【正文】 under the remended approach, and potential barriers to change ? Estimate of people and time investments required Key questions LAN010608119718320507 30 PROPOSED APPROACH: 10DAY DIAGNOSTIC PROCESS ? Visit, observe, and conduct analysis of the operation(s) across 3 areas – Operations performance and potential (cost, throughput, quality, material flow, etc.) – Core process performance (ordertoship, maintenance management, CI, etc.) and anizational design – Barriers to success ? Identify major improvement areas Synthesize the results of the effort ? Rough estimate of size and nature of the opportunity ? How to capture it and where to start ? Perspective on resource requirements and barriers to success ? Highlevel estimate on rampin of savings for a wellexecuted program Phase 1 Phase 2 Phase 3 Data request and preparation Onsite observations and analysis Synthesis and presentation 5 days Day (10) 2 3 days ? Gather data (as much as possible) prior to onsite visit to maximize value of visit (data request sent in advance with some minor discussions to clarify data) ? Conduct 12day visit at head office to review – The anization – Product mix and flows from woodlands to customers and key decisions drivers (., margins by grade, needs and profitability of customer segments) – Corporate decision processes influencing operations – ., production planning process – Unique conditions at facilities to visit ? Hold introductory discussions with key managers to refine approach and identify improvement hypotheses LAN010608119718320507 31 MAIN DIAGNOSTIC WORKSTREAMS IN PHASE 2 Assessing core operations performance and potential Assessing performance of core functions and crossfunctional processes, and anization design Understanding the barriers to success Description ? Develop value stream map from raw material to customer – understand trendline performance around production output, cost, quality/service – Valueadded and lead time – WIP/inventories levels – OEE of bottleneck (including maintenance performance) – Compressible cost performance by stage – Delivery accuracy – Customer service ? Draw early hypotheses on root causes for production losses, and variations in quality ? Analyze key levers to maximize margins and yields – Price and margin by product – Cost impact of choice made on the log – Volume and profitability by customer – Operations’ flexibility Proposed approach ? Deep dive in one plant with 189。I flow ? Problem RCA and confirmation ? 1:003:00 . OEE estimation ? 5:00 . 15 minutes summary meeting ? 8:00 . 15 minutes planning meeting ? Begin target state design – Information – Material ? Calculate rough opportunity in model area – Scale throughout ? 5:00 . 15 minutes summary meeting ? 8:00 . 15 minutes planning meeting ? Complete end state design ? Design proposed scorecard metrics ? Develop tactical implementation plan (draft) ? 5:00 . 15 minutes summary meeting McKinsey team ? 2 fulltime team members ? 1 halftime project manager and parttime manager ? 3 fulltime client team members Committed regular involvement 2550%* ? Area managers。s approach to capturing opportunity – Ideal and target future states – Transformation model and approach – Typical end products for diagnostic ? Sample work plan – Work plan and resources – Principles and expectations ? Questions and discussion LAN010608119718320507 9 Source: McKinsey Overproduction Producing too much, or producing too soon Overprocessing Processing beyond required standards Intellect Failure to fully utilize the time and talents of people Motion Movement within a process that does not add value Rework Repair or scrap Transportation Unnecessary transport between processes Inventory Excessive raw materials, WIP or finished goods Waiting Parts, machines, or people TYPICAL TYPES OF OPPORTUNITY The 8 types of waste LAN010608119718320507 10 Attributes of a lean system ? Human resources at all levels focused valueadded activity ? Reliable, ready, and capable machines focused on adding value ? Constant flow of product in the value stream ? Compression of plete value stream to reduce lead time close to process time ? Marketpaced level production ? Pull vs. push systems ? Pressurized, visible, transparent operations with high performance focus ? Builtin quality ? Culture of continuous improvement ? A human resource environment for team member input based on human ingenuity vs. machine design Relentless elimination of waste Process time Process steps A B C D E F . . . Seamless flow between steps with no time or inventory buffers 100% valueadded Perfectly balanced IDEAL FUTURE STATE LAN010608119718320507 11 TARGET FUTURE STATE ? Longterm aspiration, end state ? Aligned with business strategy Nearterm feasible objective ? Specific design state and operating conditions ? Road map of target metrics ? Supported by Policy Deployment and Tactical Implementation Plan ? Validated by senior management as relevant and credible Vision ideal state Current state Target state ? Detailed picture of current system, operating performance, and methods Business need and strategy Opportunity indicator . . . Strategic options defined . . . LAN010608119718320507 12 *Data based on two sample work days, assuming an average possible output of 7 to 8 units Performance Indicator Measure November March June December Y1 Y2 Total cost Index 16 Productivity Man hours/unit Inventory ? Raw ? WIP ? F/G Days Days Days Qual