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Adopting a Lean Approach to Improve Business Processes: A Case Report

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This talk presents a case report about a business process improvement initiative implemented using a Lean approach. The talk introduces briefly the Lean concepts before describing how value stream mapping was used to improve an "Order to Cash" process.

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Adopting a Lean Approach to Improve Business Processes: A Case Report

  1. 1. Adopting a Lean Approach to Improve Business Processes: A Case Report Karim Riad MAZOUNI Business Consulting karim.mazouni@elca.ch Geneva, June 3rd, 2016
  2. 2. ■ Founded in 1968 as Electro-Calcul for monitoring the Grande Dixence dam ■ Employees Over 700 employees, mostly highly skilled (IT) professionals with university degrees ■ Offices Lausanne (headquarters), Zurich, Geneva, Bern, Madrid, Paris, Ho Chi Minh City (Vietnam) ■ Turnover CHF 107,1 million in 2015 (+5.2% growth) ■ Quality Standards ISO 9001 (since 1993), ISO 14001 (since 2011), CMMI level 3 (since 2007) ■ Project Experience > 1‘000 customer projects in ten years ■ Awards ABOUT ELCA | 03.06.2016 | 2Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 ELCA is one of the biggest independent Swiss IT solution providers in Switzerlandʼs and a leader in the fields of software development, system integration, business consulting and application management.
  3. 3. linkedin.com/in/krmazouni ABOUT ME | 03.06.2016 |Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 3 1991 1998 2000 2008 2014 2015
  4. 4. ABOUT YOU | 03.06.2016 | 4Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 LeanVSM Toyoda Kanban Gemba Yokoten Ohno Kaizen
  5. 5. GOALS OF THIS TALK ■ Raise awareness ■ Share experience ■ Yokoten !!! | 03.06.2016 | 5Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 https://creativecommons.org/licenses/by-nd/2.0/
  6. 6. AGENDA Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 • Lean Thinking • Value Stream Mapping • Case Report • Lessons Learned 6| 03.06.2016 |
  7. 7. 14 PRINCIPLES  Long-Term  Flow  Pull  Less Variability & Overburden  Stop & Fix  Master Norms  Simple Visual Management  Good Technology  Leader-Teachers from Within  Develop Exceptional People  Help Partners to Be Lean  Go See  Consensus  Reflection & Kaizen PRODUCT DEVELOPMENT  Long-Term Great Engineers  Manager-Teacher  Cadence  Cross-Functional  Team Room  Entrepreneurial Product Manager  Set-based Concurrent Development  Create More Knowledge THE LEAN HOUSE | 03.06.2016 | 7Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 based on “Scaling Lean & Agile Development” by Craig LARMAN & Bas VODDE FOUNDATION  Management applies and teaches lean thinking  Management bases decisions on this long-term philosophy RESPECT FOR PEOPLE  Respect your Customer  Develop People, Build Products  No Wasteful Work  Teams Improve Their Practices  Build Stable Partners  Develop Teams CONTINUOUS IMPROVEMENT  Go See  Kaizen - Spread Knowledge - Small, Relentless - Retrospectives - 5 Whys - Eyes for Waste  Perfection Challenge  Work Toward Flow GOAL  Sustainable Shortest Lead Time  Best Quality and Value  Most Customer Delight  Lowest Cost  High Morale  Safety
  8. 8. AGENDA Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 • Lean Thinking • Value Stream Mapping • Case Report • Lessons Learned 8| 03.06.2016 |
  9. 9. APPROACHES TO PROCESS IMPROVEMENT | 03.06.2016 | 9Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 © Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation by Karen Martin; Mike Osterling - McGraw-Hill, 2013  White box  Internal focus  Black box  Customer focus
  10. 10. VALUE STREAM ■ “A value stream is the sequence of activities required to design, produce, and deliver a good or service to a customer, and it includes the dual flows of information and material.” ■ A value stream map is a highly visual storyboard of how work progresses  Comes from “material and information flows” a visual mapping technique used at Toyota  At the core of the Lean thinking | 03.06.2016 | 10Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  11. 11. | 03.06.2016 | 11Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 © Value Stream Analysis: Beyond the Mechanics - Part 2 (Mapping Execution) by Karen Martin; http://www.ksmartin.com/webinars/ PROCESS TIME VS LEAD TIME
  12. 12. TYPES OF PROCESS TIME | 03.06.2016 | 12Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 © Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation by Karen Martin; Mike Osterling - McGraw-Hill, 2013
  13. 13. MEASURING QUALITY UPSTREAM ■ Percent Complete and Accurate (%C&A)  % of the time work delivered is “usable as is” by the next in chain  usable as is => no need to CAC (Correct, Add, Clarify)  Assesses the quality upstream ■ Example:  I am at the back office, my job is to fulfill customer’s orders  I receive customer’s orders from the front office  If 30% of the time I have to CAC, I assess the front office quality as 70% | 03.06.2016 | 13Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  14. 14. 1ST WALK: IDENTIFY PROCESS BLOCKS | 03.06.2016 | 14Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 © Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation by Karen Martin; Mike Osterling - McGraw-Hill, 2013
  15. 15. 2ND WALK : MEASURE FLOW | 03.06.2016 | 15Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 © Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation by Karen Martin; Mike Osterling - McGraw-Hill, 2013
  16. 16. 2ND WALK : MAPPING TO IT SYSTEMS & APPLICATIONS | 03.06.2016 | 16Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 © Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation by Karen Martin; Mike Osterling - McGraw-Hill, 2013
  17. 17. 2ND WALK : UNDERSTAND BARRIERS TO FLOW | 03.06.2016 | 17Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 © Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation by Karen Martin; Mike Osterling - McGraw-Hill, 2013
  18. 18. COMPLETE VALUE STREAM MAP | 03.06.2016 | 18Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 © Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation by Karen Martin; Mike Osterling - McGraw-Hill, 2013
  19. 19. AGENDA Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 • Lean Thinking • Value Stream Mapping • Case Report • Lessons Learned 19| 03.06.2016 |
  20. 20. CONTINUOUS IMPROVEMENT | 03.06.2016 | 20Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 © Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation by Karen Martin; Mike Osterling - McGraw-Hill, 2013
  21. 21. IMPROVE “ORDER TO CASH” PROCESS FOR A SERVICE COMPANY ■ The Service Company provides services to its customers by sending workers to customers’ premises ■ The Service Company needs to improve its “Order to Cash” (O2C) process in order to:  shorten the lead time  improve accuracy  improve efficiency | 03.06.2016 | 21Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  22. 22. ESTIMATED PLANNING & EFFORT: 30 MAN-DAYS DURING 3 MONTHS | 03.06.2016 | 22Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 Initiate Examine Envision Recommend Finalize s23 01.06.2015 s26 22.06.2015 s28 06.07.2015 s37 07.09.2015 15 M-D Kick-Off Project Status Project Status Closing  Current State  Future state  Roadmap s35 24.08.2015 Project Status  Executive Summary  Planning s24 08.06.2015 5 M-D 5 M-D 3 M-D2 M-D Project Status EFFORT DELIVERABLES
  23. 23. INTERVIEW GOALS ■ Understand how the O2C process actually works in each region ■ Feel the atmosphere in the field ■ See the IT tools in action ■ Gather improvement ideas | 03.06.2016 | 23Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  24. 24. INTERVIEW SYNOPSIS ■ Key Questions  What is your vision of the «Order to Cash» (O2C) process ?  What role do you play at each step of the process ?  What tools do yo use ?  What problems do you encounter ?  What solutions do you see to these problems ?  How does the process perform ? (Process Time, Lead Time, %C&A) ■ Setup  1 hour discussion and interactive post-it board  Short demos of the tools that you use | 03.06.2016 | 24Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  25. 25. LAU — SALES SUPPORT: INTERVIEW BOARD | 03.06.2016 | 25Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  26. 26. FINDING TYPES | 03.06.2016 | 26Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 ICON MEANING  • Good practice  • Pain point ? • Open point ! • Improvement idea  • Worth to mention
  27. 27. LAU — SALES SUPPORT: KEY POINTS | 03.06.2016 | 27Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 ID TYPE DESCRIPTION LAU-001  • Offer data from the “Fiche Projet” is entered multiple times in several documents (Pipeline, Reporting). • Sales Support does not have access to PCE. • In parallel, Planning enters the same data in PCE. LAU-002  • Sales Support cannot know which offers/orders are actually planned (10% of offers bypass Sales Support). LAU-003  • An offer can be done in 15 mn and sent after about 48 h. • The signature process for an offer can take up to 3 days. LAU-004 ! • If Accounting would have access to Reporting it could monitor offers/orders. LAU-005  • “Fiche Projet” data is generally good (80%).
  28. 28. INTERVIEW HIGHLIGHTS ■ People  Cooperative  HAPPY to be involved  Engaged ■ Processes & Tools  Processes are complicated  Tools are not reliable  Each region found its own path to operate ■ Organization  Put back the focus on customers AND employees  Support functions MUST develop a culture of service  Organization structure and roles should be clarified AND communicated | 03.06.2016 | 28Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  29. 29. MAIN BARRIERS TO FLOW | 03.06.2016 | 29Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 DESCRIPTION RELATED FINDING IDS • Offer/order data is entered multiple times in several tools. • LAU-001, GVA-001, GVA-006 • Offer/order data must be approved at multiple levels. • LAU-003, GVA-004, GVA-018, • ZRH-003, BSL-003, BRN-002, BRN-003 • Customer address checks are time consuming. • LAU-006, LAU-010, LAU-017, GVA-013, ZRH-010, BSL-004 • HMY-related issues hinder productivity. • LAU-008, LAU-013, GVA-011, ZRH-008 • PCE-related issues hinder productivity. • LAU-014, GVA-020, ZRH-002, ZRH-009, ZRH-015, BRN-004, BRN-014, PCE-001 • Pre-planning is done in separate tools and re-entered in HMY. • LAU-009, BRN-005, BRN-009 Barriers to flow are issues which slow down the O2C process. Each barrier to flow relates to findings described in the next slides.
  30. 30. VALUE STREAM MAPPING WORKSHOP | 03.06.2016 | 30Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  31. 31. VALUE STREAM MAPPING WORKSHOP | 03.06.2016 | 31Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  32. 32. FUTURE O2C PROCESS: KEY DESIGN PRINCIPLES (1/2) ■ Minimize Multiple Inputs  Data is entered only once in one tool ■ Standard Documents  All areas use standard document templates (offers, order confirmations)  PCE use these templates to automatically generate the documents => no more manual editing for simple offers ■ Simplified Signature  The new signature policy enforces delegation and enables quicker feedback to customers | 03.06.2016 | 32Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  33. 33. FUTURE O2C PROCESS: KEY DESIGN PRINCIPLES (2/2) ■ Accounting Approval < 4 Hours  Accounting approves all offers and all new customers in less than 4 hours ■ Unique Planning Tool  All pre-planning and planning activities use a unique tool (PPS) ■ Unique Approval for Monthly Invoices  Branch Managers only approve the delivered service hours => no more approval of invoices | 03.06.2016 | 33Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  34. 34. FUTURE O2C PROCESS: ZOOM I | 03.06.2016 | 34Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 Zoom I
  35. 35. ZOOM I. DIRECT ORDER FROM AN EXISTING CUSTOMER | 03.06.2016 | 35Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  36. 36. STEP A.2.1. «TAKE ORDER» ■ A customer order can reach CUSTOMER via several channels  E-mail  Phone  Alarm Partner’s tools ■ Several roles can take orders  Branch Manager (BM)  Sales Support  Pre-Planning  Planning ■ BM is responsible of the content of the Project Form and the Calculation Sheet  The Project Form and Calculation Sheet are standard documents used in all areas | 03.06.2016 | 36Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  37. 37. TRANSFORMATION PROJECTS | 03.06.2016 | 37Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  38. 38. ROADMAP WORKSHOP | 03.06.2016 | 38Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 Organisation Stream Training Stream IT Stream
  39. 39. ROADMAP: SUMMARY | 03.06.2016 | 39Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 Organisation Stream Training Stream IT Stream 2015-Q4 2016-Q1 2016-Q2 2016-Q3 2016-Q4 DEFINE ROLES (ORG-1) DEFINE DOCUMENTS (IT-1) ALIGN ORG. (ORG-2) IMPROVE HR PROCESSES (ORG-3) PCE ORDER FORM (IT-2) GENERATE DOCUMENTS (IT-1) DO O2C TRAINING (TRN-1) REVIEW PCE PERMISSIONS (IT-3) PCE USER LICENSES (IT-4) DEFINE PCE TRAINING (TRN-2) DO PCE TRAINING (TRN-2) ADJUST PCE PERMISSIONS (IT-3) SANITIZE CUSTOMER DB (IT-5)
  40. 40. AGENDA Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016 • Lean Thinking • Value Stream Mapping • Case Report • Lessons Learned 40| 03.06.2016 |
  41. 41. ■ Changing corporate culture is a long process ■ It is essential (but not easy) to convince the whole management team ■ “Go See” is really a powerful tool  I wish I could actually do it with the workgroup ■ “Forcing” people to collaborate in workshops is a game changer | 03.06.2016 | 41Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
  42. 42. RECOMMENDED READING | 03.06.2016 | 42Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016

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