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INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 1
PiT-Stop®
Problem-Finding and Problem-Solving
in Teams
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 2
The Importance of Employee Engagement
From the Best Employers in Canada study: • employee engagement is a measure of
how positively employees feel and speak about their employer, how likely they are to stay, achieve high morale, provide excellent customer service and how committed they are to go "above and beyond" to help achieve business objectives
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 3
high
nonelow
Emotional Engagement
Workers as of 18 Years Source: Gallup
later
“Even if a Type C employee were to work for nothing, it would be too expensive.” Jack Welch, long-time CEO General Electric
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 4
Employee Engagement• the activity to harness this discretionary
effort is particularly important• Pit-Stop .... our idea generation
methodology ... demonstrates the proven ability to harness this descretionary effort
• the organization wins corporate health (productivity, cost savings, hard ROI)
• the employee wins personal health, recognition, being engaged
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 5
An idea is a fragile thing. Turning
it off is much easier than keeping
it lit. Ideas shine because
somebody had them, somebody
helped them and nobody turned
them off.excerpt from TRW Advertisement, TRW Inc. 1984-Tom Peters ‘A Passion for Excellence’
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 6
Every day, in which you do not
actively occupy yourself with the ideas and suggestions
of your employees,is a day of wastefulness
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 7
Idea Management closes the gap
between the planned improvements
and the non-utilized performance
reserves within an organization
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 8
Idea Management unlocksthe potential in our heads!
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 9
Creativity = having ideas
Innovation = implementing ideas
" to add value "
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 10
The ‘Value-Add’ Question
? Avoidable waste ?
“Everything which is unnecessary for the actual work process”
“Everything which the customer won’t pay for”
“Everything which doesn’t add value”
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 11
1. Excess Production Beyond a customer‘s needs (“hoarding”)
2. Waiting Time Slow workflow/processes (“time robber”), high periods of loss, no loyalty to deadlines
3. Transport Interim stock, slow shipping process
4. Unnecessary Processes Complicated flow, bad use of facilities, minor utilization
5. Inventory Outdated material, emergency stock
6. Unnecessary Movement Search for material and procedures, wrong documentation, many steps
7. Work Error Drawnout processes, production of faulty parts, rework, scrap
The 7 Forms of Waste
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 12
Examples of Waste in Production Areas
• Moving of Material
• Lengthy Throughput Times
• Waiting Times
• Transport
• Inventory
• Too Much Material Choice
• Searching for ...
• Long Distances for Employees
• Over Production
• Production of Faulty Parts
• Inspection and Control Req‘mts
• Inefficent Usage of Materials
• Bad Information Flow
• Energy Wastage
• Lack of Cost Consciousness
• Tooling Changes/Set-up Times
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 13
Examples of Waste in Administrative Areas
• Sign Off Procedures
• Lack of Competence
• Inefficient Processes
• Paper Requirements
• Waiting Times
• Mail Delivery
• Bottlenecks
• Procedural Delays
• Unnecessary Storage / Copies
• Checks and Controls
• Long Distances for Employees
• Inaccurate Distr’n Information
• Errorprone Documentation
• Lack of Cost Consciousness
• Bad Information Flow
• Lengthy Decision-Making Times
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 14
Productivity Innovation
We are asking for employee ideas across the Innovation Hierarchy
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 15
Innovation Hierarchy
Business Model Innovation
(Pricing, Channels)
Product Innovation
(Features, Functions)
Process Innovation
(Efficiency and Effectiveness)
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 16
Efficiency = doing things right
Effectiveness = doing the right things
or
Efficiency is completing a task successfully
and without wasting time
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 17
Costs Past: Nowadays:
The “old” equation:
The producer fixes the purchase price based on
his profit expectation.
Price = Costs + ProfitPrice = Costs + Profit
Costs
Profit
Selling Price
The “new” equation:
Profit
The price is fixed by the customer. In the future the
profit results from thereduction of costs.
Profit = Price - CostsProfit = Price - Costs
Costs
ProfitSellingPrice
STOP
Focus on Costs
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 18
Savings Potential• The greatest savings potential resides
in the mind of the employee
• This can only be fully derived through and by management
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 19
Top Down and Bottom Up
Improvement is a guided process !
Bottom Up:
Ideas, Suggestions
Top Down:
Demands, Stimulation, Coaching
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 20
PiT-Stop – Problem Finding and Solving in Teams
PiT-Stop – Problem Finding and Solving in Teams
Pre-paration
ProblemFinding
ProblemStructuring
Problem Solving
Con-clusion
Follow-up
The PiT-Stop ProcessThe PiT-Stop Process
Idea = Problem with SolutionIdea = Problem with Solution
? = Problem without Solution? = Problem without SolutionImprovementImprovement
Problem Solving
Realization
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 21
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 22
PiT-Stop®Problem Finding and Problem Solving in Teams
Start
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 23
PiT-Stop Days
3 Mottos:
Go to GEMBA (seek and find rather than wait and hope)
Find MUDA (Problems are free consultations)
Make KAIZEN (Improvements through Teamwork)
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 24
Training
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 25
Interviews
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 26
A problem is half solved when it is clearly defined.
John DeweyAmerican Philosopher and TeacherPresident of the American Psychological AssociationKnown through his “Learning by Deweying”
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 27
Why " on-site " ?
• the 70% Theory
• have never submitted a suggestion • do not speak the company language as their
mother tongue • work according to their job description • can define a problem but not a solution • have never been asked at their workplace
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 28
Name of Employee interviewed:
Problem Description:( Why does this happen? Name of part, process? Where does it happen?)
Problem Detail:( Where? How often? Frequency? Costs? Important to determine the worth in time and money )
Possible Solution: (If the employee offers a solution: How to eliminate the problem? What measure are necessary?)
Date: …………… Name of Interviewer
Hours per Week
Problem Card Text: Number:
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 29
The 3 Kinds of Questions
- Entry-level Questions
- Probing Questions
- In-depth Questions
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 30
Sample Entry Level Questions
• Is anything a hazard?• Do you get complaints from
customers?• Do you run out of supplies?• Is the product inconsistent?• Is time lost waiting?• Is there waste?• Does a rule seem stupid?
• Is energy wasted?• Could cheaper material be
used?• Do jobs have to be
repeated?• Is anything too small?• Is anything too big?• Is something you do
unsafe?• Does something annoy
you?
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 31
Active Probing "Problems are free Consultations"
Two sides of the same coin: Front: Problem Back: Improvement Suggestion
What if an employee says “yes” ? Our answer (active questioning) : you don‘t say?
In short form write the interviewee‘s answers:- can the problem be effectively described? - how often does the problem occur … once or often?- why is that so?- where does it happen? - what is the process called? - what is the part called … number, series ? - can the employee tell me what it costs, guestimate? - what does this type of wastage cost? - how can it be imporoved?- what would be the savings if we did it differently? - if the employee can also provide a suggestion, then it will be credited to him . No ideas will be stolen ... We are looking for problems!
- 5W 2H ( The Toyota Method ) - What - Why- Where- When - Who - How much - How many
- 5 W - Ask why 5 times
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 32
Common Issues that can be dealt with in the Team Framework
How can one, for example...
- avoid unnecessary transport or employee loss of time ?- reduce inventory, ie. residual stock ?- avoid duplication of tasks ?- better utilize machinery, labour, maintenance, and work areas ?- reduce the error frequency in products and tasks ?- reduce the error frequency of machinery ?- reduce errors in forms and documents ?- reduce rework and quality checks ?- improve the quality of information ?- improve customer relations ?- reduce the production time of particular products ?- speed up a specific work process ?- decrease holding and preparation times, work stoppages ?- accelerate the throughput and output of workteams ?- optimize personnel ?- organize better group cohesiveness between departments ?
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 33
Writing Problem Cards
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 34
Every problem card should representa need for action:
“starting with negatively-loaded words”
incompletelackingrepeatedduplicatedincorrectdefectivewrong, faultyexpensiveinappropriatemissing
the ‘un’ words: unnecessary unsafe unclean unorganized unlabelled unwieldy unsatisfactory unrecognizable underutilized
in need of:recyclingscrappingidentificationupdatingadaptationchangerestructurereplacement
e.g.
… non value-adding
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 35
Problem Structuring
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 36
Cluster Nomenclature
Personnel- Training- QualificationHealth & Safety-Work Clothes- LightingCleanliness - HygieneLeadershipErgonomics
Work Material- Tools, ProgramsMachinesCommunication- Dept. A-B, …Information IT-Hard/SoftwareLogisticConstructionPlanning
Footprint Reduction- Recycling- Water UsageEnergy- Gas, Electric, OilFacility Management- Noise, Climate Control- Repair & MaintenanceCustomers- Complaints, Loyalty
HR Themes Process Themes Environment Themes
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 37
Electronic Database
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 38
Development of Spreadsheet forManagement with following Content:
• Problem Card Number• Cluster Name• Problem Description• Problem Details• Suggester Name• Estimated Benefits • Solution Keywords• Measures / Next Steps• Cluster Responsibility• Implementation Responsibility• Implementation Date• Status
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 39
Open House
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 40
Decision Making
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 41
Problem/Ideas: Target Allocation by %
10% Just-Do-It’s10% Short-term (Quick Wins - Fast Money)20% Suited for 1-hour Problem Solving Methodology10% Repair & Maintenance / Facility Management10% Candidates for other Techniques ie Six Sigma, VSM 10% Existing Projects 20% Middle and Long Term Success10% Don’t-Do-It’s
100% Sum of all Problems/Ideas through Employee Interviews
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 42
Complexity Time
Complexityof
Problem/Idea
Time (Hours)
Expert Methods 10%
ShopfloorMethods30-50%
minimal
minimal
maximal
maximal
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 43
Problem Solving Teams
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 44
2. Step:2. Step:
Describe and SortProblem Causes
Describe and SortProblem Causes
1. Step:Define the Problem
1. Step:Define the Problem
4. Step: Establish and ImplementSolutions
4. Step: Establish and ImplementSolutions
Team Meeting
Date
Participants
Problem
Manpower MaterialOtherCauses
Machine Method
123
Who
When
Solutions
3. Step:3. Step:
Rate the CausesRate the Causes
The Meeting
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 45
The Clock
Step 2b:Discuss and group cause / effect
cards
Step 2a:Write cause / effect
cards
Step 1: Define and frame the problem
Step 3:Assign points to keyc cause and effect
cards
Step 4:Find solutions for cards with most points
Buffer5Min
5Min
5Min
15Min
20Min
5
10
15
20
3035
40
45
50
25
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 46
Problem Solving Worksheet
Examples
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 47
Management Presentations
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 48
Under “Status” in the Spreadsheet the following are determined:
1 = problem is identified2 = measures, responsibility, date are established3 = in progress4 = implemented5 = no implementation 6 = later implementation ( with evidence )
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 49
Example: City Works Düsseldorf 58 employees interviewed, 156 Problems identified
54 = problem identified59 = measure, responsibility, due date defined41 = in progress 0 = Implemented12 = no implementation 0 = later Impelementatiop ( with evidence)156
Status 9.11.2007 at end of PiT-Stop week Status 27.12.2007 … one month later
Status 28.2.2008… two months later
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 50
Closing Presentation - Results - Certification - Recognition
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 51
These action days should not be viewed as a theoreticalworkshop but rather as a practical assistance, a visual display and development of a database.
We help management to visualize their problems from the employee’s perspective and to structurethe idea potential. They are in a position to act as thefirst filter.
LIVE Action Days with the Pit-Stop® Method
Contents and Work Flow
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 52
The evaluation of the potential savings is undertaken together with management. Per Interview Day between 100.000 and 200.000 Euro/$/Pd of Savings Potential is identifed.
Through the demonstration and active use of the “Problem Solving in Teams” methodolgy results are immediately demonstrated and it is shown that the method can be trained and is results sure.
LIVE Action Days with the Pit-Stop® Method
Contents and Work Flow
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 53
Proven PiT-Stop® Results
3 Problems/Ideas per 20 Minute Interview
50% of Ideas with Monetary Benefits
100.000 - 200.000 Monetary Savings Potential Per Interview Day
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 54
• 80% of Innovations come from employees at least 3 levels below top management
• grey is all theory, proof lies on-site
• we gather the idea potential quicker and more deliberately as before
• "Seek and Find" rather than "Wait and Hope"
Why PiT-Stop® ?
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 55
Requirements for the effective use of “PiT-Stop® LIVE”:
1. CIP Work Group “CIP Work Group” is defined as a homogenous process/work flow and an employee total between 30 und 50
2. Interview Teams - how large? between 10 (min.) and 20 (max.) employees are actively involved (size is dependent on the work group size)
they can be employees from the work group itself or from outside - who? motivated employees who through “learning-by-doing” want to enhance their qualification, already trained facilitators or ‘hi-potentials’ can be selected - the multiplier-effect is caused by the sum total of the involved
Interview Teams
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 56
3. Work Location Training room, preferably at the interview site, fitted with
work islands, boardcharts, flipchart and projector, facilitator’s kit and interview equpiment (clipboard, writing material).
4. Back Office Support For the excel database spreadsheet. The results of the day and the measures to be undertaken are immediately recorded (laptop, coded worksheets)
5. Verification of Benefits Company comptroller validates formulas and metrics used. Designated employees, immediately after the data collection, use the problem solving techniques to generate solutions. It is important that implementable solutions are generated quickly and put to proof.
Requirements for the effective use of “PiT-Stop® LIVE”:
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 57
Organizations (Customers) who use these Techniques
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 58
“If the right person at the right time passes by, I will not have the problem anymore”
INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 59