fkiQuality overview 2014 09

CAPABILITIES OVERVIEW
Who we are and what we can dofor your company.
September, 2014
Prepared by: Francisco Pulgar-Vidal, President, fkiQuality

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What is fkiQuality?
A consultancy dedicated to its clients’ operational excellencethrough consulting, training and coaching to sustain high performance.
Operational excellence means delivering goods and services that customers want – doing it faster, with higher quality and lower costs.
We support your company with methods that fit each problem, including Lean, Six Sigma, simulation, design of experiments and data analytics.
We have helped clients improve all types of operations.
Our consultants bring insight and skill, leveraging about 20 years’ experience in industry and consulting each.

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Sustained company prosperity
We believe that operational excellence is the basis for sustained company prosperity
Seek the prosperity of the business.
Improving the way your company delivers goods and services leads to reducing all sort of hidden costs, increasing your company’s productivity.
From this internal strength, your company will be poised to gain customers and grow in its market.
Prosperity starts with excellent operations.
Seek the prosperity of the workers.
Factories and businesses do not run themselves and savings do not happen on their own.
Managers and associates must want to make gains in productivity and innovation, improving their jobs every day.
So, create a production environment where employees are willing to apply their best efforts and start a spiral of growth.
Prosperity requires the contributions of all employees.
Based on the chain reaction by W. Edwards Deming.
Operational excellence
Reduce costs
Raise productivity
Increase market share
Stay in business
Provide jobs

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fkiQuality supports your company’s excellence in operations
We provide three main services:
1.Strategy implementation
2.Operational excellence through speed and consistency
3.Training to sustain excellence performance
We help clients across many industries, business functions and geographies.

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SIMPLEST: Simulate to implement strategies
Most strategic projects define a future state and a transformation route, but do not provide a way to test the route.
SIMPLEST can predict obstacles along the road, quantify their severity, and find less risky courses of action.
You will get a window into the transformation of your business.
SIMPLEST leverages the strengths ofsystem dynamics, process simulation, organizational change, data analytics and lean enterprise.
Typical strategic project
Simulate to implement strategies –SIMPLEST
For each change scenario
Define TO-BE and change route
Postulate change scenarios (sys dyn)
Simulate operating capability against KPIs
Simulate organizational friction and cost
Identify best course of action
Implement, monitor against plan, close gaps

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SIMPLEST – direct sales example
A direct sales company must increase revenue per sales consultant.
So far they have relied on direct incentives such as gifts for reaching personal sales targets.
Too bad their competition does the same.
How to earn sales consultantsloyalty?
How to activate this enormous potential?
First found out which factors influence most strongly a personal connection with the retailer.

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Begin with an influence model
An influence model charts the forces that influence sales consultants, their structure and organization and the resulting behavior: loyalty or opportunism.
SIMPLEST applies systems simulation to create scenarios.
Scenarios feed a process simulator used to adjust all business components to find the optimal conditions for loyalty and higher revenue per consultant.

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SIMPLEST then simulates all business components
Adapted from: BIM Reference Guide, Andersen Consulting, 1997
Business UnitStrategy
Total performance
Facilities & Layout
Equipment
Organization & Teams
Skills & Culture
Technology (hardware & software)
Processes(Technical & Business)
Many combinations and interrelations between components may be tried in pursuit of higher performance targets.
Influence maps and statistical analyses enable “testing” the organization in ways not possible before.

Operational excellence through speed and consistency
Financial services
Facilities management
Healthcare
Manufacturing
Retail
Supply chain
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We help clients solve five fundamental operational problems
Companies across all sectors are constantly challenged by these operational problems:
1.Long lead times to complete a task, deliver a product or generate new ideas.
2.Poor flexibility to respond to changing customer demands.
3.Too many defective products or service errors.
4.Excessive cost of operation.
5.Unacceptable operational risk.
We have met these challenges in processes representing all types of functions.
This is the result of constant change and companies’ difficulty to adapt rapidly.
Client needs change, as well as competitors’ threats, workforce skills, supplier quality, one’s own operating capability and the external environment.
Slow
Inflexible
Defective
Costly
Risky

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We help leverage your processes, people and technologies
Methods for improving processes include our own integration of time-tested tools such as Lean and Six Sigma.
Methods to leverage the potential of your teams include Organizational Change and Design. A key ingredient of our approach is education to create internal capacity for long-term change.
Methods to optimize use of technology include Design of Experiments.

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We go wherever our clients operate

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Our clients
Consulting for operational excellence
Strategic planning
Training
Coaching
Sectors represented:
•Construction
•Education
•Food & beverage
•Healthcare
•Heavy equipment
•Manufacturing
•Mining
•Oil & gas
•Retail

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Sample Financial ServicesProjects
Saved 1,000 non-value added hours per month and increased processed payments by 50,000 monthly for a multi-country financial services operation.
Recovered 1,700 non-value added hours per month and increased accounts payable capacity by 25,000 invoices per month for a shared services center.
Designed an operational strategy to support expansion of shared services to multiple countries for an international foods company.

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Sample Facilities ManagementProjects
For the regional headquarters of a major oil producer, reduced storage space cost by 90% in 2 years.
Redesigned the disposition of office furniture and equipment to maximize reuse and reduce disposal.
Accelerated the closing of financial liabilities left behind by outgoing contractors.
Improved spending coordination between authorized parties to guarantee funds for multi-year projects.

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Sample HealthcareProjects
Planned hospital facilities and operations for increased utilization and better patient flow.
Simulated multiple scenarios of hospital capacity and layouts.
Improved speed of medical supply chains: order to delivery.
Accelerated processing and reporting of medical diagnoses.
Designed and deployed methods for better data quality, analytics and visualization.
Deployed lean healthcarepractices.

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Sample ManufacturingProjects
Reduced scrap of worst-quality product from 7% to less than 2% in 3 weeks for a laminated woods manufacturer.
Reduced die manufacturing rework from 22% to 8% in 3 months.
For a maker of aircraft parts, shortened duration of a parts- smoothing operation from over 8 to less than of 4 hours.
Reduced to zero the number of customer defects for the highest volume product of a metal fabricator.
For a quick-response metal parts manufacturer, extended time between tool changes from 2 to 9 hours, letting off- shifts operate unattended.

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Sample RetailProjects
Improved fulfillment of packaged flower bouquets for an international florist.
For a petrochemical center of excellence, reduced compliance risk of international import-export shipping tasks.
For a nationwide hardware franchise, accelerated start-up and turn-around periods resulting in more open stores per year and incremental sales of $6m.

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Sample Supply ChainProjects
For a 3-tier automotive supply chain, improved management of production schedules reducing error rates, accelerating communication to and from suppliers and increasing inventory turns.
For a Gulf of Mexico chemical manufacturer, optimized pipeline flow volume resulting in $6m monthly additional revenue.
For a regional pipeline operator, lowered crude oil pumping costs through better scheduling that takes advantage of hourly electricity price variations.
Reduced energy spent to unload tanker ships by optimizing pumping procedures and taking advantage of the dock time allowed.
Coordinated all parties responsible for planning a pipeline operating budget, reducing changes and meeting contractual deadlines.

Educational Services
Executive level
Managerial level
Train to certify
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The job skills gap must be closed post-college
Fuente: The Economist Intelligence Unit report “Closing the skills gap: companies and colleges collaborating for change“ (2014)
The number of college graduates lacking key skills required for today’s jobs is very large.
In particular, companies indicate an unmet need for soft skills bigger than for technical ability.
Problem-solving tops the list.
Enter fkiQuality, which has provided problem-solving education since 2004.
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10
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30
40
50
60
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Planning / organization
Professionalism
Adaptability / prioritization
Job-related technical skills
Communication
Collaboration / teamwork
Critical thinking / problem solving

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EducationalCurricula
fkiQuality offers three educational curricula:
1.For executives responsible for creating high-performing organizations and launching programs of change.
2.For managers tasked with supporting the deployment of operational excellence and increasing the visibility of their operations.
3.For professionals at all levels seeking success in standard, international certification exams.

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Education for executives. Get the insights needed to create high- performing organizations and launch programs of change
Executive Curriculum
Leadershipfor results – Deming Method
4-days workshop
Hoshin Planning for company- wide change programs
2-days workshop, in- house

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Leadership for results –Deming Method
Deming taught management methods based on understanding a company as a system, the nature of variation, a better theory of learning and human psychology.
This workshop is based on Deming’s seminars on leadership and is presented by professionals experienced in this method.
4-days workshop.
Upon completion, executives will have gained a new view of the meanings of leadership, customer service and quality.
Syllabus:
A chain reaction from quality to prosperity.
Drawbacks of mainstream management methods.
Quality and the consumer.
New principles for leadership and education.
The operational definition: beyond meeting specifications.
Using standards and regulations.
Reaching a stable system of production: common and special causes of variation.
Reducing total cost from inspection to finished product.
Organizing to improve quality and productivity.
Improving quality of life.
W. Edwards Deming was the man credited with having the greatest influence in Japan’s economic success.

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Hoshin Planning for company-wide change programs
Hoshin planning is used to deploy high-level strategy down to managerial objectives and initiatives.
In this way department-level projects become prioritized and aligned with strategy to increase business value.
For this reason, Hoshin planning precedes successful company-wide deployments of any critical program of change.
Avoid starting with “just some training” or “just a trial here and there.”
Syllabus:
Validating company-wide strategy.
Refine and balance strategic improvement areas.
Identify and align management objectives.
Define projects of improvement and innovation.
Create a program of change with prioritized, phased projects.
Launch and staff projects, schedule education programs.
2-days workshop.
Upon completion, the organization will be ready to start an aligned program of change.
How do we fulfil our mission?
Which processes need fixing?
What are customers telling us to do better?

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Education for managers. Get the awareness and skills needed to support the deployment of operational excellence and increase operational visibility.
Curriculum for managers
How to sponsora Lean Enterprise – executive-level
1-day class
Howto deploy Lean practices – manager-level
1-day class
Business ProcessManagement BPM
3-days workshop
LeanSix Sigma –Green Belt
5-days workshop

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How to sponsor a Lean Enterprise. Education for executives.
A high-performing, Lean enterprise is not possible without executive action.
This is because it is the one responsible with creating the company-wide environment required for customer-focused operations.
Often becoming customer- focused means a profound change for the executives themselves.
Syllabus:
What is a Lean enterprise?
Maximize the flow of value and utilization of business resources.
Focus the entire enterprise toward its customers.
The enterprise as a system for the creation of value.
Seeking holistic, company-wide results.
Improve and innovate continuously.
Manage personnel towards total growth.
Make performance visible.
When do we become “a lean enterprise”?
1-day workshop.
Upon completion, executives will become effective Lean sponsors.

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How to deploy Lean practices. Education for managers.
A Lean strategy only becomes real at the business and operations levels through projects of continuous improvement and innovation.
So Lean deployment must be supported by managers in each department.
Syllabus:
The meaning of leadership.
Institute leadership at the managerial and individual levels.
Break down barriers that stop the flow of value across functions.
Create quality and pride in the work.
Establish metrics that foster quality, not just quantity.
Rediscover pride and happiness in daily work.
1-day workshop.
Upon completion, managers will be ready to guide and support the improvement of their own departments.

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Business Process Management (BPM)
Business performance changes over time due to variations of the operation itself and factors such as customers, competitors, employees, vendors and the economic environment.
BPM enables businesses to be aware of these changes and respond timely.
Syllabus:
Understand your business as an end-to-end system.
A hierarchy of metrics for higher performance: business, operations and process.
Monitoring performance.
Controlling processes.
Sustaining operational performance and continuous improvement.
3-days workshop.
Upon completion, managers will have learned how to monitor operations and sustain them at a high performance level.

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Lean Six Sigma – Green Belt
Lean and Six sigma are complementary, high-impact methodologies for building operational excellence in your organization.
This workshop integrates both methods fully, in a new way, in a workshop format that enables participants to gain new knowledge and develop new skills for problem solving.
Participants finalize the workshop by writing a project report which will be reviewed by the certifying Master Black Belt as a requisite to earning the LSSGB designation.
Syllabus:
Integrated DMAIC-Lean method for process improvement.
Workshop based on a company case with individualized problem solving tasks.
Numerical and statistical analyses of performance, MS Excel-based.
Financial analysis of business results.
5-days workshop.
Upon completion, participants will have gained skills needed to lead improvement projects using the Lean Six Sigma method.
Participants may earn the Lean six Sigma Green Belt certification and will learn to solve problems scientifically.

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Train to certify. For professionals at all levels seeking success in standard, international certification exams
Train to certify
International certification exam prepcourses.
Six Sigma Green Belt
Our alumni have 100% success in certification exams.
4 days + 2 half- daysfor exam- taking practice
Six Sigma Black Belt
Our alumni have 80% success in certification exams
7 days + 2 half- daysfor exam- taking practice
Our courses cover the entire “body of knowledge” or officialcontent as designed by the American Society for Quality(ASQ).

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Francisco Pulgar-Vidal, fkiQuality President+1 630 544 0116, fpulgarvidal@fkiquality.com
•Master black belt by IBM Corp., Black belt by American Society for Quality.
•Director of Chicago Deming Association for effective enterprises.
•Consultant for clients in manufacturing, construction, oil & gas, consumer packaged foods, retail, automotive, financial services, education and the government.
•Led projects in the Americas, Europe and Asia.
•Instructor for grad/undergrad classes at engineering and business administration colleges.
•Has trained thousands of professionals in Lean Six Sigma methods.
•Francisco is fluent in English, Spanish and French.
•MS Industrial engineering, Northern Illinois University; MBA, University of Illinois Urbana-Champaign.

fkiQuality overview 2014 09

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fkiQuality overview 2014 09