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 !