SAI Global's Lean Capability
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Transcript of SAI Global's Lean Capability
Lean Capability Event March 2013
What is Lean?
Lean is a management approach.
Lean focuses on improving the value of a product or a
service from the customers perspective by reducing, or
eliminating, waste. As waste is eliminated, quality
improves while production time and cost are reduced.
In summary, Lean is about identifying and eliminating
Waste.
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.”
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
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.
The Lean Tool Box
Value Stream Maps
5S
Visualisation
Kaizen and Kaikaku
Quick Changeover
Point of Use Storage (POUS)
Monuments and Remedies
Lean Performance Measurement
Batch Size Reduction
Takt Paced Production & Delivery
Fool Proofing
Spaghetti charts
Level Loading
Kanban
Work Cells
Value Stream Map Type Testing: Current State Value Stream Map
Represents information flow.
2 weeks 4 weeks 1 week
0.25 days 0.25 days 2 days 0.25 days
Total time: 7 weeks 2.75 days
Value add time: 2.75 days
% value add time: 7.30%
Receive and process
application
Develop project
plan for client
Provision of Type Test
Assessment Service
Issue Report to
client and invoice
Lead time:7 weeks
Value add time: 2.75 days
Scheduling and Resource Planning
Client
Report
Business Development
Contractor
Value Stream Map Type Testing: Future State Value Stream Map
Represents information flow.
1 day 2 weeks 1 day
0.25 days 0.25 days 2 days 0.25 days
Total time: 2 weeks 2 days
Value add time: 2.75 days
% value add time: 22.90%
Receive and process
application
Develop project
plan for client
Provision of Type Test
Assessment Service
Issue Report to
client and invoice
Lead time:2 weeks 2 days
Value add time: 2.75 days
Scheduling and Resource Planning
Client
Report
Business Development
Contractor
Develop Bill
of Materials
Supplier
Customer
Set Product
Requirements
Code
Application
Components
Exist?
Start
Set Product
Strategy
Build
Product
Ship
Product
Support
Product
Obtain
Customer
Feedback
Customer
Customer
Requisition
ComponentsInvoice
Customer
Customer
Invoice
Process
Payment
Report
ProblemsSearch for
Components
Order Invoice Payment
Problem
Resolution
Customer
Problem
Problem
Report
Product
InformationShipped
Product
Packaged
Product
Customer
Requirements
Technical
Architecture
Fully Functioning Product
Application
Vision and
Direction
List of
Required
ComponentsComponents
Components
Maintained and
Upgraded Product
Maintain
Application
Receive
Components
End
Yes
TEC
HN
ICA
L SU
PPO
RT
AC
CO
UN
TIN
GO
PER
ATI
ON
SD
EVEL
OPM
ENT
Swimlane Chart
Value-add Analysis
Value Adding activities are those exert an effect on the
service or product and this adds value from the customer’s
perspective.
Value Enabling activities are those that do not add value
as such, but are necessary or required for the conduct of the
process. Examples: steps needed to comply with regulatory
requirements; or to provide information to the organisation.
Non-Value Adding activities are those that do not add
any value from the customer or organisational perspective.
Develop Bill
of Materials
Supplier
Customer
Set Product
Requirements
Code
Application
Components
Exist?
Start
Set Product
Strategy
Build
Product
Ship
Product
Support
Product
Obtain
Customer
Feedback
Customer
Customer
Requisition
ComponentsInvoice
Customer
Customer
Invoice
Process
Payment
Report
ProblemsSearch for
Components
Order Invoice Payment
Problem
Resolution
Customer
Problem
Problem
Report
Product
InformationShipped
Product
Packaged
Product
Customer
Requirements
Technical
Architecture
Fully Functioning Product
Application
Vision and
Direction
List of
Required
ComponentsComponents
Components
Maintained and
Upgraded Product
Maintain
Application
Receive
Components
End
Yes
TEC
HNIC
AL S
UPPO
RTAC
COUN
TING
OPE
RAT
IONS
DEVE
LOPM
ENT
Swimlane Chart Showing: Handover analysis and Value-add analysis
CASE STUDY: Gov’t dep’t 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.
5S Workplace Organisation
Tool Meaning
Sort Housekeeping. The only things that should be in the
workplace are files, materials and tools being used.
Set in order Workplace organisation. A place for everything and
everything in its place.
Shine Clean up. Make the place shine.
Standardise Best Practice. Make the above 3S’s become a way of
life.
Sustain Discipline. 5S becomes part of the way we do things
around here.
Is this sorted?
Fool Proofing
Fool proofing or error proofing.
It is a technique for avoiding and eliminating mistakes.
Cardboard template is
“bill of material”. Wrong
parts cannot be picked.
Example: 5S and Error Proofing
Messy, time lost finding parts
and wrong parts often picked.
ISO 9001 Lean
ISO 9001 Lean is a program that combines the
benefits of a structured management system
with the powerful but simple tools of Lean to
implement effective performance improvement
using an ISO 9001 based management system.
ISO 9001 Lean 5.4 Planning (to meet objectives) –The objectives are established and processes are designed
to support the achievement of objectives at section, division and the strategic level.
ISO 9001 Lean 5.4 Planning (to meet objectives) –The objectives are
established at section, division and the strategic level.
8.4 Analysis of data
Collect and analyse data relating to:
Process performance
Customer satisfaction
Product / service performance
Cost
Time / efficiency
Internal audits
Performance against objectives
ISO 9001 Lean 5.4 Planning (to meet objectives) –The objectives are
established at section, division and the strategic level).
8.4 Analysis of data
Collect and analyse data relating to:
Process performance
Customer satisfaction
Product / service performance
Results of internal audits
Cost
Time / efficiency
Performance against objectives
Gaps in performance are now known.
ISO 9001 Lean 5.4 Planning (to meet objectives) –The objectives are
established at section, division and the strategic level).
8.4 Analysis of data
Collect and analyse data relating to:
Process performance
Customer satisfaction
Product / service performance
Results of internal audits
Cost
Time / efficiency
Performance against objectives
Gaps in performance are now known.
Use the improvement clauses
of the standard to address
gaps in performance using
simple Lean tools.
ISO 9001 Lean 5.4 Planning (to meet objectives) –The objectives are
established at section, division and the strategic level.
8.4 Analysis of data
Collect and analyse data relating to:
Process performance
Customer satisfaction
Product / service performance
Results of internal audits
Cost
Time / efficiency
Performance against objectives
8.5.1 Continual improvement
8.5.2 Corrective action
8.5.3 Preventive action
Use the tools out of the Lean Toolbox
ISO 9001 Lean 5.4 Planning (to meet objectives) –The objectives are
established at section, division and the strategic level.
8.4 Analysis of data
Collect and analyse data relating to:
Process performance
Customer satisfaction
Product / service performance
Results of internal audits
Cost
Time / efficiency
Performance against objectives
8.5.1 Continual improvement
8.5.2 Corrective action
8.5.3 Preventive action
Use the tools out of the Lean Toolbox
Causes of gaps identified, solutions
identified, future state developed and
implemented.
Improved and sustainable 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.
Lean Improving Business Performance
An organisational journey
Fix the
basics
Align the
System
Focus on
value
Sustainable
Performance
SAI Global Client Solutions
Client
Solutions Services
What
• Establishing sustainable performance • Organisational wide engagement in Excellence and Continuous Improvement • Tailored Systems for Business Performance Improvement
How
• Facilitating sustainable capability development
• Structured program for organisational learning
• Delivered by credible advisors with extensive experience in Business Excellence
Our point
of difference
• Sole Australian Provider of the internationally recognised Australian Business Excellence Framework
• Demonstrated success in Organisational Change Management
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 Blitz 2 day Blitz
Basic Lean skills applied to an operational problem
• Applying Lean Concepts • 2 day Introduction to Lean Concepts
• Working towards a Lean Organisation
• ISO 9001 Lean • Application of lean to improve your management system
• Lean Coaching
The ABEF Categories
Understand the
Australian Business
Excellence Framework
and Principles
Clarify Strengths
and Opportunities
for Improvement
Implement and
Manage the
Solution
Understand
the
System
Apply
Improvement
Techniques
Review
Improvements
Common Understanding
of the System and
Priorities Agreed
i.e. System Outcomes
Allocation of
Resources for Working
ON the System
Approval to Implement
and Accountability
Assignment
OFI’s from
Other
Sources
Systems
Thinking
Achieving Sustainable Excellence
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
Benefits to the way you personally work
Provided me with solutions I needed to overcome issues being imposed upon me by the
Standards Agency and Accreditation.
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
Staff morale has increased and they are in more control.
Improved staff satisfaction.
Staff are beginning to understand their role in the context of the wider organization
Personal improvement plans now work.
Staff members who previously were reluctant to be involved now line up to be part of it.
The staff have more confidence in using feedback systems.
Better use of RN time.
Communication and awareness has increased by more than 90%
Benefits to Organisations
Reduced Outside Maintenance cost by approximately $6000 per year.
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.
BE & Management Systems
ABEF & integrated
leadership and management systems
Lean Capability Event March 2013
Questions?
Thank You