OFFICE MODERNIZATION – Toward lean and efficient administration

1. OFFICE MODERNIZATION – Toward lean and efficient administration Presented by: Edly Ferdin Ramly

2. Contents • Introduction • Identify Non Value Added Activities • Deployment Plan

3. 1 Introduction Office Modernization

4. 3 Criteria

5. Resources • Organizational Resources: • Man • Machine & other infra-structure • Materials • Method & information • Money $$$$$ • Market & brand

6. Non Value Added Non Value Added sometime called waste. Waste is: "anything other than the minimum amount of equipment, materials,parts, and working time absolutely essential to work." Difficult to get a team to agree what is absolutely essential! The Rough Guide to Waste is: Therefore: Any activity that does not directly produce the output is waste This is a more objective judgment

7. Every activity should be considered as waste, unless it: • Meets an explicit customer requirement • Cannot be shown to be performed more economically Definition of What Is Not Waste If the activity does not meet a known customer requirement or could be performed more economically, why continue in the same manner? This is objective, accurate and challenging - giving a strong basis for agreement

8. WORM PIC The 7 Wastes • Waiting • Over-produce • Rework • Motion • over-Processing • Inventory • Conveyance

9. Elimination of Waste Waste is everywhere! The elimination of waste is a massive opportunity!! Lean Strategy is the best way to eliminate waste

10. Lean Benefits • Org A, Application processing time 62% reduction in turnaround time at Licensing Department • Customer who once found themselves able to talk with a Dept C associate only 76% of the time now have a 99% chance of success on the first try. • Reduce of 10 steps to 3 steps in payment process.

11. 2 Identify Non Value Added Activities Value Stream Mapping Process Mapping Spaghetty Diagram

12. Value Stream Mapping : Benefits • Visualize the entire value stream. • Link man + information flows. • See the sources of waste. • Highlight the real decision points. • Link actions to flow results. • Blueprint your implementation. • Speak a common language.

14. Cumulative Time Dist Receive application 0:00 0m 0:40 5m Inspect Table A 2:15 35m Wait for check 8:00 35m Approve 8:10 36m Keep 9:00 48m Process Mapping PROCESS CHART

15. Common Implementation 1. Engage the entire office team - especially top management and line workers. For Lean to succeed, we need the complete support (financial, time and spirit) of senior management and the buy-in and feedback of the workforce, who often have the best knowledge of what is really happening "in the trenches." 2. Use Process Mapping (PM) to map out current processes, information flows and paper flows. 3. Use the Current State Map to identify waste (time & activities) and to determine what we really need to capture from the current process. 4. Build a Future State Map that identifies WHAT the office should be doing and use the FSM to guide the creation of waste free processes and information flows. 5. Only now do we determine HOW to build our processes. 6. Execute the plan and build in a mechanism for and a culture of continuous improvement.

16. 3 Improve Flow

17. Flow • In order to eliminate and reduce Non Value-Added activities, the flow of material and components should be smooth and uninterrupted. A stop-start flow implies placing, stocking, waiting and picking. • Once the product has started on its process route it should complete it in One-Piece flow(continuous flow). • The analogy for material flow is that of water in a river - the best flow is through clear , wide well defined channels that go directly to the required destination.

18. A Smooth Flow is Less Disruptive

19. What can disrupt flow? • Searching for paperwork, equipment • Long set-up • Quality problem • In-consistent customer demand • Breakdown • In-flexible worker/ Skill shortages • Large batch size to process • Supplier late delivery • Waiting for approval

20. Tools to eliminate disruption • 5S • Total productive Maintenance • Quick changeover/ Flexible tasking • Visual Management • Poka Yoke and In-line Inspection • One piece flow

21. 4 4 3 5 5 3 2 Standard application in Hand 6 6 Standard Sapplication in Hand 2 7 1 1 7 Application Approval Applicatio n Approval One Piece Flow - Flexibility Baton passing zone Baton passing zone 1 Staff 3 Staffs

22. 4 Implement Pull

23. Kanban: A Simple Real Example Burger Regulator Kitchen Tills Customer As one type of burger is consumed . . . They are removed from the regulator . . . And then replenished by the kitchen . . . Not made to a forecast and pushed at the customer

24. 5 Deployment Plan

25. Phase 5 Pursue Perfection Phase 3 Improve Flow Phase 2 Waste Identification Phase 4 Implement Pull Phase 1 Lean Awareness Lean Deployment Plan Pursue perfection by CompleteElimination 6 Lean Tools Training Program Lean Consultancy Lean Master/ Expert Program Blitz Kaizen 5 4 Projects Identified (Top 3 wastes) 3 Deployment Plan Performed 2 Lean Deployment Committee Formed Executive/ Top Management Briefing

26. Phase 1: Lean Awareness Purpose: • To ensure Top Management is to instill complete buy-in & full understanding of what is Lean, with clarity on how Lean can be fitted to their business • To eliminate the jargon and ensure common understanding on Lean • To set the companywide productivity measure Approach: • Step 1: Top Management briefing • Adopt lean strategy • Build lean vision into company strategy • Foster learning and establish need • Make commitment • Step 2: Lean Deployment Committee form • This committee is usually a formation from all the identified respective department heads where they will be bestowed with the authority in decision-making with relation to both Lean technical & cultural implementation • Step 3: Lean Deployment Plan performed • Carefully strategize in terms of the people selection, resource allocation, incentive system, policies review, etc.

27. Phase 2: Waste Identification Purpose: • To diagnose organization current practice and identify opportunities to eliminate the non-value added activities. • To enable development of a solid action plan for your Lean initiative. Approach: • Step 4: Identified Project (Top 3 wastes) • This is a critical step in Lean. Only the right project selection will lead to substantial results. • Various technique to identify waste, example • Value Stream Map • Process Map • Spaghetti diagram

28. Phase 3 and 4 Purpose: • Phase 3: • To ensure the production or work flow is smooth without disruption. • Eliminate non value added activities that cause disruption on flow. • Phase 4: • To produce right quantity and right time • To eliminate overproduce and inventory waste • To manage store and WIP effectively

29. Phase 5: Pursue Perfection Order levelling Lean Assessment Radar Chart 10,0 9,0 Flow Material Control 8,0 7,0 6,0 5,0 4,0 Team Member Involvement Continuous Flow 3,0 2,0 1,0 • Self-evaluation tool based on questionnaire • Gap-analysis: current vs. future lean state 0,0 Visual Controls Training 5S TPM Quality Assessment Score Target Score

30. Lean - Conclusions Being Lean is Fun !