Welcome

1. Welcome Process Excellence and The Inspirational Leader: Enablers and Challenges Jay Watson Director, Process Excellence Development PortsAmerica, Chandler, AZ MA- Human Resources Development BS – Business Administration 35+ years experience: • Flowserve, Siemens, GTE, Orbital Sciences, Motorola, Honeywell, GE …

2. Elevator Speech • Process Excellence (P.E.) is a journey that will create a sustainable platform for • managing our current Business • preparing us for profitable growth • By better understanding our processes, we can • implement changes that meet our Customers’ needs • improve them to create greater value • Offering greater Value is a Competitive Advantage • P.E. directly benefits our Customers and Colleagues, making it easier for our Customers and efficient for us

3. Issues of Change Management

4. Elements of Change Management

5. KPI Revenue Profits Growth Morale Turnover Costs

6. Start Here: Instill a C.I. Mentality Continuous Improvement

7. Instill a C.I. Mentality Ideal for Champions and Sponsors! Check Out: “What is Lean Six Sigma?” Mike George $ 15.00 $ 4.00 used Continuous Improvement

8. Evolution from Reactive to Preventive • What are the indicators of a good day at work versus a bad day at work? Where are you in the spectrum of process management? Fire-fighting Problem Based Project Based Process Based • What is the immediate priority? • What changes have occurred? • What can we improve upon? • What additional resources / synergies are available?

9. Among Other Things ‘Continuous Improvement’ is all about: Safety, Quality, Speed of Execution • Respect for People (SHE) • Improving performance by flawless execution (6S) • Removal of waste to reduce time (Lean) Problem Solving • Achieving rapid breakthrough improvement • Applying advanced tools that work • Making a positive and deep cultural change • Getting Real Financial Results

10. Increase Value Add • How can we, as LEADERS … • Increase “Value-Add” • Reduce Waste and Variation • Inculcate Effective Problem Solving

11. Increase Value Add • Won 2012 AMA Silver “Effie” Marketing Award

12. Increase Value Add • What is ‘Value Added’ Work Content? • Must be performed to meet Customer needs • Customer recognizes the value (willing to pay for it) • Changes feature /product / data in a desired manner • (Enhances form, fit, or function to the product / service) • Processes that are done right the first time. (Enables service Quality, enables on-time or more competitive delivery, or has a positive impact on price competition)

13. Increase Value Add • Definition of ‘Value Added’ Work Content • Customer recognizes the value (willing to pay for it) • Changes the product in a desired manner • Processes that are done right the first time Do You or Your Team Think and Act this Way?? Ideally, running operations “Without the Cost of Waste …”

14. Increase Value Add • What is ‘Non-Value Added’? • Non-Value Added Work Content • Anything other than the minimum number of people; the minimum amount of effort, material, information, and equipment necessary to add value.

15. Increase Value Add INSPIRE!Instilling a ‘Can Do’ Attitude Ideal for Champions and Sponsors! Check Out: “Lean Thinking” Womack and Jones $ 15.00 $ 6.00 used Check Out: “The Process Manager” www.pmi.co.uk $ 30.00

16. Increase Value Add • Enabler 1 • Cross Functional Teams • Why? • One closest to the job, knows best how to improve it • Two Heads are Better then One • Adopt new ideas faster

17. Increase Value Add • Challenge 1 • Cross Functional Teams • Why? • Team members are scarce resources • Time constraints • Overcoming WIIFM

18. Increase Value Add • Resource 1 • Cross Functional Teams Check Out: “The Team Handbook” Joiner $ 35.00 $ 25.00 used

19. Increase Value Add • Enabler 2 • Value Stream Mapping • Why? • Identify Key Process Activities and focus on high value impact • Understand Business outputs and value to Customer • Improve end-to-end processes and standardize when possible • Understand Inventories / Waste • Simplify processes

20. Increase Value Add • Challenge 2 • Value Stream Mapping • Why? • Requires indoctrination • Takes too long • Looks and Feels ‘Foreign’

21. Increase Value Add • Resource 2 • Value Stream Mapping Lean Enterprise Institute www.lean.com Check Out: “Learning To See” Rother and Shook $ 50.00 $ 45.00 used

22. Increase Value Add Enabler 3 Value Analysis of Process Steps / Process Map Why? “Process Analysis is the foundation toward achieving Process Excellence.” - Jay Watson Checkout http://www.youtube.com/watch?v=1rlyHYDCtr8

23. Increase Value Add • Challenge 3 • Value Analysis • Why? • Value Analysis (VA) investigative techniques (analytical questioning) a “Lesser Known” skill set • DEFINITION: • “It improves the effectiveness of work that has been conventionally performed as it questions and probes into the very purpose, design, method of manufacture, etc., of the product / (service) with a view to pinpointing unnecessary costs (waste), obvious and hidden which can be eliminated without adversely affecting quality, efficiency, safety, and other customer features.”

24. Increase Value Add • Resource 3 • Value Analysis • Simple critical thought and questioning techniques, applicable to any process needing improvement, are provided. • http://www.freeleansite.com/training.html • Refer to ‘Value Analysis / Flow Analysis’ power-point module Check Out: http://www.freeleansite.com/ Jay Watson $ 0.00

25. 3 take aways • How can we, as LEADERS … • Increase “Value-Add” • Reduce Waste and Variation • Inculcate Effective Problem Solving

26. Reduce Waste and Variation Learn more about combining Lean, Six Sigma, and the Theory of Constraints (TOC): Check Out: “Velocity” Jacob, Bergland, and Cox $ 20.00 $ 4.00 used INSPIRE! Instilling a ‘Can Do’ Attitude

27. Reduce Waste and Variation • Enabler 1 • 5S • Why? • 5S is a visually-oriented system of cleanliness, organization, and arrangement designed to facilitate greater productivity, safety, and quality. • Standardize workplace organizations: • Have needed material, tools, • supplies, and documentation at • hand, organized, and identified • Maintain a clean work area with • tools and equipment in top condition • Maintain a occupationally-safe, • ESD-safe, FOD-free workplace www.5ssupply.com

28. Reduce Waste and Variation • Challenge 1 • 5S • Why? • Mistaken as Housekeeping • Goes against culture (borrowing tools, looking for tools, et al) • 5S tools no longer ‘personal’ • People tend to slip back into their own habits We’re overly accepting of Little’s Law: # of things-in-process Avg. Lead Time (any process) = Avg. Completion Rate

29. Reduce Waste and Variation Resource 1 5S Complimentary Material http://www.freeleansite.com/ $ 0.00

30. Reduce Waste and Variation • Enabler 2 • Lean, Green and Black Belt Development • Why? • Identify Key Process Activities and focus on high value impact • Understand Business outputs and value to Customer • Improve end-to-end processes and standardize when possible • Understand Inventories / Waste • Simplify processes

31. Reduce Waste and Variation • Challenge 2 • Lean, Green and Black Belt Development • Why? • Costly and Time consuming • Don’t see Benefit • Not sexy • NIH

32. Reduce Waste and Variation Resource 2 Six Sigma Consulting Service http://www.firefly-consulting.com/ $ 80,000.00

33. Reduce Waste and Variation Resource 2a Lean Consulting Service www.velaction.com $ 250.00

34. Reduce Waste and Variation Resource 2b Complimentary Lean Enterprise Material http://www.freeleansite.com/ $ 0.00 Jay Arthur $ 9.95 http://www.qimacros.com/store/proddetail.php?prod=206

35. Reduce Waste and Variation • Enabler 3 • Specialized Skills Development • Why? • Different Process Paths / Types Identified • Process Flow / Bottlenecks (Theory of Constraints) • Process Optimization (Six Sigma)

36. Reduce Waste and Variation • Challenge 3 • Specialized Skills Development Why? • Change resistance http://www-935.ibm.com/services/us/ceo/leansixsigma/pdf/CLB_Topic_1_IBM_Smarter_Leadership_in_the_New_Economic_Environment.pdf

37. Reduce Waste and Variation Tough Questions to Consider (from IBM prezo) • How will you develop the critical capabilities to enhance creativity among your leadership? • In what ways can you explore, reward and integrate diverse and unconventional points of view? • What is your approach to evaluate every element of your business model to get the most from currently untapped opportunities? • How will you leverage new communication styles, technologies and tools, both to lead a new generation of talent and encourage breakthrough thinking?

38. Reduce Waste and Variation Resource 3 TOC Consulting Service http://www.goldratt.com/ • AGI Goldratt Institute: • “What To Change?” • • “What To Change To?” • • “How To Cause The Change?”

39. Reduce Waste and Variation Resource 3a Six Sigma Six Sigma Breakthrough Technologies, Inc. http://sbtionline.com/ Breakthrough Management Group, Inc. http://www.bmgi.com/ Smarter Solutions, Inc. https://www.smartersolutions.com/index.php Six Sigma Qualtec http://www.ssqi.com/ Pyzdek Institute http://www.sixsigmatraining.org/ “Will six sigma companies get more valuation in the marketplace? Not unless they produce results. You can’t put up a slogan that says we are a six sigma company and think the pe is going to move.” - Jack Welch

40. Reduce Waste and Variation Resource 3a continued ... Six Sigma Rath and Strong Management Consultants http://www.rathstrong.com/ Oriel Stat A Matrix http://www.orielstat.com/lean-six-sigma Bain and Co. http://www.bain.com/index.aspx TBM Consulting Group http://www.tbmcg.com/ Novaces http://www.novaces.com/lean-six-sigma-implementation.php

41. Reduce Waste and Variation Resource 3a continued ... Six Sigma SSA and Co. (formerly Six Sigma Academy) http://www.ssaandco.com/ Accenture http://www.accenture.com/us-en/Pages/service-process-innovation-lean-six-sigma.aspx Booze Allen Hamilton http://www.boozallen.com/ Pivotal Resources http://www.pivotalresources.com/ Air Academy Associates (Knowledge Based Management) http://www.airacad.com/Home.aspx

42. Different Way of Thinking (Stevedore example) Vessel Start times are slower than expected Practical Problem Reduce vessel start times from 24 minutes to 15 minutes Statistical Problem The assignment of the first move is statistically significant to vessel start times Statistical Solution First move for UTRs given at gate entrance, instead of at vessel Practical Solution

43. 3 take aways • How can we, as LEADERS … • Increase “Value-Add” • Reduce Waste and Variation • Inculcate Effective Problem Solving

44. Inculcate Effective Problem Solving Learn and utilize 7 Greatest ‘Ideation’ techniques: 1) Questioning Assumptions 2) Opportunity Redefinition 3) Wishing 4) Triggered Brainwalking 5) Semantic Intuition 6) Picture Prompts 7) Worst Idea INSPIRE! Instilling a ‘Can Do’ Attitude

45. Inculcate Effective Problem Solving Think Again … 1) Questioning Assumptions 2) Opportunity Redefinition 3) Wishing 4) Triggered Brainwalking 5) Semantic Intuition 6) Picture Prompts 7) Worst Idea Check Out: “Idea Stormers” Bryan W. Mattimore $ 30.00 $ 13.50 used “Thinkertoys” Michael Michalko $ 20.00 $ 6.66 used

46. Inculcate Effective Problem Solving • Enabler 1 • Capture Problems (A3) • Why? • Only Thinking Drives Sustainable Change • A3 formats are a waste-free way for report writing and communication • “By standardizing and making visible the process of identifying problems and formulating solutions, individuals and companies can execute to their ideal state.” • - Jamie Flinchbaugh • Author, “A3 Problem Solving” Applying Lean Thinking

47. Inculcate Effective Problem Solving • Challenge 1 • Capture Problems (A3) • Why? • Confusing (Definition and Use) • A3s evolved from the Toyota Production System in the early 1960s as a simple, concise method for process improvement. • The designation “A3” stands for the international size of the paper (11” x 17”) used to capture all the important information for easy understanding and decision making. • The key element is not the form itself but the thinking that goes into the problem analysis and resolution practice. • Common uses for A3s include: problem solving, proposals, project status and even value stream maps or hoshin planning.

48. Inculcate Effective Problem Solving Resource 1 Capture Problems (A3) For today's challenging business cycle, the A3 approach can offer faster, less bureaucratic results, building on more frequent cycles of learning through revision than DMAIC. “Understanding A3 Thinking” Sobek and Smalley “Managing to Learn” John Shook $ 38.00 $ 29.00 used $ 50.00 $ 40.00 used

49. Inculcate Effective Problem Solving • Enabler 2 • Ideation Workout • Why? • Identify Key Process Activities and focus on high value impact • Understand Business outputs and value to Customer • Improve end-to-end processes and standardize when possible • Understand Inventories / Waste • Simplify processes

50. Inculcate Effective Problem Solving • Challenge 2 • Ideation Workout • Why? • People are comfortable • Never asked to think • No Follow-through