khaled mabrouk, operational engineering leader sustainable productivity solutions, santa cruz, ca

Tips & Techniques for Instilling a Continuous Process Improvement (CPI) CultureKhaled Mabrouk, Operational Engineering LeaderSustainable Productivity Solutions, Santa Cruz, CA

Presenter Background

B.S. Industrial Engineering - Purdue University

30 years experience improving processes in many industries

Part-time Industrial/Simulation Engineering Instructor

Areas of Expertise:

– Solving difficult operational capability problems

– Building CPI (continuous process improvement) Culture

– Coaching leaders on improving employee engagement

– Simulation Modeling and Analysis

Published 20+ papers

Professionally active; including IIE, 6 Sigma Conference Board

AerospaceAgricultureAppliance

AutoBanking

Call CentersConsumable

GoodsDesert Racing

Forest ProductsHigh Tech HW

InsuranceOffice Products

Placement Agency

Postal ServiceSoftware

Specialty CoffeeSteel

TransportationWarehousing

Waste Management

© Sustainable Productivity Solutions 2015ReduceOR.com

Slide 2

Our Company

Our team utilizes an innovative & practical approach to deliver sustainable operational improvement solutions.

We Solve operational performance problems. Facilitate operational improvement teams. Train others to successfully apply operational improvement tools

– We work side-by-side with your team to:• Resolve difficult operational performance problems

• Streamline existing processes

• Instill a continuous process improvement culture

• Use simulation to optimize facility layouts and flows

– Training programs offered both in-house and publicly

Clients: Manufacturers, Produce Growers Shippers, and Railroaders.

Based in Santa Cruz, CA (Bay Area – Central Coast)


Slide 3


Slide 4

Presentation Agenda

Continuous Process Improvement Defined

Common Mistakes When Instilling CPI Page 19

Recommended CPI Strategy Page 29

CPI Implementation Examples Page 55


Page 5

Section Outline:Continuous Process Improvement

Defined

Review of 6 Major Efforts (so far) to improve the science of operational improvement

Continuous Process Improvement (CPI) Defined

Employee Engagement is Critical


Slide 6

Review of 6 Major Efforts to Improve Science of IE


Slide 7

Fredrick Taylor and Scientific Management

Time and Motion Studies

Fell in disfavor for having imageof treating people like machines

“Hawthorne Effect” raised awareness that how we treat frontline people matters


Slide 8

Frank and Lillian Gilbreth

“Cheaper by the Dozen” book/movies based on their life

Formalized science ofIndustrial Engineering (IE)

Over time, IE expanded to include Operations Research, Ergonomics, Quality, etc.


Slide 9

Toyota Production System (TPS)

Japanese manufacturing quality improved significantly from 50s’ to 80s’

Based mostly on Dr. Deming’sQuality Management System

Also based on Henry Ford’s (the first) philosophy of “go to the front lines for ideas to improve”


Slide 10

Six Sigma

Started by Motorola(where is Motorola today? )

Popularized by GE CEO Jack Welchin his effort to improve decision makingby GE executives and leaders

Has grown to be mostly a certification program, with most of its benefits in the Marketing arena


Slide 11

LEAN

Packaging of Toyota Production Systems techniques into “easy-to-understand and apply” tools

Basic Industrial Engineering

Best starting point because of its focus on quickly identifying “low hanging” fruit


Slide 12

Continuous Process Improvement (CPI)

Based on Toyota Production System (TPS)

Requires use of both process tools (LEAN),and people tools (Intrinsic Motivation)

Culture varies by country+,thus don’t blindly follow TPS

Slide 13© Sustainable Productivity Solutions 2015ReduceOR.com

Improve Using LEAN, Evolve to CPI

Continuous Process Improvement (CPI)

LEAN1990s

Six Sigma (Motorola > GE) 1980s

Toyota Production System (TPS) 1950s

Industrial Engineering (Gilbreths) 1920s

Scientific Management (Fredrick Taylor) 1900s


Slide 14

CPI Defined


Slide 15

Continuous Process Improvement (CPI)Frontline teams:

Monitor their operation’s performance metrics

Prioritize operational improvement opportunities

Determine root cause of these operational challenges

Generate and test solutions to resolve these operational challenges

Select and sustain best solutions for these operational challenge


Slide 16

Employee Engagement:From LEAN to CPI


Slide 17

Employee Engagement is Critical

Actively engaged employees deliver greater results

Basic skills to kick start Employee Engagement:

– Publicly praise people

– Drive decision making downwards

– Go into conflict resolution without assuming


Presentation Agenda

Continuous Process Improvement Defined Page 5

Common Mistakes When Instilling CPI




Page 19

Section Outline:8 Common Mistakes When Implementing CPI

1) Focus on Training and Certification

2) Take a Cookie Cutter Approach

3) Heavy Focus on Marketing CPI Effort

4) Leaders Don’t Feel Need to Be Involved

5) Focus on Tools Only

6) Focus on Executive Level Metrics Only

7) Focus on $ Savings (vs. operating margin)

8) CPI Champion Manages Projects


Slide 20

1. Focus On Training and Certification

Certification is seen as an excellent resume enhancer

Don’t know if person with certificate actually knows how to do anything

A common metric of success is number of people certified

Training is focused on teaching many tools

2. Take a Cookie Cutter Approach

CPI champion learned how to do CPI once before, and has learned one way of implementing CPI

Select approach where Sensei shares wisdom, while berating leadership team

Ignore specifics of organization’s culture and needs

3. Leaders don’t feel need to be involved

Leaders expect change to happen at front line only

Leaders not coachable

4. Focus on Tools Only

Ignoring importance of engaging frontline in problem solving process

Don’t realize that there is a “culture/people” aspect to what they need to learn

Need to select path to CPI that fits our culture/people

5. CPI Champion Manages Project

CPI champion should directly manage few projects

CPI champion needs to be an excellent teacher of CPI

“teach a man how to fish” (facilitate vs. do)

6. Heavy Focus On Marketing CPI Effort

A lot of work is put into promoting CPI program before organization has had time to absorb concept

Creates a “program of the month” culture

7. Focus on executive level metrics only

Tendency is to roll down metrics from above

Frontline metrics should have a direct impact on executive level metrics

Frontline metrics should assist frontline leaders in better managing their business

Use Control Charts to drive variability reduction

8. Focus on $ Savings (vs. operating margin)

Focus on rationalizing with $ savings drives creative accounting

At end of the year, $ savings don’t all add up

Understand metrics that drive $ savings, and focus on improving those metrics

Presentation Agenda



Recommended CPI Strategy



Page 29

Section Outline:Strategy for Continuous Process Improvement

Focus on Both Culture Change and Tools Propagation

Become Process Driven, See The Process

LEAN Tools Eliminate Wasteful Activities

Proactively Problem Solve With Control Charts

People Drive the Process, Improve Employee Engagement

Put it all into action With Gemba Boards


Slide 30

Focus on Both Culture Change

and Tools Propagation


Slide 31

Building CPI Culture Requires BothCulture Change & Tools Propagation


5SVisual Mgmt

7 WastesWork/ Wait

Value AddedData Collection & Analysis Pareto Charts

VSMID Failure Points

Root Cause Analysis- Fishbone

- FMEABest Practice Standard Work

Control ChartsID Leading Indicators

Mistake ProofingSMED

Line BalancingLevel LoadingPull Systems

Etc.

Kaizen

Solution Prioritization

Process Mapping

Sustaining Solutions Continuous Process Improvement

Using Gemba Walks

LEAN

CPI Culture

LEAN on Steriods

Leadership TeamChanges Behavior

Front Line TeamEngaged

Culture Change

Tools Propagation



5SVisual Mgmt

7 WastesWork/ Wait

Value AddedData Collection & Analysis Pareto Charts

VSMID Failure Points

Root Cause Analysis- Fishbone

- FMEABest Practice Standard Work

Control ChartsID Leading Indicators

Mistake ProofingSMED

Line BalancingLevel LoadingPull Systems

Etc.

Kaizen

Solution Prioritization

Process Mapping

Sustaining Solutions Continuous Process Improvement

Using Gemba Walks

Tools Propagation



LEAN

CPI Culture

LEAN on Steriods



Culture Change

1st Step is to See the Process


Slide 35

Process Mapping – Field Equipment

Maintenance


Equip. Breaks Down

Field Supervisor

notifies Maintenance

Mgr.

Field Supervisor collects preliminary data in support of

repair effort

Maintenance Mgr. assigns

work to Maintenance

Team

Maintenance Team

prepares truck for trip to breakdown

site

Maintenance Team drives to breakdown

site

Maintenance Team arrives at breakdown

site

Field Supervisor and

Maintenance Team exchange

information

Maintenance Team performs

triage

Are all required tools/

material available?

Can repair be

completed in

field?

Maintenance Team drives back to base

Maintenance Team retrieves missing tools

and/ or material

Maintenance Team drives

back to breakdown site

Arrange for equipment to be hauled to repair site

Maintenance Team starts

repair process

Maintenance Team completes repair process

As repair progresses, are there

other missing tools or

material?

Yes No

No

No

Yes

Yes


Process Mapping – Growing Produce

Meet with sales team to verify

demand projections

Decide on desired volume for next

season

Meet with production team to discuss allocation of demand to land

Generate time to harvest estimates based on varieties, land base, & crops

Generate planting schedule based on

time to harvest estimates

Adjust planting schedule, as

needed

Grower schedules equipment and

labor resources for growing

Execute irrigation and other growing

practices, as needed

Generate tentative harvest schedule

Harvest manager and sales team meet to discuss

volume projection

Harvest manager schedules

equipment and labor resources for

harvesting

Finalize schedule one week before

harvest

Adjust schedule daily based on

communication between grower & harvest manager

Harvest fieldArrange for irrigation

Yes

Will field be

harvested again?

No

Prep land by adding compost,

gypsum, lime sulphur, as needed

Expect to adhere to planting

schedule most of the timeYesIs

projected planting time

after Spring? No Expect to deviate

from planting schedule due to

weather

List field Prep beds Plant field


Slide 38

LEAN’s Focus:Reduce “wait” Time


Slide 39

Value Added vs. Non-Value Added

Customer Value Added (CVA)– Must be performed to meet customer demands– Adds form or feature to end product– Customer is willing to pay for it

Business Value Added (BVA)– Required by business to execute VA work, but adds no value as far as

the customer is concerned– Usually includes activities that are required by law, related to

resource maintenance, or financial reporting

Non-Value Added (NVA)– Unnecessary, wasteful, not required – Rework, duplicate activities, idle time, overproduction, unnecessary

motion, over-processing (exceeding customer requirements), and unnecessary handling (inspection, paperwork, storing, retrieving, moving materials, etc.)


7 Common Types of Waste (NVA)

Waste Description

Over Production Developing extra capabilities that are not necessary

Delay Being ready to move forward, but not having previous/next process activities complete

Transportation Transporting material/people multiple times out of habit (instead of necessity)

Over Processing Doing more work than required

Inventory Partially done work

Motion Excessive task switching

Defects Not having the time, tools, training, or focus to do it right the first time


Reduce Wait Time and NVA Activities


Control Charts:Pro-actively Problem Solve


Slide 43

1st 1Step - Reduce Variability

1) Documented standard processes

2) Measure process adherence

3) Document contingency plans

4) Ensure clear communications

Daily Process Throughput

60

80

100

120

140

160

180

200

Passage of Time

Th

rup

ut

Daily Process Throughput

60

80

100

120

140

160

180

200

Passage of Time

Th

rup

ut

2nd Step - Improve Process

Identify causes of Signals and problem solve them.

signal

noise

Variability in an operation is buffered by some combination of: Increasing Inventory, Increasing Capacity, and/or Increasing Process Times

Control Charts Drive Improvement Focus


Control Charts Monitor Leading Indicators


Control Charts Reduce Fire-Fighting


Slide 46

Build a Productivity Program

Use Control Charts to

track Leading Indicators

Problem Solve in Firefighting Mode

Proactively Problem Solve

NOYES

Intrinsic Motivation Path:Improves Employee

Engagement


Slide 47

Engagement by Job Level (Tower & Perrin 2003 Study)


Job Level Actively Engaged

Actively Disengaged

Senior Executives 53% 4%

Directors, Managers 25% 10%

Supervisors, Foremen 18% 15%

Specialists, Professionals 16% 18%

Non-Management Salaried 14% 20%

Non- Management hourly 12% 25%

Road to Self Management

TALL Hierarchies >>>>>>> Close Supervision

Close Supervision >>>>>>> Self Management

Self Management <<<<<<< Initiative + Commitment

Self Management:LEADERS >>>>>>> Information + AdviceWorkforce >>>>>>> Decide

Workforce Inspiration = Profit


Transitioning to a CPI Culture

Do nottransitionin one step

Yell & ScreamCulture

Blame & ShameCulture

Process DrivenCulture

CI Culture


Building Blocks for Intrinsic Rewards

Choice

• Delegated Authority• Trust in workers• Security (no punishment for honest

mistakes)• Clear purpose• Information

Competence

• Knowledge• Positive feedback• Skill recognition• Challenge• High, non-comparative standards


Meaningfulness

• Non-cynical climate• Clearly defined passions• Exciting vision• Relevant task purpose• Whole tasks

Progress

• Collaborative climate• Milestones• Celebrations• Access to customers• Measurement of improvement


Slide 52

Gemba Boards:LEAN on Steroids


Slide 53

Gemba Boards Drive CPI Behavior


Slide 54

CURRENT PROJECTS

• 2 – 3 projects

• Brief project descriptions

• Highlight progress/results to date

• Key contact

METRICS

• 5 – 7 metrics

• Use control charts spanning 60-day time periods

FUTURE PROJECTS

• Ideas

Presentation Agenda




CPI Implementation Examples


Page 55

Section Outline:Continuous Process Improvement Examples

Organization new to CPI

Organization that has trained leaders on CPI

Organization not ready for CPI


Slide 56

Case Study OneOrganization New to CPI


Slide 57

Organization New to CPI

$50-100 Million per year family owned farming company.

Operations executive has experience with CPI at previous manufacturing companies he worked at.

Company has quadrupled in size in last 5 years, with significant future growth expected.

Approach:– Shadow executives to ascertain culture change needed

– Work with frontline teams to determine biggest issues

– Coach frontline managers as we develop Gemba Boards

– Focus on Improving Problem Solving and Employee Engagement skills


Case Study TwoOrganization With CPI

Trained Leaders


Slide 59

Organization That Has Trained Leaders

$100-500 Million per year family owned manufacturing company.

Operations leadership team has been CPI trained.

Company has quadrupled in size in last 5 years, with significant future growth expected.

Approach:– Convince leadership that they also need to change

– Work with frontline teams to determine biggest issues

– Coach frontline managers as we develop Gemba Boards

– Focus on Improving Problem Solving and Employee Engagement skills


Case Study ThreeOrganization Not Ready for

CPI


Slide 61

Organization Not Ready for CPI

$50-100 Million per year family owned manufacturer

Want to build CPI, but leadership team does not want to change.

Company is growing at a steady 10-15% pace.

Approach:– Help leadership team understand they are not ready for CPI

– Use individual improvement projects to establish base for CPI

– Develop plan for reducing employee disengagement


Presentation Summary PointsBuilding a CPI Culture

Work on both culture and tools propagation

Be “Process Driven”

Use LEAN tools to eliminate waste

Use Control Charts to proactively problem solve

Increase use of Intrinsic Motivation

Use Gemba Boards to involve front line team


LEAN

CPI Culture

LEAN on Steriods



Reference Books

“Creating a LEAN Culture,” David Mann, 2005.

“Intrinsic Motivation at Work,” Kenneth W. Thomas, 2002.

“Lean Six Sigma: Combining Six Sigma Quality with Lean Production,” Michael L. George, 2002

“Toyota Productions System: Beyond Large Scale Production,” Taiichi Ohno, 1988.

“The Toyota Way,” Jeffrey Liker, 2004.

“Understanding Variation: The key to Managing Chaos,” Donald J Wheeler, 2000

“Visual Workplace, Visual Thinking,” Gwendolyn D. Galsmith, 2005.


khaled mabrouk, operational engineering leader sustainable productivity solutions, santa cruz, ca

Documents

operational improvement

recommended cpi strategypage

santa cruz

major efforts

frontline people

ca presenter backgroundb

common mistakes

innovative practical