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A Whitepaper from Juran

The Source for Breakthrough

Strategy

A 3-StepApproach toSustainingMeasurableBreakthroughResults

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Juran

Our expertise has been developed over more than six decades of real-world experience, and our methods are universal and have been applied in nearly every industry and culture around the world. Our mission is to

prepare a new generation of business leaders who will build greater prosperity for our society through the application of the operational excellence methods and values of Dr. Joseph M. Juran in the context of new

technologies, advanced applications, and expanding lessons learned. We want to be seen as trusted advisers, enabling global leaders to achieve measureable, breakthrough results.

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Doing more with less is now a strategicimperative. Certainly, being moreefficient in our work, more effective inour results, and delivering more valueto the customer has always been animportant business driver for virtuallyevery company in every industryaround the globe – whethermanufacturing, service, or healthcare –but at no time since the dawn of theIndustrial Revolution has this becomeas strategic in nature as it is today.Businesses are running leaner with lesslabor, less bricks and mortar, and lessmanagement. Some companies nowoperate in a virtual environment.

The reason for this rapid shiftcorresponds to the increase inreporting transparency over the lastdecade that has largely been fueled byaccess to information made possibleby the Internet. Social mediaaccelerates the pace ofcommunications for things such asmanufacturing recalls, product defects,disgruntled consumers, and more.Reporting agencies provide onlineaccess to hospital and physicianperformance, non-profit tax returns,college and university professorratings, and the list goes on. Littlewonder why leading companies inevery industry are so focused onachieving and sustaining measurablebreakthrough results.

After all, in today’s global market, thedifference between the winners andthe losers is no longer measured onlyin terms of financial performance andmarket share; what is now beingfactored into the equation – andrightfully so – is the value beingdelivered to the customer, which

requires a clearer understanding of theelusive and ever-changing customerneeds and the ability to translate thoseneeds into critical-to-businesselements. These critical-to-businesselements are those processes andproducts that will delight the customerand create market barriers forcompetitors, thus becoming acompany’s important areas forimprovement.

Implementing such an improvementprogram is not for the faint of heart. Ittakes an ongoing, sustained effort thathas genuine support from the C-suite,cross-functional deploymentthroughout middle management, andengaged workers at the front line. Butit is possible, especially if you follow athree-step integrated approachperfected by Juran Global overdecades of practical, real-worldexperience:

1. Preparing to improve (Trainingand certification)

2. Identifying what to improve(Benchmarking and assessment)

3. Solid execution (Transformationalchange)

Shortcutting the process – which manyorganizations do – only leads tofrustration, disillusionment, and wastedresources. For instance, benchmarkingyour organization’s performance andembarking on a handful ofperformance improvement projectswithout training management and staffon the fundamentals leads tohaphazard efforts that is likely toexpend resources without deliveringresults. Likewise, training your team onthe methods of Lean, Six Sigma, Focus

A 3-Step Approach to SustainingMeasurable Breakthrough Results

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PDCA, RCCA (root cause correctiveaction ) – or any other performanceimprovement tool – and then jumpingright into performance improvementactivities without the benefit ofknowing what and where to improvemay have you improving something,but that something might not berelevant in the marketplace.

As such, to bulletproof your efforts,heed the wisdom on decades of real-world experience that is providedbelow.

Training and Certification

To develop and sustain anyperformance improvement program,you first need people trained to do thejob. Training can take many forms,depending on the approach yourcompany decides to take. The twomost adopted methodologies are Leanand Six Sigma, and many organizationsnow train for both disciplines so thatthey can harness the power of each.

Both the Lean and the Six Sigmamethodologies have proven that it ispossible to achieve dramaticimprovements in cost, quality, and

time by focusing on processimprovement. Lean is focused oneliminating waste and improving flowby following the Lean principles, andSix Sigma is primarily concerned withreducing variation and eliminatingchronic problems by following aproblem-solving approach usingstatistical tools. Either methodologycan generate measurablebreakthrough results, but only if themethodologies are implementedcorrectly.

While the Internet has created aproliferation of online and self-studycourses, the reality is that both Leanand Six Sigma, to be learnedeffectively, require interaction with aninstructor who is considered a masterin the field and who has alsosuccessfully mentored or completeddozens of projects. Learning on yourown may provide you with thefundamentals of the methodologiesand an understanding of the varioustools in the performance improvementtoolkit, but it will not replace theknowledge of when and how to applythe methods and tools, the pitfallsassociated with each, integrationchallenges, and change management

Lean Six Sigma

Goal Understand process flow andeliminate waste

Improve process capability andeliminate defects

Where to Apply Primarily high-volume processes Any business process

Approach Basic principles and value streammapping based on standardizedpractices

Statistical problem-solving toidentify root causes and solutions

Project Selection Usually driven by middle managers Usually driven by strategic plan

Length of Projects 1 week to 2 months 2 months to 6 months

Infrastructure Mostly ad-hoc, with a core grouptrained on concepts

Dedicated resources, with mostmanagers undergoing some level oftraining

Training Mostly learning by doing Learning by classroom and bydoing

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issues that only an experiencedinstructor can provide.

As you advance your performanceimprovement program, you’ll also wantto consider having the followingresources within your company, all ofwhich require an ongoingorganizational commitment to training:

Lean Six Sigma Green Belts

Generally middle managers who areoften on project teams and areresponsible for the ongoing quality oftheir business unit, function, or processas part of their day-to-day jobs.

Lean Six Sigma Black Belts

Managers, supervisors, and technicalspecialists assigned full- or part-timeresponsibility to implement Lean SixSigma through a business unit,function, or process. Black Belts areviewed as “executors” of theimprovement activity. Black Belts, withexperience, are on-siteimplementation experts with the abilityto:

Develop, coach, and lead cross-functional improvement teams.

Mentor and advise managementon prioritizing, planning, andlaunching Lean Six Sigmaprojects.

Use, teach, and disseminate LeanSix Sigma tools and methods toGreen Belts and team members.

Lean Experts

Managers, supervisors, or technicalspecialists assigned full responsibilityto implement Lean throughout abusiness unit, function, and process.Lean Experts are trained in Leanmethods and tools and havesuccessfully completed two or moreprojects. Lean Experts are on-site

experts and viewed as “executors” ofthe Lean activity with the ability to:

Develop, coach, and lead cross-functional improvement teams.

Use, teach, and disseminate Leantools and methods to Lean SixSigma Green Belts and teammembers.

Mentor and advise managementon prioritizing, planning, andlaunching Lean projects.

Master Black Belt and Lean Master

Master Black Belts and Lean Mastersare company-wide Six Sigma, Lean,and Quality Management experts.They are qualified to instruct others inthe methodologies, tools, andapplications at all functions and levelsof an organization. They provideguidance to business leaders,integrating the Six Sigma and Leanmethods into the business strategy ofthe organization. They also contributeto identifying, creating, and carryingout performance improvementactivities aligned to the organization’sstrategic business and operationalplans, and provide coaching to BlackBelts and team leaders.

Benchmarking and Assessments

It’s no coincidence that the world’sleading companies conduct ongoingbenchmarking and performanceassessments. Benchmarking andassessments have cost-effectiveframeworks that provide objectivebaselines of performance of acompany, which, in turn, enable thecompany to transform its enterpriseinto a world-class competitor. The bestbenchmarking and assessmentinitiatives are built on quality-basedaward criteria, such as ISO, MalcolmBaldrige National Quality Award, andthe EFQM Excellence Model.

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Since 1979, Juran Globalhas trained thousands ofGreen Belts, Black Belts,Master Black Belts, LeanExperts, and Lean Masters.Juran’s training materialsand reference books aremore widely used andtranslated than those fromany other source. Juran isan Authorized Provider bythe InternationalAssociation for ContinuingEducation and Training(IACET), and is authorizedto offer IACET CEUs fortraining programs underthe ANSI/IACET 1-2013Standard.

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Benchmarking requires managementcommitment, or else you stand toundertake considerable effort withoutthe promise that the knowledgegleaned from the benchmarking studywill be converted to action. Thepurpose of benchmarking is to learnand implement best practices toimprove your processes and to gaincompetitive advantage. As such,document your own processes beforecontacting potential organizations youwish to benchmark against, identify theimportant metrics related to theprocess you wish to benchmark, andconduct thorough research of thecompanies you plan to contact. Also,develop some value based attributesof your own company that you willshare with the companies you plan tobenchmark. They will expect somequid pro quo.

Remember, benchmarking alone willnot tell you what customers actuallywant. If your product or service doesnot meet basic market needs, then noamount of improvements inproduction processes will make itcompetitive.

Assessments, on the other hand,provide you with a gauge ofperformance against known standards,such as the Malcolm Baldrige NationalQuality Award. Assessments, whetherself-assessments are those conductedby trained assessors, can help yourcompany achieve high performanceand move toward performanceexcellence. Even if your organizationisn’t ready to apply for an award suchas the Baldrige, the criteria associatedwith these awards provide frameworksfor evaluating your organization’sprocesses, their impact on results, andyour progress toward your goals andobjectives.

Transformational Change

While many organizations look forincremental improvement, globalleaders often seek transformationalchange – the type of improvementsthat can generate a 10-time to 20-timereturn on investment, productivitygains of 50% or more, throughputimprovement of 30% to 60%, or similarbreakthrough change of a significantmagnitude. In other words, what theyaim for is measurable breakthroughresults. Achieving these types ofimprovements require that thecompany excel in four areas:

Alignment: The alignment ofbusiness goals and objectives isessential to achieving anorganization vision ortransformational program. Thismeans linking corporate strategyand goals with every business unitand employee to assure the goalsare met, which creates a “goldenthread” from strategic goals todepartmental contributions.

Deployment: This is the processof executing against a plan. It isoften called Hoshin Kanri, aJapanese term for policydeployment. An effectivedeployment is one that identifiesthe actions needed to be carriedout by the key functions – finance,human resources, marketing,operations, quality, and researchand development – and establisha “catch-ball” process to allowthem to adjust and fit theircontribution to the corporaterequirements. Deployment occursthrough departmental and cross-departmental activities. One ofthe most effective means toachieve key goals is byestablishing clear and resourcedprojects across the organization.

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Joseph M. Juran, thelegendary founder of JuranGlobal, was a particularlyvocal advocate for theBaldrige program. Prior tothe passage of thecongressional act thatcreated the Baldrige Awardin 1987, he testified in frontof Congress on behalf ofcreating the award to helpbring the focus of quality tothe United States. Dr. Juranwas also one of the originalOverseers in the BaldrigeAward process. Over theyears since the beginningof the Baldrige Award,Juran Institute has offeredits own staff in support ofthe Baldrige process, manyof whom have participatedin the roles of Judges, Sr.Examiners, and Examiners.

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Business Process Management:BPM is a strategic program thatdefines the macro businessprocesses that create customervalue, which, in turn, drives salesand profits. Business successresults from superior processperformance, which can only beachieved by having superiorprocess design, the right people,and the right environment. Keybusiness processes must bedefined and process ownersassigned to manage them.

Balanced Scorecards: A strategicperformance management tool, abalanced scorecard can be usedby leaders to align businessactivities to the vision andstrategy of the organization,improve internal and externalcommunications, and monitororganization performance againststrategic goals. A balancedscorecard has to include the rightmeasures and targets to monitorthe performance of anorganization and the contributiontoward strategic goals.

Juran Global Assessments

Organization Health Check: Withover 1,000 assessments completed, wecan jump start your journey tobecoming a world-class organization.The Organization HealthCheck provides a quick qualitativereview or “fitness test” against industrybest practices.

COPQ Assessment: The cost of poorquality is the difference between thecosts of a perfectly performing processand versus the actual costs. The JuranCOPQ assessment results in thequantification of the potential dollarsthat are lost due to ineffective andinefficient processes in anorganization. This includesunderstanding the customer needsthrough the design, development,production, transportation, installation,and servicing of those goods to meetcustomer needs.

Employee Engagement: Thisassessment focuses on the practices,shared mindset, and ethos of yourorganization to identify the willingnessand ability of employees to contributeto the success of the company and theextent to which employees putdiscretionary effort into their work inthe form of extra time, brainpower,and energy.

Quality Management System (ISO): AQuality Management System allowsyou to maintain stable internalprocesses. It enables quick adaptationto new customer demands, all thewhile delivering superior products andservices in an ever-changing market.

To learn more about our assessments,or to take the Organization HealthCheck, please visit our website athttp://bit.ly/juran3, or contact us at:

Juran Global160 Main StreetSouthington, CT 06489800.338.7726info@juran.comhttp://www.juran.com/contact-us

© Juran Institute 2014. All rights reserved.

The Juran TransformationRoadmap is a time-testedframework to effectivelytransform an organization’sculture and sustain desiredchange – be it a newcompany vision, creating alean enterprise, reducingcost, improving businessprocesses, continuousimprovement, oroperational excellence. Wehave identified five phasesthat all organizations mustcomplete to sustain thegains of enterprise widechange. These phases –Decide, Prepare, Launch,Expand, and Sustain –incorporate the four areasof organizationaltransformation.