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Dr. John Blakemore Principal Innovation Blakemore Consulting Intrernational National President Manufacturing Society of Australia Advisor to Australian Government on Innovation and Research and Development
OBEYA.
Waste
Expenses (P&L Bal Sheet)
Value Chain
Service Value Creation
Strategic Advantage for Winning
Value Creation
Customer
Core Process
Customer Value
Buying Decision
S U P P L Y
Continuous Flow
1. Once value is added to a product, the product must continue to have value added. 2. No queuing, idle time or stopped flow 3. Remove or speed up the bottlenecks 4. Synchroniselook at a Formula 1 pitstop
Minimise Waste
Waste can be in the form of : Material Time (total, lead etc) Space Money Tampering ( Changing ) Double Handling Breakdowns Band-Aid Solutions Setups, Cleanups, Idle Time, Inventory (RM, WIP, FG)
Japanese Inventory
Effectiveness
2. Lead Times 3. Stock Turns 4. Working Capital 5. Waste % 6. Quality Indices 7. Time to Market 8. Net Tangible Value 9. ROI, RONA, 10. EBIT, VA
Output
100 80
60
40
20
Defectives
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
Months
Value Added
PROCESS PARTS (6) 1 1 2 3 4 5 6 2 3 4 5 6
Setup(Preparation) Run(The Value Added Step) Maintenance (Preventive) Breakdown(Errors & rework) Idle(available to run but not utilised Cleanup
VA = 2,(3)? = Run + Preventive Maintenance Eliminate Breakdown Idle Setup? ( SMED) Cleanup Concurrent Engineering
120
100
80
60
40
20
Elements
Manufacturing or Service?
There is no such thing as a pure Manufacturing Company All companies are Service Driven
The Solution
Customer Service Driven Cooperative Culture Strong Relationships Team Cross Functional Structure High Velocity Accurate Information Short Time Periods Synchronised Processes Pull not Push Dynamic not Static
Lean
Recent Achievements
1. Hazard: 800% productivity gain in 18months 2. Pirelli : Output doubled, NP from 5% sales to 15% profit 3. CSFB: $40M fr WC , OT D 32% to 95%, Loss to $40M EBITA 4. Tannery: Colour defects eliminated from 15% defective 5. Steel Fabricator: Plant redesign, Mat Handling $ halved 6. Computer Supplier: Loss $60,000 to profit $1.0M I year 7. Aluminium Fabricator: Productivity doubled in 6 months 8. Speedo: QR to retailer, inventory down, service up. 9. 14 Plastics Companies: All increased bottom line in 1 yr. 10.Geelong Cement: Productivity Gain of 25% in 6 months 11.Warkworth Mine: Productivity Gain of 16% in 6 Months 12. BHP to PVA: RM Inventory reduced from $1.5M to $60,000
20
15
Millions of Dollars
10
-5
6 Months Period
Output
100 80
60
40
20
Defectives
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
Months
40
30
20
10
The End