pmi lean management what can we learn from toyota's success story - laurent tironi

Lean ManagementWhat can we learn from Toyota’s success story

25/02/2016

www.linkedin.com/in/laurentironi

Organization enhancement and process optimization for a Real Estate company in Lebanon (30 employees) - ongoing

Core Banking System deployment (project team of 50 team members): Design and implementation of Project Management tools (KPI, action follow-up, risk analysis), support of the Project Director on the 6 project streams - ongoing

Quality enhancement in a vaccine production site (SANOFI PASTEUR, 4500 employees onsite): Kaizen events enabling 10% decrease of production wastes and 30% decrease of tests time cycle (laboratories)

Operational excellence program in a train maintenance site (SNCF, 800 employees onsite): Processes and supply chain optimization, best practices deployment and middle management empowerment enabling 20% reduction of maintenance time cycle and 5% increase of productivity

Representative projects

Laurent TIRONILean Management – Six Sigma Black Belt


Operational excellence program in an electricity provider branch (ERDF – GrDF – 90 employees): DMAIC approach and management empowerment enabling 30% decrease of non value

Process optimization in healthcare government agency and prison administration: Lean approach enabling improvements of the processes’ efficiency and quality

Total Productive Maintenance Program in a tires production site (Bridgestone): improving maintenance to reduce equipment downtimes


Why Toyota became the #1 car manufacturer

Toyota differentiator is

not there cars, it is

how the manage and how they

operate&


Lean Management history – roots of the Toyota Production System

The Need to Produce Efficiently

at Low Volumes

Financial constraints after

World War II

Henry Fordflow production / moving assembly

line

1913 1950


Lean Management is widely used in industry and services

1950 1960 1970 1980 1990 2000 2010….

Automotive industryToyota

Star

t-up

Pub

lic

serv

ices

Serv

ices

Whole industry sector

Toyota Production

System

« The Machine that changed the World » introduced the

Lean terminology

Toyota suppliers

Toyota outside of Japan

TPS is still evoluting in

Toyota group, continuing

to standardize the

processes !

…Lean extends to the competitors… ….arrive in the process, luxe, construction,

pharmaceutical industry, ….

….to

ext

end

to th

e se

rvice

s (Ba

nks,

IT,

heal

thca

re, u

tiliti

es) a

nd p

ublic

sect

or

Proj

ect M

anag

emen

t

Engineering

Operations

Supply Chain

IT

& in all layers of the company

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Lean Management in a nutshell

Watch the video on: https://youtu.be/wfsRAZUnonI

https://youtu.be/wfsRAZUnonI

https://youtu.be/wfsRAZUnonI


Focus on the value added for the client

• Value added activities are defined from the client perspective (activities for which the client is ready to pay)

• In most processes, value added activities represente less than 10 % of the time cycle.

This represents high opportunity to simplify and rationalize the work, in order to reduce time cycle, improve

service quality and reduce the operational costs

VISA extention granted

Time

Time

90% 10%

Lean Management addresses this scope

Most of other methodology focuses on this scope

Value added activities

Non value added activities

Value added activities

Non value added activities: wastes

Example: Request for VISA extension in National Security

Arrival

1


The 7 + 1 wastes

T – Transport

I – Inventory

M – Motion

W – Waiting

O – Over production

O – Over processing

D – Defects

S – Skills


Make problems visible…

9

LEVEL OFINVENTORY

DELAY IN DELIVERIES

LONGSETUPS

REWORK

UNSTABLEDEMAND

MACHINEBREAKDOWNS

MIXED MATERIALSPOOR HOUSEKEEPING

HIGH MANPOWERREQUIREMENTS

Sea ofInventory

DRAINCLOSED

GENERATINGDEFECTIVEPRODUCTS

2


...and solve them

10

LEVEL OFINVENTORY

DELAY IN DELIVERIES

LONGSETUPS

REWORK

UNSTABLEDEMAND

MACHINEBREAKDOWNS

MIXED MATERIALSPOOR HOUSEKEEPING

HIGH MANPOWERREQUIREMENTS DRAIN

CLOSED

GENERATINGDEFECTIVEPRODUCTS

2


What is it written ??

IUMRING TO GQNGIUSIQNS

GO SEE

3


Promote the Continuous Improvement

Continuous improvement

Innovation / investment

Mix the 2, depending on companie’s priority and

financial situation

&

Efficiency

Time

4


And … involve the stakeholders

Starting fromthe analysis

Give the stakeholders the ownership of the solutions

5


Benefits you can get from Lean Management projects

For train maintenance:45 days 29 days

Time cycle to test samples reduced by 30% (pharmaceutical industry)

Waiting time for patients in the Emergency Service:4h30 3h45

Non value added interventions on the electricity network reduced from 15% to 7%

Human mistakes in prisoner’s files reduced by 80%

Non quality due to human mistakes divided by 4

Time cycle reduction: Quality improvement


WHY some companies fail in implementing Lean (1/2)

Encouraging results at the beginning, but disappointing results on the long run1

“Do it my way”

Why ? They failed in giving the ownership to the employees

Effect: There is no problem !!

Whenever you say someone what to do, you take the responsibility of the action away from him


WHY some companies fail in implementing Lean (2/2)

High involvement of the Team, but little improvements2

Why ? Lean considered as “just” a tool box Effect: Tools are used for the wrong purpose (Maslow hammer)

Misalignment between improvement projects and companies objectives

if all you have is a hammer, everything looks like a nail


The role of the Lean Manager (by John Shook)

Focus on the value added

for the client

GO SEE

Make the problems visible

Promote the Continuous

ImprovementInvolve the stakeholders

Get each person to take initiative

to solve problems and

improve his / her work

Ensure that each person’s

job is aligned to provide value

for the customer

Tools are designed to make it easy to see problems, easy to improve, easy to learn from


Questions


Appendixes 1 – Leam Six-Sigma tools

2 – Visual Management Example


Some tools that you may be using during a DMAIC project (Lean-Six Sigma)

▶Affinity Diagram▶Failure Mode & Effects Analysis (FMEA)▶Process Flow Chart▶Project Priority Calculator▶Value-added Flow Chart▶Value Stream Analysis

▶Value Stream Map (VSM)▶Histogram▶Measurement System Analysis (MSA)▶Pareto Chart▶Six Sigma Conversion Table▶Statistical Process Control (SPC)▶Trend Chart▶Gemba

▶5-Why Analysis▶Design of Experiments▶Fishbone diagram (Ishikawa) – root cause analyzis▶Regression Analysis▶Statistics Handbook

▶5S Tool▶Brainstorming▶Corrective Action Matrix▶Error-Proofing▶Kaizen▶One Piece Flow▶Pull Scheduling▶Quick Changeover (SMED)▶Total Productive Maintenance▶Just in time

▶KPI follow-up▶Control Plan▶Standardized Work▶Statistical Process Control (SPC)

Define Measure Analyze Implement Control


Visual Management example

2

16

13

10

5

19

6

7

3

1

12

17

21 9

12

16

20

15

13

27

22

174

8

25

14

24

11

26

18

28

29

30

3335

38

49

45

503134

32

36

17

21

40

41

47

48

43

17

37

46

25

44

39

42

How long does it take to identify the missing number ?


Visual Management

1 2 3 4 5 6 7 8 9 10

11 12 13 14 15 16 17 18 19 20

21 22 24 25 26 27 28 29 30

31 32 33 34 35 36 37 38 39 40

41 42 43 44 45 46 47 48 49 50

And now ?

pmi lean management what can we learn from toyota's success story - laurent tironi

Presentations & Public Speaking