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CONTINUOUS IMPROVEMENT (LEAN)
The Role of Continuous Improvements (Lean) in Improving Work Processes, Performance and Safety
Abdullah Al Hinai
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1. WORK FLOW
2. WHY DO WE NEED TO CHANGE – CASE FOR CHANGE
3. THE STEP CHANGE
4. KEY GAME CHANGERS – SUCCESS FACTORS
5. BENEFITS
6. QUICK WINS
AGENDA
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PROCESS FLOW in WORK PRACTICES
Idea/ Value Creation/ Objectives & Goals
Feasibility Studies/ Basis for Design
Detail Design
Construction / Work Execution
Operations & Maintenance /Services
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Can we continue doing things the same way?
If we continue doing things the same way we do, we will always get the same results
“Insanity is continuing doing something the same way you always being doing it and Expecting Different RESULTS”
What will happen if we don’t change the way we manage our business???
WHY DO WE NEED TO CHANGE???
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1. Unstable Global Economic Conditions/ Recessions 2. Increased cost and demand of resources 3. Increased operational cost 4. Dynamic manpower market (high attrition rate)5. New technology demand requiring new set of skills6. Strict legislations ….
TODAY CHALLENGES- CASE for CHANGE
More Specific to Oil & Gas Industry1. Mature & Large Organisations2. Declining fields3. Aging facilities4. Increased Complexity (EOR)5. New line if expertise and skills requirements6. New operational and Integrity challenges7. Water/gas/ wastes/ chemicals management8. Increased operations & maintenance cost
TOYOTA
1. Moving from Weaving Industry to Car Manufacturing
2. High cost , Low reliability cars
3. Poor Sales
4. Continuously increased expenditure in attempt to improve
5. A Step Change – Do things differently (Toyota Production System)
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The Primary Focus of a Lean Conversion is to Eliminate Waste and Create “Continuous” Flow.
In most processes, value added lead-time is 5-10% of total lead-time, and is scattered throughout the process
Lean activities concentrate here
Traditional improvement activities concentrate
here
90% 5-10%
Time
RawMaterials
FinishedGoods
The STEP CHANGE – Lean Conversion
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WHAT LEADS TO INCIDENTS OR POOR PERFORMANCE
1. Language and communication barriers
2. Unclear instruction
3. Complexity
4. Lack of knowledge and skills
5. Complicated procedures
6. Fatigue and tiredness
7. Short cuts
8. Poor house keeping
9. STRESS
10. ………etc
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THE IMPROVEMENT PROCESS - KEY GAME CHANGERS1. Lean Thinking & Lean Tools Implementation
1. End-to-End Process Mapping & Identify Critical Processes
2. Improve & streamline processes through Diverse Execution methods, such as (Just do; Practical problem solving (PPS), Kaizen, Lean Projects & Value stream mapping, Six Sigma projects..etc)
2. Leaders Standard work (LSW)
1. Leader standard work for leaders at all levels
2. Process performers Standard work
3. Go See
4. Visual Management & Visible performance
3. Continuous Improvement Ideas Boards & Huddles
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◼ Structured Approach and Systematic work practices
◼ Drives Simplicity
⚫ Job Break Down, Work Instructions, Standard Operating Procedures (SOPs)
◼ Standardization
⚫ Common Approach, standard work practices, Simplified SOPs, WI
◼ Focus & Importance – Rule out non adding value activities
◼ Prioritisation (LSW, process performers standard work, CI Sessions)
◼ Visual Performance (what you cant measure, you cant improve)
- Learn Together - know together - act together
CI & LSW Aim & Focus (Key Outcomes)
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HOW(Lean SOPs)
GLOBAL STANDARD PROCESS vs Lean SOP
How do you enable CI environment in the face of global standards and SOPs?
WHAT(Global Standards)
Following and using
STANDARDS = STANDARD WORK
Having STANDARDS STANDARD WORK=A Common Misconception…
STANDARD WORK - PROCEDURES
SOP = Standard operating procedure
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WHERE TO DEPLOY CI Ideas Boards
Work Team Level / Supervisor
Senior Leadership/ Director
Middle management
Line Management/Section heads
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WHERE TO DEPLOY CI Ideas Boards
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• Performance/ Production Status• Inventory Levels• Resources Availability
Seeing As a Group
• Delivery Commitments• Goals And Schedules• Big Rules
Knowing As a Group• Consensus on Objectives,
Plans and Targets• Involvement in
Improvement Activities
Acting As a Group
Visual Performance & Visual Management
Learn Together - know together - Act Together16
VISUAL MANAGEMENT
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Visual Performance & Visual ManagementVISUAL MANAGEMENT
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DOES ALL THIS PAY OFF?!
“BENEFITS"
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GENERAL BENEFITS- Activities alignments across all level of the organization and cross-functions
- Focus, prioritization and time freeing
- Stable plans and minimized interruption
- Assurance, sustainability and continuous improvement
- Better management Support and Coaching
- Process Lead time reduction and reduced inventory
- Standard Process and SOPs – Compliance
- Improvement Processes management, focus and improved quality
- Visual Performance, assurance and sustainability
- Step by step improvement
- Day to day obstacles removal
- Coaching for problem solving
- Team work and Employee empowerment
LSW
Lean
Projects
Visual Management
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SUSTAINABILITY REPORT 2018 (PDO FACT FILES)
17
1. Furthermore, I am happy to report a 77% fall in the
number of Tier 1 process safety incidents and a 50%
drop in Tier 2 incidents – both the lowest since 2010.
2. In 2018, this supported the delivery of 142 efficiency
improvement projects, securing US$152 million in
cost savings.
3. So far More than 15,700 ideas have been generated
from across the Company and more than 6,000 have
been implemented.
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Take Home / Quick Wins
◼ Look at the big picture - E2E process
◼ Identify critical Processes
◼ Break down processes & activities, Eliminate waste & Remove Obstacles
◼ Develop specific, simple & Clear SOPs/Work Instructions
◼ Simplify the standards & procedures (come up with simple SoPs)
◼ Use of Visual Management & CI boards (a good mix between leading
and lagging KPIs. Huddle around the VMs with the process performers
◼ Coach team (at working levels) for problem solving
◼ Leaders Go See (Go to Gemba)
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Not being able to see the PROBLEM is the PROBLEM
In most processes, value added lead-time is 5-10% of total lead-time, and is scattered throughout the process
Lean activities concentrate here
Traditional improvement activities concentrate
here
90% 5-10%Time
RawMaterials
FinishedGoods
The STEP CHANGE – Lean Conversion
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Thank You…
DRIVE DRIVE CULTUREHABITSROUTINES
Qs…?
FLM
OSW
L3 Audits
OI
5s
LSW
SOPs
CI Sessions
LSW 1-2-1 Reviews
Visual Performance
Gemba Walks
Structured
Systematic
Focus
Prioritisation
Visual Performance
Common Approach
Continuous Improvement
LSW
Simplification
Value Adding
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BACK UP SLIDES
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1. Value Streams Definition (End to End Process Mapping)2. Step by Step/ Incremental Improvement Journey3. CI Idea Boards 4. Leaders Standard Work (LSW)
DEPLOYMENT METHODS
Examples of Value streams1. Operations & Maintenance2. Project Delivery (feasibility, design, construction, commissioning & handover)3. Sales & Marketing4. Supply Chain (Contracting & Procurement)5. Services 6. Human Resources directorate7. Health, Safety and Environment 8. ….etc
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New Ideas To Do Doing Completed
Possible – On Hold
Escalated ideas
Weekly Tally Sheet
Implemented _ Wall of Fame
Blank idea cards
Card sample of goodness
Submitted
implementedDropped Ideas
Team Members
Continuous Improvement (CI) Ideas Boards
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