Lean implementation proposal ver 2
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The document proposes implementing a Lean approach at a lab to improve productivity, reduce waste, and establish a Lean culture. It recommends a hybrid consulting model involving diagnostic assessments, training staff on Lean tools and methods, conducting improvement projects under consultant guidance, and cultural changes to sustain results. This approach aims to quickly generate results to gain buy-in for a longer-term Lean transformation applying the culturalization model to all staff. The proposal compares models and outlines the consultants' roles, credentials, and examples of significant ROI other clients have achieved through Lean interventions.
Lean implementation proposal ver 2
- 2. ENABLING OPERATIONS TO ACHIEVE MORE WITH EXISTING RESOURCES LEADING TO: • Reduced Lead Time • Increased productivity (minimum 20%) • Increased Equipment Performance • Less Rejects and rework and much more….. 2
- 3. OBJECTIVES • To move 80% of Lab staff who have limited Lean culture to commitment level and be involved in Lean projects • To move 20% who have not yet attended any lean training to be sufficiently motivated, to be trained and involve in projects • Achievement of relevant Departmental Critical Success Indicators • Help achieve 20% productivity improvement • To turn Lab into Lean Model area 3
- 4. LEAN CULTURALIZATION MODEL (6 months) Lean Awareness Lean Innovation Lean Culture Diagnostics & Planning • Value Stream Mapping • Lean maturity Assessment • Gap analysis for: • Lean Implementation • Lean Culture • Skills & Training • Identifying Improvement opportunities and turning Critical Success Indicators into projects • Communication and setting up of Lean Implementation Structures & Metrics Training & Projects Mentoring • Training in necessary tools such as: • Team Leadership tools • Motivational tools • Waste Reduction • Kaizen methodology • Quick Changeover • Pokayoke • Kanban & Inventory Management • Bottleneck Management etc. • Hands-On coaching on projects and improvements • Team Leadership Coaching and motivational mentoring • Handling resistance to change in projects • Periodic Review by teams with management team (weekly) • Progress monitoring by consultant with teams and management team Culturalization • Establishing Standardized Lean Practises and Leadership roles & Management Involvement • Establishing Lean Continuous Improvement Cycle • Establishing Gemba Meeting • Addressing change resistance and motivational issues on continuing Lean as a culture • Rewards & Recognition • Best Practice Sharing ONE MONTH THREE TO FOUR MONTHS ONE MONTH Support & Training is for a maximum of 80 persons 4
- 5. CONSULTANT LED PROJECT MODEL (2 months) Lean Awareness Lean Innovation Lean Culture Diagnostics & Planning • Value Stream Mapping • Lean maturity Assessment • Gap analysis for: • Lean Implementation • Lean Culture • Skills & Training • Identifying Improvement opportunities and turning Critical Success Indicators • Identify one critical Lean Project towards CSI achievement • Plan project requirements & support team Training & Projects Mentoring • Hands-On project led by consultant and improvement actions are implemented by support team • Handling resistance to change in projects • Periodic Review by teams with management team (weekly) • Progress monitoring by consultant with teams and management team • Periodic Review by Department managers • Training on Tools as OJT • Culturalization • Establishing Standardized work and metrics for sustainability of project results TWO WEEKS ONE MONTH TWO WEEKS Support & Training is limited to project support team – estimated 20 persons 5
- 6. HYBRID MODEL (3 months) Lean Awareness Lean Innovation Lean Culture Diagnostics & Planning • Value Stream Mapping • Lean maturity Assessment • Gap analysis for: • Lean Implementation • Lean Culture • Skills & Training • Identifying Improvement opportunities and turning Critical Success Indicators • Identify one to two cross departmental critical Lean Projects towards CSI achievement • Plan project requirements & identify team members Training & Projects Mentoring • Hands-On project facilitation and coaching by consultant • Team members • Handling resistance to change in projects • Periodic Review by teams with management team (weekly) • Progress monitoring by consultant with teams and management team • Periodic Review by Department managers • Training on Tools as OJT according to needs of the projects. Key tools may be Waste Elimination, Standardized Work, Quick Changeover etc. Culturalization • Establishing Standardized work and metrics for sustainability of project results • Training on key Lean concepts & Tools TWO WEEKS TWO MONTHS TWO WEEKS Support & Training is for a maximum of 80 persons 6
- 7. Lean Culturalization Consultant Led Hybrid Advantages • Comprehensive involvement • Concurrent improvement • Long Term culture & sustainability • Involve all members • Adopt full change management cycle • Higher ROI • Quick Results • Lower investment • Less time spent by management • Quick Results (compared to Lean culturalization model) • Training given in JIT form • Lower investment compared Lean Cultaralization model • Partial change management model • Non pilot team members can participate as observers Setbacks • Longer transformation period • Higher Investment • Limited employee involvement • Limited skills & experience and culture transferred • Working only on one project • Limited employee involvement • Limited skills & experience and culture transferred • Working only on one project COMPARISON OF MODELS 7
- 8. CONSULTANTS INVOLVEMENT AT INTEL • Consultants will be facilitating projects and skills transfer at Intel every 3 weeks once • Consultants will be on site at Intel for 5 days at any planned visit • During each visit improvement teams will be spending time working on the improvement projects and necessary tools, skills, coaching and motivation will be provided by consultants • Intel’s internal team leaders will be closing the actions of projects between consultants’ visit. 8
- 9. RECOMMENDED APPROACH • It is recommended that Intel takes the Hybrid consulting model to work on improvement projects • This will create results which can be seen within 3 months which can be used as buy-in to get all staff at the lab into commitment to Lean • Next a comprehensive culture creation phase and knowledge transfer can be carried out based on culturalization model 9
- 10. LEARN-DO-MENTORING Mentor and coach on actual implementation Amateurs work until they get it right. Professionals work until they can't get it wrong. CONSULTING METHOD 10
- 11. THE INVESTMENT • ………….. THE INVESTMENT COST IS A FRACTIONOF THE VALUE GAINED 11
- 12. FUTURE INVESTMENT • After completion of the Hybrid consulting model at the investment cost of ……… Intel may obtain the balance of the support needed as per the Culturalization Model • This support will be delivered at a cost of ………. per day to cover the remaining necessary tools and coaching to complete the Lean Culturalization process 12
- 13. SELECTED CLIENTS’ ROI Company Description Description of Intervention Savings Amount Spent in USD Estimated Returns in USD Fortune 500 MNC in Singapore Lean Constraint Management • 30% increase in throughput using existing machines • 40% reduction in Lead Time 200,000 6,000,000 MNC in Thailand Lean Cultural Transformation through Lean Masters certification • 50% reduction in Inventory and Lead Time • 40% increase in throughput • 60% reduction in changeover time 120,000 9,00,000 Mid Size Company in Malaysia Lean Value Stream improvement. Short training and Projects • 30% increase in line productivity 20,000 3,000,000 Semicon Giant in Malaysia Lean Cultural Transformation through Lean Masters certification • 40% Reduction in Changeover time • 20% improvement in OEE • 20% improvement in Lead Time 120,000 5,000,000 Note: • Company names have not been revealed for confidentiality purposes based on consulting practice ethics • Returns are estimated based on a one year period during the consulting intervention which may not include recurrent savings 13
- 14. • 20 Years experience in Manufacturing Operations • Engaged in Lean transformation for Fortune 500 and small companies all over Asia since 1999 • Former Supplier Lean Head for Asia at Seagate Technologies • Helped clients save Millions of Dollars within a short period of time • Have diagnosed, trained and implemented Lean for clients such as: Seagate, GE, 3M,Carsem, Snap On, NSK, Minebea and many more • Uses hands-on and pragmatic approach to consulting and earned nick name as “The Constraint Buster” CONSULTANTS’ CREDENTIALS • 18 Years of experience in Organization Development and Learning • Formed Senior Manager of OD for PayPal and First Solar for APAC • He is a Certified Trainer of Zenger Miller for interpersonal and leadership Skills • Experienced in the area of leadership, people management, facilitation, team development based on positive psychology and practical management experience • His clients include TE Connectivity China, Tan Chong Motor, Park Yard Hotel Shanghai, Dynacraft, Green Parket, Amanda Hotel Langkawi and etc 14 J. Ramesh Victor Laurence Yap