Develop and Improvement PDF

Continuous Improvement at a
Strategic Level
Simon…
Strategic Alignment also drives improvement actions….
Is current Is required strategic
performance performance
understood? understood?
Do improvement priorities reflect

current and required performance?
What mix of ‘continuous’ and

‘breakthrough’ approaches is
appropriate?
Where do improvement ideas come

from?
What is the operation’s improvement

‘climate’?
2
World Class Research Program
Supply Challenges
Supply has to cope with the clash between the nature

of external markets and the nature of internal
resources
Market Requirements: Operations Resources:
Dynamic Difficult to change

Heterogeneous Technically
Ambiguous constrained
Complex
3
Prioritising Objectives
Priorities should be determined by ......
The Your
IMPORTANCE PERFORMANCE
of each in each of the

competitive competitive
objective objectives
IMPROVEMENT PRIORITIES
4
Benefit Analysis
Order Winning
Objectives
+ ve
Competitive Benefit
Neutral
- ve
Achieve Performance
5
Benefit Analysis
Order Winning Qualifying Objectives

Objectives
+ ve
+ ve
Competitive Benefit
Competitive Benefit
Neutral
Neutral
qualifying
- ve level
- ve
Achieve Performance Achieve Performance
6
Benefit Analysis
Order Winning Qualifying Objectives Less Important

Objectives Objectives
+ ve + ve
+ ve
Competitive Benefit
Competitive Benefit
Competitive Benefit
Neutral Neutral
Neutral
qualifying
- ve level - ve
- ve
Achieve Performance Achieve Performance Achieved Performance
7
A Method For Identifying Our ‘Strategic’ Operations Priorities
Identify what is important to customers e.g.

quality of documentation
quality of service moments
quality reliability of product
speed of delivery from order
speed of order take
speed of complaint resolution
Assess how well we perform
Relate our performance to customer’s or market requirements
8
9 Point Importance Scale
For this product group does this performance objective? ......
1 - Provide a crucial advantage with customers

ORDER
WINNING 2 - Provide an important advantage with most customers
OBJECTIVES
3 - Provide a useful advantage with most customers
4 - Need to be up to good industry standard

QUALIFYING
OBJECTIVES 5 - Need to be around median industry standard
6 - Need to be within close range of the rest of the industry
7 - Not usually important but could become more so in future

LESS
IMPORTANT 8 - Very rarely rate as being important
OBJECTIVES
9 - Never come into consideration
9
Sales Enquiry Processing
IMPORTANCE to Customers
1 2 3 4 5 6 7 8 9
PRICE X
ERROR RATE X
REPORTING CUSTOMISATION X
ENQUIRY LEAD-TIME X
REPORTING SPEED X
REPORTING DEPENDABILITY X
PROACTIVE REPORTING X
FLEXIBILITY X
1 2 3 4 5 6 7 8 9
10
9 Point Performance Scale
For this product group is achieved performance ?........
1 - Consistently considerably better than our nearest competitor

BETTER
THAN 2 - Consistently clearly better than our nearest competitor
COMPETITORS
3 - Consistently marginally better than our nearest competitor
4 - Often marginally better than most competitors

SAME
AS 5 - About the same as most competitors
COMPETITORS
6 - Often close to main competitors
7 - Usually marginally worse than main competitors

WORSE
THAN 8 - Usually worse than most competitors
COMPETITORS
9 - Consistently worse than most competitors
11
Sales Enquiry Processing
PERFORMANCE against Competitors

1 2 3 4 5 6 7 8 9
COST X
ERROR RATE X
REPORTING CUSTOMISATION X
ENQUIRY LEAD-TIME X
REPORTING SPEED X
REPORTING DEPENDABILITY X
PROACTIVE REPORTING X
FLEXIBILITY X
1 2 3 4 5 6 7 8 9
Estimated
12
1
GOOD
Reporting
better 2 Reporting speed customisation
than X X
3
Reporting
Proactive dependabilit
PERFORMANCE
reporting
COMPETITORS
4
X Xy
same
AGAINST
5 Error rate X
as
6
Flexibility X
7 Enquiry
X X Lead-Time
8
Price/Cost
worse
than
9
BAD
9 8 7 6 5 4 3 2 1
less order
important qualifying winning
IMPORTANCE
LOW FOR HIGH
CUSTOMERS
13
GOOD 1
better 2 EXCESS?
than
3 APPROPRIATE
PERFORMANCE
COMPETITORS
4
AGAINST
same 5
as
6 IMPROVE
7
worse
8 URGENT
than 9
ACTION
BAD
9 8 7 6 5 4 3 2 1
less order
important qualifying winning
IMPORTANCE
CUSTOMERS
LOW FOR HIGH
14
Adding Delights
Positive
Delights
Competitive Benefit
Order Winners
Neutral
Qualifiers
Negative
Low High
Achieved Performance
15
The Importance of Exceeding
Customer Expectations
Positive
Delights
Competitive Benefit
Order Winners
Neutral
Qualifiers
Negative
Low High
Achieved Performance
16
DEVELOP – through learning
“Knowledge is power”
Stage Term Knowledge Typical form of knowledge

1 Complete ignorance None Nowhere
2 Awareness Tacit
3 Measurement Written
4 Control of mean Written and in hardware
5 Process capability Hardware and operating manual
6 Process characterization Empirical equations
7 Know why Scientific models
8 Complete knowledge Full
17
Pushing beyond control!
Knowledge at Stage... 1 2 3 4 5 6 7 8
Nature of production Expertise based Procedure based
Role of workers Everything Problem solving Learning and improving
Location of Knowledge Workers heads Written and oral Databases and software
Nature of learning Artistic Natural experiments Controlled experiments

and simulations
Problem solving Trial and error Scientific method Look it up
Training Learning by doing Learning before doing
Automation Can’t Suitable
Ease of transfer Can’t High
18
Process control starts the learning which develops
process knowledge
Learning
Process
Knowledge
Process
Control
19
Systematic learning
You can’t learn about a process when it’s out

of control
If things are in control

you notice changes
so you can investigate them
so you can identify root causes
so you can put things right
and improve the process
and learn more about it
20
Kaizen
Traditional Western Perceptions of Job Functions
Top
Management
Middle
Management
Supervisors
Workers
Imai 1986
22
Japanese Perceptions of Job Functions
Top
Management
Middle
Management
Supervisors
Workers
Imai 1986
23
Japanese Perceptions of Job Functions (2)
Top
Management
Middle
Management
Supervisors
Workers
Imai 1986
24
Innovation... ...Kaizen
Short-term, dramatic Effect Long-term, undramatic

Large steps Pace Small steps
Intermittent Timeframe Continuous, incremental
Abrupt, volatile Change Gradual and consistent
Few champions Involvement Everyone
Individual ideas & effort Approach Group efforts, systematic
Scrap and rebuild Mode Protect and improve
New inventions/theories Spark Established know-how
Large investment Capex Low investment
Low effort Maintenance Large maintenance effort
Technology Focus People
Profit Evaluation Process
25
Actual performance improvement with continuous improvement
Performance
Standardize and maintain
Improvement
“Continuous”
improvement
Time
26
Intended performance improvement with breakthrough improvement
Performance
Breakthrough
improvements
Time
27
Actual performance improvement with breakthrough improvement
Performance
Actual improvement
Time
28
SEIRI (Sort)
WIP, Unnecessary tools
Unused machinery
Defective products The Five-Step Kaizen Movement
Paperwork and Documents
SEITON (Straighten)
Put things in order
Tools and parts in the
right place
SEISO (Shine)
Keep the workplace clean
SEIKETSU (Systematize)
Basic housekeeping standards
SHITSUKE (Sustain)
Discipline
Follow agreed procedures
29
“Change is difficult because of the
incredulity of mankind who do not truly
believe in anything new until they have
experienced it for themselves”
Machiavelli
The Prince 30
Video Case Exercise
Note down the main methods used in Kaizen

What is the role of the worker?
What is the role of the Management?
What level of improvements would you expect?
31
Sid’s Heroes……...
33

Develop and Improvement PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Develop and Improvement PDF

Uploaded by

Copyright:

Available Formats

Continuous Improvement at a

Do improvement priorities reflect

What mix of ‘continuous’ and

Where do improvement ideas come

What is the operation’s improvement

Supply has to cope with the clash between the nature

Market Requirements: Operations Resources:

Dynamic Difficult to change

of each in each of the

Order Winning Qualifying Objectives

Achieve Performance Achieve Performance

Order Winning Qualifying Objectives Less Important

Achieve Performance Achieve Performance Achieved Performance

Identify what is important to customers e.g.

1 - Provide a crucial advantage with customers

4 - Need to be up to good industry standard

6 - Need to be within close range of the rest of the industry

7 - Not usually important but could become more so in future

1 - Consistently considerably better than our nearest competitor

4 - Often marginally better than most competitors

7 - Usually marginally worse than main competitors

PERFORMANCE against Competitors

Stage Term Knowledge Typical form of knowledge

4 Control of mean Written and in hardware

5 Process capability Hardware and operating manual

6 Process characterization Empirical equations

7 Know why Scientific models

8 Complete knowledge Full

Nature of production Expertise based Procedure based

Role of workers Everything Problem solving Learning and improving

Nature of learning Artistic Natural experiments Controlled experiments

Training Learning by doing Learning before doing

Automation Can’t Suitable

Ease of transfer Can’t High

You can’t learn about a process when it’s out

If things are in control

Short-term, dramatic Effect Long-term, undramatic

Standardize and maintain

Note down the main methods used in Kaizen

You might also like