operational excellence ...an excersice of leadership, deals with the implementation of an op ex project, including the tactical part but also taking care of people througout the change process

1. Operational Excellence
an exercise of leadership
Luis Elizondo
2009

2. An example in Mexico …engineering center
• Created to service one customer only: a multinational company.
• Provides engineering services and new product development.
• Certified in ISO9001:2000.
• Full time Lean Six Sigma organization.
• National Technology Award, First Place 2003
• 1997 - 2008 20x inorganic growth.
Success story and good example of operational excellence

3. Success Factors
• Leadership development program.
• Talent recruitment process 10:1.
• Sense of belonging to a global team … 5000 eng./ 8 countries.
• Work follows a documented process, there are metrics on
productivity and on time delivery; every deliverable has a
quality inspection.
• There is a continuous improvement process in place :
1. Quality escapes are documented,
2. root cause analysis is conducted,
3. Lean Six Sigma projects are prioritized,
4. training needs are also detected.
• Leadership development includes Six Sigma full time jobs.

4. Customer Centric Processes and Metrics
Service Delivery to
Engineering Service
Request Customer
PM Q
New Development
η σ
OTD
• Simple processes.
• Everyone knows what he/she needs to do.
• Digital tools that facilitates work.
• Metrics defined from the customer point of view.

5. Metrics …operational definitions
• Efficiency: how are we using the resources that has been paid by
the customer …applied hours on man power or EVM (project status
vs. Plan)
• OTD: how many projects are we delivering on time …from the
customer request to the acceptance of the last deliverable.
• Quality: what is the quality of each family of deliverables measured
from the customer perspective (CTQ’s)
Quality inspection through templates and certified reviewers

6. Lean Process Design
1. Process mapping “as IS”.
2. Value analysis …Lean.
3. Eliminate, integrate, digitize …or Six Sigma.
4. Improved process.
Improvement is a cyclical process

7. Operational Excellence
1. Lean processes per service type …WBS.
2. Rigor in following up and measuring projects.
3. Develop a process to measure quality per deliverable
4. Dashboard …efficiency, OTD, quality
5. Continuous improvement process …Lean / Six Sigma.
Performance Leadership1 :
The leadership team is responsible for performance …
…through motivating the team.
1 Performance Leadership By Frank Buytendijk

8. Operational Excellence
_
+
• Increased productivity • Change resistance
• Improved control • Resistance to external control
• Potential savings
• What is it for me ?
• Asset creation
• Simplification of tasks
• Motivation / retention
The “sale” of the initiative with people
• Better understanding of
is a critical success factor of any
the business
project and is a leader’s responsibility

9. ¿ Why so many projects fail ?
Process
Processes
Lean
Lean Project Mgmt.
Metrics PMI
Metrics
Six Sigma
Six Sigma
Change Mgmt.
Project Mgmt.
CAP
PMI
• BPM • Operational Excellence
• BSC • Performance Leadership
• Performance Mgmt.
The leader guides the team through
the change process:
Why it is not enough ? • what is in for me ?
…where is the people ? • where are we going ?

10. Next Steps
1. Define training needs for the project team …Lean, PM, Six Sigma.
2. Develop a WBS per service / product type …dictionary.
3. Assess current status of processes …as IS.
4. Select a service family to begin with …impact, benefit.
5. Define for that service family how to measure efficiency and OTD.
6. Define how will quality be measured for each deliverable.
7. Define a continuous improvement process.
8. Develop a wish list of digital tools …set priorities.
How do you execute your project send a strong message