Discussion Points

1 12-Oct-2012Penn State Quality Symposium

Leading in a Competitive Environment: Integrating Statistical

Engineering, Lean, and Quality

Bill RodebaughHoneywell, Inc.


Discussion Points

• Need for Leadership• Multiple and Maximized Objectives• Management Systems and Continuous Improvement Activities• Tools to Lead to the Goal


The Big Issue

• Excellent Summary from Suárez-Barraza, Bou, and Cataldo. 2007• Organizations need to cope with strong competition and a dynamic

market environment with demanding customers• Organizations are required to be innovative…to capitalize on the

knowledge and skills of employees• Work processes need to be managed efficiently and strictly• Three questions assist in understanding the challenges

• How do organizations achieve competitive advantage?• Why do some organizations respond better to environmental

change?• How can organizations be flexible, predictable, innovative, and

efficient?


Competing Priorities

• Corporate Level – Organizations need to cope with strong competition and a dynamic market environment with demanding customers

• Factory Level – Requirement to make the right product at the right time with good cost structure and in keeping with all Environmental and Safety considerations while having an engaged workforce

• Project Level – Complete each project in the required timeframe using the preferred processes…assuming that optimizing the variable of choice will make the overall process better


Competing Priorities

Health, Safety, And Environmental Production Rates

Product Quality &Customer Satisfaction

At Rate, High CpK,

No Incidents


Defining the Journey

• Understanding organizational routines, standards, and non-routines• Organizational routines can be defined as “a repetitive, recognizable

pattern of interdependent action, involving multiple actors” (Feldman, 2003). There is a sense of stability here.

• “Standards are applied to activities that are repetitive in an identical fashion” (Takeyuki, 1995). The business process is where these standards exist….SOP. Follow the SOP meticulously yields results.

• If the business process is variable, then the process difference must be viewed and understood, and specific procedures are activated.

• Non-routine processes has vague input and are difficult to classify, so this is where non-predictable, surprising, and unfamiliar events exist.


Defining the Journey

STANDARDSSOP ROUTINES

5S, ISO,Six Sigma

NON-ROUTINESExperimentationObservation


The Tools – the Standard

• Our Standards• Name our repetitive processes• Understand the way these processes should be done• Develop the standard• Train the standard• Chronicle the standard (SOP)

• We can develop standard plans as well• Business Continuity• Disaster Recovery• Emergency Responses• Any return to standard


The Tools – the Routines

• Our Routines – Systems that Guide Us• Toyota Production System, TPS, for Honeywell, HOS• 5S• Lean / Six Sigma (CI)• Statistical Engineering• ISO• RCA (Back to Standard)• Horizon Planning• Strategy Deployment (X-Matrix)• SWOT


The Tools – the Routines – Where I Am

• Need to do three things• Bring back to Standard – TER / UOR

• Total Event Report / Unusual Occurrence Report, RCA)• Improve from Standard (Short Term) – Statistical Engineering• Improve from Standard (Long Term) – Horizon / X-Matrix / SWOT


TER / UOR

ProcessIssue or Upset

TERWritten

(by multiple peoplemostly supervisors)

0930TER

MeetingReview

Meeting Attendees

Super Gatekeepers

PSM / HES

TOPS Investigation

Actions to the TER board

ResolvedAt

Mtng?

UOR

CompletedReport

UOR / TOPS Review

ActionMgmt

HESSteering

Closeout /Audit

COMMS


Statistical Engineering

• Continuous Improvement systems• Think about variation broadly• Engulfs our Lean & Six Sigma tools

• Still battles with the methods• Key is to improve the problem• Favorite Tools?• More you use a hammer, the

more everything looks like a nail


Horizon Assessments

• Forces improvement• Horizon 1 is doing what

you do well now (SOP)• Horizon 2 is building on

Horizon 1 in the next few months (opportunity for DFSS)

• Horizon 3 is years ahead, but you need to prepare now…big time strategy thinking


Strategy Deployment – X-Matrix

• More Detail than the Horizon planning

• Adds metrics and people• Able to do year over year

analysis• Not easily presented…

super complex


• Easy to understand evaluation tool• Definitions vary by output question• Definitions (Internal/External Focus)

– S trengths -- What are the good things about the program?

– W eaknesses -- What are the possible issues with the program?

– O pportunities -- What benefits result from the application of the program?

– T hreats -- What issues arise from the application of this program?

Inte

rnal

Inte

rnal

& E

xter

nal

SWOT Analysis


Strengths:•Data Availability•Upper mgmt support•3PL relationships•Customer reviews

Weaknesses:•Data Validity•Dealing with Federal Transportation Guidelines•Understanding customer needs•Supply chain complexity

Opportunities:•Customer Loyalty•Lower Supply Chain costs

Threats:•Sustainability•Increased Customer Expectations•Elevated Costs

Strengths & Weaknesses Refer to Process Input FactorsOpportunities & Threats Refer to Additional Metrics or Customer Voices

SWOT Analysis


The Non-Routines

• CI Culture• Everyone observes how things could be better• Need to drive people to want to do it• Need to make it in their DNA

• Safety Culture• Observing behaviors• Observing risks

• Escalation• When is bad, really bad?


Conclusion

• Need to balance• Standards, Routines, and Non-routines

• Need to understand • Events that just happened, Improvements for tomorrow,

Improvements for next year, and New Processes for 5 years• Need to be able to

• Bring back to standard, Bring away from standard• Need to understand the behaviors that go with this

Documents

Discussion Points