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M1 Track eXcellence
Operational
efficiency
Course Structure and Content
1. Introduction to operational
efficiency – where the principles
come from?
2. Let’s have a focus on LEAN
approach
3. Waste as the issue’s root
4. Let’s have a focus on 5S & Visual
management
5. Voice of the customer
6. Lean toolbox
✔SIPOC ✔Decision tree
✔Pareto ✔VSM
✔Ishikawa Diagram ✔DMAIC
✔5 why ✔A3
✔Feasibility / efficiency
matrix
M1 Track eXcellence
Operational efficiency
... introduce yourself and share what do
you know and what is your expectation
about “Operational efficiency”?
Introduction to operational efficiency
Where do the principles come from?
M1 Track eXcellence – Operational efficiency
What is meant by operational efficiency?
Is the capability of an organization to deliver products or services to its customers in
the most cost-effective manner while ensuring the high quality of its products, service
and support.
Note, the terms "operational efficiency", "efficiency" or "productivity" or “excellence”
are often used interchangeably.
Since it is about efficiency” it involves measurement ratio between output and input.
When measuring operational efficiency, a company should define, measure and track
a number of performance indicators on both the input and output sides.
Operational efficiency
An inherent topic in business
The question of operational efficiency the question arose from the start of the modern industrial era.
“Every industrial organization should aspire to deliver the best products at the lowest cost possible
paying the highest wage possible”(1) as per Henry Ford.
According to Michael Porter, strategic differentiation is at stakes through the operational performance
efficiency :
"Cost is generated by performing activities, and cost advantage arises from performing particular
activities more efficiently than competitors. Similarly, differentiation arises from both the choice of
activities and how they are performed.“(2)
The core of this statement still stands today and is valid both for manufacturing and service
organizations.
(1) Henry Ford :”My Life and Work”, 1922
(2) Michael E Porter: "What is Strategy?", Harvard Business Review, November 1996
Operational efficiency is not a one-to-one approach
▪ Operational efficiency may embrace several methodologies
▪ Toyotism (Toyota Production System, operational excellence, continuous improvement,…)
▪ Lean (Lean manufacturing, Lean production, Lean management, Lean start up,…)
▪ Six Sigma (DMAIC and standard deviation)
▪ Agile (Design Thinking, Scrum, Lean Software Development, Extreme Programming,…)
▪ Operating model designing
▪ Operational efficiency through technology (digitalization, data standardization, Intelligent
Automation,…)
▪ Etc…
▪ These approaches - even if they have different bases and specific levers for action - have in
common
1.to act at the operational level
2.Involving operators and
3.in a coherent managerial culture
Let’s have a focus on the
LEAN approach
M1 Track eXcellence – Operational efficiency
What are the origins of Lean?
▪ Operational excellence has been conceptualized
and implemented as a system in Japan by Toyota
in the 1950s by Taiichi Ohno and Eiji Toyoda.
▪ Toyota Production System is an integrated socio-technical system, comprising management philosophy and
practices. Is a global and participative approach, geared towards continuous improvement and excellence of
business performance. The goal is to ensure the prosperity of the company through the satisfaction of
customer requirements and staff expectations.
▪ TPS is mainly based on the conceptual pillars of “Just-in-time production” – meaning "Making only what is
needed, only when it is needed, and only in the amount that is needed“.
▪ Toyota Motor Corporation published an official description of TPS in 1992 "The TPS is a framework for
conserving resources by eliminating waste. People who participate in the system learn to identify expenditures
of material, effort and time that do not generate value for customers and furthermore we have avoided a
'how-to' approach. The booklet is not a manual. Rather it is an overview of the concepts, that underlie our
production system. It is a reminder that lasting gains in productivity and quality are possible whenever and
wherever management and employees are united in a commitment to positive change".
▪ TPS system is a major precursor of the more generic "lean manufacturing".
What are the origins of Lean?
▪ The term “lean thinking” was defined in 1991 by James Womack and Daniel Jones from
MIT in the book “The machine that changed the world” to capture the essence of their
study of the Toyota Production System.
▪ Lean manufacturing is a way of thinking about an activity and seeing the waste
inadvertently generated by the way the process is organized.
▪ Lean is based on 5 principles;
1. Precisely understand value the customer expects,
2. identify the value stream for each product,
3. make value flow without interruptions by eliminating wastes,
4. let customer pull value from the producer,
5. and pursue perfection
Lean can be effective when it is built on solid foundations
Process
Management
Culture
People
& habits
Operational efficiency
The process conducted to the result
▪ All effect originates from a cause. Any result is the consequence of a process.
▪ There is no point in focusing on the result without to be concerned with the way of doing,
therefore with the process which is at its origin. This is why the Lean method is focused on
improving processes.
Operational efficiency
Lean is effective when it is built on solid managerial foundations
Management commitment
▪ Lean is a demanding process, which requires effort and persistence. To mobilize the
energies of all, it is essential that management is fully committed to the process. To be
credible, this commitment must be real, constant and visible.
Involvement of all staff
▪ Lean is not a matter of experts. Of course, their skills are useful, but not sufficient. All
energies must be mobilized and converge to improve the value-creating processes.
Therefore, all staff, in their position, must be involved to this collective effort.
Note - Studies have shown that a manager who demands results and authoritatively sets goals gets less
results than a manager who sets an example and inspires employees with his own actions.
Operational efficiency
Change upsets habits
▪ Lean is a long-term investment which can provide results quickly, locally but without
perseverance, without sustained effort, these results remain fragile and may not last.
▪ New ways of doing things need to be stabilized and consolidated before generating
lasting results. Management must give Lean the necessary time, and not to demand
spectacular results from the start.
Management efficiency by Netflix
Click to watch
the video!
The main Lean tools
Main Lean tools initial implemented in industry context can be relevant also in services:
▪ 7 wastes
▪ 5S & Visual management
▪ Voice of the customer: Kano diagram tool
▪ Lean toolbox :
✔SIPOC ✔5 why ✔Value Stream Mapping
✔Pareto ✔Feasibility / efficiency matrix ✔DMAIC
✔Ishikawa Diagram ✔Decision tree ✔A3
Waste as the issue’s root
M1 Track eXcellence – Operational efficiency
Waste or
▪ MUDA is a Japanese word that means "waste". We
call MUDA anything that has no value in the eyes of
the external or internal customer, but which
increases the cost of our processes.
▪ Within the production processes, the value created is surrounded by a mass of waste.
This is what Lean is striving to eliminate.
▪ Taiichi Ohno – “All we are doing is looking at the timeline, from the moment the customer gives us an
order to the point when we collect the cash. And we are reducing the timeline by reducing the non-value-
adding wastes.”
To identify and eliminate MUDA, Lean classifies waste into 7categories:
1. Movement is observed when people perform abnormal,
unnecessary, non-ergonomic movements;
2. Stock is the accumulation of excess goods or information;
[Taiichi Ohno “The more inventory a company has, the less likely they will
have what they need”]
3. Waiting appears when a document or information is late in
coming to finalize a task;
4. Defects refers to errors, confusion, forgetfulness;
5. Overproduction is the fact of producing too much compared
to what is just necessary;
6. Transport is observed when people or documents travel
long or tortuous journeys during the process;
7. Muda of Process, when these are unnecessarily complex or
confused.
8. Recently, an eighth MUDA raised : Underutilization of human potential. To ignore employees’ ideas, to curb their
creativity, is to miss a source of progress.
THE MUDA HUNT
▪ Once we are aware of what is polluting the processes, it is easy to identify waste and
come up with ideas to eliminate or reduce its impact.
▪ The best way to do it effectively is to "chase" as a group, to share views, to challenge
each other. This is what happens during improvement projects or problem-solving
groups, which bring together several employees.
MUDA has two cousins
▪ One is called MURA.
It means variability, irregularity, imbalance, it refers to
fluctuations in flows and processes, and it leads to stress
and non-performance.
▪ The second is called MURI,
synonymous with overload, excess, arduousness. It causes
fatigue and health problems for the staff.
▪ Chasing for waste can be done by starting with
i. the MURI, to eliminate difficulties and hardship, then
ii. the MURA to work in serenity and security, and finally
iii. the MUDA, the waste of resources.
MUDA, MURI or MURA ?
Let’s have a focus on the
5S & Visual Managament
M1 Track eXcellence – Operational efficiency
5S - Efficiency begins with ordering of the workspace
The 5S are 5 Japanese words corresponding to 5 steps :
▪ SEIRI [Sort] means removing unnecessary from work environment,
identifying & keep away any superfluous, damaged or unusable objects;
▪ SEITON [Straighten] corresponds to the set of the
workspace, to the definition of the rules location of
objects, so that they are easy to identify and grasp;
▪ SEISO [Shine] invites to detect and repair any damage,
through careful cleaning of the premises, to make the
workspace clean and secure;
▪ SEIKETSU [Standardize] refers to the fact of making the
workplace obvious by markings, labels, color codes, standards;
▪ SHITSUKE [Sustain] means to root good practices and to improve them
constantly through self-discipline and teamwork.
5S - Efficiency begins with ordering of the workspace
5S clarifies workspace and enables visual management
▪ 82% of the information recorded by the brain brings that the view.
▪ 5S aims to ensure a safe and pleasant working environment. Everything is clear,
obvious, accessible quickly and effortlessly. Searching for a misplaced object has no
added value and can generates stress.
▪ 5S facilitates management, because everything is clear, the discrepancies are obvious
and are easy to correct. Visual management allows to understand effortlessly the
work space thanks to identification and labeling, displayed indicators, standards and
visual instructions.
▪ 5S can be an individual tool, but their impact is increased when the method is applied
collectively. Defining common rules together facilitates communication and versatility.
Visual management = Learn to see the problems
▪ Visual management allowing teams to
organize themselves around the triptych:
Understanding - Seeing - Acting
▪ Visual management aims to reveal problems
- in regards of client satisfaction - and
resolved where they appear, by the teams
on the ground.
Having no problems is the biggest problem of all
▪ Visual management is essential in
collecting factual and operational
data to make the problems obvious
▪ The team learns to see its
performance gaps (= problems) and
to solve them daily (this does not
mean that the problem is resolved
in one day, but that the associated
PDCA is launched and monitored).
Having no problems is the biggest problem of all
▪ The visual management belongs to the
team and must adapt to its context
and its issues. It must be modified or
even completely redesigned if
necessary.
▪ There is no value to impose the same
visual management on all teams.
Investigation must take place on the “scene crime”
▪ Gemba is a Japanese word that means "ground", the place where action takes place,
where problems arise, where operatives are located.
▪ This is where you have to attend to analyze and solve problems, not in a meeting room,
far from the daily realities of those who produce value.
▪ On the Gemba, it is not opinions that count, but objective facts, real data collected and
analyzed as close as possible to the place of action.
Attachment to value
▪ In Lean, the first thing to do is to put yourself in the shoes of the customer and try to
understand what value he expects to find in the product or service he buys. This
corresponds to the satisfaction of his need, and that is why he is ready to pay the right
price. The rest is superfluous, and that's why one of the central activities of Lean is to
identify and eliminate the waste that surrounds this value.
Voice of the customer
M1 Track eXcellence – Operational efficiency
The voice of the customer: Kano diagram tool
▪ The Kano model is a theory for product development and customer satisfaction
developed in the 1980s by Professor Noriaki Kano, which classifies customer
preferences into five categories of quality.
Must-be
-
⇩ if no meet
Attractive
-
⇧ In addition
One-dimensional
-
⇩or⇧ depending of
feature fulfillment
Indifferent
-
⬄
Reverse
-
⇩or⇧ depending of
customer perception
These attributes refer
to requirements the
customers expect &
are taken for granted.
When done well,
customers are just
neutral, but when
done poorly, customer
is dissatisfied.
These attributes
provide satisfaction
when achieved fully -
as «happy surprise» -
but do not cause
dissatisfaction when
not fulfilled. These are
attributes are not
normally expected.
These attributes result
in satisfaction when
fulfilled and
dissatisfaction when
not fulfilled. These are
attributes that are
spoken and the ones in
which companies
compete.
These attributes refer
to aspects that are
neither good nor bad,
and they do not result
in either customer
satisfaction or
customer
dissatisfaction.
These attributes refer
to a high degree of
achievement resulting
in dissatisfaction and
to the fact that not all
customers are alike.
The voice of the customer: Kano diagram tool
▪ Kano proposes a standardized questionnaire
to measure opinions in an implicit way. The
participants answer two questions for each
product feature, from which one is
"functional" (formulated in a positive way)
and one is "dysfunctional" (formulated in a
negative way).
Over time delightful
innovation becomes
another basic need
LEAN toolbox
M1 Track eXcellence – Operational efficiency
What is in the Lean toolbox?
▪ SIPOC,
▪ Pareto,
▪ Ishikawa,
▪ 5 why,
▪ Feasibility / efficiency matrix,
▪ Decision tree,
▪ Value Stream Mapping,
▪ DMAIC,
▪ A3,
▪ …
SIPOC
▪ It is used to define a business process from
beginning to end before work begins.
▪ The acronym SIPOC stands for
Supplier
Inputs
Process
Output
Customers
▪ A SIPOC is a tool that summarizes the main attribute of one or more processes in
simple table form.
SIPOC
Pareto's law
▪ The Pareto principle - also known as the
80/20 rule - states that, for many events,
roughly 80% of the effects come from 20% of
the causes.
▪ Mathematically, the 80/20 rule is followed
by a law distribution (Pareto distribution)
for a particular set of parameters, and
many natural phenomena have been
shown empirically.
▪ It is an axiom of business management that
"80% of sales come from 20% of clients“.
M1 Track eXcellence - Operational efficiency
Pareto's law - exemple
▪ 28 corresponding accounts (out of a total of 300) cumulate 80% of the refinancing costs
M1 Track eXcellence - Operational efficiency
By limiting overtime positions over 1 year = 10 cases
of potential savings for an amount of 2.4 M. EUR.
Ishikawa diagram
▪ Ishikawa diagram: also
known as a "fishbone
diagram" or "cause and
effect diagram", is a
visual method aimed at
finding the causes of an
identified effect. These
causes are similar in 5
categories.
▪ 5M: measurement,
material, machine,
environment (mother
nature), men, methods
5 why
▪ 5 why is participative
tool based on the
idea that to find the
root cause of a
problem, it is
necessary to ask the
question "Why?" 5
times successively
Feasibility / effectiveness matrix
▪ Around efficiency and feasibility criteria, this matrix aims to make an objective sorting
out of the ideas stemming from a brainstorming in order to prioritize the actions, with
regard to the objectives to be achieved.
Decision tree
▪ This graphical tool consists in
placing the various decisions
relating to a thematic at the end
of a branch, thus facilitating
rapid decision-making and
scenario presentation.
Value stream mapping
▪ VSM is a visual tool for coolectively analyzing the current state and designing a future
state for a end to end process. VSM displays all critical steps and quantifies the time
(useful vs. waste) taken at each stage.
▪ Purpose of VSM is to identify and remove/reduce "waste" in value streams. Waste
removal is intended to increase productivity by creating leaner operations which in
turn make waste and quality problems easier to identify.
▪ There are two steps of VSM:
1. The current state is used to determine what the process currently looks like by
observing the process and tracking the information and material flow.
2. The future state focuses on what the process will ideally look like after process
improvements to the value stream.
Value stream mapping
▪ VSM Shading
Value stream mapping
▪ VSM current state with factual input (cycle times vs. waiting times of each task)
Value stream mapping
▪ VSM current state - waste identification & remediation action plan
Value stream mapping
▪ VSM future (ideal) state
DMAIC
▪ DMAIC is the acronym for
Define
Measure
Analyze
Improve
Control
▪ This approach relates to the
resolution of recurring
problems relating to
repetitive task that can
objectively be measure with
fact and figures
A3 report
▪ Invented by Toyota, the
principle consists in gathering
in a standardized way all the
information relating to a
problem (from its analysis to
its action plan) on a single
page, traditionally in A3
format .
A3 report
Problèmes – Périmètre – Enjeux
🞂 En 2007, le délai d’établissement d’un devis
était en moyenne de 60 jours ouvrés, et les
extensions (hors du plan des moyens)
atteignaient 140 jours.
🞂 Le métier IRS (International Retail Services)
a sollicité ITPS afin de lui soumettre des
solutions de réduction de délais et de coûts.
🞂 Objectifs visés lors de l’atelier:
▪ devis standard : passer de 60 j. à 30 j.
▪ devis complexe : livré en 60 j.
▪ extension : passer de 140 j. à 45 j. (std.) ou 80 j. (complexe).
▪ Le métier à demandé également à recevoir un macro-devis (non engageant)
en 5 jours, fiable à +/- 20% du montant final.
Plan d’action
Mesures – Analyses
🞂 Identification des délais d’attentes à travers le processus:
▪ Manque de synchronisation entre acteurs
▪ Comités périodiques de décisions trop espacés
▪ Circuit complexe de validation et de signature
🞂 Identification des erreurs (Not right first time)
🞂 Identification de sur-qualité (cas d’un macro-devis)
Résultats obtenus
4 Volume d’activité du processus macro-devis
= 12 macro-devis livrés en 6 mois.
Tâches Nov Déc Jan Fév Mar Avr Mai jui
Organisation (18 actions) ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Engagement (13 actions) ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Référentiel (4 actions) ✔ ✔ ✔ ✔ ✔ ✔
Compétence (9 actions) ✔ ✔ ✔ ✔ ✔ ✔
Délai de réponse Situation de départ Cible Résultats obtenus
Devis standard 60 j. 30 j. 27 j.
Extension complexe 140 j. 80 j. 65 j.
Macro-devis N/A 5 j. 6 j.
45
24
27
20
116
3
9
9
3
24
0
50
100
150
Définition de
l'architecture
Solution
technique
Chiffrage Signature Total
Temps de cycle et délai du processus initial
Délai (jours) Temps de cycle (jours)
Situation de départ = 140 jours
28
7
10
6
51
3
4
4
3 14
0
50
100
150
Définition de
l'architecture
Solution
technique
Chiffrage Signature Total
Temps de cycle et délai du processus final
Délai (jours) Temps de cycle (jours)
Résultat obtenu = 65 jours
Charte projet « Traitement des demandes de devis du métier IRS »
Problèmes – Périmètre – Enjeux
🞂 L ’équipe EACB étudie les demandes d’ouverture de flux de firewall, mesure
les risques sur l’infrastructure et statue en conséquence.
🞂 En 2007 de nouvelles entités ont rejoint le groupe et des changements
d’infrastructures ont occasionnés une forte augmentation des demandes. Au
dernier trimestre 2007, le stock atteignait 150 demandes en attentes en
moyenne (jusqu’à 300 au maximum) allongeant les délais de traitement (25%
au-delà de l’engagement de réponse dans les 5 jours). Pour pallier cette
situation, la première stratégie a été de mobiliser ponctuellement des
ressources supplémentaire (1 à 4 ETPs).
Plan d’action
Mesures – Analyses
🞂 Variation des délais (jours ouvrés) et du volume de demandes par mois
Résultats obtenus
4Les résultat obtenus à l’issue du plan d’action engagé sur 7 mois :
Charte projet « Amélioration de la performance au sein de l’équipe Sécurité Groupe »
• Réduire et maitriser les délais de traitement
• Améliorer la qualité des demandes
• Maîtriser la charge de l’équipe EACB
Objectifs
Attente :
🞂 Retour pour compléments d’information face à une demande
Gestes inutiles :
🞂 Pollution de la boite générique par des demandes parasites
🞂 Demande d’avis sur le traitement à effectuer pour une demande
Tâches Dec Janv Fev Mar Avr Mai Jui
Mise en place d’indicateurs journaliers
(délais et performance) ✔
Analyse quotidienne des problèmes et
mise en oeuvre des solutions ✔ ✔ ✔ ✔ ✔ ✔ ✔
Rédaction des standards de travail et de
mesures ✔ ✔
Formation des nouveaux arrivant
✔ ✔
Plan de communication de nos attentes
après des clients (Passeport EACB) ✔ ✔ ✔
Lancement de la démarche ACE
Nbre. De demandes
Delai moyen (jour)
🞂 Gestion de la charge au jour le jour : allocation dynamique des ressources
🞂 Mise en place d’un workflow afin d’automatiser une partie du processus et
d’améliorer la gestion des échanges
Prochaine étape
Les résultats des performances du 13Util’ sur les périodes d’étude démontrent que :
• Le délai moyen de résolution des incidents et des demandes est en constante
réduction.
• Le taux de résolution des incidents dans les engagements de service est en
constante amélioration.
• Les résultats statistiques ont été confortés par les résultats comparés de 2 enquêtes
de satisfaction conduites avant et après le projet.
Problèmes – Périmètre – Enjeux
En 2014, le support utilisateurs de BNPP PF a été délégué auprès d’un nouveau
prestataire sur la base d'un « contrat » avec engagement de résultat. Le13Util’ traite
tout incident bureautique ou demande de service lié au poste de travail, à la
téléphonie et aux habilitations.
Dans l’avenir, la mise en œuvre de nouveaux services (Digital working) étendra le
périmètre du 13Util’ avec pour effet, à terme, une hausse des volumes à traiter.
Plan d’action
Mesures – Analyses Résultats obtenus
Projet 6Sigma : Performance du Support 13Util’ poste de travail
Les objectifs visés via la démarche DMAIC - Six Sigma :
Atteindre & maintenir un niveau de service conforme aux engagements.
Mieux qualifier le flux entrant pour réduire le nombre de tickets (cible stabilisée),
anticiper le flux à venir et maintenir le montant de la facture (voir le réduire).
Traiter en priorité les irritants identifiés par la VOC (création de comptes, Qualité des
résolution, délai d’intervention,…) et redesigner les processus si nécessaire.
Anticiper les extension de périmètre de services supportés (digital working)
Renforcer la plateforme de réponse automatique
Les utilisateurs du 13Util’ expriment une insatisfaction sur la qualité du service:
Le volume de tickets > aux prévisions (+25%) fait porter le risque d'une facture > à ce
qui était prévu.
Le backlog quotidien de tickets en augmentation régulière (+50% / 1 mois) exprime
la difficulté à traiter les demandes dans le respect des délais.
Les niveaux de performance attendus (délais traitement / taux de décroché / taux
de résolution / etc.) ne sont pas systématiquement atteints. Et, globalement, les
clients regrettent un manque de constance dans les réponses/qualifications de leurs
demandes et attendent plus de fiabilité / visibilité.
Synthèse des
performances du 13Util’
Résolution des Incidents –
l’amélioration initiée en
2014, se confirme en 2015
Problèmes – Périmètre – Enjeux
🞂 Des carences dans le pilotage des dépôts cash sur comptes
correspondants génèrent des coûts élevés de refinancement implicite
par le Trésorier SG aux GOP de règlement.
🞂 Sur la période d’oct. 2007 à oct. 2008, le coût d’utilisation de
la trésorerie s’est élevé à 12.300.000 EUR (Mesures prenant en
compte les coûts de refinancement implicites et les intérêts débiteurs &
créditeurs des correspondants cash).
🞂 L’enjeu de ce projet est de maîtriser le processus de gestion de la
trésorerie sur comptes correspondants cash pour les périmètres FICC &
GEDS, afin d’alléger le coût d’utilisation de la trésorerie SGPM.
Plan d’action
Mesures – Analyses
🞂 28 Comptes correspondants (sur un total de 300) cumulent 80% des
coûts de refinancement. Résultats attendus
projet LEAN TREASURY
Charte du projet « Gestion de la trésorerie BO – périmètres FICC & GEDS »
Sources: Platon, Glass (SG Zurich) & NXG
4 Limiter les
positions longues
rapatriées
tardivement. En
2008, 10 cas
d’économies
potentielles
pour un montant
de 2.4 M. EUR.
4 En outre, la
mise en œuvre
des livrables doit
permettre une
économie de
10% des coûts
de trésorerie
estimées
à 720 K. EUR
Total des économies attendues (2.4 + 0.720) = 3.1 M EUR
❶
❷❸
❹
❺
❼
❻ ❽ ❾
❿
M1 Track eXcellence
Operational efficiency
https://www.ted.com/talks/yves_morieux_as_work_gets_more_complex_6_rules_to_simplify?language=fr
▪ These methods are not free from criticism.
▪ Know how to adapt them to your circumstance, environment and needs.
Course Structure and Content
1. Introduction to operational
efficiency – where the principles
come from?
2. Let’s have a focus on LEAN
approach
3. Waste as the issue’s root
4. Let’s have a focus on 5S & Visual
management
5. Voice of the customer
6. Lean toolbox
✔SIPOC ✔Decision tree
✔Pareto ✔VSM
✔Ishikawa Diagram ✔DMAIC
✔5 why ✔A3
✔Feasibility / efficiency
matrix
Discover more of our courses in the Manacademy on manadvise.fr
EM Normandie  - Operational efficiency

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EM Normandie - Operational efficiency

  • 2. Course Structure and Content 1. Introduction to operational efficiency – where the principles come from? 2. Let’s have a focus on LEAN approach 3. Waste as the issue’s root 4. Let’s have a focus on 5S & Visual management 5. Voice of the customer 6. Lean toolbox ✔SIPOC ✔Decision tree ✔Pareto ✔VSM ✔Ishikawa Diagram ✔DMAIC ✔5 why ✔A3 ✔Feasibility / efficiency matrix
  • 3. M1 Track eXcellence Operational efficiency ... introduce yourself and share what do you know and what is your expectation about “Operational efficiency”?
  • 4. Introduction to operational efficiency Where do the principles come from? M1 Track eXcellence – Operational efficiency
  • 5. What is meant by operational efficiency? Is the capability of an organization to deliver products or services to its customers in the most cost-effective manner while ensuring the high quality of its products, service and support. Note, the terms "operational efficiency", "efficiency" or "productivity" or “excellence” are often used interchangeably. Since it is about efficiency” it involves measurement ratio between output and input. When measuring operational efficiency, a company should define, measure and track a number of performance indicators on both the input and output sides.
  • 6. Operational efficiency An inherent topic in business The question of operational efficiency the question arose from the start of the modern industrial era. “Every industrial organization should aspire to deliver the best products at the lowest cost possible paying the highest wage possible”(1) as per Henry Ford. According to Michael Porter, strategic differentiation is at stakes through the operational performance efficiency : "Cost is generated by performing activities, and cost advantage arises from performing particular activities more efficiently than competitors. Similarly, differentiation arises from both the choice of activities and how they are performed.“(2) The core of this statement still stands today and is valid both for manufacturing and service organizations. (1) Henry Ford :”My Life and Work”, 1922 (2) Michael E Porter: "What is Strategy?", Harvard Business Review, November 1996
  • 7. Operational efficiency is not a one-to-one approach ▪ Operational efficiency may embrace several methodologies ▪ Toyotism (Toyota Production System, operational excellence, continuous improvement,…) ▪ Lean (Lean manufacturing, Lean production, Lean management, Lean start up,…) ▪ Six Sigma (DMAIC and standard deviation) ▪ Agile (Design Thinking, Scrum, Lean Software Development, Extreme Programming,…) ▪ Operating model designing ▪ Operational efficiency through technology (digitalization, data standardization, Intelligent Automation,…) ▪ Etc… ▪ These approaches - even if they have different bases and specific levers for action - have in common 1.to act at the operational level 2.Involving operators and 3.in a coherent managerial culture
  • 8. Let’s have a focus on the LEAN approach M1 Track eXcellence – Operational efficiency
  • 9. What are the origins of Lean? ▪ Operational excellence has been conceptualized and implemented as a system in Japan by Toyota in the 1950s by Taiichi Ohno and Eiji Toyoda. ▪ Toyota Production System is an integrated socio-technical system, comprising management philosophy and practices. Is a global and participative approach, geared towards continuous improvement and excellence of business performance. The goal is to ensure the prosperity of the company through the satisfaction of customer requirements and staff expectations. ▪ TPS is mainly based on the conceptual pillars of “Just-in-time production” – meaning "Making only what is needed, only when it is needed, and only in the amount that is needed“. ▪ Toyota Motor Corporation published an official description of TPS in 1992 "The TPS is a framework for conserving resources by eliminating waste. People who participate in the system learn to identify expenditures of material, effort and time that do not generate value for customers and furthermore we have avoided a 'how-to' approach. The booklet is not a manual. Rather it is an overview of the concepts, that underlie our production system. It is a reminder that lasting gains in productivity and quality are possible whenever and wherever management and employees are united in a commitment to positive change". ▪ TPS system is a major precursor of the more generic "lean manufacturing".
  • 10. What are the origins of Lean? ▪ The term “lean thinking” was defined in 1991 by James Womack and Daniel Jones from MIT in the book “The machine that changed the world” to capture the essence of their study of the Toyota Production System. ▪ Lean manufacturing is a way of thinking about an activity and seeing the waste inadvertently generated by the way the process is organized. ▪ Lean is based on 5 principles; 1. Precisely understand value the customer expects, 2. identify the value stream for each product, 3. make value flow without interruptions by eliminating wastes, 4. let customer pull value from the producer, 5. and pursue perfection
  • 11. Lean can be effective when it is built on solid foundations Process Management Culture People & habits
  • 12. Operational efficiency The process conducted to the result ▪ All effect originates from a cause. Any result is the consequence of a process. ▪ There is no point in focusing on the result without to be concerned with the way of doing, therefore with the process which is at its origin. This is why the Lean method is focused on improving processes.
  • 13. Operational efficiency Lean is effective when it is built on solid managerial foundations Management commitment ▪ Lean is a demanding process, which requires effort and persistence. To mobilize the energies of all, it is essential that management is fully committed to the process. To be credible, this commitment must be real, constant and visible. Involvement of all staff ▪ Lean is not a matter of experts. Of course, their skills are useful, but not sufficient. All energies must be mobilized and converge to improve the value-creating processes. Therefore, all staff, in their position, must be involved to this collective effort. Note - Studies have shown that a manager who demands results and authoritatively sets goals gets less results than a manager who sets an example and inspires employees with his own actions.
  • 14. Operational efficiency Change upsets habits ▪ Lean is a long-term investment which can provide results quickly, locally but without perseverance, without sustained effort, these results remain fragile and may not last. ▪ New ways of doing things need to be stabilized and consolidated before generating lasting results. Management must give Lean the necessary time, and not to demand spectacular results from the start.
  • 15. Management efficiency by Netflix Click to watch the video!
  • 16. The main Lean tools Main Lean tools initial implemented in industry context can be relevant also in services: ▪ 7 wastes ▪ 5S & Visual management ▪ Voice of the customer: Kano diagram tool ▪ Lean toolbox : ✔SIPOC ✔5 why ✔Value Stream Mapping ✔Pareto ✔Feasibility / efficiency matrix ✔DMAIC ✔Ishikawa Diagram ✔Decision tree ✔A3
  • 17. Waste as the issue’s root M1 Track eXcellence – Operational efficiency
  • 18. Waste or ▪ MUDA is a Japanese word that means "waste". We call MUDA anything that has no value in the eyes of the external or internal customer, but which increases the cost of our processes. ▪ Within the production processes, the value created is surrounded by a mass of waste. This is what Lean is striving to eliminate. ▪ Taiichi Ohno – “All we are doing is looking at the timeline, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the timeline by reducing the non-value- adding wastes.”
  • 19. To identify and eliminate MUDA, Lean classifies waste into 7categories: 1. Movement is observed when people perform abnormal, unnecessary, non-ergonomic movements; 2. Stock is the accumulation of excess goods or information; [Taiichi Ohno “The more inventory a company has, the less likely they will have what they need”] 3. Waiting appears when a document or information is late in coming to finalize a task; 4. Defects refers to errors, confusion, forgetfulness; 5. Overproduction is the fact of producing too much compared to what is just necessary; 6. Transport is observed when people or documents travel long or tortuous journeys during the process; 7. Muda of Process, when these are unnecessarily complex or confused. 8. Recently, an eighth MUDA raised : Underutilization of human potential. To ignore employees’ ideas, to curb their creativity, is to miss a source of progress.
  • 20. THE MUDA HUNT ▪ Once we are aware of what is polluting the processes, it is easy to identify waste and come up with ideas to eliminate or reduce its impact. ▪ The best way to do it effectively is to "chase" as a group, to share views, to challenge each other. This is what happens during improvement projects or problem-solving groups, which bring together several employees.
  • 21. MUDA has two cousins ▪ One is called MURA. It means variability, irregularity, imbalance, it refers to fluctuations in flows and processes, and it leads to stress and non-performance. ▪ The second is called MURI, synonymous with overload, excess, arduousness. It causes fatigue and health problems for the staff. ▪ Chasing for waste can be done by starting with i. the MURI, to eliminate difficulties and hardship, then ii. the MURA to work in serenity and security, and finally iii. the MUDA, the waste of resources.
  • 22. MUDA, MURI or MURA ?
  • 23. Let’s have a focus on the 5S & Visual Managament M1 Track eXcellence – Operational efficiency
  • 24. 5S - Efficiency begins with ordering of the workspace The 5S are 5 Japanese words corresponding to 5 steps : ▪ SEIRI [Sort] means removing unnecessary from work environment, identifying & keep away any superfluous, damaged or unusable objects; ▪ SEITON [Straighten] corresponds to the set of the workspace, to the definition of the rules location of objects, so that they are easy to identify and grasp; ▪ SEISO [Shine] invites to detect and repair any damage, through careful cleaning of the premises, to make the workspace clean and secure; ▪ SEIKETSU [Standardize] refers to the fact of making the workplace obvious by markings, labels, color codes, standards; ▪ SHITSUKE [Sustain] means to root good practices and to improve them constantly through self-discipline and teamwork.
  • 25. 5S - Efficiency begins with ordering of the workspace
  • 26. 5S clarifies workspace and enables visual management ▪ 82% of the information recorded by the brain brings that the view. ▪ 5S aims to ensure a safe and pleasant working environment. Everything is clear, obvious, accessible quickly and effortlessly. Searching for a misplaced object has no added value and can generates stress. ▪ 5S facilitates management, because everything is clear, the discrepancies are obvious and are easy to correct. Visual management allows to understand effortlessly the work space thanks to identification and labeling, displayed indicators, standards and visual instructions. ▪ 5S can be an individual tool, but their impact is increased when the method is applied collectively. Defining common rules together facilitates communication and versatility.
  • 27. Visual management = Learn to see the problems ▪ Visual management allowing teams to organize themselves around the triptych: Understanding - Seeing - Acting ▪ Visual management aims to reveal problems - in regards of client satisfaction - and resolved where they appear, by the teams on the ground.
  • 28. Having no problems is the biggest problem of all ▪ Visual management is essential in collecting factual and operational data to make the problems obvious ▪ The team learns to see its performance gaps (= problems) and to solve them daily (this does not mean that the problem is resolved in one day, but that the associated PDCA is launched and monitored).
  • 29. Having no problems is the biggest problem of all ▪ The visual management belongs to the team and must adapt to its context and its issues. It must be modified or even completely redesigned if necessary. ▪ There is no value to impose the same visual management on all teams.
  • 30. Investigation must take place on the “scene crime” ▪ Gemba is a Japanese word that means "ground", the place where action takes place, where problems arise, where operatives are located. ▪ This is where you have to attend to analyze and solve problems, not in a meeting room, far from the daily realities of those who produce value. ▪ On the Gemba, it is not opinions that count, but objective facts, real data collected and analyzed as close as possible to the place of action.
  • 31. Attachment to value ▪ In Lean, the first thing to do is to put yourself in the shoes of the customer and try to understand what value he expects to find in the product or service he buys. This corresponds to the satisfaction of his need, and that is why he is ready to pay the right price. The rest is superfluous, and that's why one of the central activities of Lean is to identify and eliminate the waste that surrounds this value.
  • 32. Voice of the customer M1 Track eXcellence – Operational efficiency
  • 33. The voice of the customer: Kano diagram tool ▪ The Kano model is a theory for product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano, which classifies customer preferences into five categories of quality. Must-be - ⇩ if no meet Attractive - ⇧ In addition One-dimensional - ⇩or⇧ depending of feature fulfillment Indifferent - ⬄ Reverse - ⇩or⇧ depending of customer perception These attributes refer to requirements the customers expect & are taken for granted. When done well, customers are just neutral, but when done poorly, customer is dissatisfied. These attributes provide satisfaction when achieved fully - as «happy surprise» - but do not cause dissatisfaction when not fulfilled. These are attributes are not normally expected. These attributes result in satisfaction when fulfilled and dissatisfaction when not fulfilled. These are attributes that are spoken and the ones in which companies compete. These attributes refer to aspects that are neither good nor bad, and they do not result in either customer satisfaction or customer dissatisfaction. These attributes refer to a high degree of achievement resulting in dissatisfaction and to the fact that not all customers are alike.
  • 34. The voice of the customer: Kano diagram tool ▪ Kano proposes a standardized questionnaire to measure opinions in an implicit way. The participants answer two questions for each product feature, from which one is "functional" (formulated in a positive way) and one is "dysfunctional" (formulated in a negative way). Over time delightful innovation becomes another basic need
  • 35. LEAN toolbox M1 Track eXcellence – Operational efficiency
  • 36. What is in the Lean toolbox? ▪ SIPOC, ▪ Pareto, ▪ Ishikawa, ▪ 5 why, ▪ Feasibility / efficiency matrix, ▪ Decision tree, ▪ Value Stream Mapping, ▪ DMAIC, ▪ A3, ▪ …
  • 37. SIPOC ▪ It is used to define a business process from beginning to end before work begins. ▪ The acronym SIPOC stands for Supplier Inputs Process Output Customers ▪ A SIPOC is a tool that summarizes the main attribute of one or more processes in simple table form.
  • 38. SIPOC
  • 39. Pareto's law ▪ The Pareto principle - also known as the 80/20 rule - states that, for many events, roughly 80% of the effects come from 20% of the causes. ▪ Mathematically, the 80/20 rule is followed by a law distribution (Pareto distribution) for a particular set of parameters, and many natural phenomena have been shown empirically. ▪ It is an axiom of business management that "80% of sales come from 20% of clients“. M1 Track eXcellence - Operational efficiency
  • 40. Pareto's law - exemple ▪ 28 corresponding accounts (out of a total of 300) cumulate 80% of the refinancing costs M1 Track eXcellence - Operational efficiency By limiting overtime positions over 1 year = 10 cases of potential savings for an amount of 2.4 M. EUR.
  • 41. Ishikawa diagram ▪ Ishikawa diagram: also known as a "fishbone diagram" or "cause and effect diagram", is a visual method aimed at finding the causes of an identified effect. These causes are similar in 5 categories. ▪ 5M: measurement, material, machine, environment (mother nature), men, methods
  • 42. 5 why ▪ 5 why is participative tool based on the idea that to find the root cause of a problem, it is necessary to ask the question "Why?" 5 times successively
  • 43. Feasibility / effectiveness matrix ▪ Around efficiency and feasibility criteria, this matrix aims to make an objective sorting out of the ideas stemming from a brainstorming in order to prioritize the actions, with regard to the objectives to be achieved.
  • 44. Decision tree ▪ This graphical tool consists in placing the various decisions relating to a thematic at the end of a branch, thus facilitating rapid decision-making and scenario presentation.
  • 45. Value stream mapping ▪ VSM is a visual tool for coolectively analyzing the current state and designing a future state for a end to end process. VSM displays all critical steps and quantifies the time (useful vs. waste) taken at each stage. ▪ Purpose of VSM is to identify and remove/reduce "waste" in value streams. Waste removal is intended to increase productivity by creating leaner operations which in turn make waste and quality problems easier to identify. ▪ There are two steps of VSM: 1. The current state is used to determine what the process currently looks like by observing the process and tracking the information and material flow. 2. The future state focuses on what the process will ideally look like after process improvements to the value stream.
  • 47. Value stream mapping ▪ VSM current state with factual input (cycle times vs. waiting times of each task)
  • 48. Value stream mapping ▪ VSM current state - waste identification & remediation action plan
  • 49. Value stream mapping ▪ VSM future (ideal) state
  • 50. DMAIC ▪ DMAIC is the acronym for Define Measure Analyze Improve Control ▪ This approach relates to the resolution of recurring problems relating to repetitive task that can objectively be measure with fact and figures
  • 51. A3 report ▪ Invented by Toyota, the principle consists in gathering in a standardized way all the information relating to a problem (from its analysis to its action plan) on a single page, traditionally in A3 format .
  • 53. Problèmes – Périmètre – Enjeux 🞂 En 2007, le délai d’établissement d’un devis était en moyenne de 60 jours ouvrés, et les extensions (hors du plan des moyens) atteignaient 140 jours. 🞂 Le métier IRS (International Retail Services) a sollicité ITPS afin de lui soumettre des solutions de réduction de délais et de coûts. 🞂 Objectifs visés lors de l’atelier: ▪ devis standard : passer de 60 j. à 30 j. ▪ devis complexe : livré en 60 j. ▪ extension : passer de 140 j. à 45 j. (std.) ou 80 j. (complexe). ▪ Le métier à demandé également à recevoir un macro-devis (non engageant) en 5 jours, fiable à +/- 20% du montant final. Plan d’action Mesures – Analyses 🞂 Identification des délais d’attentes à travers le processus: ▪ Manque de synchronisation entre acteurs ▪ Comités périodiques de décisions trop espacés ▪ Circuit complexe de validation et de signature 🞂 Identification des erreurs (Not right first time) 🞂 Identification de sur-qualité (cas d’un macro-devis) Résultats obtenus 4 Volume d’activité du processus macro-devis = 12 macro-devis livrés en 6 mois. Tâches Nov Déc Jan Fév Mar Avr Mai jui Organisation (18 actions) ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Engagement (13 actions) ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Référentiel (4 actions) ✔ ✔ ✔ ✔ ✔ ✔ Compétence (9 actions) ✔ ✔ ✔ ✔ ✔ ✔ Délai de réponse Situation de départ Cible Résultats obtenus Devis standard 60 j. 30 j. 27 j. Extension complexe 140 j. 80 j. 65 j. Macro-devis N/A 5 j. 6 j. 45 24 27 20 116 3 9 9 3 24 0 50 100 150 Définition de l'architecture Solution technique Chiffrage Signature Total Temps de cycle et délai du processus initial Délai (jours) Temps de cycle (jours) Situation de départ = 140 jours 28 7 10 6 51 3 4 4 3 14 0 50 100 150 Définition de l'architecture Solution technique Chiffrage Signature Total Temps de cycle et délai du processus final Délai (jours) Temps de cycle (jours) Résultat obtenu = 65 jours Charte projet « Traitement des demandes de devis du métier IRS »
  • 54. Problèmes – Périmètre – Enjeux 🞂 L ’équipe EACB étudie les demandes d’ouverture de flux de firewall, mesure les risques sur l’infrastructure et statue en conséquence. 🞂 En 2007 de nouvelles entités ont rejoint le groupe et des changements d’infrastructures ont occasionnés une forte augmentation des demandes. Au dernier trimestre 2007, le stock atteignait 150 demandes en attentes en moyenne (jusqu’à 300 au maximum) allongeant les délais de traitement (25% au-delà de l’engagement de réponse dans les 5 jours). Pour pallier cette situation, la première stratégie a été de mobiliser ponctuellement des ressources supplémentaire (1 à 4 ETPs). Plan d’action Mesures – Analyses 🞂 Variation des délais (jours ouvrés) et du volume de demandes par mois Résultats obtenus 4Les résultat obtenus à l’issue du plan d’action engagé sur 7 mois : Charte projet « Amélioration de la performance au sein de l’équipe Sécurité Groupe » • Réduire et maitriser les délais de traitement • Améliorer la qualité des demandes • Maîtriser la charge de l’équipe EACB Objectifs Attente : 🞂 Retour pour compléments d’information face à une demande Gestes inutiles : 🞂 Pollution de la boite générique par des demandes parasites 🞂 Demande d’avis sur le traitement à effectuer pour une demande Tâches Dec Janv Fev Mar Avr Mai Jui Mise en place d’indicateurs journaliers (délais et performance) ✔ Analyse quotidienne des problèmes et mise en oeuvre des solutions ✔ ✔ ✔ ✔ ✔ ✔ ✔ Rédaction des standards de travail et de mesures ✔ ✔ Formation des nouveaux arrivant ✔ ✔ Plan de communication de nos attentes après des clients (Passeport EACB) ✔ ✔ ✔ Lancement de la démarche ACE Nbre. De demandes Delai moyen (jour) 🞂 Gestion de la charge au jour le jour : allocation dynamique des ressources 🞂 Mise en place d’un workflow afin d’automatiser une partie du processus et d’améliorer la gestion des échanges Prochaine étape
  • 55. Les résultats des performances du 13Util’ sur les périodes d’étude démontrent que : • Le délai moyen de résolution des incidents et des demandes est en constante réduction. • Le taux de résolution des incidents dans les engagements de service est en constante amélioration. • Les résultats statistiques ont été confortés par les résultats comparés de 2 enquêtes de satisfaction conduites avant et après le projet. Problèmes – Périmètre – Enjeux En 2014, le support utilisateurs de BNPP PF a été délégué auprès d’un nouveau prestataire sur la base d'un « contrat » avec engagement de résultat. Le13Util’ traite tout incident bureautique ou demande de service lié au poste de travail, à la téléphonie et aux habilitations. Dans l’avenir, la mise en œuvre de nouveaux services (Digital working) étendra le périmètre du 13Util’ avec pour effet, à terme, une hausse des volumes à traiter. Plan d’action Mesures – Analyses Résultats obtenus Projet 6Sigma : Performance du Support 13Util’ poste de travail Les objectifs visés via la démarche DMAIC - Six Sigma : Atteindre & maintenir un niveau de service conforme aux engagements. Mieux qualifier le flux entrant pour réduire le nombre de tickets (cible stabilisée), anticiper le flux à venir et maintenir le montant de la facture (voir le réduire). Traiter en priorité les irritants identifiés par la VOC (création de comptes, Qualité des résolution, délai d’intervention,…) et redesigner les processus si nécessaire. Anticiper les extension de périmètre de services supportés (digital working) Renforcer la plateforme de réponse automatique Les utilisateurs du 13Util’ expriment une insatisfaction sur la qualité du service: Le volume de tickets > aux prévisions (+25%) fait porter le risque d'une facture > à ce qui était prévu. Le backlog quotidien de tickets en augmentation régulière (+50% / 1 mois) exprime la difficulté à traiter les demandes dans le respect des délais. Les niveaux de performance attendus (délais traitement / taux de décroché / taux de résolution / etc.) ne sont pas systématiquement atteints. Et, globalement, les clients regrettent un manque de constance dans les réponses/qualifications de leurs demandes et attendent plus de fiabilité / visibilité. Synthèse des performances du 13Util’ Résolution des Incidents – l’amélioration initiée en 2014, se confirme en 2015
  • 56. Problèmes – Périmètre – Enjeux 🞂 Des carences dans le pilotage des dépôts cash sur comptes correspondants génèrent des coûts élevés de refinancement implicite par le Trésorier SG aux GOP de règlement. 🞂 Sur la période d’oct. 2007 à oct. 2008, le coût d’utilisation de la trésorerie s’est élevé à 12.300.000 EUR (Mesures prenant en compte les coûts de refinancement implicites et les intérêts débiteurs & créditeurs des correspondants cash). 🞂 L’enjeu de ce projet est de maîtriser le processus de gestion de la trésorerie sur comptes correspondants cash pour les périmètres FICC & GEDS, afin d’alléger le coût d’utilisation de la trésorerie SGPM. Plan d’action Mesures – Analyses 🞂 28 Comptes correspondants (sur un total de 300) cumulent 80% des coûts de refinancement. Résultats attendus projet LEAN TREASURY Charte du projet « Gestion de la trésorerie BO – périmètres FICC & GEDS » Sources: Platon, Glass (SG Zurich) & NXG 4 Limiter les positions longues rapatriées tardivement. En 2008, 10 cas d’économies potentielles pour un montant de 2.4 M. EUR. 4 En outre, la mise en œuvre des livrables doit permettre une économie de 10% des coûts de trésorerie estimées à 720 K. EUR Total des économies attendues (2.4 + 0.720) = 3.1 M EUR ❶ ❷❸ ❹ ❺ ❼ ❻ ❽ ❾ ❿
  • 57. M1 Track eXcellence Operational efficiency https://www.ted.com/talks/yves_morieux_as_work_gets_more_complex_6_rules_to_simplify?language=fr ▪ These methods are not free from criticism. ▪ Know how to adapt them to your circumstance, environment and needs.
  • 58. Course Structure and Content 1. Introduction to operational efficiency – where the principles come from? 2. Let’s have a focus on LEAN approach 3. Waste as the issue’s root 4. Let’s have a focus on 5S & Visual management 5. Voice of the customer 6. Lean toolbox ✔SIPOC ✔Decision tree ✔Pareto ✔VSM ✔Ishikawa Diagram ✔DMAIC ✔5 why ✔A3 ✔Feasibility / efficiency matrix Discover more of our courses in the Manacademy on manadvise.fr