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Initiatives Review

Initiatives Review. Gemini Consulting. September 30, 1992. Identify initiatives from Focus Interviews and plant visits Review with owners and participants Evaluate on areas targeted Evaluate against critical success factors for initiatives. Approach.

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Initiatives Review

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  1. Initiatives Review Gemini Consulting September 30, 1992

  2. Identify initiatives from Focus Interviews and plant visits Review with owners and participants Evaluate on areas targeted Evaluate against critical success factors for initiatives Approach

  3. Collected Over 50 Potential Initiatives ! ? ! “Initiatives” Gemini xxx Could there really be this many?

  4. But Found that Only a Few were True Initiatives 53 IN 3 OUT And “TQM” is just getting started.

  5. Variety of areas being addressed Addressing issues at both divisional and local level Strong cost reduction focus Strong quality emphasis Strengths

  6. Initiatives Should Impact All Profitability Drivers Cost Improved Profitability Quality Revenue Customer Service Some initiatives address specific areas, others have impact across the board

  7. xxx's Initiatives Are Cost and Quality Focused Cost LTSC Improved Profitability ? Quality Revenue • QIP • TQM Customer Service ? Revenue and Customer Service are not targeted

  8. Matching Initiatives to the Value Chain Shows Untargeted Areas Mktg. & Sales Supply Chain Distri- bution PD&I Mfg. Quality LTSC LTSC QIP TQM QIP TQM Revenue and Customer Service are not targeted

  9. Clearly stated objective Formal implementation plan Defined benefits Formalized measurement Budget for implementation Monitoring mechanism Single accountable champion Successful Initiatives Have Strengths Against Each of the Following Critical Success Factors How do xxxs initiatives compare?

  10. Clearly stated objective Formal implementation plan Defined benefits Formalized measurement Budget for implementation Monitoring mechanism Single accountable champion Ranking Ongoing xxx Initiatives Against Critical Success Factors Shows Room for Improvement Weak Average Strong LTSC QIP Concerns center on formalized measurements, monitoring and implementation budgets.

  11. Strengths: Gave important visibility to cost reduction at xxx Has increased production capacity Concerns: Perceived in plants as project imposed from HQ - no buy-in at local level “a few people cut here - replaced by temps” Optimized at the plant level vs. across plants “headcount quota - got rid of four people” Difficulty in measuring results: measuring capital expenditure vs. increase in OI or capacity improvement “no one can tell you the results” Bottom line impact not clear “we haven't delivered anything out of it” FY93 and beyond goals need clarification “the savings or competitiveness aren't coming in” LTSC: A Good Start But Losing Direction

  12. Strengths: Provided first visibility for quality at xxx Sponsorship by Paul Sneddon from the beginning Concerns: Follow through was lacking “temporary success - not sustained” “intent was good” “shoved to the side due to day-to-day” Budget to provide needed training was not provided “very few people were actually trained” “no resource to continue the effort” Certification was viewed as irrelevant “many people considered certification a joke” QIP was not Effective Because of Lack of Follow Through

  13. Strengths: Focusing attention in plants one at a time Clearly defined benefits customer complaints per case reduction scrap reduction rework reduction Concerns: No budget to continue the effort at an appropriate level no RD/QA manager in some plants Addressing only limited areas No PD&I No Marketing & Sales No Distribution “TQM”: Early Signs are Promising but at Risk Due to Lack of Budget Will “TQM” go the way of QIP?

  14. Several projects underway / implemented that focus on cost and profitability MISYS implementation Cost record reports Cost model for Canadian Business Center SKU Review But these efforts are not coordinated under a single concept Cost / Profitability: A Virtual Initiative Are there other “virtual” initiatives out there?

  15. Employees have had little experience with successful initiatives Major areas of revenue and customer service have not been addressed PD&I, Marketing and Sales, and Distribution have not been addressed Critical success factors for existing initiatives are missing, especially: Measurement Monitoring Implementation budgets LTSC is losing direction and lacks local buy-in QIP had no follow through and could not deliver “TQM” is at risk because there is no implementation budget Cost and profitability are an unrecognized “virtual” initiative Findings

  16. Develop initiatives to empower the full value chain PD&I, Marketing and Sales, Distribution Build critical success factors in current and future initiatives Especially measurement and monitoring Develop revenue and customer service initiatives Revitalize LTSC Support “TQM” to ensure benefits are achieved Leverage ongoing efforts like cost/profitability through coordination Ensure investments achieve defined paybacks Take advantage of employees readiness to change Focus interviews 96% said time was right Large number of local “initiatives” Opportunities

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