th17 - filling in the gaps

8/3/2019 TH17 - Filling in the Gaps

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Christopher K. Ahoy, APPA Fellow2006-2007 APPA President

Associate Vice President, Iowa State UniversityManagement Consultant

Filling in the GapsMay 13th, 2010

10:00 am 11:30 am

Christopher K. Ahoy Copyright March 1, 1997 All rights reserved- Source Creating a World -Class Organization lecture Series


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Operations Management III- MGT323 2


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Filling in the GapsSolutions

1. Institution and Logic2. Common Sense3. Common Science4. Complex Science5. Invention

3



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Tree of Knowledge

Explicit

Tacit

Low Hanging Fruits

Fruits at the Top

Fruits from theMiddle of the Treeuits in the Middle



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Tree of Knowledge

Common Sense

Common Science

Complex Science

Low Hanging FruitFruits on the Ground

Intuition and Logic

Fruits on the top of the tree

Fruits in theMiddle

Explicit Knowledge

6

4-5

3

1-2

>6

Tacit Knowledge

TRIZ--Inventive

Problem Solving Methodology

Page 69 Chapter 3 Figure 3.3Christopher K. Ahoy Copyright March 1, 1997 All rights reserved- Source Creating a World -Class Organization lecture Series


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World-Class OperationExplicit & Tacit Knowledge

Complex ScienceSolutions

Common ScienceSolutions

Common SenseSolutions

Logic & IntuitionTribal Knowledge

Lean Doing the RightThings

Doing Things Right

D M A I C

TRIZ

D F S S

Tacit

E x p

l i c i t

Low Hanging Fruits Fruits on the Ground

Sweetest Fruits are at the top

G A P 2

G A P 3

G A P 1

Inventive Solutions

Page 70 Chapter 3 Figure 3.4



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GAP 2

GAP 1

What Couldbe

What Should be

What is

(PIS SED OFF Line)

Customer Delight

Customer Satisfaction

Neutral

Dissatisfaction C u s

t o m e r

S a t i s f a c t

i o n

J o u r n e y

Raising the Bar to achieve Customer Success

Ahoy Model Customer Success

Future State

Ideal State

Current Reality

Outstanding

Good

Excellent

Great

Low level Logic and Intuition Zone.Tribal Knowledge

World Class is greater than 6

One Plus More

Moment of Magic

Moment of Truth

Middle level Logic and Intuition

High level Logic and Intuition

GAP 3

Customer Success

C u s

t o m e r

F o c u s

Page 138 Chapter 7, Figure 7.2Christopher K. Ahoy Copyright March 1, 1997 All rights reserved- Source Creating a World -Class Organization lecture Series


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GAP

GAP

Could be

(World Class)

Should be

(Average)

As is

(PISSED OFF Line)

Must Be

More Is Better

Delighters

Absent Fulfilled

Presence of the CharacteristicKano ModelCustomer Satisfaction

Delight

Neutral

Dissatisfaction

New Bottom Line Ahoy

C u s t o m e r S a t i s f a c t i o n

Must be (Must do) Absence creates anger

More is better The more the better (within reason)

DelightersGap (Ahoy)

Presence creates surprise and delightGap must be filled at the input beforeprocess (leading indicators PMMME)

Customers View of Quality Ahoy/Kano Model

Christopher Ahoy dated March 1, 1997 Modified April 16, 2004 All rights reserved 1997, Customer Success through Creating a World Class Operation


Future State

Ideal State

CurrentReality

Quality = Less variance

PMMME = People, Machine, Material, Method, and Environment

Definitions

See Figure 7.2 for this area


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10

How to raise the bar up

GAP

GAP

Could be6 Complex Science

(World Class )

Should be

(Average) 3 Common Sense

As is(PIS SED OFF Line)

Must Be

More Is Better

Delighters

Absent Fulfilled

Presence of the CharacteristicKano Model modifiedCustomer Satisfaction

Delight

Neutral

Dissatisfaction


C u s

t o m e r

S a

t i s f a c

t i o n


Future State

Ideal State

CurrentReality

( W o r l

d C l a s s

)

Delighters

More Is Better

4-5

Common Science

Must Be


Customer Succes sGreater than six sigma

1 2

34

Good

Great

Customer Focus


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11

How to raise the barpage 159 Leadership in Facilities Administration

GAP

GAP

Could be(World Class)

Should be

(Average)

As is(PIS SED OFF Line)

Must Be

More Is Better

Delight

Neutral

Dissatisfaction


C

u s t o m e r

S a t i s f a c t i o n


Future State

Ideal State

CurrentReality

W o r

l d C l a s s

More Is Better

Must Be


Customer Success

Good

Great

Customer Delight GAP

MOT

MOM

Outstanding

Excellent

C u s

t o m e r

F o c u s

One Plus More

Source: Ahoy 1997 Creating A world class Operations, Lecture Series

(Current State)

C

u s t o m e r

S u c c e s s

C

u s t o m e r

D e l

i g h t

absence Fulfillment

(Future State )

(Ideal State)


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12

Customer-Driven Operations Management

Chapter 1: Where Does a World-Class Journey Begin? Chapter 2: Creating a World-Class Organization Chapter 3: Where to Start Your Journey Chapter 4: Stages of Change Chapter 5: Levels of Development Chapter 6: Who Is The Customer? Chapter 7: Customer Focus Chapter 8: Organizational Design Chapter 9: Metrics Chapter 10: Systems Approach and Filling in the Gaps

Chapter 11: Quality Tools Chapter 12: Trends Facing a World-Class Journey Conclusion



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Creating a World-ClassOrganization

Chapter One

Christopher K. AhoyPresenter



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Customer-Driven Operations Management

Oregon Institute of Technology

Operations Management III MGT #323

Syllabus

Spring 2010

Instructor Karl Schultz P&f: (503) 625-1135 C: (503) 913-6558 (4-6PM before class) Email: [email protected] (use instead of OIT mail address) Texts The main text will be the Customer-Driven Operations Management. The other text, as cases, will

be used to supplement the main text.

Customer-Driven Operations Management: Aligning Business Processes and Quality Tools to CreateOperational Effectiveness in Your Company, 1 st edition, 2009. Ahoy. McGraw-Hill. ISBN 13-9780071608312, hard back.

Operations Management Cases, 1 st edition, 2005. Gehrlein. McGraw-Hill. ISBN 13-9780072918663. Soft back.

mailto:[email protected]:[email protected]


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Chapter 1: Where Does aWorld-Class Journey Begin?

Topics Where The Journey Began Process Mapping The Process Owner

Benchmarking Knowledge Management Knowledge Capital Knowledge Assets Alignment Alignment and Organizational Commitment

Alignment For Customer Success Alignment For Customer Success Through

Partnering For Profits Self-Assessment

Setting The Stage For StrategicPlanning

The New Environmental Impacts Quality Improvements Strategic Planning: The Basics Why Strategic Planning? Keys To Successful Strategic

Planning and Implementation Designing How To Get There

How Long Will It Take? What Is A Values-Based

Organization? Integration Reaching The Ideal State Of A

World-Class Organization



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16


Alignment Consistency to support organization-wide goals. Pioneers vs. Settlers vs. Transformers vs. CAVE

Alignment and Organizational Commitment Cross-functional alignment Alignment relationship to behavior and change Steps, conditions, paradigms, and zones of influence, see Fig. 7.2, pg. 138.



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Alignment and Organizational Commitment (cont.) Baldrige Award:

www.baldrige.nist.gov/PDF_files/2009_2010_Business_Nonprofit_Criteria.pdf

Balanced Scorecard:http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx

Measurement Process Management Lean and Six Sigma

http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspxhttp://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspxhttp://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspxhttp://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx


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Performance Improvement Toolkits

Project MgmtOn-time, On-budget,On-Scope

Change MgmtBehavior Alignment Psychology

BalancedScorecard Plus

Strategy and Metric Alignment

LeanWaste Reduction

Six Sigma Defect Reduction

ISO9000Process Improvement

And Control

BaldrigeOrganizational

Assessment & Review

7 MPManagement and Planning Tools

TOCConstraint Identification

And Policy Alignment



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Alignment and Organizational Commitment (cont.) Quality Tools High-Level Relationship Building

Alignment for Customer Success Exceeding expectations More in Chapters 7 & 9



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Alignment for Customer Success Through Partneringfor Profits Three key areas - fits:

1. Strategic2. Cultural3. Operational

Self-Assessment Periodic reviews to evaluate cross-functional alignments Baldrige Award self-assessment:

www.baldrige.nist.gov/PDF_files/2009_2010_Business_Nonprofit_Criteria.pdf



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Process Mapping Quality tool - from current, to future state, to the ideal state.

Ideal State

Current State

Future State

Next Future State


Wh t ill it t k t g t


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Figure 5.6 Blanchard/Waghorn P & F sigmoid-Curves Plus the Ahoy I Curves

Trough of Chaos

and Confusion

Blanchard and Waghorn F-Curve

Two Cycles

Blanchard & WaghornP & F-Curve

Present

Ahoy F-Curve

Blanchard & Waghorn P-Curve

Future

Blanchard & WaghornOrganization GrowthMission Possible

P e r

f o r m a n c e

What will it take to get to the next level of

performance ?

FP Ahoy I-Curve

Three Cycles

Ahoy P-Curvealso

Line of Sight depends onwhere the organization isin the continuums of CQI

FF

I

Ahoy I-Curve


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GAP 2

GAP 1

What Couldbe

What Should be

What is

(PIS SED OFF Line)

Customer Delight


Neutral


t o m e r

S a t i s f a c t

i o n

J o u r n e y



Future State

Ideal State

Current Reality

Outstanding

Good

Excellent

Great



One Plus More

Moment of Magic

Moment of Truth



GAP 3

Customer Success

C u s

t o m e r

F o c u s



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Sigmoid Learning Curve

Sigmoid CurveOne life cycle

3-7 years

As is

What Must be

What Should be

What Could be

More than better

LearningCurve

Current RealityState

Future State

Ideal State

G A P

G A P

CustomerSuccess

Customer Delight

Customer Satisfaction Moment of Truth

Moment of Magic

One Plus More

World Class

Good

Great

What must do = P IS SESD Off Line

Trough of Chaosand confusion

Path Finding

Alignment

G A P

What Can be

C u s

t o m e r

F o c u s

A

A

B

B

You can get stuck here if you dontkeep your focus on the future goals(peaks) you are striving to achieve.

C

C

Chapter Five Levels of Development,see Figure 5.3 Sigmoid Curve

Chapter Four Stages of Change, see Figure 4.3 Moving

through the Trough of Chaos

M i h h h T h f Ch f P h F


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Moving through the Trough of Chaos from Past to the Future

External

Interna l

Past Future

See Figure 4.2Process of Getting There?

Getting into the DitchComing out of the Ditch

Strugglers Thrivers

Victimized Personalized



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Process of getting thereOrganization/Personal Transition

Survivors

CreateAwareness

Acceptance of Change

Growth & Prosperity

Commitment & Adaptation

Reassessment of Values

Shock & Denial

Anger & Blaming

Grief & Nostalgia

Victimized Personalized

Strugglers Thrivers

Why Stay?

Career/ProfessionCompany/Organization

IndividualCompany

Alignment

CANEQIAI1997 2008


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Chapter 1: Where Does aWorld-Class Journey Begin ?

Where The Journey Began

Systemic way involving system thinking and empowerment.Chose flatter organization structure vs. traditional command-and-control

Moved from tasks to process focusQuestions list, see pg. 3Process-centered approachDefective process resultsBettering processes list, see pg. 4

Organization designTQM concernsHandoffs = NVA list, see pg. 6

The first step in resolving these problems is process mapping .



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Process Mapping (cont.)Quest to become the best begins with - attitude, process, and tools(Chapter 2).The Process Map

Picture - most important quality toolThree stages of activities

GE Personnel Accounting example (shown in class)Mapping the Existing Processes

Looking for non-valued added work If you cant track it, you cant measure it.See example: www.fpm.iastate.edu/worldclass/process_mapping.asp

The Process OwnerSee list, pg. 9


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Benchmarking

Point of reference from which measurements may be made. Five types1. Internal2. Competitive3. Quantitative4. Functional

5. Generic



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31

Benchmarking RoadmapGETTINGSTARTED

Planning,Organizing,

andManaging

forbenchmarking

PREPARINGTO

BENCHMARKIdentify key

process.Form team.Understand

your ownprocesses.

CONDUCTINGRESEARCH

Collectinformation:Who's the

best?What to

ask?

SELECTINGWHO TO

BENCHMARKEstablish

relationship.Plan to collect

and shareinformation.

COLLECTINGAND SHARING

INFORMATIONSurveysSite visits

Determineany third

parties

ANALYZINGADAPTING AND

IMPROVINGCompare data.Plan to surpass.Implement and

Monitor.Improve.

Continuous Quality Impr ovements



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32


Knowledge Management The right information for right people at right time

Intellectual capital and data mining

Knowledge Capital Provides competitive advantage

Knowledge Assets Accumulated intellectual resources



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33

Performance Excellence Definition

Delivery of ever improving value tocustomers, contributing to marketplacesuccess

Improvement of overall organizationaleffectiveness and capabilities ( operationalexcellence )

Building equity (Organizational andpersonal learning)



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Operations Management III- MGT323 35


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GAP 2

GAP 1

What Couldbe

What Should be

What is

(PIS SED OFF Line)

Customer Delight


Neutral


t o m e r

S a t i s f a c t

i o n

J o u r n e y



Future State

Ideal State

Current Reality

Outstanding

Good

Excellent

Great



One Plus More

Moment of Magic

Moment of Truth



GAP 3

Customer Success

C u s

t o m e r

F o c u s



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Setting the Stage for Strategic Planning Begin with the end in mind

The New Environmental Impacts Timing Agile Globalization Issue of doing more with less

Quality Improvements Key to success



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Strategic Planning: The Basics Crisis management vs. anticipating

Why Strategic Planning? Reasons, list pgs. 27 & 28

Keys to Successful Strategic Planning and

Implantation Commitment Credibility Communication



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Designing How to Get There See Fig. 3.2, next Predetermined solutions vs. paradigm shift

How Long Will it Take? No quick fixes Stages, see Fig. 2.3, next Its never over - TPS

What is a Valued-Based Organization? Developing a mastery of skills and knowledge



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Integration Process aligned and right conditions = effective

organization Baldrige Criteria:

Reacting to problems Early systematic approaches Alignment approaches Integrated approaches



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Reaching the Idea State of a World-ClassOrganization When?

Struggle to maintain Customer focused - internal and external Focus on core values Operate expertly Stakeholders

Customers Employees Questions - see pgs. 33 & 34

Answers take operations to next level of excellence!


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Topics Where The Journey Began Process Mapping The Process Owner

Benchmarking Knowledge Management Knowledge Capital Knowledge Assets Alignment Alignment and Organizational

Commitment Alignment For Customer Success Alignment For Customer Success

Through Partnering For Profits Self-Assessment

Setting The Stage For StrategicPlanning

The New Environmental Impacts Quality Improvements Strategic Planning: The Basics Why Strategic Planning? Keys To Successful Strategic

Planning and Implementation Designing How To Get There

How Long Will It Take? What Is A Values-BasedOrganization?

Integration Reaching The Ideal State Of A

World-Class Organization


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Baldrige Criteria - Business

Performance Excellence Framework:A Systems Perspective


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Baldrige Criteria Definition

A proven framework for performance excellence adopted byCongress in 1987 and used by more than 1500 applicants. More than 2000 examiners have been trained nationally and

more than 25,000 examiners trained in state and local awardprograms.

Since 1996- 25 of 34 award winners have been state awardrecipients

73 have received NMBQA in the 20 years 2007- -At the State of Iowa in the past eight years, there have

been sixty-two ( 62) applications for the performance excellenceawards. Thirty-two ( 32) organizations have been recognized fortheir achievements--two (2) at the gold level, eleven ( 11) at thesilver level, and nineteen ( 19) at the bronze level.


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1. Visionary Leadership2. Customer-Driven

Excellence

3. Organizational &Personal Learning

4. Valuing Employees &Partners

5. Agility

6. Focus on the Future7. Managing for

Innovation

8. Management by Fact9. Public Responsibility &

Citizenship10. Focus on Results &

Creating Value11. Systems Perspective

Performance ExcellenceCore Values


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1997 Transformation

1

2

3

4

5

6

7

8

9


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Thank YouQuestion and

[email protected]

48

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th17 - filling in the gaps

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