Save money & reduce waste! Find out about the power of Lean methodology and how it can be used to achieve enormous efficiencies in your organisation.

1. Welcome to our Lean Event!

2. What will we cover?
•
What is Lean?
•
How does Lean help an organisation?
•
How does Lean work with a management system?
•
Understand how Lean tools assist with process improvement
•
Addressing roadblocks to Lean and improvement
•
How does this fit with other improvement solutions
•
Q and A

3. What is Lean?
Lean is a Business Improvement approach.
Lean focuses on improving the value of a service by
reducing, or eliminating, waste.
As waste is eliminated, output improves,
production time and cost are reduced.
In summary, Lean is about identifying and
eliminating Waste.

4. Waste
Waste is any activity that utilises
resources without creating value

5. Categories of Waste
•
Over production
•
Inventory
•
Waiting
•
Motion
•
Transportation
•
Over processing
•
Defects
•
Not utilising workers talent
and knowledge
“Typically less than 5% of
activities are value adding.”

6. Are there any wastes in
your organisation’s
processes?

7. Discussion / Activity

8. Benefits of Implementing Lean
The benefits can be broken down into four main categories:
• Operational Improvement
• Administrative Improvements
• Strategic Improvements
• Improved culture in the organisation

9. The Lean Tool Box
•
Value Stream Maps
• Process Balancing
•
5S
•
Quick Changeover
•
Visualisation
•
Batch Size Reduction
•
Spaghetti charts
•
Level Loading
•
Fool Proofing
•
Work Cells
•
Point of Use Storage (POUS)
•
Lean Performance Measurement

10. Case study: Mining company Shift change
The company considered that efficiencies could be gained during
the shift changeover process
•
Team formed – 2 supervisors; 1 manager; 1 CI rep; miner; external
facilitator;
•
Time analysis conducted for finishing shift and starting shift;
•
Repetition and “lost” time identified;
•
Value stream maps and swimlane chart confirmed the wastes;
•
Changeover process redesigned with union support;
•
Annual saving of $3 million.

11. Value Stream Map
Type Testing: Current State Value Stream Map
Represents information flow.
Business
Development
Contractor
Client
Scheduling and
Resource Planning
Report
Develop
project
plan for
client
Receive and
process
application
Provision of
Type Test
Assessment
Service
Issue
Report to
client and
invoice
Lead time:
7 weeks
2 weeks
0.25 days
4 weeks
0.25 days
1 week
2 days
Total time:
Value add time:
% value add time:
0.25 days
7 weeks 2.75 days
2.75 days
7.30%
Value add
time:
2.75 days

12. Value Stream Map
Type Testing: Future State Value Stream Map
Represents information flow.
Business
Developmen
Contractor
Client
Scheduling
and
Report
Develop
project
plan for
client
Receive and
process
application
1 day
0.25 days
Provision of
Type Test
Assessment
Service
2 weeks
0.25 days
Issue
Report
to client
and
invoice
Lead time:
2 weeks 2
days
1 day
2 days
Total time:
Value add time:
% value add time:
0.25 days
2 weeks 2 days
2.75 days
22.90%
Value add
time:
2.75 days

13. Case study: Govt dept support application process
The application process took 12 weeks
•
Team formed – manager; team leader, operators; service support dep’t rep;
•
Value stream map; Swimlane chart and value-add analysis;
•
Identified multiple checks that did not add value and work flowing backwards
and forwards between departments;
•
Gained management and operations agreement to remove checks and waste
activities along with redesigning some process steps;
•
Pilot showed the time reduced to 3 weeks.

14. DEVELOPMENT
Swimlane Chart
Start
End
Maintained and
Upgraded Product
Technical
Architecture
Set Product
Strategy
Set Product
Requirements
Code
Application
Maintain
Application
ACCOUNTING
TECHNICAL SUPPORT
OPERATIONS
Fully Functioning Product
Develop Bill
of Materials
Application
Vision and
Direction
Components
Exist?
List of
Required
Components
Yes
Build
Product
Packaged
Product
Ship
Product
Problem
Report
Components
Receive
Components
Customer
Requirements
Obtain
Customer
Feedback
Components
Product
Information
Shipped
Product
Support
Product
Search for
Components
Customer
Customer
Problem
Customer
Requisition
Components
Order
Supplier
Invoice
Customer
Invoice
Customer
Invoice
Process
Payment
Payment
Customer
Report
Problems
Problem
Resolution

15. Value-add Analysis
Value Adding
activities that add value from the
customer’s perspective.
Value Enabling
activities are those that do not add
value as such, but are necessary or required.
Examples: steps needed to comply with regulatory
requirements; or to provide information to the
organisation.
Non-Value Adding
add any value.
activities are those that do not

16. Swimlane Chart
DEVELOPMENT
Showing: Handover analysis and
Value-add analysis
Start
End
Maintained and
Upgraded Product
Technical
Architecture
Set Product
Strategy
Set Product
Requirements
Code
Application
Maintain
Application
ACCOUNTING
TECHNICAL SUPPORT
OPERATIONS
Fully Functioning Product
Develop Bill
of Materials
Application
Vision and
Direction
Components
Exist?
List of
Required
Components
Yes
Build
Product
Packaged
Product
Ship
Product
Problem
Report
Components
Receive
Components
Customer
Requirements
Obtain
Customer
Feedback
Components
Product
Information
Shipped
Product
Support
Product
Search for
Components
Customer
Customer
Problem
Customer
Requisition
Components
Order
Supplier
Invoice
Customer
Invoice
Customer
Invoice
Process
Payment
Payment
Customer
Report
Problems
Problem
Resolution

17. 5S Workplace Organisation
Tool
Sort
Set in order
Shine
Standardise
Sustain
Meaning
Housekeeping. The only things that
should be in the workplace are files,
materials and tools being used.
Workplace organisation. A place for
everything and everything in its place.
Clean-up. Make the place shine.
Best Practice. Make the above 3S’s
become a way of life.
Discipline. 5S becomes part of the way
we do things around here.

20. Error Proofing
Is a technique for avoiding and eliminating mistakes.

21. Example: 5S and Error Proofing
Messy, time lost finding
parts and wrong parts
often picked.
Cardboard template is
“bill of material”. Wrong
parts cannot be picked.

23. Discussion
• Can you think of an issue in
your operation that can be an
opportunity for Fool Proofing?

24. ISO 9001 Lean
ISO 9001 Lean - is an approach that
combines the benefits of a
structured management system with
the powerful but simple tools of
Lean.

25. ISO 9001 Lean – the concept Model
Continual Improvement of the
Quality Management System
Management
responsibility
Customer &
Stakeholder
Measurement,
analysis &
improvement
Resource
management
Requirements
Customer &
Stakeholder
Satisfaction
Product
realisation
Goods &
Services

26. ISO 9001 Lean – the concept Model
Continual Improvement of the
Quality Management System
Objectives established
Management
responsibility
Customer &
Stakeholder
Measurement,
analysis &
improvement
Resource
management
Requirements
Customer &
Stakeholder
Satisfaction
Product
realisation
Goods &
Services

27. ISO 9001 Lean – the concept Model
Continual Improvement of the
Quality Management System
Management
responsibility
Performance understood
& waste reduced
Customer &
Stakeholder
Measurement,
analysis &
improvement
Resource
management
Requirements
Customer &
Stakeholder
Satisfaction
Product
realisation
Goods &
Services

28. ISO 9001 Lean – the concept Model
Continual Improvement of the
Quality Management System
Management
responsibility
Customer &
Stakeholder
Measurement,
analysis &
improvement
Resource
management
Requirements
Customer &
Stakeholder
Satisfaction
Product
realisation
Goods &
Services
Objectives achieved

29. ISO 9001 Lean – the concept Model
Continual Improvement of the
Quality Management System
Objectives established
Management
responsibility
Performance understood
& waste reduced
Customer &
Stakeholder
Measurement,
analysis &
improvement
Resource
management
Requirements
Customer &
Stakeholder
Satisfaction
Product
realisation
Goods &
Services
Objectives achieved

30. Lean Improving Business Performance
Lean provides an extremely effective tool for:
 Focusing key members on the elimination
of waste
 Identifying specific alternatives that will
improve processing times or quality
 Provides a new lens for reviewing
customer requirements
 Creating solutions that ‘bridge the gap’
between process and management.

31. Discussion: What may be some Barriers
to successful implementation of Lean?
Task: Please provide a response to the above question.
Consider:
• Skills
• Culture
• Areas of the organisation, Structure, Etc.

32. Our Approach for LEAN
• Lean Implementation 5 day event – consecutive days or split over several
weeks
 Training of CI Facilitators
 Action Learning approach
 Address an improvement opportunity and deliver outcomes through the training
Event
• Lean Blitzes


2 day blitzes
Basic Lean skills applied to an operational problem
•
Applying Lean Concepts
•
ISO 9001 Lean
•
Lean Coaching
• 2 day Introduction to Lean Concepts
• Working towards a Lean Organisation
• Application of lean to improve your management system

33. An organisational journey
Sustainable
Performance
Focus on
value
Align the
System
Fix the
basics

34. SAI Global Client Solutions and Innovation
Client
Solutions
Services
What
How
Our point
of
difference
• Establishing sustainable performance
• Organisational wide engagement in
Performance Improvement
• Tailored Systems for Business Performance
Improvement
• Facilitating, sustainable capability development
• Structured program for organisational learning
• Delivered by credible advisors with extensive
experience in Business Improvement
• Sole Australian Provider of an internationally
recognised Leadership Framework
• Demonstrated success in Organisational
Change Management

35. Organisational Improvement
Aspirational
Quality
Values
Business
Performance
Quality
Management
Systems
ISO 9001-2008
Compliance
Quality
Rules
Low
High
Organisational Capability

36. Achieving Sustainable Performance
Review
Improvements
Understand
the
System
Systems
Thinking
Implement and
Manage the
Solution
Approval to Implement
and Accountability
Assignment
Understand Management
System and Governance
Criteria
Apply
Improvement
Techniques
Common Understanding
of the System and
Priorities Agreed
i.e. System Outcomes
Clarify Strengths
and Opportunities
for Improvement
Allocation of
Resources for Working
ON the System
OFI’s from
Other
Sources

37. Our Approach for Organisational Assessment
• Performance Snapshot
An on line survey against the categories and items of an Internationally
recognised Leadership Framework.
•
•
Organisational Performance Review
Facilitated workshops against the categories and items of an Internationally
recognised Leadership Framework.
Organisational Performance Evaluation
Experienced business assessors review the organisation against categories
and items of an Internationally recognised Leadership Framework.
•
Structured Learning Self Assessment
Facilitated Self Assessment methodology used to transfer the knowledge of an
Internationally recognised Leadership Framework and the skill of conducting
an organisational self-assessment

38. Benefits to Commercial organisations
 20% productivity increase in one year
 247% sales increase over two years
 150% increase in tenders won
 500% increase in share price over six years
 25% sick leave reduction in one year
 66% lost time injury reduction
 80% product defect reduction

39. Other Improvement Methodologies
Six Sigma
Is a statistical improvement method applied to processes and management systems
that reduces variation, removes process defects and improves efficiency.
Cultural Change
Is an business improvement methodology that engages staff through a structured
approach of PDSA while addressing behavioral changes to assist with organisational
improvement.
Systems Thinking
An improvement approach that enables a manager to clarify with staff the current state,
establish measures of performance and enables line of sight for the participants to their
contribution to the overall KPI’s.
Organisational Transformation
A customised approach to business improvement that provides
a customer access to SAI’s wide range of individual and
management services to address the issues that are hindering
the Organisation to succeed.

40. Benefits for Organisations
• This has brought the four facilities together in sharing data and common
systems.
• Greater focus on the system and not on the people when things go wrong.
• Feel we now have control of the business again.
Benefits for Staff
• Staff morale has increased and they are in more control.
• Staff are beginning to understand their role in the context of the wider
organization
• The staff have more confidence in using feedback systems.
• Communication and awareness has increased by more than 90%

41. Leading and Managing the Change
•
Integrate the change into the organisation
•
Adopt and embrace the change
•
Understand the impact
on the System
•
Assess how the system
can be further improved
•
Review the progress of
Continuous Improvement
•
Train Management and Staff

42. Our Approach for Leading Change
 Facilitating sustainable capability development
 Structured program for organisational learning
 Organisational wide engagement in Excellence and
Continuous Improvement
 Establishing sustainable performance
 Leadership and Staff Coaching / Mentoring

43. Benefits to Leaders
 Provided me with solutions I needed to overcome issues being imposed upon me.
 Has allowed me to devolve responsibility down the line better.
 I look at requests for change through eyes of data and not just whims. Personally more
open to ideas and suggestions.
 I have stepped back from ‘leading’ to allow others to try to make decisions.
Benefits to Staff
 Improved staff satisfaction.
 Personal improvement plans now work.
 Staff members who previously were reluctant to be involved now line up to be part of it.
 Communication has increased and improved

44. Our Approach for LEAN
• Lean Implementation 5 day event – consecutive days or split over several
weeks
 Training of CI Facilitators
 Action Learning approach
 Address an improvement opportunity and deliver outcomes through the training
Event
• Lean Blitzes


2 day blitzes
Basic Lean skills applied to an operational problem
•
Applying Lean Concepts
•
ISO 9001 Lean
•
Lean Coaching
• 2 day Introduction to Lean Concepts
• Working towards a Lean Organisation
• Application of lean to improve your management system