Dr Steve Chicken - d298t4b8zukb44.cloudfront.net · business. Introduction to Lean Why is Lean important?….…to OEMs • Maximises cash-flow • Improves quality • Decreases

Future Lean Performance

Flint

20th November 2014

Dr Steve Chicken


Level-setting question:

Would you describe your knowledge and

experience of Lean as:

a. Extensive

b. Moderate

c. Low

Agenda

1. Introduction to Lean

2. Lean cash-flow

3. Why does Lean fail?

4. Lean benchmarking

Agenda


2. Lean cash-flow



Introduction to Lean Agenda

• What is Lean?

• Why is Lean important to SMEs?

• Why is Lean important to OEMs?

• EEF bespoke lean model

Introduction to Lean What is Lean?

A culture which minimises waste.

• Leadership • Teamwork • Communications • PDCA • Continuous improvement

• Discover waste • Eliminate basic waste • Create flow • Create pull • Continuous improvement

Introduction to Lean Why is Lean important?…….to SMEs

• Maximises cash-flow • Improves quality • Decreases lead-time • Minimises cost • Positively engages all stakeholders

Lean increase efficiency and therefore competitive advantage. Evidence of Lean thinking may be a pre-requisite for OEM business.

Introduction to Lean Why is Lean important?….…to OEMs

• Maximises cash-flow • Improves quality • Decreases lead-time • Minimises cost • Positively engages all stakeholders

Lean increase efficiency and therefore competitive advantage.

Introduction to Lean EEF bespoke Lean model

Foundation

Basic waste elimination

Flow

Pull

Lean

ExampleTools Strategy Journey steps Cultural Enablers

• 5S • Problem solving

• 7 wastes/RIE • Value stream or

process mapping

• Spaghetti diagrams • Visual management

• Inventory • Single piece flow

• Leadership • Teamwork • Communication • PDCA • Continuous

improvement

Agenda


2. Lean cash-flow



Lean cash-flow Agenda • Get it right!

• error proofing

• problem solving

• Inventory – the hidden cash

• basic Lean tools

• Speed in the office

• process mapping in back office functions


• error proofing

• problem solving





Lean cash-flow Error proofing – for the customer

Lean cash-flow Error proofing – for the factory

Lean cash-flow Error proofing – for the factory

Book out of factory

Book into warehouse

Match with order

Book dispatch

Match dispatch with invoice

Invoice

95%

95% 95% 95%

95% 95%

Rolled first pass yield = 73% 27% of invoices are wrong

Lean cash-flow Error proofing – for the back office

Book out of factory

Book into warehouse

Match with order

Book dispatch


Invoice

50%

95% 95% 95%

95% 95%

Rolled first pass yield = 39% 61% of invoices are wrong





Lean cash-flow Problem solving

D1: Plan

D2: Describe

D3: Contain

D4: Root Causes

D5: Correct

D6: Validate

D7: Prevent

D8: Lessons


D1: Plan

D2: Describe

D3: Contain

D4: Root Causes

D5: Correct

D6: Validate

D7: Prevent

D8: Lessons

Establish a multi-disciplinary team • needs capacity and

capability • needs a leader with or

access to power to change


D1: Plan

D2: Describe

D3: Contain

D4: Root Causes

D5: Correct

D6: Validate

D7: Prevent

D8: Lessons

Gain agreement as to the problem • facts • numbers • must be measurable


D1: Plan

D2: Describe

D3: Contain

D4: Root Causes

D5: Correct

D6: Validate

D7: Prevent

D8: Lessons

Stop the immediate problem impact • stop production • segregate • add extra inspection • recall


D1: Plan

D2: Describe

D3: Contain

D4: Root Causes

D5: Correct

D6: Validate

D7: Prevent

D8: Lessons

Use root cause tools • 5 Whys • fault trees • not “human error”


D1: Plan

D2: Describe

D3: Contain

D4: Root Causes

D5: Correct

D6: Validate

D7: Prevent

D8: Lessons

Actions needed to control the process • just do it! • include measurement


D1: Plan

D2: Describe

D3: Contain

D4: Root Causes

D5: Correct

D6: Validate

D7: Prevent

D8: Lessons

Check the solution works • use data • if not go back to D2


D1: Plan

D2: Describe

D3: Contain

D4: Root Causes

D5: Correct

D6: Validate

D7: Prevent

D8: Lessons

Stop the problem occurring elsewhere or at another time • design change/new process • training all staff


D1: Plan

D2: Describe

D3: Contain

D4: Root Causes

D5: Correct

D6: Validate

D7: Prevent

D8: Lessons Lessons learned • record • communicate



• error proofing

• problem solving





op op op op shipping kanban

kanban kanban

pull system

Lean cash-flow Inventory – ideal theory

kanban kanban

line-side kitting consignment stock

op

constraint buffer

bottle neck op op op op op

shipping buffer

kanban kanban schedule

pull system push system

Lean cash-flow Inventory – real world

Lean cash-flow Inventory – real world

Sup

plie

rs

Cu

sto

me

rs

raw material

components assemblies

finished goods

work-in-progress

make to stock

assemble to order

make to order

engineer to order

to order

Inventory

to forecast

Lean cash-flow Inventory – is it needed?

• walk around and ask • beware of off-line “stores” and off-site warehouses • measure and display at rational stages • check that process owners’ metrics are mutually

supportive • do the dust check

Lean cash-flow Inventory – Lean tools – 5S

5 - SUSTAIN



before after

Lean cash-flow Inventory – Lean tools – 7 wastes

Transport

Inventory

Motion

Waiting Over-

production

Over-processing

Defects

Lean cash-flow Inventory – Lean tools – rapid improvement events


• error proofing

• problem solving





Book out of factory

Book into warehouse

Match with order

Book dispatch


Invoice

Lean cash-flow Process mapping



Agenda


2. Lean cash-flow



Why does Lean fail? Agenda • Failure model

• Survey results

• Leadership for Lean

• Lean for Leadership

• Employee engagement

• Organisation

Results Effort

Time

Imp

rove

me

nt

Quit!

After: The Age of Paradox; Charles Handy

Why does Lean fail? Failure model

Results Effort

Time

Imp

rove

me

nt

Quit!

After: The Age of Paradox; Charles Handy

Why does Lean fail? Failure model

Quit!

Why does lean fail? Agenda • Failure model

• Survey results




• Organisation

Why does Lean fail? Survey results

Other 5% Organisation 7% Engagement 12% Leadership 76%

Source: EEF Informal Survey 2012


Small steps to reduce waste, existing facilities,

todays systems, no technology

Break-through changes, existing facilities, new

systems, some technology, metric orientated

New capabilities, new facilities,

investments, business-level results

orientated, new technology

After: Masao Nemoto

Work force

Middle

management

Top

management

Line

supervision Steps to reduce variation, existing facilities, todays

systems, no technology, process orientated









After: Masao Nemoto

Middle

management

Top

management

Line

supervision

Steps to reduce variation, existing facilities, todays









After: Masao Nemoto

Middle

management

Top

management Steps to reduce variation, existing facilities, todays




• Survey results




• Organisation

Why does Lean fail? Leadership for Lean


Kübler-Ross, E. (1969) On Death and Dying, Scire, P. (2007). "Applying Grief Stages to Organizational Change"

Denial Resistance Exploration Commitment


Denial Resistance Exploration Commitment

Increase

speed

Reduce impact


• Survey results




• Organisation

Teaches and

Engages

Work Groups

Support and

Recognition

Commitment

To Standards

Management

Commitment

– Lead By Example

Respect For People

Understand Long

Term Vision

& Principles

Process Focused

Deploy Policy

& Objectives

Support the

Change Process

Why does Lean fail? Lean for Leadership

Support and

Recognition

Commitment

To Standards

Management Commitment

– Lead By Example

Respect For People

Understand Long

Term Vision

& Principles

Process Focused

Deploy Policy

& Objectives

Support the

Change Process

TEACHES AND ENGAGES WORKGROUPS

• Encourage people to challenge and be creative in their efforts to improve the process.

• Keep in touch with your people through systematic habitual shop-floor visits, communication, follow up and

audits the process.

• Communicate the vision and guide the people through your own actions and understanding.

• Develop an environment to ensure “operators” are seen as the focus for support activities

• Involvement in social activities with team members.


TEACHES AND ENGAGES WORKGROUPS

• Encourage people to challenge and be creative in their efforts to improve the process.

• Keep in touch with your people through systematic habitual shop-floor visits, communication, follow up and

audits the process

• Communicate the vision and guide the people through your own actions and understanding

• Develop an environment to ensure “operators” are seen as the focus for support activities.

• Involvement in social activities with team members.

Support and

Recognition

Commitment

To Standards

Management Commitment

– Lead By Example

Understand Long

Term Vision

& Principles

Deploy Policy

& Objectives

Support the

Change Process

• Treat others as you would expect them to treat you.

• Create an environment of mutual trust and respect.

• Practice welcoming problems as opportunities not a vehicle to allocate blame

• Understand issues from another’s point of view

• Recognise and demonstrate the value of people to the Company

RESPECT FOR PEOPLE

PROCESS FOCUSSED

• Attack processes, not people.

• Do not blame, ensure a deep understanding of the problem.

• If a mistake or problem has happened the process has allowed it.

• Lead effective route cause analysis and countermeasure.

• Practice Plan, Do, Check, Act ( P.D.C.A.) as a standard of controlling all processes.



• Survey results




• Organisation

• watch out for shifting buy-in as culture changes

• keep it relevant to your business, your culture, your

people

Why does Lean fail? Employee engagement

• beware of “vanilla”

solutions

• beware of “the T word” solutions

Why does Lean fail? Employee engagement

“Cut out all the ninja sh*te”


• Survey results




• Organisation

Why does Lean fail? Organisation

• procedures, processes, technology • removal of excuses and barriers

• “computer says no”

• creation of new forms of waste


• metrics • watch out for certain metrics becoming obsolete


• training

• invest, recognise, communicates commitment • multi-level,

• multi-discipline

• optimised

Agenda


2. Lean cash-flow



On-line Lean Benchmarking How it works

• Register your company details

• There are in excess of 300

companies currently registered

across a number of industry sectors.

Your results are compared to the

specific sector selected at the

registration stage and also against

the average of all sectors. There is

also the opportunity to compare your

performance against the top 5%.


• There are 8 sections, each containing 7 questions so 56 questions in total.

• It is most valuable to base the answers on accurate, factual information. There are 4 opportunities to take the assessment, so we would suggest that in the first instance you take the assessment, answer the questions as best you can and familiarise yourself with areas that require further work to track the exact answers.

• Answer the questions


• Obtain your results

• The data provided with the free

trial compares your results across

8 key competencies including:

Leadership, Customer Focus,

Empowerment, Communication,

Core Processes, Machines and

Equipment, Support Processes

and Supply Chain.


• The Advanced or Full account

which is only available to EEF

members provides the results

plus a comprehensive (30

page) Lean Benchmark Report,

with recommendations tailored

specifically to your business.

• Obtain your results


Flint

20th November 2014

Dr Steve Chicken

Documents

Dr Steve Chicken - d298t4b8zukb44.cloudfront.net · business. Introduction to Lean Why is Lean important?….…to OEMs • Maximises cash-flow • Improves quality • Decreases