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LEAN

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Six Sigma is about precision and accuracy- leading to data-driven decisions. Methodology Analogy ... 'The LEAN Six Sigma Distributor' www.ibtinc.com. IBT ... – PowerPoint PPT presentation

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Title: LEAN


1
LEAN
Rex Davis Vice President of Supply Chain for IBT
Inc.
The Lean Six Sigma Distributor
2
THINK LEAN!!!
Who currently practices LEAN???
3
Who takes the shortest route home?
4
THINK LEAN!!!
You are already THINKING LEAN!!!
Lets learn how we bring it to work!!!
5
BOILED FROG
  • If you put a frog into a
  • pot of boiling water,
  • it will leap out right away
  • to escape the danger.

6
BOILED FROG
  • But, if you put a frog in a pot that is filled
  • with water that is cool and pleasant,
  • and then you gradually heat the pot
  • until it starts boiling,
  • the frog will NOT become aware of the
  • threat until it is too late.

7
BOILED FROG
  • The frog will be
  • boiled ALIVE!!!

8
LEAN ??? You be the Judge!
  • We dont have to CHANGE,
  • survival is not mandatory.
  • Dr. W. Edwards Deming

9
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10
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11
LEAN Six Sigma What is it?
  • LEAN and Six Sigma are both process improvement
    methodologies
  • LEAN is about speed and efficiency
  • Six Sigma is about precision and accuracy-
    leading to data-driven decisions

12
Methodology Analogy
Lean Six Sigma
Six Sigma
LEAN
Kaizen
13
Lets Dig deeper into LEAN!!!
14
Misperceptions about LEAN
  • Its a factory thing
  • It wont work here
  • We tried that
  • Its all about one-piece flow
  • 5-S is cleaning up your desk
  • We are different
  • Zero Inventory

15
Industries Deploying Lean in the Office
Environment
  • Advertising
  • Banking
  • Computer services outsourcing
  • Document management
  • Energy services
  • Field technical services
  • Financial services
  • Telecommunications
  • Construction
  • Hotels hospitality
  • Insurance
  • Logistics and distribution services 
  • Professional services
  • Sales marketing
  • Transportation
  • Manufacturing
  • Healthcare
  • Transactional processes in manufacturing
  • and even our on Government

16
Little LEAN History
  • Henry Ford

Pioneered the concept of an assembly line with
synchronized and standardized operations. Iron
ore in barge on Monday morning to completed Model
T on Tuesday afternoon
  • Toyota

Camry every 57 seconds
  • Harley Davidson

Assembly process 45 Minutes
17
LEAN Industries
  • Military/Aerospace

Reduce aircraft turn around time cost
  • Medical

Reduce processing timeeliminate waste
  • Financial

Customer focused processes faster, higher
quality, lower cost
18
LEAN
  • Principles and techniques used by Lean companies
    are
  • Proven
  • Effective
  • Efficient
  • Powerful

19
Goals of LEAN
  • 1. Eliminate Waste
  • Waste is any activity that takes up time,
    resources or space but does not add value to a
    product or service.
  • 2. Improve Quality
  • Your products and services conform to your
    customers wants and needs.

20
Goals of LEAN
  • Reduce Lead Time (SPEED)
  • Lead time is the total time it takes to complete
    a series of tasks within a process.
  • Reasonable Price (Competitive Price)
  • Does not mean cost cuttingmeans cost
    management. Improving quality and productivity,
    reducing inventory and lead time will reduce
    total cost.

21
Seven 1 Types of Waste
1. Over-production
2. Transportation
4. Excess Motion
  • Inventory

22
Seven 1 Types of Waste
6. Over-processing
5. Defects/Rework
1. Underutilized People
7. Waiting
23
Typical Office Wastes
  • Lack of standard work between departments
  • Irrelevant meetings
  • Making multiple copies
  • Approval for things you are not involved in
  • Inspecting others work
  • Inter-office snail mail

24
Eliminate Waste
25
Goals of LEAN
  • 2. Improve Quality

Simple Make what your CUSTOMER wants!!!
26
Goals of LEAN
  • Reduce Lead Time (SPEED)

Simple Deliver your products to your CUSTOMER
when THEY want it!!!
27
Goals of LEAN
  • Reasonable Price (Competitive price)
  • Simple Sell your product for a reasonable
    price, that is competitive in the market place
    and is ACCEPTABLE by YOUR CUSTOMER

28
LEAN is...SIMPLE
GIVING YOUR CUSTOMERS
  • exactly what they need
  • when they need it
  • in the quantity they need
  • without defects
  • and at THEIR acceptable price

29
  • LEAN,
  • competitive advantage
  • or
  • NECESSITY???

30
Customers Perceptions
Customer Perceptions
Late Delivery
Too much Inventory
Long Leadtimes
Not Price Competitive
No warehouse space
Can't meet demand
Projects Never Complete On-time
31
Market Realities of Today?
  • Mature industry
  • Intense competition
  • Capacity exceeds demand
  • Price sensitive
  • Interconnected world (world is flat)
  • Customers demand more for less
  • Customers demand faster response

32
  • Each of OUR customers CHOOSE who they buy
    from!!!

33
What is it that CUSTOMERS do NOT like???
Youre a customer!!! What dont YOU like???
HOLD MUSIC
DEFECTIVE PRODUCT
RUDENESS
UNORGANIZED
WAIT TIME
HIGH PRICING
34
What are CUSTOMERS looking for???
VALUE
DEALS
FRIENDLY SERVICE
SMILE
QUALITY
QUICK RESPONSE
LISTEN
KNOWLEDGE
35
are the
ONLY ones paying for your companys product and
services!!!
What makes your company valuable to your
customers???
CUSTOMERS
36
The Challenge of LEAN
  • Dr. W. Edwards Deming states that
  • problems are in the process,
  • not the person
  • 85 of problems were built into
  • the way we work.
  • To make a profit we must
  • improve our process efficiencies
  • (quality and speed)

37
CUSTOMER NEEDS
  • DOES your company currently have these three
    requirements
  • SPEED
  • QUALITY
  • RIGHT PRICE

38
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39
LEAN ??? You be the Judge!
  • We dont have to CHANGE,
  • survival is not mandatory.
  • Dr. W. Edwards Deming

40
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41
LEAN Six Sigma requires Behavioral Change
  • LEAN Six Sigma challenges Us to
  • Think differently
  • Work differently
  • Ask questions and challenge the status quo
  • Make decisions with facts and data

42
Cultural Aspects of Becoming Lean
  • Lean transformation requires everyone to change
  • It impacts all levels of the organization
  • The change will be traumatic
  • Lean changes how people work and think
  • People are at the center of the system

43
Common Obstacles Encountered
  • People resisting change, will
  • Attack the methodology
  • Attack the people introducing it
  • Make excuses
  • Support it in public, but work against it in
    private
  • Maintain status-quo hoping change will go away

44
Obstacles Typically Encountered
  • Functional Silos
  • Operate independently
  • Are internally focused
  • Have difficulty working together
  • Focus on their own improvements disregarding
    customer delivery

45
Planning to Overcoming the Obstacles
  • Plan for a resistance to change
  • CEO visibly and support drives the effort
  • Mandate participation in LEAN
  • Involve ALL the Senior Staff
  • Identify projects with smaller scopes
  • Empower people to change

46
Companies that have developed processes that can
do more and more with less and less---
effort, equipment, time, and space---
while coming closer closer to providing
customers with exactly what they want, when they
want it
LEAN companies are taking YOUR CUSTOMERS ONE SALE
at a TIME!!!
47
Jump or Boil??? Its YOUR CHOICE!!!
  • Will you be a FROG that is leaping ahead of your
    competition?
  • Or will you be left behind in the pot waiting
    to be BOILED?

48
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49
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50
LEAN ??? You be the Judge!
  • When the rate of change
  • on the outside of your
  • organization is greater than
  • the rate of change on the
  • inside, the end is in sight.
  • Jack Welch

51
IBT continues to leap AHEAD of our competition!!
  • The LEAN Six Sigma Distributor
  • www.ibtinc.com

52
  • THANKS!!!

53
Get to know IBT and you will understandwhy we
have been one of AmericasLeading Distributors
since 1949.
The LEAN Six Sigma Distributor
rdavis_at_ibtinc.com
  • www.ibtinc.com
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