Kt Intro Master V7

Table of Contents

• KT Introduction………………………………………………. 3~6

• KT Services Summary……………………………………… 7~8

• Our Competitive Differentiation……………………………. 9~12

• Analysis, Strategy & Business Process Improvement…... 13~16

• Problem Solving, Decision Making & Project Mgmt……... 17~22

• Daily Management & Change Management……………... 23~28

• Operational Excellence, Maintenance & Six Sigma……... 29~35

• Clients Served & Operational Excellence Results 36~37

130-20-P326408 Copyright © 2008 Kepner-Tregoe, Inc. All Rights Reserved 2

About Kepner-Tregoe

• Founded in 1958 by Drs. Charles Kepner and
Benjamin Tregoe, pioneers in managerial Problem
Solving and Decision making research and the
authors of the “Rational Manager.”

• Authored many other best-selling management books
to include: “Implementation,” “How Organizations
Work,” “The Art and Discipline of Strategic
Leadership,” “The Rational Project Manager”

• More than 11 million managers and staff trained in
systematic Problem Solving & Decision Making
(PSDM) thinking worldwide


About Kepner-Tregoe continued

• Global footprint with offices in 18 countries delivering
services in 14 languages with 300-plus professionals
(Additional affiliate offices in 23 countries.)

• For 50 years Kepner-Tregoe (KT) has transferred the
capability of, and delivered to our clients, a series of
systematic “process” approaches to efficiently and
effectively:
• Resolve the most challenging problems;
• Make difficult consensus based decisions;
• Manage complex engagements; and
• Address critical business and human performance
issues.


Our Value Proposition

• Today we are leveraging our core technologies through our
operations excellence consulting, coaching and training
services to address complex Strategic, Operational,
Financial, Cultural and Human Asset performance issues.

• To achieve dramatic and sustainable results, we work side by
side with our clients and apply a “Learn-Do” approach that:
• Minimizes our client’s investment;
• Maximizes knowledge and skill transfer;
• Ensures sustainable consensus built solutions; and
• Optimizes bottom line operational and financial performance
results with a 5x or greater ROI


KT’s Mission: To Improve Our Client’s
Overall Performance Through:

Transferring
Creating
Knowledge and
Strategic Clarity, 5X + ROI
Capability
Alignment, and
Accountability

Knowledge and Capability
Operational and Financial

Improving
Operational,

Development
Performance

Financial &
Cultural
Performance

Reducing Operating Costs
Soft Engineering & Organization Development Solutions
Soft Engineering & Organization Development Solutions

Project & Change Management Execution via KT Process
Project & Change Management Execution via KT Process

Time

Services We Provide

Our robust service offerings integrate mainstream operations
excellence solutions with KT’s organizational development and
core process disciplines to create true differentiated value for our
clients.
Strategy & Goal Deployment

Soft
Project Operations
Engineering &
Management Excellence
Change Mgmt

Problem Solving & Decision Making
(Rational Thinking)

Our services include:

• Business and Operations Improvement Strategy

• KT Process (Core Disciplines)
• PSDM: Situation Appraisal, Problem Solving, • Consulting
Decision Making and Risk Management
• Training
• Incident Mapping • Certification
• Daily Management • Coaching
• Human Performance System Improvement
• Leadership Coaching and Managing Involvement Diagnostic—
• Project and Change Management Implementation
and Cultural
• Operations Excellence
Transformation
• Lean Manufacturing and Lean Office
• Maintenance Management Excellence
• Business Process Improvement
• Six Sigma
• Supply Chain Optimization
• Integrated Product Development

Our Competitive Differentiation
Consulting Services
• Complex change requires the
right balance of technical
What improvements do I need to engineering, soft engineering &
Make to achieve X?
organizational dynamics focus
and solutions

What is the technical solution
• Competitors often spend >85%
(Design) to achieve X?
of their time on the technical
issues/solutions
How do I technically implement
• Many research studies show that
the designs to achieve X?
complex change fails due to
failures in addressing the soft
engineering, organizational
How do I successfully orchestrate
dynamics and overall change
all of the variables to achieve X?
management issues

Consulting Services
• KT provides a balanced
approach:
What improvements do I need to
• Strategic alignment and goal
Make to achieve X?
deployment
• Robust soft engineering,
organizational development and
What is the technical solution change management
(Design) to achieve X? methodologies
• KT rational process trained
personnel
How do I technically implement • Technical subject matter experts
the designs to achieve X? in Op-Ex disciplines that know
how to coach and orchestrate
change
• Learn-do approach
How do I successfully orchestrate
• Quantifiable and sustainable
all of the variables to achieve X?
results driven solutions


Technical KT Process
Subject Matter Expertise Subject Matter Expertise
Technical business How we execute change
solution and manage
analysis, design and the organizational
implementation dynamics

Blended Technical and KT Process
Knowledge and
Capability

High Performance Transformation Coach

How We Execute Transformation

Provide the
Select the Select and Achieve and
Apply the Right
Right
Right Train the Sustain the
Roadmap and
Management
Projects Right People Right Results
Tools
Support

•• Ensure project links •• Ensure the right •• Lean •• Drive Daily Mgmt. & •• Implement effective
Ensure project links Ensure the right Lean Drive Daily Mgmt. & Implement effective
with the organization’s leadership and
with the organization’s leadership and Continuous Imp. control plans
Continuous Imp. control plans
•• BPI
BPI
strategy & goals ownership
strategy & goals ownership •• Align org. & individual •• Conduct regular
Align org. & individual Conduct regular
•• Maintenance
Maintenance
•• Select people with
•• Ensure project has a Select people with
Ensure project has a KPIs and goals training focused on
KPIs and goals training focused on
•• Six Sigma
the capability to Six Sigma
financial benefit to the the capability to
financial benefit to the the process
the process
•• Coach leaders in req.
Coach leaders in req.
make change
business make change •• Supply Chain
business Supply Chain
actions & behaviors •• Review the system
actions & behaviors Review the system
•• Create a capable
Create a capable
•• Prioritize projects •• Integrate Prod. Dev.
Prioritize projects Integrate Prod. Dev. effectiveness
effectiveness
•• Review progress and
support team Review progress and
support team
based on value,
based on value, •• PSDM Deployment
PSDM Deployment quarterly
quarterly
manage change
manage change
•• Dedicate enough
resources req’d, timing Dedicate enough
resources req’d, timing
•• PM Optimization
PM Optimization •• Continually identify
time for training Continually identify
time for training •• Check real business
Check real business
•• Select projects with key
Select projects with key
and launch new
Any and launch new
•• Ensure the right impact (Finance)
Any
management buy-in Ensure the right impact (Finance)
management buy-in
projects
support resources projects
support resources •• Continuously
•• Project has cultural Continuously
Project has cultural Transformation
Transformation
are available
are available communicate
impact & sustainability communicate
impact & sustainability
KT Process is built-in throughout the entire Transformation Project!

Analysis,
Strategy &
Business
Process
Improvement

Enterprise Model: Analysis, Strategy, & BPI
The Enterprise Model is the foundation/structure that underpins our analysis,
strategy development and Business Process Improvement services.
Society/ Parent
Government The Economy
Community Corporation
Regulations/Policies Economic Conditions Concerns Priorities

The Business Capital

Leadership
Shareholders
Technology
Resource Equity/Dividends
People
Strategy
Providers
Money

Market
Business Processes Customers’
Needs Customers
(downstream
Suppliers’ Customers
Products/ industry
Suppliers Raw
Services value chain)
Information/ Organization
Goals/
(upstream Material/ Human
Culture
Structure/
Measure- Knowledge
industry Component Capabilities Roles
ments Management
value Suppliers
chain)

Issue Resolution

Competitors


Strategy Development

Phase One Phase Two Phase Four Phase Five
Phase Three
Phase One Phase Two Phase Four Phase Five
Phase Three
Strategic
Strategic Strategy Strategy Strategy
Strategy
Strategy Strategy Strategy
Intelligence Strategy
Intelligence Formulation Implementation Monitoring and
Implementation
Gathering and Formulation Implementation Monitoring and
Implementation
Gathering and Updating
Planning
Analysis Updating
Planning
Analysis

•• Build leadership •• Develop a strategic • Develop Master •• Provide Design & •• Review and monitor
Build leadership Develop a strategic Provide Design & Review and monitor
alignment regarding all profile to include:
alignment regarding all profile to include: Strategic Implementation original assumptions
Implementation original assumptions
elements of the
elements of the •• Values/Guiding Implementation Support of the strategy
Values/Guiding Support of the strategy
enterprise model based
enterprise model based principles
principles Plans to include: •• Drive Daily Mgmt. & •• Review strategy
Drive Daily Mgmt. & Review strategy
on rigorous analysis of:
on rigorous analysis of: •• Vision, Mission
Vision, Mission • Strategic Actions Continuous Imp. implementation
Continuous Imp. implementation
•• Internal & Driving Force
Internal & Driving Force results against
results against
• Infrastructure/ •• Coach leaders in req.
Coach leaders in req.
performance
performance •• Alternative
Alternative targets and market
targets and market
Management actions & behaviors
actions & behaviors
Market
•• Industry dynamics Market
Industry dynamics changes
changes
• Critical Issue •• Review progress and
Review progress and
Strategies/B.U.
Strategies/B.U.
•• Competition
Competition •• Refine projects and
Refine projects and
Resolution manage change
manage change
•• Product/Service
Product/Service
•• Customer approaches as
Customer approaches as
Market scope • Project Portfolio •• Check real business
Market scope Check real business
behaviors
behaviors required
required
Management impact (Finance)
•• Core impact (Finance)
Core
•• Identify and launch
Identify and launch
Competencies
Competencies • Team structure and •• Continuously
Continuously
new projects
new projects
•• Overarching development communicate
Overarching communicate
Strategic Issues
Strategic Issues • Goal Deployment •• Implement controls
Implement controls

We serve a variety of businesses with Strategic Alignment and
Development from $100M businesses through Fortune 1000.

Complexity Reduction & True Cost Analysis

Understand which products
(+/-) (+)
are not adding value and
Low Volume, High Volume,
High Margin High Margin determine what to do…

(+/-)
(-) Understand your true cost of
High Volume,
Low Volume,
products and services….
Low Margin
Low Margin

Value Stream: ABC Product Family
Possible Actions: Total Cost Total % Var. O.H. Factor Amt +/- Fixed O.H. Factor Amt +/-
Top 10% $9,411 66.90% $6,715 -0.12 $806 $2,696 -0.20 $539
Strategy Review 2nd 10% $2,119 14.80% $1,512 -0.06 $91 $607 -0.10 $61
3rd 10% $1,049 7.30% $748 0 0 $300 0.00 0
Customer Review 4th 10% $616 4.30% $439 0.16 $70 $176 0.28 $49
Re-price 5th 10% $427 3.00% $305 0.26 $79 $122 0.65 $80
6th 10% $272 1.90% $194 0.55 $107 $77 1.10 $86
Reduce Costs 7th 10% $171 1.20% $122 1.2 $149 $49 2.25 $110
Redesign Product 8th 10% $111 0.80% $79 1.8 $143 $32 3.20 $102
9th 10% $68 0.50% $48 3.6 $175 $19 5.20 $102
Substitute Product 10th 10% $30 0.20% $21 7.98 $175 $9 9.04 $71
Manage via Inventory Deciles are product groupings based on % of Total Sales Revenue
Outsource Too Much Overhead Allocated (Redistribute to Yellow Product Groupings)
Appropriate Overhead Allocation
Do Nothing Too Little Overhead Allocated
Drop SKU Dollar values: (,000)

Select
Rational Process
Services:
Problem Solving,
Decision Making &
Project Mgmt.

Rational Process Implementation

We work with our clients to imbed the knowledge and use of Rational
Process in their organization via the design and/or execution of:

• Training and development of users ~ experts to build a capable infrastructure
• Performance systems that drive the desired actions and behaviors
• Business processes that promote and reinforce the use of Rational Process
• Hands-on coaching to imbed deep Rational Process application capability

Performance
System Integration

Rational Process Business Process
Skill Development Integration

On-the-job Coaching


Problem Solving Decision Making Model
We help our clients:

• Learn and apply our Rational
Thinking foundational tools to:
• Appraise situations to clearly
understand concerns, set
priorities and plan next steps
• Analyze and solve problems
to root cause
• Make the best balanced
unbiased decisions
• Assess and plan for risk to
prevent and mitigate negative
results
• Assess and plan for
opportunities to promote and
capitalize on positive results


Incident Mapping
Chosen Temporary
Main Problem
action
+ Contributing Breached
Circumstance barrier
Chosen Contingent
Known cause
action
Problem
- Constraining
owner
Circumstance

Possible
Known cause after Chosen
barrier
Problem Analysis Barrier
Possible
Possible Problem
barrier
barrier owner

Chosen Preventive
Possible Cause unknown
action
action problem

Incident mapping combines 5 Why Analysis and Breached
Barrier Analysis with numerous visual queues to flow chart
the root cause to complex failures and incidences!

Project Management Model
• We help our clients:

• Learn and apply robust
project management
methods, tools and
solutions:
• Small to large scale
multi-million dollar
projects
• Customized to the
needs of each project:
simple/complex/unique
• On-site full time support
through periodic
coaching
• Train-the-trainer
certificaiton
PMI
• Public and on-site
Accredited! training

Project Portfolio Management

Projects
Projects

Improvement

Capital
Short Term
We help our clients:

Decision Analysis
Initiatives
R&D

Projects
Projects &
• Evaluate & prioritize
Initiatives
projects & initiatives
against their strategy,
goals and objectives
Strategy, Goals
& Objectives • Further refine
prioritized projects &
initiatives against
Organizational overall capacity
Capacity/Resources
• Plan & Execute
Planning & projects & initiatives
Execution

Daily Management
& Change
Management

Daily Management

Business Strategy
and Goal Deployment
An
KPI Daily and Monthly
aggressive
DELIVERY
2200
2150
2100

1~2
2050
2000
1950
1900
1850

Team Performance
1800
1750
1700
1650
1600
1550
1500

strategic
Units Per Day
KPI’s/
1450
1400
1350
1300

Reviews and Action
1250
1200
1150
1100
1050
1000
950
900
850

Category
800
750

Planning
700

Daily and
650
600

alignment,
550

Cascaded
500

1st

2nd

3rd

Total
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 31
Day

Weekly
Pareto
Goals and performance
DELIVERY PARETO ANALYSIS
F ailure Type Quantity 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 1100 1150 1200 1250 1300 1350 1400 1450 1500

No Material 454
Wo rkcenter 1

Corrective
No Operator 249

No Scheduled Work 189

Other 361

KPI’s No Material 689
Wo rkcen ter 2

No Operator 149


management
Other 154

Safety
No Material 621
W orkcenter 3

No Operator 256

and Preventive

Other 121

No Material 821
Wo rkcen ter 4

No Operator 107


Other 212

Equipment
No Material 456
W orkcenter 5

No Operator 520

and

Actions
Other 47

50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 1100 1150 1200 1250 1300 1350 1400 1450 1500

Corporate
Minutes Lost

Quality Action Plan
continuous
Corrective Action Plan for: __________________

PSDM/
Who is Responsible
Issue Who Identified
# Issue Description Act ion/Solution Required (Contact Number) Due Date Update/Results Achieved Status
Date The Issue

Delivery
1

2

Division
3

improvement
4

ATS
Cost
5

6

7

8

system that
9

Solution is Validated
No action Assessing Issue Identified Potential Solution Implemented
& The Issue is Resolved
& Deter mining Solution (s) & & Testing Results
taken
Course of Action Implementing

Real Time
Business
Hr x Hr Board
drives
Operational Corrective
Unit Hour by Hour Board

Performance
Process:________________________ Date:_________ Shift:__________

Performance

Action and everyone to
Time Max Should Actual
Range Perf. Perf. Perf. Cause and Action

Tours 2x/Day 100 85 80
7:30 8:30 Lost 10 min on Set-up….Improve 5S

100 85 90
8:30 9:30

Problem
100 85 93
9:30 10:30

Department
Roller failure lost 15 min…Called technician & applied

achieve
100 85 75 PA
10:30 11:30

100 85 70 Changed roller and updated PM process…Lost 15 min
11:30 12:30

100 85 90
12:30 13:30

Solving
ty
ar
Be
t B
x
o

100 85 85
13:30 14:30
Received bad material lost 10 min…contacted
100 85 80 supervisor
14:30 15:30

optimal
100 85 75 Supervisor resolving material issue upstream
15:30 16:30
Supervisor resolved material issue
100 85 70 upstream…reworked lot…lost 35 min total
16:30 17:30

Individual 100 85 90
17:30 18:30

100 85 85
18:30 19:30

Total 1200 1020 983

performance
every day!
Operations Excellence Guiding Principles

The Critical Success Factors of Strategy
Implementation & Transformation

Change Organizational
Management Dynamics

Soft Daily
Engineering Management

Change Management

Change Management is the process of aligning an
organization’s people and culture to the changes in strategy,
structure, systems and processes.

We apply tools and methods to help identify and address your
most challenging impediments to change!

Successful Change =

N x V x M x C x PR x L x R x Mo x Cap x I
L: Leadership
N: Need
R: Risk
V: Vision
Mo: Momentum
M: Means
Cap: Capacity
C: Communication
I: Involvement
PR: Performance Measures
& Rewards

Human Performance System: HPS
HPS Training,
Feedback
Design,
* How appropriate is the Feedback?
* How well is the Feedback
Situation Implementation
used to influence performance?
* How clear are the
& Leadership
performance expectations and

Fb
how well are they understood?
Coaching
* How clear is the signal to
perform?
Consequences
*How well does the work
environment support expected * How well do the
performance? Consequences
encourage expected
performance?

S P R C±
Performer Response
* How capable is the * What is the observed performance?
Performer to meet the * How does it compare with
performance expectations? expectations?


Managing Involvement
Commitment Conflict
A1
Superior Without Goal About
Solution Information Structure Commitment Participation Agreement Alternatives
Does it make a Do you now Do you know Is the Will the group Is there general Is there likely to
big difference have enough exactly what commitment of commit to a agreement be conflict
which course of information to information is others critical to conclusion made about goals about Resolve
action is find a superior missing and effective by you without between the alternatives Alone
adopted? solution? how to get it? implementation? their active group and the within the
participation? organization in group? A2
this situation?
?

no A1, A2, C1, C2, G2
yes Question
yes Individuals
G2
no
C1
yes
no no A1, A2, C1, C2, G2
no
yes
ye
s s
ye A1, A2, C1, C2
no Consult
yes yes G2 Individuals
no
no
no
yes C2 C2
yes
yes no
C1, C2
no
yes
Tools and yes
A2, C1, C2, G2
no no Consult
Group
A2, C1, C2
methods to no
G2
yes C2, G2
yes
aid and coach yes no
C2
no no
leaders! Resolve
G2
yes
as Group


Select
Operational
Excellence
Services

Operations Excellence Transformation
Methodology

Transformation
Through
Targeted
Initiatives!

• Training
• Certification
• Coaching
• Consulting


Standardization, Variation Reduction & Six Sigma

KT’s Problem Analysis combined with Six Sigma!
A blended approach to:

• Define product/
process requirements

• Drive product/
process standardization

• Eliminate product/
process variation:
• Special Cause
(Problem Analysis)
• Common Cause
(Six Sigma)

Maintenance Management Transformation
Methodology

Transformation
Through
Targeted
Initiatives!

• Training
• Certification
• Coaching
• Consulting


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