Concepts covered.

pdf
Day 1 Measuring Criteria.pdf
Day 1 Process Mapping.pdf
Day 2 Barriers.pdf
Day 2.1 BSC guidelines.pdf
Day 3 Kaizen Mehods.pdf
 The Ballpoint Pen Factory
- Concepts Covered –

Process Management
SIEMENS TECHNIK AKADEMIE

Concepts covered| Neil Conlan

 Concepts covered

 Measuring Criteria (KPI’s)

 Process mapping (MS Visio)
 Layout (MS Visio)
 Barriers – Low hanging fruit
 Balanced Scorecard
 Kaizen Methods

 Customer satisfaction
 Quality control
 Benchmarking
 Marketing & pricing strategies

Concepts covered | Neil Conlan 2

 The Ballpoint Pen Factory
- Measuring Criteria (KPI’s) –

Process Management
SIEMENS TECHNIK AKADEMIE

Day 1: Measuring Criteria | Neil Conlan

 Measuring Criteria

 Total Cycle Time:

 Calculated from the time a customer places an order to
when the order is delivered to the customer.

 Total Production Time:

 Calculated from the time production of an order begins to
when the order is ready for shipment (including waiting
time and internal transportation).

 Production Time / Pens Produced = ___ Seconds / Pen

Day 1: Process Mapping | Neil Conlan 2

 Measuring Criteria

 Productive Time
 per worker
 per order

Quality Control

 External
 Number of damaged or faulty pens returned to company
by the customer.
 Internal
 Number of damaged or faulty pens produced and
repaired in the factory.

Day 1: Process Mapping | Neil Conlan 3

 The Ballpoint Pen Factory
- Process Mapping –

Process Management
SIEMENS TECHNIK AKADEMIE

Day 1: Process Mapping | Neil Conlan

 Flow Chart Symbols

Symbols Flow Description

Incident
Branching

Activity

Combination
no 1
Decision
yes
1 Jump Labels

not ok Activity
ok Inspection
Repetition
(Loop)
no
yes
Sub-process

Day 1: Process Mapping | Neil Conlan 2

 Schematic Diagram of a Flow Chart

START

Incident
A1
Activity
Time Line

Decision
no
D1

yes

A2 A1

no
End D1
yes
Day 1: Process Mapping | Neil Conlan 3
 Flowchart Example: Cinema visit

Wish: cinema
1 2
visit

50
10 90
Check
Drive to the not ok 3 Evaluate
for free
cinema movie
seats
ok

20 60 Wish for
3 Select Purchase cinema visit:
movie tickets fulfilled

30 70
no Communicate Enter cinema
decision hall

40
80
Friends
Watch movie
agree?

yes

1 2

Day 1: Process Mapping | Neil Conlan 4

 Sample Layout
Customer Entry
De
liv

Store-Keeper
er
y
Shipping

Repairing

Inco
mi n
r

g
e
rd
O
s
et
rg

Ord
e pe

er
e ke
or
St

roduct
Packed P
Foreman

l
Materia
ler gets
Asse m b

ucts
ge ts Prod
Tester Pa
ck
ag
er
ge
ts
Assembly

te
s te
d
Pr
od

Testing
uc
t
Packaging

Competitive Factory

Day 1: Process Mapping | Neil Conlan 5

 The Ballpoint Pen Factory

- Process Barriers -

Process Management
SIEMENS TECHNIK AKADEMIE

Day 2: Process Improvement | Neil Conlan

 FPY: First Pass Yield
Each process step works to 93% proficiency

in % 100

93
86
80
80
75
70
60 65
60
56
52
40

20

0
P1 P2 P3 P4 P5 P6 P7 P8 P9

Day 2: Process Improvement | Neil Conlan

 Correlation between
“hierarchical levels” and barriers

“Iceberg of ignorance”

4%
Barriers
Top mgmt.

9%
and
Middle mgmt.
who knows of
74%
Front mgmt. them !!
100%
Staff

R.C. Whiteley Ph.R. Thomas

Day 2: Process Improvement | Neil Conlan

 Barriers / problems obstruct processes
Cultural barriers are the greatest obstacles -
their removal provides the largest impact

Difficulty Impact
of barrier Removal only
removal great with the aid of top great
management

Cultural barriers

medium
medium Process barriers Removal by
specialists
Removal by
process teams
Physical
barriers little
little
Number
few many
of barrier
types
Source: TGI
Day 2: Process Improvement | Neil Conlan
 Cultural barriers and paradigms

Cultural barriers ...

…are anchored in our thoughts and

behavior
…(paradigms)

We have always done it this way!!

New ideas mean more work!

•Senior management necessary.

•Takes time.

Day 2: Process Improvement | Neil Conlan

 Examples of Process Barriers

Process barriers prevent a process from being efficient

 production planning
 unclear strategy
 Interface between areas
 communication / transportation
 Poor quality
 testing rather than solving faults
 Work organization & standards
 bottlenecks & uneven work distribution

• Middle management necessary.

• Takes energy.

Day 2: Process Improvement | Neil Conlan

 Physical Barriers and Causes

Physical barriers ...

The Nike Mentality
“Just Do It”

Where there is a will there is a way!

• Specialist involved necessary

• Takes money

Day 2: Process Improvement | Neil Conlan

 Identifying and assessing barriers

Identify the barriers within your process

Make a list of all the barriers!

 Brainstorming :

 "What keeps us from getting from

current state to ideal state?"
Assessment of impact, and of how difficult to remove

Put the barriers down in the assessment chart!

Day 2: Process Improvement | Neil Conlan

 Form: Barrier list

No. Influence Type Barrier Impact Degree of

difficulty
To
Quality
Costs

Physical

Process

Cultural
Time

change
 Form: barrier list (0 – 10) (0 – 10)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Day 2: Process Improvement | Neil Conlan

 Assessment chart
Difficulty
of removal
great 10
 Assessment
9 chart
8

2
Low hanging
1
fruit
small
0
0 1 2 3 4 5 6 7 8 9 10
small great
Impact on production time and quality
Day 2: Process Improvement | Neil Conlan
 Form: Barrier list

Day 2: Process Improvement | Neil Conlan

 Assessment chart

Day 2: Process Improvement | Neil Conlan

 Task

1. Use the questionnaire to collect the information from each of the

workers at the different stations. (Please use the form given)

2. Create a Barrier list and evaluate the impact. (Please use the
forms)

3. Identify the Low Hanging Fruit and plot on the LHF assessment
chart.

4. Create a new layout of the factory on the pin board or flipchart that
improves the factory to meet and defeat the barriers you uncovered
with your research.

5. Present your results to the owners and then once you have the OK;
build your newly designed factory.

Day 2: Process Improvement | Neil Conlan

 The Ballpoint Pen Factory
- BSC Cost Guidelines –

Process Management
SIEMENS TECHNIK AKADEMIE

Day 2: BSC Costing Guidelines | Neil Conlan

 Balanced Score Card

Customer Satisfaction
100 %

€ 50.00 60 seconds
Process: (seconds
0 seconds
per pen)
Financial Profit

100 %
Employee Satisfaction

Day 2: BSC Costing Guidelines | Neil Conlan 2

 Production Costs

Material costs: € 0.50 each pen

Labor costs: € 11.00 per hour (per worker)
Packaging: € 0.50 paper bag (10 pens/bag)

Overhead costs: € 1.00 per pen produced

Storage costs: € 0.10 per pen per minute

Day 2: BSC Costing Guidelines | Neil Conlan 3

 Cost Analysis for Pricing

Example:
eg:100 pieces / 9 employees / 54 minutes duration,
calculation: 100 pieces x € 0.50
9 employees x 54 min x € 0.1833/min
100 pieces x € 1.00

€ 50.00 materials
€ 89.08 wages
€ 100.00 running costs
€ 239.08 basic costs
€ 31.08 13% profit
€ 270.16 bottom line / 100 pieces
€ 2.70 price per pen
+ respective packaging per order

Day 2: BSC Costing Guidelines | Neil Conlan 4

 Balanced Score Card

Customer Satisfaction
100 %

€ 50.00 60 seconds
Process: (seconds
0 seconds
per pen)
Financial Profit

___ Current Situation

----- Target Situation

100 %
Employee Satisfaction

Day 2: BSC Costing Guidelines | Neil Conlan 5

 The Ballpoint Pen Factory

- KAIZEN /
Continuous Improvement Process
(CIP)

Process Management
SIEMENS TECHNIK AKADEMIE

Day 3: KAIZEN | Neil Conlan

 What is KAIZEN?

KAIZEN or continuous process improvement means:

Using the abilities of all employees in order to

continually improve the business processes
according to company objectives.

Day 3: KAIZEN | Neil Conlan 2

 Principles of KAIZEN

• Improve and maintain!

• Communication and team work overcome barriers
(Employee orientation)
• Every employee is responsible for his / her work
(Quality orientation)
• All processes are oriented at the customer
(Process and outcome orientation)
• Every step in the process is customer and supplier
(Customer-supplier relation)
• Key performance indicators and target values lead to structured process
improvement
(Data orientation)

Day 3: KAIZEN | Neil Conlan 3

 Improve and maintain

Productivity

Stabilizing innovations
With KAIZEN

Innovation
Innovation
Innovation

Improvements only
through innovation

Time

Day 3: KAIZEN | Neil Conlan 4

 Prerequisites of KAIZEN:
The ten basic rules of KAIZEN
1 There are no holy cows in KAIZEN!

2 The term “Not possible!” does not exist!

3 Know and control your processes!

4 Do not search for culprits, search for solutions!

5 Reveal problems, solve them and sustain it!

6 An implemented 70% solution is better than the hardly achievable 100%

7 Fight failures where they occur!

8 Think simply!

9 A team solves the problem better than a single person!

10 There is no end to KAIZEN!

Day 3: KAIZEN | Neil Conlan 5

 Objectives of KAIZEN

The basic objective is to eliminate avoidable waste and to increase

the proportion of value adding activities.

non-
non- Added value avoidable
avoidable waste
waste

KAIZEN

avoidable
waste Added value
avoidable
waste

Day 3: KAIZEN | Neil Conlan 6

 Methods of KAIZEN

•5 S’s

• 5x Why

•7 wastes (Mudas)

Day 3: KAIZEN | Neil Conlan 7

 KAIZEN Methods:
The 5-S-Method

The 5 S’s for organizing the work place

1. „Seiri“ – Sort out unnecessary things!

2. „Seiton“ – Set everything in order!

3. „Seiso“ – Shine: Keep your work place clean!

4. „Seiketsu“ – Standardize!

5. „Shitsuke“ – Sustain all points and continually improve them !

Day 3: KAIZEN | Neil Conlan 8

 5-S example:
Shop floor

before workshop after workshop

PIC00020.JPG continually improved

Day 3: KAIZEN | Neil Conlan 9

 KAIZEN Methods:
The 5-W - Method

Analyze the problem by asking 5x “Why”? :

Why?
Why?
Why?
Why?
Why?

Finding the real causes of the problem!

Day 3: KAIZEN | Neil Conlan 10

 KAIZEN Methods:
The 5-W - Method
This example of a welding robot stopping in the middle of its operation is used to demonstrate the
usefulness of this method, finally arriving at the root cause of the problem through persistent
enquiry:

1. "Why did the robot stop?"

The circuit was overloaded, causing a fuse to blow.

2. "Why was the circuit overloaded?"

There was insufficient lubrication on the bearings, so they locked up.

3. "Why was there insufficient lubrication on the bearings?"

The oil pump on the robot is not circulating sufficient oil.

4. "Why was the pump not circulating sufficient oil?"

The pump intake is clogged with metal shavings.

5. "Why was the intake clogged with metal shavings?"

Because there is no filter on the pump.

Got It !!!
Day 3: KAIZEN | Neil Conlan 11
 KAIZEN Methods:
The 7 Wastes (Mudas) in Manufacturing
• Origin: Lean Manufacturing as the core of the Toyota Production System
• Everything that is not added value must be considered as waste!

Defects Overproduction

Unnecessary /
Waiting
excess motion
The 7 wastes
in manufacturing

Unnecessary
Transporting
inventory

Inappropriate
processing

Day 3: KAIZEN | Neil Conlan 12

 KAIZEN Methods:
The 7 Wastes (Mudas) in Administration

Mistakes Duplication

Processing Transporting
The 7 wastes
in administration

Inventory Waiting

Processing /
searching time

Day 3: KAIZEN | Neil Conlan 13

 Confronting problems

Welcome problems!

Problems are treasures!

Where no problems are determined; No improvements can take place.

Do it. Now!
Nothing is so good that it can not be improved!

Day 3: KAIZEN | Neil Conlan 14