How do you use the operational excellence assessment results to prioritize and plan improvement initiatives?

Excellence Frameworks show how mission, vision, and strategy are supported by numerous organizational factors. Together, these factors tell a story. When one factor is deficient, it can limit the effectiveness of all related and tangential factors. Frameworks show how addressing one deficiency can have an exponential impact.

The understanding of this framework must extend beyond the function tasked with delivering operational excellence. Ensure ALL in the organization (especially leadership) buy in to the 'operational definition' for operational excellence and the framework that addresses approach, deployment and results. Paul Elder's suggestion to include strategy is essential! Ensure that there is a definitive cause and effect relationship between maturity/performance assessments and business outcomes. It would be disappointing if the framework assessments are strong, but the organization's performance is weak to moderate.

Operational excellence assessments offer a roadmap for targeted improvement. By analyzing the results, you can prioritize initiatives that will yield the greatest return on investment. Consider factors such as complexity, duration, investment costs, expected revenue or benefits, and required resources to create a comprehensive project plan. This data-driven approach ensures that your improvement efforts are aligned with strategic goals, maximizing their effectiveness and value to the organization. We usually revise our improvement plans yearly; and we have projects funnel for the coming 4-5 years. depending on the market, we try doing a new project quarterly; Can you imagine how your company and team evolve yearly after this!

Take a good look at your assessment results. Find out what's going great and what needs a boost. This helps you know where to focus. Choose things that'll make a real difference. Maybe it's speeding things up or making customers happier. Go for changes that really matter Get your team involved. They might see things you missed. Plus, they'll be more on board with changes if they're part of the plan Break down what needs doing into small steps. Set deadlines so you stay on track. Having a clear plan makes it easier to get things done Keep an eye on how things are going. If something's not working, don't be afraid to make your plan.

To prioritize and plan improvement initiatives based on operational excellence assessment results, a SWOT analysis is an effective tool, especially in a team that takes a self-critical approach to evaluating the organization's current status. This analysis helps establish a clear position by identifying strengths, weaknesses, opportunities, and threats. Improvement initiatives should focus primarily on leveraging strengths to further enhance them and capitalizing on opportunities for growth and development. This targeted approach ensures that resources are used effectively to maximize impact.

My approach is aligned with the Shingo model in many ways. I concentrate on what perfection is but I soon realized that perfection changes. So, an important part of my model is re-assessing perfection. I concentrate on processes because I believe 99.9% of the time non-conforming results are due to processes and not people. Check out the EVSM video scheduled for release on July 31 2023. https://youtu.be/4R3-ngko7Fs

While you might be attempting to choose a framework, there may be instances where one is forced upon you due to contractual obligations. This makes the understanding step even more important because you need to be on the same page as your client when it comes to how the framework is used to manage the contract.

Imagine a manufacturing company conducting an operational excellence assessment to enhance its production processes. The assessment reveals inefficiencies in the supply chain and a lack of employee engagement. Understanding these findings, the company prioritizes supply chain optimization and employee training initiatives. Action plans are developed, incorporating measurable goals such as reducing lead times by 20% and increasing employee satisfaction scores. Regular monitoring and adjustments are made, fostering a culture where employees actively contribute improvement ideas. Over time, the company achieves streamlined operations, shorter lead times, and improved employee morale.

A utilização dos resultados da avaliação de excelência operacional é essencial para orientar a priorização e o planejamento de iniciativas de melhoria. Ao analisar os dados coletados, identifico áreas críticas que requerem atenção imediata, considerando o impacto nas operações. Estabeleço prioridades com base em métricas de desempenho, focando em oportunidades que proporcionarão os maiores benefícios. Essa abordagem informada assegura que os recursos sejam direcionados de maneira estratégica, maximizando os resultados positivos da melhoria contínua.

It is important to choose the best-suited framework to understand the best suitable framework for the organization's mission and vision. Mission and vision is indicating the company's approach for the upcoming year and decades. Baldrige criteria are one of the best tools to apply. Note: The mission and vision must be synchronized with the mindset of the key stakeholders.

I use a tool of my own design called an Enhanced Value Stream Map to measure the manufacture of a product. I took the Value Stream Map I was taught and enhanced it so it is able to measure manufacturing via many formulas I developed over many years. This allows me to define perfection and assess where I am compared to perfection. Many times, people see reality and cannot accept that their OCE is less than 40%. However, without accepting it you limit your ability to improve so you must embrace where you are in comparison to perfection. The EVSM allows you to plan Six Sigma projects knowing what your impact will be based on the clear opportunities in the EVSM. Then I use an EIC tool to prioritize and manage multiple projects.

To maximize operational excellence, it's crucial to analyze assessment results effectively. This involves dissecting data to pinpoint strengths and weaknesses, understanding root causes, and comparing against industry benchmarks. Utilize tools like SWOT analysis, gap analysis, or fishbone diagrams for deeper insights. By aligning findings with best practices, prioritize improvement initiatives strategically for sustainable growth.

In my experience, a successful analysis of operational excellence assessment results involves understanding criteria and key performance indicators. Categorize results, identify root causes, and prioritize areas for improvement based on impact and alignment with organizational goals. Engage stakeholders for valuable insights, develop SMART action plans, and strategically allocate resources. Establish a monitoring system to assess progress regularly, iterating and refining initiatives for ongoing improvement. This systematic approach ensures a comprehensive and effective pathway toward operational excellence.

We often look to assessments to tell us what we are doing wrong. While that is certainly of value, knowing what the organization is good at as well can be of equal value when forming action plans.

For the analysis of the assessment, it's mandatory to observe each minor detail and behavior. Data analysis can play a crucial role in this. Each data and assessment must be impacting on the 3 key main operational performance indicators Time, Cost, and Quality.

The assessment scores should not be averaged as this would mean nothing. In my experience, we highlight the median and mode as basis to analyze the results. There is no meaningful difference between the averages. While the data are numerical, its use is closer to being ordinal. The index score will always be either a 5 or 4 for example, but not in between.

Before prioritizing result for comprehension it's essential to fully study the assessment's findings -Where are the significant differences between your current state and desired outcomes? Use gap analysis -How does your performance compare to industry standards or best practices? Use benchmarking -What metrics were used to measure performance? Use KPI/KRA -What are the strengths and weaknesses? Use SWOT tool -Which factors contributing more? Use pareto analysis By carefully analyzing assessment results and applying a suitable prioritization framework, improvement initiatives can be implemented that drive operational excellence and achieve your organizational goals. -What is relationship between effect and cause? Use fishbone diagram

Defining improvement objectives is crucial for driving operational excellence. 🎯 By setting SMART goals, you ensure clarity and focus, which are essential for achieving meaningful progress. Aligning these objectives with your strategic vision and customer value proposition not only enhances stakeholder satisfaction but also ensures that every improvement effort contributes to the broader organizational goals. Using tools like a balanced scorecard or strategy map can make these objectives visible and actionable, fostering a culture of continuous improvement. 📊💡

It is important to set the objectives that aligns with the project goals. A few of them to consider below 1. Increase customer satisfaction by 10% next year 🪴 2. Reduce product defects by 11% in the next quarter 🥷🏽👩🏽🚒 3. Increase productivity by 12% in the next year 👌 4. Reduce costs by 13% in the next fiscal year 🎆 5. Improve employee engagement by 14% in the next 2 years 🤗🙏🏽 Track the progress and make adjustments as needed.

Once assessment is finished and prioritized potential improvement initiatives define the SMART KPI which are aligned with organization goals and objectives, and consider customer value proposition and stakeholder expectations. a)Specific-e.g. Decrease employee turnover rate by 5% within one year. b)Measurable-e.g. Increase the first-pass yield rate from 92% to 96% within 6 months. c)Achievable- e.g. Improve employee training completion rate to 95% within six months. d)Relevant and-e.g. Improve process efficiency to reduce production costs by 8%, supporting the company's overall profitability goals e)Time bound-e.g. Achieve a 10% reduction in production cycle time within 4 months Use Balanced scorecard to communicate improvement objectives.

The Project Charter in this YouTube video https://youtu.be/pwERyXGiaZI titled “Project Charter Template used for Lean Sigma and Six Sigma” will keep your team focused and avoid unwanted changes via the data cleansing method used in the video https://youtu.be/IsVatKA-uEk titled “Normal Data is not always usable”. Once you have clean data and your project goes from an investigation to an actual project use an I-Chart like the one in this YouTube video https://youtu.be/td89O5ywm9c titled “Histogram and I-Chart relationship”

Your objectives should match your big-picture vision. It's like ensuring your road trip aligns with your ultimate vacation dream. Everything needs to work together – your customer service, what you promise to deliver, and what your stakeholders expect. Think of a balanced scorecard or strategy map like your GPS. It keeps you on track and helps you share your objectives with your team. So, it's all about setting clear goals that take you where you want to go and ensuring your whole crew is on board for the journey!

The key part of the definition is the measurability of the objective. If something appears not achievable, that is ok... you are able to measure the objective anyway, and you might be surprised at what your people can accomplish!

Before defining the improvement objectives, it is important to communicate to the key stakeholders the initial results to establish an understanding that measures will need to be identified in weak areas. This gives them idea that some necessary improvements will happen and that this would also require time, effort and resources and they support to make it happen.

Using the EIC tool in my Youtube video https://youtu.be/HvjIWgC2lZ0 titled “Finding Project Opportunities and Prioritizing them” will help you organize the opportunities so you get the highest impact in the shortest time.

Steps to identify the Improvement initiative are - Conduct Brainstorming session for the team to get new ideas, explore new ideas and find the best solution for improvement considering the feasibility, cost, benefits and risk. -Use affinity diagrams, force filed analysis, why-why and brain mapping techniques -Need to understand how these improvements will fit into existing capabilities and resources. -Use prioritization frameworks to select ideas. Use Pugh matrix or decision tree tool for prioritizing

In my experience, establishing a solid measurement system is key in improvement implementation. It is not just about planning and assigning roles; it is about setting clear metrics and targets. This ensures we can objectively gauge our success post-implementation. Relying on data and facts rather than assumptions has proven crucial. It is about having concrete evidence to guide decisions. A well-thought-out measurement system is key—it tells us if we are truly making a difference.

Using the EIC tool in my Youtube video https://youtu.be/HvjIWgC2lZ0 titled “1/7 Program Management - Finding Project Opportunities and Prioritizing them” will help you organize the opportunities so you get the highest impact in the shortest time. The Project Charter in this YouTube video https://youtu.be/pwERyXGiaZI titled “3/7 Program Management - Project Charter Template used for Lean Sigma and Six Sigma” will keep your team focused

Execution is crucial step for any improvement implementation. -Develop a detailed implementation plan -Define project charter. -Develop business case. Determine what will be tangible and intangible benefits. -Business case should define scope, budget, roles, responsibilities, sponsor and support form top management. -Prepare Gantt chart for scheduling steps for improvement activities. -Prepare communication plan and circulate it among relevant stakeholders. -Define key performance indicators (KPIs) to track progress. -Plan regular reviews to assess progress and make adjustments as needed. -For monitoring and evaluation track average wait times, customer satisfaction ratings, and other relevant metrics to assess the effectiveness.

A weekly review of the EIC tool with management allows the Program Leader to get answers to what has been accomplished, the impact projects have had, what is next, and the expected impact when completed. My YouTube video https://youtu.be/XqHgO1RTgLQ titled “5/7 Program Management - A 5S project is taken from Active to Completion” shows you how to do this.

This should be a step described earlier in the article. COmmunication being so important, perhaps move to sooner in the article so people can ponder it while reading.

Do recognize where maturity already exists and communicate this to the whole organization to inspire and motivate. We need to celebrate success and we emphasize the need to continually improve in order to sustainably live the culture of operational excellence.

Assessments are worthless if the results sit on a shelf. Do something with them. Too many organizations suffer from paralysis by analysis.

A typical Value Stream Map as taught in a typical class does not do all these things. In my opinion the EVSM is the tool to use to identify opportunities, what perfection is as it changes, and where you need to focus to obtain perfection. It is the backbone of any continuous improvement program as it not only shows you where you are, where you should be, and how to get there, but it shows you when you are getting to the point where your cost benefit is not acceptable. If you want to see how all these tools interact to create a continuous improvement program that gets the most done the quickest go to my YouTube channel and watch the videos in series starting with the first video. Sigma Made Simple - YouTube.