LEAN FACILITIES MANAGEMENT

RAO SRINIVASACHIEF EXECUTIVEKOWNI TECHNOLOGIES INC., 59, WILLIAM LEWIS ST, KITCHENER, ONT, CANADA N2A4L6

Meet Our Presenter(s):Rao Srinivasa, MRICSCo-Founder & CEO

Kowni Technologies, Inc.(Technology solutions & Consulting for Facility Management Industry)rao.srinivasa@kowni.com www.kowni.comKitchener (CAN) - Bangalore (IND)

Career stretch from Auto mechanic to building Ford Motor Company’s Greenfield Car Plant in India & making Ford’s debut car IKON (C195) car as JD Power Quality car for 3 years in a row as Six sigma Director.

Creating best practice library for JLL-Asia Pacific Countries and Facilities Management Top 10 tools, advising Microsoft & Cisco on the Campus projects, running APAC Engg & Operations and creating processes for Critical Environment Management

Heading Critical Systems & Engineering, Facility Management as a Vice President at Goldman Sachs in India and building Datacenters & Facilities to augment Goldman’s growth in India from 1000 to 5000 employees

Rao is also a qualified graduate mechanical engineer and did his PG Diploma from India’s prestigious IIM-Kozhikode and clocks 22 years of experience

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Review Session Learning Objectives

1. Participants will understand the “Lean Management” concepts & techniques

2. How to use the concepts & techniques at their respective facilities

3. How to improve the client satisfaction, with the support from Lean

4. Empower & create leaders at all levels of facility operations

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Introduction• What is Lean ?• Why Lean Facilities Management ? • Traditional FM vs. Lean FM• Benefits of Lean FM • Basic Tools for Lean Facilities Management• Case Study

What is Lean

• Lean was coined by Jim Womack in 1980, describing Toyota Business

• Lean means creating more with lesser resources• Maximizing the value for the Customers • Gaining the “Wow!” factor / Surprise delights• Lean is not a tactical / cost reduction program • A way of organizational thinking & behavioral change• Lean is not specific to “manufacturing” alone… it works

well with service industries

Why Lean Facilities Management

• Increased Organizational effectiveness

• Improved Productivity• Increased Revenues• Increased Asset life cycles• Increased MTBF• Improved Customer Satisfaction• Improved Energy Efficiency

� Reduced / Mitigated Risk

� Reduced Waste

� Reduced Break-downs

� Reduced Complaints

� Reduced Attrition Levels

� Reduced Expenses

Traditional FM vs. Lean FM

• Policies based on Global practices• Manpower deployment based on

traditional practices• Budgets on Global baselines• Issue resolution through vendor

structured RCA• Score cards / KPIs on legacy / subjective

knowledge• Flavor remains for few months / years

and fades away

� Policies based on Client requirements

� Deployment based on delivery methodologies

� Budgets based on sustenance requirements

� Issue resolution through Lean+ 6 Six Sigma methodologies

� Objective data to support deliverables

� Long term sustainability of programs & auto mechanism to put system back in process

Culture

Lean Thinking by Womack

People

ProcessPurpose

Lean Thinking by Womack• Purpose: What customer problems will the enterprise

solve to achieve its own purpose of prospering?• Process: How will the organization assess each major

value stream to make sure each step is valuable, capable, available, adequate, flexible, and that all the steps are linked by flow, pull, and leveling?

• People: How can the organization insure that every important process has someone responsible for continually evaluating that value stream in terms of business purpose and lean process? How can everyone touching the value stream be actively engaged in operating it correctly and continually improving it?

Culture is the new parameter, which binds all the other 3 elements

Understanding Value Streams

• Kano’s model– Challenge traditional Customer Satisfaction

Models that More is better, i.e. the more you perform on each service attribute the more satisfied the customers will be.• Dissatisfier – Must be’s – Cost of Entry• Satisfier – More is better – Competitive • Delighter – Latent Need – Differentiator

Basic Tools of Lean - Kano Model

DelightersAttractive

Excited Quality

DissatisfierMust Be

Expected Quality

SatisfierOne DimensionalDesired Quality

Dissatisfaction

Satisfaction

Service Performance

Service Performance

Basic Tools of Lean

• Process Mapping• Cause & Effect• Failure Modes & Effects Analysis• TPM (Total Productive Maintenance)

– Continuous Improvement – 5S

Basic Tools – Process Map

– Graphical representation of the flow of a process

– Identifies the Value add / Non Value added process steps

– An operation which transforms the service in a way that is meaningful to the customer.

– Identifies the key process output variable or any item or feature on a service which is deemed to be critical by the “customer”.

– Identifies the key process input variable or any item which has an impact on Service Q-C-D’s

– Identifies 80% of the irregularities in the system, just by walking through the process

Basic Tools – Process Map1. Define scope of Facilities Management2. Document all good service deliverables (Client priorities,

Requirements & Best Practices3. Indicate each process step, VA or NVA4. List both internal/external outputs at each process step5. List both internal/external inputs at each process step6. Classification of inputs in to “Controllable” (SOP) &

“Noise”7. Identify data collection points across various processes

Basic Tools – Process Map

Basic Tools – Cause & EffectCause & Effects Tool is a visual tool to identify, explore and graphically display, in increasing detail, all of the suspected possible causes related to a problem or condition to discover its root causes. It consists of 5M & E elements,

– Machinery / Equipment– Materials– Methods (Procedures)– Measurement – Man Power– Environment

Basic Tools – Cause & Effect Machinery / Equipment Materials

Man Power Methods

Unreliable Transport Vehicles

Low Pay

Heavy Repairs

Low Budgets

Production Limitations

Space constraints

Lack of Training

Ingredients shortage

Inaccurate inventories / Orders

Storage spaceshortage

Materials expiry

In-discipline / irregularattendance

Lack of TrainingLow Pays

High AttritionDrivers not knowingRoutes

Provision of Wrong Info

Improper Order Handling

Lack of Experience

Poor Dispatches

Dynamic Changes ofTown Topography

Lack of Experience

Late Delivery of Service O

rders

Measurement

Basic Tools–Cause & Effects Matrix

Casuse & Effects Matrix for Lemonade

Rating Importance to Customer 9 9 5 7 9 7 3 7

#Key Process Input Variables (Inputs into Lemonade preparation) Taste

Freshness

Quantity

Temparature

Delivery

Cleanliness

Delivery Glass Cost Total % Ranking

1 Type of Lemons 9 5 1 1 1 7 1 9 34 10.8%

2 Quantity of Lemons 1 3 9 1 7 3 7 9 40 12.7%

3 Freshness of Lemons 9 9 7 5 1 3 5 9 48 15.2%

4 Delivery from market 5 9 3 3 9 7 3 7 46 14.6%

5 Sugar / Cream Quantity 9 1 1 1 1 1 1 7 22 7.0%

6 Salt Quantity 9 1 1 1 1 1 1 7 22 7.0%

7 Knowledge of preparation 7 1 3 7 7 9 1 5 40 12.7%

8 Trained staff 7 1 3 7 7 9 1 9 44 13.9%

9 Availability of Ice cubes 1 1 3 9 1 1 1 3 20 6.3%

316

Total 57 31 31 35 35 41 21 65

Basic Tools - FMEA

• A structured approach to:– identify the ways in which an identified process can fail – estimate the risk associated with specific causes – prioritize the actions that should be taken to reduce the risk – evaluate the current FM control plan

• Identify ways the FM process can fail and eliminate or reduce the risk of failure in order to protect the client’s interests

• In short… FM-FMEA will:– capture the entire critical processes– identify ways the process fails – and facilitates the documentation of a plan to prevent those

failures

Basic Tools - FMEA

Process Step/Input Potential Failure Mode Potential Failure Effects

SEV

Potential CausesOCC

Current ControlsDET

RPN

Actions Recommended

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

What can go wrong with the Process

step?

What is the Effect

on the Outputs?

What are the

Causes?

How Bad?

How Often?

How can this be found?

How well?

What can be done?

Basic Tools – FMEA RatingRating Severity of Effect Likelihood of Occurrence Ability to Detect

10 Hazardous without warningVery high:

Can not detect

9 Hazardous with warningFailure is almost inevitable

Very remote chance of detection

8 Loss of primary functionHigh:

Remote chance of detection

7Reduced primary function

performanceRepeated failures

Very low chance of detection

6 Loss of secondary functionModerate:

Low chance of detection

5Reduced secondary function

performanceOccasional failures

Moderate chance of detection

4Minor defect noticed by most

customersModerately high chance of

detection

3Minor defect noticed by some

customers Low:High chance of detection

2Minor defect noticed by

discriminating customersRelatively few failures

Very high chance of detection

1 No effect Remote: Failure is unlikely Almost certain detection

Basic Tools of Lean – TPM(8 Pillars)

Why the Pillars?

• Zero Service Defects• Zero Equipment Unplanned Failures and • Zero AccidentsObjectives

• Efficient Equipment Utilization• Efficient Worker Utilization• Efficient Material & Energy Utilization

Basic Tools of Lean – TPM(8 Pillars)• Continuous Improvement • Planed Maintenance• Initial Control (Set up to establish the FM setup)• Education & Training • Autonomous Maintenance• Quality Maintenance• Office TPM – To make an efficient working office that

eliminate losses– Error Proofing – Visual Factory

• Safety, Hygiene & Environment

Lean Thinking - Purpose

• Avoid Waste – Avoidance at Source• Enhance Productivity – Increased Response Times• Enhance Customer Satisfaction – Improved Quality• Increased Profits / Revenues – Reduced Costs• Motivated Staff – Lesser Attrition Levels• Long Sustenance of Facility contracts – Increased

Relationships• Reduced Operational Risks / Threats – No Surprises!!!

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