Continuous Improvement Workshop: Kinexus Kaizen in Action

Introductions. Josh Cosner Director of Quality Kinexus IT Background Been with Kinexus 6 years Internal Consultant Lead Kinexus Kaizen Program Certified Six Sigma Black Belt Alex Grumbine Director of Business & Industry Kinexus Operations & Logistics background Been with Kinexus 4 years Business Consultant Co-Developed Kinexus Kaizen Foundation Certified Six Sigma Black Belt

Session Description. Continuous Improvement as a core business strategy has become an essential element to delivering results to customers. Come learn from Kinexus, practitioners in Continuous Improvement, to learn about their journey and roadmap to becoming a Continuous Improvement organization. Then, explore the tools and methods first hand with a practical application simulation led by Kinexus’ two Black Belts.

Key Takeaways. 1. Learning about Kinexus' Continuous Improvement journey 2. A roadmap for starting your own journey 3. Framework for solving complex business problems

What is ‘Quality’, ‘Continuous Improvement’, or ‘Kaizen’?. High level: A set of methodologies, tools, and culture designed to increase performance and customer satisfaction, via the continual improvement of products, services, or processes. Common Terms/Systems/Methodologies:  Lean: Minimizing waste and maximizing value  Six Sigma: Reduction of variation and defects (SPC, or Statistical Process Control)  Total Quality Management (TQM): Management system and approach to continuous improvement  ‘Belts’: Amount of subject matter expertise in Quality  Master Black, Black, Green, Yellow, and White

Kinexus Kaizen- What? Kinexus Kaizen is a Quality Improvement System developed by and for the staff at Kinexus. It is a meld of various Quality models customized for application in our environment. The main focus is based upon critical thinking, continuous improvement, and continual learning. Kinexus Kaizen utilizes various Quality tools and methods to systematically achieve operational excellence. Reference

Kinexus Kaizen- Why? Breaks down organizational silos Creates a common language for improvement Builds internal and external capacity (SME) Provides framework for solving the complex business problems we face everyday Creates an empowered and highly functioning, critically thinking staff Positively impacts culture by creating a fun place to work, increasing job satisfaction, and improving morale Impacts our community by delivering outcomes and high customer satisfaction Reference

Kinexus’ Quality Journey- Timeline. In 2011, Kinexus made the formal investment and commitment to be a Continuous Improvement organization Where did we start?  Partnered with Whirlpool Corporation who sponsored Green Belt training  Internal project work; continued partnership with Whirlpool Corporation for Black Belt training  Kinexus Kaizen; staff mentoring by MBBs; ‘Continuous Improvement Fundamentals’ for all Workforce staff  Robust White Belt Program for staff and partners; internal and external project work; culture number one  Green and Yellow Belt program development; further Black Belt training; people development and business process improvements and on

Kinexus Kaizen- Strategy 1)Knowledge a) Subject Matter Expertise b) Learning organization 2)Application a) Rigorously applying Quality b) Integration throughout the business 3)Value a) Value as defined by our customers b) Ensuring what we do matters Reference

Kinexus Kaizen- Strategy Two Key Areas 1) People a) Becoming a Learning Organization (Continuous Education) b) Professional Development in Quality c) Building and Developing the Quality Talent Pipeline 2) Business Process a) Integration of Quality Tools and Methods into the Business b) Versed in our Organizations Metrics c) Pulse of the Organization d) Make Better Processes Reference

Kinexus’ Quality Journey- Learnings. What have we learned along the way?  Most important part (often the most undervalued) is culture  Philosophy has to be not changing your work, but changing the way you do your work  Based around critical thinking; can’t accept the status quo  Empowerment: ‘granted’ vs. experienced  Critical thinking builds an agile, integrated organization  Speed vs. Depth; Lean on the side of speed (adaptability)  Work on things that matter (what keeps you up at night?)

Quality Roadmap 1. Ensure Executive Leadership Support: Alignment to Strategic Direction 2. Define Your Intentions- “Wheeler Questions” 1.What are you trying to accomplish? 2.By what method? 3.How will you know (what does success look like)? 3. Establish Your Core Quality Organization: Guided by Black Belt(s) or other Quality experts 1.Deployment Team: 1.Deployment Manager 2.Tactical Leadership 3.Communication/Change Management 2.Guiding Doctrine: Vision, Structure, Methods, and Training Plan

Quality Roadmap (cont.) 4. Establish Core Group of Champions: Internal influencers and change agents 1.First round of Foundational Quality Training 2.Set the cadence 3.Change agents for the culture shift 5. Internal Capacity via Foundational Quality Training for Greater Organization (White/Yellow Belt) 1.Fundamentals- practical and applicable to everyday work 2.Builds culture, establishes cadence, and provides common language 3.Delivered and developed by Black Belt(s) and/or Tactical Leadership

Quality Roadmap (cont.) 6. Internal Capacity via Quality Subject Matter Experts: Future leaders of your Quality organization 1.In-depth Quality training for the Lean/Six Sigma Green/Black Belt 2.Practical (on the job) and classroom training 7. Continual Project Work: Integration Into the Business 1.High impact and sponsor led 2.Measureable impact 3.Small and sequential work- build the momentum and get ‘little wins’ 8. Continual Education: Keeping Current and Relevant 1.On the job experiences (classroom, kaizen events, etc) 2.Benchmarking 3.Rewards, recognition, and communications: Top of mind

Q & A Does your organization have a Continuous Improvement culture? What is your experience in Continuous Improvement? What has worked? What has not? Do you wish that your staff had a Continuous Improvement mindset?

Practical Application Simulation Problem Identification/Area of Opportunity Steps 1.Opportunity for Improvement (Identifying the Gap) 2.Problem Clarity (Wheeler Questions) 3.Process Investigation (Cause and Effect Diagram) 4.Visual Representation of the Process (Process Map) 5.Prioritization and Actions (FMEA)

Opportunities for Improvement Gap between Current State and Future State Problem? >>> No! Opportunity for Improvement! Reference:

Opportunities for Improvement Example Current State Workforce Participation Rate is at 35% Gap, or Opportunity for Improvement 40% increase in Workforce Participation Rate Future State Workforce Participation Rate is at 75% Area of work: WPR Reference:

Wheeler Questions What: A set of questions intended to guide you in establishing the goal, method, and vision of a opportunity for improvement, process, or project. Purpose: Bring clarity to the intent and vision to your problem. 1.What are you trying to accomplish? 2.By what method? 3.How will you know? Bonus Question: 4. What does success look like? Reference:

Wheeler Questions- Example 1.What are you trying to accomplish? To increase WPR from 35% to 75% 2.By what method? Identifying relevant factors, mapping the process, and prioritizing where to work 3.How will you know? When data suggests we are at 75% WPR on a consistent basis Bonus Question: 4.What does success look like? Increased communication; higher customer satisfaction What else? Reference:

Cause and Effect Diagrams What: A tool used for 1) Robust 5 Why, and 2) Factor or variable discovery. Also a great communication tool. Purpose: To visually display the many potential root causes or variables related to a problem or process. Also known as: Fishbone Diagram, Ishikawa Diagram, C&E, Root Cause Analysis Tool When to use: Complex problem, process, or opportunity for improvement that has many factors, components, steps, or potential root causes Reference:

Cause and Effect Diagrams Examples Reference:

Process Map What: Process maps refer to a series of activities and procedures that define what a specific entity accomplishes, who is accountable, what are the inputs (Xs), and what are the outcomes for success. Purpose: To document, understand and manage current processes, the steps, decisions, actions and outcomes. Also good for training and communicating a process. Like a Flow Chart except more detail. Flow Chart + Cause and Effect Diagram = Process Map Reference:

Process Map- Example Example Reference:

FMEA What: FMEA, or Failure Mode and Effects Analysis, is a tool used to prioritize process improvement efforts Identifies: Process components; failure modes; failure effects; severity (internal/external); causes; frequency; controls; detectability; and actions. Then sets a priority via Risk Priority Number, or RPN Purpose: To document and systematically assess the risks and determining where and in what order to work. Reference:

FMEA- Example. Reference:

Thank you!