united nations industrial development organization reducing poverty through sustainable industrial...
TRANSCRIPT
![Page 1: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/1.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth 1
SPX SME Upgrading Building Capacity, Capability & Sustainability
Dar Es Salaam, Tanzania21st June 2011
![Page 2: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/2.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Who am I?▶ Enterprise Ireland, Competitiveness & Lean
Business Department Manager▶ EU Japan Centre for Industrial Co-Operation▶ European Benchmarking Network▶ Advisor Internationally on Benchmarking and Best
Practice▶ Trinity College Dublin, Dept of Statistics(retired)▶ Author
![Page 3: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/3.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Agenda
▶ What is Lean
▶ Case Study examples
![Page 4: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/4.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Level 1
Level 3Process Benchmarking
The Five S’s Total Productive
Maintenance
Overall Equipment Efficiency
Six Sigma
Business Excellence
Value Analysis &Management
Lean Production
Target Cost Management
Facilitated Assessment
Benchmarking
Physical&Process Flow in the Office
Physical&Process
Development
Production Control Systems
Saving Time in the Workplace
Maintenance Practical Quality Tools
Team Building & Culture
Sales and Growing them
Financial Management
Supply Chain & Logistics
Innovation&
Design
Business Strategy Implementation
Self Assessment Benchmarking
Physical Flow Process Flow Set Up Time
Reduction
Check Sheets Run Chart People & Teams Basic
Maintenance
Level 1
Level 2
![Page 5: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/5.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
What do we mean by Lean?
▶ Lean is shorthand for Best Practice within a sector
▶ Helps People identify and deliver improvements in their businesses
▶ Provides a framework for competitiveness improvement by building the capability and competences of people to
![Page 6: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/6.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
What is Lean?
Focused on Effectiveness and Efficiency
Doing the right things well!A War on Waste!!!What is the alternative?
![Page 7: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/7.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
What is Lean?
▶ Based on the Toyota Production System▶ “Understood” by American consultants▶ Six Sigma – Developed by Motorolla Corp,
statistically based approach▶ Similar tools but:
Lean focuses on continuous business processes Six Sigma focuses on discrete projects for improvement
▶ Driving and integrated into company strategy
![Page 8: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/8.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Some Lean Principles….
▶ Time
▶ Money
▶ Effort
Must want to compete…..
![Page 9: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/9.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Rules
1. Fairness2. Firmness3. Consistency
4. Look 5. See6. Understand7. Do
Dealing with People
Dealing with Processes
![Page 10: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/10.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Five Fundamental Lean tools…..
▶ Process Mapping
▶ Physical Flow mapping
▶ Check Sheets – What is going wrong?
▶ Run Charts – Is it getting better or worse?
▶ Teams – People working together to improve their business
![Page 11: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/11.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Key Lean Questions…..
▶ What are you doing?
▶ How are you doing it?
▶ Why are you doing it?
▶ Who is going to improve it?
▶ When?
Capture the FACTS!
Make things better…..
![Page 12: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/12.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
War on Waste- Absolutely Focused & Relentless
▶ Motion▶ Transportation▶ Processing▶ Defects▶ Waiting▶ Over-production▶ Inventory▶ People
![Page 13: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/13.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Lean - Action based on FACTS
▶ Benchmarking = Diagnosis
▶ Best Practice = Medicine
![Page 14: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/14.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Why Benchmarking?
▶ Benchmarking allows us to : Analyse & Improve Key Business Processes-
Qualitative and Quantitative Eliminate Waste Improve Performance Improve Profitability & Market Share
▶ Based on FACTS…..
![Page 15: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/15.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Benchmarking is a continuous systematic process for comparing business processes for improvement...
![Page 16: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/16.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Benchmarking for SuccessTool Use vs Company Development
Stage
Evolutionof Company
1 2 3
DiagnosticHolistic
Process B/mark
Best in Class
![Page 17: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/17.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Acceptable Standards are
constantly changing......
![Page 18: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/18.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
![Page 19: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/19.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
![Page 20: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/20.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
RESULTSSupplier PartnershipsWorld Class ManufacturingCompetitive Products and ServicesBusiness Process ManagementCustomer Partnerships
World Class
JIT
Employee Involvement
TQM
The Medicine
![Page 21: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/21.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
![Page 22: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/22.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
![Page 23: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/23.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Layout / FlowsSet Up Time ReductionManufacturing Systems“Productive” ManagementJIT Supplies
JIT Manufacturing
![Page 24: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/24.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Process CapabilityWaste EliminationTools of QualityCustomer FocusQuality Function Deployment
Total Quality Management
![Page 25: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/25.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Employee Involvement =Expectation
EmpowermentPeople EffectivenessQuality AwarenessGroup problem SolvingImprovement Teams
![Page 26: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/26.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Products and Services
Design for ManufactureDesign for OperationRegulatory ApprovalProduct Evaluation
![Page 27: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/27.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Management
Effective Information TechnologyStructures and StrategiesPlans + Projectscts
![Page 28: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/28.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Office Processes
World Class ProcessesLean Administrative SystemsContinuous ImprovementValue Added Process Identification
![Page 29: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/29.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
▶ Packaging: 16% reduction of packaging line cycle time
▶ Pet-food products: 14% cost reduction per unit
▶ Recycling: Sort line throughput up by 600%
▶ Insulation products: Reduction of the build time from 5 days to 0.8 of a day
▶ Packaging: Net margin increased from 5% to 15%
▶ Engineering: Labour productivity on fabrication line increased by 35%
▶ Food additives: 17.5% reduction in Labour costs
▶ Engineering: 20% Gross profit from current average of 9%
Lean - Sample Results
![Page 30: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/30.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Case Study- Pet Food Ltd
▶ Sector: Food- Pet treats/dental chews
▶ Project Description: Cost reduction programme in packing. Value streams/problem areas defined.
▶ Measurable Success: 4% increase in output per direct employee
2.5% reduction in direct labour costs.
Labour costs as % of sales went from 23.5%-20%
Lead time reduced from 8-6 wks
![Page 31: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/31.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Case Study- Analytical Systems Ltd
▶ Sector: Water treatment
▶ Project Description: Re-organisation of production area/ 5S/Value Streams/Planning schedules
▶ Measurable Success: Capacity increase 150% (2 -5 per wk) New layout allowed for 15% more
capacity 4 week lead time for all products
achievable
![Page 32: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/32.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Lean - Sample Results
▶ Flat Food – Over €10million savings made
▶ County Foods - “Game Changing” result
▶ Medical – 38% improvement on EBITDA
![Page 33: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/33.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
What can you see?
▶ How can you help?▶ How can you add value to your clients, your
business, without conflicting on confidentiality?▶ What about suggesting benchmarking?
![Page 34: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/34.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
▶ On the Floor.... What is current state? Visuals for feedback Detailed use of tools
• Process• Physical• Check Sheets• Run charts• Teams
![Page 35: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/35.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
▶ In the Office.... What is current state? Visuals for feedback Detailed use of tools
• Process• Physical• Check Sheets• Run charts• Teams
![Page 36: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/36.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
▶ For the Management.....
Next Steps Absorption of tools and techniques Focus for the Business
![Page 37: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/37.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Q and A
![Page 38: UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth 1 SPX SME Upgrading Building Capacity, Capability](https://reader036.vdocuments.net/reader036/viewer/2022070305/5513d7b455034674748b4ff7/html5/thumbnails/38.jpg)
UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION
Reducing poverty through sustainable industrial growth
Together Everyone Achieves MoreTEAM