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					                                        January/February 09
   issue 5




    Could Lean be more of a problem
    than an answer?
                                                       A growing number of managers are turning to Lean to
                                                       help their business through the present uncertainty.
                                                       In researching Lean, however, they may be forgiven for
                                                       thinking that its introduction might create as many
                                                       problems as answers. Headlines that Lean is just the
                                                       latest Management Consultant fad or of “thought
                                                       police” telling staff how many personal items they are
                                                       allowed on their desk certainly doesn’t “sell” the
                                                       adoption of Lean (just newspapers). Media interest,
                                                       however, is far more likely to centre on the negative
                                                       message rather than the success stories about the
                                                       enviable results that are achieved using Lean
                                                       techniques. So can it be pure coincidence that some of
                                                       the world’s most successful organisations have built
                                                       their success on a Lean business model?

                                                       Such ‘negative’ stories do, however, open up the debate about
                                                       how Lean is actually being applied within the workplace.
                                                       The debate inevitably begs the question: how can the same set
                                                       of established Lean methodologies be applied so differently?

                                                       Read the rest of the article




     Lean Accredited Training
                             Lessons learnt                                 cultural fit with Skandia and because previous
                             from previous                                  customers were so positive about their
                             recessions mean                                experience. We have been delighted with
                             that managers are                              oee’s contribution to our programmes which
                             focused this                                   have consistently delivered across a number of
                             time around on                                 functional teams. From day one we intended to
                             how they can                                   create and develop an in-house Lean capability
                             maximise                                       and oee were willing and able to support this
                             performance and                                development. What started out as informal
     retain their most important staff rather                               coaching and support has now evolved and
     than cutting numbers indiscriminately.                                 been formalised through the LERC-accredited
     oee’s accredited Lean training offers you                              training oee delivers.
     the unique opportunity to deliver growth                               What stands out for me is the way that the
     by releasing capacity and realising                                    Finance team have embraced the Lean
     hidden potential whilst at the same                                    concepts. They have become advocates of
     time rewarding crucial staff with career                               Operational Management and everyone is
     enhancing accredited Lean service                                      passionate about their white boards and the
     training. And oee customers are                                        power of huddles; quite simply it has been the
     already benefiting:                                                    biggest influence in transforming our culture.
     ‘We choose oee to support our Lean                                     I would not hesitate to recommend oee .’
     improvement programmes because of a close                              Phil Hine, Skandia, Shared Services



                           For more details visit our website www.oee-training.com
                 or email us at training@oeeuk.com call us today on Tel: +44 (0)1608 819340




    The “oee Index”
     It can be difficult for any organisation                                 The oee Index looks at the capability of
     embarking on a Lean journey, to                                          process, work organisation and operations
     understand where their start point is.                                   management and compares it with similar
                                                                              organisations to provide a invaluable insight
     Recognising that this lack of visibility
                                                                              into an organisation’s current capabilities
     can be a major hurdle, oee has
                                                                              using 16 key axis as shown on this link.
     developed its own unique index aimed
     specifically at the operations                                           Using the results, the index will also allow
     environments of service organisations.                                   oee to make an assessment of the operations
     The index allows a business to quickly                                   position against 7 significant areas that
     understand its present capabilities by                                   support effective improvement i.e. “enablers”.
                                                                              These include is there a culture of Effective
     assessing the team/department/
                                                                              Performance Management; does the
     function/business against “world class
                                                                              Operation put Quality first and does the
     service organisations” and evolving
                                                                              Operation Continuously Improve?
     best practice.
                                                                              We firmly believe that with an independent
                                                                              and comparative view of the start point of the
                                                                              Lean journey, an organisation can develop a
                                                                              more effective plan for improvement
                                                                              activities, and progress can then be monitored
                                                                              against challenging but realistic targets that
                                                                              are anchored against true best practice.


                                                                                To discuss how the oee Index could apply
                                                                                to your organisation please contact us
                                                                                info@oeeuk.com or for further
                                                                                information view our full presentation.




      oee are operations improvement specialists. We work with customers in a range of sectors
      including Financial Services, Public Sector, Manufacturing, Logistics and Telecommunications.
      We work in partnership with our customers to transform their operations and create value both
      for their customers and themselves.



You have received this email because you have previously expressed interest in oee’s services.
Unsubscribe
If you do not wish to be kept up to date with the latest information from oee then please unsubscribe.
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cannot accept liability for any virus introduced by this email or any attachment and you are advised to use up to date virus checking software.
OEE Consulting Limited is registered in England No 3396362.
   issue 5                               January/February 09




    Could Lean be more of a problem
    than an answer?
                                                      At oee we are aware that                              implementation and the sort of
                                                      there are inevitably many                             stories that emerge in
                                                      varying interpretations by Lean                       the press.
                                                      practitioners as to what Lean
                                                                                                            oee understands that each
                                                      really is. For some, it will
                                                                                                            organisation is unique with
                                                      involve segmenting demand,
                                                                                                            different approaches and
                                                      for others it starts with a rapid
                                                                                                            demands, and that the solution
                                                      improvement event or kaizen                           can vary enormously according
                                                      (continuous improvement)                              to the sort of work you are
                                                      blitz. Elsewhere it is all about                      attempting to improve. For
                                                      standardisation, lead-time                            example: Is it right to expect a
                                                      reduction and productivity                            high risk fraud unit to be set
                                                      measurement.
                                                                                                            up, managed and measured
                                                      There is a danger that in the                         the same way as a general
                                                      search for intellectual purity,                       enquiries call centre? Should
                                                      the real point can be forgotten                       transactional processes (e.g.
                                                      and the real benefits of                              sorting post) be managed in
                                                      pursuing Lean can be                                  the same way as high
                                                      diminished or overlooked                              discretion processes such as
                                                      entirely.                                             underwriting? The answer is an
                                                      True Lean is a philosophy and                         emphatic NO to both
                                                      a state of mind. It may use                           questions. This is why, after
                                                      proven tools, established                             a decade of applying Lean
                                                      techniques and methodologies,                         principles to service industry,
                                                      but these are subordinate to                          oee has developed “the Lean
                                                      the overall philosophy,                               continuum”. It is our way of
                                                      and one-size does not fit all!                        making sense of the many
                                                      Failing to appreciate this                            varied environments that we
                                                      almost certainly leads to poor                        have been asked to improve.




    The oee Lean Continuum
    We have created a straight forward                                          According to the main drivers of your business,
    tool that gives our customers                                               the tool suggests measures, management
                                                                                approaches, appropriate lean tools, labour
    guidelines for applying Lean
                                                                                strategy and even what your business process
    appropriately within their business.                                        management alternatives might be.
    It sets out a framework that
    classifies work into 3 categories                                           A business with a clear diagnostic focus such as
    or main drivers:                                                            an audit firm using complex financial forensics
                                                                                would tend to look in the right hand column.
                                                                                Case ownership, high customer focus, careful
       1 Cost – where a process is seen as
                                                                                succession planning and high levels of
         transactional commodity
                                                                                availability will be crucial in this type of work.
       2 Delivery – where timeliness and accuracy                               In contrast, a manufacturing plant assembling
         are fundamental to the offer                                           simple wall brackets will be in the left hand
       3 Diagnostic – where specialist skills                                   column. Efficiency measures, short cycle time
         are needed                                                             jobs and variety reduction would be typical
                                                                                areas of focus.

                                                                                OEE Lean Continuum
                                                Consistent Work                    Variable Work Content              High Discretion Work
                                           Runner     Repeater                   Runner     Repeater       Rarity   Runner     Repeater       Rarity

                                                     Cost focus                           Delivery focus                  Diagnostic focus


                                              Lean Production                                                             Lean Service

                                             Efficiency, Reduce variety,                  Absorb variety,                  Absorb variety
                   Focus                  Safety, Variety drives Cl activity,       Standardisation, Flexibility,        Develop specialism,
                                                   Standardisation                 Effectiveness then efficiency         Core industry skills

                 Ops Design                  Short cycle time, Flow line                  Cellular, Team                     Case ownership

                                                                                                                      Customer, RFT, Availability,
                  Measures                 RFT, Productivity, Cost, Speed          Customer, RFT, Productivity
                                                                                                                           Failure demand

                                                                                                                           Do not relocate,
                   B P R?                 Self-serve, Automate, Relocate                    Automate
                                                                                                                         Automation possible

                                                                                                                      Diagnostic skills, Empathy,
                   Human                  Low discretion, Fast assimilation      High discretion, Problem solvers
                                                                                                                            Investigation

                                           Lean production, Visual mgt,
                                                                                           FMEA, VSM,                  Voice of customer, QFD
                                                layout, Workflow,
                    Tools                                                              Skills accreditation,           VSM, Technical training
                                              TBPS, Interval control,
                                                                                     Flexibility, Multi-tasking        Skills accreditation, NLP
                                                 OBW, Multi-skills

                                                                                Avoid delay/unnecessary hand-off,       Customer satisfaction,
                   Drivers                 De-skill, Short training times
                                                                                           Referral OK                      One and done

              Industry Example                          Asda                                 Waitrose                     Fortnum & Masons

                Management                            Generalist                Generalist some content necessary   Specialist, Succession planner
              Leader Behaviour                   Delivery focussed                                                             Coaching
                 Examples                              CHAPS                                                                     Fraud

      Runners – high vol, low complex     Low value, RFT, no code needed                                                    Charge-back
     Repeaters – med vol, med complex            RFT, code needed                                                   Automated system call trigger
      Rarities – low vol, high complex      Flawed input, needs repair                                                  Detailed investigation



                                              Changing shape of work – increasing trend to knowledge workers
                                                       E.g. Moving transactional work off-shore in many processes tends
                                                                 to leave much higher discretion work onshore




       The tool is going to be of real value to people who have become confused by the increasing
       debate about what to do and how to measure success. Organisations should instead be
       encouraged to interpret Lean as it fits their organisation. The Lean Continuum is oee’s way
       of showing that Lean is about understanding the underlying essence of Lean not simply focusing
       on the tools.
       Please contact us to discuss the Lean Continuum, your requirements and any other feedback
       you may have from this article. Email us at info@oeeuk.com




      oee are operations improvement specialists. We work with customers in a range of sectors
      including Financial Services, Public Sector, Manufacturing, Logistics and Telecommunications.
      We work in partnership with our customers to transform their operations and create value both
      for their customers and themselves.



You have received this email because you have previously expressed interest in oee’s services.
Unsubscribe
If you do not wish to be kept up to date with the latest information from oee then please unsubscribe.
oee takes all reasonable steps to ensure that its electronic communications are free from viruses. However, given Internet accessibility, the Company
cannot accept liability for any virus introduced by this email or any attachment and you are advised to use up to date virus checking software.
OEE Consulting Limited is registered in England No 3396362.
                                    Customer/Supplier
                                       Awareness
                        Managing        5.0             Capacity
                       Technology                       Planning
            TM Training                 4.0                           Skills
          & Development                                            Management
                                        3.0

                TM                                                         Process
                                        2.0
               Role                                                      Management

                                        1.0

        Managing                                                             Operational
                                        0.0
         Costs                                                             Communication



People Performance                                                       Productivity
   Management                                                            Management


                Work                                               Quality & Risk
             Organisation                                          Management
                      Improvement                         Delivery
                         Basics                         Management
                                       Workplace
                                      Environment

				
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