If it isn t broken, don t fix it!

Transcription

1 If it isn t broken, don t fix it! 3 keys to Manufacturing Excellence without overhauling your business Clear thinking for a complex world

2 Your presenters Houston Outing, Senior Consultant Houston works with clients to improve their operations. He has an in-depth understanding of business issues based on extensive experience implementing manufacturing cost reduction, capital upgrade, and process control programs. At Corning Inc., he worked in manufacturing operations, process and equipment engineering, and project management. A graduate of Virginia Tech, Houston has a BS in mechanical engineering and he holds an MBA from Duke University. Houston can be reached at houting@kepner-tregoe.com. Patrick Browne, European Managing Director Patrick is a passionate advocate of "life long learning-by-doing. He spent the first half of his career improving operational performance in the automotive industry. As a pioneer of lean and six sigma, Patrick reduced costs, improved quality and developed high performing teams in OEM factories of Peugeot and, later at Delphi. He s a graduate Trent Polytechnic as an Industrial Engineer. Patrick can be reached at pbrowne@kepner-tregoe.com. Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 2

5 CI History of the Car : 3 steps forward, 2.9 steps back Increased productivity Accessible Price for customers Greater variety of choice for customer Craft to Mass Production Mass to Lean Production Rigid conformity to standards De-humanized workforce Logistic complexity difficult to master Reduced inventory Reduced labor costs Early access to emerging markets Local to Global Supply Chains Dramatic failures when things go wrong Increased complexity of business Cultural & communication issues 5

6 Dealing with change Are you a victim or beneficiary of change? Through all the complex and sophisticated technical changes that have occurred in Continuous Improvement the past 25 years, there are a lot of Charlie Chaplins out there that just aren t coping with the effects of change. Is your organization riding on or under the change steam roller? Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 6

7 KT created this word cloud from months of research, facts and interviews to symbolize the crowded, complex and sometimes confusing landscape of Operational Excellence. The bigger the word, the more we saw/heard it. It s no wonder our perpetual pursuits of OpEx are so challenging. Cloudy With a chance of OpEx Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 7

9 Poll question What have been the main reasons OpEx projects haven t been successful where you work? A. Reason for change not clearly communicated or understood B. Don t have sufficient experience of best practice OpEx tools C. Results not aligned with people s KPIs / conflict of interests D. Lack of demonstrated leadership buy-in E. Plan and order of work is unclear F. Other submit your answers via chat if you d like! Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 9

12 3 keys for Manufacturing Excellence without overhauling your business Process clarity Building critical thinking capability Leadership alignment Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 12

18 Do you have a clear view of the blueprint? When the project is over, you should be able to clearly see the events and actions that lead to the result. That s process clarity. With greater process clarity, the work that gets done within your business processes is now more consistent, scalable for greater output and repeatable within an ever-changing environment. Process Clarity Consistent, Improvable, Scalable, Repeatable Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 18

19 There are 3 steps to Process Clarity, and the first is -- Define the Situation: Here we want to define the most critical issues for a surgical strike. We want rapid wins in areas where results may be uncertain. Let s not dismantle the entire bicycle just because the brakes are squeaking. And let s take the time now to collect sufficient information to help understand the situation. Process Clarity Define your situation Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 19

20 Older TVs had round contours. A protrusion in the back, where the cathode ray tube was assembled, was the result of a 4 inch glass tube, melted onto a dome to create a funnel. A waste reduction team was assembled to tackle trimming the neck end of the funnel to a precise length. You can imagine the massive amount of glass wasted from a poor cut at the tip of the funnel. It turned out that the challenge to the entire multi-million dollar cost savings project was not in cutting or assembly. Actually, the challenge was in defining what was required to achieve precision. A new innovation for measuring and controlling dimensions resulted from our better understanding of our situation. We asked: How does work get done? -- Where in the process do we measure it? -- What processes need improvement, increased quality, and efficiency? And then we set priority actions on only the most critical issues. Case Study Glass Manufacturing Define your situation Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 20

21 Make effective use of your CI tools and methodologies to collect and analyze the facts. Take the necessary time up front to fully analyze the facts you ve collected. This will help you avoid the common pitfalls of: 1) Jumping to cause: Fixing a symptom of a problem, and later learning that the problem has not been fully addressed; 2) Making a selection of alternatives without fully exploring its fit against priority objectives and the risks associated with the selection. Process Clarity Analyze each issue Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 21

22 It became obvious that everyone had a different opinion on where in the process the neck length should be controlled. Making matters more complicated, depending on where in the process the dimension was measured, a different measurement instrument and technique was required. Only after running a few controlled experiments and analyzing dimensional data from each sub-process output, we concluded that the variation reduction was almost exclusively necessary in the measurement processes, not in the reported glass fusing process for mating the two adjoining ends of glass. We asked: What happened in the past to cause problem? -- What decisions must I make for tomorrow? -- What plans must I protect or optimize today? Case Study continued Analyze each issue Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 22

23 To act with decisive purpose this requires: 1. Defining the fastest, most rewarding paths to results 2. Confirming the plan improves process stability, quality, and/or efficiency 3. Aligning resources that fulfill the project objectives (people, budget, time, commitment & support) Process Clarity Act decisively Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 23

24 Once we concluded that measurement control of the necks, post cutting and fire polishing, was necessary; we confirmed process stability and the quality improvement with off-line prototype equipment. Finally we defined the production equipment, technical and production resources to staff the project team, and necessary budget and time schedule to delight our customers. Case Study - concluded Act decisively Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 24

26 Poll question Think of a good problem solver in your business - What best describes them? A. Highly intelligent B. Very Experienced C. Fast Worker D. Hard Worker E. Good Communicator F. Structured in their approach Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 26

27 Clear Thinking Which system? Which way is west? =? Will the price go up or down? What s Happening? How far away is that? 21 x 23 =? Should I take an umbrella? Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 27

29 And sometimes we need to take a bit more time and spend some effort to think straight We call that System 2 thinking System 2 Effortful system Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 29

30 Clear Thinking Which system? Which way is west? =? Will the price go up or down? What s Happening? How far away is that? 21 x 23 =? Should I take an umbrella? Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 30

32 Poll Question - When do you use system 2? The solution is complex B C The solution is simple / obvious A D Being wrong has no serious consequences Being wrong has serious consequences Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 32

35 Leadership Alignment to a vision i Appeals to the Leaders Specialist Knowledge Investment Longer time 6s L E A N Appeals to the Masses Basic Concepts Low Cost Quick to do Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 35

38 Leadership Alignment challenges of change Vision Skills Motivation Resources Action Plan Successful Change Vision Skills Motivation Resources Action Plan Confusion Vision Skills Motivation Resources Action Plan Anxiety Vision Skills Motivation Resources Action Plan Slow Change Vision Skills Motivation Resources Action Plan Frustration Vision Skills Motivation Resources Action Plan False Starts Criteria assured Shortfall Copyright 2014 Kepner-Tregoe, Inc. All Rights Reserved. 38

42 What questions do you have?