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Is this for you?
If at least one of the above problems sound familiar, there may be a solution from applying Process Improvement/Lean concepts to your business. Don’t assume that this applies to only high volume parts production… nor to only manufacturing operations. By conducting a Process Improvement/Lean Assessment, you’ll find out one way or another whether these techniques have any payback for your company. ASSESSMENT DELIVERABLES 1. Find out which areas in your operation can realize improvements from applying Process Improvement/Lean (in the areas of productivity, product/service quality, etc.) 2. Identify what the financial impact would be from the improvements 3. Find out what the Process Improvement/Lean Program will cost, the steps involved, and what’s the payback 4. Get answers to your questions about Process Improvement/Lean Concepts and if it can be used in your business 5. Your business processes receive a minimum of 4 days of Process Improvement/Lean analysis/assessment (1 day offsite + 3 days onsite for companies with less 100 employees, 5 days onsite for larger organizations) WHAT’S THE COST? The cost depends on the # of employees in your company, but… If you decide to proceed with the Process Improvement/Lean Implementation Plan that is developed, the cost of the Assessment will be credited back to you during the implementation phase. Why are we pricing it this way? …because we want to make it easier for you to decide whether Process Improvement/Lean has any benefit for your company. I believe strongly that the simple techniques used in this approach can apply to almost any size company, in virtually all industries, for both product and service operations… and that companies have resisted because they either don’t understand what’s involved, don’t think it applies to them, or are afraid of the costs to do it. For instance… Did you know that you are not applying Process Improvement/Lean properly if you:
In fact, if you are doing Process Improvement/Lean properly, you should be mothballing your MRP scheduling system; with no need for any capital outlay; with less people; with extra floor space; with less money tied up in inventory; with just-in-time and just-enough training (and with training for everyone only if you want all your employees to know what Process Improvement/Lean is about and how it will affect them); and with all the costs of the program being easily financed through savings achieved during the implementation itself. That’s why I developed this Process Improvement/Lean Assessment service and priced it for maximum value with minimum risk, so you can find out first-hand about what Process Improvement/Lean is and whether it has any benefits for your business. To take the next step and get started, simply send me an email with some background information on your company and your current exposure to Process Improvement/Lean, and I’ll get back to you on the cost to do an Assessment.
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PROCESS IMPROVEMENT/LEAN ASSESSMENT: Description PART 1 (Offsite - 1 day) a) Qualitative: Obtain/review background information on your organization, products & services, markets/customers, # of employees b) Quantitative: Obtain/review past years Process Performance data; Productivity data; WIP data; Error/Rework/Defect/Scrap/Warranty/Customer Credit data PART 2 (Onsite – ½ day to 1 day) Complete a Product/Service Mix Analysis: a) Develop and analyze product/service/process matrix b) Determine product/service families or categories: By product/service type; By Industry; By Customer; By similar processing steps c) Identify a distinct Value Stream for conducting the assessment PART 3 (Onsite – 1 day to 2 days) Analyze the Value Stream: a) Develop a process flow diagram b) Identify volume/process step relationships c) Create a Value Stream Map for the current condition PART 4 (Onsite - ½ day to 1 day) Identify the Potential Savings: a) Determine product/service cycle time b) Establish Takt time – Based on demand; available working time c) Determine number of employees required to meet demand – cycle time; Takt time d) Compare to existing condition and calculate impact on productivity – as a %; as $$ e) Identify current WIP; Determine minimum WIP required to maintain flow f) Calculate impact on WIP – as a %; as $$ g) Determine current internal error/rework/defect/scrap rate; Calculate impact if a “zero defects accepted” philosophy is introduced – as a %; as $$ PART 5 (Onsite – 1 day) Prepare a cost benefit analysis: a) Calculate Lean $$ benefits – Based on improvements in productivity; WIP; quality b) Calculate Process Improvement/Lean implementation costs – Based on external facilitation; employee training c) Determine % of Costs to Benefits – eg. If Costs = $125K and Benefits = $500K, then 25%
d) Determine feasibility of launching a Process Improvement/Lean Program to achieve $$ Benefits at a Cost < 25% e) If launch criteria met (ie Costs < 25% of $$ Benefits), prepare Process Improvement/Lean Implementation Plan proposal for Mgmt Team f) Presentation of assessment findings to Mgmt g) If applicable (i.e. launch criteria met), present Process Improvement/Lean Implementation Plan and seek approval to proceed (Rev. 4) NOTE: Total time involved ranges from 3 to 5 days, depending on the size of your company.
Want your Process Improvement/Lean Assessment customized? No problem. Just call me or send me a note and let me know what you've got in mind.
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