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4. © 2013 The Karen Martin Group, Inc. 4
Upcoming Webinars
• How Outstanding is Your Organization?: An Assessment
– Tuesday, September 17, 2013 – 11:00 am‐12:15 pm
– https://www2.gotomeeting.com/register/923117162
• Value Stream Mapping: Visualizing Work Flow and
Aligning People for Organizational Transformation
– Tuesday, October 8, 2013 – 11:00 am‐12:15 pm PT
– https://www2.gotomeeting.com/register/151856458
• Improvement Facilitation & Coaching: An Open Forum
– Tuesday, October 29, 2013 – 11:00 am‐12:15 pm PT
– https://www2.gotomeeting.com/register/999232762
11. © 2013 The Karen Martin Group, Inc. 11
The Toyota Way 2001
• Respect for People
– Respect – We respect others, make every effort to understand each other, take
responsibility, and build mutual trust.
– Teamwork – We stimulate professional growth, share the opportunities of
development, and maximize individual and team performance.
• Continuous Improvement
– Challenge – We form a long‐term vision meeting challenges with courage and
creativity to realize our dream.
– Kaizen – We improve our business operations continuously, always driving for
innovation and evolution.
– Genchi Genbutsu – We believe in going to the source to find the facts to make correct
decisions, build consensus, and achieve goals at our best speed.
29. © 2013 The Karen Martin Group, Inc. 29
Root Cause Analysis: 4 Key Tools
CauseCause--andand--Effect DiagramEffect Diagram
Machine Measurement Environment
People Material / Info Method
Budgets
Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule
Machine Measurement Environment
People Material / Info Method
Budgets
Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule
5 Why’s
Why?
Why?
Why?
Why?
Why?
Paret o Chart
Credit Applicat ion Delays
2 9 0 9
6 2 7
5 6 1
2 4 2 1 8 0
2 4 9 3
4 1 %
7 7 %
8 6 %
1 0 0 %
9 7 %
9 4 %
0
500
1000
1500
2000
2500
3000
3500
N o Si gna t ur e I ns uf f i c i e nt
B a nk I nf o
N o pr i or
a ddr e s s
C ur r e nt
C us t ome r
N o C r e di t
H i s t or y
O t he r
Reason f or Delay
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Check Sheets Quantify Occurrences
|Equipment failure
|||||||||||||Changing customer
requirements w/ no
adjustment to expected
delivery
||||||||||Order entry error
|||Staffing/absenteeism
|||||Quality issue requiring
rework
|||||||Material shortage
TallyReason
|Equipment failure
|||||||||||||Changing customer
requirements w/ no
adjustment to expected
delivery
||||||||||Order entry error
|||Staffing/absenteeism
|||||Quality issue requiring
rework
|||||||Material shortage
TallyReason
39. © 2013 The Karen Martin Group, Inc. 39
1. Increase sales 5%.
3. Achieve 10% profit.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario
COM
Direct
CDs /
AMs
PD
Rec
PD
Mgmt
BMD SWS
2
3,500 units sold by 12/31/2013 through all channels
(approx. $700K)
X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3
11 Develop & deliver training to top 50 Dealers X X X X X X Bob Rex/Tim 3 3 3
21 Revised course materials by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2
5
Education: 1 school district spec'd/underperforming
COM distributor (25) by 12/31 valued at min $35K each
X X X X X X X X X X X X Howard Michael S 1 3 2 3 3
8
10 new dealers on board (net) ($500K per dealer this
year)
X X X X X X X X X X X X Howard Mike B 2 3
9
5 new distributors bringing $200K annual rev (& 5
terminated)
X X X X X X X X X X X X Howard Howard 1 1 1 2 3
17 10 projects spec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3
29 20 by year‐end X X X X X X X X X X X X Howard Mark H 2 3 3 3
32 TBD X X X Howard Howard
33 TBD X X X X X X X X X Howard Howard
10
Useful reporting and metrics are established and in
place
X X Jim Randall 3 1 1 1 1 1 1
30 TBD X X X X X Jim Josh 3
31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1
25 TBD Jim Shannon 3 3 1 1 1 1 1
26 System 7.0's in place X X X Jim Randall 3 2 1 2 1
15
100% accurate payroll; 100% management satisfaction
at April mgmt. meeting
X X X Josh Phyllis 1 3
20
Internet task list is simplified and streamlined for
PDs then plan is rolled out to PDs
X X X X Michael M Michael M 2 3 2 3
22
Design Calculator is updated successfully and rolled
out
X X X Neall Matt D 3 1 1 3 2 2 3
24 Competitive Analysis complete and distributed for use X X X Neall Dana 2 3 3 3 3 3 3
1 Design changed to solve delam issue long‐term X X X X X Susan David R 3 2 3
12
30 parts sourced in U.S.; completed plan for managing
China‐sourced parts
X X X X X X Susan Shannon 3 3 2 2
13
Warehouse laid out; kanban revised; Syspro
implemented
X X X Susan Shannon 3
14 Lay out complete; equipment installed X X X Susan David R 3 3
X = Planned
2013 Priorities
2013 Goals & Objectives
4. Improve morale (metric TBD).
2. Achieve 50% gross margin. Created: 01‐14‐13
Revised:
Level of Effort/Involvement Required
Priority Goal or Measurable Objective Exec Owner
Plan review dates:
Tactical
Owner
● = Actual
< Company Name >
Contentremoved for confidentiality
Tie Improvement to
Annual Strategy Deployment Plans
40. Tie Improvement to Future State
Value Stream Maps
Referring
Physician
% C&A = 85 %
Send
Reports
(Imaging)
Cycle Time = 3 mins.
% C&A = 90 %
6
Hospital
Schedule appt
Pre-register
Cycle Time = 11 mins.
Lead Time = 45 mins.
% C&A = 98 %
6
CT=Cycle Time
LT=Lead Time
%C&A=% Complete & Accurate
0.0833 hrs.
1 mins.
0.583 hrs.
10 mins.
0.333 hrs.
10 mins.
0.0833 hrs.
2 mins.
2 hrs.
15 mins.
7 hrs.
1 mins.
0.0333 hrs.
1 mins.
0.5 hrs.
3 mins.
LT = 11.3 hrs.
CT = 43 mins.
CT/LT Ratio = 6.32%
Lead Time = 45 mins.Lead Time = 15 days
Prep
Patient
(Tech)
Cycle Time = 10 mins.
% C&A = 100 %
2
Check-in
Patient
(Imaging)
Cycle Time = 1 mins.
% C&A = 98 %
3
Complete
Exam
(Tech)
Cycle Time = 10 mins.
% C&A = 90 %
2
Transmit
Images
(Tech)
Cycle Time = 2 mins.
% C&A = 100 %
2
Read/Dictate
Exam
(Radiologist)
Cycle Time = 15 mins.
% C&A = 95 %
2
Review
Draft/Sign
(Radiologist)
Cycle Time = 1 mins.
% C&A = 95 %
2
Print
Reports
(Imaging)
Cycle Time = 1 mins.
% C&A = 99 %
2
20 mins. 5 mins. 120 mins. 420 mins. 2 mins. 30 mins.35 mins.
E Pay ExcelSymposium Internet
Waiting Room
Management
System
Fax Order
Solutions
PACS
5 mins.
Set-up
Reduction
Remove
Check in
and Reduce
System Access
Work
BalancingStandard
Work
Pull System
(Supplies
Kanban)
Visual
Workplace Voice
Recognition
Batch
Reductions
5S
Co-locate
Standard
WorkWork
Balance
Continuous
Flow
Value Stream
Alignment
Auto Fax 80%
Us Mail 15%
MD Mailbox 5%
Rolled First Pass
yield = 40%
Rework Loop
via Fax 10% of
the time
Customer Demand:
15 patients perDay
(Takt Time1920 seconds)
8 hours per day
1
2
3
4
5 6 7 8 9 10 11
Risk
Reduction
(Joint
Commision)
Meditech
45. © 2013 The Karen Martin Group, Inc. 45
Upcoming Webinars
• How Outstanding is Your Organization?: An Assessment
– Tuesday, September 17, 2013 – 11:00 am‐12:15 pm
– https://www2.gotomeeting.com/register/923117162
• Value Stream Mapping: Visualizing Work Flow and
Aligning People for Organizational Transformation
– Tuesday, October 8, 2013 – 11:00 am‐12:15 pm PT
– https://www2.gotomeeting.com/register/151856458
• Improvement Facilitation & Coaching: An Open Forum
– Tuesday, October 29, 2013 – 11:00 am‐12:15 pm PT
– https://www2.gotomeeting.com/register/229489922