Business Performance Improvement Models

© Operational Excellence Consulting. All rights reserved.
This presentation is a collection of PowerPoint diagrams and
templates used to convey 25 different business performance
improvement models.
Business Performance
Improvement Models
Diagrams and Templates of Business
Performance Improvement Models

© Operational Excellence Consulting. All rights reserved. 3
Contents
ISO 9001 Quality Management Model Plan-Do-Check-Act Model
Baldrige Performance Excellence Model PDCA Problem Solving Process
EFQM Business Excellence Model Total Productive Maintenance (TPM) Pillars
Balanced Scorecard DMAIC Process Improvement Model
Benchmarking Model Law of 10
Lean Management Model (TPS) Training Within Industry (TWI)
Lean Leadership & Kaizen Model A3 Storyboard Template
Value Stream Mapping PACE Prioritization Matrix
Eight Types of Waste Payoff Evaluation Matrix
Lean Levers Cost of Quality Model
Gemba Framework SERVQUAL Model
Cause & Effect Diagram Change Management Model
5S Principles

ISO 9001 quality management system establishes proven
processes that meet customer requirements
Value-adding activities
Information flow
Input Output Product/
service
Product/
service
Continual improvement of the
Quality Management System
Continual improvement of the
Quality Management System
CustomerRequirementsCustomerRequirements
CustomerSatisfactionCustomerSatisfaction
Management
Responsibility
Resource
management
Measurement,
analysis &
improvement
Product
realization

Contents
5S Principles

Insert Header
4
Measurement, Analysis & Knowledge Management
4
Measurement, Analysis & Knowledge Management
2
Strategic
Planning
2
Strategic
Planning
5
Workforce
Focus
5
Workforce
Focus
3
Customer
Focus
3
Customer
Focus
6
Operations
Focus
6
Operations
Focus
1
Leadership
1
Leadership
7
Results
7
Results
Organizational Profile:
Environment, Relationships & Strategic Situation
Insert bumper – takeaway statement
Baldrige Performance Excellence Model (TEMPLATE)

EFQM Business Excellence Model
Enablers Results
Leadership
People
Strategy
Partnerships
& Resources
Key
Results
Processes,
Products &
Services
People
Results
Customer
Results
Society
Results
Learning, Creativity & Innovation

Contents
5S Principles

Insert Header
FINANCIALFINANCIAL
BUSINESS PROCESSESBUSINESS PROCESSES
Vision
and
Strategy
Vision
and
Strategy
To succeed financially, how
should we appear to our
shareholders?
LEARNING & GROWTHLEARNING & GROWTH
CUSTOMERSCUSTOMERS
To achieve our vision, how will
we sustain our ability to
change and improve?
To achieve our vision,
how should we appear to
our customers?
To satisfy our shareholders
and customers, what
business processes must
we excel at?
Source: Kaplan & Norton
Balanced Scorecard (TEMPLATE)

Contents
5S Principles

1. IDENTIFY WHAT IS TO BE BENCHMARKED1. IDENTIFY WHAT IS TO BE BENCHMARKED
2. IDENTIFY COMPARATIVE COMPANIES2. IDENTIFY COMPARATIVE COMPANIES
3. DETERMINE DATA COLLECTION METHOD AND COLLECT DATA3. DETERMINE DATA COLLECTION METHOD AND COLLECT DATA
4. DETERMINE CURRENT PERFORMANCE “GAP”4. DETERMINE CURRENT PERFORMANCE “GAP”
5. PROJECT FUTURE PEROFMANCE LEVELS5. PROJECT FUTURE PEROFMANCE LEVELS
6. COMMUNICATE BENCHMARK FINDINGS AND GAIN ACCEPTANCE6. COMMUNICATE BENCHMARK FINDINGS AND GAIN ACCEPTANCE
7. ESTABLISH FUNCTIONAL GOALS7. ESTABLISH FUNCTIONAL GOALS
8. DEVELOP ACTION PLANS8. DEVELOP ACTION PLANS
9. IMPLEMENT SPECIFIC ACTIONS AND MONITOR PROGRESS9. IMPLEMENT SPECIFIC ACTIONS AND MONITOR PROGRESS
10. RECALIBRATE BENCHMARKS10. RECALIBRATE BENCHMARKS
LEADERSHIP POSITION ATTAINED
PRACTICES FULLY INTEGRATED INTO PROCESSES
Phase 1:
PLANNING
Phase 2:
ANALYSIS
Phase 3:
INTEGRATION
Phase 4:
ACTION
MATURITY
Insert Header
Source: Robert C. Camp
Xerox Benchmarking Model (TEMPLATE)

Stability
Heijunka Standardized Work Kaizen
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
Lean management framework provides a holistic approach
to improving speed and quality
Goals:
highest quality,
lowest cost, shortest lead times
Involvement33
22
11
44
55
11
55
44
33
22
Stability
Standardization
Just-In-Time
Jidoka
Involvement
Source: Adapted from Toyota Production System

Contents
5S Principles

Insert Header
Flow Kaizen
(Value Stream
Improvement)
Process Kaizen
(Waste Elimination)
Senior
Management
Front Lines
Focus
Plan
DoCheck
Act
Source: Gemba Kaizen by Masaaki Imai, 1997
Lean Leadership & Kaizen Model (TEMPLATE)

• Creates an end-to-end view of the system
• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system
• Creates an end-to-end view of the system
• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system
Supplier
Management
Control
Customer
Work & Information Flow
Information flow
Value stream mapping ensures an overview of the end-to-
end business process

Value Stream Mapping Steps
Define and Pick the Product/ Service
Family
Create Current State Value Stream Map
Create Future State Value Stream Map
Develop an Implementation Plan &
Execution

Eight types of waste exist in our processes which can be
eliminated to increase customer value
Over-production
Producing more than what
the customer needs
Inventory
Building and storing extra
services/products the
customer has not ordered
Transportation
Moving from one
place to another
Defects
Reprocessing, or
correcting work
Over-processing
Adding excess value
when the customer does
not require it
Motion
Extra physical/mental
motion that doesn’t add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Employees waiting for
another process or
information
Waste

Contents
5S Principles

Lean levers can be applied to eliminate process waste
Overproduction
Producing more
than what the
customer needs
Waiting
Employees
waiting for
another
process or a
machine/tool
Motion
Extra
physical /
mental
motion that
doesn’t add
value
Transportation
Moving product/
service from one
place to another
Inventory
Building and
storing extra
services/produc
ts the customer
has not
ordered
Rework
Reprocessing,
or correcting
work
Over-
processing
Adding excess
value when the
customer does
not require it
Intellect
Not using
employees
full
intellectual
contribution
1. Segmenting complexity
Form separate channels for
complicated tasks so that
simple ones are not held up
2. Redistribute activities
Align activities with
appropriate skill set and
group
3. Pool resources
Utilize existing skills and
resources to reach
economies of scale
4. Flexible manpower
systems
Balance processing capacity
with the ongoing demand by
moving people to where the
work activity is
5. Reduce incoming work
Eliminate tasks from a
person by reducing the
actual work activity arising
6. Reduce NVA work
Eliminate work that does not
directly add value to the end
customer
7. Standard operations
Establish best practices in to
execute a task
Lever
Waste

Gemba Framework provides a holistic view of the key
determinants that impact business performance
Man
Measurements
Methods
Machines
Materials
Operational + Materials Standards
NVA = Muda + Mura + Muri
5S = Housekeeping Discipline
Quality
Delivery
Cost
S
DC
A
P
DC
A
Input Process Output
Source: Gemba Kaizen by Masaaki Imai, 1997

Contents
5S Principles

Insert Header
Source: Kaoru Ishikawa
Cause & Effect Diagram (TEMPLATE)
Manpower
Methods
Machines
(or Equipment)
Measurement
Output
Materials
(or Information)
Environment
Causes Effect

5S Principles
Principles General Description
1S Sort Remove what is not needed and keep what is
needed
2S Set in Order Arrange essential items in order for easy
access
3S Shine Keep things clean and tidy; no trash or dirt in
the workplace
4S Standardize Establish standards and guidelines to maintain
an organized workplace
5S Sustain Make 5S a habit and teach others to adhere to
established standards

Insert Header
Sort
Standardize
Sustain
Shine
Set In Order
5S Principles (TEMPLATE)

Plan-Do-Check-Act cycle provides a systematic approach to
process improvement
ACT
CHECK
DO
PLAN
Establish objectives
and processes
necessary to deliver
results in accordance
with customer
requirements
Monitor, measure,
analyze and report
results
Improve process
performance
Implement
the processes
Source: Adapted from W. E. Deming

Contents
5S Principles

Insert Header
Select the Theme
Plan the Schedule
Grasp the Present Situation
Establish the Target
Analyze the Cause & Identify Corrective Action
Implement Corrective Action
Evaluate the Result
Standardize & Follow-up
PLAN
ACT
CHECK
DO
1
2
3
4
5
6
7
8
PDCA Problem Solving Process (TEMPLATE)

Eight pillars of TPM provide a structured framework to
improve Overall Equipment Effectiveness (OEE)
TPMintheOfficeTPMintheOffice
Safety&Environmental
Management
Safety&Environmental
Management
AutonomousMaintenanceAutonomousMaintenance
PlannedMaintenancePlannedMaintenance
FocusedImprovementFocusedImprovement
EarlyEquipment
Management
EarlyEquipment
Management
QualityMaintenanceQualityMaintenance
Education&TrainingEducation&Training
5S & Visual Management5S & Visual Management
TPM Goals:
Zero Defects, Zero Breakdowns,
Zero Accidents
Source: Japan Institute of Plant Maintenance (JIPM)

OEE can be improved by eliminating the six major
equipment losses
Overall Equipment
Effectiveness
Availability
Breakdowns
Setups & Adjustments
Performance
Reduced Speed
Minor Stops & Idling
Quality
Defects &
Rework
Startup & Yield Loss
Six Big Losses
Source: Japan Institute of Plant Maintenance (JIPM)

Contents
5S Principles

Insert Header
Define
Measure
Analyze
Control
6σImprove
DMAIC Model (TEMPLATE)

DMAIC Roadmap
KEY STEPS
DefineDefine
• Define and scope problem
• Determine project objectives and benefits
• Create project charter
MeasureMeasure
AnalyzeAnalyze
ImproveImprove
ControlControl
• Define ‘As Is’ process
• Validate measurement system for outputs
• Quantify process performance
• Identify potential causes (x’s)
• Investigate significant x’s
• Identify significants causes to focus on y=f(x’s)
• Generate potential solutions
• Select and test solution
• Develop implementation plan
• Create control and monitoring plan
• Implement full scale solution
• Finalize transition
Reduction in process variation improves quality and lowers
costs

DMAIC Project Charter Template
Project Name
Business Problem Executive Sponsor
Black Belt Champion
Objective and Scope
Objective:
Scope:
Steering Committee
Process Owner:
Black Belt:
Green Belt:
Financial Analyst:
Investment Team Members
DMAIC Plan Start –
Plan End
Operational Metric Baseline Target
Define <Metrics that will impact line operations, corporate measurements, profit &
loss, etc.>
<Indicate gross order of magnitude – if actual estimates are not available –
describe value>
Measure
Analyze Defect Definition:
Expected Benefits Projected Savings (US$)
Improve Hard Benefits:
Soft Benefits:
Strategic/Other Qualitative Benefits:
Control

Contents
5S Principles

Insert Header
• Insert text
• Insert text
• Insert text
• Insert text
• Insert text
• Insert text
1
10
100
Source: Philip Crosby
Law of 10 (TEMPLATE)

Training Within Industry (TWI) skills enable supervisors with
the ability to lead, instruct and improve work processes
Charles Allen
4-Step
Learning
Process
TWI
PDCA Cycle
Scientific
MethodJob
Instruction
Job
Methods
Job
Relations
Preparation
Prepare the
Worker
Breakdown the
Job
Get the Facts
Plan – observe
data and
reality; decide on a
problem; define it
Observation and
Description
Presentation
Present the
Operation
Question Every
Detail
Weigh & Decide
Do – Analyze the
problem; propose a
countermeasure
Formulation of
an
Hypothesis
Application
Try Out
Performance
Develop New
Method
Take Action
Check – Try the
countermeasure;
check
the results
Use the
Hypothesis
to make
Predictions
Testing Follow Up
Apply New
Method
Check Results
Act – if successful,
standardize
change; if not, start
the cycle over
Test the
Predictions
by Experiments

TWI - Job Methods (JM) provides a structured approach to
operations improvement
JOB METHODS CARD
HOW TO IMPROVE
Purpose: A practical plan to help you
produce greater quantities of quality products
in less time, by making the best use of
manpower, machines, and materials now
available.
STEP 1 – BREAK DOWN THE JOB
1. List all details of the job exactly as done by
the present method
2. Be sure details include all:
• Material handling
• Machine work
• Hand work
STEP 2 – QUESTION EVERY DETAIL
1. Use these types of questions:
• Why is it necessary?
• What is its purpose?
• Where should it be done?
• When should it be done?
• Who is best qualified to do it?
• How is the best way to do it?
2. Also question the materials, machines,
produce design, layout, work place, safety,
house keeping
JOB METHODS CARD
HOW TO IMPROVE
Purpose: A practical plan to help you
produce greater quantities of quality products
in less time, by making the best use of
manpower, machines, and materials now
available.
STEP 1 – BREAK DOWN THE JOB
1. List all details of the job exactly as done by
the present method
2. Be sure details include all:
• Material handling
• Machine work
• Hand work
STEP 2 – QUESTION EVERY DETAIL
1. Use these types of questions:
• Why is it necessary?
• What is its purpose?
• Where should it be done?
• When should it be done?
• Who is best qualified to do it?
• How is the best way to do it?
2. Also question the materials, machines,
produce design, layout, work place, safety,
house keeping
STEP 3 – DEVELOP THE NEW METHOD
1. Eliminate unnecessary details
2. Combine details when practical
3. Rearrange for better sequence
4. Simplify all necessary details
• Make the work easier and safer
• Pre-position materials, tools, and
equipment at the best places in the
proper work area
• Use gravity feed hoppers and drop
delivery chutes
• Let both hands do useful work
• Use jigs and fixtures instead of hands
for holding work
5. Work out your ideas with others
6. Write up your proposed new method
STEP 4 – APPLY THE METHOD
1. Sell your proposal to the boss
2. Sell the new method to the operators
3. Get final approval of all concerned on
safety, quality, quantity, cost
4. Put the new method to work. Use it until a
better way is developed.
5. Give proper credit where due
STEP 3 – DEVELOP THE NEW METHOD
1. Eliminate unnecessary details
2. Combine details when practical
3. Rearrange for better sequence
4. Simplify all necessary details
• Make the work easier and safer
• Pre-position materials, tools, and
equipment at the best places in the
proper work area
• Use gravity feed hoppers and drop
delivery chutes
• Let both hands do useful work
• Use jigs and fixtures instead of hands
for holding work
5. Work out your ideas with others
6. Write up your proposed new method
STEP 4 – APPLY THE METHOD
1. Sell your proposal to the boss
2. Sell the new method to the operators
3. Get final approval of all concerned on
safety, quality, quantity, cost
4. Put the new method to work. Use it until a
better way is developed.
5. Give proper credit where due

Contents
5S Principles

Cost of non-conformance can be eliminated to improve
quality
Cost of Quality (COQ)
Cost of Conformance
( COC )
Cost of Non-Conformance
( CONC )
Prevention
Cost
Appraisal
Cost
Internal
Failures Cost
External
Failures Cost
Sources: J. M. Juran & Philip Crosby

Costs of failure can be eliminated to reduce total COQ
Source: J. M. Juran
Cost of Quality
Internal failure
costs
Internal failure
costs
Prevention
costs
Prevention
costs
Appraisal
costs
Appraisal
costs
External failure
costs
External failure
costs
- Complaint investigation
and adjustment
- Return, replace or allowances
- Warranty expenses
- Liability
- Loss of goodwill
- Disposition
- Inventory safety stock
- Rework
- Incoming material inspection
- In-process inspection and testing
- Maintaining testing equipment
- Evaluation of stock
- Quality planning
- Production design and review
- Process design and review
- Job design and training
- Process control
- Data collection and analysis
- Quality improvement programs
- Retest
- Yield loss
- Downtime
- Scrap
Costs
of
Non-Conformance
Costs
of
Conformance

Contents
5S Principles

Insert Header
Source: “SERVQUAL” by Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry
SERVQUAL Model (TEMPLATE)
Responsiveness
Empathy Tangibles
Assurance
Reliability

Change Management Model
Need for
Change
Change
Behavior
Change
Direction
Change
Sustainability
Committed
Leadership
Committed
Leadership
1. Establish a
Sense of
Urgency
2. Form a
Powerful
Guiding
Coalition
3. Create a
Vision
4.
Communicate
the Vision
5. Empower
Others to Act
on the Vision
6. Plan for and
Create Short
Term Wins
7. Consolidate
Improvements
& Produce
More Change
8.
Institutionalize
New
Approaches
Source: John Kotter

Value Stream Mapping Symbols
Symbol Name Description
Operator or Employee
Represents operator(s). The number of available operators is
shown below the symbol.
Push Arrow
Represents the movement of materials from one process to
another. It is used when the previous process ‘pushes’
materials to the next process regardless of whether it is needed
by the next process.
Material Receipts &
Shipments
Represents movement of finished goods to the customer. It can
also be used to represent movement of raw materials from the
supplier to the factory.
Electronic Information
Flow
Represents an electronic flow of electronic data or information.
Manual Information Flow Represents the general flow of information.

Value Stream Mapping Symbols
Symbol Name Description
Withdrawal Kanban Used to signal withdrawal of parts from a supermarket.
Production Kanban
Used to signal an upstream process to produce parts for a
downstream process, usually a pre-defined quantity.
Kanban Post Represents a location where Kanbans are placed.
Signal Kanban
Used to signal a process to change over and start production of
a particular part. This is typically used when the inventory level
in the supermarket drops below the minimum level.
Supermarket
Represents a stock of inventory where the next process or
customer can draw upon when required. The upstream process
will replenish the stock when it runs low. It is used to reduce
overall inventory level and when a continuous flow is not
possible.

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Business Performance Improvement Models