Lean Implementation for SMEs in all IndustriesJimmy Moore Industry
Specialist
SRC Business Support & Innovation
Manufacturing, Supply Chain and Customer Service
SMEs and Multinationals
This morning’s session
Value Manufacturing/Office
Customer Facing
WHERE TO START
Outcomes Clarity on what Lean is and what it can deliver
Ability to decide if it is or is not suitable for your
business
What is Lean Thinking?
• Business drivers • Need to compete
with US on cost • Focus on growth • Need for quick
conversion of profit to cash
Genesis of Lean – the Toyota Production System
• Maximise value defined as highest quality, lowest cost, shortest
lead time
• Minimise waste by • Bringing stability to the
production floor • Just in time production • Autonomation,
automation
with a human touch
Level loaded production
everything in its place
Line side stock
Single piece flow
Fix real time
highest quality, lowest cost, shortest lead time
Toyota Production System - outcomes
Each worker knows who provides what to him, and
when
All work is highly specified in its content, sequence,
timing,
and outcome
specified path
scientific method
Decoding the DNA of the Toyota Production System by Steven Spear
and H. Kent Bowen
Toyota Production System – Global reach
How is Lean implemented?
Focus on value
Enhance product flow
Strive to deliver perfection - Empower the people
Define what is value for your customer
People who buy drills actually want smooth, well formed holes
Define what is value for your customer • Take emotion out of
the
analysis • Try to involve your customer • Use consensus
techniques
Remove waste through Value Mapping • Map your key
processes (current state)
• Design a future state
%
Quality & Delivery ppm
%
DELTA STEEL
Future State 2 Flow and Pull between Plants
Time reduced from 44
Dist. Centre
3d 55m
30 8
%
Steel
%
Quality & Delivery
DELTA
STEEL
GAMMA
STAMPING
Assembly
Wipers
Stamping
Steel
%
Dist. Centre
%
possible batches
• Shortens leadtime
• Removes WIP
customer demand
• Reduces inventory
• Shortens leadtime
• Establish continuous improvement
• Work through teams
OPTIMISE VALUE
Lean in Administration
Lean in Administration
Apply the same approach to admin processes Relevant to SOP,
Accounts, Purchasing Focus on the information flow and apply the
same approach
Lean in Administration
Order Production Quality check Delivery Completion
Interaction points, manufacturing
Order Production Quality check Delivery Completion
Interaction points, manufacturing
Order Production Quality check Delivery Completion
Order Delivery Completion
Interaction points, manufacturing
Interaction points, service
Opportunity to work problems remotely
The customer has visibility of process execution from start to
finish
Lean in Service Obstacles to Lean implementation in Service
organisations
Obstacle
High variability between users, and so efficiency levels
Processes are electronic and so less visible
Cyclicality of demand very high
Lean in Service Obstacles to Lean implementation in Service
organisations
Obstacle Lean Tool
Value Mapping
Standard Work
Cyclicality of demand very high Pull and Flow
Toyota Production System – application to Customer Facing
Industries
highest quality, lowest cost, shortest lead time
Each worker knows who provides what to him, and
when
All work is highly specified in its content, sequence,
timing,
and outcome
specified path
through the scientific method
Decoding the DNA of the Toyota Production System by Steven Spear
and H. Kent Bowen
Lean in Service – an example
• SME - Service provider in the online apparel space • Feedback
from the sales team that customers were unhappy
with customer service responsiveness • Targets already in place, 48
hours average response time and
90% of responses within 48 hours, achieved in 24 of the previous 26
weeks
• Data gathered manually • Agreement to value map the Customer
Service process
Lean in Service – an example
VALUE Current State
Hitting targets > 95% of the time
Customer Expectation
Enquiries should be answered on the call or same day for
emails
Hitting customer expectation <25% of the time
Lean in Service – an example VALUE MAPPING Current State Future
State
Wide variation in process from employee to employee
Different levels of ERP system expertise
Workload imbalance due to Account focus
No system data for metrics
No central resource to store enquiries or manage the queue
No feedback to Warehouse on pick quality
Lean in Service – an example VALUE MAPPING Current State Future
State
Wide variation in process from employee to employee
Standardised process for enquiries
Different levels of ERP system expertise Define best practice for
each enquiry type and retrain
Workload imbalance due to Account focus Cross training for main
accounts, set up a queue based on FIFO
No system data for metrics Set up daily auto data pull into KPI
reports
No central resource to store enquiries or manage the queue
Load enquiries on to program management software with
workflow
No feedback to Warehouse on pick quality Real time feed back
(database) and weekly review with the warehouse team
Lean in Service – an example VALUE MAPPING Current State Future
State
Wide variation in process from employee to employee
Standardised process for enquiries
Different levels of ERP system expertise Define best practice for
each enquiry type and retrain
Workload imbalance due to Account focus Cross training for main
accounts, set up a queue based on FIFO
No system data for metrics Set up daily auto data pull into KPI
reports
No central resource to store enquiries or manage the queue
Load enquiries on to program management software with
workflow
No feedback to Warehouse on pick quality Real time feed back
(database) and weekly review with the warehouse
teamPERFECTION
PULL
FLOW
Delivery Improved from 25% same day resolution to 95%
Quality Service errors dropped by 60%
Cost Freed up 1 Customer Service colleague to take on a new key
account
Hospitality
Hospitality
OBSTACLES
Very difficult to get participation, short term staff, high
turnover
Cost of off-the-job training
Very difficult to get participation, short term staff, high
turnover
Cost of off-the-job training
Lean Adoption Phases
Go and look at your processes to see value
Identify why you need to do his, what is the driver
Get in touch
Presentation Notes
Thank you Cathal & Kieran for your presentation. I just want to
jump in quickly to talk about the support that SRC have available
for businesses. The Skills Focus Programme is a training
programme. It is funded by the Department of the Economy to provide
non-mandatory training and has recently been extended from 75%
Funded to Fully Funded in response to Covid-19. The
InnovateUs Programme offer 30-60 hours of mentoring or upskilling
on a one to one basis through virtual, on site or at college
premises for an innovative product, process or service.
Innovation vouchers are a way for businesses to avail or R&D
opportunities and resources for innovative solutions for business
issues. Although it is important to realise there is a VAT element
to this programme and it is funded by Invest NI. Enterprise Ireland
also offer a similar programme. The Fusion programme offers
businesses the opportunity to get a high caliber graduate into your
business partially funded through Intertrade Ireland with mentor
support provided by the college. The Knowledge Transfer
Programme (or KTP) is a similar scheme and it is funded through
Innovate UK HLA So as you can see the college is able
to provide a wide variety of support programmes for business so
Feel free to contact us at
[email protected] and we can talk
through your specific requirements. We are holding further webinars
in fact our next is titled …First Steps to Creating your own
Podcast…and will be held next Friday 7th Aug At 9.30am. You can
check our social media channels for a full list of upcoming events.
And finally we will be sending out an evaluation for this
webinar with a link to the recording this afternoon and we would be
very grateful if you could spare 5 minutes to complete the short
survey. Thank you very much for your time today and as Kieran said
earlier if you would like to join him & Cathal in Mozilla hub
you will see the link in the Q&A section
Lean Implementation for SMEs in all Industries
Jimmy Moore
Toyota Production System - components
Toyota Production System - outcomes
How is Lean implemented?
Define what is value for your customer
Define what is value for your customer
Remove waste through Value Mapping
Flow – single piece or smaller batch
Pull
In simpler terms….
In simpler terms….
In simpler terms….
Lean in Administration
Lean in Administration
Lean in Administration
Lean in Service
Lean in Service
Lean in Service – an example
Lean in Service – an example
Lean in Service – an example
Lean in Service – an example
Lean in Service – an example
Lean in Service – an example
Hospitality
Hospitality
Hospitality
Hospitality
