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8/12/2019 Breakthrough Performance - a Transformation Model
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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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DLE Technical Services, LLC4
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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DLE Technical Services, LLC8
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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