How to Become Lean

Transcription

How to Become Lean
How
to
Become
Lean
&
Green
Challenges to the Ship Repair Industry
A Presentation to HKIEHKIE-MMNC on Nov 11, 2011
By Dr. Mike Ho Ming Chan ([email protected])
Pressing Issues and Questions
How can the ship repair industry stay
competitive?
How can you meet the demands
for Speed
f
for
Q
Quality
lit
for Environmental Compliances
and offer lower prices?
Basic Principles
1. Hear the Voice of the Customer
2. Integrate the Customer Needs
3 Focus on Meeting these Needs
3.
Facts
For the last 10 y
years China has been
a leading ship repair centre
Cheaper prices from nearby places
h
have
led
l d to
t many generall repair
i
contracts being
g placed
p
outside China
Facts
More new ships will be launched in
the next 5 years than past 20 years
More old ships will be disposed
with
ith less
l
demand
d
d for
f
general ship repair
Less Demand for Ship
p Repair
p
Facts
The industry needs to compete in
Price,, Technology
gy & Services
It needs to be better than
the competitors in
the region
Global Concerns
Global Concerns
Hong Kong International Convention
for the Safe and Environmentally Sound
Recycling of Ships ( 2009 )
Guidelines for the development of the
Inventory of Hazardous Materials
Guidelines for the development of the
Ship Recycling Plan (2011 )
Facts
acts
Environmental and social issues
are required to be addressed
for staying in the market
Pressing Issues and Question
The ship repair industry
needs
d to
t become
b
“ Lean & Green “
But how ?
What is Lean
Lean Operation refers to meeting
customers expectations by
delivering quality products
and services at the least
cost when
h the
h customer
wants them
What is Lean
AL
Lean O
Operating
ti System
S t
focus
f
on
customer requirements and
- flexible / adaptable business approaches
- synchronized
y
flow and p
pull operations
p
- eliminating waste and adding value
- built in quality with design
- workforce empowerment
- continuous
ti
improvement
i
t
M
Many
Lean
L
Tools
T l are Available:
A il bl
- 5 S and Visual Management
- DMAIC (Six Sigma)
- Mistake Proofing (Poka Yoke)
- Continuous Flow Production
- Pre Production Planning
- Cellular
C ll l Manufacture
M
f
g
- Value Stream Mapping
- Total Cycle Time
- Just In Time
What is Green
Green Operation refers to managing
environmental impacts and improving
overall performance of handling
- regulatory environmental responsibilities
- un
un--regulatory environmental risks
- resources conservation
gy efficiency
y
- energy
What is Green
AG
Green O
Operation
ti typically
t i ll employs
l
an
Environmental Management System
(EMS) which focus on:
- improving organizational performance
- reducing environmental impacts
- adaptable business approaches
- workforce empowerment
- continuous
ti
improvement
i
t
EMS is Well Defined
EMS is an established framework based on
q
of ISO 14001
the requirements
It integrates the scope of environmental
considerations and continuous
process of checking to make
sure environmental goals
are met
Differences
e e ces
EMS:
-A
system
t
ffocused
d
on environmental compliances
- Eliminate environmental
impacts and risks
- Focus on cost
cost--effectively manage
environmental risks and impacts
p
- Focus on improvement
in environmental performance
and showing to the public
- Use defined tools and tactical
methodologies for environmental
compliance
Lean Operation:
-Ap
production
oduct o system
syste focused
ocused o
on
operational tactics and
practical tools
- Eliminate non value added
activities
- Focus on business
competitiveness and customer
expectations
- Focus on improvement in cost/
ti /
time/responsiveness/quality
i
/
lit
- Use defined tools and tactical
methodologies for process
improvement
Si il iti
Similarities
EMS:
Lean Operation:
- A road map by which a
company can meet its goal
- A continuous
improvement process
- Employee
E
l
involved
i
l d
in problem solving
- Empowerment of
decision making
- A human based
corporate culture
- A road map by which a
company can meet its goal
- A continuous
improvement process
- Employee
E
l
involved
i
l d
in problem solving
- Empowerment of
decision making
- A human based
corporate culture
Lean Operation
and
En ironmental Management S
Environmental
System
stem
are
highly complimentary
Changing to Lean and Green
requires
i
a
Systematic Approach
To Become
Lean & Green
the Ship Repair Industry
N d
Needs
A
C lt
Cultural
l Change
Ch
A Survey by FORTUNE Magazine
Business Leaders Failed
- Not for lack of abilities
- Not for lack of resources
- Not for being evil
Main Reasons of Failure
- Lack of “ Vision “
- Lack of “ Focus”
Either they do not see the problems…
or they
y know there are p
problems…
but do not focus on making the Change
Focus on Change
“F
“Focus”
” means
You cannot do all things
However
with you and your associates
being on the same page…
page
You can do GREAT things
g
Focus on Cultural Change
g
It requires
i
the
th Top
T Level
L
l Decision
D i i
and a Systematic Approach
to implement a
Cultural Change
Characteristic of Corporate
p
Cultures
C
Corporations
ti
are organic
i entities
titi
They act a lot like living organisms
They have systems
Corporations evolve cultures from
P
Personality
lit & character
h
t off leaders
l d
History
y
Experience
Environment
Characteristic of Corporate Cultures
Cultures evolve from collective experiences
related to some significant events with
cultural values and behavior pattern
Changes trigger strong emotional responses
Cultural Change requires a
Change Methodology
The Four Levels of Change
R ti
Rational
l/
Conscious
Emotional /
Sub--Conscious
Sub
Decision
to
change
Process
Change
Cultural Change
People Behavior Change
Left
L ft
Brain
Right
Brain
Process Performance Enhancement
(PPE) Approach
PPE works with processes
Everything is a process
P
Processes
can be
b mapped,
d
measured and improved
p
Processes are cross companies
and cross functions
Improving Processes lead to
Performance Enhancement
A Systematic Approach to Change
C
Concept
t – Process
P
- Culture
C lt
- Behavior
B h i
PPE enables changes in
concept of leadership
management functions
employee empowerment
organization of work
optimization of resources
corporate culture
people
peop
e be
behavior
a o
Ch
Change
ffrom a F
Functional
ti
l View
Vi
off Business
B i
to a Process View of Business
Traditional Culture
-People understand only
the functions in which
they work
-Other
functions
are
competitors
-Reliance on Individual
Experts
-Functional goal isolated
from other functions
Process View Culture
-People understand the
big
g p
picture and the other
functions
-Other
functions
are
partners
-Inter dependence on Cross
Functional Experts
-Common goal such as on
y and high
g
time delivery
quality at lower cost
Example
p of Isolated Functions
Sales &
Marketing
Quality &
Environmental
Compliance
Materials
Procurement
Design
&
Engineering
Production
&
Inspection
All Functions Belong to One Process
S l &
Sales
Marketing
Quality &
Environmental
Compliance
Materials
Procurement
A Ship
p Repair
p
Process
Design &
Engineering
Production &
Inspection
A Connected Process
Sales &
Marketing
Quality &
Environmental
Compliance
Materials
Procurement
A Coordinated Process
Design &
Engineering
Production
& Inspection
Systematic Approach of Change
7
Continuous Improvement
Feedback and Adjustment
5
4
Implementation
Plan for Improvement
p
Fact Finding and Analysis
2
1
Acceptance of Need / Opportunity
Recognition of Need / Opportunity
Management of Change
7
Reward and reinforce positive actions
Create acceptance and support
5
4
Make changes in tasks and processes
Identify
y new and effective behaviors
Minimize expressed resistance to change
2
1
Make people realize the need for change
Establish relationship with people
Triangle of Improvement
People
Continuous
Improvement
Performance
Vision
Where are you currently operating?
Where do you want to be operating?
What are the roadblocks slowing down
your progress?
How can you remove the roadblocks?
What will be the Return on Investment?
Is it worth the effort?
Identify
y The Performance Gap
p
What Do You Need To Get
Where Do You Want To Be
From Where You Are
The Other Side of the gap
Baseline
Performance
Vision
Strategy
Objectives
Initiatives
Resources
Entitled
Performance
Road Blocks
Culture Gap
Mindset Blocks
Concept Gap
Skill Blocks
Techno Gap
Personal Block
Vision Realized
Strategy Executed
Objectives Achieved
Initiatives Executed
Continuous
Improvement
Focus
How do I change the operation to
L
Lean?
?
What results do I want to obtain?
How do I change the operation to
Green?
What results do I want to obtain?
Bridging the Gap
Baseline
Performance
High Cost
Low Quality
Late Delivery
Fi Fighting
Fire
Fi hti
No Feedback
Over Budget
g
Unhappy
Customers
Unhappy
Workers
Continuous Adjustment
Continuous Improvement
Lean Operation
p
Environment Management
System
Operational Innovation
Use Lean Tools
Manage
g Environmental Risks
Remove Roadblocks
Worker Empowerment
Change from a F
Functional
nctional Vie
View
of Business to a Process View
of Business
Entitled
P f
Performance
Controlled Cost
Executed Target
First Pass Yield
On time Delivery
Planned Production
Empowered Worker
Safe & Healthy
Environment
Friendly & Happy
Workers
Bridging
g g the Performance Gap
Results
s
Entitlement
((Lean & Green))
(Stay Competitive)
Performance Gap
Baseline
(Where you are now)
((Threatened))
Time
Make
th
the
Change
Make
It
Happen

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