Lean Event 2013
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The document outlines a lean event focused on understanding lean principles, tools, and their application in organizations to improve processes and eliminate waste. It discusses the benefits of lean implementation, various case studies demonstrating its impact, and tools like value stream mapping and the 5S methodology. Additionally, it highlights the integration of lean with ISO 9001 for enhancing management systems and overall organizational performance.
Lean Event 2013
- 1. Welcome to our Lean Event!
- 2. What will we cover? • What is Lean? • How does Lean help an organisation? • How does Lean work with a management system? • Understand how Lean tools assist with process improvement • Addressing roadblocks to Lean and improvement • How does this fit with other improvement solutions • Q and A
- 3. What is Lean? Lean is a Business Improvement approach. Lean focuses on improving the value of a service by reducing, or eliminating, waste. As waste is eliminated, output improves, production time and cost are reduced. In summary, Lean is about identifying and eliminating Waste.
- 4. Waste Waste is any activity that utilises resources without creating value
- 5. Categories of Waste • Over production • Inventory • Waiting • Motion • Transportation • Over processing • Defects • Not utilising workers talent and knowledge “Typically less than 5% of activities are value adding.”
- 6. Are there any wastes in your organisation’s processes?
- 8. Benefits of Implementing Lean The benefits can be broken down into four main categories: • Operational Improvement • Administrative Improvements • Strategic Improvements • Improved culture in the organisation
- 9. The Lean Tool Box • Value Stream Maps • Process Balancing • 5S • Quick Changeover • Visualisation • Batch Size Reduction • Spaghetti charts • Level Loading • Fool Proofing • Work Cells • Point of Use Storage (POUS) • Lean Performance Measurement
- 10. Case study: Mining company Shift change The company considered that efficiencies could be gained during the shift changeover process • Team formed – 2 supervisors; 1 manager; 1 CI rep; miner; external facilitator; • Time analysis conducted for finishing shift and starting shift; • Repetition and “lost” time identified; • Value stream maps and swimlane chart confirmed the wastes; • Changeover process redesigned with union support; • Annual saving of $3 million.
- 11. Value Stream Map Type Testing: Current State Value Stream Map Represents information flow. Business Development Contractor Client Scheduling and Resource Planning Report Develop project plan for client Receive and process application Provision of Type Test Assessment Service Issue Report to client and invoice Lead time: 7 weeks 2 weeks 0.25 days 4 weeks 0.25 days 1 week 2 days Total time: Value add time: % value add time: 0.25 days 7 weeks 2.75 days 2.75 days 7.30% Value add time: 2.75 days
- 12. Value Stream Map Type Testing: Future State Value Stream Map Represents information flow. Business Developmen Contractor Client Scheduling and Report Develop project plan for client Receive and process application 1 day 0.25 days Provision of Type Test Assessment Service 2 weeks 0.25 days Issue Report to client and invoice Lead time: 2 weeks 2 days 1 day 2 days Total time: Value add time: % value add time: 0.25 days 2 weeks 2 days 2.75 days 22.90% Value add time: 2.75 days
- 13. Case study: Govt dept support application process The application process took 12 weeks • Team formed – manager; team leader, operators; service support dep’t rep; • Value stream map; Swimlane chart and value-add analysis; • Identified multiple checks that did not add value and work flowing backwards and forwards between departments; • Gained management and operations agreement to remove checks and waste activities along with redesigning some process steps; • Pilot showed the time reduced to 3 weeks.
- 14. DEVELOPMENT Swimlane Chart Start End Maintained and Upgraded Product Technical Architecture Set Product Strategy Set Product Requirements Code Application Maintain Application ACCOUNTING TECHNICAL SUPPORT OPERATIONS Fully Functioning Product Develop Bill of Materials Application Vision and Direction Components Exist? List of Required Components Yes Build Product Packaged Product Ship Product Problem Report Components Receive Components Customer Requirements Obtain Customer Feedback Components Product Information Shipped Product Support Product Search for Components Customer Customer Problem Customer Requisition Components Order Supplier Invoice Customer Invoice Customer Invoice Process Payment Payment Customer Report Problems Problem Resolution
- 15. Value-add Analysis Value Adding activities that add value from the customer’s perspective. Value Enabling activities are those that do not add value as such, but are necessary or required. Examples: steps needed to comply with regulatory requirements; or to provide information to the organisation. Non-Value Adding add any value. activities are those that do not
- 16. Swimlane Chart DEVELOPMENT Showing: Handover analysis and Value-add analysis Start End Maintained and Upgraded Product Technical Architecture Set Product Strategy Set Product Requirements Code Application Maintain Application ACCOUNTING TECHNICAL SUPPORT OPERATIONS Fully Functioning Product Develop Bill of Materials Application Vision and Direction Components Exist? List of Required Components Yes Build Product Packaged Product Ship Product Problem Report Components Receive Components Customer Requirements Obtain Customer Feedback Components Product Information Shipped Product Support Product Search for Components Customer Customer Problem Customer Requisition Components Order Supplier Invoice Customer Invoice Customer Invoice Process Payment Payment Customer Report Problems Problem Resolution
- 17. 5S Workplace Organisation Tool Sort Set in order Shine Standardise Sustain Meaning Housekeeping. The only things that should be in the workplace are files, materials and tools being used. Workplace organisation. A place for everything and everything in its place. Clean-up. Make the place shine. Best Practice. Make the above 3S’s become a way of life. Discipline. 5S becomes part of the way we do things around here.
- 20. Error Proofing Is a technique for avoiding and eliminating mistakes.
- 21. Example: 5S and Error Proofing Messy, time lost finding parts and wrong parts often picked. Cardboard template is “bill of material”. Wrong parts cannot be picked.
- 23. Discussion • Can you think of an issue in your operation that can be an opportunity for Fool Proofing?
- 24. ISO 9001 Lean ISO 9001 Lean - is an approach that combines the benefits of a structured management system with the powerful but simple tools of Lean.
- 25. ISO 9001 Lean – the concept Model Continual Improvement of the Quality Management System Management responsibility Customer & Stakeholder Measurement, analysis & improvement Resource management Requirements Customer & Stakeholder Satisfaction Product realisation Goods & Services
- 26. ISO 9001 Lean – the concept Model Continual Improvement of the Quality Management System Objectives established Management responsibility Customer & Stakeholder Measurement, analysis & improvement Resource management Requirements Customer & Stakeholder Satisfaction Product realisation Goods & Services
- 27. ISO 9001 Lean – the concept Model Continual Improvement of the Quality Management System Management responsibility Performance understood & waste reduced Customer & Stakeholder Measurement, analysis & improvement Resource management Requirements Customer & Stakeholder Satisfaction Product realisation Goods & Services
- 28. ISO 9001 Lean – the concept Model Continual Improvement of the Quality Management System Management responsibility Customer & Stakeholder Measurement, analysis & improvement Resource management Requirements Customer & Stakeholder Satisfaction Product realisation Goods & Services Objectives achieved
- 29. ISO 9001 Lean – the concept Model Continual Improvement of the Quality Management System Objectives established Management responsibility Performance understood & waste reduced Customer & Stakeholder Measurement, analysis & improvement Resource management Requirements Customer & Stakeholder Satisfaction Product realisation Goods & Services Objectives achieved
- 30. Lean Improving Business Performance Lean provides an extremely effective tool for: Focusing key members on the elimination of waste Identifying specific alternatives that will improve processing times or quality Provides a new lens for reviewing customer requirements Creating solutions that ‘bridge the gap’ between process and management.
- 31. Discussion: What may be some Barriers to successful implementation of Lean? Task: Please provide a response to the above question. Consider: • Skills • Culture • Areas of the organisation, Structure, Etc.
- 32. Our Approach for LEAN • Lean Implementation 5 day event – consecutive days or split over several weeks Training of CI Facilitators Action Learning approach Address an improvement opportunity and deliver outcomes through the training Event • Lean Blitzes 2 day blitzes Basic Lean skills applied to an operational problem • Applying Lean Concepts • ISO 9001 Lean • Lean Coaching • 2 day Introduction to Lean Concepts • Working towards a Lean Organisation • Application of lean to improve your management system
- 33. An organisational journey Sustainable Performance Focus on value Align the System Fix the basics
- 34. SAI Global Client Solutions and Innovation Client Solutions Services What How Our point of difference • Establishing sustainable performance • Organisational wide engagement in Performance Improvement • Tailored Systems for Business Performance Improvement • Facilitating, sustainable capability development • Structured program for organisational learning • Delivered by credible advisors with extensive experience in Business Improvement • Sole Australian Provider of an internationally recognised Leadership Framework • Demonstrated success in Organisational Change Management
- 36. Achieving Sustainable Performance Review Improvements Understand the System Systems Thinking Implement and Manage the Solution Approval to Implement and Accountability Assignment Understand Management System and Governance Criteria Apply Improvement Techniques Common Understanding of the System and Priorities Agreed i.e. System Outcomes Clarify Strengths and Opportunities for Improvement Allocation of Resources for Working ON the System OFI’s from Other Sources
- 37. Our Approach for Organisational Assessment • Performance Snapshot An on line survey against the categories and items of an Internationally recognised Leadership Framework. • • Organisational Performance Review Facilitated workshops against the categories and items of an Internationally recognised Leadership Framework. Organisational Performance Evaluation Experienced business assessors review the organisation against categories and items of an Internationally recognised Leadership Framework. • Structured Learning Self Assessment Facilitated Self Assessment methodology used to transfer the knowledge of an Internationally recognised Leadership Framework and the skill of conducting an organisational self-assessment
- 38. Benefits to Commercial organisations 20% productivity increase in one year 247% sales increase over two years 150% increase in tenders won 500% increase in share price over six years 25% sick leave reduction in one year 66% lost time injury reduction 80% product defect reduction
- 39. Other Improvement Methodologies Six Sigma Is a statistical improvement method applied to processes and management systems that reduces variation, removes process defects and improves efficiency. Cultural Change Is an business improvement methodology that engages staff through a structured approach of PDSA while addressing behavioral changes to assist with organisational improvement. Systems Thinking An improvement approach that enables a manager to clarify with staff the current state, establish measures of performance and enables line of sight for the participants to their contribution to the overall KPI’s. Organisational Transformation A customised approach to business improvement that provides a customer access to SAI’s wide range of individual and management services to address the issues that are hindering the Organisation to succeed.
- 40. Benefits for Organisations • This has brought the four facilities together in sharing data and common systems. • Greater focus on the system and not on the people when things go wrong. • Feel we now have control of the business again. Benefits for Staff • Staff morale has increased and they are in more control. • Staff are beginning to understand their role in the context of the wider organization • The staff have more confidence in using feedback systems. • Communication and awareness has increased by more than 90%
- 41. Leading and Managing the Change • Integrate the change into the organisation • Adopt and embrace the change • Understand the impact on the System • Assess how the system can be further improved • Review the progress of Continuous Improvement • Train Management and Staff
- 42. Our Approach for Leading Change Facilitating sustainable capability development Structured program for organisational learning Organisational wide engagement in Excellence and Continuous Improvement Establishing sustainable performance Leadership and Staff Coaching / Mentoring
- 43. Benefits to Leaders Provided me with solutions I needed to overcome issues being imposed upon me. Has allowed me to devolve responsibility down the line better. I look at requests for change through eyes of data and not just whims. Personally more open to ideas and suggestions. I have stepped back from ‘leading’ to allow others to try to make decisions. Benefits to Staff Improved staff satisfaction. Personal improvement plans now work. Staff members who previously were reluctant to be involved now line up to be part of it. Communication has increased and improved
- 44. Our Approach for LEAN • Lean Implementation 5 day event – consecutive days or split over several weeks Training of CI Facilitators Action Learning approach Address an improvement opportunity and deliver outcomes through the training Event • Lean Blitzes 2 day blitzes Basic Lean skills applied to an operational problem • Applying Lean Concepts • ISO 9001 Lean • Lean Coaching • 2 day Introduction to Lean Concepts • Working towards a Lean Organisation • Application of lean to improve your management system