Professional Documents
Culture Documents
Operational Excellence
Harsh Upadhyay
engineerharsh@yahoo.co.in
Operational Excellence
Strategic weapons for operation excellence’s are (but not limited to…)
• Lean
• Six Sigma
• Lean Six Sigma
Reference: http://en.wikipedia.org/wiki/Operational_excellence
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Strategic Weapon For Operational Excellence
What is Lean?
Lean is a set of principles whose fundamental goal is to eliminate waste and
maximizing flow.
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Continuous Improvement-
Improvement- The Key to Excellence in Execution
Inadequate or insufficient metrics which are not aligned with customer value
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Strategies For Implementation of Operational Excellence
Focus on values
Customer value and shareholder value are not created by the same
activities. As a rule, customers do not care what it costs to deliver a
product as long as that cost is not passed along however shareholders care
a lot about the costs for which that product is delivered
For getting higher impact, the continuous improvement initiatives should
maintain the balance between these values
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Strategies For Implementation of Operational Excellence
Top caliber high performers should be identified as “change agents” who can
drive operational excellence initiatives in the organization
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Develop “T” People
Develop Depth of
Capability within the
Organization
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Final Thoughts
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Operational Excellence Deployment in Caterpillar
Business Case
The Caterpillar's growth was limited due to four years of flat revenues and
extreme competition
Scope of Deployment
27 separate business units and over 72,000 employees in six continents with
multiple spoken languages
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Operational Excellence Deployment in Caterpillar
Action taken
The CEO along with the strategic planning committee analyzed the
customer requirements, market conditions and Caterpillar's capabilities
and determined the vision of 2020 for the organization with 3 five years
plans across all business units to achieve the vision. Through the rigor
and disciplined enforced during the initiative, the entire company was
aligned behind the same and specific objectives
Trained 4200 employees in Lean Six Sigma who drove 1100 projects and
served as mentors to the rest of organization
Result
Record profits and company achieve its 2010 goal
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Operational Excellence Deployment in PASCO
Business Case
The PASCO's growth was impacted due to low cost competition and its limited
regional foot prints
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Operational Excellence Deployment in PASCO
Actions taken
Trained employees in Lean Six Sigma
Collected customer requirements and recommendations by sending their
engineers to key customers which helped PASCO to understand the
several product areas where customers were looking for more innovative
solutions
Focused on high potential market (Shipping and Automotive industries)
where the company wanted to concentrate their R&D which led to major
product innovation. For example, the company invented steel that
remains rust-
rust-free in salt water, creating significant opportunities in
shipping and floating dock constructions
Using Lean Six Sigma to drive interactions with global automakers, POSCO
developed 21 varieties of high-
high-grade steel designed to meet special
industry needs, such as coated steel where the paint adheres easily
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Operational Excellence Deployment in PASCO
Result
POSCO has produced over US$ 1 billion in financial gains to date, including
strong savings and record sales volumes
Company has transformed itself from a regional, low- low-cost producer to a
global, value-
value-added provider of high
high--quality steel. POSCO is now the third
largest steelmaker worldwide with “world’s most competitive steel firm”
for three consecutive years.
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Operational Excellence Deployment in ScotishPower
Business Case
ScotishPower was losing its market share because of high customer attrition
rate
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Operational Excellence Deployment in ScotishPower
Action taken
Established Business Transformation Department and trained hundreds of
employees in Lean Six Sigma
Launched 130 Lean Six Sigma Projects
Designed the new process that approach to those clients who moved to
different home and canceled their ScottishPower services
Applied Lean Six Sigma to burning issues. For example, targeted marketing
campaign that boosted use of direct debit payments by 14 percent, a
simplified sign-
sign-up process for business customers that led to a 20 percent
increase in acquisition, and new meter reading processes with lower costs
and higher accuracy
Result
Customers base increased from 3.2 million to 5.1 million in just four years
Realized US$ 170 million in additional revenue and cost savings
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Operational Excellence Deployment in UNS Healthcare
Business Case
UNS Healthcare is an 800-
800-bed public hospital and trauma center, whose
capacity was stretched to the limit. They needed more space but adding a new
bed costs a million dollars and takes several years. The length of patient stay is
a critical measure of effectiveness and efficiency. A shorter stay means that
beds turn over more quickly and hospitals can treat more patients without
investing additional capital.
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Operational Excellence Deployment in UNS Healthcare
Action taken
Pilot program kicked-
kicked-off in the orthopedics, medical oncology, pulmonary
and infectious disease areas
Determined the care plan and target discharge date of each patient at the
time of admission into hospital.
Smooth communication between hospital and patients about target date
of discharge and steps involved in the process
Written care plan and a whiteboard in every room with daily goals to help
keep the patient focused on his or her discharge date
Result
Freeing up three to four hospital beds each day.
Patient satisfaction scores went up by 10% over historic averages.
Implemented the pilot program actions into the entire hospital, effectively
raised capacity by about 80 beds and add $ 35 million to the bottom line
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Operational Excellence Deployment in UNS Healthcare
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Operational Excellence in Financial Services
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Customized Continuous
Improvement Approach
- By Leading Consulting Firms
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Adopting a Lean Mindset—
Mindset—A.T.KEARNEY
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Adopting a Lean Mindset—
Mindset—A.T.KEARNEY
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Customer Focus Through BeLean™ - By Capgemini
BeLean™ Methodology
BeLean™ focuses on process or operation re-
re-engineering and operational
excellence by focusing on process, people and organization through
implementation of Lean and Behavioural Change Management
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Customer Focus Through BeLean™ - By Capgemini
Deploying Progressively
Sustainable results are a consequence of behavioural change, which does
not happen overnight. Therefore it is clear that a progressive approach to
deployment taking one level at a time - will build a stronger result
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Thank You
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