Your SlideShare is downloading. ×

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

Lean Office

3,266

Published on

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: …

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:

Published in: Business, Technology
4 Comments
20 Likes
Statistics
Notes
  • Hi , very nice presentation.Appreciate if you could also share to me.
    ernestomanueljr@yahoo.com

    thank you in advance.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • You can find the full Lean Office document here:
    https://flevy.com/browse/business-document/lean-office-350

    You may also be interested in the other lean management based methodologies from the same author here:
    https://flevy.com/seller/oeconsulting/lean-management-7

    If you need anything else, please email us at support@flevy.com. Thanks.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • is there anyway to download this great presentation? if is not; is there a way to get it emailed to me in a .ppt format? please let me know.

    Thank you

    Luis Goitia
    lgoitia@advancepaperbox.com
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Hi, Could you please send me this presentation at ghori303@gmail.com.
    Thank you in advance!!!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
3,266
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
4
Likes
20
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

Transcript

  • 1. LEAN OFFICE CREATING VALUE FOR CUSTOMERS © Operational Excellence Consulting. All rights reserved.
  • 2. Objectives By the end of the course, you would be able to: • Understand the principles and key concepts of Lean • Identify value and waste • Gain an overview of key Lean principles and tools, and their applications • Apply 5S principles to improve workplace organization and efficiency • Apply a simple problem solving process Copyrights of all the pictures used in this presentation are held by their respective owners © Operational Excellence Consulting. All rights reserved. 3
  • 3. 1 INTRODUCTION TO LEAN OFFICE © Operational Excellence Consulting. All rights reserved.
  • 4. What Lean IS NOT • Laying off employees by the bus load • Offshoring or outsourcing • Delivering less or working harder • Being mean to people • Automation or implementing an IT system • Narrow focus on unit cost management • Another “extracurricular activities” © Operational Excellence Consulting. All rights reserved. 7
  • 5. Lean Office Framework (a.k.a. Toyota Production System) 1 Stability Goals: highest quality, lowest cost, shortest lead times 2 Standardization 3 Just-In-Time 3 Just-In-Time • Continuous flow 4 Jidoka Jidoka Involvement 5 • Separate man & • Takt time machine work • Pull system 5 Involvement 4 • Abnormality Identification • Flexible workforce • Poka yoke 2 Heijunka Standardized Work Kaizen 1 Stability © Operational Excellence Consulting. All rights reserved. 9
  • 6. What does Lean in a office/service environment look like? (1/2) Application Common Issues Typical Solutions Banks • Mergers and acquisitions • Loans application • Differences in • Process integration and business practices • Loans approval process streamlining • Fast track processing for low-risk loans IT • Outsourced managed services • Complicated tasks • Unbalanced capacity • Manpower utilization • Segmenting complexity • Pooling resources for Telco • Procurement • Call centre operations • Cost-based and capex • Inventory management management • Network sharing • Customer service • Channels efficiency economies of scale • Flexible manpower systems Source: Operational Excellence Consulting Research © Operational Excellence Consulting. All rights reserved. 11
  • 7. Benefits of Lean Office • Improved customer satisfaction (internal and external) • Improved quality of products/services • Improved productivity • Reduced paperwork • Reduced staff stress (e.g. searching for information) • Engaged employees © Operational Excellence Consulting. All rights reserved. 13
  • 8. Methods to Increase Productivity More Staff Quantitative Approach More Machines Work Longer How to Increase Productivity? Work Harder Qualitative Approach Eliminate Waste & Simplify Focus of Lean Let’s work smarter! © Operational Excellence Consulting. All rights reserved. 15
  • 9. Waste take up a significant amount of time and costs which can be eliminated Manufacturing Sector Services Sector Value Adding 15% Non-Value Adding 85% Value Adding 25% Non-Value Adding 75% Waste are the hidden costs and time which the customer is not paying for © Operational Excellence Consulting. All rights reserved. 17
  • 10. 20 minutes of waste a day… • Find a way to remove 20 minutes of waste from your daily work routine • This will add up to 2 weeks over a one year period © Operational Excellence Consulting. All rights reserved. 19
  • 11. Types of Waste Over-Production • Creating reports that no one needs or making extra copies • Exceeding customer needs (“goldplating”) • Exceeding scope of agreement • Purchasing items before they are needed (e.g. items on sale) • Providing more information than the customer needs © Operational Excellence Consulting. All rights reserved. 21
  • 12. Types of Waste Waiting • Waiting to be served • Waiting for instructions, approvals, information or decisions • Seeking clarifications (due to unclear communications) • Equipment/System downtime • Waiting between assignments or projects • Out-of-stock © Operational Excellence Consulting. All rights reserved. 23
  • 13. Types of Waste Unnecessary Motion • Reaching, bending or unnecessary motion due to poor ergonomics and office layout • Unnecessary walking to utility room • Searching for information in internet, intranet or shared folders • Searching for tools, files and supplies • Lack of or sub-optimal SOP • Handling paperwork © Operational Excellence Consulting. All rights reserved. 25
  • 14. Types of Waste Defects • Data entry errors, mistakes or rework • Missing information, missed specifications, or lost records • Poor process controls • Managing subcontractors to correct mistakes • Incorrect schedules and information • Inadequate trials before full implementation • Lost or damaged goods © Operational Excellence Consulting. All rights reserved. 27
  • 15. Examples of Value-Added Activities • Entering orders • Translating materials • Creating codes • Preparing drawings or artwork • Assembling goods • Shipping to customers © Operational Excellence Consulting. All rights reserved. 29
  • 16. “We must always keep in mind that the greatest waste is the waste we don‟t see.” - Shigeo Shingo, a Japanese industrial engineer and expert on the Toyota Production System © Operational Excellence Consulting. All rights reserved.
  • 17. Lean Principles 1. Specify value from the customer‟s perspective 2. Identify the value stream for each service family 3. Make the service flow 4. Deliver when the customer pulls from your operations (just in time delivery) 5. Manage towards perfection Source: Lean Thinking by James P. Womack and Daniel T. Jones © Operational Excellence Consulting. All rights reserved. 33
  • 18. Lean Methods & Tools • Many Lean techniques and tools are available • Adopters are free to choose which techniques and/or tools can be used to help them improve efficiency and create additional value • We will look at some Lean techniques and tools in the following slides that are applicable to office and lab environments © Operational Excellence Consulting. All rights reserved. 35
  • 19. Go to “Gemba”, observe, recognize Waste and take steps to eliminate it • “Gemba” means the place where the real actions take place • It usually refers to the place where employees have direct contact with customers • “Gemba” is where the value-adding activities to satisfy the customer are taken place • One place that is not “Gemba” is a manager‟s desk When was the last time you made your “Gemba” walk? © Operational Excellence Consulting. All rights reserved. 37
  • 20. What is 5S? 5S Is… • Daily organization, maintenance and cleaning of an area • Cornerstone for visual management • The building blocks for developing a Lean culture • Setting up an area in the most efficient manner possible 5S Is Not… • A thorough spring cleaning • A way of getting ready for an upcoming tour • A way to keep employees busy during slow periods • Organizing and cleaning everything that currently resides in a work area © Operational Excellence Consulting. All rights reserved. 39
  • 21. Meaning of 5S Principles General Description 1S Sort Remove what is not needed and keep what is needed 2S Set in Order Arrange essential items in order for easy access 3S Shine Keep things clean and tidy; no trash or dirt in the workplace 4S Standardize Establish standards and guidelines to maintain an organized workplace 5S Sustain Make 5S a habit and teach others to adhere to established standards © Operational Excellence Consulting. All rights reserved. 41
  • 22. 1S : Sort • Principle  Stratification management • Meaning  Separate the necessary from the unnecessary  Get rid of what you do not need “When in doubt, move it out!” © Operational Excellence Consulting. All rights reserved. 43
  • 23. Attach Red Tags • Fill in everything except disposition G42 • Perform tagging swiftly Hydraulic Motor 3 Not in Use 06/13/2007 • Place tags on all items in question • Move “tagged items” to a holding area © Operational Excellence Consulting. All rights reserved. 45
  • 24. 2S : Set In Order • Principle  Functional storage  Search elimination • Meaning  Find a permanent place for all needed items  Arrange needed items in order for easy access “A place for everything, with everything in its place.” © Operational Excellence Consulting. All rights reserved. 47
  • 25. 2S : Set In Order – Practice Tips • Painting / color coding floors • Zoning and placement marks • Removal of old and obsolete information on notice boards, intranet and shared drive • Archiving of electronic files • Creating cabinets for storing cleaning supplies and materials used occasionally © Operational Excellence Consulting. All rights reserved. 49
  • 26. 2S : Set In Order - Examples Marker pens sorted by color 5S on desk top drawer Cabinet filing with labels Files are color-coded and neatly arranged on desk © Operational Excellence Consulting. All rights reserved. A diagonal stripe was taped on to the spines of a set of binders. At a glance, anyone can tell if any file is missing. 51
  • 27. Which is cleaner – Your keyboard or the toilet seat? A 2004 study by Dr. Charles Gerba of the Univeristy of Arizona found keyboards have on average 3,295 germs per square inch versus a toilet seat which has 49 germs per square inch. Gerba say, “Desks are really bacteria cafeterias.” Clean your keyboard. Researchers recommend that you should give your keyboard a good “spring cleaning” by dusting off crumbs and cleaning with an appropriate disinfectant. © Operational Excellence Consulting. All rights reserved. 53
  • 28. 4S: Practice Tips • Make best practice common practice • Create templates for all forms • Systematically review and update SOPs and job instruction sheets • Set in place the rules and policies that support the first three steps, e.g. designated areas, proper marking of areas, a log of what goes where, etc. © Operational Excellence Consulting. All rights reserved. 55
  • 29. 5S : Sustain • Principle  Habit formation  Disciplined workplace • Meaning  Make 5S a habit  Conduct regular „gemba‟ walks  Schedule for 5S audits  Communicate “Maintain the gain, forget the blame.” © Operational Excellence Consulting. All rights reserved. 57
  • 30. 5S your computer hard/shared drive 5S Principle Description Sort • Check all your files and software, and get rid of any that are unnecessary Set In Order • Organize your files and optimize the use of file folders • Keep in mind how often you need them and how much time you need to store them • Create specific shortcut icons for the most used files or programs Shine • Eliminate any files under deleted items, sent items and the recycle bin Standardize • Establish procedures for maintaining your computer 5S system Sustain • Include hard drives in 5S audits • Focus on how people maintain files and program organization, and the time they spend ding so © Operational Excellence Consulting. All rights reserved. 59
  • 31. Everyday Visual Management © Operational Excellence Consulting. All rights reserved. 61
  • 32. 3 Types of Visual Office Visual Display • Label to make it perfectly clear where things belong and what the procedures are Visual Metrics • Quantify the path to targets for success • Graphs and Pareto charts Visual Controls • Create an error-proofed environment to promote easy adherence to standards © Operational Excellence Consulting. All rights reserved. 63
  • 33. Visual Control Objective • The objective is to implement an effective Visual Control system that provides the necessary level of control to achieve and sustain service improvements while maintaining high productivity and quality. Cycle Time Reduction Product Profitability Process Costs On Time 100% Rework WIP Backlog Internal Quality Revenue © Operational Excellence Consulting. All rights reserved. Late Delivery 65
  • 34. Daily Standup Meetings Agenda • Yesterday‟s issues • Lessons learned • Manpower status • Update from top management • 5S & Kaizen activities • Today‟s target & actions © Operational Excellence Consulting. All rights reserved. 67
  • 35. Why Office Layout? • Ensures most efficient layout for employees and work flow • Reduce or eliminate excess travel and motion wastes • Allows for workforce flexibility via sharing of work when necessary • Provides foundation for small lot work flow • Can be U-shaped or L-shaped, depending on area • Facilitates communication and reinforces team work • Increases organizational process knowledge, versus individual process knowledge © Operational Excellence Consulting. All rights reserved. 69
  • 36. Value Stream Defined • Value Stream - All of the activities, required to fulfill a customer request from order to delivery. Value Stream Process 1 Customer Request Process 3 Process 3 Customer Receipt © Operational Excellence Consulting. All rights reserved. 71
  • 37. Value stream mapping provides an overview of the end-to-end administrative process Information flow Supplier/ Customer Management Control Customer Work & Information Flow • Creates an end-to-end view of the system • Demonstrates interaction between material/work and information flow • Provides a common visual language for understanding a complex system © Operational Excellence Consulting. All rights reserved. 73
  • 38. Current State Value Stream Map Purchasing – Non-repetitive purchases less than $5,000 © Operational Excellence Consulting. All rights reserved. 75
  • 39. Future State Value Stream Map Purchasing – Non-repetitive purchases less than $5,000 © Operational Excellence Consulting. All rights reserved. 77
  • 40. Standard Work supports a culture of continuous improvement Control Points Materials & Information Machines (equipment) Methods People Measurements Feed in materials & information Ship to customers Customer request That’s not what they ordered! Sloppy work = defective, off-standard products Different product Standard Elements for Building Quality into products © Operational Excellence Consulting. All rights reserved. 79
  • 41. Standardization Takt Time = 10 seconds © Operational Excellence Consulting. All rights reserved. 81
  • 42. Heijunka • Leveling the type and frequency of service delivery over a fixed period of time • This enables the service provider to efficiently meet customer demands while avoiding batching and results in minimum inventories, capital costs, manpower, and delivery lead time through the whole value stream © Operational Excellence Consulting. All rights reserved. Mura and Muri can be improved by balancing the work load 83
  • 43. Heijunka – Lean Levers Can Be Applied to Reduce Waste 1 2 3 4 5 6 7 Segmenting complexity Form separate channels for complicated tasks so that simple ones are not held up Redistribute activities Align activities with appropriate skill set and group Pool resources Utilize existing skills and resources to reach economies of scale Flexible manpower systems Balance processing capacity with the ongoing demand by moving people to where the work activity is Reduce incoming work Eliminate tasks from a person by reducing the actual work activity arising Reduce NVA work Eliminate work that does not directly add value to the end customer Standardize operations Establish best practices to execute a task © Operational Excellence Consulting. All rights reserved. 85
  • 44. Philip Crosby: Law of 10 1 Minimal defects due to preventionbased activities 10 Defects found within the company and corrected internally 100 Customer finds defects and makes complaints © Operational Excellence Consulting. All rights reserved. 87
  • 45. Quality at Source • Quality means meeting requirements  Needs  Expectations • Every staff is an inspector, not the next person in the process or the customer • We can use tools such as poka yoke (mistakeproofing) and visual control to prevent errors © Operational Excellence Consulting. All rights reserved. 89
  • 46. Poka-Yoke (Mistake Proofing) • Poka-yoke is a Japanese term that means "mistakeproofing" • Poka-yoke refers to techniques that make it impossible to make mistakes • Poka-yoke helps people and processes work right the first time © Operational Excellence Consulting. All rights reserved. 91
  • 47. Poka Yoke – Dual Focus People and systems do make mistakes. A portion of mistakes turn into defects. Prevention Poka-Yoke that focuses here works on mistake prevention or making mistakes impossible. Process Mistakes Defects Detection Poka-Yoke that focuses here works on mistake detection, or making sure mistakes do not turn into defects. © Operational Excellence Consulting. All rights reserved. 93
  • 48. What is Kaizen? • The Japanese word “Kaizen” (改 善) means change (KAI) to become good (ZEN). Kai Zen 改 善 Change Good © Operational Excellence Consulting. All rights reserved. 95
  • 49. 10 Rules of Kaizen 1 1. Discard conventional rigid thinking about service delivery. 2. Think of how to do it, not why it cannot be done. 3. Do not make excuses. Start by questioning current practices. 4. Do not seek perfection. Do it right away if for only 50% of target. 5. Correct mistakes at once. © Operational Excellence Consulting. All rights reserved. 97
  • 50. Kaizen Event • Rapid, focused application of Lean to reduce waste to improve cost, quality, delivery, speed, flexibility and responsiveness to customer needs • 3-5 day dedicated event • Clear objective and scope • Continuous small improvements • Changes are implemented quickly Source: "The Idea Generator” by Norman Bodek • Everyone gets involved © Operational Excellence Consulting. All rights reserved. 99
  • 51. Lean Kaizen Storyboard To: ___________________ By: ___________________ Date: __________________ THEME: Concise statement of what this Kaizen is about. BACKGROUND: • Note any contextual or background information necessary to fully understand the issue. • Indicate how this problem affects the company‟s goals or is related to its values. TARGET CONDITION: • Insert a diagram that illustrates how the proposed process will work, with labels. • Note or list the countermeasure(s) that will address the root cause(s) identified. • Predict the expected improvement in the measure of interest (specifically and quantitatively) CURRENT CONDITION: • Insert a diagram that illustrates how the current process works. • Label the diagram so that anyone knowledgeable about the process can understand. • Note the major problems • Include quantified measures of the extent of the problem – graphical representations are best! IMPLEMENTATION PLAN: • List the actions which must be done in order to realize the Target Condition, along with the individual responsible for the action and a due date. • Add other items, such as cost, that are relevant to the implementation. ROOT CAUSE ANALYSIS: • List the main problem(s) • Ask appropriate “why?” questions until you reach the root cause. A rule-of-thumb: you haven‟t reached the root cause until you‟ve asked “why?” at least 5 times! • List the answers to each why question Action Responsibility Action 1 D. Smith Action 2 N. Jones Action 3 M. Jordan Etc. COST: no expenditures required Deadline Oct. 1 Nov. 5 Nov. 28 FOLLOW-UP: Plan   Note the plan to measure the effectiveness of the proposed change. Indicate when it will be measured, and by whom. © Operational Excellence Consulting. All rights reserved. Actual    Leave blank initially After follow-up, record the results of implementation Record the date of actual follow-up 101
  • 52. PDCA Problem Solving • A systematic approach to process improvement Act • Provides the framework for a team to carry out improvement Plan Check Do © Operational Excellence Consulting. All rights reserved. 103
  • 53. Pareto Chart • Purpose  To show relative importance of a set of measurements  Also called the “80/20” rule • When to use  To differentiate the „vital few‟ from the „trivial many‟  After improving a process, to show relative change in a measured item  Sorting a set of measurements to emphasize their relative sizes © Operational Excellence Consulting. All rights reserved. 105
  • 54. Example: Pareto Chart Pareto Chart Pizza Defects 35 120% 30 Occurences 25 80% 20 60% 15 40% 10 20% 5 - Wrong Toppings ColdPizza Late Pizza Wrong Crust Tastes Forgot Breadsticks No Change in Box Bad Driver Had Smashed Wrong Price Driver Rude All other Quantity 29 25 22 13 10 7 4 3 2 1 25% 46% 64% 75% 84% 90% 93% 96% 97% 98% 100% % of Total 25% 21% 19% 11% 8% 6% 3% 3% 2% 1% 0% 2 Cum % Cumulative Percent 100% 2% Time Period: January-02 © Operational Excellence Consulting. All rights reserved. 107
  • 55. Cause & Effect Diagram (a.k.a. Ishikawa Diagram, Fish-bone Diagram) • Purpose  To identify and structure the causes of a given effect • When to use  When investigating a problem, to identify and select key problem causes to address  When effect of a problem is known, but possible causes are unclear  To find other causal relationships, such as potential risks or causes of desired effects © Operational Excellence Consulting. All rights reserved. 109
  • 56. Example: Cause and effect diagram used in solving the problem of “Late Payment of Invoices” Internal Mail System Computer System Cost-Reduction Program Older System One Pick-Up Daily Excess Demand Downtime Manual Sort Process New Excess Maintenance Demand Contractor Access Limitations Workspace Equipment Lost/Misplaced Mail Turnover Low Priority Inexperienced Staff Hiring Freeze Turnover Access Limitations Paycuts Productivity Deadlines Morale Overtime Reduced Staff Low Priority Audit Recommendation for Tighter Control Centralized Payment Authorization Maximize Cash Branch Offices Forward Payments Weekly Payment Delays Increased Workload Reorganization of Purchase Org. Missing Documentation Resigned No Limit Manager Missing Purchase Orders Finance Policy Manual Crowded Files Space Late Payment of Invoices Documentation © Operational Excellence Consulting. All rights reserved. Legend Validated root causes 111
  • 57. What Are “Kaizen Eyes”? • Kaizen is continual improvement for the better. • "Kaizen Eyes" see opportunities to improve. These eyes are a skill that can be developed through technique and practice. • The following slides are ways (techniques) to be practiced. They will help to widen the ability to recognize opportunity that may not be in full view. © Operational Excellence Consulting. All rights reserved. 113
  • 58. Ways to Develop “Kaizen Eyes” 2 21. Record annoyances 31. Build something 22. Look from different frame (i.e. quality, safety, materials) 32. Specify value through the eye of the customer 23. Follow the flow 33. Start to Kaizen something 24. Do an experiment 34. Join an improvement team 25. Swim up the process 35. Create a poka-yoke 26. Test a theory 36. Brainstorm possibilities 27. Ask a child 37. Study other Kaizens 28. Look for patterns 38. Collect examples of improvements from all parts of life 29. Understand the financials 30. Imagine what the activity would look like with different staffing 39. Practice at home 40. Teach to a child © Operational Excellence Consulting. All rights reserved. 115
  • 59. 5 LEAN ROLES © Operational Excellence Consulting. All rights reserved.
  • 60. Role of Lean Deployment Leader • Responsible for the deployment of Lean within his/her region, division or business unit • Works with leaders of region/division/business unit to determine their goals and objectives and ensure that they are aligned with the executives • Facilitates the identification and prioritization of projects • Develops a communication plan for the region/division/business unit • Reports the deployment status to the steering committee • Selects the project champions • Remove barriers for the team • Share best practices © Operational Excellence Consulting. All rights reserved. 119
  • 61. Role of Process Owner • Takes ownership of the project when it is complete • Is responsible for maintaining the project gains • Removes barrier for Lean project teams • Support the project team, e.g. make resources available • Maintain the countermeasures and ensure that they are active and compliant • Participate in Lean project reviews © Operational Excellence Consulting. All rights reserved. 121
  • 62. Role of Lean Team Leader • Is responsible for leading, executing, and completing Lean projects • Teaches team members the Lean methodology and tools • Assists in identifying project opportunities and refining project details and scope • Reports progress to the project champions and process owners • Transfers knowledge to other Lean Team Leaders and the organization • Mentors Lean Team Members © Operational Excellence Consulting. All rights reserved. 123
  • 63. Critical Success Factors • Management commitment • Alignment to vision and mission • Availability of resources • Address “what is in it for me” • Success measures and KPIs • Management review • Rewards and recognition © Operational Excellence Consulting. All rights reserved. 125
  • 64. “Whether you think you can, or you think you can’t, you’re right.” - Henry Ford © Operational Excellence Consulting. All rights reserved.

×