Operational Excellence & Cost Reduction Sept09


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AMCKaizen's the holistic solutions provider in operational excellence and cost reduction

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Operational Excellence & Cost Reduction Sept09

  1. 1. Operational Excellence and Cost Reduction Through Lean & Lean-Sigma ADVANCED MANUFACTURING CONSULTANCY SDN. BHD.
  2. 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
  3. 10. FAST TRACK APPROACH TO ACHIEVE YOUR TARGET <ul><li>Immediate solutions are available to help you survive the economic crisis facing the world. The Clock is ticking………! </li></ul>
  4. 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
  6. 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%
  7. 16. The term &quot;Sigma&quot; is often used as a scale for levels of &quot;goodness&quot; or quality. Using this scale, &quot;Six Sigma&quot; equates to 3.4 defects per one million opportunities (DPMO) in manufacturing and other processes
  8. 17. <ul><li>LEAN-SIGMA methodologies to achieve </li></ul><ul><li>ZERO DEFECTS . </li></ul><ul><li>Achieve “bulls eye” results always with these proven methodologies </li></ul>FAST TRACK APPROACH TO ACHIEVE YOUR TARGET
  9. 18. <ul><li>The Theory of Constraints is a focused and proven approach of identifying what </li></ul><ul><li>limits (constraints) a system from achieving it’s profit goals or continuously </li></ul><ul><li>achieving higher goals and exploiting/improving these constraints in order </li></ul><ul><li>to achieve quantum gains </li></ul>
  10. 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.
  11. 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
  12. 23. Competency from Operators right up to Operations Directors in: LEAN THEORY OF CONSTRAINTS LEAN-SIX SIGMA
  13. 24. Hands-On knowledge transfer for Operators right up to Operations Directors in: LEAN THEORY OF CONSTRAINTS LEAN-SIX SIGMA
  14. 25. 30% Class Room Lectures 20% Coaching & Mentoring On Real Projects 50% Hands On Simulations &/Or Hands-On Shop-Floor Activities
  15. 26. CULTURE PHILOSOPHY TECHNOLOGY <ul><li>Lean Principles </li></ul><ul><li>8 Waste </li></ul><ul><li>Value vs Non Value Added </li></ul><ul><li>Value Stream map </li></ul><ul><li>Flow </li></ul><ul><li>Takt Time </li></ul><ul><li>Just In Time </li></ul><ul><li>Kanban System </li></ul><ul><li>Visual Systems </li></ul><ul><li>Standardized Work </li></ul><ul><li>TPM </li></ul><ul><li>Quick Setups </li></ul><ul><li>Error Proofing </li></ul><ul><li>Kaizen </li></ul>Competent, flexible and motivated employees who operate in a continuous improvement culture THE LEAN TRIANGLE WE PROVIDE HOLISTIC SOLUTIONS TOWARDS CREATING A LEAN CULTURE
  16. 27. CULTURE PHILOSOPHY TECHNOLOGY <ul><li>Flow </li></ul><ul><li>Just In Time </li></ul><ul><li>Visual Systems </li></ul><ul><li>Standardized Work </li></ul><ul><li>Kaizen </li></ul>PRETEND LEAN
  17. 28. <ul><ul><li>Assessments & Opportunity identification </li></ul></ul><ul><ul><li>Diagnostics to identify Waste </li></ul></ul><ul><ul><li>Factory Audit and scoring </li></ul></ul><ul><ul><li>Engaged with client in Projects and cost saving initiatives </li></ul></ul><ul><ul><li>Supplier Lean initiatives – speeding time to respond </li></ul></ul><ul><ul><li>Lean Tools Training </li></ul></ul><ul><ul><li>Lean Master Certification Program </li></ul></ul><ul><ul><li>Lean-Sigma training </li></ul></ul><ul><ul><li>Change management training </li></ul></ul><ul><ul><li>Public Seminars </li></ul></ul><ul><ul><li>Executive Boot-camps </li></ul></ul><ul><ul><li>Identifying System Constraints & Bottlenecks </li></ul></ul><ul><ul><li>Increasing bottleneck Capacities with </li></ul></ul><ul><ul><li>Low Cost or No Cost Solutions </li></ul></ul>
  18. 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
  19. 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.
  20. 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)
  21. 34. <ul><li>“ Lean Manufacturing in general opinion is too BIG and difficult to be achieved. But with AMC as our trainer/consultants Lean has become easily understood by Belton candidates of all levels. Lean has become applicable in Belton” </li></ul><ul><li>Pongyut, Director of Engineering </li></ul><ul><li>Belton Industrial, Thailand </li></ul><ul><li>“… .result is...very ordinary people here ( Production Supervisors, Engineers), moving on very ordinary projects ( Poka--yoke, UPH improvement, Kanban system, etc) for some VERY extra-ordinary results. I  am very pleased that so much dollars and cents has been saved with a lot of simple, sensible and stellar projects. </li></ul><ul><li>Keep up the good work and I am so proud with all of you.” </li></ul><ul><li>  </li></ul><ul><li>Comment of Managing Director of Finisar to </li></ul><ul><li>AMC Lean Master Candidates </li></ul>
  22. 35. <ul><li>“ Lean Manufacturing came at the right time to save millions of dollars for us in capital avoidance…” </li></ul><ul><li>Michael, Lean/Engineering Manager </li></ul><ul><li>MSP, Ipoh (NSK Group) </li></ul><ul><li>“ Lean Manufacturing is an effective tool to reduce wastage, optimize capacities & reduce costs….AMC’s course taught us the effectiveness of various Lean Tools….The course is very interactive and the simulation games are very interesting. The course instructors use their extensive industrial experience to elaborate important points and make participants understand the key points” </li></ul><ul><li>Roger Goh, Vice President </li></ul><ul><li>Beyonics Precision, Johore Bahru </li></ul><ul><li>“ Very good projects and excellent savings, nothing should stop us from standardizing these actions across the floor immediately ..” </li></ul><ul><li>Innovex Thailand, VP of Quality </li></ul><ul><li>and Operations </li></ul>
  23. 36. AMC clients list <ul><li>One or more of our services have been rendered to: </li></ul><ul><li>Malaysia </li></ul><ul><ul><li>General Electric, JB </li></ul></ul><ul><ul><li>Komag, Pen, JB, Sarawak </li></ul></ul><ul><ul><li>Eng Teknologi, Penang </li></ul></ul><ul><ul><li>MMI Johore Bahru </li></ul></ul><ul><ul><li>Beyonics Precision JB </li></ul></ul><ul><ul><li>Wong Engineering, Kulim </li></ul></ul><ul><ul><li>NSK, Malaysia </li></ul></ul><ul><ul><li>MSP, Ipoh </li></ul></ul><ul><ul><li>Balda Thong Fook, Ipoh </li></ul></ul><ul><ul><li>Finisar Ipoh </li></ul></ul><ul><ul><li>Hovid Pharmaceuticals, Ipoh </li></ul></ul><ul><ul><li>Ryco Hydraulics, Kulim </li></ul></ul><ul><ul><li>Crest Ultrasonic, Perai </li></ul></ul><ul><ul><li>Camfil Farr, Batu Gajah </li></ul></ul><ul><ul><li>Perak Community Specialist Hospital </li></ul></ul><ul><li>Malaysia </li></ul><ul><ul><li>Poly Plus, Perai </li></ul></ul><ul><ul><li>Rhombus, Perai </li></ul></ul><ul><ul><li>H & P, Perai </li></ul></ul><ul><ul><li>Automotive Lighting, Penang </li></ul></ul><ul><ul><li>Smart Modular, Perai </li></ul></ul><ul><ul><li>Knowles </li></ul></ul><ul><ul><li>Altum, JB </li></ul></ul><ul><ul><li>Juason Plastic, Perai </li></ul></ul><ul><ul><li>Balda (Mold Tool Room) </li></ul></ul><ul><ul><li>Trane (Aircon) </li></ul></ul><ul><ul><li>Mapa (Hutchinson Group) </li></ul></ul><ul><ul><li>Rosa Pasadena (Hotel) </li></ul></ul><ul><ul><li>Carsem Semiconductor </li></ul></ul><ul><ul><li>PSC Casting </li></ul></ul><ul><ul><li>HCM-Hygenic Corporation </li></ul></ul>
  24. 37. AMC clients list <ul><li>Thailand </li></ul><ul><ul><li>Minebea (NMB) </li></ul></ul><ul><ul><li>Innovex </li></ul></ul><ul><ul><li>Belton </li></ul></ul><ul><ul><li>Beyonics </li></ul></ul><ul><ul><li>Compart </li></ul></ul><ul><ul><li>Fabrinet </li></ul></ul><ul><ul><li>Agere </li></ul></ul><ul><li>Singapore </li></ul><ul><ul><li>Seksun Corp </li></ul></ul><ul><ul><li>Philips (Alliance with Gemba USA) </li></ul></ul><ul><li>Others / global </li></ul><ul><ul><li>Seagate Technologies </li></ul></ul><ul><li>Taiwan </li></ul><ul><ul><li>Ambit </li></ul></ul><ul><ul><li>Nanotech </li></ul></ul><ul><li>China </li></ul><ul><ul><li>Seksun, Suzhou </li></ul></ul><ul><ul><li>MMI, Wuxi </li></ul></ul><ul><ul><li>Belton, Shenzhen </li></ul></ul><ul><ul><li>Belton, Wuxi </li></ul></ul><ul><ul><li>Compart </li></ul></ul><ul><ul><li>Magnecomp </li></ul></ul><ul><ul><li>Optimal </li></ul></ul><ul><ul><li>Snap On </li></ul></ul><ul><ul><li>Broadway Shanghai </li></ul></ul><ul><li>Indonesia </li></ul><ul><ul><li>Philips (Alliance with Gemba USA) </li></ul></ul><ul><li>One or more of our services have been rendered to: </li></ul>
  25. 39. WHAT NEXT? <ul><li>Allow us to help you: </li></ul><ul><li>SAVE MONEY </li></ul><ul><li>DEVELOP YOUR HUMAN CAPITAL </li></ul><ul><li>COMPETE IN TODAYS ECONOMIC CRISIS </li></ul>CONTACT US: Email: [email_address]