01 lean management introduction 2012

8/3/2019 01 Lean Management Introduction 2012

1/23

1

Lean Management

01 An Introduction


2/23

2

Welcome

Before we begin Id like to establish some guidelines:

I hope this course will be both challenging and fun

It will be if you apply and practice what you have learnt so

you tune your senses (textbook examples are not

enough)

I prefer a reasonable amount of dialogue so I know you

are hearing me and are engaged

Dumb questions are rarely dumb: have the courage to

ask them

If I am not busy you are welcome to continue our dialogue

on Lean


3/23

3

Is Change necessary: True or False?

Your organisation has a monopoly in its markets.

Customers send greeting cards and presents to the people in your

Customer Care Centre.

Michael Dell has been seen hiding in the bushes trying to find out why your

order-to-cash cycle is quicker than his.

Toyota is envious of your reputation for Quality.

Wall Street Analysts are recommending people buy your shares.

You deliver products/services to your customers when and where they

want them.

Technology has been static in your sector for the last millennium.

Your efficiencies are a safeguard against jobs being off-shored.

Your competitors are utterly, utterly useless!


4/23

4

Why change?

What do the following have in common?

Studebaker
http://en.wikipedia.org/wiki/Image:Ferrari-Logo.svghttp://en.wikipedia.org/wiki/Image:Lazystude.gifhttp://en.wikipedia.org/wiki/Image:Swissair_logo.gif


5/23

5

Lets start with the customer?

Thinking about your company:

A. How important is the customer?

B. Which is more important: customer retention ornew-customer acquisition?

C. How good was your company at listening to

your customers?


6/23

6

How important is the Customer?

A customer is the most important visitor on ourpremises. He is not dependent on us. We aredependent on him. He is not an interruption ofour work. He is the purpose of it. He is not anoutsider on our business. He is a part of it. Weare not doing him a favour by serving him. Heis doing us a favour by giving us an opportunity

to do so.

WARNINGCustomers are awkward and unpredictable, like you and

me.

- Mahatma Gandhi -


7/237

Broken Processes? Bad Policy?

1. Your home insurance is up for renewal and you

get a timely and personalised reminder: 30% discount on your home insurance!

30% discount on your contents insurance!

12% further discount for having both insured with thecompany

Do nothing: managed under existing debit arrangements

But your insurance has gone up by 25%!

2. As a loyal customer, you are entitled to a free

phone upgrade: But you are charged on your next invoice The really nice person at the Call Centre apologies and

deletes the charge, saying this happens all the time

The same thing happens again at the next upgrade


8/238

Examples of Customer Experience

3. You return a rental car with an empty tank. Thecheck-in process is quick and efficient. You latercheck your invoice which lists:

A full tank of fuel (with a 30% surcharge)

A refuelling charge equal to the tank of fuel You were not told this when you collected the car, but the

charge is clearly listed in the small print


9/239

Questions

Did anything go wrong?

What effect did this have on the customer trust and

loyalty?

What was the cost of dealing with the customer?

How does it affect the morale of front-line staff?

Were these failures of process or policy?

Could IT have prevented the failures or did it

contribute to them?

Would anyone like to share some of theirgood and bad experiences as a customer?


10/23

Customer Value Quality

All organisation have finite resources: Time

Money

People

Facilities

How would you make sure you are alwaysdelivering the customers perception of Value?


11/2311

The Customer: a systems perspective

Product orService

CustomerOrganisation

People

Material

Method

Technology

Voice of the Customer

Voice of the Process

Do welisten?

Or do we get a CallCentre to run

interference?

Do we know how

well our processesbehave? Their

Capability?


12/2312

The Importance of Processes

A Toyota view:

We get brilliant results from average people managingbrilliantprocesses

We observe that our competitors often get average (orworse) results from brilliant people managing brokenprocesses

In Search of the Perfect Process James Womack; 2002


13/2313

Global Competition in 1979!!!

We are going to winand the industrial west is going to lose: theres nothing much youcan do about it, because the reasons for your failure are within yourselves.

Your firms are built on the Taylor model ; even worse, so are your heads.For you, the essence of management is getting the ideas out of the heads of thebosses into the hands of labour.

We are beyond the Taylor model : business, we know, is now so complex and difficult,the survival of firms so hazardous in an environment increasingly unpredictable,competitive and fraught with danger, that their continued existence depends on theday-to-day mobilisation of every ounce of intelligence.

For us, the core of management is precisely this art of mobilising and pullingtogether the intellectual resources of all employees in the service of the firm.We know that the intelligence of a handful of technocrats, however brilliant and smartthey may be, is no longer enough. Only by drawing on the combined brain powerof all its employees can a firm face up to the turbulence and constraints oftodays environment.

- - Extract from a speech by Konosuke Matsushita of the Matsushita Electric

Industrial Co. given to visiting European & American managers in 1979


14/2314

Lean v/s Command & Control

Authority Level

Director

Controller

Senior Manager

Line Manager

Supervisor

Operator

(the person addingValue)

Lean Command & Control

The stove is hot!The stove is hot! Ouch!

I think I better report this tothe manager.

Can you do me a businesscase?

How many fingers destroyed?

Its not in the budget.

Lets get some consultants.

Ouch!Remove finger!

NVATim

e

Learning byDoing

Will Workflowwork without a knowledge of Lean?


15/23

Customers Perceptions of Value

Are they?1. Static: Ar Chalta Hia?

2. Decreasing: Me Kya Karu?

3. Increasing? Wow have you seen the ne i-Phone?

4. Increasing and rapidly changing: Bap r bap!

If 4.,why is this so?

Technology?

Competition?

Consumerism (eBay, Amazon, Airline Quality,Facebook, Twitter, Web 2.0)?

Is this putting any pressure on an organisation?


16/23

16

Keeping up with Growing ComplexitySteven SpearChasing the Rabbit

1955 Today

ProductPerformance

FunctionalityReliabilityEconomySafetyVariety

Few Functional Silos Many Silos of Great Depth

Knowledge& Expertise

Knowledge & Expertise


17/23

17

Change, Improvement, Learning

Noriaki Kano:

Time converts today'sexciters & delighters into tomorrowsmust haves

Change is unavoidable

Steven Spear:

The knowledge required to survive is far greater than it was 50years ago

The rabbits stay ahead of their competitors by learning quicker

Konosuke Matsushita:

Only by drawing on the combined brain power of all itsemployees can a firm face up to the turbulence andconstraints of todays environment.


18/23

18

Change can be frustrating

Time

Change

No KaizenNo Standard Work

Rad

ical

No KaizenNo Standard Work

Kaizen

Wasted Effort &Frustration

- - Masaaki Imai


19/23

19

Radical

Sustained Change

Time

Change

Radical Standardise

Standardise

Standardise

BenefitsSustained improvements

An workforce engagedin kaizenA culture that encourages learning

A workforce ready for the nextradical change


20/23

20

Kaizen(Continuous Improvement)

Improvements are not sustainable without kaizen

Kaizenmust involve everyone

But kaizenis impossible if Learning is not seen as important

Improvements should be approved at the lowest possiblelevel of authority and tackled as soon aas possible

Every employee involved in 10-20 improvements each year

Should kaizenbecome an Obsessive Compulsive Disorder?

Absolutely!


21/23

Summary

Customers

Value

Quality

(Global) Competition

Learning

Change: improve continually


22/23

Homework!!! (Bap r bap!)

Think of a service or product:Can you think of an aspect which did not meet

your expectations?

What does Quality mean to you?


23/23

23

Questions?

01 lean management introduction 2012

Documents