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This presentation lets you know about the factor of operational excellence and how it helps your organisation to have a continuous improvement. It makes you aware of the time when you need to concern with operational excellence, the right time to address it. So let your organisation be at competitive world for long with operational excellence.

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Get continuous improvement with operational excellence

Continuous Improvement with Operational Excellence

Create Standard Work for Flow Easily with Operational Excellence


Operational excellence

OperationalExcellence

Systematic management of all the processes toachieve world class performanceby:

Efficient utilization oftools

Optimization ofResources

Elimination of process waste /inefficiencies

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Let Your Organization Be at Competitive World for Long


Lack of operational excellence

Lack of operational Excellence…

Resultsin

low profitability andcash

flowissues

When do you addressit?

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Operational excellence becomes a concern w hen

Operational Excellence Becomes aConcern when…

  • Cash flow starts to get a littletight

    • Trouble meetingpayroll

    • Suppliers are screaming forpayments

    • Inventory is out ofcontrol

    • Expenses are rising faster thanrevenue

  • Backlog starts toshrink

  • Opportunities are missed due to cash flowissues

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Get continuous improvement with operational excellence

  • Improving Profitability – TraditionalApproach

  • CFO/Department Head is responsible tolead

  • the cost cuttingefforts

  • Focus usually is on cuttingexpenses

Reduce EmployeePerks



Workforce Reduction

Extend PaymentTerms

Scrutinize Purchasing

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Performance improvement strategic approach

Performance Improvement: StrategicApproach

Generate Ideasto achieve a better level ofoutput

measure the current levelof performance

identifywaste

Performance improvement is allabout

organizationalchange

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Get continuous improvement with operational excellence

  • Ideas Shouldbe…

  • Effective

  • Efficient,and

  • Adhere toMarket Forces

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Get continuous improvement with operational excellence

How to Generate The Ideas

Value StreamMapping

Eliminate Waste

$

Increase Profits

VisualizeYour Processes

  • Lean: A business system for organizing and managing product development, operations, suppliers, and customer relations to create precise customer value—goods and services with higher quality and fewer defects—withless human effort, less space, less capital, and less time than the traditional system of mass production.

  • Value Stream Mapping is a Lean technique used to analyze the flow of materials and information currently required to bring aproduct or service to aconsumer.

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Purpose of value stream mapping

Purpose of Value StreamMapping

  • Identify processes where “Lean” techniques canbe applied

  • Help reduce / eliminate waittime

  • Eliminate processwaste

  • Reduce production cycle and processingtime

  • Understand process linkages anddependencies

  • Create the basis for “Lean” implementationplan

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Value stream mapping case study

Value Stream Mapping – CaseStudy

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Business case

BusinessCase

ProblemStatement

Losing Business to competitors dueto

long lead times and latedeliveries.

Solution

Improve lead time performance by synchronizing production with customer demand.

KeyRequirements

  • IdealState

  • On-Demand

  • DefectFree

  • •1-By-1

  • LowestCost

Reduce flow time to meetcustomer demand.

Reduce RAW, WIP and FGIlevels.

Measurements

Total flowtime

Inventorylevels

EBITperformance.

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Value stream map current process

Value Stream Map – CurrentProcess

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Team brain storming session

Team Brain StormingSession

  • Can Customer increase the size of the blanket order and provide us with a longer term forecastvisibility?

  • Can we flow the demand down to the supplier with a longer termvisibility?

  • How can we reduce waittime?

  • How can we reduce change overtime?

  • Can we reduce lotsize?

  • Can we merge production processes to reduce travel time?

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Value stream map future process

Value Stream Map- FutureProcess

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Strategy implementation check list

Strategy Implementation CheckList

  • People

Do

Plan

  • Product

  • Systems

Act

Check

  • Processes

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Next step

NextStep

  • How would you apply Value Stream Mapping intoyour

  • Business?

    • Share the business challenge with your keystaff.

    • Define businesscase

    • Define a high level businessprocess

    • Define activities for each business process including waittime.

    • Randomly pick a minimum of 5 current jobs and record all activities and time. From the initial customer call to receipt of payment for the goods orservices.

    • Map the process – this is your current value streammap

    • Categorize each activity as value added or non valueadded

    • Define a map eliminating as many of the non valueadded

  • activities – now you have a first draft of the futurestate

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Next step1

NextStep

  • StrategicPricing

  • Set the pricewhich is easily accessible to mass ofbuyers

  • UsePricing

  • CorridorTool

  • Adoption

  • Create aconsensus

  • Address adoption hurdles in actualizing the strategy

  • BalanceScorecard

  • Identify Initiative

  • Does your product offer exceptional Buyerutility?

  • Use BuyerUtility Map

  • Align Operations

  • Set TargetProfit

  • Come upwith

  • TargetCost

  • StreamlineCost Innovation

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