Don’t Limit Yourself to Operations Improvementswhma.org/2013Presentations/PresentationFiles/Dont_Limit...down or stop in the entire process. Quot ation r Technical Resolution Order

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Copyright – all rights reserved – Strategic-Leaders 2013

Don’t Limit Yourself to Operations Improvements

Facilitated by: Greg Lane


Lets Start with the Good News

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2


Areas in which productivity has increased by more than 5%

Where is the Focus on Improvement ?


Development in the cost structure…

Direct Materials

Direct Labor

Indirect Materials

Indirect Labor

Sales & Administration

Therefore: - Increase flow (lead-time) also results in cost reductions

Where is the Focus on Improvement ?

3


Direct Materials

Direct Labor

Indirect Shop

Sales & M

arke7ng

Administra7on Quality Tr

aining

Inventory ((Raw

, WIP, FG)

Product D

evelopment Indirect Office

Fixed (Tax, benefits, legal, energy, etc.)

Profit

These costs are generally allocated

into the products cost, creating a margin of

error in calculation the profit per product or

customer (affected by off-shoring vs. on-

shoring).

Typical Cost vs. Selling Price Breakdown Normally 75% of these costs are determined

during product development (more

responsibility for product dev. = more

focus on process improvement)

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Let’s Utilize a Framework from Lean Thinking

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1.  Customer Value: 2. Identify/map the Value Stream:

•  Management of Problem Solving •  TAKT – customer •  Value Streams •  Mapping •  Lead-time (VA vs. NVA)

3. Flow – how to create flow •  Bottlenecks •  SMED •  OEE •  5S •  Quality •  Etc.

4. Pull – Move from push to pull •  Leveling –(Heijunka) •  Kanban •  Planning

5. Perfection

To help guide the discussion on

where differences in the management

approach are necessary

4


Move from Management to Leadership

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1.  Customer Value: •  Quality (per part/project spec.) •  Lead-time (OTD) – entire value stream (Quote,

schedule, purchase, logistics, order fulfill, ship, install/debug, invoice (cash flow))

•  Price - maintain & manage against quote

profit better understood per project & customer

Lead-time has less to do with operations Quotation

Order

Technical Resolution

Order Raw Mtl.

Supplier Lean Time

Plan

Order Fulfill

Pack Logistic

Invoice

How important is this to customers & where are you incurring most non-value (cost)?


Determine the Bottleneck

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Department, facility, machine, or resource already working at its full capacity and which, therefore, cannot handle any additional demand, likely resulting in a slow down or stop in the entire process.

Quotation

Order


Order Raw Mtl.

Supplier Lean Time

Plan

Order Fulfill

Pack Logistic

Invoice

Do you have standards for each step? Are the measured and improved?

Product Development

5


Lead don’t Manage the Lead-time

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Do we need a standard/target lead time? Who should set the standard? Do you have targets in your organization? Do you monitor and improve?


Lets first think how leadership spends their day and then apply it to the Bottleneck.

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Name:_______________________________ Date:___________________

Time

ActivityValue Add

(customer will pay, hard savings

realized)

Non-Value Add

Incidental Work(necessary to perform

value add work, i.e. budgets, plans,

reviews, meetings)

7:00-7:30

7:30-8:00

8:00-8:30

8:30-9:00

9:00-9:30

9:30-10:00

10:00-10:30

10:30-11:00

11:00-11:30

11:30-12:00

12:00-12:30

12:30-13:00

13:00-13:30

13:30-14:00

14:00-14:30

14:30-15:00

15:00-15:30

15:30-16:00

16:00-16:30

16:30-17:00

17:00-17:30

17:30-18:00

Total

What is the total here? versus Here?

6


Observations of Management in Made to Order Business

•  Predominate focus on financial numbers (weekly or monthly)

•  Lots of firefighting = no time for follow-up (or where to invest effort in follow-up)

•  Dealing with unstable or unstructured processes

•  Justifying variations or processes out of control

•  Department optimization

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How Might you Improve Lead-time in Transactional processes

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First understand how the teams time is spent in long lead-time (bottleneck process) = Diary Method

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Using Diaries for Analysis when a Department is Causing a

Bottleneck

0

2

4

6

8

10

12

14

16

Data

Entry

Conta

cting

Late

Supp

liers

Placin

g Orde

rs

Meeti

ngs w

ith IT

depa

rtmen

t

Admi

nistra

tion

Assis

ting E

ngine

ering

Meeti

ngs w

ith Pr

oduc

tion

Corre

ctive

Data

Meeti

ngs I

nterna

l Kaiz

en

Requ

estin

g Quo

tes

Meeti

ngs w

ith Su

pplie

rs

Queri

es fro

m go

ods i

nward

/finan

ce

-M

anag

ing C

ompa

ny C

redit C

ards

-v

endin

g mac

hines

Syste

m Qu

eries

Sourc

ing N

ew Su

pplie

rs

Meeti

ngs I

nterna

l Eng

ineeri

ng

(Com

puter

Dow

ntime

)

Hours/week

12

Copyright – all rights reserved – Strategic-Leaders 2013 13

Quality Department immediately introduces Actions

8


Winning the Order is not Everything

14

1.  Customer Value: •  Quality (per part/project spec.) •  Lead-time (OTD) – entire value stream (Quote,

schedule, purchase, logistics, order fulfill, ship, install/debug, invoice (cash flow))

•  Price - maintain & manage against quote, profit better understood per project & customer

Customer: ABC Inc .______________ Part: 713-224981-B Qty:__16 _______ Due Date:_3/7/02 _

Material Estimate 1: $7.02 ea Supplier Name Reliance Est.(hrs.)Act. C harge/overheadMaterial Estimate 2: $6.80 ea Supplier Name Jorgenson Op. 1 0.33 -Material Estimate 3: Supplier Name Op. 2 0.25 -

Op. 3 0.25 -Enter Hourly Rate: $60 Op. 4Any add. Mark-up $0.00 Op. 5

Total 0Est. Act. Qty. Cost/pc.

Set-up Time (Hrs.) 0.33 16 $1.24Run (minutes) 3 16 $3.00Extra measure, deburr, fixture, etc

Est. Act. Qty. Cost/pc.Set-up Time (Hrs.) 0.25 16 $0.94Run (minutes) 2 16 $2.00Extra measure, deburr, fixture, etc 2 16 $2.00

Est. Act. Qty. Cost/pc.Set-up Time (Hrs.) 0.5 16 $1.88Run (minutes) 8 16 $8.00Extra measure, deburr, fixture, etc 2 $2.00

Est. Act. Qty. Cost/pc.

Set-up Time (Hrs.)Run (minutes)Extra measure, deburr, fixture, etc

Est. Act. Qty. Cost/pc.

Set-up Time (Hrs.)Run (minutes)Extra measure, deburr, fixture, etc

Sub-contractLot price per pc.

Total (w/ 15% mark-‐up)

Plating estimate $55.00 $3.44 $3.95 Total per Part: $31.81Painting estimate Any 1X set-up -Silkscreen Expedite charge -Clean Room Pkg.Stress Relieve Note: actual times noted during mfg in areas

ProblemsOperation 5

Operation 4Problems

Operation 3Problems

Operation 2Problems

Problems

Material CNC Programming

Operation 1

Quote & Tracking Sheet: Machined Parts Quote #:3341 _

Learning Organizations

utilize feedback loops

(reflect & improve)


Leading the Value Streams

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2. Identify/map the Value Stream: •  Determine which problems deserve the effort to root cause problem

solve (ABC, Strategy Deployment, common underlying process issues) •  TAKT = planning/managing with quoted time •  Value Stream: more flexible as projects/customers change, only by type

of part/product (i.e. cross training matrix) •  Process Mapping: more important to improve lead-time (OTD) & cost for

entire value stream •  Information flow: varies depending on project type, customer, market •  Lead time (value adding): influenced by workload at every step of

information & material flow (less influence w/ supply chain)

9


Does this Problem Deserve Root Cause analysis?

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ABC Thinking is Critical not only in Determining where to Root Cause Problem Solve

Also Helps: •  How to plan and manage various products •  Where RM, WIP & Customer Pull is valuable (i.e. kanban) •  Off-shoring versus re-shoring

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Signs an organization has an ABC Mentality: •  You hear people referring to products as A or C (or

Runners, Repeaters, Strangers) •  They are typically planned and managed differently •  Problem solving is guided by considering A’s vs. C’s

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Separate Parts for Planning Purposes

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20% 100%

100%

80%

% Total Part Numbers

% b

y S

ales

($)

Run

ners

Repea

ters Stra

ngers Manage These Differently

35%

95%

A-parts: 80/20 rule (stock parts & materials)

B-parts: next 15% of part numbers

C-parts: remaining 5% of part numbers (non-stock parts & materials)


Different Types of Parts have Different Lead-Times

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Important for the sales team to buy-in: A-Parts: are generally made-to-stock parts or short lead-time

B-Parts: might be a type of 2 bin (2 pallet) system, so lead-time will be short for small orders

C-Parts: are generally made-to-order and have longer lead-times (as well as minimum order size, etc.)

11


How to Perform ABC Analysis Part Number Description

Sales $ (000)

(6 months)

Cumulative sales

% cumulative sales

Current DSI

Lead-time MRP (days)

0663210526 O-RING 8,3X2,4 FPM 80 112 112 0.07909046 45 200663210526 O-RING 8,3X2,4 FPM 80 100 212 0.149706942 66 200663210526 O-RING 8,3X2,4 FPM 80 100 312 0.220323423 37 200663210526 O-RING 8,3X2,4 FPM 80 82 394 0.278228939 51 200663210526 O-RING 8,3X2,4 FPM 80 70 464 0.327660476 77 200663210526 O-RING 8,3X2,4 FPM 80 60 524 0.370030365 33 200663210526 O-RING 8,3X2,4 FPM 80 60 584 0.412400254 41 200663210526 O-RING 8,3X2,4 FPM 80 60 644 0.454770143 21 200663210526 O-RING 8,3X2,4 FPM 80 56 700 0.494315373 4 200663210526 O-RING 8,3X2,4 FPM 80 45 745 0.52609279 44 200663210526 O-RING 8,3X2,4 FPM 80 45 790 0.557870207 61 200663210526 O-RING 8,3X2,4 FPM 80 45 835 0.589647624 39 200663210526 O-RING 8,3X2,4 FPM 80 40 875 0.617894217 58 200663918801 O-RING 32,93X3,53 NBR 90 37 912 0.644022315 21 400663210296 O-RING 21,95X1,78 FPM 80 33 945 0.667325754 15 400663210296 O-RING 21,95X1,78 FPM 80 33 978 0.690629193 33 400663210296 O-RING 21,95X1,78 FPM 80 33 1011 0.713932632 43 400663210526 O-RING 8,3X2,4 FPM 80 32 1043 0.736529906 21 400663210526 O-RING 8,3X2,4 FPM 80 28 1071 0.756302521 28 4006611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE20 1091 0.770425817 49 3206611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE20 1111 0.784549114 20 3206611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE20 1131 0.79867241 37 320663210296 O-RING 21,95X1,78 FPM 80 20 1151 0.812795707 52 400663210526 O-RING 8,3X2,4 FPM 80 16 1167 0.824094344 41 400663210526 O-RING 8,3X2,4 FPM 80 15 1182 0.834686816 34 400663210526 O-RING 8,3X2,4 FPM 80 15 1197 0.845279288 21 4006611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE14 1211 0.855165596 27 320663210526 O-RING 8,3X2,4 FPM 80 12 1223 0.863639573 46 400663210526 O-RING 8,3X2,4 FPM 80 12 1235 0.872113551 61 400663918801 O-RING 32,93X3,53 NBR 90 12 1247 0.880587529 37 400663210296 O-RING 21,95X1,78 FPM 80 11 1258 0.888355342 51 400663210296 O-RING 21,95X1,78 FPM 80 11 1269 0.896123155 68 400663210296 O-RING 21,95X1,78 FPM 80 10 1279 0.903184803 48 400663210526 O-RING 8,3X2,4 FPM 80 10 1289 0.910246452 77 4006611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE8 1297 0.91589577 61 320663210526 O-RING 8,3X2,4 FPM 80 8 1305 0.921545089 40 280663918801 O-RING 32,93X3,53 NBR 90 8 1313 0.927194407 71 280663210526 O-RING 8,3X2,4 FPM 80 7 1320 0.932137561 39 2806611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE6 1326 0.93637455 52 320663210296 O-RING 21,95X1,78 FPM 80 6 1332 0.940611539 49 400663210296 O-RING 21,95X1,78 FPM 80 5 1337 0.944142363 57 400663210296 O-RING 21,95X1,78 FPM 80 5 1342 0.947673187 61 400663210296 O-RING 21,95X1,78 FPM 80 5 1347 0.951204011 49 400663210296 O-RING 21,95X1,78 FPM 80 5 1352 0.954734835 41 400663210296 O-RING 21,95X1,78 FPM 80 5 1357 0.958265659 71 400663210296 O-RING 21,95X1,78 FPM 80 5 1362 0.961796483 73 400663210526 O-RING 8,3X2,4 FPM 80 5 1367 0.965327307 58 400663210296 O-RING 21,95X1,78 FPM 80 4 1371 0.968151967 49 480663210296 O-RING 21,95X1,78 FPM 80 4 1375 0.970976626 29 480663210526 O-RING 8,3X2,4 FPM 80 4 1379 0.973801285 52 480663210526 O-RING 8,3X2,4 FPM 80 4 1383 0.976625944 61 4806611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE2 1385 0.978038274 57 320663210525 O-RING 5,3X2,4 FPM 80 2 1387 0.979450604 44 480663210525 O-RING 5,3X2,4 FPM 80 2 1389 0.980862933 52 480663210526 O-RING 8,3X2,4 FPM 80 2 1391 0.982275263 51 480663210526 O-RING 8,3X2,4 FPM 80 2 1393 0.983687593 39 480663210296 O-RING 21,95X1,78 FPM 80 1 1394 0.984393758 66 480663210296 O-RING 21,95X1,78 FPM 80 1 1395 0.985099922 48 480663210525 O-RING 5,3X2,4 FPM 80 1 1396 0.985806087 73 480663918801 O-RING 32,93X3,53 NBR 90 0.9 1396.9 0.986441635 109 400663918801 O-RING 32,93X3,53 NBR 90 0.9 1397.8 0.987077184 49 400663210296 O-RING 21,95X1,78 FPM 80 0.9 1398.7 0.987712732 78 320663210296 O-RING 21,95X1,78 FPM 80 0.9 1399.6 0.98834828 131 320663210296 O-RING 21,95X1,78 FPM 80 0.9 1400.5 0.988983829 62 400663210526 O-RING 8,3X2,4 FPM 80 0.9 1401.4 0.989619377 29 3206611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE0.7 1402.1 0.990113693 52 320663210526 O-RING 8,3X2,4 FPM 80 0.7 1402.8 0.990608008 72 400663918801 O-RING 32,93X3,53 NBR 90 0.7 1403.5 0.991102323 63 400663210526 O-RING 8,3X2,4 FPM 80 0.7 1404.2 0.991596639 84 4006611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE0.7 1404.9 0.992090954 47 320663210296 O-RING 21,95X1,78 FPM 80 0.7 1405.6 0.992585269 91 320663210296 O-RING 21,95X1,78 FPM 80 0.5 1406.1 0.992938352 56 320663210296 O-RING 21,95X1,78 FPM 80 0.5 1406.6 0.993291434 72 320663210296 O-RING 21,95X1,78 FPM 80 0.5 1407.1 0.993644517 69 320663210296 O-RING 21,95X1,78 FPM 80 0.5 1407.6 0.993997599 161 320663210296 O-RING 21,95X1,78 FPM 80 0.5 1408.1 0.994350681 53 320663210296 O-RING 21,95X1,78 FPM 80 0.5 1408.6 0.994703764 67 320663210526 O-RING 8,3X2,4 FPM 80 0.5 1409.1 0.995056846 83 440663210296 O-RING 21,95X1,78 FPM 80 0.5 1409.6 0.995409929 96 320663210296 O-RING 21,95X1,78 FPM 80 0.5 1410.1 0.995763011 51 320663210526 O-RING 8,3X2,4 FPM 80 0.5 1410.6 0.996116093 39 320663210526 O-RING 8,3X2,4 FPM 80 0.5 1411.1 0.996469176 79 3206611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE0.35 1411.45 0.996716334 52 320663210525 O-RING 5,3X2,4 FPM 80 0.35 1411.8 0.996963491 83 400663210525 O-RING 5,3X2,4 FPM 80 0.35 1412.15 0.997210649 97 400663210526 O-RING 8,3X2,4 FPM 80 0.35 1412.5 0.997457807 78 400663210526 O-RING 8,3X2,4 FPM 80 0.35 1412.85 0.997704964 51 400663210296 O-RING 21,95X1,78 FPM 80 0.35 1413.2 0.997952122 57 440663210296 O-RING 21,95X1,78 FPM 80 0.35 1413.55 0.99819928 73 440663210525 O-RING 5,3X2,4 FPM 80 0.35 1413.9 0.998446437 72 320663918801 O-RING 32,93X3,53 NBR 90 0.32 1414.22 0.99867241 88 440663210526 O-RING 8,3X2,4 FPM 80 0.32 1414.54 0.998898383 69 440663210526 O-RING 8,3X2,4 FPM 80 0.32 1414.86 0.999124356 72 4406611012 TÄTNINGSBRICKA M8, SJÄLVCENTRE0.32 1415.18 0.999350328 67 320663210525 O-RING 5,3X2,4 FPM 80 0.32 1415.5 0.999576301 88 320663210525 O-RING 5,3X2,4 FPM 80 0.2 1415.7 0.999717534 152 320663210526 O-RING 8,3X2,4 FPM 80 0.2 1415.9 0.999858767 138 320663210526 O-RING 8,3X2,4 FPM 80 0.2 1416.1 1 93 32

Average 58.9 35.7

A

B

C

Part Number DescriptionSales $

(000) (6 months)

Cumulative sales

% cumulative sales

Current DSI



Average 58.9 35.7

A

B

C

Part Number DescriptionSales $

(000) (6 months)

Cumulative sales

% cumulative sales

Current DSI



Average 58.9 35.7

A

B

C

Average 58.9 35.7

20


Differences When it comes to Flow

21

3. Flow – how to create flow: push order in & maintain flow •  Bottlenecks:

Flow of information: real time manage Flow of material: manage in real time (day by hour, FIFO boards, etc.)

•  Lead-time competitive advantage •  SMED •  OEE focus on bottlenecks, continuously •  5S realign capacity with demand •  Quality

Creating Flow is Heavily Weighted on the Front End Quotation

Order


Order Raw Mtl.

Supplier Lean Time

Plan

Order Fulfill

Pack Logistic

Invoice

How to Prioritize Improvements

12


Process Mapping Deciding Where to Improve Indirect

Processes

Particular

Process

(bottleneck)

A Department (bottleneck)

22


Once you Know the Process that is Requiring Significant Time =

Process Map

What you THINK it is:

What it ACTUALLY is:

What it SHOULD be:

Current state: Future state:

23

13


Value Added

Non-Value Added NVA and Waste

Lead Time

New Lead Time

Focus primarily on identifying and eliminating the non-value added! Benefits:

§ Reduced inventory § Predictability § Increased capacity

§ Reduced lead time § Reduce cost § Improved quality

Major Focus is lead-time

24


Using Process Mapping in the Office to Develop the Current State

Use Post-its of Different Colors and Sizes 25

15


Recent Example Where a Process was Determined to be a Bottle-neck

No OK

OK

EscanearRecibir Cargo Cliente

Colgar Cargo en GESDOC

Preparar Tabla Excel

No Recibir Cargo por

Email

Current State – Cargos Clientes 14/9/09

Entrat en 2 Systemas a

Excel, y Email

Precio

Unas veces son carods u otras abonos

Distribuir el cargo a cada departmento

Linkar cargo al Excel

Enviar Cargo Por

E-mail

Distribuir a Responsable

Imprimir Cargo

Analizar Inform.

Recibida

Reclamation Cliente info. Contabilidad

Revisar Contracto $

Verificar References y Cantidades

Cargo Interno o

Proveedor

Devolucion GG y 0 km

Volvar a Contibilidad

Enviar Mail Conformidad

Conformar N. 6000 en SAP

Verificar cargo en

Portal Cliente

Aceptacion? Si

No

Verificar 6000 SINIC + QM NR.(Recl.

Prov.)

Adjuntar into dtls.

Portal Cliente

RetrabajoEnviar Mail

Into a Contabilidad

Cantida

d

PSA

SeatVerificacion Cargo de Calidad

Conformar Cargo con

Tabla 6000

Resolver Problema con

Albaran Entrada

Rellenar Excel

Reclamacion Cliente

Colgar PDF en GESDOC

y Linkar Cargo

Recibir Email con

Conformidad

Verificadar que esten todos los canpos

necesarios

Faltan Conceptos en Conformidad

Cuando Estan

Todos los Datos

Imprimimir en PDF

Colgar en GESDOC

PDF

Linkar en la Hoja Excel

Semanalmente se Prepara un

Report con Cargos Pend.

Conformar

Se Envia Email a Cada Dept.

Informando Del Report

Se Devuelve al Dept. Para Que Ponga los Datos

??

Hacer Conformidad Excel

Acabado

No O

K

OK

Imprimir Cargo

Analizar Cargo

Se Pasa al Responsable del

cliente para Conformar el

Motivio?

Abrir Cargo y Estudiar

Caso

Reclamar a Cliente si la Dif. Precio no

es Correcto

Verificar Precio 6000 DEU y 99

Investigacion del los Casos

BMW (pg. Web) PSA (pg. Web)

Reclamar Pedidos Pnte. A Cliente

Enviar Mail de Conformidades a Contibilidad

Conformar si la Dif.

Precios es Correcto

Se Mando Email a

Contabilidad

Se Escanar Cargo

Si es Correcto Tiflon lo Figura

Si el Precio no es

Correcto se Cambia

Se Envia Conformidad Contabilidad

ClienteQuality

Administration Quality

Logistics

Contabilidad

Customer Support

Otros

Departm

entos

Cargo Conocido?

Otros Departmentos

BMW

Verificar cargo en

Tabla Excel

No

SiVerificacion

Logitic Controling

Reclamar al cliente

No

SiFia

t o P

SA

VW /

Seat

o B

MW

Corre

ctoNo Correcto

Analizar Info.

Recibida

Verificar en SAP

Conformado

No OKPrecio o Cantidad

Preparacion Excel Conformidados

Envio de Cargos a

Email o EDI

Crear un solo

Systema

No Imprimir (Directamente responsible)

Cargos sin resolution

(que, quien?)

Relacionar cargo con doc 6000 y cargos mezclados y devoluciones (peguform)

X que llegan

cargos de otros dept?

Conformar 6000 x piezas

separadas

Rellenar 2 tablas y

escanar 2 veces

Fiat

Persevir a cliente

Hay veces que no

puedo abrir el 6000

Nomenclatura No autfra y doc.

Especifcacion FY

No coincide Ni 6000 Ni

Carn.

Recibir tanto Email

Cuadrar el 6000

Entrar en 2 sistemas

GESDOS y Excel

Metrica incompleta

Analysis incompleta

Report se preparar

AutomaticoSolo se

verificara 6000

Consultar SQM

Integr. Base datos (Informes)

Mejorar SAP para

conformar y separado

Resolver en reunion cargos y

definir responsible

?Quien Soluciona?

Verifiicar en portal cliente o en SINIC y

6000

Entrar 6000 y enviar a

M. CarmenOK

Teine contabilidad

Mirrar piezas – Habla cliente

Otros Departamentos

Unas Veces Son Caroos U Otras Abonos

Hacer Lista Para Cada Cliente

Con los Conceptos de las Cargos y

Definir Responsable

Analizar y recoger Datos

Solution

Cargos que no estan

claros y Lay que busan

info. De entregas

mucho tiempo

Tiempo entre

solucion y confirmation por parte

de Juan

Proceso administriva

largo (escanar,

Email, etc.)

Solo se verificara

6000

Coger datos

differencias de cart.

Analize al casos y buscar

soluciones

Dentro de los Reports

defin el detaille de los casos

para hacer Pareto’s y que puede

hacer

Poner Objectivos en cada

area para bajar los

problemas.Pareto’s,

meta’s, etc.

Task or Action

Decision Problem

Key Future State – Cargos Clientes 01/04/10

Distribuir el cargo a cada responsable

Revisar incidencias cant. y ref. y si

necesario corregir

6000

Identificar en la base de datos si es recuperable

del proveedor

Aceptar o no

Recibir Cargo

ElectronicoIntroducir

Datos y Linkar

Analizar Cargo

ClienteQuality

Administration Quality

Logistics

Contabilidad

Customer Support

No OK

Analizar cargo (en

portal, excel, etc.)

Enviar a SQM

Despues C

argos - ReportingOK

En SAP porque no se quiere conformar el

6000 por posiciones?

Analizar cargo

Reclamar a Cliente

Si Diferencia cantidad:

Se genera pedido y se apunte en ACCES

Contabilizar el Cargo Numero Abono Apuntar

en ACCESSPreparar Reports

Reclamar a Cliente

Si el 6000 tiene Errores se Devuelle

la Conformidad

a Q.

Si el Precio no es

Correcto en el 6000

Modificar Grabar y

Conf.

Comprobar Precio Cargo con Dev. Y si es Correcto Conformar

SolutionTask or Action

Decision Problem

Key

Aceptar o no

Aceptar o no

OK

No OK

Reclamar a Cliente

OK

No OK

Analizar las causas de los Cargos para cada dept. para reducir Cargos

Current State Future State (anticipate 4 months)

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A More Typical Example Current/Future

Going from 14 days lead-time to 12 days & 24 process steps to 22 steps in 3 months

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What is Typically Realized Through Process Mapping

•  Realize Current Process is not designed to provide the correct information

•  Our process functions because we use workarounds •  Frequently we ‘touch’ the same data 4,5,8 times •  We are working much harder than we need to be •  No one knows the entire process •  C&A of the process is normally between 15% and 80% •  … We muscle everything … •  Quality Improvement , measured by improvements in C&A%

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Summary of Key Points: •  Transactional processes are more critical in low volume (Made to Order, Design to

Order) •  Identify Bottlenecks in Transactional (Indirect) processes •  Use the “Diary Method” to understand how time is being spent in Bottleneck

(i.e. is it focused on customer value?)

•  Determine which problems deserve significant problem solving effort (look for common underlying factors/processes)

•  Consider ABC (Runner, Repeater, Stranger) Thinking –  Determine which problems to solve –  Where to put pull systems (kanban) –  On-shore vs. off-shore –  Planning methods

•  Focus to Improve flow for indirect processes with process mapping –  Requires team involvement & input –  Understanding the current situation involves a lot of ‘Gemba’ –  Ownership is increased –  Real learning takes place

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Questions: [email protected]

Documents

Don’t Limit Yourself to Operations Improvementswhma.org/2013Presentations/PresentationFiles/Dont_Limit...down or stop in the entire process. Quot ation r Technical Resolution Order