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Operational Excellence inStrategy Execution

Success through Hoshin Kanri

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Agenda…

Introduction to Ted Lemmers

Introduction to BMGI

Why Operational Excellence?

What is Hoshin Kanri?

What does a Hoshin Plan looks like?

Top 5 Dos & Don’ts

Why now?

Challenges you will face

How & Where to Start

Questions & Answers

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Ted Lemmers, Senior Client Partner, BMGI

Married, 3 children.

10+ year NVDO Member, North Netherlands.

Continuous Improvement Consultant.

Maintenance management, Shut down optimization, business process optimization.

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BMGI: 16 Years of Building Success

BMGI is an operational strategy consulting firm focusing on Strategy, Innovation, Operational Excellence and Change Management. Our emphasis is on the practical side of strategy—making sure you have clear direction and goals while ensuring those goals are truly achievable.

Global Business, Local People.

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BMGI Partners with:

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From Strategy to Execution

BMGI helps you align your local and global sites around a shared Continuous Improvement strategy and then create a plan for successful implementation and sustainable advantage in your daily operations.

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As usual I will start by quoting the definition from Wikipedia, Swati Ranganathan

“Operational Excellence is a philosophy of leadership, teamwork and problem solving resulting in continuous improvement throughout the organization by focusing on the needs of the customer, empowering employees, and optimizing existing activities in the process.”

Operational Excellence

Operational Excellence: DefinedIt is when each and every employee can see the flow of value to the customer, and fix that flow when it breaks down.Apr 18, 2007By Kevin Duggan, President, Duggan & Associates

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The phrase “Operational Excellence” speaks for itself. You can easily explain what it means to be “operationally excellent,” but can you explain what it takes to become operationally excellent?

The essence of operational excellence is problem solving.

Methods & Tools:

Lean Lean Six Sigma Design for Lean Six Sigma Business Process Management Innovation and Design Hoshin Planning Daily Management

Operational Excellence By BMGI

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A Japanese word

Origins at the Kobe shipyards and at Bridgestone around 1965-67

Ho Shin Kan Ri:‘Shining Metal Pointing Direction’

A compass!!

What is Hoshin Planning?

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7 Step Hoshin Planning Process

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Documenting the Hoshin Process

NOTE: Only Solid

dots on a resource

deploy to the next

level

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The Top Level Matrix

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Second Level Matrix

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Symptoms that your Organization Would Benefit from this

Organizations Will See….

Too many bad projects on-going.

Very long lead-times for improvements.

Constantly missed budgets and forecasts.

Senior management vision does not match organizational activities.

Annual objectives rolled out in March instead of January.

Way too many good projects in process.

Year to year plans never seem to connect.

Most employees never seem to feel a part of the team.

Little connection between strategy and continuous improvement.

Common Issues That Surface

Too many top level objectives.

Objectives do not cascade deep enough into the organization.

No action plans in place at the point where cascade ends.

Infrequent follow up.

Opinion rather than fact based countermeasures.

Adding objectives at lower levels that do not tie or link to previous levels.

Deployment of daily management as breakthrough objectives.

Targets not measurable or SMART.

Fear of stepping outside a comfort zone when setting stretch objectives.

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So Where do you Find Yourself?

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Dos & Don’ts

Dos

1. Take the time to setup

2. Align with budget cycle

3. Census all improvements

4. Use innovation tools

5. Pilot in one business unit

Don’ts

1. Make this just a tracking tool

2. Underestimate resistance to change

3. Cover just financial objectives

4. Forget to review the process

5. Do this “alone”

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Breakthrough

Kaizen

Daily Management

Senior Mgt

MiddleMgmt

Supervisor

Operator

Develop 3-5 Year Objectives

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Linking to Performance Operational Excellence

Top Level Bowling Chart

Second LevelBowling Chart

Action Plan

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Where & How to Start?

1. Raise awareness of (lack of) connection between Strategy & Execution at Executive Management Team/Board Level

2. Build the X-Matrix of the “Current State”

3. Clean and simplify current state at Senior Management Level

4. Devise your Hoshins

5. 2nd clean and alignment to Hoshins

6. Proceed with completion of X-Matrix for the “Future State” in one Business Unit

7. Execute!

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Questions & Answers

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Thank you

Contact detailsMail: Ted.lemmers@BMGI.com

LindedIn: nl.linkedin.com/in/tedlemmersPhone: +31612831087