Your SlideShare is downloading. ×
Value Stream Mapping for the Front Office
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Value Stream Mapping for the Front Office

1,470
views

Published on

{Presented by Ken Noll at the Cincom 2005 Annual Conference} …

{Presented by Ken Noll at the Cincom 2005 Annual Conference}

Businesses implementing lean manufacturing bypass the front office and target their manufacturing processes. After all, front offices have paperwork, not inventory, right? However, order entry, quoting, scheduling, design and engineering are front office functions that can provide an eye-opening opportunity to create improvement, eliminate waste, and increase profits in your business. It’s not uncommon to discover that over 95% of the lead time in your order is found in the office functions – and only 5% of the lead time in the actual production of the product. This session spotlights areas of opportunity that are often overlooked, as well as how the seven basic forms of waste can be found in front office processes.

Published in: Business, Technology

0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,470
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
4
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Welcome everyone to the 2005 Cincom Manufacturing Conference here in beautiful Tucson, Arizona! Each year we look forward to welcoming our customers and guests to this event that is focused on helping you get the most from your Cincom investments and provide you an opportunity to see where our company is going in the future. Businesses implementing lean manufacturing bypass the front office and target their manufacturing processes. After all, front offices have paperwork, not inventory, right? However, order entry, quoting, scheduling, design and engineering are front office functions that can provide an eye-opening opportunity to create improvement, eliminate waste, and increase profits in your business. It’s not uncommon to discover that over 95% of the lead time in your order is found in the office functions – and only 5% of the lead time in the actual production of the product. This whitepaper spotlights areas of opportunity that are often overlooked, as well as how the seven basic forms of waste can be found in front office processes.
  • Transcript

    • 1.  
    • 2. Agenda
      • History of Lean
      • Common Wastes in the Front Office
      • Hidden Wastes
      • Mapping Your Front Office Processes
      • Prioritizing Areas of Opportunities
      • Conclusions
    • 3. History of Lean 1
      • Taiichi Ohno (1912 – 1990)
      • Added Value came from the systematic elimination of waste (muda).
      • First implemented after WWII in Japan
      • In the 80’s the success of several Japanese plants in US led to adoption of Lean by US companies
      1 - The Lean Manufacturing Handbook, Tom Epply
    • 4. History of Lean
      • Producing things ahead of demand
      • Inability to move to the next processing step
      • Unnecessary movement of materials between processes
      • Inappropriate processing of parts, due to poor tool and or product design.
      • Storing more parts than the absolute minimum.
      • Unnecessary movement of people during the course of their work.
      • Production of defective parts
      OVERPRODUCTION WAITING INVENTORY TRANSPORT OVERPROCESSING DEFECTS MOVEMENT 1 4 5 6 7 2 3
    • 5. “ So What’s This All Got to Do with Selling and Customers?”
    • 6. Common Wastes in the Front Office
      • Obsolete Product Feature Defects
      • Incorrect Pricing Defects
      • Incorrect Product Feature Defects
      Information Defects Product Modifications Sales System Updates List Price Defect Selling Price Defect Correct Need to Incorrect Feature Correct Feature to Incorrect Need
    • 7. Common Wastes in the Front Office
      • Excessive Reviews
      • Obsolete Document or Forms
      • Redundant Data Processing
      Information Over-Processing His.xls Hers.xls Ours.xls Sales Dept Engineering Dept Purchasing Dept
    • 8. Common Wastes in the Front Office
      • Waiting for cost and price estimates
      • Waiting for engineering approval on specials
      • Waiting to generate a correct proposal
      • Waiting for commitment from manufacturing or procurement
      Information Idle Time
    • 9. Hidden Wastes
      • Lost Scalability of the Sales Force
        • For each day that a sales channel is unaware of (or uncertified on) new products, product enhancements, and customer applications, revenue is lost.
        • Rapid development and deployment of value streams that support and educate the sales channels is essential to a new product rollout.
        • Sales effectiveness is increased with the knowledge of related products and their fit with customer needs - provided at the point of need.
        • Traditional wastes measured in process delays, rework, and information defects equate to millions of dollars in lost revenues, market share erosion, and customer retention.
      • Getting New Products to Market Sooner
        • Information defects, redundant data processing, and information idle time can dramatically effect how new products are developed and brought to market.  
        • Coordination of information flow between sales & marketing, product development, and production for New Product Introduction (NPI) is key.
        • According to AMR Research, companies that do not effectively manage their new product introduction (NPI) processes can be up to 56% later to market
        • Data compiled by consulting firm PRTM indicates that companies also experience up to 26% lower margins due to poor NPI processes.
    • 10. “ It Starts by Mapping Your Value Streams”
    • 11. Mapping Your Front Office Processes Customer Order Fulfillment 6 days of Value Added activity compared to 40 days of Non-Value Added activity
    • 12. Mapping Your Front Office Processes Pricing 6 days of Value Added activity compared to 27 days of Non-Value Added activity
    • 13. Mapping Your Front Office Processes “ Customer Specials” 8 days of Value Added activity, compared to 15 days of Non-Value Added activity
    • 14. Prioritizing Areas of Opportunities
      • A prioritization process may look
      • something like:
      • Determine a Risk Level for each opportunity by mapping each opportunity onto a Risk Matrix
      • Process improvement teams evaluate Risk Levels and determine required mitigation plans
      • Use of risk levels agreed to by management team and the process improvement team
    • 15. Conclusions 1
      • Measure your Inquiry to Order process (using Value Stream Mapping) and optimize using product AND information configuration strategies
      • Elimination of Idle Time and Information Defects causing unnecessary delays in order cycle times
      • Integration of product information (past and current) to drive customer specials reduce costly redesigns and engineering estimates
      • Information Over-Processing and Obsolete documents and procedures can further delay the order cycle times
      1 – Best Practices in Quote to Order, L. Columbus, Cincom Systems, Inc. 95% reduction in costs to complete an order Reduction in order cycle times from 17-33 hours to 30 minutes 20% to 50% reduction in engineering support for presales tasks Days Sales Outstanding (DSOs) reductions from an average of 60 to 29 day
    • 16. © 2005 Cincom Systems, Inc. All Rights Reserved Developed in the U.S.A. CINCOM, , and The World’s Most Experienced Software Company are trademarks or registered trademarks of Cincom Systems, Inc All other trademarks belong to their respective companies.