April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 1...

April 2006April 2006

Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 11

Behavior-Based Behavior-Based Performance ExcellencePerformance Excellence

Fuller, Jones & Associates, Inc.Fuller, Jones & Associates, Inc.

““A Radically Simple Approach to Improving Performance”A Radically Simple Approach to Improving Performance”


Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC.INC.

22

FJA-301-06

Leading Enterprises …Leading Enterprises …

Identify and Avoid Unnecessary CostsIdentify and Avoid Unnecessary Costs

Maintain Superior Levels of Customer Maintain Superior Levels of Customer SatisfactionSatisfaction

Optimize Organizational PerformanceOptimize Organizational Performance

What Are the Barriers to Achieving the Above?



33

FJA-301-06

What Are The Barriers To What Are The Barriers To Success?Success?

Business flowsBusiness flows(inputs)(inputs)Business flowsBusiness flows(inputs)(inputs)

Performance indicatorsPerformance indicators(outputs)(outputs)Performance indicatorsPerformance indicators(outputs)(outputs)

System BarriersSystem BarriersSystem BarriersSystem Barriers

People and processPeople and processPeople and processPeople and process

MaterialMaterialMaterialMaterial

InformationInformationInformationInformation

QualityQualityQualityQuality

CostCostCostCost

TimeTimeTimeTime

WasteWasteFocus of LeanFocus of Lean

VariabilityVariabilityFocus of 6Focus of 6

InflexibilityInflexibilityFocus of Theory Focus of Theory

Of Of ConstraintsConstraints

Feedback Loop

Waste = High Cost Variability = Low Customer Satisfaction

Inflexibility = Sub-optimization



44

FJA-301-06

The Manifestation of BarriersThe Manifestation of Barriers“The Iceberg Analogy”“The Iceberg Analogy”

Cost Of Poor Quality Cost Of Poor Quality ““Above The Waterline”Above The Waterline”

~5% of Operating Expense~5% of Operating Expense**

Examples:Examples: • ScrapScrap• ReworkRework• DowntimeDowntime• WarrantyWarranty

Cost Of Poor Quality Cost Of Poor Quality ““Below The Waterline”Below The Waterline”

~35% of Operating Expense~35% of Operating Expense**

Examples:Examples:• Incorrect BillingIncorrect Billing• Improper ToolsImproper Tools• Lack of TrainingLack of Training• OvertimeOvertime• Unclear RequirementsUnclear Requirements• Absenteeism / TardinessAbsenteeism / Tardiness• Lack of ProcessLack of Process• AccidentsAccidents

Does Your Organization Understand the Hidden COST of Poor Quality?

* Philip Crosby & Associates Estimate* Philip Crosby & Associates Estimate



55

FJA-301-06

What Choices Existed Before What Choices Existed Before BBPE?BBPE?

Many Choices To Traditional Approaches, All Essentially The Same

PDCA 8Disciplines (8D) 7-Step Theory of Constraints Lean Mfg, JIT, DFTSix Sigma /

Design for Six Sigma

PLAN 1. Define and Contain the Identify Constraint Identify cycle time Define / Identify1st Discipline - Form Team Problem and WIP reduction 2nd Discipline - Define Problem as major issue4th Discipline - Contain the Problem

1st Discipline cont.

2. Measure the Problem Establish cycle Measure / Designtime and WIPbaselines

3rd Discipline - Root Cause 3. Root Cause Analysis Decide How To Conduct Analysis: Analyze / DesignDescription Exploit Constraint Value Stream

7 "Deadly" Waste 5S

DO 5th Discipline - Permanent CA Plan 4. Plan and Implement Subordinate Everthing Improve and Improve / Optimize

Improvement To The Above verify effectivess

CHECK 6th Discipline - Verify Effectiveness 5. Evaluate effectiveness Elevate Constraint

ACT 7th Discipline - Prevent Recurrence 6. Standardize & Control Establish controls Control / Validate

7. Realize & Reflect8th Discipline - Congratulate Team



66

FJA-301-06

Drawbacks to the Traditional Drawbacks to the Traditional ApproachesApproaches

Many Of The Drawbacks To 6, Lean, etc Are Attributable To The Overemphasis Given To Sophisticated, Rarely Used Tools.

Why Can’t You…

Leverage existing people/practices Have management lead and train their employees Deploy in all areas at once, with focus on key problems Use your existing infrastructure Reduce problem solving cycles Generate results beyond traditional expectations Transform management and staff behaviors



77

FJA-301-06

Responding to Industry’s NeedsResponding to Industry’s Needs

The Evolution of Performance Excellence (PE)

CriteriaCriteriaMeasures Of Success & DeploymentMeasures Of Success & Deployment

Traditional PE Traditional PE MethodsMethods

BBPEBBPE

Training timeTraining time 80~160 hours 80~160 hours 8-12 hours8-12 hours

TrainersTrainers External ExpertsExternal Experts Managers and LeadersManagers and Leaders

Org. Knowledge Org. Knowledge TransferTransfer

Low – stays with a few Low – stays with a few expertsexperts

High – deploys across an High – deploys across an enterpriseenterprise

Project Cycle timeProject Cycle time 4-6 months4-6 months 4- 6 weeks4- 6 weeks

Program ScalabilityProgram Scalability Few “Experts”Few “Experts” Enterprise-wideEnterprise-wide

Types of Types of Defects/Symptoms Defects/Symptoms AddressedAddressed

• 66 - Process Variability - Process Variability• Lean – Process WasteLean – Process Waste

• TOC – Process InflexibilityTOC – Process Inflexibility

BBPE draws best practices BBPE draws best practices from all PE methodologiesfrom all PE methodologies

This Evolution From Contemporary Tools To Progressive Behavior Change Is Achieving Greater Results In Shorter Time In All Areas



88

FJA-301-06

The BBPE methodology contains two key components:

• Process Management: Changes leadership and management practice behaviors

• Process Improvement: Changes problem solving behaviors

What is Behavior-Based Performance Excellence?



99

FJA-301-06

The Behavior-Based Performance The Behavior-Based Performance Excellence ModelExcellence Model

Behavior-BasedProcess

Improvement

Review Performance And Identify

Opportunities

Identify Key ProcessLeverage Points

Document and Benchmark

Process, Metrics & Objectives

Process ManagementActivities

Process ImprovementActivities



1010

FJA-301-06Combining Process Creation and Combining Process Creation and

Process ImprovementProcess Improvement

Improve Existing

Process/Product

Design/Develop New

Process/Product

MoreImprovement

Needed?

YesYes

Monitor

NoNo

Select

Significantly New Feature /

Process

YesYes NoNo



1111

FJA-301-06

Behavior-Based Process CreationBehavior-Based Process Creation

StepsSteps DeliverablesDeliverables ToolsToolsSelect ProblemSelect Problem Measure Problem SolvingMeasure Problem Solving

Behavior…Behavior…

Define and Contain Define and Contain the Problemthe Problem

Measure the ProblemMeasure the Problem … … Through Key Through Key

Deliverables …Deliverables …

Root Cause AnalysisRoot Cause Analysis

Implement and Implement and Assess SolutionAssess Solution

… … At Every StepAt Every Step

Control and Control and Standardize Solution Standardize Solution

Typically Typically Requires Only Requires Only BasicBasic Tools Tools Such As Such As

Run Charts, Run Charts,

Pareto Charts, Pareto Charts,

5-Why Analysis, 5-Why Analysis,

Basic Stat, Basic Stat,

Simple DOE,Simple DOE,

etcetc



1212

FJA-301-06

Behavior-Based Process Behavior-Based Process ImprovementImprovement

StepsSteps DeliverablesDeliverables ToolsToolsSelect ProblemSelect Problem Measure Problem SolvingMeasure Problem Solving

Behavior…Behavior…

Define and Contain Define and Contain the Problemthe Problem

Measure the ProblemMeasure the Problem … … Through Key Through Key

Deliverables …Deliverables …

Root Cause AnalysisRoot Cause Analysis

Implement and Implement and Assess SolutionAssess Solution

… … At Every StepAt Every Step

Control and Control and Standardize Solution Standardize Solution

Typically Typically Requires Only Requires Only BasicBasic Tools Tools Such As Such As

Run Charts, Run Charts,

Pareto Charts, Pareto Charts,

5-Why Analysis, 5-Why Analysis,

Value Stream, Value Stream,

Risk Analysis,Risk Analysis,

etcetc



1313

FJA-301-06

BBPE Optimizes Cost, Time, BBPE Optimizes Cost, Time, Effectiveness and DevelopmentEffectiveness and Development

Problem Solving Effectiveness

Training Cost

High

Low

Low High

CycleTime

Long(months)

Short(weeks)

PDCA 7-Step

8D

TOC

TraditionalBlack Belt Six Sigma

Training

Business Process

Reengineering

TraditionalGreen Belt Six Sigma

Training

Behavior-BasedPerformance

ExcellenceTraining

Bett

er

Bett

er

Better

Leadership / Organizational Development

Low High

Better

TraditionalLean

ManufacturingTraining



1414

FJA-301-06

BBPE Is Highly EffectiveBBPE Is Highly Effective

• Works Across the Enterprise

• Employees, Managers, Leaders all follow the same methodology

• BBPE permanently changes behavior and the way staff do their jobs each day

• Eliminates process waste and reduces variability

• Solves problems for the “last” time

• Identifies and develops future leaders

BBPE Is Based On An Integration Of Best Practices From Leading Process Excellence Methods



1515

FJA-301-06

BBPE Enables More Rapid BBPE Enables More Rapid Leadership and Organizational Leadership and Organizational DevelopmentDevelopment

Open minded, willing and able to change

Data driven, process oriented Customer focused Must be able to teach, then

learn, then teach and be an effective coach

Consistently models winning behaviors

BBPE Supports Organizational Transformation and Leadership Development:

Skills And Traits Of Successful Leaders Include:

Facilitates top-down and bottom-up Facilitates top-down and bottom-up change across the organizationchange across the organization

Identifies and develops the next Identifies and develops the next generation of leaders generation of leaders

Compliments other leadership Compliments other leadership development programsdevelopment programs

Leaders serve as the problem Leaders serve as the problem solving experts capable of leading solving experts capable of leading and training their own teamand training their own team

Problem solving behaviors Problem solving behaviors demonstrated as part of their demonstrated as part of their normal work activitynormal work activity



1616

FJA-301-06

Many leading Fortune 100 and 500 Companies Many leading Fortune 100 and 500 Companies including:including:

Lexar MediaLexar Media Lockheed MartinLockheed MartinCisco SystemsCisco Systems Seagate TechnologySeagate TechnologyExtreme NetworksExtreme Networks Solectron CorporationSolectron CorporationGMAC MortgageGMAC Mortgage SonyBMG, USASonyBMG, USAIngram Micro LogisticsIngram Micro Logistics Arvato Services, Inc.Arvato Services, Inc.Lawrence Livermore LabLawrence Livermore Lab PeopleSoftPeopleSoftSony PicturesSony Pictures IntuitIntuitCholestechCholestech SonyBMG, SonyBMG,

InternationalInternational

FJ&A Experience Deploying FJ&A Experience Deploying Performance ExcellencePerformance Excellence

High Tech, Software, Medical, Finance, Defense, Entertainment, Manufacturing



1717

FJA-301-06BBPE Success Stories – BBPE Success Stories – Achieving Results in 6-8 Wks , Achieving Results in 6-8 Wks , by Regular Staff as Part of by Regular Staff as Part of Their Normal Work Their Normal Work

Improved Customer Fulfillment to 99.7% from 89%Improved Customer Fulfillment to 99.7% from 89%– Conventional Wisdom: Most orders arriving were incompleteConventional Wisdom: Most orders arriving were incomplete– FJ&A approach showed missing information not an issue; equipment FJ&A approach showed missing information not an issue; equipment

and timeliness of information were the major obstaclesand timeliness of information were the major obstacles

Reduced Cycle Time Avg, Variability & WIP 50%Reduced Cycle Time Avg, Variability & WIP 50%– Conventional Wisdom: Testing equipment was a bottleneck, needed to Conventional Wisdom: Testing equipment was a bottleneck, needed to

purchase more equipment and hire more peoplepurchase more equipment and hire more people– FJ&A approach showed test equipment idle ~50% of the time; upstream FJ&A approach showed test equipment idle ~50% of the time; upstream

product grouping and synchronization were the primary issuesproduct grouping and synchronization were the primary issues

Reduced Complaint Mean Time To Resolution (MTTR) by 50% Reduced Complaint Mean Time To Resolution (MTTR) by 50% – Conventional Wisdom: People not working hard enough or competentConventional Wisdom: People not working hard enough or competent– FJ&A approach showed no clear operational definitions for prioritizing, FJ&A approach showed no clear operational definitions for prioritizing,

navigating and escalating issuesnavigating and escalating issues

Business Goal Returns Rate of < 12% from 19% Business Goal Returns Rate of < 12% from 19% – Conventional Wisdom: Industry is too unpredictable to manage Conventional Wisdom: Industry is too unpredictable to manage

shipmentsshipments– FJ&A approach showed initial shipment sell-off highly variable but initial FJ&A approach showed initial shipment sell-off highly variable but initial

ship eventually consumed, and reshipments recreated exposure and ship eventually consumed, and reshipments recreated exposure and very predictablevery predictable



1818

FJA-301-06

Thank You!Thank You!FULLER, JONES & ASSOCIATES, INC.FULLER, JONES & ASSOCIATES, INC.

www.fullerjonesassociates.comwww.fullerjonesassociates.com4000 Pimlico Drive, Suite 1144000 Pimlico Drive, Suite 114

Pleasanton, CA 94588Pleasanton, CA 94588Tel: 866-479-4979Tel: 866-479-4979Fax: 925-931-0136Fax: 925-931-0136

Dr. Howard T. Fuller Dr. Howard T. Fuller Andrew M. Jones, [email protected]

[email protected]: 925-413-2255 Direct: 925-922-1225



1919

FJA-301-06

Dr. Howard T. Fuller:Dr. Howard T. Fuller:– Corporate VP of Quality & Reliability – SanDiskCorporate VP of Quality & Reliability – SanDisk– Corporate VP of Quality & Functional Excellence – Solectron Corporate VP of Quality & Functional Excellence – Solectron

CorporationCorporation– Corporate Director of Design For Six Sigma – Seagate TechnologyCorporate Director of Design For Six Sigma – Seagate Technology– Manager, Process Improvement – LifeScan, a Johnson & Johnson Manager, Process Improvement – LifeScan, a Johnson & Johnson

Co.Co.– Adjunct Professor at San Jose State University ISEAdjunct Professor at San Jose State University ISE– Ph.D. in Quality Engineering, M.S. in Math/StatisticsPh.D. in Quality Engineering, M.S. in Math/Statistics– Published over 25 papers in leading journalsPublished over 25 papers in leading journals

Andrew M. Jones, MBA:Andrew M. Jones, MBA:– Director, Process Excellence - IntuitDirector, Process Excellence - Intuit– Director, Performance Improvement Office – GMAC MortgageDirector, Performance Improvement Office – GMAC Mortgage– Sr. Manager, Business Process Development Group - CiscoSr. Manager, Business Process Development Group - Cisco– Consultant, Reengineering & Change Management Office – Sony Consultant, Reengineering & Change Management Office – Sony

PicturesPictures– Sr. Examiner, Baldrige National Quality ProgramSr. Examiner, Baldrige National Quality Program– Six Sigma Program Manager, Master Black BeltSix Sigma Program Manager, Master Black Belt– MBA, International BusinessMBA, International Business

BackgroundBackground

April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 1...

Documents

Transcript of April 2006 Confidential – Do Not Distribute - Property of FULLER, JONES & ASSOCIATES, INC. 1...