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Driving Continuous Improvement & Innovation
The document outlines key challenges businesses face, emphasizing the importance of customer focus and the consequences of neglecting it, with examples of companies that failed due to arrogance. It discusses strategies for continuous improvement through lean six sigma practices, highlighting three levels of process improvement and the need for effective deployment of organizational goals. Naresh Chawla stresses that effective performance depends on translating strategic intent into actionable objectives and maintaining customer satisfaction.
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Driving Continuous Improvement & Innovation
- 1. Naresh Chawla, MasterBlack Belt Lean Six Sigma & Deployment Practitioner General Manager-Consultancy & Training Division B-102, Industrial Area, Phase-VIII, Mohali-160 059 Ph: 0172-2236187, 6541187, 9779070555 | e-mail: nareshchawla@tqmbizschool.org | www.tqmbizschool.org
- 2. Biggest Challenge forbusiness • To remain successful • Performance follows cyclic Path 2
- 3. It’s a matterof past………. 3
- 4. Competitive Reality ofOur Time 4
- 5. Key Challenges (CustomerPerspective) Reduce Improve After Sale Improve maintenance Service Reliability (Responsiveness) Differen- Cost Reduce tiation/New Initial Cost features Voice of Customer 5
- 6. Key Challenges (BusinessPerspective) Reduce Mitigate Improve operating Customer Competence cost Complaints of Employees Reduce Cost Improve of Inputs Margins Voice of Business 6
- 7. Survival Mantras Surpassing all others Unique Valuable Superior Outstanding The Best Focus 7
- 8. The frog That’s whathappens to Uh oh! those who lose Customer Focus 100oC 50oC 0oC “Body temperature of frog will also start rising” 8
- 9. Lack of CustomerFocus IBM Served the customer the way he wanted. Continued to do business the old way – an example of arrogance and inertia. Market shifted to Servers and PCs. Badly hit & business declined. 9
- 10. Lack of CustomerFocus Motorola Pioneer in implementing Six Sigma Won Malcolm Baldrige National Quality Award in 1987 Turned down AT&T proposal to shift from Analog to Digital. AT & T went to Nokia and rest is history 10
- 11. Indian Examples Brands thatdisappeared Premier Padmini Car Vijay Super Scooter Binny Textiles Because companies refused to change 11
- 12. Continuous Improvement inKey Business Metrics 12
- 13. First Step Translate StrategicIntent into Specific Goals & the Actions Competence Processes Customers Financial Leading Indicators Lagging Indicators 13
- 14. A Chain ofCauses and Effects How do .. who determine shareholders see us? Financial Results our results. How do ..which delight customers see us? Satisfied Customers our customers... What processes ..develop should we Capable Processes & maintain excel at? the processes.. Are we equipped Create the to improve our processes? Competent People competence to .. 14
- 15.
- 16. Develop people &Improve Processes Processes Performance Deployed Ongoing Objectives Improvement Performance time Breakthrough Improvement Performance time Corrective Action time 16
- 17. Three Levels ofImprovement There are different levels of improvement. Level 1 › Keeping the processes within the specification › Improving flaws in the processes Level 2 › Improving the processes achieving better Quality Level 3 › Rethink the processes achieving breakthrough AND they are continuously needed in parallel 17
- 18. Three Levels ofImprovement Improvement Levels 1, 2, 3 Level 1 Level 2 Level 3 Problem Solving Continuous Improvement Breakthrough 18
- 19. Key Practices Lean 19
- 20. Lean Six Sigma– Faster, Better & Cheaper # # d d e e l l i i e 6 Sigma e v v e e r r i i e e s s LEAN # Days of deliveries # Days of deliveries d d e e l l i i e e v v e e r r i i e e s s Days of deliveries Days of deliveries 20
- 21. Potential Areas forImprovement Low market share/Declining market High delivery time High BoM Cost Service complaints/repeated complaints/ C-Sat Score High Life cycle cost Low reliability Large inventories Poor incoming quality of store items High operation costs 21
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- 23. The Right Deployment movingfrom priorities to projects to organization 23
- 24. The Right Deployment Cascade priorities goals objectives Translate instead of repeat Follow up (plan & review) 24
- 25. POLICY / Bad Deployment OBJECTIVE CEO/MD Level increase market share Executive Director/COO increase market share Plant manager increase market share deployment Production manager increase market share hierarchic Supervisor increase market share Operator increase market share “Repeating” TARGETS DEPLOYMENT (output performance indicators) RESULTS 25
- 26. Translation Example CEO/MDLevel increase market share Executive Director/COO lower cost price Plant manager less material waste HOD less rework Supervisor “Just enough” material use Operator Adherence to SOPs 26
- 27. Client Industries & many more… 27
- 28. “There is nopoint in being fast at doing the wrong thing” Thanks Naresh K Chawla, Master Black Belt 28