Your SlideShare is downloading. ×
Lean Business Cycle
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Lean Business Cycle


Published on

Six Step process to a Lean Manufacturing Environment

Six Step process to a Lean Manufacturing Environment

Published in: Business, Education

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. 27 Legend court, PO Box 10068, Ancaster, ON, L9K 1P2 905-304-1833 INFORMATION FLOW MANAGEMENT INC. The six steps to create and implement a lean manufacturing environment
  • 2. 27 Legend court, PO Box 10068, Ancaster, ON, L9K 1P2 905-304-1833 INFORMATION FLOW MANAGEMENT INC. If after review you have any questions contact Kit Staley at IFM Inc. 905 304 1833 or visit the web site above. The six steps to create and implement a lean manufacturing environment
  • 3. Today, in most companies it is not a question of what to do ? Process Reengineering - Total Quality Management Activity Based Costing - Cycle Time Management Employee Empowerment - Value Added Team Building Just in Time - Total Preventative Maintenance New Product Introduction - Statistical Process Control Creating A Lean Organization - Being A Virtual Corporation Etc - Etc - Etc It is a question of how to do it
  • 4. Differences in Approach to Change
    • BPR is a form of innovation (radical change)
    • Continuous improvement is an evolutionary process involving multiple smaller changes over time
  • 5. The Total Business Cycle Time Concept (TBCT)
    • Cycle Time creates value (cash) or it creates waste (cost)
    • Cost is all non-value adding activities (waste) and typically accounts for 90% of an organization's activities
    • Consumption of time is the consumption of cash and the reduction of that time creates cash: less working capital and more operating profit
    • To be competitive now , time must be converted from cost (waste) to cash (value)… continually…forever
  • 6. TBCT Process Education/Training Implementation Process Business Assessment Continuous Improvement Executive Awareness Vision Analysis Planning Execution Competitive Edge Business Assessment Education & Training Facilitation Focused Support
  • 7. THE TOTAL BUSINESS CYCLE TIME LOOPS IN A BUSINESS Strategic Business Development Loop New Product Introduction (NPI) Loop Supply Management Loop Make/Ship Loop Distribution Loop Customer Expectation (New Products) Customer Expectation Existing Products
  • 8. Imagine The Vision
    • Total business cycle time inside customer delivery expectation for present and future products/services
    • Minimal inventory in all forms
    • Perfect quality products/services
    • Total cost performance excellence
    • Employee empowerment
    • A distinct competitive edge
  • 9. Business Process Flow Strategic Goal
    • Evolve Toward The “Perfect Business Process”
    • Lowest cost and highest quality via:
    • Minimal cycle time
    • Zero scrap or rework
    • Improved labour utilization and efficiency
    • Total flexibility
    • Perfect quality
    • Minimal support/maintenance costs
    • Minimal material handling or transportation
    • Low to zero changeover time
    • Batch size = 1
    • WIP ratio > 1
  • 10. Business Process Flow Strategic Goal
    • This will be achieved through the planned implementation of technical, procedural and organizational modifications to the present business process.
  • 12. People - The Drivers of TBCT
    • Evolution Issues
    • From a variable expense to a value adding asset
    • TBCT Process is dependent on employee empowerment
    • Key Ingredients:
      • authority
      • motivation
      • skill
      • information
    • From autocratic top down hierarchies to flatter participatory networks
  • 13. Empowerment Requirements
    • Understand Role:
    • Motivated by Goal:
    • Provide the Proper Skills & Education:
    • Employee’s role is to continually search for generations of waste and eliminate them.
    • Remove all work between customer and any person who does not add value.
    • Training to design and execute activities they perform.
  • 14. A Participatory Management Model
    • supports enforced problem solving
    • is an open process not a manipulative one
    • is not an ideal model - rather it is supportive of a CI environment
    • sees traditional technical functions (e.g. quality control) as an operational function (part of operations job)
    • provides grassroots support for the evolution plan
  • 15. Making TBCT Work
    • Training &
    • Education
    Communications & Objectives Vision & Strategy Role Clarity & Measurements Skill - “ How To” Information - “ What To” Motivation - “ Want To” Authority - “ Expected To”
  • 16. People
    • Knowledge of discrete process elements
    • Single skill
    • Redundancy of people
    • Job narrowly defined
    • Individual tasks
    • Pay for Task
    • Variable expense
    • Supervisor controls
    • Operators
    • Push decision - making up
    • Efficiency
    • Knowledge of whole system
    • Multi-skill
    • Redundancy of function
    • Job broadly defined
    • Group accountabilities
    • Pay for Knowledge
    • Fixed asset Leader concurs
    • Problem solvers
    • Push decision - making down
    • Cycle Time
    • Quality
    Traditional TBCT
  • 17. Making Change Happen!
    • 1. Un-Freeze
    • Convince that what we’ve done until now is only the first step in a CI evolution
    • 2. Re-Position
    • Re-position thinking:
    • - education
    • - readings
    • - experience (pilot)
    • 3. Re-Freeze
    • Need to Re-freeze
    • so people don’t revert to S.O.W.!
    1. Un-Freeze 2. Re-Position 3. Re-Freeze
  • 18. Gaining Commitment Align Needs
    • The SELLING Zone
    Organization Needs Organization Wants Personal Needs
  • 19. TBCT ( Total Business Cycle Time) Implementation Process
  • 20. TBCT Process Education/Training Implementation Process Business Assessment Continuous Improvement Executive Awareness Vision Analysis Planning Execution Competitive Edge Business Assessment Education & Training Facilitation Focused Support
  • 21. vcib
  • 22.  
  • 24. TBCT Implementation Approach
    • Promotes early involvement/education/facilitation
    • Formal implementation structure
    • Management approval and problem escalation
    • Strong participation at all levels
    • (Planning & Implementation)
  • 25. Total Business Cycle Time Reduction Is A Large Undertaking
    • You’re trying to move a whole organization toward a cycle time management approach
    • How do we avoid lack of management control but still get everyone involved?
    • How do we avoid the dabble syndrome?
    • How do we avoid the multi-program on -project syndrome?
  • 26. The “Evolution Plan” Concept
    • The Problem
    • The lack of a consolidated strategic plan that provides sufficient focus for the organization to effectively plan and execute its evolution into the future.
    • The Solution
    • The “Evolution Plan Concept” allows for all strategies to be consolidated into one plan and also ensures that a consistent message is communicated to all levels in the organization. The focus of the Evolution Plan is Cycle Time Improvement - a key to the other evolution imperatives.
    • Cycle Time Improvement (and the techniques for managing Cycle Time) acts as a central and universal theme and measurement device for the generation of all evolution project activities and the results necessary for a World Class business.
    • A short Cycle Time operation is the outcome of a successful Evolution Plan implementation.
  • 27. The Evolution Plan
    • Provides 1 single Strategic Plan with contribution at ALL levels
    • Encompasses the Mission for the organization
    • Integrates into the company 5 year plan
    • Provides input to the budgetary process
    • Allows a framework for Continuous Improvement
    Management Team Evolution Team Departments Resources Existing Organization Approval Team Approval Team
  • 28. The Evolution Organization
    • A team approach with management involvement and strong participation at all levels is strongly suggested
    • Delegation of involvement should only take place after a clear mandate and scope for any evolution activity has been set
    • A team structure needs to exist outside the existing department structure
  • 29. TBCT Implementation Benefits
    • A proven process
    • Integrated with appropriate education & training
    • Helps develop an organization-wide Mission Statement (tied to Company’s Strategic Plans)
    • Encompass the total implementation cycle, leading to full institutionalization
    • Supports the development of a participative culture and forms a team approach to problem solving (involvement of ALL functions at ALL levels)
    • Provides an organized approach towards change for Continuous Improvement (keeping the momentum going)
    • Ensures implementation success!
  • 30. The Evolution Plan Team Structure
  • 31. The 6 Steps to Implement Total Business Cycle Time Goals Step Activity Output Purpose Responsibility
  • 32. The Evolution Plan Team Structure
    • The Mission Statement
    • Define role of approval team
    • Risk assessment
    • Management forum agenda
    • Management actions necessary
    MANAGEMENT TEAM (Approval Team) PLANNING Step 1
  • 33. TBCT Implementation Preparation
    • Do Not :
    • Under estimate the tasks
    • Become frustrated
    • Be Prepared :
    • To plan
    • To approach in a disciplined manner
    • To follow the guidelines
  • 34. Role of Approval Team (Steps 1 to 4)
    • Provide continuous contributions to the “team approach” concept to the entire organization
    • Conduct ongoing risk assessment for success of IFM “Evolution Plan” (and support via risk elimination action)
    • Adopt a participative management style for delegating the generation of the “Evolution Plan”
    • Approve (or provide constructive input) to the Evolution Plan at Step 4
    • Delegate to members of the Planning Forum:
    • I) the mission statement (develop first draft only)
    • II) responsibility for generating the Evolution Plan
  • 35. Deliverables Expected from Approval Team Kick-Off Meeting
    • The Mission Statement
    • The Mission Statement Presenters
    • Clear Definition of Approval Team Role
    • Management Forum Membership
    • Closure on the Management Forum Agenda
    • Rough Schedule for Evolution Plan Generation
    • First Path Implementation Risk Assessment
    • A List of Management Level Actions
    • A “Cohesive” Management Team
  • 36. The Successful Launch!
    • Good Planning
    • Discipline
    • Following guidelines
    • Managing the pressure of change
    • Correct participative culture
    • Smooth execution of the plan
  • 37. Some Prerequisites For Successful Implementation
    • Committed and enlightened management team
    • Ability/commitment to communicate/educate all levels
    • Satisfactory resource allocation/invest in training
    • Strong participative culture base
    • Sound project management/planning/facilitation skill set
    • Careful management of change
      • communication (across whole organization)
      • involvement (all levels)
      • reinforcement (continuous)
      • clear visibility of change (early visibility)
      • “ fear free” environment (demonstrated)
    • Pre-education of all participants on:
    • 1. Continuous Improvement concepts
    • 2. Implementation tools
  • 38. Approval Team Member Responsibilities
    • Approve the Evolution Plan and project activities (phases)
    • Attend program review and approval meetings
    • Provide actions to redirect Evolution project priorities and status
    • Identify requirements for the re-organization of the Evolution program and projects
    • May also serve as Program Leader
    • Rules of Membership…
    • provide clear direction and decisions
    • consider project recommendations
    • be prepared to be participative and work to team consensus, both within and outside Approval Team
  • 39. The Evolution Plan Team Structure
    • Position Analysis
    • Define Baseline/Entitlement/Benchmark
    • Detailed organizational maps
    • Form review teams (areas of focus)
  • 40. Measuring Cycle Performance Levels
    • Baseline: Current level of performance
    • Entitlement: Should be level of performance that can be achieved with present capital investment
    • Benchmark: Best competitive performance may need additional resources or technology
  • 41. The Evolution Plan Team Structure
  • 42. Program Leader Responsibilities
    • Manages the process rather than gives approval
    • Receives status, inputs and problems impeding project progress from the project leaders and coordinates solutions
    • Provides support and coaching
    • Reports overall status on the projects grouped under the package
    • Coordinates the approval team activities for each project in the program
    • Ensures that approval milestones are completed prior to a project proceeding to the next phase
  • 43. Project Leader Responsibilities
    • Manages the project activities
    • Reports status to program leader
    • Calls project review meetings
    • Coordinates action lists/ meeting minutes
    • Coordinates presentations to Approval Team
    • Identifies project schedule problems to program leader
    • Provides team focus & leadership when required
    • Identifies project resource requirements and/ or constraints
    • Identifies external to project team requirements (i.e. training, etc.)
  • 44. The Project Leader
    • Ability to accept responsibility
    • Ability to Coordinate
    • Ability to make trade-offs
    • Good communication skills
    • Respected in all operations
    • Prepared to work under pressure
    • Ability to differentiate between the important and the imperative
  • 45. Forum Team Responsibilities
    • Agree forum support and schedule requirements with forum leader
    • Agree and perform tasks or actions assigned and coordinate solutions
    • Provide status on tasks/actions to forum leader against agreed schedule
    • Keep immediate supervisor informed of team support requirements
    • and task status when non-team priorities conflict with team priorities
    • Be prepared to “work as a team”
  • 46. Management Approval Meeting
    • Presentation of project process (detailed review)
    • Request approval to proceed from Approval Team
    • Present resources & funds required to complete project
    • Give brief on return-on-investment/ payback
    • Update schedule
    • Outline of detailed work performed to-date
  • 47. Approval Team Actions
    • Provide commitment to the “team approach” concept to the entire organization
    • Agree on project goals (scope & mandate)
    • Define project vs. functional authority and responsibility
    • Agree choice of project leader
    • Choice of the functional manager(s) to participate in the program/project structured
    • Supply adequate resources to the projects
  • 48. Monthly Evolution Plan Review
    • Presentation of project process
    • Progress update on overall Evolution Plan
    • Escalation of impediments to progress on each project
    • Review of resources across whole Evolution Plan
    • Define Approval Team actions
    • Deliberate on status change to projects
    • Identify new projects
    • Arrange update of Evolution Plan
  • 49. Key Principles To Remember
    • Must manage as a system
    • Simplification of process (+ product)
    • Eliminate “non value added” activities
    • Improvement must be continuous
    • People are the key evolution ingredient
  • 50. The Tools Require Everybody To Focus On:
    • Right product
    • Right time
    • Right price (cost)
    • Right quality
    • Right quantity
    Total Business Goals “Customer Satisfaction”
  • 51. Baseline/Entitlement/Benchmark
    • Baseline, Entitlement and Benchmark are 3 levels of performance (to a number of criteria], at which a business (or part of a business) may function
    • It should be the goal of each function or subsystem to move from BASELINE to ENTITLEMENT, then to BENCHMARK in the parameters critical to the business:
      • cycle time
      • cost
      • quality
      • etc.
  • 52. Continuous Improvement Environment Total Quality Improvement Capital input Zero capital Total Business Cost Reduction Total Cycle Time Improvement Benchmark Baseline Entitlement
  • 53. Each aspect of a corporation is currently performing at some measurable level, referred to as BASELINE performance, e.g. unit cost, manufacturing cycle time, time to complete a new design, order entry cycle time. Baseline
  • 54. Entitlement The corporation has already made investments in plant, equipment, software, designs, processes and people. These investments ENTITLE the corporation to a level of performance, most often substantially higher than BASELINE. We refer to the level of performance available with the CURRENT resources (and investments) as ENTITLEMENT performance. To reach ENTITLEMENT requires that the ENTITLEMENT level be defined, constraints be identified, and corrective action taken.
  • 55. Benchmark BENCHMARK is defined as best competitive performance, most often requiring additional or modified resources to meet BENCHMARK in addition to isolation of constraints and corrective action. To get to BENCHMARK, with intelligent addition of resources, requires that ENTITLEMENT is fully understood and close to realization before additional resources are committed.
    • Establish Levels
    • Work Toward ENTITLEMENT
    • Identify Impediments
    • Establish Causes
    • Develop Action Plans
    • Redefine BASELINES
    • Make Realistic Investments
    • To Reach BENCHMARK