Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist &...

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Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources problems by aligning people with their work."
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Page 1: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Timothy D. Hill, Ph.D., CLSSBB

International Consulting Industrial & Organizational Psychologist & Educator"Providing working solutions to human resources problems by aligning people with their work."

Page 2: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Best Practices in AerospaceAutomotiveCall Centres

Food & BeverageGovernmentHealthcare

Human ResourcesLogistics

ManufacturingPackaging

Service SectorSupply Chain Management

Page 3: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• You may not know it, but business as usual can steal 1/3 of your business’s value, or more.

• The missing pieces from your business success come from best practices with people and processes.

• We forget that global leaders, like Toyota, do two things really well:

– Match people to work

– Build continuous improvement in everything

• Best practices need to applied across all areas of concern in our companies

Your missing piece

Canadian and SWO regional issues include:•79% Need to reduce overall operating costs•43% Demand for shorter lead times•19% Need to reduce operational complexity•16% Demand for higher quality goods and services.

Page 4: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Here Are Some Top Concerns

• Attract, Hire & Retain • Training • Performance Management • Feedback • Organizational Excellence

• Let's share some "What If?" results and show you would could happen if you had best practices in place now...

Page 5: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

None of this is new! From 1994

Page 6: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

None of this is new!

Page 7: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

The Best Practices survey was used to estimate possible savings Your numbers will likely be larger than you expect… The survey asked about:

•Company size•Number of employees•Average tenure, wage, turnover rate, etc.•Total annual sales•Possible Lean improvements, e.g., CODG, etc.

Page 8: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Sample Error Rates:

•Up to 80% -- errors in employee selection, resulting in 40-100% of payroll being lost

•Up to 95% -- failures in employee training, no transfer of training to success at work

•Up to 75% -- failures to deliver performance management and close accountability loops

•Up to 20% of total sales lost from CODG – costs of defective goods

•Employee absenteeism – 7-15%

Page 9: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Sample Best Practices Gains:

•Better employee selection, savings of 40-100% of payroll – lower training costs, fewer errors, etc.

•Better training – Cycle time improvement (50%), Overhead reductions (20%), Better selection for training (40% salary)

•Performance management – Larger increases in performance and accountability

•Casual absenteeism, down by 65%; Overtime reduction: 75%; Accidents reduced by 86%

Page 10: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Here Are Those Top Concerns Again…

• Attract, Hire & Retain

• Training

• Performance Management

• Feedback

• Organizational Excellence

Page 11: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Attract, Hire & Retain

Challenges & Opportunities

Page 12: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• HR in the field is far behind best practices • From: “Seven common misconceptions about human resource practices: Research findings versus practitioner beliefs.” Sara L. Rynes, Kenneth G. Brown, and Amy E. Colbert, Academy of Management Executive

• Recent reports emphasize the fact that companies believe they are hiring to acquire skills, but they fire on personality. This should not surprise anyone since so many people have free coaching on how to pad a resume or bluff in a selection interview.

– Hiring the wrong manager (even with good skills on paper) can lead to a cost three times salary -- before counting other potential losses.

– At the employee level, better hiring can mean a cost savings of 40% of salary or more per year.

Attract, Hire & Retain

Page 13: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

What do you want? The best person for the job, or the

sneakiest candidate?

•With a number of local and global clients, we designed employee selection systems that: Reduced workplace conflict, shortened training times, reduced workplace costs, increased health and safety scores and more. These immediate gains take start as soon an the employee starts. They stay in place until the selection system is changed.

•Your applicants are in training now to cheat your hiring system

•Hire the best person first and not regret your decision

Attract, Hire & Retain

Page 14: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Training

Challenges and Opportunities

Page 15: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Training

In one Lean training project aimed at increasing safety in a nuclear power plant, we used better training to increase measured performance. We backed this up with attitudinal data.

Ratings on key performance indicators were astounding.

About 95% of all training fails to transfer training success to the workplace. Even measuring training success is largely based on how much participants liked the training!

Remember, Canada obtains only a mediocre rating when it comes to making employee training a priority. Conference Board of Canada

Before After32% 94%Target: 85%

Know the critical

behaviour was a part

of their job…

Page 16: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Performance Management

• UWO was at risk of losing its consolidated radioisotope licence if it earned another D rating. If the licence was lost, all radioisotope work (medical treatment, research and teaching) would stop.

• We improved the federally regulated inspection ratings in one year from a D to an A and those ratings stayed in place until they dropped the program in a change of management.

• The Federal Regulator cited this as the largest increase, maintained over the longest time, they had recorded.

• Based on that success, we rolled that training out to a number of commercial clients. Compare this with the typical "rush to training" to fix a performance problem...

Page 17: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Feedback

Challenges and Opportunities

Page 18: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Feedback

• Feedback is centrally important to all improvement plans -- Lean Six Sigma is based on continuous improvement from stakeholders who have been trained in problem solving.

• Employee feedback through value stream mapping and continuous improvement ideas

• Customer service feedback valid surveys is critical to market share and retention.

• Employee feedback through valid surveys: Attendance, Quality, Retention, Satisfaction, Understanding, etc. – all drive strategic savings

Employee feedback and Lean: Let each suggestion be worth $1,000 of savings…

•GM would save $580,000 per year in one plant.

•Toyota, however, would save $48,330,000 per year, in one plant

Page 19: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Lean -- Organizational Excellence

Absenteeism reduction: 7-15% Annual improvement in operating income: 15% Better employee selection (% payroll savings): 40-100% COPF (Cost of Poor Process Flow) reductions: 75-90% Casual absenteeism reduction: 65% Cost of quality reduction: 75% Customer delivery time reductions: 60% Customer retention: 90% or more Customer service levels increased: 95-99% Cycle time improvement: 50% Delivery reliability improvements: up to 90% Employee responsibility improvement: 50-90% Equipment utilization improvements: 40-100% Finished goods inventory turns increased: 30% Finished goods stock reduction: up to 100%Floor space requirements reduction: 5-30% Inventory reduction: 40-80% Lead time reduction: 75% Lot sizes improvements: 50-100% Manufacturing lead time reduction: 50-90% Overhead reductions: 20% Overtime reduction: 75% Parts per million found defective reduced: 72% Patient wait times: up to 90%

Payroll reduction of sales team: 26% Perfect orders, increased up to 96% Plant expansion costs reduced: 79% Plant space for same output reduction: 50% Productivity increases: 50-125% Queues improvements: 50-80% Revenue increases: 18% Revenue per employee improvement: 60% Safety incidents reduced: 86% Sales Order, Cycle Time: 59% reduction Sales per employee increased: 12% Scrap reduced by: 43% Shop Order, Errors: 73% reduction Stocking policy improvements: 100% Throughput improvements: 50-90% Throughput increases: 40-80% Time data accuracy, (e.g., time theft, buddy punching) improvement: 65% Training: Better training: 40% of salary Travel distance improvements: 70-90% Warehousing space reduction: 50% Warranty costs reduction: 75%

This IS the short list!

Page 20: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Some of Our Sectors in London…• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 21: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Aerospace -- LAI

• C-17 unit priced decreased from $260M to $178 M for final 80 aircraft of 120 aircraft buy, saving $6.5 billion.

• 63% reduction in unit cost of JDAM (Joint Attack Direct Munitions), saving over $2.8 billion.

• Atlas launch vehicle program reduced lead time from 48.5 to 18 months.

• Northrop Grumman ISS lean enterprise implementation reduced throughput times for major systems by 21 to 42%.

• F-16 maintained sales price and decreased order-to-delivery time by up to 42% while production rate decreased 75%

• Boeing Engineers have taken out nearly 50% of the fuselage production cost

Page 22: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 23: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Automotive

This also includes Tier 1/2 parts manufacturers and people who want to supply Toyota and the

New Big 3.

The New Big 3

And The Old Big 3

Page 24: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Automotive

• General Motors received 0.84 suggestions per person per year

• General Motors accepted 23% of those suggestions.

• With 3,000 employees, GM received (3,000 times 00.84) 2,520 suggestions per year.

• Since GM only accepts 23% of all of their suggestions, this will yield a final number of (2,520 times 0.23) 580 suggestions per year.

• Toyota received 17.9 suggestions per person per year.

• Toyota accepted 90% of those suggestions.

• With 3,000 employees, Toyota will receive (3,000 times 17.9) 53,700 suggestions per year.

• Since Toyota accepts 90% of all suggestions, yielding a final number of (53,700 times 0.90) 48,330 suggestions per year.

• Toyota has a final suggestion rate 83 times greater than that of GM.

• For argument's sake, let's imagine that each suggestion, on average, saves the organization $1,000.00. This is a realistic amount. – GM would save $580,000 per year in one plant – Toyota, however, would save $48,330,000 per year, for one plant

Page 25: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 26: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Call Centers

• JJ Food Services' Class Centre: Changing the flow of routing automatically to the right telesales agent saved 20 hours of customer waiting time every day, and twenty hours of agents’ waiting time, simply in the process of transferring calls. This was equal to saving of 2.8 agents a day – over $90,000 a year.

• Value Stream Mapping brought faster order entry and better speed and accuracy of information available to telesales operators. This led to processing more orders. Within six months, the combination of the new Lean solution and effective promotions increased orders by 50% to 2,200 a day, without increasing staff.

• Call centers have high worker compensation costs – high rates of repetitive strain injuries. One Lean project reduced the workers comp costs by over 60 - 70% while improving accuracy by a sustained 59%

• Lean has been successfully applied to call center services to improve live agent call handling. One company reduced handle time, reduced between agent variability, reduced accent barriers, and attained near perfect process adherence..

Page 27: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Call Centers

• Lean is challenged in service sector when companies throw black belts at problems and see little value result from their work.

• In a recent Bain & Company management survey of 184 companies, 80% said their efforts failed & 74% were not achieving savings targets. Squads of black belts often actually slow performance improvement.

• In once case, VSM showed morning boot time & slower intra-day response time by computer doubled the call time average. The call center was able to address the real bottlenecks (not people) and effectively reduced the call time to half. The cost burden against the profit margins was only $7,500 as opposed to year three loss of $300,472, with record profits in year 4. Merit raises are slated for the first time in company history in year 5.

Page 28: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Call Centers

• From “The Futility of Call Center Coaching: Using Lean Six Sigma to Improve Call Center Operations”

• One-agent-at-a-time coaching is the go-to method in call centers for trying to improve center-wide output measures. But it is less valuable than many believe. Through the use of mathematical modeling and simulation, it is possible to see that coaching, even in moderate turnover environments, does not offer a return on investment (ROI). More-effective improvement strategies aimed at lifting the performance of the whole system, such as task consolidation and prerecorded call flows, should be used instead.

Remember, the Conference Board of Canada says Canada obtains only a mediocre rating when it comes to making employee

training a priority.

Page 29: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 30: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Food & Beverage

• The food and beverage industries must maintain quality and lower operating costs. They have used Lean to achieve this. Successful firms use a “wits not wallets” approach to make improvements at low cost -- by the ingenuity and ideas of the workforce rather than by being bought by capital expenditure.

• The results reported from within the food and beverage industry around the world have been significant.

• One brewer had annual savings of over $750,000, a baked bean processor - annual savings of $200,000 and a soup producer - annual savings of $240,000. Each of these results was achieved with little capital outlay.

• At the Grocery Manufacturers Association Greenbrier Executive Conference, Wal-Mart reported their Lean sustainability successes, right.

Gallons of water saved, 478.1M Gallons of diesel saved, 20.7M Reduced # of trucks, 2.79M Plastic resin reduction, 128.9M lbs Reduced # of out of stocks, 50% Reduction in labour dollars, 91.4M

Page 31: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Food & Beverage

• In the US, Lean has been adopted by: Lowe's, Target, Metro, Home Deport, Carrefour as well as leading manufacturers including Kimberly Clark, P&G, Unilever, Coca Cola and PepsiCo.

• Lean doesn’t stop.

• With Wal-Mart, they are expecting continuous savings:– An additional 25 to 40 percent improvement over the next 3

to 5 years– Improve margins by 10 percent– Increasing selling space by 5% and same store sales by 3%– Better sustainability and collaboration for JIT deployment

Page 32: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 33: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Government

• From: Lean Six Sigma: How Does It Affect the Government? LSS has been highly successful in industry, but the government has largely ignored it. If the world's leading organizations believe in Lean and are applying it in both their government and commercial business, why has government largely ignored it?

• Knowledge of LSS is critical to government agencies. This knowledge could be applied to do the following: – Help operations groups improve their processes. – Help the transactional groups (e.g., finance, contracts, and

human resources) improve their processes. – Specify contractor incentives to be included in awards. – Understand what performance information to request from

contractors. – Evaluate contractor proposals.

• Provincial and state governments are now acting on Lean (Current examples: BC, Alberta, Saskatchewan, Nova Scotia, Minnesota’s state-wide Lean initiative)

Page 34: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Government

• Publications such as Public Personnel Management contains numbers of articles about "Barriers to Municipal Government Performance" and Lean could certainly:– Save taxpayers' time– Increase municipal efficiencies– Deliver a fact-based decision-making approach that would be

more readily communicated to stakeholders.• Topics would include:

– Absenteeism– Infrastructure continuous improvement– Public transit– Tax rates and more.

Based on manufacturing success, cities have applied Lean tools to improve quality in the delivery of city government services. The Mayor of Ft. Wayne IN used Lean for improvements fire, community development, water pollution control, right of way, street, transportation, engineering services and solid waste.

Page 35: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 36: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Healthcare

• Analysis of healthcare processes, similar to processes in other industries, shows that roughly 80-99% of time spent is on waste or non-value added activities. Improvement focused on the relentless search for waste therefore focuses on removing non-value-added steps versus doing value added steps faster.

• Recent Lean healthcare initiatives have been announced in British Columbia, Alberta, Saskatchewan, Ontario & Nova Scotia as well as UK’s NHS.

Page 37: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Healthcare

• New England Journal of Medicine, 2003 -- quality of adult healthcare in the US: In that study, 439 indicators of clinical quality of care were reviewed from the medical records of 6,712 patients, for 30 acute and chronic conditions, plus prevention. Participants received about half of the prescribed care. The conclusion: the “defect rate” in the technical quality of American healthcare was, per this study, approximately 45%. This is not anything close to 10% or 1%.

• Lean has been used to tackle hand washing and hospital-borne infections. The CBC reported that every year, 250,000 Canadians pick up infections while they are in hospitals being treated for something else. That's a staggering one out of every nine Canadians who are admitted to hospital.

• Every year, those infections kill more than 8,000 people. That's more than will die of breast cancer, AIDS and car accidents combined. Most of those deaths can be prevented — by standard work, checklists and simple hand washing.

•1% error rate:

• 5,000 wrong surgical procedures/week

•20,000 pieces of mail lost per hour

•3.65 days a year

Page 38: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 39: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Human Resources

• According to Forrester Research, more than 85% of the market value of a typical S&P 500 company is now the result of intangible assets. For many companies, this is their people and companies spend two-thirds or more of their overall costs on labour.

• Run the odds of keeping that 85% of market value.

• Remember, since HR doesn’t sell anything or make product, it often doesn’t get the ear of the C Suite.

• By transforming HR into a centre for cost savings, you’ve earned a place in the boardroom.

Selection: 80%

Training: 95%

Performance Management: 75%

Feedback: 90%

CorporatePerformance?

Page 40: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Human Resources

.8 x .95 x .75 x .9 = .513

ABOUT 50%

From the start, your enterprise is operating at a 50:50 success level.

Focus on connecting best-fit people to best practices; more effectively manage employees and improve their productivity.

Combine training, incentive management, and compensation management tools. Measure and display these success in role-based competencies on a public dashboard – keep things visual.

Make each person an enterprise asset and show them how their work path connects to the bigger goals – again keep things visual and simple.

Page 41: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 42: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Logistics

•Best-in-Class companies produce 99% of product in compliance, as compared to 88% for Laggards.

•BIC companies respond to non-conforming shipments in 60 minutes, as compared to 41 hours for Laggards.

•BIC companies are nearly 25% more likely to see non-compliance risks before they happen, as compared to Laggards. This includes: Internal & external transport; Material storage; Packaging and Obsolescence.

•UPS used Lean to lower accidents & emissions while saving time & money. They now use a Lean package flow program to pre-plot delivery sequences for its 95,000 vehicles. The results are staggering:

•UPS dropped 28.5 million miles from its delivery routes •They saved 3 million gallons of fuel •They cut carbon dioxide emissions by close to 69 million pounds.

Page 43: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Logistics

FedEx -- "Lean Transportation – Fact or Fiction?" -- urges people to move from Just in Case to Just in Time for Logistics & Transportation. Cost savings are large.

Page 44: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 45: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Manufacturing

Lean in manufacturing has largely been drawn from Toyota’s success. MIT called Toyota’s Production System (TPS) “Lean” after reviewing Toyota’s manufacturing leadership.

Thirty percent reduction in floor space makes room for growth; 10-15% production improvement throughout the entire plant; 30% reduction in our floor space without additional bricks and mortar. Implementing; Lean and One-Piece-Flow reduced WIP (Work In Process) by 30-40%.

After one workshop -- 10% productivity improvement in just a few short weeks.

Lean Cells increase production by 50% -- one-piece-flow to eliminate excessive WIP and missed operations. In two cells productivity increased by 50%. We now apply Lean principles to all new jobs prior to starting production.

Page 46: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Manufacturing

Page 47: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Manufacturing

Page 48: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 49: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Packaging

•“We are in a day and age where you can’t just go back to your customer and say, ‘Well, the minimum wage went up – we need to charge you more,’” notes Jane Worthing, Senior Vice President, Genesee Packaging. “The customer is not going to take that. So as a company we have to find as many inventive ways as we can, to save money to ensure our survival.”

•Genesee Packaging used Lean to increase efficiencies

•The reduction of major steps from 29 to 15, creating a 44% cost efficiency•88% improvement in time processing a part from point of receipt to ship•91.6% improvement on wait time•52% improvement on the reduction of internal travel time

Page 50: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 51: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Service Sector

When Lean succeeds, it creates efficiency by eliminating seven types of waste, ranging from raw materials to worker time. It examines every activity and asks how each contributes to customer value.

It took decades for lean to catch on in manufacturing, but it's moving more rapidly into the service sector. It turns out that identifying bottlenecks so mortgages can be processed in a day is similar to eliminating constraints to making a car in one day.

•Reduced paperwork load time up to 50% •Improved on-time performance up to 50% •Reduced work in process up to 50% •Reduced errors up to 50% •Improved customer satisfaction •Increased capacity and productivity

Invoice Delivery Cycle

Page 52: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

• Aerospace• Automotive• Call Centres• Food & Beverage• Government• Healthcare• Human Resources• Logistics• Manufacturing• Packaging• Service Sector• Supply Chain Management

Page 53: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Supply Chain Management

A Lean SCM produces just what and how much is needed, when it is needed, and where it is needed.

Lean improvement areas include:

•Core carrier programs •Improved transportation administrative processes & automated functions •Optimized mode selection and pooling orders •Combined multi-stop truckloads •Cross-docking •Right sizing equipment •Import/export transportation processes •Inbound transportation and backhauls•The US EPA's Environmental Accounting Project cites Lean SCM as a leading CSR initiative

Page 54: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.

Your data: Average of $4.5 million in possible savings

•25 person company – almost $100,000

300+ person company – almost $11.5 million

These are real, measurable & sustainable savings.

They represent your competitive advantage.

Page 55: Timothy D. Hill, Ph.D., CLSSBB International Consulting Industrial & Organizational Psychologist & Educator "Providing working solutions to human resources.