Post on 14-Apr-2017
Continuous Improvement WorkshopChase Sowden, LSSBB, PMP, CSM
Supply Chain Architect, Barcoding Inc.
“Failure is not fatal, but failure to change is!” - John Wooden
Continuous Improvement WorkshopChase Sowden, LSSBB, PMP, CSM
Supply Chain Architect, Barcoding Inc.
“First rule of any technology used in a business is that automation applied to an
efficient operation will magnify the efficiency. The second is that automation
applied to an inefficient operation will magnify the inefficiency. ” - Bill Gates
Continuous Improvement WorkshopChase Sowden, LSSBB, PMP, CSM
Supply Chain Architect, Barcoding Inc.
“Excellence is not a destination; it’s a continuous journey that never ends.” - Unknown
Continuous Improvement WorkshopChase Sowden, LSSBB, PMP, CSM
Supply Chain Architect, Barcoding Inc.
“A corporation is a living organism; it has to continue to shed its skin. Methods
have to change. Focus has to change. Values have to change. The sum of these
total changes is transformation.” - Andrew Grove
Continuous Improvement WorkshopChase Sowden, LSSBB, PMP, CSM
Supply Chain Architect, Barcoding Inc.
“Continuous improvement is better than delayed perfection.”- Mark Twain
Creating a Continuous Improvement Culture
• What is Company Culture?
Formed by the organizations values, vision, norms, systems and
beliefs. It is the collective behavior and habits of the employees
of an organization.
• “How we do what we do!”
• It’s why people stay with an organization Money will get an employee in the door, but it’s the culture that
will make them stay and grow.
Creating a Continuous Improvement Culture
• What is Continuous Improvement?
A long-term systematic process by which an organization
involves its employees, as individuals and members of a group,
in improving organizational effectiveness in the
accomplishment of the organization’s mission and goals.
• “Continuous Improvement = Continuous Change!”
Once you complete one you move onto the next. What’s the next opportunity that will drive better
value and results for our customers?
Success is the sum
of small efforts,
repeated day in
and day out!
Creating a Continuous Improvement Culture
• Misconceptions about Continuous Improvement
Only for managers
Quick deployment = quick results It’s a marathon and not a sprint
One and done
The squeaky wheel gets the grease The squeaky wheel might be the symptom and not the root cause
Creating a Continuous Improvement Culture
• Benefits of Continuous Improvement
Small wins Encourage learning that is rooted in the daily routines
Small wins make large wins possible
Do more with the same or less
Time Savings
Higher quality goods and services
Revenue Generation
Improved customer, staff, vendor satisfaction
Cost Savings
Increase revenue,
drive efficiency &
improve customer
experience!
Creating a Continuous Improvement Culture
• Tried Continuous Improvement Before and it Failed!
Lack of Management Buy-In
Orders come in and products are shipped out
Perception is “everything”
Creating a Continuous Improvement Culture
• Tried Continuous Improvement Before and it Failed!
Lack of Management Buy-In
Orders come in and products are shipped out
Management must feel the pain on the floor
Creating a Continuous Improvement Culture
• Tried Continuous Improvement Before and it Failed!
Lack of Management Buy-In
Change brings unknowns. Unknowns cause anxiety and then
resistance to change. People don’t fight change they fight being changed!
Creating a Continuous Improvement Culture
• Tried Continuous Improvement Before and it Failed!
Lack of Management Buy-In
Change brings unknowns. Unknowns cause anxiety and then
resistance to change.
Organizations don’t share why we are doing it and thus no
employee buy-in. Business case
Data points
Creating a Continuous Improvement Culture
• Tried Continuous Improvement Before and it Failed!
Lack of Management Buy-In
Change brings unknowns. Unknowns cause anxiety and then
resistance to change.
Organizations don’t share why we are doing it and thus no
employee buy-in.
Leaders should provide the “what” and the “why.” Employees
provide the “how.”
Creating a Continuous Improvement Culture
• The Customer is the Epicenter
The customer is the primary focus of continuous improvement –
it’s not that the customer is always right; it’s that the customer is
everything.
Creating a Continuous Improvement Culture
• Defining Value Anything the customer is willing to pay for is called Value Added
Anything else is called Non-Value Added or Waste
Receive Order Receive Payment
“I’d like to
upgrade
my phone!”
• How Does Your Customer Define Value? Right product/service
Time promised/expected
Quality/defect free
Creating a Continuous Improvement Culture
• How Does Your Customer Perceive Your Value?
The Ultimate Question
How likely are you to recommend
our organization to a colleague or
friend?
Perception is
everything!
Where to Find Opportunities
How would you define Supply Chain?
Where to Find Opportunities
Supply Chains are how organizations operate and compete
and covers “quote to cash.”
Supply Chain Challenges are Everywhere
All workflows can be more
efficient, accurate, connected
• System issues
• Information not readily available
• Manual processes everywhere
• Excessive manual reports
• Limited integration of info
• Product not ready to ship
• Parts are short for work orders
• MRP providing inaccurate numbers
• Inventory dollars climbing
• Ineffective collaboration with interfacing departments
Where to Find Opportunities
• KPI’s
• Customer feedback
• Top 5 “Pain Points” survey by department
• Market analysis
• Benchmarking analysis
• Profit and loss analysis
These are no longer
opportunities and
this is being reactive!
Be Proactive and Not Reactive
Identify improvement while it’s still an opportunity and before it
becomes a problem.
Change faster and
more effectively than
your competition, or
go out of business!
Identify Supply Chain Waste
• Transportation Transportation waste in a service/product environment is
unnecessary and non-value-added movement of people, goods,
and information in order to fulfill the service obligation to your
customer.
Identify Supply Chain Waste
• Transportation
• Waiting If people, systems, materials or information are waiting, that’s
waste.
Identify Supply Chain Waste
• Transportation
• Waiting
• Overproduction Are your services/products producing sooner, faster or in greater
quantities than the customer is demanding or requiring?
Identify Supply Chain Waste
• Transportation
• Waiting
• Overproduction
• Defects Defective services/products are those that do not deliver the
correct requirements to the customer, the first time.
Identify Supply Chain Waste
• Transportation
• Waiting
• Overproduction
• Defects
• Inventory Do you have service/build products no one wants?
Identify Supply Chain Waste
• Transportation
• Waiting
• Overproduction
• Defects
• Inventory
• Movement Are activities, paperwork, and other efforts unnecessarily juggled?
Identify Supply Chain Waste
• Transportation
• Waiting
• Overproduction
• Defects
• Inventory
• Movement
• Extra Processing How much extra paperwork of effort do people go to in order
to deliver the service/product? Could any steps be eliminated?
Identify Supply Chain Waste
• Transportation
• Waiting
• Overproduction
• Defects
• Inventory
• Movement
• Extra Processing
• Safety Safety is the foundation of all activities. People must be able to
deliver value to the customer without injury. Evaluate areas
within the supply chain to ensure safety of all.
Focus on a Total Solution
Focus on a Total Solution
“First rule of any technology used in a business is that automation applied to an efficient
operation will magnify the efficiency. The second is that automation applied to an
inefficient operation will magnify the inefficiency. ” - Bill Gates
How to Get Started
• Leadership Takes the Reigns This is the number #1 success factor
Explain Why new improvements are important
Why they will make for a happier work environment
How to Get Started
• Leadership Takes the Reigns
• Start Small Smaller scale pilot projects breeds a successful track record
Focus on one department Allows the kinks to be worked out of the process
How to Get Started
• Leadership Takes the Reigns
• Start Small
• Encourage Participation Employees are the bread and butter of continuous improvement
Solicit ideas Implement as soon as possible to show the organization is serious
How to Get Started
• Leadership Takes the Reigns
• Start Small
• Encourage Participation
• Develop Robust Communications
• Identify the Root Cause
How to Get Started
• Assess people Available skillsets? Knowledge levels of best
practices and standards? Expertise levels
with tools and methods?
• Assess business processes Inputs, outputs, resources, constraints? Process maps and
metrics?
• Assess technologies IT environment, platforms, systems? Engineering, manufacturing,
supply chain productivity software products in use? Levels of
performance, scalability, availability, security, integration?
Remember the
three-legged
stool!
How to Get Started…..People
• Too many organizations see change as a mechanism Set the strategy
Turn the handle
Everything then falls into place
How to Get Started…..People
• Too many organizations see change as a mechanism
• Organizations are a group of people behind a common
vision or purpose Unless you engage the people in that common purpose then the
road ahead will be hard
Make it easier from boardroom to floor to your customer Get everyone engaged so they can see the contribution they are
making
How to Get Started…..People
• People want to feel they are being listened to and taken
seriously
• The people doing the job are the ones who know best Tap into their expertise
Allow this to enter into your strategies
They’ll be more aligned and on board
Do this across the entire organization Ignites passion
Energy and excitement throughout all layers of an organization
Makes achieving your goals that mush easier
Focus on delivering
value to your
customer everyday!
How to Get Started…..People
• Develop People Encourage and foster learning and teaching at all levels
Build knowledge in problem solving thinking
Innovation is required, so encourage it
Develop a “what’s next” way of thinking
Sustaining improvements and the urge to improve again and again It’s cultural and not superficial
How to Get Started…..People
• Attitude Towards Failure Utmost Importance Reward failure
How to Get Started…..People
• Attitude Towards Failure Utmost Importance Reward failure, if not…..
People won’t take risks and make breakthroughs
People will hang onto a doomed idea for fear of
consequences – this wastes time and saps an
organizations spirit
How to Get Started…..People
• Attitude Towards Failure Utmost Importance Reward failure
Everyone fails from time to time
Treat as a learning experience
Failure cannot be avoided It’s necessary learning that must occur
How to Get Started…..Process/Workflows
• Designed around How the Customer Defines Value First you must understand the customer requirements
Hands-On Process Exercise
• Customer Requirements No one is to touch the tennis ball more than once.
Everyone must touch the tennis ball.
The order of who touched the tennis ball must always be the
same.
There must be no drops (defects).
Once everyone has touched the tennis ball the last person places
the tennis ball in the container.
Preform this process as quickly as possible.
How the Process was Improved
• What helped improve the process the most?
• What did you eliminate from the process? Distance
Throwing
Catching
Flight time
Purpose of Exercise
• Brainstorm process improvement ideas
• Identify ways to take time out of the process
• Demonstrate how quality is defined by the client Value added steps
How to Get Started…..Process/Workflows
• Identify the Root Cause
How to Get Started…..Process/Workflows
• Identify the Root Cause Avoid focusing on a single root
cause
Focus on systemic issues not
individuals
Avoid bias caused by current
knowledge
Avoid jumping to quick
conclusions
Why did the Challenger
explode?
How to Get Started…..Process/Workflows
• Value Stream Mapping This simple tool enables you to understand a current process and
make improvements with the help of the process owners and
users.
How to Get Started…..Process/Workflows
• Value Stream Mapping Break down the
process to capture
the steps
Collect time
estimates for each
step
Identify issues and
challenges with
each step
Evaluate the
process and
suggest solutions
How to Get Started…..Technology
• What happens when you depend solely on technology to
fix problems?
• Technology is the foundation that anchors an organizations
processes allowing your people to perform with increased
efficiency and accuracy. The technology should support the behavior your
trying to encourage on the floor.
Don’t try and fit a square peg in a
round hole.
• The empowerment of people builds the better
process and technology.
Creating a Continuous Improvement Culture
• Communication Face-to-face, two way flow of information
Make the meetings meaningful and not just to have a meeting.
Creating a Continuous Improvement Culture
• Communication Face-to-face, two way flow of information
NOT e-mail! Very impersonal
Left to interpretation
Good as a follow-up after face-to-face
Creating a Continuous Improvement Culture
• Recognition For individual employees
For taking action and innovating
As part of every meeting
Applaud. Announce. Applaud again!
Evaluate and distribute throughout the organization
In Summary
• Plan Do Check Act
Make the right change
Carry out change
Verify the desired change
Sustain and learn from the change
Believe in the Impossible!
What Opportunities are Available
• When was the last time you asked….. “How well are we doing?”
• Opportunity Self Assessment https://sca-by-barcoding.typeform.com/to/wL76R7
Thank you!
#SupplyChainGeek
Chase Sowden
Barcoding Inc.
chase.sowden@barcoding.com
Leave no stone unturned & leave your fear behind!
• Opportunity Self Assessment https://sca-by-barcoding.typeform.com/to/wL76R7