Office Kaizen by Operational Excellence Consulting

2. © Operational Excellence Consulting. All rights reserved. 2 Learning Objectives • Understand the principles and key concepts of kaizen • Identify value and waste in office processes • Apply 5S principles, visual management tools and standards to improve office organization and efficiency • Acquire knowledge on the supporting Lean tools for kaizen activities • Understand the role of management in kaizen implementation • Define the critical success factors in developing and sustaining a kaizen culture

3. © Operational Excellence Consulting. All rights reserved. 3 Outline 1. Introduction and key concepts of kaizen 2. Understanding value and waste 3. 5S principles for effective workplace organization 4. Visual office 5. Standardization 6. Supporting Lean tools for kaizen activities 7. Role of management 8. Ways to develop “kaizen eyes” 9. Critical success factors Copyrights of all the images used in this presentation are held by their respective owners. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: http://www.oeconsulting.com.sg

5. © Operational Excellence Consulting. All rights reserved. 5 What is Kaizen? • Kaizen means improvement. Improvements without spending much money, involving everyone from managers to employees, and using much common sense. • The aspect of Kaizen is that it is on-going and never-ending improvement process. • Kaizen can be applied in all industries, including office and service environments.

7. © Operational Excellence Consulting. All rights reserved. 7 Kaizen versus Problem Solving • Problem solving  Centers on the fundamental notion of “gap” or “deviation” from standard (e.g. cost, quality, delivery) • Kaizen  Focuses on achieving a new standard or level of performance Standard – what should be happening Current situation – what is actually happening Gap = Problem

8. © Operational Excellence Consulting. All rights reserved. 8 Kaizen & Lean Stability Heijunka Standardized Work Kaizen Just-In-Time • Continuous flow • Takt time • Pull system • Flexible workforce Jidoka • Separate man & machine work • Abnormality Identification • Poka yoke • Visual Control Goals: highest quality, lowest cost, shortest lead times Involvement Kaizen is the foundation for all Lean improvements

9. © Operational Excellence Consulting. All rights reserved. 9 Kaizen versus Innovation Kaizen Innovation Un-dramatic Dramatic Low Cost High Cost Low Risk High Risk Human Effort Technology No Brainer More Thought

10. © Operational Excellence Consulting. All rights reserved. 10 Kaizen is a Continuous Process Standardize Standardize StandardizeKaizen Kaizen Kaizen P DC A Kaizen (改善) = Continuous Improvement Plan DoCheck Act

11. © Operational Excellence Consulting. All rights reserved. 11 Kaizen Philosophy Implement good housekeeping and workplace organization. Identify and eliminate all activities that are waste. Implement standardization. Current State Future State Solve Problems Expose Problems “True North” Value Added Time = Lead Time Full of Waste, Variation, and Constraints

13. © Operational Excellence Consulting. All rights reserved. 13 Key Kaizen Concepts Kaizen & Management Follow SDCA / PDCA Cycles Speak with Data Next Process Is Customer Quality First Process vs Results

14. © Operational Excellence Consulting. All rights reserved. 14 Benefits of Kaizen • Empowers employees, enriches the work experience and brings out the best in every person • Promotes personal growth of employees and the company • Improves quality, safety, cost structures, delivery, environments, throughput and customer service/satisfaction • Provides guidance from employees, and serves as a barometer for leadership

15. © Operational Excellence Consulting. All rights reserved. 15 How to Implement Office Kaizen? • Office kaizen can be implemented in the following ways: 1. Waste elimination 2. 5S good housekeeping and workplace organization 3. Visual Office 4. Standardization

16. © Operational Excellence Consulting. All rights reserved. 16 Cost Reduction Principle Cost Plus Principle COST 1 SALES PRICE 1 PROFIT 1 Present COST 2 PROFIT 2 Future SALES PRICE 2 Cost Reduction Principle COST 1 SALES PRICE 1 PROFIT 1 Present COST 2 PROFIT 2 Future SALES PRICE 2 Higher profit is achieved by increasing sales price Higher profit is achieved by reducing cost (waste) while maintaining sales price

17. © Operational Excellence Consulting. All rights reserved. 17 The Eight Types of Waste Overproduction Producing more than what the customer needs Inventory Building and storing extra products the customer has not ordered Transportation Moving from one place to another Defects Reprocessing, scrap or correcting work Over-processing Adding excess value when the customer does not require it Motion Extra physical/mental motion that doesn’t add value Intellect Not using employees full intellectual contribution Waiting Employees waiting for parts, machine, process or information Waste

19. © Operational Excellence Consulting. All rights reserved. 19 5S principles • 5S is a structured program to implement workplace organization and standardization • 5S represents five disciplines for maintaining a visual workplace • 5S is a foundation for Kaizen and Lean implementation Sort Set In OrderShine Standardize Sustain

20. © Operational Excellence Consulting. All rights reserved. 20 What is 5S? Principles General Description 1S Sort Remove what is not needed and keep what is needed 2S Set in Order Arrange essential items in order for easy access 3S Shine Keep things clean and tidy; no trash or dirt in the workplace 4S Standardize Establish standards and guidelines to maintain a clean workplace 5S Sustain Make 5S a habit and teach others to adhere to established standards

21. © Operational Excellence Consulting. All rights reserved. 21 Office Desk – Before & After 5S An office desk before and after conducting 5S Sort and Set In Order. Clutter and unused items have been removed leaving only what is needed. Before After

22. © Operational Excellence Consulting. All rights reserved. 22 2S : Set In Order - Examples 5S on desk top drawer Cabinet filing with labels Files are color-coded and neatly arranged on desk Organized book shelves

23. © Operational Excellence Consulting. All rights reserved. 23 Which is cleaner – Your keyboard or the toilet seat? A 2004 study by Dr. Charles Gerba of the Univeristy of Arizona found keyboards have on average 3,295 germs per square inch versus a toilet seat which has 49 germs per square inch. Gerba say, “Desks are really bacteria cafeterias.” Clean your keyboard. Researchers recommend that you should give your keyboard a good “spring cleaning” by dusting off crumbs and cleaning with an appropriate disinfectant.

24. © Operational Excellence Consulting. All rights reserved. 24 5S Implementation Roadmap 1 Phase 1: Prepare the Project 1. Get management involvement 2. Identify target areas 3. Form an implementation team Phase 2: Perform an Office Scan 4. Select project measures and collect baseline data 5. Photograph current conditions 6. Apply the office scan checklist 7. Post a project storyboard Phase 3: Sort Through & Sort Out 8. Determine criteria for sort 9. Prepare a holding area 10. Apply Sort Phase 4: Set Things in Order & Set Limits 11. Map the current state 12. Create a Set-In-Order plan 13. Apply Set-In-Order • Define 5S zones • Assign responsibilities • Develop publicity materials • Educate everyone • Purchase cleaning equipment as needed • Red tagging• Set up 5S activity board • Define 5S project charter

25. © Operational Excellence Consulting. All rights reserved. 25 5S Audit & Results5S Workplace Scan Checklist Department: Place an "x" in the appropriate box based on number of issues observed. Date: Scored By: Number of Observations >> 0 1-2 3-4 5-6 >6 Sort Distinguish between what is needed and not needed 1 Unneeded equipment, tools, furniture, etc. are present X 2 Unneeded items are on walls, notice boards, etc X 3 Items are present in walkways, stairways, corners, fire exits etc. X 4 Unneeded inventory, supplies, parts, or materials are present X 5 Safety hazards (water, oil, chemical, machines) exist X Subtotal >> 0 1 4 6 0 SetinOrder A place for everything and everything in it's place 1 Correct places for items are not obvious X 2 Items are not in their correct places X 3 Walkways, workstations, equipment locations are not indicated X 4 Items are not put away immediately after use X 5 Height and quantity limits are not obvious X Subtotal >> 0 1 4 6 0 Shine Cleaning, and looking for ways to keep it clean and organised 1 Floors,walls stairs, and surfaces are free of dirt, oil, and grease X 2 Equipment is not kept clean and free of dirt, oil, and grease X 3 Cleaning materials are not easily accessible X 4 Lines, labels, signs, etc are not clean and unbroken X 5 Other cleaning problems of any kind are present X Subtotal >> 0 2 4 0 0 Standardize Maintain and monitor the first three categories 1 Necessary information is not visible X 2 All standards are not known and visible X 3 Checklist don't exist for all cleaning and maintenance jobs X 4 All quantities and limits are not easily recognizable X 5 How many items can't be located in 30 seconds X Subtotal >> 0 1 4 6 0 Sustain Stick to the rules 1 How many workers understand the 5s principals X 2 How many times last week was daily 5s not performed X 3 Number of times that personal belongings are not neatly stored X 4 Number of times job aids are not available or up to date X 5 Number of times last week daily 5s inspection were not performed X Subtotal >> 0 1 0 6 8 Total >> 0 6 16 24 8 Grand Total 5S Score 54 0 5 10 15 20 1 - Sort 2 - Set in Order 3 - Shine 4 - Standardize 5 - Sustain Monthly 5S Overview 65 60 55 60 45 51 46 46 54 0 10 20 30 40 50 60 70 80 90 100 Jan- 06 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Monthly Audit Results

26. © Operational Excellence Consulting. All rights reserved. 26 5S your computer hard/shared drive 5S Principle Description Sort • Check all your files and software, and get rid of any that are unnecessary Set In Order • Organize your files and optimize the use of file folders • Keep in mind how often you need them and how much time you need to store them • Create specific shortcut icons for the most used files or programs Shine • Eliminate any files under deleted items, sent items and the recycle bin Standardize • Establish procedures for maintaining your computer 5S system Sustain • Include hard drives in 5S audits • Focus on how people maintain files and program organization, and the time they spend ding so

27. © Operational Excellence Consulting. All rights reserved. 27 Why Visual Management? • In an instant, view the situation globally or in details • Resources • Tools & equipment • Materials • etc. • Norms • Methods • etc. • What's right • What's wrong • What's done • What's left to be done • The delays

28. © Operational Excellence Consulting. All rights reserved. 28 3 Types of Visual Management • Label to make it perfectly clear where things belong and what the procedures are Visual Display • Quantify the path to targets for success • Graphs and Pareto charts Visual Metrics • Create an error-proofed environment to promote easy adherence to standards Visual Controls

30. © Operational Excellence Consulting. All rights reserved. 30 3 Criteria of Kaizen 1. Does the idea reduce waste, improve quality or increase safety? 3. Is it standardized? 2. Does it address the root cause? ideas ideas KAIZEN

31. © Operational Excellence Consulting. All rights reserved. 31 Kaizen Event Process 1. Set the Scene 2. Understand Current Process 3. Develop Future State Design 4. Implement Solutions 5. Report & Celebrate

32. © Operational Excellence Consulting. All rights reserved. 32 Kaizen Summary Sheet Project type: 5S Area: Sales & Marketing Office Team Leader: John Smith Before After Reasons project chosen: • Difficult to move around a cluttered office • Difficult to find information and supplies Tools used on project: • Cleaning equipment and tools • 5S principles Results: • Unwanted materials were discarded • Less waste – e.g. transportation, motion, waiting, etc. • Improved staff morale Next steps: • Conduct monthly 5S audits • 5S for other common areas

33. © Operational Excellence Consulting. All rights reserved. 33 A Simple Kaizen Implementation Roadmap Create Awareness Build Capability Operations Management & Improvement Kaizen Training Kaizen Leadership Training Build Kaizen Activity Board Kaizen #1: 5S Kaizen #2: Waste Elimination Value Stream Mapping for Key Processes Train-the- Trainer Training Information Sessions for Whole Organization Senior Management Awareness Kaizen #3: Standardization Month 1 Kaizen Methods & Tools Training Month 3Month 2 Daily Management Meeting Kaizen Update in Monthly Newsletter & Intranet

35. © Operational Excellence Consulting. All rights reserved. 35 About Operational Excellence Consulting • Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. • One of our unique strengths is going beyond a tools-focused approach to seamlessly integrate people, processes, technology and continuous improvement initiatives to suit the specific needs and situations of our clients. • We provide corporate learning programs and management advisory services to assist our clients to achieve breakthrough in business performance and effectiveness. Our aim is to support our clients in designing, managing and executing lasting beneficial change.

Office Kaizen by Operational Excellence Consulting

Office Kaizen by Operational Excellence Consulting

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Office Kaizen by Operational Excellence Consulting