Studies have shown that only 40% of organizations have a formal system for employees to submit ideas. This means that most organizations have missed out on the opportunity to increase customer satisfaction, improve bottom line and enhance employee satisfaction. On the other hand, those with existing Suggestion Systems have encountered poor participation rates, low implementation rates and a complicated evaluation system. Others have found that their suggestion boxes are either empty most of the time or have become trash bins. It is rare to find good quality ideas that are logical, radical and practical to implement. With this presentation, you will learn how to put in place a lean and effective employee suggestion system that generates a constant flow of good quality ideas. LEARNING OBJECTIVES 1. Understand the key elements of a suggestion system 2. Define how to plan and launch an effective suggestion system 3. Describe how to set up a strategy and mechanism to generate ideas, capture quality ideas, evaluate ideas and sustain a constant flow of ideas 4. Explain how to develop employees to identify opportunities for improvement and write good quality ideas 5. Define success factors for sustaining a suggestion system CONTENTS 1. Introduction to Kaizen 2. Introduction & Basic Concepts of a Suggestion System 3. Scope of Suggestions 4. Goals of a Suggestion System 5. Planning & Launching a Suggestion System 6. Roles & Responsibilities 7. The Suggestions Process 8. Evaluation & Award Systems 9. Examples of Effective Procedures 10. Techniques for Developing Creativity 11. Examples of Ideas for Improvement 12. Points for Improvement 13. Ways to Develop "Kaizen Eyes" 14. How to Sustain a Suggestion System To download this complete presentation, please visit: http://www.oeconsulting.com.sg

1. © Operational Excellence Consulting. All rights reserved. 1
Effective
Staff Suggestion
System
© Operational Excellence Consulting. All rights reserved.

2. © Operational Excellence Consulting. All rights reserved. 2
Objectives
1. Understand the key elements of suggestion systems
2. Explain how to plan and launch an effective suggestion
system
3. Describe how to set up a strategy and mechanism to
generate ideas, capture quality ideas, evaluate ideas
and sustain a constant flow of ideas
4. Explain how to develop employees to identify
opportunities for improvement and write good quality
ideas
5. Define success factors for sustaining a suggestion
system
Copyrights of all the pictures used in this presentation are held by their respective owners.
NOTE: This is a PARTIAL PREVIEW. To
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3. © Operational Excellence Consulting. All rights reserved. 3
1 Introduction to Kaizen
2 Introduction & Basic Concepts of Suggestion Systems
3 Scope of Suggestions
4 Goals of a Suggestion System
5 Planning & Launching a Suggestion System
6 Roles & Responsibilities
7 The Suggestions Process
8 Evaluation & Award Systems
9 Examples of Effective Procedures
10 Techniques for Developing Creativity
11 Examples of Ideas for Improvement
12 Points for Improvement
13 Ways to Develop “Kaizen Eyes”
14 How to Sustain a Suggestion System
Outline

4. © Operational Excellence Consulting. All rights reserved. 4
”Engaged”
Employees
Gallup Global Employee Satisfaction Survey
13%
24%
63% ”Not Engaged”
Employees
”Actively Disengaged”
Employees
87% of employees “are
emotionally disconnected
from their workplaces and
less likely to be
productive”
Source: Gallup, 2011-2012

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Dual Aims of a Suggestion System
Engaged
Employees
Promote Organizational
Growth
Improved QCD
Performance
Improved Morale
Promote Personal
Growth

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What is a Suggestion System?
• A formalized mechanism which
encourages employees to
contribute constructive ideas for
improving the organization in
which they work
• The overall aim is to gather,
analyze and implement ideas in
order to create results that have
a positive impact on the
business and/or deliver new
value to customers

7. © Operational Excellence Consulting. All rights reserved. 7
Benefits of a Suggestion System
• Improves one’s own work and
the working environment
• Engages and empowers
employees
• Creates ownership and trust
• Builds teamwork
• Enhances communication
between employees and
management

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A Culture Change…
Complaining
Workforce
Thinking
Workforce

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Two Approaches to Suggestion Systems
• Bottom up approach
 Let us improve the way we work
 Continuous improvement through
implemented proposals
 High participation
• Top down approach
 Cash for your ideas
 Innovative, big ideas
 Low participation

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Quantity of Ideas
“The only way to have
a good idea is to have
a lot of ideas.”
~ Winston Churchill

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Push versus Pull Suggestion Systems
The Push Method
Starting from the present
situation, we eliminate
inconveniences and
irregularities one by one,
making continuous
improvement one step at
a time.
Present
level
The new
target, the
ideal
situation
The Pull Method
We establish a target and
then discover what we
need to do to attain it.

12. © Operational Excellence Consulting. All rights reserved. 12
The Suggestions Cycle
Encouraging
People to
Participate
Improvement
Proposals
Review,
Evaluation &
Guidance
Awards &
Recognition
Source: Kaizen Teian 1 - Developing
Systems for Continuous
Improvement Through Employee
Suggestions

13. © Operational Excellence Consulting. All rights reserved. 13
Scope of Suggestions
• Acceptable suggestions
 Improvement in one’s own work and
the working environment
 Savings in energy, labor, materials
and other resources
 Improvement of processes/practices
 Improvement on tools, jigs and
equipment
 Improvement in safety

14. © Operational Excellence Consulting. All rights reserved. 14
Scope of Suggestions
• Matters not regarded as
suggestions (out of scope)
 Company policy
 Compensation and benefits
 Disputes or grievances
 Mere criticisms or complaints
lacking constructive reasoning
 Jobs carried out under
supervisor’s specific instructions

15. © Operational Excellence Consulting. All rights reserved. 15
Who Can Submit Suggestions?
• Individual
 Staff
 Manager
• Group
 People from a department or
section
 Problem solving team

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Goals of a Suggestion System
Tangible & Intangible Results
Development & Activation of the
Organizational Structure
Improvement of Performance
on the Job (OJT)
Effects
Participation
Development
of Skills
1
3
2
Source: Kaizen Teian 1 - Developing Systems for Continuous Improvement Through Employee Suggestions

17. © Operational Excellence Consulting. All rights reserved. 17
Two trends and two methods for creating
added value
Source: Kaizen Teian 1
Creating
Profit
Mainly creative ideas
helping to develop sales
Mainly creative ideas
helping to improve
productivity and administration
Improving image by improving service
Opening markets and developing business
Continuous
Improvement
Keeping costs down
Efficiency and rationalization
eliminating poor quality
Cost
Creating
Added Value
Major
Innovation

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Link Between Mechanism & Strategy
 System
 Organization
 Regulations
 Awards system
 Evaluation standards
 Proposal forms
Proposal
Activity
 Education and training
 Campaigns
 Promotional activities
 Encouragement
 Guidance and assistance
Mechanism
(“Hardware”)
Strategy
(“Software”)

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The Suggestion Box is Obsolete
1. Employees can
come forward with
proposals
2. It is alright if
employees make
proposals
3. It is alright if
employees don’t
make proposals
Suggestion Box
A passive suggestion box is a lazy system.

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Walking Suggestion Boxes
• A proactive system to
solicit ideas from
employees
• Managers may write
proposals on behalf of
employees
Let’s think of
ideas to
improve our
work methods!

21. © Operational Excellence Consulting. All rights reserved. 21
Planning a Suggestion System
• Form a Suggestion Committee
 Get together a small group of people
from different functions
 Integrate your suggestion system
into existing in-company productivity
initiatives, e.g. Quality Circles

22. © Operational Excellence Consulting. All rights reserved. 22
Promoting the Suggestion System
• Launch an “Ideas Day”
 Speech by CEO or senior executive
 Announce tangible/intangible results
achieved
 Present awards to individuals,
groups and departments
 Share success stories
 Talks by external speakers on topics
related to suggestions
 Provide refreshments to staff and
guests

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Roles & Responsibilities
Three key roles:
• Suggestion System Committee
• Department Representatives
• Suggestions Office/Secretariat

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Typical Suggestion Flow
Participant writes idea on
form
Participant submits form to
Department
Representative
Department
Representative submits
form to
Section/Department head
for comments & approval
Submit form to Suggestion
Committee for evaluation,
feedback and
implementation

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Old-style Evaluation System
Evaluation
Criteria
Scale of Criteria / Scores
Effectiveness
(50%)
Extremely
effective
Fairly effective
Somewhat
effective
Minimally effective
50 ~ 36 35 ~ 21 20 ~ 11 10 ~ 5 ~ 0
Applicability
(10%)
Immediately
applicable
Preparation
needed
Consideration
needed
Further
reconsideration
needed for
potential future
application
10 ~ 9 8 ~ 6 5 ~ 4 3 ~ 0
Originality
(20%)
Highly original /
Excellent idea
Fairly original /
Very good idea
Partially borrowed
idea but good
Unoriginal /
Shallow idea
20 ~ 16 15 ~ 11 10 ~ 6 5 ~ 3 ~ 0
Effort
(20%)
Maximum effort
Considerable
effort
Small effort Minimal effort
20 ~ 16 15 ~ 11 10 ~ 6 5 ~ 3 ~ 0
Table of Criteria for Evaluating General Suggestions

26. © Operational Excellence Consulting. All rights reserved. 26
Three Dimensions of Evaluation
Idea development
Effect
Kaizen
3 Levels:
• Level 1 – Observation and
perception (pointing out problems
and making them public)
• Level 2 – Original ideas (making
proposals for improvement)
• Level 3 – Implemented proposals
(proposals have been
implemented and an effect has
been achieved)
= not bad, so-
so
= good
= very good
3 Grades of Quality

27. © Operational Excellence Consulting. All rights reserved. 27
Quick Evaluation Chart
So-so Good Very Good
Effect of
implementation
¥200 ¥500
¥1,000
or more
Idea development
Participation
Bonus
¥200 ¥500
Perceptiveness
(problem
identification)
Rejected
Participation
Award
¥200
Level
Dimension

28. © Operational Excellence Consulting. All rights reserved. 28
Improvement Proposal Form
Employee’s Self-evaluation
(Mark only one award amount as
your bonus payment.)
Decision of first reviewer
(¥1,000 or less)
(Mark only one award amount.)
Decision of committee
Guidance and response of the first reviewer
(or written opinion of the committee)
Title of Proposal Date Name Department
Always include an explanatory diagram or
illustration. (Append extra sheets if necessary.)
Explain clearly and concisely the main
points of the proposal.
Effect
☐ Already implemented
☐ Not yet implemented (anticipated effect)
Countermeasure (idea) Problem areas (identification)
First reviewer (initials)

29. © Operational Excellence Consulting. All rights reserved. 29
Guidelines for Evaluating Suggestions
• As a general rule,
suggestions should be
evaluated and returned within
one month of submission
• Priority for evaluation should
be given to suggestions
received from other business
units/departments

30. © Operational Excellence Consulting. All rights reserved. 30
Example: Best Suggestion Awards
• Best suggestion of the quarter award
• Best suggestion of the year award
• Most innovative suggestion award
• Highest number of suggestions of the year award

31. © Operational Excellence Consulting. All rights reserved. 31
Techniques for Developing Creativity
1. Listing Faults
2. Listing Wishes
3. Listing Characteristics
4. The Gordon Method
5. The Checklist Method

32. © Operational Excellence Consulting. All rights reserved. 32
Techniques for Developing Creativity:
Assessment of Ideas
• Categorize the various ideas
derived from brainstorming
into one of the 4 boxes
• A - Put into practice
immediately
• B - Make maximum efforts to
put the idea into practice
• C - Reconsider applicability
(idea may be abandoned)
• D - Abandon the idea (idea is
worthless)
C
A
D
B
High Low
APPLICABILITY
High
Low
EFFICIENCY

33. © Operational Excellence Consulting. All rights reserved. 33
How to Formulate a Good Quality Suggestion
Locate a Problem
Investigate the Problem
Examine the Problem
Devise the Solution(s)
Consider its Feasibility
Fill out the Suggestion
Form
Submit the Suggestion
Are there any irrationalities?
(Find out exactly where)
What are the circumstances?
(Get the facts)
Why doesn’t it work?
(Find out the reason)
How could it be done more easily, quickly,
cheaply or accurately? (Think up ideas)
Is it feasible? Would it be effective?
(Work out the best method)
Decide on a final written version
(Explain the idea fully and clearly)
Put into practice all that is within your
capacity

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About
Operational
Excellence Consulting

35. © Operational Excellence Consulting. All rights reserved. 35
About Operational Excellence
Consulting
• Operational Excellence Consulting is a management
training and consulting firm that assists organizations in
improving business performance and effectiveness.
• The firm’s mission is to create business value for
organizations through innovative operational excellence
management training and consulting solutions.
• OEC takes a unique “beyond the tools” approach to enable
clients develop internal capabilities and cultural
transformation to achieve sustainable world-class excellence
and competitive advantage. For more information, please visit
www.oeconsulting.com.sg

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To download this presentation,
please visit us at:
www.oeconsulting.com.sg
END OF PARTIAL PREVIEW