Jørn W.Phigalt
CEO – ITM Europe
Using LEAN to enrich SME’s views
- creating sustainable value using known techniques and ICT!!!
Baltic IT&T 2007, Riga, Latvia
LEAN in a Business Concept for SME’s
TPS
Toyota Production System
Quality Circles
TQM
Total Quality Management
CRM
LEAN
Customer RelationShip Management
Trimming a process flow
ERP
Enterprise Resource Planning
Jim Womack og Daniel Jones
SME’s Business Opportunity
CLM - Customer Lifecycle Management
Baltic IT&T 2007
Riga, Latvia
ITM Europe
Customer Lifecycle Management…
This is the Most Important Person in your Life
Your Paying Customer
He Generates your Income, your Profit, your Life
In principle he ONLY pays for Value
He will not pay for your mistakes, your wrong decisions, your lack of
efficiencies, your discrepancies on the stock, your loss on debtors, your neglect
or your investment in any activities that is not linked to improvement of your
business – THAT HE CANNOT BENEFIT FROM
Baltic IT&T 2007
Riga, Latvia
ITM Europe
Customer Lifecycle Management…
Total
Evaluation
Value Enrichment
Customer
Service
Baltic IT&T 2007
Riga, Latvia
Sales
Operation
ITM Europe
LEAN in practical use…
Put emphasis on value creation for Customers
Focus on what the customer will pay for and how the activity you will
perform will give him benefits
Map the value stream and reduce waste
Focus on where there is activities that is old or build without adding
anything to the customers value experience. Waste is in many cases not
goods but time
Create flow – the Customer process shall be smooth
Avoid redundancy in the process and that staff handle the same item
again-and-again, and limit the distance to the end-product
Build focus – produce only the necessary
Try to avoid ‘mini warehouses’ in the organization – it ties up capital and
are time consuming
Implement a culture – hunting for improvements
Secure that there is an on-going process that tracks all ‘non-value’
creating activities and correct them (Kaizen)
Design back-office solution that reflect true CustomerShip
Baltic IT&T 2007
Riga, Latvia
ITM Europe
Traditional LEAN Perspective…
This is where we
see that LEAN
can be used effectfull
Customer
Service
This is where we
is lead to believe
that LEAN can work
Baltic IT&T 2007
Riga, Latvia
ITM Europe
IT and LEAN Principles…
This is where we
see that LEAN
can be used effectfull
Customer
Service
This is where
ICT Technology
can give benefits
This is where we
is lead to believe
that LEAN can work
Baltic IT&T 2007
Riga, Latvia
ITM Europe
Implementing LEAN based IT…
Faults..
Chosen a too difficult or low-impact project
Neglecting administrative procedures
Training, thinking, evaluating – not doing
Missing Customer Lifecycle Management focus
Improvements methodology not in place
Cultural changes not included
Process
Walk-through
Baltic IT&T 2007
Riga, Latvia
ITM Europe
Process walk-through for PartnerShips…
Identifying Potential Partners
Marketing Development
PartnerShip Demands & Issues
Leads Own
Interest
Product Development
PartnerSearch Meetings
Knowledge Transfer
Information
package
to Leads
Upgrade to
Prospekt
Web-restricted access
Lost
Warranty and Service
Web-site Information
to Leads. prospects
Regular
Partner Meetings
Offerings and Supply
dialogues
Ordering Products
and Services
Complaints
Payment Procedure
Order Confirmation
Partner Product Inspection
Baltic IT&T 2007
Riga, Latvia
ITM Europe
Examples on Common Area’s of waste
 Returns
– (wrong ordering, wrong knowledge, wrong handling,
wrong shipment)
 TIME – COSTS – INSPECTION – DELAY – COMMUNICATION
– Knowing the customer’s purchase pattern (CRM)
 Service calls due to poor quality
– (saving money on purchases, discount purchase)
 ARGUMENTATION – TIME – COST – STOPS – NEGATIVE
– Expectation management, customer handling (CRM)
Baltic IT&T 2007
Riga, Latvia
ITM Europe
To conclude…
LEAN can be used by everyone
It is a set of logical decisions that
takes of in the complex world of the customer.
The key question is always
WHAT WILL HE PAY FOR….