Dr. Talaat Refaat

Compromise between desires for clean theory and desire to improve a business tomorrow.

KNOWLEDGE FOR ACTION “LET US SERVE COMMUNITY

THROUGH LINKING IT TO ACADEMIA” PART 2

By

Dr. TALAAT REFAATA Systems, DSS, Operations Management,

Lean& IT Professional https://www.linkedin.com/in/talaatrefaat

Dr. Talaat Refaat

SUMMARY

Compromise between desires for clean theory and desire to improve a business tomorrow.

OPPORTUNITY: Strategic, Global Goal, National, Huge Effects & Fast Growth. OPPORTUNITY Analysis. Business Model. Outline of Business Plan. Processes & People. OPPORTUNITY Bi-PRODUCTS. Model Generalization & MOM.

Dr. Talaat Refaat

O P P O R T U N I T Y A N A L Y S I SB U S I N E S S M O D E L

This Presentation is PART 2 of several Presentations related to a specific

subject:“ LET US SERVE OUR COMMUNITIES

THROUGH LINKING IT WITH ACADEMY”“KNOWLEDGE FOR ACTION”

Dr. Talaat Refaat

O P P O R T U N I T Y A N A L Y S I SB U S I N E S S M O D E L

AGENDA

Duration

HISTORICAL BACKGROUND. 5 m VALUE ADDED OF THESIS/RESEARCH WORK: CURRENT STATE MAP. 10 m

VALUE ADDED OF PROJECTED MAP. 10 m

PROPOSAL OF FOUR STAGES. 30 m

MODEL GENERALIZATION and (MOM) MEASURE OF MERIT. 5 m

DISCUSSIONS. 30 m

Dr. Talaat Refaat

Dr. Talaat Refaat

AcademiaAcademia

Current State Map Projected Map

Dr. Talaat Refaat

LEAN!VALUE ADDED?

BUSINESS NATURE in FACING REAL PROBLEMS

ACADEMIC NATURE in FACING PROBLEMS

THEORY CONCERN.

NARRATIVE DESCRIPTION.

RECOMMENDATIONS

FUTURE WORK.

PROBLEM SOLVING CONCERN.(Quantitative Approaches)

TRIPLE CONSTRAINT PROBLEM.S.M.A.R.T. Goals.

PROGRESS REPORTS,DELIVERABLES& EVALUATION.

PROJECT APPROACH START-END.

ProductivityThe Seven Sources of Waste

81.6 kg of food are trashed by the averageGerman

61% of the trashing happens by households

Large package sizes is the main reason

Overproduction

Match Supply with Demand

Match Supply with Demand

To produce sooner or in greater quantities than what customers demand

• Overproduced items need to be stored (inventory) and create further waste

• Bad for inventory turns• Products become obsolete / get stolen

/ etc

To produce sooner or in greater quantities than what customers demand

• Overproduced items need to be stored (inventory) and create further waste

• Bad for inventory turns• Products become obsolete / get stolen

/ etc

Examples

Crabs fished in the North Sea

Shipped 2,500km South to Morocco

Produced in Morocco

Shipped back to Germany

Transportation Examples

Relocate processes, then introduce standard sequences for transportation

Relocate processes, then introduce standard sequences for transportation

Unnecessary movement of parts or people between processesExample: Building a dining room and kitchen at opposite ends of a house, then keeping it that way

• Result of a poor system design and/or layout

• Can create handling damage and cause production delays

Unnecessary movement of parts or people between processesExample: Building a dining room and kitchen at opposite ends of a house, then keeping it that way

• Result of a poor system design and/or layout

• Can create handling damage and cause production delays

Readmissions to the ICU in a hospital (also called “Bounce backs”)

Readmissions to the hospital afterdischarge (major component of AffordableCare Act)

Rework Examples

Analyze and solve root causes of rework=> More in quality module

Analyze and solve root causes of rework=> More in quality module

Repetition or correction of a processExample: Returning a plate to the sink after it has been poorly washed

• Rework is failure to meet the “do it right the first time” expectation

• Can be caused by methods, materials, machines, or manpower

• Requires additional resources so that normal production is not disrupted

Repetition or correction of a processExample: Returning a plate to the sink after it has been poorly washed

• Rework is failure to meet the “do it right the first time” expectation

• Can be caused by methods, materials, machines, or manpower

• Requires additional resources so that normal production is not disrupted

Keeping a patient in the hospital longer than what is medically required

Over-processingExamples

Provide clear, customer-driven standards for every process

Provide clear, customer-driven standards for every process

Processing beyond what the customer requiresExample: Stirring a fully mixed cup of coffee

• May result from internal standards that do not reflect true customer requirements

• May be an undesirable effect of an operator’s pride in his work

Processing beyond what the customer requiresExample: Stirring a fully mixed cup of coffee

• May result from internal standards that do not reflect true customer requirements

• May be an undesirable effect of an operator’s pride in his work

Ergonomics

Look at great athletes

MotionExamples

Arrange people and parts around stations with work content that has been standardized to minimize motion

Arrange people and parts around stations with work content that has been standardized to minimize motion

Unnecessary movement of parts or people within a process

Example: Locating (and keeping) a refrigerator outside the kitchen

• Result of a poor work station design/layout

• Focus on ergonomics

Unnecessary movement of parts or people within a process

Example: Locating (and keeping) a refrigerator outside the kitchen

• Result of a poor work station design/layout

• Focus on ergonomics

Revisiting the Process Flow Diagram at Subway

Customers Station 1 Station 2 Station 3   

Processing Time 37 sec/cust 47 sec/cust 37 sec/cust

Loan applications at a bank

InventoryExamples

Improve production control system and commit to reduce unnecessary “comfort stocks”

Improve production control system and commit to reduce unnecessary “comfort stocks”

Number of flow units in the system

• “Product has to flow like water”• For physical products, categorized in: raw

material, WIP, or finished products • Increases inventory costs (bad for inventory

turns)• Increases wait time (see above) as well as

the customer flow time• Often times, requires substantial real estate

=> the BIGGEST form of waste

Number of flow units in the system

• “Product has to flow like water”• For physical products, categorized in: raw

material, WIP, or finished products • Increases inventory costs (bad for inventory

turns)• Increases wait time (see above) as well as

the customer flow time• Often times, requires substantial real estate

=> the BIGGEST form of waste

16

Often, the time in the waiting room exceedsthe treatment time by more than 5x

WaitingExamples

Understand the drivers of waiting; more in Responsiveness module

Understand the drivers of waiting; more in Responsiveness module

Underutilizing people or parts while a process completes a work cycleExample: Arriving an hour early for a meeting

Labor utilization Idle timeNote: - Waiting can happen at the resource (idle time)- But also at the customer level (long flow time)

Underutilizing people or parts while a process completes a work cycleExample: Arriving an hour early for a meeting

Labor utilization Idle timeNote: - Waiting can happen at the resource (idle time)- But also at the customer level (long flow time)

Dr. Talaat Refaat

LEAN!VALUE ADDED?

BUSINESS NATURE in FACING REAL PROBLEMS

ACADEMIC NATURE in FACING PROBLEMS

THEORY CONCERN.

NARRATIVE DESCRIPTION.

RECOMMENDATIONS

FUTURE WORK.

PROBLEM SOLVING CONCERN.(Quantitative Approaches)

TRIPLE CONSTRAINT PROBLEM.S.M.A.R.T. Goals.

PROGRESS REPORTS,DELIVERABLES& EVALUATION.

PROJECT APPROACH START-END.

ProductivityOEE Framework / Quartile Analysis

Overall Equipment Effectiveness

Net opera-ting time

Idlingand minorstop-pages

Re-ducedspeed

OEEDefects Start-upAvail-able time

Break-down

Change-overs*

Total planned up-time

30

55

100

45

Downtime lossesAvailability rate55 %

Speed lossesPerformance rate82 %

X X = OEE 30 %

Quality lossesQuality rate67 %

Improve-ment potential> 3x

Source: McKinsey

OEE of an Aircraft

Total timeIn a year

Block time Seat isIn the air

Value add(about 30%)

36

5*2

4h

No

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Taxi

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Total paid time Time in practice Time booked For appointments

Time withpatients

True valueadd time

Va

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Pa

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MD

Overall People Effectiveness

Source: Marcus, Terwiesch, Werner

Dr. Talaat Refaat

PROJECT MANAGEMENT?

Project Management

Session 1

Project ManagementDr. Talaat Refaat

Project DynamicsThe Triple Constraints

Cost Time

Resources

Dr. Talaat Refaat

ScopeQuality

Project Management

Project Life Cycle (Frame)

Planning

Concept

Execution

Closeout

Operation

Maintenance

Dr. Talaat Refaat Project Management

Dr. Talaat Refaat

AGENDA Duration

HISTORICAL BACKGROUND. 5 m

VALUE ADDED OF THESIS/RESEARCH WORK: CURRENT STATE MAP. 10 m

VALUE ADDED OF PROJECTED MAP. 10 m

PROPOSAL OF FOUR STAGES. 30 m

MODEL GENERALIZATION and (MOM) MEASURE OF MERIT. 5 m

DISCUSSIONS. 30 m

Dr. Talaat Refaat

CommunityAcademia

Bridging The Gap

Dr. Talaat Refaat

KNOWLEDGE FOR

ACTION

Let Us Serve COMMUNITY through Linking it to ACADEMIA

Dr. Talaat Refaat

AGENDA Duration

HISTORICAL BACKGROUND. 10 m

VALUE ADDED OF THESIS/RESEARCH WORK: CURRENT STATE MAP. 10 m

VALUE ADDED OF PROJECTED MAP. 5 m

PROPOSAL OF FOUR STAGES. 30 m

MODEL GENERALIZATION and (MOM) MEASURE OF MERIT. 5 m

DISCUSSIONS. 30 m

Dr. Talaat Refaat

SUMMARY

Compromise between desires for clean theory and desire to improve a business tomorrow.

OPPORTUNITY: Strategic, Global Goal, National, Huge Effects & Fast Growth. OPPORTUNITY Analysis. Business Model. Outline of Business Plan. Processes & People. OPPORTUNITY Bi-PRODUCTS. Model Generalization & MOM.

Dr. Talaat Refaat

DISCUSSIONS