2. Lean Office Training YOU to Recreate Your World

3. Course Agenda »Lean office overview »Definition of waste »Implementing lean tools »Next steps

4. Introductions »The CI Office »Expectations

5. What is Lean Office? Lean Office is a systematic approach applied to the value chain with an aim to streamline the business processes by: » Eliminating waste » Utilizing lean techniques »Resulting in: Lead time reduction and Productivity improvement

6. Why Lean Office? “In America today we have good (GREAT) people working in poor processes. What we want is good people working in great processes” Michael Hammer

7. Why Lean Office? “ Toyota Production System will not work unless it is used as an overall management system. TPS is not something that can only be used on the Production floor.” Taiichi Ohno

8. Lean Office $ $ LEAD TIME REDUCTION

9. Lean Systems Business as Usual CustomerDeliveryCustomerContact Lead-Time Waste CustomerDeliveryCustomerContact Lead-Time (Shorter) Waste Elimination “Eliminate Non-Value Added Activities”

10. Business Activities Manage Information Technology Provide Support Services Manage Finance/ Accounting Manage Human Resources Plan Business Manage Total Quality Perform R & D Product & Process Engineering Marketing/ Sales/ Service Manage Logistics Produce Product Plan Information Applications Plan Hardware Requirements Manage Information Operations Provide User Support Manage/ Maintain Facilities Perform Audits & Controls Provide Admin Services Manage Public Relations Manage Legal Services Develop Financial Plan Manage Assets Report Financial Performance Manage Costs Manage Accounting Plan Human Resources Acquire Human Resources Develop Employees Provide Employee Services Manage Union Activities Formulate Business Function Develop Maintain Business Plan Establish Supplier/ Customer Relations Apply Quality Tools & Technique Manage Process Controls Research Technology Manage Experiment Developm’t Engineer And Design Products Engineer And Design Processes Develop Equipment And Tools Manage Engineer’g Changes Engineer Packaging Develop New Business Establish Customer Req’s Obtain Sales Commits Provide Customer Support Manage Warranty Activities Define Logistics Strategy Procure Materials Manage RM/WIP FG Manage Shipping Rec. Process Orders Plan Mfg Req’s Perform Mfg Operations Control Production Schedule Maintain Equipment/ Tooling Perform Mfg Quality Perform R & D Product & Process Engineering Marketing Sales & Service Manage Logistics Produce Products IT Accounting HRQualityEngineeringSalesLogisticsManuf. Natural Management Team

11. Value Added vs. Non-Value Added Activities »Value Added (VA) –The customer is willing to pay for it –Physically transforms the product (or document or information) –Is done right the first time »Non-value Added (NVA) –Consumes resources, but does not add value to the product or service »Necessary Non-value Added (N-NVA) –Does not add value to the product or service but are –CURRENTLY NECESSARY –Customer Contract or specification –QS 9000 or customer standard –Government regulation –Current state-of-the-art work method or technology

12. Sites of Waste »Policies –Organizational structure –Management policies and methods »Macroscopic wastes –Supply chain –Office layout »Microscopic wastes –Operator and computer level »Major wastes –Process and cell level

13. nD efects nO verproduction nW aiting nN on-utilized talent nT ransportation nI nventory nM otion nE xtra processing Typically 95% of Total Lead Time is Non-Value Added!!! Value Added Lean = Eliminating the Waste 12 ©2006 MMTC

14. Waste of Defects »Money and time wasted to find and fix mistakes »Lack of process controls »Poor work instructions »Inadequate training »Data entry error »Missing information »Missed specifications »Pricing error

15. Waste of Overproduction »Making multiple schedules due to system incompatibilities »E-mails/memos to everyone »Printing extra documents just-in-case »More information than the process requires »More information than the customer needs »Creating reports no one reads

16. Waste of Waiting »Time lost when people and resources are waiting: »Unbalanced workload »Equipment break downs »Batch processing »Waiting for information »Waiting for copiers/faxes »Waiting for customer response »Waiting for an internal response

17. Waiting Waste ©2006 MMTC16

18. Waste of Non-Utilized Talent »Unclear job descriptions »Lack of training »Lack of synergy and collaboration »No feedback loop for continuous improvement »Suggestions for improvements that are not investigated/utilized

19. Waste of Non-Utilized Talent

20. Waste of Transportation »Poor office layout »Walking around to correct mistakes and find answers »Retrieving or storing files »Carrying documents to and from shared equipment »Going to get signatures »Taking files to another person

21. Waste of Inventory »Storing of obsolete prints and specs »Obsolete databases/files and folders »Files pile up between work desks »Open projects (WIP) »Office supplies »E-mails waiting to be read »Unused records in a database

22. Inventory Waste

23. Waste of Motion »Looking for items because they are out of place »Mis- or unfiled papers »Saving files everywhere »Handling paperwork that could be electronic »Extra clicks or keystrokes »Working around other open files on desk

24. Waste of Extra Processing »Doing more than is required to meet customer requirements »Unnecessary paperwork »Redundant approvals »Repeated manual entry of data »Use of outdated standard forms »Use of inappropriate software »Creating hard copies of reports

25. Waste of Extra Processing

27. 7 Steps for Process Mapping with Swim Lanes 1.Create a macro level flow of process 2.Select a functional area to map 3.Detail the steps 4.Identify NVA and N-NVA steps 5.Analyze the process 6.Develop a future map 7.Develop and implement action plan Value Stream Mapping (VSM)

28. ©2006 MMTC27 Detail the Steps

29. Process Mapping Guidelines Gather the information from the actual process - “go see” where the work is being performed Get the real data versus the theoretical way it should be done or the way people “think” it is done Use the “experts” (people doing the work) to develop the maps Use the maps as a microscope on the process to allow you to see where to make improvements

30. Process Mapping Guidelines Process Step Make a Decision Advance within Swim Lane Review, Approve, Inspect Delay, Inventory, Waiting Advance across Swim Lane Electronic Transfer of Information Star Burst, Idea

31. ©2006 MMTC30 Use the Experts

32. Break into Groups, Work on Mapping

33. 1.Identify VA, NVA & N-NVA Steps 2.Identify opportunities to combine steps that occur between two or more people 3.Identify opportunities to perform work simultaneously instead of sequentially (Parallel VS Sequential) 4.Identify opportunities for single piece flow VS batch 5.Identify opportunities to signal downstream departments to prepare to receive or produce work 6.Identify opportunities to “co-locate” people doing work 7.Identify opportunities to automate any of the work 8.Identify problems which if solved will reduce time or error rate Analyze the Process Map

34. Develop & Implement Action Plan » Create a list of actions » Assign responsibility » Define due dates “A3 Report”