APPROACH to Operational Excellence

Transcription

1 A PRINCIPLE-CENTERED APPROACH to Operational Excellence

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3 1988 Honorary Doctorate, Utah State University January 8, 1909 November 14,

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6 Understanding of the functional use of tools and techniques. This enables using specific methods to create point solutions. A system is developed by having comprehensive knowledge of where to apply the tools and integrating that use across multiple areas/functions. Understanding the deeper reasoning, principles, for creating the systems to create value to the customer. This drives the concept of do you know why you are doing it this way? Questioning what is the need?

7 Rate of Improvement YEARS

8 Pareto Principle Scatter Plots Control Charts Flow Charts Ishikawa Diagram Histogram or Bar Graph Check Lists Check Sheets Affinity Diagram Cause & Effect Diagram Control Charts Design of Experiment Risk Assessment/ FMEA Process Map SIPOC Diagram STATISTIC TEXTBOOKS! Current Reality Cloud Injected Cloud Future Reality Tree Negative Branch Reservation Pre-Requisite Tree Transition Tree 5S Value Stream Mapping Kanban Cards Kaizen Events Error Proofing Quick Change Over (SMED) Root Cause Analysis

9 Rate of Improvement Transformational Acceleration

10 guiding principles PRINCIPLES ARE TRUTHS THAT ARE 1.) UNIVERSAL Dr. Stephen R. Covey 2.) TIMELESS 3.) SELF-EVIDENT Broad philosophy that guides an organization throughout its life in all circumstances, irrespective of changes in its goals, strategies, type of work, or the top management. A clear, constructive purpose and compelling ethicalprinciples evoked from and shared by allparticipants should be the essence of everyrelationship in every institution Dee Hock, Founder & PastCEO of VISA, The Art of Chaordic Leadership REFERENCE:

11 COMMON FOCUS RECOMMENDED FOCUS SYSTEMS T S PRINCIPLES TOOLS SYSTEMS T P SYSTEMS S P TOOLS

12 [challenge] [seek perfection] [direct observation] 1. Always be faithful to your duties, thereby contributing to the Company and to the overall good. 2. Always be studious and creative, striving to stay ahead of the times 3. Always be practical and avoid frivolousness. PRINCIPLES October 30th, 1935 [respect] [humility] 4. Always strive to build a homelike atmosphere at work that is warm and friendly. 5. Always have respect for God, and remember to be grateful at all times. REFERENCE:

13 Key principles of Lean Thinking : VALUE -what customers are willing to pay for VALUE STREAM -the steps that deliver value FLOW -organizing the Value Stream to be continuous PULL triggering flow from customer needs PERFECTION -continuous improvement forever (culture) REFERENCE: LEAN THINKING, Womack and Jones, 1996

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15 Guiding Principles of Operational Excellence Results Create Value for the Customer Alignment Create Constancy of Purpose Think Systemically Process People Focus on Process Embrace Scientific Thinking Flow & Pull Value Assure Quality at the Source Seek Perfection Lead with Humility Respect every Individual REFERENCE: The Shingo Prize Model

16 VALUES Vs. PRINCIPLES TEAM WORK LOYALITY PRECISION INNOVATIVE VALUES They were your height, but thinner and better looking. You haven t caught them yet, so obviously they re smarter.

17 TEAM WORK LOYALITY PRECISION INNOVATIVE VALUES PRINCIPLES (RESPECT EVERY INDIVIDUAL)

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19 Create value for customer s Customer Focus Continuous Improvement Seek Perfectio n Safety is First Our Core Values Challenge Empowered & Involved Workforce Values are the outputs. They are often stated as the results of following principles Open Communication Respect for the Individual

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21 Our Principles & Values guide thinking, which in turn guides behaviours, which define the culture

22 PRINCIPLE FOCUS (LEADERS) SYSTEM FOCUS (MANAGERS) SYSTEMS IDEAL BEHAVIOR MISSION/VISION/CORE VALUES v v v Drive Behavior P P TOOL FOCUS (EMPLOYEES) TOOLS Enable & Support

23 Without constant attention, the principles will fade. The principles have to be ingrained, it must be the way one thinks. - Taiichi Ohno

24 QUESTIONS?