Operational Excellence foundations

What is Operational Excellence?

Simply put, it is better, faster, and cheaper. Better. 

Better quality of products and services, better processes, better user experience, and better value. Better in whatever's relevant and important.

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Key Concepts and Tools

• Process Stakeholders and SIPOC
• VOC, CTQ, and metrics
• Kano Model
• Variation
• Quality is assured at the source.
• Error Proofing or Poka-Yoke
• Lean Principles
• Process Mapping
• FMEA
• Control Plan

Implementing Operational Excellence

Alignment of all employees

Choose the right methodology

Audits to sustain Operational Excellence

Lean Day 3

VSM in the Service environment

Case study: Medical billing company wants to improve the utilization of employees and improve their resolution time of the claims.

Step 1: Write down the Process Steps (As-Is)

Step 2: Enter the PR (effort) for each step and capture the no. of outstanding req. at each stage.

Step 3: Note the Agents and Waiting Time at each stage.

Step 4: Enter the Individual and Summary table.

Step 5: Kaizen Burst (identify the improvement)

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3 Step approach to reduce NVA in the Service industry:

Eliminate > Improve> Automate

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Create Flow and Respond to Pull

Create flow:

Value Stream Design (VSD).

Single Piece Flow

SMED 

Line Balancing

Respond to Pull:

Kanban

Just-In-Time (JIT)

Heijunka (Production leveling)

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Additional Lean Tools

Spaghetti Diagram

TPM (Total Productive Maintainance)

OEE (Overall Equipment Effectiveness)

OEE 6 big losses

ANDON

Visual Factory

Visual management

Gemba

Hoshin Kenri (Policy Deployment)

Cellular Manufacturing

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LEAN Ends

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Lean Day 2

Principles of Lean

1. Identify Customers and Specify Value   (Customer Value Checklist)

2. Map the Value Stream                             (VSM As-Is )

3. Create Flow

4. Respond to Pull

5. Pursue Perfection

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VSM terminologies

CT (Cycle Time)                = Actual Process Time + In-built delay time.

TPT (Throughput time)     = CT + Queue Time+ Move Time+ Inspection Time + Waiting

FPY (First Pass Yield)        = Total good output / Total Input

RTY (Rolled ThruPut Yield) =  FPY (Process 1) x FPY (Process 2) .......... x FPY (Process N)

LT (Lead Time)                     =  Customer IN  to Customer OUT time.

Change Over time (CO)        = Time taken to change over from one type to another type.

WIP  (Work In Progress)        = Time when Work Started but not completed yet.

Customer Takt time                = Total available working time / Customer demand (# of units).

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VA, NVA, and BVA

Process Efficiency (PE)  = VA x 100 / VA + NVA

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VSM:

Steps in Value Stream Mapping:

0. Select product family (choose the product family as per Customer Takt time requirement)
1. Collect customer information (product family, volume, delivery frequency).
2. Tour the plant to identify & map the sequence of the main process.
3. Draw supplier information, collect data for critical parts, map the process flow
4. Draw information flow (Production schedule, communication system, interaction, ordering forecast)
5.Start collecting data from the last process in the sequence & fill out the data boxes, count inventory & map inventory locations.
6. Draw material flow & process interaction (Push, Pull, etc.)
7. Calculate Value Added, Non-Value Added, Process Efficiency.
8. Analyze each activity.
9. Identify Kaizen points

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