Session 3
April 2013
Improving
Operational
Performance
To introduce business improvement tools and techniques.
Session Aims
By the end of this session you will be able to:
Identify continuous improvement techniques.
Explain the principles of “5S”.
Identify and use visual indicators to improve the work area.
Describe methods to eliminate variance from processes.
Produce a process map.
Session Objectives
Continuous improvement in business is often known as
kaizen.
This can be roughly translated from Japanese to mean
“good change”.
Kaizen is a long term approach to work that systematically
seeks to achieve small incremental changes in processes in
order to improve efficiency and quality.
What is continuous
improvement?
Lean organisations often use benchmarking as part of their
continuous improvement methods.
The object of benchmarking is to understand and evaluate
the current position of a business in relation to best practice
and to identify areas and means of performance
improvement.
Benchmarking
3 Divisions of
work
Value added – an activity that alters the nature, shape or
characteristics of a product in line with customer
requirements. For example; data or information input, order
acknowledgement, producing a part.
Non-value added – any activity carried out which is
necessary under current conditions but does not increase
the product value. For example; quality inspection, multiple
signatures.
Waste – all unnecessary work. Eliminate!
 Transportation
 Inventory
 Motion
 Waiting
 Over production
 Over processing
 Defects
 Skills
Seek out Tim Woods, he is present in every workplace and
we need to get rid of him!!!
The 8 forms of waste
Some of the benefits of applying lean techniques include;
Reduced product cost for the end user
Improved safety in the workplace
Higher quality of products and customer service
Reduced lead time
Reduced non-value added and waste activities
Standardised working practices meaning every product is
the same as the last and quality standards are maintained
at a high level.
Benefits of improvements
The improvement cycle
The importance of having an organised workplace within a
lean environment cannot be underestimated; it can be the
foundations of a lean culture that will lead to long term job
security and a successful business.
An organised workplace needs to be: clean, healthy, safe,
informative, well disciplined, efficient, productive, free from
clutter and waste with easy access to the materials and
equipment needed to do the job.
Workplace organisation – 5S
 Sort or Clear out
 Simplify or Configure
 Shine or Clean
 Standardise or Conform
 Sustain or Custom and practice
The 5-Step approach
An important part of any 5S activity is how you
communicate information to colleagues in your own
department and other by using visual systems.
Communicating information
Standardised work is one of the many benefits of a lean
organisation. It allows an organisation to remove variance
from any process by developing a single best method of
carrying out a task.
Once developed, these standardised methods are written
down in the form of a step-by-step guide and known as a
Standard Operating Procedure (SOP).
Standardised work
Visual management systems are a method of managing the
working environment using clear visual messages.
Good visual management should need no interpretation and
provoke a reaction.
There are two types of visual
management; visual controls,
such as minimum and maximum
levels, and visual displays such
as performance measures.
Visual Indicators
Morrisons session 3
Process mapping
Process mapping is a diagnostic tool used to visually
illustrate how a product or service flows through a process
To break the process down into 5 key areas, providing an
easily understood visual overview
This can be used to identify waste within the process and to
determine the current lead time.
Operation - step where the product is changed inline
with customer requirements
Inspection – indicates a check for quality or quantity
Transportation – movement of worker, material or
Equipment
Delay - indicates a delay in the process, or an
object laid aside until required
Storage - accumulation of material held under
controlled conditions.
Process maps are created by recording each step or activity
within a process, recording the time that that step takes and
any distance that the item being mapped has to travel.
Each step is recorded in one of the 5 key areas or
categories; operation, inspection, transportation, delay or
storage.
By the end of this session you will be able to:
Identify continuous improvement techniques.
Explain the principles of “5S”.
Identify and use visual indicators to improve the work area.
Describe methods to eliminate variance from processes.
Produce a process map.
Session Objectives

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Morrisons session 3

  • 2. To introduce business improvement tools and techniques. Session Aims
  • 3. By the end of this session you will be able to: Identify continuous improvement techniques. Explain the principles of “5S”. Identify and use visual indicators to improve the work area. Describe methods to eliminate variance from processes. Produce a process map. Session Objectives
  • 4. Continuous improvement in business is often known as kaizen. This can be roughly translated from Japanese to mean “good change”. Kaizen is a long term approach to work that systematically seeks to achieve small incremental changes in processes in order to improve efficiency and quality. What is continuous improvement?
  • 5. Lean organisations often use benchmarking as part of their continuous improvement methods. The object of benchmarking is to understand and evaluate the current position of a business in relation to best practice and to identify areas and means of performance improvement. Benchmarking
  • 7. Value added – an activity that alters the nature, shape or characteristics of a product in line with customer requirements. For example; data or information input, order acknowledgement, producing a part. Non-value added – any activity carried out which is necessary under current conditions but does not increase the product value. For example; quality inspection, multiple signatures. Waste – all unnecessary work. Eliminate!
  • 8.  Transportation  Inventory  Motion  Waiting  Over production  Over processing  Defects  Skills Seek out Tim Woods, he is present in every workplace and we need to get rid of him!!! The 8 forms of waste
  • 9. Some of the benefits of applying lean techniques include; Reduced product cost for the end user Improved safety in the workplace Higher quality of products and customer service Reduced lead time Reduced non-value added and waste activities Standardised working practices meaning every product is the same as the last and quality standards are maintained at a high level. Benefits of improvements
  • 11. The importance of having an organised workplace within a lean environment cannot be underestimated; it can be the foundations of a lean culture that will lead to long term job security and a successful business. An organised workplace needs to be: clean, healthy, safe, informative, well disciplined, efficient, productive, free from clutter and waste with easy access to the materials and equipment needed to do the job. Workplace organisation – 5S
  • 12.  Sort or Clear out  Simplify or Configure  Shine or Clean  Standardise or Conform  Sustain or Custom and practice The 5-Step approach
  • 13. An important part of any 5S activity is how you communicate information to colleagues in your own department and other by using visual systems. Communicating information
  • 14. Standardised work is one of the many benefits of a lean organisation. It allows an organisation to remove variance from any process by developing a single best method of carrying out a task. Once developed, these standardised methods are written down in the form of a step-by-step guide and known as a Standard Operating Procedure (SOP). Standardised work
  • 15. Visual management systems are a method of managing the working environment using clear visual messages. Good visual management should need no interpretation and provoke a reaction. There are two types of visual management; visual controls, such as minimum and maximum levels, and visual displays such as performance measures. Visual Indicators
  • 17. Process mapping Process mapping is a diagnostic tool used to visually illustrate how a product or service flows through a process To break the process down into 5 key areas, providing an easily understood visual overview This can be used to identify waste within the process and to determine the current lead time.
  • 18. Operation - step where the product is changed inline with customer requirements Inspection – indicates a check for quality or quantity Transportation – movement of worker, material or Equipment Delay - indicates a delay in the process, or an object laid aside until required Storage - accumulation of material held under controlled conditions.
  • 19. Process maps are created by recording each step or activity within a process, recording the time that that step takes and any distance that the item being mapped has to travel. Each step is recorded in one of the 5 key areas or categories; operation, inspection, transportation, delay or storage.
  • 20. By the end of this session you will be able to: Identify continuous improvement techniques. Explain the principles of “5S”. Identify and use visual indicators to improve the work area. Describe methods to eliminate variance from processes. Produce a process map. Session Objectives

Editor's Notes

  • #2: Wm Morrison Supermarkets Plc
  • #3: Introduce session aims.
  • #4: Introduce session objectives.
  • #5: Explain that the philosophy behind kaizen is credited to Dr W. Edwards Demming, re-cap how he was invited to by Japanese leaders to help rebuild Japan after WW11 and was actually honoured for his contributions by Emprer Hirohito.
  • #6: Explain; Benchmarking is the process of identifying "best practice" in relation to both products and the processes by which those products are created and delivered. The search for "best practice" can take place both inside a particular industry, and also in other industries (for example - are there lessons to be learned from other industries?). Link benchmarking to the productivity needs analysis carried out and discussed in the last session.
  • #7: We have mentioned waste several times already, but what do we mean by waste? Every activity that we carry out for our organisation falls into one of three categories, value added, non-value added and waste, and it is important that you can distinguish between the three.
  • #8: Ask learners to think about and discuss the three options in relation to their job roles and activities.
  • #9: Introduce TIMWOODS, he works in every site! Group to identify their own activities that are classed as waste. Give examples of waste. Link the skills waste of individuals to the training that Morrisons are asked us to do.
  • #10: Explain, It has long been established that there are many benefits of applying lean techniques and carrying out improvement activities in the workplace. The most successful organisations in business today are lean organisations; they have applied the techniques, used the tools and created a culture of lean allowing them to remain competitive in the global marketplace.
  • #11: Explain the improvement cycle. NOTE: this is the Morrisons specific one.
  • #12: Explain, Anywhere we work is our working environment, and our working environment plays a huge role in our effectiveness at work and how productive we are. Poor general housekeeping, bad working habits and lack of control of materials and equipment can lead to a dangerous and untidy workplace where items needed to do a job cannot be found due to being misplaced or left somewhere. Think about your kitchen for example, we all know where things are in our own kitchen because we put them away in an organised and structured manner that suits ourselves. However, if a visitor were to clean up in your kitchen you may struggle to find things after they had gone because they could put things in different locations. It is therefore important that everyone who uses the kitchen follows the same procedures for putting things away, a place for everything and everything in its place. If you find yourself looking for essential equipment, having to search for paperwork or parts, or being unsure of where to put things then you are working in an unorganised working environment.
  • #13: Explain - To achieve an organised workplace that is clean, safe, efficient and productive we must apply a lean tool known as 5S or 5C. The number 5 signifies the 5 steps to creating and maintaining a lean environment. Step 1 – S ort or C lear out Step 2 – S implify or C onfigure Step 3 – S hine or C lean Step 4 – S tandardise or C onform Step 5 – S ustain or C ustom Before a 5S/5C activity is started you must first select an area for the exercise to be carried out. Factors such as product quality, cleanliness, health and safety records and productivity should always be considered when selecting a work area.
  • #14: Explain; We have already discussed how simple techniques can make missing items very easy to spot, by using a foam drawer tidy for example, but what other information can be displayed visually? Performance charts are easy to create and easily understandable, visual minimum and maximum levels for materials can be used, display boards can show both the performance of departments against targets, and the local business performance against national performance.
  • #15: Explain, An SOP will often include pictures to highlight key points or tasks within the procedure and will highlight steps that relate to quality, efficiency and safety to ensure these three important factors are always followed. An SOP is the best current method of carrying out a task to ensure that safety, quality, cost and delivery targets are met. Without using work instructions to define the method of completing tasks you are risking a variation in the process of completing them. This variation could lead to quality problems, delays in completion, costing more to complete or them being completed in an unsafe method.
  • #16: Explain, Before a visual management system is selected a variety of factors should be taken into account. The format of the system, the position of the system, the type of information you are going to display and the relevance of the information are all factors that should be taken into consideration. There are a lot of visual management systems that are available that will help to create the visual office or factory. For example; the colour coding of equipment such as files for easy identification, Kanban systems that ensure a minimum quantity of materials is always available and eliminates the danger of running out of materials, team or departmental boards and performance boards. When using visual management techniques to display performance measurement data choosing the right combination of analysis to present can make or break the effectiveness of the technique. Organisations that choose to display performance metrics within the workplace can benefit in a variety of ways. Firstly, sharing performance against business targets can reinforce the company goals while establishing the gap in what needs to be done to hit targets. However, merely displaying performance is not enough. To be effective businesses should display the performance, the goal and the gap between the two. Some of the measures of performance used in a lean business environment could be; health and safety data, right first time, cost, delivery, responsiveness, corrective actions, performance measures or process concerns and corrective actions.
  • #17: The measurement techniques used for communicating visual management within an area could be; target versus actual, action plans, Pareto charts, % right first time, bar charts, workplace organisation etc. Through utilising visual management to present information a single source of information regarding performance, the gap against target, and the resultant improvement plan can all be presented together. Cross functional teams can review the on-going activity performance and key issues affecting the business in achieving its targets. Information can be updated periodically to provide updates on progress. This method can be a powerful tool when used correctly. One of the key success factors of this techniques effectiveness is simplicity. Information which is simple, easily understood and manageable becomes an effective tool to close the difference between production and targets whilst fulfilling the information needs of the department and its staff. Wm Morrison Supermarkets Plc
  • #18: Introduce process mapping and explain how this is used as a diagnostic tool in lean organisations.
  • #19: Introduce the ASME symbols and explain how they are used. Link process mapping back to the three divisions of work.
  • #20: Explain; You must then class each element or activity in the process as value added or non-value added. Value added – an activity that alters the nature, shape or characteristics of a product in line with customer requirements. Non-value added activity – any activity carried out which is necessary under current conditions but does not increase the product value. Waste – all unnecessary work. Eliminate! You need to be able to establish which elements or activities within the process are value added or non-value added.
  • #21: Review session objectives.