01 Lean Management Introduction 2012
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Transcript of 01 Lean Management Introduction 2012
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Lean Management
01 An Introduction
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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
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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!
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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 -
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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?
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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 -
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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
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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
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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?
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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?
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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?
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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
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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
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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?
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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?
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Keeping up with Growing ComplexitySteven SpearChasing the Rabbit
1955 Today
ProductPerformance
FunctionalityReliabilityEconomySafetyVariety
Few Functional Silos Many Silos of Great Depth
Knowledge& Expertise
Knowledge & Expertise
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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.
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Change can be frustrating
Time
Change
No KaizenNo Standard Work
Rad
ical
No KaizenNo Standard Work
Kaizen
Wasted Effort &Frustration
- - Masaaki Imai
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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
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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!
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Summary
Customers
Value
Quality
(Global) Competition
Learning
Change: improve continually
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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?
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Questions?