Practical Continuous Improvement

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Christian Bradford
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Continuing Education Hour For these hours to appear on your certificate, you must: Have your badge

1 Practical Continuous Improvement Practical Continuous Improvement David Moeller, Graybar Electric Marshall Stowers, Miller Electric Quinten Henry, Graybar Electric This session is eligible for 1 Continuing Education Hour For these hours to appear on your certificate, you must: Have your badge scanned at the door Attend 90% of this presentation Fill out the online evaluation for this session: 2 1

2 Intro NECA 1025 Continuous Improvement = Culture Session Agenda Continuous Improvement What You Need To Know Supply Chain Logistics For Contractors Practical Examples You Can Implement Q & A 3 INTRO 4 2

3 CONTINUOUS IMPROVEMENT = CULTURE Continuous Improvement = Culture What does this mean, exactly? 5 CONTINUOUS IMPROVEMENT = CULTURE How can I create a strong and balanced Continuous Improvement Culture in my Company? 6 3

CONTINUOUS IMPROVEMENT = CULTURE #1 Empower Your Employees 7 CONTINUOUS IMPROVEMENT =

work EXCELLENCE MISSION Total Excellence Across Miller Through trust and teamwork we

We will create a mindset firmly rooted in continuous improvement, collaboration and

4 CONTINUOUS IMPROVEMENT = CULTURE #1 Empower Your Employees 7 CONTINUOUS IMPROVEMENT = CULTURE #2 Align Your Company Behind a Purpose OPERATION T.E.A.M.work EXCELLENCE MISSION Total Excellence Across Miller Through trust and teamwork we will enable and empower our employees across the entire organization. We will create a mindset firmly rooted in continuous improvement, collaboration and business intelligence. We will establish strong alignment between our Vision, Mission, Strategy and Values to drive Excellence in all we do. 8 4

5 CONTINUOUS IMPROVEMENT = CULTURE #3 Develop a Structured Approach 9 CONTINUOUS IMPROVEMENT = CULTURE #4 Obtain Institutional Support 10 5

6 CONTINUOUS IMPROVEMENT WHAT YOU NEED TO KNOW Continuous Improvement What You Need to Know 11 CONTINUOUS IMPROVEMENT WHAT YOU NEED TO KNOW PDCA 12 6

CONTINUOUS IMPROVEMENT WHAT YOU NEED TO KNOW Foundation for Continuous Improvement DMAIC SOLUTION DEVELOPMENT (Team Approach) Identify and quantify the waste Define improvement projects Execute the

7 CONTINUOUS IMPROVEMENT WHAT YOU NEED TO KNOW Foundation for Continuous Improvement DMAIC SOLUTION DEVELOPMENT (Team Approach) Identify and quantify the waste Define improvement projects Execute the Projects with urgency Waste resulting from not understanding or meeting external customers expectations Waste resulting from external suppliers not understanding or meeting our expectations Waste resulting from internal hand-offs (function to function, department to department, level to level, etc.) CONTINUOUS IMPROVEMENT WHAT YOU NEED TO KNOW Waste The difference between the way things are now and the way they could or should be if everything were perfect. The Waste The Way Things Are Now The Way Things Could or Should Be 14 7

8 CONTINUOUS IMPROVEMENT WHAT YOU NEED TO KNOW 4 forms of waste that can be directly linked to the company s P&L: Four Forms of Waste Material obsolete product; supplier performance; damaged product; out-ofspec product Capital excess inventory, unscheduled equipment downtime, overdue receivables, under-utilized equipment, assets not needed but still here, billing errors, lack of technology in supply chain Time excess lead and cycle times, delays in response time, wait times, waste of people s time doing rework and other non value-added work, work that produced low payback Lost Sales/Productivity short shipments, late delivery, picking errors, lost customers, delays in new product launch, lack of right alliances Don t stop at the visible waste the hidden waste is often even larger! 15 CONTINUOUS IMPROVEMENT WHAT YOU NEED TO KNOW Waste is Like an Iceberg Examples What You See Scrap Delivery problems Excess inventory Customer dissatisfaction Downtime Long cycle time What You Don t See This is usually bigger and more dangerous than what you see Examples What You Don t See Scrap is bigger than you think Inventory problem is bigger Customer satisfaction problem is bigger Excess capital employed Lost gross margin $ Brand / Market presence Excess service time & cost 16 8

9 CONTINUOUS IMPROVEMENT WHAT YOU NEED TO KNOW Where Does The Waste Come From? 17 CONTINUOUS IMPROVEMENT WHAT YOU NEED TO KNOW Categories of Work Necessary Work: Value Added Work - work that increases the worth of a product or service to an external customer, that is, adds value from the external customer's viewpoint. Other Necessary Work - work which consists of tasks which need to be performed to keep the organization operating but has no value to the external customer, i.e. expense reports, traveling, filing tax returns. Unnecessary Work: Rework - work required only because something was not done properly the first time. Rework often amounts to 30% - 50% of total work and is one of the major causes of waste. Other Unnecessary Work - all tasks which do not add value and are not necessary for the operation of the organization (reports no one needs and/or reads, etc.) Not Working: (but being paid) Authorized - holidays, vacations, illness, personal time off, breaks Unauthorized - waiting time, idle time, down time, delay time, etc. 18 9