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Operational Excellence Series III Continues Improvement Deployement
The document discusses the deployment of continuous improvement (CI) as a key strategy for enhancing organizational competitiveness. It emphasizes the need for thorough analysis of initial conditions, alignment with company strategy, and effective communication to ensure successful CI implementation. Various deployment models are presented, along with considerations for infrastructure, metrics, and organizational readiness.
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Operational Excellence Series III Continues Improvement Deployement
- 1. OPERATIONAL EXCELLENCE SERIES CONTINUOUSIMPROVEMENT DEPLOYMENT Operational excellence Series is an informative set of documents prepared by Simple and Pragmatic Consultancy
- 2. CONTINUOUS IMPROVEMENT DEPLOYMENT In theprevious chapter of our OPEX approach, we emphasized the importance of continuous improvement. In this chapter we will go deeper in CI and study how to deploy it successfully.
- 3. The deployment ofcontinuous improvement is a significant step that organizations can take to become more competitive. To ensure the longterm sustainability of CI, companies need to analyze and accept its strengths and weaknesses and properly utilize chosen methods, principles, concepts and tools. EFFICIENCY & EFFECTIVENESS AND FLEXIBILITY
- 4. The deployment ofcontinuous improvement is a significant step that organizations can take to become more competitive. To ensure the longterm sustainability of CI, companies need to analyze and accept its strengths and weaknesses and properly utilize chosen methods, principles, concepts and tools. INITIAL CONDITIONS REVIEW Before any CI deployment, initial conditions like company culture, sector of activity, challengers/leaders,business results, competitors, customers as well as previous deployment fails and success, managers vision & involvements should be identified. Then deployment method should be choosen in order to : Transform vision in strategy and strategy in long terms goals, Conduct change management, with strong management support, Succeed in enterprise transformation and process improvement, Problem solving& cost reduction.
- 5. CI DEPLOYMENT ALIGNMENT WITHSTRATEGY CI objective cascading company strategy 5 years to 1 year
- 6. BUILDING THE CI OBJECTIVESPLAN Top down objectives Organizational objectives must drive CI actions, such as Six Sigma projects CI projects should be aligned and prioritized according to organizational objectives Six Sigma specialists should support the execution of strategy Bottom up opportunities CI professionals, such as LSS black belts, could develop customer surveys, test questionnaires, gather customer data, analyze data and establish focus group to name a few activities Best practices sharing 5S,VM,VSM primer, Kaizen events objectives should provide a strong CI dynamic and should also be part of annual objectives While CI professionals are traditionally known for demonstrating cost savings, they also should be regarded as those thru who strategy is executed.
- 7. CI AND LSSDEPLOYMENT METRICS AND FOLLOW UP It is critical to follow up CI deployments and LSS projects with SMART metrics. In order to see how company evaluate, it is necessary to build up data and performance driven management culture to measure Organizational, Process and LSS performances
- 8. DEPLOYMENT METHOD CHOICE According tocompany strategy and organizational readiness , we should choose deployment method and its scale, whether it concerns entire organization, department, section. Organizational readiness is related the current culture, past experiences, management team and stability. Remember that there is no “right model”. However there are four models of deployment to the organization’s situation. Enterprise wide (traditional model) Reduced perimeter/department (scalable model) Targeted (problem solving model) Grass roots (bottom up model)
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- 10. DEPLOYMENT SUPPORT INFRASTRUCTURE In orderto meet deployment support needs, we need to build a strong infrastructure on three pillars ; Projects, People, Training Projects Project idea and charter development process Project financial validation process Project selection process Audit results process Project database People Selection process Certification process Development plans Rewards and recognition Organizational structure Engagement Training Lean Sigma Statistical software Tools and templates
- 11. COMMUNICATION NEEDS Buildinganeffective communicationishighly importantforCI deployment,asemployee awarenesshasacritical roleforsuccess. Projectsareeffectiveonly whentheorganizationas awholeunderstandsthe needandtheirscope Theapproachneedtobe communicatedto everyonethroughclear andopen communication channels Makingtheemployees awarewillcontributeto overcomeanyresistance Itisnecessarytooutline thestrategiesandthe goals CIprojectsstakeholders needtohavemethodsand processinformation Clearlydefinetheroleof everyemployeeinrelation tohis/hercontribution Attention to ! Lackof clear and effective communication channels Underestimating the employees' needs of information
- 12. Bottomup approach Regularly assesthe situation from employee’s point of view Conduct general surveys, thematic surveys, face to face and informal interview IMPROVING COMMUNICATION An executive with a little knowledge of CI can be more dangerous than an executive who admits knowing nothing about the methodology. . Selectthemosteffectivechannelof communication Emails,intranet,blogs,forums,video, onlinepresentations Magazines,newsletters,posters,CIgoodies, quiz Generalmeetings,operationalcascaded meetings,thruKaizen,VSM Projectevents,bestinnovativeideas monthlyprize Be realistic It takes time to develop effective communication systems Building trust among the employees, no promise that cannot be fulfilled Counter examples are terribly counter productive Here are some tips to improve communication :
- 13. GOVERNANCE & STAKEHOLDERS ROLES Whoshould run the CI organizations and what do they need? The leader of a CI organization have to be familiar with the tools and methodologies. They should be able to look at big picture and orchestrate activities that get the right people involved doing the right things. They, also are able to ask right questions and motivate people so that projects are completed in timely fashion . The CI steering must be tied to company steering thru steering committee in which they select candidates and projects as well as validate charters.
- 14. OPERATIONAL INVOLVEMENT Hardest part tomobilize.. Whether is the IT, marketing or any other department, resistance will be tougher in some areas. Reasons may be organizational, cultural or individual. Therefore, CEO and/or sponsors should be challenged on these issue in order to define the appropriate CI strategy and lever barriers without letting unhealable scars. Bottom-up improvement source Suggestion, Kaizen inputs R&D product breakthrough IT or IS breakthrough Innovation sharing and distribution Appropriate process should be set to share field innovation inside the entity and promote it to other entities.
- 15. KPI& DEPLOYMENT MATURITY ASSESSMENTHardestpart to mobilize.. Choosing SMART KPIs covering the global CI deployment progress is crucial KPIs should be ; Specific Clear statement of what KPI exactly measure Measurable It must be easy to compare the actual value to objective Achievable It must be accepted Relevant The KPI must give more insight in the performance Time phased Value expressed in time Remember ! Most KPIs provide afterthe event information, these KPIs are “lagging” as they are not preventive When KPIs only measure process steps, we can become too reliant on them and fail to spot the potential risks
- 16. WHAT TO DOFIRST ? When an organization begins a CI deployment, what should be the first step ? Kaizen events to demonstrate the impact of quick process improvement? Or Six Sigma projects, using DMAIC or DFSS roadmap, with a deep dive into sophisticated statistics? Ideally, we should start with a LSS maturity assessment, – a self – evaluation of where the organization stands. Knowing where the organizations needs to be in the future Leaders know the current state of their business its strengths, weakness and improvement opportunities.
- 17. LSS MATURITY ASSESSMENT Alean six sigma maturity assessment can follow a three phase approach; Assess, Analyze, Address short and log term actions Scorecards and radar charts can be used for LSS maturity self assessment Scorecards can be completed by CI leaders and operational leaders. They usually address 12 LSS parameters
- 18. 12 LEAN SIXSIGMA PARAMETERS Leadership alignment Leadership approach toward lean Employee involvement Training and education Process capability Approach to errors Data driven problem solving Methodologies of continuous improvement Standard work Value stream mapping Accounting support to Lean 5S/Housekeeping
- 19. S&P is acommon initiative of Leannovative and Performance Club consultancy companies. Our aim is to simplify things for professionals and for our clients. For more information about our projects and for support please contact us via e-mail through: edursun@leannovative.com tansu@kariyer-kulubu.com Additional contact details and our web page will be available soon.