Operational Excellence

Question 1

The aim of OpEx

Answer 1

*the continuous improvement call to action

= is the execution of the business strategy more consistently and reliably than the competition.

*Operational excellence is evidenced by results (keeping score)

*goes beyond the traditional event-based model of improvement toward a long-term change in organizational culture.

Question 2

Interpretations of OpEx

Answer 2

*based on earliercontinuous improvementmethodologies, such asLean Thinking,Six Sigma, andScientific Management

Question 3

What Companies do in pursuit of Operational Excellence

Answer 3

1 - They manage their business and operational processes systematically

2 - Invest in developing the right culture.

Proponents of OpEx are trying to sell it as a next step to other operational philosophies.

Question 4

Deciding what to Measure with OpEx

Answer 4

*Performance measure cause-and-effect dynamics:

1) Increase quality of product
2) Decrease costs
3) Increase on time delivery

Question 5

Quality

Answer 5

1)Customer (most damaging, might affect
goodwill):
-Warranty and Field failures

2) In house:
-Scrap and Reworks
-Appraisals (costly)
->Test
-> in line inspection
->Incoming inspection

3) Prevention:
-Process improvements
-Mistake proof devices
-source control
-Supplier certification

Question 6

Goodwill

Answer 6

Relationship or views of the company. Important to maintain good relationship with customers to keep goodwill.

Question 7

Product Flow

Answer 7

1)On time deliveries
2) Manufacturing Leadtime
3) WIP Levels
4) Product flow distance
5) Units produced per sq ft
6) Inventory turnover

Question 8

Customer Loyalty (dependent on )

Answer 8

1) Quality
2) Product flow
3) Production floor discipline
4)Team activities
5) Employees

Question 9

Quality

Answer 9

a)Quality at source
b)Process capability/ S{C
c) Minimal field issues

Question 10

Product Flow

Answer 10

a) On time deliveries
b) Manufacturing leadtime
c) Minimal WIP
d) Dfx= x=mfg , assy, test

Question 11

Production floor discipline

Answer 11

a)Housekeeping and organization
b) WIP locations
c)Process documentations

Question 12

Team activities

Answer 12

a)Process improvements
b)Trends and Pareto’s
c) Action plans
d) Presentations

Question 13

Employees

Answer 13

a)Certification
b)Education and training
c)Minimal turnover

Question 14

World class implementation and monitoring

Answer 14

1) Develop business strategy

2) Develop general and specific objectives (what)

3)Establish goals (how much and by when)

4) Develop implementation plan (how)

5) Develop a team organization for company wide improvement (who)

6) Deploy strategies throughout the organization

7) Monitor progress
-Constancy of team activities
-impact on key business measures

8) Provide reward and recognition for successful efforts

Question 15

HP’s Supplier Assessment Guide (1992 – still in use in Aguadilla)

Answer 15

1) Technology
2)Quality
3)Responsiveness
4)Delivery
5)Cost
6)Business stability

Question 16

HP Technology

Answer 16

Strategy:
a)state of the art component design and leading manufacturing design.

Expectations:
a)New technology
b)Mutual engineering
c)Strong commitment to R and D

Measures:
a) Provide leading edge technology
b)Timely new product introduction
c)Mutual engineering technology and design support.

Question 17

HP quality

Answer 17

Strategy: good quality

Expectations: Process controls (meet or exceed requirements)
a)continuous quality
b)demonstrate product reliabity

Measure:
a)Meet or exceed expectations
b) Demonstrated quality

Question 18

HP technology

Answer 18

Strategy:
*assuring constant source of supply while maintaining capacity flexibility

Expectations:
a)high level management
b)Support of sole source parts
c) long term support

Measures:
a)Timely response
b) Flexibility of purchase
c)Support of sole source parts
d)Field service support
e) demonstrated long term support