Level 2 Certificate in Lean Organisation Management Techniques

Unit 1: Lean organisation techniques in business

Assessment

 You must use this file to complete your assessment.

 The first thing you need to do is save a copy of this document, in a suitable location
on your computer, then complete each part of the assessment after you complete the
corresponding session of the course, remembering to save your work regularly.

 You should refer to the answers you gave in the ‘time to think’ questions which will
assist you in answering the questions in the assessment. Try to answer the questions
in the format requested i.e. describe, explain, identify/list, see the guidance below
for this.

 Describe- When you are asked to describe, you must give a description i.e. write a
detailed account like a story (not a list). Free flowing sentences, at least one
paragraph of text.

 Explain-If you are asked to explain, then you must give your answer and your
reasons. As with a description please make it as detailed as possible, free flowing
sentences and at least. one paragraph of text.

 Identify/list - This can be a list, like a shopping list (can be numbers/bullet points).

• When you have fully completed all three parts of the assessment go to
www.vision2learn.com and send your completed assessment to your tutor via your My
Study area – make sure it is clearly marked with your name, the course title and the unit and
assessment number.

Please note that this assessment document has 10 pages and is made up of 3
Sections.

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Level 2 Certificate in Lean Organisation Management Techniques
Unit 1: Lean organisation techniques in business

Name:

Section 1: A lean environment [LO1]

This section will help you to evidence Learning Outcome 1: Understand the concept of a
lean environment.

Learning objective Place in assessment

1.1 Describe the principles of lean organisation techniques Question 1 Page 1, 2

1.2 Explain the benefits of a lean environment Question 2 Page 2

1. What are the principles of lean organisation techniques? Name and describe the 5
main principles below. [1.1]

Principle 1:

Identify the value in the eye of customers. Once the value identified, the rest can be
considered waste and find ways to eliminate it.

Principle 2:

Identify steps along the process chain, which is the start-to-finish production of the value
delivering product that we create. We should isolate those steps unnecessary to delivering
value so we can reduce and eliminate them.

Principle 3:

Make processes flow by eliminating waste. After removing the wastes from the value
stream, the following action is to ensure that the flow of the remaining steps run smoothly
without interruptions or delays

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Level 2 Certificate in Lean Organisation Management Techniques
Unit 1: Lean organisation techniques in business

Principle 4:

Respond to customer demand. Pull-based system, with the products being created at the
time that they are needed and in just the quantities needed and reducing waste.

Principle 5:

Strive for perfection by continual improvement. Every employee should strive towards
perfection while delivering products based on the customer needs. The company should be
a learning organization and always find ways to get a little better each and every day.

2. Explain the benefits of a lean environment. [1.2]

Use your own experience (either of your workplace or an organisation that you know well) to
help you evidence your answer. Alternatively, you can base your answer on the case study
provided. [1.2]

Foods R Us is a local supermarket in AnyTown. It tries to operate to the principles of a lean

environment. Read the case study and explain the benefits of the lean environment in which
Foods R Us operates.

 It is a small chain.
 It is not a 24-hour supermarket. It operates between the hours of 9am and 9pm.
 It has free parking.
 It sources its fruit and vegetables locally from the local fruit and vegetable wholesaler.
The supply chain starts locally.
 Its staff are trained to be multi-skilled in a range of different roles. They can operate
anywhere within the store and are poised to deal with the majority of customer queries
themselves. Staff have a varied working day and are paid decent salaries to reflect the
skills they have.
 It stocks a limited variety of each product. So, for example, it has 3 varieties of tinned
tomatoes, 3 varieties of baked beans etc. All tinned products are available in one size
only. While this limits customer choice, it does mean that Foods R Us can bulk-buy more
effectively.
 It has a scanning system that requires customers to put each scanned item in the trolley,
to be packed away from the checkout.

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Level 2 Certificate in Lean Organisation Management Techniques
Unit 1: Lean organisation techniques in business

 The shop only carries stock that it requires, it does not store surplus stock in a
warehouse. This means that it must buy often but also that it does not tie up any money
in holding stock or paying for warehouse premises or warehouse staff.
 Food R Us does not have any promotional displays at the tills, or at the ends of aisles.

Type your explanation below.

The ultimate goal of lean thinking as the “full satisfaction of client needs by continuously
producing and delivering what the client wants “. So there is a free parking, to avoid clients
hassle. Sourcing the fruits and vegetable locally, they will be always fresh, so it is avoid
waist by transportation and products defects. The staff are trained to be multi-skilled in a
range of different roles so there are not non-utilised talents and human resources. Only one-
size availability of tinned products means that the products can be stored more effective, the
storage and the transport is more effective. The sold item packaging system away from the
checkout increase the clients flow speed, avoiding jams and reducing waiting time. The
same reasoning for not having any promotional displays at the tills, or at the ends of aisles
The stock is replenished on a JIT system, reducing wasting space and money with storage,
products defects by overproduction and outdated products

Now that you have completed Section 1 of your assessment, remember to save the
work you have done so far – you will need to send your work to your tutor for marking
once you have completed all 3 sections of this assessment.

Section 2: Implementing the productivity needs analysis process [LO2]

This section will help you to evidence Learning Outcome 2: Be able to implement the
productivity needs analysis process.

Learning objective Place in assessment

2.1 Describe the process for conducting a productivity needs Question 1 Page 5, 6
analysis.

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Level 2 Certificate in Lean Organisation Management Techniques
Unit 1: Lean organisation techniques in business

2.2 Undertake a productivity needs analysis in a selected Question 2 Page 6, 7, 8

organisation

1. Describe the process for conducting a productivity needs analysis (PNA). Use the
boxes below to complete your answer. [2.1]

What is the purpose of the PNA?

The purpose of the PNA is to give you a base so you can measure and improve businesses
productivity

What are the steps of the PNA and who is involved in these steps?

1.Measure the relevant information areas.

2 .Prioritise measures.

3 .Set objectives

4. Processes to reach objectives

5 Deliver required outputs to reach the desired productivity

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Level 2 Certificate in Lean Organisation Management Techniques
Unit 1: Lean organisation techniques in business

What areas should be covered in the PNA?

The areas which should be covered in the PNA are :

1. Common data, like turnover, profits, bonuses, cost of customer service, energy costs

2.Data about customers: Satisfaction, dissatisfaction, complaints, returns, recommendations

3.Delivery: OT deliveries, total shipping cost/products, customer waiting time

4.Overheads: floor space utilisation, contract penalties

5.Quality: defects/million opportunities, defects/ thousand opportunities, types of defects,

source of defects, rework, scrap

6.People: learning abilities, proficiency, satisfaction, absenteeism, staff turnover,

qualifications

7.Safety : Accidents, types of accidents,, lost time through accidents, risk of repetitive motion

8.Costs: cost/unit, cost/ service hour, days outstanding, supplier payment

2. Undertake a Productivity Needs Analysis (PNA) for the organisation in the case study
below. [2.2]

You must remember to follow the steps of the PNA:

 Measuring relevant areas

 Prioritise measures
 Set objectives
 Processes to reach objectives (across scales of the organisation)

Case study

A small-scale but rapidly growing cereal manufacturer, Rise Right, is considering adopting
lean organisation techniques to improve its business. Currently, the organisation produces
over five types of different breakfast cereals although they would like to develop the range
further.

Rise Right’s production plant is too small to meet the demands of the business’ growth. In
addition, it struggles to accommodate the frequent deliveries of incoming materials and
outgoing finished goods. The plant itself is inconveniently 30 miles away from the
organisation’s storage depots. Therefore, the transport costs to move produce to storage is
an unwanted financial burden for Rise Right. If this cost and delivery issue isn’t resolved
soon, Rise Right will see a considerable dip in their profits.

The Product Development team at Rise Right is aware of how competitive the cereal market
is. There are plans to trial two new cereal bars. If the campaign is successful and well
received Rise Right will look to permanently produce the bars alongside their traditional
cereal. However, this will depend on customer satisfaction of price, consistency and taste.

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Level 2 Certificate in Lean Organisation Management Techniques
Unit 1: Lean organisation techniques in business

Recently, Rise Right has had some safety concerns with the team lifting raw materials into
production areas. Last month, there were 24 reported incidents of spillages and injuries
through incorrect manual handling. Whilst safety is usually of an incredibly high standard this
minor issue is still an area of the business which needs investigating and amended in the
future.

Use the sections below to complete each step of your Productivity Needs Analysis.

a. Which areas should be measured to increase Rise Right’s productivity?

The areas which should be measured to increase Rise Right’s productivity are delivery,
overheads, safety and customers.

b. Now that you’ve identified measures, prioritise the measures from most important to
least important. Give reasons for your answer.

Delivery should be first measure. The storage depots are 30 miles away from the production
plant and this bring high transportation cost and problems with delivery on time. Next
measure should be people. All the reported incidents are due to manual handling, so an
extra training might be needed. The third measure should be overheads. The production
plant is too small, so they struggle to accommodate the frequent deliveries of incoming
materials and outgoing finished goods. The last one is customer. The Product Development
team plan to trial 2 new cereals bars. In order to do this, they have to plan the production,
the package, to produce it, to test it and, if successful, to start producing them. If the trials
are successful, but the other measure are not approached first, there will be even bigger
problems.

c. Set objectives to close the productivity gap by suggesting what the company could
do to close the productivity gap in these areas.

1. Reduce transportation costs and delivery issues – goal: 20 % increase of OTIF deliveries
in 4 months (On Time and In Full)

2. Reduce incidents of spillages and injuries through incorrect manual handling- retrain all
stuff involved in these activities in 1 month and goal: decrease the number of incidents by
25% in 3 months.

3. Looking into accommodating the frequent deliveries of incoming materials and outgoing
finished goods. Goal : increasing efficiency by 8% within 3 months.

4. Customer. Goal: Campaign for trial two new cereal bars launched in 6 months; if
successful, the next goal should be: start production for those two new cereal bars within 1
year.

d. What processes could be implemented to meet objectives? Think about scales of

organisation (individuals, teams, departments, organisation). State the objectives you
have already mentioned (in 2c) in the left-hand column. In the right-hand column,
describe processes that could be implemented to close the productivity gap and
conclude the PNA.

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Level 2 Certificate in Lean Organisation Management Techniques
Unit 1: Lean organisation techniques in business

Objectives Processes

Objective 1: Analysing the deliveries, the despatch notes, to maximize

20 % increase of the volume of the goods transported in the trucks, so only
OTIF deliveries in 4 full wagon can be sent, matching the production schedule
months with the loading , so the waiting time be avoided, the floor
space used in a better way and cost with transport and
waiting times reduced.

Objective 2:
Retrain all stuff Check the training records to ensure all the people are
involved in these trained, if not, trained the all the staff involved in these
activities in 1 month activities
and goal: decrease Re assess the process and seek for process improvement
the number of and /or additional equipment
incidents by 25% in 3
months

Objective 3: : Order materials JIT, so only necessary materials are

Increase efficiency by stored on the premises
8% within 3 months Optimize the floor utilisation –maybe extra shelves
for the flux of Reassess the materials flow within the plant, to be sure
materials and goods there are no unnecessary cross paths and the materials
are stored as closed as possible from the area where they
will be used

Objective 4:
Campaign for trial two Assess , gather , plan and launch campaign for the new
new cereal bars bars.
launched in 6 months;
if successful, the next If successful, plan the production , with minimum costs
goal should be: start and maximizing the resources utilisation
production for those
two new cereal bars
within 1

Now that you have completed Section 2 of your assessment, remember to save the
work you have done so far – you will need to send your work to your tutor for marking
once you have completed all 3 sections of this assessment.

Section 3: Producing a process map

This section will help you to evidence Learning Outcome 3: Be able to produce a process
map.

Learning objective Place in assessment

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Level 2 Certificate in Lean Organisation Management Techniques
Unit 1: Lean organisation techniques in business

3.1 Produce a process map using appropriate symbols and Question 1 Page 10, 11
terminology for an identified process

1. Using one of the two scenarios provided, produce a process map. Make sure it
includes the appropriate symbols and terminology. You can find commonly used
symbols below to copy and paste into your process map. On your process map, give
consideration to value added and non-value-added steps in the process and any
waste which occurs. [3.1]

Scenario A

At a call centre, there is a set process for the disposal of confidential documents. Files are
first sorted and separated depending on whether they contain confidential information or not.
If the files are confidential, they are passed on to a nominated employee who is tasked with
making sure the files are properly shredded and disposed of. Once shredded, the waste is
placed in confidential waste bags and the confidential waste disposal team are contacted.
Bags are stored in a locked cupboard until the waste disposal team arrive to securely
remove the waste. When creating your process map you might consider:

 Passing files on
 Deciding which files should be shredded
 Documenting which files have been shredded and disposed of
 How waste is disposed.

Scenario B

A large supermarket takes customer concerns very seriously and has implemented a
customer complaints procedure so that they are dealt with properly. At the moment,
customer complaints must be recorded in writing by a member of staff and then passed on to
their line manager. Depending on the severity of the complaint, the line manager will either
act upon the complaint or pass it on to a senior manager. Once a complaint has been dealt
with it is then physically stored as well as documented in an electronic database. When
creating your process map you might consider:

 Who complaints should be passed on to.

 Whether complaints should be acted upon.
 How severe the complaint is.
 How complaints are reported, documented and stored.

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Level 2 Certificate in Lean Organisation Management Techniques
Unit 1: Lean organisation techniques in business

Start/end flow Process/Activity

Document Decision – yes or no

Storage Database

Flow line

Now summarise your conclusions about the process. Include your consideration on value-
added and non-value-added steps in the process and any waste which occurs.

This complaints procedure is not very effective, there are non-value added steps. Instead of
writing down the complaint, it could have being logged in a computerised system. We can
reduce the time for the complain to get to the line manager, at the end of the process ,it
won’t be necessary physically storage.

If the complaint can be solved immediately, it should not be sent to the line manager. It
would increase customer satisfaction and reduce the amount of time spent.

Using a computerised complaint system, the line manages could see the resolution for all
the complaints and it would be much easier to analyse the complaints, to identify the root
causes, to take the necessary steps to solve them and to prevent them occurring again.

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Level 2 Certificate in Lean Organisation Management Techniques
Unit 1: Lean organisation techniques in business

Now that you have completed all 3 sections of this assessment, go to

www.vision2learn.com. Log in to the platform and send your assessment to your tutor
via your My Study page for marking. Good luck!

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