FJA-301-06
               Leading Enterprises …
               Leading Enterprises …
            Identify and Avoid Unnecessary Costs
               Identify and Avoid Unnecessary Costs
            Maintain Superior Levels of Customer Satisfaction
               Maintain Superior Levels of Customer Satisfaction
            Optimize Organizational Performance
               Optimize Organizational Performance
                                 What Are the Barriers to Achieving the Above?
                                                                             
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                                                                          INC.
                                                                          INC.
                                                                                                                                  FJA-301-06
              What Are The Barriers To 
              What Are The Barriers To 
              Success?
              Success?
                                                            System Barriers
                                                            System Barriers
                                                            System Barriers
             Business flows                                 System Barriers                         Performance indicators
             Business flows                                                                         Performance indicators
             Business flows                                                                         Performance indicators
             Business flows                                                                         Performance indicators
             (inputs)                                                                               (outputs)
             (inputs)                                                                               (outputs)
             (inputs)                                                                               (outputs)
             (inputs)                                                                               (outputs)
                                                                  Waste
                                                                   Waste
              People and process                                                                      Quality
              People and process                                                                      Quality
              People and process                                                                      Quality
              People and process                               Focus of Lean                          Quality
                                                               Focus of Lean
              Material                                                                                Cost
              Material                                                                                Cost
              Material                                                                                Cost
              Material                                                                                Cost
                                                  Variability
                                                  Variability Inflexibility
                                                                        Inflexibility
                                                  Focus of 6
                                                                
                                                  Focus of 6            Focus of Theory 
              Information                                                Focus of Theory              Time
              Information                                                                             Time
              Information                                                                             Time
              Information                                                           Of                Time
                                                                                     Of 
                                                                              Constraints
                                                                              Constraints
                                                    
                                                              Feedback Loop
                                          Waste = High Cost                     
                                   Variability = Low Customer Satisfaction 
                                           Inflexibility = Sub-optimization
                                                                             
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                                                                          INC.
                                                                          INC.
                                                                                                                                  FJA-301-06
            The Manifestation of Barriers
             The Manifestation of Barriers
                                    “The Iceberg Analogy”
                                    “The Iceberg Analogy”
                                                                                                              Cost Of Poor Quality 
                                                                                                              Cost Of Poor Quality 
                                                                                                              “Above The Waterline”
                                                                                                              “Above The Waterline”
                                                                                                                                           *
                                                                                                           ~5% of Operating Expense*
                                                                                                           ~5% of Operating Expense
                                                                                                          Examples: 
                                                                                                          Examples: 
                                                                                                          •   Scrap
                                                                                                              Scrap
                                                                                                          •   Rework
                                                                                                              Rework
                                                                                                          •   Downtime
                                                                                                              Downtime
                                                                                                          •   Warranty
                                                                                                              Warranty
          Cost Of Poor Quality 
          Cost Of Poor Quality 
          “Below The Waterline”
          “Below The Waterline”
                                       *
      ~35% of Operating Expense*
      ~35% of Operating Expense
   Examples:
   Examples:
   •  Incorrect Billing
      Incorrect Billing
   •  Improper Tools
      Improper Tools
   •  Lack of Training
      Lack of Training
   •  Overtime
      Overtime
   •  Unclear Requirements
      Unclear Requirements
   •  Absenteeism / Tardiness
      Absenteeism / Tardiness
   •  Lack of Process
      Lack of Process
   •  Accidents
      Accidents
                                                                          * Philip Crosby & Associates Estimate
                                                                          * Philip Crosby & Associates Estimate
                       Does Your Organization Understand the Hidden COST of Poor 
                                                                             
                                                                             
                                                                      Quality?                                                      4
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                                                                          INC.
                                                                          INC.
                                                                                                                                  FJA-301-06
            What Choices Existed Before 
            What Choices Existed Before 
            BBPE?
            BBPE?
             Many Choices To Traditional Approaches, All Essentially The 
                                                                   Same
                                                                             
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                                                                          INC.
                                                                          INC.
                                                                                                                                  FJA-301-06
            Drawbacks to the Traditional 
            Drawbacks to the Traditional 
            Approaches
            Approaches
         Why Can’t You…
                Leverage existing people/practices
                Have management lead and train their employees
                Deploy in all areas at once, with focus on key problems
                Use your existing infrastructure
                Reduce problem solving cycles
                Generate results beyond traditional expectations
                Transform management and staff behaviors
              Many Of The Drawbacks To 6, Lean, etc Are Attributable To 
            The Overemphasis Given To Sophisticated, Rarely Used Tools.
                                                                             
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                                                                          INC.
                                                                          INC.