mike orzen, cma, cfpim, pmp may 16, 2012 · § business reengineering (lean, six sigma, toc) §...

© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved.

Mike Orzen, CMA, CFPIM, PMP www.maorzen.com

May 16, 2012


Purpose

�  Introduce you to the ideas Lean thinking and strategic alignment

�  Explore the role of HR

�  Provide an example

�  Share some ideas and insights

2


Mike Orzen, CMA, CFPIM, PMP

§  Accountant/Financial Analyst/MIS (PriceWaterhouse)

§  IT project manager, systems analyst, QA, developer

§  Business Reengineering (Lean, Six Sigma, TOC)

§  Production Panning, Supply Chain & Plant Manager

§  Lean Coach & Consultant - Lean Enterprise Institute, The Shingo Prize

§  IT, HR, Finance, Production Planning, Supply Chain, Admin, Mfg.

§  Strategic Planning and Deployment

3

Shingo Prize 2011


What Challenges Are You Facing? �  Keeping up with complexity and growth

�  Coordination and communication

�  Addressing constraints – time, $, people, regulations

�  Sustaining improvements

�  Moving away from reactive firefighting to proactive

value creation

5


What It Feels Like

�  Endless “firefighting” (unplanned work)

�  Conflicting priorities and requirements

�  Doing more and more with what seems

like less & less!

6


The #1 Question I Get Asked:

�  235,532 (Culture)

�  21,102 (Changing Culture)

�  23,580 (Changing Behavior)

7


Thinking Thinking

Acting

Culture:

“the customs, arts, social institutions, and

achievements of a particular nation, people,

or other social group.”


Defining Lean �  Lean is a way of thinking for creating a highly effective

organization

�  Essential components of Lean ü Applying methodical problem solving to

eliminate waste & variation to drive quality ü Value Stream focus to flow value to the Customer ü Learning through seeing, doing, seeing, asking &

presence

9


History of Process Improvement

10

1900 2000

Henry FordConveyor Line/Process Flow

Taylor, GilbrethScientific Management

DemingVisits Japan

Taiichi Ohno -‐ Birth of Toyota Production System

Shewart atBell LabsStatistical Analysis/Process Control

TotalQualityManagement

Six SigmaMotorola, Allied Signal, GE

“The Machine ThatChanged the World”published

“Lean Thinking”published

Lean Six Sigma

Theory of Constraints

TrainingWithin Industry

JuranVisits Japan

Feigenbaum publishes “Quality Control Principles” Shingo Prize

created

Age of Scientific Management Age of Engagement Age of Integration

Lean Office, Supply Chain, Health Care, Service

Industries and beyond

“Reengineering the Corporation” published

1950Agile Manifesto

mid-‐1500s , continuous flow production

of warships – Venice1793, interchangeable parts to

cotton gin -‐ Eli Whitney


Lean Principles

Source: Lean IT: Enabling and Sustaining Your Lean Enterprise, Bell/Orzen © 2010

Constancy of Purpose

Respectfor People

Pursuitof Perfection

Proactive Behavior

Voice ofthe Customer

Quality atthe Source

SystemsThinking

Flow / Pull / JIT

Culture

TIME

QUALITY

COST

MO

RA

LE

11


The PDCA Cycle

The scientific method is at the heart of Continuous Improvement

Go & See

Plan Plan

Do

Check

Act/ Adj

12


The Great Divide

Within most organizations there are many….

�  Silos �  Sub-cultures � Areas of expertise, execution and focus

13


Barriers of Communication & Coordination

� Words � Measures, Reward & Recognition � Values � Paradigms (Attitudes, Behavior, Culture) � Multitasking & Information Overload � Conflicting Priorities

14


Many Silos and Many Islands

15

Management

CustomerRelationsSupply

OperationsProduct &

ServiceDevelopment

Information &Information

Systems

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EEnntteerrpprriissee AArrcchhiitteeccttuurree

DDaattaabbaassee AAddmmiinniissttrraattiioonn

PPMMOO

AApppplliiccaattiioonn SSuuppppoorrtt

BBuussiinneessss IInntteelllliiggeennccee

IInnffrraassttrruuccttuurree

GGoovveerrnnaannccee

PPoorrttffoolliioo MMggtt..

WWeebb SSeerrvviicceess

TTeelleeccoomm

VVeennddoorr MMggtt.. SSeerrvviiccee MMggtt..

MMiiddddlleewwaarree

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SSeeccuurriittyy

RReegguullaattoorryy

CCoonnssuullttiinngg

SSeerrvviiccee DDeesskk

MMaaiinntteennaannccee

NNeettwwoorrkk

QQAA

UUAATT


Hum

an Resources

Patient Visit Value Stream

Lab Value Stream

Healthcare Enterprise Value Streams

Patient Lifecycle Value Stream

Inbound Calls Value Stream

Accounting

Information &

Technology

Quality

Regulatory

Procurem

ent

Clinical O

perations

Pharm

acy

Dental O

perations

16


Planning, E

nt. Architecture

Application Delivery Value Stream

Service Desk Value Stream

IT Services Value Streams

Telecom Value Stream

Knowledge Management Value Stream

Operations

Help

Desk &

Sup

port

Governance, B

udget

Infrastructure Engineering

Portfolio M

gt.

App D

ev/Maintenance

PM

O and

Resource M

gt.

Prioritization, D

elivery

17


What is Operational Excellence? �  Better, faster, cheaper

�  Dual focus leadership

� Moving away from siloes to an end-to-end approach that

links business processes (value streams)

�  A learning organization

18


4 19


GUIDING PRINCIPLES SUPPORTING PRINCIPLES

One Model of

Operational Excellence

20


“Empowerment without alignment is chaos” Peter Senge, Fifth Discipline


Alignment

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ü Clarify Objectives

ü  Identify Interdependencies

ü  Two-way communication

ü  Agreement of what is important


Engage & Align: Top Enabled/Bottom Up

Executives

PDCA

Managers

Associates

Individuals

Strategic Goals and

Objectives Continuous Improvement

Initiatives

Strategy Deployment

23


The Role of HR �  Change Management

�  Communications

�  Engagement

�  Shifting culture

�  Job Descriptions

�  Recognition & Reward Systems

24


The Current State = The Challenge

Most companies spend 60 - 80% of their

operating budget* just to keep systems

running, not investing in improvement or

innovation of the business.

25

Source: Pricewaterhouse Coopers Technology Forecast, Summer 2009

* Includes $, mindshare, focus, energy


HR…A Day in the Life

26

�Job Analysis and design �Regulatory compliance

�Recruitment and selection �Staffing

�Job evaluation/performance appraisal �Health and safety

�Orientation �Community relations

�Training and development �Industrial relations

�Diversity Issues �Ethics and Values

Case Study – Take I

Acquire a software application to address HR request management

28

Case Study – Take II

Develop a framework/structure for a scalable internal-customer request process

29


Outcomes � HR led by example: � Cross functional team � Value stream focus � A3 � Process before technology

� Their work served as a prototype for the entire campus

� Saved ~$300,000 in avoided acquisition costs

30


Reflection - Hansei

�  Methodical problem solving is the only thing that works

�  To understand, decompose work into discrete steps

�  Address root causes

�  Assume you need additional effort to

sustain improvements

31


Respect & Humility

Learning by Trial & Discovery

Getting Comfortable with Uncertainty

32


Everyone has two jobs…

33


The Roadmap

StrategyEstablish

leadership visionand consensus

Articulate strategic intent and drivers

Define and communicate

the plan

Build a lean Leadership team

Create a basic toolkit

Assess key enterprise value streams

Launch pilot kaizen projects

Invest in enterprise-wide infrastructure

Consolidate gains & build momentum

Start here

Measure results, assess understanding

and buy-in

PlanningExecution

PlanDo, Check, Act35


Next Steps

� Acknowledge that the only lasting solutions are built on a fundamental shift in behavior and thinking

� The best time to begin in now!

36


[email protected] www.maorzen.com LinkedIn: mikeorzen Twitter: @MikeOrzenLeanIT 503.313.0023

Thank You!

mike orzen, cma, cfpim, pmp may 16, 2012 · § business reengineering (lean, six sigma, toc) §...

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