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Business Process Improvement (BPI)

An Ideasmith Presentation
by

Monika Sharma

on 15 May 2014

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Transcript of Business Process Improvement (BPI)

AMIT ARORA,

"Ideasmith's knowledge is extensive and current, and he remains totally focused on our company's best interests throughout this process. Implementing Ideasmith's BPI has produced remarkable results. ”
BUSINESS PROCESS IMPROVEMENT
is a systematic approach using Lean tools to enhance efficiencies , productivity and competitiveness of organizations by eliminating WASTE from process , inventory , systems , space , transport , energy etc .

The Idea smith
deployed Cellular manufacturing- BPI tool. The results have eliminated space and transportation waste. Our WIP &cycle time has reduced by half . Quality defects and rework percentage has diminished significantly . "

Raj Kamboj
Sr. VP
- IBG Faridabad
(Manufacturers of shirts ,trousers, Industrial uniforms
& active performance wear)

MOPs
Manpower
Operations
Process
SAM

: the Organizational strength, Manpower , Process flow , Costs.

Shareholder Value
Employee retention
Return on investment
Consistency
Market Share
Customer Satisfaction
Quality
Efficiency
Revenue
Profit
BPI
INCREASES
(Manufacturer of high fashion wedding,
party , evening wear gowns.)
BALANCE
The optimum ratio required to support the operator minutes
available in the unit in order to
create a balanced FLOW

Cost Per Minute
Production Efficiency
Productivity
Absenteeism
Attrition

Reduced by 51%
Annualized Savings- 307.08 lacs

BPI
TOOLS DEPLOYED

Skill
Matrix
Evaluation
OEE
(Overall
Equipment
Effectiveness)
KANBAN
Kaizen
Poka Yoke
Cellular manufacturing
MOPs
Value
Stream
Mapping
Standardised
WIP
(one piece flow)
MD AVAL FASHIONS (NARAINA)
Cellular
Manufacturing

Cellular Manufacturing and work cells are at the heart of Lean Manufacturing.

Their benefits are many and varied. They dramatically increase productivity and quality.

Cells simplify material flow, management and even accounting systems.

COST PER MINUTE
Monthly Expenses of the Factory
___________________________________ =
Minutes available in Month*Target Efficiency

COST PER MINUTE
MOPS


The Ideal Lean
Organisation
Strength,
Machine to Manpower Ratio ,
Process Flow &
Costs.


The optimum ratio required to support the operator minutes
available in the unit in order to create a balanced FLOW


Machines Operators Process SAM
BALANCE
The Organisation
Annualized Savings- 307.08 lacs

Production Efficiency
Define Takt time

Reduce bundle size

Balance the flow

Create workcells

Regular kaizen

Standardised WIP


Skill Matrix Evaluation
LEAN AND BEYOND HAS MADE US GLOBALLY COMPETITIVE
Production Efficiency
OEE
OEE is a valuable metric to understand performance but it is even more valuable when you look at the other three metrics that make up OEE.
OEE stands for Overall Equipment Effectiveness.
OEE is a performance metric based on three other metrics:

QUALITY
PERFORMANCE
AVAILABILITY
Quality quantifies the losses from quality rejects.
 
Quality = Good Product / Total Product


Performance captures speed and micro-stop losses.
 
Performance = Actual Rate / Theoretical or Ideal Rate

Availability accounts for downtime losses as a function of the total planned operating time.
   
Availability = Operating Time / Planned Operating Time (Operators Present)

World class OEE for batch manufacturing is 85%

VALUE
STREAM
MAPPING
VSM is used to document,
analyze and improve the flow of information or materials required to produce a product or service for a customer.
A value stream map (AKA end-to-end system map) takes into account not only the activity of the product, but the management and information systems that support the basic process. VSM helps to reduce cycle time, identify value add and non value add time and activity and eliminate waste from the entire business cycle.

VSM helps to reduce cycle time, identify value add and non value add time and activity and eliminate waste from the entire business cycle.

BALANCED
SCORECARD

A Balanced Scorecard defines what management means by “performance” and measures whether management is achieving desired results.

The Balanced Scorecard translates Mission and Vision Statements into a comprehensive set of objectives and performance measures that can be quantified and appraised.

BSC Comprises of:
Reduced by 72%
Increased by 90%
Decreased by 50%
Increased by 33%
Ideasmith's knowledge is extensive and current, and he remains totally focused on our company’s best interests throughout this process. Implementing Nimish’s recommendations has produced remarkable results, and he has helped us develop a comprehensive strategy to maintain and improve going forward.”
Chandni Sachdev – MD Indo Bristish Garments – India and Jordan
THE
JOURNEY
BEGINS
Business Health
Diagnosis
FINANCIALS
SKILL MATRIX
ORGANISATIONAL
DEVELOPMENT
PRODUCTION
EFFICIENCY
SUPPLY
CHAIN
MANAGEMENT.
LEAN
&
SIX SIGMA
QUALITY
ERP/MIS
OTHERS
Analysing the past 12 months data, In order to define
Sales
COGS
Contribution
Bottom line
Efficiency
Cost per minute
Cost per piece
Total Monthly expenses
Current
Define the future state
Publish future fiscal budget
Establishing systems to monitor
COGS
Contribution
Daily cost report
Weekly budget Tracker

Find skill set required
Skill evaluation of existing manpower
Systematic selection
Skill development & training

RECRUITMENT
Re-engineering of organisational structures
Short term reward system
Define KRAs and KPIs
Performance appraisals
Performance based reward system

Set up IE department
Efficiency monitoring
Efficiency improvement
Fishbone & Pareto analysis
Planning and Monitoring

Outsourcing system development
Store inventory management
Raw material consumption wastage monitoring
Cost Overruns and recovery system
Find best suited ERP
Implement business monitoring & Information system
AS PER REQUIREMENTS.
NOT LIMITED TO THE ABOVE
LEAN TOOLS
Balance Score Card
SMED
CELL
manufacturing
TPM/TQM
Visual Factory
JIT
FMEA
5s
Fabric sourcing
Trim sourcing
MIS executives
PPC department
Finance executives
Quality
Executives
Production
Industrial
engineers

Others
Value stream mapping
www.theideasmith.net
8 Lean wastes
T – Transport – Moving people, products & information
I – Inventory – Storing parts, pieces, documentation ahead of requirements
M – Motion – Bending, turning, reaching, lifting

W – Waiting – For parts, information, instructions, equipment
O – Over production – Making more than is IMMEDIATELY required
O – Over processing – Tighter tolerances or higher grade materials than are necessary
D – Defects – Rework, scrap, incorrect documentation
S – Skills – Underutilizing capabilities, delegating tasks with inadequate training
Full transcript