Slide 1 © 2003 By Default!

Lean Assessment : Methodology

A Free sample background from www.awesomebackgrounds.com

Slide 2 © 2003 By Default!

How
Howable
ableisisyour
yourSupply
SupplyChain?
Chain?
Are
Areyou
youaware
awareof ofwhat
whatitittakes
takesto
tobe
becounted
countedamongst
amongstthe
thebest?
best?
Do
Doyou
youknow
knowhow
howGlobal
GlobalInvestors
Investorswould
wouldview
viewyou?
you?

Highlights

1. Align Manufacturing & Supply

Chain along medium and long
term business objectives

2. Make Supply Chain &

Manufacturing your competitive
weapon

3. Global Model for assessing the

Supply Chain capability

A Free sample background from www.awesomebackgrounds.com

Slide 3 © 2003 By Default!

A Free sample background from www.awesomebackgrounds.com

Slide 4 © 2003 By Default!

The awards model judges on 14 factors associated with manufacturing excellence and is scored on
maximum of 1200 points (12 factors are scored, other two are considered during awardees selection)

• Layout and MHS (100 pts)

• Focus on Customers (100 pts)

• Orderliness, Safety & Environment (100 pts)

• Internal Competence (100 pts)

• Visual Management (100 pts)

• Quality Systems (100 pts)

• Scheduling systems (100 pts)

• Supply Chain (100 pts)

• Inventory Management (100 pts)

• Asset care (100 pts)

• Operational Flexibility (100 pts)

• Innovation Adaptation (100 pts)

• Process complexity
• Leadership Commitment
A Free sample background from www.awesomebackgrounds.com
Slide 5 © 2003 By Default!

..and each of the 240 checkpoints are carefully pre-graded, so that the grades assigned are
directly indicative of the facility’s achievement…. on a look at – look for basis

World Class
World Class
A Free sample background from www.awesomebackgrounds.com
Slide 6 © 2003 By Default!

Facilities are assessed and scored without any bias and results have been presented
accordingly Focus on Customers
100.0
Orderliness,
Innovation Adaptation 83.3 Safety & Environment
80.0
Facility
68.0
60.0
69.1 Score
Quality Systems Visual Management
60.1 40.0
70.0
Previous
20.0 IMEA
71.0 Averages
Supply Chain 0.0 Scheduling Systems
71.0

World
72.7
63.4
Class
Layout &
Operational Flexibility
Material Handling Systems
69.0 71.1
69.9
Asset Care Inventory Management

Internal Competence

Sample Facility Score Previous IMEA Average World Class

Thus capturing both, the Extent and

A Free sample background from www.awesomebackgrounds.com
Balance of Growth!!
Slide 7 © 2003 By Default!

Assessment Criterion…..

1. Layout & MHS

Systematic efforts to minimize/eliminate non value added activities

Appropriateness of material handling options

Product flow and its suitability (with respect to least distance criterion)

Space utilization

Containerization and palletisation, etc

2. Focus on Customers

Availability of customer satisfaction ratings

Definition of the Internal and the External customer

Quality certification and ratings. Its application to improve processes

New product introduction

Knowledge of customer requirements

Market share etc

A Free sample background from www.awesomebackgrounds.com

Slide 8 © 2003 By Default!

Assessment Criterion…..contd.

3. Orderliness, Safety & Environment

Cleanliness of the facility

Systems to ensure orderliness and aesthetics, colour coding, etc

Records pertaining to safety & environmental upkeep

Performance on hygiene factors

Smoothness of material flow

Order and Countability of Inventory etc

4. Internal Competence

Organizational type and compatibility for successful application of teamwork concepts

Compensation of workers, job security, turnover rates

Investment in worker training

Communication and recognition environment

Teams problem solving capability and documentation etc

A Free sample background from www.awesomebackgrounds.com

Slide 9 © 2003 By Default!

Assessment Criterion…..contd.

5. Visual Management

Visibility of mission, vision, strategy, policy statements

Labeling of products, areas and equipment/tooling

Display of performance (man and machine) charts

Countability of inventory

Introduction of plant wide movements that ensure visible controls etc

6. Quality Systems

Quality certification

Process capability Indices

Efforts to reduce process variations

Impartment of training on quality (including SPC) to workers (besides staff)

Understanding and tracking of true cost of poor quality

Standardization of process parameters etc
A Free sample background from www.awesomebackgrounds.com
Slide 10 © 2003 By Default!

Assessment Criterion…..contd.

7. Scheduling Systems

Make- to- order or Make-to-Stock? and its appropriateness

Smoothness of flow and presence of bottlenecks

On time delivery fill rates. Flow efficiencies.

Existence of Pull type systems.

Space dedicated to material storage and handling

Identification of materials etc

8. Supply Chain

Supplier certification process

Supplier appraisal and feedback process

Average number of suppliers

Zero Inspection and/or DOL suppliers

Orientation of sourcing policies and accent on annual cost reductions etc

A Free sample background from www.awesomebackgrounds.com

Slide 11 © 2003 By Default!

Assessment Criterion…..contd.

9. Inventory Management

Levels of RW, WIP & FG inventory levels

Inventory turnover (compared to Industry average)

Number of inventory storage areas, incl line side storage, FIFO

Countability of Inventory

WIP movement trigger etc

10. Asset Care

Preventive maintenance versus Breakdown maintenance

Extent of machine availability and implications of reasons for machine non-availability

OEE

Operator routine maintenance, set uptimes, quality factors

Equipment Improvement policies etc

A Free sample background from www.awesomebackgrounds.com

Slide 12 © 2003 By Default!

Assessment Criterion…..contd.

11. Operational Flexibility

Degree of difficulty in altering product mix or revising production rates

Set ups and changeover times and Operator training towards these.

Projects towards changeover time reduction.

Extent of automation and computerization

Ability to control variations and to smoothen demand etc

12. Innovation Adaptation

Protocol for incorporation of newer technology into existing equipment

Schedule for imparting knowledge of newer technology to existing people

Is the system of monitoring capacity utilization dynamic

System for developing their own novel cleaning protocols that achieve cleaning validation
effectively

Protocol for measuring monitoring the gestation for a lab process into a successful commercial
manufacturing process etc

A Free sample background from www.awesomebackgrounds.com

Slide 13 © 2003 By Default!

Assessment Criterion…..contd.

13. Process Complexity

Type of configuration

Variety of products & volume

Capital Investment & variable cost

Flexibility

Labor content & skill etc

14. Leadership Commitment

Organizational structure and governance systems

A systematized process for planning and deploying of objectives/vision into implementable
action plans

Cultural allergy to non value added activities!

Tolerance of systems for absorptions of learning losses

Openness of management towards constructive criticism/feedback

Recognition and awards policies, if any

Reviews of leadership systems within the organization

Any acts of community responsibility etc
A Free sample background from www.awesomebackgrounds.com
Slide 14 © 2003 By Default!

Guidelines for Analyzing Facility Scores..

Total Assessed Implied Comments of the Assessment

Score for a Facility

981 to 1200 pts organization. Systematized focus on identifying and eliminating non value added
Lean organization. added activities.
Systematized sustenance of leanness is achieved. Focus on ensuring Continuous Improvement

766 to 980 pts An exciting and popular movement within the organization. Significant
Significant deployment of waste prevention
projects. Focus on attaining Reliability

546 to 765 pts A good beginning in achieving lean status. Ideas exists, but not systematized.
Still dependent on individual initiative

Upto 545 pts No significant progress in the race to become lean. Long way to go and performance levels
levels are not
reliable

A Free sample background from www.awesomebackgrounds.com

Slide 15 © 2003 By Default!

The Assessment Process will result in many soft benefits…

(besides competing for the award)

A Closing feedback session at the end of the site assessment, that will highlight

Observations on facilities and specific areas for improvements that are key to the facility
becoming world class.

Industry averages and comparative averages/matrices obtained and observed during the
assessment process will also be shared through the report.

Chronological trends will be reported, if significant.

The scores shall find a place in the ‘Manufacturing Health Index’ portal to enable
global players to seek inputs from the facility regarding the maturity of operations.

The site assessment report will be prepared and submitted only on

on specific request.

A Free sample background from www.awesomebackgrounds.com

Slide 16 © 2003 By Default!

Site Visit

A sharply focused exercise spanning over 2-3 days and conducted by 2 members of the assessment team

Submission of
Documents/ Reports Reqd
1. Analysis will be based on Quantifiable facts,
Managerial Interviews and Judgmental
Observations (made by the awards assessment team)
2. Reporting will be in the form of
Site Visit
• Radar charts that will attempt to quantify
observations on all assessable parameters
and
Meetings with Key Plant • Comments on major processes and their
Personnel shortcomings. Gaps that need to be addressed
so as to make the plant Lean, Flexible and
World class will be identified
Review/ Studies
(if found necessary)

Review/ Studies
(if found necessary)
A Free sample background from www.awesomebackgrounds.com
Slide 17 © 2003 By Default!

Confidentiality

All information (either shared or made known to us on account of the site visit) and report
(individual assessment reports of facilities) will be kept strictly confidential.

However, data and information obtained during the course of this event, will be compiled
into meaningful reports that will be industry/nation specific (not company specific).

The permission of the facility shall be sought prior to uploading their performance scores
on the MHI portal.

A Free sample background from www.awesomebackgrounds.com