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Richard Keegan - Becoming Lean: Practical Steps to Build Competitiveness

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Lean tools and techniques are helping companies across the globe to address competitiveness within their businesses, building the capability of their people to identify issues and improve their operations. Lean is shorthand for focusing on effectiveness and efficiency across all areas of a business. This NuBook provides the basics of Lean to help you on your journey to achieve world-class levels of competitiveness. It uses the basics of benchmarking to help you understand your true competitive position as you take the first steps on the Lean journey.

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ABOUT THE AUTHOR

Richard Keegan works for Enterprise Ireland, helping Irish businesses improve their efficiency and effectiveness. He is well-known internationally for his work and teaching on benchmarking and best practice. He has several published business books to his name, which have been translated into Italian and Portugese, as well as being published in India.

His account of his participation in the Iron Butt Rally 2007 11,000 miles in 11 days across America on his Honda Gold Wing motorcycle is told in BUTT SERIOUSLY: First Time Out on the Iron Butt Rally: An Irishmans Story, published by Oak Tree Press as an ebook ISBNs 978 1 904887 50 8 (PDF), 978 1 904887 51 5 (ePub), ISBN 978 1 904887 52 2 (Kindle).

APPENDIX I: SELF ASSESSMENT QUESTIONNAIRE

INTROScope is a simple benchmarking tool, designed to introduce people working in a wide variety of businesses and organisations to the power of benchmarking.

Using a sample of questions drawn from some of the best available benchmarking tools, INTROScope invites you (perhaps with a few colleagues) to assess some of your organisations key practices and performance aspects against a model of best practice, and to discover how your assessments compare to those of hundreds of other organisations. Start by confirming the scope of your assessment, which could be a department, site or the whole organisation it will work at any of these levels, so long as you are consistent.

If you find INTROScope and its outputs useful, ask about the range of more sophisticated benchmarking tools from which you can select one suitable for your needs. You will have to invest a little more effort, but you are likely to find this well worthwhile as benchmarking results help you to shape your improvement plans with confidence.

How to Score

For each topic in the questionnaire (below), you choose the statement most appropriate to your organisation / site. This gives you a score the number in the dark band above: 1, 3, or 5. Sometimes, you may feel that your organisation is between two statements. In this case, choose the number between the two statements: 2 or 4.

If you see differences across your organisation, where some areas are more advanced than others, it is best to assess an average position. For example, a pilot implementation does not warrant the maximum score of five. You are trying to assess your position TODAY, not where it will be when current plans and projects deliver the results you expect. Benchmarking will only ever be of value to you if assessments are true reflections of the practices and performance of the organisation as it is NOW.

The INTROScope questions

INTROScope questions are drawn from the longer questionnaire scripts used by five of the best available benchmarking tools:

  • Manufacturing Microscope.
  • Service Microscope.
  • The Micro Business Review.
  • Manufacturing PROBE.
  • Service PROBE.
Topic
1Role of leadership in developing customer-focused cultureLittle attention paid by top managementSupported by top management, delegated downTop management visibly promotes and actively participates
2Service/product meeting customer needsService/product does not consistently meet customer needsService/product generally meets customer needsService/product produces results that consistently meet and exceed customer needs
3Quality performance, relative to industryPoor overall quality record, compared to industryAchieved levels about equal to the industry standardAchieved a reputation for excellence in quality services and products that is notable in the industry and significantly better than the competition
4The time it takesWe lose some business because it takes longer than customers want to wait to make/ deliver our products/servicesOur speed is neither a strength nor a weakness for us in gaining businessWe win business because we are quicker than the competition
5Quality mind-setProblems will happen. Deal with customer complaints.Inspection and control with some data collection.Total quality mindset. Quality is everyones job, and employees take ownership of process.
6Training and educationAd hoc, no planSome skills and development training for all employeesMore than 5% of each employees time devoted to training with strong emphasis on quality
7Problem-solvingCrisis mindset, confusion, finger-pointingSystem for recognizing and responding to problems, emphasis on process not people, teamworkProblems viewed as opportunities for further improvement, employees empowered to correct
8Employee moralePressure and stress, anxiety about future, cynicismStability, status quo or moderate progress, occasional stress situationsControlled environment, growth opportunities, consensus on direction, optimism and confidence
9InnovativenessNo recent innovations in service/product concept and processRegular innovations in service/product and an occasional major breakthrough innovationMany innovations; recognised as a leading innovator in industry/segment
10New service/product design and development processNo identifiable process for improving existing services/products or for new service developmentAd hoc basis; services/products developed and improved regularly but no set processFormal and reproducible process for developing new and enhancing existing services/products
11Management of business processesNo attention to business processes (for example, customer billing process)Key processes defined and mapped; initial steps taken toward redesigning and improving these processesKey business processes managed and redesigned where needed; process owners in place; process performance measured
12Reliability of equipment and machineryWe only maintain things when they break down. Perhaps this is why we have frequent problems with equipment (computers; equipment used in delivery of our products/services)Maintenance is carried out to the makers instructions. We plan time for this in order to reduce the risk of failure. We have adequate data security and back-up proceduresWe take maintenance seriously. We try to anticipate problems and are prepared to invest time/money to prevent them. The people who use the equipment day to day take responsibility for looking after it.
13HousekeepingCluttered and disruptiveOrganisedClean, orderly, minimum work-in-progress, self-maintained, always tour ready.
14Relationships with SuppliersMany vendors, seek low bid, no certification programmeA few certified suppliers, Just-in-Time for hardware and consumablesPartnerships with certified suppliers, Just-in-Time deliveries, involved in product/service and process design improvements
15Product/ Operating costsProduct/Operating costs greater than the competitionCompetitiveProduct/ Operating costs lowest in the industry
16Level of customer satisfactionCustomer expectation often not met; some customer complaintsLittle customer dissatisfaction; expectations met, but rarely exceededMany delighted customers; customers will enthusiastically recommend the service/product to others; expectations often exceeded
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