Getting the Most Bang Out of Your Resources!!

1
Getting the Most Bang Out of Your Resources!!
LEAN CONCEPTS

• Dr. Frances Kennedy
• Professor and Director,
• School of Accountancy
• and Finance
• Clemson University

2
Strategic Lean

• More than a shop-floor tool
• Process improvement should be
• applied throughout organization
• Support functions must participate and
  contribute to lean journey for it to succeed
• Lean is a total business strategy

3
Lean Principles

Value
Flow and Pull
Value Streams
Empowerment
Perfection
4
Lean Principles

• Discharge Process
• Cross functional
• Multiple care providers
• Pharmacy
• Doctor
• Nurses
• Quality
• Coding
• Bed Control
• Outpatient
• Billing

• Supplier Payment Process
• Ordering
• Receiving
• Storage
• Inventory
• Payment
• Systems

Value Streams
Form a team with members from all constituent
areas
Sequences of processes and activities delivering
customer value
5

• What does it mean to
• map the Value Stream?

6
CURRENT State VS map

Lead Time 4.5 Days Cycle Time 49 min.
7
FUTURE State VS map

Lead Time 5 Hours Cycle Time 43 mins.
8
Current Conditions Value Stream Map
9
Ideal State Value Stream Map
10
Future State Value Stream Map
11
Lean Principles

Value
Flow and Pull
Value Streams
GOAL
100 Quality
Smooth Flow
On time
12
What is Waste?
Transporting
Motion
Waiting

Errors!
Obstacles to Quality, Flow and Time!!
13
Spaghetti Diagram
Waste in time and movement!!
14
Key 5S
Sort Straighten Shine Standardize Sustain
Wasted time looking!
15
Lean Principles

Value
Flow and Pull
Value Streams
Information and authority to act when needed
Empowerment
Perfection
100 quality unbroken flow at the pull of
the customer
16

Visuals

• Necessary for Lean
• Consists of visuals that
• Supply information
• Trigger need
• Alert issues
• Provide instructions
• Demonstrate control and location

17
(No Transcript)
18
Everyday ExamplesWhich dial turns on the burner?
Stove B
Stove A
Stove C
19
Everyday ExamplesHow would you operate these
doors?
Push or pull? left side or right? How did you
know?
C
20
Everyday Examples
21
Pull Systems
22
Flow Visuals
23
Kimberly Clinic
30 MINUTES!!

• Defined the Perfect Patience Experience
• Mapped the process
• Saw the waste bottleneck was the lab
• Implemented a new process targeting the lab
• Began initiatives in all areas

24
Call Center
Songs Dont Worry Be Happy and Jeopardy
Center of Discussion Goal attainment
Color coding
25
Employee Journey helped to see where they were
going
Continuous Improvement is critical!
26
Results!
27
Lean Accounting vs.Accounting for Lean

• Lean Accounting
• Use of same Lean tools in accounting department
  as in operations
• Accounting for Lean
• Accurate, timely, and understandable information
  for motivating lean transformation

28
The DRIVING Question
Where do I start in Accounting?!?
29
Start with People!

Create a safe environment
Communicate Solicit opinions and suggestions
Develop a joint vision
30
5S the office workspace
Remove cabinets, bins
Review/revise retention policies and enforce
Remove unused and redundant reports
Rearrange office layout
31
Result

• Cleaner, more orderly workplace
• Positive impact on morale
• Save time hunting for files and reports
• Use that time for more interesting and
  value-added analysis
• Cross-training

N NoviceB Beginner I IntermediateE
Expert
32
Form a Vision

• One Controllers Approach
• Developed levels of performance in 10 key
  responsibilities
• Housekeeping
• Management of Objectives
• Employee and Process Development
• Performance Measurement
• Developing Your Suppliers
• Safety/Health
• Customer Service
• Reporting Compliance
• Communication
• Documentation/Standardized Work Tasks

Established a Champion to lead a team in each area
33
Performance Measurement Levels
Level 1 PMs are not standard. Few functions have measures. There is no quantitative basis for rewarding exceptional performance. Employees dont know where they stand.
Level 2 Some departmental measures are in place and employees are aware of the measure. Internal and external customer focus is a key topic, but feedback measures are not in place.
Level 3 PMs are in place for 75 of the tasks. Critical tasks are measured, and successful completion is 95. All tasks have primary customer focus. Customer feedback is requested periodically.
Level 4 Customer focus is clear. Commitments to due dates are supported by PMs. Follow up meetings review performance for continuous improvement.
Level 5 PMs are used to support continuous improvement on all critical tasks. Customer satisfaction surveys ensure proper focus. The team works as a unit toward 100 compliance.
34
Selecting the activity/process to improve

• Does this activity require a simple change that
  can be implemented at no cost?
• How much employee time will it take to plan,
  analyze and implement a change?
• Is it likely that there will be additional costs
  involved?
• What is the impact of the change on the
  informations customer?
• What is the impact on the quality of information?

35
Selecting the activity

• Is it the quickest or costless?
• Will it have the most impact?
• Does it save resources?
• Will it impact other departments?

Biggest Headache?
Customer Complaints?
36
Prepare an Action Plan
Current State What do we do now? Date Future State Ideally, what could it be? Date
  Suppliers paid on periodic basis. Use three-way matching on all payments. All discrepancies investigated.   80 supply purchases on blanket purchase orders. Payment is authorized upon receipt quantity. No matching and discrepancy investigation necessary
Obstacles Challenges How to Overcome
  Number of vendors and part numbers will make it hard to visualize   Visit and see what others are doing Involve people who design as their job, such as marketing and design engineers
What needs to be in place in . . .
3 mos? Project Plan in place, data
collected, New process designed. 6 mos?
Be ready to test.   9 mos? New process
implemented   12 mos? Sustained          
Who needs to be involved in the
process? ___________________ ___________________
__ ___________________ _____________________ ___
________________ _____________________ __________
_________ _____________________
What are the first steps? 1. _____________________
_________________ 2.______________________________
________ 3.______________________________________
4.______________________________________
Organize cross-functional team
Ann B., Purchasing
Terry D., Accounting
Enlist champion
Chris B., Accounting
Mark W. Receiving
Karen M., Purchasing
Tom H., Systems
Schedule first meeting
Prepare project plan
37
Next?

• Understand the process!
• Map it
• Collect data
• Draw it
• Talk to the people directly in it
• Identify the waste!
• Time?
• Redundant controls and reporting?
• Inadequate training?
• Design new process!
• Map the new process
• Communicate it post it!
• Implement and adjust

Transporting
Waiting
Errors!
38
Key Points

• It all starts with your people!
• Workplace 5S ? better workplace, helps to
  understand waste, better experience
• Be honest about the current process
• Target easy waste first and Just do it!
• Involve all the process constituents in the
  solution
• Use visuals to communicate, measure and
  celebrate!
• Plan to sustain improvements

39
Thank you!!