MSC PROFESSIONAL SERVICES OPERATIONAL DELIVERY

PWC

QUALITY AND PROCESS IMPROVEMENT

G. WILSON – MARCH 2023
AGENDA

• Review strategic and operational approaches to improving operations

• Develop understanding of Improvement frameworks
• Demonstrate the benefits of adopting a structured approach to managing and
measuring improvement
• Review the key components of Lean and Process Improvement
Interfunctional relationships between operations
and other functions
Engineering/ Product/service
technical Understanding of the
capabilities and development
function constraints of the function
operations process
Analysis of new
technology options Understanding of
process technology
needs New product and
Accounting service ideas
and finance Provision of Understanding of the
relevant capabilities and
function data
Operations constraints of the
Financial analysis function operations process
for performance and
decisions Market
requirements Marketing
Understanding of human function
resource needs Understanding of Provision of systems for
infrastructural design, planning and
and system needs control, and improvement
Recruitment
development and
training
Human Information
resources technology
function (IT) function
ORGANISATION
ECOSYSTEM
 5

The Organisation’s Ecosystem: Overview

• The world has changed

• Driven largely by digital technology
• Greater connectivity
• Movement beyond traditional industry sectors
• Create Sustainable Value
• Taking an ecosystem view helps an organisation to make sense of the future and get prepared for it
 6

The Organisation’s Ecosystem:

A Simple Example
Creating
Sustainable Value:
Challenges GLOBAL ENVIRONMENT: current & future
Opportunities
MEGATRENDS
Global Raw
warming MARKET / ARENA materials
Competitors
Intermediaries
STAKEHOLDERS
Potential Governmental Societal
Customers departments Trends
Special
interest
Sharing Partners &
group
economy Entrants suppliers YOUR ORGANISATION Customers

UNSDG
Press & Society People
Human
Social Media Shareholders resources
Globalisation

Innovations Legislation
Demographic Geopolitical Driving
Organisational uncertainty Performance &
diversity
Leadership Disruptive Transformation
technologies (incl. Assets &
Risks)
Management Structure
Purpose Strategy Culture (governance, business model,
performance management)
 7

Finance
Integrated Quality
IT Procurement
HR Sales/Marketing

Manufacturing/Service

GLOBAL ENVIRONMENT:
Challenges
MEGATRENDS Creating
Raw Sustainable Value:
Opportunities Global current & future
warming MARKET / ARENA materials
Competitors
Intermediaries
STAKEHOLDERS
Potential Governmental Societal
Customers departments Trends
Special
interest
Sharing Partners &
group
economy Entrants suppliers YOUR ORGANISATION Customers

UNSDG
Press & Society People
Human
Social Media Shareholders resources
Globalisation

Innovations Legislation
Demographic Geopolitical Driving
Organisational uncertainty Performance &
diversity
Leadership Disruptive Transformation
technologies (incl. Assets &
Management Structure Risks)
Purpose – in Strategy – (governance, business model,
Culture performance management)
line with alignment of
Objectives objectives
 8

The Organisation’s Ecosystem: Activity

Consider your own organisation, or another entity with which you are very familiar, and start to consider its ecosystem

1) Identify the different players/factors in the market / arena for your organisation

2) Having identified the different players/factors, which of these are KEY for the organisation?
 9

The Organisation’s Ecosystem: Different roles

Is your Organisation:

• An Orchestrator/Prime Mover?

• Facebook: Apple: Microsoft: Google: Amazon (FAMGA)

• Happy to open up to competition, share IP to grow the market

• A Disrupter?

• Airbnb: Uber

• A Complementor?

• Most organisations will participate in ecosystems not as orchestrators but as ‘complementors’ –

e.g. suppliers of supplementary technologies or capabilities.
 VALUE OF A
STRATEGIC
FRAMEWORK
 11

How well are you anticipating and responding to the global Megatrends?

What is your position in your ecosystem?

How do you know how good you are?

How do you know how to be even better?

 12

The Changing World:

Managing in the VUCA Environment

Managers need a framework for:

• Keeping the organisation aligned to its
Purpose and Vision
• Nurturing an organisational culture to
support outstanding performance
• Encouraging flexibility and innovation
• Creating sustainable value for key
stakeholders
• Maintaining performance whilst
embracing transformation
• Managing the impact of external factors
and the relationship with key
stakeholders and other players in the
organisation’s ecosystem
 13

EFQM Model: Concept & Structure

“Why” “How” “What”

EXECUTION
DIRECTION

RESULTS
does this does it intend to has it actually
Organisation deliver on its achieved to date?
exist? What Purpose and its “What” does it
Purpose does it Strategy? intend to achieve
fulfil? Why this tomorrow?
particular
Strategy?
KEY ISSUES

 Fundamental role as an organisation

 How is Stakeholder engagement managed?
 Appropriate Range of metrics in place – Outcome based
 How effective is Leadership, Planning, People Management etc?
 Strategic perspective – how sustainable as an offering?
IMPROVEMENT
FRAMEWORKS
BUSINESS IMPROVEMENT Customer
Understanding

Organisational
Strategy
Mission, Vision & Values

Connection & Link

 As a strategy….. Strategic
Objectives

Functional
Objectives

Individual
Objectives
 17

What do we do?
Are we measuring Why do we do
the right things this?
and in the right How, when and
way? where have we
Are we getting implemented it?
better? How do we know
Are we meeting it is working?
our targets? What have we
How do we learned?
compare with How can we
others? improve it?
Will we continue
to be successful?
 18

The EFQM Model: Direction

Positioning Statement
Purpose, Vision Organisational
& Strategy Culture & For an organisation to achieve and sustain
Leadership
outstanding results that meet or exceed the
expectations of its stakeholders it:

• Defines an inspiring purpose

• Creates a vision that is aspirational
• Develops a strategy that is centred on
DIRECTION creating sustainable value
• Builds a winning culture
 19

The EFQM Model: Direction

1 Purpose, Vision & Strategy

1.1 Define Purpose & Vision 2 Organisational Culture & Leadership
1.2 Identify & Understand Stakeholders 2.1 Steer the Organisation’s Culture & Nurture Values
Needs
2.2 Create the Conditions for Realising Change
1.3 Understand the Ecosystem, own
Capabilities & Major Challenges 2.3 Enable Creativity & Innovation

1.4 Develop Strategy 2.4 Unite Behind & Engage in Purpose, Vision &
Strategy
1.5 Design & Implement a Governance
& Performance Management System
 20

The EFQM Model: An example criterion part

There is an expectation that

1.1 Define Purpose & Vision the organisation defines its
Purpose & Vision
In practice we find that an outstanding organisation:
• Understands the importance of its Purpose being acknowledged as a force
for good in its ecosystem
• The guidance points provide
Defines a Purpose that provides an inspirational motive for the importance
examples of good practice
and value of its work and is appealing to all its stakeholders • Designed to provide
• Uses its Purpose to create an aspirational Vision that resonates with its inspiration
stakeholders • Not to be used as a
checklist
• Involves its stakeholders in defining, shaping and communicating its
Purpose and Vision
• Identifies areas in which outstanding and sustainable levels of performance
must be achieved to fulfil the Vision
 21

The EFQM Model: Execution

Positioning Statement

Engaging The organisation needs to execute its

Stakeholders strategy effectively and efficiently, ensuring
that it:

EXECUTION • Knows who the stakeholders are in its

Creating ecosystem and engages fully with those
Sustainable that are key to its success
Value • Creates sustainable value
• Drives the levels of performance
necessary for success today and, at the
Driving
Performance & same time, drives the necessary
Transformation improvement and transformation if it is
to be successful in the future
 22

The EFQM Model: Execution

3 Engaging Stakeholders

3.1 Customers: Build Sustainable Relationships

3.2 People: Attract, Engage, Develop & Retain

3.3 Business & Governing Stakeholders – Secure & Sustain Ongoing Support

3.4 Society: Contribute to Development, Well-Being & Prosperity

3.5 Partners & Suppliers: Build Relationships & Ensure Support for Creating Sustainable Value
 23

3.2 People: Attract, Engage, Develop & Retain

In practice we find that an outstanding organisation:

• Develops a People strategy and plans that support the overall strategy and plans of the organisation
• Adapts to the evolving needs and expectations of its People, both current and future, taking
account, for example, of changing expectations on Organisational Culture & Leadership, gender
balance & parity, diversity & inclusion and the desired working environment
• Enables its People – based on Purpose, Vision & Strategy – to understand the need for change and
to see the opportunities for further development of their knowledge and capabilities
• Empowers its People to communicate and to share effectively their experiences and learning with
others in the ecosystem
• Creates an ambiance in which its People can thrive, and their well-being is supported
• Ensures its People are proactively guided, rewarded, recognised and cared for
 24

The EFQM Model:

Execution 5 Driving Performance &
Transformation

4 Creating Sustainable Value

5.1 Drive Performance & Manage Risk
5.2 Transform the Organisation for the
4.1 Design the Value & How it is Created Future
4.2 Communicate & Sell the Value 5.3 Drive Innovation & Utilise
4.3 Deliver the Value Technology

4.4 Define & Implement the Overall 5.4 Leverage Data, Information &
Experience Knowledge
5.5 Manage Assets & Resources
 25

The EFQM Model: Results

Positioning Statement

An outstanding organisation provides

Stakeholder RESULTS
Perceptions
results data in relation to what has been
described in Direction and Execution,
including a forecast for the future.

• Stakeholder perceptions
Strategic &
• Creating sustainable value
Operational
Performance • Driving performance
• Driving transformation
 26

The EFQM Model:

Results

7 Strategic & Operational Performance

6 Stakeholder Perceptions
Strategic and Operational Performance indicators could include:
Key Stakeholder Perception Results could include:
• Achievements in delivering its Purpose and Creating
• Customer Perception Results
Sustainable Value
• People Perception Results
• Financial Performance
• Business & Governing Stakeholders
• Fulfilment of Key Stakeholders Expectations
Perception Results
• Achievement of Strategic Objectives
• Society Perception Results
• Achievements in Driving Performance
• Partners & Suppliers Perception Results
• Achievements in Driving Transformation
• Predictive Measures for the Future
THE RADAR CONCEPT

Define the RESULTS you

want to achieve Develop the
APPROACHES that
will deliver the
improvement

ASSESS the impact and DEPLOY the

REFINE to ensure you improvement plan
achieve the desired
result.
ISO 9001:2015

 The ISO 9001:2015 Standard is a design for a Quality Management

System based on The Process Model
 An organization is a system of interlinked processes
 The standard is geared at managing and improving those processes
 Key processes – those that lead to products and services- must be identified
 Methods to measure and control these processes must now be included

28
THE PROCESS MODEL

Process Model

C Quality Management System (QMS)

C
Continual Improvement
U U
Leadership
S S
T Planning
Performance Evaluation T
and Improvement
O O
M M
Support, Operation
E E
R R
29
PLAN-DO-CHECK-ACT CYCLE

30
STRATEGIC IMPROVEMENT
STRATEGIC IMPROVEMENT
CONTEXT OF THE ORGANISATION

33
UNDERSTANDING THE NEEDS AND
EXPECTATIONS OF INTERESTED PARTIES

34
PLANNING

RISKS AND OPPORTUNITIES

35
RESOURCES
ORGANISATIONAL KNOWLEDGE

36
RESOURCES

COMMUNICATION

37
EXTENT OF INTEGRATION AND
IMPACT

 Compliance – Consolidation - Excellence

 Breadth and depth of analysis and review
 Effectiveness of approaches – across all areas of operation
 Scope of performance metrics - activity vs. impact
 Approaches not in competition
 How strategic is the focus on Improvement ?
 How mature is the focus on Improvement ?
 What is the overall measure of maturity .. impact?
STRATEGIC
PROCESS
OVERVIEW
VALUE STREAM
MAPPING
 Important Concepts: “Value”

 Value is added any time we physically change our product, or engage in an activity, that
results in delivering what the customer is paying for
 If we are not adding value, we are adding cost or waste

 Lean Tools drive the systematic elimination of waste

KEY QUESTION – Are my customers willing to pay for this ????

 Important Concepts: “Value Stream”

Value added Operations

Any process that changes the nature, shape or characteristic of the product or
service in line with customer requirements
Important Concepts: “Value Stream”

Non-Value added Operations

Work carried out which is necessary under current conditions, but does not
increase product or service value for the customer.
For example: Searching for information, dealing with errors from previous steps
in the process, processing mistakes, excessive walking and moving around,
meetings, waiting for others to provide you information, are all typical examples
of non value added activities
 Important Concepts: “Value Stream”

The objective of Lean is to raise the ratio of Value added operations to

non-value added operations and eliminate waste.
PROCESS TIME
VALUE
WASTE NON-VALUE ADDED
ADDED
ELIMINATE MINIMIZE

MORE TIME FOR NON-VALUE VALUE

OTHER ACTIVITIES ADDED ADDED

Some non-value added operations can be referred to as value-enabling

operations. They don’t add value but are required.
VALUE STREAM MAPPING

 This methodology focuses on clearly specifying “value”,

lining up all the value-creating activities along a “value
stream”
 It also focuses on making value “flow” smoothly at the
“pull” of the customer in pursuit of “Quality” at lower “Cost”.
 While the concept of “Flow” is deceptively simple, many
organizations struggle on the path to becoming lean as
they constantly get “stuck in the muck” of waste, status
quo, lack of standardization, or lack of management
support.
VALUE STREAM MAPPING
VALUE STREAM MAPPING
VALUE STREAM MAPPING
CONTINUOUS
IMPROVEMENT
CULTURE

THE PDCA
APPROACH
WHAT IS PDCA?

 Plan Do Check Act (PDCA) is a framework that provides a

methodical approach to continuous improvement.
 It’s a 4-step methodology for process improvement:
 Plan: Establish objectives and
how they will be achieved
 Do: Put the plan into effect
 Check: Verify that the process
achieved the desired results
 Act: Analyse any differences and their causes. Take
action to improve things.
 WHAT IS PDCA?
 It applies to every aspect of your business.
 It is actually the underlying concept behind the ISO 9001
Quality Management standard among others!
 Most importantly,
it’s a way of thinking!
 Improvement is a journey!!
WHY USE PDCA?
The PDCA Approach
Usually change follows one of two routes…..

Trial & Error? Detailed prior study?

Leads to Chaos Leads to Paralysis
OR…..

Why? Why?
Too much action, Too much thinking,
not enough thinking not enough action

“Something must be done” “We can’t do anything

“This seems like a good idea, until we know exactly
therefore we must do it…” what to do…”
The PDCA Approach
What is the best way to approach change that results in
improvement?

Trial & Error? Detailed prior study?

Leads to Chaos Leads to Paralysis

Why? Why?
Too much action, Too much thinking,
not enough thinking not enough action

“Something must be done” “We can’t do anything

“This seems like a good idea, until we know exactly
therefore we must do it…” what to do…”

“Trial and Learning”

Approach
The PDCA Approach
CONTINUOUS
IMPROVEMENT
CULTURE

SIPOC
 SIPOC PROCESS OVERVIEW

 What is It?

 A SIPOC diagram is a tool used by a

team to identify all relevant elements of
a process improvement project before
work begins.
 It helps define a complex project that
may not be well scoped
 It is similar and related to process
mapping and ‘in/out of scope’ tools but
provides additional detail.
SIPOC AND PROCESS IMPROVEMENT

 It is useful for focusing a discussion and helping team members agree upon a common
language and understanding of a process for Continuous Improvement.
 Use this diagram when process management or an improvement activity is underway
since it’s important to get a high-level understanding of the process’s scope first.
 The SIPOC tool is particularly useful when the following is not clear:
• Who supplies inputs to the process?
• What specifications are placed on the inputs?
• Who are the true customers of the process?
• What are the requirements of the customers?
 CREATING A SIPOC DIAGRAM

When creating a SIPOC Diagram remember that:

 Creating a SIPOC is a team effort... Don't try to do this alone, as the likelihood is that
you'll miss key information.

 Keep it simple. Don't over complicate the activity. Remember it’s meant to be a high-
level information gathering activity. You can expand the detail later.
 CREATING A SIPOC DIAGRAM

Let us now look at the steps to create the diagram.

 The first step is to establish a name or title for the process

 The second step is to define the starting point and the ending point of the process to be
improved.
 The third step is to state the top-level process steps of the process. Keep the list to four to
eight main steps. These steps do not contain any decision points or feedback loops
 The fourth step is to list the key outputs of the process. Usually, this list includes up to three
or four main outputs even though the process may produce more
 The fifth step is to define who receives those outputs, i.e. the customers. These customers may
be internal (part of the business) or external
 The sixth step is to list the inputs to process. Stick with one to four main inputs
 In the seventh step, define who supplies the inputs to the process
CREATING A SIPOC DIAGRAM
 Group Exercise

Select a process and develop a SIPOC Diagram for it:

Think about the

• High level steps on the process
• What are the key inputs and outputs for each step
• What the outputs used for

Time allowed: 15 minutes.

8D PROBLEM
SOLVING
 GROUP WORK

 In your groups: -

 Reflect on your own work environment, or agree a work environment for your group

 Identify as many wastes as you can, and categorise them

 Make a list

 What does this say to you?...

THE 8D PROCESS
D4:
D5: Choose &
D0: Recognize the Identify Potential
Verify Corrective
Problem Causes
Actions

D6: Implement &

D1: Establish the Select Likely
Validate
Team Causes
Corrective Actions

D2: Describe the D7: Prevent

No Root Cause?
Problem Recurrence

Yes

D3: Determine and

Implement Identify Possible D8: Congratulate
Containment Corrective Actions the Team
Actions
THE 8D TEMPLATE

65
PROCESS MAPS
PROCESS MAPPING
Process Maps

 A process is the combination of people, machines, materials and

procedures in planned and organized activities
 A process diagram is a pictorial representation of the process
broken down into a chronological sequence of sub-processes and
steps.
 A flow chart adds to the pictorial representation of a process
diagram using standard flow symbols. Areas where non-value
adding steps or processes exist can be targeted for improvement.
 List the steps involved in a process using direct observation,
brainstorming or consultation with the people responsible for each
step.
PROCESS MAPPING
Stop and - start. This circle shows the start or end of a process.

Activity. This rectangle reflects a single process step. You briefly

Batch Loaded
describe the step inside the diamond in the form of a question. Each
alternative path or branch is labelled with a possible answer. The answer
determines the path or branch to the next step.

Yes
Acceptable
Decision. This diamond signifies that a decision is made here. It
indicates a branch point. The nature of the decision is written inside
No

Wait. This symbol signifies a delay or waiting period.

Arrows. These point out the direction of flow from one activity to the next.

Document. This symbol signifies the need to document an activity.

STANDARD SYMBOLS

Oval: Show the input to start the process

Arrows show
direction or the flow
of the process
Box or Rectangle: Show a task or
activity performed in the process

T
E
M No
P Diamond:
Shows where a Yes/No question is asked
L or a decision is required
A
T
E
Yes
Flow
Make sure every
Chart feedback loop is
Usually only one arrow out of an activity box.
If more than one arrow, you may need a closed, Every path
decision diamond. takes you either back
or forward to another
step

Oval: Show the output at the end of the process

PROCESS MAPPING
Here’s how these symbols typically flow into one
another.

Start Activity Wait Decision Document Stop

Yes

No
IDENTIFYING WASTE

NVA VA VA VA
INVOICES Log Log GR Make
Sort mail
order no. note payment
CASH
TRANSFER
No order No goods received

enough info YES enough info YES

to process ? to process ?

NO NO

NVA
return to
user
REWORK LOOPS

Operation Operation Next

Accept ?
A Yes B Process

No

Rework Analyse

Scrap
Waste

Rework Loop
LEAN - 5 S &
7 WASTES
LEAN IN ACTION

 Nissan

Mini Lean Video

Lean Thinking
Selective History
Toyota Production System

Manufacture

Machine that Changed the world

Lean Thinking

Services

Government
LEAN THINKING

• Lean is completely about CULTURE, or the “Thinking Way”.

• Lean is not a part of what we do, it is in everything that we do, it is our way of
thinking.
• It is an embedded culture of understanding the customer’s needs, continually
striving to reduce waste and optimising the performance of process, people and
infrastructure.
• At all levels there is a strong desire to be better.
• A culture of Lean is visibly prioritised and practised from the top to the bottom of
the workforce.
• The key is understanding the customer and delivering his requirements.
SOLID FOUNDATIONS OF LEAN
Continuous Improvement

Pull / Kanban Cellular / Flow TPM

Value Stream Mapping

Quality at Source SMED / Quick Changeover

Visual Management Batch Reduction Teams POUS

WorkPlace / Plant
5S system Standard Work
Layout

Management System
Cultural System
HOUSE OF LEAN

78
5S LEAN METHODOLOGY

1. Sort: Remove items that are not used

2. Set in Order: Organize, Arrange, Label, Outline

3. Shine: Regular Cleaning - Daily

 Inspect while you clean, ID and Fix Problems

4. Standardize: Work Structure to support new habits -

Reminders: Signs, Banners, Posters

5. Sustain: Educate, Train, Document, Monitor

THE 5 STEPS…..
• Sort: Perform “Sort Through and Sort Out,” - red tag all unneeded items
and move them out to an established “quarantine” area for disposition
within a predetermined time. “When in doubt, move it out!”
• Straighten: Identify the best location for remaining items and label them.
“A place for everything & everything in its place”.
• Shine (Systematic Cleaning) Clean everything, inside and out. Use visual
sweeps to ensure everything is where it should be and that junk is not
accumulating.
• Standardize Create the rules for maintaining and controlling the first 3
S’s. Use visual controls.
• Sustain Ensure adherence to the 5S standards through communication,
training, self-discipline and rewards.
SORT
 When in doubt, move it out
 Prepare red tags
 Attach red tags to unneeded items
 Remove red-tagged items to “dinosaur burial ground”
 Evaluate / disposition of red-tagged items
 5S - Sort
 Agree which items are necessary for the day-to-day operation and return
them to the work station.
 Everything returned to the work station should be related to the work being
done there and needed for current production
 As items are cleared/sorted, and
prior to putting back into the work
environment, ‘clean and check’
 Set the standard condition:
quantity, size, location, etc.
 Sort: Sometimes needed
 Identify items not needed to perform your job under normal circumstances
but used periodically
 Clean, check, and classify before storing
 Move to a more organized storage area away from the immediate work area
 Set the standard
condition: quantity,
size, etc.
 Sort: Items not needed

 Clear-out/sort non-essential items (e.g. tools, equipment, inventory, paper,

rubbish, furniture).

 By being present, such non-essential items:

 create clutter
 can create unsafe working conditions
 take up space
 can hinder efficient operations
 often will be moved from one place to the next
 can hide other problems within the work place
 Sort: Benefits

 More available space

 Safer workplace
 Easier to visualize process
 Discrepancies are obvious
 Organize only what is needed
 Team effort creating sense of
ownership
 A standard is set regarding inventory levels, tools required, and
quantity required.
 Sort: Tips for Managers
When implementing “5S”, one of the biggest mistakes made by
management is failure to involve employees from the start.
 Sorting must be done by the employees who do the work in a specific
area. If supervisors, managers or visitors from other departments do
the sorting, employees will feel disrespected and will not buy in.
 Expect that some employees will express concern about sorting.
Listen carefully to any concerns, but don’t be afraid to remove items
that are clearly not needed.
 Permanently remove items that are planned for disposal. Don’t move
them to another area. This is just “pushing the dirt around.”
 If disposition does not occur, employees will sense a lack of
management commitment.
Sort: Before and after
What about your
computer files?
STRAIGHTEN

 Make it obvious where things belong

 Lines
 Divider lines
 Outlines
 Limit lines (height, minimum/maximum)
 Arrows show direction
 Labels
 Color coding
 Item location
 Signs
 Equipment related information
 Show location, type, quantity, etc.
 Inventory levels – max/min
 5S - Straighten
 Achieve visual management
of inventory: raw material,
work in progress, and finished
goods
 Straighten the Workflow,
make processes flow.
 Remember the 4R’s: Right
Item, Right Place, Right
Quantity and Right Method.
 Standardize the outcome of
your “Straighten” activities
 6S - Straighten
Use visual methods to clearly show where each item should be
located:

Binder
Visual
Management
System

Shadow boards
 Straighten: Benefits
 First-In-First-Out (FIFO) can be easily implemented and controlled – visual
management of inventory and stock
 Reduction in set-up times
 Increased productivity because it is clear when items are indeed unavailable.
 Allows visual management of the process.

 Improved work space utilization

 Easier clean-up process

 Increased employee satisfaction – better place to work

 Improved customer perception

 Improved Process and Product Quality

SHINE
 Clean everything, inside and out
 Inspect through cleaning
 Prevent dirt, and contamination from reoccurring

 Results in
 Fewer breakdowns
 Greater safety
 Product quality
 More satisfying work environment
 Shine: Objective

 Create and maintain a spotless workplace

 Ensure that all items are clean and ready to be used

 Make problems visible and evident

 Identify and eliminate causes of dirt and grime – remove the need to
clean
 Improve safety and productivity, and impress customers

 Create and maintain a standard

 STANDARDIZE: OBJECTIVE

 It can prove difficult to maintain the 5S standard that has been set during the
first four S’s. (Sort, Straighten, Shine, Safety)

 The next step is to focus on standardizing best practices. The use of forms,
diagrams, checklists and clearly defined roles and responsibilities will help
ensure that everyone in the work area can maintain the 6S standard.

 It is important that this information is effectively communicated to people

within the work area and to those people who interact with the work area.

 Integrate the 4S duties into everyone’s day to day work. We should each
have regular daily or weekly 4S activities as part of our job, irrespective of
grade or function
STANDARDIZE:
WHERE TO START

 Make sure you have attained the conditions of the first 4S’s

 Additional “4S” work may be necessary to reach the standards you

have set

 Make it easy (visual) to conform to the standard

 Maintain and monitor these “4S’” condition by audits, tracking, and daily
follow-up

 Decide who is responsible for keeping each element of the first 4S up to the
required standard and ensure they do it
STANDARDIZE:
THE PROCESS

 Pre-work set-up checklist (do you have all the tools, materials and equipment
ready?

 Standardize location, number and position of all items. This includes

standardization of colours, shapes, symbols, etc.

 Standardize cleaning & work procedures and make them visible

 Display the 5S standard of the workplace

 Standardize the visual management system

 Standardize regular audits on each workstation “5S” performance

 STANDARDIZE:
LOCATION, IDENTIFICATION

Size and
colour of
containers
Standardize:
Tracking our Progress

A 5S board ensures
everyone’s involved.
SUSTAIN
Determine the methods your team will use to maintain adherence to the standards

• 5-S concept training

• 5-S communication board
• Before and after photos
• One point lesson
• Visual standards and procedures
• Daily 5-minute 5-S activities
• Weekly 5-S application
 SUSTAIN
Ensuring consistent adoption and use of “5S” by all personnel who are either
involved directly with the workplace or who interact with the workplace.

 Train all personnel in “5S” - it’s not just good housekeeping!

 Give ownership of the “5S” standard.

 Consistently enforce the “5S” standard and culture.

 Establish Weekly and Monthly Feedback on Performance by work

area.

 Conduct independent “5S” audits.

 Always seek to improve the “5S” standard.

 SUSTAIN: THE PROCESS

 Get management commitment – it’s a “culture”

 Get everybody involved - ownership

 Promote “6S” in the organization, Do it all the way – in all areas

 Make sure inspections are carried out, documented, and reported according
to standard

 Keep encouraging and recognising those who participate and never ignore
those who slacken - Reward and recognise efforts of staff.

 Use Information Boards to provide recognition to the team and to show

visitors what has been achieved
 SUSTAIN: THE PROCESS

 Conduct “walk round” by senior Management

 Conduct monthly review by the “5S” committee and incorporate in

management performance reviews

 Use the results of “5S” audits as a platform to launch other continuous

improvement programs/initiatives

 Develop and maintain habits through training and discipline (at all times)

 Use visual rather than verbal communication to train for new procedures.
 IDEAS FOR SUSTAIN

Link it to your
current
Management
System…..
VISUAL MANAGEMENT
IMPLEMENTATION
 Develop a map identifying the “access ways”(aisles, entrances, walkways
etc.) and the “action” areas.
 Perform any necessary realignment of walkways, aisles, entrances.
 Assign an address to each of the major action areas.
 Mark off the walkways, aisles & entrances from the action areas
 Apply flow-direction arrows to aisles & walkways
 Perform any necessary realignment of action areas.
 Mark-off the inventory locations
 Mark-off equipment/machine locations
 Mark-off storage locations (cabinets, shelves, tables)
 Color-code the floors and respective action areas
VISUAL MANAGEMENT
Visible Information
7 WASTES MUDA
PEOPLE

Motion Waiting Over EQUIPMENT/IT

Time Production

Processing
Time

Defects

Inventory MATERIAL
Walking Waiting Large Batches
Lifting Set up time To stock
Putting down Lead times Wrong Qty.
No proximity Watching Ignoring customer
Change demands Over doing Transportation
Overs Work Rework
To much detail Poor customer
Over attention Satisfaction Over stocks Movement
To detail Errors WiP Handling
Storage Carriage
Fetching
TYPES OF WASTE (MUDA)

1. Overproduction
2. Excess inventory
3. Defects
4. Non-value added processing
5. Waiting
6. Underutilised people
7. Excess motion
8. Transportation
EIGHT SERVICE INDUSTRY
WASTES

1. Errors in documents
2. Transport of documents
3. Doing unnecessary work not requested
4. Waiting for the next process step
5. Process of getting approvals
6. Unnecessary motions
7. Backlog in work queues
8. Under-utilised employees
EXAMPLES OF OFFICE PROCESS
WASTES

 Too many signature levels

 Unclear job descriptions
 Obsolete databases/files/folders
 Over photocopying, unused printed materials
 PO’s not matching quotation
 Errors – typo’s, misspelling, wrong data
 Waiting – information, at meetings etc.
 Poor office layout
 Unnecessary e mails
MANUFACTURING VS. SERVICE

 Manufacturing:
 Inventory, Raw Material levels and re-order

 The famous “Rivers of Inventory” speech

 Stripping out raw material had a massive impact in exposing processes!

 Service:
 Demand Forecast, Staffing levels

 Under or Over Utilised staff

 Hasn’t quite had the same impact!

 What is the Set challenging aims
Target? - is it worth doing? Is it feasible? Not “change for change's sake”

Identifying Identifying opportunities, methods, change ideas THE

Ideas - what has worked for someone else? What might work for us?
‘TRIAL
Measuring
Progress
Identify how you will measure progress
- knowing what’s happening: Timing, Quality, Cost targets?
AND
LEARNING’
Testing the
Change
Planning and conducting the Testing of the change
- what are we testing for? start small, reduce risk APPROACH
Implementing Implementing and sustaining change
& Sustaining - change in systems and processes, developing skills and abilities
CONTINUOUS IMPROVEMENT AND “PROBLEM SOLVING”

• A ‘Problem Solving’ culture is essential for Lean and Continuous

Improvement in Manufacturing. This requires:
1. Openness to talking about problems.
2. Ability to identify problems, particularly before they grow into a crisis is
one of the most important skills leaders and their organizations can
develop. In lean thinking, all problems can be attributed to some form
of waste, variability, or overburden.
3. Understanding that small problems matter.
4. Commitment to approaching problems methodically.
5. Recognition that observations are often more valuable than data.
CONTINUOUS IMPROVEMENT AND “PROBLEM SOLVING”

Key take aways:

 Everyone encouraged to identify problems and Compare this sense of
suggest solutions role and responsibility
 Usually they address small problems that to the workaround,
interfere or cause waste in the daily work. not-my-job, nothing-I-
 Everyone has a clear understanding of what
can-do attitudes that
‘value’ means sometimes prevail in
 Some require investment, some are ‘just-do-it’
some organisations
PROBLEM SOLVING CULTURE
 Building a problem-solving culture that lasts is not
about fixing particular problems but about always
striving to do things better.
 It will develop the capabilities of people, and foster
engagement and enthusiasm.
 Leaders don’t have the answers - they should focus on
defining targets, creating a safe environment for
raising problems, ensuring people have enough time
for problem solving, helping them develop their skills,
and facilitating process change where needed.
CONTINUOUS IMPROVEMENT CULTURE

How can we foster a CI Culture?

1. Start by changing what people do rather
than how they think
2. It’s easier to act your way to a new way
of thinking than to think your way to a
new way of acting
3. Give employees the means by which
they can successfully do their jobs
4. Recognize that the way problems are
treated reflects your corporate culture
116
CONTINUOUS IMPROVEMENT CULTURE
CONTINUOUS IMPROVEMENT CULTURE

• Continuous Improvement Tools are not tools for ‘improving the process.’ They are
tools for making problems visible and for helping people think about how to solve
those problems.
• If the tools do not change the way people who do the work think about their own
processes, the tools are a failure.
• The work group must develop problem-solving skills to identify the root cause and
solve the real problems
• It follows that direct and support Managers must understand how to use the tools to
unleash the creativity and motivation of people. If not, they are not leading change -
they are just administering a bureaucratic process.
118
Your Personal Impact: 119

Group Discussion

Making Interventions

You are aware that members of your team are not very happy about the planned changes. They are moaning
and making very little progress. Whenever they encounter a problem, they look for someone outside the team
to blame. You know that they are capable of dealing with most of the challenges associated with the change
and that it will be beneficial for them in the end. However, their negative attitude is threatening to cause the
change programme to fall behind schedule or fail.

What could you do to change this situation?

Time allowed: 10 minutes. Please nominate a member of your group to speak on behalf of your group
 • NOT just a few “tools” to use
• NOT a group of best practices to implement
• NOT just a bunch of projects to conduct
Continuous • NOT experts telling you what to do
Improvement • NOT just a process improvement methodology
NOT just for “front line” staff
is... •
• NOT just about speed and efficiency
• NOT about getting more out of our people or processes
• NOT a silver bullet or an easy transformation
 …..about People!!!!
• It’s about creating a culture based on behaviors.
• It’s about respect for people and a constant challenging to
do better at every level of the organization.
• It’s about training workers so they possess the proper
Continuous skills and tools to allow them to make the correct
decisions for achieving continuous improvement
Improvement • It’s about developing teamwork throughout the
is... organization to participate in continuously improving the
enterprise
• It’s about emphasizing leadership development and
making leaders capable of delivering improvements.
• It’s about a “Management System” designed around
people – Communication and support