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

Contents Introduction Identify Non Value Added Activities Deployment Plan

1 Introduction - Office Modernization

3 Criteria

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

Therefore: Any activity that does not directly produce the output is waste Non Value Added This is a more objective judgment 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." The Rough Guide to Waste is: Difficult to get a team to agree what is absolutely essential!

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

The 7 Wastes Waiting Over-produce Rework Motion over-Processing Inventory Conveyance

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

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.

2 Identify Non Value Added Activities - Value Stream Mapping - Process Mapping - Spaghetty Diagram

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.

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

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.

3 Improve Flow

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.

A Smooth Flow is Less Disruptive

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

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

Application Approval Standard application in Hand Applicatio n Approval Standard Sapplication in Hand Staff One Piece Flow - Flexibility Baton passing zone 3 Staffs

4 Implement Pull

Kanban: A Simple Real Example CustomerTills BurgerRegulator Kitchen 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

5 Deployment Plan

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

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.

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

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

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

Lean - Conclusions Being Lean is Fun !