Make lean an innate way of thinking and increase purchase order compliancy


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Make lean an innate way of thinking and increase purchase order compliancy

  1. 1. Make Lean An Innate Way of Thinking and Increase PO Compliancy Lucy Wilson & Jason McGovern
  2. 2. Marks & Spencer - A Brief history…….. 1884 Michael Marks, a Russian born Polish refugee, opened a stall at Leeds Kirkgate Market. All items were sold for one penny, including nails, screws, soap, wooden spoons and luggage labels. 1928 The St Michael trademark was introduced as a guarantee of quality and value. 1954 Operation Simplification – a project to streamline internal processes in order to save paper and cut down on unnecessary administration– was launched. 1975 In 1975 M&S made its first step into Europe, opening a store on Boulevard Haussman in Paris. 1986 Our first edge of town store opened at the Metro Centre in Gateshead. 1999 Online shopping was launched on our website. 2003 Marks and Spencer Shared Services established 2007 Plan A launched - 100 point five-year ‘eco plan’ to address challenges in the key areas of climate change, waste, sustainable raw materials, fair partner and health
  3. 3. Marks and Spencer Shared Services Marks and Spencer Shared Services Ltd (MSSSL) Location: Salford Quays, Manchester 110 FTE Finance, 120 FTE HR 5 Teams 5 core process areas 6 Years old Manage: c£10bn revenues c£8bn payables c£3bn receivables Supports 65,000 employees and 600+ stores
  4. 4. Our Journey Creating Value with a Passion for Excellence July 2008 March 2008 New First year in business April 2007 SAP complete migrated SAP Go live 90% customer 100% satisfaction customer ERP platform satisfaction ratings December 2006 launched for ratings AP, AR, NMP 66% average New 79% and core KPI rating leadership average financial team £60m of KPI rating January 2003 transactions appointed annualised cashflow Further Finance Strategy set generation £30m- Shared Move from support £40m Services accounting annualised set up centre to cashflow Shared generation Services targeted begins
  5. 5. Why Lean in Marks and Spencer Shared Services? New Business Process efficiencies Change Business Foundation Programme
  6. 6. What is Lean? Lean is a philosophy focusing on reduction of waste to improve overall customer value. By eliminating waste, quality is improved, production time and costs are reduced. The goal of Lean is to accelerate the velocity of the process by reducing waste in all its forms. Lean is not cost reduction, its finding a better way to get the work done
  7. 7. What is Lean? “ Lean is simply creating an environment where you have the right amount of resources, where work is paced and content targeted according to customer demand. More importantly, Lean is having the ability to rapidly respond to a signal from the customer through a standardised process, which means it is predictable, controllable and sustainable ”
  8. 8. Lean Principles In their 1996 book ‘Lean Thinking’, Womack and Jones defined a set of five basic principles that characterise a lean enterprise. Value in customer eyes Identify all the steps Flow Customers pull value Pursue perfection
  9. 9. History of Lean Creating Value with a Passion for Excellence Self Sufficient Embedded .Embedded CPI culture within process CPI / Lean areas Discovery • Enthusiasm • Appropriate BAU Lean Project level of Automated Shared Identified investment Services Lean training • Enhanced Introduction Benefits toolkit CPI initiated realised CPI culture Early Years ERP Lean implementation Workshops CPI – Erratic non defined Idea generation Silo working Little inter department communication
  10. 10. Roll-out in Finance Shared Services Lean Training across management Blitz Kaizen workshop Roll out across Finance Shared Services – Teaser campaign – Project selection by management – Monthly workshops (cross functional) – Benefits tracker – Monthly updates cascaded – Governance process ensures return on investment CPI Implementation
  11. 11. Project Selection tool High Pure LEAN STARSReturn CPI Control Issues Low Low High Delivery Risk
  12. 12. Continuous Process Improvements “ CPI is the ongoing effort within FASS to incrementally improve how products & services are provided and how operations are conducted to ensure we maximise value and maintain control at all opportunities ”
  13. 13. CPI - Criteria Reduction in variation Removal of non-value add Improves Customer Satisfaction It reduces time / money / physical waste Increases quality of our product It enables us to improve activity measurement It is required for statutory reasons It enables the required level of control
  14. 14. Benefits from Lean in Finance Shared Services Cash Management Process KPI Reporting Process NMP Procurement Intercompany
  15. 15. PO Compliance – Our first Lean project ??No PO, No Pay removed non-value add activity Invoices scanned & recorded Invoices with a PO keyed into SAP No invoices parked No PO – invoice returned KPI’s monitor turnaround times Vendors were advised how to comply Go live: 55% compliant Six months: 90% compliant Impact on FTE is minimal
  16. 16. Key Learning’s?Wins Create a competitive atmosphere Size of potential benefits Cross functional teams Team buildingLearns Clear Goal and Objectives Not always a ‘Big Idea’ Don’t over commit Biggest bang for your buckChanges Continually reassess scope Pace of implementation
  17. 17. Make Lean An Innate Way of Thinking and Increase PO Compliancy Lucy Wilson & Jason McGovern