Strategic Planning and Introduction To LSS
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Seminar by: Behnam Adib<br />
Summer 2008
What we are going to cover<br />
today:<br />
Chapter I: <strong>Strategic</strong> <strong>Planning</strong> process<br />
<br />
<br />
<br />
<br />
<br />
<br />
What is <strong>Strategic</strong> <strong>Planning</strong><br />
Why do we need strategic planning?<br />
Self assessment before start<br />
Establishing the process<br />
Taking lessens from the past<br />
Focusing on what you do the best<br />
Chapter II: Six sigma/ Lean Six Sigma<br />
<br />
<br />
<br />
<br />
What is Six Sigma?<br />
Six Sigma process<br />
What is Lean Six Sigma <strong>and</strong> what is the difference between traditional 6 sigma?<br />
Examples / DPMO<br />
Chapter III: Continues Improvement / How to be unique in your industry?<br />
<br />
<br />
<br />
Using Collaboration tools<br />
Establish st<strong>and</strong>ards <strong>and</strong> adhere with compliances<br />
Establishing Work Processes with revision control
Brief experience highlights: (As of 2008)<br />
• 10 years experience implementing quality control<br />
<strong>and</strong> defect containment system with AIMS.CO<br />
company in companies such as<br />
• BMW<br />
• Honda<br />
http://www.bmw.com<br />
http://www.hondapowerequipment.com/<br />
• Hatters yacht http://www.hatterasyachtbrokers.com/<br />
• Brunswick group<br />
http://www.brunswick.com/<br />
• <strong>To</strong>mas Builds Busses http://www.thomasbus.com/<br />
• <strong>and</strong> etc… refer to https://Secure.aimsco.com
References:<br />
• <strong>Strategic</strong> <strong>Planning</strong> by Erica Olsen<br />
• Lean Six Sigma by Mike George / David Rowl<strong>and</strong>s<br />
• MYRNA associates http://www.ceo-strategic-planning.com<br />
• <strong>Strategic</strong> Management Dr. Ian Mackenchnie<br />
• Online Studies including marketing.org<br />
http://www.slideshare.net/nusantara99/strategicplanning-for-managers/
Chapter I: <strong>Strategic</strong> <strong>Planning</strong><br />
process
What is <strong>Strategic</strong> <strong>Planning</strong> <strong>and</strong> Why<br />
Do we need one?<br />
• A firm without strategy is like a ship without a Capitan<br />
• A manager is not supposed to see his team as what it<br />
is, but what it should become<br />
• <strong>Strategic</strong> planning is like exploring what route to take<br />
for best results <strong>and</strong> taking risk<br />
• Mission is what you are about <strong>and</strong> Vision for what to<br />
be<br />
• How to get there to achieve vision is strategic planning<br />
• Implementing strategic <strong>and</strong> evaluations <strong>and</strong><br />
measurement is all one process – it is a continues<br />
process
Self assessment before start<br />
• First thing first, we need to know where we are now. Be<br />
realistic/ Where do we st<strong>and</strong> compare with our<br />
competitive businesses? What are our week points,<br />
advantages? What do we have that are unique <strong>and</strong><br />
distinguish us from others? What <strong>and</strong> where are the<br />
points that we want to improve?<br />
• Where do we want to be in future <strong>and</strong> what customers<br />
want us to do <strong>and</strong> achieve?<br />
• How do we want to achieve our goals?<br />
• When can we start? Do we have dedicated resources?<br />
How to start?
Who is strategic <strong>Planning</strong> for?<br />
CEO/ CFO/ CIO?<br />
<strong>To</strong>p Managers/ Vice Presidents?<br />
Major departments?<br />
Small teams?<br />
All of above?<br />
Individuals also?
5 important strategic tasks<br />
• 1. First task is to develop strategic mission <strong>and</strong><br />
vision<br />
• 2.Set Objectives<br />
• 3-Provide ways for how to achieve the objectives<br />
• 4-Implement <strong>and</strong> execute the strategy<br />
• 5-Monitor <strong>and</strong> evaluate the execution
<strong>Strategic</strong> <strong>Planning</strong> Pyramid<br />
Action will produce<br />
results<br />
Results achieve<br />
<strong>Strategic</strong> Goals<br />
Results are<br />
achieved by<br />
taking right <strong>and</strong><br />
strategic actions<br />
Goals are<br />
achieved by<br />
producing key<br />
results<br />
<strong>Strategic</strong> Goals<br />
Implement Strategy<br />
Strategy Executes<br />
Mission<br />
Strategy will<br />
be<br />
implemented<br />
by<br />
establishing<br />
Goals<br />
Mission will be<br />
executed by<br />
establishing strategy<br />
Mission fulfill our Vision<br />
Vision is fulfilled by<br />
executing a right<br />
mission
Chapter II: <strong>Introduction</strong> to Lean Six<br />
Sigma
Six Sigma
Six Sigma quality improvement<br />
real examples
Six Sigma <strong>and</strong> DPMO
Six Sigma in Plain Language:
Six Sigma in Plain Language:<br />
Any Single Defect costs you money<br />
Costs you money…
Six Sigma - DMAIC
Six Sigma – Process Capability
Important themes of Six Sigma<br />
• Focus on Customer<br />
• Define <strong>and</strong> measure existing processes before<br />
implementation (Data <strong>and</strong> Fact Driven Management)<br />
• Measure <strong>and</strong> Analysis<br />
• Improve processes<br />
• Control
Examples of six sigma in billing<br />
customers
Examples of six sigma in billing<br />
customers – Continued…
Lean Six Sigma – Main concept<br />
We Want High Quantity<br />
We Want The Best Quality in Products<br />
And We Want them Fast
Lean Six Sigma – Main structure
Lean Six Sigma – in Plain<br />
Language<br />
• Internal <strong>and</strong> External factors.<br />
• Internal factors include the reduction waste in Work<br />
in Process (WIP) <strong>and</strong> reduction in excess inventory,<br />
which restricts the use of capital <strong>and</strong> has a negative<br />
impact on cash flow.<br />
• External factors include faster time to market <strong>and</strong><br />
increase customer satisfaction.<br />
• Time is the base factor – Time is Money – Time is<br />
value
Lean Six Sigma – Efficiency Calculation<br />
25
Lean Six Sigma – Efficiency Calculation
Lean Six Sigma – Efficiency Calculation
Lean Six Sigma – Efficiency Calculation
Lean Six Sigma – Efficiency Calculation
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