Welcome to our Lean Event!

What will we cover?

• What is Lean?

• How does Lean help an organisation?

• How does Lean work with a management system?

• Understand how Lean tools assist with process improvement

• Addressing roadblocks to Lean and improvement

• How does this fit with other improvement solutions

• Q and A

What is Lean?

Lean is a Business Improvement approach.

Lean focuses on improving the value of a service by

reducing, or eliminating, waste.

As waste is eliminated, output improves,

production time and cost are reduced.

In summary, Lean is about identifying and

eliminating Waste.

Waste

Waste is any activity that utilises

resources without creating value

Categories of Waste

• Over production

• Inventory

• Waiting

• Motion

• Transportation

• Over processing

• Defects

• Not utilising workers talent

and knowledge

“Typically less than 5% of

activities are value adding.”

Are there any wastes in

your organisation’s

processes?

Discussion / Activity

Benefits of Implementing Lean

The benefits can be broken down into four main categories:

• Operational Improvement

• Administrative Improvements

• Strategic Improvements

• Improved culture in the organisation

The Lean Tool Box

• Value Stream Maps

• 5S

• Visualisation

• Spaghetti charts

• Fool Proofing

• Point of Use Storage (POUS)

• Process Balancing

• Quick Changeover

• Batch Size Reduction

• Level Loading

• Work Cells

• Lean Performance Measurement

Case study: Mining company Shift change

The company considered that efficiencies could be gained during

the shift changeover process

• Team formed – 2 supervisors; 1 manager; 1 CI rep; miner; external

facilitator;

• Time analysis conducted for finishing shift and starting shift;

• Repetition and “lost” time identified;

• Value stream maps and swimlane chart confirmed the wastes;

• Changeover process redesigned with union support;

• Annual saving of $3 million.

Value Stream Map

Type Testing: Current State Value Stream Map

Represents information flow.

2 weeks 4 weeks 1 week

0.25 days 0.25 days 2 days 0.25 days

Total time: 7 weeks 2.75 days

Value add time: 2.75 days

% value add time: 7.30%

Receive and process

application

Develop project

plan for client

Provision of Type Test

Assessment Service

Issue Report to

client and invoice

Lead time:7 weeks

Value add time: 2.75 days

Scheduling and Resource Planning

Client

Report

Business Development

Contractor

Value Stream Map

Type Testing: Future State Value Stream Map

Represents information flow.

1 day 2 weeks 1 day

0.25 days 0.25 days 2 days 0.25 days

Total time: 2 weeks 2 days

Value add time: 2.75 days

% value add time: 22.90%

Receive and process

application

Develop project

plan for client

Provision of Type Test

Assessment Service

Issue Report

to client and

invoice

Lead time:2 weeks 2 days

Value add time: 2.75 days

Scheduling and

Client

Report

Business Developmen

Contractor

Case study: Govt dept support application process

The application process took 12 weeks

• Team formed – manager; team leader, operators; service support dep’t rep;

• Value stream map; Swimlane chart and value-add analysis;

• Identified multiple checks that did not add value and work flowing backwards

and forwards between departments;

• Gained management and operations agreement to remove checks and waste

activities along with redesigning some process steps;

• Pilot showed the time reduced to 3 weeks.

Develop Bill

of Materials

Supplier

Customer

Set Product

Requirements

Code

Application

Components

Exist?

Start

Set Product

Strategy

Build

Product

Ship

Product

Support

Product

Obtain

Customer

Feedback

Customer

Customer

Requisition

ComponentsInvoice

Customer

Customer

Invoice

Process

Payment

Report

ProblemsSearch for

Components

Order Invoice Payment

Problem

Resolution

Customer

Problem

Problem

Report

Product

InformationShipped

Product

Packaged

Product

Customer

Requirements

Technical

Architecture

Fully Functioning Product

Application

Vision and

Direction

List of

Required

ComponentsComponents

Components

Maintained and

Upgraded Product

Maintain

Application

Receive

Components

End

Yes

TEC

HN

ICA

L S

UP

PO

RT

AC

CO

UN

TIN

GO

PE

RA

TIO

NS

DE

VE

LOP

ME

NT

Swimlane Chart

Value-add Analysis

Value Adding activities that add value from the

customer’s perspective.

Value Enabling activities are those that do not add

value as such, but are necessary or required.

Examples: steps needed to comply with regulatory

requirements; or to provide information to the

organisation.

Non-Value Adding activities are those that do not

add any value.

Develop Bill

of Materials

Supplier

Customer

Set Product

Requirements

Code

Application

Components

Exist?

Start

Set Product

Strategy

Build

Product

Ship

Product

Support

Product

Obtain

Customer

Feedback

Customer

Customer

Requisition

ComponentsInvoice

Customer

Customer

Invoice

Process

Payment

Report

ProblemsSearch for

Components

Order Invoice Payment

Problem

Resolution

Customer

Problem

Problem

Report

Product

InformationShipped

Product

Packaged

Product

Customer

Requirements

Technical

Architecture

Fully Functioning Product

Application

Vision and

Direction

List of

Required

ComponentsComponents

Components

Maintained and

Upgraded Product

Maintain

Application

Receive

Components

End

Yes

TEC

HN

ICA

L SU

PPO

RT

AC

CO

UN

TIN

GO

PER

ATI

ON

SD

EVEL

OPM

ENT

Swimlane Chart

Showing: Handover analysis and

Value-add analysis

5S Workplace Organisation

Tool Meaning

Sort Housekeeping. The only things that

should be in the workplace are files,

materials and tools being used.

Set in order Workplace organisation. A place for

everything and everything in its place.

Shine Clean-up. Make the place shine.

Standardise Best Practice. Make the above 3S’s

become a way of life.

Sustain Discipline. 5S becomes part of the way

we do things around here.

Error Proofing

Is a technique for avoiding and eliminating mistakes.

Example: 5S and Error Proofing

Messy, time lost finding

parts and wrong parts

often picked.

Cardboard template is

“bill of material”. Wrong

parts cannot be picked.

Discussion

• Can you think of an issue in

your operation that can be an

opportunity for Fool Proofing?

ISO 9001 Lean

ISO 9001 Lean - is an approach that

combines the benefits of a

structured management system with

the powerful but simple tools of

Lean.

Continual Improvement of the

Quality Management System

Management

responsibility

Measurement,

analysis &

improvement

Resource

management

Product

realisation

Goods &

Services

Customer &

Stakeholder

Requirements

Customer &

Stakeholder

Satisfaction

ISO 9001 Lean – the concept Model

Continual Improvement of the

Quality Management System

Management

responsibility

Measurement,

analysis &

improvement

Resource

management

Product

realisation

Goods &

Services

Customer &

Stakeholder

Requirements

Customer &

Stakeholder

Satisfaction

ISO 9001 Lean – the concept Model

Objectives established

Continual Improvement of the

Quality Management System

Management

responsibility

Measurement,

analysis &

improvement

Resource

management

Product

realisation

Goods &

Services

Customer &

Stakeholder

Requirements

Customer &

Stakeholder

Satisfaction

ISO 9001 Lean – the concept Model

Performance understood

& waste reduced

Continual Improvement of the

Quality Management System

Management

responsibility

Measurement,

analysis &

improvement

Resource

management

Product

realisation

Goods &

Services

Customer &

Stakeholder

Requirements

Customer &

Stakeholder

Satisfaction

ISO 9001 Lean – the concept Model

Objectives achieved

Continual Improvement of the

Quality Management System

Management

responsibility

Measurement,

analysis &

improvement

Resource

management

Product

realisation

Goods &

Services

Customer &

Stakeholder

Requirements

Customer &

Stakeholder

Satisfaction

ISO 9001 Lean – the concept Model

Objectives established

Performance understood

& waste reduced

Objectives achieved

Lean Improving Business Performance

Lean provides an extremely effective tool for:

Focusing key members on the elimination

of waste

Identifying specific alternatives that will

improve processing times or quality

Provides a new lens for reviewing

customer requirements

Creating solutions that ‘bridge the gap’

between process and management.

Discussion: What may be some Barriers to successful implementation of Lean?

Task: Please provide a response to the above question.

Consider:

• Skills

• Culture

• Areas of the organisation, Structure, Etc.

Our Approach for LEAN

• Lean Implementation 5 day event – consecutive days or split over several

weeks

Training of CI Facilitators

Action Learning approach

Address an improvement opportunity and deliver outcomes through the training

Event

• Lean Blitzes 2 day blitzes

Basic Lean skills applied to an operational problem

• Applying Lean Concepts • 2 day Introduction to Lean Concepts

• Working towards a Lean Organisation

• ISO 9001 Lean • Application of lean to improve your management system

• Lean Coaching

An organisational journey

Fix the

basics

Align the

System

Focus on

value

Sustainable

Performance

SAI Global Client Solutions and Innovation

Client

Solutions Services

What

• Establishing sustainable performance • Organisational wide engagement in Performance Improvement • Tailored Systems for Business Performance Improvement

How

• Facilitating, sustainable capability development

• Structured program for organisational learning

• Delivered by credible advisors with extensive experience in Business Improvement

Our point

of difference

• Sole Australian Provider of an internationally recognised Leadership Framework

• Demonstrated success in Organisational Change Management

Organisational Improvement

Business

Performance

Quality

Management

Systems

ISO 9001-2008

Organisational Capability Low High

Rules

Values Aspirational

Quality

Compliance

Quality

Achieving Sustainable Performance

Understand Management

System and Governance

Criteria

Clarify Strengths

and Opportunities

for Improvement

Implement and

Manage the

Solution

Understand

the

System

Apply

Improvement

Techniques

Review

Improvements

Common Understanding

of the System and

Priorities Agreed

i.e. System Outcomes

Allocation of

Resources for Working

ON the System

Approval to Implement

and Accountability

Assignment

OFI’s from

Other

Sources

Systems

Thinking

Our Approach for Organisational Assessment

• Performance SnapshotAn on line survey against the categories and items of an Internationally

recognised Leadership Framework.

• Organisational Performance ReviewFacilitated workshops against the categories and items of an Internationally

recognised Leadership Framework.

• Organisational Performance EvaluationExperienced business assessors review the organisation against categories

and items of an Internationally recognised Leadership Framework.

• Structured Learning Self AssessmentFacilitated Self Assessment methodology used to transfer the knowledge of an

Internationally recognised Leadership Framework and the skill of conducting

an organisational self-assessment

Benefits to Commercial organisations

20% productivity increase in one year

247% sales increase over two years

150% increase in tenders won

500% increase in share price over six years

25% sick leave reduction in one year

66% lost time injury reduction

80% product defect reduction

Other Improvement Methodologies Six Sigma Is a statistical improvement method applied to processes and management systems

that reduces variation, removes process defects and improves efficiency.

Cultural Change Is an business improvement methodology that engages staff through a structured

approach of PDSA while addressing behavioral changes to assist with organisational

improvement.

Systems Thinking An improvement approach that enables a manager to clarify with staff the current state,

establish measures of performance and enables line of sight for the participants to their

contribution to the overall KPI’s.

Organisational Transformation A customised approach to business improvement that provides

a customer access to SAI’s wide range of individual and

management services to address the issues that are hindering

the Organisation to succeed.

Benefits for Organisations • This has brought the four facilities together in sharing data and common

systems.

• Greater focus on the system and not on the people when things go wrong.

• Feel we now have control of the business again. Benefits for Staff

• Staff morale has increased and they are in more control.

• Staff are beginning to understand their role in the context of the wider organization

• The staff have more confidence in using feedback systems.

• Communication and awareness has increased by more than 90%

Leading and Managing the Change

• Integrate the change into the organisation

• Adopt and embrace the change

• Understand the impact

on the System

• Assess how the system

can be further improved

• Review the progress of

Continuous Improvement

• Train Management and Staff

Our Approach for Leading Change

Facilitating sustainable capability development

Structured program for organisational learning

Organisational wide engagement in Excellence and

Continuous Improvement

Establishing sustainable performance

Leadership and Staff Coaching / Mentoring

Benefits to Leaders Provided me with solutions I needed to overcome issues being imposed upon me.

Has allowed me to devolve responsibility down the line better.

I look at requests for change through eyes of data and not just whims. Personally more open to ideas and suggestions.

I have stepped back from ‘leading’ to allow others to try to make decisions.

Benefits to Staff Improved staff satisfaction.

Personal improvement plans now work.

Staff members who previously were reluctant to be involved now line up to be part of it.

Communication has increased and improved

Our Approach for LEAN

• Lean Implementation 5 day event – consecutive days or split over several

weeks

Training of CI Facilitators

Action Learning approach

Address an improvement opportunity and deliver outcomes through the training

Event

• Lean Blitzes 2 day blitzes

Basic Lean skills applied to an operational problem

• Applying Lean Concepts• 2 day Introduction to Lean Concepts

• Working towards a Lean Organisation

• ISO 9001 Lean• Application of lean to improve your management system

• Lean Coaching