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Zulfa Management Consulting www.zulfadev.com To get closer … +966 59 084 2622 [email protected] @zulfateam @zulfateam [email protected] Hussain Yasin Al-Ahmed @hyahmed Management Consultant @hussain_alahmed www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. Lean is NOT ... Clearing confusions It is not a magic wand or silver bullet to fix everything It is not a diet program It is not rocket science. It is simple It is not a system to reduce headcount It is not only for factories. It works everywhere It is not a solution to personnel or performance issues www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 2 What is Lean? Basic definitions Lean is simply is: “ A systematic approach to continuously eliminate waste within a process ” It may be referred to as: • Continuous Improvement • Kaizen • Operational Excellence www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 3 What is Lean The Five Principles Identify Value as Percieved by Cusotmer s Map the Value Stream Create Flow By Eleminating Waste Produce - only what the customer wants, - only in the quantities they want, - only when they want it, - only by doing the tasks that add value. www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. Esatblish Customer Pull System Seek Perfection Through Kaizen History of Lean Over 60 Years of Continuous Improvement 1903 1908 1911 1913 Model T Ford built the first moving assembly line Henry Ford Model A manufactured the first Frederick Taylor Ford established its developed scientific first assembly line commercial fuel engine car 1970 management principles 1950 1946 Toyota suffered from 1933 1939 to 1945 World War II post war depression Taiichi Ohno Edward Deming finished buidling the made the PDCA by Kiichiro Toyoda Toyota Production improvement cycle and his son System (TPS) after popular and the great strike Toyota was founded WWII 1990 1980 2000 1984 Continouos Improvement, LSS and The rise of Operational Excellence Strategies are Motorola initiated Six Total Quality Management Jack Welch Sigma Quality (TQM) Theroy adopted by many organizations in created Six Sigma and the different fields Center of Exellence at GE www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 5 Movie Time Formula 1 Pit-Stop Evolution www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 7 Why Focus on Process? Why not something else? 80% Outputs Inputs • • • Material Information Customers • • Products Services • • • Material Information Customers Process • Resources (people, facilities, equipment) • Steps and decisions www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 8 Process Waste Is the step value added? Value-Added (VA) Step Lead time = 7 Hours Before Non-Value Added (NVA) Step (Waste) After Lead Time = 3 Hours www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 9 Value Added vs Waste Waste is Everywhere Ask these 3 questions to know if the step is value added: 1 Is the customer willing to pay for this specific step? 2 Does the step transform the product or service? 3 Non-Value Added but Necessary 30% 10% 60% Was the step done first time correctly? Value Added Non-Value Added (Waste) If one if the answers is NO, then the step is waste. www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 10 Photo Credit Tim and Selena Middleton The 8 Types of Waste Muda (Surface wastes) 1 D Defects 2 O Over Production 3 W Waiting 4 N Non-Utilized Talent 5 T Transportation 6I Inventory 7 M Motion 8E Extra Processing www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 11 The first step is seeing the waste! Photo Credit Hussain Al-Ahmed Overproduction Every years billions of dollars are lost because of excess medicines prescribed by doctors. Doing more than required Producing more products or services than the customer needs or downstream process can use right away. Examples: • Oversupply • Wasted raw material • Too many meetings • Not required work • A report that no one reads • Sending unnecessary e-mails Common Causes: • Unclear customer demand • Push production system • The production line cannot be stopped • Long and complicated changeovers • Unbalanced work flow • Poor worker distribution • Batching www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 12 12 Inventory Storage Unnecessary storage of information and material How much is needed? • Physical Inventories • Queues of customers • Digital Information in database Examples: • Too much stock in the warehouse • High backlog or WIP (Work In Process) • Customers waiting to be served • System transactions waiting for actions • Unread and undeleted e-mails • Old and outdated documents • Duplicate files Common Causes: • Overproduction • Batching • Late inventory updates • Material replenishment system problems • Disconnected storage locations www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 13 Photo Credit Wikipedia High Inventory Inventory Why is it a problem? Cost • Phyical invnetory ties up working capital • Time-Cost to the waiting customer • Cost of system setup access, update and miantenance Space • Items requires storage space • Customers require waiting area • IT system requires memory, security and Inventory hides problems special environment Quality • Physical items may deteroriate over time or obselete • Customers may get upset if they wait for too long Reducing Inventory • Data may get corroupted or lost Operations • Physical inventories may hide problems • Waiting customers may put undue pressure on the staff causing quality issues • Databse needs constant management, acess control and maintenance www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 14 Source: adapted (Slack etl, 2009) Photo Credit Garry Knight Transportation Moving things Moving products, equipment, material, information, or people from one place to another. Examples: • Shipping products • Mobilizing equipment and people • Moving material in the shop • Moving spare parts • Forklifts and cranes • Moving marketing material for tradeshows Common Causes: • Poor facility layout (distance and sequence) • Poor planning and communication • Not leveraging technology • Overproduction and high inventory • Improper storage solutions www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 15 Will he add value by moving the books? 15 Motion Searching Unnecessary movement of people or machines that takes time and uses energy and may create health and safety risks. Examples: • Searching for hand tools or material • Going to the supervisor office • Excessive reaching or bending • Walking to find people or information • Trips to copier machine or printer • Extra computer clicks • Looking for specific files in computer • Searching in the web Common Causes: • Facility layout • Shared hand tools • Workstation design • Poor workplace organization and housekeeping • Manual processes and not leveraging technology • Ineffective information sharing www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. Are they working? 16 16 Photo Credit Hussain Al-Ahmed Defects Rework / Correction/ Errors The efforts involved inspecting for and fixing errors, mistakes. Examples: • Failed outgoing equipment inspection • Quality problems and failures • Corrections and rework • Scrap and junk • Returned documents and invoices • Rejected paperwork • Incorrect approval chain • Unsaved computer work Common Causes • Lack of standard work • Training problems • Unclear or complex process • Voice of the customer is absent • Missing or incomplete information www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 17 How much will it cost to fix this! 17 Photo Credit Hussain Al-Ahmed Waiting Delays Idle time created when material, information, people, or equipment is not ready Examples: • Operator waiting for machines to finish cycling • Waiting for Forklift • Products waiting for people • People waiting for material • People waiting for other people • Waiting for information, decisions or approvals • Waiting for customer specifications • Waiting for supplier confirmation • Slow or broken computers or internet Common Causes • Unbalanced work flow • Lack of workers • System down time • Machine breakdowns www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 18 Keep Calm and Just Wait! 18 Extra Processing Overdoing it Ready to cut the apple in half? Process steps that do not add value to the product or service, including doing work beyond a customer’s specification. Examples: • Complex checklists with unused fields • Highly sophisticated machines for simple tasks • Curing material longer than engineering requirements • Doing maintenance more often than necessary • Approval queues • Printing every e-mail • Collecting unused data Common Causes • Not questioning the status quo • Unclear customer requirements • Lack of trust and control issues • Poor communication • Lack of effective and creative problem solving www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 19 Photo Credit Hussain Al-Ahmed Non-Utilized Talent Not involving people Not adequately leveraging peoples’ skills and creativity Examples: • Technicians spending time doing paperwork • Engineers not trusted • Not involving people in improvements • Not utilizing people’s indirect skills Common Causes • “The boss knows everything” thinking • Misusing position power • Narrowly defined jobs and expectations • No effective suggestions and improvements procedures • Boundaries between different levels of the organizations www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. OFF 20 Switch off during work hours! The 8 Types of Waste Do you remember them? Defects Transportation Inventory Overproduction Motion Waiting Non-Utilized Talent Extra Processing www.zulfadev.com © 2015 Zulfa Managment Consulting. All Rights Reserved. 21 Our goal is to help you achieve yours. We strongly believe in supporting local communities and charities. We are committed to providing help anyway we can. Let us hear from you … Zulfa Management Consulting www.zulfadev.com +966 59 084 2622 [email protected] @zulfa.team @zulfateam