Mazda Initiatives Mod4

Planning for SuccessModule 4

Hawaii Employers Council

&

Marsh and Barnes, Inc

Outcome

• Each organization attending develops or refines its own strategic plan which can be implemented successfully achieving real and lasting benefits.

Previous Module: 3

• How to develop a ‘dashboard’ of measures to monitor your strategy– Measurement explosion– The critical few– Understand variation– Collecting and defining data– Presenting data

Review Module 3 Homework

• What were the key learning points?

• At least two examples for discussion by the whole group.

– One Dashboard– One Control Chart

Planning for Success: Module 4

• How to identify and implement key initiatives– Linking initiatives to Strategic Objectives – Overcoming restrainers to change– Initiatives of interest

• Customer Satisfaction Measurement & Improvement

• Project Management

• Process Management– Focus PDSA

– Lean

– Activity-based Costing &Economic Value Added

Strategic Projects

Strategic Objectives

Financial Perspective

PR

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Customer PerspectiveInternal Business Process

PerspectiveLearning & Growth

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Project One

Project Two

Project Three

Project Four

Project Five

Project Six

Project Seven

Project Eight

Restrainers to Change

Force Field Analysis

Customer Satisfaction

Measurement & Improvement

ServQual

• Tangibles– Appearance, functionality, etc.

• Reliability– To meet or exceed expectations dependably

• Responsiveness– Speed of response to customers’ needs

• Assurance– Knowledge and competence of staff

• Empathy– Caring, considerate, friendly, etc.

CS Measurement Methods

• Quantitative– Telephone surveys– Mail surveys– Personal interviews

Confidence levels and sample sizes?

Randomness?

• Qualitative– Focus groups– Improvement teams– Complaints, comments and

compliments– Informal interviews– Mystery shoppers– Being the customer– MBWA

Anecdotal?Special Causes?

Project Management

The Return!

Project Failure - IT

• Cancelled – 31%

• Troubled – 53%

• Successful – 16%

Source: The Standish Group ‘Chaos Report 1995’ and Systems Excellence LLC

Common Causes

Why Projects Fail or

Under Deliver

Continual ChangeOf Scope

Lack ofDiscipline

Ineffective orChanging Teams

No StrategicAlignment

Token InvolvementOf Stakeholders

VagueOutcomes

Lack of Authority or Accountability

No Formal‘Sign Offs’

PMI Method

Closing the Project

Project InitiationProject

PlanningExecuting the

Project

Controlling the Project

Planning Tools & Techniques

• Outcome Statements• Critical Success Factors• Lists • Templates/Checklists• Timelines• Planning Grid

• Failure Mode Effect Analysis

• Gantt Charts• Critical Path Analysis• Resource Smoothing• Plus, plus

Templates

• Product Description• Project Charter & Scope• Project Plan

– Task & Sequence– Resources– Budget– Risk Assessment

• Change Management• Close Out

Process Management

Focus PDSA

Lean

ABC/EVA

Process Improvement

Focus PDSA

Focus PDSA

Find a Process

Organize a Team

Clarify What is Known

Understand Sources of Variation

Select Improvements

Plan

Do

Study

Act

PlanA

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Study

Do

Lean

Toyota - Fifties

Lean

Eliminate Waste

Reduce Lead Time Reduce Total Costs

Improve Quality

$

Background

• Toyota Production System – 1970’s

• Less of everything– Human effort– Capital investment– Facilities– Inventories– Time

Consumer Reports – Good Bets

• Acura IntegraAcura RLAcura TLFord EscortGeo/Chevrolet PrizmHonda AccordHonda CivicHonda CR-VHonda OdysseyInfiniti G20Infiniti I30Isuzu OasisLexus ES300Lexus GS300/GS400, GS430Lexus LS400, LS430Lexus RX300Mazda MilleniaMazda MX-5 MiataMazda Protegé

• Mercury TracerNissan AltimaNissan MaximaNissan PathfinderSaab 9-5Subaru ForesterSubaru ImprezaSubaru Legacy/OutbackToyota 4RunnerToyota AvalonToyota CamryToyota Camry SolaraToyota CelicaToyota CorollaToyota EchoToyota RAV4Toyota SiennaToyota TacomaToyota Tundra

Value in Production Operations

• 5% of all activities add value

• 35% are necessary non-value adding activities

• 60% of activities add no value at all

Note: Value added is defined as adding value for the end customers

Muda

• Through the identification of seven types of waste, Muda makes people aware of the amount of waste in a typical organization and helps them target this waste for reduction or elimination.

– Overproduction– Waiting– Transport– Extra Processing– Inventory– Motion– Defects

Value Stream Mapping

• Value stream mapping is a more advanced form of flowcharting that identifies non-value adding activities as well as value adding ones.

• The map is usually done at the start of a Lean program to identify Muda or waste.

New Accounting Tools

Activity Based Costing (ABC)

Economic Value Added (EVA)

Activity Based Costing

• Costs assigned to product/service processes

• Overheads become ‘direct’ expenses

• Process needs to be understood

• More accurate than traditional accounting

• Much more complex

• Example ICL – Cost of loss of graduate

Activity 1$

Activity 2$

Activity 3$

Activity 4$

Economic Value Added

• Registered Trademark Stern, Stewart & Co

• Maximizes shareholder value

• Calculates true economic profit

• Too complicated for small businesses and questionable strategy (Pittsburgh University)

• Acknowledgement Narcyz Roztocki

EVA Calculation

• OPBT: Operating Profit Before Tax

• TAX: Federal, State & County Tax

• TCE: Total Capital Employed

• COC: Cost of Capital

• EVA=OPBT – TAX – (TCE x COC)

• Acknowledgement Narcyz Roztocki

Planning for Success: Module 5

• How to handle rapid growth, investment in people and succession planning– Phases of growth and the risks of transition– How to invest in people– General and specific succession planning– Core competencies of leaders– Understanding the system

Brainstorm – Module 5

Homework

• Identify initiatives which will have the biggest impact on your Strategic Objectives