Introduction to Lean Office

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Introduction toLean Office
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What Does LEAN Mean to You?
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Understanding Lean

• Definition of Lean
• The identification and removal of waste
• Lean principles, evolved from the Toyota
  Production System, focus on reducing cycle time
  and increasing process speed.
• The goal of lean is to accelerate velocity of any
  process by reducing waste in all its forms.

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Lean Principles
1. Specify value in the eyes of the customer. 2.
Identify the value stream and eliminate waste. 3.
Make value flow at the pull of the customer. 4.
Involve and empower employees. 5. Continuously
improve in pursuit of perfection.
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Principle One
1. Specify value in the eyes of the customer
Value Added Activity Any activity that transforms
a product or service to meet the customer need.
Non-Value Added Activity Any activity that adds
time or cost without adding value to the
customer.
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Principle One
Defining Value
Value Added Activity If its not clear whether a
task is Value Adding, imagine what would happen
if you STOP doing it. Would your external or end
customer complain. If yes VA.
Non-Value Added Activity Pick an activity. If
you STOP doing it now would any customer
(internal or external) know the difference. If
not, probably NVA.
Non-Value Added but Necessary (Required/Enablers)
If you STOP doing it now, would your internal
customer complain? If yes, probably NVA but
necessary.
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Principle One
Current State
Value Required or Enablers Waste
A Lean Future State
Value Required
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Principle One
1. Specify value in the eyes of the customer
Value Added to the customer
Non-Value Added (or Cost Added )
Typically processes are made up of 95 Non-Value
Added activities Huge opportunity!
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Principle Two
2. Identify the value stream and eliminate waste.

• Two important concepts here
• A value stream is all actions, both value and
  non-value added, required to bring a product from
  start to finish
• Waste or muda is any activity which absorbs
  resources but creates no value

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Principle Two Value Stream
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Principle Two Types of Waste
2. Identify the value stream and eliminate waste.

• Defects
• Overproduction
• Waiting
• Non-utilized Talent
• Transportation
• Inventory
• Motion
• Excessive Processing

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1. Defect Work that contains errors, mistakes
or lacks something necessary
Principle Two Types of Waste

• Examples
• Data entry errors
• Missing or bad information on forms
• Missing documentation
• Employee turnover

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2. Overproduction Producing more sooner or
faster than is required by the next process
Principle Two Types of Waste

• Examples
• Printing paperwork out before it is really needed
  
• Printing document twice just-in-case
• Purchasing items before they are needed
• Purchasing more than needed
• Memos to everyone
• E-Mail to everyone

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3. Waiting Idle time created when material,
information, people or equipment is not ready
Principle Two Types of Waste

• Examples
• Printer or computer break-down
• Need more information from customers
• Attendees not all on time for meeting
• Waiting for approvals from others
• Slow system response time

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4. Non-utilized People The waste of not using
peoples mental, creative and physical abilities
Principle Two Types of Waste

• Examples
• Bypassing procedures to hire a favorite candidate
• Inadequate new employee training
• Start using software without prior training
• Not providing opportunity for growth
• Limited employee authority and responsibility for
  basic tasks
• Inadequate business tools/training available

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5. Transportation Movement of paperwork that
does not add value
Principle Two Types of Waste

• Examples
• Paper and stapler kept away from printer and
  copier
• No signs identifying areas or departments
• Multiple hand-offs
• Multiple approvals
• Bad office layout

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6. Inventory More materials or information on
hand than needed
Principle Two Types of Waste

• Examples
• Excessive supplies
• Files piled up
• Filled in-boxes (electronic and paper)
• Documents waiting to be matched or signed
• Batch processing transactions reports

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7. Motion Movement of people that does not add
value
Principle Two Types of Waste

• Examples
• Looking for items
• Saving files everywhere
• Employee not working to standard method
• Centralized storage of equipment and supplies
• Poor work area layout

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8. Excessive Processing Effort that adds no
value from the customers viewpoint
Principle Two Types of Waste

• Examples
• Unused or unnecessary information collected
• Use of different software in different
  departments working on same thing
• Re-entering data
• Expediting
• Extra copies
• Unnecessary or excessive reports

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Principle Three
3. Make value flow at the pull of the customer.
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Principle Three Making Value Flow

• What is flow?
• Most products are made via fake flow

• Real flow means
• The product would continually be processed with
  only value added operations being performed.

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Principle Four
4. Involve and empower employees.

• Cross-trained and multi-skilled employees
• Who can work many functions
• Same understanding
• Continuous improvement philosophy
• Process quality, not inspection quality at the
  source
• Use of participatory / team decision-making
• Team-based problem solving, suggestion systems,
  etc.
• Dealing with complexity
• Better communication / faster feedback

Less Division of Labor
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Principle Five
5. Continuously improve in pursuit of perfection.

• Perfection is like infinity. Trying to envision
  it (and to get there) is actually impossible, but
  the effort to do so provides inspiration and
  direction essential to making progress along the
  path.

- Lean Thinking by James Womack and Daniel Jones
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Principle Five Pursuing Perfection
Old Adage . . .
The only person who likes change is a wet baby.
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Appendix

• Additional Material
• Lean meetings
• Organization rules to reduce E-mail waste

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Quick Time Saver Simple Rules for Holding Lean
Meetings
Rule 1 Reduce the duration of most meetings.
Try restricting meetings to no more than thirty
minutes in most cases. Rule 2 Have only a
single topic on the agenda, or perhaps several
closely related items its hard to run a
multi-topic meeting efficiently. Rule 3 Only
invite those people who have a need to be there.
Uninvited attendees should be discouraged they
can waste the rest of the groups time. Rule 4
Foster a culture that discourages lateness. If
an attendee is running late, they should notify
the meeting holder as to when they will
arrive. Rule 5 Define the goals of the
meeting when it is announced, and identify any
pre-work that should be performed or information
that is needed. Rule 6 Tangential issues
should be captured in a parking lot for future
discussion. Rule 7 Ask attendees at the
beginning of the meeting if they are expecting
any emergency calls, otherwise ALL ELECTRONICS
SHOULD BE TURNED OFF! You may need to forcibly
remove Blackberrys from peoples hands. Rule 8
Do not begin the meeting until everyone in the
room agrees on the deliverables that will be
created. EVERY MEETING SHOULD HAVE A
DELIVERABLE, OR THE TIME SPENT WILL PROBABLY BE
WASTED. Rule 9 Ask yourself if a formal
meeting is really necessary before interrupting
multiple peoples value-creating work.
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Quick Time Saver Some Organizational Rules to
Reduce E-mail Waste
Rule 1 Limit CCs to only those that are
ABSOLUTELY ESSENTIAL. Make a rule that employees
can choose to BLOCK all CC e-mails. Rule 2 No
more than two cycles back and forth between
correspondents. If the issue is not resolved by
that point, USE THE TELEPHONE! Rule 3 No
unnecessary forwarding of attachments use a
hyperlink instead. Rule 4 Always include the
POINT and URGENCY of the e-mail in both the
subject line and the first few lines of the text.
Rule 5 Consider using the first few sentences
of an e-mail as an ABSTRACT that summarizes the
remainder of the communication. Below the
abstract, add additional detail with the comment,
More detail follows. Rule 6 KEEP IT BRIEF!
No e-mail should be more than 20 lines in
length (consider using a network filter to block
any that are longer). Rule 7 Start the subject
line with ACTION whenever immediate action is
required by the addressee. Actions should be
identified at the beginning of the e-mail. Rule
8 Try using the SUBJECT LINE to communicate the
ENTIRE message, followed by EOM which stands
for End of Message. Rule 9 Limit the number
of times during the day that you cleanup or
respond to e-mails. Turn off the e-mail alarm, so
YOU control when you deal with e-mail.