Tag Archives: operational excellence

Super7 Operations – the next step for Lean Operational Management

Super7 - the next wave for operationsSuper7 Operations, an innovative way of using Lean in back-offices, proves to be the next step after Lean Operational Management. Cooperation is a key ellement of Super7.

I have been always amazed by what is achieved when a production team, with operators and maintenance engineers working closely together, improves their own production line step-by-step. I’ve seen this many times, in my 15 years working as a Lean consultant. The first signs of improvement appear after the team gets training and starts applying the principles of Lean. The team finds the first quick wins, and immediately, this creates enthusiasm and momentum. The real transformation happens, however, when the team begins to truly cooperate. They become an improvement team, committed to improve performance, making optimal use of the strengths of each of the team members. When they really get going and continuous improvement starts, it’s just wonderful to witness.

I’ve been working as a Lean and Lean Six Sigma for a decade and a half now. Over the years, I’ve introduced the concept of improvement teams within a dozen production companies within The Netherlands, and a couple in Germany. In these multi-disciplinary teams, people from different departments work together on the single task of improving a production line, making it run faster and smoother, reducing down-time and break-downs, etc. As a team, they have the flexibility to cope with any production problem that can occur. For me, the people on the shop floor aren’t ‘resources’ that need to be ‘managed’, but creative and knowledgeable individuals, that can do great things, especially when they truly work together. Recently, I implemented these ideas in a financial service back-office in what I and others feel is an innovative way– the Super7 operations principle.

My book on Super7 Operations, with information on what Super7 Operations is, how it works and how you could apply it in your own work environment, is expected to be published within a couple of months. I’ll keep you posted – on www.super7ops.com!

Case study – Cooperational Excellence within a small consultancy team

Can you create excellence through teamwork in a consultancy environment? The best way to see if something works is to try it. So that´s what I did last year, with help of my colleagues: a pilot within the team that I was a part of at the time. Could we increase the quality of our individual assignments by applying the concepts of Cooperational Excellence? Read my in-depth case study in the White Papers section.

Summary
Consultants help each other, by contributing on each others projects. In a project, there may be activities that the consultant doesn’t like doing, or isn’t very good at. The solution is NOT that the consultant asks help with these activitiesIn a project, there may be activities that the consultant does an average job of – good enough, but he doesn’t excel in it. While this same activity is something that a colleague does excel in. The project will benefit if this colleague helps with this particular activityThe idea is, that every consultant has his own unique abilities – or their own activities they excel in – and the whole team will benefit if each consultant can make more use of their unique abilityWhen every consultant asks help for his/her project, based on the unique ability of the consultant he/she asks for help, the average time that each consultant uses his/her unique ability will increase

 

Conclusion

In those instances where it was possible to find a match between an activity and a unique ability, the pilot showed that this concept works

The difficulty lies in finding enough matches, so that everybody benefits

More details and quotes from participants can be found in my White Paper: Cooperational Excellence in Consultancy

Updated White Paper: Team Targets or Individual Targets for Super7 Operations

Super7 Operations is based of small teams, working on a common goal. What does that mean for their team targets and incentives?

A lot has been said about bonuses and target related incentives, the past few years. Do they lead to irresponsible behaviour and risk taking within financial institutions? Should managers from state-owned companies, or companies relying on state support, get a bonus if they meet their targets? Interesting questions; however, that’s not what this blog is about. How bonuses and incentives influence the way teams work together, especially in Lean organisations, now that’s something I’m very passionate about.

In my experience as a Lean consultant, I have often found that organisations struggle to maintain the initial rate of improvement: when autonomous production teams, lean quality circles or TPM-teams are first formed, the performance improves spectacular. 20%-50% increase in productivity or machine output is achieved almost every time. In some exceptional situations, I even encountered productivity increase of over 100%. Enough to exceed my clients’ expectations, but my goal was always to get to a state of ‘continuous improvement’. This is when the production teams continue to improve: relentlessly reducing waste, again and again improving their standards.

I strongly believe that financial team incentives can play an important role in making the final step towards continuous improvement. That is why I did this literature search: to find out if my believe is supported by reliable research.

My conclusion: Several publications, especially on effectiveness of ‘Operational Excellence teams’ (e.g. TPM teams, autonomous teams, six sigma project teams, etc.), confirm that team incentives are more effective than individual targets. However, I had to adjust my strong believe on two points:

  • Also individual targets have their merits, and a combination of team and individual targets may well be worth considering
  • Targets and incentives aren’t the only driver, nor the main driver, for success of Operational Excellence teams, and they should be part of an integral approach

Cooperational Excellence: what’s in a name?

Cooperational Excellence: People working toghether in small teams to create excellence in your operation. This may be nothing new under the sun for manufacturing and assembly plants: mini-factories, autonomous teams, u-cell manufacturing, quality circles etc. have become the standard in the last decenia. Especially in automotive, where off course Toyota still sets the standards (Toyota Production System).

In creating Service Excellence, these methCooods and organisational principles haven’t been applied so widely. Recently, I have implemented autonomous teams in a back-office of a large financial service provider, with even for me unexpected success: costs are down, queues and ‘inventory’ have almost completely dissapeared – which means waiting times for the customer times have also – and employees and management are enthousiastic about esponsiblitly on the ‘shop floor’ instead  top-down management control.

I have named this, the application of manufacturing-style teamwork in administration and service, cooperational excellence: working toghether in small teams in close cooperation, to achieve operational excellence.

If you want to know more, contact me, or just check regularly for new posts on this website!