PEX 2015 - Sydney

Integrating Innovation Into Process Excellence Frameworks

Brian D’RosarioLean Six Sigma Black Belt – Toll Global Information Systems

© Institute for Quality Management - Professional and Practical Industry Based Training

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Innovative Design Thinking in the Workplace

Design thinking is a lineal descendant of that tradition. Put simply, it is a discipline

that uses the designer’s sensibility and methods to match people’s needs with what

is technologically feasible and what a viable business strategy can convert into

customer value and market opportunity. Like Edison’s painstaking innovation

process, it often entails a great deal of perspiration.

I believe that design thinking has much to offer a business world in which most

management ideas and best practices are freely available to be copied and

exploited. Leaders now look to innovation as a principal source of differentiation and

competitive advantage; they would do well to incorporate design thinking into all

phases of the process.

Tim Brown Harvard Business Review June 2008


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Innovative Design Thinking in the Workplace

Design Thinking has been around for decades but it has made a resurgence in

recent years as swiftly changing technologies and a global marketplace force us to

adapt the way we do business and adjust our corporate culture. Business now

requires creative talent to generate the innovative solutions and products of

tomorrow.

Karin Copeland is the Executive Director of the Arts & Business Council of Greater

Philadelphia and the Vice President of Strategic Alliances for the Greater

Philadelphia Chamber of Commerce.


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Innovative Design – Focus Areas

Post go live activities and control charts

Baseline metrics and control charts

Quality for deployment selections

Perform mind mapping or brain storming activities

Collect data and carry out research

Define

Design Thinking


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Innovative Design – Three Areas to Focus on

1. Hoshin Kanri – Strategic Planning

2. Balanced Scorecards

3. A Leaner Lean Six Sigma Methodology

Also called policy deployment, hoshin planning, or simply hoshin, it is a strategic planning/strategic management methodology based on a concept popularized in Japan in the late 1950s by Professor Yoji Akao. "Each person is the expert in his or her own job, and Japanese TQC [Total Quality Control] is designed to use the collective thinking power of all employees to make their organization the best in its field." This is the fundamental principle of hoshin kanri.


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Hoshin Kanri – Strategic Planning


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Hoshin Kanri Strategic Functional and Tactical Alignment

Vertical Hoshin Kanri Strategic

Alignment

Corporate Objectives and Planning

Site Objectives

Site Tactical Planning and Deployment

Site Initiatives

Functional Objectives

Operational Metrics

Site PlanningTeam Objectives

and initiatives

Activity Planning

Resources

Metrics


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Deployment Schedule

Planned Activities

Strategic long term vision broken down as required into strategic Hoshin Kanri deployable financial, strategic and

operational key objectives for each financial year

Balanced Scorecard

Smart Metrics

Baseline End of Previous Financial Year

Hoshin Kanri Strategies for the financial year and the resources and activities required to be carried out

1. Strategic

2. Tactical

3. Operational

Review

Hoshin Planning and Deployment

Senior Management

Tactical and Operational Teams


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Focus on the top five items that you have identified after data analysis that will provide the greatest impact to help your organization to achieve the Hoshin Kanri strategic objectives for the next financial year

To accomplish your organizations strategic Hoshin Kanri goal every year your organizations will need to do the right effective things that will take them to the next level

Organizations Hoshin Kanri objectives can be evolutionary and this would suit a Kaizen deployment or they can be revolutionary and for this type of strategic objectives a rapid Kaikakku deployment is better suited

Top management prepare the Hoshin Kanri strategic plan consulting with middle management this will ensure that the middle management also buy into the strategic vision and goals thereby becoming owners who will facilitate the strategic plans deployment throughout the organization

Strategic Defect definition and measurements these are a very critical aspect of the strategic planning process and it is important that the defect and its measurement are well understood and communicated across the entire organization

Facilitators and coaches who own the Hoshin Kanri metric and ensure that all obstacles that impede its success are promptly attended to and eliminated they are constantly tracking and measuring progress


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Building Healthy Cohesive Innovative Teams Patrick Lencioni – The Advantage

Organizational Health

Build a Cohesive

Leadership Team

Create Clarity

Over communicate

Clarity

Reinforce Clarity


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Four Meetings of an Healthy OrganizationPatrick Lencioni – The Advantage

Administrative

Daily Check - In

Timing - 5 - 10 minutes

Tactical

Weekly Staff (Kaizen Action Work Outs)

Timing 45 - 90 minutes

Strategic

Adhoc Topical

Timing 2 - 4 hours

Developmental

Off-Site Reviews

Timing 1 - 2 days


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Focused on four perspectives:

• Financial

• Customers

• Internal Processes

• Employee Learning and Growth

* This is a guideline only – many companies choose to customize the perspectives

Balanced Scorecards – Four Perspectives


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The Balanced Scorecard


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Create an action plan for each balanced scorecard element

Specific initiatives and budgets are included

Often broken down into different strategic themes

Decision makers must clearly articulate why balanced scorecard was chosen

Reasoning must be communicated throughout the organization

Balanced Scorecards – Sample Tactical Plan


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Data modelling and data sampling the importance

Business process management

Gemba and Genchi Genbutsu

Kaizen and Kaikaku

Cross functional teams and defect definitions

Action workouts

Smart quantitative metrics

Employee onboarding and involvement

Change management – needs analysis

Operational key timelines – 12 weeks from commencement to go live

Post go live defect monitoring and Kaizen reporting

Review how you apply lean six sigma in different parts of your organization always ensuring that innovation and creativity is not stifled.

Lean Six Sigma – A Leaner Balanced Approach


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Data Modelling

Information drives the business and its business decisions. Data modelling is critical to

understand the information needed to make those decisions. Yet, many business people

don‘t understand the value it provides. Some perceive it as just documentation, as a

bottleneck to rapid development, or even as too expensive to do. The data model is not just

documentation because it can and will be forward engineered into a physical database. Not

only is data modelling not a bottleneck to development, it can actually accelerate

development and can significantly reduce maintenance. If data modelling is too expensive

to do, then what is the alternative? If you do not use formal data modelling, then the data

structures will be done informally and will rely on the intuition of software designers.

Experience has shown that data structures developed without data modelling take longer to

develop and often required extensive modification after they are implemented.


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Data Modelling - Benefits

Summary of Data Model Benefits

Improved data quality

Better business requirements definition

Greater reuse of assets

Reduced data movement

Reduced maintenance

Accelerated development


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Data Sampling

The Benefits of Data Sampling Prior to Lean Action Workouts

Is the data fit for purpose

Is the system being used in accordance with its intended design

Integrity of data

What does the Gemba of the data reveal

What does the data mining of its intended use reveal

Future sample size and normality


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Gemba

When a problem arises, go to the Gemba first

Seeing is believing

Take temporary counter-measures

Find the root cause

Standardize procedures to avoid a recurrence


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Genchi Genbutsu

Go and see for yourself

Obtain actual data

Improves chance of a

better solution


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Kano Diagrams

Excitement(Unknown WOW’s)

Performance(Spoken)

What happens

over time??

Did it

Very well

Didn’t do

it at all

(or very poorly)

Time


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Traditional Vs Lean Improvement Focus


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Process Degradation


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Kaizen Blitzes


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Cross Functional / Value Chain / Value Stream

Cross Functional map: Swim lanes are drawn for each functional area of the business, bands or swim lanes can also represent different roles in a process , system or software.

Value Chain: The term ‘Value Chain’ was used by Michael Porter in his book "Competitive Advantage: Creating and Sustaining superior Performance" (1985). The value chain analysis describes the activities the organization performs and links them to the organizations competitive position.

Value Stream: Value stream mapping is a lean-management method for analysing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer. At Toyota, it is known as "material and information flow mapping".


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Process Looping


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Combined Value Chain / Value Stream / COPIS / Cross Functional Process Map


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RACI and Business Process Management – Orbus Software


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Roles and Activities in RACI – Orbus Software


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RACI Matrix Analysis – Orbus Software


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General Manager

Lean

Operations Network Customer Service

ROI Facilitation Manager

A Road Map for a Lean ImplementationDepartmental Facilitation Role


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Weekly / Monthly Activities Carried Out Weekly Monthly Activities to be Carried Out

Kaizen Reporting


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Kaizen Reporting

• CSF 1

• CSF 2

• CSF 1

• CSF 2

• CSF 1

• CSF 2

• CSF 1

• CSF 2

Process Metric

Definition

Baseline Process Metric

Post Go Live

Process Metric

% Change + or -


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Baseline Control Chart

46.13

Mean CL: 16

-13.66

-20

-10

0

10

20

30

40

50

60

Ind

ivid

ual

s: I

nci

de

nt

Han

dlin

g Ti

me

Individuals Control Chart

Data UCL CL (Mean) LCL


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Post Go Live Control Chart


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Innovative Tools


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Innovative Tools – American Productivity Quality Centre

APQC's Process Classification FrameworkSM (PCF), at its simplest level, is a list that organizations use to define work processes comprehensively and without redundancies.

Organizations use the PCF to:Define the processes that need to be improvedBenchmark internally and with other organizationsAlign IT rollouts and updates for similar processes across the organizationDiscuss organizational performance using the same terminology across business units and departmentsOrganize enterprise content and knowledge


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iServer – BPM Solution


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iServer – Benefits of a BPM Solution

Web deployment of all processes and work instructions with user feedback

Call centre service requests mapped to related processes

Service desk calls mapped to related processes

Process modelling outputs written back to processes

Process looping and waste identification along with live data legend reporting

Identification of long system and manual wait times and rapid actual takt time calculations


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Speakdocs


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Learner Library


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Lean Six Sigma Project Professional – Yellow Belt Training 24th & 25th August in Melbourne


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IFQM can assist your project teams to deliver greater productivity and efficiencies

PEX 2015 - Sydney

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