Systems for Managing Business Opportunities

1. Systems for Managing Business Opportunities

2. Session Overview • What is a System? • Continuous Improvement Core Concepts • System Improvement Tools • Developing an Improvement Proposal

3. What is a System? • Written set of rules (a “Standard”). • The rules define practices that are universally recognised and accepted for assuring that the organisation consistently meets the needs of its customers.

4. Introduction to ISO9000 ISO9000 has 8 key principles: • Customer focused organisation • Leadership • Involvement of people • Process approach • Systematic approach to management • Continual improvement • Factual approach to decision-making • Mutually beneficial supplier relationship

5. Systems in Main Roads Highway 21 • The RoadTek Management System “HIGHWAY21” has been developed to document its Design, Development, Production, Installation and Servicing processes. MR Junction • Corporate Main Roads also has documented policies, practices and processes in Junction.

6. Systems Framework Construction, Maintenance, Linemarking, Bitumen, Plant Hire, Pavements Planning, Design, Survey, Infrastructure Delivery, Structures Customers Project Management Delivery Processes RoadTek Main Roads Business Management Induction, Training, Recruitment CustomerManagement, Marketing, Communications Budgets, Accounting Systems, Safety, Environment, ICT, RS&E Supporting Processes Capability Business Development Finance Technical Support

7. Continuous Improvement Core Concepts

8. Continuous Improvement The core concepts are: • Universal Responsibility • Customer Focus • Defect Prevention • Process Improvement

9. Universal Responsibility • This concept deals with the fact that Systems are not only the responsibility of Management but is everyone's responsibility. • Every individual in the business should be concerned with seeking ways to improve the delivery of products and services.

10. Customer Focus • Customers are increasingly becoming quality-conscious shoppers. They want to know up front that our business will meet their needs. • Systems help achieve consistency and enhances customer satisfaction. • It can minimise the risk that customer expectations are not met.

11. Defect Prevention • Defect prevention aims at minimising waste and saves money. • Defect prevention is concerned with catching and eliminating errors in product delivery.

12. Process Improvement • “Continuous process improvement” aims at ensuring that business activities and outcomes are measured, analysed and continually improved.

13. Construction, Maintenance, Linemarking, Bitumen, Plant Hire Planning, Design, Survey, Infrastructure Delivery Customers Project Management Delivery Processes Results RoadTek Main Roads Business Management Learning's Induction, Training Marketing, Communications Budgets, Accounting Systems, Safety, Environment, ICT, RS&E Supporting Processes Capability Business Development Finance Technical Support Enablers Business Improvement Program Inspections & Audits Improvement Process Customer feedback Improvement Processes Continuous Improvement

14. Making Toast

15. Business Improvement Tools

16. There are a variety of tools that are useful in improving processes and minimising wasted effort, for example, Business Improvement Tools • Brainstorming • The Five Why’s • Cause and Effect or (Fishbone Diagrams)

17. What does it do ? Brainstorming • Encourages open thinking when a team is stuck in “same old way” thinking • Gets all the team involved so that a few people don’t dominate the group • Allows team members to build on each others creativity while staying focused on their joint mission

18. The Five Why’s What does it do ? • The 5 Why’s is a simple improvement tool used to identify the root cause's of problems. Its purpose is to ensure focus is given to the cause of the problem and not just the symptoms. • While often used separately, it can be used in conjunction with other improvement tools such as Cause and Effect diagrams.

19. The Five Why’s (cont) How do I do it ? • Identify the problem • Ask “Why” the outcome has happened • Answer the question • Ask “Why” another 4 times or until there is no point going on further • Verify your answer by gathering further data if required

20. What does it do ? Fishbone Diagrams • Enables a team to focus on the content of the problem, not the history of the problem or differing personal interests of team members. • Creates a snapshot of the collective knowledge and consensus of a team around a problem • Focuses the team on the cause of the problem, not the symptoms

21. How do I do it ? Fishbone Diagrams (cont) • The Diagram resembles a fishbone in its construction - it has a box (the 'fish head') that contains the statement of the problem at one end. From this box originates the 'fish spine' or the main branch of the diagram. Sticking out of the spine are the bones where major causes are organized. Minor causes are placed along these bones. Experienced users of the diagram often add more branches..

22. How do I do it ? Fishbone Diagrams (cont) 1.  Prepare the basic framework of the Fishbone Diagram on a a whiteboard or a flipchart

23. Fishbone Diagrams (cont) • Define the problem that needs to be addressed and write it in clear and simple terms in the fish head of the diagram Late Pizza delivery on Fridays

24. Fishbone Diagrams (cont) • Define the causes and write these at the tips of the major bones. Machinery / Equipment People Late Pizza delivery on Fridays Methods Materials

25. Fishbone Diagrams (cont) • Tease out the Major Causes adding these ideas and suggestions to the smaller bones on the diagram. Machinery / Equipment People Staff don’t turn up Unreliable cars No money for repairs Small Ovens Cars are junks Drivers get lost Late Pizza delivery on Fridays Poor Dispatching Running out of ingredients High turnover Many new streets Not trained Inaccurate stock take Methods Materials

26. Group Exercise • The following issue has been raised from the business • Break into groups • Using a problem solving tool, determine the root causes of the issue and; • Determine the actions necessary to prevent reoccurrence of the issue • Present your Actions back to the group

27. Business Improvement Program

28. Evolution of ideas • Capturing ideas • Define underlying problem • Situation Analysis • “To Be” state • AMMS/BIS initiative

29. Opportunity Brief • What do you need to know? • Scope of works • Stakeholders • Time • Budget • Benefits • Improvement Opportunity Brief

30. Session Summary • Fundamental Elements of a Business System • Effective solutions require full understanding of underlying problem • How to Develop a Business Improvement Opportunity and Proposal

31. Questions?