Maximising customer value through flow

Transcription

1 Maximising customer value through flow October 2008 Facilitated by Hugh O Donnell High Performance Consortium hugh.odonnell@hpc.org.au HPCI 2008 High Performance Consortium International

2 What will be covered? Excellence Principles of Lean thinking A value stream The 7 wastes Exercise mining a stope Plenary debrief HPCI 2008 High Performance Consortium International 2

3 Business Excellence Purpose We solve our customers problems so both our organisations can thrive Our value streams are a series of tasks done the right way at the right time in the right sequence Process People Our people are engaged in creating the perfect process to solve the customer problem We are trying to create the perfect process and every step needs to be valuable, capable, available, adequate and flexible (Jim Womack, author Lean Thinking) HPCI 2007 High Performance Consortium International 3

4 5 principles of Lean Thinking Precisely specify value by specific product Identify the value stream for each product Make value flow without interruption Let the customer pull value from the producer Pursue perfection Source Lean Thinking, Womack & Jones HPCI 2008 High Performance Consortium International 4

5 Mine How Long does it Take to Make 8 Cans of Cola? Incoming Storage 0 Process Time 20 min Finished Storage 2 weeks Cumulative Days 14 Reduction Mill 2 weeks 30 min 2 weeks 42 Smelter 3 months 2 hrs 2 weeks 146 Hot Rolling Mill 2 weeks 1 min 4 weeks 188 Cold Rolling Mill 2 weeks <1 min 4 weeks 230 Can Maker 2 weeks 1 min 4 weeks 272 Bottler 4 days 1 min 5 weeks 311 Tesco RDC days 314 Tesco Store days 316 Consumer s Home 3 days 5 min months 3 hours 6 months 319 Source: Womack and Jones, Lean Thinking Value Add =.03% HPCI 2008 High Performance Consortium International 5

6 Exercise 1 Come fly with me HPCI 2007 High Performance Consortium International 6

7 Product Lead-time Value Added Time is only a very small percentage of the Leadtime. Traditional Cost Savings focused on only Value Added Items. LEAN THINKING FOCUSES ON NON-VALUE ADDING ITEMS HPCI 2007 High Performance Consortium International 7

8 Is our customer getting the best value for money? Customer Value Limited Value a huge Concern! Motion Overproduction Transport Inventory Waiting Over processing Defects Lots of Waste a huge opportunity HPCI 2007 High Performance Consortium International 8

9 The 7 Wastes TIMWOOD Transportation Inventory Motion Waiting Overproduction Over processing Defects HPCI 2007 High Performance Consortium International 9

10 The 7 wastes defined Waste Transportation Inventory Motion Waiting Overproduction Over processing Defects Explanation Moving materials more than is necessary Excess stock in raw materials, work in process & finished goods Unnecessary motion to retrieve or pick up material, parts etc Waiting for material or instructions Producing more than the process immediately downstream requires Doing more to the product than is necessary Producing defective products or services HPCI 2008 High Performance Consortium International 10

11 A healthy view on waste Waste is not a problem; it is a symptom Waste indicates problems in the system We must relentlessly highlight and address the causes of waste HPCI 2008 High Performance Consortium International 11

12 Exercise 2 Mining a stope 4 Teams with facilitators to assist Resources Value stream map Post-it notes Pens Paper & easel How could we apply Lean Thinking to this process (7 wastes) HPCI 2008 High Performance Consortium International 12

13 Exercise 2 Mining a stope What are some of the wastes in this process? What are the root causes of these wastes? If you had a magic wand what would you do to eliminate these wastes? How would you eliminate waste to improve flow? HPCI 2008 High Performance Consortium International 13

14 Plenary debrief by each team 4 minutes each What were the 3 takeaways from this exercise? HPCI 2008 High Performance Consortium International 14

15 Maximising customer value through flow October 2008 Facilitated by Hugh O Donnell High Performance Consortium hugh.odonnell@hpc.org.au

16 Goddamit, I don t have time for this sales man. I have a war on my hands Making Time to get a new perspective HPCI 2008 High Performance Consortium International 16

17 Questions? HPCI 2007 High Performance Consortium International 17