SlideShare a Scribd company logo
Growing a Business in
a Challenging
Economy using LEAN
FACILITATED BY RITETRAC CONSULTING::
WWW.RITETRACCONSULT.COM.NG
Introductions
 My name is Patrick Ajunwa MFE,LSSBB,CRIS
 Am a Process Improvement Consultant/Trainer for
the past 15 years+. My roles has been in Training
and Consulting.
 I like assisting businesses to improve their
processes for sustainable growth.
 At Ritetrac Consulting we help organizations
deliver operational excellence, process
management, diagnostics and Analytics.
2
Contd.
 Please introduce yourself
 What is your Job Role?
 What’s the duration of your work experience?
3
Some of our Services at Ritetrac
Consulting
 Lean Six Sigma Consulting & Training
 Process Management
 Operational Excellence
 Diagnostics and Analytics using MINITAB.
ENGAGE ON SOCIAL MEDIA
 Website: www.ritetracconsult.com.ng
 Facebook: www.facebook.com/ritetrac
 Twitter: @ritetracconsult
 Blog: http://ritetracpm.blogspot.com
 Instagram:@ritetracconsulting
 Linkedin: http://bit.ly/RitetracLinkedin
4
Webinar Content
 Introduction
 Definition of processes
 Overview of the Economy
 Overview of LEAN
 Who Benefits from Process Improvement
 Some Lean Tools for process Improvement
 SIPOC
 Voice of the Customer (VOC)
 Process Map
 Kanban
 5S
 The 8 Deadly WASTE in Business Processes
 Some Practical Examples of LEAN processes
5
Introduction
 I have taken time to interview some business owners in the past few
months and they all told me that their businesses had slowed almost
40% over the past 10 months. They all confirmed that they are doing
nothing different with their advertising and marketing – “what
worked 10 months ago just isn’t working as well now,” they said.
 The reason, they felt, is that people have less money to spend.
 That certainly makes sense. All our living expenses are on the rise.
Groceries cost more, utility bills have increased – in some places
dramatically – and the price of a gallon of fuel is through the roof.
So it only makes sense that consumers have less to spend on what
they may perceive as ‘non-essential’ services.
6
Cont’d
For the purpose of this webinar, we are going to focus on solving the
day to day problems of business processes of organizations for
continuous improvement using one of the world most useful tool
“LEAN”
7
What is a Business Process?
A business process is a collection of linked tasks which find their end
in the delivery of a service or product to a client. A business
process has also been defined as a set of activities and tasks that,
once completed, will accomplish an organizational goal.
8
What is LEAN?
Henry Ford defined the lean concept in one sentence: “We will not
put into our establishment anything that is useless.”
9
Cont’d
The core idea is to maximize customer value while minimizing waste.
Simply, lean means creating more value for customers with fewer
resources.
A lean organization understands customer value and focuses its key
processes to continuously increase it. The ultimate goal is to provide
perfect value to the customer through a perfect value creation
process that has zero waste.
10
Cont’d
To accomplish this, lean thinking changes the focus of management
from optimizing separate technologies, assets, and vertical
departments to optimizing the flow of products and services through
entire value streams that flow horizontally across technologies,
assets, and departments to customers.
11
Cont’d
Eliminating waste along entire value streams, instead of at isolated
points, creates processes that need less human effort, less space,
less capital, and less time to make products and services at far less
costs and with much fewer defects, compared with traditional
business systems.
Companies are able to respond to changing customer desires with
high variety, high quality, low cost, and with very fast throughput
times. Also, information management becomes much simpler and
more accurate.
12
Lean for Production and Services
A popular misconception is that lean is suited only for
manufacturing. Not true. Lean applies in every business and every
process. It is not a tactic or a cost reduction program, but a way of
thinking and acting for an entire organization.
13
Cont’d
Businesses in all industries and services, including healthcare and
governments, are using lean principles as the way they think and
do. Many organizations choose not to use the word lean, but to
label what they do as their own system, such as the Toyota
Production System. Why? To drive home the point that lean is not a
program or short term cost reduction program, but the way the
company operates.
The word transformation or lean transformation is often used to
characterize a company moving from an old way of thinking to
lean thinking. It requires a complete transformation on how a
company conducts business. This takes a long-term perspective and
perseverance.
14
Three Things to Think About
Purpose, Process, People
Three fundamental business issues that should guide the Lean transformation of
the entire organization:
Purpose: What customer problems will the enterprise solve to achieve
its own purpose of prospering?
Process: How will the organization assess each major value stream to
make sure each step is valuable, capable, available, adequate, flexible,
and that all the steps are linked by flow, pull, and leveling?
People: How can the organization ensure that every important process
has someone responsible for continually evaluating that value stream
in terms of business purpose and lean process? How can everyone
touching the value stream be actively engaged in operating it correctly and
continually improving it?
15
Question Time
Q: Is it only the small companies that always have problems with
their businesses. Kindly comment
16
Lean Principles
.
17
Who Benefits from Process
Improvement?
Anyone who has problem to solve including:
 Industries
 Healthcare
 Finance
 Information &Telecommunication
 Government
 Retail
 Hospitality
18
Cont’d
FUNCTIONS:
 Customer Service
 Manufacturing
 Accounting
 Sales
 Operations
 HR & IT
19
Constraint to Process flow
Bottleneck
20
Lean Tools
.
21
Cont’d
.
22
VOC
 .
23
5s
.
24
Just –in- Time (JIT) 25
Kanban
.
26
How to solve problems for good-
POKA YOKE{Mistake Proofing}
Poka Yoke
27
Profits after LEAN implementation
 .
28
Some Organizations that have
implemented Lean
.
29
Our Services
 Lean Six Sigma Consulting & Training
 Process Management
 Operational Excellence
 Diagnostics and Analytics using MINITAB.
ENGAGE ON SOCIAL MEDIA
 Website: www.ritetracconsult.com.ng
 Facebook: www.facebook.com/ritetrac
 Twitter: @ritetracconsult
 Blog: http://ritetracpm.blogspot.com
 Google+: www.google.com/+OjiugoAjunwa
 Instagram:@ritetracconsulting
 Linkedin: http://bit.ly/RitetracLinkedin
30
Questions/Feedback 31

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Growing a Business in a Challenging Economy using Lean Practices

  • 1. Growing a Business in a Challenging Economy using LEAN FACILITATED BY RITETRAC CONSULTING:: WWW.RITETRACCONSULT.COM.NG
  • 2. Introductions  My name is Patrick Ajunwa MFE,LSSBB,CRIS  Am a Process Improvement Consultant/Trainer for the past 15 years+. My roles has been in Training and Consulting.  I like assisting businesses to improve their processes for sustainable growth.  At Ritetrac Consulting we help organizations deliver operational excellence, process management, diagnostics and Analytics. 2
  • 3. Contd.  Please introduce yourself  What is your Job Role?  What’s the duration of your work experience? 3
  • 4. Some of our Services at Ritetrac Consulting  Lean Six Sigma Consulting & Training  Process Management  Operational Excellence  Diagnostics and Analytics using MINITAB. ENGAGE ON SOCIAL MEDIA  Website: www.ritetracconsult.com.ng  Facebook: www.facebook.com/ritetrac  Twitter: @ritetracconsult  Blog: http://ritetracpm.blogspot.com  Instagram:@ritetracconsulting  Linkedin: http://bit.ly/RitetracLinkedin 4
  • 5. Webinar Content  Introduction  Definition of processes  Overview of the Economy  Overview of LEAN  Who Benefits from Process Improvement  Some Lean Tools for process Improvement  SIPOC  Voice of the Customer (VOC)  Process Map  Kanban  5S  The 8 Deadly WASTE in Business Processes  Some Practical Examples of LEAN processes 5
  • 6. Introduction  I have taken time to interview some business owners in the past few months and they all told me that their businesses had slowed almost 40% over the past 10 months. They all confirmed that they are doing nothing different with their advertising and marketing – “what worked 10 months ago just isn’t working as well now,” they said.  The reason, they felt, is that people have less money to spend.  That certainly makes sense. All our living expenses are on the rise. Groceries cost more, utility bills have increased – in some places dramatically – and the price of a gallon of fuel is through the roof. So it only makes sense that consumers have less to spend on what they may perceive as ‘non-essential’ services. 6
  • 7. Cont’d For the purpose of this webinar, we are going to focus on solving the day to day problems of business processes of organizations for continuous improvement using one of the world most useful tool “LEAN” 7
  • 8. What is a Business Process? A business process is a collection of linked tasks which find their end in the delivery of a service or product to a client. A business process has also been defined as a set of activities and tasks that, once completed, will accomplish an organizational goal. 8
  • 9. What is LEAN? Henry Ford defined the lean concept in one sentence: “We will not put into our establishment anything that is useless.” 9
  • 10. Cont’d The core idea is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources. A lean organization understands customer value and focuses its key processes to continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste. 10
  • 11. Cont’d To accomplish this, lean thinking changes the focus of management from optimizing separate technologies, assets, and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers. 11
  • 12. Cont’d Eliminating waste along entire value streams, instead of at isolated points, creates processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems. Companies are able to respond to changing customer desires with high variety, high quality, low cost, and with very fast throughput times. Also, information management becomes much simpler and more accurate. 12
  • 13. Lean for Production and Services A popular misconception is that lean is suited only for manufacturing. Not true. Lean applies in every business and every process. It is not a tactic or a cost reduction program, but a way of thinking and acting for an entire organization. 13
  • 14. Cont’d Businesses in all industries and services, including healthcare and governments, are using lean principles as the way they think and do. Many organizations choose not to use the word lean, but to label what they do as their own system, such as the Toyota Production System. Why? To drive home the point that lean is not a program or short term cost reduction program, but the way the company operates. The word transformation or lean transformation is often used to characterize a company moving from an old way of thinking to lean thinking. It requires a complete transformation on how a company conducts business. This takes a long-term perspective and perseverance. 14
  • 15. Three Things to Think About Purpose, Process, People Three fundamental business issues that should guide the Lean transformation of the entire organization: Purpose: What customer problems will the enterprise solve to achieve its own purpose of prospering? Process: How will the organization assess each major value stream to make sure each step is valuable, capable, available, adequate, flexible, and that all the steps are linked by flow, pull, and leveling? People: How can the organization ensure that every important process has someone responsible for continually evaluating that value stream in terms of business purpose and lean process? How can everyone touching the value stream be actively engaged in operating it correctly and continually improving it? 15
  • 16. Question Time Q: Is it only the small companies that always have problems with their businesses. Kindly comment 16
  • 18. Who Benefits from Process Improvement? Anyone who has problem to solve including:  Industries  Healthcare  Finance  Information &Telecommunication  Government  Retail  Hospitality 18
  • 19. Cont’d FUNCTIONS:  Customer Service  Manufacturing  Accounting  Sales  Operations  HR & IT 19
  • 20. Constraint to Process flow Bottleneck 20
  • 25. Just –in- Time (JIT) 25
  • 27. How to solve problems for good- POKA YOKE{Mistake Proofing} Poka Yoke 27
  • 28. Profits after LEAN implementation  . 28
  • 29. Some Organizations that have implemented Lean . 29
  • 30. Our Services  Lean Six Sigma Consulting & Training  Process Management  Operational Excellence  Diagnostics and Analytics using MINITAB. ENGAGE ON SOCIAL MEDIA  Website: www.ritetracconsult.com.ng  Facebook: www.facebook.com/ritetrac  Twitter: @ritetracconsult  Blog: http://ritetracpm.blogspot.com  Google+: www.google.com/+OjiugoAjunwa  Instagram:@ritetracconsulting  Linkedin: http://bit.ly/RitetracLinkedin 30