3. - William Hazlitt (English writer, 1778-1830)
“Prosperity is a great teacher;
adversity a greater.”
4. What is Core Value
Value is always defined from the customer’s perspective
Value-Adding Activities
Transform products or information into products and services the
customer wants
Non-Value-Adding Activities/Waste
Consume resources, but don’t directly contribute value to the
customer
Speed is achieved by identifying and eliminating waste… in processes,
innovation and decision making
8. Leading LEAN Improvements
1. To creates unwavering Passion
2. To create excitement for a Vision
3. To drives cultural transformation across the enterprise
4. resulting in Sustained Competitive Advantage
5. To increase Stakeholder Value.
9. Building Blocks to Engagement
1. Create a sense of urgency
2. Change the focus
3. Develop leaders
4. Communicate openly and often
5. Focus on your customers
10. Building Blocks to Engagement
6. Encourage and sustain innovation
7. Align through shared accountability
8. Allocate resources to ensure success
9. Promote continuous improvement
10. Maintain discipline and focus
12. Your Role
Set the Tempo
Set the business vision and strategies
Create passion for leading the change
Set stretch goals
Define the critical few objectives
Establish metrics and incentives
Leverage Kaizen Breakthrough Events for engaging
associates in collaborative problem solving
14. A Simple Definition of
Lean Thinking & Practice
Systemically develop people and continuously improve
processes to create value and prosperity while consuming
minimum resources.
15. Every Organization Must Address
Purpose – Provide value to customers (cost-effectively to prosper, etc.).
Process – Through value streams that are designed, operated, improved.
People – By engaging and respecting employees and other stakeholders.
Aligning purpose, process, and people.
21. WHAT
is our
PURPOSE?
What situational problem
do we need to address?
How to improve
the work?
How to
develop
the people?
What is our BASIC THINKING??
What
leadership
behavior and
management
system do
we need?
22. Lean Transformation
PROCESS
IMPROVEMENT
Continuous,
practical
changes to
improve the way
the work is done
CAPABILITY
DEVELOPMENT
Sustainable
improvement
capability
in all people
at all levels
VALUE-DRIVEN PURPOSE
- Situational Approach -
“WHAT PROBLEM ARE WE TRYING TO SOLVE?”
Basic Thinking, Mindset, Assumptions
That drive this transformation
Behaviors
MANAGEMENT
SYSTEM
24. Organizational practices
Leadership
Mission statement
Effective operating Procedures
Staff support
Training
Yield: What is important and what is to be accomplished.
Quality principles
Customer focus
Continuous improvement
Employee empowerment
Benchmarking
Just-in-time
Tools of TQM
Yield : How to do what is important and to be accomplished.
Employee fulfillment
Empowerment
Organizational commitment
Yield: Employee attitudes that can accomplish what is important
Customer satisfaction
Winning orders
Repeat customers
Yield: An effective organization with a competitive advantage.
The Flow of Activities in Lean Transformatio
26. Process Improvement at ALL Levels
Macro Enterprise System Level
Value Stream level
Factory, Hospital, Office, Department Level
Micro Level of Each Individual Job
27. LEVELS OF GOALS / PLANS AND THEIR IMPORTANCE
Corporate Decision
Strategic Decision
Tactic Decision
Operational
Decision
Vision/
Top Management
Senior Management
Middle
Management
Lower
Management
29. How to Transform?
It’s easier to act your
way to a new way of
thinking than to think
your way to a new way
of acting.
30. Taking a business to higher levels of performance is best described as jumpshifting.
Ingredients:
Clear Vision
Stretching Goals
Powerful Strategies
Operating Imperatives
+
Lean Managers
31. Traditionally, results are thought
of a Trend Line Growth.
But, Company is looking to do a lot better than Trend Line Growth and has introduced the LEAN
MANAGERS Program to take the business to a whole new level.
33. THINKING DIFFERENTLY
Small changes to small things
a waste of time
Is This Essential?
Small changes to big things
necessary, but frustrating
good, but need many
Big changes to big things
the key to growth
Noâ
NecessaryÂ
VITALÂÂ
34. How do we do it?
LEAN MANAGEMENT means ...
Individual Practice and
Mindset
Transforming the organization and aligning the
people in order to dramatically improve the
business and sustain long-term momentum
35. LEAN MANAGER BEHAVIORS
1. Provides a clear vision
2. Thinks outside the box
3. Creates an aligned team
4. Builds a strong, empowered organization
5. Set and maintains high standards
6. Demonstrates integrity
LEAN MANAGER Results (The Acid Test)
1. Dramatic change
2. Developed and empowered employees
3. Sustained momentum
4. improved competitive/financial position
37. Basic Thinking – Lean Thinking
Principle of “Just Enough”
Practice of Questioning and Experimenting
• Structured Questions and Experiments
38. Lean Thinking
Principle of Respect for People
Practice of Continuous Improvement ( Kaizen)
Never ending learning…to make
things better…
in everything…everywhere
43. What is Lean Process Improvement?
What is Lean?
Is it skinny?
Is it less people?
Is it working harder?
Is it making less?
44. Impact of SFM on Effectiveness of Company’s Operation
Company A
Process
A
Process
B
Process
C
Process
D
Process
E
99% 99% 99% 99% 99%
Total Effectiveness = (99%) x (99%) x (99%) x (99%) x (99%) = 95%
Company B
Process
A
Process
B
Process
C
Process
D
Process
E
95% 95% 95% 95% 95%
Total Effectiveness = (95%) x (95%) x (95%) x (95%) x (95%) = 77%
45. Goals of Lean Process Improvement
Improve Quality
Eliminate Waste
Reduce Lead Time
Reduce Total Costs
50. How things really work in some organizations!
Or, maybe
more like
this:
51. What Do You See in the Picture?
Wagon Leader
Followers
Square Wheels
Round Wheels
Rope
52. The Seven
Deadly Wastes
The ultimate lean target is the total elimination of waste. Waste, or muda, is
anything that adds cost or time without adding value. Seven deadly waste have
been identified over the years. Recently an eighth waste has been identified—
underutilization of people.
53. OPERATING PROFIT
OPERATING EXPENSES
PRODUCT VARIABLE
COST (PVC)/COGS
REVENUE
Gross Sales
Less Discount & Allowances
= Net Revenue
Less Product Variable Cost /COGS
= Net Revenue
Less Total Operating Expenses
= Operating Profit
54. Major contributors to business health and growth are Leverage Points relating to volume and
revenues.
Examples of Volume Drivers:
• Quality
• Pricing
• Advertising
• New Products
• New Brands
• Distribution Systems
• Customer Service
• Merchandising
• Channel Development
• Organization
• Functional Support
• Operating Knowledge
• Packaging Consumer Activity
• Media
• Promotions
• Merchandising
• Public Relations
• Special Events
Consumer Activity
• Ordering
• Delivery
• Merchandising
• Joint Promotions
• Customer Services
55. Product Variable Cost (PVC) – Leverage Points like Quality, Purchasing and
Manufacturing Efficiency, play a major role.
What other leverages would you consider important for your market?
63. Now
the retailer becomes
a mediator between
customers & brands
Customerservice provider
aggregator
manufacturer
64. “Stores”
become places to
manage customer
relationships
Customerservice provider
aggregator
manufacturer Showrooms
Webfronts
Solution boutiques
Shoperiences
Experatail
65. Adapting to change
To create a customer experience that is…
Faster
Easier
Cheaper
More Personal
66. What Customers Want
Thanks to digital, customers now expect a shopping experience that is:
FASTER EASIER CHEAPER
MORE
PERSONAL
How Retailers Can Respond
Thanks to digital, customers now expect a shopping experience that is:
TIMELY RELEVANT CONTEXTUAL TARGETED
68. One Thing Has Stayed The Same
The CUSTOMER Pathway to Purchase
Need Enquire Browse Search Shortlist Compare Order Pay Reward
Market Order
Attract Entertain Engage Transact Reward
The RETAILER Pathway to PurchaseMarket Order
71. 1. HELP
2. RESPECT AND RECOGNITION
3. COMFORT, COMPASSION AND SUPPORT
4. EMPATHIC LISTENING
5. SATISFACTION
72. 6. TRUST
7. FRIENDLY AND SMILING FACE
8. UNDERSTANDING
9. FEELING OF IMPORTANCE
10. QUALITY PRODUCT OR SERVICE AT A FAIR PRICE
73. Benefits
Reach more customers
Reduce costs
Improve cash flow
Increase sales more rapidly
Focus on area of expertise
Retail Functions in
Distribution contd..
74. The Basic
Supply Chain
Finance Flow
Supplier
Raw material packaging
warehouse Manufacturer
Manufacturer warehouse
Retailer warehouse
Retailer
PhysicalFlow
76. 7 Process Wastes (TIMWOOD)
1. Transportation: Unnecessary movement things (parts or machines)
between processes
2. Inventory: Raw material, work in progress or finished goods which
is not having value added to it
3. Movement: Unnecessary movement of people within a process
4. Waiting: People or parts that wait for a work cycle to be complete
77. 7 Process Wastes (TIMWOOD)
5. Overproduction: To produce sooner, faster or in greater quantities
than the customer demands
6. Over processing: Processing beyond the standard required by the
customer
7. Defects: Not right first time, repetition or correction of a process
78. Decisions—Decisions—Decisions
Is my company too small for Lean Process Improvement?
Isn’t Lean a manufacturing process? I am a service business.
Can I afford to implement Lean Process Improvement?
All of these industries have successfully applied Lean to their
processes
80. Infographics
Process
1 Selection the Topic
2 Surveying & Researching
3 Gathering
the Data
4 Analyzing the Data
5 Finding the Narrative
6 Sketching the Idea
7 Editing
8 Designing
9 Testing
10 Completing the
Infographic
82. 5S is a workplace organization technique composed for five primary phases:
Sort, Set In Order, Shine, Standardize, and Systematize.
Lean Six Sigma: 5S
84. Key
Elements of a
Lean
Management
System
(LMS)
Apply strong
Leadership
and
Governance
Engage Staff
Fully in Daily
Improvement
Coach The
Staff and
Transfer Lean
Skills
Measure The
Right Things
and Make
Results Visible
Embed
Standard
Work Into The
Culture
85. Conclusion
If you are the low cost producer of a good or service you have
a competitive advantage and will be able to grow your
business. Lean is the tool to reduce your costs.
86. WITHIN FIVE YEARS, IF
YOU’RE IN THE SAME
BUSINESS YOU ARE IN NOW,
YOU’RE GOING TO BE OUT OF
BUSINESS.