Ideas into Action Blog

28
Jul

Standardised Work: Discuss

Many people and organisations outside of the lean community are wary of the concept of standardised work. The belief, probably arising from the terminology, is that standardised work means detailed unchangeable work instructions imposed on others, “robotising” work and, therefore, removing the scope for individual flair or creativity.

Posted by Ross Maynard on Wed, 28 Jul 2010   read more...

 
15
Jul

Value Stream Definition - At the heart of Lean Accounting

One of the keys to a successful lean accounting implementation is getting your Value Streams right. That is not to say you cannot change your defined Value Streams once you set them (indeed many organisations do change their Value Streams over time) but rather aligning your costs to Value Streams will only help drive improvement if that alignment is meaningful. Go too deep and you will have too few direct costs and very
many unallocated "support" costs. This is meaningless. Stay at too high a level and the financial data will be too aggregated to be of use in operational improvement.

Posted by Ross Maynard on Thu, 15 Jul 2010   read more...

 
24
Jun

Value Adding and Value Added

In lean, we are familiar with the concept of “Value Adding” activities – those activities which transform a product, service, information or cash in a way which the customer would be willing to pay for. The purpose of “lean”, of course, is to remove non-value-adding activities (i.e. waste) and, thus, create free capacity which we can use for more value-adding activities which (with the same level of resources) generates more profit.

 

In accounting, we also have the term “Value Added”. This has a specific definition and is the sales value of output less the value of all external inputs. That is to say that “Value Added” is sales income less the cost of bought-in goods and services.

Posted by Ross Maynard on Thu, 24 Jun 2010   read more...

 
31
May

Value Stream Mapping

With many books and resources on the subject, some expounding complex symbols and definitions, Value Stream Mapping can seem difficult and offputting. In fact it is straightforward and the best way to get started is with simple "Post It" (TM) notes. There are some good "how-to" videos on YouTube. Here are my favourites:

 

http://www.youtube.com/watch?v=3mcMwlgUFjU

 

http://www.youtube.com/watch?v=7R5Mv486oQQ&feature=related

 

As for the data you should collect. Try this for a starter set (the bold items being the critical ones):

 

  • Total time from customer order to receiving an order (customer lead time);
  • Total time it takes an item (on average with standard deviation) to move through the process (manufacturing lead time);
  • Total estimated actual processing (touch) time for the item in the process (on average with standard deviation);
  • Number of items processed per day (with standard deviation)
  • Total available time per work day
  • Number of people in process
  • Regular planned downtime, meetings etc
  • Frequency at which work arrives into the process(pattern of arrivals)
  • Cycle time for each activity (average time to perform the activity, with standard deviation if possible)
  • Quality level (% right first time) and quality issues at each activity step
  • Average time (with standard deviation) waiting in queue to be processed at each step.
  • Distance travelled for jobs (walk time)
  • Information/ paperwork required and completed
  • Delivery schedules
  • Inventory levels
  • Equipment used; resource constraints

 

Happy mapping !

Posted by Ross Maynard on Mon, 31 May 2010   read more...

 
24
May

NLP Master Practitioner Certification Programme, Falkirk from September 2010

Our 15 day NLP Master Practitioner programme is certified by INLPTA, the leading international register. The programme starts in September and is delivered over four long weekends – one per month – until January 2011. Contact us for a full course outline.

Posted by Ross Maynard on Mon, 24 May 2010   read more...