Continuous Improvement Program Workshop

Continuous Improvement WorkshopChase Sowden, LSSBB, PMP, CSM

Supply Chain Architect, Barcoding Inc.

“Failure is not fatal, but failure to change is!” - John Wooden



“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



“Excellence is not a destination; it’s a continuous journey that never ends.” - Unknown



“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 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.


• 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!


• 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


• 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!


• Tried Continuous Improvement Before and it Failed!

Lack of Management Buy-In

Orders come in and products are shipped out

Perception is “everything”




Orders come in and products are shipped out

Management must feel the pain on the floor




Change brings unknowns. Unknowns cause anxiety and then

resistance to change. People don’t fight change they fight being changed!





resistance to change.

Organizations don’t share why we are doing it and thus no

employee buy-in. Business case

Data points





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.”


• 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.


• 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


• 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?


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


• 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.


• Transportation

• Waiting If people, systems, materials or information are waiting, that’s

waste.


• Transportation

• Waiting

• Overproduction Are your services/products producing sooner, faster or in greater

quantities than the customer is demanding or requiring?


• Transportation

• Waiting

• Overproduction

• Defects Defective services/products are those that do not deliver the

correct requirements to the customer, the first time.


• Transportation

• Waiting

• Overproduction

• Defects

• Inventory Do you have service/build products no one wants?


• Transportation

• Waiting

• Overproduction

• Defects

• Inventory

• Movement Are activities, paperwork, and other efforts unnecessarily juggled?


• 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?


• 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


• 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


• 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


• 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


• 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!


• 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


• Attitude Towards Failure Utmost Importance Reward failure


• 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


• 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


• Identify the Root Cause


• 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?


• 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.


• 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.


• Communication Face-to-face, two way flow of information

Make the meetings meaningful and not just to have a meeting.


• 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


• 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.

[email protected]

Leave no stone unturned & leave your fear behind!

• Opportunity Self Assessment https://sca-by-barcoding.typeform.com/to/wL76R7

Continuous Improvement Program Workshop

Technology

Transcript of Continuous Improvement Program Workshop