Lean Six Sigma Summit Lean Six Sigma ... - Lean Applied

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Lean Six Sigma Summit Lean Six Sigma ... - Lean Applied

Lean Six Sigma Summit

Lean Six Sigma & Performance Excellence

Nov 1st and 2nd 2011



Why Corporate Malaysia needs Lean Six Sigma &

What are the key points to success



Mohd Azlan Abas

Head of Operations Performance

Petronas Dagangan Berhad

!1


Who am I

• 8 years Lean 6 Sigma practitioner

• Served several global and

multinational companies

• A trained Mechanical Engineer

specializing in several other

operations related activities

• Lead business and teams in

executing commercial and

technical areas

• Interest in reading, exploring,

occasional sports, hates Glee and

Desperate Housewives

!2


Contents of Presentation

• Growth of economy and the impact

• Malaysia 2020, what's in it for you

• Focus results area for GLC

• Human Capital in the new world

• Innovation & Improvement

• Reinvigorating private investment

• Quality of life

• Strengthening the Public Sector

Lean Six Sigma

• Performance Excellence

!3


Global Economy Moving Forward : Clouds on the Horizon

• Expect slower growth in global economy through 2013 on spillover effect.

• Growth to pick-up from 2013 onwards, on robust emerging economies and slight

recovery in advanced economies.

• Strong growth in emerging Asia is set to moderate as monetary tightening to

fight inflation takes hold.

• US will not default its debt.

• Global economy will avoid double dip recession.

Source : Corporate KPBIs for FY 2012 – FY 2016

!4


Regional Economy : Slower Growth

% GDP GROWTH 2010 2011 2012

ASEAN-5

Indonesia

Thailand

Malaysia

Vietnam


6.1

7.8

7.2

6.8


6.4

3.5

5.0

5.8


6.3

4.8

5.3

6.3

Philippines

7.6

4.7

4.9

• Asian NIEs (South Korea, Taiwan, Hong Kong, Singapore) are expected to slow from

8.4% in 2010 to 4.7% in 2011 and 4.5% in 2012 .

• Real GDP growth of ASEAN-5 (Indonesia, Malaysia, Thailand, Vietnam, Philippines)

is projected to slow from 6.9% (2010) to 5.0% this year and 4.6% in 2012.

• The bigger quantum of slowdown in Asian NIEs compared to ASEAN-5 reflects the

base effect from the double-digit growth in 2010 (i.e. Singapore, Taiwan) and the

greater dependence or exposure on global trade and financial services in Asian

NIEs relative to ASEAN-5.

Source : IMF World Economic Outlook

!5


Outlook for the Malaysian Economy : Moderation in Growth

FY 2010/ AF PE FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

2011 2011

GDP (%) 7.2 5.0 5.3 5.7 5.4 5.0 5.0

INFLATIO

N

1.7 3.3 3.2 3.1 3.0 3.0 3.0

Source : Corporate KPBIs for FY 2012 – FY 2016

!6


Crude Oil: Brent prices for KPBI FY 2012 – 2016 is in a range of

USD 82 – 91/barrel

130

98

Brent Price

96 104 114 123 114 114 116 110 114

$/bbl

65

33

0

Jan-11 Mar-11 May-11 Jul-11 Sept-11

• Recent events over the last 6 months have changed the global economic and geopolitical

landscape and impacted oil prices significantly.

• There are mainly 3 factors that impact fundamental oil prices i.e. demand, supply and cost of

production. Considering these fundamentals, a floor price of approximately USD 75 -90 /bbl can

be considered as reasonable.

• Apart from the fundamentals, financial markets have been playing a significant role in defining oil

prices. Taking cognizance of this additional variable, the oil prices could be projected to be

around the USD 94 - 98/bbl range.

Source : Corporate KPBIs for FY 2012 – FY 2016

!7


The frog in a boiling water!

• Economic growth are never drastic

• GDP ranges between 3% to 7% per annum

• Challenges in energy price will persist

• Plans have been set 2020 vision, ETP,

Corridors etc.

• Global and region trends plus

historical shows this

• We have to be aware

• We will get there!

!8


A developed nation!


• Better standards of living

• Done right, better environment

• Better quality family life

• More Equality

• Opportunities & Higher Income

• Freedom

• Longer life expectancy

• Better education and health

!9


The fast and the furious

• Death of big conglomerate

• Rise of entrepreneurship. And taking over of market share by SMEs

• Dinosaur are slower than flies

• But they can travel further

• Simplicity over complexity

• Multitasking over specialty

• Economies of vertical integration

versus horizontal integration is

better

• Big companies must do things

better

!10


Focus and shoot!

• Trend is to unbundle businesses

• Concentrate on several focus and

related markets or segments

• Get profitability not revenue, reinvest be

better competitively

• Independently operate but leverage

compatibility

• Can't do it better diversify, can do it

best acquire,you are the better half

merge

• Underlying are organic growth activity

!11


Learn and sustain

• I am a business person first than a lean

six sigma practitioner

• Best practice are to turn teams

knowledgable of business and

operations teams into L6Sigma

practitioners

• You can never do it alone, we grow as

individuals, build your teams, teach then

teach some more

• Know the business and operations not

only the L6Sigma methodology

• Get back in BAU and practice silently

!12


• People are the most important

assets to your organization

• Ability to retain and develop them

are crucial

• Do not down play the basic such

as work life balance, mobility,

development, growth,

communication

• Developments allows the team to

continuously contribute

• Use consultants to train not do the

work

• Market always seeking good

talents

Cherish your Assets

!13


It takes two to tango

• In organization there must

have both elements of

innovation and improvement

in an organization

• Balance short term and

longer term cycle projects

• Management more receptive

to improvements

• Both are required for sustainability and major leap

• L6Sigma is well positioned to address the details of both

• Many successful companies have done this and become big globally

!14


Government vs GLC vs Private

• With the advent of the global economy, each party must play their role well

• Government are collection, management and distribution of wealth and

policy setting, GLC covers area of development, private to contribute and

sustain the economy

• If all parties does their role without too many conflict of ingest than the

nations growth can really be multiplied

• L6Sigma is well positioned to

contribute to efficiency in all sectors

• Rigorous and constant

improvement initiative will also have

multiplier effect to the people and

the nation

• Regulatory Spport

!15


Lean Six Sigma

• Most complete improvement

methodology in the world at the

current moment

• Various level of implementations and

different stages of life cycle at

organizations

• Has a life goes through evolution but

can be rerun at any time

• A full fledge Six Sigma program will

benefits organization with revenues

beginning with RM 1Billion onwards

• Consider the balance between lean

and six sigma

!16


Sustainability

Lean Six Sigma are not executed in silo

• Has to be coupled with other supports such as

project management and knowledge management

to ensure sustainability

• Startup from zero can be done within 6 months and

reaping of benefits within a year

• L6Sigma tackles growth creation, cost avoidance

and cost reduction

• Track all initiative to provide continuous benefits by

eliminating low hanging fruit then move upwards

• It pays by itself contribute seamlessly into profits

and growth

• Always measure financially

!17


Performance Excellence

• Scan, get buy, skill up, select projects and go

• Refine along the way

• Get a clear understandingly the expected outcome

• Manage size of projects ensure delivery

• Accelerate, move up gear spread culture

!18

• Replicate and reproduce

• Communicate

• Celebrate

• Enjoy and live life


Weight the option

• Looking at all the angles as per previous

slides

• Weighing all options, the questions is no long

why, it should be when will all the applicable

company apply L6Sigma

• Can the companies afford not to have some

form of L6Sigma application

• Presented here are the why the companies

should adopt the program

• I believe as we go throughout the two days we

will answer how

• Who, well it starts with all the advocates in this

room

!19


So why are we here

• Hey you, Yes YOU!

• Learn from each other

• Breakdown the barrier

• Talk, chat, whisper, note

• Share what projects you are doing

• Share results and how you get it

• Share what project you did and plan to do

next yearl

• Exchange emails

• Be friends and more ........

!20


THANK YOU

!21

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