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Operational Excellence & Cost Reduction Sept09
1. Operational Excellence and Cost Reduction Through Lean & Lean-Sigma ADVANCED MANUFACTURING CONSULTANCY SDN. BHD.
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9. The Profitability Dilemma Operating Cost Operating Cost Selling Price Selling Price Increase Price Bigger Profit Bigger Profit Reduced Operating Cost Business as Usual Current Necessity Cost + Profit = Price Price - Cost = Profit
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11. The objective of world-class manufacturing systems is to eliminate or reduce “waste” (non value added activities) in order to: Increase Throughput Rate at which company generates money through sales Reduce Excess Inventory Investment in Raw Material & other variable cost Reduce Operating Expense Fixed Expenses turning Raw Material into Finished Goods
13. Is your $$$ Wasted? Lean Kills Waste! Waste & Value Motion 14% Overprocessing 8% Rework & Repair 10% Transportation 12% Waiting 18% Overproduction & Excess Inventory 22% Adding Value 6% Unutilised Human Resources 10%
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16. The term "Sigma" is often used as a scale for levels of "goodness" or quality. Using this scale, "Six Sigma" equates to 3.4 defects per one million opportunities (DPMO) in manufacturing and other processes
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19. Jack Welch (former CEO of GE) told the audience at a conference that his top 6 focus areas for 2009 were:- a) Keeping costs in-line b) Preparing for the worst-case scenario c) Cash is King d) Leadership has to communicate like hell e) Love your best people f) Buy or bury your competitors As you know Lean & Six Sigma is a proven methodology for achieving the first 3. GE increased it bottom line by $10 billion using Six Sigma, DuPont $2.4 billion, Honeywell $2 billion, Motorola $2.2 billion, and Bank of America cut cycles times in half. There are no better methodologies to cut wasteful and non-value add costs permanently.
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22. Let us work on your productivity issues and get the results you need. Consulting fees is charged only if results are achieved! You only need to pay travel & living expense of consultants if agreed results are not achieved
23. Competency from Operators right up to Operations Directors in: LEAN THEORY OF CONSTRAINTS LEAN-SIX SIGMA
24. Hands-On knowledge transfer for Operators right up to Operations Directors in: LEAN THEORY OF CONSTRAINTS LEAN-SIX SIGMA
25. 30% Class Room Lectures 20% Coaching & Mentoring On Real Projects 50% Hands On Simulations &/Or Hands-On Shop-Floor Activities
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29. Advanced Manufacturing Consultancy Sdn. Bhd. Company Number: 650118D Founded in 2001in Malaysia www.amckaizen.com Pricipal Consultants: J. Ramesh Victor (Lean Master USA) PS Rajj (Lean Master USA) JR VICTOR PS RAJJ Consultants with combined industry exposure of more than 35 years and have travelled internationally to provide Consulting & Training
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32. “ we find your training and coaching sessions informative, practical and professionally delivered. The choice to go wide to give the big picture before drilling down to select areas delivering highest business impact, is a strategy that serves us well…Besides an average of 30 to 40 percent improvement in set up time…, cycle time improvement from 6.5 to 4.2 days…we are also pleased to see a reduction in critical defects... SW Woo, COO Carsem M Sdn Bhd.
33. “ ...they have demonstrated the ability of going into problem factories, and quickly turn around their manufacturing operations. Approximately 7 people in the whole of Seagate 45,000 possessed this skill set ” Richard C. Craven B.Eng, MSc, MBA, CEng, MIMechE Seagate Supplier Lean Manager for Europe & Asia “ Utterly fantastic...without lean implementation at...we would not have met the Barracuda ATA- IV schedules” Matt Johnen. VP Asia Materials (Seagate)