Mobilising the Organisation; Changing the Culture

Mobilising the Organisation; Changing the Culture

4,400 staff with a €1.1bn turnover. Multi‐year project

PMI worked with this organisation on a large-scale project around culture change ensuring the viability of specific business units. We developed a programme of coaching and support to the improvement team leader and executive team focussed on training and strategic, tactical and interpersonal coaching.

CHALLENGE

This organisation is a specialist manufacturer within an international group undergoing significant change.

The challenge was for this specific business unit to ensure their viability in the context of:

  • Shifting Group priorities
  • Variable performance history
  • A culture of complacency.

BENEFITS

  • A simple clear and attractive aim for the business was defined which all staff have endorsed and are working towards own objectives
  • A discernible culture shift towards one of leadership, involvement, pro-activity and performance
  • The language of improvement is heard around the business
  • Visible control and improvement of many processes
  • Use of systematic methods in everyday work across the business and in a wide range of scenarios
  • Current business performance has improved and foundations laid for the future.

PMI’S CONTRIBUTION

To provide support to the organisation, PMI coached and supported the improvement team leader and trained several specialist staff to Green Belt and Black Belt level

In Addition, support and coaching was provided to the Executive Team, as well as, a bespoke package of support including:

  • Training and coaching of improvement specialists
  • Specific project team support
  • Ongoing strategic, tactical and interpersonal coaching
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Demonstrating Improvement through Variation Reduction

Demonstrating Improvement through Variation Reduction

Service 4.2m households in Midlands & Mid‐Wales with a £761m Turnover

This utility company already had an active improvement programme but wanted to focus more on transformational processes and reducing variation. Using a combination of public, in-house training and senior management workshops we worked with this organisation to train their staff in variation reduction.

 

CHALLENGE

This utility company had an active improvement programme which successfully addressed efficiency and safety but as it was dominated by solely Lean activity it wasn’t transformational and had little reference to reducing variation.

The Senior Manager involved in the project knew from his experience that reducing variation is essential both in the detail of everyday processes and in helping managers make better decisions.

BENEFITS

  • The activity around driving these new methods and behaviours into their practice has led to increased awareness of better decisions and interpretation of their data.
  • CEO has requested wider business roll-out.

PMI’S CONTRIBUTION

PMI were engaged to train several staff at Green Belt level; utilising the benefits of both public and in-houser training.

The success of the Green Belt projects resulted in further staff being training to Black Belt level.

A further series of bespoke workshops were held for the wider senior management team which consisted of:

  • understanding their organisation as a system,
  • understanding how to better identify useful measures,
  • understanding variation in these measures.
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Business Process Re-engineering in Government

Business Process Re-engineering in Government

UK Public Body with 12,200 employees in 30 UK offices. €1bn funding income. A four year project.

CHALLENGE

This UK Central Government Agency has a wide-reaching Business Process Re-engineering programme which in order to be successful needed to:

  • Communicate and share a common vision and approach
  • Demonstrate sustainability of improvement through cultural change
  • Reduce complexity and duplication across functions
  • Fundamentally change the way the organisation performs its daily work

PMI’S CONTRIBUTION

PMI has been working with this government body for several years in support of their Quality Improvement Process Re-Engineering programme. Our work has involved extensive training delivery and support to their central team, the executive team and mentoring to improvement projects.

A significant cultural element has been present in the programme as the organisation seeks to reduce complexity and duplication across its various functions. This has involved establishing new working practices and communication protocols on a scale never before attempted.

projects have included

  • Improve the hazardous waste prosecution process
  • Improve the water sample prosecution process
  • Improve the incident contingency planning process
  • Improve the standard permit application process
  • Improve the new position (job) process
  • Improve the work allocation process

Throughout the Business Process Re-Engineering programme PMI have provided:

  • Bespoke training development and delivery
  • Tool kit provision
  • Extensive Green Belt training
  • Programme structure advice and guidance
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Approving Supplier Manufacturing Processes

Approving Supplier Processes

A UK luxury goods company selling in over 160 countries needs to improve their process for approval of supplier manufacturing processes.

CHALLENGE

This UK manufacturer of luxury goods has a well-earned reputation for delivering quality customer experiences and consistently review their processes in order to maintain these high standards.

It is essential, therefore, that not only their own internal processes are robust and effective but also their supplier network operates to the same high-quality standards.

Prior to expanding their manufacturing base to Asia and South America they performed a complete review of their supplier management processes and found high degrees of variation in the methods being used. They realised that for their expansion to be successful they needed to resolve these variations rapidly, in advance of the supplier management processes being deployed overseas.

PMI’S CONTRIBUTION

PMI launched an assessment of the current, ‘as is’ process with a cross-section of the practitioner community, facilitated through workshops and observation. It was found that there wasn’t ‘one way’ in which the process was being operated. There were multiple versions of the process documentation and the documentation allowed too much scope for self-interpretation.

PMI used a ‘synthetic’ process into which best practice from all the different ways of operating the process could be fed to create the ‘best-known way’ to perform the process.  This method generated great results and helped to gain consensus amongst the process operators.

  • Practitioners were involved in a series of workshops in which they researched and surveyed the process to allow them to agree and document the best-known way.
  • The Engineers who were required to operate the newly defined process attended classroom events so that they could practice the skills they need to manage and continuously improve supplier processes.
  • Working with the engineers we focussed on the skills required to operate the process and developed easy to follow training and reference materials for them to take away and refer to after the training.

We worked with the management team to ensure they secured the cross-functional engagement which was critical to the success of the project. By getting this buy-in and a sense of ownership with the management and process operators it ensured they were able to affect change and the necessary process improvement to achieve their high output standards regardless of location, country or supplier.

The company now has a system that is clear and coherent that can be deployed – the process is mapped, the process can be trained, it can be confirmed that people are operating it, consistently, throughout their global community.

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Accelerating the Approval Process for Pharmaceutical Manufacture

Accelerating the Approval Process for Pharmaceutical Manufacture

Multinational company whose products require approval from regulatory agencies before a licence can be achieved and product released to customers.

CHALLENGE

This approval process had been a bottleneck for the organisation, with delays of up to many weeks, leading to the need for high inventory levels and associated high costs.

PMI’S CONTRIBUTION

We supported the improvement team leader, trained several specialist staff to Green Belt and Black Belt level, and conducted custom process management workshops with relevant managers.

Lessons

Many organisations are required to certify their key processes, ranging from aerospace manufacture for safety, to schools for examinations. Such certification processes are often seen as poor relations to the main business of the organisation, but their poor operation can lead to waste, delays and direct and indirect costs.

Wider Applicability

People appreciated that the separate job of gaining approval is a process in itself, subject to many of the same characteristics as the core manufacturing process.
They saw the value of understanding the whole system of gaining approval, including the understanding of the regulator as customer. Once they recognised the opportunities, they were able to identify delays and rework that were previously hidden and address their causes.

I would think it probably took several months out of the process. That was
very vital time to us. It’s been a platform on which we’ve built. We’re
continually working in this area and I think that the groundwork that we laid
with PMI has really been the foundation for a lot (more) of what we’ve done.
CEO

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A Systemic Approach to Improvement

A Systemic Approach to Improvement

Leading Global Transportation Company, Revenues $26.7bn with 17,000 employees in 125 Countries

CHALLENGE

The client had a need to develop people and system capability in Process Improvement. This was to act as an enabler to developing and realising the overall Transformation ambition.

BENEFITS

  • Recorded auitable bottom line saving of over $1.3bn.
  • Market share increased 3 fold due to the improvement in customer service.
  • Practical skill development and an altered perception of their business as a consequence of our training and methodology.
  • Through identification of customer’s real desires they have been able to improve their processes and enhance their customer experiences so that even throughout a period of global recession, they were able to retain and increase their market share.

PMI’S CONTRIBUTION

PMI’s intervention centred on the design and delivery of bespoke facilitation of workshops and coaching with training from shop floor to Broad Level across the globe. This ranged from process mapping and definition workshops to Green and Black Belt programmes and included extensive 1 to 1 coaching and consulting to senior executives in the deign and implementation of a global Transformational programme.

PMI also supported the client’s business Improvement programme which centred on empowering and equipping employees around the world with common methodology, tools and skill to deliver continuous Systemic business improvement.

Cultural change was at the heart of the objective; specifically moving from a “fire lighting” problem solving approach, to one of continual improvement where the organisation is efficiently orientated around its customers.

PMI’s extensive experience in improvement training and learning delivery was used to customise the learning experience to suit the client’s specific needs. Each delegate received not only world-class classroom training but also extensive support such as project coaching and access to an e-Learning suite as a alternative learning vehicle.

One particular area supported is the customer contact centres. These centres deliver external customer’s process requirements such as shipping permits or service queries. They also supported internal ‘back office’ processes such as issuing invoices, chasing debtors and arranging contracts. PMI trained their staff in process improvement methodology so that they were able to make dramatic efficiency and effectiveness improvements and create a culture of continuous improvement advancement.

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A Project Case Study – Reducing Manufacturing Support Costs

A Project Case Study – Reducing Manufacturing Support Costs

Context

The client is a leading international manufacturer of glass and rock fibre insulation products. This is a mature technology, with competitive advantage being gained from relentless attention to the details of materials and production processes. PMI has been training engineering and related staff, and supporting key projects to achieve their goals.

CHALLENGE

Glass fibre insulation is produced by fibres generated by molten glass passing through a “spinner” that has 13-14,000 holes. These spinners are changed every 4-5 hours, and the project focussed on their manufacture and refurbishment. Prior to the project about 60-70% were made in-house, the balance outsourced. It was felt that there was capacity to make all of them and have further capacity to support the rest of the group, but this was not being realised.

PMI’S CONTRIBUTION

The project was the focus of a delegate on PMI’s Green Belt course. He led the team in applying the PMI Improvement Cycle, initially concentrating on the definition of the processes behind the problem. This highlighted new aspects to investigate, and the team worked though all the parts of the Improvement Cycle, understanding the variation, carrying out tests which validated the theories. and then implementing the changes.

Achievements

  • Specific changes made as a result of the trials produced remarkable
  • Improvements, eventually cutting the processing time from 2 hours to 10
  • Minutes. The financial savings amount to €500,000 per year on outsourcing.

Lessons

The discipline of the Improvement Cycle forced the use of Plan Do Study Act, to investigate cause and effect, and of the 5 Why analysis for verification, to focus on solutions to test, rather than jumping to solutions. The full team was involved early on, and this proved invaluable in providing a breadth of experience to address the questions. Control charts were developed and made live, so that all could see the evidence building.

Wider Applicability

This project demonstrates once again the validity of the whole PMI approach, ranging from PDSA for learning, through the Improvement Cycle as a structure and discipline for relevant use of the tools, to live use of visible control charts to understand variation. As we have often seen before, one successful project can produce cash savings that more than pay for a substantial improvement effort. It is also a typical example of savings achieved during a training programme by many delegates over the years.

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An ERP to support the way the work, works

An ERP to support the way the work, works

PMI partnered with a UK based workspace, educational and catering furniture manufacturer to define the way their work works, before the selection and implementation of a new ERP system.

AS A PRIORITY WE:

  • Identified the ‘As Is’ processes

  • Captured the non-value add activities and

  • Identified the desired improvements for the organisation.

CHALLENGE

Define, design and implement the core business processes as part of the upgrade of the current ERP system.

Following many years of utilisation, the organisation’s current ERP system had reached the end of its support cycle.

The current system was utilised from the point of sale enquiry through to the installation of goods and invoicing. PMI was asked to work with the business to understand and define the interactions between each function, as well as the processes within them. In identifying the desired improvements, the objective was to define the ‘To Be’ processes for successful ERP implementation.

PMI’S CONTRIBUTION

Following an initial workshop with the Director heading up the project to define the end-to-end scope, PMI carried out a series of intensive workshops with the system leaders and their teams. This involved defining the ‘As Is’ processes, discussing the challenges regarding current practices and capturing theories.

During the definition of the ‘As Is’ processes, we were able to identify business specification and functional requirements in each area. These were consequently implemented and actioned by the wider system. They included the removal of non-value add process steps for Finance and joined-up identification methods across functions which saved time and reduced opportunities for error.

PMI were able to work with the business to move forward with focused improvement projects.

Using PMI’s Improvement Methodology we gave the business a mechanism to safely test improvements in a single area, mitigating the risks to the business whilst engaging the people in that function.

PMI supported the development of detailed specification and requirements. This extended to the development of the RFP for vendor and system selection.

BENEFITS

  • ERP support system that is designed around business needs, not system requirements
  • Established features and specification based on the ‘To Be’ processes
  • Greater control over implementation as areas of impact are defined and informed
  • People in the organisation felt involvement and ownership of the new ERP system
    focused improvement projects created sustainable ownership
  • Quick wins identified had a positive impact.
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