Operational Excellence & Cost Reduction Sept09

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Operational Excellence Operational Excellence and and Cost Reduction Cost Reduction Through Through Lean & Lean-Sigma Lean & Lean-Sigma ADVANCED MANUFACTURING CONSULTANCY SDN. BHD.

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AMCKaizen's the holistic solutions provider in operational excellence and cost reduction

Transcript of Operational Excellence & Cost Reduction Sept09

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Operational Excellence Operational Excellence andand

Cost Reduction Cost Reduction Through Through

Lean & Lean-SigmaLean & Lean-Sigma

ADVANCED MANUFACTURING CONSULTANCY SDN. BHD.

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OperatingCost

OperatingCost

SellingPrice

SellingPrice

IncreasePrice

BiggerProfit

BiggerProfit

ReducedOperatingCost

Business as Usual Current Necessity

Cost + Profit = PriceCost + Profit = Price Price - Cost = ProfitPrice - Cost = Profit

The Profitability Dilemma

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FAST TRACK APPROACH TO FAST TRACK APPROACH TO ACHIEVE YOUR TARGETACHIEVE YOUR TARGET

Immediate Immediate solutions are solutions are available to available to help you help you survive the survive the economic economic crisis facing crisis facing the world. The the world. The Clock is Clock is ticking………!ticking………!

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The objective of world-class manufacturing systems is to eliminate or reduce “waste” (non value added activities) in order to:

The objective of world-class manufacturing systems is to eliminate or reduce “waste” (non value added activities) in order to:

Increase ThroughputRate at which company generates money through sales

Reduce Excess InventoryInvestment in Raw Material & other variable cost

Reduce Operating ExpenseFixed Expenses turning Raw Material into Finished Goods

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THE METHODOLOGIES

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Waste & Value

Motion14%

Overprocessing8%

Rework & Repair10%

Transportation12%

Waiting18%

Overproduction & Excess Inventory

22%

Adding Value6%

Unutilised Human Resources

10%

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The term "Sigma" is often used as a scale for levels of "goodness" or quality. The term "Sigma" is often used as a scale for levels of "goodness" or quality. Using this scale, "Six Sigma" equates to 3.4 defects per one million Using this scale, "Six Sigma" equates to 3.4 defects per one million opportunities (DPMO) in manufacturing and other processesopportunities (DPMO) in manufacturing and other processes

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LEAN-SIGMALEAN-SIGMA methodologies methodologies to achieve to achieve

ZERO ZERO DEFECTSDEFECTS. .

Achieve “bulls Achieve “bulls eye” results eye” results always with always with these proven these proven methodologiesmethodologies

FAST TRACK APPROACH TO ACHIEVE FAST TRACK APPROACH TO ACHIEVE YOUR TARGETYOUR TARGET

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The Theory of Constraints is a focused and proven approach of identifying what limits (constraints) a system from achieving it’s profit goals or continuously achieving higher goals and exploiting/improving these constraints in order

to achieve quantum gains

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Jack Welch (former CEO of GE) told the audience at a conference that his top 6 focus areas for 2009 were:-

a)      Keeping costs in-lineb)      Preparing for the worst-case scenarioc)       Cash is Kingd)      Leadership has to communicate like helle)      Love your best people f)       Buy or bury your competitors

As you know Lean & Six Sigma is a proven methodology for achieving the first 3. GE increased it bottom line by $10 billion using Six Sigma, DuPont $2.4 billion, Honeywell $2 billion, Motorola $2.2 billion, and Bank of America cut cycles times in half. There are no better methodologies to cut wasteful and non-value add costs permanently.

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Let us work on your productivity issues and get the results you need. Consulting fees is Consulting fees is charged only if results are charged only if results are achieved! achieved! You only need to pay travel & living expense of consultants if agreed results are not achieved

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Competency from Operators right up to Operations Directors

in:LEAN LEAN

THEORY OF CONSTRAINTSTHEORY OF CONSTRAINTSLEAN-SIX SIGMA LEAN-SIX SIGMA

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Hands-On knowledge transfer for Operators right up to Operations Directors in:

LEAN LEAN THEORY OF THEORY OF CONSTRAINTSCONSTRAINTSLEAN-SIX SIGMA LEAN-SIX SIGMA

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30% Class Room Lectures

20%Coaching & Mentoring

On Real Projects

50% Hands On Simulations&/Or

Hands-On Shop-Floor Activities

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CULTURECULTURE

PHIL

OSO

PHY

PHIL

OSO

PHY

TECH

NO

LOG

Y

TECH

NO

LOG

Y• Lean PrinciplesLean Principles• 8 Waste8 Waste•Value vs Non Value Value vs Non Value AddedAdded

• Value Stream mapValue Stream map• FlowFlow• Takt TimeTakt Time• Just In TimeJust In Time• Kanban SystemKanban System• Visual SystemsVisual Systems• Standardized WorkStandardized Work• TPMTPM• Quick SetupsQuick Setups• Error ProofingError Proofing• KaizenKaizen

Competent, flexible and motivated employees who operate in a continuous improvement culture

THELEAN

TRIANGLE

WE PROVIDE HOLISTIC SOLUTIONS TOWARDS

CREATING A LEAN CULTURE

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CULTURECULTURE

PHIL

OSO

PHY

PHIL

OSO

PHY

TECH

NO

LOG

Y

TECH

NO

LOG

Y

• FlowFlow

• Just In TimeJust In Time

•Visual SystemsVisual Systems

• Standardized WorkStandardized Work

•KaizenKaizenPRETEND LEAN

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Assessments & Opportunity identificationDiagnostics to identify WasteFactory Audit and scoringEngaged with client in Projects and cost saving initiatives Supplier Lean initiatives – speeding time to respond

Lean Tools TrainingLean Master Certification ProgramLean-Sigma trainingChange management trainingPublic SeminarsExecutive Boot-camps

Identifying System Constraints & BottlenecksIncreasing bottleneck Capacities withLow Cost or No Cost Solutions

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Advanced Manufacturing Consultancy Sdn. Bhd.Company Number: 650118DFounded in 2001in Malaysiawww.amckaizen.com

Pricipal Consultants:J. Ramesh Victor (Lean Master USA)

PS Rajj (Lean Master USA)

JR VICTORJR VICTOR

PS RAJJPS RAJJ

Consultants with combined industry exposure of more than 35 years and have travelled internationally to provide Consulting & Training

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“we find your training and coaching sessions informative, practical and professionally delivered. The choice to go wide to give the big picture before drilling down to select areas delivering highest business impact, is a strategy that serves us well…Besides an average of 30 to 40 percent improvement in set up time…, cycle time improvement from 6.5 to 4.2 days…we are also pleased to see a reduction in critical defects... SW Woo, COO Carsem M Sdn Bhd.

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“ ...they have demonstrated the ability of going into problem factories, and quickly turn around their manufacturing operations. Approximately 7 people in the whole of Seagate 45,000 possessed this skill set ”

Richard C. Craven B.Eng, MSc, MBA, CEng, MIMechE Seagate Supplier Lean Manager for Europe & Asia

“Utterly fantastic...without lean implementation at...we would not have met the Barracuda ATA- IV schedules” Matt Johnen. VP Asia Materials (Seagate)

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“ Lean Manufacturing in general opinion is too BIG and difficult to be achieved. But with AMC as our trainer/consultants Lean has become easily understood by Belton candidates of all levels. Lean has become applicable in Belton”

Pongyut, Director of Engineering Belton Industrial, Thailand

“….result is...very ordinary people here ( Production Supervisors, Engineers), moving on very ordinary projects ( Poka--yoke, UPH improvement, Kanban system, etc) for some VERY extra-ordinary results. I am very pleased that so much dollars and cents has been saved with a lot of simple, sensible and stellar projects.

Keep up the good work and I am so proud with all of you.”

Comment of Managing Director of Finisar to AMC Lean Master Candidates

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“ Lean Manufacturing came at the right time to save millions of dollars for us in capital avoidance…” Michael, Lean/Engineering Manager

MSP, Ipoh (NSK Group)

“ Lean Manufacturing is an effective tool to reduce wastage, optimize capacities & reduce costs….AMC’s course taught us the effectiveness of various Lean Tools….The course is very interactive and the simulation games are very interesting. The course instructors use their

extensive industrial experience to elaborate important points and make participants understand the key points”

Roger Goh, Vice President Beyonics Precision, Johore Bahru

“Very good projects and excellent savings, nothing should stop us from standardizing these actions across the floor immediately ..”

Innovex Thailand, VP of Quality and Operations

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AMC clients list

• One or more of our services have been rendered to:

MalaysiaMalaysia General Electric, JB Komag, Pen, JB, Sarawak Eng Teknologi, Penang MMI Johore Bahru Beyonics Precision JB Wong Engineering, Kulim NSK, Malaysia MSP, Ipoh Balda Thong Fook, Ipoh Finisar Ipoh Hovid Pharmaceuticals, Ipoh Ryco Hydraulics, Kulim Crest Ultrasonic, Perai Camfil Farr, Batu Gajah Perak Community Specialist

Hospital

MalaysiaMalaysia Poly Plus, Perai Rhombus, Perai H & P, Perai Automotive Lighting, Penang Smart Modular, Perai Knowles Altum, JB Juason Plastic, Perai Balda (Mold Tool Room) Trane (Aircon) Mapa (Hutchinson Group) Rosa Pasadena (Hotel) Carsem Semiconductor PSC Casting HCM-Hygenic Corporation

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ThailandThailand Minebea (NMB) Innovex Belton Beyonics Compart Fabrinet Agere

SingaporeSingapore Seksun Corp Philips (Alliance with Gemba USA)

Others / globalOthers / global Seagate Technologies

TaiwanTaiwan Ambit Nanotech

ChinaChina Seksun, Suzhou MMI, Wuxi Belton, Shenzhen Belton, Wuxi Compart Magnecomp Optimal Snap On Broadway Shanghai

IndonesiaIndonesia Philips (Alliance with Gemba USA)

AMC clients list

• One or more of our services have been rendered to:

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WHAT NEXT?WHAT NEXT?

Allow us to help you:• SAVE MONEYSAVE MONEY• DEVELOP YOUR HUMAN DEVELOP YOUR HUMAN

CAPITALCAPITAL• COMPETE IN TODAYS COMPETE IN TODAYS

ECONOMIC CRISISECONOMIC CRISIS

CONTACT US: Email: [email protected]