Professional Documents
Culture Documents
Part D
Strategy Deployment and
Governance
© Alex Boussetta
Prereads
© Alex Boussetta 2
1
What we will cover
Lean Supply Continuous Strategy
Operational
Chain and Improvement Deployment and
Excellence
Processes Ideologies Governance
Operational
Process and Lean principles
Process mapping strategy
operational and maturity
and analysis deployment and
excellence levels
metrics
Operational
Flow and Value stream Balanced
process
operational mapping and Scorecard and
improvement
metrics analysis leading metrics
methodologies
Working capital,
Agile Practices
inventory, Kanban
© Alex Boussetta 3
© Alex Boussetta 4
2
Strategy Deployment – Hoshin Kanri
© Alex Boussetta 5
© Alex Boussetta 6
3
Hoshin Kanri
ANA
GOAL
Safety Delivery Cost
Employee
Quality Involvement
OBJECTIVES
Employee
Safety Quality Delivery Involvement Cost
© Alex Boussetta 8
4
Hoshin Kanri Deployment
Level 1: Linking Corporate objectives to Function / BU
© Alex Boussetta 9
Level 1 – Corporate
Grow Trident Sales to $25 million in 24 months
⚫ ⚫ SPONSOR: John Smith ⚫ m
Reinvigorate Spear brand with new products and get 20% sales
⚫ ⚫ growth in 24 months ⚫
SPONSOR: Sam Gupta
Bring Edge line to break even in the next 6 months, and with 10%
m m growth within 12 months ⚫
SPONSOR: Mary Nelson
⚫
50% reduction in accidents in all facilities in the next 12 months
SPONSOR: Dan Johnston ⚫ What are the
strategies that
Reduce lead time by 60% in the Nebraska, Utah, Colorado
Develop Trident Sales Strategy aiming at 25M $ increase
The company
Reduce Edge Cost of Sales by 30% in 6 months
Initiatives
Achieve EBITDA of 15% in 24 months
is adopting
Value Streams in the next 6 months
STRATEGIC
BREAKTHROUGHS Program
(5 year plan)
SPONSOR: Claude Dumas
SPONSOR: Jack Douglas
Leaders and
in 24 months
Support
years
focus
Program Number 1 2 3 4
Operations ⚫ m ⚫ ⚫ m
Sales ⚫ m m m
Marketing m ⚫
Engineering m m m
Finance m m
HR m
Health/Safety/Environment ⚫
IT m m
© Alex Boussetta 10
10
5
Level 1 - Corporate
Grow Trident Sales to $25 million in 24 months
⚫ ⚫ SPONSOR: John Smith ⚫ m
Reinvigorate Spear brand with new products and get 20% sales
⚫ ⚫ growth in 24 months ⚫
SPONSOR: Sam Gupta
Bring Edge line to break even in the next 6 months, and with 10%
m m growth within 12 months ⚫
SPONSOR: Mary Nelson
⚫
50% reduction in accidents in all facilities in the next 12 months
SPONSOR: Dan Johnston ⚫ What are the
initiatives that the
•With a sponsor
in 24 months
Support
years
focus
Program Number 1 2 3 4
Operations ⚫ m ⚫ ⚫ m
Sales ⚫ m m m
Marketing m ⚫
Engineering m m m
Finance m m
HR m
Health/Safety/Environment ⚫
IT m m
© Alex Boussetta 11
11
Level 1 - Corporate
Grow Trident Sales to $25 million in 24 months
⚫ ⚫ SPONSOR: John Smith ⚫ m
will be launched
⚫ SPONSOR: Dan Johnston ⚫
Reduce lead time by 60% in the Nebraska, Utah, Colorado
Develop Trident Sales Strategy aiming at 25M $ increase
and tracked at a
Develop and launch 4 new products in the Spear Brand
Expand Market Shares from 25% to 40% in the next 3
Initiatives
corporate level
Achieve EBITDA of 15% in 24 months
STRATEGIC
•With a timeframe
BREAKTHROUGHS Program
SPONSOR: Claude Dumas
SPONSOR: Jack Douglas
•With a sponsor
SPONSOR: Neil Young
witin 24 months
Leaders and
in 24 months
Support
focus
Program Number 1 2 3 4
that need to be defined or
Operations ⚫ m ⚫ ⚫ m improved
Sales ⚫ m m m
Marketing m ⚫
Engineering m m m
Finance m m
HR m
Health/Safety/Environment ⚫
IT m m
© Alex Boussetta 12
12
6
Level 1 - Corporate
Grow Trident Sales to $25 million in 24 months
⚫ ⚫ SPONSOR: John Smith ⚫ m
Reinvigorate Spear brand with new products and get 20% sales
⚫ ⚫ growth in 24 months ⚫
SPONSOR: Sam Gupta
Bring Edge line to break even in the next 6 months, and with 10%
m m growth within 12 months ⚫
SPONSOR: Mary Nelson
⚫
50% reduction in accidents in all facilities in the next 12 months
SPONSOR: Dan Johnston ⚫ Who are the
leading
supports
Achieve EBITDA of 15% in 24 months
in 24 months
Support
years
focus
Program Number 1 2 3 4
Operations ⚫ m ⚫ ⚫ m
Sales ⚫ m m m
Marketing m ⚫
Engineering m m m
Finance m m
HR m
Health/Safety/Environment ⚫
IT m m
© Alex Boussetta 13
13
90o rotation
SPONSOR : Allen Baker
Within a function,
Program
Product and process reingineering for Trident, target
Grow Trident Sales to $25 million in 24 months
Initiatives Projects
projects specific
SPONSOR: Brenda Stewart
SPONSOR: Tilguan Chan
Leaders and
Support
programs that will
be launched and
months
Project Number 1
⚫
2
m
3 tracked
• with a timeframe
Operations - Nebraska Dir
Operations - Colorado Dir m m
Operations - Utah Dir m m
Operations - Florida Dir
Operations - Oregon Dir
• With a sponsor
Sales ⚫
Marketing m
Engineering ⚫
Finance m m
© Alex Boussetta 14
14
7
Level 3
⚫ m
Customer identification and sales plan
SPONSOR: Brenda Stewart
Local plans
Logistics costs and process review, focusing on Trident
m ⚫ SPONSOR: Max Loca ⚫ ⚫ ⚫ m
Program Tasks
a function,
SPONSOR: Claude Dumas
SPONSOR: Jack Douglas
Dave Rametta
in 24 months
Support
tasks that
focus
Task Number 1 2 3 4 5 6
need to be
Operations Dir m
m
⚫ ⚫ accomplished
• With a
Trident Prod Supervisor
Planning Manager m ⚫ m m
m m m m
timeframe
Methods Manager
Maintenance Manager m m
Warehouse and Logistics Supervisor
Sales
⚫ ⚫ m m
• With a
Marketing sponsor
Engineering ⚫
Finance
HR
Health/Safety/Environment m m m
IT
© Alex Boussetta 15
15
Exercise
© Alex Boussetta 16
16
8
Strategy Deployment and Governance
© Alex Boussetta 17
17
18
9
The Balanced Scorecard
Guiding
Mission Vision
Principles
Strategies
(Breakthroughs)
Balanced
Hoshin Kanri
Scorecard
Next level
Next level
… …
© Alex Boussetta 19
19
FINANCIAL / REGULATORY
To satisfy our constituents, what financial & regulatory objectives must we accomplish?
• Cost / Unit, Cost per service
• Funded / Unfunded Requirements or Projects
• Budget Projections vs Targets
CUSTOMER
To achieve our vision, what customer needs must we serve?
• Customer Satisfaction
• Net Promoter Score
• Satisfaction Gap Analysis (Satisfaction vs. Level of Importance)
• Satisfaction Distribution (% of each area scored)
INTERNAL
To satisfy our customers and stakeholders, in which business processes must we excel?
• Cycle Time, Completion Rate
• Workload
• Transactions per employee
• Errors or Rework
© Alex Boussetta 20
20
10
Example
© Alex Boussetta 21
21
Example
© Alex Boussetta 22
22
11
Strategy Deployment and Governance
© Alex Boussetta 23
23
Execution, Actions
Values, behavior
Culture
24
12
What is a Lean Management System
© Alex Boussetta 25
25
• A system that :
– Defines the goals and objectives
– Aligns actions toward objectives
– Manages capacity to engage in improvements
– Standardize managers work for greater efficiency
in problem solving and more Gemba
– Values employees input and allows staff
participation and support communication
© Alex Boussetta 26
26
13
Lean Daily Management System Elements
Daily
Accountability
Process
Ensure that leaders that own the process
communicate and share issues and drive
problem solving within their value streams
© Alex Boussetta 27
27
Daily
Accountability
Process
Ensure that leaders that own the process
communicate and share issues and drive
problem solving within their value streams
© Alex Boussetta 28
28
14
Examples of Key Leader Activities
© Alex Boussetta 29
29
Daily
Accountability
Process
Ensure that leaders that own the process
communicate and share issues and drive
problem solving within their value streams
© Alex Boussetta 30
30
15
Tasks visual board
Sam
Ash
Joe
Andrea
Kamishibai
© Alex Boussetta 31
31
Smartsheets
JIRA
Trello
© Alex Boussetta 32
32
16
Accountability board - example
© Alex Boussetta
Obeya 33
33
Daily
Accountability
Process
Ensure that leaders that own the process
communicate and share issues and drive problem
solving within their value streams
© Alex Boussetta 34
34
17
Daily Accountability Process Example
© Alex Boussetta 35
35
© Alex Boussetta 36
36
18
Daily Accountability
Sector meeting Participants
Visuals
When: 6:50 every day Fitters
Production Plan
10 minutes Inspectors
Tasks assignments Lead: Fitters, inspectors By sector
Dept meetings Action board Topics: Assignations, issues
When: 8:30 every day KPIs
10 minutes
Lead: Dept Manager
Topics: Feedback and Visuals Production meeting Participants
priorities Streamer status When: 7:00 every day Production reps
Production Plans 10 minutes Tech. Rep
Action board Lead: Operations Manager Inspection rep
Topics: Feedback and priorities
Participants Participants
Red Team Tech. Rep
Visuals Matrix meeting Scheduler Visuals
11 AM, 2 times per week
MRP C Inspection rep
Parts status per module When: 9:30 AM every day 30 minutes
Service Eng. Quality Engineer
Streamer status 30 minutes Action board Lead: Operations Manager
Lead: Program Manager Tech Rep. KPIs Certification Rep.
Scheduling Topics: quality, methods, Tooling Engineer
Tasks assignments Topics: Streamer and parts Kitting Superv. Projects KPIs engineering, tools, repairs
related issues Controller Repair Engineer
Action board issues, 5S, HS&E Program Manager
KPIs Subcon rep
Ops Manager Production reps
Repair Tech
Steering Participants
Visuals Operations Manager
Program Manager
Action board When: 3 PM once per week Operations Director
4 quadrants 60 minutes
Quality Manager
KPIs Lead: Matrix Director
Engineering Director
Topics: Issues open for more than 1 week, or needing
Director attention and decisions
© Alex Boussetta 37
37
Planned sequence Actual performance Product Lot size Category Defect description Nb of defects
Duration planned Actual Diff.
Product Quantity Time Comments (problems, solutions)
(min) (units) (units) (units)
-Issue with spacer installation jig- AK
Vulcain 500-787 150 260 7h00 - 9h00 69 -part inserted in the wrong spot - lined stopped for 10
minutes - FS
9h15-11h35 81
< Total
When At the start of every shift (or during shift to give a feedback)
For whom
Production crew
}
and maintgenance
quality if required
Planning, purchasing
management
KPI's
See KPI board
© Alex Boussetta 38
38
19
KPI board example (Tier II)
Actions
Month of ________
120
110 110
89 89 89 89
80 79 79
75 76 76 75 75 76 76 75
% actual / planned
67 67 66 67 67 66
60
56 56
49 49
45 45 45 45
40
20
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Quality
Day
Frequency Daily
Duration 30 minutes
AGENDA Identify and establish responsibles to address issues that will have a short term impact on:
Quality Delivery Cost
Other meeting could be scheduled on these items
Review the last 24 hour performance, analyze the KPI's and graphical tendencies
Review actions
Eliminate closed actions, Determine dates for pending actions and discuss why we are late
Identify new actions with dates and responsibles
Brief info, announcements, improvement activities, as needed
© Alex Boussetta 39
Questions, comments, suggestions from participants
39
Exercise - Hansei
© Alex Boussetta 40
40
20
Operational Excellence
Lean Supply Continuous Strategy
Operational
Chain and Improvement Deployment and
Excellence
Processes Ideologies Governance
Operational
Process and Lean principles
Process mapping strategy
operational and maturity
and analysis deployment and
excellence levels
metrics
Operational
Flow and Value stream Balanced
process
operational mapping and Scorecard and
improvement
metrics analysis leading metrics
methodologies
Working capital,
Agile Practices
inventory, Kanban
© Alex Boussetta 41
41
Problem solving,
Continuous Improvement
Process
Agility, Efficiency, Effectiveness
Strategy,
Long term thinking
© Alex Boussetta 42
42
21
Further Reading
• Olsen D.(2015). The Lean Product Playbook, Wiley.
• Gothelf, J., Seiden, J. (2016). Lean UX, O’Reilly.
• Rubin, K.S., (2013), Essential Scrum, Addison Wesley.
• Anupindi, R. (2012). Managing business process flows: Principles of operations management. Boston:
Prentice Hall.
• Heizer, J., Render, B., & Griffin, P. (2016). Operations management: Sustainability and supply chain
management. Pearson.
• Rother, M., Shook, J., & Lean Enterprise Institute. (2009). Learning to see: Value stream mapping to
create value and eliminate muda. Cambridge, MA: Lean Enterprise Institute.
• Trent, R. J., & Roberts, L. R. (2010). Managing global supply and risk: Best practices, concepts, and
strategies. Fort Lauderdale, FL: J. Ross Pub.
• Harrison, A. (2014). Logistics Management and strategy, Competing through the supply chain.
Pearson.
• Mann, D. (2015). Creating a Lean Culture, CRC Press
• McChesney, R. (2021). The 4 Disciplines of Execution, Simon & Schuster.
• Clearfield C. & Tilcsik, A. (2018). Meltdown: Why Our Systems Fail and What We Can Do About It,
Allen Lane
• Kaplan R. & Norton D. (1996) The Balanced Scorecard: Translating Strategy into Action Hardcover
• https://www.agilealliance.org
• https://www.isixsigma.com
• http://www.lean.org
© Alex Boussetta 43
43
22