Download - BFBM(5-2016) Lean In
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LEAN IN
Prof.Dr.Aung Tun Thet
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LEAN IN
Prof.Dr.Aung Tun Thet
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◦“Nobody knows the future. ◦You can only create the future.”◦Jack Ma
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Organization
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Organization
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LEAN IN
Continuous
Improvement
WastageReduction
Respect for
People
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Lean In◦Philosophy◦System ◦Integrated tools ◦Improve results by eliminating waste of non-value activities
◦Continuous improvement ◦Culture with respect for people
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Lean In◦Employee ownership ◦Holistic approach ◦Transform organizations into efficient, customer driven and successful enterprises
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Lean In
Lean Concepts
Lean PlanningLean Culture
Lean Tools
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LEAN Organization
◦Creating more value for customers with fewer resources
◦Understand customer value ◦Key processes to continuously improve◦Ultimate goal - perfect value to customer through perfect value creation process with zero waste
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LEAN Organization
Capability to identify and solve
problems
PDCA Thinking
PURPOSEVision/ValuesTrue North
Employee Line of Sight
Strategy Formulation &
Deployment
PEOPLEInvolved & Engaged
in CIContinuously solve
problemsTeamwork
Learn
PROCESSHorizontal flow of
valueManagement
through Standardization &
VisualizationElimination of
waste
SYST
EMS
MANAGEMENT PRACTICE
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Lean Principles
◦Toyota - Taichii Ohno◦Lean Thinking ◦Operational excellence ◦Creating value for customers◦Meeting objectives
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Lean Principles
◦Origins in manufacturing sector◦Application in all sectors – service, healthcare, finance, IT, etc.
◦Heart - elimination of waste - Mudas
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1. Overproduction
◦Creating more than required or before required ◦Advertising in saturated market◦Building houses and selling them cheaply◦Hotels run empty etc.
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2. Waiting
◦Individuals and items wait because of mismanagement or misappropriate allocation of resources
◦Waiting in queues in restaurant or shop◦Newly recruited employees not contributing because of lack of infrastructure - computers
◦Forms waiting for days requiring approvals from authorities
◦Waiting for net or mobile connection to get started etc.
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3. Unnecessary Transport
◦Movement of materials serve no purpose or add any value to customer
◦Long email chains with excessive attachments◦Systems requiring multiple approvals in Government offices etc.
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4. Over-processing
◦Efforts do not add value◦Redundant steps in process◦Call centre employees not trained properly
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5. Excessive inventory
◦Supply of services or information exceeding demand or before required
◦Food thrown away ◦More IT infrastructure ◦Schools and colleges not filled to capacity etc.
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6. Unnecessary Movement
◦People ◦Customer representatives walking long to get brochures
◦Multiple visits by salespersons to get correct documents
◦Multiple visits to government offices to get job done
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7. Defects
◦ “Getting Right First Time” ◦Correcting overhead◦Rework of application forms ◦Incorrect delivery of couriers and goods◦Systems failure
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8. Unused employee calibre
◦Uneven work distribution◦Not leveraging strengths of employees◦Decisions being made only by upper management without involvement of employees, etc.
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Lean Thinking
◦Antidote to Mudas
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LEAN IN PROCESS
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Step 1: Identify Value
◦Value defined by customer◦“What does customer want?”◦“Am I adding value to customer?”
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Step 2: Map Value Stream◦Separate value-added steps from non-value-added steps
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Step 3: Create Flow◦Eliminate or minimize non-value added steps◦Value adding steps flow in continuous manner
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Step 4: Establish Pull◦Arranging processes into Cell structure ◦Transparency and information Pulled rather than Pushed from one component to another
◦Pull based continuous system uncover hidden problems
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Step 5: Seek Perfection◦Kaizen: Continuous incremental improvement◦Progressing towards ultimate goal of zero wastage◦Healthcare sector◦Ultimate goal - serve customer/patient quickly with optimum results
◦Once case arrives in hospital minimal lead time◦Divide process of serving customer/patient into modules and improve every module at every single stage
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Step 5: Seek Perfection◦Jidoko: Built-in quality◦Cultivating culture of stopping to fix problems at root
◦Error proofing ◦Delivering right quality first time ◦Enhance customers’ experience
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Step 5: Seek Perfection◦Standardisation of work processes: ◦Maintain predictability◦Regular timing ◦Regular output from processes◦Mcdonalds, Dominos or Pizza Hut
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Step 5: Seek Perfection◦Use of visual indicators◦Alert everyone as soon as system deviating from regular predicted behaviour
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Step 5: Seek Perfection◦Use Pull Systems to avoid overproduction◦Generate service only when assured of demand from next customer-in-line
◦Grow leaders from within rather than from hiring from outside
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Step 5: Seek Perfection◦Genchi Genbutsu: ◦Get on floor and see for yourself what the real problem is
◦Take decisions slowly after total consensus of all stakeholders
◦Implement them quickly
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Lean Philosophy◦Not tool or technique ◦Culture ◦Cultivated within organization to succeed in long run
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LEAN MANAGEMENTOrganization renews itself
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Four Disciplines
◦Reinforce one another ◦Create adaptive organization ◦Generate value for all stakeholders
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Four Disciplines
◦Tangible skills and ways of working ◦People and organizations learn - over time culture - how people behave and think
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1. Delivering value efficiently to customer◦Understand what customers truly value◦Where, when, how, and why ◦Configure how it works ◦Deliver exact value - no more and no less
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1. Delivering value efficiently to customer◦Fewest resources possible◦Improving coordination◦Eliminating redundancy◦Building quality into every process
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1. Delivering value efficiently to customer◦Cycle of listening and responding never ends◦Customer’s evolving needs reveal:◦New opportunities to attack waste◦Create new worth◦Build competitive advantage
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2. Enabling people to lead and contribute to fullest potential◦Provide support mechanisms ◦Truly master work◦Revamped physical space foster collaboration◦Visual-management techniques let everyone see what needs to be done
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2. Enabling people to lead and contribute to fullest potential◦Targeted coaching builds capabilities◦“Job aids” reinforce standards◦Employees own development
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3. Discovering better ways of working◦Continually think about today’s ways of working and managing improveent
◦Clear sense of what “better” means - ideal organization
◦Unvarnished view of current conditions ◦Ability to work with others to close gaps
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3. Discovering better ways of working◦Problem identification and resolution part of everyone’s job description
◦Problems flow to people best able to solve them
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4. Connecting strategy, goals, and meaningful purpose◦Operate from clear direction◦Vision of what organization is for◦Shapes strategy and objectives
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4. Connecting strategy, goals, and meaningful purpose◦Leaders articulate strategy and objectives people understand and support
◦Align individual goals to strategy and vision◦People fully understand role in organization and why it matters
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Four Disciplines
◦Build on one another◦New products deliver better value to customers◦Convince employees ideas matter◦Find new ways to respond to customers◦Clarify organization’s purpose
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Four Disciplines
◦Government agency evaluate what matters ◦Reassess how work done◦Strategy consistent with mission◦Emphasize different disciplines at different times◦Need all to keep renewing itself◦Form lean-management system
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Lean-Management System: Four integrated disciplines
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NEXT FRONTIERS
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Lean In
◦Put customers first by truly understanding what they need and delivering it efficiently
◦Enabling workers to contribute to fullest potential◦Constantly searching for better ways of working◦Giving meaning to work by connecting strategy and goals in clear, coherent way
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Lean In
◦Biggest management idea of past 50 years◦Transformed how leading organizations think about operations
◦Senior executives gain more exposure and deepen understanding
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Lean In
◦New technologies, new analytical tools, and new ways of looking at customers
◦Ultimate “North Star” ◦Translate what customers value into additional improvements
◦Bridge gaps among operations, marketing, and product development
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New Horizons
◦Lean not stationary◦Delighting customers ◦Boosting productivity
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Scientific Insights
◦Product and service contribute to customer value◦New ways to look at - lead time, cost, quality, responsiveness, flexibility, and reliability
◦New opportunities for cross-functional problem solving to eliminate anything that strays from customer-defined value
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Future of Lean In◦Exciting◦Tools for eliminating waste ◦Increasing value as customers define it ◦Volume and quality of information about customer behaviour
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Future of Lean In◦Marketing insights integrated with operations◦Psychological insights on customer’s needs and desires
◦“Learning to see”
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THANK YOU!