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Lean Office & Business Processes Not Just for Manufacturing. Michelle Manary & Deb Harcus. Manary Harcus Consulting Corp. Agenda. Organizational Effectiveness & Lean What is Lean & how does it work? Lean Office Tools & Terminology Success Strategies Role(s) of HR in Lean Initiatives
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Michelle Manary & Deb Harcus
Manary Harcus Consulting Corp
Source: Queens University
Lean applies to office and administrative environments
In Service industries, there are 8 types of waste
Eliminating waste results in:
Shorter lead times
Higher return on assets
Six Sigma is a system focused on the elimination of defects.
What is Lean?
Value Stream Mapping
Pull vs Push
Some Lean Office Tools
The Language of Lean
Pull vs Push
Create continuous flow to bring problems to the surface
Level the workload (Heijunka)
Build a culture of stopping to fix problems
Use visual controls
Use reliable, thoroughly tested technology that serves your people and processes
Grow leaders who thoroughly understand the work, and can teach it to others
Respect your extended network by helping them improve
Go and see for yourself (get in the gemba)
Make decisions slowly, by consensus and implement rapidly
Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen)
Strategies for Success with Lean
Source: The Toyota Way, Liker 2004
Review/revise HR strategy to support Business strategy
Develop Managers who are Lean Facilitators
Redefine Jobs to support Value Stream Manager role
Various Role(s) of HR in Lean Initiatives
Backlog in work queues
8 Service Industry Wastes
Sort– What is not needed. Sort through, then sort out.
Set in Order – What must be kept, make it visible and self explanatory.
Shine – everything that remains.
Standardize – Set standards for the first 3S’s
Sustain– Requires discipline, stick to the rules and make them a habit
5S is not free, but it does have accuracy and efficiency benefits
Defines the practical limits of your mapping activity (scope)
Ensures you gather all the information you’ll need
Identifies the processes (which may have sub-processes)
Captures the voice of the customer.
New Employment Process – SIPOC Map
3 states exist: Current, Perceived, Future
The only way to ensure you capture the true current state is to: walk the process
Current state map
Future state map
Value Stream Mapping
Risk of not mapping the current state is that you have no baseline or justification for making changes.
Electronic Information Flow
Material (Paper) Movement
Identify main processes to deliver service
Start with customer and work backwards
Collect data on main processes (attributes/metrics)
Perform value stream walkthrough and fill in the data boxes, including “work-in-process”
Identify process boxes where flow stops and batch or queue occurs
In the office, inventory is information in a queue (paper or electronic)
Establish how each process knows what to process next (information flow)
Can be formal or informal; how is work prioritized?
Calculate lead time vs process time
Calculate % accurate & complete
Calculate value add
Map Current State
Insurance Claim Processing
Value Stream Metrics - Process Time (P/T): 75 min
Lead Time (L/T): 26-39 days
% Complete & Accurate (%C/A): 29%
Set up time (eg: between computer systems)
Lead time/turnaround time (LT)
Typical batch size or frequency
% Complete and Accurate (%C&A)
Number of people involved
Downtime (eg: information systems)
Inventory – queues of information (eg: electronic, paper)
Team needs to decide which attributes/metrics will work best for tracking progress toward the targets.
Typical Data Attributes/Metrics
For product and/or service ownership beyond the function
Assign responsibility for future state mapping and implementing lean value streams to line managers with the capability to make change happen across functional and departmental boundaries
Value Stream Managers should make their progress reports to the senior manager on site.
Value Stream Managers
Challenge every step – ask the following:
What is really needed by the customer? (Takt)
How often do we need to check our performance? (Pitch)
Why are the current steps performed?
What can be done differently or not at all?
Is the order of the steps creating waste?
Can we eliminate certain steps or do others more intelligently?
What assumptions underlie the current process?
Are existing tools and guides appropriate?
Go back to the 8 wastes to see if the step is a waste.
Which Steps Add Value
and Which are Waste?
Takt time=Demand rate
Which steps create/add value and which are waste?
How can we flow work with fewer interruptions/handoffs?
How can we control work between interruptions/handoffs?
How will we balance the work load and/or different activities?
How do we set pitch?
Pitch is the tempo of the output
Ideal: Takt = Pitch
What process improvements will be necessary?
Can we establish a pace or rhythm that improves processing?
Future State Questions
Post the Current and Future state maps
Show Implementation Timelines
Key measures of progress and success
Value stream performance indicators
Implementation progress & impact
Other documents as required (as few as possible)
Project Tracking Center
What gets measured gets monitored. What gets monitored, gets done.
Read case & then map the current state process
You have 2 colors of sticky notes – use one color for a process step, the other color for time spent waiting for something to happen
Utilize the mapping symbols
Identify waste and problems
Gather and measure a variety of attributes, such as:
PT – process time
LT – lead time
%VA - percent of process that adds value
%C/A – percent of process that is correct & accurate
%D/T – delay time
# of people involved
# of process steps required
Brainstorm kaizen opportunities
Case Study #1
What problems are pointed out?
Where were some of the “lean” opportunities?
Discuss areas in your business that could benefit from lean thinking
Case Study Debrief
Prioritize the list for quick hits and big hitters based on data or consensus
Decide which attributes will be the best ones to use
Map the desired future state & estimate expected results
Consider Six Sigma for projects with unknown solutions and the root cause is unknown
Reinventing your business, increasing your competitive position, a differentiator
It’s a continuous improvement journey
Not an event or a project
Lean is a way of thinking that all employees ultimately learn and continue themselves. It becomes part of the company culture and an organizational commitment
Not The End