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Amway’s Lean Office Journey. West Michigan HDI October 10 th , 2012. Agenda. Welcome Jill Bierens – Manager, Global IT Service Desk Lean Office Overview Stephen Sweers – Manager, OPX Lean Office

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Amway’s Lean Office Journey

West Michigan HDI

October 10th, 2012


Agenda

  • WelcomeJill Bierens– Manager, Global IT Service Desk

    • Lean Office OverviewStephen Sweers – Manager, OPX Lean Office

    • Amway IT ResultsDavid Drake – Lean Leader, ITJill Bierens Daniel Uecker-Herman – Lead Service Desk Technician

  • Q&A

  • Optional Tour: IT Operations, ITAM, Lean Cell


  • About amway
    About Amway

    • Founded in 1959

    • Second largest direct-selling company in the world

      • Annual sales of more than $10 billion in 2011

      • More than 450 products

      • 80 countries and territories

      • 20,000 employees

      • Six million entrepreneurs selling Amway products around the world

      • More than 900 patents granted and more than 800 pending



    Amway s global service desk
    Amway’s Global Service Desk

    • Metrics

      • Nearly 6,000 customers in North America and SE Asia

      • Average 13,000 incoming contacts per month (all channels)

      • Average 5,000 calls per month

      • Live answer = 85%

      • First Contact Resolution = 75%

      • Eight Service Desk Technicians

      • Four User Management Technicians


    Amway s global service desk1
    Amway’s Global Service Desk

    • Current State

    • Strategy

      • Four regions

      • Follow the Sun

      • Standardized processes

    Ada HQ

    6:30am–7:30pm

    Malaysia

    7:00am-7:00pm

    Caller

    IT Operations

    Weekends & Holidays


    WHY LEAN OFFICE?

    • Identify and eliminate wasteful process steps in a systematic way

      • More than 60% of the cost of a product or serviceis attributable to administrative processes.

    • Quality and service improve

    • Turnaround time shortens

    • Costs go down and profits go up

    • The customer is ultimately delighted

    • Resources (people and money) become available to be redeployed to further grow the business


    Whipped

    Sheep

    Back

    Self

    Altar

    Kai

    zen

    change

    good

    (revolutionary)

    (sacrifice)

    KAIZEN DEFINED


    LEAN OFFICE ISSUES

    • Quality:How to improve it?

    • Cost:How to reduce it?

    • Delivery:How to ensure it?

    • Talent:How to develop it?


    ELIMINATE WASTE

    • The 8 Wastes

      • Defects

      • Over-production

      • Waiting

      • Not engaging people

      • Transportation

      • Inventories

      • Motion

      • Excess processing


    ELIMINATE WASTE

    • Unevenness

      • Can often be eliminated by managers through level scheduling and careful attention to the pace of work.

    • Overburdening

      • Workers by requiring them to operate at a higher pace, with more effort and for a longer period of time than appropriate workforce management allows (target utilization @ 85%).


    TRUE NORTH METRICS

    • Right 1st time Quality Improvement

    • Delivery/Lead Time/Flow Improvement

    • Cost/Productivity Improvement

    • Talent Development

    “These are a select few measures, and if you improve them each year, ‘good things’ will happen.”

    – George Koenigsaecker




    SUCCESS FACTORS

    • Factors for success:

      • Clear Business Case

      • Leadership Endorsement

      • Clear Roles & Responsibilities

      • Dedicated Internal Resources

      • Structured, Systematic Method

      • Simple, True North Metrics

      • Frequent Reviews


    DEPLOYMENT MODEL: PHASE 1“STABILITY”

    • What:

      • Improve Internal Process Workflows and Reliability

      • Standardize Work Processes

      • Improve Process Throughput Time

      • Reduce Clerical Errors (implement mistake-proofing techniques)

      • Establish “Lean Plans”

    • Where:

      • Transactional Business Processes (ex: Idea-to-Market, Procure-to-Pay, etc.)

      • Key Functional Areas (ex: Planning, Procurement, QA, R&D, IT, Sales, Finance)

    • Impact on:

      • Throughput Time Variation (Operational Lead Time Improvement)

      • Right 1st Time Quality Improvement


    LEAN OFFICE SPECIALIZATION: INSTABILITY

    Employees typically retain 80% of the process knowledge.

    OFFICE EMPLOYEES SPECIALIZATION

    Breadth of Knowledge

    • Specialized work

    • No level loading

    • Work duplication

    • No realization of waste


    Skills/Training Matrix

    LEAN OFFICE SPECIALIZATION: STABILITY

    OFFICE EMPLOYEES GENERALIST

    Shared Knowledge

    • Multi-Skilled

    • Multi-Process Handling

    • Level loaded @ 85% of Capacity


    LEAN LEADER STANDARD WORK

    • Assess efficiency of Functional & Cross-Functional business processes.

    • Develop Functional “Lean Plans” aligned with Enterprise Strategy.

    • Enable improvement by providing kaizen breakthrough method & support.

    • Create expectation for annual improvement in:

      • Right 1st Time Quality

      • Productivity (Cost)

      • Delivery (Lead Time)

      • Talent

    • Encourage active sharing & adoption of best practices.


    GETTING STARTED: ACTIVITY

    • What are the top 2 or 3 most costly outputs (products or services) your “lean office” makes and delivers to your customers? Or, what causes you the most pain? Brainstorm!

    • Select one output (product or service for your customer), assemble a team and together explore using the SIPOC Tool (Supplier/Input/Process/Output/Customer).

    • Plan your 3-5 Day Kaizen Event using your completed SIPOC as a guide (hint: you may want to include the voices of suppliers, processors, customers and “outside eyes” as well).

    • Execute the Kaizen Breakthrough Method…. again, again and again (5X)!



    KAIZEN BREAKTHROUGH METHOD

    • Pre-Event Planning

    • Event Execution

    Kaizen Sponsor Secured?

    Kaizen Team Leader assigned?

    Kaizen Target Area Selected/Scoped?

    Kaizen Dates & Times Scheduled?

    Kaizen Team Room Scheduled?

    Kaizen Team Members Assembled (Rule of 1/3’s, SIPOC)

    Kaizen Supplies Collected?

    Kaizen Pre-Work/Data Collected?

    Catering Scheduled?

    Kaizen Training Material Prepared?

    Management Report-Out Scheduled?

    Kaizen Team Trained, Ground Rules Established.

    Current State Condition Identified.

    Opportunities for Improvement Defined.

    Future State Improvements Implemented & New Process Standardized.

    Management Report-Out Created & Delivered.

    Adhere to the Improved Process, Continue to Improve & Retrain After Each Improvement.

    • Post-Event Monitoring

    Visual Controls are in place, Maintained & Continuously Improved.

    Standard Work Audits are Conducted, Economic Benefits calculated & Results Communicated.

    Weekly Kaizen Newspaper Accountability Meetings Conducted.


    Current State Process (7 Days)

    WASTE

    7 Days

    V/C 56 Minutes

    Kaizen

    Value-Creating Work

    WAITING

    2 Days

    V/C 10 Mins

    Waste

    (2 Days)

    KAIZEN BREAKTHROUGH METHOD: RESULTS

    75% savings!


    Lean it impact on amway
    Lean IT: Impact on Amway

    • Service Desk

    • Data Center

    • IT Asset Management

    • Operations

    • Voice Telecom

    • Release management

    • Application Development


    Service desk
    Service Desk

    • Corporate data stores

      • Average of 100 requests per month

      • Original process plagued with excessive active and wait times

      • Active time reduced from 45 minutes to 15 minutes

      • SME provides clear direction on users’ needs

      • Process to be leveraged globally


    Service desk1
    Service Desk

    • Granting Remote Access

      • Focused on providing correct access without hand-offs

      • Ensuring we meet PCI compliance requirements

      • Decision tree developed and training provided for SD staff

      • Standard work reduces training time

    • Returned capacity = 1,400* hours (Jan-Aug 2012)

      * Includes time savings in IT Security and Network Services


    What have we learned
    What Have We Learned?

    • New concept to IT

      • Lean is traditionally associated with manufacturing

      • Many of the things we do have a production flow to them

    • Balance between focusing on results vs. learning

    • Staff hesitation to act without management direction

      • Empowerment is critical

      • Innovation, learn by doing

    • Quantified improvements vs. observed improvements


    What have you learned
    What Have YOU Learned?



    Tours
    Tours

    • Service Desk

    • IT Operations

    • PC Lifecycle Lean Cell

      …Please gather in the lobby…

      David will be your guide


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