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Sample OGSM (5 year time frame)

• Strengthen leadership (in value) in the

adult bath soap market in North
Objectives
America.
• Maintain current product profitability.
• Increase sales by 12% every year
from 2023 to 2028 (market growth=
6%).
Goals
• Maintain A&P ratio at 8% to gross
sales.
• Keep COGS ratio at 40%.

Sample OGSM

• Increase penetration in independent grocers.

• Maintain dominance in the discount channel.
Strategies
• Invest in in-house manufacturing capabilities.
• Implement Lean to reduce working capital.

• Increase market share in IG from 15% in

2023 to 25% by 2028.
• Maintain category captaincy in top 10
Measures
discount channel accounts.
• Complete installation of 3 new lean
production lines by 2024, 2026, and 2028

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Communicate these

Vision
Why Mission Heart

Objectives
What Goals Head

Strategy
How Measures Hands

OGSM Cascade

Company Obj Goals Strat Meas

Division Obj Goals Strat Meas
Department Obj Goals Strat Meas
Section Obj Goals Strat Meas

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Company to Division
Company
Objective Increase Sales with a CAGR of 12%
Goal Gross revenue = 240M € by 2027
Strategy Enter Premium segment of ___
market in top 5 territories
Measure 35% growth of Premium products
Company to Division
Marketing Division
Objective Enter Premium segment of ___
market in top 5 territories
Goal 35% growth of Premium products
StrategyLaunch high-end versions of top 5
current products for mass market
Measure Launch one product per year
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Marketing Division
Objective Enter Premium segment of ___
market in top 5 territories
Goal 35% growth of Premium products
Strategy Launch high-end versions of top 5
current products for mass market
Measure Launch one product per year
New Product Department
Objective Launch high-end versions of top 5
current products for mass market
Goal Launch one product per year
Strategy Acquire brands X and Y, while
developing brands A, B, and C
Measure Project milestones:
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Balanced Scorecard
– General
Examples of
Frameworks
SCOR Model -
Specific

UP VSB OGSM

 Write an OGSM for the UP Diliman VSB

 References on next slide
 Vision, Mission
 4 Objectives (Customer, Financial, Process,
Organization – one each)
 1 Goal for each Objective
 4 Strategies (all Objectives addressed)
 6 Measures (all Strategies addressed)

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X-Matrix
https://kaizen.com/insights/article-hoshin-
planning-the-x-matrix-uk/

The Five Principles

Specify value from the standpoint of the end customer.

Identify all the steps in the value stream, eliminating whenever

possible those steps that do not create value (waste).

Make the value-creating steps occur in tight sequence so the

product will flow smoothly toward the customer.

As flow is introduced, let customers pull value from the next

upstream activity.

Begin the process again and continue it until a state of perfection

is reached.
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Flow
 Movement of products,
information and funds are:
 Synchronized
 Efficient
 All activities are value-
adding.

https://www.learnleansigma.com/guides/flow/

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One Piece Flow

 Producing one piece at a time. Each item is

passed immediately from one process step to
the next without stagnation.

Materials A B C Finished
Product

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Changeover (APICS)

 The work required to change a specific

machine, resource, work center, or line from
making the last good piece of item A to making
the first good piece of item B.

 Synonyms: set-up, turnaround time

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Typical components of a changeover

 Clean-up - the removal of previous product,

materials and components from the line.
 Set-up - the process of converting the
equipment.
 Start-up - the time spent fine tuning the
equipment after it has been restarted.

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Clean Up

 Minor: removing excess labels to shift

production of the same product for different
markets
 Major: disassembly, cleaning, and sterilizing of
the line components in the case of a
pharmaceutical product
 Clean or sanitize?

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Set Up

 Simple: e.g. adjusting the equipment to

correspond to the specifications of next
product, such as change paper size on multiple
tray printer
 Complex: e.g. changing non-adjustable parts to
accommodate the product, such as changing
the parts on a tube extruder

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Start Up

 Fine tuning the equipment after it has been

restarted, characterized by frequent stoppages,
jams, quality rejects and other problems, caused
by variability in the clean-up and set-up or by
variability in the product or its components.
 For example, cold machines need to warm up /cool
down, pressure needs to build up in compressors,
moving parts have to get to the right speed

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Typical Changeover sequence

Stop the Prepare Inspect

machine materials materials

Clear the Install Start-up

line parts machine

Retrieve Inspect Adjust

tools parts settings

Remove Prepare
Speed up
parts parts

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Service Industry Changeovers

 Hotel room
 Event venue
 Airplane
 Restaurant
 Dining (Service)
 Kitchen (Manufacturing)

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Single-Minute Exchange of Die

SMED (APICS)
The concept of setup times
of less than 10 minutes,
developed by Shigeo Shingo
in 1970 in Toyota.

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SMED Elements

 Internal Elements (activities performed while

the equipment is stopped)
 External Elements (activities performed while
the equipment is running)

http://www.leanproduction.com/smed.html

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SMED Process

Identify What is being done and how long do

elements they take?
Separate Can this be done as is while the
elements equipment is running?
Convert Can we change this to be done while
elements equipment is running?
Streamline How can we do those things faster
elements while the equipment is stopped?

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Separate

 Retrieval of parts, tools, materials, and /or

instructions.
 Inspection of parts, tools, and /or materials.
 Cleaning tasks that can be performed while the
process is running.
 Quality checks for the last production run.

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Convert
 Prepare parts in advance (e.g. preheat dies in
advance of the changeover)
 Use duplicate jigs (e.g. perform alignment and
other adjustments in advance)
 Modularize equipment (e.g. replace a printer
instead of adjusting the print head so the printer
can be configured for a new part number in
advance of the changeover)
 Modify equipment (e.g. add guarding to enable
safe cleaning while the process is running)

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Streamline
 Use quick release mechanisms
 Eliminate adjustments, Standardize settings; (e.g.
centerlines; shims)
 Eliminate motion, transport (e.g. reorganize the
workspace)
 Eliminate waiting (e.g. prioritize first article inspection)
 Standardize hardware (e.g. so fewer tools are needed)
 Create parallel operations (e.g. note that with multiple
operators working on the same equipment close attention
must be paid to potential safety issues)
 Mechanize (normally this is considered a last resort)

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