Amway’s Lean Office Journey
West Michigan HDI
October 10th, 2012
Agenda
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Welcome
Jill Bierens – Manager, Global IT Service Desk
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Lean Office Overview
Stephen Sweers – Manager, OPX Lean Office
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Amway IT Results
David Drake – Lean Leader, IT
Jill Bierens
Daniel Uecker-Herman – Lead Service Desk Technician
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Q&A
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Optional Tour: IT Operations, ITAM, Lean Cell
About Amway
• Founded in 1959
• Second largest direct-selling company in the world
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Annual sales of more than $10 billion in 2011
More than 450 products
80 countries and territories
20,000 employees
Six million entrepreneurs selling Amway products around the world
More than 900 patents granted and more than 800 pending
The Heart of Amway
Amway’s Global Service Desk
• Metrics
 Nearly 6,000 customers in North America and SE Asia
 Average 13,000 incoming contacts per month (all channels)
 Average 5,000 calls per month
 Live answer = 85%
 First Contact Resolution = 75%
 Eight Service Desk Technicians
 Four User Management Technicians
Amway’s Global Service Desk
• Current State
Caller
Ada HQ
6:30am–7:30pm
Malaysia
7:00am-7:00pm
• Strategy
• Four regions
• Follow the Sun
• Standardized processes
IT Operations
Weekends & Holidays
WHY LEAN OFFICE?
• Identify and eliminate wasteful process steps in a systematic way
• More than 60% of the cost of a product or service is attributable to
administrative processes.
• Quality and service improve
• Turnaround time shortens
• Costs go down and profits go up
• The customer is ultimately delighted
• Resources (people and money) become available to be redeployed to
further grow the business
KAIZEN DEFINED
Whipped
Back
Sheep
Self
Altar
Kai
“change”
(revolutionary)
zen
“good”
(sacrifice)
LEAN OFFICE ISSUES
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Quality: How to improve it?
Cost: How to reduce it?
Delivery: How to ensure it?
Talent: How to develop it?
ELIMINATE WASTE
• The 8 Wastes
Defects
Over-production
Waiting
Not engaging people
Transportation
Inventories
Motion
Excess processing
ELIMINATE WASTE
• Unevenness
 Can often be eliminated by managers through level scheduling and
careful attention to the pace of work.
• Overburdening
 Workers by requiring them to operate at a higher pace, with more
effort and for a longer period of time than appropriate workforce
management allows (target utilization @ 85%).
TRUE NORTH METRICS
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Right 1st time Quality Improvement
Delivery/Lead Time/Flow Improvement
Cost/Productivity Improvement
Talent Development
“These are a select few measures, and if you improve them each year,
‘good things’ will happen.”
– George Koenigsaecker
LEADERSHIP BEHAVIOR
Critical Questions
Traditional Management
Lean Management
What is a problem?
The result of someone messing up
A deviation from Standard
What is the cause?
The “Individual” (“5 Who’s”)
The “System” (“5 Why’s”)
Who is responsible?
The person who makes the
mistake (5% of the time)
Management (95% of the time)
What should the individual who
makes a mistake do?
Solve the problem on your own if
at all possible
Call attention to the problem for
assistance, to learn & to avoid the
problem in the future
What are the assumptions about
people?
People will not accept blame
unless forced to
People will feel empowered if they
receive positive support for solving
problems
Problem Solving Skills
Some have it, some do not
It can and must be taught
THOUGHT-PROVOKING QUESTIONS
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To what extent are your Function’s goals linked to Enterprise Goals?
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Can you identify all of your Function’s internal and external customers?
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Do you know all of the products and/or services your Function provides
its customers?
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Do you know your customer’s requirements for your Function’s products
and/or services?
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Do you measure Functional performance on the basis of how well your
products and/or services meet your customer’s requirements?
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Can you identify your Function’s internal and external suppliers?
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Do you establish clear goals for the products and services provided to
your Function by your suppliers?
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Do you have documentation of your Function’s role in the cross-functional
value streams to which it contributes?
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Do you measure your Function on the degree to which it contributes to
cross-functional value streams?
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Do you measure the “upstream” performance of the processes that flow
through your Function?
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Do you have tracking and feedback systems that effectively and efficiently
gather performance information and provide it to the people who need
it?
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Do you have the skills to troubleshoot (remove the root causes of)
performance gaps in your systems?
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Do you spend a large percentage of your time working to improve the
interfaces between your Function and other Functions and between subunits within your Function?
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Do employees in your Function work in an environment where their job
design, job goals, feedback, rewards, resources and training enable them
to make their maximum contributions to process efficiency and
effectiveness?
SUCCESS FACTORS
Factors for success:
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Clear Business Case
Leadership Endorsement
Clear Roles & Responsibilities
Dedicated Internal Resources
Structured, Systematic Method
Simple, True North Metrics
Frequent Reviews
DEPLOYMENT MODEL: PHASE 1 “STABILITY”
What:
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Improve Internal Process Workflows and Reliability
Standardize Work Processes
Improve Process Throughput Time
Reduce Clerical Errors (implement mistake-proofing techniques)
Establish “Lean Plans”
Where:
• Transactional Business Processes (ex: Idea-to-Market, Procure-to-Pay, etc.)
• Key Functional Areas (ex: Planning, Procurement, QA, R&D, IT, Sales, Finance)
Impact on:
• Throughput Time Variation (Operational Lead Time Improvement)
• Right 1st Time Quality Improvement
LEAN OFFICE SPECIALIZATION: INSTABILITY
OFFICE EMPLOYEES SPECIALIZATION
Breadth of Knowledge
Employees typically retain 80% of the process
knowledge.
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Specialized work
No level loading
Work duplication
No realization of waste
LEAN OFFICE SPECIALIZATION: STABILITY
OFFICE EMPLOYEES GENERALIST
Shared Knowledge
• Multi-Skilled
• Multi-Process Handling
• Level loaded @ 85% of Capacity
Skills/Training Matrix
LEAN LEADER STANDARD WORK
• Assess efficiency of Functional & Cross-Functional business processes.
• Develop Functional “Lean Plans” aligned with Enterprise Strategy.
• Enable improvement by providing kaizen breakthrough method & support.
• Create expectation for annual improvement in:
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Right 1st Time Quality
Productivity (Cost)
Delivery (Lead Time)
Talent
• Encourage active sharing & adoption of best practices.
GETTING STARTED: ACTIVITY
1. What are the top 2 or 3 most costly outputs (products or services) your “lean
office” makes and delivers to your customers? Or, what causes you the most pain?
Brainstorm!
2. Select one output (product or service for your customer), assemble a team and
together explore using the SIPOC Tool (Supplier/Input/Process/Output/Customer).
3. Plan your 3-5 Day Kaizen Event using your completed SIPOC as a guide (hint: you may
want to include the voices of suppliers, processors, customers and “outside eyes” as
well).
4. Execute the Kaizen Breakthrough Method…. again, again and again (5X)!
SIPOC
Supplier
• Meijer
• Kitchen
Inputs
(Requirements)
• 36 Minutes Total Time
• 2 ea Eggs
• ¼ Cup Water
• ½ Cup Vegetable Oil
• 8” X 8” Pan
• Shortening or Cooking
Spray
• Large Mixing Bowl
• Wire Whip or Large
Spoon
• Electric or Gas Oven
capable of reaching 350F
• Cooling Rack
• Knife
• Spatula
• Serving Plate
Process
(Transformational, Value-Creating Steps)
1.
2.
3.
4.
5.
6.
7.
8.
PREHEAT: oven to 350F for glass or
metal pans, 325F for dark or non-stick
pans.
GREASE: bottom of pan with shortening
or cooking spray.
MIX: empty brownie mix, eggs, oil and
water in large bowl.
STIR: until well-blended (about 50
strokes).
SPREAD: in greased pan and bake
immediately.
BAKE: following times listed per pan
size (ex: 8” X 8”: 42-45 Minutes. Add 35 minutes for dark or non-stick pans.
DONE: when inserted toothpick 1” from
edge of pan comes out clean.
COOL: completely in pan before cutting
and serving.
Outputs
(Requirements)
• 2” X 2” Fudgy
Brownie
• Warm & Gooey
• Served on 6”
Serving Plate
Customer
• Annie Sweers
KAIZEN BREAKTHROUGH METHOD
1. Pre-Event
Planning
2. Event
Execution
Kaizen Sponsor Secured?
Kaizen Team Trained, Ground Rules
Established.
Kaizen Team Leader assigned?
Current State Condition Identified.
Kaizen Target Area Selected/Scoped?
Opportunities for Improvement Defined.
Kaizen Dates & Times Scheduled?
Future State Improvements Implemented
& New Process Standardized.
Kaizen Team Room Scheduled?
Kaizen Team Members Assembled
(Rule of 1/3’s, SIPOC)
Kaizen Supplies Collected?
Kaizen Pre-Work/Data Collected?
3. Post-Event
Monitoring
Catering Scheduled?
Kaizen Training Material Prepared?
Management Report-Out Scheduled?
Visual Controls are in place, Maintained &
Continuously Improved.
Standard Work Audits are Conducted, Economic
Benefits calculated & Results Communicated.
Weekly Kaizen Newspaper Accountability
Meetings Conducted.
Management Report-Out Created &
Delivered.
Adhere to the Improved Process, Continue
to Improve & Retrain After Each
Improvement.
KAIZEN BREAKTHROUGH METHOD: RESULTS
Current State Process (7 Days)
WASTE
7 Days
V/C
56 Minutes
Kaizen
Value-Creating
Work
Waste
WAITING
2 Days
(2 Days)
V/C
10
Mins
Lean IT: Impact on Amway
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Service Desk
Data Center
IT Asset Management
Operations
Voice Telecom
Release management
Application Development
Service Desk
• Corporate data stores
 Average of 100 requests per month
 Original process plagued with excessive active and wait times
 Active time reduced from 45 minutes to 15 minutes
 SME provides clear direction on users’ needs
 Process to be leveraged globally
Service Desk
• Granting Remote Access
 Focused on providing correct access without hand-offs
 Ensuring we meet PCI compliance requirements
 Decision tree developed and training provided for SD staff
 Standard work reduces training time
• Returned capacity = 1,400* hours (Jan-Aug 2012)
* Includes time savings in IT Security and Network Services
What Have We Learned?
• New concept to IT
 Lean is traditionally associated with manufacturing
 Many of the things we do have a production flow to them
• Balance between focusing on results vs. learning
• Staff hesitation to act without management direction
 Empowerment is critical
 Innovation, learn by doing
• Quantified improvements vs. observed improvements
What Have YOU Learned?
QUESTIONS
Tours
• Service Desk
• IT Operations
• PC Lifecycle Lean Cell
…Please gather in the lobby…
David will be your guide