Name

Joe Lombard

Role
Consultant
Professional Skills
Diploma in Industrial Administration
Diploma South African institute of Management
Toyota Graduate School of Business, Durban Westville University, South Africa
32 years at Toyota South Africa
CMCE Consulting Diploma - UK
Trained in Lean in South Africa, Japan & Thailand
Consulting Experience:-
South Africa, United Kingdom, Germany, France, China, Australia
Industries Consulted
Motor Industry and OEMs, aircraft manufacturing, ship building, building
construction, nuclear,
engineering administration, general manufacturing industries.
Interests
Sport Angling Provincial (State) colours in South Africa.
DIY house renovations & upgrades etc.
Rugby Union
 The Need for Change
Highercustomer
Higher customer Increasingcompetition
Increasing competition
expectations&&
expectations ininthe
themarket
market
requirements
requirements

Why must any

company
continually
improve?

Rapidchanges
Rapid changestotothe
the
businessenvironment
business environment

Only the best companies will be successful!

 The Need for Change - WHY
Cheapertotobuy
Cheaper buy&&operate
operate Ourcompetitors
competitorsare
areincreasingly
increasinglyefficient
efficient
Our
Higherreliability
Higher reliability/ /availability
availability &&aggressive
aggressivenew
newproducts,
products,price
pricewar
war

CostReduction
Reduction Currentduopoly
Current duopolyininthe
themarket
marketbut..
but..
Cost
Excellentproduct
productsupport
support Potentialentry
Potential entryofofnew
newcompetitors
competitors
Excellent

Customer Competition
Requirements Why must
companies
continually
improve?

Business Environment
Riseofoflow
Rise lowcost
cost producers
producers
Weakdollar
Weak dollar&&high
highfuel
fuelprices
prices
Veryhigh
Very highproduct
productdevelopment
developmentcosts
costs
Worldeconomic
World economic markets
marketsstagnant
stagnant

Can we meet these challenges - how?

 Conclusion and Next Steps
Demanding customers, aggressive competition and a rapidly
changing business environment make continuous
improvement essential for business in Australia

We must embrace the concepts of Lean & Six Sigma to help

deliver these improvements

It is everyones responsibility to continually improve their

ways of working this is the day job

It is you who must drive improvement AND to

develop/engage a community of change agents

Change agents have a wide range of tools and techniques to

support your improvement initiatives you are not on your
own!

We must seek improvements today to secure the future of

Improving business performance is up to YOU!
our businesses as potential market leaders for tomorrow
Who is the customer ?
 Relating Customer Needs to
Internal

Id
en
Voice of the

ti f
Customer
Measures

y
th
e
Va
lu
Critical to

e
Customer
De
l
ive

Product / Service
rt

Key
he

Characteristics
Va
lu
e

Control
Influencing
and
factors
Manage

Delivery
Cost
Quality
 Requirements

Supplier (Int & Ext) Output Customer (Int & Ext)

Feedback
 Supplier
Supplier Agrees to Provide:
List the products and services the Supplier can
currently provide :- (for example)

Acceptable product quality

Packaging & presentation quality
Delivery timing and frequency
Competitive pricing
Stock holding policy
Escalation / communication process
Expectations of Supplier:
(Supplier Wants)
List the products and services the Supplier expects
from the Customer, including some stretch targets
that would separate an exceptional customer from the
average:- (for example give specific wants.)

Forecast accuracy
24 hours notice of change to plans
Feedback on supply quality
Feedback on delivery
Involvement in product / component / packaging
specification change
Customer Agrees to Provide:

List the information and support the Customer can

currently provide :- (for example)

Regular forecasted volumes

Regular production plan updated weekly
Quality specifications
Packing and presentation specifications
Regular performance feedback
Escalation process
Delivery dates/times (Kanban reqs)
Changes to business environment
 Change Requirements
Vision Skills Incentives Resources
Action
Plan
Change
Action
Skills Incentives Resources Confusion
Plan

Action
Vision Incentives Resources Anxiety
Plan

Action
Vision Skills Resources No Change
Plan

Action
Vision Skills Incentives Frustration
Plan

Vision Skills Incentives Resources False Starts

 INPUTS
What is required to maintain the key
process

Mini Business Boards (Visual Management Centres)

Clear communication & escalation process
Management & technical support internal & external
DIFOT product, production planning, etc.
Capacity plan
Quality services & product
Skilled managers & employees
Who is the customer ?
 PROCESSES
What key processes are required

Daily team & management meeting (MBB/VMC)
5S & waste walks (PDCA)
Practical problem solving process
Standardisation / work instruction / line balancing
etc.
Efficient planning / scheduling process / level
production
Efficient plant layout
Kanban
Employee skills training programme
 PROCESSES Contd
PROCESSES

HSE standards
Continuous improvement (Kaizen)
process
Employee engagement for CI & PDCA
TPM & QCO processes
Value stream mapping
 OUTPUTS
What are you required to supply?
Finished product to customer specification /
standard
Order completed on time
Full order delivered to customer on time
Order completed within cost framework (No scrap
etc)
Escalation / Communication process (Int & Ext)
 CUSTOMER
Expectations of Customer
(Customer Wants)
List the products and services the Customer
expects from the Supplier, including some
stretch targets that would separate an
exceptional supplier from the average.
(for example give specific wants.)

Product quality to required specifications

Packaging & presentation quality to required
specifications
 CUSTOMER Contd
Delivery timing and frequency
Delivery placement to specific location
Training support
Systems support
Technical and information support
Reaction / escalation time ability to
respond to
schedule changes
Recover / repair agreed response and
timing
when a failure occurs
 Improvement Opportunities

List some areas that currently require

improvement that will increase and improve the
value of the customer / supplier relationship (for
example)
Weekly production plan to be circulated at set
times each week
Supplier to carry e.g. 4 days stock on hand at own
premises and available for delivery within 4 hours
of notice
Customer to give a minimum of 4 hours notice for
change to planned delivery
Two way performance measures to be implemented
and exchanged on a regular weekly basis
 Measures: Actual Vs Target

Measures to be realistic, available and

easy to capture. Ensure measures flow each
way, measures of customer performance as
well as the usual supplier performance
(for example)

DIFOT delivery in full on time

Schedule achievement
Forecast accuracy
Plan changes current month
 Corrective Action & Escalation

Describe required response when supply conditions

are not met as defined by agreed performance,
quality, timing and placement requirements and
measures, (for example)
One only damaged carton of product - reworked on
site, no back charges
More that one carton of product damaged
reworked on site, labour and materials to be back
charged
Only one pallet per truck load damaged load
accepted, pallet reworked and all costs back
charged
More than one pallet per truck load damaged load
rejected, transport costs to be borne by the supplier
 Action Plan
Agreed Action: By By
Whom When

Supplier Team: Date agreed:

Customer Team: Review date

Any questions ???