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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC
Lean Process ManagementReduce Costs & Process Cycle Time
Phil CentonzeFloridaMakes
February 2018
Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 2
Objectives
Understand… …The negative effects of traditionally-
organized processes on company performance …How to recognize opportunities for process
improvement …How to apply and implement Lean
concepts & tools
Exercise
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 3
Three Principles of Lean
Frequently forgotten…often resulting in failure of lean initiatives
Lean is about people, not techniques
Lean is a mind-set, not a toolset
Lean is a journey, not a destination
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 4
Production vs. Transaction
Customer Order
Order Processing
Schedule Production
Manufacture & Assembly
Ship to Customer
Customer Inquiry or Request
SME Request Processing & Interaction
Service to Customer
Production Process
Transactional or Service Process
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 5
Focus of Lean: To Increase Flow
Financial Returns
Cash Flow
Capacity
Operating Costs
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©2018 POS-IMPACT LLC954.684.2642
Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 6
What is Waste?
Waste is anything more than minimum of equipment, materials & parts, space, & time needed to add value to a service or product Waste is Non-Value-Added - Not
something our customer is willing to pay for Waste is a symptom of process problems
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 7
Lean Red Flags:How to recognize Opportunities
High number of defectsLow first pass yieldMany Inspections requiredRework, Cost creepLow product qualityExcessive travel distanceLarge batch processingLack of understanding of customer requirementsLong Lead-timesPoor customer satisfaction
Often Discovered during Value Stream Mapping
©2018 POS-IMPACT LLC954.684.2642
Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 8
Eight Non-Value Added Wastes“Cash in the Trash”
• Non-value-added processing
• Excess transport
• Defects & rework
• Overproduction
• Excess queues
• Waiting time
• Unengaged minds
• Excess motionby people
© 2009 POS-IMPACT LLC & O-CHART Management Consultants, Inc.
Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 9
Waste Impact on Process Capacity
Capacity is consumed by waste Eliminating waste
releases capacity
Productive Use of Resources: Value-
Added
Released Capacity
Productive Use of
Resources: Value-Added
Non-Productive Use of Resources: Non- Value-Added
© 2012 POS-IMPACT LLC
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
© 2018 POS-IMPACT LLC 10
Continuous Improvement Pyramid
Standardization
ProcessLayout
Dynamic Scheduling
Process FlowPull
Quick ChangeoverPoint of Use
One Unit FlowCollaboration
Quality at the Source
Visual Management
Workplace Organization
Continuous Improvement
Workforce Engagement
Six Sigma Tools
Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 11
Workplace Organization (5S)
The 3S:Sort – what is neededStraighten – what must be keptShine – what remains
To maintain the 3S:Standardize – stick to the rulesSpread – sustain the routine
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 12
CommunicationOne-way
Two-way
•Engaged two-way
Teamwork & Improvement
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 13
Use of visual signals to: Simplify & speed up the communication of information to office workers & managersHelp with speedier & more accurate decision-making
Visual Management
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 14
Process Layout & Flow
Layout is one of several critical factors to
of information & material throughout the process
improving FLOW
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 15
Large batches are more efficient
True or False* * * * * * * * * * * *
Batch Handling
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 16
Review Quality at the Source
Inspect at each step before passing to next
Inspect before adding value
When inspecting, be prepared with: The right documentation & resources The right training and support
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 17
Point of Use (POU)
Making available & storing materials, equipment & tools, & instructions where & when they are needed
Replenishment through visual management
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 18
Pull System Flow DiagramFlow Information
Cus
tom
er
Inqu
iry/
Inpu
t
Buffer StepA
StepA
StepB
StepB
StepC
StepC
Kanban or FIFO Queue
Content Information
Out
put/
Res
pons
e
to C
usto
mer
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
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© 2018 POS-IMPACT LLC 19
Continuous Improvement Pyramid
Standardization
ProcessLayout
Dynamic Scheduling
Process FlowPull
Quick ChangeoverPoint of Use
One Unit FlowCollaboration
Quality at the Source
Visual Management
Workplace Organization
Continuous Improvement
Workforce Engagement
Six Sigma Tools
Exercise
Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 20
Lean Deployment Process
• Team-Based Lean Fundamentals Training
• Assessment - Value Stream Mapping
• Rapid Improvement Event – Kaizen
Small Steps…Big Changes
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 21
Key Success Factors
Unyielding Leadership commitment & support Observing outside successes & failures Ability to question everything Experimentation Involvement at all levels Information sharing
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 22
Gov’t Permitting Agency
Initial: 75 work days overall plus time for customer to resubmit responses to questions; 31 days value-added
Instituted “pre-submittal conference” with customer & all applicable depts; resulted in no resubmittals; was typically 2 per application; now eliminating 14 work days per resubmittal plus customer time
Standardized procedures, New layout of the office Eliminated several days waiting by ordering
archived property files earlier in the process
Example:
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Lean Process Management
©2018 POS-IMPACT LLC954.684.2642
© 2018 POS-IMPACT LLC 23
Questions?...
Comments?
Thanks for your Participation & Involvement
Phil Centonze954.684.2642
