Sustainable Enterprise Transformation through Strategy, Simplicity and Execution Presented by: Martin Nazareth, OpEx Solutions, Inc.

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1 Martin Nazareth President, OpEx Solutions November 2015 Sustainable Enterprise Transformation through Strategy, Simplicity and Execution Presented by: Martin Nazareth, OpEx Solutions, Inc.

2 OpEx Solutions, Inc. Topics Introduction OpEx Solutions Overview Strategy for Rapid Benefits Simple, Effective, Efficient and Pragmatic Solutions Execution, Feedback & Continuous Improvement Summary & Discussion

3 OpEx Solutions Overview An organization to help identify strategic areas for improvement and provide effective hi-value, low-cost solutions to drive significant systemwide productivity improvement through the use of operational excellence tools and systems in most manufacturing and service industries and to form consortiums to provide a forum for sharing knowledge and experience.

4 OpEx Solutions, Inc. Comparison of 2 OPEX Journeys Copy and paste tools & practices Change strategy people, tools, Cost, quality, delivery issues Measure progress of tool application Hire consultants, people from outside, and invest in equipment Process? People? Equipment? Bottom line? Standardize, sustain and share Continuously identify gaps and fix apply lessons learned Engage & empower all levels Identify most critical operation/equipment Increased market opportunities Passion for excellence Copying is like trying to win the race without running it! John Gay, DuPont

5 OpEx Solutions, Inc. Toyota House of Lean GOALS: Best Quality Lowest Cost Shortest Lead Time KEY IS: Thorough Elimination of Waste JUST-IN-TIME Continuous Flow Pull System Takt Time Leveling ( Heijunka ) Standardized Work Stability (e.g., Equipment Reliability, Stable Processes, Quality Materials) PEOPLE AUTONOMATION ( Jidoka ) Machines Stop and Notify of Abnormalities Separate Man s Work & Machine s Work Continuous Improvement ( Kaizen )

6 Topics Introduction OpEx Solutions Overview Strategy for Rapid Benefits Simple, Effective, Efficient and Pragmatic Solutions Execution, Feedback & Continuous Improvement Summary & Discussion

7 Strategic Analysis BACKGROUND or BUSINESS CASE TARGET CONDITION (PROPOSAL) Key business gaps Significant issues CURRENT CONDITION Main causes for the gaps Root causes for the issues ACTION (PLAN) MEASURES

8 Demand Identifying the Critical Operation Demand Capacity A B C D E A B C D E Flow

9 Identifying the Critical Operation (Cont d.) Supply Demand P C S

10 Topics Introduction OpEx Solutions Overview Strategy for Rapid Benefits Simple, Effective, Efficient and Pragmatic Solutions Execution, Feedback & Continuous Improvement Summary & Discussion

11 Strategic Analysis BACKGROUND or BUSINESS CASE Key business gaps Significant issues TARGET CONDITION (PROPOSAL) Solution End in mind Hypothesis of impact to business case by overcoming the root cause CURRENT CONDITION ACTION (PLAN) Main causes for the gaps Root causes for the issues MEASURES

12 Change vs. Continuous Improvement CHANGE Continuous Improvement DO 6 STANDARDIZE PLAN 5 1 SDCA 8 ACT 4 PDCA 2 DO Introduction 7 CHECK Integration 3 CHECK Experimentation

13 Complexity/Cost/Time Quick Wins Using Hi-Value/Low-Cost Strategy Hi Reevaluate Long Term Immediate & Ongoing Daily Management Immediate Reduction of Losses 4 Ms Lo Lo Potential Value Hi

14 Topics Introduction OpEx Solutions Overview Strategy for Rapid Benefits Simple, Effective, Efficient and Pragmatic Solutions Execution, Feedback & Continuous Improvement Summary & Discussion

15 Strategic Analysis BACKGROUND or BUSINESS CASE Key business gaps Significant issues TARGET CONDITION (PROPOSAL) Solution End in mind Hypothesis of impact to business case by overcoming the root cause CURRENT CONDITION Main causes for the gaps Root causes for the issues ACTION (PLAN) Immediate Short Term Long Term MEASURES Execution progress Leading indicators Lagging indicators

16 Action Items ACTION ITEMS DRIVE EXECUTION!!! Three categories enable strategic implementation with built-in testing Immediate Short term Long term Ensure reviews on a weekly basis until closure or exit

17 Sustain Gains & Continuous Improvement Only completed projects count, not the ones started Ken McClymonds, OpEx Solutions

18 Continuous Improvement PROPOSAL A-3 Theme: Date: Prepared By: Background: Need(s) Business Challenge Gap Proposal Objective Information required to understand the complete situation Why this is important Current Condition: Describe What is happening now? How does the process work today? Process and material flow Information flow People s work design For each step: Identify the causes that relate to the business case and that need to be addressed Show the relevant current data Target Condition (Proposal): This is the proposal, i.e., the plan or standard that needs to be established to close the Business Case Describe what you want to change, add and/or delete Solve business challenge and design using rules-inuse It is a hypothesis presumed to solve the issues found in the current condition Reasoning: Describe the logic for this proposal: why is this is an effective and efficient solution? Actions (Plan): What: projects / changes that need to be implemented Where: location they will be implemented Who: specific accountability When: Timeline for completion Measures: To monitor progress and results. Test of the hypothesis and basis for additional learning PROPOSAL A-3 Theme: Date: Prepared By: Analyze using Rules-in-Use PROPOSAL A-3 Theme: Date: Prepared By: Background: Need(s) Business Challenge Gap Proposal Objective Information required to understand the complete situation Why this is important Current Condition: Describe What is happening now? How does the process work today? Process and material flow Information flow People s work design For each step: Identify the causes that relate to the business case and that need to be addressed Show the relevant current data Analyze using Rules-in-Use Target Condition (Proposal): This is the proposal, i.e., the plan or standard that needs to be established to close the Business Case Describe what you want to change, add and/or delete Solve business challenge and design using rules-inuse It is a hypothesis presumed to solve the issues found in the current condition Reasoning: Describe the logic for this proposal: why is this is an effective and efficient solution? Actions (Plan): What: projects / changes that need to be implemented Where: location they will be implemented Who: specific accountability When: Timeline for completion Measures: To monitor progress and results. Test of the hypothesis and basis for additional learning Background: Need(s) Business Challenge Gap Proposal Objective Information required to understand the complete situation Why this is important Current Condition: Describe What is happening now? How does the process work today? Process and material flow Information flow People s work design For each step: Identify the causes that relate to the business case and that need to be addressed Show the relevant current data Target Condition (Proposal): This is the proposal, i.e., the plan or standard that needs to be established to close the Business Case Describe what you want to change, add and/or delete Solve business challenge and design using rules-inuse It is a hypothesis presumed to solve the issues found in the current condition Reasoning: Describe the logic for this proposal: why is this is an effective and efficient solution? Actions (Plan): What: projects / changes that need to be implemented Where: location they will be implemented Who: specific accountability When: Timeline for completion Measures: To monitor progress and results. Test of the hypothesis and basis for additional learning Analyze using Rules-in-Use Time

19 Topics Introduction OpEx Solutions Overview Strategy for Rapid Benefits Simple, Effective, Efficient and Pragmatic Solutions Execution, Feedback & Continuous Improvement Summary & Discussion

20 OpEx Solutions Journey

21 The Changing Face of Quality From Large disruptive programs Lose our strengths Constant change not sustainable Blame people & replace them Low value, hi-cost Rapid tool implementation Change with the tool in mind To Strategic focus (VoB) Customer focus (VoC) Core process (VOP) Simple solutions involving people Hi-value, low-cost Rapid continuous execution Improvement with the end in mind The changing face of quality is imminent, driven by industry needing a shift from tooldriven approaches to the voice of the organization s core processes. Martin Nazareth

22 Presenter: Martin Nazareth Sustainable Enterprise Transformation Through Strategy, Simplicity and Execution Thanks for Attending Good Luck!!