McLaw & Associates · LEAN SIX SIGMA IS BASED ON THE PRACTICAL LEARNING OF ... Total Quality...

McLaw & Associates

McLaw & Associates Master Practitioners in Operational Excellence

Alex McDonnell www.mclaw.ie

www.xpertivity.com Mobile: +353 87 223 9096

[email protected]

2x Service & Knowledge Worker Productivity

McLaw & Associates

Do you recognise your Team?...

Always chasing our tails!

Reactionary Environment! Fire Fighting!

LEAN SIX SIGMA IS BASED ON THE PRACTICAL LEARNING OF ORGANIZATIONS IMPROVING THEIR PROCESSSES FOR OVER 50 YEARS

Just in Time ( ‘ 80s)

Motorola – Six Sigma ( ‘ 80s)

Total Quality Management ( ’ 80s) BPR ( ‘ 90s)

GE ( ‘ 80s – ‘ 90s)

Transformation

Lean Manufacturing ( ‘ 90s)

Deming/ Juran ( ‘ 50s)

Ohno ( ’ 60/ ‘ 70s)

Just in Time (’80s)

Motorola – Six Sigma (’80s)

Total Quality Management (’80s)

BPR (’90s)

GE (’80s-’90s)

Transformation

Intensity of Change

Kotter etc.

& Leadership

Intensity of Change

Kotter etc.

& Leadership

Six Sigma (applied method for growth and productivity)

Customer Partnering (GE Toolkit, QMI, Customer CAP

Change Acceleration Process – CAP (Change method and tools)

Process Improvement (NPI, Supply Chain, Suppliers)

Best Practices (benchmarking, across and outside of GE, ending NIH)

Work - out (Kaizen type, cross functional teams, boundarylessness, values)

Strategy No 1 or No 2 in each business. Fix, close or sell

Six Sigma (applied method for growth and productivity)

Customer Partnering (GE Toolkit, QMI, Customer CAP)

Change Acceleration Process – CAP (Change method and tools)

Process Improvement (NPI, Supply Chain, Suppliers)

Best Practices (benchmarking, across and outside of GE, ending NIH)

Work - out (Kaizen type, cross functional teams, boundarylessness, values)

Strategy No 1 or No 2 in each business. Fix, close or sell

(Allied Signal) (Allied Signal)

(down - sizing, “ to be “ processes, process owners)

(SPC,Quality Circles, Kaizen)

(culture change/benchmarking, Baldridge/EFQM, ISO9000)

(down - sizing, “ to be “ processes, process owners)

(SPC,Quality Circles, Kaizen)

(culture change/benchmarking, Baldridge/EFQM, ISO9000)

Lean Manufacturing (’90s) (Kanbans, Pull systems, Visual management) (Kanbans, Pull systems, Visual management)

( “ Machine that changed the world ” , “ Lean Thinking ” , Value Stream Mapping) ( “ Machine that changed the world ” , “ Lean Thinking ” , Value Stream Mapping)

Lean Six Sigma (00’s)

(14 points, statistical quality)

(14 points, statistical quality)

(Toyota Production System)

(Toyota Production System)

Deming/ Juran (50s)

Ohno (’60/’70s)

Lean- Concepts and Knowledge are Well Known

Transformational Leadership High Performing and Adaptive Culture

Clie

nt S

atis

fact

ion

Em

ploy

ee E

mpo

wer

men

t

Pro

cess

Exc

elle

nce

Fina

ncia

l Exc

elle

nce

Basic Knowledge (Getting Started)

Basic Stability

Structured Problem Solving

Plan - Do - Check - Act

Information & Support Systems

Strategic Planning

Continuous Learning Organization

Lean 101 Core Team Training

Science of Mfg. Web Lectures

Leadership Book Clubs & Workshops

5S, Visual Management

Standard Work Process Map, Value Add Analysis

Kaizen Events

8D Problem Solving & A3 Process Improvement

DMAIC & DFSS FMEA

Decision Support Systems QFD

Visual Control Board

Deployment Leadership & VSM Management

Simulation Modeling

Lean/Agile/LSS Applied Learning

Hoshin Planning

House of Lean Building Blocks Capabilities & Skills

Pull Value & Streamline E2E Flow

Pull Systems, Kanban POUS Single

Unit Flow Process vs.

Functional Layout

Mapping

Stream

Value

5

True Lean: Structured Transformation Program

6

True Lean: Goes Deep & Narrow

7

Manufacturing

Process industries

Services

Toyota Automotive

Industrial products High fashion

Medical devices

Consumer products

Aerospace

Shipbuilding Pharma

Food production

Pulp and paper

Chemicals

Airlines

Railroads Naval operations and maintenance

Hospital

Insurance

Banking

Store retail

Upstream E&P

High Tech

Consulting

Law Firms

Hospitality

Clinical Trials Management

OPERATIONAL EXCELLENCE HAS BEEN ADOPTED IN MANY DIFFERENT ENVIRONMENTS

Financial Services

Traditional View of Business

CEOCEO

GM CreditGM Credit

GM FinanceGM Finance

GM MarketingGM Marketing

GM OperationsGM Operations

GM RetailGM Retail

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Company XYZDepartment Name

Process View of Business

CEOCEO

GM CreditGM Credit




GM RetailGM Retail

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Customer delivered Value





Internal v Customer View of Business

CEOCEO

GM CreditGM Credit




GM RetailGM Retail

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CEOCEO

GM CreditGM Credit




GM RetailGM Retail

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• Processes are Working But – Could Be Much More Effective – Could Be Much More Efficient

CU

stoe

mr S

ervi

ces

Customer Request

Non Value Added: “The Hidden Organisation”

Service Delivered

Non Value Add

Value Add

Beware of the Long Run

Managing Unintended Consequences

The “Laws” of Complex Adaptive Systems

• Today’s problems come from yesterday’s “solutions” • Behavior grows better before it grows worse • The cure can be worse than the disease • Cause & effect are not closely related in time and

space • The harder you push, the harder the system pushes

back…..eliminate the problem don’t fight it! • Small changes can produce big results – but the areas

of highest leverage are often the least obvious • Dividing an elephant in half does not produce two small

elephants • There is no blame

Based on Slack, Chambers, Johnson & Betts: Operations & Process Management© Pearson Education

Building Operational Excellence as a Core Competence

Phase 3

McLaw & Associates

“As Is”

Phase 1

Phase 2

Level 5 World Class Operations

Level 4 Optimised End

to End Processes

Level 3 Waste Targeting

& Elimination

Level 2 Measurement &

Awareness

Level 1 Executing Historic

Routines

Journey to Operational Excellence

Domain Expertise

Service Operations Fundamentals (Demand & Capacity

Management)

Lean Concepts

Process Structures & Optimisation

Systems Thinking

Key C

ompetences

McLaw & Associates

Com

petitors Performance

Trial Management Site

Initiation

Sub Process

Sub Process

Sub Process

Sub Process

Sub Process

Sub Process

Sub Process

Site Selection

Regional Manager

CSRM

Sub Process

Sub Process

Sub Process

Sub Process

Sub Process

Protocol Design

Sales

Sub Process

Ops Process

Custom

ers Expectations

Value Stream

Products

Standards Repository

Value Stream

Sub Process

Sub Process

Sub Process

Sub Process

Sub Process

Inside out? Or Outside In?

This slide is animated

Approach

Science of High Performance is Known & Proven

McLaw & Associates

Lack of Knowledge is Not the Problem

19

?

How Do We Perform?

Delivered Service/Execution

A

Gap A: Does The Customer Experience Their Desired Level Of Service

Desired Service

Tolerance Zone

Expected Service

Desired Service

Tolerance Zone

Expected Service

Expected Service

Tolerance Zone

Desired Service

5

1

5

1

What do They Value?

B Understanding & Articulation Of Customer Requirements

Gap B: Do We Understand what Customers Value.

C Customer Driven Service Design & Standards

Gap C: Have We Designed Our Products and Service to Meet These Needs.

E

• Explicit Promise

• Implicit Promise

• Word of Mouth • Past

Experience • Personal Needs External

Com

munications

Gap E: Do Our Communications set the Right Expectation Level.

Gap D: Does our Delivery Execution meet these Needs. D

Gap A: Gap B x Gap C x Gap D x Gap E 66% 90% x 90% x 90% x 90%

How Do Competitors Perform?

Competitors Consumer Corporate SME

Who Are our Customers?

What is Business Performance?

Key Components

Gaps in “Design for How People Learn” 1. Knowledge Gap

1. What information does the learner need to be successful? 2. When along the route will they need it? 3. What formats would best support that?

2. Skills Gap 1. What will the learners need to practice to develop the needed

proficiencies? 2. Where are their opportunities to practice?

3. Communication Gap 1. Are the goals being clearly communicated?

4. Environmental Gap 1. What in the environment is preventing the learner from being

successful? 2. What is needed to support them in being successful?

5. Motivation Gap 1. What is the learner’s attitude towards the change? 2. Are they going to be resistant to changing course?

Steps to Achieving Sustainable Change

Where we are today is not good enough

Step 1

Where we plan to go is the right place

to be

Step 2

Belief that we can get there

Step 3

Create a Guiding Coalition

Step 5

Top Management’s Role

Step 6

Achieve some Quick Wins

Step 7

Build Culture of Continuous change

Step 8

Achieving Sustainable Change

Develop a Roadmap

Step 4

Service Operations Fundamentals: The Foundations

Non-Value Added Demand

Trends Why?

Historical Trends

Manage How?

Current

Forecast What If?

Future

Work Team

Quantity per Day Man Hours/Day

Demand In Hrs/Day

Task Times ? Variability?

Current

Improve What, How?

Plan/Prioritise

Total Demand

Task 1 Time x Qty Task 2 Time x Qty Task 3 Time x Qty

to Task n Time x Qty

Customer Needs

Customer Needs

Customer Needs

Customer Needs

Service Delivered

Value Added Demand

McLaw & Associates · LEAN SIX SIGMA IS BASED ON THE PRACTICAL LEARNING OF ... Total Quality...

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