Total Quality Management & Continuous Improvement...SIPOC 5S SMED VSM DOE Meeting mgmt Scoping g D e...

Total Quality Management & Continuous Improvement

INTERSECTOctober 17, 2018Knoxville, TN

Ed MilesGRIDSMART, DirectorMILES & ASSOCIATES, OwnerUT GEE, Faculty

INTERSECT Miles & Associates2

Objectives

u Evolution of TQM and CI

u Definition of a Business Improvement System

u Current Improvement System Trends

u Insights for Successful Implementation

Participants will learn:


Discussion Outline

I. Assumptions and Context

II. Total Quality Management & Continuous Improvement

Æ Why?Æ What?Æ How?

III. Trends

IV. Summary

V. Questions & comments


Key Assumptions

u Leadership and management style

u Measurement system

u Management of processes and workflow

u Teamwork and interpersonal behavior

u Roles and responsibilities

u Organizational training and development

u Structured process to manage the change

Successful implementation requires focused interventions

addressing some combination of the following:

INTERSECT Miles & Associates


Why?


The Kano Model

Understanding

WHY? Exciting OrDelighted Level

DemandedLevel

Must Or Basic Level

HIGHER PERFORMANCE

Fully AchievedLOWER PERFORMANCE

Did Not Achieve At AllPERFORMANCEOBJECTIVE

CUSTOMER SATISFACTION

Unspoken

Unspoken

Spoken

LESS

SAT

ISFI

EDM

OR

E SA

TISF

IED


Results of aMisaligned

Organization

Results of anAligned

Organization- Customer- Financial- Employee- Process

Organizational AlignmentWHY?



What?


Evolution of Improvement Systems

Business Process Reengineering

(BPR)

Toyota Production System (TPS)

Design for 6 Sigma

Lean

A3

B3

5 Whys

Takt time

Control Charts

Histograms

Pareto charts

Fishbone diagram

Spaghetti diagram

Heijunka

Kanban

Shadow boards

Poka Yoke

POU

Visual Mgmt

Flowcharting

SIPOC

5S

SMED

VSM

DOE

Meeting mgmt

Scoping

Cha

rter

ing

TIM

WO

OD

Typ

es o

f Was

teJu

st in

Tim

e

Standard work

Proces

s walk

Push vs. Pull

1 piece flow

Kitt

ing

Mistake Proofing


Looking at the Waves

u Scientific Management

u Deming management approach (PDCA)

u TQM

u Reengineering

u Theory of constraints

u Lean

u Six Sigma

u Business Analytics

u Big Data

u …….

10


WHAT is Continuous Improvement?

u An integrated Management System for operating and improving your business

u Desired results: Improved business performanceÆ Customer satisfactionÆ Operational and financial resultsÆ Enhanced operating culture

u Based on practical and proven approaches

u Continuous validation and improvement (year after year)


WHAT is Continuous Improvement?

Process

Manag

emen

t Leadership

People System

s &

Structu

re

Process Management

u Continuous, fact-based process improvement

u Data-based decision making is fully engaged

People

u Core competencies: involvement, teamwork, accountability and effective communications

u Continuous learning and development

Leadership

u Highly collaborativeu Guides & aligns the

enterpriseu Facilitative styleu All team members

participate

Systems & Structure

u Limited and flexibleu Highly motivated work

teams (functional and cross-functional)

u Integrated and synchronized

Focus On Customers & Performance

u Customer driven expectationsu Value and satisfaction for each customer


Process Flow and Management Teams

I

S

P O

CNatural Mgmt. Team

Suppliers

Inputs Processes Outputs

Customers

“Process Ownership & Measures”

WHAT?

We Can ControlWe Can Influence


WHAT?

To identify issues and prioritize significant processes in support of your team’s mission.

To reach a common understanding of process flow, develop appropriate measures, and establish boundaries of responsibility.

To utilize measures to understand process behavior with respect to all customer requirements.

To enhance process performance for customer satisfaction.

Process Improvement

Focus

Analyze

Improve

Define


WHAT?

Members Knowledge, skill

and ability

FacilitativeBehaviors

Meeting Management

DecisionMaking

Team Operating Procedures

ImprovementTools

Roles &Responsibilities

Team MgmtTools

Skills for Effective Teamwork


Additional Comments

Big Data and Business Analytics


“Big Data” – What’s Different?u 4 Vs – Volume, Velocity, Variety, Value

Æ Enabled by the Internet, 24/7 mobile access, and Cloud Computing

u Structured DataÆ What we traditionally analyze (utilized differently)Æ The databases, flat files, etc.

u Unstructured DataÆ Social media, free-form comments, email, Facebook,

Linkedin, etc.

u Binary DataÆ Audio, images, video, voice, geological, etc.

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Possible Strategies for Business Analytics1. Competing ON Analytics

Æ Analytics is THE key competitive advantageÆ Target Result – Sustainable competitive advantage

2. Competing WITH AnalyticsÆ Focus on one business processÆ Target result – Incremental profits

3. Improving With AnalyticsÆ Culture of analytics Æ Target result – Continuous improvement

4. Revenue Through AnalyticsÆ “Sell” data as a secondary productÆ Improved margins or market share

5. Persevering Through AnalyticsÆ Do what the competition doesÆ The price of entry

20


Continuous Improvement Management System

Process

Manag

emen

t Leadership

People System

s &

Structu

re

HOW?


Leaders must create A Compelling Vision

HOW?


u Crawl, then walk, then run

u Classroom awareness to on-the-job application

u Trained and develop Improvement Resources

Charter teams focused on “real” business challenges and opportunities

u Leadership alignment and commitment

Key “HOW’S”

u Plan and allocate resources

u Hold leaders and employees accountable


Keys to Successful Implementation

24

Vision Skills Motivation Resources Action Plan+ + + + = Change

Skills Motivation Resources Action Plan+ + + + = Confusion

Vision Motivation Resources Action Plan+ + + + = Anxiety

Vision Skills Resources Action Plan+ + + + = Resistance

Vision Skills Motivation Action Plan+ + + + = Frustration

Vision Skills Motivation Resources+ + + + = False Starts


Process

Manag

emen

t Leadership

People System

s &

Structu

re

Trends


Improvement System Trends

26

6 SigmaIncrease Predictability

Eliminate DefectsReduce Variation

Sustain Improvements

LeanIncrease Yield & Speed

Make it SimpleEliminate WasteIncrease T’put

Theory of Constraints

Maximize Throughput

Reveal InterdependencesIdentify the ConstraintFocus on the System


DMAIC Stage Summary

27

IMPROVE

To develop and implement

solutions for the validated

Root Causes and

demonstrate improved process

performance.

DEFINE

A clearly defined and supported

project with a specific Output Characteristic and Desired Performance Standards.

DEFINE MEASURE

MEASURE

To characterize and measure the current

performance of the critical

process

ANALYZE

To identify and validate the true Root Causes of

the current process

performance.

ANALYZE

IMPROVE

To develop and implement

solutions for the validated

Root Causes and


performance.

IMPROVE CONTROL

CONTROL

To ensure that improved process

performance is maintained over the long term, key learnings

are documented and shared, and

results are validated.


LEAN – Types and Levels of Waste

28

IMPROVETo develop and

implement solutions for the validated

Root Causes and


performance.

StrategicWastes

Policy Wastes

Mura Muri

Muda:

Defects Overproduction Waiting Non-used Skills

Transportation Inventory Motion Extra-Processing

Unevenness Overstressing

Look for DOWNTIME


LEAN – 8 Types of Waste

29

Look for DOWNTIME

Type Definition Examples / Impact

Defects Producing defective goods. System

outside desired boundaries

Re-work, Returns, Out of Spec., alarms / interlocks

occurring

Overproduction Producing components not intended for

immediate use or sale

-Stock exceeding shelf life, -Can cause other wastes

such as Excess Inventory

Waiting -Idle time between operations or during

operation

- Idle time that causes work to stop for

any reason

Missing material, unbalanced line, scheduling

mistakes, waiting for supplies, people, equipment,

signatures…etc

Non-Used Skills Not using or underutilizing employee

skills limits the corporation’s ability to

compete & excel

Wasteful administrative tasks, insufficient training,

Poor communication/teamwork, lack of cross

training/development

Excess

Transportation

Moving material more than necessary.

This is often caused by poor plant

design / layout

Moving WIP from place to place, in/out of storage.

Product sourcing inefficiencies if more than one

production location

Excess

Inventory

Storage of any supply (Raw Materials,

Work in Process, supplies, Product) in

excess of levels needed to meet

customer requirements

Production: Raw materials, product, intermediate,

process supplies, packaging

Work Process: Items not needed to complete your

work (office supplies, tools, documents, files)

Unnecessary

Motion

Any motion not necessary to the

successful completion of an operation.

- Back and forth movement in a workstation

- Searching for Parts/tools

- Inefficient work layout or process flow

Extra-

Processing

Doing more to the product than

necessary

Producing to specification > customer requirements

Producing full report when 1 page summary sufficient


Process

Manag

emen

t Leadership

People System

s &

Structu

re

SUMMARY


Common Keys to Successu “Best” implementation efforts:

Æ Leadership understanding, involvement, alignment, support, and commitment

Æ A Management System, not a set of tools

Æ A clear customer focus

Æ Heavy use of data

Æ Direct correlation with company Mission, Vision, Values

Æ Embracing employee involvement

Æ The Business Improvement System is part of the Company’s cultural

Æ Is management’s responsibility to implement, not a separate organization

31


Insights

u “Marginal” implementations efforts:

Æ Management is not involved (they call it delegation)

Æ Focus on a set of tools, not a Management System

Æ Poor linkage to the customer

Æ Poor linkage to management objectives

Æ Pockets of implementation / Poor employee involvement

Æ Efforts not integrated into the Culture

Æ Dogmatic clinging to a “buzzword”

32



Questions?

Process

Manag

emen

t Leadership

People System

s &

Structu

re

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