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© Operational Excellence Consulting. All rights reserved.
This presentation is a collection of PowerPoint diagrams and
templates used to convey 40 different total quality management
frameworks/models.
Total Quality Management
Frameworks
Diagrams & Templates of Total Quality
Management Frameworks & Models
© Operational Excellence Consulting. All rights reserved. 2
Contents (1 of 2)
1. Deming’s 14 Points for Management
2. Juran’s 10 Steps to Quality Improvement
3. Crosby’s Four Absolutes of Quality
4. Ishikawa’s Six Principles for Quality Transformation
5. Toyota’s 14 Management Principles (“The Toyota Way”)
6. Baldrige Excellence Framework
7. EFQM Excellence Model
8. Australian Business Excellence Framework
9. Canadian Framework for Business Excellence
10. Deming Prize Framework
11. Singapore Business Excellence Framework
12. Total Quality Management Model (Oakland)
13. ISO 9001 Quality Management Model
14. Kano Model
15. Balanced Scorecard
16. Hoshin Kanri Strategy Deployment
17. Xerox Benchmarking Model
18. Deming Cycle (PDCA Cycle)
19. PDCA Problem Solving Process
20. 8D (Eight Disciplines) Problem Solving Process
NOTE: This is a PARTIAL PREVIEW. To
download the complete presentation, please
visit: http://www.oeconsulting.com.sg
© Operational Excellence Consulting. All rights reserved. 3
Contents (2 of 2)
21. Cause & Effect Diagram
22. Six Sigma
23. Cost of Quality Model
24. 1-10-100 Rule
25. Mistake Proofing Process
26. The Seven QC Tools
27. Process Model
28. Business Process Reengineering (BPR)
29. APQC Process Classification Framework (PCF)
30. Customer Journey Mapping
31. RATER Model for Service Quality
32. The Toyota Production System
33. Five Principles of Lean
34. Eight Types of Waste
35. Six Steps of Kaizen
36. House of Gemba
37. Gemba Framework
38. 5S Principles
39. Covey’s Seven Habits Model
40. Kotter’s Eight Phases of Change
© Operational Excellence Consulting. All rights reserved. 4
Deming’s 14 Points for Management
1. Create constancy of purpose toward the improvement of products
and services in order to stay competitive, stay in business and
provide jobs
2. Adopt the new philosophy
3. Stop depending on inspection to achieve quality
4. Stop awarding contracts on the basis of low bids
5. Improve continuously and forever the system of production and
service, to improve quality and productivity, and thus constantly
reduce costs
6. Institute training on the job
7. Institute leadership
Deming’s 14 Points
Source: W. E. Deming
© Operational Excellence Consulting. All rights reserved. 5
The Juran Trilogy is an improvement cycle that is meant to reduce the
cost of poor quality by planning quality into the product/process
Quality
ImprovementTime
Original Zone of
Quality Control
New Zone of
Quality Control
CostofPoorQuality
Sporadic Spike
Chronic Waste
Quality Planning Quality Control (During Operations)
Lessons Learned
Juran’s Trilogy
Source: Joseph Juran
© Operational Excellence Consulting. All rights reserved. 6
Juran’s 10 Steps to Quality Improvement
1. Build awareness of both the need for improvement and opportunities for
improvement
2. Set goals for improvement
3. Organize to meet goals that have been set
4. Provide training
5. Implement projects aimed at solving problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep score
10. Maintain momentum by building improvement into company’s regular systems
Juran’s 10 Steps
Source: Joseph Juran
© Operational Excellence Consulting. All rights reserved. 7
1. Quality means conformance to requirements
2. Quality comes from prevention
3. The Quality performance standard is zero defects
4. The Quality measurement is the price of non-conformance
Crosby’s Four Absolutes of Quality Management are based on the
principle of ‘Doing It Right The First Time’
Crosby’s Four Absolutes of Quality
Source: Philip Crosby
© Operational Excellence Consulting. All rights reserved. 8
Ishikawa’s Six Principles for Quality Transformation
1. Quality first – not short-term profit first.
2. Consumer orientation – not producer orientation. Think from the
standpoint of the other party.
3. The next process is your customer – breaking down the barrier of
sectionalism.
4. Using facts and data to make presentations – utilization of statistical
methods.
5. Respect for humanity as a management philosophy – full participatory
management.
6. Cross-function management.
Ishikawa’s Principles for Quality Transformation
Source: Kaoru Ishikawa
© Operational Excellence Consulting. All rights reserved. 9
Toyota’s 14 Management Principles (“The Toyota Way”)
1. Base your management decisions on a long-term philosophy, even at the
expense of short-term financial goals.
2. Create a continuous process flow to bring problems to the surface.
3. Use ‘pull’ systems to avoid overproduction.
4. Level out the workload (work like the tortoise, not the hare).
5. Build a culture of stopping to fix problems, to get quality right the first
time.
6. Standardized tasks and processes are the foundation for continuous
improvement and employee empowerment.
7. Use visual controls so no problems are hidden.
8. Use only reliable, thoroughly tested technology that serves your people
and process.
Toyota’s 14 Management Principles
Source: John Liker, The Toyota Way
© Operational Excellence Consulting. All rights reserved. 10
The Baldrige framework takes a holistic, systems approach in viewing an
organization’s performance management system across seven areas
Baldrige Excellence Framework
Leadership
Customers
Strategy
Operations
Workforce
Integration RESULTS
Measurement, Analysis & Knowledge Management
Organizational Profile
Source: National Institute of Standards & Technology (NIST)
© Operational Excellence Consulting. All rights reserved. 11
Australian Business Excellence Framework (ABEF)
ABE Framework
Leadership
People
Strategy &
Planning
Results &
Sustainable
Performance
Process
Management,
Improvement
& Innovation
Customers &
other
Stakeholders
© Operational Excellence Consulting. All rights reserved. 12
The Canadian Framework for Business Excellence is used by numerous
organizations as a management model for organizational excellence
Canadian Framework for Business Excellence
Source: Excellence Canada
LEADERSHIP PLANNING
CUSTOMER
FOCUS
PEOPLE
FOCUS
PROCESS
MANAGEMENT
SUPPLIER/
PARTNER FOCUS
OVERALL BUSINESS PERFORMANCE
PRINCIPLES FOR EXCELLENCE
© Operational Excellence Consulting. All rights reserved. 13
The Deming Prize award criteria lays the framework for organizations
to achieve excellence in total quality management
Source: Assessing Business Excellence, Porter & Tanner
The Deming Prize Framework
2. Organization
3. Information
4. Standardization
5. Human
resource
development and
utilization
1. Policies
10. Future plans
6. Quality assurance
activities
7. Maintenance/
Control activities
8. Improvement
activities
9. Effects
Direction ResultsImplementationSupport
© Operational Excellence Consulting. All rights reserved. 14
The Singapore Business Excellence Framework provides
organizations with a roadmap for excellence and helps them
understand how to improve their performance
I N N O V A T I O N
L E A R N I N G
LEADERSHIP
RESULTS
PLANNING
INFORMATION
PEOPLE
PROCESSES
CUSTOMERS
DRIVER RESULTSYSTEM
Singapore Business Excellence Framework
Source: SPRING Singapore
© Operational Excellence Consulting. All rights reserved. 15
Total Quality Management (TQM) Model
Source: John Oakland
TQM Model
Culture
Systems Tools
Teams
Process
Customer-
Supplier
© Operational Excellence Consulting. All rights reserved. 16
ISO 9001:2015 quality management system establishes proven
processes that meet the requirements of interested parties
ISO 9001:2015 Quality Management Model (TEMPLATE)
Organization and
its context (4)
Customer
Requirements
Customer
Satisfaction
Products
and services
Results of
the QMS
Needs and expectations
of relevant interested
parties (4)
Leadership
(5)
Performance
evaluation
(9)
Support &
Operation
(7,8)
Planning
(6)
Improvement
(10)
Plan Do
CheckAct
© Operational Excellence Consulting. All rights reserved. 17
The Kano Model can help any team or organization get a better
understanding of Customer Requirements and their impact on
Customer Satisfaction
Kano Model
Source: Noriaki Kano
Satisfaction
Requirement
Unfulfilled
Requirement
Fulfilled
Dissatisfaction
Performance
(Satisfier)
Delighters
Basic
(Dissatisfier)
© Operational Excellence Consulting. All rights reserved. 18
The Balanced Scorecard focuses the entire organization on financial
and non-financial outcomes
FINANCIAL
BUSINESS PROCESSES
Vision
and
Strategy
To succeed financially, how
should we appear to our
shareholders?
LEARNING & GROWTH
CUSTOMERS
To achieve our vision, how will
we sustain our ability to change
and improve?
To achieve our vision, how
should we appear to our
customers?
To satisfy our shareholders and
customers, what business
processes must we excel at?
Source: Kaplan & Norton
The Balanced Scorecard
© Operational Excellence Consulting. All rights reserved. 19
Hoshin Kanri Strategy Deployment Process focuses and aligns the
organization to the core objectives of the business
Source: Yoji Akao
Hoshin Kanri
Senior
Management
Implementation
Teams
Middle
Management
 Vision
 Objectives
 Strategy
 Resources
 Action
 Schedule
Measures
Hoshin
Plan
© Operational Excellence Consulting. All rights reserved. 20
1. IDENTIFY WHAT IS TO BE BENCHMARKED
2. IDENTIFY COMPARATIVE COMPANIES
3. DETERMINE DATA COLLECTION METHOD AND COLLECT DATA
4. DETERMINE CURRENT PERFORMANCE “GAP”
5. PROJECT FUTURE PEROFMANCE LEVELS
6. COMMUNICATE BENCHMARK FINDINGS AND GAIN ACCEPTANCE
7. ESTABLISH FUNCTIONAL GOALS
8. DEVELOP ACTION PLANS
9. IMPLEMENT SPECIFIC ACTIONS AND MONITOR PROGRESS
10. RECALIBRATE BENCHMARKS
 LEADERSHIP POSITION ATTAINED
 PRACTICES FULLY INTEGRATED INTO PROCESSES
Phase 1:
PLANNING
Phase 2:
ANALYSIS
Phase 3:
INTEGRATION
Phase 4:
ACTION
MATURITY
Xerox Benchmarking Model helps to identify best practices which can
be adapted to improve business competitiveness
Source: Robert C. Camp
Xerox Benchmarking Model
© Operational Excellence Consulting. All rights reserved. 21
The Deming or Plan-Do-Check-Act cycle defines a simple and
systematic approach to process improvement
ACT
CHECK
DO
PLAN
Establish objectives
and processes
necessary to deliver
results in accordance
with customer
requirements
Monitor, measure,
analyze and report
results
Improve process
performance
Implement
the processes
Source: Adapted from W. E. Deming
Deming Cycle (PDCA)
© Operational Excellence Consulting. All rights reserved. 22
The PDCA problem solving process is a generic approach to process
improvement and applies to all types of organizations
Select the Theme
Plan the Schedule
Grasp the Present Situation
Establish the Target
Analyze the Cause & Identify Corrective Action
Implement Corrective Action
Evaluate the Result
Standardize & Follow-up
PLAN
ACT
CHECK
DO
1
2
3
4
5
6
7
8
PDCA Problem Solving Process
© Operational Excellence Consulting. All rights reserved. 23
The six sources of variability in a system are used to understand root
causes (Manufacturing)
Manpower
Methods
Machines
(or Equipment)
Measurement
Output
Materials
(or Information)
Environment
Causes Effect
Source: Kaoru Ishikawa
Cause & Effect Diagram (Manufacturing)
© Operational Excellence Consulting. All rights reserved. 24
Six Sigma DMAIC is a data-driven improvement cycle used for
improving, optimizing and stabilizing business processes
Six Sigma
DMAIC
Roadmap
Improve
Measure
Analyze
Define
Control
Define the problem
or opportunity
Measure the current
performance and
capability
Analyse to identify
root causes
Improve by
implementing potential
solutions
Control by
standardizing solution
and monitoring
performance
Six Sigma DMAIC Model
© Operational Excellence Consulting. All rights reserved. 25
Cost of quality iceberg
Rework
Defects
Re-testing
Reviews
System Downtime
Liquidated Damages
Product Failure in the Field Rush Delivery Costs
Retraining Late Charges Customer Dissatisfaction
Turf Battles Low Morale Excess Inventory
Unwanted Turnover Idle time Absenteeism Confusion
Miscommunications Grievances Poor Teamwork
Customer
Complaints
Overtime
Billing Errors
Visible
Less
Visible
Cost of Quality Iceberg
© Operational Excellence Consulting. All rights reserved. 26
The 7 QC tools are used to analyze the process, identify major
problems, control fluctuations of quality, and provide solutions to
avoid defects
QC Tool Objective
Stratification
To separate data gathered from a variety of sources so that patterns can
be seen.
Check Sheet To collect and analyze data using a structured form.
Control Chart To see if a process is stable.
Pareto Diagram To pick up the important few problems from the trivial many.
Cause and Effect
Diagram
To recognize the factors (causes) which are influencing the problem.
Histogram To see the distribution pattern compared against standard values.
Scatter Diagram To see the relationship between two sets of data.
© Operational Excellence Consulting. All rights reserved. 27
A Process Model
Process
Inputs Outputs
• Input Requirements
• Voice of Process
• Output Requirements
• Voice of Customer
Plan
DoCheck
Act
Supplier Customer
Process Model
© Operational Excellence Consulting. All rights reserved. 28
Business Process Reengineering (BPR) is the fundamental
reconsideration and radical redesign of organizational processes
BPR Model
1.
Determine Scope
& Goal
3.
Install
Management
4.
Implement &
Integrate
Indicator for need:
 Conflicts
 Meetings
 Non-structure
communication
 Strategic dialog
Key elements:
 Focus on output
requirements
 Critical success
factors
 Efficiency
Key elements:
 Define
management tools
 Performance
measurement
 Learning
 Compensation
Key elements:
 Install
management
 Manage change
management
2.
Redesign Process
Structure
Source: Hammer & Campy, 1993
© Operational Excellence Consulting. All rights reserved. 29
The RATER model allows customer service experiences to be
explored and assessed quantitatively
Source: “SERVQUAL” by Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry
DESCRIPTION
 The ability to perform the promised service dependably and
accurately
 The knowledge and courtesy of employees and their ability to
convey trust and confidence
 The appearance of physical facilities, equipment, personnel and
communication materials
 The provision of caring, individualized attention to customers
 The willingness to help customers and to provide prompt
service
Reliability
Assurance
Tangibles
Empathy
Responsiveness
RATER Model
© Operational Excellence Consulting. All rights reserved. 30
The House of TPS describes a holistic approach to improving speed
and quality
Source: Adapted from Toyota Production System
House of TPS
Stability
Heijunka Standardized Work Kaizen
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
Goals:
highest quality,
lowest cost, shortest lead times
Involvement
Stability
Standardization
Just-In-Time
Jidoka
Involvement
1
2
3
4
5
1
2
3 4
5
© Operational Excellence Consulting. All rights reserved. 31
Eight types of waste exist in our processes which can be eliminated
to increase customer value
Over-production
Producing more than what
the customer needs
Inventory
Building and storing extra
services/products the
customer has not ordered
Transportation
Moving from one
place to another
Defects
Reprocessing, or
correcting work
Over-processing
Adding excess value
when the customer does
not require it
Motion
Extra physical/mental
motion that doesn’t add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Employees waiting for
another process or
information
Waste
Eight Types of Waste
Source: Adapted from Taiichi Ohno
© Operational Excellence Consulting. All rights reserved. 32
5S principles define a visual and disciplined approach to workplace
organization and improvement
5S Principles
Sort
Set In OrderShine
Standardize
Sustain
© Operational Excellence Consulting. All rights reserved. 33
Kotter’s Eight Phases of Change provides a roadmap for advancing a
culture of performance excellence
Source: John Kotter
Need for
Change
Change
Behavior
Change
Direction
Change
Sustainability
1. Establish a
Sense of
Urgency
2. Form a
Powerful
Guiding
Coalition
3. Create a
Vision
4.
Communicate
the Vision
5. Empower
Others to Act
on the Vision
6. Plan for and
Create Short
Term Wins
7. Consolidate
Improvements
& Produce
More Change
8.
Institutionalize
New
Approaches
Committed
Leadership
Kotter's Change Model
© Operational Excellence Consulting. All rights reserved.
About Operational Excellence
Consulting
© 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
© Operational Excellence Consulting. All rights reserved.
To download this presentation,
please visit us at:
www.oeconsulting.com.sg
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Total Quality Management (TQM) Frameworks by Operational Excellence Consulting

  • 1. © Operational Excellence Consulting. All rights reserved. This presentation is a collection of PowerPoint diagrams and templates used to convey 40 different total quality management frameworks/models. Total Quality Management Frameworks Diagrams & Templates of Total Quality Management Frameworks & Models
  • 2. © Operational Excellence Consulting. All rights reserved. 2 Contents (1 of 2) 1. Deming’s 14 Points for Management 2. Juran’s 10 Steps to Quality Improvement 3. Crosby’s Four Absolutes of Quality 4. Ishikawa’s Six Principles for Quality Transformation 5. Toyota’s 14 Management Principles (“The Toyota Way”) 6. Baldrige Excellence Framework 7. EFQM Excellence Model 8. Australian Business Excellence Framework 9. Canadian Framework for Business Excellence 10. Deming Prize Framework 11. Singapore Business Excellence Framework 12. Total Quality Management Model (Oakland) 13. ISO 9001 Quality Management Model 14. Kano Model 15. Balanced Scorecard 16. Hoshin Kanri Strategy Deployment 17. Xerox Benchmarking Model 18. Deming Cycle (PDCA Cycle) 19. PDCA Problem Solving Process 20. 8D (Eight Disciplines) Problem Solving Process NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: http://www.oeconsulting.com.sg
  • 3. © Operational Excellence Consulting. All rights reserved. 3 Contents (2 of 2) 21. Cause & Effect Diagram 22. Six Sigma 23. Cost of Quality Model 24. 1-10-100 Rule 25. Mistake Proofing Process 26. The Seven QC Tools 27. Process Model 28. Business Process Reengineering (BPR) 29. APQC Process Classification Framework (PCF) 30. Customer Journey Mapping 31. RATER Model for Service Quality 32. The Toyota Production System 33. Five Principles of Lean 34. Eight Types of Waste 35. Six Steps of Kaizen 36. House of Gemba 37. Gemba Framework 38. 5S Principles 39. Covey’s Seven Habits Model 40. Kotter’s Eight Phases of Change
  • 4. © Operational Excellence Consulting. All rights reserved. 4 Deming’s 14 Points for Management 1. Create constancy of purpose toward the improvement of products and services in order to stay competitive, stay in business and provide jobs 2. Adopt the new philosophy 3. Stop depending on inspection to achieve quality 4. Stop awarding contracts on the basis of low bids 5. Improve continuously and forever the system of production and service, to improve quality and productivity, and thus constantly reduce costs 6. Institute training on the job 7. Institute leadership Deming’s 14 Points Source: W. E. Deming
  • 5. © Operational Excellence Consulting. All rights reserved. 5 The Juran Trilogy is an improvement cycle that is meant to reduce the cost of poor quality by planning quality into the product/process Quality ImprovementTime Original Zone of Quality Control New Zone of Quality Control CostofPoorQuality Sporadic Spike Chronic Waste Quality Planning Quality Control (During Operations) Lessons Learned Juran’s Trilogy Source: Joseph Juran
  • 6. © Operational Excellence Consulting. All rights reserved. 6 Juran’s 10 Steps to Quality Improvement 1. Build awareness of both the need for improvement and opportunities for improvement 2. Set goals for improvement 3. Organize to meet goals that have been set 4. Provide training 5. Implement projects aimed at solving problems 6. Report progress 7. Give recognition 8. Communicate results 9. Keep score 10. Maintain momentum by building improvement into company’s regular systems Juran’s 10 Steps Source: Joseph Juran
  • 7. © Operational Excellence Consulting. All rights reserved. 7 1. Quality means conformance to requirements 2. Quality comes from prevention 3. The Quality performance standard is zero defects 4. The Quality measurement is the price of non-conformance Crosby’s Four Absolutes of Quality Management are based on the principle of ‘Doing It Right The First Time’ Crosby’s Four Absolutes of Quality Source: Philip Crosby
  • 8. © Operational Excellence Consulting. All rights reserved. 8 Ishikawa’s Six Principles for Quality Transformation 1. Quality first – not short-term profit first. 2. Consumer orientation – not producer orientation. Think from the standpoint of the other party. 3. The next process is your customer – breaking down the barrier of sectionalism. 4. Using facts and data to make presentations – utilization of statistical methods. 5. Respect for humanity as a management philosophy – full participatory management. 6. Cross-function management. Ishikawa’s Principles for Quality Transformation Source: Kaoru Ishikawa
  • 9. © Operational Excellence Consulting. All rights reserved. 9 Toyota’s 14 Management Principles (“The Toyota Way”) 1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. 2. Create a continuous process flow to bring problems to the surface. 3. Use ‘pull’ systems to avoid overproduction. 4. Level out the workload (work like the tortoise, not the hare). 5. Build a culture of stopping to fix problems, to get quality right the first time. 6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment. 7. Use visual controls so no problems are hidden. 8. Use only reliable, thoroughly tested technology that serves your people and process. Toyota’s 14 Management Principles Source: John Liker, The Toyota Way
  • 10. © Operational Excellence Consulting. All rights reserved. 10 The Baldrige framework takes a holistic, systems approach in viewing an organization’s performance management system across seven areas Baldrige Excellence Framework Leadership Customers Strategy Operations Workforce Integration RESULTS Measurement, Analysis & Knowledge Management Organizational Profile Source: National Institute of Standards & Technology (NIST)
  • 11. © Operational Excellence Consulting. All rights reserved. 11 Australian Business Excellence Framework (ABEF) ABE Framework Leadership People Strategy & Planning Results & Sustainable Performance Process Management, Improvement & Innovation Customers & other Stakeholders
  • 12. © Operational Excellence Consulting. All rights reserved. 12 The Canadian Framework for Business Excellence is used by numerous organizations as a management model for organizational excellence Canadian Framework for Business Excellence Source: Excellence Canada LEADERSHIP PLANNING CUSTOMER FOCUS PEOPLE FOCUS PROCESS MANAGEMENT SUPPLIER/ PARTNER FOCUS OVERALL BUSINESS PERFORMANCE PRINCIPLES FOR EXCELLENCE
  • 13. © Operational Excellence Consulting. All rights reserved. 13 The Deming Prize award criteria lays the framework for organizations to achieve excellence in total quality management Source: Assessing Business Excellence, Porter & Tanner The Deming Prize Framework 2. Organization 3. Information 4. Standardization 5. Human resource development and utilization 1. Policies 10. Future plans 6. Quality assurance activities 7. Maintenance/ Control activities 8. Improvement activities 9. Effects Direction ResultsImplementationSupport
  • 14. © Operational Excellence Consulting. All rights reserved. 14 The Singapore Business Excellence Framework provides organizations with a roadmap for excellence and helps them understand how to improve their performance I N N O V A T I O N L E A R N I N G LEADERSHIP RESULTS PLANNING INFORMATION PEOPLE PROCESSES CUSTOMERS DRIVER RESULTSYSTEM Singapore Business Excellence Framework Source: SPRING Singapore
  • 15. © Operational Excellence Consulting. All rights reserved. 15 Total Quality Management (TQM) Model Source: John Oakland TQM Model Culture Systems Tools Teams Process Customer- Supplier
  • 16. © Operational Excellence Consulting. All rights reserved. 16 ISO 9001:2015 quality management system establishes proven processes that meet the requirements of interested parties ISO 9001:2015 Quality Management Model (TEMPLATE) Organization and its context (4) Customer Requirements Customer Satisfaction Products and services Results of the QMS Needs and expectations of relevant interested parties (4) Leadership (5) Performance evaluation (9) Support & Operation (7,8) Planning (6) Improvement (10) Plan Do CheckAct
  • 17. © Operational Excellence Consulting. All rights reserved. 17 The Kano Model can help any team or organization get a better understanding of Customer Requirements and their impact on Customer Satisfaction Kano Model Source: Noriaki Kano Satisfaction Requirement Unfulfilled Requirement Fulfilled Dissatisfaction Performance (Satisfier) Delighters Basic (Dissatisfier)
  • 18. © Operational Excellence Consulting. All rights reserved. 18 The Balanced Scorecard focuses the entire organization on financial and non-financial outcomes FINANCIAL BUSINESS PROCESSES Vision and Strategy To succeed financially, how should we appear to our shareholders? LEARNING & GROWTH CUSTOMERS To achieve our vision, how will we sustain our ability to change and improve? To achieve our vision, how should we appear to our customers? To satisfy our shareholders and customers, what business processes must we excel at? Source: Kaplan & Norton The Balanced Scorecard
  • 19. © Operational Excellence Consulting. All rights reserved. 19 Hoshin Kanri Strategy Deployment Process focuses and aligns the organization to the core objectives of the business Source: Yoji Akao Hoshin Kanri Senior Management Implementation Teams Middle Management  Vision  Objectives  Strategy  Resources  Action  Schedule Measures Hoshin Plan
  • 20. © Operational Excellence Consulting. All rights reserved. 20 1. IDENTIFY WHAT IS TO BE BENCHMARKED 2. IDENTIFY COMPARATIVE COMPANIES 3. DETERMINE DATA COLLECTION METHOD AND COLLECT DATA 4. DETERMINE CURRENT PERFORMANCE “GAP” 5. PROJECT FUTURE PEROFMANCE LEVELS 6. COMMUNICATE BENCHMARK FINDINGS AND GAIN ACCEPTANCE 7. ESTABLISH FUNCTIONAL GOALS 8. DEVELOP ACTION PLANS 9. IMPLEMENT SPECIFIC ACTIONS AND MONITOR PROGRESS 10. RECALIBRATE BENCHMARKS  LEADERSHIP POSITION ATTAINED  PRACTICES FULLY INTEGRATED INTO PROCESSES Phase 1: PLANNING Phase 2: ANALYSIS Phase 3: INTEGRATION Phase 4: ACTION MATURITY Xerox Benchmarking Model helps to identify best practices which can be adapted to improve business competitiveness Source: Robert C. Camp Xerox Benchmarking Model
  • 21. © Operational Excellence Consulting. All rights reserved. 21 The Deming or Plan-Do-Check-Act cycle defines a simple and systematic approach to process improvement ACT CHECK DO PLAN Establish objectives and processes necessary to deliver results in accordance with customer requirements Monitor, measure, analyze and report results Improve process performance Implement the processes Source: Adapted from W. E. Deming Deming Cycle (PDCA)
  • 22. © Operational Excellence Consulting. All rights reserved. 22 The PDCA problem solving process is a generic approach to process improvement and applies to all types of organizations Select the Theme Plan the Schedule Grasp the Present Situation Establish the Target Analyze the Cause & Identify Corrective Action Implement Corrective Action Evaluate the Result Standardize & Follow-up PLAN ACT CHECK DO 1 2 3 4 5 6 7 8 PDCA Problem Solving Process
  • 23. © Operational Excellence Consulting. All rights reserved. 23 The six sources of variability in a system are used to understand root causes (Manufacturing) Manpower Methods Machines (or Equipment) Measurement Output Materials (or Information) Environment Causes Effect Source: Kaoru Ishikawa Cause & Effect Diagram (Manufacturing)
  • 24. © Operational Excellence Consulting. All rights reserved. 24 Six Sigma DMAIC is a data-driven improvement cycle used for improving, optimizing and stabilizing business processes Six Sigma DMAIC Roadmap Improve Measure Analyze Define Control Define the problem or opportunity Measure the current performance and capability Analyse to identify root causes Improve by implementing potential solutions Control by standardizing solution and monitoring performance Six Sigma DMAIC Model
  • 25. © Operational Excellence Consulting. All rights reserved. 25 Cost of quality iceberg Rework Defects Re-testing Reviews System Downtime Liquidated Damages Product Failure in the Field Rush Delivery Costs Retraining Late Charges Customer Dissatisfaction Turf Battles Low Morale Excess Inventory Unwanted Turnover Idle time Absenteeism Confusion Miscommunications Grievances Poor Teamwork Customer Complaints Overtime Billing Errors Visible Less Visible Cost of Quality Iceberg
  • 26. © Operational Excellence Consulting. All rights reserved. 26 The 7 QC tools are used to analyze the process, identify major problems, control fluctuations of quality, and provide solutions to avoid defects QC Tool Objective Stratification To separate data gathered from a variety of sources so that patterns can be seen. Check Sheet To collect and analyze data using a structured form. Control Chart To see if a process is stable. Pareto Diagram To pick up the important few problems from the trivial many. Cause and Effect Diagram To recognize the factors (causes) which are influencing the problem. Histogram To see the distribution pattern compared against standard values. Scatter Diagram To see the relationship between two sets of data.
  • 27. © Operational Excellence Consulting. All rights reserved. 27 A Process Model Process Inputs Outputs • Input Requirements • Voice of Process • Output Requirements • Voice of Customer Plan DoCheck Act Supplier Customer Process Model
  • 28. © Operational Excellence Consulting. All rights reserved. 28 Business Process Reengineering (BPR) is the fundamental reconsideration and radical redesign of organizational processes BPR Model 1. Determine Scope & Goal 3. Install Management 4. Implement & Integrate Indicator for need:  Conflicts  Meetings  Non-structure communication  Strategic dialog Key elements:  Focus on output requirements  Critical success factors  Efficiency Key elements:  Define management tools  Performance measurement  Learning  Compensation Key elements:  Install management  Manage change management 2. Redesign Process Structure Source: Hammer & Campy, 1993
  • 29. © Operational Excellence Consulting. All rights reserved. 29 The RATER model allows customer service experiences to be explored and assessed quantitatively Source: “SERVQUAL” by Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry DESCRIPTION  The ability to perform the promised service dependably and accurately  The knowledge and courtesy of employees and their ability to convey trust and confidence  The appearance of physical facilities, equipment, personnel and communication materials  The provision of caring, individualized attention to customers  The willingness to help customers and to provide prompt service Reliability Assurance Tangibles Empathy Responsiveness RATER Model
  • 30. © Operational Excellence Consulting. All rights reserved. 30 The House of TPS describes a holistic approach to improving speed and quality Source: Adapted from Toyota Production System House of TPS Stability Heijunka Standardized Work Kaizen Just-In-Time • Continuous flow • Takt time • Pull system • Flexible workforce Jidoka • Separate man & machine work • Abnormality Identification • Poka yoke Goals: highest quality, lowest cost, shortest lead times Involvement Stability Standardization Just-In-Time Jidoka Involvement 1 2 3 4 5 1 2 3 4 5
  • 31. © Operational Excellence Consulting. All rights reserved. 31 Eight types of waste exist in our processes which can be eliminated to increase customer value Over-production Producing more than what the customer needs Inventory Building and storing extra services/products the customer has not ordered Transportation Moving from one place to another Defects Reprocessing, or correcting work Over-processing Adding excess value when the customer does not require it Motion Extra physical/mental motion that doesn’t add value Intellect Not using employees full intellectual contribution Waiting Employees waiting for another process or information Waste Eight Types of Waste Source: Adapted from Taiichi Ohno
  • 32. © Operational Excellence Consulting. All rights reserved. 32 5S principles define a visual and disciplined approach to workplace organization and improvement 5S Principles Sort Set In OrderShine Standardize Sustain
  • 33. © Operational Excellence Consulting. All rights reserved. 33 Kotter’s Eight Phases of Change provides a roadmap for advancing a culture of performance excellence Source: John Kotter Need for Change Change Behavior Change Direction Change Sustainability 1. Establish a Sense of Urgency 2. Form a Powerful Guiding Coalition 3. Create a Vision 4. Communicate the Vision 5. Empower Others to Act on the Vision 6. Plan for and Create Short Term Wins 7. Consolidate Improvements & Produce More Change 8. Institutionalize New Approaches Committed Leadership Kotter's Change Model
  • 34. © Operational Excellence Consulting. All rights reserved. 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
  • 36. © Operational Excellence Consulting. All rights reserved. To download this presentation, please visit us at: www.oeconsulting.com.sg END OF PARTIAL PREVIEW

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