julian beaney, business services director · 2018. 6. 7. · customer value customer value profit...
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How can we improve operational efficiency?
Julian Beaney,
Business Services Director
Customer
Value
Customer
Value
ProfitProfit Maximise profits, increase
capacity
Reduce Waste
£ Annual costs
Clear business case
WasteWaste
Effective Operating Model
Business Case for lean thinkingAny activity to eliminate waste in an organisation will reduce the
overall business costs, providing greater opportunity to increase profits
Understanding Lean Principles
• Customer value: Understanding and agreeing exactly what your customer needs
• Value stream: Understanding all your processes
• Flow : Smoothing the flow
• Pull : Pulling value through the end to end process
• Perfection: Continually striving and learning
Lean Thinking requires a Culture
Change, not Just Tools
Andon Pull Cord Line Stop System
GM
Line stopped 10s of times
per week
Toyota
Line stopped 1000s of times
per week
Do we know what the customer values?
Can we make it simple?
Think customer,
think end to end processUnaware
Many organisations only
operate at a functional
level - with no
awareness of the
processes that run
through them
Journey to a Customer-Centric Organisation
Management
World class process
management puts the
customer at the centre
of the organisation
Awareness
Implementing a process
infrastructure builds
awareness of the end to
end customer viewpoint
Understanding the whole system
Strip out waste and simplify…
……..Make things easier
Current State
Future State
Value Waste Value Value Waste
What is stopping us?
Are we capable?
Process
Technology
Information
Organisation
People
Effectiveness & Delivery of
Outcomes√
Consistency ?
Simplicity ?
Application ?
Integration √
Service √
Data ?
Analytics ?
Information & Reporting √
Organisation Structure √
Roles & Accountability ?
Stakeholders & Suppliers ?
Competencies √
Workforce and talent √
Reward and recognition √
Real secret to success is …..Trust
Get control Keep control Improve
Do we understand demand and variation?
RUNNER
STRANGER an item demanded less than 1% time
REPEATER an item demanded about 10% time
an item/task demanded to be processed
most of the time (say 80 - 90%)
• Structure the process to deal with runners effortlessly
• Have a known alternative path for repeaters
• Have a separate process for strangers. Don’t let them
in!
Our approach
Overcoming a “Fear of Failure”
Orbit’s experience of Lean Thinking
Understanding Why?
What approach?
Learn and apply
Leadership Buy In
Programme not Projects
Just Do It
Do we have the right operating
model?
Just ……..
Getting better at
what we do …
Karolina de Jonge
Why?
Establish process improvement as a core business capability
“Smarter”
Commercial mindset
What?
Lean:
Focus on the customer Clarity Value for money Evidence Empowering staff Structure
How?
Servicematters
Proof of concept – Mutual Exchanges
Very positive experience
£52k potential savings identified
Green belt training
Allocations – Voids
Overall potential savings in excess of £620k were
identified
Now?
Now comes the difficult bit … implementation:
Task and finish groups
Green belt support
PMO support
MS Dynamics is playing a key role
Group wide review programme
Ongoing monitoring - where did we get it wrong -
where did we get it right?
Spreading the word
DIY
How did we apply Lean?
Simple Methodology - DMAIC
Think Customer!
Measurement key – performance and cost
Mapped the process end to end – identified waste and
value
Frontline teams led the process - empowerment
Specialist teams involved (ICT, Finance, PMO)
Managers engaged – getting buy in crucial
Task and (never) Finish
Thank you
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