Lean ManagementWhat can we learn from Toyota’s success story
25/02/2016
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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
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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
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Why Toyota became the #1 car manufacturer
Toyota differentiator is
not there cars, it is
how the manage and how they
operate&
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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
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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
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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
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The 7 + 1 wastes
T – Transport
I – Inventory
M – Motion
W – Waiting
O – Over production
O – Over processing
D – Defects
S – Skills
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Make problems visible…
9
LEVEL OFINVENTORY
DELAY IN DELIVERIES
LONGSETUPS
REWORK
UNSTABLEDEMAND
MACHINEBREAKDOWNS
MIXED MATERIALSPOOR HOUSEKEEPING
HIGH MANPOWERREQUIREMENTS
Sea ofInventory
DRAINCLOSED
GENERATINGDEFECTIVEPRODUCTS
2
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...and solve them
10
LEVEL OFINVENTORY
DELAY IN DELIVERIES
LONGSETUPS
REWORK
UNSTABLEDEMAND
MACHINEBREAKDOWNS
MIXED MATERIALSPOOR HOUSEKEEPING
HIGH MANPOWERREQUIREMENTS DRAIN
CLOSED
GENERATINGDEFECTIVEPRODUCTS
2
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What is it written ??
IUMRING TO GQNGIUSIQNS
GO SEE
3
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Promote the Continuous Improvement
Continuous improvement
Innovation / investment
Mix the 2, depending on companie’s priority and
financial situation
&
Efficiency
Time
4
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And … involve the stakeholders
Starting fromthe analysis
Give the stakeholders the ownership of the solutions
5
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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
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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
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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
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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
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Questions
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Appendixes 1 – Leam Six-Sigma tools
2 – Visual Management Example
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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
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Visual Management example
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503134
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25
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42
How long does it take to identify the missing number ?
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Visual Management
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And now ?