continuousimprovementwithoperationalexcellence-161011154643.pptx

Continuous improvement

1. Create Standard Work for Flow Easily with Operational Excellence Continuous Improvement with Operational Excellence

2. Operational Excellence Systematic management of all the processes to achieve world class performance by: Efficient utilization of tools Optimization of Resources Elimination of process waste / inefficiencies    Let Your Organization Be at Competitive World for Long 307.222.6083 [email protected] www.opexsociety.org

3. Lack of operational Excellence … Let Your Organization Be at Competitive World for Long Results in low profitability and cash flow issues When do you address it? 307.222.6083 [email protected] www.opexsociety.org

4. Operational Excellence Becomes a Concern w hen … Let Your Organization Be at Competitive World for Long Cash flow starts to get a little tight Trouble meeting payroll Suppliers are screaming for payments Inventory is out of control Expenses are rising faster than revenue Backlog starts to shrink Opportunities are missed due to cash flow issues www.opexsociety.org 307.222.6083 [email protected]

5. Improving Profitability – Traditional Approach CFO/Department Head is responsible to lead the cost cutting efforts Focus usually is on cutting expenses     Workforce Reduction Scrutinize Purchasing  Reduce Employee Perks Extend Payment Terms Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

6. Performance Improvement: Strategic Approach measure the current level of performance identify waste Generate Ideas to achieve a better level of output Performance improvement is all about organizational change Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

7. Ideas Should be… Effective Efficient, and Adhere to Market Forces Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

8. How to Generate The Ideas Value Stream Mapping Value Stream Mapping is a Lean technique used to analyze the flow of materials and information currently required to bring a product or service to a consumer. Lean : A business system for organizing and managing product development, operations, suppliers, and customer relations to create precise customer value — goods and services with higher quality and fewer defects —with less human effort, less space, less capital, and less time than the traditional system of mass production.  Visualize Your Processes  El i minate Waste $ I n c r e a se Profits Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

9. Purpose of Value Stream Mapping Identify processes where “Lean” techniques can be applied Help reduce / eliminate wait time Eliminate process waste Reduce production cycle and processing time Understand process linkages and dependencies Create the basis for “Lean” implementation plan Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

10. Value Stream Mapping – Case Study Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

11. Business Case Solution Improve lead time performance by synchronizing production with customer demand. Key Requirements Reduce flow time to meet customer demand. Reduce RAW, WIP and FGI levels . Problem Statement Losing Business to competitors due to long lead times and late deliveries . Me a sur e m e nts Total flow time Inventory levels EBIT performance. Ideal State On-Demand Defect Free • 1-By-1 Lowest Cost Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

12. Value Stream Map – Current Process Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

13. Team Brain Storming Session Can Customer increase the size of the blanket order and provide us with a longer term forecast visibility? Can we flow the demand down to the supplier with a longer term visibility? How can we reduce wait time? How can we reduce change over time? Can we reduce lot size? Can we merge production processes to reduce travel time? Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

14. Value Stream Map- Future Process Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

15. Do Act Plan Check Pe o ple Product Sys t e m s Processes Strategy Implementation Check List Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

16. Next Step How would you apply Value Stream Mapping into your Business? Share the business challenge with your key staff. Define business case Define a high level business process Define activities for each business process including wait time. Randomly pick a minimum of 5 current jobs and record all activities and time. From the initial customer call to receipt of payment for the goods or services. Map the process – this is your current value stream map Categorize each activity as value added or non value added Define a map eliminating as many of the non value added activities – now you have a first draft of the future state Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]

17. Next Step Identify Initia t ive Does your product offer exceptional Buyer utility? Use Buyer Utility Map Strategic Pricing Set the price which is easily accessible to mass of buyers Use Pricing Corridor Tool Align Ope rat ions Set Target Profit Come up with Target Cost Streamline Cost Innovation Adoption Create a consensus Address adoption hurdles in actualizing the strategy Balance Scorecard Let Your Organization Be at Competitive World for Long www.opexsociety.org 307.222.6083 [email protected]