Se ha denunciado esta presentación.
Utilizamos tu perfil de LinkedIn y tus datos de actividad para personalizar los anuncios y mostrarte publicidad más relevante. Puedes cambiar tus preferencias de publicidad en cualquier momento.

Anand dossier 2

281 visualizaciones

Publicado el

How I solved the challenges faced by client

Publicado en: Liderazgo y gestión
  • Sé el primero en comentar

  • Sé el primero en recomendar esto

Anand dossier 2

  1. 1. Anand Subramaniam Dossier Commercial in Confidence 2 Industry – Telecommunication Period – September, 2017 Area – HFC Activation Tool / Method – Mistake Proofing Situation The national HFC end-to-end (E2E) activation process, had a 41% defect rate and was creating customer satisfaction challenges. The E2E activation process showed 11 tasks that were creating 83% of these defects. Solution I formed a team – 2 x Field Technician, 1 x Field Supervisor and 1 x Process Improvement (myself to part with my knowledge on Lean Thinking & Principles). By involving the Field Technicians, I performed a 2-day Kaizen event to implement Mistake Proofing methods. I mapped the process to determine the specific steps which were causing these errors and why. This allowed us to focus on areas that were impacting the flow, waste and were prone to defects. I used a fishbone diagram to determine root causes of problems within the process. After a detailed 5 Why analysis I coached the team to identify those specific steps in the process that needed Mistake Proofing. We brainstormed and came up with low-tech solution. It was a simple to use checklist along with colour coding steps to match a specific tool used (red = cutting pliers, yellow = screw drivers, green = torque wrenches and blue = connectors and black = cables). The Viavi meter was used as a warning system in 3 areas – pit, side of the house and inside the house. Outcome Mistake Proofing was critical to the success as it enabled process stability. The stability of the process was critical along with standard work for further improvement opportunities. Using the above steps and I successfully improved the E2E process. This removed the defects as early as possible in the process with none moving to the down-stream processes. I used the above simple steps and removed 80% of the defects within 5 months. From the above exercise we were able to apply Mistake Proofing to other product / technologies like FTTC, FTTN & FFTB (Fibre to Curb, Node and Basement). The lessons learnt listed below were utilised by fellow Field teams: 1. The human error - Field Technician’s lack of attention to detail and skill levels were causing defects; 2. The failure to follow the critical steps in the process flow were causing safety issues along with defects; 3. The incorrect placement of connectors and cables caused errors that resulted in defects; 4. Errors which occurred early in a process were causing problems in the downstream process; 5. There was low heightened alertness required whilst performing manual operations.
  2. 2. Anand Subramaniam Dossier Commercial in Confidence 3 Industry – Telecommunication Period – November, 2016 Area – FTTN - Copper Jumpering Tool / Method – Standard Work Situation Copper jumpering is a very intricate operation involving both manual and automated tasks along with adherence to ‘standard work’ which is critical to prevent failures. Despite a focus to follow the engineering procedural documents which were 100+ pages, the majority of jumpering failures could be traced back to a failure to follow “standard work” procedure. The baseline quality level from jumpering was 43%, while the target was 99%. The design and implementation of “standard work” has proven to be a challenge. It forces Management, Field and Engineering staff to clearly identify and define the “best way” on a single or double sided A4 sheet. The standard operating procedures (SOPs) were voluminous documents that were at times difficult to understand and were open to interpretation. Solution Whilst the Field Technicians are educated and skilled on copper jumpering techniques, they tended towards innovation to achieve improvement. Whilst this is much sought-after in employees, it must be controlled or it becomes a source of inefficiency and the antithesis of improved performance that standard work enables. As well as ensuring that every jumpering is fit for its intended use, standard work acts as the baseline for all future improvements or Kaizen. Without standard work there can be no Kaizen, simplification or stabilisation of the process. a. Standard Operating Procedures (SOP) I undertook a review and found that the quality of the SOP on engineering documentation was at an acceptable level and the systems in place to manage and record employee training were effective. However, while all these systems and documentation were adhering to the engineering standards, the following opportunities for improvement existed: 1. Experienced Field Technicians had a hidden layer of detailed tacit knowledge that was not shared or captured anywhere. This tacit knowledge was key in getting to the root cause. 2. Most SOPs were written in an engineering speak and very broad (e.g. detailing equipment settings, operation, asset care, maintenance, etc.) which resulted in a typical SOP being 100+ pages long (with some even as large as 250+ pages). This called into question their suitability as a training aid for new Field Technicians or for retraining existing staff. 3. While all Field Technicians had been trained and were certified to carry out their jumpering duties as prescribed in the SOPs, they had no real or deep understanding about the tasks they were performing. Many Field Technicians did not understand the reasons why certain critical tasks had to be performed in a standard way to prevent jumpering defects. 4. There was NO simple one or two A4 page(s) to show what good looks like. b. Job Breakdown Sheets (JBS) Instead of creating a set of instructions and training for the Field Technicians to follow, a job breakdown structure embeds a real understanding of the jumpering process. This is achieved by teaching them, in a layered manner, the significance of each “key” step in the process and the criticality of these key steps if not performed correctly. Note: A “key step” is one which can adversely affect quality, safety, productivity, cycle time and / or cost. c. Pilot A pilot area was selected to conduct a controlled trial. The 100+ page long SOP was refined down to one double-sided A4 sheet. The front-page detailed tool setup and operation, and the back-page showed what steps should not be done and highlighted the points of failure. This document was jointly developed by 3 Senior Field Techs along with 1 from Engineering, 1 from Quality Control and myself (to provide the Lean lens).
  3. 3. Anand Subramaniam Dossier Commercial in Confidence 4 d. At the Gemba There key steps in developing the JBS: 1. At the Gemba (work site / the field) I involved the Field Technicians at every stage. 2. I observed every motion in detail and recorded them on video (where needed) to understand the key process steps. 3. I used the data to determine the best way to perform each activity taking safety, quality and cycle time into consideration. 4. I captured this information in a non-technical language. At this stage Engineering resources were invited to review the process and JBS document to ensure that what we did on this exercise complied with Quality Management / Engineering systems and standards. To trial the system 3 Field Technicians were selected for training and input. Based on the positive results, the decision was made to restructure the training in line with JBS. This resulted in a complete review of all SOPs and the creation of simple job breakdown sheets (JBS). These JBS were laminated and handed to Field Managers for training and inducting new Technicians. These JBS were also made available for Team Leaders to pick-up and observe immediately whether standard work was being performed correctly. It is important to reiterate that the main purpose of these JBS was to assist in the training of Field Technicians and to instil understanding and knowledge of the jumpering processes. There is still a requirement for the detailed SOP to enable the Field Technicians to access broader details (e.g. routine maintenance, meter settings / configuration, troubleshooting guides, FAQ etc.). e. Training and Audit In order to support the JBS roll-out the 3 Field Technicians in turn trained other Field Technicians and created a mentor / mentee program. This took around 4 months to bed down. The Field team developed an auditing system to measure how well standard work was being followed. Each week an Audit team consisting of Field Supervisor, Training Specialist any myself, carried out a process compliance check on the chosen jumpering which was selected at random. Each Audit team member (using the relevant JBS) observed a different Field Technician performing their work and recorded the results. f. Standard Work Compliance When the audit was completed the Audit team collated their final scores, provided feedback and circulated the results via e-mail to the key stakeholders. During a typical check, which lasts around 45 to 60 minutes, between 50 to 60 tasks could be checked by the team. g. Critical Step One key refinement that the team made was to the check when a critical quality or safety step was missing or performed incorrectly. When it did happen, the Field Technician was immediately stopped until the issue was resolved and 10% was deducted from the final score. As well as auditing how work was being performed, the checks also presented an opportunity to assess the quality of the JBS and looked for opportunities to improve the process. Outcome The Input from Field Technicians was key in the creation and introduction of these standard work compliance checks. The Audit team wanted to assure the focus of the Field Technicians was on compliance to the process rather than the individual. In the event a Field Technician was observed not performing a key point correctly that Field Technician was advised as to the correct method. This information was passed on to the relevant Field Team Leader / Supervisor who would first organise for the Field Technician to be retrained and then audited them daily until the jumpering work was performed to 100% satisfaction. The process was sustained for 180+ days with the jumpering quality level increasing from 43% to 91% within 9 months. Further refinement is being sought as part of their continuous improvement efforts. Standard work is very definitive – it leaves no room for error and forms the basis for understanding and learning. The above process and lessons learnt were shared with the rest of the Field team using other products / technologies.
  4. 4. Anand Subramaniam Dossier Commercial in Confidence 5 Industry – Telecommunication Period – March 2016 Area – HFC Activation Tool / Method – Listed below Situation In activating or connecting an HFC customer by a Field Technician, the current state metrics applied: ▪ Average cycle time: 2 hours. ▪ Productivity: 8 single dwelling homes /person per day. ▪ WIP: 2 ~4 homes awaiting to be completed as per the day run. ▪ Over 100 meters of walking distance travelled by a Field Technician from their vehicle to the house and back. Solution A Kaizen team consisting of 2 x Field Technicians, 1 x Field Supervisor and 1 x Process Improvement Specialist (myself) and 1 x Area Supervisor was formed. After spending 2 hours in Lean training, the team began to observe and collect time and task, data for each step in the activation process. The team discovered the following significant waste in the process: ▪ Excessive batching of work at each stage caused by extra handling of tools, inventory and “as-built” maps. ▪ Out of cycle work: Operators were doing their own material ordering and phone conversations. ▪ Transport and motion waste due to improper tooling and material presentation. ▪ Current layout was not conducive to one-piece flow as there was a long distance between operations. ▪ Each Operator has his/her own way of performing a step or activity as there was no standard work. The Lean Principles and techniques utilised in this event included the following: ▪ Standard Work. ▪ One-Piece Flow. ▪ 5S Housekeeping Principles. ▪ Problem definition & resolution (fishbone, 5 Whys and action list). ▪ Waste definition, identification and elimination. ▪ Visual Management Boards (VMB). Using the principles of one-piece flow, standardised work, VMB, 5S and waste audit, the team instituted the following changes: ▪ The team developed standard work sheets that identified each job step along with the sequence and timing associated with each step. This significantly reduced the variation between operators. ▪ The Field Technician highlighted the status and problem on the VMB. This information was used to communicate on the half hourly progress (plan versus actual), as well as, problem definition and resolution via fishbone analysis (Cause & Effect and 5 Why’s) in addition to counter measures / action list. ▪ The team developed and implemented a new layout that was conducive to one-piece flow; it physically limited the amount of WIP between operations and reduced the movement and idle time waste. ▪ The team also recommended and later implemented modifications to the activation process that further reduced the internal setup times (e.g. a further 18% of internal steps were converted to external steps). Outcome The improvements resulted in a 50% cycle time reduction, 70% productivity improvement and 30% reduction in motion waste.
  5. 5. Anand Subramaniam Dossier Commercial in Confidence 6 Industry – Telecommunication Period – October, 2015 Area – Supplier Relationship Management Tool / Method – Compliance, Contract Review, Quality Management System Situation After one year into a three-year contract, I conduced the first supplier compliance review. The scope of the review was to determine the degree to which the supplier delivery partner (SDP) was compliant with the contractual agreement. The supplier won the contract based on their Quality Management System (QMS). Solution I conducted a detail review and found that the SDP (supply delivery partner) was only 20% compliant with the contract. The work totaling $400k a year awarded were not performed as per the supplier’s Quality Management System. The KPI’s around – quality, cost, resource availability, defects, delivery and safety were not being reported. The reports generated had no meaningful information to act upon. I drew up the root cause of the supplier’s non-compliance. It resided with the SC team of the Telecommunication company. The SC team did not follow up on missing work, unreported KPIs, missing reports, missing performance reviews and neither the planning / governance forums didn’t document any. The key finding of the audit report was that the SC team did not install any governance over the contract, so the supplier was allowed almost complete discretion in what they did. Outcome From my audit, the SC team put in place a separate nine-member contract management team, led by a senior contract manager along with contract management team for policies and procedures. The detailed continuous review program was implemented thereafter and carried out to other supply delivery partners.
  6. 6. Anand Subramaniam Dossier Commercial in Confidence 7 Industry – Telecommunication Period – June, 2015 Area - WMC Tool / Method - Resource Allocation Situation A well-established Telco delivery partner managed their Field Operations from their Workforce Management Centre (WMC) through daily work force planning meetings. This was done the previous evening which had over time become ineffective and time consuming. The 95% productivity targets for each day showed an actual average achievement of 64%. Solution We analysed the current process and steps, set a target for 95% accuracy on productivity targets, future process flow and the required steps along with counter measures. The Visual board was installed at the WMC and in the back office. Every morning, starting at 08:30, a 15 minute “stand-up meeting” took place. At this meeting the day’s schedule along with resource allocation was discussed. An example how the schedule / resources were allocated would include the Technician visit to customer AM and PM, customer appointment confirmed the following day but required follow-up during the day and the administration work at the back-office activities (invoicing and missing artefacts). After the stand-up meeting at 9.00 am a standardised KPI Visual board was updated with the summary of the areas’ performance for the last 24 hours. In attendance at the meetings was the Leadership team specific to the area along with support representatives from Field, Quality and Engineering. The Field Supervisor attended on a rotational basis. Following established practices, the first item for discussion related to any health and safety issues, followed by quality, and then a review of each cell’s performance. Any issues, actions or suggestions which arose at the meeting were written up on ‘action cards’ and pinned to the board with a target completion date. This eliminated the need for taking meeting “minutes”. At each meeting the card owners were required to read out the card and give a status update. At 12:30 pm there was a daily Senior Leadership Team update meeting where the Senior Managers joined. A critical issues update was provided using the exact same meeting template. These meetings served to keep the Leadership team focused on the site’s objective of exceeding customer expectations while ensuring the Field Technicians and the WMC teams were improving their productivity and were closer to achieving their 95% targets. Senior Management were rostered to attend these 3 meeting for four main reasons: 1. To keep abreast of the critical operational issues affecting the customer activation for the day. 2. To observe first hand if the meetings were being carried out in line with the company values and that they were conducted openly with good interaction and teamwork. 3. To provide support and direction ensuring that decision making was based on data and scientific thinking where applicable. 4. To coach and develop WMC and Field employees by challenging their thinking where necessary and providing positive feedback. It is important to note that these meetings were chaired by the Area Supervisor and a Senior Leadership team representative as a guest rather than an active participant. Outcome Meetings were more focused with greater accountability, teamwork, and urgency. The Senior Leaders were now better informed of any issues which affected the customer or the day’s productivity and could intervene at an earlier stage and provide support. The Field Supervisors and WMC associates were more engaged with the Leadership team and were bringing forward more improvement suggestions. The Field and WMC achieved and sustained their 95% improvement target for 90 days and are now aiming for a 98% productivity improvement.
  7. 7. Anand Subramaniam Dossier Commercial in Confidence 8 Industry – Telecommunication Period – May, 2015 Area – Field Tool / Method - Kaizen Event Situation Kaizen events enable rapid improvements over a very short period of time. However, one of the problems that I saw with Kaizen selection was the random selection of particular process. The goal of any Kaizen event should be to improve the overall system. Solution A company that wants to implement Lean Thinking should first use Value Stream Mapping (VSM) as a tool for identifying and prioritising Kaizen opportunities. The only possible exception to this rule is in the use of Kaizen events to implement 5S. A company aspiring to start its Lean journey should have 5S in place company-wide (though Value Stream Mapping might still aid an organisation in selecting the starting point for 5S). Assuming you’ve mapped your value streams and are ready to start process-level Kaizen activities, what do you do next? I will discuss the 5 steps I used - from planning, performing Kaizen events, to sustaining the event. Step 1: Selecting an Area - You may have identified several high-priority Kaizen opportunities through Value Stream Mapping. Some additional selection ideas you might use for a first Kaizen event include the following: ▪ Select an area that has a relatively sound process and a high likelihood of success. It is important to succeed quickly in the first Kaizen event to build momentum for the subsequent events. ▪ Select an area that will be good for visibly demonstrating improvement to the rest of the company. ▪ Select an area that is small and self-contained. For example, you might have a cell (or the opportunity to create a cell) that produces a complete product and is not dependent on other processes in the organisation. Step 2: Selecting Team Members - A ideal size for a Kaizen team ranges from 4 to about 9 members. Team members for a Kaizen event should include the following: ▪ People from the selected area (about 50%). ▪ Maintenance / Facility person. ▪ People from Supply Chain, Distribution, Finance, Manufacturing, Quality and Engineering. This depends on the area on which you are focused. ▪ Customers, Suppliers, Consultants as needed. The person you select as the Event Leader must have experience and should not be from the process area selected. I recommend that the first few Kaizen events be professionally conducted; select a consultant that has experience conducting such events. Also, select a consultant whose intention is to help your company becoming self-sufficient at conducting Kaizen events. Step 3: Preparing the Area – The specific supplies will depend on the area in which your Kaizen event is being done. In production areas, you will likely need hand tools, tape, cardboard, tape measures, stopwatch, connectors to link up utilities, carts, safety equipment, cleaning supplies, and forklifts. If it is a non-production area you will not need much of the equipment mentioned above. Regardless of the area you have selected you will need flip charts, markers, dry erase board and preferably room at the Gemba / work site. You will also need to gather as much baseline information about the area as possible including customer requirements, layouts or drawings, flow charts, procedures, etc. If you’ve done your value stream mapping up-front, much of this should be at your fingertips. Have all of this available for the team on the first day of the event.
  8. 8. Anand Subramaniam Dossier Commercial in Confidence 9 Step 4: Game Day – Performing the Event Itself - For a five-day Kaizen event, the event proceeds as follows: ▪ Day 1: Lean Training with emphasis on a particular tool (5S, waste identification, spaghetti, SMED, etc.) for maximum 2 hours. Start documenting the current state. ▪ Day 2: Documenting current state completed. ▪ Day 3: Brainstorming - Idea Selection (future state), future state formulation including targets / goals. ▪ Day 4: Implementation of Future State (implement as much as possible), develop action plan / counter measures for items that cannot be implemented during event. ▪ Day 5: Complete implementation odds-and-ends; Final Report out and celebration! Step 5: Follow Up - There must be a follow up to the action plan developed during the event. Regular meetings should be held until action items have been completed. The remaining action items should be visibly posted in the area until they have been completed. Audit the area for the next 60 ~ 90 day for sustainment and start the plan for the next Kaizen event.
  9. 9. Anand Subramaniam Dossier Commercial in Confidence 10 Industry – Bank / Superannuation Period – September, 2014 Area – Back Office Tool / Method – Value Stream Mapping and Change Management Situation A bank had introduced many different product offerings over the years to its wide customer base. However, the Operations team were finding it challenging to keep up with the improvement in their systems, resource capabilities and processes. The customer satisfaction levels were dropping and the bank was losing it competitive advantage in the market place. The Board wanted a 25% cost reduction to maintain their commitments to the Shareholders. Solution I started engaging the respective team and conducted value stream workshops. I educated them on Lean Principles along with specific tools. I mapped the current process, identified waste, set the improvement targets and created the future stream maps along with improvement initiatives for simplification and standardisation of the activities in the process. The process redesign, which was the easy part, led to a reduction in the number of processing steps and cycle time by 55%. Change Management The challenging part was the learning and development required to ensure that people were not only developing the skills they needed to perform the new processes but were empowered with the mindset to embrace the new way of working philosophy. I am not talking about incremental change, such as the automation of manual processes, rather the fundamental shift in the way people work, who they work with along with how they think about their work and their value contribution. To the end, I created the communication, learning and development, and the key metrics around customer satisfaction and quality (right first time). I coached the Change Agents who were answering the question of why transformation was needed, and I oversaw the work of the Change Champions along with the Communications and Training Coordinators. We reviewed the metrics provided by the visual board to ensure that the transformation was on track to achieve the desired future state of 25% cost reduction. Outcome We developed standard work and were able to reduce operating costs by 20%. The customer service metric improved. The first stage of the Implementation was completed in 6 months. The people focused principles helped to drive the transformation. By building change into the bank’s culture, the ability to adapt and evolve successfully was essential for the success of the productivity improvement. Lessons Learnt ▪ Involve people in making decisions about their own environment in order to sustain the change. ▪ Lean is not a set of tools to be trained in an office but “learn from doing” at the Gemba (work location). ▪ Making costs visible and understandable helped to gain buy-in and for sustaining the improvements. ▪ Cross-functional teams need to be established to break down 'silo' working mentality. ▪ Making the transition from a 'top down' culture to 'bottom up' will require coaching / mentoring skills. ▪ Lean is best deployed as a strategy for competitive advantage.
  10. 10. Anand Subramaniam Dossier Commercial in Confidence 11 Industry – Banking Period – September, 2014 Area – Supplier Relationship Management Tool / Method – SRM Tool Kit, Principles and Change Management Situation This bank delivers innovative products and solutions to their customers while maintaining a commitment to safety and sustainability. The IT suppliers were taking ownership, driving relationships and following their own agenda, often engaging directly with C-level executives outside of the IT leadership. There were instances where IT was not comfortable working with suppliers to solve technical challenges and would only collaborate with suppliers, they had a relationship with, when facing major issues. It was clear that the teams responsible for managing suppliers didn’t understand the contracts and contract management was largely reactive. The relationships were also deemed far too dependent on individuals. As part of the back-office cost reduction program the Leadership team wanted a formal and structured approach to SRM in the IT function to be initiated. Solution After discussion with the Leadership team, I initiated a pilot program. This pilot included 3 chosen suppliers by the executive sponsor and was based on the segmentation that I workshopped 4 days prior to the pilot. These 3 suppliers were chosen based on the likelihood for success and on the existing relationship the team had and was found strong. As part of the initiative, these 3 suppliers were chosen based on how they would be 1. Impactful (visible and measurable benefits); 2. Likely to succeed (supplier was on board and viewed the financial services company as top-tier client) 3. Supported by strong executive sponsor who believed the value of the program once conducted; 4. Communicating the results to the executives who shared information with internal peers about the specific successes in their areas, building further buy in for a full program roll out. Based on the pilot success and after consultation with the Leadership team, I launched it formally with 4 new suppliers in the IT - contract labour, software, hardware, and telecom categories. These suppliers were identified as tier one after taking spend and business criticality (risk) and opportunities into account. I developed a standard tool kit and scorecard with 3 basic measures: number of suppliers, spend under management, and value created. I developed the initial toolkit that included a supplier relationship scorecard, and the guiding principles. I delivered the training. The higher risk relationships were managed within the SRM program. Outcome With strong sponsorship from the CIO and Leadership team, the rest of the (non) SC team were able to understand the SRM framework. This was evidenced by lower cost, improved supplier responsiveness, improved service levels, improved collaboration and communication. A fair and reasonable treatment created goodwill and issues resolved in timely manner. The IT SRM program was deemed a success, to the point that a previously skeptical business was now willing to embrace the approach. Based on the success I assisted with developing the Supplier manager roles / responsibilities along with activities / toolset. Approval was also granted for further investment and activity, which included training of supplier managers and a system reporting capability. With the SRM program in place, the company mitigated risk from regulatory non- compliance on customer information.
  11. 11. Anand Subramaniam Dossier Commercial in Confidence 12 Industry – Rolling Stock Period – January, 2013 Area – Boogie Changeover Tool / Method - SMED Situation Long changeover and setup times between wheel set (called boogies) change over created considerable downtime. Buying additional equipment was under consideration to prepare for a forecasted increase in demand. Quality defects and raw material wastage was considered “inevitable in this business” and was a concern. The setups and / or changeovers were consuming between 3 and 7 hours (5 hours on average) of production downtime per machine. Solution I conducted a detailed time and motion study for 5 days on the Boogie Change operation. I analysed the whole setup from the last good piece of the previous reference until the first good piece of the next reference. I created Spaghetti Diagrams and recorded the time it took for each task, understood “why” a specific tool was being used and documented every waste in the process. From this study I identified a Lean method that would assist in minimising the down-time due to setup. Hence, I decided to use S.M.E.D. (Single Minute Exchange of Die) method and followed the steps below: Step 1: Internal or External steps - Classified every task into internal or external. Step 2: Internal vs External work – I separated internal from external work. Every external task that was being performed whilst the wheel change operation was in progress were now performed either before we stop the activity or after. Step 3: Converted Internal work – Where there was an opportunity to do so, I converted the internal work into external work. I had the Maintenance team pre-assemble the tooling while the operation was running. Step 4: Reduced Internal Work - I reduced the identified internal work, used quick tightening Snap-On tools and eliminated adjustments. Step 5: Reduce External Work – I further reduced external work. I created setup kits, so every time before the start of a setup all needed items / tools were ready and the wheel change over teams didn’t waste time preparing. Due to the nature of the heavy equipment in use and the tooling required, I started with a 5S initiative and created an ergonomic tooling method. The tooling was used to properly stage the needed items and reduce the risk of injury and operator fatigue. The quality defects were addressed by implementing a series of strategies for scheduled component maintenance and machine calibration. The raw material wastage was addressed through a “go, no go” procedure. Outcome After implementing the new procedures, all setups and changeovers were completed in 50 minutes. This improvement negated any need to purchase equipment to meet forecasted demand. Third shift employees were brought to second shift and throughput increased. There was an approximate 25% decrease in raw material waste and quality defects decreased. These improvements were applied to six similar machines throughout the plant. Each of the seven machines experienced an increase of approximately 5 hours per shift in additional uptime. The company gained shop floor production time of about 5 hours per machine per shift (accounting for the elimination of the third shift), resulting in an additional 70 hours of capacity per day, with a third shift available in the event further maintenance was need or the boogie change increased in demand. These improvements were achieved with the existing team and without any additional resources required.
  12. 12. Anand Subramaniam Dossier Commercial in Confidence 13 Industry – Mining Period – August, 2012 Area – Supplier Relationship Management Tool / Method – Skill / Competencies & Benchmarking Situation The supplier relationships were transactional focused with no improvement or collaboration. There was no clear understanding of end to end supply chain or the market dynamics. There were instances of 14 months of competitive bidding activity, with no contract award. The information available were incomplete for resource allocation. There was a non-collaborative culture in play. Solution I segmented the SC team (45+ members) in defining the skill categories and linking these categories with the key SC processes. We developed 6, 12, 24- and 36-month skill development strategy. I engaged internal and external stakeholders and established a cross-functional team of 8. We analysed the current situation and developed an initial case for change in 5 focused workstreams. I conduced 9 workshops with focused workstreams. The team analysed processes & skill categories along with supply market analysis. I sourced and provided the team with best practice benchmark studies / reviews. I helped the team to create skill & process level mini-strategies or tactical game plan. These tactical game plans were integrated with the overall SRM strategy. This was discussed with the leadership team and obtained sign off. I coached the team to define, implement and check the due diligence process. Outcome The team identified over 200 implementable opportunities that generated $1.1 m as quick wins. With the implementation I delivered 14% cost reductions in less than a year. This in turn improved the end-customer satisfaction through process improvements. I also set-up remote coaching for the team from Australia. After the alignment of business and supply chain strategies included were identification and prioritisation of process improvement opportunities and metrics, was able to reduced operations conversion costs $2.23 (Target $2.6) million overall.
  13. 13. Anand Subramaniam Dossier Commercial in Confidence 14 Industry – Mining Period – August, 2012 Area – Supplier Relationship Management Tool / Method – Supplier Scorecards, Trends and Measurement Situation This mining company did not have a Supplier Scorecard to measure supplier performance and to drive improvements. There was no well documented reward or penalties processes in place. The Leadership team wanted to have an informed understanding with data of its global supply base with the ultimate goal of creating vital few strategic supplier partners rather than critical many. Solution I conducted 4 brainstorming session with the Leadership and SC team. After many discussions with the team, I finalised a simple and easy to use Supplier Scorecard. This encompassed 6 performance measures areas including definition and data sources. My aim was to provide an objective, consistent and cross functional view of supplier performance. In simple terms how the supplier performance was going to be measured. I also wanted it to be a visual representation on how suppliers were performing and to be placed at a central place for everyone in the company to see. The Supplier Scorecard encompassed both quantitative and qualitative measures where suppliers were measured on 1. Quality 2. Risk 3. Aftermarket Performance 4. Cost 5. Technology and 6. Innovation. This scorecard provided visual representation on how a supplier was performing at each of their manufacturing plants as well a company as a whole. The data collected was trended monthly and I designed a league table that provided an objective comparison of supplier performance. As part of this initiative, I drove behavioural change across the mining company and the supplier by transitioning siloed, disparate Supplier Management into a common and cross functional approach. I worked alongside with the Leadership team across each function and delivered behavioural change that resulted in buy in and improved supply chain performance. I developed the communication, training and ongoing support materials. Outcome The scorecard was seen as an effective tool by both mining and supplier side companies. The suppliers understood why a new approach was being implemented, what impact it would have and how they should use the scorecard to drive performance. Since I kept it simple and objective, the structured approach along with trended data of the supplier scorecard, the teams across the mining and supplier network built a strategic relationship. This scorecard created a platform to drive innovation and excellence within their respective supply chains.
  14. 14. Anand Subramaniam Dossier Commercial in Confidence 15 Industry – Mining Period – June, 2012 Area – Supplier Relationship Management Tool / Method – Supplier Qualification Management System / Supplier Partnership Situation The SC team at this mining company procures 75% of their inventory from Europe, 15% from USA and remaining 10% from suppliers worldwide. Every day, the SC team worked with 30,000+ suppliers. The company has strong relationships with its suppliers and this relationship was built on strategies which was ‘working together and ALL being winners’. Their 5-year strategic goals were in doubling their business whilst halving their environmental footprint and improving their social positive impact. What was missing was a system to manage critical supplier information. Based on my advice, the leadership team made the strategic decision to introduce a Supplier Qualification Management System (SQMS) to manage the complexity of their supplier information. The above goals could not be achieved on its own and having SQMS was one way. Solution To develop the system involved upskilling SC and supplier teams and simplifying the processes. The structure I used was 1. Early involvement of suppliers 2. Supplier Communication 3. Evaluation 4. Training 5. Rewards 6. Penalties 7. Scorecard 8. Sharing Lessons Learnt and 9. Next wave of improvement to the processes, systems and teams I assisted the SC team to selects suppliers based on the segmentation exercise (previous initiative). From those selected, the suppliers were invited to register in SQMS. This system helped in qualifying those suppliers to do business with this mining company. Then a group of suppliers were selected based on quality, price, lead time and efficiency. Next step was to assist these suppliers to innovate; create value, capacity and capability, deliver quality service and drive market transformation in a responsible and sustainable way. In terms of early supplier involvement, I assisted the SC team in getting the suppliers involved in design and manufacturing process to assess their capabilities, understand mining production processes and to discover new design and production efficiencies. I assisted in the importance of measuring each supplier by their overall spending for the defined period. I categorised the suppliers into 3 levels: gold, silver and bronze. The team had meetings with each level at monthly, quarterly and semi-annually. The suppliers were evaluated based on non-conformance rate and on time fill rate. The gold suppliers’ employees were trained at mining site to understand the production process. We designed the Awards to celebrates supplier partners who, over the past 12 months, have made a significant contribution to grow the mining businesses in a mutually-beneficial and sustainable way. The awards recognised the areas of Innovation, Responsible & Sustainable Living, Value, Capacity and Capability Building, as well as Quality & Service. Outcome The Supplier Qualification Management System (SQMS) managed the above and was deemed a success. The mining company created a true joint partnership and the people, process and system were delivering tangible mutual business success. The suppliers enhanced their quality and delivered the right products to their customers in the optimal way, whilst ensuring all benefited from working together.
  15. 15. Anand Subramaniam Dossier Commercial in Confidence 16 Industry – Mining Period – May, 2012 Area – Supplier Relationship Management Tool / Method – Contract Negotiation Situation At this mining company the Leadership team wanted 30% cost savings within 8 weeks. They wanted my help to drive this initiative along with the required change programme using quick wins to fund it. The supply chain team were inexperienced and had limited training on SRM practices, tools and techniques. There was limited control over existing spend and 60% of the contracts were locked in. Solution I formed a team to identify a pipeline of potential cost opportunities with a 35% cost reduction target. Given the tight time frames, I scoped the initiative to targeted supplier negotiations. I facilitated negotiation coaching workshop using role plays to raise the ability of the SC team and developed the contract negotiation plan. Outcome An average of 33% savings from supplier negotiations was removed from budgets as “real” savings. This raised the self-confidence and profile of the SC team. The stakeholder feedback was very positive with increased level of demand for SC involvement in other SRM initiatives.
  16. 16. Anand Subramaniam Dossier Commercial in Confidence 17 Industry – Mining Period – April, 2012 Area – Supplier Relationship Management Tool / Method – Supplier Performance Situation There was no single point of ownership of supplier data management nor any data strategy. The buyers did not capture price benefits negotiated with suppliers. There was no on-site inspection conducted by the buyers to evaluate the safety and best practices deployed by suppliers. The last time inspection was done was 19 months ago and it was sporadic. The suppliers had no understanding as to how their product was being used. There were no risk strategies in place. The product specification was too vague as the blue prints were outdated and rejects were on the rise. There was no supplier performance information that were provided to suppliers on regular basis. Solution With the above team mapped the end to end procure to pay process (P2P) for 4 strategic suppliers in the transport area. We captured the performance information for quality, risk exposure, safety and environment standards. An audit schedule (6 week interval) was created for the site visits along with the evaluation criteria included quality, risk and safety). This was jointly created with the input from the above 4 suppliers. Outcome The team defined standard work of the SRM approach for sustainment. Of the 31 ideas identified 70% were implemented in 20 business days. The supplier performance information was now provided to suppliers on weekly basis. The suppliers now had better understanding as to how their product was being used. The updated product specification was version controlled and easy to use. The right first time went from 65% to 96% after 45 days.
  17. 17. Anand Subramaniam Dossier Commercial in Confidence 18 Industry – Mining Period – December, 2011 Area – Supplier Relationship Management Tool / Method – Supplier Segmentation Situation This mining company had no standardised way for managing their supplier relationships. The supplier’s performance along with metrics varied across Australian and Turkey sites. The supply chain (SC) team had limited understanding and influence over the supplier’s strategy. There were inconsistent communications and the SC team were unclear on their accountabilities and responsibilities. Solution Formed a team comprising 2 x Leadership, 4 x SC and 2 x suppliers for the SRM initiative. I scoped what was in and out along with baseline data. Next, defined the supplier segmentation into 3 areas – 1. strategic 2. Important and 3. Transactional. The segmentation was further refined based on the spend, risk, benefit, supplier development strategies along with metrics for quality, delivery and cost. Obtained approval from the steering group for the segmentation exercise. I provided the team training on concepts, tools and techniques. We ran workshops for 5 days as pilot exercise. Outcome We identified over 100+ opportunities in the 5 following areas 5. Strategic alignment 6. Operational performance 7. Partner relationships 8. Innovation and 9. Total cost of ownership. We created 4 waves of 20 working days each. From wave 1 – 22%, wave 2 – 28%, wave 3 – 24% and wave 4 - 26% of the ideas were implemented accordingly.
  18. 18. Anand Subramaniam Dossier Commercial in Confidence 19 Industry – Mining Period – November, 2011 Area – Inventory Tool / Method – Flow, Pull and Problem Solving Situation A mining facility had been performing over budget for some time and was under scrutiny from Corporate Headquarters to reduce operational conversion costs while continuing to improve its overall profit and loss. ▪ Budgeted Total Operational Conversion Cost = 18.25% (of total revenue). ▪ Actual Total Operational Conversion Cost = 22.72%. ▪ The plant needed to reduce its overall operational conversion cost by 20%. Solution I facilitated a series of brainstorming workshops and fishbone diagrams to determine the top drivers for the excess operational conversion costs. This exercise revealed a high percentage of issues created by the current manufacturing floor layout. The 20-year-old layout was not conducive for flow. There were various new operations that caused islands to appear and disconnect the communication channels. The inefficiency of the manufacturing floor was further exacerbated due to an ineffective inventory control system. This case study will focus on the inventory system and what was done to improve it. Although labor was budgeted to be the highest cost, inventory issues were actually causing a larger issue—almost 2% of the total conversion cost budget was going toward unexpected inventory costs. The following is from the fishbone diagram exercise that was performed: ▪ Green: inventory control ▪ Pink: “Just Do It” ▪ Yellow: not following standards The fishbone diagram construction revealed the plant’s ineffective inventory control system was a large contributor to an over-budget in key areas (delivery, inventory, labor, and scrap). I coached the team to focus on the cost drivers: ▪ Overtime costs in labor due to paying double-time was often due to either waiting on raw materials or having to add extra labor for un-loading inventory from trucks. ▪ Inventory scrap increased due to large amount of material that was cut down from larger sizes due to a lack of needed inventory in the smaller sizes. ▪ Dollars tied up in inventory were drastically higher than necessary due to materials remaining in inventory long after they became obsolete. This also caused a lack of space that forced workers to haphazardly store materials in multiple areas exposing it to all weather elements. ▪ Delivery costs were driven up because multiple trips were needed to complete maintenance jobs, planned shutdowns and non-availability of a critical part due to inventory shortage. ▪ By implementing a user-friendly visual inventory control system the team determined that the facility could save almost $2.6 million/year, a number significantly larger than the required savings. The team then created a list of the root causes behind these cost drivers: ▪ No clear re-order system on the production floor. ▪ No clear area for raw materials to be delivered - hodgepodge of racking systems, with no specific inventory part ID or set space allocations. ▪ Obsolete inventory sitting in much-needed spaces. ▪ No clear communication system to alert workers of spikes or shutdowns. ▪ Departments not tied together in a pull system. ▪ High percentage of expedited raw materials deliveries. Based on the information the team uncovered during the planning stage we created a 60-day plant re-layout implementation plan, along with a 6 month Go Forward plan to correct the inventory control issue.
  19. 19. Anand Subramaniam Dossier Commercial in Confidence 20 Phase I consisted of a total re-layout of the production floor, focused on continuous flow, visual pull systems, along with proper space allocations for raw materials. Create the new layout: ▪ Used 60 days to conduct pre-moves, electrical drops, office moves, construction projects and material moves. ▪ Used 2.5 days consisting of a 12-hour staggered shift and 10 visiting maintenance crew to help with the re- layout of the manufacturing floor. Phase II consisted of implementing the visual inventory control system using KANBANs and inventory min/max levels: 10. Purchasing Dept. Standard Work - 1 month (Quarantine and Obsolete Material). 11. Pull System Implementation Sub Assembly – 1 month (Material Consolidation Project). 12. Supermarket, Reorganisation and KANBAN implementation – 1 month (Trailer Utilisation). 13. Scrap / Cycle count implementation – 2 months (Space Allocation and Kanban Set Up for Sub Assembly area). 14. Receiving Standard Work Event – 1 month (department 5S project). The plans consisted of a series of short projects and one-week events to establish a clear and concise visual inventory control system with improved communication and flow of information and materials. The respective teams worked on small projects over a course of several months to lay the groundwork for the one-week events to take place while focus on sustaining the improvements made. Outcome By executing the Go Forward Plan, the facility realised a reduction in Total Operations Conversion Costs listed below: ▪ Target = $2.6 m. ▪ Actual after completion of plan = $2.23m. ▪ End of Year Actual =$2.7 m. Future Opportunities ▪ Coaching teams on problem solving will cascade responsibility and ownership to the shop floor. ▪ Problem solving linked to 5S activity will enable 'bottom up' improvements. ▪ Management developing coaching skills will assist with cascading the strategic objectives. Support By providing support and on-going mentoring to Improvement Teams would certainly help to sustain the gains from the Lean implementation.
  20. 20. Anand Subramaniam Dossier Commercial in Confidence 21 Industry – Superannuation Period – August, 2011 Area – Accounts Payable (A/P) Tool / Method – Value Stream Mapping & VMB Situation There were inefficiencies and non-existent Accounts Payable processes. Late fees were being applied to late payments from Suppliers. The Accounts Payable department was working overtime with additional help from external resources to reduce the late fee charges being applied. The A/P system was causing excess wait time for receiving critical information and slowing the process from moving forward. The Leadership team including the A/P Manager and myself had a meeting to discuss options to improve the Accounts Payable process with the following objectives: ▪ Reduce department overtime - 75%. ▪ Identify problem areas within the A/P system that was causing communication breakdowns. ▪ Improve process throughput to eliminate late fees. ▪ Create a visual workplace to increase cross-training abilities. Solution I assisted the team with conducted a Kaizen event and they were able to see the improvement opportunities which would solve the issues and achieve the above objectives. The Kaizen team consisted of both people from the Accounts Payable (A/P) department, as well as, people outside of the A/P department. I created a process map to determine the number of steps and the largest gaps (lead times / wait times) within the system. The team calculated total Value-Added Time = 304 minutes and the Non-Value-Added Time = 35, 200 minutes or 84 days (35,200 / 420 minutes). The steps were separated into non-value added, value added, and needed (but not value-added). Out of the 119 steps, only 9 were value-added. I created an impact / difficulty matrix to separate the non-value-added steps into categories and determine most critical areas to focus on. The team figured out ways to make needed steps shorter by focusing on the following objectives: Communication, standardisation and lead times. The team addressed communication issues by applying 5S principles to create a standardised process. They improved and developed process steps which identified who, what, where, when and how, greatly reducing miscommunication issues and eliminating the need for additional research, rework and waiting for responses such as instances the information was sent to the groups in an ad-hoc format, thus adding to the cycle time. The large amount of paperwork forwarded to the groups was also an issue and increased the lead-time for receiving approvals and paperwork back. The team created a daily system, decreasing the batch sizes by 90%. The team added a color-coded system with time constraints. This gave those responsible the ability to track the compliance of each internal group’s response time. A folder system was created to regulate batch sizes and increase throughput and reduce lead times / wait times. In order to sustain the process, the team created a simple compliance sheet with each department listed with Yes and No checkboxes. The form was submitted to the Controller daily and the information keyed into a simple Excel database. At the end of the week, a compliance chart was printed and reviewed during the weekly staff meetings. Over the next 30 days the compliance reached 100% for all internal groups creating a total reduction of tracking days by 92.3%. The team created and held training to present the new system to the four internal departments. The training was designed to help them understand why the new system was important and what was causing the lead times. They were shown how to use the forms, which helped to raise the overall compliance scores as well. Outcome By focusing on the process, the team was able to identify root causes and apply easily executable solutions. Overall, the event did more than improve the bottom line. It helped to kick off new Lean initiatives across the business.
  21. 21. Anand Subramaniam Dossier Commercial in Confidence 22 Industry – Superannuation Period – August, 2011 Area – Front End Processing & Productivity Improvement Tool / Method – Value Stream Mapping / Project Management Situation A company had extensive growth planned over the foreseeable future with a merger in the near future. Executive Management were keen to “Lean” out the processes before the merger and to develop a deeper understanding of the application of Lean Thinking and Lean Principles along with the specific tools utilised. Solution The Lean Project objective was divided into two sections: 1. To analyse front end processes with the objective of streamlining activities throughout the business. 2. To focus on technical delivery processes with the aim of improving productivity Section 1 - The team mapped current front-end processes from receiving an enquiry through to project initiation. This led to identification of ‘disconnects’ and the visibility of timings for sub-elements of the process. There were several wastes documented which could be reduced once the team digested and documented the impact on the business. As the analysis created momentum the team identified potential changes that streamlined and simplified the overall end- to-end process. This led to the development of a ‘future-state map’ along with the counter measures that reduced the overall cycle time from 17 weeks to 8 weeks. Section 2 - The team mapped out the project life cycle from project initiation through to full commissioning. This included review of procurement process, contracts, specifications, software implementation, testing, training to deployment. The wastes that were documented within the process led to brainstorming, the formulation of cause & effect, to communicating potential benefits. Detailed resource allocation data was prepared to demonstrate value add and non-value add steps throughout the process. This was then tracked against the implementation plan. Outcome From the first initiative the improvement freed up time for Executive Management to work on the strategic growth of the business. This led to an increased win rate of projects with the potential to increase sales by 10% - high utilisation of existing Sales resources and reduced average time by 40% per enquiry. From the second initiative a new organisation chart was developed with key roles and responsibilities linked directly to the growth plans of the business. The software provided improved benefit for back and front-end processing. The overall productivity improvement was 18% with further improved efficiencies expected.
  22. 22. Anand Subramaniam Dossier Commercial in Confidence 23 Industry – Banking Period – April, 2011 Area – Claims Processing Tool / Method – Lean Principles Situation A company had grown steadily, where clients demanded quicker feedback and point solutions to their queries. The Operations teams had to handle a complex stream of policies, enquiries, and claims. With volumes up 10-20% annually, 10,000+ enquires arriving daily by email, mail, and telephone, the backlog of work had become unmanageable. The company had software to automate the mail sorting process but had to be reconfigured. Work within the process remained stubbornly high at 8,000+ claims and lead times were 10+ days. The staff were overworked and morale was low. The current customer satisfaction score was 60%. Solution I was engaged as a Lean consultant to diagnose the issues and develop an improvement plan. I worked with the 6 members of the Operations team. After training on Lean Principles, we started at the mailroom where around 25 staff opened, sorted, and scanned mail for processing. I used value stream mapping and analysed incoming work processes, along with waste and pitch interval of 1 hour. We established a 90% target for customer satisfaction along with a target lead time reduction to 3 days and defined the future state including 18 counter measures and the detailed activities. We improved the flow, eliminated waste, introduced standard work and trained the remaining staff. Each hour (pitch) work was organised and details entered on the visual board. At a glance the teams both up and downstream could see the volumes, assign the workload and resource accordingly to handle the flow. Outcome By reorganising the work and making the process visible the lead time dropped to 2.5 days. The downstream work teams could see the claims for processing on the visual boards including what was in the backlog. The backlog reduced to 3,000. The staff morale and team’s communication improved. Customer satisfaction rose to 88%. This was sustained for 60 days.
  23. 23. Anand Subramaniam Dossier Commercial in Confidence 24 Industry – Logistics Period – March, 2010 Area – Receiving Tool / Method – Lean Tools (listed below) Situation This Lean initiative concentrated in the “Freight Receiving” area. On an average 5,000+ boxes of varying sizes including ugly freight (freight is not suitable to be delivered in a standard pallet) were received during non-peak time rising to 75,000 boxes during peak activity. With 35 workstations throughout the process the business operates to an average of 150 boxes per person per hour with a labour force of 70 plus casual staff on a needs basis when box volumes / shipment increased. The objective was to analyse all process steps and identify specific areas for improvement, improve the flow visibility and reduce waste. Solution I formed an Improvement Team of 8 staff and whom I trained on the below Lean tools: Value Stream Mapping Problem Solving Waste Types Root Cause Analysis and 5 Whys Spaghetti Diagram 5s Gemba Walk / Daily standup Visual management Mistake Proofing The team utilised the above tools, photographed the current state and also measured non-value add activity. They calculated that each operator was walking 12,000 ~ 18,000 steps per day. From the analysis the team identified the layout and flow through the conveyor loop were not ideal resulting in stop/start at the 35 workstations. The analysis showed that there was poor use of the grid system for stock once received which resulted in excessive walking by the Operators. The flow of work was making it difficult for Operators to effectively use their resources. There were also inefficiencies at the stock drop zones. The team prepared a detailed no cost / low cost implementation plan with the objective to increase overall productivity by 15% within the next 10, 20, 30, 45 and 60 days. The specific areas identified were: Conveyor belt system Redeploy sensors to improve flow Upgrade layout to improve efficiency Reduce the amount of walking time Improve pull and waste removal Improve efficiency at the drop zones I assisted the team in creating a new layout for the receiving area. They compared the old layout to the proposed new layout demonstrating an increase in value added activity. They demonstrated how the improved process would work. Outcome There was reduction in labour time of 11 hours per week. With the improved layout walk time was reduced by 60% and the conveyor system belt length was shortened leading to 11% monthly energy saving. Since the Lean initiate, the business further reduced their carbon footprint.