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Session 2
April 2013
Improving Operational Performance
To introduce lean organisation techniques in
business.
Session Aims
By the end of this session you will be able to:
Describe the concept of a lean environment. Implement a productivity needs analysis.
Session
Objectives
Lean is a term used to express a range of business
improvement techniques. It originated from the
need to constantly improve quality while reducing
the costs of the production performance in the
manufacturing sector.
The concepts of this approach are now used as the
basis for improvement across every sector,
improving business performance by eliminating
waste and increasing efficiency.
What is lean?
There are lots of examples of lean thinking that date
as far back as the 18th century, but the first person
to really integrate an entire production process was
Henry Ford.
What
The problem with Fords system was that there was
no variety. The Model T was limited to one colour
and to one specification.
When the world wanted variety, Ford seemed to
loose his way.
“Any customer can have any car, any colour they
want, as long as it’s black”. – Henry Ford 1912.
Before long people wanted choice, a choice of
models, a choice of specifications and a choice of
colour.
Carmakers responded by filling their plants with
larger and larger machines than ran faster and
faster – but the problem was that this increased
throughput times and inventory.
Then the world was interrupted by the outbreak of
World War 2.
At the end of World War 2 America was the leading
producer in the world.
However, Japan was in need of economic re-birth
and viewed quality as essential to their economy.
W. Edwards Deming and Joseph Juran travelled to
Japan and helped the country become the industrial
power it is today. Their teaching lead to the birth of
the Toyota Production Sytem.
Lean production is a state where waste is reduced or
eliminated totally from a process, where almost
every step adds value to the product for the
customer, where products flow continuously without
being held up or creating bottlenecks, where every
part made is made to the required standard first
time every time.
Lean applies in every business and every process. It
is not a cost reduction program but a way of
thinking and acting for an entire organisation.
A lean organisation understands customer value and
focuses its key processes to continuously increase it.
It will look at every aspect of the business and look
to improve the flow of information and services in
order to achieve 100% customer satisfaction.
There are many benefits to implementing a lean
approach in any organisation, such as;Improved productivityReduced wasteImproved lead timeImproved stock turnsBeing able to respond to change efficiently
Benefits of lean
The starting point of any lean organisational journey
should be implementing a productivity needs
analysis.
This is an essential tool in measuring where the
organisation is compared to where the organisation
wants to be.
Most organisations follow a set of measures within
their business known as key performance indicators.
Productivity needs analysis
The process of carrying out a productivity needs
analysis involves gathering all the necessary
information that you will need.
This could include information from customers about
expected order levels, quality concerns, historical
data on machine reliability, data around staff skills,
material costs etc.
By the end of this session you will be able to:
Describe the concept of a lean environment. Implement a productivity needs analysis.
Session
Objectives
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