PSL - Lean Thinking For Office - 1 Day Intro Course

Your Gateway to Operational
Excellence
© PSL 2011 All Rights Reserved
Lean Thinking for the Office & Admin Areas

Excellence
Road Map…
• Intro to Operational Excellence
• Overview of Best-Class Practices
• Lean – What is it and Why?
• How to Lean your Business?
• Value vs. Waste - The Hidden Wastes in businesses
• TPS (Lean) – Toyota Production System
• 5S & Visual Management
• Total Productive Maintenance
• Kaizen, Standardisation and Hijunka
• JIT (Continuous Flow, Pull, SMED etc)
• Jidoka (Poka-Yoke)
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/psl-lean-thinking-for-office-1-day-intro-course-1589

Excellence
Operational Excellence
• GROUP ACTIVITY
– Develop an agreed definition of what
Operational Excellence is.
– How would you measure OpX?
– What distinguishes an Operationally Excellent
business from others in the market place?

Excellence
Operational Excellence Systems
Different names
… common
theme
• TPS
• Lean
• Agile / Flexible
Manufacturing
• Six Sigma
• Lean Sigma
• TQM
• WCM
• TOC

Excellence
Total Quality Management -TQM
• Total = Quality involves everyone
and all activities in the company.
• Quality = Conformance to
Requirements (Meeting Customer
Requirements).
• Management = Quality can and
must be managed.
• TQM = A process for managing
quality; it must be a continuous
way of life; a philosophy of
perpetual improvement in
everything we do.
Dr. Edward W.
Deming

Excellence
What is Lean?
• Lean is an ever evolving philosophy based on
proven principles and practices aimed at the
elimination of wastes.
• Lean is a continuous process of change involving
everyone in the organization.
• In summary, Lean improves Throughput and
Productivity while reducing Cost.This document is a partial preview. Full document download can be found on Flevy:

Excellence
uses…
DMAIC
DEFINE MEASURE ANALYSE IMPROVE CONTROL
Define-
Customer,
requirement
s, team&
process.
Measure- Identify
keymeasures and
datacollection
planandexecute
theplan.
Analyse–
thedataand
theprocess
tofindthe
root cause.
Improve–
Generate
potential
solutions
Control –Develop,
document and
implement aplanto
ensureperformance
improvement remains at
thedesiredlevel.

Excellence
Comparison of Best-Class Practices
Method Lean Six Sigma TOC TQM
View of
Waste
Non-value add
is waste
Variation is
waste
Constraints
drive waste
Cost of Quality
Is waste
Tools Visualization
Math-
Statistics
Systems
thinking SPC and People
Focus
Process flow
focused
Problem
focused
Constraint
focused Quality focused

Excellence
The Means

Excellence
Performance – the results we get
Quality Performance
– Complaints
- Rework
- Defects
Business Strategy - Growth
Logistics Practices
– Stock levels
- DIFOT
Organisation and Culture Performance
– Supplier and employer of choice
Lean Performance
– Speed
- Reliability
- Value Adding %
Manufacturing Performance
– Incidents and Injuries
- Throughput
- Cost

Excellence
The Lean Office
Learning how to stabilize, standardize,
and simplify administrative processes
using the power of the Toyota
Production System

Excellence
What Must Occur First?
Management Commitment

Excellence
Stabilize
Stabilize tools are:
Understanding Waste – Activity
5S - Activity
Data Collection
Predictable Output - Activity
Interruptions and Random
Arrivals
Metrics
Cycle Time
Document Tagging
Takt Time
Value Stream Mapping – Activity
Airbus
The order entry value stream - future state map
Admin
EDI = 10m.
Q
4 hrs.
Q
4 hrs.
4 hrs.
10 m.
Queue time = 12.5 hrs.
Value added time = 1.67 hrs.
(100 minutes)
Total lead time = 14.17 hrs.
Admin
EDI = 10m.
Technical Support Cell
CT = 60m.
XOXO
Q
4 hrs.
Q
30 m..
Max = 24
FIFO
Kanban
Supplies
Standard
Work
5S
Folder
System
Cross
Training
Heijunka
4 hrs.
60 m.
30 m. 4 hrs.
30 m.
Support = 20m.

Excellence
Traditional versus Lean
Traditional
Companies
0 X
Lean
Companies
0 Y
Lead Time Order to Delivery

Excellence
Defects
Defects (or Mistakes) – refers to all
processing required in creating a
defect or mistake and the additional
work required to correct it.
• Data Entry Errors
• Pricing Errors
• Incomplete Documentation
• Poor Instructions / Incorrect Info
• Lack of Training
• Not following the right sequence
• Inefficient filing system Physical /
electronic
• Inappropriate staff to serve customer

Excellence
Non-Effective Use of Talent
• Under utilisation of
• Expertise
• Skills
• Creativity
• Innovation
• Leadership
• Motivation
• DriveThis document is a partial preview. Full document download can be found on Flevy:

Excellence
Motion
Any movement of people,
paper, electronic exchanges
that do not add value
• Searching for computer files
• Searching for documents in filing
cabinets
• Repeatedly reviewing manuals
for information
• Non-use of POUS
• Poor layout
• No Standard methods
• Poor house keeping
• Poor process design

Excellence
Activity – Waste Hunt
• In groups discuss and note down opportunities to
reduce wastes in your businesses.
• D -
• O -
• W -
• N -
• T -
• I -
• M -
• E-
Q: What emphasis does your organisation give for waste
reduction?

Excellence
Stabilize – 5S
Set-In-Order
Sort
Shine
Sort
Standardize
Sustain
Name:
Date:
Location of Item:
Reason for Red Tagging:

Excellence
Stabilize – Data Capture
Standard Work for the Desktop

Excellence
Stabilize – Predictable Output
No Predictable
Output
• Customer dissatisfaction
• Increased variation and costs
• Increased employee stress
• Process variation and waste

Excellence
Stabilize – Interruptions and Random
Arrivals
Benefits of a Log
• Awareness of organizational time
• Immediate improvement in office productivity
• Reduced work variation
• Used for 1 only month, then intermittingly as needed
Note: Management and customer exceptions may override
this per business conditions.

Excellence
Stabilize – Cycle Time
Cycle Time – the time elapsed from the beginning
of a work process request until it is completed
1) Individual Cycle Time
2) Total Cycle Time

Excellence
Stabilize – Document Tagging
Document Tagging – the physical or electronic
attachment capture of the various cycle times for
the process or value stream being examined
• Creates awareness of organizational time
• Involves the entire value stream
• Accurate cycle times and lead times can be
established

Excellence
Stabilize – Document Tagging

Excellence
Stabilize – Value Stream Mapping
Value Stream Mapping – the visual representation of
the processes (work units and information)
required to meet customer demand
• Includes both value-added and non value-added activities
• Allows for “seeing” areas of waste in current state
• Future state is roadmap and apt to change
• Create icons specific to your business or industry
• Maps should be the plan for 6 months – 2 years
• Maps – many types

Excellence
Stabilize – Value Stream Mapping
Pitch-
Folders
Supply
Kanban
Leveling Box
FIFO
Lane
U-shaped
Cell
Kaizen
Runner

Excellence
Standardize – Just-In-Time

Excellence
Standardize – Pull Systems and
Kanbans
• Must know downstream process well
• Based on visual signals
• Is customer driven

Excellence
Standardize – Standard Work
Standard Work – the process of documenting and
using best process
• Establishes the best sequence to do a process
• A major component of kaizen activities
• Uses Standard Work Combination Table and
Standard Work Chart as tools

Excellence
Standardize – Office Layout
Office Layout – a self-contained, well-occupied
space that contributes to smooth work flow

Excellence
Standardize – Office File System
1 Create the System Folder
• Centralizes all process information
• Creates a visual aid for document control
• Allows for process knowledge to be owned by the
organization
Directly impact customer
or bottom line
Necessary, but not
immediate
As needed basis
Work completedWork to do

Excellence
Standardize – Office File System

Excellence
Simplify - Mistake Proofing
Mistake (or Error) Proofing – to design
mistake prevention into a process to
achieve zero-defects
• Improves quality
• Corrects problems early
• Reduces costs

Excellence
Simplify - Leveling
Leveling – the even distribution of work by volume
and value stream
• Balances work loads
• Reduces queue times
• Assists to achieve continuous flow

Excellence
Simplify – Visual Controls

Excellence
Doing the Right Things - STRATEGY
• What do we need to do to
make a difference to our
business, customers and
people?
• Which ones will give us the
best results?
• How do we resource it?
• How will we make it
happen?

Excellence
Change – Doing Things Differently
• Breaking down
barriers
• Learning by doing
• Creating a culture
of action

Excellence
Lean – Formulae for Success
IDEAS
THE TEAM DEVELOPS IDEAS
ON HOW TO ELIMINATE WASTE
COMMUNICATION
MAKE SURE EVERYONE KNOWS
THE GOALS, THE CHANGES
BEING MADE, THE SUCCESSES,
AND THE FAILURES
CULTURE
CREATE A CONTINOUS
IMPROVEMENT CULTURE.
ALWAYS CONSIDER
NEW IDEAS
OBSERVE
ANALYZE THE CURRENT
SITUATION
TEAMWORK
FORM A TEAM OF PEOPLE,
THE PEOPLE THAT ACTUALLY
DO THE WORK

Excellence
Further References
Thank You!
www.lean.org
www.strategosinc.com
www.gemba.com
www.pslglobal.net

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PSL - Lean Thinking For Office - 1 Day Intro Course

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PSL - Lean Thinking For Office - 1 Day Intro Course