4. During Lean Implementation
The 7+1 Waste
1. Overproduction
2. Waiting
3. Transportation
4. Over Processing visible!
But these are
Over the Carpet but
5. Inventory is there Under
what
the Carpet?
6. Motion
7. Defects
8. Unused Employee Creativity
5. What we know is far less than what we don’t
• Take a closer look at your factory
8. Invisible Waste
• You may pump in extra fertilizers or
chemicals to make the plants grow.
• But in turn it makes the soil infertile and
unproductive.
• It takes away the natural fertility of the
ground.
• The factor for infertility – Invisible Waste
• They are found in either Value Creation or
Value Stream.
9. Value Creation Value Stream
• The invisible waste in Value Creation are of
long term nature and are larger in impact.
• They need huge changes in mindset in order to
be eradicated totally.
• The invisible waste in Value Stream is in the
process and the systemic steps.
• They can be brought out by severe observation
and data analysis.
11. Policy & Procedures
• Policy & Procedures – not revised for years
• Lengthy and NVA procedure are discouraging
• Policy not in place – people not in place
• Decision Making is fuzzy if unclear policy
• For ex. Policy to buy Machine and Hardware
are same
• Increase the supplier base over cost concerns,
however actually you are buying variations
13. Culture
• The set of shared attitudes, values, goals, and
practices that characterizes an institution,
organization or group – unique to it
• People visit Toyota – learn the tools employed
• Toyota knows its culture cannot be copied
• It is cultivated over a period of time
• If not guided, then also there’ll be a culture
• Build a Culture of Continual Improvement
towards perfection
15. Culture .. How to Identify
• What are we dealing with? Urgent – Important
• How do we treat an Individual in every Transaction?
• Trust Based Relationship (employer-employee)
• Do we chat more about the person who is not there?
• How is the Top Management?
• Rituals, customs, anecdotes, success stories, artifacts
• How is the furniture arranged, quotes on walls?
• Beaurocratic, democratic, autocratic, open-door…..
16. Strategy
• A strategy is a plan of action designed to
achieve a particular goal (linked to Vision).
• Strategy deals with the how part rather than
the what.
• Strategy gives the RIGHT Direction
• You must know where not to delve
• Vision will not help unless strategy is right
• Growth strategy
• Blue Ocean Strategy
18. Architecture of the Organization
• Bigger Organization, higher is departmentalization
• Micro Management – makes orgn. Sluggish
• Every Link in the Pyramid is Useful
• However, None faces the Customer
• If architecture not right, you’re Structured to fail
23. Measurement
• Incentive should be based upon Value
Addition
• Production – up on all the cylinders, full
throttle
• Because higher figures, meant higher incentive
• All produced is then stored – NVA
• If Performance Management System is based
on these figures
• Lose a good supervisor, have a bad manager
24. Measure it to Improve it!!
• Accounting – Rework is not counted
• Month End Syndrome, Quarterly results – Fire
Fighting
• Budget Driven – measuring the other end
• Still Measuring the Bottom Line as Sales
USE A HOLISTIC APPROACH
• Balanced Score Card – Norton & Kaplan
• Throughput Time is useful measure for all
25. Entrenched Paradigm
• The significant problem cannot be solved from
the same level of thinking that created it.
• Think of a Paradigm Shift as a change from one
way of thinking to another.
• It's a revolution, a transformation, a sort of
metamorphosis.
• It just does not happen, but rather it is driven by
agents of change.
• Shift is not for others, it’s for you to begin with
26. Transformation Model
SEE Shift in
Paradigm
Customer Satisfaction
Productivity
Profit
Improving
Needs Process
Principles
GET DO
Results
Behavior
Change
27. Communication
Mobiles Media
Internet Blackberry
• High-Mesh communication – but Messed up
28. “Talk” is not Communication!
• Sending Mails everyday – but no connection
• No morning wishes - barrier to communication
• Hiding the problems
• Pink Elephant – Everyone knows but no one
talks of it
• Open Door Policy
29. Knowledge Management
• Organizational Learning
• Knowledge Transfer to next generation of
employees
• Make it simple
• Excellent Knowledge Mgmt. – reduced
chances of repeated errors
• Teach and Train others swiftly
• New Employee Induction becomes easy
• Operations become operator’s knowledge
independent
