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LEAN MANAGEMENT INSTITUT
Dr. Jorgo Chatzimarkakis
and
Dr. Bodo Wiegand
THE WAY TO LEAN CITY
METHODS AND EXAMPLES
LEAN MANAGEMENT INSTITUT
Starting Position
Lean Thinking
Lean Management methods in the public sector
- Lean Administratio...
Page 3
LEAN MANAGEMENT INSTITUT
Income and Expenditures Continue to Diverge
New York City is closing its zoos, turning off...
Page 4
LEAN MANAGEMENT INSTITUT
Cities: A Case for Revitalization (1)
Freezing expenditures for investment, touch-up
repai...
Page 5
LEAN MANAGEMENT INSTITUT
Cities: A Case for Revitalization (2)
Examining legal rules at the federal state (German:
...
Page 6
LEAN MANAGEMENT INSTITUT
The Four Competitive Factors of Business on Demand
also Apply to Cities.
A = Availability ...
LEAN MANAGEMENT INSTITUT
LeanManagement
LEAN Thinking
LeanMaintenance
andService
LeanAdministration
LeanInnovation
LeanSup...
LEAN MANAGEMENT INSTITUT
Starting Position
Lean Thinking
Lean Management methods in the public sector
- Lean Administratio...
LEAN MANAGEMENT INSTITUT
LeanManagement
LEAN Thinking
LeanMaintenance
andService
LeanAdministration
LeanInnovation
LeanSup...
Page 10
LEAN MANAGEMENT INSTITUT
The Five Principles of Lean Thinking
Applying the five principles step by step comprehens...
Page 11
LEAN MANAGEMENT INSTITUT
Defining the Value of a Product or Service from
the Customer’s Perspective
Longer office ...
Page 12
LEAN MANAGEMENT INSTITUT
The Philosophy of Lean Thinking: Eliminate all Waste (muda)
Optimize!
Value-creating acti...
Page 13
LEAN MANAGEMENT INSTITUT
Taiichi Ohno’s Seven Types of Waste are also Found in
Public Services
Overproduction1
Inv...
Page 14
LEAN MANAGEMENT INSTITUT
Creating a Continuous Flow
Flow means providing a complete service
from beginning to end ...
Page 15
LEAN MANAGEMENT INSTITUT
Switching to a Demand-Induced
System (Pull instead of Push)
Implementing this principle i...
Page 16
LEAN MANAGEMENT INSTITUT
Striving for Perfection
Perfection is an ideal state that is never attained
Public admini...
LEAN MANAGEMENT INSTITUT
Starting Position
Lean Thinking
Lean Management methods in the public sector
- Lean Administratio...
Page 18
LEAN MANAGEMENT INSTITUT
Lean Management methods in public sector
LeanAdministration
LeanConstruction
LeanMaintena...
LEAN MANAGEMENT INSTITUT
LeanManagement
LEAN Thinking
LeanMaintenance
andService
LeanAdministration
LeanInnovation
LeanSup...
LEAN MANAGEMENT INSTITUT
Starting Position
Lean Thinking
Lean Management methods in the public sector
- Lean Administratio...
Page 21
LEAN MANAGEMENT INSTITUT
Analysis Modularization Integration Implementation
Establishing a business
model
Organiza...
Page 22
LEAN MANAGEMENT INSTITUT
Analyzing the Value Flow of the Main and Partial Processes
Value stream mapping
Auftrags-...
Page 23
LEAN MANAGEMENT INSTITUT
ABC analysis XYZ analysis
Value
proportion
Quantity
proportion
A: 70%
B: 20%
C: 10%
A: 70...
Page 24
LEAN MANAGEMENT INSTITUT
Geschäftsvorfall Instandsetzung (Fremdleistung) aus Wartung (Eigenleistung) - GMG
Liefera...
Page 25
LEAN MANAGEMENT INSTITUT
Analysis Modularization Integration Implementation
Serviceauftrag
abschließen
Faktura
fre...
Page 26
LEAN MANAGEMENT INSTITUT
What are process modules?
Process modules are standardized
subprocesses
They include seve...
Page 27
LEAN MANAGEMENT INSTITUT
Module Matrix
Numeric
identification
Brief description
Description of
task sequence
Requi...
Page 28
LEAN MANAGEMENT INSTITUT
Specified by process modules
Exchange data between modules
Define data quality, volume, a...
Page 29
LEAN MANAGEMENT INSTITUT
Analysis Modularization Integration Implementation
Serviceauftrag
abschließen
Faktura
fre...
Page 30
LEAN MANAGEMENT INSTITUT
Product Creation Process
Interlinking the functional areas – integrating process modules
...
Page 31
LEAN MANAGEMENT INSTITUT
TABG
Invoice
request
Report back
service
Convert
service to
account
Remove
invoice block
...
Page 32
LEAN MANAGEMENT INSTITUT
Analysis Modularization Integration Implementation
Serviceauftrag
abschließen
Faktura
fre...
Page 33
LEAN MANAGEMENT INSTITUT
Time taken
Module 2 = ... h
Calculating Capacity on a Modular Basis Example
Activity Stru...
Page 34
LEAN MANAGEMENT INSTITUT
The secondary activities in particular hold high optimization potential because they are
...
Page 35
LEAN MANAGEMENT INSTITUT
Industrializing Business Processes with Lean Administration
Increases transparency and qu...
LEAN MANAGEMENT INSTITUT
Starting Position
Lean Thinking
Lean Management methods in the public sector
- Lean Administratio...
Page 37
LEAN MANAGEMENT INSTITUT
Lean Maintenance and ServiceD
isposition
ofm
aintenance
and
services
C
om
plete
services
...
Page 38
LEAN MANAGEMENT INSTITUT
Lean Maintenance and Service
MODULARIZATION
AND INTEGRATION
Process analysis
Modularizati...
Page 39
LEAN MANAGEMENT INSTITUT
Number of employees: 16,000
Establishments: 7
Local offices: 35
167 maintenance areas
Pro...
LEAN MANAGEMENT INSTITUT
Starting Position
Lean Thinking
Lean Management methods in the public sector
- Lean Administratio...
LEAN MANAGEMENT INSTITUT
LeanManagement
LEAN Thinking
LeanMaintenance
andService
LeanAdministration
LeanInnovation
LeanSup...
Page 42
LEAN MANAGEMENT INSTITUT
Waste in Indirect Areas
Waste caused by
- the flood of papers and documents
- looking for...
Page 43
LEAN MANAGEMENT INSTITUT
Continuous Improvement Process (1)
CIP is a business philosphy:
Improving the competitive...
Page 44
LEAN MANAGEMENT INSTITUT
Source: Agnus Consult, 1996
Continuous Improvement Process (2)
Improving business perform...
LEAN MANAGEMENT INSTITUT
Starting Position
Lean Thinking
Lean Management methods in the public sector
- Lean Administratio...
Page 46
LEAN MANAGEMENT INSTITUT
Optimizing processes on the basis of tried and tested Lean
Management methods
Creating tr...
Page 47
LEAN MANAGEMENT INSTITUT
Lean City Club
The objective of the Lean City Club is to continue pursuing the reform eff...
Page 48
LEAN MANAGEMENT INSTITUT
Reorganizing communal work processes with the aid
of the tried and tested tools of Lean B...
Page 49
LEAN MANAGEMENT INSTITUT
LeanAdministration
LeanConstruction
LeanMaintenance
&
Service
Residents’ services
Buildin...
Page 50
LEAN MANAGEMENT INSTITUT
Creating Thematic Teams
Residents’ services
Building authorities
Public construction
Publ...
Page 51
LEAN MANAGEMENT INSTITUT
Lean City Club
Short-term immediate measures to optimize processes
Process costs for the ...
Page 52
LEAN MANAGEMENT INSTITUT
NOTE:
Some pages which were shown
at the Lean Service Summit 2004 are not
published in th...
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The Path to the Lean City - Methods and Best Practices

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by Bodo Weigand of Lean Management Institut shown at the Lean Service Summit on 23rd June 2004 ran by the Lean Enterprise Academy

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Transcript of "The Path to the Lean City - Methods and Best Practices "

  1. 1. LEAN MANAGEMENT INSTITUT Dr. Jorgo Chatzimarkakis and Dr. Bodo Wiegand THE WAY TO LEAN CITY METHODS AND EXAMPLES
  2. 2. LEAN MANAGEMENT INSTITUT Starting Position Lean Thinking Lean Management methods in the public sector - Lean Administration - Lean Maintenance and Service - Lean Management Lean City Club Examples from German local government Agenda
  3. 3. Page 3 LEAN MANAGEMENT INSTITUT Income and Expenditures Continue to Diverge New York City is closing its zoos, turning off the street lights on bridges, closing pediatric clinics and public schools; 4,500 public sector jobs are being cut – all because the city budget cannot be financed on credit. Costs for the Swiss public healthcare system are rising at twice the rate of GDP. Budget balance for local government in Germany Healthcare system costs in Switzerland The financial balance sheet for German local government continues to deteriorate The advertising revenues at ARD (German public television) fell to 300.4 million marks in 1996 compared to 576.7 million marks in 1992 Source: ARD-Werbung Sales & Services
  4. 4. Page 4 LEAN MANAGEMENT INSTITUT Cities: A Case for Revitalization (1) Freezing expenditures for investment, touch-up repairs, and limiting activities to the bare necessities Reorganizing all processes and reducing expenses Releasing employees to help reduce outsourcing and improve service Starting marketing programs to increase attractiveness and to boost income Short-term measures
  5. 5. Page 5 LEAN MANAGEMENT INSTITUT Cities: A Case for Revitalization (2) Examining legal rules at the federal state (German: Land) and regional level with an inverted burden of proof. Why do we need that particular law, rule, or regulation? Testing the efficiency of all tax-relevant laws in terms of ROI. What does it cost; what are the benefits? Determining how useful laws, rules, and regulations are in terms of enforcement; analyzing the costs of enforcement in terms of cost and benefit. Do we really need the law if we can’t verify it? Radically simplifying complicated laws and regulations at the national level. Medium- and long-term measures
  6. 6. Page 6 LEAN MANAGEMENT INSTITUT The Four Competitive Factors of Business on Demand also Apply to Cities. A = Availability of service Q = Quality of process I = Individuality towards the customer C = Cost savings in all areas Business on Demand Only Lean Business offers simultaneous optimization of all four competitive factors.
  7. 7. LEAN MANAGEMENT INSTITUT LeanManagement LEAN Thinking LeanMaintenance andService LeanAdministration LeanInnovation LeanSupplyChain Create value without waste LeanProductionSystem LEAN THINKING – THE LEAN BUSINESS SYSTEM
  8. 8. LEAN MANAGEMENT INSTITUT Starting Position Lean Thinking Lean Management methods in the public sector - Lean Administration - Lean Maintenance and Service - Lean Management Lean City Club Examples from German local government Agenda
  9. 9. LEAN MANAGEMENT INSTITUT LeanManagement LEAN Thinking LeanMaintenance andService LeanAdministration LeanInnovation LeanSupplyChain Create value without waste LeanProductionSystem LEAN THINKING – THE LEAN BUSINESS SYSTEM
  10. 10. Page 10 LEAN MANAGEMENT INSTITUT The Five Principles of Lean Thinking Applying the five principles step by step comprehensively and permanently eliminates waste. The central vision is of a value flow with no waste beyond the boundaries of each individual company. These principles apply the same way to industry, services, and administration as they do to development, production (performance), and order processing (sales). Define the value of a product or service from the customer’s point of view Identify the value flow Create a continuous flow Switch to a demand-driven system: “Pull instead of Push” Strive for perfection 1 2 3 4 5
  11. 11. Page 11 LEAN MANAGEMENT INSTITUT Defining the Value of a Product or Service from the Customer’s Perspective Longer office opening hours 24-hour operation of light rail public transportation One call, one visit one decision, one result Availability of service: this means that services have to be performed in the least amount of time possible and then provided to the customer. Value specification from the customer’s perspective Qualitatively perfect service Individual service: everyone receives the services they need Costs have to be reasonable No incorrect treatments for patients No erroneous documents No late buses or trains Provision of infrastructure tailored to the specific industry when new firms open Simplified approval processes for smaller construction projects Citizens and residents should be able to understand fees and surcharges Prices must be comparable to those in the private sector Examples
  12. 12. Page 12 LEAN MANAGEMENT INSTITUT The Philosophy of Lean Thinking: Eliminate all Waste (muda) Optimize! Value-creating activities Any activity that takes materials or information and converts or transforms them in a way that meets customers’ needs and that the customer is also willing to pay for. Reduce! Non-value-creating Any activity that is needed due to the systems or processes in use today but that does not contribute any value to the product or service or to customer satisfaction. Eliminate immediately! Waste Activities, processes, time, materials, space, etc., that do not increase the value of the product or service and that are not needed for the system or process. Muda Type I Muda Type II Value creating
  13. 13. Page 13 LEAN MANAGEMENT INSTITUT Taiichi Ohno’s Seven Types of Waste are also Found in Public Services Overproduction1 Inventory2 Unnecessary transport3 Waiting/storage time4 Improper techniques/work processes 5 Unnecessary moves6 Repair and material waste7 Examples Documents and reports with no audience Projects left filed away in drawers Unnecessary patient stays in clinics Construction material stored for use years in advance Ambulance transports between clinics or wards Procedures sent back and forth between departments Procedures waiting for a clerk with available capacity Patients in the waiting room Expensive and oversized IT systems Complicated approval processes for such simple construction as errecting an arbor Employees working in public bodies who have to walk great distances to get to the only copier Business trips with a poorly defined purpose Wrongful approvals Improper treatment of patients
  14. 14. Page 14 LEAN MANAGEMENT INSTITUT Creating a Continuous Flow Flow means providing a complete service from beginning to end and without delay Customers, residents, and patients experience no waiting times The completion time for each action corresponds to the required process time There are no stocks (stacks of waiting files) Examples of flow in the public sector A Residents’ Agency rather than various public offices Polyclinics instead of various independent medical specialists that patients have to consult one after another A Residents’ Agency rather than various public offices Infrastructure repaired by interdisciplinary teams rather than specialist teams
  15. 15. Page 15 LEAN MANAGEMENT INSTITUT Switching to a Demand-Induced System (Pull instead of Push) Implementing this principle in practice in the public sector can mean: Stelle dem Bürger die Wasser-, Strom-, Gasmengen zur Verfügung, die er benötigt. Stelle dem Bürger die Leistung zur Verfügung, die er nachfragt. Schaffe eine Infrastruktur, die den Bedürfnissen des Bürgers entspricht. Mache Gesetzte, die er versteht und die er nachvollziehen kann.
  16. 16. Page 16 LEAN MANAGEMENT INSTITUT Striving for Perfection Perfection is an ideal state that is never attained Public administration cannot rest on their past achievements Repeat the principles: 1. Define value from the customer’s perspective 2. Identify the value flow 3. Create a continuous flow 4. Pull system Top-down and bottom-up implementation
  17. 17. LEAN MANAGEMENT INSTITUT Starting Position Lean Thinking Lean Management methods in the public sector - Lean Administration - Lean Maintenance and Service - Lean Management Examples from German local government Lean City Club Agenda
  18. 18. Page 18 LEAN MANAGEMENT INSTITUT Lean Management methods in public sector LeanAdministration LeanConstruction LeanMaintenance & Service Residents’ services Building authorities Public construction Administrative bodies Municipal utilities Facility management LeanManagement Applications
  19. 19. LEAN MANAGEMENT INSTITUT LeanManagement LEAN Thinking LeanMaintenance andService LeanAdministration LeanInnovation LeanSupplyChain Create value without waste LeanProductionSystem LEAN THINKING – THE LEAN BUSINESS SYSTEM
  20. 20. LEAN MANAGEMENT INSTITUT Starting Position Lean Thinking Lean Management methods in the public sector - Lean Administration - Lean Maintenance and Service - Lean Management Examples from German local government Lean City Club Agenda
  21. 21. Page 21 LEAN MANAGEMENT INSTITUT Analysis Modularization Integration Implementation Establishing a business model Organization analysis Value flow analysis Order structure analysis Process analysis Activity structure analysis Cost structure analysis Starting to implement immediate measures Module definition Module optimization Standardization Describing and standardizing interfaces Defining the product creation process Assigning and integrating the modules into the processes Capacity adjustment Implementing the processes Organization adjustment Introducing process cost management Introducing CIP Serviceauftrag abschließen Faktura freigeben kaufmännisch abschließen Projekt extern abschließen Fakturaanforderung aus Service/Projekt ist vorhanden Fakturarelevante Belege aus Fakturavorrat auswählen Sammelfaktura ist zu erstellen Einzelfaktura ist zu erstellen Zu fakturierende Posten zusammen- stellen Fakturaanforde- rung ist in Ordnung Einzelfaktura ist nachzuarbeiten Fakturapositionen und -konditionen nacharbeiten Fakturasperre löschen Faktura buchen Fatura drucken Faktura mit Anlage versenden Faktura ist Kunden zugestellt Einzelkontrakt anlegen Faktura zu Einzelauftrag erzeugt Faktura gem. Fakturaplan erzeugt Lean Administration – The Method
  22. 22. Page 22 LEAN MANAGEMENT INSTITUT Analyzing the Value Flow of the Main and Partial Processes Value stream mapping Auftrags- management 40 % Auftrags- annahme 18 4 RQ: 33 % / 5 min PZ = 2 min 500 2,5 d Disposition 35 % Auftrags- annahme 8 4 RQ: 10 % /10 min PZ = 3 min Ø Hausmeister 25 % Auftrags- annahme 30 4 RQ: 5 % / 10 min PZ = 10 min 100 0,5 d ServiceteamLieferanten ÜZ RZ Auftrag bearbeiten 18 5 PZ = 6 min 100 0,5 d 10 % 5 m in 60% 15min Auftrag disponieren 20 8 RQ: 10 %/10 min PZ = 12 min 950 5 d Service durchführen 80 13 VZ = 105 min PZ = 10 min 950 5 d RQ: 10 %/20 min Auftrag abschließen 20 4 PZ = 8 min 1950 10 d RQ: 40 %/10 min 14 4 PZ = 15 min 2500 13 d RQ: 20 %/10 min X-Produkt Kunde PZ 13.572 Aufträge pro Jahr Verfügbar: 5/12 25 %15 m in Auftrags- zentrum Standardisiertes Auftragsformular 1,1 Tage Standardisierte Auftragsbezeichnung EDI@home 2,5 Tage Rückmelde- standards 2,5 Tage JIT-Vorbestellung gewerbespez. Materialmodule 4Tage15%55min Selbst- kontrolle 3,6 min 4,4 min 0,5 Tage 7,2 min 6 min 5 Tage 3 min 12 min 5,8 Tage 6 min 18 min 12,5 Tage 6 min 8 min 13 Tage 2 min 15 min 37,9 Tage Übergangs-/Liegezeit 27,8 Minuten Rückfragezeit (30 %) 63,4 Minuten Prozesszeit (70 %) ca. 38 Tage Durchlaufzeit Fakturierung
  23. 23. Page 23 LEAN MANAGEMENT INSTITUT ABC analysis XYZ analysis Value proportion Quantity proportion A: 70% B: 20% C: 10% A: 70% B: 20% C: 10% Demand Z products Y products X products Time The ABC analysis helps identify the orders with the largest potential for modularization. The XYZ analysis identifies the standardization potential. Order and Activity Structure Analysis
  24. 24. Page 24 LEAN MANAGEMENT INSTITUT Geschäftsvorfall Instandsetzung (Fremdleistung) aus Wartung (Eigenleistung) - GMG Lieferant Objekt- managemengt Service(TP1) Einkauf+Logistik (TP4) AKM(TP2) Serviceleistung erbringen und in Rechnung stellen Zahlungseingang verfolgen S E Auftrag anlegen und Fremdleistung aus RV abrufen Leistung fakturieren M 2.1 M 2.2 M 1.1 M 1.2 M 4.1 M 5.1 Qualität monitoren M O.1 Phase I (Bedarfsidentifizierung und Beauftragung) Phase II (Leistungserbringung) Phase III (Zahlungsabwicklung) S 1.1 S 1.2 S 1.4 S O.1 S 1.3 Instandsetzungs- bedarf bei IspW identifizieren Neuen RV abschließen S 4.1 S 2.1 S 5.2 Serviceleistung zurückmelden S 5.1 S 1.5 M 1.3 KEINE Hausmeister-Aufträge Keine HM- Aufträge Haus- meister- Aufträge Haus- meister- Aufträge Keine HM- Aufträge CS-Aufträge < 250 € (ohne eindeutige HM-Produkte, ohne evtl. HM-Produkte, ohne Wartungen) 48.592 3.904 T€ Evtl. Hausmeister- Produkte 38.843 13.690 T€ 116.066 44.194 T€ Hausmeister-Aufträge Eindeutige Haus- meister- Produkte Wartungen < 50 € Wartungen ≥ 50 € Wartungen CS-Aufträge ≥ 250 € (ohne eindeutige HM- Produkte, ohne evtl. HM-Produkte, ohne Wartungen) optionale Leistungen (Service) Alle CS-Aufträge 2002 Anzahl: 180.799 Kosten: 52.511 T€ Anzahl: 67.290 Kosten: 9.840 T€Anzahl: 113.509 Kosten: 42.671 T€ 41.816 9.274 T€28.230 4.301 T€ 22.020 3.320 T€ 6.000 940 T€ 26.154 1.636 T€ 13.912 997 T€ 8.914 558 T€ 10.349 2.380 T€ 5.315 1.060 T€ 4.940 1.292 T€ Gesamt: 64.733 8.317 T€ Nutzer/Dritte: 19.854 2.790 T€GMG: 41.247 5.377 T€ 25.474 566 T€ 15.725 22.697 T€ 22.438 2.268 T€ 10.613 9.389 T€ KEINE Hausmeister-Aufträge Keine HM- Aufträge Haus- meister- Aufträge Haus- meister- Aufträge Keine HM- Aufträge CS-Aufträge < 250 € (ohne eindeutige HM-Produkte, ohne evtl. HM-Produkte, ohne Wartungen) 48.592 3.904 T€ CS-Aufträge < 250 € (ohne eindeutige HM-Produkte, ohne evtl. HM-Produkte, ohne Wartungen) 48.592 3.904 T€ Evtl. Hausmeister- Produkte 38.843 13.690 T€ Evtl. Hausmeister- Produkte 38.843 13.690 T€ 116.066 44.194 T€ Hausmeister-Aufträge Eindeutige Haus- meister- Produkte Wartungen < 50 € Wartungen ≥ 50 € Wartungen CS-Aufträge ≥ 250 € (ohne eindeutige HM- Produkte, ohne evtl. HM-Produkte, ohne Wartungen) optionale Leistungen (Service) Alle CS-Aufträge 2002 Anzahl: 180.799 Kosten: 52.511 T€ Anzahl: 67.290 Kosten: 9.840 T€Anzahl: 113.509 Kosten: 42.671 T€ 41.816 9.274 T€28.230 4.301 T€ 22.020 3.320 T€ 6.000 940 T€ 28.230 4.301 T€ 22.020 3.320 T€ 6.000 940 T€ 26.154 1.636 T€ 13.912 997 T€ 8.914 558 T€ 26.154 1.636 T€ 13.912 997 T€ 8.914 558 T€ 10.349 2.380 T€ 5.315 1.060 T€ 4.940 1.292 T€ 10.349 2.380 T€ 5.315 1.060 T€ 4.940 1.292 T€ 10.349 2.380 T€ 5.315 1.060 T€ 4.940 1.292 T€ Gesamt: 64.733 8.317 T€ Nutzer/Dritte: 19.854 2.790 T€GMG: 41.247 5.377 T€ 25.474 566 T€ 15.725 22.697 T€ 22.438 2.268 T€ 10.613 9.389 T€ Activity Structure AnalysisValue Flow Analysis Order Structure Analysis Timeframe for activitiesTimeframe for secondary and core processes Quantitative framework Duration and frequencyFunctions and offices involved Jobs and orders Result + + Nr. Aufgabenbereich / Aufgaben Anzahl Vorgänge [pro Monat] Zeitaufwand pro Vorgang [Min.] Zeitaufwand [Stunden pro Monat] Wieder-holung Min. Max. 1 Ersatzempfänger erfassen 100 5 8,3 Täglich 2 6 2 Taxen setzen/Ändern 40 15 10,0 Täglich 1 3 3 Bemerkungen erfassen 50 10 8,3 Wöchentlich 0 0 4 Risikomerkmale erfassen 20 25 8,3 Wöchentlich 1 1 5 Sonstige Daten erfassen 30 15 7,5 Täglich 0 0 6 CTV-Brief veranlassen 5 10 0,8 Wöchentlich 2 8 7 Internes Telefonat führen 200 3 10,0 Täglich 2 15 8 Externes Telefonat führen 200 10 33,3 Täglich 2 6 9 Teambesprechungen 4 60 4,0 Wöchentlich 0 0 10 Bearbeiten Mails (lesen, bearbeiten, sortieren, speichern, löschen etc.) 100 3 5,0 Täglich 0 0 11 Lehrgänge/Seminare 1 1.000 16,7 Jedes Halbjahr 0 0 Result Result Cause-justified process cost allocation Process Cost Analysis
  25. 25. Page 25 LEAN MANAGEMENT INSTITUT Analysis Modularization Integration Implementation Serviceauftrag abschließen Faktura freigeben kaufmännisch abschließen Projekt extern abschließen Fakturaanforderung aus Service/Projekt ist vorhanden Fakturarelevante Belege aus Fakturavorrat auswählen Sammelfaktura ist zu erstellen Einzelfaktura ist zu erstellen Zu fakturierende Posten zusammen- stellen Fakturaanforde- rung ist in Ordnung Einzelfaktura ist nachzuarbeiten Fakturapositionen und -konditionen nacharbeiten Fakturasperre löschen Faktura buchen Fatura drucken Faktura mit Anlage versenden Faktura ist Kunden zugestellt Einzelkontrakt anlegen Faktura zu Einzelauftrag erzeugt Faktura gem. Fakturaplan erzeugt Lean Administration – The Method Establishing a business model Organization analysis Value flow analysis Order structure analysis Process analysis Activity structure analysis Cost structure analysis Starting to implement immediate measures Module definition Module optimization Standardization Describing and standardizing interfaces Defining the product creation process Assigning and integrating the modules into the processes Capacity adjustment Implementing the processes Organization adjustment Introducing process cost management Introducing CIP
  26. 26. Page 26 LEAN MANAGEMENT INSTITUT What are process modules? Process modules are standardized subprocesses They include several related activities They can be used in several product creation processes Process modules include 1. Job instructions/assistance 2. Process times 3. Manpower needed 4. Qualification requirements 5. Aids (equipment, material, documentation) What do process modules provide? Transparency Measurability Quality improvement Comprehensibility Process-internal flexibility Structured approach Clearly defined input and output Clear allocation of responsibilities Description of the resources used Unambiguous definition of interfaces Customized product creation processes can be represented by standardized modules Structuring - Modularization
  27. 27. Page 27 LEAN MANAGEMENT INSTITUT Module Matrix Numeric identification Brief description Description of task sequence Required resources Staff required / manpower planning Standard operation times for task execution Rules and directives Modulnummer Modul Modulinhalt Maschinen, Geräte, zusätzliches Personal Mitgeltende Unterlagen Modulzeit/Einheit in Fh/Einheit (Format hh:mm:ss) Anzahl Mitarbeiter bzw. Maschinen, MINDEST Qualifikation Fb In 1.1. Prüfungen der Gleisgeometrie Fb In 1.1.1. Prüfung mit Gleismeßfahrzeug OMWE keine Modulsarsierung DS 820 01 15 Ril 821. 2001 1. Bezl Fb Fb In 1.1.2. Prüfung mit Gleismeßfahrzeug OMW keine Modulsarsierung DS 820 01 15 Ril 821. 2001 1. Bezl Fb Fb In1.1.3. Prüfung mit Gleismeßfahrzeug GMTZ keine Modulsarsierung DS 820 01 15 Ril 821. 2001 1. Bezl Fb Fb In 1.1.4. Handmessung Fb In 1.1.4.1. Längshöhe in Gleisen und Weichen mit Gleisvermarkung Messen der Längshöhe in Bezug auf Gleisvermarkungspunkte mit optichem Visiergerät einschließlich Anschreibung der Bezugspunkte und deren Dokumentation vor Ort Gleisüberhöhungsmesser, Nivelliergerät, Visiergerät, CEMAFER- bzw. BRIESEMEISTER-Messlatte oder Geodimeter, Bandmaß, (Sakra/Sipo entsprechend der örtlichen Rahmenbedingungen DS 820 01/ 03 Ril 820 / 821/ 824 00:00:10 Fh/m/Gleis 2 MA (1 M Fb, 1 Bua) Fb In 1.1.4.2. Längshöhe in Gleisen und Weichen ohne Gleisvermarkung Messen der Längshöhe mit optischem Visiergerät durch Festlegung von Hochpunkten einschließlich Anschreibung der Bezugspunkte und deren Dokumentation vor Ort Gleisüberhöhungsmesser, Visiergerät, Bandmaß, (Sakra/Sipo entsprechend der örtlichen Rahmenbedingungen ) DS 820 01/ 03 Ril 820 / 821/ 824 00:00:08 Fh/m/Gleis 2 MA (1 M Fb, 1 Bua) keine Modularisierung keine Modularisierung keine Modularisierung
  28. 28. Page 28 LEAN MANAGEMENT INSTITUT Specified by process modules Exchange data between modules Define data quality, volume, and transfer format Lay down clear agreements between customer and supplier concerning data quality Describe the internal and external customer-supplier designations Define complaint and escalation levels Consistent implementation solves data quality problems Process service request Plan CS order Interface CS order Process Interfaces Basis for exchanging data and information effectively
  29. 29. Page 29 LEAN MANAGEMENT INSTITUT Analysis Modularization Integration Implementation Serviceauftrag abschließen Faktura freigeben kaufmännisch abschließen Projekt extern abschließen Fakturaanforderung aus Service/Projekt ist vorhanden Fakturarelevante Belege aus Fakturavorrat auswählen Sammelfaktura ist zu erstellen Einzelfaktura ist zu erstellen Zu fakturierende Posten zusammen- stellen Fakturaanforde- rung ist in Ordnung Einzelfaktura ist nachzuarbeiten Fakturapositionen und -konditionen nacharbeiten Fakturasperre löschen Faktura buchen Fatura drucken Faktura mit Anlage versenden Faktura ist Kunden zugestellt Einzelkontrakt anlegen Faktura zu Einzelauftrag erzeugt Faktura gem. Fakturaplan erzeugt Lean Administration – The Method Establishing a business model Organization analysis Value flow analysis Order structure analysis Process analysis Activity structure analysis Cost structure analysis Starting to implement immediate measures Module definition Module optimization Standardization Describing and standardizing interfaces Defining the product creation process Assigning and integrating the modules into the processes Capacity adjustment Implementing the processes Organization adjustment Introducing process cost management Introducing CIP
  30. 30. Page 30 LEAN MANAGEMENT INSTITUT Product Creation Process Interlinking the functional areas – integrating process modules Product creation processes A B C D PRODUCTION E F G I CONTROLLING H J L M N FINANCE K Process modules e.g. providing services B E F D O OCMBMOM A Prepare incidental leasing cost sheet B D N OCMBMKFM A CustomerCustomer CustomerCustomer
  31. 31. Page 31 LEAN MANAGEMENT INSTITUT TABG Invoice request Report back service Convert service to account Remove invoice block FASL KFA Billing cycle Print and dispatch invoice FGEB Commercial completion Fulfil service order Release invoice Commercial completion Complete project externally Invoice request from service/project is present Select invoice- relevant documents from invoice store Collective invoice must be created Individual invoice must be created Assemble items to be invoiced Invoice request is in order Individual invoice must be reworked Rework invoice items and terms Remove invoice block Book invoice Print invoice Dispatch invoice with enclosure Invoice is delivered to customer Create individual contract Invoice generated for individual order Invoice generated as per invoicing plan Process module before Throughput time approx. 10 days Interfaces within module = 3 Offices involved = 3 Individual activities = 8 Throughput time approx. 3 days Interfaces within module = 0 Offices involved = 1 Individual activities = 5 High complexity Low complexity Structuring - Modularization Process module after EXAMPLE
  32. 32. Page 32 LEAN MANAGEMENT INSTITUT Analysis Modularization Integration Implementation Serviceauftrag abschließen Faktura freigeben kaufmännisch abschließen Projekt extern abschließen Fakturaanforderung aus Service/Projekt ist vorhanden Fakturarelevante Belege aus Fakturavorrat auswählen Sammelfaktura ist zu erstellen Einzelfaktura ist zu erstellen Zu fakturierende Posten zusammen- stellen Fakturaanforde- rung ist in Ordnung Einzelfaktura ist nachzuarbeiten Fakturapositionen und -konditionen nacharbeiten Fakturasperre löschen Faktura buchen Fatura drucken Faktura mit Anlage versenden Faktura ist Kunden zugestellt Einzelkontrakt anlegen Faktura zu Einzelauftrag erzeugt Faktura gem. Fakturaplan erzeugt Lean Administration – The Method Establishing a business model Organization analysis Value flow analysis Order structure analysis Process analysis Activity structure analysis Cost structure analysis Starting to implement immediate measures Module definition Module optimization Standardization Describing and standardizing interfaces Defining the product creation process Assigning and integrating the modules into the processes Capacity adjustment Implementing the processes Organization adjustment Introducing process cost management Introducing CIP
  33. 33. Page 33 LEAN MANAGEMENT INSTITUT Time taken Module 2 = ... h Calculating Capacity on a Modular Basis Example Activity Structure Analysis Core activity File a report 5 min Open a CS order 7 min Factor performance 5 min Process module Process time = module time = 17 min Process 1 5 min Process 2 7 min Process 3 5 min + + 637.5 h Time taken per module and month 75% Probability of the module in business occurrence 3,000Business occurrences per month 17 minModule time 1 Quantitative framework Object structure Order structure = Time taken Module 1 = 637.5 h Time taken Module n = ... h Total time taken for core activities per function
  34. 34. Page 34 LEAN MANAGEMENT INSTITUT The secondary activities in particular hold high optimization potential because they are mainly attributable to deficiencies at the process interfaces Project Potentials Avoiding waste Main activities Secondary activities Organizational activities Potential Current status Target status Capacity requirement Reduction to a necessary amount Optimizing Individual procedures
  35. 35. Page 35 LEAN MANAGEMENT INSTITUT Industrializing Business Processes with Lean Administration Increases transparency and quality, Enables clear and measurable processes, Describes areas of responsibility and resource use, Clearly defines input, output, and interfaces, Enables individual and customer-specific solutions based on standardized process modules, Enables clear capacity planning and process cost accounting, Reduces organizational and IT costs.
  36. 36. LEAN MANAGEMENT INSTITUT Starting Position Lean Thinking Lean Management methods in the public sector - Lean Administration - Lean Maintenance and Service - Lean Management Examples from German local government Lean City Club Agenda
  37. 37. Page 37 LEAN MANAGEMENT INSTITUT Lean Maintenance and ServiceD isposition ofm aintenance and services C om plete services M odularization, standardization Lean Adm inistration M odule-supported planning Technicalequipm ent m anagem ent Logistics ofm aterials and spare parts M odule-supported purchasing Im plem entation ofw ork organization M anagem entof externalservices Increasing Efficiency of Maintenance Processes
  38. 38. Page 38 LEAN MANAGEMENT INSTITUT Lean Maintenance and Service MODULARIZATION AND INTEGRATION Process analysis Modularization and standardization Process optimization - Creating integrated teams - Defining complete services - Harmonizing schedules - Consolidating space - Harmonizing capacity - Increasing productivity 1 3 PURCHASING MANAGEMENT AND PLANNING Purchasing management - Module-supported purchasing - Optimized warehouse planning - Optimized outsourced services Make-or-buy decisions Planning/dispatch Support base concept TECHNICAL PLANT/EQUIPMENT MANAGEMENT 2 4 IMPLEMENTATION Project management Project controlling Adjusting capacity Adjusting the support organization Process cost accounting Introducing CIP Plant/equipment management Separating loss classes for plant/equipment modules Maintenance strategy Complexity management Cost analysis
  39. 39. Page 39 LEAN MANAGEMENT INSTITUT Number of employees: 16,000 Establishments: 7 Local offices: 35 167 maintenance areas Project DB Netz AG Reducing maintenance costs Locking in the maintenance-quality at a high level Reducing purchasing costs Higher level of transparency for planning maintenance processes Increasing the availability of tracks Objectives Enhancement of order processes Standardized and lean purchasing processes (-20 % costs) Higher planning reliability Optimized technical equipment Productivity improvement +30% Reduction of costs 225 million €/year ResultsApproach Modularization Module-supported purchasing Central order management SAP R/3 Technical equipment management
  40. 40. LEAN MANAGEMENT INSTITUT Starting Position Lean Thinking Lean Management methods in the public sector - Lean Administration - Lean Maintenance and Service - Lean Management Examples from German local government Lean City Club Agenda
  41. 41. LEAN MANAGEMENT INSTITUT LeanManagement LEAN Thinking LeanMaintenance andService LeanAdministration LeanInnovation LeanSupplyChain Create value without waste LeanProductionSystem LEAN THINKING – THE LEAN BUSINESS SYSTEM
  42. 42. Page 42 LEAN MANAGEMENT INSTITUT Waste in Indirect Areas Waste caused by - the flood of papers and documents - looking for files, etc. - unneeded trips around the office (for copying, faxing, printing, etc.) - unnecessary copying and filing - lengthy training periods due to increasingly complex systems - lengthy approval processes - inefficient meeting scheduling - inefficient telephone conversations - disturbances at the workplace - poor design of computer workplaces The waste category criteria also apply to indirect work areas
  43. 43. Page 43 LEAN MANAGEMENT INSTITUT Continuous Improvement Process (1) CIP is a business philosphy: Improving the competitiveness of the firm by increasing quality and efficiency, with all employees constantly helping to provide solutions to problems in small steps. time Productivity Standard 5. Evaluate 1. Identify Problem- lösungs- prozess 4. Implement 2. Analyze 3. Plan
  44. 44. Page 44 LEAN MANAGEMENT INSTITUT Source: Agnus Consult, 1996 Continuous Improvement Process (2) Improving business performance with CIP 80% 11% 27% 94% 94% 98% 21% 3% 36% 0% 25% 50% 75% 100% CIP reduces throughput times CIP reduces inventories cost reductions of over 20% cost reductions of up to 20% cost reductions of up to 15% cost reductions of up to 10% cost reductions of up to 5% CIP lowers costs Profits from CIP exceed costs Example Studies at 113 firms showed that
  45. 45. LEAN MANAGEMENT INSTITUT Starting Position Lean Thinking Lean Management methods in the public sector - Lean Administration - Lean Maintenance and Service - Lean Management Lean City Club Examples from German local government Agenda
  46. 46. Page 46 LEAN MANAGEMENT INSTITUT Optimizing processes on the basis of tried and tested Lean Management methods Creating transparency in internal processes and showing their strengths and weaknesses Creating cost transparency and a clear view of costs and benefits Providing concrete and practice-based ideas for improving efficiency Conveying the Lean Thinking frame of mind and point of view Supporting active implementation Providing the foundation for fundamental customer orientation for internal administrative, service, and maintenance organizations Lean City Club Objectives
  47. 47. Page 47 LEAN MANAGEMENT INSTITUT Lean City Club The objective of the Lean City Club is to continue pursuing the reform efforts that have already been realized in many local governments and government bodies. In keeping with the industrial model, the rationalization potentials found in public administration need to be utilized, allowing cities and municipalities to be refounded as enterprises for the purpose of - city revitalization, - debt reduction, - improved orientation to residents, - achieving a more promising starting position in the race to attract private enterprise and residents - regaining a forward-looking orientation in cities and municipalities. Benefits
  48. 48. Page 48 LEAN MANAGEMENT INSTITUT Reorganizing communal work processes with the aid of the tried and tested tools of Lean Business Systems Fees for the cities = €1 per resident Conducting an EU-funded project* in cooperation with the Lean Management Institutes in the Netherlands and England Management of the project is led by the Lean Management Institut Deutschland. Procedure Lean City Club * Forthcoming
  49. 49. Page 49 LEAN MANAGEMENT INSTITUT LeanAdministration LeanConstruction LeanMaintenance & Service Residents’ services Building authorities Public construction Administrative bodies Municipal utilities Facility management Reorganizing on the Basis of Lean Business Tools LeanManagement
  50. 50. Page 50 LEAN MANAGEMENT INSTITUT Creating Thematic Teams Residents’ services Building authorities Public construction Public transport Municipal utilities Facility management Seelze DüsseldorfNeuenkirchenHomburg City5 ..... ..... City20 Short- and medium- term measures Long-term efforts at changing the law
  51. 51. Page 51 LEAN MANAGEMENT INSTITUT Lean City Club Short-term immediate measures to optimize processes Process costs for the processes studied Modules and interfaces that can be assembled – like Lego bricks – to form the necessary administrative, service, and maintenance products individually into complete services Optimization recommendations for legislative solutions Results of the Workgroups
  52. 52. Page 52 LEAN MANAGEMENT INSTITUT NOTE: Some pages which were shown at the Lean Service Summit 2004 are not published in this documentation. These documents included dates from customers and were not released. Please do not hesitate to contact us for questions and further information. LEAN MANAGEMENT INSTITUT Contact person: Heiko von Damnitz Steinbachstraße 25 D - 52074 Aachen Tel: +49(0)241-89 49 99 93 Fax: +49(0)241-89 49 99 94 E-Mail: info@lean-management-institut.de www.lean-management-institut.de THE WAY TO LEAN CITY
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