Denis Leonard on Process Performance Management

Apr 5 2010 12:00AM | Permalink | Email this | Comments (0) |

By Denis Leonard

Lean and Six Sigma are some of the quality tools that we seem to hear everywhere today. GREAT BUT HOW DO WE USE THEM IN OUR INDUSTRY !  Many organizations find difficulty in translating the lean and six sigma concepts from manufacturing to construction. This is primarily due to the unique aspects of the construction industry including working exposed to the elements, the unique non-repetitive nature of the product in most cases (outside homebuilding), high turnover of employees and the changing production team on each project. But it can be related and it does work! Beyond these fundamental issues the problems faced in introducing these concepts are the same as in other industries such as gaining top management commitment, changing employee mindsets, driving understanding and education on the concepts, achieving implementation and success.  
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Mar 29 2010 12:00AM | Permalink | Email this | Comments (0) |

By Denis Leonard

OK, here is your task for the next quarter, reduce the evenflow cycle time and reduce construction defects..... off you go !

Well sucessfully creating and implementing change is not as easy that, it won't just happen! In fact neither is actually coming up with the fresh ideas and perspectives to prompt those changes in the first place! In todays blog I provide a model for change management and a list of change concepts to prompt improvement ideas.

First of all here is an eight stage process for implementing change referred to as Kotters Model.

1. Establish a sense of urgency
2. Create the guiding coalition
3. Develop a vision and strategy
4. Communicate the vision
5. Empower board based action
6. Generate short term wins
7. Conso...Read More

Mar 22 2010 12:00AM | Permalink | Email this | Comments (0) |

By Denis Leonard

Here is a list of some of the best books on quality and performance improvement.

A book that can help make the penny drop regarding the importance of change and improvement is
Who Moved My Cheese by Johnson & Blanchard

A great detailed book on quality tools is
The Quality Toolbox by Nancy Tague

A indepth look at the Deming Cycle PDCA is
The Improvement Guide by Langley, Moen, Nolen, Nolan, Norman & Provost

The best book to read on the behind the scenes at a company using the Baldrige Criteria (on which the NHQA is based) to drive improvement is
The Making of a World-Class Organization by Spong & Collard

The book by Spong and Collard shows how they improved two Boeing divisions (one manufacturing the other service) each by 400 points out of 1000 on the Baldrige scale, a huge achievement. See ...Read More

Mar 15 2010 12:00AM | Permalink | Email this | Comments (2) |

By Denis Leonard

There are a wide range of quality improvement tools and techniques, we have covered PDCA and DMAIC below are a list of some more. We will be touching on all of these in future blogs. At the end of this blog are links that will take you to free downloadable excel templates for many of these tools.

• SIPOC Suppliers, Input, Process, Outputs, Customers
• KISS Keep It Simple Stupid
• SMART (Metrics) Specific Measureable Accountable Realistic Time related
• SWOT (Strategic evaluation) Strengths Weaknesses Opportunities Threats
• PESTL (Strategic impacts) Political Environmental Social Technological Legal
• National Housing Quality Award NHQA
• Organizational Self Assessment
• Quality Management Systems
• Flowcharting (Process M...Read More

Mar 8 2010 12:00AM | Permalink | Email this | Comments (0) |

By Denis Leonard

PDCA and DMAIC.  

One of the most basic things to understand about process performance improvement is the Deming Cycle or Plan, Do, Check and Act (PDCA) This is also referred to as the earlier Shewhart Cycle which is Plan, Do, Study and Act.

The plan–do–check–act cycle is a four-step model for carrying out change. Just as a circle has no end, the PDCA cycle should be repeated again and again for the foundation of continuous improvement.
• P  Plan: Identify an opportunity and plan for change.
• D  Do: Implement the change on a small scale.
• C  Check: Use data to analyze the results of the change and determine whether it made a difference.
• A  Act: If the change was successful, implement it on a wider scale and continuously assess you...Read More

Mar 1 2010 12:00AM | Permalink | Email this | Comments (0) |

By Denis Leonard

SELF ASSESSMENT
Self assessment is in itself an important process which should be conducted at least annually to monitor the performance of your business. This can be done using the National Housing Quality Award Criteria for Performance Excellence. A key driver of quality management in the US homebuilding industry is The National Housing Quality Award (NHQA) which is open to all US homebuilders and trade contractors.  It represents the housing industry’s highest recognition for achievements in quality management. NHQA Criteria for Performance Excellence has been an important tool for hundreds of home builders and trade contractors to assess and improve performance on critical factors to business success. The NHQA is based on the Baldrige Criteria and the Baldrige National Quality Award which has been used all over the world for over 20 years....Read More

Feb 22 2010 12:00AM | Permalink | Email this | Comments (2) |

By Denis Leonard

Metrics are all about the effectiveness of your processes. There are four key types of performance that we can focus on in this blog. 1) product and service, 2) customer focused, 3) financial and market place and 4) operational. This can include focusing on for example just in time delivery, supplier and partner performance, product, service, results, steps, cycles, unit produced, units per employee/sales/invested capital, reduction in resources required, supervisory ratios, response times, levels of satisfaction or time to complete. All of which need to be benchmarked against the best in class, best in region, your competitor or ideally world class organizations so you know how well or badly you are performing! It’s all about FACT BASED MANAGEMENT not what you would like to wish or think.

IF YOU DON’T MEASURE YOU DON’T KNOW HOW ...Read More

Feb 18 2010 12:13PM | Permalink | Email this | Comments (3) |

By Denis Leonard

Surely the most important issue facing everyone in the homebuilding industry, indeed every industry today is improving performance. Reducing costs and leveraging resources to improve profitability.

In fact a new ASQ (American Society for Quality) survey (with 1000 respondents from around the world on Dec 15^th 2009) shows a majority of manufacturers are optimistic about a small economic uptick in 2010 at their organizations. However, respondents believe further cost-cutting measures will continue to be implemented. The results show a majority of respondents (64.7%) employed in the manufacturing sector predict their organizations will experience some financial recovery in 2010. 61.3% believe their organization will create processes to reduce costs

The top 3 tips that respondents would give to manufacturers to ensure revenue grow...Read More