Session 3

April 2013

Improving Operational Performance

To introduce business improvement tools and

techniques.

Session Aims

By the end of this session you will be able to:

Identify continuous improvement techniques.Explain the principles of “5S”. Identify and use visual indicators to improve the

work area.Describe methods to eliminate variance from

processes.Produce a process map.

Session

Objectives

Continuous improvement in business is often known

as kaizen.

This can be roughly translated from Japanese to

mean “good change”.

Kaizen is a long term approach to work that

systematically seeks to achieve small incremental

changes in processes in order to improve efficiency

and quality.

What is continuous

improvement?

Lean organisations often use benchmarking as part

of their continuous improvement methods.

The object of benchmarking is to understand and

evaluate the current position of a business in

relation to best practice and to identify areas and

means of performance improvement.

Benchmarking

3 Divisions of

work

Value added – an activity that alters the nature, shape or characteristics of a product in line with customer requirements. For example; data or information input, order acknowledgement, producing a part.

Non-value added – any activity carried out which is necessary under current conditions but does not increase the product value. For example; quality inspection, multiple signatures.

Waste – all unnecessary work. Eliminate!

Transportation Inventory Motion Waiting Over production Over processing Defects Skills

Seek out Tim Woods, he is present in every

workplace and we need to get rid of him!!!

The 8 forms of waste

Some of the benefits of applying lean techniques

include; Reduced product cost for the end userImproved safety in the workplaceHigher quality of products and customer serviceReduced lead timeReduced non-value added and waste activitiesStandardised working practices meaning every

product is the same as the last and quality

standards are maintained at a high level.

Benefits of improvements

The improvement cycle

The importance of having an organised workplace within a

lean environment cannot be underestimated; it can be the

foundations of a lean culture that will lead to long term job

security and a successful business.

An organised workplace needs to be: clean, healthy, safe,

informative, well disciplined, efficient, productive, free from

clutter and waste with easy access to the materials and

equipment needed to do the job.

Workplace organisation –

5S

Sort or Clear out Simplify or Configure Shine or Clean Standardise or Conform Sustain or Custom and practice

The 5-Step approach

An important part of any 5S activity is how you

communicate information to colleagues in your own

department and other by using visual systems.

Communicating

information

Standardised work is one of the many benefits of a lean

organisation. It allows an organisation to remove variance

from any process by developing a single best method of

carrying out a task.

Once developed, these standardised methods are written

down in the form of a step-by-step guide and known as a

Standard Operating Procedure (SOP).

Standardised work

Visual management systems are a method of managing the

working environment using clear visual messages.

Good visual management should need no interpretation and

provoke a reaction.

There are two types of visual

management; visual controls,

such as minimum and maximum

levels, and visual displays such

as performance measures.

Visual Indicators

Process mapping

Process mapping is a diagnostic tool used to visually illustrate how a product or service flows through a process

To break the process down into 5 key areas, providing an easily understood visual overview

This can be used to identify waste within the process and to determine the current lead time.

Operation - step where the product is changed inline with customer requirements

Inspection – indicates a check for quality or quantity

Transportation – movement of worker, material or Equipment

Delay - indicates a delay in the process, or an object laid aside until required

Storage - accumulation of material held under controlled conditions.

Process maps are created by recording each step or activity

within a process, recording the time that that step takes and

any distance that the item being mapped has to travel.

Each step is recorded in one of the 5 key areas or

categories; operation, inspection, transportation, delay or

storage.

By the end of this session you will be able to:

Identify continuous improvement techniques.Explain the principles of “5S”. Identify and use visual indicators to improve the

work area.Describe methods to eliminate variance from

processes.Produce a process map.

Session

Objectives