Abbie DeYonge
Channel Partners LLC

• Lean Production System Overview
• Review of 4 Lean Methodologies
• Industry Specific Application of
Methodologies
• Questions

• Create an understanding of Lean and origin
• Train how to use Lean methodologies of waste reduction, 80/20 rule, quality improvement and standardization
• Practice using Lean methodologies through industry specific examples
• Be able to apply methodologies in current environments to be able to increase customer value & efficiency in loan
& lease Processing

Lean Manufacturing Overview
• Developed by Tiiachi Ohno, President of Toyota Car
Manufacturing during World War II
• Goals:
– Increase Flexibility in Operations
– Succeed In Times of Recession and Rapid Growth
• “All we are doing is looking at the timeline from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing the non-value added wastes” Taiichi
Ohno

Lean Manufacturing Benefits
• Improved Cost
• Improved Quality
• Improved Service Delivery Time
• Increased Awareness of End-to-end Processes
• Recognition of Waste
• Increased Process Knowledge
• Improved Process Flow
• Increased Utilization of Staff
• Improved Visibility of Operations
• Increased Productivity

Lean Manufacturing Methodologies

• Waste of Overproduction
• Waste of Waiting
• Waste of Inventory
• Waste of Overprocessing
• Waste of Transport
• Waste of Motion
• Waste of Defects

• Quality, from a Lean perspective, is a “state in which the customer and provider realize full entitlement in every aspect of the business relationship.”
• Successfully identifying, diagnosing and correcting the root causes of mistakes will allow you to quickly and efficiently improve your processes and achieve your goal of increasing customer value by producing 100% acceptable transactions the first time

• Mistake Proofing
• Defect Reduction
– Root Cause Analysis
– 5 Why’s

Product Quantity Analysis (PQA)
• Analysis technique to group processes, procedures & issues to provide a macro view of the business
• Can also be used with office processes to simply and improve workflow
6
4
2
0
14
12
10
8
12
8
4
Last 30 Declined Deals
1 1 1 1 1 1
0

80/20 Rule or Pareto Principle
• 20% of the defects are causing 80% of the problems
• 20% of the work will consumer 80% of time
Last 30 Declined Deals
6
4
10
8
14
12
12
8
4
2
1 1 1 1 1 1
0
Rates Too High Process Took
Too Long
Term Doesn't
Meet Needs
Customer is
Shopping
Around
Client Changed
Mind
Undetermined
Vendor
Total Loan
Amount Too
High
Need Money for Equipment
& Soft Costs
Type of
Equipment
Unknown
Management.about.com/cs/genrealmanagement/a/Pareto081202.htm
0
Unplanned
Customer
Event

• “Without standardization there can be no improvement”
Tiiachi Ohno
• Variable environments & workflows can lead to increased time to deliver the product and defects.
• Increasing standardization throughout your processes will add the stability and structure to all of your processes to remain flexible and quickly adapt to environmental needs and customer value.

1. Customer does not agree with final terms & rate
2. Docs are incomplete at funding
3. Vendor Issues slow down final funding process
4. Wait time to get signed docs returned from customer
5. Customer decides not to borrow after initial approval

1. Remove the Waste
2. Focus on Quality
3. Remember the 80/20 Rule
4. Process Standardization

Abbie DeYonge – abbie@channelpartnersllc.com
Channel Partners LLC