TLS - Integrating Tools for Big Results
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Many organizations struggle with their continuous improvement (CI) efforts; achieving real bottom line results, whether in cost savings or increased revenues, has proven to be difficult. In spite of the widespread implementation of Lean and Six Sigma principles, poor results persist. The TLS process generates 15-20 times better performance than Lean or Six Sigma. This presentation will show the root causes of poor CI program performance and a systematic framework to create ongoing bottom line results. more info at http://pinnacle-strategies.com
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TLS - Integrating Tools for Big Results
- 1. TLS – Integrating Tools for Big Results Mark Woeppel, Pinnacle Strategieshttp://pinnacle-strategies.com http://pinnacle-strategies.com 1
- 3. http://pinnacle-strategies.com 3 “Brilliant process management is our strategy. We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes.”
- 6. What is TLS? http://pinnacle-strategies.com 6
- 7. TLS supports different situations with specific tools for that situation. http://pinnacle-strategies.com - 7 -
- 8. Theory of Constraints http://pinnacle-strategies.com 8 20 25 10 12 16 Leverage Point It’s about focus and synchronization
- 9. Lean Principles http://pinnacle-strategies.com 9 Pursue Perfection Flow Customer Pull LEAN Identify Value Stream Specify Value
- 10. Six Sigma Principles Before you improve a process, stabilize Use empirical data Y=f(x) Effective Project Management Customers feel the variance, not the mean Every project must be financially driven http://pinnacle-strategies.com 10
- 13. Sanmina-SCI DOE Results http://pinnacle-strategies.com 13 TLS returned 3.9 times more than Lean or Six Sigma
- 14. Contribution to Results http://pinnacle-strategies.com 14 89% of benefits came from 6 of the 21 plants using TLS
- 15. The Improvement Challenge http://pinnacle-strategies.com 15 “All IMPROVEMENTS results from a CHANGE to the process…. IMPROVEMENT But not all CHANGES result in an improvement…. CHANGE
- 16. The Traditional Approach to Improvement http://pinnacle-strategies.com 16 “A cent plus a cent plus a… will accumulate to a fortune…” Realist Global Improvement = ∑ Local Improvement
- 17. The Systems Approach to Improvement http://pinnacle-strategies.com 17 “If I find the leverage point I can move the earth...” Archimedes Global Improvement ∑ Local Improvement 20 25 10 12 16 Leverage Point
- 18. CI Methods In Use http://pinnacle-strategies.com 18
- 19. Progress Toward World Class? http://pinnacle-strategies.com 19
- 20. The goal is to create improvement 20 B CI Teams get results D CI Projects focus on biggest time sinks A Create systematic improvement s The Troops
- 21. Improve the things that are important to the business. 21 A Create systematic improvement s CI Teams are focused on business needs CI Projects do not focus on biggest time sinks C D’ The Leadership
- 22. We have a problem! 22 B CI Teams get results D CI Projects focus on biggest time sinks A Create systematic improvement s CI Teams are focused on business needs CI Projects do not focus on biggest time sinks C D’ The Troops The Leadership
- 23. The Existing Solution & Its Effects http://pinnacle-strategies.com 23 Many projects do not achieve results Difficult implementations Overall company performance does not improve D CI Projects focus on biggest time sinks Management does not support CI efforts CI Projects do not focus on biggest time sinks D’ Management is frustrated Focus on the large time sinks unless there is a major problem Resistance to change The problems still exist People are cynical about CI
- 24. What’s wrong with the conventional approach to CI? http://pinnacle-strategies.com 24 B CI Teams get results D CI Projects focus on biggest time sinks A Create systematic improvement s CI Teams are focused on business needs CI Projects do not focus on biggest time sinks C D’ Time spent at every resource is a major waste
- 25. Only the projects focused on the leverage point have any return. http://pinnacle-strategies.com 25 20 25 10 12 16 Leverage Point
- 26. The Biggest Obstacle to CI Program Success? http://pinnacle-strategies.com 26
- 27. Malcolm Baldrige Research Results Is there a causal link between the Baldrige Criteria and actual performance of firms? Leadership is the most important driver of system performance Information and Analysis is the second most important Process Management is twice as important when predicting customer satisfaction as when predicting financial results http://pinnacle-strategies.com 27
- 28. The Reasons for Unsatisfactory Results? Projects not geared towards the bottom line (phantom cost savings) Lack of focus Emphasis on tools, not results Lack of leadership of CI Process No structure to reinforce improvements or manage improvement process Accountability for sustained improvements is not clear No alignment with global goals or strategy Teams are “self-directed”, not led TLS Process Addresses the Core Problems http://pinnacle-strategies.com 28
- 29. Tools – Create Alignment http://pinnacle-strategies.com - 29 - Commissioning / Governance Constraint Analysis Measurements Analysis Visual Display
- 31. Tools – Stabilize The Delivery Process - 31 - LevelLoading / Balancing SDBR – PullSystem BufferManagement
- 32. Drive Waste Out of the Process http://pinnacle-strategies.com - 32 - Desired Result Texas Style QFD Process Mapping Output Process Input (OPI) Cause and Effect Analysis Process KPIV KPOV
- 33. Drive Variation Out of the Process http://pinnacle-strategies.com - 33 - ? KPOV KPIV Process Variables either as Noise or Constant Visual Work Instructions Desired Result Run / SPC charts Variable Characterization
- 34. The Path Forward http://pinnacle-strategies.com 34
- 35. The Path Forward http://pinnacle-strategies.com 35
- 36. TLS – A Synergistic Solution The Causes Focusing on the wrong things No system to produce improvements No linkage to global strategies Un-Synchronized improvement teams No change in culture The Solutions Focus on the constraint Continuous Improvement system with clear accountability Projects deployed to constraint processes Each CI initiative tied to process manager Approach CI as a culture shift http://pinnacle-strategies.com 36
- 37. TLS Benefits Fast, significant improvements as measured by the global metrics of Net Profit and ROI Overall company performance improves People are have tools to improve their sphere of process influence A culture of continuous improvement exists Significant progress towards world class with ZERO capital investment http://pinnacle-strategies.com 37
- 38. Process Improvement closing http://pinnacle-strategies.com 38
- 39. http://pinnacle-strategies.com 39 “Brilliant process management is our strategy. We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes.”
- 40. More information about TLS http://pinnacle-srategies.com/BusinessExcellence.htm http://pinnacle-strategies.com 40
Notes de l'éditeur
- Diffused arches(Intermediate)To reproduce the shape effects on this slide, do the following:On the Home tab, in theSlides group, click Layout, and then click Blank.On the Home tab, in the Drawing group, click Shapes, and then under Lines click Curve (tenth option from the left). On the slide, click three points to draw a simple curved line, double-clicking the final point to finish. Select the curved line. On the Home tab, in the Drawing group, click the arrow next to Shape Fill, point to Gradient, and then click More Gradients. In the Format Shape dialog box, click Fill in the left pane, select Gradient fill in the Fill pane, and then do the following:In the Type list, select Linear.Click the button next to Direction, and then click Linear Down (first row, second option from the left).Under Gradient stops, click Add or Remove until two stops appear in the drop-down list.Also under Gradient stops, customize the gradient stops that you added as follows:Select Stop 1 from the list, and then do the following:In the Stop position box, enter 0%.Click the button next to Color, and then underTheme Colorsclick White, Background 1 (first row, first option from the left). In the Transparency box, enter 50%.Select Stop 2 from the list, and then do the following: In the Stop position box, enter 100%.Click the button next to Color, and then underTheme Colorsclick White, Background 1 (first row, first option from the left). In the Transparency box, enter 100%.On the Home tab, in the Drawing group, click Shape Effects, point to Soft Edges, and then click 5 point. On the Home tab, in the Drawing group, click the arrow next to Shape Outline, and then click No Outline. To reproduce the background effects on this slide, do the following:Right-click the slide background area, and then click Format Background. In the Format Background dialog box, click Fill in the left pane, select Gradient fill in the right pane, and then do the following:In the Type list, select Radial.Click the button next to Direction, and then click From Center (third option from the left). Under Gradient stops, click Add or Remove until two stops appear in the drop-down list.Also under Gradient stops, customize the gradient stops that you added as follows:Select Stop 1 from the list, and then do the following:In the Stop position box, enter 0%.Click the button next to Color, and then under Theme Colors click White, Background 1 (first row, first option from the left).Select Stop 2 from the list, and then do the following: In the Stop position box, enter 100%.Click the button next to Color, and then under Theme Colors click White, Background 1, Darker 50% (sixth row, first option from the left).To reproduce the duplicate curved lines on the slide, do the following:On the Home tab, in the Clipboard group, click the arrow under Paste, and then click Duplicate. Repeat the process for a total of three curved lines. On the slide, drag the curved lines to position them as needed. Right-click one of the duplicate curved lines, click Edit Points, and then drag the points on the curve to make a new shape. Repeat the process with the other duplicate curved line.
- Every outcome is the result of a process. Want to change the outcomes? You must change the process.
- What is TLS?
- Specify Value from view of the customerImprove the process that creates ValueIdentify the value streamEliminate waste from that streamMake the process Flow smoothlyAllow the customers to pull valuePursue perfection
- Methodology was assigned due to the local preference, experience with a particular methodology and expertiseData gathered (Time-years): 2.5 Participating plants: 21 11 Six Sigma 4 Lean6 TLSTeam leaders trained: 211Projects completed by all methods: 101− Each site chose their projects and coached with local experts− Plant size, population, financial standing were mixed
- What is your “hit-rate” EXPECTATION for making “Change = Improvement”?What is your CURRENT REALITY for making “Change=Improvement”?Is there a GAP between YOUR Expectation and Current Reality?Could it be that there is a simple LAW that governs whether a CHANGE=IMPROVEMENT for the System as a whole?
- What is the chance of change = improvement in the traditional approach?
- What should our expectation be of change = improvement in the systems approach?
- Industry Week Survey 2007
- As cited by LEI in 2007 Survey of lean implementers. Note that unrealized financial value ranks very low in obstacles, indicating the practitioners themselves do not understand the source of the resistance. Moreover, this demonstrates a disconnect between the practitioners and management; emphasizing tool adoption over results achievement.
- An Empirical Investigation of the Malcolm Baldrige National Quality Award Causal ModelDarryl D. Wilson David A. Collier Sam Walton College of Business AdministrationThe objective of this research is to test the theory and causal performance linkages implied by the Malcolm Baldrige National Quality Award (MBNQA). The survey instrument used a comprehensive set of 101 questions that were directly tied to specific criteria in the 1995 MBNQA Criteria. Results reported here represent the first published article that tests the MBNQA performance relationships and causal model using comprehensive measurement and structural models.
- Create Alignment with the GoalIdentify the constraintAlign the measurement systemProject deployment around the constraintPrevent local optimization conflictsIdentify movement of the constraintStabilize the global process with strategic buffers & SDBR