Breakthrough Performance - a Transformation Model

8/12/2019 Breakthrough Performance - a Transformation Model

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DLE Technical Services, LLC2

DLE Technical Services guides executive teams

through the challenging process of achieving

The results include significant, dynamic, beneficial

changes and sustainable improvements in culture

and performance.


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MissionWhy we Exist

Core ValuesOur Guiding Principles

VisionWhat We Want to Achieve

Strategy MapDescribes the Strategy

Balanced Score CardMeasures Progress to Reaching Goals

Strategic Initiatives & TargetsCreates a Strategy-Focused Organization

OrganizationalAlignment

Satisfied ShareholdersSatisfied CustomersEffective Processes

Motivated Workforce

StrategicOutcomes

What We Are Expecting toAchieve

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LeadershipCustomer Focus

Strategic PlanningOrganizational Structure

Process Management and ControlWorkforce and Leadership DevelopmentPerformance ManagementContinuous Improvement

DLE High Performing Organization (HPO) Standards

DLE helps clients close gaps to excellent QualityManagement Systems

by comparing performance against these 8 HPOstandards & criteria.

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Vision, Values & MissionCommunicationOrganizational PerformanceEffective & Efficient Governance

Leadership

Customer Centered CultureVoice of the CustomerDetermining Customer

Satisfaction

Analysis of Customer DataProduct OfferingsCustomer Support

Customer Focus

Strategy Development & GoalsStrategy Maps and Balanced

Scorecard (Financial, Customer,Internal & Growth Perspectives)

Deployment of Strategic PlanPerformance Projections

Strategic Planning

Core CompetenciesRelationships & AlignmentCross Cutting Areas

Organizational Structure

The HPO Standards are used as a guide in evaluating acompanys Quality Management System, to identify gaps in

programs and performance.

StrategyMap

example onslide #8

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Integrated Management ControlSystems Requirements

Management Control SystemsDesign

Effectiveness of Critical WorkProcesses

Process Management & Control

Workforce CapabilityWorkforce EngagementSystematic Approach to TrainingKnowledge and Resource

Management

Feedback

Workforce/Leader Development

Results Quality of Products &Services

Results Customer FeedbackResults Financial & Market

Outcomes

Results WorkforcePerformance

Results Process Effectiveness

Performance Management

Specific MethodologyImprovement ProjectsResource Management

Integration & Prioritization

ContinuousImprovement

The HPO Standards are used as a guide in evaluating acompanys Quality Management System, to identify gaps in

programs and performance.

(Contd)

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FinancialPerspective

CustomerPerspective

Internal

Perspective

Learning &Growth

Perspective

Long Term

ShareholderValue

Product/Service Attributes Relationships Company Image

Operations

Management

Supply Production Distribution Risk Management

Customer Management

Processes

Customer Selection Customer Acquisition Customer Retention Customer Growth

Innovation

Processes

Opportunity ID R&D Portfolio Design/Develop Launch

Regulatory & Social

Processes

Environment Safety & Health Employment Community

Human Capital

Multi-disciplinarySkills

Core Competencies Attract/Retain

Information Capital

IT Life CycleManagement

Infrastructure Applications

Organizational Capital

Culture Leadership Alignment Teamwork

Customer Value Proposition

Productivity Strategy Growth Strategy

DLE canalso help

clientsthroughthestrategicplanningprocess

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Define the Principles for astrong Quality Culture

Define why Quality should bevalued as part of core business

Commitmentto Quality

Line personnelSupervisors & ManagersIndependent Oversight

Roles &Responsibilities

Define the four lines of defensethat work together to identifyand address conditionsadverse to quality

Defense inDepth

DLE providesguidance on

Principles for aStrong QualityCulture to be used

in policies andprocedures, andindoctrinates theclientsmanagement and

staff on thoseprinciples.

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PROTECTED - SENSITIVE10

Monitor Performance & IdentifyDefects and Gaps

Regulatory orExternal Oversight

InternalIndependent

Oversight

ManagementOversight

ManagementOversight

Front LinePersonnel

Front LinePersonnel

Front LinePersonnel

Front LinePersonnel

4thline of

defense

3rdline of

defense

2ndline of

defense

1stline of

defense

Documentation & Reporting of Defects & Gaps

Independentoversightsrole should

not beadversarial

Our mosteffective

defense is a

lineorganization

that valuesquality

Understandingdefense-in-depthhelps define the

accountability forline ownership of

Quality

CorrectiveActions

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COST OF POOR QUALITY

The Cost of Poor Quality (CPQ) is a term used to explain the costs thatwould disappear if all failures were removed from a companys

products, services and processes inefficiencies.CPQ is often listed as a percent of sales or total costs.

However, the CPQ that can be readily identified is usually the tip of aniceberg that includes additional tangible and intangible losses.

Hidden osts

Visible osts Rework Reprocessing ScrapWarranties Inspections RestockingInefficient

processes

Intellect management Risks

Expediting costs Increased risk

Schedule slippage Inventory Set-up costs

P&L variation Administrative costs Lost sales

Loss of morale Loss of customer

trust & loyalty

Loss of regulatory

confidence


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CPQ Robs Companies of Profit

CPQ can vary from as little as 2% to as much as 35% ofrevenues, robbing a company of its profit, often without

being monitored or detected.

CPQ is not Often Measured

Estimates of CPQ vary greatly from industry toindustry and depends greatly on many variables,

such as the complexity of the business, regulatoryrequirements and market constraints.

The problem is that organizations are not activelylooking for the sources of CPQ.like vampireloads in your house, raising your electric bill.


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Select Clarify Organize Run Evaluate

LEAN SIX SIGMA

Define MeasureAnalyze Improve Control

TQM

Reason ForImprovement

Current Situation Analysis Countermeasures Results Standardization

Breakthroughs are achieved through focused improvement projects:

DLE helps clients establish and manage improvementefforts to eliminate the Cost of Poor Quality and attain

performance excellence using formal or informalmethodologies (depending on the clients comfort level

and experience with using such methods):

CausalAnalysis

Data Analysis Apparent

CauseAnalysis

Root CauseAnalysis

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Assuming that Profit Margin is 10%

A typical company that loses $1 to CPQ has to bring inapproximately $10 in additional revenues to make up for it.

Highly inefficient!!

Turning Losses into Gains

DLE offers management consulting engagements that helporganizations look for and address CPQ, reversing the

equation!

Addressing CPQ is Like Finding Lost Revenue

If a companys profit is 10% of revenue, for each 10% of CPQ

that is recovered, its like doubling the companys revenuewithout having invested in the infrastructure and costs typically

needed to double revenue.

For example: a company with annual revenues of $10M logs$1M in profits. A DLE engagement identifies and recovers $1Min wasted costs due to poor quality; the companys net for the

year is now $2M (doubling its profit without having to doublerevenue)


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Sustained ExcellenceThrough Continuous

Improvement

MonitorPerformance

Identify Gaps

Analyze &Identify Causes

Develop &Prioritize Solutions

Close Gaps

Standardize &Replicate

DLE helps clientsevaluate and strengthenthe programs and

processes that support a

continuous improvementmethodology, such as: Corrective Action Human Performance Self-assessment Causal Analysis Performance Indicators OversightContinuous improvementactivities must betargeted such that theyhave an appreciable

impact on thecompanys bottom line.

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PerformanceMonitoring

KPIs

ProblemReporting

Trending

PerformanceAssmt.

Benchmkg.

Self-Assessmt

Eff. Reviews

OperatingExperience

Oversight

AnalyzeProblems &

IdentifyUnderlying

Causes

ApparentCause

Evaluations

Root CauseEvaluations

Use EffectiveProblem Solving

Tools

EliminateDeadlyWastes

EliminateSources ofVariation

PrioritizedCountermeasures

ImplementSolutions &Lock in the

Gains

ActionTracking

ResourceManagement

ManagementOversight

Task

AssignmentAccountability

Standardization

Replication

LOCK IN THE GAINS

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The results include significant, dynamic, beneficial

changes and sustainable improvements in culture

and performance.


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Applicable sectionsof the DLETransformationModel have been

successfully used bycompanies in theUS and Canada tostrengthen theirManagementSystems, problem

solving skills,continuousimprovementmethodologies andQuality Cultures.

Kewaunee Nuclear Power Station, Green Bay, WI

8 week engagement on strengthening their ContinuousImprovement Methodology and problem solving skills

DOE Quality Assurance at the Yucca Mountain Project

24 month engagement using the full transformation model to achieve a turn-around of the Quality organization and their Nuclear and Safety Cultures

Entergy Nuclear Division3 month engagement to replace their existing Root Cause and ApparentCause training programs and develop training on the CAP for managersand supervisors

Paducah Remediation Services, Gaseous Diffusion Plant

10 month engagement on strengthening the QMS, coaching themanagement team and developing their Human Performance Program

Uranium Disposition Services at the Depleted UraniumHexafluoride Conversion Facility in Paducah, KY

12 month engagement on strengthening Conduct of Operations and StartupTesting Program

Atomic Energy of Canada Limited, Ontario, CADeveloped & supported an 8 week evaluation of the IntegratedManagement Control System, continuous improvement methodology,problem solving skills and Quality Culture, in response to $1.5 B in losses


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Documents

Breakthrough Performance - a Transformation Model