Continuous improvement through measurement
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This document discusses implementing continuous improvement systems and processes. It emphasizes monitoring and reviewing performance to provide opportunities for further improvement. Continuous improvement is seen as an ongoing process to enhance quality, flexibility, and reduce costs. It involves managing quality through planning, control, assurance and improvement. Employee engagement and empowerment are key to driving continuous improvement through trust and removing barriers. Performance must be well measured through various metrics and controls to identify opportunities for improvement and manage change.
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Continuous improvement through measurement
- 3. 1 Implement continuous improvement systems and processes
- 4. 2 Monitor and review performance
- 5. 3 Provide opportunities for further improvement
- 7. “No matter how good you get you can always get better, and that’s the exciting part.”
- 8. Organisations need to! IMPROVE JUST TO KEEP PACE WITH THE COMPETITION
- 11. Most businesses exist to provide a ! RETURN ON INVESTMENTS FOR THE OWNER
- 12. D e c r e a s i n g! EXPENSE I n c r e a s i n g! REVENUE
- 13. K e y d r i v e r s f o r i n c r e a s i n g! PROFITABILITY
- 14. INCREASING REVENUE Increased offer Additional customers New markets Upselling Marketing Creating a point of difference
- 15. DECREASING EXPENSE Reducing CODB Improving process Increasing efficiency New methodologies Creative thinking Exploit synergies
- 16. BALANCE B E T W E E N REVENUE & EXPENSES
- 18. INCREASE REVENUE EXPENSES MAY INCREASEo wi ll d ho ork? W w the
- 19. The most s i g n i f i c a n t! IMPROVEMENTS EITHER INCREASE REVENUE OR DECREASE EXPENSES WHILST POSITIVELY IMPACTING MARGIN
- 21. QUALITY means meeting your! CUSTOMERS EXPECTATIONS FIRST TIME - EVERY TIME
- 22. CUSTOMER SATISFACTION IS THE BASIS FOR EVERY SUCCESSFUL BUSINESS
- 23. MANAGING QUALITY Includes the following:! QUALITY PLANNING QUALITY CONTROL QUALITY ASSURANCE QUALITY IMPROVEMENT
- 24. QUALITY R e l a t e s t o! PRODUCTS & SERVICES AND THE MEANS TO ACHIEVE THEIR DELIVERY
- 25. REVENUE CONTROLS PERFORMANCE EXPENSES
- 28. CUSTOMER SATISFACTION PRODUCTIVITY LOGISTICS CHARGESrecalls and defects procurement INDUSTRY BENCHMARKS trends governance EMPLOYEE ATTITUDE
- 29. EFFECTIVE USE OF CONTROLS ALLOWS NAVIGATION & HELPS SET THE AGENDA
- 30. BUSINESSES NEED TO CONTINUALLY IMPROVE If you’re not getting better; you’re probably getting worse!
- 32. “Almost all quality improvement comes via simplification of design, manufacturing... layout, processes, and procedures.”
- 33. QUALITY MANAGEMENT SYSTEMSE AIM TO IMPROV CUSTOMER SATISFACTION & ORGANISATIONAL PERFORMANCE
- 34. HOW CAN WE DO THINGS BETTER?
- 36. RECURRING ACTIVITY TO INCREASE THE ABILITY OF AN ORGANISATION TO FULFILL QUALITY REQUIREMENTS
- 37. A NEVER ENDING SEARCH FOR IMPROVED QUALITY, FASTER RESPONSE, GREATER FLEXIBILITY AND LOWER COSTS
- 38. WHAT ARE SOME BENEFITS OF CONTINUOUS IMPROVEMENT?
- 39. Total Quality Management Quality Assurance Quality Control Inspection
- 40. Quality standards HOW DOES YOUR BUSINESS COMPARE? ISO9000 AS9000
- 41. Set specific aims Prioritise Performance Measures Select Qualitative Examine scale Quantitative PLAN DO ACT STUDY Implement Measure Standardise Analyse Discipline Manage change
- 42. SIMPLE CONTINUAL IMPROVEMENT FLOW CHART
- 43. CONTINUOUS IMPROVEMENT occurs when you have the right CULTURE
- 44. QUALITY MANAGEMENT SYSTEMS NEED TO BE PROCESS DRIVEN; NOT “AD HOC”
- 45. WHO SHOULD BE INVOLVED? WHAT ARE THE BARRIERS? HOW CAN WE INVOLVE AND EMPOWER TEAM MEMBERS? WHAT SYSTEMS DO WE NEED? HOW CAN WE MANAGE DATA AND INFORMATION? MEASURING SUCCESS AND OBTAINING FEEDBACK SUPPORTING TEAM MEMBERS
- 46. NON MANAGEMENT WORKFORCE SENIOR CUSTOMERS MANAGEMENT (INTERNAL/EXTERNAL) CONTINUOUS IMPROVEMENT FRONTLINE SUPPLIERS MANAGERS (INTERNAL/EXTERNAL) REGULATORY AUTHORITIES
- 48. PEOPLE ARE OFTEN RESISTANT TO CHANGE IMPROVEMENT ALWAYS REQUIRES CHANGE
- 49. SEEN IT ALL BEFORE LACK OF KPI STATUS QUO IS MORE COMFORTABLE NEW SKILLS OR KNOWLEDGE MAY BE REQUIRED PROCESS REENGINEERING DAY TO DAY PRIORITIES SENIOR MANAGEMENT SUPPORT
- 50. ENCOURAGE AND VALUE ALL IDEAS hing as a bad idea!!!! There is no such t
- 51. WHEN TEAM MEMBERS ARE PROPERLY ENGAGED; THEY ARE FAR MORE LIKELY TO BE POSITIVE CONTRIBUTORS
- 52. How do you get team members ENGAGED& EMPOWERED !
- 53. It starts with TRUST !
- 54. THE BEST WAY TO FIND OUT IF YOU CAN TRUST SOMEBODY IS TO TRUST THEM
- 55. WHEN YOU HAVE A CULTURE THAT IS BASED ON TRUST; PEOPLE ENJOY COMING TO WORK
- 56. WHEN YOU HAVE A CULTURE THAT IS BASED ON TRUST; PEOPLE CHASE IMPROVEMENT
- 57. WHEN YOU HAVE A CULTURE THAT IS BASED ON TRUST; CONFLICTS GET RESOLVED
- 58. WHEN YOU HAVE A CULTURE THAT IS BASED ON TRUST; PEOPLE GET INVOLVED
- 59. WHEN YOU HAVE A CULTURE THAT IS BASED ON TRUST; PEOPLE SHARE IDEAS
- 61. What are the things that need to be IMPROVED and how do I identify the important ones?
- 63. BUT..HOW?
- 64. REMEMBER THE SCORECARD? How do our What processes shareholders we need to excel see us? at doing? ng up? uriDo we continue ou m eas to improve and re y How do our w aus? customers see H o create value?
- 67. Do you MBWA?
- 68. OPPORTUNITIES FOR IMPROVEMENT ARE EVERYWHERE So long as you Look, Listen and Learn!
- 70. So what needs to CHANGE to get improvement
- 71. CONTINUOUS IMPROVEMENT IS SYSTEM BASED and, normally part of quality management
- 72. REFLECTION/FEEDBACK FROM TEAM MEMBERS PROCESS ENGINEERING CHECKING ADHERENCE TO PROCESS BENCHMARKING AGAINST PRIOR PERFORMANCE BENCHMARKING AGAINST BEST PRACTICE DISCUSSIONS/FEEDBACK FROM INTERNAL CUSTOMERS COMPLIANCE DEFECTS
- 73. DISCUSIONS WITH CUSTOMERS/SUPPLIERS FEEDBACK FROM END USERS COMPLAINTS AND RECALL/REWORKS RESULTS OF AUDITS CONTRACT EXPOSURE AND RISKS SURVEYS/QUESTIONNAIRES ETC SUPPLY REVIEW MEETINGS
- 76. PRODUCTION RATES PRODUCTIVITY recalls and defects CUSTOMER SATISFACTION procurement options ERROR RATES LTIFR EMPLOYEE ATTITUDE TURAROUND TIMES
- 77. HOW DOES YOUR PERFORMANCE MEASURE UP ?
- 78. TABLES EQUIPMENT FAILURES LOCATION MARCH APRIL KEWDALE 6 0 FORRESTFIELD 12 2 GERALTON 9 1 KALGOORLIE 5 7
- 79. CHECK SHEETS FREQUENCY PROBLEM MON TUES WED THUR FRI TOTAL A 3 1 3 2 5 14 B 2 1 2 1 - 6 C 4 7 3 4 1 19 D 1 - 2 - - 3
- 80. FREQUENCY TABLES DURATION OF PHONE CALLS (MINUTES) TIME TALLY FREQUENCY 0-2 11111 11111 11111 11111 11 22 3-5 11111 11111 11 12 6-8 111 3 9-11 1 1
- 81. PIE CHART – REASONS FOR DEFECTS Other Workmanship 3% 10% Parts Failure 12% Late Delivery 46% Missing Components 29%
- 82. PIE CHART – SALES BY QUARTER 1st Quarter 12% 2nd Quarter 8% 4th Quarter 57% 3rd Quarter 23%
- 83. PARETO ANALYIS – REASONS FOR DEFECTS 45 40 35 30 25 20 15 10 5 0 Late Delivery Missing Components Parts Failure Poor Workmanship Other
- 84. PARETO ANALYIS – ORIGIN OF DEFECTS 30 25 20 Despatch 15 Packaging Production 10 5 0 Night Afternoon Day
- 85. HISTOGRAM – WEIGHT DISTRIBUTION 25 20 15 FREQUENCY 10 5 0 196 198 200 202 204 206 208 210 212 WEIGHT
- 86. RUN CHART – YIELD PER YEAR 9 8 7 6 5 PROCESS 4 IMPROVEMENTS 3 2 1 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
- 87. CONTROL CHART – VEHICLE SALES 900 800 700 600 500 400 EXPECTED SALES RANGE 300 200 100 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
- 88. SCATTER DIAGRAM – ERRORS VS COMPLAINTS 16 14 12 10 OPERATOR! ERRORS! 8 6 CUSTOMER! COMPLAINTS! 4 2 0 0! 2! 4! 6! 8! 10! 12! 14!
- 89. Always remember CUSTOMER S E R V I C E
- 90. You may need to INNOVATE for big improvement
- 91. INNOVATION IS PERCEIVED AS A NEW MATCH BETWEEN A NEED AND A SOLUTION Christian Terwiesch and Karl T. Ulrich Innovation Tournaments
- 92. 1 Starts with an IDEA
- 93. 2 Requires the ability to exploit the idea
- 94. 3 Create a benefit for the organisation
- 96. “Here's to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes... the ones who see things differently -- they're not fond of rules... You can quote them, disagree with them, glorify or vilify them, but the only thing you can't do is ignore them because they change things... they push the human race forward, and while some may see them as the crazy ones, we see genius, because the ones who are crazy enough to think that they can change the world, are the ones who do.” Steve Jobs – Apple Co-founder
- 97. INNOVATION INCREASES IN WORKPLACE CULTURES THAT VI VAE L SUTEY D R I
- 98. Think of a change that REVOLUTIONISED THE WAY WE DO THINGS
- 100. BRAINSTORMING MIND MAPPING CAUSE AND EFECT DIAGRAMS FLOW CHARTS SWOT ANALYSIS
- 102. ENCOURAGE PARTICIPANTS TO THINK DIFFERENTLY
- 103. ENCOURAGE PARTICIPANTS TO GET INVOLVED
- 104. AVOID JUMPING STRAIGHT INTO SOLUTION MODE
- 105. I T S A L L A B O U T CAPTURING IDEAS
- 106. MIND MAPPING
- 107. CAUSE & EFFECT
- 108. FLOW CHARTING
- 109. SWOT ANALYSIS
- 110. WHO ARE OUR CUSTOMERS ARE THEY HAPPY?
- 111. HOW CAN WE DO THINGS BETTER FASTER CHEAPER
- 112. WHAT THINGS ARE STOPPING US?
- 115. You will need to manage CHANGE
- 116. TO BECOME DIFFERENT TO UNDERGO ALTERATION, TRANSFORMATION OR TRANSITION TO MOVE FROM A CURRENT STATE OF BEING TO A NEW, DIFFERENT OR MODIFIED STATE
- 118. CHANGE IS INEVITABLE
- 119. CHANGES NEED TO BE PLANNED
- 120. THE WORK THE COSTS THE TIMEFRAME What activities need to be What is the overall budget? What is the program? done? What are the activity costs? What are the activity What resources are needed? dependencies? When will costs be incurred? Should we trial the change What is the critical path? before going live? How will costs be captured? How will the program be What are the downstream What delegated authority tracked? impacts likely to be? processes need exist? What contingency plans do How do we procure? we need? What is the ROI?
- 122. GET FEEDBACK FROM THE TEAMS
- 123. PROVIDE FEEDBACK TO THE TEAMS
- 124. WHO NEEDS TO KNOW ABOUT PROGRESS?
- 125. REPORTS MEETINGS INFORMATION NEEDS TO BE CLEAR CONCISE AND ADDRESS KEY AREAS
- 126. IF THE PLAN GETS OFF TRACK THINGS MAY NEED TO CHANGE
- 127. SUPPORT THE TEAM WITH TRAINING CLEAR GOALS AND EXPECTATIONS MBWA CORRECT TOOLS AND EQUIPMENT ONGOING DIALOGUE
- 128. PEOPLE ARE OFTEN RESISTANT TO CHANGE
- 130. CHANGES ARE BIGGER AND MORE RAPID THAN EVER IN OUR HISTORY
- 131. THE SECRET INGEDREDIENT FOR EFFECTIVELY MANAGING CHANGE IS EFFECTIVE COMMUNICATION
- 132. OPEN AND HONEST
- 133. CLEAR AND CONCISE
- 135. DON’T BE SELECTIVE
- 136. GET BUY-IN FROM OTHERS
- 137. INCREASE OWNERSHIP
- 138. WELL MANAGED CHANGE INCREASES LIKELIHOOD OF SUCCESSFUL OUTCOMES MINIMISES DISRUPTION AND DISSATISFACTION AVOIDS ERRORS HELPS CREATE POSITIVITY ABOUT CHANGE
- 139. IS THE CHANGE PLAN BEING IMPLEMENTED ON TIME AND ON BUDGET? ARE THE TEAM FOLLOWING THE NEW PROCEDURES ASSOCIATED WITH THE CHANGE? HAS THE CHANGE DELIVERED THE EXPECTED OUTCOME?
- 140. It doesn’t stop there IMPROVEMENT Is a continuous cycle
- 141. Many businesses now UNDERSTAND THAT CHANGE IS NOT A “ONE- OFF” EVENT
- 142. TRANSFORMATION IS EMBRACED AS THE WAY THEY DO BUSINESS
- 143. HOW CAN WE ! MAKE THINGS SIMPLER?
- 145. E L I M I N A T I N G! BUREAUCRACY & RED TAPE
- 146. BECOMING MORE FOCUSSED ON DELIVERING EXCEPTIONAL VALUE FOR CUSTOMERS