baxter business excellence model

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Baxter Business Excellence Model

Michael R. WhismanDirector, Quality

Baxter Healthcare Corporation

© Copyright 2006, Baxter International, All Rights Reserved2

Michael (Mike) R. Whisman

Ex-Army Captain (Viet Nam Era)

Over 33 Years – Healthcare Industry (Manufacturing & QA)

20 Years at Baxter

Baldrige Examiner (1997 – 2009)

Shingo Examiner (2005 – 2009)

ASQ ITEA Judge (2002 – 2009)

Chairman, ASQ Team & Workplace Excellence Forum (2008 – 2009)

BS – Management (Texas A&M)

MBA – Pepperdine Univ.

6-Sigma Black Belt

Baxter Master Black Belt

40 Years - Married – 2 Grown Kids, 1 New Grandson & Puppy


Questions

How many are implementing models?

What kind of issues do you face?

How many believe you have to have support from the top to successfully implement?

Let’s take a look at the model we use at Baxter


MODEL - OVERVIEWMODEL - OVERVIEW

Baxter Business Baxter Business Excellence ModelExcellence Model


Value Streams & Key Metrics

Lean Six Sigma

Total Employee Involvement

Improvement Opportunity Identification and Prioritization

Strategic Challenges

Tool Set

Tangible, Verifiable Results

Strategic Objectives

ASSESS

ALIGN

INTEGRATE

Baxter Business Excellence ModelBaxter Business Excellence ModelComplete ViewComplete View

DFSS / DMAIC Methodology



Lean Six Sigma




6 * Kaizen ** Lean ***




Provides focus, ensures alignment of

all employees towards common goals, time-tables and targets.

TOOLS * Six Sigma – Variation

** Kaizen – Quick Change*** Lean – Waste

Baxter Business Excellence ModelBaxter Business Excellence ModelWith PicturesWith Pictures


Strategic Challenges and Objectives

StrategicChallenges

Operational SupplierBusinessOrganizational Competitor/Market

1. 2. 3. 4. 5.

StrategicObjectives

Note: Strategic Objectives can cover multiple Strategic Challenges

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Internal Strategic Challenges External Strategic Challenges

Customer

Key StrategicChallenges

Key StrategicObjectives



Lean Six Sigma




6 Kaizen Lean




Map processes that support key strategic objectives and create

customer value. Include baseline on key measures and

targets for improvement; lead time, cost, quality,

yield, etc.

Baxter Business Excellence ModelBaxter Business Excellence Model


Value Streams and Key Metrics

StrategicChallenges

Operational SupplierBusinessOrganizational Competitor/Market

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Internal Strategic Challenges External Strategic Challenges

Customer

Key StrategicChallenges

Key StrategicObjectives

Key Metrics: 1, 2 1 1, 2

Targets: A, B A A, B



Sales & Marketing

Manufacturing Environment, Health, &Safety

Finance

Human Resourc

es

Supply Chain

Quality & Regulato

ry

Information

Technology

Product Developm

ent

Move from departmental thinking…


Value CreationProduct

Development Product

Manufacturing Supply

Chain

Supplier Customer

Information Technology

Finance

Human Resources

Sales & Marketing

EH&SQuality &

Regulatory


….To process thinking driven by key metrics with customer and business excellence line-of-sight


50 min.10 sec.

25 Min.

30 sec25 min.

30 sec.50 min

20 sec.Value Add

Non-Value Add PCT = 151.5 mins

VAT = 1.5 mins

Process Step #1 Process Step #2 Process Step #4

I50 units

Distributors

SalesData

Market Intelligence

MarketChanges

WeeklyMaterial

Shipment

Weekly Schedule

300 units

I50 units

Process Step #3

I150 units

I

Supplier

PRODUCTIONCONTROL

MRP

C/T = 30 secC/O = 1 hrUptime = 75%Yield = 60%



Example Value Stream Map



Opportunity Identification


Lean Six Sigma




6 Kaizen Lean





Value Stream Map: Three Primary Purposes

Value Stream 1

Value Stream 2

Value Stream 3

1. To engage the

organization in process thinking and continuous

improvement 2. To identify

improvement opportunities through process understanding

3. To manage all improvement efforts

toward meeting all key metric targets


Value Stream 1

Quick Hit

Opportunity Identification, Prioritization and Project Selection

0-6 months future state

12 months future state

24 months future state

36 months

ideal state

ProjectKaizen

6-Sigma

Project

Project6-Sigma

6-Sigma

Quick Hit

6-SigmaKaizen

Kaizen

6-Sigma

ProjectKaizen

Project

Measure Improvements Against Key Metrics and Strategic

Objective



Lean Six Sigma




6s Kaizen Lean




Mechanism to drive improvement. Standardized

methodology and language:

Define, Measure, Analyze, Improve,

Control.Lean Six Sigma

Toolkit.



Value Analysis Value Added Activities

Activities essential to deliver product or service according to customer requirements. Three criteria:

Transforms the item or service toward completion

Customer cares (would be willing to pay for it)

Done right the first time

Non-Value Added Activities

All other activities. These activities are considered waste.


• Overproduction • Waiting• Transportation• Excess Motion• Injuries• Inadequate procedures/methods (processing waste)• Unplanned Activities (processing waste)• Inventory• Poor Communication• Defects (not meeting customer requirements)• Variation

Baxter’s 11 WastesDefinition of Waste

Waste is anything other than the minimum amount of equipment, materials, parts, space, and worker’s time which are absolutely essential to add value to the product.

Shoichiro Toyoda - President, Toyota


Lean Six Sigma


Lean Six Sigma




6 Kaizen Lean





ToolsTools


What is Lean Six Sigma (LSS)?

Lean

A focus on waste elimination, standardization, cycle time reduction, smooth process flow etc.

Six Sigma

A focus on variation reduction that impedes optimized performance.

Lean Six Sigma is a robust, data-driven approach to Lean Six Sigma is a robust, data-driven approach to improve and manage key business processes.improve and manage key business processes.


The Methodology: DMAIC

...measure what you care about; know your measure is good...

… look for root causes; generate a prioritized list

... determine and confirm the optimal solution ...

…be sure the problem doesn’t come back...

... define the problem, clearly and related to customer...

IMPR

OV

EM

EN

TC

YC

LE

MANAGE

DEFINE

CONTROL

IMPROVE

ANALYZE

MEASURE


The Tools: LSS Toolkit

Is/Is Not Diagram

SIPOC

Process Flow Chart

Value Stream Map

Kaizen

6S

NPV Surveys

VOC/CTQ

Kano Model

Boxplot

Dotplot

Charts

Pareto Chart

CTQ

Project Y

MSA

Gage R&R

Drilldown

Process Capability Study

Brainstorm

Fishbone

FMEA

Affinity

Multi-Voting

Scatter

Pareto Chart

Fault Tree

5 Whys

6-Sigma Tests

Takt Time

DOE

Mistake-Proofing

Standard Work

Flexible Workforce

Visual Mgt.

TPM

Level Loading

Pull/Kanban

Control Plan

Operating Procedures

Revised Process F low

Project Decom-missioning

DEFINE MEASURE ANALYZE IMPROVE CONTROL



Lean Six Sigma




6 Kaizen Lean




Allocation of the appropriate resources

and engagement of the entire

organization.


Achievement of results directly supporting the organization’s

strategic objectives.


Business Excellence ModelBusiness Excellence ModelAlign - Integrate - AssessAlign - Integrate - Assess


Lean Six Sigma


Opportunity Identification, Prioritization, and Project Selection


6 Kaizen Lean



ASSESS

ALIGN

INTEGRATE


Assess progress toward goals.

Refine based upon results and changes

to strategic challenges and

strategic objectives.


MODEL - DEPLOYMENTMODEL - DEPLOYMENT

Baxter EffortsBaxter Efforts25+ Years25+ Years


Questions

How many have tried to implement a business model in your company and were successful right out of the gate?

How many have tried to implement a business model and slammed full on into cultural issues: We’re different Tried it before and failed That stuff won’t work here

How many have actually made some inroads with employees, only to see stubborn leaders kill the motivation?


Deployment Resources & Brief History

Initiated QLP in mid-80’s – World-wide Deployment QLP Sr. VP reporting to CEO – Millions in Funding 64 Full time Director/Coaches to deploy program All Leaders sent to Crosby School in Florida

Issues Deployment to manufacturing world-wide. Division Leaders

made an effort. Merger of Baxter and American Hospital Did not include Technical Areas (i.e. R&D, IT, Finance, etc.)


Model History

Initiated QLP (Total Quality) in mid-80’s – World-wide Deployment QLP Sr. VP reporting to CEO – Millions in Funding 64 Full time Director/Coaches to deploy program All Leaders sent to Crosby School in Florida

Initiated Baldrige Approach (1989) – Global intent Deployment to manufacturing world-wide. Some Division

Leaders were successful. Four Full-time VP’s, an award office of staff & 200+ Examiners Leaders asked “QLP or Baldrige, which one?


Model History

Some Key Plants Initiated Shingo (2000) Success - Manufacturing Plant Level Not much interest elsewhere

Merged Shingo with Baldrige Approach (2005 – Present) Builds on everything we learned thus far Leaders at Many Levels of the Organization Interested Lost enough, we are starting over in many areas Manufacturing Plants – still generally the best examples Great efforts being made in Quality Organizations


Model History

Lean (2002) Success in Some Manufacturing Plants One Key Leader

Business Excellence (2002) One Sr. VP reporting to Corp. Quality VP Eleven Person Corporate Group – Five Guru’s with five

coaches in training. Strongest Support in Manufacturing & Quality IT, Finance, Supply Chain, & a Division are Developing


Pitfalls We Experienced

QLP - Not Training Everyone at Once Baldrige Model – Placing it in competition with QLP Seeing LEAN, Six Sigma, Kaizen, etc. as Models Succession Planning – Failure to consider culture/style Reduction in Organizational Resources Decentralization Program not reporting to the top


What We Did Right

Stuck With IT – Saved Millions, Developed & Maintained a Core Competence in Manufacturing

Merged it all Together QLP – Culture Baldrige/Shingo Model – Fits Partial & Complete Organizations 6-Sigma/Lean/Kaizen/Etc. as Tools

Implementation Anywhere There is Interest Using Examples of Success to Tempt Leaders Practicing What We Preach Baxter is Charging for Success

baxter business excellence model

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