time
0.5% +/yr RCM
Training Increase training time 50hr +/yr Training program
Skills
Improve crew efficiency Actual hours completed/ estimated time 2% +/yr Training program+7
Wastes
Reduce unplanned hours Unplanned labor hrs/total labor hrs 10 % -/yr New maintenance
planning program
Planning Increase planning performance Total work actually completed to
schedule/total work in schedule
10% -/yr PM follow up program
Increase planning
Time/reduce unplanned
All labor hrs actually completed to
schedule/ total labor hrs
10% +/yr PM program
PM performance Achieve all PM tasks/Increase
PM performance
Backlog ratio 10% +/yr WO system
Copyright 2014 © Mohammed Hamed Ahmed Soliman
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VISION
Next
target
condition
Current
Condition Obstacles
WHAT is the
current
status?
HOW you are
planning to get
through?
WHERE do
you want to
be?
Copyright 2014 © Mohammed Hamed Ahmed Soliman
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Planning Head
Engineers
Technicians
Check & Plan
Sector
Head
Work Strategy
Do
Implement
Report
Check against
plan
Analysis & problem
solving
Change Management
Enterprise
Chairman
Middle Management
Operational Management
Site Implement
Top
Management
Work Order
Detailed Plans
Target Plans
Benchmarking
Smart Objectives
KPIs
Feedback
Evaluation
Copyright 2014 © Mohammed Hamed Ahmed Soliman 43
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Employee Motivation and Creativity
Motivation is a part of the system, in the classic management environment
there is a strong present of the Taylor’s approach. Taylor 1919 quoted “if
each employee's compensation was linked to their output, their productivity
would go up.”
Commonly, happier employees are more productive. Employees should be paid what
provides a standard of living (which is vary from person to another). Financial benefits
and other motives should be adapted and paid wisely.
There is a growing body of evidence that direct incentives often undermine
performance, motivation, and job satisfaction in the real world. Dispute more useful
competing stories of human action, the search for the magic stimulus continue in some
business school classrooms to this day.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 45
Problems with Taylor’s Theory
“Psychological experiments show that paying people to do something that they already want to do either
because they enjoy it or because they want to get good at it can kill the intrinsic motivation. The company
will have to continually provide rewards if it wants to continue to see good behavior."
While Taylor approach focus on individual incentives based on productivity, Toyota focus on team working
and the evaluation is based on the group performance.
According to many psychologists, incentives that is based on individual accomplishment can discourage
team work. And no teamwork mean no problems solving. So incentives should be tied to team work, large
accomplishments and overall performance.
Also what would happen when an improvement project is tied to metrics, and the company has to reduce the
benefits value due to a financial statement? Would employee still working with the same productivity?
According to Taylor, because the employee’s compensation is linked to their output, when compensation is
decreased their output will also decrease?
In Japan Toyota try to avoid tying specific rewards to specific metrics, fearing that employee would focus
narrowly on what is measured and ignore the other parts of the job.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 46
The Alternative to financial Motives in (works good in Japan, USA, and the west
culture)
Morale motives can reduce the demand of the financial thing. There are many alternatives that are
proved to work such as: granting a certificate of appreciation to those who prove good things and
good leadership capability, perform coaching and training and grant a certificate to those who pass
the tests with remarkable results. Tests could be practical and real problem solving ones. And if
employees are practicing what they learn, their learning experience will be increased through the
implementation. Both the organization and the employees are getting a benefit from the system now.
Also with coaching and certificating the successful, people will feel about the investment spent on them.
The certificate can be useful for their future careers.
Using a certain promotion system is also a good motivation way. Those who prove good leadership will
be upgraded position. Those who don’t will attend more training cycles, have fewer people reporting to
them, and will not be upgraded in position until show a good leadership capability.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 47
Better rewarding program – motivating the right behavior:
• Allow employee to share their own ideas for improving their own works. This will make the employee feel
themselves and that they are valuable to the process. Employee should consider the improvement an enjoyable
part of their work rather than a new method to follow. Giving people a degree of autonomy will increase the
self-motivation.
• Use a certain system for promoting positions. Who will be promoted is who will prove good leadership and
problem solving capabilities. Leaders who failed to meet the challenge or achieve the targets won’t be
punished, but will have fewer people reporting to them and may go through more training cycles.
• Senior leaders should act as mentors for the younger leaders. And younger leaders should develop the
working teams. Such a training system will make better environment for learning and encourage self-
development. People should learn how to improve themselves continuously through practicing what they learn.
In such a culture, the system will be appreciated by everyone. People learn more by doing, and then the
practical improvement will increase their learning experience and at the same time meet the company’s needs.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 48
• People are most likely to make progress on goals that are broken into concrete, measurable actions with some
kind of structured accountability and positive reinforcement. Difficult targets that sound impossible creates
problems and disappointment. A target of achieving 90% quality improvement in 6 months sounds non
reasonable. People may play with the numbers, get unsustainable results or unreal improvement. You have to
let your managers and leaders agree that targets are reasonable targets.
• Avoid incentives that are based on individual accomplishments and use awards for team accomplishments and
plant performance. In Japanese culture, there is no reason to incentivize exceptional performance when it is
what is expected. You are basically getting paid to make improvement day by day. However, with the other
different cultures there is a use of some rewards and a bonus system that should be based on a group
performance. If everybody is excellent, then everybody is excellent.
• Having clear purpose and shared indicators of success helps people see not just their own improvements, but
how it ties into the bigger stream. People need a clear direction they need to know where you’re taking them.
Without a clear direction it is hard to focus efforts on what matters. People come to work to succeed. The
manager’s responsibility is to support them so that they do. Every person has the right to succeed every time
they do their job, and they also have the right to have a successful career. And in order to succeed they need
to align their personal success with the value the customer expects. When people feel successful in their job,
they will be motivated to come to work.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 49
• If the company has clear strategic goals, goals that are broken down into achievable metrics, employees will
generate ideas and explain how their ideas are aligned with these goals. The system itself will drive the
motivation and creativity of everyone. There will be no more need for financial motives that undermine
performance and kill motivation. A system that trains supervisors and engineers to listen to the workers’
problems and allows information can be exceptionally motivational.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 50
Human Resources Management
Hiring Employees (The Recruitement Process)
When organizations base their hiring processes on certifications and classic interviews, what
do the companies really know about these individuals, their behaviors and their openness to
change? Do companies really get the results they need?
The hiring process can be improved to select better candidates if the human resources
department, instead of asking for certifications, tests individuals properly and assesses their
skills.
Toyota thinks approaches the hiring process differently. The powerhouse Japanese automaker
wants to hire people who are motivated and highly committed to self-development and self-
education. For Toyota to exceed customer expectations, its employees must do the same.
Toyota tends to assess what its candidates know and how they are going to use that knowledge.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 51
When Toyota started to hire leaders for the New United Motor Manufacturing Inc. (NUMMI) plant, the first
joint venture plant between Toyota and General Motors, the focus was on hiring candidates who had
demonstrated an inherent capacity for self-development and learning. Toyota wanted people who had an
openness and excitement to learning new things.
Toyota also uses a system to test individuals for their abilities to work in a team. A group of candidates is
placed in a meeting room and assigned a problem to solve. Toyota likes to hire the candidates who demonstrate
the ability to function well in a team and devise a solution by working with others.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 52
Japanese culture don’t believe in teaching management in
classrooms. In the Japanese business culture such certifications like
MBA and others don’t matter
Copyright 2014 © Mohammed Hamed Ahmed Soliman 53
1. Committing to self-development
2. Learning to lead at the gemba
3. Learning by teaching and developing others
4. Learning by doing - turning the continuous
improvement cycle PDCA into a learning cycle
5. Implement a project
Toyota Leadership Model
Each point will be discussed in details during the classroom sessions
Copyright 2014 © Mohammed Hamed Ahmed Soliman 54
Organizations should use behavior-based tests and real assessments as part of any recruitment strategy. And
this is where the application of industrial and organization psychology comes in.
In the book Social Psychology and Human Nature, authors Roy F. Baumeister and Brad J. Bushman reported
that most companies use informal and unstructured behavioral interview questions like the following:
• What are your weaknesses?
• Why should we hire you?
• Why do you want to work here?
• What are your goals?
• Why are you leaving your job?
• When were you most satisfied in your job?
• What can you do for us that other candidates can’t?
• What are three positive things your last boss can say about you?
• What salary are you seeking?
Copyright 2014 © Mohammed Hamed Ahmed Soliman 55
According to many psychologists and researchers, such traditional questions don’t serve a company’s real
needs. Improving the hiring process to help generate a culture of change would involve using relative, reasonable
and structured behavior questions such as these:
• Tell me in specific detail about a time when you had to deal with a difficult customer.
• Give me an example of a time when you had to make a decision without a supervisor present.
• Give me a specific example when you demonstrated an initiative in an employment setting.
• Give me an example of a time when you had to work in a team.
• Describe a time when you had to be creative at solving a problem.
Such questions tend to assess leadership and problem-solving skills, which is what most companies really need
anyway.
Copyright 2014 © Mohammed Hamed Ahmed Soliman 56
The Routine of Culture Change
Employees & Workers Culture Change
Enterprise Culture Change
Management Culture Change
To be Discussed in the Classroom!
Copyright 2014 © Mohammed Hamed Ahmed Soliman
57
1. Drucker, P. F. (1954). The practice of management. New York: HarperCollins Publishers.
2. Taylor, F. W. (1911). The principles of scientific management. New York: Harper & Brothers.
3. Liker, J.K. (2003). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. New York:
MacGraw-hill.
4. Liker, J. K., & Convis, G. L. (2012). Toyota way to lean leadership: Achieving and sustaining excellence through
leadership development. New York: MacGraw-hill.
5. Ahmed, M.H. (2013). Lean transformation guidance: Why organizations fail to achieve and sustain excellence through
lean improvement. International Journal of Lean Thinking, 4(1), 31-40. http://thinkinglean.com/img/files/PAPER_4(2).pdf
6. Liker, J.K., & Trachilis, G. (2015). Developing lean leaders at all levels: A practical guide. Lean Leadership Institute
Publications.
7. Soliman, M.H.A. (2015). A new routine for culture change. Industrial Management Magazine, 57(3), 25-30.
Literature References
Copyright 2014 © Mohammed Hamed Ahmed Soliman
58
8. Balle, M., & Balle, F. (2014). Lead with respect: A novel of lean practice. Lean Enterprise Institute.
9. Balle, M., & Balle, F. (2010). Lean manager: A novel of lean transformation. Lean Enterprise Institute.
10. Byrne, A. & Womack, J.P. (2012). The lean turnaround: How business leaders use lean principles to create value and
transform their company. Lean Enterprise Institute.
11. Rother, M. (2009). The Toyota kata: managing people for improvement, adaptiveness and superior results. MacGraw-hill.
12. Kaufman, J. (2012). The personal MBA: Master the art of business. Portfolio.
13. Shook, J. & Womack, J.P. (2008). Managing to learn: Using the A3 management process to solve problems, gain
agreement, mentor and lead. Lean Enterprise Institute.
14. Soliman, M.H.A. (2014). Daily walks train future leaders. Industrial Management Magazine, 56(1), 22-27.
15. Rubin, G. (2011). The Happiness Project. Harper Paperbacks.
www.personal-lean.org
mohammed@personal-lean.org

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Business Process Management - Developing High Performance Facility Management Organizations

  • 1. BUSINESS PROCESS MANAGEMENT DEVELOPMENT OF HIGH PERFORMANCE FACILITY MANAGEMENT ORGANIZATIONS Copyright 2014 © Mohammed Hamed Ahmed Soliman 1
  • 2. PREPARED BY: MOHAMMED HAMED AHMED SOLIMAN
  • 3. Copyright 2014 © Mohammed Hamed Ahmed Soliman 3
  • 4. Copyright 2014 © Mohammed Hamed Ahmed Soliman 4 Developing a Strategic Deployment Process Policy deployment Involve two main pillars: Direction: we are all moving the same direction, playing the same piece. Imagine each department is working to its own piece, no alignment, no movement toward a common goals that will push the organization forward and higher it. Together these departments look terrible. You really need to get those departments moving to the same direction. How do you do it (methodology): Leadership development, training, coaching, skills enhancement, culture change.
  • 5. Copyright 2014 © Mohammed Hamed Ahmed Soliman 5 Best Management Practice Linking the strategic depoloyment to the shop floor Shopfloor Management Developing a Strategy Mission, Vison, and Values Aligning the Core Values with the Vision Action Plan Motivating People the Right Way Reponsibility, Delegation and Leadership Turningaround a Company and changing culture Business Process Management Elements
  • 6. Copyright 2014 © Mohammed Hamed Ahmed Soliman 6 Management Best Practices Oveview on the Old Management Practices (MBO) For decades, management has relied on the old principle MBO or also called management by results (MBR) which is a short-term focused method and not a philosophy. The theory that was invented by Peter Drucker (1954) and is still being taught in many business schools focus only on the results, the numbers and reward the winner. I don’t care how you will do it as long as you get the numbers. You may lay off people, ignore the employees training, lose trust with your employees, break the law, ignore team orientation or produce unsustainable processes to get the numbers quickly. And as long as you get me the numbers you are fine. Those who succeed will get rewarded, and those who failed will be punished. This makes people hide their problem and resistant the change. It creates a very bad culture that we really don’t want in the continuous improvement environment.
  • 7. Copyright 2014 © Mohammed Hamed Ahmed Soliman 7 Still many companies are thinking that MBO as a tool is not a problem, but what is MBO as a tool? It is the managers making decisions about what they believe the business needs to go and turning those into objectives for their people. Sometimes objectives are being discussed among group of peoples, but often they are handed down from the top down. Since the focus is on the results only, there are many lost opportunities.
  • 8. Copyright 2014 © Mohammed Hamed Ahmed Soliman 8 Traditional management habits focus more on managing people based on command and control. It is a management through systems. Managers have learned to manage the process via distance, from their offices, with no direct involvement in the process. They have lost the connection with the reality. Your job is to manage people. Make them do their jobs and apply the systems instead of empowering them, developing them, motivating them and getting them to agree about the problems and seek the solution by themselves with the help and support from the managers to remove the roadblocks and encourage new ideas. In MBO managers tend to use metrics to evaluate people and control them instead of using metrics to evaluate the progress, and guide employees through the right direction. People should have a degree of autonomy and feel they are contributing in the success of their work rather than being used to achieve the process results.
  • 9. Copyright 2014 © Mohammed Hamed Ahmed Soliman 9 Oppositely, modern management focus more on people and how they are going to be developed to solve their own problems. It is managing through getting people to solve problems. Management is about teaching and improving. Managing people in a continuous improvement environment require a strong leadership to achieve the excellence goals. People are naturally resistant to change, to get them to change the way they behave or act is very difficult. Plus many people still review lean as a tool for cutting resources. So they will be fear to lose their jobs as a result from the process improvement efforts. One of the most common problems face leaders when implementing lean is getting the buy in from the top senior managers and getting the bottom workers involved. Bottom workers need to feel they are protected and that lean won’t make them lose their jobs. Layoff must be separated from the process improvement results. Managers usually face a problem of getting people involved, every time they ask their people to do something they hear them saying “No” or “Get someone else” Modern Management in the 21th Century
  • 10. Copyright 2014 © Mohammed Hamed Ahmed Soliman 10 In the continuous improvement strategy, managers should pay attention to details using the management technique “go and see” and at the same time focus on the strategic thinking and the north goals unlike MBO which focus only on the strategic thinking and doesn’t link this to the shop floor efforts. There is a lost connection between the shop floor efforts and the strategic business objectives. The connection is very important so you can get everyone in the company contribute in achieving the business results.
  • 11. Copyright 2014 © Mohammed Hamed Ahmed Soliman 11 MBO Industrial Management Management based on command and control Management is based on empowering and motivating people Focus on the results Focus on the plan, the method, and the innovation of the whole system Reward the individuals Rewarding is based on team accomplishmeents Promote individualism Promote teamwork Top down method Top down with linkage to shopfloor Managing process via distance Managing on shopfloor Use metrics to evaluate people Give people degree of autonomy and use metrics to understand the obstacles need to be removed to assit the people work and the improvement efforts Focus on the strategic thinking only Link the strategic thinking to the shopfloor efforts
  • 12. Vision Mission Values Strategic Objectives Strategy Plans Strategic Planning Main Components Copyright 2014 © Mohammed Hamed Ahmed Soliman 12
  • 13. Strategic Planning Process Gather Facts SWOT Analysis Review Inputs Strategic Matrix Define Strategies Final Review Where are you? Where we want to be? How we will do it? How are we doing? •Overview •Environmental Scan(SWOT) •GAPAnalysis •Benchmark & Competitors Analysis •IndustryAnalysis •Company Performance •Company Strategies ExternalAnalysis •Opportunities •Threats InternalAnalysis •Strengths •Weakness •All stakeholders •Review Inputs •Review SWOTAnalysis •Define strategies to address SWOT combinations • OpportunitiesVS Strengths •OpportunitiesVS Weakness •ThreatsVS Strenghts •ThreatsVSWeakness •Objectives •Key Strategies •Short & long term goals •Operational plans •All stakeholders •Review strategies •Review goals • Review plans •Adjust as necessary Copyright 2014 © Mohammed Hamed Ahmed Soliman 13
  • 14. Copyright 2014 © Mohammed Hamed Ahmed Soliman 14
  • 15. Copyright 2014 © Mohammed Hamed Ahmed Soliman 15 Vision ‫:ﺍﻟﺭﺅﻳﻪ‬ traditionally, your vision should be 5 years and this statement should be generic enough that your vision will fit any future acquisitions. Think of your vision in business terms – such as No. 1 market share, zero warranty cost and 100 percent accountability. Break those down into concrete goals for your employees and departments to use. Make sure these goals are concrete and aligned with your strategic business objectives by aligning them with the value you provide to your customers.
  • 16. Core Values Action Plan How to translate to plan and repeat the PDCA cycle Copyright 2014 © Mohammed Hamed Ahmed Soliman 16
  • 17. Copyright 2014 © Mohammed Hamed Ahmed Soliman 17 Strategy & Mission ‫ﺃﻭﺍﻻﺳﺗﺭﺍﺗﻳﺟﻳﻪ‬ ‫ﺍﻟﺭﺳﺎﻟﻪ‬ : you will need a strategy statement that articulates your vision and incorporates the stretch goals that are required to achieve it. Even if your people don’t fully understand where you are taking them, repeating the words of your strategy will help them understand that they are part of a team going in the same direction. It is important that your strategy defines the operational excellence that you envision. For example, be the leading supplier in your industry or be one of the globe’s top 10 corporations. ‫ﻫﻰ‬ ‫ﺍﻟﺭﺳﺎﻟﻪ‬"‫ﺍﻟﻭﺟﻭﺩ‬ ‫ﺳﺑﺏ‬"‫ﺭﺳﺎﻟﺗﻰ‬ ‫ﺑﻳﻬﺎ‬ ‫ﺃﺣﻘﻖ‬ ‫ﺳﻭﻑ‬ ‫ﺍﻟﺗﻰ‬ ‫ﺍﻟﺧﻁﻪ‬ ‫ﻫﻰ‬ ‫ﻭﺍﻻﺳﺗﺭﺍﺗﻳﺟﻳﻪ‬
  • 18. Copyright 2014 © Mohammed Hamed Ahmed Soliman 18 Nike: "To bring inspiration and innovation to every athlete in the world.“ Starbucks: "To inspire and nurture the human spirit — one person, one cup and one neighborhood at a time.“ Chevron: "To be the global energy company most admired for its people, partnership and performance.“ Amazon: "To be the most customer-centric company in the world, where people can find and discover anything they want to buy online.“ Intel: "Delight our customers, employees and shareholders by relentlessly delivering the platform and technology advancements that become essential to the way we work and live.“ eBay: "Provide a global trading platform where practically anyone can trade practically anything." Example: Missions Mission always indicate the reason for existence
  • 19. Copyright 2014 © Mohammed Hamed Ahmed Soliman 19 Values ‫ﺍﻟﻘﻳﻡ‬ : core values must be articulated. Achieving excellence requires teamwork, trust and respect for people. Core values are like guideposts that will point your workforce toward your ultimate goal of working in a culture of improvement. The main core values to consider are people, customer and quality. Respect for people is one of the Toyota production system’s pillars and is the main reason for Toyota’s success. A policy of not laying off employees because of improving efficiency is a good thing to follow. Letting workers go after they improve a process will disrupt the whole system, and it means no improvement in the next time. Employee will resist change as long as it threatens their livelihoods. If a strategy of respect for people is set, then a 20 percent cost reduction target clearly means process improvement, not cutting resources. Always remember that a company can’t change its core values every few years without losing the respect and confidence of its people.
  • 20. Copyright 2014 © Mohammed Hamed Ahmed Soliman 20 Challenge Kaizen Go & see Respect for people Team work Mutual trust Core Values are like the Guide Posts
  • 21. Copyright 2014 © Mohammed Hamed Ahmed Soliman 21 Toyota has 5 core values: challenge, kaizen, go and see, respect for people, and team work and they strive to build mutual trust with its employees, customers, and suppliers. 1. Challenge: every part of the company from the senior leader to the floor worker is regularly challenged to continuously improve themselves and the process. The challenge comes from a definition of the gap between the current state and the ideal state. There should be a very clear direction of where we want to go. Challenge is about giving a clear direction and defining success in terms of progress or improvement goals. Rather than telling people what to do. Challenge is about leading people to agree on a clear description of the problem, the criteria for an acceptable solution, and the expected pace of progress.
  • 22. Copyright 2014 © Mohammed Hamed Ahmed Soliman 22 2. Kaizen: kaizen refer to the practice of continuous improvement. Everybody in the company should practice continuous improvement and problems solving. Problems solving is the driver of continuous improvement. The rule is no process is perfect. By continuously improving the process using the Deming cycle P-D-C-A you are moving toward the perfection and ensuring that the process doesn’t slip back. Kaizen is about improving operations and striving for innovation and evolution.
  • 23. Copyright 2014 © Mohammed Hamed Ahmed Soliman 23 3. Go and see: this is a management technique and is considered the foundation of lean practice. Go and see is about leading from the front by seeing the actual situation, and meeting with people one-by one to learn, challenge, and support. 4. Respect for people: this includes your people, employees, workers, suppliers and customers. Respect for your people means developing their skills, teach them problems solving, commit to their safety and protect their work. Teaching people problem solving is one of the main requirements of lean success. It is about developing the staff autonomy to analyze and solve their own problems. This often means giving them a hard time on correctly visualizing the problem and seeking root causes before jumping to the first obvious solution. This require day-in, day-out, hands-on coaching. Most importantly, this means giving people space to think for themselves, and respect their ideas. Respect for people also mean putting customers first and listen to their needs.
  • 24. Copyright 2014 © Mohammed Hamed Ahmed Soliman 24 5. Team work: is not a matter of people getting along, but of them solving difficult problems together. People didn’t need to be friends, they just had to be able to agree to workable compromises. No team working mean no problem solving. Team work mean cooperation across functions. For example, production and logistics need to work together to solve customer delivery problems and setup a proper pull system. Team work notion extend to both customers and suppliers and not only within the company. Managers should encourage team working and should clarify enough issues for their employees so they can work on together. For example, if I can’t see the problems in the complete value stream, I won’t work with the supplier to solve the inventory problems or work with the customer to solve the irritable ordering issue and level the production. Psychological experiments proved that individual development is best in teamwork. People learn better when work in team. Managers should work to get people with different outlooks to solve problems together. There is no problem solving in lean environment without a team work and cooperation.
  • 25. Copyright 2014 © Mohammed Hamed Ahmed Soliman 25 Mutual trust: you build mutual trust with your people by solving their problems. In lean management you work with people to solve every problem so that you end up developing a different kind or relationship with them, which is when mutual trust starts building up. In MBO, people are being used to deliver the results. You also build trust with your suppliers by supporting them to improve their process and work with them as a partner. You build trust with your customers by committing to quality, safety, reliability and produce a defect-free product. Deliver products on time with no delays or shortage, and provide value in your service.
  • 26. To achieve a level of proactive operational excellence that establishes us as the leader within our industry. Our maintenance mission is the provision of timely, high quality, cost-effective service and technical guidance to support short-range and long-range company's vision and its strategic and operations (production) plan. We will ensure, through proactive practices rather than reactive, that assets are maintained to required levels of reliability, availability, output capacity, quality and customer service. The maintenance mission seeks to continuously improve work practices and maintenance effectiveness and will actively seek out and eliminate waste. Our mission is to be fulfilled within a working environment that fosters the highest levels of safety, morale and job fulfillment for all members of the maintenance team while protecting the surrounding environment." To achieve a level of proactive operational excellence that establishes us as the leader within our industry. Copyright 2014 © Mohammed Hamed Ahmed Soliman 26
  • 27. Copyright 2014 © Mohammed Hamed Ahmed Soliman 27 100% On Time Customer Service Delivery on Time Meeting the Customer Takt Reducing the Machine Cycle Time Reduce Machine Downtime Vision No.1 Leading Supplier in the Market Business/strategic Objective Stretch Goals Cascaded Goals Constantly strengthen Our base Operations Strategy Operational Level Key Performance Indicators
  • 28. Copyright 2014 © Mohammed Hamed Ahmed Soliman 28 A strategy of bringing new customers every year require an improvement efforts in the quality. Building quality for customers can bring new customers to any business. This require a contribution from the design department, quality department, production department, and maintenance department to reduce the probability of failure and improve the process
  • 29. Ex. Maintenance Objectives Maintain all our assets and infrastructure on a planned and scheduled basis. Extend the life of assets Improved Reliability and Availability Enhanced and consistent product quality Quick response and repair times Continuity of production and suppliers Copyright 2014 © Mohammed Hamed Ahmed Soliman 29
  • 30. SWOT ANALYSIS Copyright 2014 © Mohammed Hamed Ahmed Soliman 30
  • 31. Copyright 2014 © Mohammed Hamed Ahmed Soliman 31 Strenghts: What is the company good at? Why do your customers buy from you? Example strengths : sales team has excellent skills, quality is excellent. “We have some great design ideas-if we could only make them work.” Count the good half of the comment as one of the “strengths” but also consider the negative half. Find out why the strengths don’t always work and list them under weaknesses. Weaknesses: This is the other side of the strengths. What do you know you are not good at? Or not happy with? What you are not doing to a satisfactiory standard? For example, we have a lot of reworks, there are lots of cash laying on the ground, too many customer complaints from the delivery,…etc. Opportunities: What is happening in the marketplace now? What can you see developing in the future? Do you have extra capacity you can fill?What do your competitors make that you can do better? Is there any new skills that company need to learn that will open up options? Threats: This is the opposite of opportunities. Consider any current or potential threats that are facing the company. Any cash-flow issues? Any foreighn companies competing in the local market?
  • 32. Strengths Sales team. Design team. Quality of the product. Factory and Equipment. Skilled Labors. Weakness Can take too long to complete a design. No new products has been innovated to enter the market. Too much money tied up in the stores. High reqork costs. 75 percent on-time delivery. Lake of marketing expertise. Opportunities Lower taxes makes good opportunity for opening new factories. There is a new product entering the market that we can compete. We can fill our extra capacity by selling new products. Threats A competitor has a new product or service. Bank interest. Sourcing raw materials. Global players are increasing. Over dependence on fewer customers for business. SWOT Copyright 2014 © Mohammed Hamed Ahmed Soliman 32
  • 33. STRATEGIC PLANNING PROCESSSTRATEGIC PLANNING PROCESS Mission Vision Guiding Principles Environmental assessment Strategies Strategic Objectives Action Plans Broad statements of direction Capabilities and risks “SWOT” Things to change or improve Implementation Reason for existence Future intent Attitudes and policies
  • 34. ALIGNING SHOPFLOOR EFFORTS WITH THE STRATEGIC OBJECTIVES BY PERFORMING A GAP ANALYSIS Copyright 2014 © Mohammed Hamed Ahmed Soliman 34
  • 35. SMART Goals/Strategic Objectives Calculations: Perspective Key Indicator Measuring Finance Annual Maintenance Cost Maintenance Cost/ Total Operation Cost Downtime losses Productivity losses due to maintenance downtimes Maintainability Reliability of critical equip Available time/planned Availability of critical equip Total working time-total downtime/total working time Training Total training hrs per year Skills Crew Efficiency Actual hours completed/ estimated time Supervision control Unplanned labor hrs/total labor hrs Planning Planned work Total work actually completed to schedule/total work in schedule Planned compliance All labor hrs actually completed to schedule/ total labor hrs PM Performance Backlog ratio Copyright 2014 © Mohammed Hamed Ahmed Soliman 35
  • 36. Strategic Objectives & Benchmark Perspective Key Indicator Current 2011 Internal Benchmark External Benchmark Finance Maintenance cost ratio Downtime losses 0.25% 0.1% 10-20% Maintainability Reliability of critical equip 95% 98% 99.9999% Availability of critical equip 98.5% 99.5% 99.9999% Training Total training hrs per year 20-30hrs 100hrs 200hrs Skills Crew Efficiency 90% 95% 95% Supervision control 40% 20% 10% Planning Planned work 45% 20% 10% Planned compliance 40% 70% 90% PM Performance Backlog ratio 20% 30% 50-60% Copyright 2014 © Mohammed Hamed Ahmed Soliman 36
  • 37. Perspective Key Indicator 2011 2012 2013 2014 2015 Finance Maintenance Cost ratio Downtime losses 0.25% <0.25% <0.12% <0.1% 0.05% Maintainability Reliability of critical equip 95% >95% 98% 99% 99.9999 % Availability of critical equip 98.5% >98.5% 99% 99.5% 99.9999 % Training Total training hrs per year NA >50hrs >100hrs >150h rs 200hrs Skills Crew Efficiency 90% >90% >92% 95% 98% Supervision control 40% 30% 20% <20% 10% Planning Planned work 45% 30% 20% <20% 10% Planned compliance 40% >50% >75% >80% 90% PM performance Backlog ratio 20% 30% 40% 50% 60% Goals & MeasurableTargets Copyright 2014 © Mohammed Hamed Ahmed Soliman 37
  • 38. MAINTENANCE STRATEGY MISSIONS FROM WORLDWIDE LEADERS Copyright 2014 © Mohammed Hamed Ahmed Soliman 38
  • 39. Aggressively identify all assets and associated tasks to be included in the preventive maintenance program and enter this information into our Database. Schedule and coordinate preventive maintenance activities to take full advantage of available human and fiscal resources. Establish preventive maintenance as our top priority and measure schedule compliance. Progressively incorporate facilities/asset condition assessment into the preventive maintenance program. Planned and regular maintenance are fully funded on an annual basis. All stuff to be go in a process of change culture/management process to match the new maintenance vision. Optimization the usage of lean principles a long with the maintenance procedures. Assign a complete performance evaluation system to be declared periodically. Maintenance Strategies Copyright 2014 © Mohammed Hamed Ahmed Soliman 39
  • 40. Strategy” Objectives” Perspective Objectives/Goals Measurement Parameters Target Numbers Initiatives/Methodolog y Finance Reduce maintenance costs Maintenance cost/ total operation cost Cost reduction program Reduce maintenance downtimes Productivity losses due to maintenance downtimes 0.05% -/yr TPM & PdM programs Maintainability Increase reliability Available time/planned 2% +/yr Integration of PdM policy Increase availability Total working time-total downtime/total working time 0.5% +/yr RCM Training Increase training time 50hr +/yr Training program Skills Improve crew efficiency Actual hours completed/ estimated time 2% +/yr Training program+7 Wastes Reduce unplanned hours Unplanned labor hrs/total labor hrs 10 % -/yr New maintenance planning program Planning Increase planning performance Total work actually completed to schedule/total work in schedule 10% -/yr PM follow up program Increase planning Time/reduce unplanned All labor hrs actually completed to schedule/ total labor hrs 10% +/yr PM program PM performance Achieve all PM tasks/Increase PM performance Backlog ratio 10% +/yr WO system Copyright 2014 © Mohammed Hamed Ahmed Soliman 40
  • 41. VISION Next target condition Current Condition Obstacles WHAT is the current status? HOW you are planning to get through? WHERE do you want to be? Copyright 2014 © Mohammed Hamed Ahmed Soliman 41
  • 42. Copyright 2014 © Mohammed Hamed Ahmed Soliman 42 Planning Head Engineers Technicians Check & Plan Sector Head Work Strategy Do Implement Report Check against plan Analysis & problem solving Change Management
  • 43. Enterprise Chairman Middle Management Operational Management Site Implement Top Management Work Order Detailed Plans Target Plans Benchmarking Smart Objectives KPIs Feedback Evaluation Copyright 2014 © Mohammed Hamed Ahmed Soliman 43
  • 44. Copyright 2014 © Mohammed Hamed Ahmed Soliman 44 Employee Motivation and Creativity Motivation is a part of the system, in the classic management environment there is a strong present of the Taylor’s approach. Taylor 1919 quoted “if each employee's compensation was linked to their output, their productivity would go up.” Commonly, happier employees are more productive. Employees should be paid what provides a standard of living (which is vary from person to another). Financial benefits and other motives should be adapted and paid wisely. There is a growing body of evidence that direct incentives often undermine performance, motivation, and job satisfaction in the real world. Dispute more useful competing stories of human action, the search for the magic stimulus continue in some business school classrooms to this day.
  • 45. Copyright 2014 © Mohammed Hamed Ahmed Soliman 45 Problems with Taylor’s Theory “Psychological experiments show that paying people to do something that they already want to do either because they enjoy it or because they want to get good at it can kill the intrinsic motivation. The company will have to continually provide rewards if it wants to continue to see good behavior." While Taylor approach focus on individual incentives based on productivity, Toyota focus on team working and the evaluation is based on the group performance. According to many psychologists, incentives that is based on individual accomplishment can discourage team work. And no teamwork mean no problems solving. So incentives should be tied to team work, large accomplishments and overall performance. Also what would happen when an improvement project is tied to metrics, and the company has to reduce the benefits value due to a financial statement? Would employee still working with the same productivity? According to Taylor, because the employee’s compensation is linked to their output, when compensation is decreased their output will also decrease? In Japan Toyota try to avoid tying specific rewards to specific metrics, fearing that employee would focus narrowly on what is measured and ignore the other parts of the job.
  • 46. Copyright 2014 © Mohammed Hamed Ahmed Soliman 46 The Alternative to financial Motives in (works good in Japan, USA, and the west culture) Morale motives can reduce the demand of the financial thing. There are many alternatives that are proved to work such as: granting a certificate of appreciation to those who prove good things and good leadership capability, perform coaching and training and grant a certificate to those who pass the tests with remarkable results. Tests could be practical and real problem solving ones. And if employees are practicing what they learn, their learning experience will be increased through the implementation. Both the organization and the employees are getting a benefit from the system now. Also with coaching and certificating the successful, people will feel about the investment spent on them. The certificate can be useful for their future careers. Using a certain promotion system is also a good motivation way. Those who prove good leadership will be upgraded position. Those who don’t will attend more training cycles, have fewer people reporting to them, and will not be upgraded in position until show a good leadership capability.
  • 47. Copyright 2014 © Mohammed Hamed Ahmed Soliman 47 Better rewarding program – motivating the right behavior: • Allow employee to share their own ideas for improving their own works. This will make the employee feel themselves and that they are valuable to the process. Employee should consider the improvement an enjoyable part of their work rather than a new method to follow. Giving people a degree of autonomy will increase the self-motivation. • Use a certain system for promoting positions. Who will be promoted is who will prove good leadership and problem solving capabilities. Leaders who failed to meet the challenge or achieve the targets won’t be punished, but will have fewer people reporting to them and may go through more training cycles. • Senior leaders should act as mentors for the younger leaders. And younger leaders should develop the working teams. Such a training system will make better environment for learning and encourage self- development. People should learn how to improve themselves continuously through practicing what they learn. In such a culture, the system will be appreciated by everyone. People learn more by doing, and then the practical improvement will increase their learning experience and at the same time meet the company’s needs.
  • 48. Copyright 2014 © Mohammed Hamed Ahmed Soliman 48 • People are most likely to make progress on goals that are broken into concrete, measurable actions with some kind of structured accountability and positive reinforcement. Difficult targets that sound impossible creates problems and disappointment. A target of achieving 90% quality improvement in 6 months sounds non reasonable. People may play with the numbers, get unsustainable results or unreal improvement. You have to let your managers and leaders agree that targets are reasonable targets. • Avoid incentives that are based on individual accomplishments and use awards for team accomplishments and plant performance. In Japanese culture, there is no reason to incentivize exceptional performance when it is what is expected. You are basically getting paid to make improvement day by day. However, with the other different cultures there is a use of some rewards and a bonus system that should be based on a group performance. If everybody is excellent, then everybody is excellent. • Having clear purpose and shared indicators of success helps people see not just their own improvements, but how it ties into the bigger stream. People need a clear direction they need to know where you’re taking them. Without a clear direction it is hard to focus efforts on what matters. People come to work to succeed. The manager’s responsibility is to support them so that they do. Every person has the right to succeed every time they do their job, and they also have the right to have a successful career. And in order to succeed they need to align their personal success with the value the customer expects. When people feel successful in their job, they will be motivated to come to work.
  • 49. Copyright 2014 © Mohammed Hamed Ahmed Soliman 49 • If the company has clear strategic goals, goals that are broken down into achievable metrics, employees will generate ideas and explain how their ideas are aligned with these goals. The system itself will drive the motivation and creativity of everyone. There will be no more need for financial motives that undermine performance and kill motivation. A system that trains supervisors and engineers to listen to the workers’ problems and allows information can be exceptionally motivational.
  • 50. Copyright 2014 © Mohammed Hamed Ahmed Soliman 50 Human Resources Management Hiring Employees (The Recruitement Process) When organizations base their hiring processes on certifications and classic interviews, what do the companies really know about these individuals, their behaviors and their openness to change? Do companies really get the results they need? The hiring process can be improved to select better candidates if the human resources department, instead of asking for certifications, tests individuals properly and assesses their skills. Toyota thinks approaches the hiring process differently. The powerhouse Japanese automaker wants to hire people who are motivated and highly committed to self-development and self- education. For Toyota to exceed customer expectations, its employees must do the same. Toyota tends to assess what its candidates know and how they are going to use that knowledge.
  • 51. Copyright 2014 © Mohammed Hamed Ahmed Soliman 51 When Toyota started to hire leaders for the New United Motor Manufacturing Inc. (NUMMI) plant, the first joint venture plant between Toyota and General Motors, the focus was on hiring candidates who had demonstrated an inherent capacity for self-development and learning. Toyota wanted people who had an openness and excitement to learning new things. Toyota also uses a system to test individuals for their abilities to work in a team. A group of candidates is placed in a meeting room and assigned a problem to solve. Toyota likes to hire the candidates who demonstrate the ability to function well in a team and devise a solution by working with others.
  • 52. Copyright 2014 © Mohammed Hamed Ahmed Soliman 52 Japanese culture don’t believe in teaching management in classrooms. In the Japanese business culture such certifications like MBA and others don’t matter
  • 53. Copyright 2014 © Mohammed Hamed Ahmed Soliman 53 1. Committing to self-development 2. Learning to lead at the gemba 3. Learning by teaching and developing others 4. Learning by doing - turning the continuous improvement cycle PDCA into a learning cycle 5. Implement a project Toyota Leadership Model Each point will be discussed in details during the classroom sessions
  • 54. Copyright 2014 © Mohammed Hamed Ahmed Soliman 54 Organizations should use behavior-based tests and real assessments as part of any recruitment strategy. And this is where the application of industrial and organization psychology comes in. In the book Social Psychology and Human Nature, authors Roy F. Baumeister and Brad J. Bushman reported that most companies use informal and unstructured behavioral interview questions like the following: • What are your weaknesses? • Why should we hire you? • Why do you want to work here? • What are your goals? • Why are you leaving your job? • When were you most satisfied in your job? • What can you do for us that other candidates can’t? • What are three positive things your last boss can say about you? • What salary are you seeking?
  • 55. Copyright 2014 © Mohammed Hamed Ahmed Soliman 55 According to many psychologists and researchers, such traditional questions don’t serve a company’s real needs. Improving the hiring process to help generate a culture of change would involve using relative, reasonable and structured behavior questions such as these: • Tell me in specific detail about a time when you had to deal with a difficult customer. • Give me an example of a time when you had to make a decision without a supervisor present. • Give me a specific example when you demonstrated an initiative in an employment setting. • Give me an example of a time when you had to work in a team. • Describe a time when you had to be creative at solving a problem. Such questions tend to assess leadership and problem-solving skills, which is what most companies really need anyway.
  • 56. Copyright 2014 © Mohammed Hamed Ahmed Soliman 56 The Routine of Culture Change Employees & Workers Culture Change Enterprise Culture Change Management Culture Change To be Discussed in the Classroom!
  • 57. Copyright 2014 © Mohammed Hamed Ahmed Soliman 57 1. Drucker, P. F. (1954). The practice of management. New York: HarperCollins Publishers. 2. Taylor, F. W. (1911). The principles of scientific management. New York: Harper & Brothers. 3. Liker, J.K. (2003). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. New York: MacGraw-hill. 4. Liker, J. K., & Convis, G. L. (2012). Toyota way to lean leadership: Achieving and sustaining excellence through leadership development. New York: MacGraw-hill. 5. Ahmed, M.H. (2013). Lean transformation guidance: Why organizations fail to achieve and sustain excellence through lean improvement. International Journal of Lean Thinking, 4(1), 31-40. http://thinkinglean.com/img/files/PAPER_4(2).pdf 6. Liker, J.K., & Trachilis, G. (2015). Developing lean leaders at all levels: A practical guide. Lean Leadership Institute Publications. 7. Soliman, M.H.A. (2015). A new routine for culture change. Industrial Management Magazine, 57(3), 25-30. Literature References
  • 58. Copyright 2014 © Mohammed Hamed Ahmed Soliman 58 8. Balle, M., & Balle, F. (2014). Lead with respect: A novel of lean practice. Lean Enterprise Institute. 9. Balle, M., & Balle, F. (2010). Lean manager: A novel of lean transformation. Lean Enterprise Institute. 10. Byrne, A. & Womack, J.P. (2012). The lean turnaround: How business leaders use lean principles to create value and transform their company. Lean Enterprise Institute. 11. Rother, M. (2009). The Toyota kata: managing people for improvement, adaptiveness and superior results. MacGraw-hill. 12. Kaufman, J. (2012). The personal MBA: Master the art of business. Portfolio. 13. Shook, J. & Womack, J.P. (2008). Managing to learn: Using the A3 management process to solve problems, gain agreement, mentor and lead. Lean Enterprise Institute. 14. Soliman, M.H.A. (2014). Daily walks train future leaders. Industrial Management Magazine, 56(1), 22-27. 15. Rubin, G. (2011). The Happiness Project. Harper Paperbacks. www.personal-lean.org mohammed@personal-lean.org