Making the Case for Lean Process Lead-Times(a white paper summary)www.kinaxis.comcompany /resource center /white papers David Oppenheimbusiness consultantdoppenheim@kinaxis.comCopyright © Kinaxis 2009. All rights reserved.

Are your information process flows giving you a competitive edge?When cycle time shrinks, the organization has more options to react when the unexpected happens. Traditionally, when discussing Lean, the focus is on reducing the cycle time for producing the product. But this is rarely the greatest portion of the process. So greater impact is gained through reducing the administrative or information processing cycle times.Whether it’s an increased capacity to win new business, better order delivery performance or improved inventory management, Lean information processing provides companies with flexibility and competitive advantage.Copyright © Kinaxis 2009. All rights reserved.

When cycle time shrinks, the organization has more options to react when the unexpected happens.

Traditionally, when discussing Lean, the focus is on reducing the cycle time for producing the product. But this is rarely the greatest portion of the process. So greater impact is gained through reducing the administrative or information processing cycle times.

Whether it’s an increased capacity to win new business, better order delivery performance or improved inventory management, Lean information processing provides companies with flexibility and competitive advantage.

Examining administrative lead-timesUnderstand what is important to your customersChallenge your processes by walking through them with a fresh set of eyes from the perspective of the customer.Define the individual processes as either value-added or non value-added from the customer’s viewpoint.Tackle the elements that consume the most amount of cycle time in order to have the greatest impact on responsiveness.Copyright © Kinaxis 2009. All rights reserved.

Understand what is important to your customers

Challenge your processes by walking through them with a fresh set of eyes from the perspective of the customer.

Define the individual processes as either value-added or non value-added from the customer’s viewpoint.

Tackle the elements that consume the most amount of cycle time in order to have the greatest impact on responsiveness.

Examining administrative lead-timesUnderstand what is important to your bottom lineWasteful processes consume precious resources. It detracts from the primary mission of the business.Administrative lead-time time is easily measured by the customer, and can impact revenue, profit and competitiveness. By managing administrative lead-times, companies can better deliver on the primary mission of the business.Copyright © Kinaxis 2009. All rights reserved.

Understand what is important to your bottom line

Wasteful processes consume precious resources. It detracts from the primary mission of the business.

Administrative lead-time time is easily measured by the customer, and can impact revenue, profit and competitiveness.

By managing administrative lead-times, companies can better deliver on the primary mission of the business.

Examining administrative lead-timesRecognize that ‘non-value added’ does not equal ‘non-essential’While customers may only see value in processes that touch them (transforming the inputs into the finished product), this doesn’t mean non value-added steps are unimportant.Copyright © Kinaxis 2009. All rights reserved.

Recognize that ‘non-value added’ does not equal ‘non-essential’

While customers may only see value in processes that touch them (transforming the inputs into the finished product), this doesn’t mean non value-added steps are unimportant.

Examining administrative lead-timesDevelop processes based on reality, not the idealWe know that change is the only constant, and yet our processes treat change as the exception instead of the rule. It is critical that our processes account for the inevitable, and often quite significant, volatility of today’s business environment.Copyright © Kinaxis 2009. All rights reserved.

Develop processes based on reality, not the ideal

We know that change is the only constant, and yet our processes treat change as the exception instead of the rule.

It is critical that our processes account for the inevitable, and often quite significant, volatility of today’s business environment.

Administrative Process Improvement: Strategy ConsiderationsLeverage ITLook for opportunities to automate and streamline processes by reducing manual intervention.Create value, not trade-offs Simply reducing the cycle time for an administrative process without understanding the total impact may create a trade-off, rather than create true value for your business or customer.Treat change as the expected, not the exceptionDevelop flexible processes that account for constant change ― establish a capacity to proactively manage change.Copyright © Kinaxis 2009. All rights reserved.

Leverage IT

Look for opportunities to automate and streamline processes by reducing manual intervention.

Create value, not trade-offs

Simply reducing the cycle time for an administrative process without understanding the total impact may create a trade-off, rather than create true value for your business or customer.

Treat change as the expected, not the exception

Develop flexible processes that account for constant change ― establish a capacity to proactively manage change.

Download the white paper:Making the Case for Lean Process Lead-Timeswww.kinaxis.comcompany /resource center /white papers Copyright © Kinaxis 2009. All rights reserved

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