the principles of the lean business system: #4...
TRANSCRIPT
22 August, 2013 © S A Partners
The Principles of the Lean Business System: #4 Pull Lean in the 21st Century ™ Series Professor Peter Hines
22 August, 2013 © S A Partners
• Welcome
• Webinar will last about 1 hour
• We will invite you to complete
a few Polls
• Q&A session
Our Webinar
Lean in the 21st Century™
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• Frederick Taylor invented the business system used by organizations throughout the 20th Century
– Cost is the focus – Scientific Management System – Functionally organized by expertise – Built for internal efficiency – Not fit for the global , competitive environment of the 21st century – Relies on traditional management to be effective – Objective is to minimize the time it takes to do value added
processes
• Peter Hines has invented a business system of the 21st
Century – People are the focus – Value Management System – Organized by value delivered – Built for productivity in an extended enterprise – Fit for the global, competitive environment of the 21st century – Relies on leadership disposition and language to be effective – Objective is to reduce or eliminate non-value added activities
Welcome!
• Co-founder Lean Enterprise Research Centre, Cardiff University
• Chairman, S A Partners • Adjunct Professor, University of
South Australia
Professor Peter Hines
90% of problems in business are caused by management, 10% by the workman. F. W. Taylor, 1912
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• Research conducted by Professor Peter Hines identified 5 key elements of success:- • Link business system to a one to two year strategy through Policy
Deployment • Dismantle traditional, siloed, functionally-focused business processes • Deploy human resources aligned to value to be delivered • Develop leadership to be effective in a 21st century business system
space • Synchronize business systems with suppliers and customers
We encapsulate this in an evolutionary business model rooted in time tested customer, quality and lean thinking
The Lean Business Model
How we see creating a 21st century business system…
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The Lean Business Model ®
Original source: Professor Peter Hines Benchmarking Toyota’s Supply Chain: Japan vs U.K. Long Range Planning, February, Volume 31, Number 6, pp. 911-918, 1998, ISSN 0024-6301
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The Principles
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• Who leads your continuous improvement effort (please pick one):
• Managing Director/CEO • Director/Vice President of Operations • Director/Vice President of Lean • Manager Level • Other
Poll #1
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1. Pull based delivery? 2. Pull based improvement 3. Pull based training 4. Pull based people process
Pull
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Pull Based Delivery?
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• What is real demand • Purple Micra • Failure Demand
Real Demand
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Demand Variability
Pull Based Delivery?
Demand Variability
Volume
Adapted from: Fisher, 1997
Runner
Repeater
Stranger
Low Variability/ Complexity
Kanban
Medium Variety/Complexity Make To Order
Adapted from: Fisher, 1997
High Variety/Complexity
Avoid? Stock?
Volume
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Types of Demand
Repeater :- Ongoing Demand More Difficult to Predict Medium Inventory Risk Items
Stranger :- No Ability to Predict Ongoing Demand High Inventory Risk Items
Runner :- Regular, Predictable Ongoing Demand Low Inventory Risk Items
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• What type of demand do you have?
• Mostly Runners • Mostly Repeaters • Mostly Strangers • Quite a variety of demand types
Poll #2
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Pull Based Improvement
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Management Process for Business Improvement
Many influences
in the environment
Crisis in the environment
Design & Plan Project
Implement Project
Adjust plan or targets
Check impact on performance
Discontinuous Improvement
Strategic Choices Targets
Top-Down, Business led Improvement Project Management Process
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Continuous Improvement - stability
Real time problem solving
Make changes
Check impact on performance
Problem detected at source
Test for stability and reset
Continuous Improvement
Many small problems
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Continuous Improvement - stability
Real time problem solving
Make changes
Check impact on performance
Problem detected at source
Test for stability and reset
Continuous Improvement
Many small problems
Deployed Targets
Bottom-up, Team led Day-to-day Improvement Process
Many influences
in the environment
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The CI learning system
Strategic Choices Targets
Deployed Targets
Seamlessly integrate
Continuous Improvement
Discontinuous Improvement
Continuous Improvement
Redesign processes
Feedback to strategy
Greater rate of improvement
Faster, better change
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Cascading the strategy & problem solving network
Business Level Cockpit
Sales Cockpit Product Development Cockpit HRM Cockpit Operations Cockpit
Marketing Sales (Key Accounts) Customer Service
DISCONTINUOUS IMPROVEMENT OR DI
CONTINUOUS IMPROVEMENT OR CI
PROCESS IMPROVEMENT OR PI
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Push or Pull?
20 big projects
Lean Coaches
3 Projects
each
Lean Coaches
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• Is your system of improvement:
• Mostly push based? • Mostly pull based?
Poll #3
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Pull Based Training
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Pull Based Training
Team: Prince Sanctions Level 1/2 Skills MatrixTeam Leader: Venkateswaran S
Sanctions Officers NameRosy John L L U U L UIswarya Mukundagiri Vankeepuram U U UDamodharan Nagarajan ISinu Bhaskarannair Nirmala Bhavan O O OOmprakash Maruthanayagam L L L L U U UAnoop Sabusenan I IPramoth Kumar Venkatesh U U UKumaran MurugesanPradeep Gandhi Dhanabalan O O O OManjula Veeraragavan O O ODhanyan K UthayanandhanDinesh Kumar KrishnasamyKarthick BalamurugesanAlwin Tara Singh AnburatnamNagarajan SrinivasanSuresh Varadarajalu DArul Prakasam BoopathyCapability to undertake process: Number of Staff 5 5 6 4 4 4 3Requirement: Number of Staff 6 5 5 6 3 5 3Gap: Number of Staff -1 0 1 -2 1 -1 0
Key:Training Need Identified I*Training Completed LCan meet Quality & Productivity Standards UAble to Coach Others O
Comprehensive knowledge of systems and processes
Investigation capability
Activities/Skills
Application of filters
Updating Scan-IT Hit
review station with
comments
Investigating all hits
Proposing Skips
Strong PC skills
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Pull Based People Process
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Push or Pull Based People Process
Who is the customer of the people process?
Line Manager
Who is the Production Manager / Planner of the People Process? HR Department
Whom is the
Supplier?
Internal or Out-sourced
What is the Physical Flow? Recruit Induct Review Train Retain Retire
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• What further activity would you like?
• Please select one or more answers
Poll #4
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• If you would like to discuss anything coming out of the webinar please contact me at: [email protected] or +44 (0)7974 416660
• Please also link up with me at uk.linkedin.com/in/profpeterhines/
• Or join me at my Lean Business System LinkedIn group: http://www.linkedin.com/groups/Lean-Business-System-1801885?trk=myg_ugrp_ovr
• See also Kevin Eyre’s recent webinar on Lean Culture: http://www.sapartners.com/thought-leadership-in-the-area-of-lean-culture/
Further Questions
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Come and join Professor Peter Hines at Aimia Foods, winner of the 2012 BFA “Factory of the Year” Award. Learn • Share • Grow – Achieve Lean Excellence Event 3-4th October, Aimia Foods, Haydock, Lancashire Understand how Lean Thinking provides the basis for a profitable, growing and customer-focused business and experience a tour of Aimia Foods to see in action an exemplar lean facility. Qualify for an exclusive 10% discount by entering promotion code LI1013 on the booking form. To find out more or to book your place, follow the link:
http://www.sapartners.com/achieve-lean-excellence-event/ For further information please contact [email protected] Or visit http://www.sapartners.com/uk-events/ for our full event schedule
European Events
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• Cardiff University accredited training in Melbourne , Sydney and Brisbane . See more details on: http://www.sapartners.com.au/wp-content/uploads/2012/11/Lean-Awarness.pdf
• Lean Business System networking Conference Sydney 6th Sept with Professor Peter Hines and a range of executive lean speakers from Commonwealth Bank, Treasury Wines, Boral and more. See this link for details http://www.sapartners.com.au/wp-content/uploads/2012/10/Sydney-Lean-Networking-Conference-6th-September-flyer-and-booking-form-copy.pdf
• Or Contact our Australian Managing Director Chris Butterworth on [email protected]
Australian events