To what extent should management be involved in Lean implementations? 1 Sam Tomas

Some Individual Processes Required To Run a Company Forecasting and SWOT Analysis Setting Strategy & Goals & Objectives Budgeting and Asset Allocation MarketingSales Order EntryOrder SchedulingProcurement Manufacturing Inspection and Quality Control PackagingWarehousingShippingDistribution Supply Chain Activities Product Design and Development Maintenance Service and Warranty Human Relations Finance and Accounting Order Fulfillment 2 Sam Tomas

Examples of Potential Core Processes Strategic planning Developing new business Respond to customer needs INNOVATING NEW PRODUCTS Introducing new products Product design and development Quality improvement Cost control Delivery control Sales MANUFACTURING Purchasing Order obtainment Order fulfillment Marketing Aftermarket service supply chain Customer service Information control Personnel Development Warranty… etc. 3 Sam Tomas

Order Fulfillment Departments 4 Sam Tomas Sales Accounting Purchasing Receiving Production Quality Packaging Shipping Accounting Generate Sales Submit Orders Check Credit Approve Credit Purchase Material Receive Material Produce Assy A Produce Assy B Produce Assy C… ASSY Product Quality Assurance Release Order Product Packaging Product Shipping Invoicing Customers Cross-functional communications difficult. Typical customer complaint: No one person is in charge of the entire group of processes. SILOS

Improvement Choices Reengineering (BPR): Re-designing processes Lean: Improving Efficiencies of Core and Non-core Processes Six Sigma: Reduce Variability & Defects to Improve Product Quality Identifying and Solving General Generic and Systemic Problems Organizational Agility: Being quick and well coordinated Organizational Flexibility: Ability to rapidly accommodate different requirements Information Technology: Making operational information available as needed Innovation: Ability to rapidly provide new products and services Supply Chain Management: SCORE Model Employee Skills Rapid Product Design and Development Simplify Business Complexity 5 Sam Tomas

To Be Competitive: Boldly Go Where No One Has Gone Before! 6 Sam Tomas