Lean Thinking at RBS Richard Hallett 6th September 2006

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Lean Thinking at RBS Richard Hallett6th
September 2006
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Agenda

• RBS Manufacturing
• RBS Pan Manufacturing Lean Initiatives
• Turning Tools Into Behaviour In Payment
  Operations
• Payment Operations Initiatives
• Payment Operations Focused Initiatives
• Final Thoughts

Exploring
Executing
Sustaining
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RBS Manufacturing

• Non - Operations
• Human Resources, Manufacturing
• Group Business Improvement
• Group Property
• Group Purchasing
• Group Security Fraud
• Group Technology
• Manufacturing Finance
• Manufacturing Risk

• Operations
• Retail Service Operations (South) National
  Sales
• Retail Service Operations (North)
• Service and Operations Group Brands
• Corporate Service Operations
• Mortgage Operations and Collections Recoveries
• Payment Operations
• Operational Support Development
• Manufacturing, Ulster Bank Group
• Technology Integration

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Payment Operations
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Pan Manufacturing Lean Initiatives
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High level approachBuilding operational
capability
Target participants
High potential employees, nominated for
assessment by business and S.I. Managers
PLUS data types, QFD, value stream mapping, sigma
calculation, SPC, descriptive stats, control
plans, hypothesis and regression analysis, change
management, measurement system analysis,
repeatability, DOE
Cross business unit/ Divisional complex projects
Black Belt
Directors, Centre Managers, Ops Managers, CSM,
CI/SI Managers, S.I. Team
PLUS voice of the customer, critical to quality,
failure mode effect analysis, data collection
planning, process capability, process mapping,
basic change, basic statistical tools, control
Operational excellence - centre focused
Green Belt
Identifying removing non-value add
Team Leaders, Operational employees
PLUS 5S, huddle boards, waste walks
Fundamentals of Lean
Fishbone, brainstorming, run charts, check
sheets, flow charts, pareto
Ability to improve local work processes
All levels
Team Based Problem Solving
Support tools - Lite and Express OPDs, Lean REs.
Six Sigma Lean based MI
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Pan Manufacturing Lean Initiatives

• Design Principles / 3rd Generation Centres
• Customer hand offs minimised through enhanced
  processes and systems
• Processes designed for maximum customer quality
  and efficiency
• Processes designed to get It Right First Time
• Operating models to be Customer focussed, based
  around segments and/or Brands
• Retail, Corporate, and banks Helpdesks being
  aligned with these principles

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A Move to New Measures
Initial Lean REs
Value Measures
As-Is
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Turning Tools Into Behaviour

• Continuous Improvement Principles For Centre
  Managers

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Learning by doing and seeing

• Exercise
• Two volunteers!

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Learning by doing and seeing

• Most improvement would not be realised without
  courage and patience
• Improvements will not show there true worth until
  they become familiar
• Old methods may be easier but this is because of
  familiarity not because they are better
• Clear Visual Standards facilitate successful
  change

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Turning Tools Into Behaviour

• What is the problem?
• Why is it important?
• What is the solution..
• Lean is not a set of tools its a Behaviour
• PDCA frames that Behaviour and leaders are the
  key
• What is the starting point for Continuous
  Improvement?

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Innovation and Continuous Improvement
Performance
SDCA
Innovation
PDCA
SDCA
Time
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Performance Management

• The ABC model
• Antecedent Behaviour - Consequence
• Consequences control outcome
• Doing nothing is doing something
• Every behaviour has consequences
• Consequences increase or decrease behaviour

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What is a Managers / Leaders Role?

• Establish Standards
• Maintain Standards
• Support And Drive Continuous Improvement Of
  Standards
• Support And Drive Improvement Of Flow
• Teach Others

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7 Rules for Leaders

• Safety First
• Make a rule keep a rule
• Simple is Best
• Small Steps
• Continuously CHECK before moving on
• PDCA
• For every problem 5 Why
• Go and See

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Payment Operations Initiatives
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Waste Walks

• Are the basis for feedback
• Are fundamental to maintaining standards
• Golden Rule
• No involvement, no commitment

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Payment Operations Initiatives

• Waste Walks

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Payment Operations Initiatives

• Waste Walks

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5S - A work place that talks to you

• Easy to do
• You must provide consequences for 5S behaviours
  or they will not be maintained
• Apply to communal areas first
• Is a means, not a goal

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Payment Operations Initiatives

• 5S

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• Error Management - lite

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Payment Operations Initiatives
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• Error Management - Full Fat

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Error Autopsy

• Poka Yoke - Core Lean approach to quality
• Provides a structure for evaluation of known root
  cause
• Evaluating the status of process controls
• Seeing range of options available
• Any process failures lead to a process stop,
  appropriate escalation, containment and
  correction
• Stop, Call and Wait

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Quality Assurance Controls
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Worked Example

• System Error displayed on screen was not
  understood by the OPC staff. This error message
  is created when a payment transaction is
  attempted on non-standard accounts. The OPC staff
  failed to realise that the customer account was
  an Offset Account
• to prevent this situation from happening again,
  this error has been brought to the attention of
  the member of staff concerned.

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Current Score
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Worked Example

• To improve the robustness of the system to this
  error and increase the score the team could for
  example check the account type at the Eflex
  logging stage. Depending on how this was
  implemented, the score for layer 1 Source
  Inspection could be increased from 0 up to a
  maximum of 3.
• Another opportunity for the team would be to
  begin to log the types of errors being generated
  at the keying stage and plotting these at the
  Huddleboard. This would raise the score of the
  layer 3 Process Control to a score of 2.
• Finally quality could be improved by having the
  team leader/production manager check each of the
  quality layers is performing as we expect. The
  frequency of this check will determine the layer
  5 score.

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Future Score
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Payment Operations Focused Initiatives
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Final Thoughts
Business Processes
Philosophy Culture Behaviour
People Being Lean
Tools / Training

• A challenge lies ahead, but we have the tools and
  the framework to make this work and with
  consistency of purpose we will succeed