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Operational Excellence
an exercise of leadership




Luis Elizondo
2009
An example in Mexico …engineering center

• Created to service one customer only: a multinational company.

• Provides engineering services and new product development.

• Certified in ISO9001:2000.

• Full time Lean Six Sigma organization.

• National Technology Award, First Place 2003

• 1997 - 2008 20x inorganic growth.



Success story and good example of operational excellence
Success Factors
• Leadership development program.
• Talent recruitment process 10:1.
• Sense of belonging to a global team … 5000 eng./ 8 countries.
• Work follows a documented process, there are metrics on
  productivity and on time delivery; every deliverable has a
  quality inspection.

• There is a continuous improvement process in place :
        1. Quality escapes are documented,
        2. root cause analysis is conducted,
        3. Lean Six Sigma projects are prioritized,
        4. training needs are also detected.
• Leadership development includes Six Sigma full time jobs.
Customer Centric Processes and Metrics


Service                                                    Delivery to
                           Engineering Service
Request                                                    Customer
               PM                                      Q
                            New Development

               η                                   σ
                                   OTD


          • Simple processes.
          • Everyone knows what he/she needs to do.
          • Digital tools that facilitates work.
          • Metrics defined from the customer point of view.
Metrics …operational definitions

• Efficiency: how are we using the resources that has been paid by
the customer …applied hours on man power or EVM (project status
vs. Plan)

• OTD: how many projects are we delivering on time …from the
customer request to the acceptance of the last deliverable.

• Quality: what is the quality of each family of deliverables measured
from the customer perspective (CTQ’s)



 Quality inspection through templates and certified reviewers
Lean Process Design


1. Process mapping “as IS”.

2. Value analysis …Lean.

3. Eliminate, integrate, digitize …or Six Sigma.

4. Improved process.




    Improvement is a cyclical process
Operational Excellence

1. Lean processes per service type …WBS.

2. Rigor in following up and measuring projects.

3. Develop a process to measure quality per deliverable

4. Dashboard …efficiency, OTD, quality

5. Continuous improvement process …Lean / Six Sigma.


    Performance Leadership1 :

    The leadership team is responsible for performance …

                                     …through motivating the team.

              1 Performance   Leadership By Frank Buytendijk
Operational Excellence
                                                    _
              +
• Increased productivity            • Change resistance
• Improved control                  • Resistance to external control
• Potential savings
                                    • What is it for me ?
• Asset creation

• Simplification of tasks

• Motivation / retention
                               The “sale” of the initiative with people
• Better understanding of
                               is a critical success factor of any
  the business
                               project and is a leader’s responsibility
¿ Why so many projects fail ?

                                       Process
                 Processes
                                        Lean
                   Lean                                 Project Mgmt.
                                  Metrics                    PMI
 Metrics
                                 Six Sigma
Six Sigma
                                                        Change Mgmt.
                Project Mgmt.
                                                            CAP
                     PMI
  • BPM                          • Operational Excellence
  • BSC                          • Performance Leadership
  • Performance Mgmt.
                                 The leader guides the team through
                                 the change process:
  Why it is not enough ?             • what is in for me ?
  …where is the people ?             • where are we going ?
Next Steps

1. Define training needs for the project team …Lean, PM, Six Sigma.

2. Develop a WBS per service / product type …dictionary.

3. Assess current status of processes …as IS.

4. Select a service family to begin with …impact, benefit.

5. Define for that service family how to measure efficiency and OTD.

6. Define how will quality be measured for each deliverable.

7. Define a continuous improvement process.

8. Develop a wish list of digital tools …set priorities.


 How do you execute your project send a strong message

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Operational Excellence

  • 1. Operational Excellence an exercise of leadership Luis Elizondo 2009
  • 2. An example in Mexico …engineering center • Created to service one customer only: a multinational company. • Provides engineering services and new product development. • Certified in ISO9001:2000. • Full time Lean Six Sigma organization. • National Technology Award, First Place 2003 • 1997 - 2008 20x inorganic growth. Success story and good example of operational excellence
  • 3. Success Factors • Leadership development program. • Talent recruitment process 10:1. • Sense of belonging to a global team … 5000 eng./ 8 countries. • Work follows a documented process, there are metrics on productivity and on time delivery; every deliverable has a quality inspection. • There is a continuous improvement process in place : 1. Quality escapes are documented, 2. root cause analysis is conducted, 3. Lean Six Sigma projects are prioritized, 4. training needs are also detected. • Leadership development includes Six Sigma full time jobs.
  • 4. Customer Centric Processes and Metrics Service Delivery to Engineering Service Request Customer PM Q New Development η σ OTD • Simple processes. • Everyone knows what he/she needs to do. • Digital tools that facilitates work. • Metrics defined from the customer point of view.
  • 5. Metrics …operational definitions • Efficiency: how are we using the resources that has been paid by the customer …applied hours on man power or EVM (project status vs. Plan) • OTD: how many projects are we delivering on time …from the customer request to the acceptance of the last deliverable. • Quality: what is the quality of each family of deliverables measured from the customer perspective (CTQ’s) Quality inspection through templates and certified reviewers
  • 6. Lean Process Design 1. Process mapping “as IS”. 2. Value analysis …Lean. 3. Eliminate, integrate, digitize …or Six Sigma. 4. Improved process. Improvement is a cyclical process
  • 7. Operational Excellence 1. Lean processes per service type …WBS. 2. Rigor in following up and measuring projects. 3. Develop a process to measure quality per deliverable 4. Dashboard …efficiency, OTD, quality 5. Continuous improvement process …Lean / Six Sigma. Performance Leadership1 : The leadership team is responsible for performance … …through motivating the team. 1 Performance Leadership By Frank Buytendijk
  • 8. Operational Excellence _ + • Increased productivity • Change resistance • Improved control • Resistance to external control • Potential savings • What is it for me ? • Asset creation • Simplification of tasks • Motivation / retention The “sale” of the initiative with people • Better understanding of is a critical success factor of any the business project and is a leader’s responsibility
  • 9. ¿ Why so many projects fail ? Process Processes Lean Lean Project Mgmt. Metrics PMI Metrics Six Sigma Six Sigma Change Mgmt. Project Mgmt. CAP PMI • BPM • Operational Excellence • BSC • Performance Leadership • Performance Mgmt. The leader guides the team through the change process: Why it is not enough ? • what is in for me ? …where is the people ? • where are we going ?
  • 10. Next Steps 1. Define training needs for the project team …Lean, PM, Six Sigma. 2. Develop a WBS per service / product type …dictionary. 3. Assess current status of processes …as IS. 4. Select a service family to begin with …impact, benefit. 5. Define for that service family how to measure efficiency and OTD. 6. Define how will quality be measured for each deliverable. 7. Define a continuous improvement process. 8. Develop a wish list of digital tools …set priorities. How do you execute your project send a strong message