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New product development Product design release Production planning Materials management Hiring Billing and collections After sales service Human resources training Customer needs analysis
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Subprocesses
Activities
Tasks
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There are three things you should consider during the selection process:
Changeability / Risk Business Impact Customer Impact
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Process Name
Hiring Process Accounts Payable Engineering Change Release Request for Quotations Employee Appraisal Process New Management Training 3 2 5 5 3 4 5 4 5 5 3 4 4 3 4 3 3 3 60 24 100 75 27 48
A rating of 1 indicates that the process is difficult to change or that it has little impact on the business. A rating of 5 indicates that the process is very easy to change or that it has large impact. The ratings of the four categories for each business process are multiplied, and these results are used to set the priorities.
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Do you really know your customers ? Do you know what they need and expect ? Are your customers excited about your products and services ? If not, what will it take to excite them ?
Your customer remembers your name under two conditions: 1. When you provide extremely poor products or service. 2. When you provide surprisingly good products or service.
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Internal
External
3. OEM / Distributors: These are the customers outside the company who receive the end product or service. 4. Consumers: Users of products and services. Sometimes, companies deliver their output directly to the consumer.
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This will lead to specific Power Lean tools such as Failure Mode and Effects Analysis (FMEA).
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Business Process Improvement in manufacturing, design, and administrative service industries, takes the form of increasing the effectiveness and efficiency of the processes that provide output
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1) Pretend you are the item going through the process 2) Walk the Path the item takes 3) Record each activity (Working, Waiting, Moving) 4) Determine if the activity has value 5) Are there defeats being generated ?
0.2
0.1
0.2
12.0 26.0
0.3
0.3 12.0
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2.2
170.4
This scenario is closer to truth than fiction. While the process throughput time is 170.4 hours only 2.2 hours were spent in actual work effort. The rest was wasted time that does not add value. It is easy to see why we need to measure throughout time.
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People Energy
Lack of Focus Lack of Structure Lack of Ownership Inadequate Control Excessive Tampering Inappropriate Assignment Unclear Goal Alignment
Process
Boundary Errors Checking Waste Work-around Waste Variability Waste Lack of Standardization Unbalanced Flow Waste of Sub-optimization Strategic / NVA Process Waste
Information
Hand-off Waste Translation Waste Missing Data Irrelevant Information Waste Inaccuracy Waste
People Work
Processing Waste Non-Value added Motion Waste of Waiting
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Types of Waste
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Types of Waste
Motion Waste is the movement that does not add value, such as walking and reaching.
Waiting Waste is people waiting for information, a meeting, a signature, a phone call, a copier, a downed system or computer, etc..
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Types of Waste
Process Waste
Strategic Waste is value lost (effort wasted) as a result of processes that do not provide value to customers and shareholders.
Sub-optimization Waste is effort wasted by processes that compete with one another Unbalanced flow Waste is invested resources put into material or information that piles up between workstations (WIP). Standardization Waste is effort required to correct consequences of processes that do not consistently produce the same output.
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Types of Waste
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Types of Waste
Information Waste
Hand-off Waste is effort required to pass data between owners.
Translation Waste is effort required to change data, formats and reports between process steps. Missing Information Waste is effort or defects driven by the absence of key information. Irrelevant information Waste is the effort caused by having to deal with unnecessary information. Inaccurate information Waste is the effort or defects caused by having to deal with bad information.
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Business Process Value Stream Map Example Business Process Value Stream Map Example
Simplification
Process Cycle-Time Reduction Error Proofing Systems Upgrading
Standardization
Supplier Partnership Automation and/or Mechanization
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Identify business process improvement opportunities Walk the process to gain thorough understanding Create business process map identify waste and other improvement opportunities Set improvement objectives Create future state vision
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2.
3.
2. Other End User Product Selection & Ordering
Document Reality
Set Objectives
50% Cycle Time Reduction 100% On Time Defect Free
OEM
RGOS
OMS
Ship to Whse
Ship Direct
8.
9.
4.
* * * * * * * *
X
Correlation and Regression Cause & Effect Diagram
Measure Progress
Error Proofing
7.
Development
6.
Week 1
5.
Refine Schedules
Agree on Goals