Lean Management and Outsourcing<br />
Lean Philosophy ?<br />A tool for Streamlining processes <br />and<br />Improving Efficiency <br />By<br />Focusing  on th...
Timeline of Lean Philosophy<br /><ul><li>Frederick Winslow Taylor 	– 	American Mechanical  				    		Engineer – Scientific...
Why go Lean?<br />To improve: <br />Customer service <br />Reduced waiting times <br />Lower costs <br />Improved customer...
Who is Customer?<br />Whosoever  is going to buy your ideas, services or products or affected by your processes is your cu...
The Five Principles of Lean Management<br />Specify the value desired by the customer <br />Identify the value stream for ...
The Eight Wastes in Services<br />Transport - Unnecessary movement of materials, people, information or paper.<br />Invent...
Tools to Implement Lean Management<br />	Lean has a number of tools that can be used to help you. These tools are designed...
Value stream mapping
5S for workplace organisation</li></li></ul><li>What does your customer want?<br /><ul><li>The best way to find out is to ...
Arrange to visit, if possible or gather data about what they need from you.
Use feedback forms (printed or electronic) to ask your customer to rate your service.
Encourage feedback – good AND bad. A silent customer isn’t necessarily a happy customer
Collect data on what customers are asking you when they get in touch, in their own words.</li></li></ul><li>Measuring and ...
How long work or customers spend waiting for the next step in the process.
Volume of work dealt with, and how this varies over a year,  week or month
Number, type and source of errors.
Frequency and type of customer demand – what are your customers asking for, do most of them want similar things, and are t...
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Lean management latest

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

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