Lean for Service and Office

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What do 'Lean' manufacturing techniques have to offer service companies? Lean production practices generally reduce costs, eliminate waste, and increase efficiency. However, translating these practices to an office environment is often less than obvious. Fully achieving 'Lean' also entails value stream mapping, root cause problem solving, and 5S methodology (to name a few). But these ideas are far from difficult to grasp and often enlightening.

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Lean for Service and Office

  1. 1. , John Potter 08/21/2009 Muda Kaizen 5S VSM Lean Office Techniques & Ideas
  2. 2. Lean Definition <ul><li>“ The expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. </li></ul><ul><li>Working from the perspective of the customer who consumes a product or service, &quot;value&quot; is defined as any action or process that a customer would be willing to pay for. </li></ul><ul><li>Basically, lean is centered around creating more value with less work .” </li></ul><ul><ul><ul><ul><ul><li>--Wikipedia, “Lean Manufacturing” </li></ul></ul></ul></ul></ul>
  3. 3. <ul><li>Summary </li></ul><ul><li>Sort, Set in Order, Shine, Standardize, Sustain </li></ul><ul><li>Customer-focused, Enterprise-Wide Lean </li></ul><ul><li>Eliminating non-Value-Added activities </li></ul><ul><li>Office Flow & Value Stream Mapping </li></ul><ul><li>Lean in the Service Business </li></ul>
  4. 4. . Taco Bell: The way it used to be Lean in the Service Business
  5. 5. Taco Bell (the way it is now) <ul><li>What is Valued by the Customer? </li></ul><ul><li>Look at Flow, Set-up Time, Cost, Space </li></ul><ul><li>Pre-processing off-site </li></ul><ul><li>Assembly on-site </li></ul><ul><li>Teamwork </li></ul>
  6. 6. . Waukesha Bearings Office Flow & Value Stream Mapping
  7. 7. Value Stream Map <ul><li>Lean technique used to analyze the flow of materials and information currently required to bring a product or service to a consumer </li></ul><ul><li>Key is getting rid of large wasteful steps more than simply making current processes more efficient </li></ul>
  8. 9. Value Stream Mapping <ul><li>What Value Stream Mapping revealed </li></ul><ul><li>Interview </li></ul><ul><li>Map Current State </li></ul><ul><li>Evaluate Tasks </li></ul><ul><li>Brainstorm Changes </li></ul><ul><li>Develop Future State Map </li></ul><ul><li>Measure performance against goals </li></ul>
  9. 10. Achieving Flow <ul><li>The Perfect as the Enemy of the Good </li></ul><ul><li>Simplifying Office Layouts which means </li></ul><ul><li>Batch-and-queue on desks vs Visible Work in Progress </li></ul><ul><li>Line of sight visibility </li></ul><ul><li>Performance and targets </li></ul><ul><li>Self-management </li></ul>
  10. 12. Centralized Office Workflow <ul><li>. </li></ul>
  11. 13. . The Antioch Company Eliminate Non-Value Added Activities
  12. 14. The Lean Office Event <ul><li>Is a Lean Office Program Needed? </li></ul><ul><li>Creation of Lean Office Events </li></ul><ul><li>Analyze / Update Metrics </li></ul><ul><li>Select Process to Improve </li></ul><ul><li>Use neutral, unbiased facilitators to keep team focused, develop project scope/goals, coordinate event </li></ul>
  13. 15. Lean Office Event <ul><li>Involve Process Owner, have fun </li></ul><ul><li>Document Office Processes/ Interview </li></ul><ul><li>Create Current State Map / Develop Future State Map </li></ul><ul><li>Share Information with Team (wiki) </li></ul><ul><li>Follow-up Keep up with Follow-up Meeting </li></ul>
  14. 16. <ul><li>. </li></ul>Steelcase Enterprise-Wide Lean
  15. 17. Steelcase <ul><li>The need for senior leadership support </li></ul><ul><li>Value Stream Mapping Result: </li></ul><ul><li>At Steelcase, the goal was to </li></ul><ul><li>eliminate non-value added process steps/ handoffs </li></ul><ul><li>create standards for releasing and sequencing work </li></ul><ul><li>thus create flow to use standard processes. </li></ul>
  16. 18. Steelcase <ul><li>Process Owners critical </li></ul><ul><li>What happened when functional depts eliminated (colocation) </li></ul><ul><li>Checklist to eliminate flow interruptors </li></ul><ul><li>Acceptance </li></ul>
  17. 19. . The Elgin Sweeper Co 5S: Sort, Set in Order, Shine, Standardize, Sustain
  18. 20. The 5S Blitz <ul><li>The Need for a Sponsor, Facilitator, Team Leader, Team Charter </li></ul><ul><li>Sort </li></ul><ul><li>Set in Order </li></ul><ul><li>Shine </li></ul><ul><li>Standardize </li></ul><ul><li>Sustain </li></ul>
  19. 21. The 5S Blitz: Lessons Learned <ul><li>Take Before/After Pictures </li></ul><ul><li>Why a Formal Audit Process </li></ul><ul><li>Support from Management </li></ul><ul><li>Engage Supervisors </li></ul><ul><li>Sustain is the most difficult challenge </li></ul><ul><li>Take risks </li></ul>
  20. 22. Summary <ul><li>Useful (actionable) Metrics are critical </li></ul><ul><li>Think company culture not ‘project’ </li></ul><ul><li>Lean ~ Customer centric </li></ul>
  21. 23. Recommended
  22. 24. Questions <ul><li>Are your employees involved in development of lean initiatives? </li></ul><ul><li>Is every person aware of their role in your processes? </li></ul><ul><li>Is there good communication between employees and between groups in your organization? </li></ul><ul><li>Are you aware of points of poor process flow in your organization? </li></ul><ul><li>Does each of your processes have an owner? </li></ul><ul><li>Do your office employees understand what productivity is in their operations and how its measured </li></ul><ul><li>Are there metrics for measuring office performance? </li></ul><ul><li>Do you regularly follow up on measurements </li></ul>
  23. 25. Questions <ul><ul><li>Do you have a “current best way” for each process? </li></ul></ul><ul><ul><li>Does each of your teams include at least one “outsider” who is not part of the process being reviewed? </li></ul></ul><ul><ul><li>Do you follow a “try it, them improve it” approach? </li></ul></ul><ul><ul><li>Has a first attempt at improvement ever failed to work the way you anticipated? What do you do as a result? </li></ul></ul><ul><ul><li>Have you ever tried to simplify office layouts? Have you eliminated personal in-boxes? </li></ul></ul><ul><ul><li>Have you tried to achieve one-piece flow in office processes? </li></ul></ul>

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