Continous improvement slide for posting

CONTINUOUS IMPROVEMENT PROCESSES
AUSTRALIAN HARDWARE (Simulated
Business)
BY JONATHAN GAN

3
Introduction

This slide will discuss Continuous Improvement
for Australian Hardware

Discuss Objectives of the Slide

Discuss Tools and Monitoring Tools for
Continuous Improvement

Review Objectives

5
OBJECTIVE OF THE PRESENTATION
•
To be Able to give examples of Continuous
Improvement processes
•
To be able to evaluate the effectiveness of CI
processes and decisions in terms of how well
they meet the stated goal/s of Australian
Hardware
•
To be able to do a brainstorm session to identify
systems and data for bench marking and
monitoring performance for CI

6
OBJECTIVE OF THE PRESENTATION
•
Be able to Identify measurement tools and
describes the data sets
•
Be able to Identify Continuous Improvement
monitoring tools

7
Continuous
Improvement
Examples

8
Continuous Improvement Examples
•
LEAN MANUFACTURING SYSTEMS
•
SIX SIGMA
•
(TQM)TOTAL QUALITY MANAGEMENT

9
•
WHAT IS LEAN MANUFACTURING?
•
IT IS THE WESTERNISED VERSION OF JUST IN
TIME MANUFACTURING (JIT) AND KAIZEN

10
•
INVENTORY CONTROL
•
SET-UP IMPROVEMENT
•
MAINTENANCE IMPROVEMENT
•
QUALITY IMPROVEMENT
•
PRODUCTIVITY IMPROVEMENT

11
LEAN MANUFACTURING SYSTEMS – 7 WASTES

12
LEAN MANUFACTURING SYSTEMS – 7 WASTES

TRANSPORTATION

INVENTORY

MOTION

WAITING

OVER-PROCESSING

OVER PRODUCTION

DEFECTS

14
LEAN MANUFACTURING SYSTEMS - 5 S
•
SEIRI – SORT
•
SEITON – SET IN ORDER
•
SEISO – SHINE
•
SEIKETSU – STANDARDISATION
•
SHITSUKE – SUSTAIN

16
SIX SIGMA
•
DEFINE – DEFINE THE PROBLEM OR
IMPROVEMENT OPPORTUNITY
•
MEASURE: MEASURE PROCESS PERFORMANCE
(OUTPUTS)
•
ANALYSE: ANALYSE THE PROCESS TO
DETERMINE ROOT CAUSE OF POOR
PERFORMANCE . DETERMINE WHETHER THE
PROCESS CAN BE IMPROVED OR SHOULD BE
REDESIGNED.

17
SIX SIGMA
•
IMPROVE: IMPROVE THE PROCESS BY
ATTACKING THE CAUSE
•
CONTROL: CONTROL THE IMPROVED PROCESS
TO MAINTAIN IN ITS GAINS. SET UP PILOT RUNS
TO ESTABLISH PROCESS CAPABILITY, MOVE ON
TO PRODUCTION, SET UP CONTROL
MECHANISMS AND CONTINUOUSLY MONITOR
THE PROCESS

18
TOTAL QUALITY MANAGEMENT
•
What is Total Quality Management?
•
Total quality management consists of
organization-wide efforts to "install and make
permanent climate where employees
continuously improve their ability to provide on
demand products and services that customers
will find of particular value.

20
TOTAL QUALITY MANAGEMENT
•
INVOLVE ALL EMPLOYEES
•
FOCUS ON CONSUMER
•
CONTINUOUS IMPROVEMENT
•
QUALITY IMPROVEMENT
•
ACCURATE EVALUATION

21
Effectiveness of CI
processess –
Australian Hardware

22
Effectiveness of CI processes – Australian
Hardware
•
Increase sales revenue and gross profit
•
Control direct and indirect operational costs
•
Maintain superior product and service quality
standards
•
Establish Australian Hardware’s reputation as a
socially and environmentally responsible
company.

23
Increase sales revenue and gross profit
What to do for increasing sales revenue
•
Increase the number of customers
•
Increase the average transaction size.
•
Increase the frequency of transactions per
customer.
•
Raise your prices.
•

24
Control Direct and Indirect Operational Costs
•
Six Sigma and 5 Why’s can be used to identify
the problems and help in controlling the Direct
and Indirect Costs
•
Do a cost Control Analysis
•
Targeting Net Income – Sales Target and
Budgeting

25
Control Direct and Indirect Operational Costs
•
Variance Analysis
- Direct Cost -Doing bids for supplies and materials
for production
- Indirect Costs – Office Supplies, Outsourcing
employees and services

26
Maintain superior product and service quality
standards
•
How do you maintain superior product and
service quality standard?
•
PDCA – Quality Improvement
•
Using Deming’s Cycle and Shewarts Circle
•
Quality Control Audits

29
Quality Control Audits

Financial Audit

Internal Audit

Operational Audit

30
Establish Australian Hardware’s reputation

Contribute to the social and economic
development of your community.

Foster growth and innovation in your industry --
learn and add value. ...

Uphold sustainable development principles. ...

Network.

Value the employees who build and bring life to
your company.

32
Brainstorming Session – Monitoring
performance of Continuous Improvement

33
What I Know What I want to know What I learned
PDCA is important for
continuous improvement
Using PDCA for Australian
Hardware and identify what
needs to be improved
Lean Manufacturing, Six
Sigma and TQM
Applying Lean
Manufacturing, Six Sigma,
and TQM to Australian
Hardware
Use Measurement Tools What tools is best to be
used for Australian
Hardware
Tools for Monitoring
Performance of CI
What tools for Monitoring will
be used for monitoring of CI in
Australian Hardware

34

Check Sheets

Histograms

Process Control Charts

Feedback from service users

Audits in Continuous Improvement Processes

Complaints System

35
Measurement Tools

PDCA – Plan-Do-Check-Act

The 5 Why’s

Value Stream Mapping

36

Monitoring performance of Continuous
Improvement can be monitored through tools
and gathering data to display chart making it
easier to identify the key area problem

37
X Bar Chart for Monitoring - Sales

38
R Chart for Monitoring - Manufacturing

39
S Chart for Monitoring – Quality Control

40
Conclusion

Continuous Improvement varies on the
methodology used in each tools since Australia
Hardware is a Manufacturing Company.
monitoring strategy to evaluate efficiency of
manufacturing and quality of service

41
Conclusion

A key to measuring the Continous improvement
is to measure KPI’s and these data can be
processed into charts:

KPI’s for Sales – Target, KPI for Operations –
Cost and Materials, KPI for Financial – Budget
vs Actual, KPI for Marketing – Programs and
Earnings, Human Resource KPI,s – Training and
Hiring new Employees.

42
Conclusion

Monitoring effectiveness of Continuous
Improvement (Monitoring Positive and Negative
Trends), PDCA is a repititive process and you
need monitoring tools can be useful in
measuring the effectiveness and identify actions
can be done order to improve quality of products
and services

43
REVIEW OBJECTIVES
•
To be Able to give examples of Continuous
Improvement processes
•
To be able to evaluate the effectiveness of CI
processes and decisions in terms of how well
they meet the stated goal/s of Australian
Hardware
•
To be able to do a brainstorm session to identify
systems and data for bench marking and
monitoring performance for CI

44
REVIEW OBJECTIVES
•
Be able to Identify measurement tools and
describes the data sets
•
Be able to Identify Continuous Improvement
monitoring tools

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