Integrating OpEx Methodologies?

Why &
How

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Success! Case Study Deployment and Savings in a
Company

TPM / WCM
/ Operating
Leadership System
Lean &
Kaizen
Six
Sigma

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 Your Company’s Operating System

Daily Cost Digital Capital & Commercial

Management Deployment Transformation Equipment Excellence
System
(DMS)
(CD) (DT) Management
(CEM)
(CE) What is it?
All employees engaging in
Leadership & Steering

continuous improvement
Focused Quality Autonomous Machine Supply Chain
Improvement Management Maintenance Management
through a pillar system that is
Reliability
(FI) (QM) (AM) (MR) (SCM) embedded into our
organizational structures and
becomes the way we do
People Development (PD) business.

5S Workplace Organization (WO)

Safety & Environmental (SE)

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OpEx Methodologies – Compare or Combine?
Industries Most Famous Companies with
Methodology The "Enemy"
Applicable Success
Manufacturing or Service with General Electric, Samsung, 3M,
Six Sigma Variation and Defects
Useful Continuous Data Ford

Manufacturing (Multi-step
Non-value-added Toyota, GM, Honda Amazon,
Lean value streams such as
activities (8 wastes) Nike, FastCap
Assembly), and healthcare.
Eli Goldratt's fictional company in
Theory of Manufacturing and Supply
Bottlenecks "The Goal", Amazon, Intel,
Constraints Chain.
Lockheed Martin

Total
Organizational silos and Manufacturing (equipment Procter & Gamble, Nestle, Coca-
Productive
Equipment "losses" intensive) Cola
Maintenance

World Class Organizational silos and Manufacturing and Supply

Whirlpool, Unilever, Fiat Chrysler
Manufacturing all "losses" Chain organizations.

Software development and

Agile Rigid processes Spotify, Microsoft, IBM, Salesforce
project management
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 OpEx Methodologies – Compare or Combine?
KPIs Mostly
Methodology Strengths / Famous For Biggest Criticisms
Impacted
Excessive focus on complex statistical tools and a
Quality defects / Statistical Tools, Complex
Six Sigma few "superheroes". Not an "Operating System", no
complaints Problem-Solving
focus on organizational culture or change.
Standardization, Basic Problem- Too focused on simple tools, or sometimes
Lead Time, Flexibility,
Lean Solving, Culture of inapplicable Just-In-Time, following a Toyota "cult-
Productivity, Inventory
Improvement like" philosophy.
Overly focused on throughput and constraints,
Theory of Throughput, Delivery / Focuses resources on system
may neglect other areas. Too theoretical or
Constraints Sales constraints
inadequate application of the theory.
Too prescriptive and rigid, companies chasing
Total OEE Improvement, Pillar Team
OEE, Throughput, JIPM award instead of performance. Lack of
Productive Structure, Employee
Equipment Availability. advancement outside of a plant leading to mis-
Maintenance Development.
conception it's just a plant's system.
Broader Pillar Team Structure, Name misleading (Manufacturing). Lack of
World Class All Operational KPIs combining methodologies, flexibility and adaptability. Too prescriptive step-
Manufacturing (SQDCP) Engagement, Development, by-step leading to resistance. Companies chasing
Leadership Integration an audit score.
Project Cycle Time,
Adapting to changing Less effective in highly regulated industries.
Agile Customer Satisfaction,
customer needs and market Added risks. Not an "Operating System".
Velocity
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 The Course OpEx Methodologies Follow
TPM / Loss
Loss Intelligence Loss Prevention
WCM Eradication

Theory of Identify Subordinate Elevate

Exploit Repeat
Constraints Constraint and Elevate Market

Identify Map Value Establish Pursue

Lean Create Flow
Value Stream Pull Perfection

VOP / DMAIC /
Process
Six Sigma VOC Process Process DFSS
Capability
Mapping Stability

Culture Foundations Transformation Advanced Improvement

Behaviors, alignment, Problem-Solving, Performance Problem Prevention,
leadership Improvement, Systems, Stability Seek Perfection

Real-World Application beltcourse.com

 What is a Pillar?

Area of…
Sustainment

Expertise Improvement

Pillar*

Pillar Team: a cross-functional team

that focuses on a particular Pillar.
* Note: other names… Competence, Center of Excellence, Tool, or Practice. beltcourse.com
 Quality Management
Typical Team Members
What
Quality
• Quality assurance, control, Techs
audits, and improvement… to Operators

reduce the total cost of quality Quality

Material
Pillar Leader
Course:
Engineers https://www.b
Handler eltcourse.com/
Quality ci-and-pillar-
Team leader-
Leader curricula-sp
Leader

Benefits How
•A3 Practical Problem-Solving
•Eliminate the biggest losses •8D Problem Solving
(external quality, internal quality, •Root Cause Corrective/Preventive Action
scrap, waste and rework) •Kaizen, DMAIC
•Focus on proactive quality and •Six Sigma (Process Capability, Regression,
new products and processes. DOE)
•FMEA / APQP / QFD beltcourse.com
 Safety & Environmental
Typical Team Members
What
Team
• Compliance and improvement to Leader
reduce risks to our employees and Operators
Maint.
to the environment. Tech Pillar Leader
Course:
https://www.b
Safety eltcourse.com/
Leader Material safety-and-
Handler environmental
-leader-course-
page

How
Benefits
•Compliance, Behavior/Habits Change
•Engage 100% of your workforce •Audits, Opportunity Prioritization
•Eliminate the biggest risks •JDI Actions
•Go from reactive incident •A3 Practical Problem-Solving
•Root Cause Corrective / Preventive Actions
management to proactive safety
•Kaizen
planning
•FMEA beltcourse.com
 People Development
Typical Team Members
What Team
Leader
•Human Resources with emphasis
on training, development and Supervisor
Operators
recognition. Pillar Leader
Training Course:
•Establishes a comprehensive and Specialist
https://www.b
eltcourse.com/
Material
effective Development process HR
Handler
people-
development-
Leader leader-course-
page

Benefits How
•Engaging work environment and •ADDIE model
culture •On-boarding, Group & 1-on-1 Training
•Standard Work
•Reduce turnover
•TWI Job Instruction
•Move away from HR compliance •Performance Reviews / Recognition Systems
and firefighting •Development Goals beltcourse.com
 5S Workplace Organization
Typical Team Members
What Team
Leader
Maint.
•Improve workplace organization Tech Operators
and create a culture of discipline.
Office Pillar Leader
•Establishes a process that sustains Assoc. Course:

and continuously improves 5S Material

https://www.b
eltcourse.com/
5s-workplace-
Leader Handler organization-
leader-course-
page

Benefits How
•Improves efficiency and safety
•5S (Sort, Set-in-order, Shine,
•Discipline and engagement
Standardize, Sustain)
•Foundation for other
improvements •Kaizen
•Layered Audits
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 Autonomous Maintenance
Typical Team Members
What
Maint /
•Interaction between production Eng.
operators and production Tech
Operators
equipment around Autonomous Team
Pillar Leader
Course:
Maintenance, process design and Leader Material
https://www.b
eltcourse.com/
controls. AM Handler
autonomous-
maintenance-
Leader leader-course-
page

Benefits How
•Breaks silos between operations, •Autonomous Maintenance steps
maintenance, and engineering •Quick Changeover (Startup focus)
•Develops operators’ skills, •Kaizen
improves equipment condition,
and reduces losses. •Development of operators’ skills
•Layered Audits beltcourse.com
 Focused Improvement
Typical Team Members
What QM FI/CI
Leader Leader
•Provides project prioritization SCM Site
process, problem-solving Leader Leader
capabilities, and tools. MR Bottleneck
Pillar Leader
Course:
•Focuses on productivity Leader Leader https://www.b
eltcourse.com/
improvement DMS CD focused-
improvement-
Leader Leader leader-course-
page

Benefits
•Ensures focus on the biggest
opportunities
•Develops project management
skills
•Directs the focus of other teams
How
•Project prioritization
•OEE and Loss Analysis
•Problem-solving and leadership coaching
•A3 Practical Problem-Solving, Root
Cause Corrective / Preventive Actions
•Kaizen / DMAIC beltcourse.com
 Machine Reliability
Typical Team Members
What Operator

•Overall machine reliability, Maint.

Engineering Tech
including production and non-
production equipment. Maint.
Pillar Leader
Course:

•Activities to improve OEE. Leader https://www.b

eltcourse.com/
Maint. Maint. ci-and-pillar-
leader-
Parts Planner curricula-sp

Benefits
•Eliminate the biggest losses in
availability and performance, at
lowest costs
•Go from reactive maintenance to
predictive maintenance.
How
•Maintenance Types (Autonomous, Planned,
Preventive, Predictive).
•Storeroom Spare Parts Management
•Maintenance Planning & Scheduling
•A3 Practical Problem-Solving
•FMEA /Reliability-Centered Maintenance
•Kaizen / DMAIC beltcourse.com
 Daily Management System
Typical Team Members
What IT Tech
Team
•Systems and tools used to FI Leaders
communicate and performance, Leader
management of change, escalate Bottleneck Pillar Leader
Course:
opportunities, provide support. Mgr. Supervisors https://www.b
eltcourse.com/
Plant dms-leader-
course-page
Manager

Benefits
•Escalate issues and suggestions,
communicate and drive aligned
actions at the right level
•Build coaching and problem-
solving capabilities
How
•DMS Accountability Process (daily, weekly,
monthly huddles)
•Suggestion Systems
•Leader Standard Work
•Gemba Walks / Layered Audit System
•Root Cause Corrective / Preventive Actions
•Metrics tracking / Digital Transformation
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 Cost Deployment
Typical Team Members
What IT CD
Support Leader
•Supports project selection
process, quantifying potential FI/CI
Leader
improvements into $, and tying Accounting
Pillar Leader
Course:
into the budgeting and https://www.b
eltcourse.com/
productivity tracking processes Finance champion-and-
sponsor-
curriculum-sp

Benefits
•Alleviates other pillars with the
financial expertise of the
finance/accounting stakeholders.
•Provides more detailed analyses.
How
•Enhanced project prioritization process
•Quantify OEE and Loss Analyses into $
•P&L and Benchmarking Analyses
•Support with Standard Financial
Templates, estimated and actual savings
•Budgeting process beltcourse.com
 Capital & Equipment Management
Typical Team Members
What Site
Leader Project
•Identifies and prioritizes new
Leaders
equipment and capital needs, CD
Leader
optimizing capital design, Pillar Leader
Course:
planning, and installation. Process https://www.b
Engineer eltcourse.com/
Owner MR ci-and-pillar-
leader-
Leader curricula-sp

Benefits
•Stay ahead of the competition
•Lessons learned into equipment
and process design
•Launch equipment at high-
performance levels
How
•Opportunity prioritization process
•Equipment Purchase and Launch
•A3 Project Management
•FMEA, Poke-yoke and Andon
•Machine and Cell Layout design
•Design of Experiments for process parameters
•Digital Transformation beltcourse.com
 Supply Chain Management
Typical Team Members
What SCM
Leader Planners /
•Materials management, production Scheduler
planning, demand planning, Material
supply/capacity planning, inventory Handlers Customer
management, procurement, logistics, Service Pillar Leader
Course:
and warehousing Warehouse https://www.b
/ Logistics Operations
eltcourse.com/
ci-and-pillar-
leader-
curricula-sp

Benefits
•Improve on-time delivery while
reducing inventory and shortage risks.
•Reduce availability losses and go from
reactive scheduling to proactive
capacity planning and lead-time
reduction.
How
• Value Stream Mapping / Process Mapping
• Theory of Constraints / S&OP
• Line Balancing, Flow, Machine/Cell Layout design
• Warehouse Management
• Quick Changeover
• Kanban / Pull Systems, and Just-In-Time
• A3 Practical Problem-Solving, Kaizen,beltcourse.com
DMAIC
 Commercial Excellence
Typical Team Members
What
•Ensures customer needs are met Customer Sales
Service
and increases margins, customer
relationships, sales, and Design / Pillar Leader
Course:
innovation. Eng / IT https://www.b
Product eltcourse.com/
Leaders Div. / Site ci-and-pillar-
leader-
Leaders curricula-sp

Benefits
•Ensures freed-up capacity is filled
up with more sales, new
products/services, at higher
margins.
How
• Sales and New Product Development skills
enhancement
• Product Market Fit
• Digital Transformation
• Value Stream Mapping / Process Mapping
• Theory of Constraints / Sales & Operations Planning
• A3 Project Management / Kaizen / FMEA
• DMAIC / Regression / Design of Experiments
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 Digital Transformation
Typical Team Members
What Process
Owner
•Educating, trying, and adopting Other Pillar Project
Leaders
new Industry 4.0 technologies to Leader
improve certain areas of the Pillar Leader
Course:
System
business https://www.b
eltcourse.com/
IT ci-and-pillar-
leader-
Vendor Support curricula-sp

Benefits
•Accelerates the other teams’
activities, increasing efficiency,
adding value and reducing waste
in any multiple areas
How
• Standardize IT systems basics
• Support other teams with technology
investigation
• Opportunity prioritization for digital applications
• Process Mapping
• A3 Project Management / Kaizen
• Agile Methodology and Scrum beltcourse.com
 Leadership & Steering
Typical Team Members
What OpEx /
CI
•Provides the direction, priorities, Site / Leader
resources, encouragement, Divisional
Leader
support and structure. Pillar Leader
Course:
Pillar https://www.b
eltcourse.com/
Leaders champion-and-
sponsor-
curriculum-sp

Benefits
•Aligned organization towards
common goals, re-balancing
resources to steer the efforts.
•Get out of firefighting and micro-
managing - focus on the future.
How
•Strategic Planning Process / Site Deployment
Plans
•Identification of New Leaders
•Leadership and OpEx training availability
•Cultural foundations in place
•Steering Team Meetings
•Management of Change beltcourse.com
 Pillar Teams Drive Performance
Safety People Quality Service Profitability

OEE and Utilization

Sales, Productivity
Quality & Waste

Inventory Turns
Development

Delivery and
Engagement
Employee

Employee
Incidents

& Cost
Pillar
Safety & Environment H H M L L L L

Leadership & Steering M M H M M M M

People Development H H h H M H M

Focused Improvement M H H H M H H

Cost Deployment L L L M L H H

Daily Management System M H H M M h M

Legend: Impact
High Medium Low
Quality Management L h M H L M h

Machine Reliability M H M H M H H

Autonomous Maintenance h H M M

5S Workplace Organization M H M M L L L

Supply Chain Management L M M L H H M

Commercial Excellence L M M M H M H

Capital & Equipment Management H M M M M M H

Digital Transformation M M H M M
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Pillar Teams Help Address The Biggest OpEx Roadblocks
Link to Potential Countermeasures

https://www.beltcourse.com/leadership-culture-
and-change-simulation

https://www.beltcourse.com/Strategic-Planning-
Belt-Course-Page-CS

https://www.beltcourse.com/achieving-stability

https://www.beltcourse.com/a3-problem-solver-
course-page

https://www.beltcourse.com/kaizen-leader-
course-page

https://www.beltcourse.com/champion-and-
sponsor-curriculum-sp

https://www.beltcourse.com/ci-and-pillar-
leader-curricula-sp

https://www.beltcourse.com/blog?tag=opex+stra
tegy

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 Your Company’s Operating System

Daily Cost Digital Capital & Commercial

Management Deployment Transformation Equipment Excellence
System
(DMS)
(CD) (DT) Management
(CEM)
(CE) What is it?
All employees engaging in
Leadership & Steering

continuous improvement
Focused Quality Autonomous Machine Supply Chain
Improvement Management Maintenance Management
through a pillar system that is
Reliability
(FI) (QM) (AM) (MR) (SCM) embedded into our
organizational structures and
becomes the way we do
People Development (PD) business.

5S Workplace Organization (WO)

Safety & Environmental (SE)

beltcourse.com
The Right Operational Excellence Coaching
Program for Each Role
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 We Can Help!
• Do you know the critical skills that you and your leaders need to succeed?

• Do you know which ones you or your Leaders have NOT mastered yet?

• The first step is to assess where you are…

• The good news is we’ve made this very easy for you, with the most
comprehensive yet easy OpEx Skills Assessment available!

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Find the link in the Comments to access it.

And consider sharing with your network!
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