ean in Business Environment
What we do
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Lean in Business Environment
Lean Objectives
Lean Overview To Understand Lean Thinking &
What is lean action oriented Lean concepts
Lean Progression
Introduction to Lean thinking
Learn Basic Tools & Techniques
Benefits of Lean
for Identifying & Eliminating
Wastes
Differentiate Between Value
Added and Non Value Added
Activities
Designing implementations plan
around process improvement in
the Lean way
Lean Progression
Enterprise-level Lean
1999
multi-company value
stream optimizations
Ford opens River Rouge
1927 1997 Enterprise-level Lean
complex
roll-out
1996
1913
First automobile assembly line at Lean Thinking
Highland Park published
MIT International Motor Vehicle
1990
Research program
Dr. Jim Womack, Research Director
Coined the term „Lean production‟
1850 Mid 1980s US auto industry crisis
Eli Whitney builds muskets
with interchangeable parts
1750 1970’s Toyota Production System (TPS)
Industrial Revolution begins
1950’s developed in Japan by Taiichi
mass production
Ohno
Origin in Mass Production days, thrives in all industries today
Lean –Inspiration & Evolution
Henry Ford & River Fredrick Taylor and Frank Gilberth & Piggly Wiggly Store
Rouge factory Time & Motion ‘One best way of First self-service
Continuous flow & studies bricklaying‟ Supermarket & no
mass production Science to Business 18 to 4.5 inventory
Womack and Jones Shigeo Shingo Indy 500
Taiichi Ohno
The Machine that Poka Yoke, SMED Fast refueling of race
TPS
Changed the Word ,ZQC cars
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Lean –Inspiration & Evolution
1908
Before: cars were built in one spot After: Ford used a big rope and
and the workers moved from car to winch to pull the cars along the
car. This was called the “gypsy assembly line and kept the workers
production” system. stationary
1902 1937
TOYOTA
For Long, Toyota
Motors Pioneered
Lean Operations !!
Sakichi Toyoda, founder of the Toyota Toyoda Motor Company Ltd. Is
group, invented an automated loom created from the Toyoda Automatic
that stopped anytime a thread broke. Loom Works
One at a Time is History…Today Is All About Flow & Lean
What is Lean
Lean is a systematic, continuous improvement
approach that focuses activities on reducing waste
while aligning them to an overall growth strategy.
Leaders of a Lean organization are dedicated
to developing Lean thinkers and a continuous
improvement culture.
A Lean Enterprise essentially eliminates
waste throughout the business. Waste costs
you resources, but adds no value to the
customers you serve.
These non-value-added activities typically
equal 90 percent of a process; a mere 10
percent of your processes adds value for your
clients.
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Lean in IT industry
Order To Ship Cycle Time 5Min 11 Days
Strategy Make to Order Build To Inventory
Working Capital ($9M) $12B
Op Margin 8% (2%)
Inventory Turns 121 10
ROI 34% 3%
Lean at Dell
Introduction to Lean
Thinking
A principle driven, tool based philosophy that focuses on eliminating waste
so that all activities/steps add value
from the customers perspective.
A strategy, philosophy, process and leadership approach for operating in a superior way.
Results include:
Reduced cycle times (product development and production)
Increased quality
Reduced costs and inventory
Increased capacity potential
Improved customer service
High levels of worker involvement, ownership and commitment
Improved financial returns
Lean concepts apply across all processes and industries
So, why do I need Lean?
New ways to think
about problems
Principles
An improvement
Concepts methodology focused
on action
&
Techniques
New problem Process
solving tools
and concepts
Improvement Solutions
methodology Simple Complex
Known Just Do It!! Lean!!
Causes
Unknown Ask an Expert!! Six Sigma
We Need Lean to be Leaner Quickly…Let us start it!!
Lean Benefits
Cycle Time
Wait Time
(non value
add) Befor
Work Time e
(value add) After Same work
completed in
less time
Productivity
Cost
Customer satisfaction Cost/Chaos
Defects
Profit
Lead time
Customer responsiveness
Inventory
Capacity
Space
Quality
Waste! Cycle time
Cash flow
Relentless FocusOonntRimeedudceilinvgernyonvalue adding activities
What is Value add ?
Specify Value
Waste:
Specify value from the standpoint of the Activities that add no value, add
end customer cost and time
Ask how your current products/services
and processes disappoint your Symptoms; need to find root
customer‟s value expectation: causes and eliminate them
price? 7 types of waste
quality?
reliable delivery?
rapid response to changing needs? I
• Pure Waste
fundamental definition of the • Incidental work
product?
• Value
Typical Operation: 1-10% Activities are Value Adding
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Identify Value Stream
Value stream
Identify all of the steps currently required
to move products from order to delivery All activities, both value added and non-value
added, required to bring a product (or provide a
capability) from raw material (initialization) into
Challenge every step: Why is this necessary?
the arm of the customer
Would the customer think the product is worth less
if this step could be left out?
Many steps are only necessary because of the 3 Main Value Streams
way firms are organized and previous decisions 1. Raw material to customer
about assets and technologies
2. Input to Output e.g.
Customer call to Resolution
Invoice to payment
Document to report
3. Concept to launch
4. Order to cash
Mapping the Value Stream – See the whole and improve the system
Implement Pull
Nothing is done by the One more analysis
upstream process until the Okay please!
Associate
downstream customer signals Customer
the need.
Direct efforts to let the
customer pull product or
service though the process.
Make the process responsive to
customer needs only.
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Where do we start ?
It Is All About Waste Elimination!
• Waste = Any human activity which absorbs resources but creates no
value.
• Developing a theoretical understanding of waste helps us to “see” waste as it occurs.
• Removing waste requires intuition, creativity, courage, and strength.
“All we are doing is looking at a time line 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, Toyota Production System 1978
“A keen eye for waste remains keen no matter where it looks.”
The Seven Deadly Wastes
Examples of Wastes
Navigating multiple screens to input data
Printing Material; Ergo…walking, bending,
twisting; Looking for data / info
Defect
D s
Credit applications awaiting approval
People Info awaiting an overnight “systems batch
Inventory run”; Manual decisions; System downtime /
response time
I Processing before next operation is ready;
Motio Processing prior to need
n Navigating multiple screens to input data;
Process M Extra Multiple ways to do the same task; Printed
Processing material; Duplicate entries
Personal data incorrect; Missed customer
E Waiting due dates; Data entry errors; Rework
Pipeline of Applications
Overproductio Multiple applications awaiting approval
Output Unnecessary document / data storage
W n
Batching Invoices/Application on a desk
Transportatio
n Delivering hard copies
O Shipping hard copies requiring signature
LeTantools & techniques facilitate remove MUDA in a
process!!!
8th Waste: Employee KSAs in the Office
Employee KSAs in the Office
(Knowledge, Skills and Abilities)
• The waste of not using people’s mental, creative, and
physical abilities
• Examples of people waste in the office:
- Not delegating work to the proper person
- Involving yourself in someone else’s responsibility
- Micromanagement
Non Value-Added activities
Clues for NVA identification
Types of NVAs
Re-evaluate
Re-work Recall
Re-design
Delay Re-test
Re-type
Repeat
Over Processing
Re-issue
Reject
Preparation/Set-Up Re-make
Re-check
Inspection / Review Revise
Return
Move Re-measure
Re-ship
Re-work
Re-do
Identify the Wastes in you system
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Kaizen Name :
Issues and objectives : To define and streamline a process for sending out follow-up emails on tickets
Team Measure of success / KPIs
Kaizen Leader : Stacy Reduction in the number of follow-ups emails to reduce
Members : Rahul agent interactions on tickets
Kaizen Sponsor : Sam Elimination of wait time to send out ticket follow-ups by
agents manually
Reduction in number of ticket follow-up reassignments to
reduce ticket ageing
Business Case
Benefits - Brings a positive impact on ticket follow-ups by eliminating the manual agent activities, impacting the
reduction in waiting time for agents to respond on tickets. This, in turn will improve the overall SLA for the tickets and
eliminate the multiple follow-ups made on 20,000 tickets (approx.) every month in Freshdesk.
Why at this time – This project will help in bringing the best customer experience and faster resolution rates.
Impact of not doing it - This would impact the customer journey and resolution KPIs violation
Current Issues and objectives
Current Issues observed Proposal (Initial Proposal)
No uniform process for sending out ticket follow-
Bring in a defined process by sending out „x‟
ups
number of follow-ups on L1 and L2 tickets
Resolution violation on tickets which have been
Automatically send out follow-up emails via
reopened during weekends/out of agent business
automation feature
hours
Automatically resolve L1 tickets, change tickets to
Unnecessary multiple follow-ups sent by agents
open status for L2 tickets after „x‟ number of
increasing agent interaction percentage and
automatic follow-ups.
leading to negative customer experience
Manual action to send ticket follow-ups by agents
and the wait time involved
Summary of benefits
Better Resolution time with lesser number of interactions.
Improved customer experience.
THANK YOU
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