introduction to thinking lean - spb.sa.gov.auspb.sa.gov.au/sites/default/files/introduction to...
Post on 18-Sep-2020
4 Views
Preview:
TRANSCRIPT
www.southaustralia.biz
Click to edit Master title style
Click to edit Master text stylesSecond levelThird levelFourth levelFifth level
www.southaustralia.biz
Introduction to Thinking Lean
11th December 2007Saindhav Tamhane
Centre for Innovation, DTED
www.southaustralia.biz
Seeing Improvement
www.southaustralia.biz
HEADLINES
Recent Service orientated cases
Invoicing Process:Simplified process, gained $160,000pa (billable hours)
Insurance Policy Issuance:Reduced red tape, 80% reduction (lead-time)
Customer Database:Simplified process, 70% improvement (in accuracy)Simplified process, $80,000pa (billable hours)
Restocking after Car Sales:Reduced red tape, 70% reduction (delivery lead-time)
Order Processing:Reduced red tape, $3,000,000+pa (increased sales)
These projects cost only staff hours and re-issuance of procedures.
www.southaustralia.biz
UK Public Sector efficiency gains
•Halving the end-to-end time for planning applications.
•Halving the time for voids in council houses.
•Cutting end-to-end processing time for high demand adaptations from disabled people from over 200 days to 12 days.
•Payroll errors reduced from 75% to 2%.
•Reducing backlog in lost and found departments by 80%.
•Reducing the time taken in report production from 77 to 6 days in the Justice system.1
Evaluation Of The Lean Approach To Business Management And Its Use In The Public SectorScottish Executive Research 2006
1 Seddon, J. (2002). "Systems Thinking and Performance Improvement in the Public Sector". Vanguard, January 2002
www.southaustralia.biz
A Process is a series of connected actions or operations undertaken to achieve a particular outcome.
A Process Flow is the model defining the order and relationship of one process step to the next.
Process Engineering is the application of engineering techniques to construct a process model.
Basic Definitions
www.southaustralia.biz
It is not something one does – ‘Lean’ is a philosophy
It’s focus is in creating value for the ‘customer’ whilst continuing to eliminate ‘waste’
Waste or Non Value Add is any operation that does not provide value
What is ‘Lean’?
Value Add is any operation that provides value
www.southaustralia.biz
1. Defects2. Waiting3. Motion4. Over-Processing5. Over-Producing6. Inventory7. Transportation
The Seven Wastes
www.southaustralia.biz
Filling Up on Tuesday
Pictures from the BBC and Fotosearch.com
www.southaustralia.biz
It is a well established approach with proven methodology – It works !
It has developed beyond the factory into service operations
It has strong synergies with sustainable practices
Why ‘Lean’?
It has a focus on productivity improvement NOT cost cutting
www.southaustralia.biz
Seek clarity on the
Process – creating Flow
Customer – providing value
Waste - eliminating non-value adding steps
The Approach
Focus on understanding the Process
www.southaustralia.biz
1st Steps in Improving the Process
Understand Current Reality
Create Future Vision
Transition Current
to Future
Issues
Issues
www.southaustralia.biz
Improving the Process
Understand Current Reality
Create Future Vision
Define Realistic Future State
Becomes New Current Reality
TIMESupport: 35%
Waste: 60%
COST
Value Adding: 45%Support: 40%
Waste: 15%
Value Adding: 5%
Source: Hines, Silvi & Bartolini, 2002
© Peter Hines 2007, Lean Enterprise Research Centre
www.southaustralia.biz
Some Key Tools & Techniques
Value StreamMapping
WasteElimination
5S
VisualManagement
One PieceFlow
KanBan
QuickChangeover
Standard Work
ErrorProofing
Theory of Constraints
LeanLayout
www.southaustralia.biz
Value Stream Mapping is about analysing the
process and identifying opportunities to reduce
waste – non value adding activities
Value Stream Mapping (VSM)
Circle Diagrams
Developed by
D Henderson CFI
Enter Commitment and Fill Out P.O.
Authorise Order
Fax P.O.
ProcessPayment
Book Order - Simple Flowchart
Receive Ordered Book
ProcessInvoice
Identify Book and Supplier
Post to Accounts Payable
Authorise
Standard Flowchart
Total NVA = 6.1 days
Total VA = 23 mins
ProcessPayment
Post to AccountsPayable
AuthorizeProcessInvoice
C/T=180 minsRework = 5%Operators = 4
C/T= 120 minsRework = 5%Operators = 3
Customer
35 orders per annumPer person
Lot Size = Individual Order
Book SupplierU.S.
Next Day
OrdersEnter OrderFill in P.O
C/T=6 mins
AuthorizeOrder
C/T= 3 mins
Fax P.O
C/T=120 mins
Operators = 5
P.O.Order
C/T= 4 mins
7 m
0.1 days0.5 days
3 m6 m
4 m
1.25 days0.5 days
6m3 mTotal NVA = 2.75 daysTotal VA = 13 mins
1 day
Overall Value Added Time = 39 Minutes.
Overall Non Value Added Time = 8.85 Days!
3 days 2.5 days
7 m
Current State Map
• Next Day dispatch
• 2 days delivery
Value Add Ratio = 0.8%
Value Add Ratio = 1%
www.southaustralia.biz
• Identify Excess movement
• Clearly visualise layout
• Understand movement within a workstation
• Useful within a factory or office environment
• Most effective focused at a single workstation
Spaghetti Diagrams
www.southaustralia.biz
Trace the movement within a process
Desk
Printer
Bookcase
Filin
gC
abin
et
Security Bin
Spaghetti Diagrams
www.southaustralia.biz
• Probability of error in each hand-off
• Identify double handling
• Effective for offices
• Useful between hand-over processes
• Question why each step exists
Circle Diagrams
Circle Diagrams
Number of staff : 7
Touches :
Double Touches
Rebounds
Loops
Ministerial Brief eCourier
Department Information Officer : ADivision Director : B
Division PA : CArea Manager : D
Staff Member (Brief Author) : E
Department CEO : F
CEO’s PA : G
EfficiencyTouches – (Double Touches + Rebounds + Loops)
Touches
%
Legend
A B
C
D
E
F
G
HCircle Diagram
Developed by
D Henderson CFI
Circle Diagrams
Developed by
D Henderson CFI
Brief Request
Information Officer Logs and Routes
Division Director Assigns
Responder
Brief Written
Division Review
Department Review
Brief Issued to Minister
Ministerial Brief eCourier Simple Flowchart
Revise
OK
Revise
OK
Standard Flowchart
Circle Diagrams
Number of staff : 7
Touches : 19
Double Touches : 1
Rebounds : 8
Loops : 0
Ministerial Brief eCourier
Department Information Officer : ADivision Director : B
Division PA : CArea Manager : D
Staff Member (Brief Author) : E
Department CEO : F
CEO’s PA : G
Legend
Ministers Office
Note: In this example, the Division Director requested changes to the document, but the CEO did not.
EfficiencyTouches – (Double Touches + Rebounds + Loops)
Touches
52.6 %
A
B
C
D
E
F
G
Developed by
D Henderson CFI
Circle Diagrams
Number of staff : 7
Touches : 33
Double Touches : 3
Rebounds : 13
Loops : 0
Ministerial Brief eCourier
Department Information Officer : ADivision Director : B
Division PA : CArea Manager : D
Staff Member (Brief Author) : E
Department CEO : F
CEO’s PA : G
Legend
Ministers Office
Note: In this example, both the Division Director and CEO requested changes to the document .
EfficiencyTouches – (Double Touches + Rebounds + Loops)
Touches
51.5 %
A
B
C
D
E
F
G
Developed by
D Henderson CFI
Circle Diagrams
Number of staff : 7
Touches : 13
Double Touches : 1
Rebounds : 3
Loops : 0
Ministerial Brief eCourier
Department Information Officer : ADivision Director : B
Division PA : CArea Manager : D
Staff Member (Brief Author) : E
Department CEO : F
CEO’s PA : G
Legend
Ministers Office
Note: In this example, Both CEO and Division Director request changes, but normal communication channels are bypassed.
EfficiencyTouches – (Double Touches + Rebounds + Loops)
Touches
69.2 %
A
B
C
D
E
F
G
Developed by
D Henderson CFI
www.southaustralia.biz
The essence of “The Visual Office” is “seeing not saying”
Visual Management
www.southaustralia.biz
What order do the files go in?
How many pens do we have?
*Images courtesy of NHS Institute for Innovation and Improvement What do they cost?(where do we buy them!)
Visual Office Tools
www.southaustralia.biz
A smarter inbox?– Up is finished/resolved– Down needs action What do I do next?
*Images of Don Tapping’s “Heijunka Wheel” courtesy of Learning and Productivity Pty. Ltd.
Visual Office Tools
www.southaustralia.biz
Bureaucracy gone mad...
*Images courtesy of BBC News
Visual Office isn’t….
www.southaustralia.biz
Lean Misconceptions
It’s all about the implementing the Tools !
It’s just about the understanding the Process !
But the techniques only apply to Manufacturing !
The System is out of Balance!
Inventory Profile of the Automotive Supply Chain(UK 1999 Figures , Volume Car Stock Levels)
0
10
20
30
40
50
60
70
80
90
100
Raw
Mat
eria
l
Bou
ght-o
utP
arts
In-h
ouse
bui
ltP
arts
Pre
-Ass
embl
yW
IP
Ass
embl
y W
IP
Fini
shed
Com
pone
nts
Inbo
und
Tran
sit
On-
site
Par
t(V
M)
Veh
icle
Pro
duct
ion
WIP
Load
ing
&D
espa
tch
Out
boun
dTr
ansi
t
Mar
ketp
lace
Cus
tom
er
Day
s of
Inve
ntor
y
MaxAverageMin
First Tier SupplierFirst Tier Supplier
Outbound Logistics
Outbound Logistics
Market -Place
Market -Place
VehicleManufacturer
VehicleManufacturer
Inbound LogisticsInbound Logistics
Source: M. Holweg, 2001© Peter Hines 2007, Lean Enterprise Research Centre
www.southaustralia.biz
Process
People
Purpose
The Three P’s
100% Efficient
80%
40% Strategic Direction
Efficiency is doing things right
Concept from Ian Glenday, Repetitive Flexible Supply Ltd
100% Efficient
Align First
Then Improve
Strategic Direction
Effectiveness is doing the right things
Concept from Ian Glenday, Repetitive Flexible Supply Ltd
www.southaustralia.biz
Summary
SEEK
Strategic alignment
Leadership commitment
Clear objectives & targets
Good (real) data
The right tools
To involve the process operators
Continual Refinement
PLAN
DO
ACT
CHECK
www.southaustralia.biz
Primary purpose– to provide leadership through education & training in lean thinking and
the correct application of lean tools and techniques– Assist organisations address growth and capacity issues
What is the LEANetwork?
A collaborative venture amongst:
Lean Thinking1 day
In-house program
Lean Thinking1 day
Executiveprogram
Uni AdelaideLeadershipprograms
Fraunhoferprograms
Toolbox Series
Awarenessraising
High level
Awarenessraising
Low level
Lean Thinking10 day
Champion’sCourse
Courtesy of David Harvey DTED
www.southaustralia.biz
http://www.unisa.edu.au/gradupdate/2007/October/main5.aspPrinciples Of Lean Thinking
Course Details
Management Development Programs
http://www.agsb.adelaide.edu.au/execed/mdp/
Lean Toolbox Serieshttp://www.centreforinnovation.org.au/calendarmonth.aspx
top related