Session 2
April 2013
Improving
Operational
Performance
To introduce lean organisation techniques in business.
Session Aims
By the end of this session you will be able to:
Describe the concept of a lean environment.
Implement a productivity nee...
Lean is a term used to express a range of business
improvement techniques. It originated from the need to
constantly impro...
There are lots of examples of lean thinking that date as far
back as the 18th
century, but the first person to really
inte...
The problem with Fords system was that there was no
variety. The Model T was limited to one colour and to one
specificatio...
Before long people wanted choice, a choice of models, a
choice of specifications and a choice of colour.
Carmakers respond...
At the end of World War 2 America was the leading
producer in the world.
However, Japan was in need of economic re-birth a...
Lean production is a state where waste is reduced or
eliminated totally from a process, where almost every step
adds value...
Lean applies in every business and every process. It is not
a cost reduction program but a way of thinking and acting
for ...
There are many benefits to implementing a lean approach
in any organisation, such as;
Improved productivity
Reduced wast...
The starting point of any lean organisational journey should
be implementing a productivity needs analysis.
This is an ess...
The process of carrying out a productivity needs analysis
involves gathering all the necessary information that you will
n...
By the end of this session you will be able to:
Describe the concept of a lean environment.
Implement a productivity nee...
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Morrisons session 2

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  • Wm Morrison Supermarkets Plc
  • Introduce session aims.
  • Introduce session objectives.
  • Introduce session objectives.
  • Discuss historical lean thinking – Eli Whitney producing rifles with interchangeable parts during the American Civil war.
  • Discuss the problem with creating one model. Why was creating multiple models difficult? – changeovers. Explain that when Ford first started to mass produce the Model T people did not want choice, this was an affordable car for the masses, nobody cared about choice at this stage. Explain that Fords statement of having any colour as long as it was black was because he discovered that black paint dried quicker allowing shorther throughput times.
  • Explain that outbreak of WW2 meant that manufacturing became a race against time, buiding ships, aircraft, and ammunitions become the sole focus of industrialised countries, and they built them quickly.
  • After the war, Deming and Juran both received an invitation to work in Japan from the Union of Japanese Scientists and Engineers. Deming taught Japanese engineers and top management statistical methods and how to view production as a system that included suppliers and consumers. Juran delivered lectures in Japan about managing for quality.
  • Ask what the learners think customer satisfaction is. Ask who there customers are – then discuss internal and external customers.
  • Introduce the PNA – relate it to the activity, MB/plugs. Breifly discuss key performance indicators and measures. Explain gap analysis and how this will focus lean activities.
  • Introduce session objectives.
  • Morrisons session 2

    1. 1. Session 2 April 2013 Improving Operational Performance
    2. 2. To introduce lean organisation techniques in business. Session Aims
    3. 3. By the end of this session you will be able to: Describe the concept of a lean environment. Implement a productivity needs analysis. Session Objectives
    4. 4. Lean is a term used to express a range of business improvement techniques. It originated from the need to constantly improve quality while reducing the costs of the production performance in the manufacturing sector. The concepts of this approach are now used as the basis for improvement across every sector, improving business performance by eliminating waste and increasing efficiency. What is lean?
    5. 5. There are lots of examples of lean thinking that date as far back as the 18th century, but the first person to really integrate an entire production process was Henry Ford. What
    6. 6. The problem with Fords system was that there was no variety. The Model T was limited to one colour and to one specification. When the world wanted variety, Ford seemed to loose his way. “Any customer can have any car, any colour they want, as long as it’s black”. – Henry Ford 1912.
    7. 7. Before long people wanted choice, a choice of models, a choice of specifications and a choice of colour. Carmakers responded by filling their plants with larger and larger machines than ran faster and faster – but the problem was that this increased throughput times and inventory. Then the world was interrupted by the outbreak of World War 2.
    8. 8. At the end of World War 2 America was the leading producer in the world. However, Japan was in need of economic re-birth and viewed quality as essential to their economy. W. Edwards Deming and Joseph Juran travelled to Japan and helped the country become the industrial power it is today. Their teaching lead to the birth of the Toyota Production Sytem.
    9. 9. Lean production is a state where waste is reduced or eliminated totally from a process, where almost every step adds value to the product for the customer, where products flow continuously without being held up or creating bottlenecks, where every part made is made to the required standard first time every time.
    10. 10. Lean applies in every business and every process. It is not a cost reduction program but a way of thinking and acting for an entire organisation. A lean organisation understands customer value and focuses its key processes to continuously increase it. It will look at every aspect of the business and look to improve the flow of information and services in order to achieve 100% customer satisfaction.
    11. 11. There are many benefits to implementing a lean approach in any organisation, such as; Improved productivity Reduced waste Improved lead time Improved stock turns Being able to respond to change efficiently Benefits of lean
    12. 12. The starting point of any lean organisational journey should be implementing a productivity needs analysis. This is an essential tool in measuring where the organisation is compared to where the organisation wants to be. Most organisations follow a set of measures within their business known as key performance indicators. Productivity needs analysis
    13. 13. The process of carrying out a productivity needs analysis involves gathering all the necessary information that you will need. This could include information from customers about expected order levels, quality concerns, historical data on machine reliability, data around staff skills, material costs etc.
    14. 14. By the end of this session you will be able to: Describe the concept of a lean environment. Implement a productivity needs analysis. Session Objectives

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