The New Operational Excellence Equation: OE = fn (Process Efficiency x Organizational Capability x Integrated Technology)
Latoya Wall & Tim Jackson November 3, 2010
The New Operational Excellence Equation
2 11/03/20102
Premise of Lean…Lean was pioneered by the Toyota Production System
• Sources of waste can be eliminated in every area of production along the value stream
• Focus is on efficient operation by • Reducing cycle time• Improving quality• Aligning production with demand• Reducing inventory• Improving process safety
• Focus areas include customer relations, product design, supplier networks, and factory management
Before After
The New Operational Excellence Equation
3 11/03/20103
Sources of Waste - DOWNTIME• Defects: errors which cause rework, repair, and/or replacement
• Overproduction: producing products outside of set targets, or delivering services too soon
• Waiting: delays in parts, machine, signatures, etc. which lead to an increase in lead time
• Not Using People Well: not utilizing the full potential of the people in the organization (time and talents)
• Transportation: nonessential transport of the product or delivery of information relative to a service
• Inventory: any components to developing a product which are held over the minimum targets set by business objectives
• Motion: the movement of people, paper, machines, etc. that does not add value to product/service delivery
• Excess-processing: inefficiencies in the process or development of any unnecessary (as defined by the customer) product features
The New Operational Excellence Equation
4 11/03/20104
Premise of Six Sigma…Six Sigma was pioneered by Motorola and developed by GE
• Sources of variation can be identified, quantified and eliminated or controlled• Focus is on reducing defects in our strategic or core processes which undermine
customer loyalty• Process improvements are data driven and improve overall process capability
-6 -3 0 +3 +6
LSL USL
T hree Sigma Process Six Sigma Process
LSL USL
-6 0-3 +6+3
LSL: Lower Specification Limit
USL: Upper Specification Limit
σ: measure of variation in a process
Specs are Customer Driven
Sigma Quality Level:
The Higher the Sigma level, the Better the Quality
Goal
The New Operational Excellence Equation
5 11/03/20105
Industry Sigma Rankings*
*Courtesy of Six Sigma Academy
7
Sigma Scale of Measure
1,000,000
100,000
10,000
1,000
100
101
DPMOPPM
•
Restaurant BillsDoctor Prescription Writing
Payroll ProcessingOrder Write-up
Journal VouchersWire Transfers
Airline Baggage Handling
Purchased Material Lot Reject Rate
Domestic Airline Flight Fatality Rate (0.43 PPM)
Best-in-ClassAverage Company
3 4 5 621
IRS - Tax Advice (phone-in)
(140,000 PPM)
The New Operational Excellence Equation
6 11/03/20106
3 Sigma Process vs. 6 Sigma Process3 sigma level 99.73% 6 sigma level 99.99966%
8.1 Million wrong drug prescriptions a year worldwide
10,000 wrong drug prescriptions a year worldwide
Over 11,000 newborn babies accidentally dropped by nurses or doctors in USA each year
Thirteen newborn babies accidentally dropped by nurses or doctors in USA each year
Six short or long landings at Atlanta International Airport each day
Three short or long landings at Atlanta International Airport in a year
Almost 500 incorrect surgical operations each week
One incorrect surgical operation every two weeks
1-
99.73% (3 Sigma) to 99.99966% (6 Sigma)
Three Sigma = 99.73% right or 2,700 PPM defects (no shift)
Six Sigma = 99.99966% right or 3.4 defects per million (with shift)
The New Operational Excellence Equation
7 11/03/20107
Change Management
FormalOrganization
InformalOrganization
PeopleWork
To implement any type of change you should first consider the impact to these components of an organization:
Inputs into the organization
Outputs to the organization
Congruence Model
Timothy L. Jackson, Director-Enterprise SystemsHighMount Exploration & Production, LLC
The New Operational Excellence Equation
9 11/03/20109
Six Sigma in Oil & Gas – Process MappingBusinessProcess
Sub-processes
Detailed Sub-Process
Map
Land Imaging Process
Document Preparation
DocumentScanning
QC (Image Review)
Prep Documentsfor storage
Tasks Procedures
The New Operational Excellence Equation
10 11/03/201010
Detail Process Map
CHECK TO SEE IF
DOCUMENT IN P8
CHECK TO SEE IF SCANNED DOCUMENT
IS IN TLS
DOC IN P8?
CHECK IMAGE QUALITY
RE-SCANQC CHECK
FAILED?
CHECK NO. OF PAGES
CHECK FOR 2X IMAGES
CHECK FOR CORRECT IMAGE
CATEGORY
CHECK FOR BLANK PAGE
CHECK FOR IMAGE CUT-OFF
CONFIRM PAGE SIZE CORRECT
DELETE DOCUMENTS
SEND DOCUMENTS
FOR FINAL QC
ENTER DOCUMENT NUMBER IN
TOBIN
VERIFY DOCUMENT
NUMBER
VERIFY DOCUMENT BOX
NUMBERVERIFY DATE
VERIFY BAR SHEET IS CORRECT
OPEN DOCUMENT IN
TLS
CHECK IMAGE QUALITY
MATCH DOCUMENT IN
TLS AGAINST P8
DOCUMENTS MISMATCH
?
VERIFY DOCUMENT
TYPE
FIX MISMATCH
RETURN TO BOX TO SEND TO
STORAGE
MISMATCH CAN’T BE
FIXED
CONTACT PROCESS ASST
OR IT
CAN BE FIXED BY IT (E.G., CHANGE
DATE)
RETURN TO BOX SEND TO STORAGE
No
Yes
Yes
Yes Yes
Yes
No
No
- PROCESS ASST- FILENET P8- DOC NO.- MISC.- DATE
- PROCESS ASST- TOBIN- DATE- MISC.- BOX NO- DOC CATEGORY- DOC NO.
10 - 60 MINUTE DELAY TO GET FROM FILENET
TO TLS
CHECK IMAGE QUALITY
CHECK NO. OF PAGES
CHECK FOR 2X IMAGES
CHECK FOR CORRECT IMAGE
CATEGORY
CHECK FOR BLANK PAGE
CHECK FOR IMAGE CUT-OFF
CONFIRM PAGE SIZE CORRECT
30 MINUTE DELAY TO GET FROM FILENET
TO TLS
QC CHECK FAILED?
RE-SCANDELETE
DOCUMENTSYes
No
Stop
Start
- PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST
- QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST
- QC ANALYST
- QC ANALYST
- QC ANALYST
- QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST
- QC ANALYST - QC ANALYST
- QC ANALYST- QC ANALYST
- QC ANALYST
The New Operational Excellence Equation
11 11/03/201011
Process Mapping - Classification Value Added–A step in the process that the customer/company is willing to pay for, physically
changes the product, and is done right the first time• Includes those activities that are required by contract or law• If it were left out, it would impact customer satisfaction
Business-Value Added–Any activity, when left out, that does not directly impact the customer and may
incur no dissatisfaction• These steps may be necessary to support value added steps • Any activity required by the business
Non-Value Added–Any activity, when left out, that does not directly impact the customer and may
incur no dissatisfaction
The New Operational Excellence Equation
12 11/03/201012
Analysis of Process Map
CHECK TO SEE IF
DOCUMENT IN P8
CHECK TO SEE IF SCANNED DOCUMENT
IS IN TLS
DOC IN P8?
CHECK IMAGE QUALITY
RE-SCANQC CHECK
FAILED?
CHECK NO. OF PAGES
CHECK FOR 2X IMAGES
CHECK FOR CORRECT IMAGE
CATEGORY
CHECK FOR BLANK PAGE
CHECK FOR IMAGE CUT-OFF
CONFIRM PAGE SIZE CORRECT
DELETE DOCUMENTS
SEND DOCUMENTS
FOR FINAL QC
ENTER DOCUMENT NUMBER IN
TOBIN
VERIFY DOCUMENT
NUMBER
VERIFY DOCUMENT BOX
NUMBERVERIFY DATE
VERIFY BAR SHEET IS CORRECT
OPEN DOCUMENT IN
TLS
CHECK IMAGE QUALITY
MATCH DOCUMENT IN
TLS AGAINST P8
DOCUMENTS MISMATCH
?
VERIFY DOCUMENT
TYPE
FIX MISMATCH
RETURN TO BOX TO SEND TO
STORAGE
MISMATCH CAN’T BE
FIXED
CONTACT PROCESS ASST
OR IT
CAN BE FIXED BY IT (E.G., CHANGE
DATE)
RETURN TO BOX SEND TO STORAGE
No
Yes
Yes
Yes Yes
Yes
No
No
- PROCESS ASST- FILENET P8- DOC NO.- MISC.- DATE
- PROCESS ASST- TOBIN- DATE- MISC.- BOX NO- DOC CATEGORY- DOC NO.
10 - 60 MINUTE DELAY TO GET FROM FILENET
TO TLS
CHECK IMAGE QUALITY
CHECK NO. OF PAGES
CHECK FOR 2X IMAGES
CHECK FOR CORRECT IMAGE
CATEGORY
CHECK FOR BLANK PAGE
CHECK FOR IMAGE CUT-OFF
CONFIRM PAGE SIZE CORRECT
30 MINUTE DELAY TO GET FROM FILENET
TO TLS
QC CHECK FAILED?
RE-SCANDELETE
DOCUMENTSYes
No
Stop
Start
VALUE ADDEDBUSINESS
VALUE ADDED
NO VALUE ADDED
ORLOW VALUE
- PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST
- QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST
- QC ANALYST
- QC ANALYST
- QC ANALYST
- QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST
- QC ANALYST - QC ANALYST
- QC ANALYST- QC ANALYST
- QC ANALYST
The New Operational Excellence Equation
13 11/03/201013
Process Mapping – Discovering Delays Taking a Lease – Are there delays in your process?
Brok
erLa
ndm
anLa
nd A
naly
stLa
nd M
anag
er
Assi
stan
tLe
ssor
Lessor signs lease
Send lease packet to Land
ProcessingAssist.
Lessor submitsto theirBank
Lessor’s bankmails Lease
Broker verifies lease
Broker mails (US Mail) packet to
Oil & Gas Company
Land Analyst receives packet
and verifies packet
Invoice?
Add AFE information
Yes
No
3 days
Landman receives and approves
packet
17-20 days
The New Operational Excellence Equation
14 11/03/201014
Results of improving the process
April 050
400
300
200
100
0
Day
Cou
nt
Time
Trend Analysis for Day CountLinear Trend Model
Latoya L. Wall, PresidentThe Bulsard Group, LLC
The New Operational Excellence Equation
16 11/03/201016
The Operational Excellence Connection
Through the use of Lean , Six Sigma, and Change Management principles, the 7-6-5 plan provides a clear path to achieve Operational Excellence
Current State
Standardization & SustainmentFocus: Value Drivers
Strategy DeploymentFocus: Strategy
Training & DevelopmentFocus: Vision
Change ManagementFocus: Measures
Strategy DevelopmentFocus: Processes
Capability AssessmentFocus: Governance
Stakeholder IntegrationFocus: Organization
Individual Employee
Future State
Opportunity Statement(Supply Chain Example)
Implement an integrated, comprehensive Materials Management System to improve financial compliance, and optimize material visibility, quality,
and availability.
5 Focus Areas
Implement standard work processes Leverage enabling technology Establish the required storage
infrastructure4. Improve financial compliance 5. Optimize material visibility, quality,
and availability Represents successes to date
Opportunity Statement(IT Example)
Currently Engineering and Earth Science practitioners spend 60% of their time looking for and QCing data. Improve the productivity and effectiveness of
these practitioners by establishing a data management infrastructure focusing on
data access and data quality.
5 Focus Areas
Establish core roles and governance for data management efforts
Implement standard processes for data governance
3. Reduce redundant systems which store data
4. Increase Decision Quality5. Optimize data visibility, quality, and
availability
The New Operational Excellence Equation
17 11/03/201017
7-6-5 Plan: Stages 1-3 – “Develop”
Stage 1Stakeholder IntegrationWhat1. Stakeholder/Customer Analysis 2. High Level Gap Analysis3. Scope Definition4. Benchmark StudyWhy5. To identify, gather, and analyze
stakeholder/customer data6. To determine the Strategy and the Value
Drivers (critical success factors)7. To determine the scope of all processes
from Supplier to End-user Customer8. To align with current governance in place
Stage 2Capability Assessment
What1. Value Stream Map2. Input-Process-Output Diagram3. Current State Governance & Measures4. Spaghetti DiagramWhy5. To determine how value is delivered from
the Supplier to End-user Customer6. To determine the leading and lagging
indicators to the processes7. To identify the current state governance &
measures for E2C2* of all processes 8. To map flow of information/material and
identify bottlenecks and areas of waste*E2C2 = Efficiency, Effectivity, Capacity, Capability
Stage 3Strategy Development
What1. Swimlane Process Flow (Development) 2. Barriers-Aids-Countermeasures Tool3. Swimlane Process Flow (Review) 4. Roles and Responsibilities PlanWhy5. To illustrate all steps & behaviors needed
to successfully complete each subprocess6. To identify process design gaps and select
desired alternatives and develop a design gap closure plan
7. To review and update process flows based upon selected alternatives
8. To determine new roles and responsibilities needed to execute processes
The New Operational Excellence Equation
18 11/03/201018
Develop: Stages 1-3 (Supply Chain)
MeasureDefineProcess Affinitization Macro Process Flow Map
IPO Diagram Value Stream Map
The New Operational Excellence Equation
19 11/03/201019
Develop: Stages 1-3 (Supply Chain)
ImproveAnalyzeCurrent State Analysis Barrier-Aid-Countermeasure Tool
Process Flow Development High Level Process Flow Map
The New Operational Excellence Equation
20 11/03/201020
Develop: Stages 1-3 (IT)
MeasureDefineProcess Affinitization Macro Process Flow Map
IPO Diagram Value Stream Map
ProcessData Management Failure
Identification Process (Innerlogix tool used)
Inputs(Leading Indicators)
Outputs(Lagging Indicators)
Improved risk controls/compliance (cost)
Improved data quality (reduction in # of errors) (performance)
Reduction in number of business analyst needed to monitor the
Innerlogix tool (cost)
Data
Business Rules
Data Producers
Data Stewards
System of Record
SupplierData Consumer (DC)/
Data Management System Identifies
Business Rule Failure or Data Error
CustomerData Steward (Help Desk Rep) Receives DQM Failure Ticket
Data Consumers
Data Errors
Data Quality Business Analyst
Reduction in number of incidents and problems discovered with Business Rules (performance)
Reduction in technical research time by end-user (time)
Reduction of ticketing/logging/auditing downtime (performance)
Receive and Process Data Quality Issues
SUPPLIERS
Data Producers: System of RecordData Stewards: Business Rules
Ticketing System (New Scale?)
??-?? Hours ??-?? Hours ??-?? Hours ??-?? Hours
??-?? ??-?? Days ??-?? Days ??-?? Days
??-?? Hours
??-?? Days
Scope Process Totals:
??-?? Hours
Access Data and Rules(Bottom Hole Pressure)
Gulf of Mexico Data Management Value Stream Map
??-?? Days
Subprocesses:
1. Request Load Send MMS2. Single Point Entry Form3. Load Historic Data, Legacy Spreadsheets5a. Export to MBAL PROSPER Gap5. Summary Report and Information for Decision Making6. Request for a Waiver8. Data Quality9. Add, Remove, Modify Users10. Modify MMS 140 Template
· OE Engineer· Tech· AD Engineer· Vendor· DQM Rep· IM Analyst· DQ Analyst (offshore)
· SuperUser
Subprocesses:
DM Failure Identification Process
DM Ticket Response Process
· Data Consumer
· Data Custodian
· Data Steward
· DM Help Desk Team
· Help Desk Ticket Form
· Final Resolution and Ticket Closure Form
Resolve Data Quality Issues
Subprocesses:
Data Management Failure Resolution Process
· Data Consumer
· Data Steward
· Information Management Champion
· Information Management Delegate
# Handoffs:
Review Data Quality Management
Subprocesses:
Gap Assessment and Trending Process
DQ Monthly Review Process
· Data Steward
· Information Management Delegate
· Information Management Champion
· DM Governance Board
# Handoffs:
Train and Develop
Subprocesses:
Data Quality Training Process
Management of Change Process
· Data Steward
· IT Training Group
# Handoffs:
Data Management Maintenance
Subprocesses:
SOR Update Process
Business Rule Update Process
Management of Change Process
· Data Steward
· Functional Rep
· Information Management Delegate
· Management of Change Owner
# Handoffs: # Handoffs:
Stewardship and Operations Governance
· Gap Assessment Report
· DM Monthly Meeting Dashboard Report
· MOC Form· Training and Development Plan Template
??-?? Hours
??-?? Days
· MOC Form
??-?? Hours
??-?? DaysProcess Totals:
RCats (or equivalent)
ILX
· Final Resolution and Ticket Closure Form
· Level 1 Documents
# Handoffs:
Web Access
CUSTOMERS
DM CommunityUpdated SOR
Updated Business Rules
Days
Legend· Electronic Information Flow
· Information/Data Transfer by Webform
· Information/Data Transfer by Email
· Information/Data Transfer by Telephone
· Information/Data Transfer by Computer Interface/Web Access
· Work in Process
· Inventory
· Roles
· Forms Used
Data Errors
Business Rule
Failures
Identified Data
Quality Issues
Data Quality
Resolutions
Improvement Plans
Training Modules
MOC Communications
Database???
· Stop Sheet· MMS Waiver
Form/CC111· Single Point
Entry Form· Next Wells List· Loader
Spreadsheet· Canned Report
Template· Email of QC
Issues· User Request
Form· Standard email
for user request· Standard Email
for user request refusal
· MMS140 Tem
BHP SystemWebform
Web Access
Asset Database???
Webform
Training DatabaseLMS?
DQM Web Access
Gap Assessment /Auditing Process
Data Type 1
DM Failure Identification Process
DM Ticket Response Process
2.1
Resolve Data Errors and
Business Rule Failures
2.2
Data Management Failure Resolution Process
2.3
Data Type 2
3.1
Data Type N
Extraction
Analyze Data Errors and
Business Rule Failures
Standardize and Sustain
DM Governance
SOR Update Process
4.1
Maintain Business Rules Process
4.2
DM Training Process
4.3
Data Extraction Location
1.1.1
Data Extraction Location
1.1.2
Data Extraction Location
1.1.3
Data Extraction Location
1.1.4
Decision Matrix for Data Types
2.1.1
Resolution
Analysis
Standardization
DM Monthly Review Meeting Guidelines
3.2
1.
2.
3.
4.
Data Extraction Location
1.2.1
Data Extraction Location
1.2.2
Data Extraction Location
1.2.3
Data Extraction Location
1.2.4
Data Extraction Location
1.N.1
Data Extraction Location
1.N.2
Data Extraction Location
1.N.3
Data Extraction Location
1.N.4
Output
Data Errors and Business Rule
Failures
Output
Data Management Failure Resolutions
Output
Improvement Opportunities
Output
Updated SORs and Business Rules
Completed Training
Business Planning
Yearly Asset Classification and Reconciliation Process
Develop Effective DM Network
• Create a strategic program to solve the data management gaps
• Create communication channels for clear messaging across entire value stream
Ensure Efficient Data Access
•Reduce Cycle Time to find data•Remove constraints to create process efficiency
•Increase Decision Quality
Build Capable Users
•Standardize, and optimize common core petro-technical workflows
•Improve governance and visibility of current and future efforts
•Deliver training and development with a quality data management
Increase User Capacity
•Remove constraints to create productivity in users (decisions)
•Improve the quality and accessibility of this data
•Create single point of contact for the various data management efforts from GU
E2C2
The New Operational Excellence Equation
21 11/03/201021
Develop: Stages 1-3 (IT)
ImproveAnalyzeSpaghetti Diagram Roles and Responsibilities
Process Flow Development Barriers-Aids-Countermeasures Tool
Role Name Definition
Information User An individual or entity to which a Data Steward has granted certain rights to access, use, and/or manipulate Chevron Records and Information
Data Content Owner The organization that is responsible for data content. This role typically belongs to a business organization. This includes: maintaining the content and quality of the data values providing input to the data definition owner on information requirements applying retention requirements. For the purposes of IRM, a Data Content Owner is considered to be an Information Steward.
DM Help Desk The Data Management Help Desk is a group responsible for capturing and managing all DM Failure Tickets which are routed through the DM Ticket Response System and then routing to the appropriate Data Custodian.
Data Custodian A Data Custodian is a person or group to which a Data Steward grants rights and responsibilities for technical support of a data. Handles level 1 data tickets.
Data Steward A Data Steward is a person or group to which the Company grants rights and responsibilities for support of an information database. The Company grants these rights as the Information Owner
Information Management Delegate A representative of a Reporting Unit who has significant responsibilities for communicating Information Retention principles within that Reporting Unit
Information Management Champion The Lead of the Data Management Governance Board who has responsibility for ensuring the decisions made by the Board are sustained throughout the organization
Data Management Governance Board The group of Information Management Delegates which meets periodically (monthly or quarterly) to review and select which DM opportunities to leverage for training and sustainable improvements
Data Management System Any IT system which will be used in enabling the Data Management processes, i.e. ILX
Data Management Failure Identification Process
Da
ta
Ste
wa
rdD
M S
yste
m
(IL
X)
Fu
nct
ion
al
Re
pD
ata
C
ust
od
ian
DM
He
lp D
esk
Da
ta C
on
sum
er
Identifies Data Error
Creates a ticket for a business rule
failure for a particular project
(metrics and tracking)
Calls X-8765 to enter ticket
Help Desk Ticket Form
Identifies Data Error
Captures information on
data error
Routes to DM System and
includes info.
Creates a ticket in DM System
(New Scale?)*
Or
Attaches supporting information
Receives DQM Ticket Failure
From Data Gathering and Usage (i.e. BHP)
and Data Request Processes
To DM Ticket Response Process
Maintenance Mode has more value for the use of a ticketing system than project mode
Need to develop a governance for project mode ticketing
New Scale demo as software for creating a ticket
To Gap Asst and Trending Process
Opportunity Catalog
Facilities/Operations Opportunities not included in the Opp Cat
Not capturing interdependent opportunities in Opp Cat
Opportunities manually entered into multiple systems/processes
1. Use Opp Cat to capture Facilities/Operations opps as “Other”2. W/Os as drills
3. Develop Governance process for Opportunity categorization
No Aid
No Aid
1. Determine DWEP involvement2. Cross functionally re-evaluate
current Opp Cat and modify/replace3. Ensure no duplicates when
entering facilities/drilling costs
1. Modify Opp Cat to Handle interdependent opportunities
2. Or re-evaluate/modify/replace
1. Determine necessary info . For cross-functional stakeholders and map data
2. Modify /build/buy proper system to hold data
3. Ensure the data maps across maps
The New Operational Excellence Equation
22 11/03/201022
7-6-5 Plan: Stages 4-6 – “Execute”
Stage 4Change Management
What1. B-A-C Plan (Key Design Closure Plan)2. Metrics Development3. Competency Model (Development)4. Social Networking Diagram
Why5. To execute key design gap closure plan6. To create org. performance measures 7. To identify the Knowledge, Skills, Attitudes,
Behaviors to properly perform new roles 8. To determine the “true organization” and
understand interconnections within a team and to the outside organization
Stage 5Training &
DevelopmentWhat1. Training and Development Plan2. Shaping Curve Plan3. Competency Model (Execution)
Why4. To execute T&D plan and train all users on
the new process flows5. To identify and develop a plan for the next
phase of opportunities needed to fully deliver vision
6. To communicate and execute any training needed to develop the Knowledge, Skills, Attitudes, Behaviors to properly perform new roles
Stage 6Strategy Deployment
What1. Process Flow Deployment (Pilot Area)2. Process Flow Analysis3. Interconnectivity Diagram4. Metrics Dashboard
Why5. To pilot new processes in a designated area 6. To collect and review performance data at 30,
60, and 90 day intervals7. To determine the interconnections between
the technology needed to execute the strategy for the DM System
8. To display status of org. performance measures to entire organization
The New Operational Excellence Equation
23 11/03/201023
7-6-5 Plan: Stage 7 – Standardization & Sustainment“Sustain”
Stage 7Standardization & Sustainment
What1. Fishbone Diagram2. 5-Why Tool3. Behaviorally Annotated Swimlane Process
Flow (All Areas)4. Continuous Improvement PlanWhyBased on Process Flow Analysis of Pilot Area:5. To perform a causal analysis on problems
identified6. To determine the root cause of the causes
identified7. To deploy new process flows in all areas with
look backs at 3 mo, 6 mo, and 9 mo intervals8. To develop and deploy a CI Plan with quick win
"Just Go Do It” opportunities and Full DMAIC projects
The New Operational Excellence Equation
24 11/03/201024
The Operational Excellence Connection
Through the use of Lean , Six Sigma, and Change Management principles, the 7-6-5 plan provides a clear path to achieve Operational Excellence
Current State
Standardization & SustainmentFocus: Value Drivers
Strategy DeploymentFocus: Strategy
Training & DevelopmentFocus: Vision
Change ManagementFocus: Measures
Strategy DevelopmentFocus: Processes
Capability AssessmentFocus: Governance
Stakeholder IntegrationFocus: Organization
Individual Employee
Future State
Opportunity Statement(Supply Chain Example)
Implement an integrated, comprehensive Materials Management System to improve financial compliance, and optimize material visibility, quality,
and availability.
5 Focus Areas
Implement standard work processes Leverage enabling technology Establish the required storage
infrastructure4. Improve financial compliance 5. Optimize material visibility, quality,
and availability Represents successes to date
Opportunity Statement(IT Example)
Currently Engineering and Earth Science practitioners spend 60% of their time looking for and QCing data. Improve the productivity and effectiveness of
these practitioners by establishing a data management infrastructure focusing on
data access and data quality.
5 Focus Areas
Establish core roles and governance for data management efforts
Implement standard processes for data governance
3. Reduce redundant systems which store data
4. Increase Decision Quality5. Optimize data visibility, quality, and
availability