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Bell Business Insights newsletter

May 2009 edition

Ways to save through transformation initiatives

In this issue

Use what you already have

Reduce your cycle times by 30 to 70 percent while increasing productivity by 15 to 30 percent, no matter what your business. Think it can’t be done? Think again. Business Transformation (BT) techniques zero in on how work is accomplished and help you find efficiencies – fast.   

Lean and the Toyota Production System (TPS)
Times were tough in Japan following the Second World War. Business leaders at the time realized that to be competitive with the U.S. and Europe, they needed to be much leaner while focusing on quality. What evolved is the Toyota Production System (TPS), a precursor to Lean and its central premise is:  are there simpler and more efficient ways of working that will produce an equal or better end result for the customer?

Make the best use of what you already have
Chances are high that TPS and Lean can help you make better use of what you already have by simplifying processes and tapping into existing resources. This is something that can be done right now, starting with opportunities that require no investment. Increase production capability, reduce cycle times or even reduce space and assets while maintaining production levels. BT can help you by identifying and eliminating waste in any of seven key areas:

  • Overproduction
  • Transportation
  • Movement
  • Latency
  • Overproduction/overwork
  • Inventory
  • Rework

Make use of this tried and trusted process that will help you get to your ideal end state of increased productivity, from goal setting to continuous improvement. Follow the steps below to get on the road to success!

Step 1: Define goals

Begin your transformation process by deciding on your goals, being as specific as possible. Identify the target product, product family, service or system that you need to improve. Then, before mapping out the work stream, choose the team that will help you analyze your current state and help you to plan for the future. Ensure that each area or stakeholder in the process is represented by someone who shares your enthusiasm, whether in sales, warehousing, or other parts of the organization.

Step 2: Build a map of your current value stream

To pinpoint inefficiencies and plan for the future, begin with Value Stream Mapping (VSM), a process that will help you to graphically identify and evaluate the value of all steps between concept and client. VSM does three important things:

  • Lays out the steps needed to bring a product, service or process from concept to reality
  • Reveals waste and measures process performance
  • Exposes the links between mechanical and informational processes

VSM analyzes business data, including current steps, process times, delays, information flow, inventory information, customer requirements, and more. Assembling sufficient accurate data is crucial, as it will influence the future state of the business. Once you have what you need, create a diagram that maps your current state, including total time taken, both in waiting and processing time.

Step 3: Plan your new state

First critique your current state, marking up your ‘map’ with ideas. Challenge all waste elements. Using a team approach and constructive criticism and analysis, come up with ideas of how to reduce waste.  Above all, be imaginative and action-oriented. Next, draw your future state VSM while keeping in mind the following:

  • Ensure that sufficient criticism and review has taken place
  • Align demand and output at each stage
  • Establish expected benefits and required investments, if any
  • Build in key performance indicators (KPIs)
  • Make sure that all steps in the process dovetail perfectly

Step 4: Create a plan of action

Use your map of the future as a starting point. Look at each improvement in turn and decide:

  • Which quick wins can be implemented immediately?
  • Can everything be done at once, or does sequential implementation make more sense?
  • Is there a logical order in which changes must be made?

Once you have answered these questions, decide on next steps and timetables. Then put your plan into action and start enjoying the results!

Step 5: pursue perfection relentlessly

Use KPIs to measure results and ensure that your initiatives are a success. Keep in mind that Rome was not built in a day. Your improved process will bring to light unseen waste that can be addressed in a new cycle of VSM, thus providing additional benefits. Think of it as continuous improvement – each time you get closer to perfection.

Want to learn more? Download our Business Transformation assessment tool to uncover the efficiencies waiting to be realized within your organization.

The business transformation group at Bell has been a market leader for more than 15 years, working with some of Canada’s most important enterprises and with businesses worldwide. If you would like to find out more about what Bell’s BT group can do for your organization, contact your Bell representative or click here to have a Bell representative contact you to discuss your requirements.

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