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Leading in a Competitive Environment: Integrating Statistical Engineering, Lean, and Quality Bill Rodebaugh Honeywell, Inc. Discussion Points. Need for Leadership Multiple and Maximized Objectives Management Systems and Continuous Improvement Activities Tools to Lead to the Goal. - PowerPoint PPT Presentation
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1 12-Oct-2012Penn State Quality Symposium
Leading in a Competitive Environment: Integrating Statistical
Engineering, Lean, and Quality
Bill RodebaughHoneywell, Inc.
2 12-Oct-2012Penn State Quality Symposium
Discussion Points
• Need for Leadership• Multiple and Maximized Objectives• Management Systems and Continuous Improvement Activities• Tools to Lead to the Goal
3 12-Oct-2012Penn State Quality Symposium
The Big Issue
• Excellent Summary from Suárez-Barraza, Bou, and Cataldo. 2007• Organizations need to cope with strong competition and a dynamic
market environment with demanding customers• Organizations are required to be innovative…to capitalize on the
knowledge and skills of employees• Work processes need to be managed efficiently and strictly• Three questions assist in understanding the challenges
• How do organizations achieve competitive advantage?• Why do some organizations respond better to environmental
change?• How can organizations be flexible, predictable, innovative, and
efficient?
4 12-Oct-2012Penn State Quality Symposium
Competing Priorities
• Corporate Level – Organizations need to cope with strong competition and a dynamic market environment with demanding customers
• Factory Level – Requirement to make the right product at the right time with good cost structure and in keeping with all Environmental and Safety considerations while having an engaged workforce
• Project Level – Complete each project in the required timeframe using the preferred processes…assuming that optimizing the variable of choice will make the overall process better
5 12-Oct-2012Penn State Quality Symposium
Competing Priorities
Health, Safety, And Environmental Production Rates
Product Quality &Customer Satisfaction
At Rate, High CpK,
No Incidents
6 12-Oct-2012Penn State Quality Symposium
Defining the Journey
• Understanding organizational routines, standards, and non-routines• Organizational routines can be defined as “a repetitive, recognizable
pattern of interdependent action, involving multiple actors” (Feldman, 2003). There is a sense of stability here.
• “Standards are applied to activities that are repetitive in an identical fashion” (Takeyuki, 1995). The business process is where these standards exist….SOP. Follow the SOP meticulously yields results.
• If the business process is variable, then the process difference must be viewed and understood, and specific procedures are activated.
• Non-routine processes has vague input and are difficult to classify, so this is where non-predictable, surprising, and unfamiliar events exist.
7 12-Oct-2012Penn State Quality Symposium
Defining the Journey
STANDARDSSOP ROUTINES
5S, ISO,Six Sigma
NON-ROUTINESExperimentationObservation
8 12-Oct-2012Penn State Quality Symposium
The Tools – the Standard
• Our Standards• Name our repetitive processes• Understand the way these processes should be done• Develop the standard• Train the standard• Chronicle the standard (SOP)
• We can develop standard plans as well• Business Continuity• Disaster Recovery• Emergency Responses• Any return to standard
9 12-Oct-2012Penn State Quality Symposium
The Tools – the Routines
• Our Routines – Systems that Guide Us• Toyota Production System, TPS, for Honeywell, HOS• 5S• Lean / Six Sigma (CI)• Statistical Engineering• ISO• RCA (Back to Standard)• Horizon Planning• Strategy Deployment (X-Matrix)• SWOT
10 12-Oct-2012Penn State Quality Symposium
The Tools – the Routines – Where I Am
• Need to do three things• Bring back to Standard – TER / UOR
• Total Event Report / Unusual Occurrence Report, RCA)• Improve from Standard (Short Term) – Statistical Engineering• Improve from Standard (Long Term) – Horizon / X-Matrix / SWOT
11 12-Oct-2012Penn State Quality Symposium
TER / UOR
ProcessIssue or Upset
TERWritten
(by multiple peoplemostly supervisors)
0930TER
MeetingReview
Meeting Attendees
Super Gatekeepers
PSM / HES
TOPS Investigation
Actions to the TER board
ResolvedAt
Mtng?
UOR
CompletedReport
UOR / TOPS Review
ActionMgmt
HESSteering
Closeout /Audit
COMMS
12 12-Oct-2012Penn State Quality Symposium
Statistical Engineering
• Continuous Improvement systems• Think about variation broadly• Engulfs our Lean & Six Sigma tools
• Still battles with the methods• Key is to improve the problem• Favorite Tools?• More you use a hammer, the
more everything looks like a nail
13 12-Oct-2012Penn State Quality Symposium
Horizon Assessments
• Forces improvement• Horizon 1 is doing what
you do well now (SOP)• Horizon 2 is building on
Horizon 1 in the next few months (opportunity for DFSS)
• Horizon 3 is years ahead, but you need to prepare now…big time strategy thinking
14 12-Oct-2012Penn State Quality Symposium
Strategy Deployment – X-Matrix
• More Detail than the Horizon planning
• Adds metrics and people• Able to do year over year
analysis• Not easily presented…
super complex
15 12-Oct-2012Penn State Quality Symposium
• Easy to understand evaluation tool• Definitions vary by output question• Definitions (Internal/External Focus)
– S trengths -- What are the good things about the program?
– W eaknesses -- What are the possible issues with the program?
– O pportunities -- What benefits result from the application of the program?
– T hreats -- What issues arise from the application of this program?
Inte
rnal
Inte
rnal
& E
xter
nal
SWOT Analysis
16 12-Oct-2012Penn State Quality Symposium
Strengths:•Data Availability•Upper mgmt support•3PL relationships•Customer reviews
Weaknesses:•Data Validity•Dealing with Federal Transportation Guidelines•Understanding customer needs•Supply chain complexity
Opportunities:•Customer Loyalty•Lower Supply Chain costs
Threats:•Sustainability•Increased Customer Expectations•Elevated Costs
Strengths & Weaknesses Refer to Process Input FactorsOpportunities & Threats Refer to Additional Metrics or Customer Voices
SWOT Analysis
17 12-Oct-2012Penn State Quality Symposium
The Non-Routines
• CI Culture• Everyone observes how things could be better• Need to drive people to want to do it• Need to make it in their DNA
• Safety Culture• Observing behaviors• Observing risks
• Escalation• When is bad, really bad?
18 12-Oct-2012Penn State Quality Symposium
Conclusion
• Need to balance• Standards, Routines, and Non-routines
• Need to understand • Events that just happened, Improvements for tomorrow,
Improvements for next year, and New Processes for 5 years• Need to be able to
• Bring back to standard, Bring away from standard• Need to understand the behaviors that go with this