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
Non Value Added
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."
Difficult to get a team to agree what is absolutely essential!
The Rough Guide to Waste is:
Therefore: Any activity that does not directly produce the output is
waste
This is a more objective judgment
Definition of What Is Not Waste
Every activity should be considered as waste, unless it:
• Meets an explicit customer requirement
• 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?
This is objective, accurate and challenging
- giving a strong basis for agreement
The 7 Wastes
• Waiting
• Over-produce
• Rework
• Motion
• over-Processing
• Inventory
• Conveyance
Elimination of Waste
Waste is everywhere!
The elimination of waste is a massive opportunity!!
Lean Strategy is the best way to eliminate 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 Mapping
PROCESS CHART
Receive
application
Cumulative
Time
Dist
0:00
0m
0:40
5m
2:15
35m
Wait for
check
Approve
8:00
35m
8:10
36m
Keep
9:00
48m
Inspect
Table A
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
One Piece Flow - Flexibility
4
4
5
6
Standard
application in Hand
1 Staff
7
Approval
Application
3
5
3
2
1
6
Standard
Sapplication in Hand
3 Staffs
7
Approval
2
1
Applicatio n
4
Implement Pull
Kanban: A Simple Real Example
Kitchen
Burger
Regulator
Tills
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
Customer
5
Deployment Plan
Lean Deployment Plan
Phase 5
Phase 3
Improve Flow
5
Phase 2
Waste Identification
4
3
Phase 1
Lean Awareness
2
Projects Identified (Top 3 wastes)
Deployment Plan Performed
Lean Deployment Committee Formed
Executive/ Top Management Briefing
Blitz Kaizen
Implement Pull
Lean Master/
Expert Program
Phase 4
Lean
Consultancy
Pursue perfection by Complete Elimination
6
Lean Tools
Training Program
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
Order levelling
Lean Assessment
Radar Chart
Flow
Team
Member
Involvement
 Self-evaluation tool based
on questionnaire
 Gap-analysis: current vs.
future lean state
10,0
9,0
8,0
7,0
6,0
5,0
4,0
3,0
2,0
1,0
Material Control
Continuous Flow
0,0
Visual Controls
Training
5S
TPM
Quality
Assessment Score
Target Score
Lean - Conclusions
Being Lean is Fun !