CreatingaContinuousImprovementCulture

2013TheKarenMartinGroup,Inc.
www.ksmartin.com 1
CreatingaContinuous
ImprovementCulture
Webinar
August13,2013
Welcome!
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CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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Coach/Facilitator/Consultant/Trainer:
LeadLeantransformations&developpeople
acrossallindustries.
Teacher:UniversityofCalifornia,SanDiego
Author&Speaker:
KarenMartin,President
TheKarenMartinGroup,Inc.
www.ksmartin.com
3
October2013 ShingoPrize
winner!
2013TheKaren Martin Group,Inc. 4
UpcomingWebinars
HowOutstandingisYourOrganization?:AnAssessment
Tuesday,September17,2013 11:00am12:15pm
https://www2.gotomeeting.com/register/923117162
ValueStreamMapping:VisualizingWorkFlowand
AligningPeopleforOrganizationalTransformation
Tuesday,October8,2013 11:00am12:15pmPT
https://www2.gotomeeting.com/register/151856458
ImprovementFacilitation&Coaching:AnOpenForum
Tuesday,October29,2013 11:00am12:15pmPT
https://www2.gotomeeting.com/register/229489922
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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Afterthewebinar
Allrecordingsareavailableon:
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Thematerialsareavailableon
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KeyTopics
The4conditionsyouneedtocreateto
buildacontinuousimprovementculture.
Whatcontinuousimprovementlooksand
feelslike.
Howtosellleadershiponthemanagement
andleadershipbehaviorsandskill
developmentneedsthatleadtocontinuous
improvement.
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 7
Kaizen
Kai=Change Zen=Good
ContinuousImprovement:
AWayofLife
2013TheKaren Martin Group,Inc. 8
Improvementneeds
tobepartof
doingthework.
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 9
ContinuousImprovementClassics
1982 1982 1986
RecentDailyKaizenBooks
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 11
TheToyotaWay2001
RespectforPeople
Respect Werespectothers,makeeveryefforttounderstandeachother,take
responsibility,andbuildmutualtrust.
Teamwork Westimulateprofessionalgrowth,sharetheopportunitiesof
development,andmaximizeindividualandteamperformance.
ContinuousImprovement
Challenge Weformalongtermvisionmeetingchallengeswithcourageand
creativitytorealizeourdream.
Kaizen Weimproveourbusinessoperationscontinuously,alwaysdrivingfor
innovationandevolution.
Genchi Genbutsu Webelieveingoingtothesourcetofindthefactstomakecorrect
decisions,buildconsensus,andachievegoalsatourbestspeed.
2013TheKaren Martin Group,Inc. 12
Continuous
Improvement:
TheRelentless
PursuitofPerfection
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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NewIdeasGenerated,Tested,Refined,and
ImplementedbyEveryone,Everyday,Everywhere
2013TheKaren Martin Group,Inc. 14
TrueContinuousImprovement
CHECK
CHECK
CHECK
ACT
ACT
ACT
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
www.ksmartin.com 8
2013TheKaren Martin Group,Inc. 15
Whatdoes
ContinuousImprovement
lookandfeellike?
2013TheKaren Martin Group,Inc. 16
MeetMenloInnovations
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 17
Onemillionideasayear.
2013TheKaren Martin Group,Inc. 18
Whatsittaketo
createatrue
C.I.culture?
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 19
CreatingaC.I.Culture:
Requirements
Will
Skill
Authority
Guidance
2013TheKaren Martin Group,Inc. 20
Will
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 21
Youhaveto
wantit.
2013TheKaren Martin Group,Inc. 22
Youhavetodevelop
anintrinsicbeliefthat
goodenoughneveris.
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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Weneedtopasstheimprovementbaton
fromtheelitefew
tothecommonmany
23
RespectforPeople:Develop&Engage
Thepeoplewhodotheworkaretheexperts.
24
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 25
Fosteranenvironmentofcuriosity
Why?
Whynot?
Whatif?
2013TheKaren Martin Group,Inc. 26
Skill
=Development
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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RequisiteKnowledge&Skills
Valueaddingvs.nonvalueadding
Threeconditionstoeliminate:
Mura unevenness
Muri overburden
Muda waste
Eighttypesofwaste
PDSA/PDCA(PlanDoStudyAdjustorCheckAct)
Includingrootcauseanalysis
Processmetrics
Processtime
Leadtime
%Complete&accurate
Processmapping&processdocumentation
2013TheKaren Martin Group,Inc. 28
DetailedSteps
1.Defineandbreakdownthe problem.
2.Graspthecurrentcondition.
3.Setatargetcondition.
4.Conductrootcause&gapanalysis.
5.Identifypotentialcountermeasures.
6.Develop&testcountermeasure(s)
7.Refineandfinalizecountermeasure(s).
8.Implementcountermeasure(s).
Study
Evaluate
Results
9.Measureprocessperformance.
10.Refine,standardize,&stabilizetheprocess.
11.Monitorprocessperformance.
12.Reflect&sharelearning.
Adjust
Do
ClarifyingthePDSACycle
Plan
Develop
Hypothesis
Conduct
Experiment
Refine
Standardize
Stabilize
Phase
Continuous
Improvement
New
Problem
5080%
ofthe
total
time
Check
Act
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 29
RootCauseAnalysis:4KeyTools
Cause Cause- -and and- -Effect Diagram Effect Diagram
Machine Measurement Environment
People Material / Info Method
Budgets
Submi tted Late
Lack of experience
Time avail abil ity
No sense of i mport
No stnd spread sheet
Email vs. FedEx
No standard work
Input recd late
Forecast in other system
Manual vs. PC
System avail.
No mil estones
$ vs. units
Weather del ays
Dispersed sales force
Changi ng schedule
Machine Measurement Environment
People Material / Info Method
Budgets
Submi tted Late
Lack of experience
Time avail abil ity
No sense of i mport
No stnd spread sheet
Email vs. FedEx
No standard work
Input recd late
Forecast in other system
Manual vs. PC
System avail.
No mil estones
$ vs. units
Weather del ays
Dispersed sales force
Changi ng schedule
5Whys
Why?
Why?
Why?
Why?
Why?
Par et o Char t
Cr ed i t Appl i c a t i on Del ay s
2 9 0 9
6 2 7
5 6 1
2 4 2
1 8 0
2 4 9 3
4 1 %
7 7 %
8 6 %
1 0 0 %
9 7 %
9 4 %
0
500
1000
1500
2000
2500
3000
3500
N o Si g n a t u r e I n s u f f i c i e n t
B a n k I n f o
N o p r i o r
a d d r e s s
C u r r e n t
C u s t o me r
N o C r e d i t
H i s t o r y
Ot h e r
Reason f or Del ay
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Check Sheets Quantify Occurrences
|
Equipment failure
||| ||||| |||||
Changing customer
requirements w/ no
adjustment to expected
delivery
||||| |||||
Order entryerror
|||
Staffing/absenteeism
|||||
Quality issue requiring
rework
|| |||||
Material shortage
Tally Reason
|
Equipment failure
||| ||||| |||||
Changing customer
requirements w/ no
adjustment to expected
delivery
||||| |||||
Order entryerror
|||
Staffing/absenteeism
|||||
Quality issue requiring
rework
|| |||||
Material shortage
Tally Reason
2013TheKaren Martin Group,Inc. 30
Empowerment
Authority
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
www.ksmartin.com 16
Work:DegreesofGranularity
Value
Stream
Process Process Process
Step Step Step
31
Micro
Perspective
Identifythe
tacticalhow
Heavyfrontline
involvement
MetricsBased
ProcessMapping
Macro
Perspective
Definestrategic
direction(what)
Heavyleadership
involvement
ValueStream
Mapping
Youmayneed
todrawthem
out.
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
www.ksmartin.com 17
2013TheKaren Martin Group,Inc. 33
Guidance:
Boundaries
Learning&development
2013TheKaren Martin Group,Inc. 34
Giveeveryteammember
FreedomwithBoundaries
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 35
LooseningtheReins
36
C.I.Essentials:
Supervisors&Managersmustbecomeproficient
ProcessManagers&ImprovementCoaches
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
www.ksmartin.com 19
2013TheKaren Martin Group,Inc. 37
37
Howareyouperforming?
Gray Highestindustryqualityscores
Purple Medianindustryqualityscores
Blue Ourqualityscores
2013TheKaren Martin Group,Inc. 38
DailyKaizenvs.
BreakthroughKaizen
(Kaikaku)
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 39
1.Increasesales 5%.
3.Achieve10%profit.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario
COM
Direct
CDs /
AMs
PD
Rec
PD
Mgmt
BMD SWS
2
3,500 uni tss ol dby 12/31/2013throughal l channel s
(approx. $700K)
X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3
11 Devel op& del i ver trai ni ngtotop50 Deal ers X X X X X X Bob Rex/Ti m 3 3 3
21 Revi sedcours emateri al s by 6/30/2013 X X X Bob Jos hR? 2 3 3 2 2
5
Educati on: 1 s chool di stri ctspec'd/underperformi ng
COMdi stri butor (25)by 12/31 val uedat mi n$35K each
X X X X X X X X X X X X Howard Mi chael S 1 3 2 3 3
8
10newdeal ersonboard(net)($500K per deal er thi s
year)
X X X X X X X X X X X X Howard Mi keB 2 3
9
5 newdi s tri butorsbri ngi ng$200K annual rev (& 5
termi nated)
X X X X X X X X X X X X Howard Howard 1 1 1 2 3
17 10projectss pec'dby 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3
29 20by yearend X X X X X X X X X X X X Howard MarkH 2 3 3 3
32 TBD X X X Howard Howard
33 TBD X X X X X X X X X Howard Howard
10
Useful reporti ngandmetri csareestabl i shedandi n
pl ace
X X Ji m Randal l 3 1 1 1 1 1 1
30 TBD X X X X X Ji m Josh 3
31 TBD X X X X X X Ji m Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1
25 TBD Ji m Shannon 3 3 1 1 1 1 1
26 System7.0'si npl ace X X X Ji m Randal l 3 2 1 2 1
15
100%accuratepayrol l ;100%management sati sfacti on
at Apri l mgmt. meeti ng
X X X Jos h Phyl l i s 1 3
20
I nternet tas kl i sti s si mpl i fi edandstreaml i nedfor
PDsthenpl ani s rol l edouttoPDs
X X X X Mi chael M Mi chael M 2 3 2 3
22
Desi gnCal cul ator i supdatedsuccessful l y androl l ed
out
X X X Neal l MattD 3 1 1 3 2 2 3
24 Competi ti veAnal ys i scompl eteanddi s tri butedfor use X X X Neal l Dana 2 3 3 3 3 3 3
1 Desi gnchangedtosol vedel ami ss uel ongterm X X X X X Susan Davi dR 3 2 3
12
30partss ourcedi nU.S.; compl etedpl anfor managi ng
Chi nas ourcedparts
X X X X X X Sus an Shannon 3 3 2 2
13
Warehous el ai dout;kanbanrevi sed; Syspro
i mpl emented
X X X Sus an Shannon 3
14 Lay outcompl ete; equi pmenti nstal l ed X X X Sus an Davi dR 3 3
X= Planned
2013Priorities
2013 Goals&Objectives
4.Improvemorale(metric TBD).
2.Achieve50%grossmargin. Created: 011413
Revised:
Level of Effort/InvolvementRequired
Priority Goal orMeasurableObjective Exec Owner
Plan reviewdates:
Tactical
Owner
= Actual
<Company Name>
C
o
n
t
e
n
t
r
e
m
o
v
e
d

f
o
r

c
o
n
f
i
d
e
n
t
i
a
l
i
t
y

TieImprovementto
AnnualStrategyDeploymentPlans
TieImprovementtoFutureState
ValueStreamMaps
Referring
Physician
%C&A =85 %

Send
Reports
(Imaging)
Cycle Time =3 mins.
%C&A =90 %
6
Hospital

Schedule appt
Pre-register
Cycle Time =11 mins.
Lead Time =45 mins.
%C&A =98 %
6
CT=Cycle Time
LT=Lead Time
%C&A=%Complete &Accurate

0.0833 hrs.
1 mins.
0.583 hrs.
10 mins.
0.333 hrs.
10 mins.
0.0833 hrs.
2 mins.
2 hrs.
15 mins.
7 hrs.
1 mins.
0.0333 hrs.
1 mins.
0.5 hrs.
3 mins.
LT =11.3 hrs.
CT =43 mins.
CT/LT Ratio =6.32%
Lead Time =45 mins. Lead Time =15 days
Prep
Patient
(Tech)
Cycle Time =10 mins.
%C&A =100 %
2
Check-in
Patient
(Imaging)
Cycle Time =1 mins.
%C&A =98 %
3
Complete
Exam
(Tech)
Cycle Time =10 mins.
%C&A =90 %
2
Transmit
Images
(Tech)
Cycle Time =2 mins.
%C&A =100 %
2
Read/Dictate
Exam
(Radiologist)
Cycle Time =15 mins.
%C&A =95 %
2

Review
Draft/Sign
(Radiologist)
Cycle Time =1 mins.
%C&A =95 %
2
Print
Reports
(Imaging)
Cycle Time =1 mins.
%C&A =99 %
2
20 mins. 5 mins. 120 mins. 420 mins. 2 mins. 30 mins. 35 mins.
E Pay

Excel

Symposium

Internet

Waiting Room
Management
System

Fax Order
Solutions

PACS

5 mins.
Set-up
Reduction

Remove
Check in
and Reduce
SystemAccess

Work
Balancing

Standard
Work

Pull System
(Supplies
Kanban)

Visual
Workplace

Voice
Recognition

Batch
Reductions

5S

Co-locate

Standard
Work

Work
Balance

Continuous
Flow

Value Stream
Alignment

Auto Fax 80%
Us Mail 15%
MDMailbox 5%
Rolled First Pass
yield =40%

Rework Loop
via Fax 10%of
the time
Customer Demand:
15 patients perDay
(Takt Time1920 seconds)
8 hours per day
1
2
3
4
5 6 7 8 9 10 11

Risk
Reduction
(J oint
Commision)
Meditech


CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
www.ksmartin.com 21
TieImprovementtoA3s
41
2013TheKaren Martin Group,Inc. 42
AttainingMastery
FromTheOutstandingOrganization, p.115
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
www.ksmartin.com 22
2013TheKaren Martin Group,Inc. 43
SkillDevelopmentProgression*
Unconscious
Incompetence
Conscious
Incompetence
Conscious
Competence
*CommonlyattributedtoNoelBurch,
GordonTrainingInternational
Start Goal
Unconscious
Competence
C
o
n
s
c
i
o
u
s
n
e
s
s
Competence
1
4
3 2
2013TheKaren Martin Group,Inc. 44
Whatyoucandoimmediatelyno
matterwhereyousit
1. Makesureyouknowandarehighlyskilledin
improvementbasics.
2. Beginaskingwhy,whynot?andwhatif?in
everyencounter/meeting.
3. Establishanimprovementsafezoneinyoursphere
ofinfluence;quantifythenumberofideas
implemented.
4. Coach,coach,coachandthencoachsomemore.
5. Quantifyresultswhenpossibleandbroadcast,
broadcast,broadcast.
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
www.ksmartin.com 23
2013TheKaren Martin Group,Inc. 45
UpcomingWebinars
HowOutstandingisYourOrganization?:AnAssessment
Tuesday,September17,2013 11:00am12:15pm
https://www2.gotomeeting.com/register/923117162
ValueStreamMapping:VisualizingWorkFlowand
AligningPeopleforOrganizationalTransformation
Tuesday,October8,2013 11:00am12:15pmPT
https://www2.gotomeeting.com/register/151856458
ImprovementFacilitation&Coaching:AnOpenForum
Tuesday,October29,2013 11:00am12:15pmPT
https://www2.gotomeeting.com/register/229489922
2013TheKaren Martin Group,Inc. 46
KarenMartin,President
7770RegentsRoad#635
SanDiego,CA92122
858.677.6799
ksm@ksmartin.com
ForFurtherQuestions
Blog&newsletter:www.ksmartin.com/subscribe
CreatingaContinuousImprovementCulture
2013TheKarenMartinGroup,Inc.
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2013TheKaren Martin Group,Inc. 47
YourQuestions
1. Arethereuniquechallengesthatexistwithestablishing
CIculturesinunionworkforces?
2. CompaniesIworkedforpushReturnonInvestmentas
themetricforgaugingCIactivitiesandculture
effectiveness.Isthisthebestmetric,andarethere
othersthatweshouldbelookingat?
3. Howlongdoesittaketochangea125yearoldculture?
4. Howdoyourecommendbroadcastingsuccessesand
makingthemrelevant?
5. Ourdivisionpresidentwantstoimplementalongterm
vision,whereascorporateseeksquarterlyresults.How
doIinteractw/president&directreportstoensure
buyin?
6. Whatarethingsthatamiddlemanagercantododrive
Leanculture?