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Lean management latest

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  • 1. Lean Management and Outsourcing
  • 2. Lean Philosophy ?
    A tool for Streamlining processes
    and
    Improving Efficiency
    By
    Focusing on the needs of the customer..
  • 3. Timeline of Lean Philosophy
    • Frederick Winslow Taylor – American Mechanical Engineer – Scientific Management – Time & Motion study-1890
    Jidoka (Autonomation) – By Toyoda - 1902
    Henry Ford – Pioneer of US Automobile Sector - Mass Production (Flow Production) 1908 -1913
    JUST-IN-TIME – Toyota Motor Company - 1937
    Toyota Production System – Toyota Motor Company 1960
  • 4. Why go Lean?
    To improve: 
    Customer service
    Reduced waiting times
    Lower costs
    Improved customer experience
    Quality and efficiency
    Staff morale
    Internal communication and cooperation
    In the public and private sector
  • 5. Who is Customer?
    Whosoever is going to buy your ideas, services or products or affected by your processes is your customer
    Customer may be internal or external
    In public sector:
    citizens are external customers
    The associates or other departments are internal customers.
    and
    Customer is the king
  • 6. The Five Principles of Lean Management
    Specify the value desired by the customer
    Identify the value stream for each product providing that value and challenge all of the wasted steps currently necessary to provide it
    Make the product flow continuously through the remaining, value-added steps
    Introduce pull between all steps where continuous flow is possible Pull, is about creating an environment where you get what you need, when you need it. Not through forecasting, but by creating a fast production chain that allows you to order what you need when a specific event triggers that order
    Manage toward perfection so that the number of steps and the amount of time and information needed to serve the customer continually falls
  • 7. The Eight Wastes in Services
    Transport - Unnecessary movement of materials, people, information or paper.
    Inventory - Excess stock: unnecessary files and copies, and extra supplies.
    Motion - Unnecessary walking and searching; things not within reach or accessible.
    Waiting - Idle time that causes the workflow to stop, such as waiting for signatures, machines, phone calls.
    Over-production - Producing either too much paperwork / information, or producing it before it is required. This consumes resources faster than necessary.
    Over-processing - Processing things that don’t add value to the customer, e.g. asking for details multiple times, excessive checking or duplication.
    Defects - Work that needs to be redone due to errors (whether human or technical) or because incorrect or incomplete information was provided.
    Skills misuse - Not using full potential of staff; wasting the available knowledge, experience and ideas.
  • 8. Tools to Implement Lean Management
    Lean has a number of tools that can be used to help you. These tools are designed to be quick and simple to use, and present information in a visual way that is easy to understand.
    • Measuring and Data-gathering
    • 9. Value stream mapping
    • 10. 5S for workplace organisation
  • What does your customer want?
    • The best way to find out is to ask them.
    • 11. Arrange to visit, if possible or gather data about what they need from you.
    • 12. Use feedback forms (printed or electronic) to ask your customer to rate your service.
    • 13. Encourage feedback – good AND bad. A silent customer isn’t necessarily a happy customer
    • 14. Collect data on what customers are asking you when they get in touch, in their own words.
  • Measuring and data-gathering
    • End-to-end time of dealing with a work unit (this may be an individual file or application, a visitor, an invoice, a transaction, signing of contract, approval of a project proposal, promotion, confirmation, transfer or termination of an employee).
    • 15. How long work or customers spend waiting for the next step in the process.
    • 16. Volume of work dealt with, and how this varies over a year, week or month
    • 17. Number, type and source of errors.
    • 18. Frequency and type of customer demand – what are your customers asking for, do most of them want similar things, and are they currently receiving what they want from you?
  • Value stream mapping
    • A key part of the Lean methodology is value stream mapping.
    • 19. Valueis anything that is worthwhile from the customer point of view i.e.
    • 20. Utility
    • 21. Price
    • 22. Quality
    • 23. Timeliness
    • 24. Aesthetics
    • 25. Capacity
    • 26. Availability
    • 27. The stream is the journey from end to end. The ideal process flows smoothly, to deliver output to the downstream customer as quickly and efficiently as possible.
  • Value stream mapping
    • Start with where you are now. Map each step of your service journey from the customer’s point of view.
    • 28. This will be most effective if it is done in a group, by the people who do the work.
    • 29. It’s important that EVERY step is included, as this is a picture of how things really are rather than how things should be.
    • 30. The value stream map can be hand drawn, or even done with Post-IT notes.
    • 31. Once you have a current state map of your customer journey, identify all the steps which add value to the customer.
    • 32. Everything else is either non-value adding or is waste.
  • Sort
    Sustain
    Straighten
    Shine
    Standardise
    Using 5S to organise your workplace
    Sortand remove unnecessary items.
    Straightenup your work area so that you have easy and efficient access to everything you need.
    Shine means making sure everything is clean and in good working order.
    Standardise by creating guidelines for keeping the area organised.
    Sustain by making 5S a habit.
  • 33. Barriers
    People
    Lack of ownership
    Identity of improvement team members
    Failure of leadership
    Compartmentalisation
    Weak link between improvement programmes and strategy
    Lack of resources
    Poor communication.
  • 34. How can you make Lean work
    • Organizational culture and ownership
    • 35. Making a real time commitment – the more time you can put in, the quicker the results and greater the rewards will be.
    • 36. External support
    • 37. Teamwork
    • 38. Allocating the resources and getting everyone involved.
    • 39. Being clear about what you want to achieve.
    • 40. Communicating with your team, and listening to their suggestions.
    • 41. Timing
  • How can you make Lean work
    If you and your colleagues are working with the Lean project team, it’s also helpful if you:
    • Stay flexible and stay involved.
    • 42. Keep an open mind about the possibilities.
    • 43. Commit to sustaining effort over time.
  • Lean Philosphy
    If you can communicate with one word
    Why to use two words
  • 44. The End

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