1. Session 3
April 2013
Improving
Operational
Performance

2. To introduce business improvement tools and techniques.
Session Aims

3. By the end of this session you will be able to:
Identify continuous improvement techniques.
Explain the principles of “5S”.
Identify and use visual indicators to improve the work area.
Describe methods to eliminate variance from processes.
Produce a process map.
Session Objectives

4. Continuous improvement in business is often known as
kaizen.
This can be roughly translated from Japanese to mean
“good change”.
Kaizen is a long term approach to work that systematically
seeks to achieve small incremental changes in processes in
order to improve efficiency and quality.
What is continuous
improvement?

5. Lean organisations often use benchmarking as part of their
continuous improvement methods.
The object of benchmarking is to understand and evaluate
the current position of a business in relation to best practice
and to identify areas and means of performance
improvement.
Benchmarking

6. 3 Divisions of
work

7. Value added – an activity that alters the nature, shape or
characteristics of a product in line with customer
requirements. For example; data or information input, order
acknowledgement, producing a part.
Non-value added – any activity carried out which is
necessary under current conditions but does not increase
the product value. For example; quality inspection, multiple
signatures.
Waste – all unnecessary work. Eliminate!

8.  Transportation
 Inventory
 Motion
 Waiting
 Over production
 Over processing
 Defects
 Skills
Seek out Tim Woods, he is present in every workplace and
we need to get rid of him!!!
The 8 forms of waste

9. Some of the benefits of applying lean techniques include;
Reduced product cost for the end user
Improved safety in the workplace
Higher quality of products and customer service
Reduced lead time
Reduced non-value added and waste activities
Standardised working practices meaning every product is
the same as the last and quality standards are maintained
at a high level.
Benefits of improvements

10. The improvement cycle

11. The importance of having an organised workplace within a
lean environment cannot be underestimated; it can be the
foundations of a lean culture that will lead to long term job
security and a successful business.
An organised workplace needs to be: clean, healthy, safe,
informative, well disciplined, efficient, productive, free from
clutter and waste with easy access to the materials and
equipment needed to do the job.
Workplace organisation – 5S

12.  Sort or Clear out
 Simplify or Configure
 Shine or Clean
 Standardise or Conform
 Sustain or Custom and practice
The 5-Step approach

13. An important part of any 5S activity is how you
communicate information to colleagues in your own
department and other by using visual systems.
Communicating information

14. Standardised work is one of the many benefits of a lean
organisation. It allows an organisation to remove variance
from any process by developing a single best method of
carrying out a task.
Once developed, these standardised methods are written
down in the form of a step-by-step guide and known as a
Standard Operating Procedure (SOP).
Standardised work

15. Visual management systems are a method of managing the
working environment using clear visual messages.
Good visual management should need no interpretation and
provoke a reaction.
There are two types of visual
management; visual controls,
such as minimum and maximum
levels, and visual displays such
as performance measures.
Visual Indicators

17. Process mapping
Process mapping is a diagnostic tool used to visually
illustrate how a product or service flows through a process
To break the process down into 5 key areas, providing an
easily understood visual overview
This can be used to identify waste within the process and to
determine the current lead time.

18. Operation - step where the product is changed inline
with customer requirements
Inspection – indicates a check for quality or quantity
Transportation – movement of worker, material or
Equipment
Delay - indicates a delay in the process, or an
object laid aside until required
Storage - accumulation of material held under
controlled conditions.

19. Process maps are created by recording each step or activity
within a process, recording the time that that step takes and
any distance that the item being mapped has to travel.
Each step is recorded in one of the 5 key areas or
categories; operation, inspection, transportation, delay or
storage.

20. By the end of this session you will be able to:
Identify continuous improvement techniques.
Explain the principles of “5S”.
Identify and use visual indicators to improve the work area.
Describe methods to eliminate variance from processes.
Produce a process map.
Session Objectives