Join the Crusade…. NEXUS - Nigel Southway · Morton Metal-craft, Inter-City Products, ... •Automotive parts supplier ... Pyramid/Balanced Scorecard 1970 1980 1985 1990 1995

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CONSULTING SERVICE

NEX

US

“Helping Organizations Find that lever for change and improvement”

Join the Crusade….

Attack Waste

Capture Productivity

Gain Profit

Win back Jobs

www.nigelsouthway.com

NIGEL SOUTHWAY

(1992)

LEAN THINKING

www.nigelsouthway.com45 years Broad Business and Manufacturing Experience

British Engineering Student Apprenticeship… ….Aerospace/Electronics (1966)

Manufacturing Engineer ….BSc EEE C-Eng (1972)

Aerospace Programs: Concorde and Communication Satellites and the Space Shuttle Arm

MOTOROLA …. Director Manufacturing Eng. / Lean and Six Sigma Implementation (1980, s)

Co-Founder of CTM Inc. and Founder of NEXUS Consulting Services (1990)

AUTHOR: CYCLE TIME MANAGEMENT… Fast Track to Productivity Improvement (1992)

Consult on LEAN thinking to many organizations in different industry sectors on a global basis.

Automotive, Aerospace, Avionics, High-tech and consumer Electronics, Pharmaceuticals, Food, Beverage. Consumer

Products and Appliances, Steel, Fabrication, Mining, Resource extraction equipment, Construction, Off-road equipment,

Service Distribution and retail and support to Financial Industries,

Assist many Global Sourcing programs and Joint Ventures (2004 onward)

Society Manufacturing Engineers … SME Chair 2012/13 Toronto

LEAN Certification advisor for SME/AME/ASQ

Lecturing at Sheridan on Quality Management/LEAN/Sustainable Supply Chain Management

Advocate for the Take Back Manufacturing Forum / Canadian Reshoring initiative. ….. www.sme-tbm.org

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INDUSTRY WEEK

Business Productivity Consulting Since 1989

Automotive, Aerospace, Avionics,

High-tech and consumer Electronics,

Pharmaceuticals, Food, Beverage.

Consumer Products and Appliances

Steel, Fabrication and Mining

Service and Financial Industries.

Ever-Ready Battery,

J.M. Schneider Inc,

Procter and Gamble,

Inland Steel,

Morton Metal-craft,

Inter-City Products,

FABCO,

Thompson Pipe & Steel.

ECCO,

A 0 Smith,

Grote Industries,

NBS,

Royal Canadian Mint,

• Business Excellence Visioning / Coaching.

• Business Productivity Improvement Programs.

• Changing the Operating Practices for Success.

• Global Sourcing and Joint Venturing.

• Project Management of New Products and Processes.

BFL,

British Airways,

BTR,

Tectrol,

Tiercon,

ACS,

Imperial Rubber,

GTD,

VERTIGO,

Canadian Pools,

Telephoto

SXA

Clients in Canada, USA, Mexico, Asia and Europe.

www.nigelsouthway NEXUS

GlaxoSmithKline.

Baxter,

Ciba Corning,

Citibank,

Royal Ford,

GE MARCONI,

Clubcar

Toro

John Deere

NOMA,

McCoy

Polaris

http://www.nigelsouthway/

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Supported Clients World Wide on LEAN THINKING & Productivity Improvement.

• Electronic assembly• Meat processing plant..• Metal fabrications• HVAC Manufacturing• Toothpaste manufacturing• Steel mill processes• Bank check clearing house• US army medical Corp• Whiskey distilling• Dry-cell battery production• Credit card emboss house• Electrical products• Custom Power-Supplies• Computer design/manufacture• Sheet-metal fabricators• Plastic injection molding• Truck Components supplier• Construction equipment• Oil industry equipment providers• Aerospace equipment providers• Soap factory

• Bubblegum and candy factory• Food additive producer• Data-com system provider• Computer software developer• Mint (Coins and Medals) • Security equipment• Off-road equipment• Water pipeline manufacturer• Exhaust System Manufacturing• Commercial swimming pool manufacturing• Auto dealerships and distributors• Medical equipment Design/Manufacturer• Oil extraction equipment manufactures• Nano-tech Battery Manufacturing• Automotive parts supplier• Generic drug manufacturer• Vaccine Development and Manufacturing• Robotic Medical surgical devices• Commercial Heating Equipment

NEXUS

Introductions/Expectations..

Any business ..the problems and opportunities ....and solution.

The Threat Pressure Curve and where are you on this curve

LEAN thinking and Continuous Improvement

The power of an Operational Excellence Vision… Benchmarking!

The Improvement journey and how to start and the tools and structure

The Improvement Implementation process... and how to sustain change

When do you know you are there!

Closing remarks from all.

Agenda ????

$$$$

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The Past and the Future …. Any Business

?NEXUS

The Challenge ???……………..

The Future …. Any Business

• Margin Pressure

• Shorter lead-times

• Need for agility

• More global competition

The Problem The Solution

A Magic Pill ?

NEXUS

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The Future …. Any Business

• Margin Pressure

• Shorter lead-times

• Need for agility

• More global competition

The Problem The Solution

Continuous Improvement




The leaders and survivors will have a strong integrated CI Culture

5S

One Evolution Plan

NEXUS

Continuous

Improvement

THE GOAL

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The Threat/Change Pressure Curve

Electronics, (Motorola/HP etc)

High-tech,

Automotive,

Consumer Products and Appliances, (GE)

Steel,

Aerospace, Avionics,

Service and Food,

Beverage.

Fabrication,

Pharmaceuticals,

Mining / Extraction / related providers,

Financial Industries.

1980 20201990 2000 2010

NEXUS

The Continuous Search for Profitability To remain highly competitive, companies must continuously identify

opportunities for key improvements, facilitating increased profitability and creating an environment of innovation and organic continuous improvement in…...

Processes Systems Organization

They must have an ongoing plan to:

Identify opportunities for key improvements Facilitate increased value and profitability Install a formal system for continuous improvement. Breed a culture of Continuous Evolution planning Create an environment of innovation

12 NEXUS

Joint AME/SME/ASQ Forum findings…

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13

The Key Client Questions…. The Journey Toward Operational Improvement

Are you satisfied with your profitability?

Do you have a detailed plan to increase your Operational profit margin?

Do you know (in detail) where the bottlenecks and waste factors are that effect productivity and profit?

Do you have a clear vision of what to do to get those improvements?

Do you have an Evolution plan and detailed project activities for all your business improvements?

Do you have a formal and well communicated system to measure the improvements?

Does a clear vision for improvement and toolkits to make them happen exist at all levels ?

Do you have a key person focused, dedicated and assigned to make such improvements happen?

Is your organization physically arranged and culturally positioned to eliminate waste?

Have you assessed the effectiveness of your operating practices to support/sustain changes needed?

Do you have a formal global sourcing strategy and plan?

Do you have effective project management processes for all new products and associated processes?

Most organizations score less than 30%

NEXUS

/12=

NEXUS

Need to improve ??? Which

Improvement

Technology ?

?Lets get

organized!!!!

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AME LEAN World Conference 2013 and Ontario Government Report

Our recent survey of business and organizational leaders found that 68%

said they needed to focus on Continuous improvement and

productivity and 60% were planning to pursue a LEAN implementation.!!!

NEXUS

Still the best choice

Implementation pitfalls One criticism of lean perennially heard among rank-and-file workers is that lean practitioners

may easily focus too much on the tools and methodologies of lean, and fail to focus on the

philosophy and culture of lean. The implication of this for lean implementers is that adequate

command of the subject is needed in order to avoid failed implementations.

Too much.. Fancy language, complex mathematical terms, and Japanese words

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The 1980s was a Renaissance period for Manufacturing and Engineering

Many believe this was created by the Space Race!!!

Others believe it was due to the next generation of younger management

NEXUS

The Birth Of LEAN

BUSINESS SYSTEMS

MRP (Materials Resource planning)

CIM

Pull systems

MRP 2 (Manufacturing Resource Planning)

ERP (Enterprise Requirements Planning

MANUFACTURING

JIT

QDC

SPC

Theory of constraints(The GOAL)

Cycle Time Management

Kaizan

TPM

Problem Solving/8D/5Y

DOE (Design Of Experiments)

LEAN THINKING

NEW PRODUCT INTRODUCTION

Product teams

Simultaneous engineering

Phase Review process

DFM

Six Sigma

(Motorola) QS9000/APQP

Problem solving 8D /5Y /4 phase etc

CULTURE CHANGE

TOYOTA PRODUCTION SYSTEM Visual factory /5S

Participative management style

Teamwork power

People Empowerment

Pay for skills/Gain sharing

SUPPLY

Supplier management/partnering

MEASUREMENTS

Value Engineering ABC

(Activity based Costing)

Pyramid/Balanced Scorecard

1970 19951980 1985 1990

W E Deming

NEXUS

The father of Quality Management

http://ca.search.yahoo.com/r/_ylt=A0geu8aVIpRPjGkAlsHrFAx.;_ylu=X3oDMTA0cWtjOThtBHNtAzE-/SIG=13882cak8/EXP=1335137045/**http:/www.amazon.com/Cycle-Time-Management-Productivity-Manufacturing/dp/1563270153

http://ca.search.yahoo.com/r/_ylt=A0geu8aVIpRPjGkAlsHrFAx.;_ylu=X3oDMTA0cWtjOThtBHNtAzE-/SIG=13882cak8/EXP=1335137045/**http:/www.amazon.com/Cycle-Time-Management-Productivity-Manufacturing/dp/1563270153

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• The JIT threat… “Made in Japan” Early 80s… TPS etc

• The GOAL… 1984 Goldratt

• TOTAL CYCLE TIME 1985 Phil Thomas

• World Class Manufacturing 1986 Schonberger

• Time.. A Competitive Advantage 1990 George Stalk BCG

• Measure-Up (Performance Measurement Score-carding) 1990 Lynch and Cross

• Cycle Time Management 1993 Northey/Southway

• Lean thinking 1996 Womak/Jones

• LEAN for Dummies Sayer/Williams

Now!!!Many LEAN Educational packages…….

SME LEAN/Six Sigma Certification programs…… www.sme.org/lean-certification.aspx

Reading list

NEXUS Information Package www.nigelsouthway.com/positional-papers

NEXUSNEXUS LEAN SELF ASSESSMENT TOOLKIT…. http://www.nigelsouthway.com/app/download/7118659904/Survey+SME+LEAN+scorecard+starter+rev2.xls

http://www.sme.org/lean-certification.aspx

http://www.nigelsouthway.com/positional-papers

http://www.nigelsouthway.com/app/download/7118659904/Survey+SME+LEAN+scorecard+starter+rev2.xls

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LEAN Certificationhttp://www.sme.org/leancert

“If it can be flow-charted ..it can be improved

Lean thinking applies to ALL business sectors

Every type of business or organization has “Operations”

From first customer contact to payment for the product or service

Manufacturing, distribution, service, finance, health care, insurance, government, public support, etc.

They all have processes, value streams and supply chains!

All can be performance reviewed!

All need to IMPROVE!

http://www.sme.org/leancert

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NEXUS

Clear visioning and self awareness at all times!!

Make improvements happen from within the organization!

Measurable Results Increased customer satisfaction and delivery model responsiveness

Best practices to innovate new products/markets

Effective New Product Introduction procedures and systems

Optimized supply chain activities

Improved effectiveness of the Enterprise Resource Planning (ERP) systems

Consolidation and elimination of wasted operational capacity

Improved operational productivity and capital planning

Efficient utilization of working capital

Practical systems and tools for continuous improvement

Ongoing Evolution planning process……………..

NEXUS

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Question For You (Every-one)?

• Are you ready?

• Do you have enough knowledge of concepts?

• Do you understand the process/tools being used?

• Do you have enough Vision?

• Does your team understand the role?

?

NEXUS

NEXUS

Cycle-Time

Finding that lever for Continuous improvement!

A LEAN MEASUREMENT

Start thinking in the 4th Dimension!!

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What is Total Business

Cycle Time?

“Total Cycle Time” is the actual time elapsed from when a

customer expresses a need for that product or service until the

time the customer's need is satisfied and payment is received.

NEXUS

Cycle-Time

A CYCLE-TIME REDUCTION EXAMPLE!!!

• How long does it take you to change a wheel????

• Stop car…..loose nuts…raise car…..remove nuts….replace new wheel…Fit nuts.... lower car…tighten nuts…...Go…

• 15 minutes?? or even longer??..….

NEXUS

•AN INDY PIT CREW DOES THE SAME PROCESS IN …..…….LESS THAN 10 SECONDS!!!!!!

LEAN

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Cycle Time Is The Time It Takes To Get Something Done!!!

• Improve quality

• Deliver a service

• Develop a product

• Enter an order

• Design a product

• Manufacture a product

• Develop a financial plan

• Close the books

• Reduce inventory

• Procure materials

• Develop a spec

• Type a letter

• Develop a proposal

• Change culture ….

(i.e.. change the way to do business)

NEXUS

NEXUS

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NEXUS

WaitingInventoryExcess TransportationOver-productionDefectsOver-processingExcess MotionUnder-utilized Talent

8 Types of Waste

NEXUSWASTE!

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WaitingInventoryExcess TransportationOver-productionDefectsOver-processingExcess MotionUnder-utilized Talent

8 Types of Waste

NEXUS

“In any business big or small and whatever the type

of Products or Services as much as 90% waste or

non value adding cost can exist in some of the

activities within the business”

WASTE!

NEXUS

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Discovery

Invention

Research

Development

Launch

Commercialization

INNOVATION


$$$$

MarketersResearchers

Product TeamsProduction/Distribution

Happy

Customer

Academia

A Typical business process???

Inventors

White Spaces

The time delay between major functions,

where less than effective communication

linkage can occur, which affects the

interaction required between these functions

or departments to complete the essential tasks

of the business.

NEXUS

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The LEAN Version (Entitlement)

The LEAN Version (Benchmark)

Note:Baseline..Where you are now!

Entitlement… with Lean but low capitalBenchmark… Capital and Technology NEXUS

With LEAN but low capital

Add Capital and Technology

THEN….

Measurement of Performance

Entitlement

Baseline

Benchmark

Baseline: Current performance

Entitlement: Level of performance achieved with present resources & capital

Benchmark: Best competitive performance with added resources and technology

NEXUS

The hockey stick… Waste out first.. Then Capex in!

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Benchmarking

• Review with Measurements who is “best in class”

– In your industry

– In any industry with similar process or conditions.

• Study why they are better and try to apply to your own business.

NEXUS

Copy/Steal/Cheat/Beat the Competition!!

Continuous Improvement Environment

ENTITLEMENT BASELINE

Cycle Time

Improvement

Quality Improvement

Cost Reduction

NEXUS

Vision/Commitment

CTM

LEAN

Waste reduction

6 Sigma

TPM

Change-over

Reduction

5S

Point Meetings

COPQ

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Imagine the Vision• Cycle time inside customer expectations

• Faster time to market capability

• Minimal Inventory and carry costs and waste in all forms

• Perfect or Improved quality (Product /Process/Services)

• Total Cost performance excellence

• Greater productivity and increased gross margins

• Reduced working capital

• Increased cash-flow cycle & reduced need for credit

• Employee Participative and Empowerment culture

• A distinct competitive edge.

NEXUS

The Perfect LEAN Business Process

NEXUS

INSANITY

“Doing the same things…. and expecting better results!”

Definition:

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Comments that can make you go insane!!!!

60. We have always done it this way!NEXUS

Break your own paradigm's

60. We have always done it this way!

Get the LEAN Religion

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Staying ahead of the competition!

Continuous Improvement through…

Lean-thinking …….

1.Use Vision …

2.Remove/Reduce Waste…

3.Change Operating Practices…

LEAN THINKING IS A FORM OF INNOVATION

TO STAY AHEAD OF THE COMPETITION

WIN!!!

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NEXUS

“Total Cycle Time” …The actual time elapsed from when a customer

expresses a need for that product or service, until the time the

customer's need is satisfied, and payment is received.

Strategic Business Development Loop

New Product Introduction (NPI) Loop

Supply Management loop

Make/Ship Loop

Distribution Loop

The 5 Cycle Time Loops in any Business

Customer Expectation (Existing Products)

Customer Expectation (New Products)

NEXUS








Make/Ship Loop

Distribution Loop



• Who is the customer?

• Must think holistically !

• From Vertical to Horizontal thinking

• The 5 Loops in the business

• Use the 5 Loops to provide focus

5 Business Loops

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NEXUS








Make/Ship Loop

Distribution Loop



5 Business Loops

3TIERSSTRATEGY

IMPROVEMENT

PRACTICES

1

2

3

3 TIER APPROACH TO CHANGE

TIER 1 Strategic process change

TIER 2 Change/Improvements

TIER 3 Operating Practice Changes

NEXUSDetails of 3 TIERs at www.nigelsouthway.com/positional papers

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OPERATING PRACTICE CHANGESPoint Meetings/Communication Problem solve/project identification Cross-train/morale.

PROCESS IMPROVEMENTSReliability (TPM, SPC, etc,)Flexibility (Changeover, multi-skill, etc. Capability (waste reduction)

Strategic Process ChangesPull system design (LINEAR PROCESS)Capacity/Demand planning (DEMAND)Physical layout (ORGANIZATION)

TIER 1

TIER 3

TIER 2 STRATEGY

IMPROVEMENT

PRACTICES

1

2

3

LEAN BUSINESS ENVIRONMENT

NEXUSCAN BE APPLIED TO ANY DEPARTMENT OR PROCESS



Strategic Process ChangesPull system design (LINEAR PROCESS)Capacity/demand planning (DEMAND)Physical layout (ORGANIZATION)

TIER 1

TIER 3

TIER 2 STRATEGY

IMPROVEMENT

PRACTICES

1

2

3


NEXUS

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TIER 1 ……Thinking/Visioning

• DEMAND Planning/Forecasting Capacity– Effectiveness and functionality

• LINEAR Operational PROCESS– Process simplification and automation toward linear flow

– Business systems Integration and sustainability

• Physical layout / ORGANIZATION….. – Physical Layout and facility planning…..

– Ongoing restructuring/Resource and skill planning

Improvements in 3 connected areas ….

VISIONBaseline to Entitlement

The essential extra special skill set

Must Shift Paradigms

Create Emotional Tension

Benchmark and Measure!

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Linear Flow• Utilize a perfect business process (as much as possible)

• Adopt an appropriate business process strategy

• Linking all parts of the business process

• Reduce Business cycle-time FAR inside customer demand

• Only produce to “real” customer demand (sell true capacity)

NEXUS

VALUE ADDED

VALUE ADDED

VALUE ADDED

VALUE ADDED

Customer

Real Demand Lead time

Process Cycle time

Example

Inv InvInv Inv

No Agility!

Linearity below 1

Linear Flow• Utilize a perfect business process (as much as possible)

• Adopt an appropriate business process strategy

• Linking all parts of the business process

• Reduce Business cycle-time FAR inside customer demand

• Only produce to “real” customer demand (sell true capacity)

NEXUS

VALUE ADDED

VALUE ADDED

VALUE ADDED

VALUE ADDED

Customer

Real Demand Lead time

Process Cycle time

Example

Build to order

(Sell Capacity)

Total Agility!

Linearity 1 or better

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Linear flow ratio = Demand/Output per time bucket

1000 500 500400 1000 1000

1500 0 15001400 0 0

Customer

Demand

Operating

Plan

Linear Ratio 1000/1500= 0.66 400/1400= 0.28 500/1500= 0.33

Time Buckets

If Operating plan = customer demand ….then linear ratio is 1

Inventory/Risk 500 0 1000 0 1000 0

1000 500 400 1000 500 1000

Linear Ratio 1000/1000= 1.00 400/400= 1.00 500/500= 1.00

NEXUS

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NEXUS


EXAMPLES

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BUSINESS/FACILITY LAYOUT & ORGANIZATION

BEFORE

80 transactions…62 are Non Value adding

BUSINESS/FACILITY LAYOUT & ORGANIZATION

Product Travel Distance: 2500 feet to 1000 feet

# Transactions: 80 to 35

Total Process Steps: 60 to 30

BEFORE AFTER

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NEXUS

NEXUS

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NEXUS

NEXUS

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NEXUS

Baseline Business Process

Receive

stage

store

clean

Multi station batch Insp &reworkprocess

stage

Machine IH

store

Inspection Database

CommercialDatabase

Records

Customer

schedules

Work

Orders

Invoice/payments

ship

Machine OS

* 90 pipes/shift

*

1D

1D

1D

1D

3D?

1D

Reactive CT= 8D min

3D?

Oil Drill Pipe Inspection Facility

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Receive

stage

store

clean

Multi station batch Insp &reworkprocess

stage

Machine IH

store

Inspection Database

CommercialDatabase

Records

Customer

schedules

Work

Orders

Invoice/payments

ship

Machine OS

* 90 pipes/shift

*

Baseline Business Process

Stage

Auto pipe clean

Semi-Automated Physical inspectionCMM Laser probe

Re face stations

Vision (Entitlement)

Semi-Automated EMI/thickness test (station material

handling)

Machinestations

Moving

pipe

bed

Stage

1 piece flow/Same Day delivery

Semi automated processes

Improved material handling

Reduced manning needed

Controlled bottleneck

Output rate is about 3 min optimized.

With a 3 min BN O/P = 7.5*60/3=150 pipe/shift

With 5 man team std time =5*7.5*60/150=15min

Computer Data base

Side feeder

Conservative Improvement…

From 90pipe/shift to 150 pipe/shift 66%

increase in Output

From std 40 min/pipe to 15 min /pipe

2.66 times improvement

EBITDA improved by about 2.5 times

(Will need selective Capex and technology)

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May 2015MOBILE & DOWNHOLE COATINGS FACILITY PROPOSAL

OverviewPROPOSAL - FACILITY

Proposed – to be negotiated

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Job Travel ComparisonCURRENT STATE

Job Travel ComparisonFUTURE STATE

45-50% reduction in move distance and transactions

Improved receiving and shipping logistics

Improved technology and capacity flexibility

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RAPID Canada BASELINE

Distribution

CUSTOMERS

FGS

? ?

MRB

Mix Fill PackAssy ShipStkRIRec Stage

Defect rates?

RMSRMS?

WIP

RAPID China

Outer14D

Chip Box 21-28D

New Bag 35D

Suppliers

Suppliers

sources

Bags25DRMS?

Wraps30D

CAN1-2D

(30D

Transit)

(PL=16 weeks for labels)

(8-12 week forecast)

(12 week historical forecast)

Payment terms 52D

53D89D 2D

Mix Fill PackAssy

Value Adding Only

Cust

1 sq =50D

D

FGS

RMSSLT

WIP

Ship

?

SEA Ship

Ship

FGS

WIPRMS

Supply LT

Supply Source

?

PL Design LT

Intrinsic Business Cycle time chart (worst case)

Huge Inventory exposure

Supply Source

320D

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Cust

1 sq =50D

D

FGS

RMS

SLT

WIP

Ship

?

SEA Ship

Ship

FGS

WIP

RMS

Supply LT

Supply Source

PL Design LT

Intrinsic Business Cycle time chart (worst case)

Lead-time exposure

China

China

130D

Supply Source

50D

PL Design LT

150D230D

INVENTORY

PROCESS

VISIONStrategy…..

Re-organization of trade bloc Supply Chains

Inventory closer to point of use!

SAVINGS MODEL RESULTS… PRELIMINARY>>> CANADA ONLY

Assume a 2 year Strategic LEAN 5 Loop/3 Tier Continuous Improvement Journey…..

Improved…FlexibilityQualityLaunch/delivery ResponsivenessPL solutions… More Market opportunities

Less need for Working Capital (can redeploy to Capex)

Savings details…After full Implementation..

….Inventory WTW from 144 Days to 88 Days from (2.5 turns to 4 turns)

….First year savings about $1.7M (Both NR and R)….Recurring savings thereafter $0.54M pa (9% COGS)

(Savings model operates on Cycle-times/Inventories/Quality/Overhead/support costs)

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White

Spaces

80% Waste in this Process !!

Process to develop a semi-custom proposal to offer client services

30 page power-point Proposal

White

Spaces

Process to develop a semi-custom proposal to offer client services

ACTION

Started with mapping the process and defining

NVA and defined ways to eliminate or do

activities concurrently

Looked at better templates/new procedures

EntitlementNow takes 11 steps

and reduced to 2 working days

BaselineUsed to take 50 steps

and more than 2 weeks

Then asked computer guys to systematize

the steps that remained!... Now same day!!

Benchmark

30 page power-point Proposal

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TIER 1

TIER 3

TIER 2 STRATEGY

IMPROVEMENT

PRACTICES

1

2

3


NEXUS

Reliability Flexibility Capability

Typical Process Step

(Performance Model)

Repair Rework

Non-Utilization (Wait) Time

Changeover/Time

Preventative Maintenance PM

Breakdown (Equipment/Process)

Flexibility

Reliability

Capability

Internal

Customer/s

Cycle Time

100%

Capacity

Internal

Supplier/s

Capacity

0%

Scrap Rejects

NEXUS

Value-Added Process TimeCan be only 10% of Total Capacity!!!

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NEXUS

NEXUS

FLEXIBILITY

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Total Productive Maintenance

What is TPM????.....

TPM is an important approach

for keeping production process and equipment

running smoothly and efficiently

without product defects or issues

Without TPM we will not have process reliability

And

The ability to do rapid changeovers will be difficult

TPM cannot work without total participation!!!!

TPM is a must to manage the health of the process

Avoiding TPM may spell disaster NEXUS

HK

PREVENTATIVE

PREDICTIVE

BREAKDOWN

OVERHUAL

NEW EQUIPMENT SELECTION / MODIFICATIONAlso…..

Corrective maintenance & Maintenance prevention

Total Productive Maintenance…. Pyramid of Activities

Defining measures that indicate failure

….. before they occur

OperatorDaily/inspections/checkups/cleanups

Weekly/inspections/checkups/tune-ups/repairs

Maint tech

Process eng

Function loss/reduction/life cycle?

Audit/Project plan required

Early involvement by ALL

HK=House Keeping, PM =Preventative Maintenance NEXUS

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NEXUS

Overall

Equipment

Effectiveness

TPM Efficiency index (OEE)

Availability Performance Quality= x x

Breakdowns

Setups

Adjustments

Tool trials

Minor stops

Idling

Reduced

speed

Defects

Rework

Startups

yield loss

50% OEE is not untypical… about ½ full potential

NEXUS

SET-UPS

Calibrate with

linear flow goals

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TIER 1

TIER 3

TIER 2 STRATEGY

IMPROVEMENT

PRACTICES

1

2

3


NEXUS

How day-to-day Controls/Issues/ideas/improvements happen!

NEXUS

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Boss

NEXUS

ROLE OF SUPERVISOR Traditional Future

% %

Firefighting 30 0 ELIMINATE

Rescheduling 15 0 ELIMINATE

other 7 0 ELIMINATE

Scheduling 10 5 REDUCE

Directing activities 5 3 REDUCE

Reports 10 5 REDUCE

Training 5 20 INCREASE

Coaching 2 30 INCREASE

Facilitating 2 10 INCREASE

Monitoring group performance 2 5 INCREASE

Special projects 5 15 INCREASE

Inventory control 5 5

Budget control 2 2

48 100

NEXUS

100

Meetings

32%

& Support staff

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TIER 3 Measurements!

Everyone's job can be measured

Workgroups with a common objective can be measured

Regular review of the performance measures and improvement

actions lead to continuous improvement

Point Meetings key to stay focused !

7-UP MEASUREMENTS

• Process defects (defective parts/total parts)

• Scrap (lbs of scrap/part lbs produced)

• Productivity loss (std earned/payroll hrs)

• Late to schedule (% parts late to ship date)

• Process breakdowns (equipment unavailable/total equip hrs)

• People power (# open items from point meeting)

• Safety ( $ cost of poor safety)

Install operator reported deviation accounts (Prevented earning Std)

Ensure are visible and real-time

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NEXUSA book by Michel Greif

POINT MEETINGS…….. TIER 3 core tool

NEXUS

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NEXUS

POINTCOMMUNICATION TIER 3

5SHousekeeping

… for Improvement

NEXUS

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5S….Housekeeping… for Improvement

5 Standards…A Discipline for EVERYONE!!!

1S Separate……….Sort and Scrap

2S Straighten….….Organize

3S Scrub………. Cleaning

4S Standardize.. Spread

5S Systematize… …Sustain with training and self discipline

NEXUS

5S…..Approach… the process….1S Separate……….Sort and Scrap

• Means removing all unnecessary items from the workplace!

• Only necessary items remain!

• This helps to create extra space!

2S Straighten….….Organize• Organize the workplace!

• To find things when needed!

• Things in the right place!

• A place to keep things!

3S Scrub………. Cleaning• Doing the Housekeeping!

• Assisting with any maintenance!

• Attitude for a safe/clean/comfortable place to work!

4S Standardize…… Spread and Identify• Following established procedure!

• Getting a good routine going!

• Working together the same way!

• Improving the way we do things!

5S Systematize… …Sustain with training and self discipline• Attitude!

• Commitment!

• Morale!

• Looking for improvements…self improvement and work cell !

• Ownership! NEXUS

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NEXUS

NEXUS







Make/Ship Loop

Distribution Loop




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SUPPLY

STRATEGY

NEXUS

Rationalize

Shorten

Partner

Ongoing…..

NEXUS

Supplier Certification

Supplier Partnering

(single source)

Supply base Rationalization

Close to point of Use / Customer

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The Supply Rationalization Cube

# Suppliers

# Parts

# Products

Product DesignersSupply Team

The Magic Cube of Supply Management

The Supply Rationalization Cube

# Suppliers

# Parts

# Products

Product /Process

DesignersSupply Team

Shrink the volume of the cube in all 3 planes!

It will require a team approach from all in the organization

The benefits are huge!

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Ongoing…..

NEXUS

Supplier Certification

Supplier Partnering

(single source)

Supply base Rationalization

Close to point of Use / Customer

GLOBALIZED

MANUFACTURING

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LO

CA

L

BE

ST

OF

F-S

HO

RE

WO

RS

T O

FF

-SH

OR

E

?

Boston Consulting Group (BCG)……Predict BALANCED LANDED COST parity by 2015 in most sectors

The REAL Costs to Manufacture OFF-SHORE will be projected to rise.

Due to: Exchange, tariffs, Labor wage inflation, Product Quality Cost escalation

Transportation costs, Customer location Inventory costs, Ease of doing business,

Plus…Many Other hidden drivers….

OFFSHORE LOCAL

BALANCED SOURCING

Validated Cost Trade-off Models … LOCAL versus Off-shore

LO

CA

L

BE

ST

OF

F-S

HO

RE

WO

RS

T O

FF

-SH

OR

E

?

Boston Consulting Group (BCG)……Predict BALANCED LANDED COST parity by 2015 in most sectors

The REAL Costs to Manufacture OFF-SHORE will be projected to rise.

Due to: Exchange, tariffs, Labor wage inflation, Product Quality Cost escalation

Transportation costs, Customer location Inventory costs, Ease of doing business,

Plus…Many Other hidden drivers….

OFFSHORE LOCAL

BALANCED SOURCING

Validated Cost Trade-off Models … LOCAL versus Off-shore

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Reshoring Tipping pointProduct $ labor versus Cubic Volume

USA Economy

$ Lab

Product Cubic Volume

Offshore

Onshore

Tipping Point 2012

I Phone

Fridge

Reshoring Tipping pointProduct $ labor versus Cubic Volume

USA Economy

$ Lab

Product Cubic Volume

Offshore

Onshore

Tipping Point 2015

I Phone

Fridge

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COMBINED OPERATIONS

Take Back Manufacturing

TBM

CIM: What factors are driving manufacturers'

decisions to bring production back to Canada?

Southway: It's a North American-wide realization that

off shoring is getting more expensive with increased

transportation expense due to oil costs, as well as

labor price escalation in emerging economies. Many

corporations and large consulting groups also recognize

that there are many hidden costs and issues in supporting

a remote supply chain. In general, local manufacturing is

now considered to be no more expensive than offshore

production. The landed cost tipping point in some sectors

and commodities is projected to be reached by 2015.

Local manufacturing also offers more stability and the

ability to innovate at home more effectively. And, being

closer to the customer has added inventory and flexibility

advantages.

CIM: How can industry members communicate the

importance and value of manufacturing to the

general population?

Southway: We have had three decades of people thinking

manufacturing is bad news. Manufacturing has been

viewed as dirty and dangerous, risky and unstable

employment, and so forth. We have a lot of work to do to

change this negative image. Just talking about TBM, telling

the real story, and showing what we do will help.

If we look at the long term, today's 12- to 15-year-olds will

lead the way. When they reach 22 years old, we will have a

thriving localized manufacturing economy. It certainly won't

be based on cheap oil or energy, but it will be very lean

and very green. Things will be made in local manufacturing

hubs or clusters. Factories will be very high-tech and their

operation will demand high levels of skill and education.

All this needs vision and a can-do attitude. Not having both

of these is our biggest risk.Take Back Manufacturing

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NEXUS








Make/Ship Loop

Distribution Loop



• Who is the customer?

• Must think holistically !

• From Vertical to Horizontal thinking

• The 5 Loops in the business

• Use the 5 Loops to provide focus

5 Business Loops

Ideas to Launch process…

N…P….INew

Product

Introduction

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Discovery

Invention

Research

Development

Launch

Commercialization

INNOVATION


$$$$

Academia


Discovery

Invention

Research

Development

Launch

Commercialization

INNOVATION


$$$$

MarketersResearchers

Product TeamsProduction/Distribution

Happy

Customer

Academia


Inventors

White Spaces

The time delay between major functions,

where less than effective communication

linkage can occur, which affects the

interaction required between these functions

or departments to complete the essential tasks

of the business effectively and efficiently.

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NPI PROCESS

Proto

Build

Prod

BuildProd

Release

Pre-Prod(PPAP)

Build/Test

Concept

Design

Detailed

DesignRFQ Process

Phase 0

Process

Phases

Phase 1 Phase 2 Phase 3

Milestones Project Proposal

Concept Design ReviewDetailed Design Reviews

Final Review/Ship

1st production Ship

Process Readiness Review

Special Product characteristics

D-FMEA

Proto Control Plan

Product Sign-off

ECN Release

Design Review (START PROTOTYPE) (Team Commit)

Post NPI audit

Weekly Status Meetings

Proto Build/Test/ship

TOOLING

Post R@R ReviewRUN @RATE

Production Release Prep (Control Plans etc)

PRODUCTION RELEASE

Planning Activities

A2

Checklists (latest completion)

A1 A3 A4/5/6/7/8/9

Data collection

Special process characteristics/ P-FMEA

Process flow chart / Pre prod Control plan / Mistake proof

Proto DataNPI Action log

R@R Data

RFQ/BID DESIGN & PROTOTYPE PRODUCTIONPRE-PROD

ECN Control

Mandatory Tollgates

Cross-functional Team

Customer Requirement Customer signoff

Protoship Checklist

The Stage /Gate process

SIX SIGMA

PPM

SIGMA

0

100000

200000

300000

400000

500000

600000

700000

1 2 3 4 5 6

NEXUS

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3 Sigma means 2700 parts-per-million 0.27% defect (99.73% Yield)

59 newborn babies dropped in the maternity ward

23.65 hours of unsafe drinking water

20,000 incorrect drug prescriptions in Canada

200,000 documents lost by Revenue Canada

438 babies given to the wrong parents

517,200 cases of soft drinks flatter than a bad tire

Virtually no modern computer would function.

10,800,000 healthcare claims would be mishandled each year.

18,900 US Savings bonds would be lost every month.

54,000 checks would be lost each night by a single large bank.

4,050 invoices would be sent out incorrectly each month by a Telco .

270,000,000 (270 million) erroneous credit card transactions in USA

NEXUS

Real Life Sub-"Zero Defects"

3 Sigma means 2700 parts-per-million 0.27% defect (99.73% Yield)

59 newborn babies dropped in the maternity ward

23.65 hours of unsafe drinking water

20,000 incorrect drug prescriptions in Canada

200,000 documents lost by Revenue Canada

438 babies given to the wrong parents

517,200 cases of soft drinks flatter than a bad tire

Virtually no modern computer would function.

10,800,000 healthcare claims would be mishandled each year.

18,900 US Savings bonds would be lost every month.

54,000 checks would be lost each night by a single large bank.

4,050 invoices would be sent out incorrectly each month by a Telco .

270,000,000 (270 million) erroneous credit card transactions in USA

NEXUS

Real Life Sub-"Zero Defects"

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Motorola

3 Sigma

SIX Sigma

Product Development Teams

DESIGN PROCESS

DFM CHECKLISTS

Pre

SIX Sigma

SIX SIGMA

5 Sigma

Almost 6 SigmaSIX Sigma

New Product Launch Teams

MFG PROCESS/SPC

FOCUS WAS NEW PRODUCTS/PROCESSES

A Cross Functional Melding for Product/Process Optimization

+

PREFERRED SIX SIGMA FOCUS

• NPI (New Product/Process Introduction )

OR

• Existing Products/Process that CAN be redesigned as necessary

NEXUS

“Six Sigma is about a team effort to launch the next products and

processes so they work together far better, to meet the

performance needed to satisfy the customer”.Bob Galvin

Motorola 1985

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YOU NEED BOTH!

80%

20%

But also need a CI Implementation Process!

START HERE!

Selective projects!

Plus a strong Vision!

E3 Extreme Enterprise Efficiency

NEXUS







Make/Ship Loop

Distribution Loop




http://www.leansixsigmaandbeyond.com/wp-content/uploads/2011/12/Picture14.jpg

http://www.leansixsigmaandbeyond.com/wp-content/uploads/2011/12/Picture14.jpg

http://leansixsigmaandbeyond.com/training/lean-six-sigma-master-black-belt-training-2-one-week-classes/

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Continuous Improvement (LEAN)

IMPLEMENTATION

NEXUS

What does LEAN Implementation mean?.....

• A change in business thinking & practices

• It is not a technology you can buy turn-key

• You need an implementation framework

• You need support for education and training

• You need commitment, vision and coordination

130 NEXUS

A little bit of Threat helps!

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131

VISION/Commitment

Formal Continuous Improvement System

Concepts for Improvement

Change Structure/Process/Culture

Facilitation Education

EVOLUTION PLAN

5 loop Scope of change

3 TIERS of change

SCORECARDPerformance Measures

Programs/Projects/Change teams

Mobilization of whole workforce

Six Sigma?

CTM?/LEAN?

TPM/TPS/5S?

?????

BenchmarkingResults/savings

Engagement

Benchmark/Scorecard

Empowerment

Ongoing Evolution Plan Operational Evolution plan for continuous improvement and future success.

Define business improvement opportunities and savings

Benchmark against best in class to define gaps

Prioritize these many improvement imperatives

Work the plan to continuously improve business process performance

Take advantage of significant business changes/disruptions to make improvements

Enhance the business operational leader’s ability to improve the business

Allow an ongoing broader team perspective to define/plan/implement change

Develop an improvement culture in the overall business value chain

132

NEXUS

Integrate into One Plan… and SUSTAIN!.

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IMPLEMENTATION

NEXUS

Benchmarking…. Are you ready?

Benchmark your LEAN journey

THE SCORE CARD

LEAN

CERTIFICATION

Available to SME

Chapter Members

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The LEAN Scorecard deliverables.

List of baseline issues

Vision of baseline to Entitlement

Key strategies for Improvement

Savings predicted by business loop

Evolution plan …

Change structure suggestedEducation and training gap to fill Key projects proposedTimelineNext steps/support budget

NEXUS

NEXUS








Make/Ship Loop

Distribution Loop



5 Business Loops

3TIERSSTRATEGY

IMPROVEMENT

PRACTICES

1

2

3

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LEAN Scorecard Categories

NPI

SUPPLY

DEMAND

ORGANIZATION

LINEAR PROCESS

PROCESS IMPROVEMENTS

PEOPLE/PRACTICES

TIER 1

TIER 2

TIER 3

NEXUS

(3 laws for improvement)

(Supply Management concepts

LEAN SURVEY RESULTS

25

75

50

Entitlement (Good)

Baseline (Poor)

(Weak)

Benchmark (Excellent)

(With limited Capital)

(With Effective additional Capital)

Current Score

Year 2 Year 4

NEXUS

100




AveNigel

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Average Client score

Average NEXUS score

Nexus score

Client Average

Client Lowest


IMPLEMENTATION

NEXUS

Formal Evolution planning!

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141

VISION/Commitment





EVOLUTION PLAN


3 TIERS of change




Six Sigma?

CTM?/LEAN?

TPM/TPS/5S?

?????


Engagement

Benchmark/Scorecard

Empowerment


The essential extra special skill set

Must Shift Paradigms

Create Emotional Tension

Manage and Measure!

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Balancing short term improvement projects with the continuous improvement journey

The CI Sustainability Dipper

Formal CI Program

Time to implement

Benefits

Short term pilot Improvement project/s

PlanningForum

Management Team

(Approval Team)

Evolution Review Teams

Evolution Plan

Communication Evolution Plan

Planning Execution

Proj

Ldr

Prog

Ldr

Prog

Ldr

Prog

Ldr

Proj

Ldr

Proj

LdrProj

LdrProj

Ldr

Proj

LdrProj

Ldr

Proj

Ldr

12 Step Implementation Process

Step 2

Step 3/4/5

Step 1

Step 7

Step 12+

Plan Approval

Step 6

Team members

Tasks

Step 10/11

Step 9

Team Structure

NEXUS

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Step 1 Approval Team kick-off

Step 2 Planning Forum

Step 3 Review team Kick-off

Step 4 Review team planning

Step 5 Formalize Evolution Plan

Step 6 Management Approval

Step 7 Communicate Evolution Plan

Step 8 Program kick-offs

Step 9 Project kick-offs

Step 10 Project Approval

Step 11 Monthly Review

Step 12 Quarterly Communication


Planning Execution

To Support an Evolution Plan for Continuous Improvement

NEXUS

PlanningForum

Management Team

(Approval Team)


Evolution Plan


Planning Execution

Proj

Ldr

Prog

Ldr

Prog

Ldr

Prog

Ldr

Proj

Ldr

Proj

LdrProj

LdrProj

Ldr

Proj

LdrProj

Ldr

Proj

Ldr

NEXUS 12 Step Implementation Process

Step 2

Step 3/4/5

Step 1

Step 7

Step 12+

Plan Approval

Step 6

Team members

Tasks

Step 10/11

Step 9

Team Structure

Mission Statement

Define Approval team role

VISION/Risk assessment

Define Coordinator

Planning forum scope

Management actions

Step 1

NEXUS

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BEHAVIORIST

FACILATATOR

COACH

CONSULTATIVE

MANAGER

EDUCATIONALIST

ENVIRONMENTALIST

CHANGE COORDINATION STYLES

TEACHER

HOWWHY

WHATMUST

REMEMBER…….

YOU CAN CHANGE THE ENVIRONMENT EASIER THAN BEHAVIOR

Process for Change

PlanningForum

Management Team

(Approval Team)


Evolution Plan


Planning Execution

Proj

Ldr

Prog

Ldr

Prog

Ldr

Prog

Ldr

Proj

Ldr

Proj

LdrProj

LdrProj

Ldr

Proj

LdrProj

Ldr

Proj

Ldr


Step 2

Step 3/4/5

Step 1

Step 7

Step 12+

Plan Approval

Step 6

Team members

Tasks

Step 10/11

Step 9

Team Structure

Positional Analysis

Detailed Business process maps

Define Baseline to Entitlement/Benchmark

Form Review Teams (areas of focus)

Step 2

NEXUS

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NEXUS

LEAN/CYCLE TIME REDUCTION TOOLS

CI/LEANEVOLUTION

TEAMVISIONS

&PLANS

150

6/3/2015

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151

Linear Map… Value stream

6/3/2015

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Entitlement

Baseline

Benchmark




NEXUS

NEXUS

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NEXUS

Reduced

Cost

Improved Agility

OE

NPI

Supply RMS

M

DFGS

Business Cycle-time Chart

OE

NPI

Supply RMS

M

DFGS

139 days

115 days

OE

NPI

Supply

RMS

M

DFGS

80 days

Baseline

Entitlement

Entitlement

With

Local Supply

Chain management

NPI

70 days

NPI 20 days

(3weeks)

Entitlement

With

Agile NPI procedures

and design platforms

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Entitlement will take 1.5 years

Reduce by 24 days of Cycle-time at Entitlement

Save Approx. 5.5% COGs end first year after Entitlement

Save Approx. 4% of COGs follow-on years

24 days

5.5%/4% of COGs

139 Days

Baseline

SUPPLY

FGS

WIP

STRATEGIC

NPI

Sales/DIST

PACKWIP

MAKE

RMS

Customer

Orders

Ship

Continuous Improvement VISION Journey

Baseline

TIER 1 Process strategy/Linear flow

TIER 2 (MFG ops)Project planning

Performance/Financial Measurement

TIER 3 Communication and productivity Enhancement

NPI Procedures

TPM/OEE Program

Supply Management

Quality system and COPQ analysis

ERP Systems Review

TIER 2 (Packing)Project planning

Sales/Distribution

ADMIN Improvement

People planning

Strategic

NPI

Supply

Demand

Organization

Linear Process

Process Improvement

People/Practices

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Imagine the Vision

• Cycle time inside customer expectations

• Faster time to market capability

• Minimal Inventory and carry costs and waste in all forms

• Perfect or Improved quality (Product /Process/Services)

• Total Cost performance excellence

• Greater productivity and increased gross margins

• Reduced working capital

• Increased cash-flow cycle & reduced need for credit

• Employee Participative and Empowerment culture

• Close to Customer culture

• A distinct competitive edge.

NEXUS

The Perfect Business Process


Entitlement

Baseline

Benchmark




NEXUS

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PlanningForum

Management Team

(Approval Team)


Evolution Plan


Planning Execution

Proj

Ldr

Prog

Ldr

Prog

Ldr

Prog

Ldr

Proj

Ldr

Proj

LdrProj

LdrProj

Ldr

Proj

LdrProj

Ldr

Proj

Ldr


Step 2

Step 3

Step 1

Step 7

Step 12+

Plan Approval

Step 6

Team members

Tasks

Step 10/11

Step 9

Team Structure

Review team Kick-off

Focus on clear mandate and scope

Define information and gather

Prepare action lists

Step 3

NEXUS

162

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163

PlanningForum

Management Team

(Approval Team)


Evolution Plan


Planning Execution

Proj

Ldr

Prog

Ldr

Prog

Ldr

Prog

Ldr

Proj

Ldr

Proj

LdrProj

LdrProj

Ldr

Proj

LdrProj

Ldr

Proj

Ldr


Step 2

Step 4

Step 1

Step 7

Step 12+

Plan Approval

Step 6

Team members

Tasks

Step 10/11

Step 9

Team Structure

Review Team Plans

Baseline process under review

Develop entitlement for above

Develop cross functional process map

Review constraints/opportunities

Define corrective and improvement projects

Step 4

NEXUS

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PlanningForum

Management Team

(Approval Team)


Evolution Plan


Planning Execution

Proj

Ldr

Prog

Ldr

Prog

Ldr

Prog

Ldr

Proj

Ldr

Proj

LdrProj

LdrProj

Ldr

Proj

LdrProj

Ldr

Proj

Ldr


Step 2

Step 5

Step 1

Step 7

Step 12+

Plan Approval

Step 6

Team members

Tasks

Step 10/11

Step 9

Team Structure

Review Team Plan Integration

Define improvement milestones

Prepare evolution plans

Group projects into programs

Prioritize and sequence projects

Step 5

NEXUS

PlanningForum

Management Team

(Approval Team)


Evolution Plan


Planning Execution

Proj

Ldr

Prog

Ldr

Prog

Ldr

Prog

Ldr

Proj

Ldr

Proj

LdrProj

LdrProj

Ldr

Proj

LdrProj

Ldr

Proj

Ldr


Step 2

Step 3/4/5

Step 1

Step 7

Step 12+

Plan Approval

Step 6

Team members

Tasks

Step 10/11

Step 9

Team Structure

Management Approval of plan

Hold Approval team meeting

Review teams present Evolution Plan

Achieve approval to proceed with projects

Step 6

NEXUS

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Typical Evolution plan review team presentation ….. 30 Minutes

Introduced with Review team header sheet

Area of focus…. Team members listed

History of team work

The Baseline.The current Map/situationList of issuesThe gapDemo the issues with skits or shocking examples.

The vision.New Map/situationThe EntitlementImprovements summary.BenefitsList of projects to close the gap.Priority top 2 projects/sequence recommended for project activation

A “Before and After” picture always works best

PlanningForum

Management Team

(Approval Team)


Evolution Plan


Planning Execution

Proj

Ldr

Prog

Ldr

Prog

Ldr

Prog

Ldr

Proj

Ldr

Proj

LdrProj

LdrProj

Ldr

Proj

LdrProj

Ldr

Proj

Ldr


Step 2

Step 3/4/5

Step 1

Step 7

Step 12+

Plan Approval

Step 6

Team members

Tasks

Step 10/11

Step 9

Team Structure

Issue Evolution Plan

Prepare Plan

Develop Presentation

Communicate Plan to all levels

Step 7

NEXUS

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Management Team

(Approval Team)

Evolution Plan

Execution

Proj

Ldr

Prog

Ldr

Proj

Ldr

Proj

Ldr


Step12Ongoing

Communication

Program

Kick-off

Project Activated

Project

Kick-offSet project

goals

Project

Organiza

tion

Feasibility

PhasePlanning

Phase

Implement

PhaseFollow-up

Phase

Audit

Report

Audit

Audit

Team

Evolution Review

(Monthly)

Project ApprovaIMeeting

Step 10

Step 11

INACTIVE COMPLETEACTIVE

Step 8 Step 9

Projects status can be INACTIVE / ACTIVE / ON HOLD / COMPLETE

Steps 8 to 12

NEXUS

Management Team

(Approval Team)

Evolution Plan

Execution

Proj

Ldr

Prog

Ldr

Proj

Ldr

Proj

Ldr


Step12Ongoing

Communication

Program

Kick-off

Project Activated

Project

Kick-offSet project

goals

Project

Organiza

tion

Feasibility

PhasePlanning

Phase

Implement

PhaseFollow-up

Phase

Audit

Report

Audit

Audit

Team

Evolution Review

(Monthly)


Step 10

Step 11


Step 8 Step 9


Program kick-off

Define Overall schedules

Balance resources in organization

Prepare Projects support.

Step 8

NEXUS

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Management Team

(Approval Team)

Evolution Plan

Execution

Proj

Ldr

Prog

Ldr

Proj

Ldr

Proj

Ldr


Step12Ongoing

Communication

Program

Kick-off

Project Activated

Project

Kick-offSet project

goals

Project

Organiza

tion

Feasibility

PhasePlanning

Phase

Implement

PhaseFollow-up

Phase

Audit

Report

Audit

Audit

Team

Evolution Review

(Monthly)


Step 10

Step 11


Step 8 Step 9


Project kick-off

Review project mandate/scope

Define project schedules

Prepare detailed plan

Agree project meeting plan.

Step 9

NEXUS

Management Team

(Approval Team)

Evolution Plan

Execution

Proj

Ldr

Prog

Ldr

Proj

Ldr

Proj

Ldr


Step12Ongoing

Communication

Program

Kick-off

Project Activated

Project

Kick-offSet project

goals

Project

Organiza

tion

Feasibility

PhasePlanning

Phase

Implement

PhaseFollow-up

Phase

Audit

Report

Audit

Audit

Team

Evolution Review

(Monthly)


Step 10

Step 11


Step 8 Step 9


Management Project Approval

Project leader coordinates.

Presentation of project (detailed)

Outline of work done to-date

Request Approval to proceed further

Present resources/funds to complete

Give brief ROI/payback

Update schedule

Explain risks and red flags

Step 10

NEXUS

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Management Team

(Approval Team)

Evolution Plan

Execution

Proj

Ldr

Prog

Ldr

Proj

Ldr

Proj

Ldr


Step12Ongoing

Communication

Program

Kick-off

Project Activated

Project

Kick-offSet project

goals

Project

Organiza

tion

Feasibility

PhasePlanning

Phase

Implement

PhaseFollow-up

Phase

Audit

Report

Audit

Audit

Team

Evolution Review

(Monthly)


Step 10

Step 11


Step 8 Step 9


Monthly Evolution Plan Review

Evolution Coordinator arranges..

Brief active project progress report

Escalation of any project Red flags

Review Resources across Evolution plan

Deliberate on project status change

Identify/activate new projects

Inactivate/On hold/cancel projects

Update Evolution plan

Step 11

NEXUS

Management Team

(Approval Team)

Evolution Plan

Execution

Proj

Ldr

Prog

Ldr

Proj

Ldr

Proj

Ldr


Step12Ongoing

Communication

Program

Kick-off

Project Activated

Project

Kick-offSet project

goals

Project

Organiza

tion

Feasibility

PhasePlanning

Phase

Implement

PhaseFollow-up

Phase

Audit

Report

Audit

Audit

Team

Evolution Review

(Monthly)


Step 10

Step 11


Step 8 Step 9


Quarterly Communication session

Evolution Coordinator arranges…..

Evolutions plan progress

Ongoing display board

Company newsletter on the progress

Permanent War-Room to gather information

Generate ongoing involvement

Ensure strong commitment.

Step 12

NEXUS

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88

And.. Keep it going!

• Regular Evolution plan review meeting to sustain progress.

• Ensure the LEAN tools are taught and used continuously.

• Review the roles of everyone as the organization evolves..

• Modern supervisory practices

• Daily Communication and Point Meetings

• Effective and real-time performance measurement

• Strong tools to problem-solve and motivate

• Project and Change management tools

176

VISION/Commitment





EVOLUTION PLAN


3 TIERS of change




Six Sigma?

CTM?/LEAN?

TPM/TPS/5S?

?????


EmpowermentEngagement

6/3/2015

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177

The Key Client Questions…. The Journey Toward Operational Improvement

Are you satisfied with your profitability?

Do you have a detailed plan to increase your Operational profit margin?

Do you know (in detail) where the bottlenecks and waste factors are that effect productivity and profit?

Do you have a clear vision of what to do to get those improvements?

Do you have an Evolution plan and detailed project activities for all your business improvements?

Do you have a formal and well communicated system to measure the improvements?

Does a clear vision for improvement and toolkits to make them happen exist at all levels ?

Do you have a key person focused, dedicated and assigned to make such improvements happen?

Is your organization physically arranged and culturally positioned to eliminate waste?

Have you assessed the effectiveness of your operating practices to support/sustain changes needed?

Do you have a formal global sourcing strategy and plan?

Do you have effective project management processes for all new products and associated processes?

Most organizations score less than 30%

NEXUS

/12=

WWW.NIGELSOUTHWAY.COM

Join the Crusade…. NEXUS - Nigel Southway · Morton Metal-craft, Inter-City Products, ... •Automotive parts supplier ... Pyramid/Balanced Scorecard 1970 1980 1985 1990 1995

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