Tag Archives: performance improvement

Lean Office & Management Training

The training referred to below is currently being revised and upgraded. Please visit our new website www.Levantar.co.uk or go directly to Lean Office Management Services page on the website.

 

Despite the inflationary pressures and ups and downs of the wider UK economy, UK manufacturing has continued to grow both in terms of outputs and productivity. Indeed in recent observations the most resilient manufacturing firms will be those exporting. This in a sector often more linked with exporting jobs not products!

Can service organisations and office departments learn from the manufacturing firms and departments? learn the continuous improvement techniques that have made these firms more efficient, more productive and more resilient?

learn how to

  • increase the capacity of their departments,
  • get through work faster,
  • reduce errors and
  • positively impact cash flow!

Can service organisations learn how to get more out of their current resources? How can non-manufacturing departments support the shop floor improvement initiatives?

Lean thinking techniques which have been prevalent in UK manufacturing for many years have been translated and applied in offices, distribution and retail environments by many companies including Tesco, Zara, HMRC, Starbucks etc so these continuous improvement techniques can be applied outside of manufacturing to departments such as marketing, sales, accounting, hr and they deliver results in the form of Lean Office and Lean Management.

It gets better in the UK if you’re in Yorkshire or Humberside, not only can you learn the techniques but you can get 50% towards the investment in training. There are no restrictions on sectors, business size or turnover, you must be privately funded though. (Public sector organisations and those outside the Yorkshire & Humber region can complete the course and get the qualifications but the funding is NOT available to them)

The training runs to a total of 24 hours of training (3 days or 6 half days) + a work based project and leads to a qualification for the attendees and the course is overseen by Leeds University Business School and MAS Yorkshire & Humberside.

The article Lean Office, Lean Management Training – Yorkshire and Humberside details the specific offer and how to get the training course (3 days, 6 half days etc) for an investment of just £750 per attendee.

Courses can be tailored to the specific needs of a company if it wishes to put a number of staff through a course.

The Lean Office course is one of  9 continuous improvement courses that follow a similar framework, 3 days of training, work based project and qualification via Leeds University Business School and Manufacturing Advisory Service through their Manufacturing Masters programme and they can all be funded.

Getting the Order out

In the last year UK Manufacturing grew productivity by 5.7% (source EEF),this means that many manufacturing companies will be

  1. better at getting products and orders out on time – that end of day or Friday afternoon last minute chasing of jobs is reduced,
  2. increasing the margins and profitability of their business,
  3. improving the quality of what they send out,
  4. starting to sleep better at night knowing that they can pay bills when they come due. 

So just a couple of thoughts?

  • Have your team (managers and staff) delivered similar improvements? more products and orders out on time, increased profits, better quality,  and confidence that the business current account can pay the bills!
  • Are you getting better returns, every year, from the same levels of investment in people, machinery, raw materials?

If not, how could that be? remember 5.7% is an average, so some companies will have gained much more than this and the cash that goes along with it*

If you haven’t had such gains,

  • Do you and your teams have the time to look for productivity improvements or does the day to day get in the way?
  • Do you think your teams know where to look for productivity improvements?
  • Are they too close to the work to give you an objective assessment of what could be improved?
  • Would you like to get to the answers (& the cash, the improved performance it brings) quickly?

If you’re a manufacturing business owner or a manager who’d like to find out whether you could be getting better returns for your investment and improve your productivity there is a FREE scheme that can help you find out.

A FREE scheme? well it’s the Manufacturing Advisory Service which is one of the few business schemes which has survived the Government cuts.

What do you get for FREE then? you get to meet with an experienced manufacturing professional, normally at your own premises, so no travel involved, who will

  • listen to what you want to achieve, what you need to achieve to keep customers onside
  • understand the challenges you face (cash flow, quality, skills, etc)
  • appreciate how the experience, expertise and skills you already have can be built upon

from that they will be able to decide whether they can help and IF they can they will provide the names of accredited companies, with the relevant skills in Lean Manufacturing, ISO 9001, ERP, Product Design etc who can help you to improve your productivity.

Nearly forgot to mention the £6,000 FREE investment for productivity work. If you decide to invest in productivity projects, with an accredited supplier, then you could get up to £6,000 towards the costs.

Lots of paperwork? hoops to jump through? not normally, your advisors can help you with the small amount of paperwork to be filled in.

Do you qualify? Do you employ less than 250 employees? have a turnover less than 50M euros? see most companies will qualify.

ResQ currently complete work for MAS in Lean Manufacturing across Lincolnshire, Nottinghamshire, Leicestershire, Derbyshire, Humberside, Yorkshire ( East, West, North and South ).

If you’re in these areas and you’d like to know more about MAS then give us a call (01904 277 007 or 0115 711 7007) and we can see if we can help.

Outside of the areas above then go to the MAS website and give them a call.

Two companies that achieved much more than 5.7% are detailed below.

Case Study 1 – Lean Manufacturing FMCG, Warehousing & Distribution Company gains 14% Productivity increase.

Case Study 2 – Lean Manufacturing Printing Company gains 40% more capacity.

* the two companies in the case studies above gained 14% & 40% improvement by using Lean Manufacturing and Thinking techniques, we completed the work for them via the MAS scheme. 

This time next year you could be confident that customer orders are being

  • delivered on time,
  • delivering increasing profits,
  • safe in the knowledge that your business can pay its own way!

Oh and you may find you’ll be making 5%,10%,15% even 40% more this time next year!

Venetian Warships, Faster Horses and Legal Firms.

When a US law firm wanted to find a way of becoming more efficient and deliver legal matters more effectively they turned to a set of techniques that have their roots back when the Venetians built ships at the Arsenale, techniques continued by Henry Ford, once he’d noticed his clients wanted faster horses.

Today that law firm is lauded as being “5 years ahead of every other AmLaw 200  firm” and now claims to deliver legal matters some 15 -50% faster than before. Not surprisingly this has driven down costs, driven up satisfaction and helped to secure new customers.

On the 6th April 2011 Mark Greenhouse of ResQ will be presenting to the Yorkshire Law Society on the techniques that can be used to improve the speed of delivery whilst reducing costs and how this will affect firm profitability and pave the way for true Fixed and Alternative billing to take place.

For details visit Yorkshire Law Society Continuous Improvement in Law.

If you’re not in Yorkshire and would like to find out more then drop us your contact details on info@resqmr.co.uk  and we’ll get back to you.

Thanks,  Mark

Free Lean Management Training Course

From time to time, we offer free training via other organisations.  One such organisation we work with is Leeds, York & North Yorkshire Chamber of Commerce.

On the 25th March 2011, in Leeds, we’re offering a free 2 hour insight into Lean Management techniques. This is about how Lean can be applied across all departments in any organisation, so it isn’t limited to just manufacturing or profit facing bsuinesses.

So

  • if you work in IT, Finance, NHS, Public Sector, Service, Marketing or Manufacturing companies or
  • if your career means you are responsible for continuous improvement, process improvement, or training or
  • if you are faced with getting more out with the same or fewer resources

then this course will give you something to take away to use in improvement.

You can find all the details here LEAN MANAGEMENT TRAINING  COURSE

This session will show you how you can improve your business efficiency, by using tools and techniques developed in manufacturing and now proven within organisations, ranging from Tesco, Toyota, Zara, GE, NHS, Intel, Johnson & Johnson, Seyfarth Shaw (Law firm) through to Starbucks.

Lean manufacturing businesses found that more than 70% of their improvement projects lay not on the shop floor but in the offices and service based departments and so it has spread to these sectors. It will help to improve your business speed, capacity, cost control and quality whatever your sector or department.

If you’ve got any questions on this training then drop us a line.

Thanks

ResQ

Waste – is the UK Government getting it?

The new UK Government has announced plans to attack the “Waste of Rework” in the NHS, provider of the public UK hospital system.  BBC News – Hospital Face Fines

The Waste of Rework is the waste of resources (time, people, materials, equipment etc) when a process isn’t completed to the required standard. Consequently more of the resources have to be spent putting the work right – which also has a knock on effect on the subsequent work planned.

It doesn’t matter whether we are talking about metal forming, handling insurance forms, answering customer calls, or attending to patients, doing a job right first time, will use up less resources, than having to re-visit the job.  So this waste, from a Lean point of view, is pretty universal.

The change proposed is that if a customer (okay they do still call them patients, they haven’t admitted these people are customers who have paid for the service, through taxes!) is re-admitted within 30 days of being discharged then the hospital will not be paid for the second stay, if it is related.

Hence I’ve viewed this as the hospitals will no longer be paid for the Waste of Rework, so the incentive is to get treatment right first time!

Within many of the reports on this new ideal came the complaint that this change will lead to longer times in hospital and increase the length of waiting lists. The people making these claims have never seen any lean thinking or queuing demonstrations on the effect re-work has on the capacity of a system. Re-work lowers the capacity of any system and often by more than the measured rework figure.

So a 10.5% rework rate will reduce capacity by more than 10.5% because of the effects it has on planning, we use a calculation known as OEE (Overall Equipment Efficiency) to demonstrate this, don’t be put off by the manufacturing bias to the name of this, you can use it for any process.

Now I don’t have all the figures to understand this but the % of re-admissions as proportion of all discharges, in the NHS, went up from 8.8% in 1998/9 to 10.5% in 2007/8.  There is no indication whether this 

  • is a statistically significant rise,
  • is a consistent rise from 1998/9, or just 2007/8 was a high year
  • is a function of re-admissions within the new 30 day limit,
  • is due to a focus on treatment at home, which might carry more risks
  • or just a function of an ageing population.

Whether it will actually work or drive the correct behaviours we don’t know because is the problem of rework being caused by people being sent home to early, or by something else….

Now if the Government used the 5Whys to determine this waste, then we’d have a better idea…..

Regards,

Mark

P.S.   Do you know what the rework level is in your organisation?

Starbucks Lean Improvements

In case you missed it Starbucks claimed a TRIPLING of Profits and a DRAMATIC surge in customer satisfaction in recent weeks by using LEAN THINKING, but what exactly did they do?

According to this Lean Japanese Techniques story in The Wall Street Journal, they

  • Saved between 20 and 33% of the processing time in making coffee, which meant customers get a faster service
  • Used some of the time saved to engage with customers, driving customer satisfaction from 56 to 76%, in the branch cited.
  • Re-engineered deliveries to the stores to cut down on the 40 or so trips some staff had to make back and forth with early morning deliveries
  • Stopped making large batches of coffee grinds in the morning and now make batches every 8 minutes to keep the grinds fresh and the aroma wafting through the store
  • Used 5S techniques of layout and colour coding to ensure everything is to hand.

Showing you don’t have to cut go out and just costs with Lean,  you can use the freed up time to engage with customers and other techniques can be employed to ensure customers can get what they want.

cheers

mark

 

About the Author;

Mark Greenhouse has been working on the application of Lean management in Legal and design led Manufacturing companies for the past 5 years. His own Lean journey started back in 1988 when he started study of Production Engineering. He’s applied lean in many organisation types, finance, call centres, banking, FMCG etc. Mark also provides lectures on operational management at Leeds University Business School.

Lean: Crossing the Atlantic with your Coffee?

Read the stories in the UK today about the latest Starbucks results and you’d be forgiven for having no idea that they are running a Lean Thinking improvement programme.

Starbucks managed to TRIPLE their profits, whilst increasing dramatically their Customer Satisfaction, so not a bad result by any measure, I’m sure you’ll agree.

The BBC claimed ” The firm has cut thousands of jobs and shut hundreds of under-performing stores over the past two years to trim costs”,  whilst The Guardian reported “When he [Howard Schultz] retook control, he checked the company’s breakneck expansion, took out almost $600m in costs, closed nearly 1,000 stores, mainly in the US, and shut up shop for a day to retrain its legions of workers.”.

I would say blink and you’d miss any reference to Lean, only there aren’t any, not in anything I’ve read, heard or seen today.

Type “Starbucks Lean” into Google news and you get exactly 1 Hit (22.30 GMT 21/01/10), maybe this blog will make it two?

We looked for references to lean as we wrote this post Barista to Fashionista  back in May, when we learnt of Starbucks foray in to Lean Thinking, and we were intrigued to find out what effect it had on their results.

Go to the Starbucks Earning Call and the fuller story comes out.

Troy Alstead, CFO, claimed that “US store operating expenses were 36.6% of total revenues, a 350 basis point improvement over last year primarily driven by the continued application of lean principles in our store operating model plus the effect of company operated store closures.” So admittedly not Lean on its own but the improvement is hardly just due to cost cutting and store closures. Note it was the CFO talking about it too, how refreshing is that?

Howard Schultz, Chairman of the Board, President & Chief Executive Officer and Founder, commenting on what Starbucks will do in their international markets ” Now that the US business has come back the way it is and we feel it is healthy and on solid ground we’re doing two things, one is we’re doing a comprehensive audit of all the things that we did in the US business that worked, that got our customers back, that put lean in our store and things that not only were consumer facing but also behind the customer as well…..a store, is a store, is a store and we believe that we can provide many of the opportunities throughout international that we brought to the US business.” So Starbucks are convinced that lean is part of their future in the US and Internationally.

Howard Schultz also commented on the vast improvement in Customer Satisfaction “I will point out here that we improved labor management and labor costs in our stores over the past year at the same time we have seen a dramatic improvement in customer satisfaction scores.” Now I can’t be certain but I’m not sure that closing stores improves Customer Satisfaction scores or that traditional cost cutting programmes often lead to improved Customer Satisfaction and as Lean is the improvement project Starbucks refer to then I’d chance a guess that it was Lean that drove up the Customer Satisfaction. Our experience at ResQ tells us that this often happens, along with all the other benefits. (faster customer service, order delivery, higher levels of output, improved quality, increasing employee engagement etc)

So if you’re a Starbucks employee or customer outside the US then it looks like Lean is coming to a store near you and you’ve nothing to be afraid of and if you’re a competitor, how could you TRIPLE your profits and improve customer satisfaction…………?

If you have any comments or questions on the blog above then please fill in the box or drop me a line

mark.greenhouse@resqmr.co.uk or check our website www.resqmr.co.uk

regards,

Mark

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