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Lean Thinking Thru Daily Work Management
M Hariharan
Director
Savoir faire Management Services Pvt Ltd
Two days Workshop on QUALITY MANAGEMENT STANDARDS & QUALITY TECHNOLOGY TOOLS (QMS/QTT)
Dt. : 11 December 2015 Venue : MCCIA Pune
22
Agenda
Lean Thinking - Alignment
Integration with QMS
Customer Value
Process Alignment
People Alignment
Lean Leadership
33
Agenda
Lean Thinking - Alignment
Integration with QMS
Customer Value
Process Alignment
People Alignment
Lean Leadership
44
Lean Thinking
Changing Cost Perspective
Sustaining “Inequality”
Lean Thinking - Alignment
55
Lean Thinking
Changing Cost Perspective
Sustaining “Inequality”
Lean Thinking - Alignment
66
Changing Perspective of Cost
C + P = SBlessing of Customer – Cost Reimbursement Model
S - C = p
Curse of Competition and Inefficiency
S - P = CCustomer Value Creation and Economic Value Creation
Allowable Cost
77
Lean Thinking
Changing Cost Perspective
Sustaining “Inequality”
Lean Thinking - Alignment
88
Sustaining the “INEQUALITY”
Customer Value
Economic Value
v > P > C
99
Lean Thinking
Changing Cost Perspective
Sustaining “Inequality”
Lean Thinking - Alignment
1010
Visionary Leadership
Purpose(Customer
Value)
Process(Methods,
Supply Chain)
People(Key
Drivers of Results)
Prosper(TBL)
(adapted from the Lean model of James Womack)
1111
Visionary Leadership
Purpose(Customer
Value)
Process(Methods,
Supply Chain)
People(Key
Drivers of Results)
Prosper(TBL)
V>PP>C
(adapted from the Lean model of James Womack)
V>P > CV>P > C
Toyota Way - First Principle : Long Term Philosophy
Base your management decisions on a long-term philosophy,even at the expense of short term financial goals
1212
Agenda
Lean Thinking - Alignment
Integration with QMS
Customer Value
Process Alignment
People Alignment
Lean Leadership
1313
Visionary Leadership
Purpose(Customer
Value)
Process(Methods,
Supply Chain)
People(Key
Drivers of Results)
Prosper(TBL)
(adapted from the Lean model of James Womack)
Customer Focus
Leadership
Engagement of People
Process Approach
Improvement
Evidence based Decision Making
Relationship Management
Integration with ISO 2015
1414
Agenda
Lean Thinking - Alignment
Integration with QMS
Customer Value
Process Alignment
People Alignment
Lean Leadership
1515
Purpose… Customer Value
“Understand what the customer wants”does
Customer Focus
1616
Purpose… Customer Value
“Customer is the one who pays for our product/service”
not only
but every one who is impacted by our product/service
Customer Focus
17
7 Wastes
Customer Focus
1818
7+1+1+1
Non-utilized creativity of people - Shingo
Mudas (Taichi Ohno)
Defects
Overproduction
Waiting
Transportation
Inventory
Motion
Extra processing
Design of product not meeting customer needs (Womack)
Policy (Savoir faire)
Customer Focus
Process Approach
1919
Sources of Defects (3 Ms)
Not Understanding the Purpose
Doing the work well ahead of time
Doing the work at the last minute
Non-utilised Creativity
Unwanted movement
Accumulated work to do in batch
Corrections
uda
Waste
Process Approach
Customer Focus
2020
Agenda
Lean Thinking - Alignment
Integration with QMS
Customer Value
Process Alignment
People Alignment
Lean Leadership
2121
Process
ProcessInputs OutputOutcome
Effective and Efficient Process
Process Approach Improvement
Relationship Management
2222
3 Ms
uda
ura
uri
Waste
Variability
Strain
2323
Sources of Defects (3 Ms)
Month end, Week end, Day end, Nearing lunch Syndrome
Student’s Syndrome
Uneven work flow
Skill Variability
Skill Mismatch
uraVariability
2424
Sources of Defects (3 Ms)
Strenuous Postures
Continuous, monotonous work
All work, no play
Lack of training
Lack of Clarity of purpose
Mood swings
uriStrain
25
Three eyes of Buddha
2626
Prof. Shoji Shiba
Maintain What You DoIncrementally Improve
Breakthrough
2727
Stability and Improvement
5SStandard WorkOEE Autonomous MaintenanceCP/CPK
VSMKaizenKanbanPoka YokeSix Sigma
Process Approach
Improvement
Relationship Management
2828
Agenda
Lean Thinking - Alignment
Integration with QMS
Customer Value
Process Alignment
People Alignment
Lean Leadership
2929
Prof. Shoji Shiba
Maintain What You DoIncrementally Improve
Breakthrough
3030
Prof Tsuda’s Model
Share of Responsibility
Operator
Supervisor
Engineer
Manager
Leadership
Engagement of People
3131Share of responsibility .. With rampant fire fighting
Share of Responsibility
Operator
Supervisor
Engineer
Manager
3232
A “Day” of a Leader
Daily Fire Fighting
Daily Routine
Self Development
Team Development
Daily Kaizen
Dream for the Future
Daily Fire Fighting
Daily WorkManagement
Policy Deployment
3333
33
OutputThe Reality of Kaizen Events
Time
Event #1
Event #2
What Standard should be
What actually becomes the Standard when people do not sustain the changes.
Maintenance
Maintenance
Event #3
Work Standard
What Standard should be
Evidence based Decision MakingProf Shiba
3434Process Control and Process
Improvement
Run an existing process for a whileCompute the natural variation limits, thus highlighting exceptional variation
Find and eliminate the sources of exceptional variation
Continue running and monitoring the new or now accurately followed processes, using methods of process controlEliminate the source of any unstable condition (exceptional variation) that begins to occur
If desirable to reduce the natural variation of the process, use reactive improvement methods
Continue running and monitoring new process, using methods of process controlEliminate the source of any unstable condition that begins to occur
SDCA PDCA
Evidence based Decision MakingProf Shiba
3535Alteration of SDCA and PDCA
P
D C
A
C
A S
D
Use Standard
Do WorkCheck work against standard
Act: Either use present standard or improve
Routine Work
Plan Improvement
Do Improvement
Check Improvement results
Adjust: Either Standardize or re-plan
Improvement Activities
Evidence based Decision Making
Prof Shiba
3636Building Blocks of DWM™
Standard Work
Visual Manage-
ment
SDCA/ PDCA Cycle
Daily Kaizen
Defined Zonal Ownership
MP/CP Aligned with KPIs
CommunicationKPIs Aligned with Policy Deployment
DWM aligned to Customer Value
[ Control ] [ Improvement ]
Evidence based Decision Making
Customer Focus
LeadershipEngagement
of People
Process Approach
Improvement
Relationship Management
3737
Leader’s Pie
Dream for the future
3838
Hoshin Kanri
Ho
Shin
Kan
Ri
Direction
Focus
Alignment
Reason
3939
Hoshin Kanri
Hoshin Kanri is the first attempt at business break thru’ rather than process break thru’
Deals systematically with process improvement across company to produce desired business results
MBO was not connected to processes
4040
Hoshin Kanri for Alignment
Aims to align all towards key company goals Using indirect enforcement
Creating a sense of urgency
Even hourly employees are influenced to choose activities with strategically important objectives
Aims to align all jobs and tasks, (routine and improvement) focusing and coordinating efforts and resources to key company goals in order to create breakthroughs
Aims to bring company’s goals and activities quickly and effectively into alignment with rapid societal and environmental changes
4141
Plan
Plan
PDCA of Hoshin KanriLong-Term Vision and
Plan
Company’s Mid-term Plan
Environmental changes
Diagnosis by CEO
Annual Hoshins
Hoshin & Measurement
Plan deployment
Control by Measurement
Do
CheckAdjust
Prof Shiba
4242
Five Elements of Hoshin
Hoshin
= Statement of desired outcome for next year
+ focused means
+ metrics to measure progress
+ target values for metrics
+ deadline date
Prof Shiba
4343
Eg : Five Elements of Hoshin Statement of desired outcome for next year
Daily practice of market-in concept
Focused means
Create attractive product by improving market research
Increase customer satisfaction of out product by using quality tables
Assume on-time delivery by improving processes
Metrics to measure progress
On-time delivery rate
Target values for metrics
100 %
Deadline date
March 2013
Prof Shiba
4444
Plan
Plan
Proactive, Reactive and Control
Long-Term Vision and
Plan
Company’s Mid-term Plan
Environmental changes
Diagnosis by CEO
Annual Hoshins
Hoshin & Measurement
Plan deployment
Control by Measurement
Do
CheckAdjust
Proactive
Reactive
Control
Prof Shiba
4545
Agenda
Lean Thinking - Alignment
Integration with QMS
Customer Value
Process Alignment
People Alignment
Lean Leadership
4646
Lean Leadership
Senior Management is simply a flag bearer when a business decision is made. It is of no use unless others follow the flag
Eiji Toyoda, Former Chairman of Toyota
4747
Lean Leader
Leader is a coach
Leader is a mentor
Mission is to put the team in a position to “win”,i.e., add customer value.
Encourage, enable self-development and develop others.