2018 Operational Excellence | slide 1
Business transformation toward operational excellence
with LeanHugo Paradis, CLSSBB
Carine Botturi, MBA, CIPP-C
Perfectionnement
www.seformer.ca
2018 Operational Excellence | slide 2
Carine Botturi, MBA, CIPP-C
Experience 19 years▪ TELUS – Director Risk management – Privacy ▪ TELUS – Director Operational Excellence Enablement ▪ Bell Canada – Associate Director, Continuous business process improvement
and enablement, Performance Management, Finance, Risk Management, Project and program management
Education▪ CIPP-C : Certified Information Privacy Professional – Canada ▪ MBA : Strategy and International Management (research) ▪ MA : Politics and International relations ▪ Lean Six Sigma Black Belt
Something about me …▪ Love Canadian winter for skiing and country skiing ▪ Ballet and Pilates fan … when not snowing !
Perfectionnement
www.seformer.ca
2018 Operational Excellence | slide 3
Hugo Paradis, CLSSBB
Experience 27 years▪ Qualiti7 – Operational Excellence Dev and training LSS▪ TELUS – Operational Excellence Dev and training LSS
Senior Consultant Technology and Strategy Manager▪ E3 Services Conseils – Senior Consultant Operational Excellence :
La Presse, Banque Nationale▪ President of Sigma Performance and Senior Consultant Operational
Excellence▪ Bell Canada – Associate Director , Continuous business process
improvement, Balanced Scorecard, Project mgt, Risk mgt
Education▪ Université de Montréal: Statistics and probability▪ Master – Project Management and balanced scorecard▪ PMP, ITIL Foundation, Lean Six Sigma Black Belt
Something about me …▪ Lean Six Sigma Trainor : white, yellow, green and black belt
2018 Operational Excellence | slide 4
Operational Excellence at Telus
• Excellence is performance through end to end (e2e) processes and systems that execute the business strategy. OE creates value with higher speed, reliability and cross-functional collaboration.
• A philosophy where problem-solving, teamwork, and leadership results in the ongoing improvement in an organization. The process involves focusing on the customers' needs, keeping the employees positive and empowered, and continually improving the current activities in the organization.
2018 Operational Excellence | slide 5
• Operational Excellence – Translating strategy into execution➢ Framework and goals ➢ Methods : Problem solving approaches depending on complexity and benefits➢ Improve and innovate : Agility and scalability of the organization (process mindset, system)
• Operational Excellence – Concepts and Methodologies➢ Methodologies to control waste➢ Five Core Lean Principles ➢ Applying methodologies ➢ Lean Six Sigma
• Operational Excellence –Key Success Factors ➢ Support from the top of the organization & right relationship balance ➢ Project Selection ➢ Rigour in execution : Project and Program management & Change Management
o Project selection o Break down complex projects in smaller initiatives o Plan, do, act, check ! & DMAIC
2018 Operational Excellence | slide 6
Operational Excellence – Translating strategy into execution
• Framework and goals : • Align Vision, Strategic imperatives and projects to identify metrics, targets and
measures
• Reconcile the what we want to accomplish with the how we are going to make it happen
• Methods : Problem solving approaches depending on complexity and benefits
• Improve and innovate : Agility and scalability of the organization (process mindset, system)
2018 Operational Excellence | slide 7
MissionWhy We Exist?
ValuesWhat’s Important to Us?
VisionWhat We Want to Be?
StrategyOur Game Plan
Strategy Playbook, Maps & ThemesTranslate the Strategy
Balanced ScorecardMeasure the Focus
Targets & PMO/InitiativesWhat We Need to Do?
Personal ObjectivesWhat I Need to Do?
Strategic Outcomes
Satisfied
Shareholders
Delighted
Customers
Efficient &
Effective Process
Motivated &
Prepared Workforce
Translating Strategy into Execution
2018 Operational Excellence | slide 8
Operational Excellence Framework & Goals
Executive-level led initiative to grow Operational Excellence
Build Leadership skills on how to leverage OE to drive value on
top improvement priorities
Clear & consistent expectations to demonstrate leadership
commitment and sponsorship
General OE awareness across team members on how to identify waste
Train and develop a critical mass (~0.5-1% FTEs) of practitioners using
OE methods
Company & BU level programs promote sharing, benchmarking and
practitioner development
OE program aligned to strategic objectives and high priority areas
Comprehensive reporting to track multiple categories of benefit and
measure OE impact
Delivering positive impact with tangible benefits within each
Business Unit.
Leadership Commitment
Talent& Culture
OE Execution & Impact
Our vision is to incorporate industry best practices into the strength of the culture
2018 Operational Excellence | slide 9
Operational Excellence Methods
Hig
hM
ed
Lo
w
~1-3 months ~3-6 months ~6-12+ months
Complexity (Time/Effort)
Do
Don’t Do
Major
Projects &
Initiatives
Va
lue
/ B
en
efi
t
Long-Term
Strategic
Lean Redesign
Targeted Methods to:
Customers First
• Improve Likelihood to
recommend
• Reduce Churn
• Gain Market Share
Our Business
• Increase Revenue
• Reduce Costs
• Shorten Time to Market
Our Team
• Develop Leaders
• Grow Human Potential
• Drive Team Engagement
Lean Six SigmaOwn.it / Work out
2018 Operational Excellence | slide 10
Improve and Innovate
Operational Excellence
▪ Improve Reliability
▪ Create Efficient Processes
▪ Reduce Customer Churn
▪ Increase Operating Margins
▪ Gain Market Share
Continuous Process Improvement
Human
Capital Growth
Continuous Learning
& Reflection
Improve Today
Fuel Tomorrow
Leadership Commitment
Strategic Planning & Cascading SMART Objectives
Fair Process, DMAIC, Lean Thinking (system and process thinking)Project & Program Management, Change Management
Innovation Excellence
▪ Increase Brand Loyalty
▪ Provide Value Differentiation
▪ High Quality Products & Services
▪ Increase Speed to Market
▪ Generate New Revenue Streams
Products & Services Development
2018 Operational Excellence | slide 11
Operational Excellence – Concepts and Methodologies
• Methodologies to control waste
• Five Core Lean Principles
• Applying methodologies
• Lean Six Sigma
2018 Operational Excellence | slide 12
Defects Over Production Waiting Non-Utilized Talent
Transport Inventory Motion Extra-processing
8 Types of Waste (DOWNTIME)
Rework and Frustration are symptoms of waste that add cost
2018 Operational Excellence | slide 13
Five Core Lean Principles
Customer Value
Value Stream
Flow & Pull
Empower People
Perfection
Specify Value from the customer’s perspective
Identify the Value Stream (process steps) for each product or service
Make value “flow” without interruptions using “pull”
Make use of untapped potential from team members in improvements
Strive to pursue for perfection
Customer Value
Value Stream
Flow & Pull
Empower People
PerfectionContinuous
ImprovementCycle
Create Speed & Efficiency through Waste Elimination
2018 Operational Excellence | slide 14
Applying Methodologies: A Rule of Thumb
Strategic
Initiative
Strategic
Initiative
Strategic
Initiative
Strategic
Initiative
BlitzTeam
Project
Action
Items
Action
ItemsPDCA
PDCA
Blitz
Many Small
Problems
Few Medium Size
Problems
Very Few Big
Problems
Daily Problem Solving
2018 Operational Excellence | slide 15
Employing Lean Six Sigma (LSS) improves efficiency,
speed and quality, what leading companies do to win
A Lean Six Sigma Transformation Drives Value and Continuous Improvement
LeanSix Sigma
Lean(Less complexity = Faster speed)
Six Sigma(Less variability = Better performance)
EmployeeEngagement
ProvenMethodology
LeadershipSupport
Delivered Benefits• Organizational – Empowered leaders who
manage by facts
• Cultural – A team whose mindset is “improve and win”
• Technical – Process discipline and rigor to compete globally
Typical Initiatives• Balance work to improve output
• Prevent defects and reduce losses
• Build better products for smoother growth
Measure and reduce:• Defects• Lead time• Variation (more good, less bad)
Focus and reduce: • Waiting time• Hand offs• Wasted time and effort
Non-value steps
Value adding steps
Legend:
Fewer defects cut cost and raise revenue $$
Six Sigma
Upper Spec(Defects)
Lower Spec(Defects)
Lean
▪ Cycle Time reduction (efficiency)
▪ Productivity (resources /unit of output)
▪ Quality - Accurate & Complete (effectiveness)
▪ Rolled throughput yield (Flow)
2018 Operational Excellence | slide 16
Operational Excellence –Key Success Factors
• Support from the top of the organization & right relationship balance
• Project Selection
• Rigour in execution : Project and Program management & Change Management
– Project selection – Break down complex projects in smaller initiatives – Plan, do, act, check ! & DMAIC
2018 Operational Excellence | slide 17
Guiding principles:
◼ Identify the right business opportunities/ projects
◼ Select the right “high potential” candidates
◼ Provide the right tools/support to drive project success
Right People
Right Tools
Right
Results
Right Opportun
ity
Success Formula
Sponsorship &
Support
2018 Operational Excellence | slide 18
Project Selection
2018 Operational Excellence | slide 1919
Realization roadmap
Define
Innovate for the future
1
3
Measure and Analyze the actual
2
Control the new process
4
Planning Delivery
Global action plan
Define and target
Organize and Plan
Execute and deliver
Vision and objectivesBenefits realization and
value creation
Business decisions Bottom line results
2018 Operational Excellence | slide 20
Operational Excellence – Lessons Learned
• New paradigm : New mindset
• Opportunity to challenge the status quo and to break internal silos
• Focus on collaboration and team members empowerment
2018 Operational Excellence | slide 21
Traditional Paradigm
• Jump to solutions without understanding
the real issue
• Cost cutting focus
• Band aid solutions
• Silo mentality
• On time and on budget project focused
• Many initiatives with no clear link to
strategy
New Paradigm
• Use facts to identify and solve problems
• Focus on customer satisfaction to drive
bottom line improvement
• Eliminate root causes to permanently fix
problem
• Overall business focus
• Most effective and efficient solution
• Prioritized list of initiatives based on
business strategy
A New Paradigm
2018 Operational Excellence | slide 22
System Efficiency Optimum Performance
Individual Efficiency Sub-Optimal Performance
Key Focus is to enable coordination across the system
System vs Individual Efficiency
System Efficiency Individual Efficiency
Parts of end-to-end cross-functional process fir together
Emphasis is on « Me » instead of « We »
Greater results when people coordinate across main E2E processes
The extra individual effort doesn`t have any significant impact
The result would be of optimum performance
The results is sub-optimal performance
2018 Operational Excellence | slide 23
Fun
ctio
n #
1
Fun
ctio
n #
2
Fun
ctio
n #
3
Fun
ctio
n #
1
Fun
ctio
n #
2
Fun
ctio
n #
3
Process #1
Process #2
Process #3
Customer
Functions driving businessLimited Process Focus
Processes acknowledgedFunctions dominate
Processes driving businessFunctions enabling
Functional to Process Driven
2018 Operational Excellence | slide 24
The right opportunity
+
The right people
+
The right tools
=
The right results
Right People
Right Tools
Right
Results
Right Opportunity
Operational Excellence
3
QUESTIONS ?
Making it Real
Building Operational Excellence
Five Core Lean Principles
2018 Operational Excellence | slide 27
Five Core Lean Principles
Customer Value
Value Stream
Flow & Pull
Empower People
Perfection
Specify Value from the customer’s perspective
Identify the Value Stream (process steps) for each product or service
Make value “flow” without interruptions using “pull”
Make use of untapped potential from team members in improvements
Strive to pursue for perfection
Customer Value
Value Stream
Flow & Pull
Empower People
PerfectionContinuous
ImprovementCycle
Create Speed & Efficiency through Waste Elimination
2018 Operational Excellence | slide 28
1. Define Customer Value
Specify Value as Viewed by the Customer’s Perspective
Steps that directly
increases the value of
the product in the eyes
of the customer-what
the customer is willing
to pay for!
Work that does not directly add customer value, but are currently
necessary to enable ‘flow’ (aka Business Value Add or BVA)
Use of resources
that does not add
any value to a
product (“waste”) Necessary
Non-Value
Added
Customer
Value Added
Non -
Value
Added
• Delays,
• Duplication,
• Unclear Info
• Rework,
• Errors, etc.
• Quality,
• Functionality,
• Timeliness,
• Availability, etc.
• Budgeting
• Coding
• Scheduling
• Regulatory
• Incidental work, etc.
2018 Operational Excellence | slide 29
Sales Schedule Installation Service
Value
Stream
PROCESS PROCESS PROCESS PROCESS
E.g. INSTALLATION PROCESSInitial
Customer
Contact
Positive
Customer
Outcome
Value Stream – ALL steps required to complete a product or a service from beginning to
end. (aka Value Chain)
2. Identify the Value Stream
2018 Operational Excellence | slide 30
Value Stream Mapping
Start Process
Process Finished
VA NVA NVA NVA VA NVA NVA NVA VA NVA NVA NVA
Total Lead Time
Process Time Process TimeProcess Time
Providing Optimum Value to the Customer through a Complete Value Creation Process
Activities that do not contribute to meeting customer requirements.
Move time – time that a work unit spends in transit from one process step to the next one
Queue time – time that a work unit waits for a downstream process step to be ready to
work on it.
37
2018 Operational Excellence | slide 31
3. Create Flow & Pull
Eliminate Waste & Make the Value-Added Steps Flow34
2018 Operational Excellence | slide 32
4. Empower People
❑ Build a Learning Organization
❑ Open Communications
❑ Investing in Development
❑ Safe work environments
❑ Recognition for Improvement
❑ Allow Learning from Mistakes
❑ Expanding Knowledge base
❑ Encourage new ideas from all
❑ Motivate with purpose over paycheck
Continuous Improvement
Respect for People
Fake Lean
Real Lean
Respect, Challenge & Grow our People35
2018 Operational Excellence | slide 33
5. Pursue Perfection
Constant Reflection & Continuously Improvement
Map the Current State (as-is process)
Map the Future State (would be process)
Focus on Sustaining Gains
Measure True Impactsof Change
Look for incremental
improvements
Implement the
incremental improvements
Let the system stabilize &
quiet down
Sta
rt th
e c
ycle
ag
ain
Identify the Problem