Master of Business Operational Excellence for Industry-Wide Capstone Projects
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Item Reduction of Missed Payroll Deduction (PDs) Payments for Parking Privileges on a Large University Campus(2012) Harris, DaleOver 20,000 employees of the University (FY2012) use fixed payroll deductions to pay for annual parking permits, i.e. over $870,000 per month in parking permit fees, however, on a monthly basis, there are between 160 and 300 missed payroll deductions. When deductions do not occur, customers must pay out-of-pocket, and there are costs to the University that result from each incidence of a missed deduction. Countermeasures proposed to correct the situation include: a. Development of standardized work protocol for customer service representatives; b. Error proofing of customer data entry; c. Elimination of appeal options for missed PDs; d. Multimedia reminder programs directed at PD customers. In September, 2012 the number of missed deductions fell 79.5 percent, and the average monthly loss of revenue from missed deductions has fallen approx. 79.8% from its six month average.Item End to End Supplier Replenishment(2012) McAdoo, Robert AllenThis large manufacturing firm has adopted a strategy of large scale outsourcing of machined components to focus on a higher value add business model of design/ assemble/test. Each operation has been challenged to increase on time customer delivery to be in excess of 95% while maintaining inventory levels at less than 40DSI. This project is to develop an improved value stream for the effective and efficient replenishment of machined components through the automation of communication and tracking of supplier replenishment triggers and processes. The project has resulted in a reduction in the number of days of inventory required to be held as well as a reduction in the elapsed time required to process, track and receive replenishment orders.Item Sustainability Gate Review: Fulfilling Talent Needs(2012) Lawson, J. EricSuccess rate on candidate searches for clients is only 35.7%. While the client benefits by seeing extra candidates, nearly 2/3 of our effort is waste. We are not being rewarded for all the value we provide. Firm is not helping owner realize his financial goals. (Success means we get the hire and earn the fee. There is no prize for 2nd place with current business models.) In spite of the fact that our success rate is well above that of the industry average (30%), we have set a goal of 80% success on searches. Our basic approach was to stop taking any business that we feel like we could not convert into a hire and to enhance the reliability of our processes. We have been successful on seven of seven assignments since instituting these changes. It's a small sample size but shows statistical significance.Item Improve Performance of Open Mentoring System and Develop Effective Mentoring Process for Sales(2012) Bookless, BradProject 1: Improve Performance of Open Mentoring System and Develop Effective Mentoring Process for Sales. Metrics and effectiveness of Open Mentoring (OM) tool are not on target. It is believed that re-launch of the system will yield more usage and satisfaction with the system. Also, there is no mentoring happening in the Sales organization. It is believed that development of a mentoring program for sales will reduce learning curve, increase employee satisfaction and grow sales. Countermeasures for OM system included re-launch, executive video campaign, and online training. Return-On-Investment was evidenced by both the increase in number of system engagements from 37 to 358, and by the number of employee profiles in the OM system increasing from 272 to 663. Also, the new popularity of the system motivated HR to roll out the program to the EMEA region. A pilot mentoring program was created in the sales organization involving 17 mentors and 23 mentees. It was decided that a group learning approach would be best to foster open communications among the group members. Four teams were formed, along with four one-on-one relationships. Activities of the group and pairings would be monitored for successes that would become best practices for phase 2. Multiple challenges and roadblocks occurred shortly after the sales mentoring pilot was developed, and it forced the participants to shift focus to other sales related corporate mandates and objectives. A major reorganization of the company followed, resulting in a promotion for me. As Manager of the Global Accounts (GA) Team, my focus was away from mentoring the larger sales force, as I am now responsible for development of six Global Account Managers and one Technical Manager. Two of the mentoring teams continue to meet and move forward with mentoring, but the shift in focus will limit the ability to determine results. Project 2: Improve Performance of Global Accounts Team Through Mentoring and Application of Lean Tools. Project Two began in August, 2012, following my promotion. The key issue facing the team is a lack of balance in contribution of the team members. It is believed that learning from project 1, along with lean tools learned in MBOE can assist in employee development and balanced revenue growth for the GA Team. 5-Why analysis was conducted to determine root cause for lack of GAM visibility, revenue balance, and unbalanced revenue contribution. Countermeasures have been developed and are being implemented for 2013. Also, a RACI analysis that was completed in 2011 but never implemented has been revitalized for clarification of roles and responsibilities in the sales process. This should lead to fewer lost opportunities and better coordination of the sales teams on future project bids. Visual management will be used to keep the team on track. All activities will track the 2012-2016 Hoshin Plan that was created from the Annual 5-year plan.Item Filling the Pipeline(2012) Harp, DarrenMy project was for a small fee-only financial planning firm to implement a new client on-boarding process. Our initial current state showed a great deal of re-work and waiting, due to errors. Most of this was resolved by implementing standard work and work leveling. We stabilized our process fairly quickly and have been able to start a new project to fill our pipeline. With the improvements we have made, we were able to increase our business even though we lost an FTE who we did not have to replace. The greatest win has been our team taking ownership of identifying and eliminating waste!Item Streamlining Triage During Peak Demand of 11A-11P(2012) Moore, CindiThe emergency department has experienced an increase in Left Without Being Seen rates and Length of Stay times, and a decrease in Patient Satisfaction scores. This resulted in a loss of over 2 million dollars of projected revenue in 2010, from visits that were not completed, and therefore not fully reimbursed. Changing the triage flow results in lab and xray results being reported during the patient's wait in the lobby, thereby decreasing the overall length of stay, improving patient satisfaction, and decreased left without being seen rates. End of year data demonstrates that the triage improvements had no substantial impact on left without being seen rates, length of stay times, or patient satisfaction scores.Item Performance Improvement(2012) Ujvari, NathanFrom 1/5/11 to 12/20/12, Line 2 produced 968,695 pounds of scrap while incurring 29,026 minutes of unscheduled downtime which equated into an annualized lost opportunity cost of $4,988,793. The primary sources for these losses originated from the packaging equipment which no longer was able to be serviced with original equipment manufactured parts as well as current processing speeds were exceeding the wrappers and case loaders engineering design throughput capability. To reduce the scrap and downtime losses, a line redesign was implemented that redirected the packaging flow from four lanes of product into two lanes with an overflow lane for additional throughput. By installing higher capacity equipment and redesigning the product flow, the line was able to reduce labor requirements and achieve an additional 10% throughput.Item Prescriptive Approach to M&A: Information Technology Integration Framework for Merger and Acquisitions(2012) Zuber, AaronHealthcare Co. has made 10 acquisitions over the last 2 years. The IT Merger & Acquisition Framework has averaged 9 months from "Day 1" to "Initial Integration Complete," exceeding its target cycle time of 100 days by an average of 6 months or 270%. With only 24 months to charge costs to the acquisition budget, time to market is a critical factor and the average time for basic integration is taking 9 months or 38% of this window. These latent implementations have led to significant increased costs with several acquisitions requiring multimillion dollar investments to standardize infrastructure years after their purchase. The Integration Framework must be managed end to end as a system of interdependent components in order to speed time to market, improve quality, and increase market share through quicker turnaround.Item Productivity improvement(2012) Kontely, KenA manufacturing plant increased top coat equipment labor productivity from \$21.83 per 100 lbs. to \$21.83 per 100 lbs. First pass yield was improved from 87% to 91% by creating problem solving A3's and eliminating the top 3 pareto defects. Equipment uptime increased from 55% to 88% by eliminating key equipment faults and establishing standard work for equipment cleans and change-overs.Item Managing the Shelf Life of Microorganisms through the Supply Chain(2012) Radabaugh, RobertProduct with a 2-year shelf life needs to be returned to the manufacturing facility to be reworked / reenergized at a substantial cost to the company. Currently managing product with an expiration date is not one of the company's core competencies. As part of company's long-term strategy the company is looking at multiple technologies that will produce commercial products that will have expiration dates. If this problem is not addressed it will be detrimental to these future growth platforms. Some of the countermeasures that were implemented to resolve the rework problem were analyzing and re-label product at distribution, changing manufacturing strategy to add microbes during packaging, implementing standard work during the forecasting process and reducing run size by manufacturer. The multiple countermeasures were successful in eliminating the rework in FY12.Item Data Integrity at Instrument Manufacturer(2012) Lisi, GretchenA medium size instrument manufacturer found many errors and missing information within their customer database. These gaps in information caused the sales force to disregard the data when making decisions on sales strategy. The gaps also caused delays in processing orders through-out the organization, from Sales through Shipping and Logistics. The problem had occurred for many years and was thought to be too overwhelming to correct, so it continued to get bigger. Prior to beginning this project, the entry personnel were encouraged to do "whatever was needed" to process the order as quickly as possible. What we've found since implementing the project, this lack of standardization has had the opposite effect - the orders take longer to process.Item Improving Quality of Workshop Development & Delivery(2012) Powers, EricaIn a time when K-12 schools are continually being asked to do more with less, organizations working with those schools must follow suit. This improvement project involves a not-for-profit organization working with a collaborative of school districts; providing specialized support, services and resources as districts work to increase student achievement and growth. The team involved in the improvement process had the overall goals of 1.) Developing and delivering high quality workshops to districts, and 2.) Increasing engagement of school district staff members who participate in the collaborative. The team developed and implemented a streamlined process for planning workshops that reduced delays and rework; implemented visual controls used by the team to clearly identify, track and communicate upcoming tasks and client engagement, while assessing future work and identifying potential risks; and developed standard work instructions for workshops and engagement tasks to identify and share best practices. These improvements contributed to a potential savings in resource time of over $80,000 over the course of the year, and provided opportunities for awareness and learning organization-wide for a team fairly new to lean thinking. In addition, 83% of the school districts that had below average student growth and attended our identified workshops during the 2011-2012 school year had achieved expected or above expected student growth by fall 2012.Item XYZ Agency ADA/504 Transition Plan Creation Process(2012) Johnson, SarahThe current ADA compliance monitoring process currently takes over 16 weeks to complete, has a first time quality rate of 12%, an 88% defect rate, and a 54% late delivery rate. XYZ Agency has created rework reduction goals, a Subject Matter Expert reduction process, and created standard work in order to remedy this situation and work toward continued improvement and long-term stability. Problem Statement: 16-week processing time, late submissions, and a 70% 1st time defect rate have caused late submissions and increased scrutiny in our ADA/504 program from our Federal oversight authority. XYZ Agency's goal is to publish a 100% accurate ADA/504 Transition Plan annually by December 31st.Item Reducing Unnecessary Overtime Expenses(2012) Goodwin, Charles J.Company payroll overtime expenses are approaching \$1Million annually in a mature industry with flat demand growth and increasing competition. In an attempt to maintain a competitive cost structure, an effort to identify and understand key sources and drivers of overtime expenses was undertaken. This analysis identified the building maintenance department as a key source of overtime and also identified several potential drivers within this department. Recommended countermeasures included 1) development of policy guidelines defining the appropriate circumstances justifying overtime use, 2) establishment of recurrent operator training on complicated equipment to reduce avoidable maintenance demands and 3) development of standard work for maintenance technicians to eliminate waste in the work process. The team developed and implemented a streamlined process for planning workshops that reduced delays and rework; implemented visual controls used by the team to clearly identify, track and communicate upcoming tasks and client engagement, while assessing future work and identifying potential risks; and developed standard work instructions for workshops and engagement tasks to identify and share best practices. These improvements contributed to a potential savings in resource time of over \$80,000 over the course of the year, and provided opportunities for awareness and learning organization-wide for a team fairly new to lean thinking. In addition, 83% of the school districts that had below average student growth and attended our identified workshops during the 2011-2012 school year had achieved expected or above expected student growth by fall 2012.