9 13 how can continuous improvement save money for churches
TRANSCRIPT
How Can CONTINUOUS IMPROVEMENT
Benefit
CHURCHES
Jose V. Alcedo, M.B.A.,G.R.I
Presenter
Jose V. Alcedo, M.B.A.,G.R.I.
INDEPENDENT BUSINESS CONSULTANT
INDUSTRIAL
ENGINEERING
QUALITY
MANAGEMENT
MANUFACTURING
OPERATIONS
TECHNOLOGY
MANAGEMENT
PURPOSE
Introduction
Continuous Improvement Lean Six
Sigma
Mindset of Continuous Improvement
Jose V. Alcedo, M.B.A.,G.R.I
TECHNOLOGY TRANSFER
GOAL
To help a Church Organization
achieve ministry goals with
effective management of its
resources
Jose V. Alcedo, M.B.A.,G.R.I
BENEFITS OF CONTINUOUS
IMPROVEMENT
Jose V. Alcedo, M.B.A.,G.R.I.
• Eliminate Waste
• Reduce Cost
• Improve Supplier Quality
• Improve Customer Service
• Enhance Parishioners’ Support
• Improve Stewardship
What’s in it
for
St. Kateri
Tekakwitha
Church
Jose V. Alcedo, M.B.A.,G.R.I.
• Process Focused
• Streamlined Operation
• Team Empowerment
• Proven Record of Success
• Customer Focused
• Improved Processes
CONTINUOUS IMPROVEMENT
Why
Jose V. Alcedo, M.B.A.,G.R.I.
• Idle Equipment and Supplies
• Redundant Processes
• Participation
• Service Quality
• Operational Cost
• Lasting Growth
CONTINUOUS IMPROVEMENT
APPLICATIONS
Where
Jose V. Alcedo, M.B.A.,G.R.I.
Where
Jose V. Alcedo, M.B.A.,G.R.I.
Where
• SALARIES AND WAGES
• UTILITIES
• EQUIPMENT
• MAINTENANCE
• OFFICE SUPPLIES
• OUTSIDE SERVICES
Jose V. Alcedo, M.B.A.,G.R.I.
STRATEGY
Customers
Suppliers
Processes
Jose V. Alcedo, M.B.A.,G.R.I.
GOAL
Increase Revenue
Reduce Cost
OBJECTIVE
How Can Lean Six Sigma Help a
Church
Improve Business Systems and
Processes
Ensure Resources (People, Time
and Money) - used Responsibly and
for its Intended Purpose
Jose V. Alcedo, M.B.A.,G.R.I
Jose V. Alcedo, M.B.A.,G.R.I.
Continuous Improvement and
Lean Six Sigma
How
Continuous Improvement
Philosophy
Jose V. Alcedo, M.B.A., G.R.I.
William Edwards Deming, 1935
PLAN
DO
CHECK
ACT
How
Jose V. Alcedo, M.B.A., G.R.I.
William Edwards Deming, 1935
PLAN
DO
CHECK
ACT
Improved Process
How
Continuous Improvement
Philosophy
Lean Six Sigma
6Lean In business
Creating more value to customers
Fewer resources
Minimum waste
Reduced operational cost.
How
Jose V. Alcedo, M.B.A., G.R.I
DEMING SYSTEM OF PROFOUND KNOWLEDGE
Jose V. Alcedo, M.B.A., G.R.I.
Deming
System of
Profound
Knowledge
Appreciation
of a System
Knowledge
about
Variation
Theory of
Knowledge
Knowledge
of
Psychology
How
APPRECIATION OF A SYSTEM
• Whole and complex
• Clearly defined and shared goals
• Everyone must share a distinct
commitment to aim the common goal
• Team-based environment
• Optimize the whole system
• Win-win results for all, as one team
Jose V. Alcedo, M.B.A., G.R.I.
How
APPRECIATION OF A SYSTEM
• Being part of the whole
• Large number of participants
and interactions
• Collaboration
• Interconnecting components
• Optimizing the whole, not one part
Jose V. Alcedo, M.B.A., G.R.I.
How
APPRECIATION OF A SYSTEM
• Interdependence of all
system components
ALL SYSTEM COMPONENTS
MUST OPERATE
INTERDEPENDENTLY IN
ORDER TO BE
EFFICIENT IN
BUSINESS OPERATION
Jose V. Alcedo, M.B.A.,G.R.I.
How
Manufacturing System
Model
MANUFACTURING PACKAGING
DISTRIBUTION
&
DISTRIBUTION
CHANNELS
SUPPLIERS
&
SUPPLY CHAIN
CONSUMERS
CONSUMER
RESEARCHDESIGN
PRODUCT
DEVELOPMENT
SUPPORT FUNCTIONS COMMON GOAL
REGULATORY
Jose V. Alcedo, M.B.A., G.R.I.
How
CHURCH SYSTEM AND PROCESS MODEL
Jose V. Alcedo, M.B.A., G.R.I.
CUSTOMERS:
PARISHIONERS
& GUESTS
PRODUCTS &
SERVICES
SUPPLIERS
INTERNAL
& EXTERNAL
PROCESSES
SUPPORT SYSTEMS
Goal:
Provide high quality
religious service that
satisfies customer needs
and expectations.
How
Lean Six Sigma
Process-focused Strategy
PROCESS
PEOPLE
PROCEDURE
EQUIPMENT
MATERIAL
PRODUCT
SERVICE
TASK
INPUT OUTPUT
Take a Hard Look
at Processes and Improve Them
Jose V. Alcedo, M.B.A.,G.R.I
How
VALUE STREAM MAPPING
VALUE-
ADDED
NON-
VALUE-
ADDED VALUE WASTE+ +
Jose V. Alcedo, M.B.A., G.R.I
How
CUT WASTE
TRADITIONAL ORGANIZATION
EMPLOYEES
Jose V. Alcedo, M.B.A.,G.R.I
MANAGEMENT
How
Team – Based
Organizational Structure
E M P L O Y E E S
Jose V. Alcedo, M.B.A.,G.R.I
MANAGEMENT
B
TEAMS
How
KAIZEN WORKOUT
What Gets Measured Gets Improved
Jose V. Alcedo, M.B.A., G.R.I
How
KAIZEN WORKOUT
Jose V. Alcedo, M.B.A.,G.R.I.
Purpose:
Develop workable solutions to targeted
business problems and opportunities
How
KAIZEN WORKOUT
PROBLEM RESOLUTION DMAIC
Understand the problem
Gather information
Identify root cause
Fix root cause
Sustain improvement
Define the process
Measure workflow
Analyze non-value
Improve workflow
Control improved process
RED TOOL
BOX
Jose V. Alcedo, M.B.A., G.R.I
How
COST REDUCTION PROJECT
Operating Expenses RED TOOL
BOX
Jose V. Alcedo,M.B.A.,G.R.I
Data
Analysis
Major
Cost
Selection
Trend
Analysis Cause-
Effect
Analysis
Waste
Analysis
Corrective
Action
Implementation
Measurement
of Results
Recognition &
Celebration
Standardization
& ControlDocumentationSTART
A B C
PROCESS IMPROVEMENT
TEAM
CHAMPION/SPONSOR
DMAIC - PDCA
3 TO 5 DAYS WORKOUT
How
Preparation
Jose V. Alcedo, M.B.A.,G.R.I.
DEFINE
SCOPEEXECUTIVE
SPONSOR
TEAM
LEADER
FORM
TEAM
How
Jose V. Alcedo, M.B.A.,G.R.I.
BUY - IN
MOA
When
COMMITMENT
Jose V. Alcedo, M.B.A., G.R.I.
Mobile: 661-755-9214
Los Angeles, California
Jose V. Alcedo, M.B.A.,G.R.I.
INDUSTRIAL
ENGINEERING
QUALITY
MANAGEMENT
MANUFACTURING
OPERATIONS
TECHNOLOGY
MANAGEMENT
INDEPENDENT BUSINESS CONSULTANT
References Books
Out of the Crises, by Deming, W. Edwards, (1986). Cambridge, Massachusetts Institute of Technology.
The Deming Theory of Management, by W. Gartner and M. Naughton, Academy of Management Review, January 1988.
Kaizen, The Key to Japan’s Competitive Success
Masaaki Imai.Random House, Business Division, New York, 1986
Strategic Management of Technology and Innovation, by Robert A. Burgelman/Stanford University and Modesto A. Maidique/Florida International University, 1988 Irwin/Publisher
Jose V. Alcedo, M.B.A.,G.R.I