brainstorming and benchmarking - capital quality … · brainstorming and benchmarking ......

CQI Learning Lunch Brainstorming and Benchmarking

“Practices & Pitfalls” December 6th, 2012

CQI Preview -‐ 9:00 AM to 10:00 AM – Dial-‐In Capital Quality & Innovation

Audio Bridge - Conference Access 1-570-860-0078 Conference Passcode 734 254 9433

Learning Lunch -‐ 10:30 AM to 1:00 PM – In Person University Club of Michigan State

3435 Forest Road, Lansing, MI 48909 517-‐353-‐5111

2012 -‐ SPONSORS

-‐ Higher Quality -‐ Lower Costs -‐ BeJer Workplaces -‐ 07/26/2012

2012 CQI Programs

3

•  Jan 6 -‐ Learning Lunch @ 10:30 AM * –  Con0nuous Improvement Paradigms & Principles

•  Jan 30 -‐ Learning Lunch @ 10:30 AM * –  Innova0on through Accelerated Learning and Quality

•  FEBRUARY 7 -‐ BREAKFAST PROGRAM @7:30 AM –  Ian Bradbury – Design & Control of Quality

•  Feb 21 -‐ Learning Lunch @ 10:30 AM * –  Six Thinking Hats – Change of Thinking For The Millenium

•  MARCH 14 -‐ BREAKFAST PROGRAM @7:30 AM Joe Raelin – The Leaderful Organiza0on & Why It MaPers SEMINAR & WORKSHOP Follows @ 9:15 AM

•  Apr 5 -‐ Learning Lunch @ 10:30 AM * –  Mul0-‐Cultural & Virtual Teams – Changing “Normal”

•  Apr 27 -‐ Learning Lunch @ 10:30 AM * –  Apprecia0ve Inquiry – John Victory

•  May 16 -‐ BREAKFAST PROGRAM @7:30 AM –  Lisa Toenniges -‐ Get the People Performance You Need: Six

Ques0ons to Ask •  May 21 -‐ Learning Lunch @ 10:30 AM *

–  Con0nuous Investment, Over Con0nuous Improvement •  Jun 19 -‐ Learning Lunch @ 10:30 AM *

–  Why Best Efforts Are Never Enough

* CQI PREVIEWS @ 9:00 AM – Every Learning Lunch Morning

•  Jul 10 -‐ Learning Lunch @ 10:30 AM * –  Trea0ng Human Error as an Effect, Not A Cause

•  Aug 1 -‐ Learning Lunch @ 10:30 AM * –  Performance Analysis and Root Causes

•  Aug 21 -‐ Learning Lunch @ 10:30 AM * –  Cultural Influences on Change

•  SEPTEMBER 6 -‐ BREAKFAST PROGRAM @7:30 AM –  Mary Jenkins – Quality In Compensa0on

•  SEPTEMBER 11 – CQI ACADEMY -‐ Introducôn to Quality •  SEPTEMBER 18 – CQI ACADEMY -‐ Voice of the Customers •  SEPTEMBER 25 – CQI ACADEMY -‐ Systems Thinking •  OCTOBER 2 – CQI ACADEMY – Understanding Variaôn •  Oct 8 -‐ Learning Lunch @ 10:30 AM *

–  Leadership versus Management •  Oct 23 -‐ Learning Lunch @ 10:30 AM *

–  Balancing Ac0ons & Thinking •  OCTOBER 24 – CQI ACADEMY -‐ Psychology •  OCTOBER 30 – CQI ACADEMY -‐ Capstone Project Presentaôns •  Nov 13 -‐ Learning Lunch @ 10:30 AM *

–  Having Difficult Conversa0ons -‐ Principles and Tools – Lew DoJerer

•  Dec 6 -‐ Learning Lunch @ 10:30 AM * –  Brainstorming & Benchmarking – Prac0ces & Piaalls

•  DECEMBER 12 -‐ BREAKFAST PROGRAM @7:30 AM –  Jim Manley, Demmer Center for Business Transformaôn


2013 CQI Programs

4

•  Jan 7 -‐ Learning Lunch @ 10:30 AM * –  Idealized Design – StarTng Over With A Clean Sheet of Paper

•  JANUARY 23 -‐ CQI BREAKFAST PROGRAM @7:30 AM –  Jim Link – Ideas and Links

•  Feb 12 -‐ Learning Lunch @ 10:30 AM * –  Cultural Influences on Change

•  Mar 12 -‐ Learning Lunch @ 10:30 AM * –  Understanding a Theory of Knowledge – How We Know What We Know

•  MARCH -‐ CQI BREAKFAST PROGRAM @7:30 AM –  QUALITY IN EDUCATION

•  Apr 9 -‐ Learning Lunch @ 10:30 AM * –  New Neuroscience and Impacts on Thinking

•  MAY -‐ CQI BREAKFAST PROGRAM @7:30 AM –  ABANDON SWOT ANALYSIS AND SOAR TO NEW HEIGHTS -‐ John Victory -‐

•  May 13 -‐ Learning Lunch @ 10:30 AM * –  Systems -‐ How We Define Them, Is Everything

•  Jun 11 -‐ Learning Lunch @ 10:30 AM * –  Customers and Understanding Their Voice

SPRING 2013 -‐ CQI ACADEMY •  March 13 -‐ Introducôn to Quality •  March 27 -‐ Voice of the Customers •  April 10 -‐ Systems Thinking •  April 24 -‐ Understanding Variaôn •  May 8 -‐ Psychology •  May 22 -‐ Capstone Project Presentaôns

•  CQI PREVIEWS ARE SCHEDULED @ 9:00 AM – Every Learning Lunch Morning These are audio conferences on the topic of each month’s Learning Lunch!

•  Jul 10 -‐ Learning Lunch @ 10:30 AM * –  Understanding VariaTon

•  JULY -‐ CQI BREAKFAST PROGRAM @7:30 AM –  QUALITY IN GOVERNMENT

•  Aug 14-‐ Learning Lunch @ 10:30 AM * –  Analyzing Performance in Systems

•  SEPTEMBER -‐ CQI BREAKFAST PROGRAM @7:30 AM –  QUALITY IN HEALTHCARE

•  Sep 9 -‐ Learning Lunch @ 10:30 AM * –  New Learning Systems

•  Oct 10 -‐ Learning Lunch @ 10:30 AM * –  Asking Smart QuesTons

•  NOVEMBER – CQI BREAKFAST PROGRAM – Date TBD –  THE NEW ECONOMICS of QUALITY in INDUSTRY

•  Nov 12 -‐ Learning Lunch @ 10:30 AM * –  Understanding Psychology in OrganizaTons

•  Dec 9-‐ Learning Lunch @ 10:30 AM * –  PredicTon -‐ Problems or SoluTons?

FALL 2013 -‐ CQI ACADEMY •  September 10 -‐ Introducôn to Quality •  September 24 -‐ Voice of the Customers •  October 8 -‐ Systems Thinking •  October 21 -‐ Understanding Variaôn •  November 5 -‐ Psychology •  November 19 -‐ Capstone Project Presentaôns


CQI Academy of Quality Fundamentals

5

CQI QUALITY, INNOVATION & LEADERSHIP FUNDAMENTALS •  6 Tuesdays, Wednesdays, or Thursdays,

–  -‐ 8:00 AM to 4:30 PM •  Located at the University Club of MSU – Henry Center for

Execu^ve Development AIM •  Teach the fundamentals of quality systems, including quality

management, con0nuous improvement, innova0on and leadership exemplified in the System of Profound Knowledge.

•  Learn how these principles, prac0ces and tools can make a significant, posi0ve difference in your professional lives and the organiza0ons you work in.

•  A founda0on for any person or organiza0on that desires to be a leader in quality and innova0on.

COST •  The cost is $2400 for the public and is $1800 for CQI members. The

cost includes all required workshop materials at our loca0ons with refreshments, con0nental breakfast, lunch buffets and snacks each amernoon throughout each of the six days. Also included in the price are pre-‐course assessments and assignments accessible via the web, plus a flash drive with all course content. Parking is free and lodging is available nearby, at an added cost with no markup.

•  Individual, one-‐day sessions of the academy are available by special request and are $900 per person for the public and $600 for CQI members.

APPROACH •  We’ll engage the learner in their own learning, coordinated with your

organiza0on’s leadership. We use accelerated learning/adult learning principles and prac0ces in pre-‐course readings, in workshop dialogue, individual and team exercises, plus homework in interim weeks.

•  We also make our instructors available to learners and your leadership through coached team calls and provide on call advice to par0cipants for their projects.

•  Once we have a minimum of twelve (12) and up to forty-‐eight (48) par0cipants, we send out pre-‐course assessments of learning needs with the pre-‐course assignments.

•  When your individual assessments are returned, we set a joint conference call with the learners and their leaders to develop a capstone project for each par0cipant.

•  On the last day of the academy, the learners will make a presenta0on to your management, customers or both about what you will do with your learning.

•  Amer the academy, we follow-‐up with the cohort members and their leaders or customers, to see how well they use what they have learned.

•  At the conclusion of the Academy, the par0cipants and their leaders will also be asked to confirm their post-‐academy assessment and receive a monthly 0me window to call into a regularly scheduled conference bridge to stay connected to their class.

-‐ Higher Quality -‐ Lower Costs -‐ BeJer Workplaces -‐

+ We have scheduled 12 dates in Spring and Fall 2013 + Contact Dennis Sergent if you want more informaôn + We also are offering mul^ple seat pricing if you send more than one person + We also can suitcase it to your organizaôn and locaôn!

12/05/2012

Today’s Learning Dialogue

•  Today’s Thesis – Brainstorming and Benchmarking –  There are principles and prac^ces for each which are helpful –  There are also piialls to consider

•  Today we look at Brainstorming •  Review defini^ons, models, research & wri^ngs •  And explore impacts on system, team and performance

•  We also look at Benchmarking •  Review defini^ons, models, research & wri^ngs •  And explore impacts on system, team and performance

•  We look at Deming’s work •  PDSA, His 14 Points for Management, 7 Deadly Diseases, etcetera

•  Share Your Dialogue & Thinking •  Dialogue about Pros and Cons •  This feeds our learning


Dennis Sergent 517-‐285-‐5500-‐ 12/07/2011

Brainstorming

Opera0onal Defini0ons (Wikipedia) •  Brainstorming is a group or individual crea0vity technique by

which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its member(s).

•  It was once claimed that brainstorming was more effec0ve than individuals working alone in genera0ng ideas, although more recent research conflicts with this idea.

•  Research con0nues and prac00oners have many methods and models.

Dennis Sergent 517-‐285-‐5500-‐ 12/07/2011

Brainstorming Models

•  Original “Osborn” method –  Two principles contribute to "idea0ve efficacy," these being:

1.  Defer judgment 2.  Reach for quan0ty.

–  Following these principles were four general rules of brainstorming, established with inten0on to reduce social inhibi0ons among group members, s0mulate idea genera0on, and increase overall crea0vity of the group.

•  Focus on quan^ty –  This rule is a means of enhancing divergent produc0on, aiming to facilitate problem solving through the maxim quan&ty breeds

quality. –  The assump0on is that the greater the number of ideas generated, the greater the chance of producing a radical and effec0ve

solu0on.

•  Withhold cri^cism –  In brainstorming, cri0cism of ideas generated should be put 'on hold'. –  Instead, par0cipants should focus on extending or adding to ideas, reserving cri0cism for a later 'cri0cal stage' of the process. –  By suspending judgment, par0cipants will feel free to generate unusual ideas.

•  Welcome unusual ideas –  To get a good and long list of ideas, unusual ideas are welcomed. They can be generated by looking from new perspec0ves and

suspending assump0ons. These new ways of thinking may provide bePer solu0ons.

•  Combine and improve ideas –  Good ideas may be combined to form a single bePer good idea, as suggested by the slogan "1+1=3". It is believed to s0mulate

the building of ideas by a process of associa0on.

•  Other models are everywhere!

7 Management & Planning Tools

•  Affinity Diagram

–  Crea0ve Process to Group Ideas, Issues, Opinions by Natural Rela0onships •  Interrela0onship Digraph (ID)

– Graphic. Logical Display of Interrelated Factors involved with Complex. Mul0ple Variant Problems or Outcomes

•  Tree Diagram

–  Systema0c Map of Primary Goals, Subgoals, Tasks and Paths to Achieve Objec0ves

•  Priori0za0on Matrixes

–  Tasks, Issues or Possible Ac0ons Priori0zed by Known, Weighted Criteria, which Narrows Down Op0ons to the Most Desired or Effec0ve.

•  Matrix Diagram

–  Shows Connec0on or Correla0on Between Each Idea/Issue in One Grouping of Items with Another Grouping.

•  Process Decision Program Chart (PDPC)

– Map of Every Conceivable Event and Con0ngency when Moving From a Problem Statement to the Possible Solu0ons

•  Ac0vity Network Diagram

–  Similar to a PERT or CPM chart; a Plan for a Complex Task and Related Subtasks.

a b c d

1

2

3

4

5

6

a b c d e f g h

X X O

How They Work Together

•  Typical Flow of the 7 Management & Planning Tools

Each Technique can be used effectively alone, but have full effect when used together.

Be creative in your combinations, but disciplined in the use of the tools.

Affinity Diagrams (Story Boarding)

•  DESCRIPTION:

–  Visually gather and organize ideas by category.

•  USE:

–  When data needs to be generated and organized. –  When the team needs to focus to begin moving forward. –  When the team needs a change of pace or rou^ne.

•  PROCESS:

1.   Gather Supplies including Post-‐It Notes and Pens -‐ Then Distribute To Team 2.   Arrange Team Around Wall or Easel(s) To Post-‐It Notes 3.   State the Topic For Considera^on, Ask Them To Think About Their Own Ideas 4.   Team Writes Ideas on Post-‐It Notes & Posts Them Un^l all Ideas Are Posted or Time Runs Out 5.   Team Organizes Notes By Iden^fying Categories 6.   Post Categories Across Top of Wall or Board 7.   Place Ideas Under Categories 8.   Refine Ideas By Category With Further Idea Descrip^ons (What, When, Why, Where, Who, Why) 9.   Repeat As Needed 10.   Summarize Ideas On Document, To Share Via E-‐Mail or Post on Web

Brainstorming – Pros and Cons

•  Pros •  Cons


Dennis Sergent 517-‐285-‐5500-‐ 12/07/2011

Benchmarking

Opera0onal Defini0on (Wikipedia) •  Benchmarking is the process of comparing one's business processes and performance

metrics or best prac0ces from other industries.

•  Dimensions typically measured are quality, 0me and cost.

•  In the process of benchmarking, management iden0fies the best firms in their industry, or in another industry where similar processes exist, and compare the results and processes of those studied (the "targets") to one's own results and processes.

•  In this way, they learn how well the targets perform and the business processes that explain why these organiza0ons are successful.

•  Benchmarking may be a one-‐off event, but is omen treated as a con0nuous process in which organiza0ons con0nually seek to improve their prac0ces.

Dennis Sergent 517-‐285-‐5500-‐ 12/07/2011

Benchmarking – Several Types

•  Process benchmarking -‐ the ini0a0ng firm focuses its observa0on and inves0ga0on of business processes with a goal of iden0fying and observing the best prac0ces from one or more benchmark firms. Ac0vity analysis will be required where the objec0ve is to benchmark cost and efficiency; increasingly applied to back-‐office processes where outsourcing may be a considera0on.

•  Financial benchmarking -‐ performing a financial analysis and comparing the results in an effort to assess your overall compe00veness and produc0vity.

•  Performance benchmarking -‐ allows the ini0ator firm to assess their compe00ve posi0on by comparing products and services with those of target firms.

•  Product benchmarking -‐ the process of designing new products or upgrades to current ones. This process can some0mes involve reverse engineering which is taking apart compe0tors products to find strengths and weaknesses.

•  Strategic benchmarking -‐ involves observing how others compete. This type is usually not industry specific, meaning it is best to look at other industries.

•  Func^onal benchmarking -‐ a company will focus its benchmarking on a single func0on to improve the opera0on of that par0cular func0on. Complex func0ons such as Human Resources, Finance and Accoun0ng and Informa0on and Communica0on Technology are unlikely to be directly comparable in cost and efficiency terms and may need to be disaggregated into processes to make valid comparison.

•  Best-‐in-‐class benchmarking -‐ involves studying the leading compe0tor or the company that best carries out a specific func0on.

•  Opera^onal benchmarking -‐ embraces everything from staffing and produc0vity to office flow and analysis of procedures performed.

Benchmarking Methods & Models

•  The 12 stage methodology consists of: –  Select subject –  Define the process –  Iden0fy poten0al partners –  Iden0fy data sources –  Collect data and select partners –  Determine the gap –  Establish process differences –  Target future performance –  Communicate –  Adjust goal –  Implement –  Review and recalibrate

•  Other models abound

Dennis Sergent 517-‐285-‐5500-‐ 12/07/2011

Benchmarking – Pros and Cons

•  Pros •  Cons


Manufacturing-Service System Chart

•  Stage or Phase “0” Innova0ons feed the Process at Design & Redesign •  Stage “0” Generates Ideas

Deming’s use of this chart in Japan demonstrated the process as a system

Sergent Results Group -‐ Copyright 2012

Suppliers of information, material, equipment

Receipt and test of information & materials

Test of process, machines, methods, costs, user acceptance

Production, assembly, inspection, conformance

Design and redesign Consumer Research

Distribution

Consumers of products & services

A

C

B

D

07/26/2012

•  What’s in the system affects the system, what goes around comes around •  Focus on one part of the system only -‐ makes the whole less op^mal •  Every part is downstream in the system •  Human effects are everywhere in the system

Sub-Optimizing the System

Suppliers of information, material, equipment

Receipt and test of information & materials

Test of process, machines, methods, costs, user acceptance

Production, assembly, inspection, conformance

Design and redesign Consumer Research

Distribution

Consumers of products & services

A

C

B

D

Innovation

07/26/2012


What is Your Aim?

Use your PDSA Cycle and Ask:

•  What are we trying to accomplish?

•  How will we know that a change is an improvement?

•  What changes can we make that will result in an improvement?

Act Plan

Do Study


Management’s Job

•  Sponsor and energize the determination of the aim

•  Clarify the aim for everyone in the organization

•  Direct the efforts of all components toward the aim of the system

•  Focus on a system of quality •  Manage the system •  Achieve the best results for everybody—

everybody win •  Manage changes brought by time •  Predict, as far as possible, changes that time

will bring •  Be ready to change the boundary of the

system to better serve the aim •  Be ready to redefine the components of the

system

•  Imagination •  Govern their own future and not be victims of

circumstance •  Change the course of the company and the

industry by anticipation of needs of customers •  Learn that in order to compete, they must

learn to cooperate •  Be guided by theory, not figures •  Recognize and manage the interdependence

between components •  Resolve conflicts and remove barriers to

cooperation •  Improve quality without running equipment

and employees to exhaustion


W. Edwards Deming 07/26/2012

The Fourteen Points Key to understanding 14 Points is variation. More special cause variation equals more waste

Deming’s 14 points are paraphrased here:

1.  Create constancy of purpose towards improvement. •  Replace short-term reaction with long-term planning.

2.  Adopt the new philosophy. •  Management should walk the talk.

3.  Cease dependence on inspection. •  Managed variation eliminates need to inspect for defects.

4.  Move towards a single supplier for any one item. •  Multiple suppliers mean variation between feedstocks.

5.  Improve constantly and forever. •  Constantly strive to understand and manage variation.

6.  Institute training on the job. •  Adequately trained staff will all work the same way, and reduce variation.

7.  Institute leadership. •  Mere supervision is quota - and target-based

8.  Drive out fear. •  Long term, it prevents workers from acting in the organization's best interests.

9.  Break down barriers between departments. •  Use the 'internal customer', that each department serves other departments that use its output.

10.  Eliminate slogans. •  It's not people who make most mistakes - it's the process they are working within.

11.  Eliminate management by objectives". •  Deming saw production targets as encouraging the delivery of poor-quality goods.

12.  Remove barriers to pride of workmanship. •  Many of the other problems outlined reduce worker satisfaction.

13.  Institute education and self-improvement. •  Harassing the workforce without improving the processes they use is counter-productive.

14.  The transformation is everyone's job. •  “You do not have to do this. Survival is not compulsory.”

Sergent Results Group -‐ Copyright 2012 07/26/2012

Constancy of Purpose

•  How management can begin to transform! –  And how employees, suppliers and customers can know the intentions

of management and leadership –  And see the difference

•  What is management’s aim? –  A mission statement should state a social value. –  It must provide a long-term purpose

•  Where do you want your organization to be five years, ten years or twenty years from now? –  This can change, but not shift with each wind or fad –  Give the details of the methods to accomplish the transformation

•  Why do workers and managers need to know the mission? –  So they can all plan for the future


Adopt the new Philosophy

“We can not live with the levels of productivity that we once tolerated”

•  Economic view of productivity = –  Output/Input –  If quality is poor, then output will be less than it can be

•  Bad quality work items are in the system and must be scrapped or reworked

•  When output is low and input is high = –  Productivity is very low

•  Improve quality to reverse the system = –  Output goes up, input goes down, productivity shoots up

•  Automation costs more than improving quality to improve productivity –  Output goes up, so does input to pay for automation –  Productivity goes up slowly, if at all


OUTPUT or “O” INPUT or “I”

PRODUCTIVITY or “P” =

O I P =

O I P =

O I P =

07/26/2012

Transformation Process Described by Deming

•  Compared to the PDSA/PDCA Cycle

GAIN KNOWLEDGE APPLY

KNOWLEDGE CONTINUE TRANSFORMATION

START PHASE

START TASK

THEORY + EXPERIENCE = KNOWLEDGE

There are a number of dependencies between the Phases and Tasks which are not depicted.

Read books, papers, see videos, and other sources

In not, then either theory or experience misleads us.

Develop theories and test them in organiza^on

If theory and experience match, then we have a

bever theory, awer many tests, we have knowledge

Then, we can use knowledge to improve our

enterprise

Do the results match the

theory?

Dennis Sergent 517-‐285-‐5500 -‐ 03-‐21-‐2012 -‐ Higher Quality -‐ Lower Costs -‐ BeJer Workplaces -‐

Seven Deadly Diseases

1.   Lack of constancy of purpose 2.   Emphasis on short-‐term profits 3.   Evalua^on by performance, merit ra^ng, or annual review of performance 4.   Mobility of management 5.   Running a company on visible figures alone 6.   Excessive medical costs 7.   Excessive costs of warranty, fueled by lawyers who work for con0ngency fees A Lesser Category of Obstacles includes: •  Neglec0ng long-‐range planning •  Relying on technology to solve problems •  Seeking examples to follow rather than developing solu0ons •  Excuses, such as "our problems are different" •  Obsolescence in school that management skills can be taught in classes •  Reliance on quality control departments

–  Rather than management, supervisors, managers of purchasing, and produc0on workers •  Placing blame on workforces who are only responsible for 15% of mistakes

–  When the system designed by management is responsible for 85% of the unintended consequences •  Relying on quality inspec0on rather than improving product quality


Systems & Dependencies


Lunch!

Let’s collect our lunch!

•  Room will be secure

•  Staff will take your drink orders when you return

•  While you lunch, con^nue the dialogue

•  Make sure everyone is heard from

•  Be prepared to share your answers to the following ques^ons!


Table Discussions

AT EACH TABLE DISCUSS: •  WHAT ARE OUR NEXT ACTION STEPS?

–  What did we learn here? –  What do we need to discuss next? –  Who else needs to hear about this? –  What will we do with our learning? –  What adds value to you and your organiza^on? –  What are the posi^ve avributes you can use? –  What are the differences which influence your thinking?


Brainstorming & Benchmarking -‐ CQI Learning Lunch

•  Success/Highlight

•  Key Learning

•  Improve

•  Next Steps


CQI Learning Lunch Brainstorming and Benchmarking

“PracTces & Pifalls” December 6th, 2012

Learning Lunch -‐ 10:30 AM to 1:00 PM

brainstorming and benchmarking - capital quality … · brainstorming and benchmarking ......

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