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© Operational Excellence Consulting. All rights reserved.
LEAN
OFFICE
Creating Value for Customers
© Operational Excellence Consulting. All rights reserved. 2
Learning Objectives
1. Understand the principles and key concepts of
Lean
2. Identify value and waste
3. Gain an overview of common Lean principles
and tools, and their applications
4. Apply 5S principles to improve workplace
organization and efficiency
5. Apply a simple problem solving process
Copyrights of all the pictures used in this presentation are held by their respective owners
© Operational Excellence Consulting. All rights reserved. 3
Outline
1. Introduction to Lean Office
2. Key Concepts of Lean Office
3. Overview of Lean Methods & Tools
4. Ways to develop “Kaizen Eyes”
5. Lean Office Roles
6. Sustaining a Lean Office
NOTE: As this is a PREVIEW, only selected
slides are shown. To download the complete
presentation, please visit:
http://www.oeconsulting.com.sg
© Operational Excellence Consulting. All rights reserved. 4
What is Lean?
• Value streams or processes
• Focused on improving process performance
• Clear view of end state
• Wide range of Lean techniques & tools
are available
• Learn-by-doing approach
• Culture of continuous improvement
• Lean is a management philosophy based
on the Toyota Production System (TPS)
• Eliminate everything that does not add value
(waste) in the customer’s eyes
Objective
Focus and
scope
Approach
and tools
© Operational Excellence Consulting. All rights reserved. 5
What Lean IS NOT
• Laying off employees by the bus load
• Only applies to manufacturing companies
• A cost reduction program
• Delivering less or working harder
• Just a set of “tools” like 5S, kaizen events, etc.
• Automation or implementing an IT system
• Another “extracurricular activities”
© Operational Excellence Consulting. All rights reserved. 6
What does Lean in a service environment
look like? (1/2)
Banks
•Mergers and
acquisitions
•Loans application
IT
•Outsourced
managed services
Application Common Issues Typical Solutions
•Differences in
business practices
•Loans approval
process
•Complicated tasks
•Unbalanced capacity
•Manpower utilization
•Process integration and
streamlining
•Fast track processing
for low-risk loans
•Segmenting complexity
•Pooling resources for
economies of scale
•Flexible manpower
systems
Telco
• Procurement
• Call centre
operations
•Cost-based and capex
management
•Customer service
•Inventory management
•Network sharing
•Channels efficiency
Source: Operational Excellence Consulting Research
© Operational Excellence Consulting. All rights reserved. 7
What is Waste?
• Consuming more resources than are necessary
to produce the goods, or service, that the
customer wants
• Pure Waste: Actions that could be stopped
without affecting the customer
• Incidental Waste: Actions that need to be done
based on how the current system operates but
do not add value
 Government Regulations/Policies, Audit requirements,
Facility Layout, Technology
© Operational Excellence Consulting. All rights reserved. 8
Work versus Waste
Value Add
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste
Focus here for
improvement
© Operational Excellence Consulting. All rights reserved.
“There is nothing so
useless as doing
efficiently that
which should not be
done at all.”
Peter Drucker
© Operational Excellence Consulting. All rights reserved. 10
20 minutes of waste a day…
• Find a way to remove
20 minutes of waste
from your daily work
routine
• This will add up to 2
weeks over a one year
period
© Operational Excellence Consulting. All rights reserved. 11
Eight Types of Office Waste
Over-production
Producing more than what
the customer needs
Inventory
Building and storing extra
services/products the
customer has not ordered
Transportation
Moving from one
place to another
Defects
Reprocessing, or
correcting work
Over-processing
Adding excess value
when the customer
does not require it
Motion
Extra physical/mental
motion that doesn’t add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Employees waiting for
another process or
equipment
Waste
© Operational Excellence Consulting. All rights reserved. 12
Examples of Value-Added Activities
• Entering orders
• Translating materials
• Creating codes
• Preparing drawings or artwork
• Assembling goods
• Shipping to customers
© Operational Excellence Consulting. All rights reserved. 13
Non-Value Added activities in office
environments
1. Checking
2. Signatures
3. Asking
4. Approving
5. Reviewing
6. Filing
7. Copying
8. Reporting
9. Monitoring
10. Rework
11. Transporting
12. Double or multiple
handling
13. Searching
14. Gathering
© Operational Excellence Consulting. All rights reserved.
“We must always
keep in mind that
the greatest waste
is the waste we
don’t see.”
Shigeo Shingo,
a Japanese industrial engineer and expert on the
Toyota Production System
© Operational Excellence Consulting. All rights reserved. 15
Lean Thinking Philosophy
Identify and eliminate all activities that are waste.
Focus on optimal flow throughout the process.
Focus on creating value for customers.
Current
State
Future
State
Identify
Waste “True North”
Value Added Time = Lead Time
Full of Waste,
Variation, and
Rigidity
Eliminate
Waste
© Operational Excellence Consulting. All rights reserved. 16
Lean Principles
1. Define value from the customer’s perspective and
provide what they want.
2. Identify the value stream or process for each product
or service and reduce or eliminate steps that do not
add value.
3. Align the value-added steps so they flow continuously.
4. Allow the level of customer demand to pull the
process, i.e., produce only what is ordered.
5. Pursue perfection through continuous improvement
Source: Adapted from Lean Thinking by James P. Womack and Daniel T. Jones
© Operational Excellence Consulting. All rights reserved. 17
Activities that do
not add value
Workload that is
not balanced
Overloading creates burden for the
team members or processes
Source: Toyota Motor Company
The 3 MU’s: Muda, Mura, Muri
© Operational Excellence Consulting. All rights reserved. 18
What is 5S?
Principles General Description
1S Sort
Remove what is not needed and keep
what is needed
2S Set in Order
Arrange essential items in order for
easy access
3S Shine
Keep things clean and tidy; no trash or
dirt in the workplace
4S Standardize
Establish standards and guidelines to
maintain a clean workplace
5S Sustain
Make 5S a habit and teach others to
adhere to established standards
© Operational Excellence Consulting. All rights reserved. 19
Office Desk – Before & After 5S
An office desk before and after conducting 5S Sort and Set In
Order. Clutter and unused items have been removed leaving
only what is needed.
Before After
© Operational Excellence Consulting. All rights reserved. 20
What is the purpose of 5S?
Immediately make problems visible
© Operational Excellence Consulting. All rights reserved. 21
5S your computer hard/shared drive
5S Principle Description
Sort • Check all your files and software, and get rid of any that
are unnecessary
Set In Order • Organize your files and optimize the use of file folders
• Keep in mind how often you need them and how much
time you need to store them
• Create specific shortcut icons for the most used files or
programs
Shine • Eliminate any files under deleted items, sent items and
the recycle bin
Standardize • Establish procedures for maintaining your computer 5S
system
Sustain • Include hard drives in 5S audits
• Focus on how people maintain files and program
organization, and the time they spend ding so
© Operational Excellence Consulting. All rights reserved. 22
Three Types of Visual Management
• Label to make it perfectly clear
where things belong and what
the procedures are
Visual
Displays
• Quantify the path to targets for
success
• Graphs and Pareto charts
Visual
Metrics
• Create an mistake-proofed
environment to promote easy
adherence to standards
Visual
Controls
© Operational Excellence Consulting. All rights reserved. 23
• Creates an end-to-end view of the system
• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system
Supplier/
Customer Management
Control
Customer
Work & Information Flow
Information flow
Value stream mapping provides an overview
of the end-to-end administrative process
© Operational Excellence Consulting. All rights reserved. 24
Standard Work
Make it the only way:
• No alternatives left
Warning:
• Warns for abnormalities
Showing:
• One-point-lesson
• Visual information
Reading:
• Manuals
• Procedures
• instructions
Fail-safe
Visual
control tools
Visual
aids
Procedures, Instructions
and Manuals
The Compliance Pyramid
© Operational Excellence Consulting. All rights reserved. 25
Heijunka (Load Leveling)
Level out the workload - Work like
the tortoise, not the hare
© Operational Excellence Consulting. All rights reserved. 26
The source of good quality lies in
Prevention. . . . through:
 PRODUCT DESIGN
 PROCESSES
 MATERIALS
 PEOPLE
. . . Not in Inspection or Correction
Make It Right First Time, Every Time
Quality At Source
© Operational Excellence Consulting. All rights reserved. 27
Dealing with Root Causes
• Solutions must deal with
root causes, not
symptoms
• Make use of the fishbone
diagram
• Ask “Why?” five times to
get to the root cause
The system for quality is prevention.
© Operational Excellence Consulting. All rights reserved. 28
Poka Yoke (Mistake-proofing)
• Mistake-proofing refers
to techniques that make
it impossible to make
mistakes
• Also known as Poka
Yoke in Japanese
• Mistake-proofing helps
people and processes
work right the first time
© Operational Excellence Consulting. All rights reserved. 29
Kaizen Event
• Rapid, focused application of Lean to reduce waste to
improve cost, quality, delivery, speed, flexibility and
responsiveness to customer needs
• 3-5 day dedicated event
• Clear objective and scope
• Continuous small
improvements
• Changes are
implemented quickly
• Everyone gets involved
Source: "The Idea Generator” by Norman Bodek
© Operational Excellence Consulting. All rights reserved. 30
Example: Lean Kaizen Summary
Project type: 5S Area: Sales & Marketing Office Team Leader: John Smith
Before After
Reasons project chosen:
• Difficult to move around a cluttered
office
• Difficult to find information and
supplies
Tools used on project:
• Cleaning equipment and tools
• 5S principles
Results:
• Unwanted materials were discarded
• Less waste – e.g. transportation,
motion, waiting, etc.
• Improved staff morale
Next steps:
• Conduct monthly 5S audits
• 5S for other common areas
© Operational Excellence Consulting. All rights reserved. 31
A Simple Lean Implementation Roadmap
Create
Awareness
Build
Capability
Operations
Management
&
Improvement
Lean Training
Lean
Leadership
Training
Build Lean
Activity Board
Kaizen #1:
5S
Kaizen #2:
Waste
Elimination
Value Stream
Mapping for Key
Processes
Train-the-
Trainer
Training
Information Sessions
for Whole Organization
Senior
Management
Awareness
Kaizen #3:
Standardization
Month 1
Lean Methods &
Tools Training
Month 3Month 2
Daily Management Meeting
Lean Update in
Monthly
Newsletter &
Intranet
32© Operational Excellence Consulting. All rights reserved. 32
Understanding Responses to Change
Critical Mass Direction of Enrollment
Middle
Enrollers
Late
Enrollers
Early
Enrollers
Initiators
Slugs
Die
Hards
5% 15% 30% 30% 15% 5%
Source: The Atlanta Consulting Group, Inc.
Enrollment Curve
It is key to understand and leverage is the rate and pace at which
people adapt to change
It is key to understand and leverage is the rate and pace at which
people adapt to change
Enrollment Curve
Start by focusing
time and effort on
the middle/late
enrollers
© Operational Excellence Consulting. All rights reserved. 33
Sustaining a Lean Culture
• Management commitment
• Alignment to vision and mission
• Availability of resources
• Address “what is in it for me”
• Success measures and KPIs
• Management review
• Rewards and recognition
© Operational Excellence Consulting. All rights reserved.
“Whether you
think you can,
or you think
you can’t,
you’re right.”
Henry Ford
© Operational Excellence Consulting. All rights reserved.
www.oeconsulting.com.sg
END OF PREVIEW
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Lean Office by Operational Excellence Consulting

  • 1. © Operational Excellence Consulting. All rights reserved. LEAN OFFICE Creating Value for Customers
  • 2. © Operational Excellence Consulting. All rights reserved. 2 Learning Objectives 1. Understand the principles and key concepts of Lean 2. Identify value and waste 3. Gain an overview of common Lean principles and tools, and their applications 4. Apply 5S principles to improve workplace organization and efficiency 5. Apply a simple problem solving process Copyrights of all the pictures used in this presentation are held by their respective owners
  • 3. © Operational Excellence Consulting. All rights reserved. 3 Outline 1. Introduction to Lean Office 2. Key Concepts of Lean Office 3. Overview of Lean Methods & Tools 4. Ways to develop “Kaizen Eyes” 5. Lean Office Roles 6. Sustaining a Lean Office NOTE: As this is a PREVIEW, only selected slides are shown. To download the complete presentation, please visit: http://www.oeconsulting.com.sg
  • 4. © Operational Excellence Consulting. All rights reserved. 4 What is Lean? • Value streams or processes • Focused on improving process performance • Clear view of end state • Wide range of Lean techniques & tools are available • Learn-by-doing approach • Culture of continuous improvement • Lean is a management philosophy based on the Toyota Production System (TPS) • Eliminate everything that does not add value (waste) in the customer’s eyes Objective Focus and scope Approach and tools
  • 5. © Operational Excellence Consulting. All rights reserved. 5 What Lean IS NOT • Laying off employees by the bus load • Only applies to manufacturing companies • A cost reduction program • Delivering less or working harder • Just a set of “tools” like 5S, kaizen events, etc. • Automation or implementing an IT system • Another “extracurricular activities”
  • 6. © Operational Excellence Consulting. All rights reserved. 6 What does Lean in a service environment look like? (1/2) Banks •Mergers and acquisitions •Loans application IT •Outsourced managed services Application Common Issues Typical Solutions •Differences in business practices •Loans approval process •Complicated tasks •Unbalanced capacity •Manpower utilization •Process integration and streamlining •Fast track processing for low-risk loans •Segmenting complexity •Pooling resources for economies of scale •Flexible manpower systems Telco • Procurement • Call centre operations •Cost-based and capex management •Customer service •Inventory management •Network sharing •Channels efficiency Source: Operational Excellence Consulting Research
  • 7. © Operational Excellence Consulting. All rights reserved. 7 What is Waste? • Consuming more resources than are necessary to produce the goods, or service, that the customer wants • Pure Waste: Actions that could be stopped without affecting the customer • Incidental Waste: Actions that need to be done based on how the current system operates but do not add value  Government Regulations/Policies, Audit requirements, Facility Layout, Technology
  • 8. © Operational Excellence Consulting. All rights reserved. 8 Work versus Waste Value Add Non-Value Add: Incidental Waste Non-Value Add: Pure Waste Focus here for improvement
  • 9. © Operational Excellence Consulting. All rights reserved. “There is nothing so useless as doing efficiently that which should not be done at all.” Peter Drucker
  • 10. © Operational Excellence Consulting. All rights reserved. 10 20 minutes of waste a day… • Find a way to remove 20 minutes of waste from your daily work routine • This will add up to 2 weeks over a one year period
  • 11. © Operational Excellence Consulting. All rights reserved. 11 Eight Types of Office Waste Over-production Producing more than what the customer needs Inventory Building and storing extra services/products the customer has not ordered Transportation Moving from one place to another Defects Reprocessing, or correcting work Over-processing Adding excess value when the customer does not require it Motion Extra physical/mental motion that doesn’t add value Intellect Not using employees full intellectual contribution Waiting Employees waiting for another process or equipment Waste
  • 12. © Operational Excellence Consulting. All rights reserved. 12 Examples of Value-Added Activities • Entering orders • Translating materials • Creating codes • Preparing drawings or artwork • Assembling goods • Shipping to customers
  • 13. © Operational Excellence Consulting. All rights reserved. 13 Non-Value Added activities in office environments 1. Checking 2. Signatures 3. Asking 4. Approving 5. Reviewing 6. Filing 7. Copying 8. Reporting 9. Monitoring 10. Rework 11. Transporting 12. Double or multiple handling 13. Searching 14. Gathering
  • 14. © Operational Excellence Consulting. All rights reserved. “We must always keep in mind that the greatest waste is the waste we don’t see.” Shigeo Shingo, a Japanese industrial engineer and expert on the Toyota Production System
  • 15. © Operational Excellence Consulting. All rights reserved. 15 Lean Thinking Philosophy Identify and eliminate all activities that are waste. Focus on optimal flow throughout the process. Focus on creating value for customers. Current State Future State Identify Waste “True North” Value Added Time = Lead Time Full of Waste, Variation, and Rigidity Eliminate Waste
  • 16. © Operational Excellence Consulting. All rights reserved. 16 Lean Principles 1. Define value from the customer’s perspective and provide what they want. 2. Identify the value stream or process for each product or service and reduce or eliminate steps that do not add value. 3. Align the value-added steps so they flow continuously. 4. Allow the level of customer demand to pull the process, i.e., produce only what is ordered. 5. Pursue perfection through continuous improvement Source: Adapted from Lean Thinking by James P. Womack and Daniel T. Jones
  • 17. © Operational Excellence Consulting. All rights reserved. 17 Activities that do not add value Workload that is not balanced Overloading creates burden for the team members or processes Source: Toyota Motor Company The 3 MU’s: Muda, Mura, Muri
  • 18. © Operational Excellence Consulting. All rights reserved. 18 What is 5S? Principles General Description 1S Sort Remove what is not needed and keep what is needed 2S Set in Order Arrange essential items in order for easy access 3S Shine Keep things clean and tidy; no trash or dirt in the workplace 4S Standardize Establish standards and guidelines to maintain a clean workplace 5S Sustain Make 5S a habit and teach others to adhere to established standards
  • 19. © Operational Excellence Consulting. All rights reserved. 19 Office Desk – Before & After 5S An office desk before and after conducting 5S Sort and Set In Order. Clutter and unused items have been removed leaving only what is needed. Before After
  • 20. © Operational Excellence Consulting. All rights reserved. 20 What is the purpose of 5S? Immediately make problems visible
  • 21. © Operational Excellence Consulting. All rights reserved. 21 5S your computer hard/shared drive 5S Principle Description Sort • Check all your files and software, and get rid of any that are unnecessary Set In Order • Organize your files and optimize the use of file folders • Keep in mind how often you need them and how much time you need to store them • Create specific shortcut icons for the most used files or programs Shine • Eliminate any files under deleted items, sent items and the recycle bin Standardize • Establish procedures for maintaining your computer 5S system Sustain • Include hard drives in 5S audits • Focus on how people maintain files and program organization, and the time they spend ding so
  • 22. © Operational Excellence Consulting. All rights reserved. 22 Three Types of Visual Management • Label to make it perfectly clear where things belong and what the procedures are Visual Displays • Quantify the path to targets for success • Graphs and Pareto charts Visual Metrics • Create an mistake-proofed environment to promote easy adherence to standards Visual Controls
  • 23. © Operational Excellence Consulting. All rights reserved. 23 • Creates an end-to-end view of the system • Demonstrates interaction between material/work and information flow • Provides a common visual language for understanding a complex system Supplier/ Customer Management Control Customer Work & Information Flow Information flow Value stream mapping provides an overview of the end-to-end administrative process
  • 24. © Operational Excellence Consulting. All rights reserved. 24 Standard Work Make it the only way: • No alternatives left Warning: • Warns for abnormalities Showing: • One-point-lesson • Visual information Reading: • Manuals • Procedures • instructions Fail-safe Visual control tools Visual aids Procedures, Instructions and Manuals The Compliance Pyramid
  • 25. © Operational Excellence Consulting. All rights reserved. 25 Heijunka (Load Leveling) Level out the workload - Work like the tortoise, not the hare
  • 26. © Operational Excellence Consulting. All rights reserved. 26 The source of good quality lies in Prevention. . . . through:  PRODUCT DESIGN  PROCESSES  MATERIALS  PEOPLE . . . Not in Inspection or Correction Make It Right First Time, Every Time Quality At Source
  • 27. © Operational Excellence Consulting. All rights reserved. 27 Dealing with Root Causes • Solutions must deal with root causes, not symptoms • Make use of the fishbone diagram • Ask “Why?” five times to get to the root cause The system for quality is prevention.
  • 28. © Operational Excellence Consulting. All rights reserved. 28 Poka Yoke (Mistake-proofing) • Mistake-proofing refers to techniques that make it impossible to make mistakes • Also known as Poka Yoke in Japanese • Mistake-proofing helps people and processes work right the first time
  • 29. © Operational Excellence Consulting. All rights reserved. 29 Kaizen Event • Rapid, focused application of Lean to reduce waste to improve cost, quality, delivery, speed, flexibility and responsiveness to customer needs • 3-5 day dedicated event • Clear objective and scope • Continuous small improvements • Changes are implemented quickly • Everyone gets involved Source: "The Idea Generator” by Norman Bodek
  • 30. © Operational Excellence Consulting. All rights reserved. 30 Example: Lean Kaizen Summary Project type: 5S Area: Sales & Marketing Office Team Leader: John Smith Before After Reasons project chosen: • Difficult to move around a cluttered office • Difficult to find information and supplies Tools used on project: • Cleaning equipment and tools • 5S principles Results: • Unwanted materials were discarded • Less waste – e.g. transportation, motion, waiting, etc. • Improved staff morale Next steps: • Conduct monthly 5S audits • 5S for other common areas
  • 31. © Operational Excellence Consulting. All rights reserved. 31 A Simple Lean Implementation Roadmap Create Awareness Build Capability Operations Management & Improvement Lean Training Lean Leadership Training Build Lean Activity Board Kaizen #1: 5S Kaizen #2: Waste Elimination Value Stream Mapping for Key Processes Train-the- Trainer Training Information Sessions for Whole Organization Senior Management Awareness Kaizen #3: Standardization Month 1 Lean Methods & Tools Training Month 3Month 2 Daily Management Meeting Lean Update in Monthly Newsletter & Intranet
  • 32. 32© Operational Excellence Consulting. All rights reserved. 32 Understanding Responses to Change Critical Mass Direction of Enrollment Middle Enrollers Late Enrollers Early Enrollers Initiators Slugs Die Hards 5% 15% 30% 30% 15% 5% Source: The Atlanta Consulting Group, Inc. Enrollment Curve It is key to understand and leverage is the rate and pace at which people adapt to change It is key to understand and leverage is the rate and pace at which people adapt to change Enrollment Curve Start by focusing time and effort on the middle/late enrollers
  • 33. © Operational Excellence Consulting. All rights reserved. 33 Sustaining a Lean Culture • Management commitment • Alignment to vision and mission • Availability of resources • Address “what is in it for me” • Success measures and KPIs • Management review • Rewards and recognition
  • 34. © Operational Excellence Consulting. All rights reserved. “Whether you think you can, or you think you can’t, you’re right.” Henry Ford
  • 35. © Operational Excellence Consulting. All rights reserved. www.oeconsulting.com.sg END OF PREVIEW To download this complete presentation, please visit: