big savings for small companies. do you recognise these issues? strong need to cut costs – ideally...
TRANSCRIPT
Big Savings for Small Companies
Do you recognise these issues?• Strong need to cut costs – ideally without slashing staff levels
• Frequent firefighting by senior management to make things happen or to overcome crises
• Poor delivery performance [on time in full – do you even know?!]
• Disproportionate levels of overtime or outwork
• Too many cock-ups – lack of care or communication breakdowns?
• Too much progress chasing – tying up production office, customer service or sales staff
• Known capacity bottlenecks – often believed to be solvable only by further investment
• Ill-defined but high material waste levels [paper, board or film]
Continuous Improvement techniques
1. Customer Service management
2. Information Flow
3. Key Performance Indicators
4. Waste Reduction
5. Productivity Improvements
6. Workplace Organisation
1. Customer Service Management
•Few printers view this as a process yet bigger impact on customers than product cost.
•There are simple steps that make customer service a process
•Measure OTIF (On Time In Full)
•Measure customer satisfaction objectively
•Review and improve customer service processes
•Create Standard Operating Procedures
•Train customer service staff
Customer Service
Measure On Time In Full (O.T.I.F.) Trend & Reasons for failed deliveries
2005 OTIF Delivery
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Task R A C I
• Confirm production slot Sales Rep Sales
Manager
Planner Customer
• Plan production Planner Planning
Manager
Production Sales
• Order materials Buyer Buyer
Manager
Supplier Planner
• Manufacture component Production
Operator
Shift Manager
Store
person
Despatch Operator
• Deliver to customer Despatch
Operator
Despatch
Manager
Transport
Manager
Sale RepAgree Roles & responsibilities
Review customer service
processes & agree procedures.
2. Improving Information Flow
• Create standard methods of doing tasks• Stage & Status of every current job is clear• Improved planning through Visual Management• No time lost looking for job-bags• Make optimum use of MIS systems
Example Customer Service KPI’s
• Quote hit rate
• Quote turnaround time
• Proof turnaround time
• No. Proof Amends by customer
• Information Not Right First Time (N.R.F.T.)
• Lead Time (value adding vs queue time)
• Customer complaints
3. Key Performance Indicators (KPIs)
IF YOU DON’T MEASURE IT
• How do you know if you have improved it?
• How do you know if your costs are accurate?
• How can you plan and give accurate delivery promises to customers?
KPI’s Support QUALITY
COST
DELIVERY
PEOPLE
KPI’s
• Big
• Simple
• Obvious
• Locally owned
• Provides focus for team briefings
…with high but achievable targets agreed by team
Control and Improvement
Downtime Minutes per Day
0
50
100
150
200
250
300
Mon
1st
Tue 2n
d
Wed
3rd
Thu 4t
h
Fri 5t
h
Mon
8th
Tue 9t
h
Wed
10th
Thu 11
th
Fri 12
th
Mon
15t
h
Tue 16
th
Wed
17th
Thur 1
8th
Fri 19
th
Mon
22n
d
Tue 23
rd
Wed
24th
Thu 25
th
Fri 26
th
Day
Min
ute
s L
ost
Improvement
Control
4. Material Waste reduction
• Where are we now? • What are the main issues?
Material Waste reduction
Map the process to understand where waste occurs & associated issues.
Use data to Identify Priority
areas for improvement.
Implement, communicate & agree improvements.
It’s not just scrap and reprints…….Too many
overs allowed
Not enough overs
Material issues
Bindery MR
waste
Incorrect job spec
Overprocessing
Secondary
damage
Scrap
Unclear quality standar
ds
Environmental
Blanket wash waste
Overprints
Excessive MR wastePlate
defects
Run waste
Customer complaints
……………..But it’s ALL lost money!
5. Productivity
• Overall Equipment Effectiveness (O.E.E.)
– The ‘acid’ test for how well an asset is working for the Business
Availability 75% e.g. 25 of 100 hours lost through Downtime, Make-ready & wash-ups, equipment failure.
Performance 80% e.g. Achieving 8,000 cph instead of 10,000 on the floor.
Quality 90% Includes running waste & overs.
X
X
O.E.E. = 54% World Class = 85%
Analyse Downtime & Causes
• Capture data e.g. log sheet.
• Simple
• Requires Operator involvement & understanding • Pie chart – Good vs.
Bad • ‘Bad’ broken down into priority order of reasons
Make-Ready Reduction
1. Capture Current Situation
2. Break into separate steps
3. Brainstorm for improvements
4.Trial & Review revised method
Typically 30-40% Reduction
…next step to share & agree revised method
Standard Operating Procedures
A means to communicate a safe & most effective current method of carrying out a process.
A.N. Other22nd June 04
Lean Focused Maintenance
• How much time lost through breakdown or slow running?
• How long actually required?
• Engineer or operator task?
• Weekly block of time or break into short, frequent easily monitored steps which can be carried out during unplanned downtime?
Ask your self….. HOW MUCH WILL IT COST THE COMPANY IF WE DO NOT TAKE CARE OF OUR EQUIPMENT?
Stand still at your workplace for a few moments each day. Look 360° around you. Ask yourself these questions:
Are there any things in the gangways?
Does anything look out of place?
Can you see parts that shouldn’t be there?
Can you spot any leaks/spills?
Is your work station cluttered?
Are there any damaged tools/tooling?
Does the area look out of control?
You cannot do it alone!If the answer to any of these is YES what are YOU going to do?
6. Workplace Organisation (5C)
Benefits of 5C
• Reduced costs - fewer quality issues• Process Improvement - reduced waste• Increased efficiency - less wasted time• Improved company profile - good reputation• Impressed customers - leave wishing they were as good• Future business - good efficiency & good quality = Growth• Improved safety – fewer accidents
From this…
...to this
...with
5C Workplace Organisation
What is 5 C …?
A method to organize and maintain a clean, efficient workplace. Where all employees work as a team to constantly maintain and carry out well organized and completely understood daily operations.
1. Clearout
2. Clean & Check
3. Configure
4. Conformity
5. Custom & Practice
… because this is what we work ‘round’ and our customers see!
Why do we need to….
• Improved Customer Satisfaction
• Reduction in Process Variation
• Higher Operating Income
• Improved Process Efficiency
• Constant Measurement
• Defeat the Competition
• Breakthrough improvements
• Changing the Culture
• Better Working Environment
• More For Less
Goals of Continuous Improvement
Precision Printing Case Study
• Family run business with a turnover of £9million pa
• Stationary printers based in a 6 storey building in EC1 for nearly 60 years
• In May 2005 moved into a purpose built factory in East London and expand into the B2 market
• 85 Employees
• Won BPIF award for Print company of the year in 2007
• B2 house with a strong colour digital function
• Thought we were running very efficiently until we heard about Vision in Print
Why We Started Process Improvements
• After 2 years in the purpose built building we thought we needed some insight on workplace organisation & productivity
• We expanded faster than we could deal with, growth was over 60% in the 2 years
• In a very competitive marketplace
• Wanted to make sure our procedures were efficient and that Quality Assurance remained high
• A difficult balance to achieve
What We Did
• Premier Snapshot• With ViP we looked at our current processes and we
understood what we were good at and what we could improve that allowed us to target our efforts
• Office & Pre-Press Change Cycle• A priority was to focus on the smooth flow of work through
the process to give more accurate information and to reduce the possibility of mistakes, also to free more Account Managers time to give an even higher level of service
• Materials Waste Reduction• Aimed to better manage our materials to reduce our levels
of paper waste and therefore reduce our costs
Difficulties of Implementing
• Hardest task was allocating staff time and staff allocating their own time to do programmes
• They felt they were lumbering colleagues into covering for them
• Staff found it hard to see the bigger picture for the first couple of sessions
• The attitude of some of the established members of staff was a tad on the tricky side
• ViP dealt with this exceptionally well and somehow managed to change the perspective that they viewed the company in
• As long as you choose a team that is enthusiastic as well as opinionated then the programme will work
• From a management perspective the PrintLondon funding helped immensely in the initial decision making
• But the overall savings warranted the ViP outlay
Benefits
• We all felt the MIS system we currently use was key to progress and was currently holding us back
• This was looked at in great depth and questioned throughout the programme
• A decision to either upgrade or move to a competitor is imminent
• Information exchange has improved throughout the business especially in the front end
• 40 page emails no longer follow orders with the critical information on page 38
• Paper wastage also reduced as we were not allocating enough paper on longer runs causing jobs to come up short and reprints to be higher
• Staff morale is much higher as they now feel part of a team and not like they are being dictated to
Further Continuous Improvement Plans
• In the process of extending the factory by 15000 sq ft
• We will be carrying out a factory layout/workplace organisation programme involving all staff once machinery is finalised
• Will re-run some elements of Change Cycle once MIS change is complete
• Will look to further ongoing improvements as the business needs and demands change
How To Find Out More
• Cost Reduction Through Lean Workshop – 12th Feb London
– £195 per delegate (1/2 Payable by PrintLondon)
• Talk to me or 2 Colleagues Richard Gray and Mark Guyer
• Feel free to call or email me to arrange a visit your business
– 07841 213785