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Muda in service industries

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Why so many systems & handoffs – vertical / horizontal ??

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Muda in service industries

  1. 1. Muda in Service Industries“Why so many systems & handoffs – vertical / horizontal ??” Anand Subramaniam
  2. 2. “Why waste time learning, when ignorance is instantaneous? ” - Bill Watterson 2
  3. 3. Increase Velocity by Waste Elimination Speed Flexibility = + Cost 3
  4. 4. Why Eliminate Waste ? Don’t throw money away $$ Keep customers– cheaper to retain than to acquire To avoid high operating and production costs that are ultimately passed on to the customer To maximise opportunity to have a significant financial impact on the business 4
  5. 5. Service Waste - NVA 1. Information 2. Energy and Water 3. Defecting customers 4. Untapped Human Potential 5. Materials96% Non Value Add 6. Customer Time 7. Service and Office 8. Inappropriate Systems 5
  6. 6. Types of Service Waste1. Information 5. Materials2. Energy and Water 6. Customer Time3. Defecting customers 7. Service and Office4. Untapped Human 8. Inappropriate Potential Systems 6
  7. 7. # 1 - Information Should not take very much time Should not require double checking Figuring out what to do and when to do it 7
  8. 8. # 2 - Energy and Water Fixing leaks Shutting down the machine Turning off a dripping faucet Shutting off unnecessary lighting 8
  9. 9. # 3 - Defecting Customers Loss of existing customers resulting from:  High costs  Poor quality  Poor service  Late deliveries 9
  10. 10. # 4 - Untapped Human Potential Create / develop thinking people The power of using the thoughts of all employees; not just managers 10
  11. 11. # 5 - Materials Recovery, remanufacturing, and recycling Conserving materials during design, manufacture, customer usage, and more 11
  12. 12. # 6 - Customer Time Forced to wait in value-adding services Customer inconvenience: waiting for a delivery or traveling for a service not offered locally 12
  13. 13. # 7 - Service and Office Wasted food  Excess emails Copies in triplicate  Excess or more !! photocopying Unnecessary  Overly fancy meetings presentations 13
  14. 14. # 8 - Inappropriate Systems Record keeping Remove waste before automating anything Include manual as well as computerised systems 14
  15. 15. If the above waste are ignored…. Higher operating costs Higher production costs These costs will eventually be passed on to the customers….and You loose them to your competition 15
  16. 16. How can this waste be removed ? Start with TOC, SDCA and then to PDCA Solved through “Lean Thinking” “Lean Thinking” = elimination of all forms of waste from an operation Utilise = Lean, Kaizen, JIT, Jidoka and 5S 16
  17. 17. Where does one start ? Theory of Constraints (TOC)  There is a single point in any process operating at 100% capacity  Making improvements anywhere else will not improve overall flow  Thus, start at the bottleneck 17
  18. 18. “Computers may save time but they sure waste a lot of paper. About 98 percent of everything printed out by a computer is garbage that no one ever reads.” - Andy Rooney 18
  19. 19. Good Luckhttp://www.linkedin.com/in/anandsubramaniam 19

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