International Journal of Mechanical Engineering and Technology (IJMET) Volume 10, Issue 01, January 2019, pp. 993–1001, Article ID: IJMET_10_01_102 Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=1 ISSN Print: 0976-6340 and ISSN Online: 0976-6359 © IAEME Publication Scopus Indexed MANAGING ON LEAN SERVICE IN SPORTS INDUSTRY Hari Supriyanto and Yudha Andrian Saputra Department of Industrial Engineering, Faculty of Industrial Technology, Institut Technologi Sepuluh Nopember, Surabaya, Indonesia ABSTRACT Lately, the application of lean has been applied in service companies with the same objectives, namely the elimination of waste and increased efficiency of all resources. As the global economy grows and develops, they are committed to achieving improvements like that. The current economic indications are marked by budget cuts and cost reduction but are still able to produce a good business performance. This paper, we will explore waste that occurs along the value stream; especially in the public sector, more specifically in industrial sports. Key words: Lean service, Waste, Customer value, Value stream, Improvement. Cite this Article: Hari Supriyanto and Yudha Andrian Saputra, Managing on Lean Service in Sports Industry, International Journal of Mechanical Engineering and Technology 10(1), 2019, pp. 993–1001. http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&IType=1 1. INTRODUCTION In today's competitive environment, service providers face many challenges. Every customer always expects the service provider, to be able to serve better, and more time to ensure all activities run smoothly [1]. Many among the service organizations find it difficult to match the goals of improving the process, with customer expectations, and to measure process capabilities related to quality, schedule, and improvement efforts. Some service organizations have begun to identify and explore concepts, which can provide a strong basis for process improvement [2]. Lean is a developing concept and many practice-researchers study lean principles and practices. Although the lean concept comes from the manufacturing environment, its principles have universal applications [3]. Even lean has moved to a sector other than manufacturing, for example, lean applications in hospitals, administration and service organizations [4]. Lean implementation is not only about implementing a set of tools, but more importantly about the application of methods, and lean principles that are managed systematically [5]. The two sides are mutually supportive, one side is that the company practitioners try and strive to implement and socialize the activities and concepts of lean, with the aim of always enhancing the process, to improve business performance. On the other hand, scientists and scholars do more in-depth research about the success of lean in the organization. This http://www.iaeme.com/IJMET/index.asp 993 editor@iaeme.com Hari Supriyanto and Yudha Andrian Saputra complementary two-sided journey has been running more than 50 years ago. The results obtained are positive and amazing; make every company have to think about lean concepts and applications. Throughout the journey, research, theory, and practice and the development of knowledge and interpretation, about the value stream process, furthermore, specifically developed philosophy, principles, and measurements related to "lean" and its applications. Confusion about lean concepts and applications in the field, resulting in an implementation approach with various tools, often starting and ending with misleading efforts, meaning just using tools without following the philosophy and methodology that underlies the implementation of lean concepts [6]. This paper tries to answer lean concepts and the challenges faced by organizations, when identifying and communicating lean, especially in industrial sports. 2. LITERATURE REVIEW 2.1. Lean Lean is a high business philosophy, which focuses on shortening waiting times, by reducing waste continuously, and always building creativity for process improvement and added value. Successful lean implementations will be able to help improve the learning culture and continue to improve all aspects of organizational performance. Lean is not only able to reduce costs, and improve quality; more important is that lean can generate companies to achieve extraordinary business growth. It is important to know that, all organizational employees know and see that top leadership supports the changes that are being made. The commitment of senior leadership to be directly involved in the implementation, transformation, and participation in activities to improve organizational performance, is a key factor, to achieve success. Personal experience from top management to think lean is a determinant of success in the company [10]; [11]. Top level managers must have a good understanding of lean and not only support it, without sufficient knowledge to make the whole process along the flow of values, but it will also be effective [12]. Toyota is a manufacturing company known as a lean symbol. The term "lean production" is defined, to describe manufacturing techniques developed over the past 100 years by Toyota Motor Company [7]; [8]. Toyota companies developed the same principles and philosophy, known as the Toyota production system (TPS) and included in Toyota's internal documents called "The Toyota Way" [9]. Every day Toyota has created a lean culture for employees at all levels that focus on continuous improvement. Toyota has achieved tremendous growth and financial success [13]. Other terms related to lean are continuous improvement (CI); just-intime (JIT); theory of constraints (TOC); total quality management (TQM); world-class manufacturing; and Six Sigma. Every occurrence of the improvement process is strongly influenced by the lean concept [14]; [15]. Leaders need to practice and learn lean, and by applying lean regularly in their daily activities, they will understand which parts have extravagant tendencies. One reason the CEO needs to develop lean skills personally is to find out what improvements can be achieved; thus there is no reason not to make improvements. Over the past 20 years, the service sector has been the main driver of the European economy (more than 70% of European GDP). This activity in the US is even greater, which is around 80% of US GDP. From these developments, it can be said that the service sector is the main source of economic growth. Therefore a substantial improvement in the field of productivity can be used as triggers for development and sustainable economic stability [16]. The transfer from the lean service theory to the practical approach is a challenge because it requires a change in the inner (operational) mentality for the application of lean thinking in the service sector. Appropriate service activities must include a clear understanding of http://www.iaeme.com/IJMET/index.asp 994 editor@iaeme.com Managing on Lean Service in Sports Industry services, and the characteristics/traits inherent in them. Services are defined as a set of consumable and directly damaged, benefits that have been provided by service providers for consumer needs [17]. The lean thinking paradigm can simply distinguish between waste and value along the value structure. Waste is the human activity that absorbs resources but does not create added value. Value is defined as the ability of a company to make a product or service, which is given to customers, is the right function, on-time delivery, the right amount and the appropriate price. Lean thinking in action is the identification and elimination of waste that is carried out continuously and leaves only value-added activities along the value stream [18]; [19]. Every action to identify and eliminate waste is a characteristic of the lean thinking paradigm. There is a gap between application and knowledge about lean. This happens because in running lean, there is a change in organizational culture, followed by changes in human resources. Several studies linking lean with organizational system change [6], its application to lean with human performance [20], and its application to lean by motivating job characteristics [21]. While, certain studies link an application to lean with sociotechnical aspects [22]. In addition, many concepts about organizational change such as discontinuous versus continuous, revolutionary versus evolutionary, episodic versus continuous flow, strategic versus operational, transformational versus transactional, and total systems versus local options [23]. They pointed out that one of the many principles and thinking of lean (kaizen) has a close relationship with the change (evolution) of organizational culture. This is the possible relationship between lean theory and paradigm thinking that can be explored more deeply. Traditional measures of lean performance are usually expressed in terms of cost, quality, safety, and delivery. Development of measurements is needed for performance output with the existence of a lean transformation to increase the credibility of lean applications [18]; [24]; [25]; [26]; [27]. Many researchers have built initiatives and foundations in the field of measuring "leanness" organizations, for example by using their Lean Enterprise Self Assessment Tool-LESAT [28]. 2.2. Lean Service The creation of organizational culture is an important platform for lean implementation. Highperformance companies are companies that are proactive with a culture of continuous improvement [29]; [30]. If the power holders in the organization (formal and informal), are rejecting lean, it will be very difficult to produce cultural changes and desired process improvements [31]. Organizational culture is the values, core beliefs, social norms, and habits, which govern the way a person acts and behaves in an organization. Organizational culture is an important factor for achieving success in lean implementation [32]; [33]; [34]; [35]. As shown in table 1, is five basic principles that can be considered in lean services. Emphasis on lean concepts is on the active role of customers and integrating customers into service value creation. The presence of customers in the service system is that customers change the role of employees into network values, which ultimately becomes an important part of making value streams. In service activities, the value will be defined and determined by the customer. Customer expectations and satisfaction are very subjective and not measurable through indicators. http://www.iaeme.com/IJMET/index.asp 995 editor@iaeme.com Hari Supriyanto and Yudha Andrian Saputra Table 1 Five basic principle in lean service principles Identify activities that create value Identify value streams definition Values can be generated in a service environment, and this value can be accepted/rejected by the end customer. In services, values are determined by customer needs, values are based on a sequence of activities that can satisfy customers. Information flow Focuses on optimizing information movements through a sequence of service activities, to generate value for customers. Pull Distribute customer requirements along the value stream, only what the customer wants. Thus the service quality can be defined by, the degree of harmony between expectations and customer perceptions that have been provided by service providers. Quality is data and experience obtained from consumer behavior. Therefore, the concept of building quality is cocreation; this means that this concept must be associated with service activities, management, and customer integration as inputs that are changed by the service process to be output with several levels of satisfaction [36]. Identification and determination of waste in the sector are complicated because its activities are intangible. One of the challenges in service organizations is developing the ability to identify and recognize waste, through data, analysis and customer experience. Some of the waste that can be identified from the service sector, table 2. Table 2 Waste from the service sector waste identified Over-Quality, Duplication Excessive activity, does not add value. Means adding activity time, and does not add value to services. Overproduction Work that has been completed, done longer than what the customer has set. Demand Failure, Lack of Customer Focus Underutilized resources There is a gap between customer expectations or perceptions. Potential employees, who are not in accordance with knowledge, ability, creativity, and skills. Manager's Fear of Change Management culture is afraid of change, does not encourage employees to be involved in the continuous improvement process. Delay Activity pending; from employees, or customers waiting for information, and from service providers. No Standardization, Excessive Variation Unnecessary Movements and/or Transportation There is no standardization in terms of procedures, processes, formats, managing products/services that expire. Resources (people or goods), not needed; physical transfer (from office to office) or virtual (approach, method, path or tool to do work). Service activities must include a deep understanding of services, and the characteristics inherent in them. Services can be defined as a set of disposable and fast-damaged benefits, prepared by service providers, for consumer needs, consumed and used by consumers [16]. The main characteristics of the following services. Intangibility: Service quality is based on customer perceptions and expectations. Variability and heterogeneity: Changing resources are http://www.iaeme.com/IJMET/index.asp 996 editor@iaeme.com Managing on Lean Service in Sports Industry information, concepts, and ideas. Variability is the result of less consistent, homogeneous and repetitive. Inseparability: Generation and consumption of services occur simultaneously. Damage: Services cannot be produced and stored for resale, and Lack of ownership. Top leadership in an organization is important for every employee to support organizational change. Leadership commitment to lean transformation for employees is a key factor in success. The best way shown by senior leadership is its commitment to being directly involved in activities and implementation, and participating in lean improvement activities. Continuous and regularly improved training is needed. To build lean training, opportunities are provided for all employees to actively participate, for the process of increasing knowledge and increasing the level of lean training [10]; [37]; [38]. Top-level managers must have a good and correct understanding of lean to be effective, and not just support it, without enough knowledge about lean [12]. 2.3. Methodology The lean methodology in the service industry, although there is involvement with lean principles, has something in common manufacturing context, although many must be redefined. Thus, lean concepts and methods must be reviewed for service activity applications. The three stages in this problem solving methodology are: 1. Intelligence phase. Consists of literature reviews; develop an initial mapping model. Build and develop the initial model in the form of a service blueprint. The aim is to collect data, to find out the entire service process and to create a framework for knowing fail-points (rework). 2. Analysis and improve phase. The aim is to analyze the emergence of waste so that the lead time of the process becomes higher. Failure in fail-point indications were found, then analyzed using root cause analysis (RCA). This step is key for improvement with the aim of increasing performance by implementing alternative solutions. 3. Solution phase. The aim is to summarize all the findings and alternatives that will be done. Another goal is to make modifications/improvements to the initial service blueprint so that the process is even simpler. Make final recommendations with the aim of summarizing failprocess, relevant findings, and applying new blueprints in the organization to achieving success and improvement to sustainable lean. 3. CASE Early identification of business systems, described in the form of mapping for all service activities, in the form of service blueprint. The service blueprint describes the steps to deliver services in the form of simultaneous activities (series of activities), the roles of consumers and employees, and all elements forming the service system. Figure 1 below shows the service blueprint for rent sports building. The main problem is when you want to rent and schedule the use of the field for training or tournament needs. Service quality can be described in the form of service attributes, which can be directly felt by consumers from two sides, namely perceptions, and expectations. All service attributes can be grouped into certain service dimensions. Based on the questionnaire distribution, information is obtained in the form of a gap, from the difference in the value of perceptions and expectations of consumers. A gap can be positive or negative. If there is a negative gap value (-), it means that consumers expect not to be fulfilled by the service provided otherwise. The problem is seen and indicates high expectations and low perceptions. These attributes are air temperature, room cleanliness (toilet), field schedule, and locker room, janitor, and front office services. http://www.iaeme.com/IJMET/index.asp 997 editor@iaeme.com Hari Supriyanto and Yudha Andrian Saputra Figure 1 Initial (old) blueprint service sport industry The service attribute is the voice of the customer (VOC) which must be considered more specifically from management. The discovery of attributes whose expectations have not been met is then designed as the house of quality (HOQ) to build a technical response. This technical response can be described as the company's ability to fulfill consumer desires. There are 4 possible response techniques that can be generated, namely adding supporting equipment; giving training and making SOPs; adding employees and employee shift hours. Problems that arise in the category of difficulties finding and managing schedules, can be traced through root cause analysis (RCA) as listed in table 3 below. Table 3 Root cause analysis (RCA) type of disorder there is no clear list of rents why 1 why 2 why 3 why 4 difficulty setting a schedule employee negligence recording bad schedule there is no hourly usage record Schedule is only 1 person the note taker does not understand the schedule arrangement scheduling notes are not clear practice is often done unscheduled Based on the problems that arise, three alternatives to improve service quality, namely, providing Touchscreen LCD facilities; providing training and making a system operating procedure (SOP) and its applications; adding employees and employee shift hours. The criteria used to assess alternative improvements are service speed, area arrangement and scheduling provisions. This alternative has advantages such as, helping employees to manage space such as food court, entertainment, storefront, and parking; change the behavior and assessment of employees in space/area and cleanliness; helping and making it easier for consumers to set a rent schedule. http://www.iaeme.com/IJMET/index.asp 998 editor@iaeme.com Managing on Lean Service in Sports Industry Figure 2 New blue printing With the new blueprint, the management needs to add supporting equipment such as LCD touchscreens that can be used to see the overall schedule of field use directly and quickly. Consumers can choose an empty schedule quickly and immediately input the appropriate time/schedule on the LCD touchscreen, as sawn in figure 2. Blue print formed is based on a set of conceptual and generic principles that are developed in the form of a structured framework, which can be used as a roadmap for developing lean service concepts. 4. CONCLUTIONS Companies that implement lean require a framework for their implementation to be successful and sustainable. Lean thinking has the potential to be applied in the sports service industry as an effective way to reduce costs and increase customer satisfaction. All of that, cannot be separated from the management commitment and the improvement culture that is built continuously. In the case taken, it turns out that lean applications are very useful for increasing organizational performance. To overcome this problem, a service approach is used called a new blue print that has been improved based on old weaknesses. Knowledge and practices and tools used in lean are identified together. For this reason, changes need to be made in the organizational culture and all human resources, and furthermore, it can be proven the benefits of lean implementation. This case shows the success of lean applications, whereas in fact lean works in some cases and not others [19]. 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