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Bring Your Business to a Higher Level of Performance With Fujitsu’s LEANecoProfits™ Improvement Strategy

Bring Your Business to a Higher Level of Performance With Fujitsu’s LEANecoProfits™ Improvement Strategy

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  • Bring Your Business to a Higher Level of Performance With The LEANecoProfits™ Improvement Strategy LEANecoProfits™ Revision November 30, 2009 Jean-Pierre Dubé, Eng. Vice-President, Lean Solutions Fujitsu Consulting (Canada) inc. Mobile: (514) 710-1550 E-mail: jean-pierre.dube@ca.fujitsu.com FUJITSU CANADA 1 Profits for Your Business and the Planet
  • Agenda Fujitsu in Brief Profits for Your Business and We’ve Got a Problem the Planet What is LEANecoProfits™? FUJITSU CANADA 2 Profits for Your Business and the Planet
  • Agenda Fujitsu in Brief Profits for Your Business and We’ve Got a Problem the Planet What is LEANecoProfits™? FUJITSU CANADA 3 Profits for Your Business and the Planet
  • Fujitsu International business with 175,000 employees in 70 countries 75 years of experience and success Financially sound with annual revenues of US $47B World class know-how and technological knowledge with over 1,500 researchers and 14,000 engineers Major R&D to remain on the cutting edge of new technologies with more than 32,000 patents High performance standards Power to attract top professionals Fujitsu Canada is run by Canadians and has over 2,500 employees who are very familiar with your business environment FUJITSU CANADA 4 Profits for Your Business and the Planet
  • Fujitsu Canada’s Lean Solutions - Industrial Consulting group that specializes in strategy and optimization providing engineering + management to rethink productivity and profitability for the 21st century business “Business Engineers" who understand your language Engineers Precision, rigor and technical depth of engineering combined with the knowledge of modern management and best business practices FUJITSU CANADA 5 Profits for Your Business and the Planet
  • LEAN Projects Conducted in 17 Countries Poland England Canada Germany United States Netherlands China Belgium Switzerland France Mexico Thailand Suriname Morocco Malaysia Brazil Australia FUJITSU CANADA 6 Profits for Your Business and the Planet
  • Some Of Our Customers FUJITSU CANADA 7 Profits for Your Business and the Planet
  • Agenda Fujitsu in Brief Profits for Your Business and We’ve Got a Problem the Planet What is LEANecoProfits™? FUJITSU CANADA 8 Profits for Your Business and the Planet
  • “We’ve got a problem” FUJITSU CANADA 9 Profits for Your Business and the Planet
  • The Industrial Revolution of The 19th Century was Based on … Endless economic growth The intensive use of Earth’s resources The belief those resources were limitless and would always be cheap FUJITSU CANADA 10 Profits for Your Business and the Planet
  • Today’s Economic Development Process was Conceived in the 19th Century!!! Extract Transform Manufacture Consume Discard FUJITSU CANADA 11 Profits for Your Business and the Planet
  • Less than 25% of what Goes into that Process is Transformed into Goods and Services FUJITSU CANADA 12 Profits for Your Business and the Planet
  • If all countries adopted the Western way of life based on mass consumption, … it would take 5 planets to meet everyone’s needs FUJITSU CANADA 13 Profits for Your Business and the Planet
  • End of The Current Economic Development Model Growth Maturity Decline 19th century 20th century 21st century FUJITSU CANADA 14 Profits for Your Business and the Planet
  • Depletion of Earth’s Resources at Current Rate of Consumption 2021: end of silver 2025: end of gold and zinc 2028: end of tin 2030: end of lead 2039: end of copper 2040: end of uranium 2048: end of nickel 2050: end of petroleum 2064: end of platinum 2072: end of natural gas 2087: end of iron 2120: end of cobalt 2139: end of aluminum 2158: end of coal According to Science et Vie hors série N° 243, construire un monde durable, June 2008 durable, FUJITSU CANADA 15 Profits for Your Business and the Planet
  • The New Industrial Development Model Will Have To Be Sustainable And More Effective To survive and st prosper in the 21 century, businesses must immediately adopt a new model of sustainable and more effective industrial development FUJITSU CANADA 16 Profits for Your Business and the Planet
  • What Is Sustainable Development? A pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for future generations United Nations proposed definition (1986) Fair Society Economy Durable Liveable Viable Environment FUJITSU CANADA 17 Profits for Your Business and the Planet
  • Food For Thought ... We’re doing a lot to prepare our kids for the future… but are we doing enough to prepare the future for our kids? FUJITSU CANADA 18 Profits for Your Business and the Planet
  • Agenda Fujitsu in Brief Profits for Your Business and We’ve Got a Problem the Planet What is LEANecoProfits™? FUJITSU CANADA 19 Profits for Your Business and the Planet
  • FUJITSU’s Exclusive Strategy for Sustainably Developing Your Business To help you move from concept to action, Fujitsu Canada’s business engineers have designed a new strategy called LEANecoProfits™, to develop your business in a more sustainable and efficient way FUJITSU CANADA 20 Profits for Your Business and the Planet
  • LEANecoProfits™: A Logical Evolution of Operational Strategies 1900 1900 – 1975 1975 – 1990 1990 – 2009 2009 – Home-made Mass Toyota Production LEAN Production LEANecoProfits™ Production Production System and Enterprise Enterprise Demand Demand greater Demand equal to Demand lower Competition for development than supply supply than supply, raw materials global production and energy; overcapacity greater environmental regulation Custom Standardized Standardized Standardized Greater product products/services goods/services products/services products/services sustainability and tailored to client with options tailored to client recycling needs chosen by clients needs Accent on quality Accent on Accent on Accent on client Accent on and client increasing production and satisfaction and operational, relationship production delivery of top production environmental capacity, quality products, system agility and energy productivity, price at the right time efficiencies and management and in the right controls quantity - Just- In-Time FUJITSU CANADA 21 Profits for Your Business and the Planet
  • The Deployment of LEAN in Enterprises Extended Value Chain 1 Extended Strategic Approach - 1- Supply Chain 2- Internal Value Chain Vision to 5000 m. altitude Emphasis on the overall + 3- Logistic Chain Benefits ($) / Efforts ($) Ratio 4- Product Life Cycle performance of the company and its partners Internal Value Chain 2 Internal Strategic Approach Level of Detail The processes for manufacturing a Vision to 3000 m. altitude product family Emphasis on the overall performance of the company Operational Process 3 Operational Approach Ex: Your production process Vision 500 m. altitude Emphasis on the achievement of Kaizen Workshops Production Unity 4 Tactical Approach Ex: The work methods to operate and Flew over the daisies maintain a machine Emphasis on the deployment of LEAN tools: 5S, Kanban, Cellules, - + Poka Yoke, … FUJITSU CANADA 22 Profits for Your Business and the Planet
  • LEANecoProfits™ Objectives Continually eliminate the waste of resources consumed by businesses … human information material (equipment, tools, etc.) financial natural (water, air, land, forest, etc.) energy (electricity, gas, oil, etc.) … to deliver immediate and sustainable benefits for businesses and the planet FUJITSU CANADA 23 Profits for Your Business and the Planet
  • 4 LEANecoProfits™ Improvement Targets (The 4 Ps) Resources: Human PRODUCTS Information OPERATIONAL PROCESSES Too much Material Too long, complex, variable & inefficient material Financial Too risky & inefficient Too complex Natural Hazardous Energies Materials / Use PERSONNEL Participates in improving your business PLANET Energy Inefficiency Pollution eco Waste LEAN FUJITSU CANADA 24 Profits for Your Business and the Planet
  • 1st LEANecoProfits™ Target – Your Products Materials Contribution to Your Costs General Expenses Product Personal Development 5% 50% 15% 30% =100% 70% 20% 5% 5% =100% Your Cost Cutting Potential FUJITSU CANADA 25 Profits for Your Business and the Planet
  • An LEANecoProfits™ Product means … Fewer drawings Fewer parts for the same functions Fewer POs for procurement Lower inventories Less handling Faster assembly time Less breakage with use Less waste Less pollution Less of everything… FUJITSU CANADA 26 Profits for Your Business and the Planet
  • 2nd LEANecoProfits™ Target – Your Operational Processes Quote from Taiichi Ohno, father of the Toyota Production System: “All we are doing is looking at the time line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value adding wastes” FUJITSU CANADA 27 Profits for Your Business and the Planet
  • Time is Money! Lead Time = In days, weeks or months !!! Supply Chain Value Chain Logistic Chain Suppliers Your Business Customers Process Process Process 1 2 X 1 2 X 1 2 X Department A Subcontractor Department X FUJITSU CANADA 28 Profits for Your Business and the Planet
  • The Health of Your Operational Processes Information and materials PCE measure the health of waiting in each step of your your processes value chain are an excellent The PCE of the majority of your indicator of the health of your processes ≤ 5% operational processes The PCE of a LEAN process ≥ 30% Process Process Cycle Efficiency - PCE 1 2 X PCE = ∑ Time Of Value Added Activity X 100 Process Lead Time Department X FUJITSU CANADA 29 Profits for Your Business and the Planet
  • The Race Against The Snail • The snail moves at an average speed of 450 inches / hour 450 400 • If you calculate the distance traveled by your raw materials, from receipt to 350 shipping, through the various stages 300 of processing 250 200 • And you divide that distance by the 150 total time that these materials have 100 remained in your plant ... 50 • You discover that the snail is usually 0 Snail Your much faster than your business Processes processes!!! FUJITSU CANADA 30 Profits for Your Business and the Planet
  • Much Effort, Few Results Businesses devote a lot of effort and money to improving, automating and computerizing their Process value added activities… 1 2 X those activities represent less Department X than 5% of the time needed to satisfy their customers’ needs … without trying to eliminate or reduce 95% of the non-creative time for their customers FUJITSU CANADA 31 Profits for Your Business and the Planet
  • The 3 Barriers To The Performance Of Your Processes 3 types of barriers, known as 3M, affect the performance of your processes 1 MURA means irregular. The irregularities of material and informational flow in your operational processes 2 MURI means excessive or unreasonable. Your resources overused or underused, and your business practices which are not justified by common sense 3 MUDA means waste. Your activities that consume resources without creating value to your customers FUJITSU CANADA 32 Profits for Your Business and the Planet
  • MURA, MURI & MUDA The visible part for people trained in LEAN thinking 3- MUDA Waste 2- MURI Excessive or Unreasonable 1- MURA Invisible for most people. Often ignored by Irregular companies in the deployment of LEAN FUJITSU CANADA 33 Profits for Your Business and the Planet
  • 3rd LEANecoProfits™ Target – The Planet From the document Toyota in Canada, Our Vision “Eliminating wastes throughout its operations is a key objective for Toyota in Canada. Wastes are not only harmful for the environment, they are synonymous with inefficiencies and added costs, as well as potential lost business opportunities.” FUJITSU CANADA 34 Profits for Your Business and the Planet
  • Anything Coming Out of Your Business that is Not a Product is Waste ($) Resources - Raw Material Products - Natural : water, air, soil, wood, … - Energetic : electricity, gas, ... Business and Manufacturing Processes, Building, Land Your Enterprise FUJITSU CANADA 35 Profits for Your Business and the Planet
  • 4th LEANecoProfits™ Target – Your Personnel Everything has evolved considerably over the past 100 years… However, your work organization has not evolved much and is still heavily driven by mass production conceived and developed close to 100 years ago! FUJITSU CANADA 36 Profits for Your Business and the Planet
  • Traditional Work Organization Your management is segmented and organized vertically into silos (departments) Your products or services move horizontally through those silos You have nobody responsible for managing the interfaces between the silos Every silo has its own objectives and your managers are evaluated individually against them Your Business General Management Customers Suppliers Department A Subcontractor Department X Objective A1 Objective ST1 Objective X1 Objective A2 Objective ST2 Objective X2 Etc. Etc. Etc. Process Process Process 1 2 X 1 2 X 1 2 X Department A Subcontractor Department X FUJITSU CANADA 37 Profits for Your Business and the Planet
  • LEANecoProfits™ Work Organization Marketing Engineering Purchasing Production H-R Manager Manager Manager Manager Manager Product Family A Manager LEAN Projects to improve the value chain A Agent Product Family B Manager LEAN Projects to improve the value chain B Agent General Manager FUJITSU CANADA 38 Profits for Your Business and the Planet
  • Your Employees’ Performance Only 25% to 40% of the activities performed by your employees are value added 3 days a week Performance Indicator: In an Indicator LEANecoProfits™ enterprise, the value added by employees is ≥ 60% FUJITSU CANADA 39 Profits for Your Business and the Planet
  • The 3 Main Causes of Employees’ Low Productivity 1. Your employees do not know what you expect of them Performance targets have not been established, explained and communicated clearly to your employees 2. Your employees do not know if they are doing well or not The current performance of the work is not measured continuously and communicated to your employees 3. Your employees use suboptimal work methods The working methods were not standardized and optimized Your employees are not involved in the standardization and improvement of working methods Most of your employees have been trained on the "job" by their senior colleagues FUJITSU CANADA 40 Profits for Your Business and the Planet
  • LEANecoProfits™ Performance Management System STANDARDIZATION of Increased Productivity By 10 To 20% improved working methods IMPROVEMENT of working methods by your employees (Small Kaizen) GAP ANALYSIS by your employees and managers RIGOROUS MONITORING by your managers of current KPI VS target KPI Definition and implementation of a MONITORING & ACCOUNTABILITY PROCESS for your managers Analysis and optimization of TIME devoted to DIRECT SUPERVISION and COACHING by your managers Definition and implementation of VISUAL DASHBOARDS for KPI continuous monitoring Definition of your VALUE CHAINS, key operational performance indicators (KPI) and a MEASURING SYSTEM (Who, When, How) FUJITSU CANADA 41 Profits for Your Business and the Planet
  • MAPS™ Value Creation Process Measure & Analysis Projects Success STRATEGIC STRATEGIC STRATEGIC Modeling your business Improvement Control and correction by measurement and of your business of projects to ensure analysis of your through the value creation information, material, implementation of financial, energy and projects with the active TACTICAL environmental flows participation of your Continuous control and employees improvement of your This model will help operations to eliminate identify projects that TACTICAL performance gaps create value for your Implementation of a stockholders, stockholders management system to customers, employees customers measure and and the planet continuously monitor the performance of your operations 1 month 18 to 24 months FUJITSU CANADA 42 Profits for Your Business and the Planet
  • Why To Model Your Business? A business that has not been globally defined, measured and analyzed cannot be improved and controlled Suppliers Your Business Customers 1 2 X 1 2 4 5 6 7 8 X 1 2 X Information Flows 1 2 X 1 2 3 4 5 6 7 X 1 2 X Materials Flows Financial Flows Environmental and Energy Flows eco LEAN FUJITSU CANADA 43 Profits for Your Business and the Planet
  • Why To Model Your Business? You cannot just repeat the best business practices of other companies (benchmarking) to sustainably develop your business You must aim for perfection and define your own picture of it That picture must become your reference model, not the picture of your competitors This rule allowed Toyota to become THE world leader FUJITSU CANADA 44 Profits for Your Business and the Planet
  • How To Identify Projects That Create Value? The most successful High businesses are those that BENEFITS know how to deselect Medium projects, despite the enthusiasm of employees and managers, to cut their Low number to a level Low Medium High EFFORT compatible with the resources they have High You cannot settle BENEFITS everything at the same Medium time because your human and financial resources are certainly limited Low Low Medium High EFFORT FUJITSU CANADA 45 Profits for Your Business and the Planet
  • Actual Example of an LEANecoProfits™ Enterprise Manufacturing company founded in 1982 and located in Canada 22,000 ft2 plant 121 employees 2007 revenues of $19,5M The stockholder decided to become LEANecoProfits™ to increase his company’s value before selling it FUJITSU CANADA 46 Profits for Your Business and the Planet
  • LEANecoProfits™ Projects Delivered PROJECT 1 - Strategic Planning PROJECT 8 - Improve the planning Workshop to review the operational process strategy with the executive committee PROJECT 9 - Improve the PROJECT 2 - Develop a change procurement management management plan to facilitate business transformation PROJECT 10 - Improve the production scheduling process PROJECT 3 - Develop and implement a LEANecoProfits™ performance PROJECT 11 - Implement virtual management system production cells PROJECT 4 - Improve and automate PROJECT 12 - Reduce setup time the product development (SMED) on bottleneck production management including eco-design equipments PROJECT 5 - Review and optimize PROJECT 13 - Improve the finished the design of products dedicated to good management including shipping the European market & delivery PROJECT 6 - Improve the SOP PROJECT 14 - Improve the costing process (Sales & Operation Planning) system PROJECT 7 - Improve the customer orders process FUJITSU CANADA 47 Profits for Your Business and the Planet
  • Results $3.1M growth in value of capital in 18 months Investments FUJITSU development of Measure & Analysis phase = $52,480 FUJITSU collaboration on Projects and Success phases = $295,650 TOTAL = $348,130 Total Investment: Only 11,2% of the $3.1M growth in the value of capital FUJITSU CANADA 48 Profits for Your Business and the Planet
  • This document is the sole and exclusive property of Fujitsu Canada The unauthorized use, disclosure or reproduction, in any form whatsoever, of the material found in this document is expressly prohibited. Any unauthorized or illegal use will make the user liable to any appropriate legal action available to Fujitsu Canada © Fujitsu Canada– All rights reserved Canada FUJITSU CANADA 49 Profits for Your Business and the Planet
  • Lean Solutions–Business Transformation FUJITSU CANADA Profits for Your Business andFujitsuPlanet 3 © the Canada