home brew module 8 advanced systems & processes

Bundaberg Brewed DrinksHome Brew Program

Module 8

Advanced Systems & Processes

Russell Cummings

Agenda

• Business Excellence Model

• FMEA

• Next Steps

Home Brew Program 2009

Advanced Systems & Processes Tools

Business Excellence Model

Failure Mode Effect Analysis

FMEA

LEADERSHIP10%

PEOPLEMANAGEMENT

9%

POLICY &STRATEGY

8%

RESOURCES & PARTNERSHIP

9%

PROCESSES14%

CUSTOMERSATISFACTION

20%

PEOPLESATISFACTION

9%

IMPACT ONSOCIETY &

ENVIRONMENT6%

KEY PERFORMANCE15%

• Focuses on outcomes and processes.

• Enables self-assessment.

• Applicable to a wide range of industries.

• Supports a culture of continuous improvement.

Enablers 50%

Results 50%

BUSINESS EXCELLENCE MODEL

Exercise

What would we need to understand to measure each component? How will you measure this?

• Leadership• People Management• Policy & Strategy• Resources & Partnerships• Processes• Customer Satisfaction• People Satisfaction• Impact on Society & Environment

Click on pause to stop the DVD.

Press Play to start DVD again when you have finished the exercise

Home Brew Program 2009

Scoring the Business

Home Brew Program 2009

ExerciseElement Score Now Where Gap

Leadership 10

People Management 9

Policy & Strategy 8

Resources & Partnerships

9

Processes 14

Customer Satisfaction

20

People Satisfaction 9

Society & Environ. 6

Key Performance 15

TOTAL 100

Home Brew Program 2009

Score BBD from your perspective

against the Excellence Model.

1.Score the NOW.2.Score WHERE BBD needs to be3.Calculate the

Gaps4.Develop Action

Plans to address the Gaps

Click to pause DVDClick Play to start again.

Managing Risk

Failure Mode Effect Analysis

FMEA

Home Brew Program 2009

Risk

• As managers at BBD, you assess and manage risk everyday

• Rarely do we assess risk using objective methodologies (safety and quality audits)

• We can apply a structured process to assessing risks - FMEA

• Failure Mode Effect Analysis

Home Brew Program 2009

10 Step FMEA

Step 1: Agree the product, service, entity or process under review

Step 2: Clearly define the core functions of the entity under review (optional for larger entities)

Step 3: Identify potential failure modes (brainstorm and group)

Step 4: List the potential Failures?

Step 5: What are the effects of each failure?

Step 6: What are the causes of each failure?

Home Brew Program 2009

10 Step FMEA

Step 7: What are the current controls and/or detection methods?

Step 8: Rate the following:– Severity - the consequences of the failure should it occur.

– Occurrence - the probability or frequency of the failure occurring.

– Detection - the probability of the failure being detected before the impact of the effect is realized.

Step 9: Calculate the Risk Priority Number

Step 10: Develop Actions to address top risks

Home Brew Program 2009

Failures Rankings Potential Mode Or Failure

Potential Effects Of Failure

Potential Causes Of Failure

Current Controls/ Detection Methods

Severity (A) 1 = non 3 = slight 5 = moderate 7 = major 9 = serious 10 = hazard

Occurrence (B) 1 = never 3 = very slight 5 = low 7 = mod high 9 = very high 10 = almost certain

Detection (C) 1 = certain 3 = high 5 = medium 7 = slight 9 = remote 10 = almost impossible

Risk Priority Number (RPN)

(A)x(B)x(C)

Signal Loss Unstable Control loop

Faulty Leads Operator 9 5 4 180

Endanger operators

Serious damage

Defects in products

Customers complain

Incorrect Motion

Visual check 4 5 5 100

Faulty products identified

Product/Process/Service: MotorFunction: Provides Voltage Signal and is responsible for final productDate: 24 Oct 06 FMEA prepared by: A. Ameroth FMEA revision date: 8 Jan 07

1. Signal Loss Durability test on leads Who and When By 2. Defects in Products Increase in staff inspection QC checked Set up customer complaint

department.

FAILURE MODE EFFECT ANALYSIS (FMEA)

FMEA Exercise

Complete a Risk Analysis of an area of the business that you are responsible for. Apply the FMEA tool and develop actions to address key areas of risk.

Click on pause to stop the DVD.

Press Play to start DVD again when you have finished the exercise

Home Brew Program 2009

Next Steps

Complete any outstanding exercises

Tools & Templates

Use the Home Brew Site as a reference source

Use the DVDs for review of any particular areas

Home Brew Program 2009

Thanks

Strategy into Action

Home Brew Program 2009