1

Two Views of Ops Excellence

Lean Maturity Model & Ops Excellence Support (What are we trying to achieve)

Operations Cycle & Ops Excellence Support (Focusing beyond task execution)

2

Lean Maturity Model & Ops Excellence Tools

3

Lean “Maturity Model” and Management Focus

Consistency in Execution

Monitoring Performance

Continuous Improvement

Pursuit of Excellence

Mat

urity

Lev

el

•  Define and document processes and procedures (including controls) •  Ensure accountability exists for proper execution and results •  Set team up for success (training & scheduling) •  Promote / reward timely issue escalation

•  Understand what performance measures are required to meet customer needs / expectation

•  Measure success against process milestones and deliverables

•  Understand process strengths and weaknesses

•  Believe that you can and must continually improve process execution

•  Encourage initiative, idea generation and implementation at all levels

•  Reward skills / actions that prevent issues from happening •  Move from managing to coaching

•  Look for ways to do better in everything you do •  Master operations tools and concepts •  Employ a systemic view to problem solving and

improvement

Acc

eler

ator

s S

tand

ardi

zatio

n &

Bes

t Pra

ctic

es

4

By taking a building block approach to the maturity levels, managers can get the most out of Ops Excellence tools

Level 1: Consistency & Accountability

Level 2: Monitoring

Performance

Level 3: Continuous

Improvement

Level 4: Pursuit of Excellence

Procedure Documentation)

Controls Definition

Huddles / Whiteboards

Lean Training

Scheduling Tools

Process Capability Matrix

Operational Metrics & Dashboards

Incident Management

Capacity Planning

Kaizen Events

Idea Management

Straight through Processing

Process Modeling

Scenario Planning

Primary Focus

Enhance

This is not to say you need to wait until you achieve a “higher” maturity level to use specific tools, however you will greatly benefit by having a solid foundation in place.

5

By focusing first on the basics – procedures and process controls - you can quickly expand your operational insight and effectiveness

Manager review tasks incorporated in procedure

Provides

•  Control Environment •  Foundation for accountability

Enab

les

Enab

les

Review Job Aids/ Checklists

• Guide for new managers • Reminder of

enhancements / changes • Focus on standardization • Evidence of completion Pr

ovid

es

Review Capture

Prov

ides

• Metrics (1st Pass Accuracy) •  Improvement Opportunities • Manager / Employee

Engagement • Staff Training Needs • Staff Assessment

6

Operations Cycle & Ops Excellence Support

7

Operations Lifecycle

Communicate

Plan

As a manager, what percentage of your time is focused in each of these areas?

8

Procedures

Ops Execution: Ensuring high quality products are delivered in a timely and efficient manner.

Communicate

Plan

Control Definition

Task Timeliness Review Capture

Daily Dashboards

Team 1

Team 2

Team 3

Team 4

Team 5

Team 6

Team 7

Team 1

Team 1

Team 2

Team 3

Team 4

Team 5

Team 6

Team 7

4

3

Team 1

Team 2

Team 3

Team 4

Team 5

Team 6

Team 7

Team 1

Team 1

Team 2

Team 3

Team 4

Team 5

Team 6

Team 7

4

3

9

Reflect: Assessing how we did and determining what we can do better the next time

Communicate

Plan

Metrics & Reporting

Idea Management

Incident Management

Lean Workstreams Straight through Processing

FMEA Process: Server Patching Prepared by: John LeanSub-process: Schedule Work Failure Modes & Effects Analysis Date: Sep 10, 2008

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

# Process Task Potential Failure Mode Potential Failure Effect Seve

rity

Possible Failure Cause Occ

urre

nce

Current Controls Det

ectio

n

RPN Recommended Action

1 Prepares / opens PACE ticket Release Engineer enters info incorrectly

Rework required on PACE ticket leading to delays

3 Inexperienced user 7 QA process 5 105

2 ID’s servers and approvals Identiifies incorrect approvals Rework required on PACE ticket leading to delays

3 Outdated approvals list in system

3 Manual process provides notification of change in approval personnel

7 63

3 Prepares / opens PACE ticket Release Engineer enters info incorrectly

Rework required on PACE ticket leading to delays

3 Poor training 4 Training material review / validation

4 48

4 Submits ticket Release Engineer fails to properly close out of Submit screen

Unable to process next PACE ticket

5 System will not allow for multiple screens open

5 None; system will automatically stop you from proceeeding

1 25

5 Prepares / opens PACE ticket PACE system down (unplanned)

Build-up of PACE ticket backlog leading to major delays

7 Application failure 3 Automated monitoring 1 21

6 Submits ticket Release Engineer fails to properly close out of Submit screen

No PACE ticket entered into system and request not processed

4 Screen layout confusing 1 User testing of all screens 4 16

789101112131415

RPN Distribution

0

50

100

150

200

250

300

350

Risks ordered from highest to lowest

RPN

20% of the adverse eventscontain 48% of the total risk

20% of failure modes contain 48% of the total risk

Grand Total

2

79

339

164 202 54L (1-3) M (4-6) H (7-10) 345 (83%)

71 (17%)4 (1%)

420 Total

Severity vs. Frequency of Occurrence

Seve

rity

H (7-10) 2

L (1-3) 106

0 0

M (4-6) 56 19 4

183 50

Frequency

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Plan: Ensuring we wisely use our most valuable resource – our people.

Communicate

Plan

Scheduling Scheduling

Capacity Planning

Process Capabilities Matrix

Process Modeling

Scenario Planning

0

500

1000

1500

2000

2500

Jan-11 Feb - 11 Mar - 11 Apr - 11 May - 11 Jun - 11 July - 11 Aug -2010 Sep - 2010 Oct - 2010 Nov - 2010 Dec - 2010

Monthly N-MFPCentralized Tasks (Illustrative)PRO/SAI Monthly Reports Quarterly Reports Annuals & Semi Annual Reports

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Communication: Keeping the teams on the same page and providing a forum to reflect and plan

Communicate

Plan

Huddles & Huddle Boards Huddle Evaluations

Communications Strategy

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Training: Providing the framework and building blocks for ops excellence concepts

Communicate

Plan

•  Mindsets & Behaviors •  Lean Awareness •  Capacity Planning •  Customer Service •  Operations Discipline •  Project Management •  Critical Thinking

Training & Mentoring