Systems for Managing Business Opportunities

Session Overview

• What is a System?

• Continuous Improvement Core Concepts

• System Improvement Tools

• Developing an Improvement Proposal

• Written set of rules (a “Standard”).

• The rules define practices that are universally recognised and accepted for assuring that the organisation consistently meets the needs of its customers.

What is a System?

• Customer focused organisation

• Leadership

• Involvement of people

• Process approach

• Systematic approach to management

• Continual improvement

• Factual approach to decision-making

• Mutually beneficial supplier relationship

Introduction to ISO9000ISO9000 has 8 key principles:

• The RoadTek Management System “HIGHWAY21” has been developed to document its Design, Development, Production, Installation and Servicing processes.

Systems in Main Roads

Highway 21

MR Junction

• Corporate Main Roads also has documented policies, practices and processes in Junction.

Induction, Training,

Recruitment Customer Management,

Marketing, CommunicationsBudgets,

AccountingSystems, Safety,

Environment, ICT, RS&E

Supporting Processes

Business Management

Project Management

Delivery Processes

Construction, Maintenance, Linemarking, Bitumen, Plant Hire, Pavements

Planning, Design, Survey, Infrastructure Delivery, Structures

Capability Business Development Finance Technical Support

RoadTek Main Roads

Customers

Systems Framework

Continuous Improvement Core Concepts

• Universal Responsibility

• Customer Focus

• Defect Prevention

• Process Improvement

Continuous Improvement

The core concepts are:

Universal Responsibility

• This concept deals with the fact that Systems are not only the responsibility of Management but is everyone's responsibility.

• Every individual in the business should be concerned with seeking ways to improve the delivery of products and services.

Customer Focus

• Customers are increasingly becoming quality-conscious shoppers. They want to know up front that our business will meet their needs.

• Systems help achieve consistency and enhances customer satisfaction.

• It can minimise the risk that customer expectations are not met.

• Defect prevention aims at minimising waste and saves money.

• Defect prevention is concerned with catching and eliminating errors in product delivery.

Defect Prevention

Process Improvement

• “Continuous process improvement” aims at ensuring that business activities and outcomes are measured, analysed and continually improved.

Customers

Inspections & Audits Improvement Process Customer feedback

Improvement Processes

Business Improvement Program

Learning'sC

ontinuous Im

provement

Res

ults

Ena

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s

Induction, Training Marketing, Communications Budgets, AccountingSystems, Safety,

Environment, ICT, RS&E

Supporting Processes

Business Management

Project Management

Delivery Processes

Construction, Maintenance, Linemarking, Bitumen, Plant Hire

Planning, Design, Survey, Infrastructure Delivery

Capability Business Development Finance Technical Support

RoadTek Main Roads

Making Toast

Business Improvement Tools

Business Improvement Tools

• Brainstorming

• The Five Why’s

• Cause and Effect or (Fishbone Diagrams)

There are a variety of tools that are useful in improving processes and minimising wasted effort, for example,

Brainstorming

• Encourages open thinking when a team is stuck in “same old way” thinking

• Gets all the team involved so that a few people don’t dominate the group

• Allows team members to build on each others creativity while staying focused on their joint mission

What does it do ?

• The 5 Why’s is a simple improvement tool used to identify the root cause's of problems. Its purpose is to ensure focus is given to the cause of the problem and not just the symptoms.

• While often used separately, it can be used in conjunction with other improvement tools such as Cause and Effect diagrams.

The Five Why’s

What does it do ?

1. Identify the problem

2. Ask “Why” the outcome has happened

3. Answer the question

4. Ask “Why” another 4 times or until there is no point going on further

5. Verify your answer by gathering further data if required

The Five Why’s (cont)

How do I do it ?

• Enables a team to focus on the content of the problem, not the history of the problem or differing personal interests of team members.

• Creates a snapshot of the collective knowledge and consensus of a team around a problem

• Focuses the team on the cause of the problem, not the symptoms

What does it do ?

Fishbone Diagrams

• The Diagram resembles a fishbone in its construction - it has a box (the 'fish head') that contains the statement of the problem at one end. From this box originates the 'fish spine' or the main branch of the diagram. Sticking out of the spine are the bones where major causes are organized. Minor causes are placed along these bones. Experienced users of the diagram often add more branches..

Fishbone Diagrams (cont)

How do I do it ?

1.  Prepare the basic framework of the Fishbone Diagram on a a whiteboard or a flipchart

Fishbone Diagrams (cont)

How do I do it ?

2. Define the problem that needs to be addressed and write it in clear and simple terms in the fish head of the diagram

Fishbone Diagrams (cont)

Late Pizza delivery on Fridays

3. Define the causes and write these at the tips of the major bones.

Fishbone Diagrams (cont)

Late Pizza delivery on Fridays

Machinery / Equipment People

MaterialsMethods

4. Tease out the Major Causes adding these ideas and suggestions to the smaller bones on the diagram.

Fishbone Diagrams (cont)

Late Pizza delivery on Fridays

Machinery / Equipment People

MaterialsMethods

Unreliable cars

Small Ovens

Drivers get lost

Staff don’t turn up

Poor DispatchingRunning out of ingredients

Cars are junks

No money for repairs

Many new streetsHigh turnover

Inaccurate stock take

Not trained

Group Exercise

• The following issue has been raised from the business

• Break into groups

• Using a problem solving tool, determine the root causes of the issue and;

• Determine the actions necessary to prevent reoccurrence of the issue

• Present your Actions back to the group

Business Improvement Program

• Capturing ideas

• Define underlying problem

• Situation Analysis

• “To Be” state

• AMMS/BIS initiative

Evolution of ideas

Opportunity Brief

• What do you need to know?

• Scope of works

• Stakeholders

• Time

• Budget

• Benefits

• Improvement Opportunity Brief Microsoft Word

Document

Session Summary

• Fundamental Elements of a Business System

• Effective solutions require full understanding of underlying problem

• How to Develop a Business Improvement Opportunity and Proposal

Questions?