AUnifiedApproachtoLeanTransationDiagnosti.ppt

1、A Unified Approach to Lean Transformation Diagnostics,This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organisation without prior written approval from McKinsey it is not a complete record of the discuss

2、ion.,April 2002,Copyright 2002,Version 1.0,McKinsey Manufacturing Practise and Production Systems Design Centre,Engagement/Client Directors Summary,A diagnostic should identify the performance gap in a value stream/streams and educate a client how to close it A full diagnostic should form part of a

3、structured change program and lead to a client-owned Tactical Implementation Plan 20 days should be planned for a typical MMP/PSDC diagnostic (this may vary according to the types of question/problem) At least one MMP/PSDC specialist should be used in performing a diagnostic Reasonable resourcing sh

4、ould be secured through MMP/PSDC staffing The focus of the diagnostic must be clear from the outset A variety of tools exist for diagnostics purposes, of which the MIFA is the most powerful,OBJECTIVES,Integrate existing diagnostic tools in to a single unified and effective diagnostics framework Comb

5、ine best practise diagnostic approaches to allow you to get to the heart of your clients problems quickly Highlight existing diagnostics tools and how best to apply them,This pack aims to.,DOCUMENT CONTEXT,A unified diagnostic framework Getting the most from the framework Diagnostic tools Agree with

6、 the client and ED what client issue(s) you are trying to address Understand the complexity and urgency of the issue(s) Identify what resources both firm and client you are likely to have available Get as much relevant information Limited time Limited resources and lots to do ,IDENTIFY THE KEY BUSIN

7、ESS ISSUE,Source: McKinsey Production Systems Design Centre,The business issues need to be understood and consensus built. The linkage of the business issues to operational issues should be established.,Warranty costs Scrap Rework Productivity Capital Employed WIP Waste removal, control indicate tha

8、t the discussion was valuable Send thank-you note within 48 hours,Listen to remember Synthesize information into key words Devise metaphoric associations Listen to distinguish valuable digressions from time-wasting ones Listen for what was not said Pick up on non-verbal clues Integrate message for t

9、otal meaning Summarize and check back Synthesize and check back,MIFA,Source: McKinsey & Company,A material and information flow analysis helps visualise wastes,Provides framework for conversations Ties entire production process together Prevents focusing on large improvement opportunities with littl

10、e impact Creates framework for designing complete system Demonstrates interaction between information and material flow Clear concise method to discuss how operation functions and how it should function,Example,Purpose,Where do I find more information? PDNet ? type the document title in here,First l

11、ine of support,Second line of support,ProblemStatement Worksheet,Basic question to be resolved,LOGIC TREE,When key levers have been identified, logic trees can be used to structure the data,Issue tree,Hypothesis-driven tree,LOGIC TREES,Logic trees are also a means of structuring issues or arguments,

12、Customer Demand,Customer Satisfaction,Manufacturing Process,IDENTIFYING THE KEY LEVERS,Input process and output indicators are valuable sources of information,Input,Output,Process,1. OVERALL SALES,2. MONTHLY DEMAND,3. WEEKLY/DAILY DEMAND,Source: McKinsey Production Systems Design Centre,Effects of s

13、easonality Expected growth Stability of demand End of month peaks Self induced peaks Unexpected troughs Weekly peaks Delivery variability Demand management,CUSTOMER DEMAND (1/2),Indicator,Example,Shows,Input indicators highlight what the manufacturing process must cope with,4. FORECAST,5. SEGMENTATI

14、ON,6. ORDER VARIATION,Source: McKinsey Production Systems Design Centre,Expected growth Product expansion Sales initiatives Product segmentation Customer segmentation Process segmentation Core customers Order size variation Order frequency variation,CUSTOMER DEMAND (2/2),Indicator,Example,Shows,Sour

15、ce: McKinsey Production Systems Design Centre,Overall waste levels Wasted time Poor layout Levels of standardisation Cycle time variation Leadtime variation Responsiveness to demand changes Flexible manpower levels Effects on delivery to market,PROCESS,Process metrics highlight the ability of manufa

16、cturing to cope with variability in the inputs,WASTE,VARIABILITY,INFLEXIBILITY,Indicator,Example,Shows,Source: McKinsey Production Systems Design Centre,Activity sampling can be applied in any manufacturing environment where humans intervene. It aims to establish a rough cut estimate of the level of

17、 waste in an area. It does this by recording the discrete number of people observed adding/not adding value.,ACTIVITY SAMPLING,Activity sampling is a quick tool for uncovering waste, variability & flexibility issues,Example,Application,Where do I find more information? PDNet ? type the document titl

18、e in here,Source: McKinsey Production Systems Design Centre,LEAN ASSESSMENT RADAR CHART,The lean EPR is a qualitatively assessment of organisational capabilities and systems.,The lean EPR is a questionnaire based tool that highlights a performance gap between the current and notional leanest perform

19、ance levels. An expert is generally needed to conduct this. It shows the parts of the system that are weakest overall.,Example,Application,Where do I find more information? PDNet ? type the document title in here,Source: 1 day maintenance diagnostic - PDNet,The capability radar chart aims to identif

20、y the gap between actual and required levels of organisational capability.,All manufacturing environments It shows the performance gap at a variety of hierarchical levels. It shows the parts of the system that are weakest overall.,CAPABILITY RADAR CHART,Example,Application,Where do I find more infor

21、mation? PDNet ? type the document title in here,Source: Client Capability Assessment - PDNet,Radars can also show weaknesses in specific functions.,This radar applies in areas that are heavily reliant upon maintenance activities. Largely, its aims are the same as the lean EPR. It should focus on bot

22、tleneck machines and processes.,MAINTENANCE RADAR CHART,Example,Application,Where do I find more information? PDNet ? type the document title in here,Source: McKinsey Production Systems Design Centre,OVERALL EQUIPMENT EFFECTIVENESS (OEE),OEE is critical for identifying key focus areas for improvemen

23、t is machine/mechanised environments.,Example,Application,The OEE chart highlights the effect of the six big losses on critical machinery Breakdowns Changeovers Unplanned stoppages Speed losses Quality defects Spoilage The chart shows the resultant value added time the machinery spends creating prod

24、ucts. OEE recording should be implemented where bottlenecks are machines or mechanised/automated processes.,Where do I find more information? PDNet ? type the document title in here,Source: McKinsey Production Systems Design Centre,WORK BALANCE,Work balance charts help visualise the imbalance of wor

25、k content in a line. This imbalance drives the waste of over production and waiting.,The work balance chart is important for sequential assembly lines. It highlights the relative quantity of work between process steps or work stations.,Example,Application,Where do I find more information? PDNet ? ty

26、pe the document title in here,PARTS PER MILLION,DELIVERY DEFECTS,CUSTOMER SATISFACTION,Source: McKinsey Production Systems Design Centre,A review of operations KPIs will provide insight to the effect of poor system design.,QUALITY & SERVICE KPIs (OUTPUT),Indicator,Example,Shows,Topics of complaints

27、Service issues Improvement potential Manufacturing defects Transportation defects Defective recurrences Product quality Component quality Supplier quality,PRODUCTIVITY,OVERTIME,INVENTORY,Source: McKinsey Production Systems Design Centre,Poor system design may also drive cost levers.,COST KPIs,Indica

28、tor,Example,Shows,Current unit cost Recent cost reductions Recent cost escalations Current stock levels Just in case stock Impact potential Controlled overtime Overtime trends Employee reliance,OTIF,LEADTIME,STOCK TURNS,Source: McKinsey Production Systems Design Centre,Poor delivery performance is a

29、 further likely impact of inadequate systems design.,DELIVERY KPIs,Indicator,Example,Shows,Delivery performance Product stock outs Delivery improvements Manufacturing leadtime Waste in the information flow Percentage value added time Days of stock Overall stock levels Redundant stock,Source: McKinse

30、y Production Systems Design Centre,FUTURE MIFA,A future-state MIFA is a means of creating a vision of the manufacturing system based on 7 steps.,Example,7 step process,Where do I find more information? PDNet ? type the document title in here,2. Continuous Flow Processing,3. Material Flow - shopstock

31、s,4. Pull System: Real Demand,5. Control: Artificial Demand,6. Levelling,7. Target Further Improvements,- What are the customer requirements?,- What prevents continuous flow?,- How will material flow to the customer?,- How is customer demand communicated?,- How is demand communicated upstream?,- Is

32、levelling required? Where & how?,- Where should improvements be targeted?,1. Takt Time & Customer Requirements,* Typically, about 10% of people will support,10% resist and 80% will be indifferent,STAKEHOLDER ASSESSMENT,Stakeholder assessments help to identify who will be supportive, resistive or ind

33、ifferent to the change initiative.,Example,Application,Where do I find more information? PDNet ? type the document title in here,Target activities to build client support Target activities to support change management Target activities to build client capability & confidence,TACTICAL IMPLEMENTATION

34、PLAN,A tactical implementation plan is a management tool for planning, reviewing and communicating the activities required to achieve the future state.,Identify the value stream loops. Decide which KPIs to measure. List actions required to achieve KPI target. Plan communication and involvement strat

35、egy. Identify owner for each workstream. Assign responsibility for each task. Establish the appropriate review forum. Create level 0 TIP and detailed level 2 TIPs. Have all TIPS agreed and signed.,Example,9 step process,Where do I find more information? PDNet ? type the document title in here,Govern

36、ing thought,A,B,C,1,3,5,2,4,7,6,a,b,c,d,PYRAMID TREE,From pyramid to document structure,STORYBOARD,From pyramid to storyboard,Level of,abstraction,Things to check,Sample questions a manager should ask,Facts,Quality of data sources,Reasonable assumptions,Clear and organized backup,and work sheets,Is this demand profile typ