An introduction to Areva T&D FSSC lean service - sharedserviceslink.com

An introduction to T&D FSSC

Lean Service

Marcus Pinnegar & Laetitia Simpson

London, March 18th

2 2Areva T&D FSSC Lean Service –– Copyright Areva T&D

Agenda

� Introduction

� Lean Foundation

� Methodology

� Continuous Improvement

� Results & Key Success Factors


Introduction to Areva & Areva T&D

� Operating Income*

€397 million

� Employees*

25 248

� Sales revenue*

€4.33 billion

2/3 Nuclear

1/3 Transmission & Distribution

*2007 figures

� Countries

100


Introduction to Areva T&D FSSC

� Total costs

€12 millions

� Employees

400

� Market Share

70%

of 250 T&D Units

� Locations

10

�Organisation – Northern Europe example

�AP invoices

0.8 million

M.Pinnegar

North Europe

FSSC Manager

RegionalFinance Director

J.Lambert

Global FSSC

Director

CFO

VP Finance Systems &

process

�Main activities in all FSSC

Accounts payables

T&E

Accounts receivables – cash application

General Ledger, Fixed Assets

Treasury

+ in some FSSC : C&Collection, Reporting


Lean Foundation - Commitment from Management


Lean Foundation - Lean Culture Training

« Forget any pre-conceived ideas."

Shigeo Shindo


Lean Service Roadshow 06-07

NOV 06NOV 06OCT 06OCT 06

DEC 06DEC 06

JUL 06JUL 06

OCT 06OCT 06

OCT 06OCT 06

AUG 06AUG 06

SEP 06SEP 06

NOV 06NOV 06

OCT 06OCT 06

Lean Service Training + workshop achieved

JAN 07JAN 07

JUL 07JUL 07

FEB 07FEB 07

JUL 07JUL 07


Lean Foundation – Genba, Genbutsu, Genjitsu

“Genshi Genbutsu”

“Go & See for yourself”

Kiichiro Toyoda

“If we can’t measure it, we can’t improve it”

Lord Kelvin


Project ManagerProject Manager

Sourcing ManagerSourcing Manager


SourcingSourcing

Sourcing SecretarySourcing Secretary

Project Site ManagerProject Site Manager

Value Stream Mapping – Example 1/2

SupplierSupplierSupplier

Issue Good Receipt Inspection Report

Receive Material Check Quality

ReceptionistReceptionist Receive mail if courrier

“receipt date”

GR in SAP

Parking

Prepare invoice covering letter

Check as per dispatch instruction

Collect Invoice & dispatch

OKYes

No

Sort Invoice by day

Prepare & Print Excel sheet of invoices

Sign

Check & Sign

Approve & Sign

21Days

Av

era

ge

Le

ad

tim

e

5 days

AP Accounts Executive AP Accounts Executive

10

days

Print Cheque & attach with docPrint Cheque & attach with doc

Check documents Check documents

Post in SAP & write posting N°


Check weekly in SAP the payments due


Clear payment in SAPClear payment in SAP

Write Cheque N˚Write Cheque N˚

Create Cheque in SAPCreate Cheque in SAP

Sign PA onlySign PA only

Unit FSSCUnit FSSC

Unit FCUnit FC

Senior ManagerSenior Manager


Sign ChequeSign Cheque


6

days

PA

First Map & Measure basedon interviews in office,

Internal Control Assessement, data extracts

from system …


Project ManagerProject Manager



SourcingSourcing

Sourcing SecretarySourcing Secretary

Project Site ManagerProject Site Manager

Value Stream Mapping – Example 1/2

SupplierSupplierSupplier

Issue Good Receipt Inspection Report

Receive Material Check Quality

ReceptionistReceptionist Receive mail if courrier

“receipt date”

GR in SAP

Parking

Prepare invoice covering letter

Check as per dispatch instruction

Collect Invoice & dispatch

OKYes

No

Sort Invoice by day

Prepare & Print Excel sheet of invoices

Sign

Check & Sign

Approve & Sign

21Days

Av

era

ge

Le

ad

tim

e

5 days

AP Accounts Executive AP Accounts Executive

10

days

Print Cheque & attach with docPrint Cheque & attach with doc

Check documents Check documents





Clear payment in SAPClear payment in SAP

Write Cheque N˚Write Cheque N˚

Create Cheque in SAPCreate Cheque in SAP


Unit FSSCUnit FSSC

Unit FCUnit FC

Senior ManagerSenior Manager




6

days

PA

Eliminateregister

Make GR as soon as possible

Removeparking

Reduce thesecontrol to min.⇒Target 100% PO invoices – sign PO

⇒ Control of remaining non PO

invoices & invoiceswith variance vs PO

Removethis control

Eliminateregister

Removethis list

GR preparation

by Reception area

Quick

wins


Lean Foundation - Standard

“Where there is no Standard there can be no Kaizen”

Taiichi Ohno

Standard

D

PA

C


5S – Standardize offices

» SEIRI / SORT – classify between necessary and unnecessary

» SEITON / STORE – keep needed items in the right place for easy retrieval

» SEISO / SHINE – keep your office clean

» SEIKETSU / STANDARDIZE – Set as a standard the first 3S

» SHITSUKE / SUSTAIN – Make a habit of maintainingestablished procedures

» SEIRI / SORT – classify between necessary and unnecessary

» SEITON / STORE – keep needed items in the right place for easy retrieval

» SEISO / SHINE – keep your office clean

» SEIKETSU / STANDARDIZE – Set as a standard the first 3S

» SHITSUKE / SUSTAIN – Make a habit of maintainingestablished procedures

� Full Standardization for more flexibility =>efficiency

Archiving

Work station

Cabinets

Mailing room

Why 5S is key ?

� Employee Satisfaction EHS,

Friendly environment

� Visual Management Visibility of non standard

Dashboards


Continuous improvementsKaizen

“A journey of a thousand miles start with a single step”

Confucius


Continuous improvement Methodology

KaizenWorkshop

Satisfaction Survey

FSSCMetrics

LeanServiceActions


Lean Service Temple

STANDARD : VALUE STREAM MAPPING, 5SSTANDARD : VALUE STREAM MAPPING, 5S

FMEA

MULTISKILLS MATRIX

FMEA

MULTISKILLS MATRIX

POKA

YOKE

VISUAL CONTROL

POKA

YOKE

VISUAL CONTROL

LEAN

SERVICE

LEAN

SERVICE

KAIZENKAIZEN

MANAGEMENT COMMITMENTMANAGEMENT COMMITMENT

SAN GEN SHUGI / TEAM WORKSAN GEN SHUGI / TEAM WORK

On Time DeliveryOn Time Delivery 0 Defect0 Defect

LEAN CULTURELEAN CULTURE


What about Results ?FSSC China Pilot

7 500

4 d.

12 d.

80%

AFTER

2 500

AP+T&E

documents / p. /

year

12 d.

T&E claims

payment Lead time

Average nb of days

22 d.

AP Posting Leadtime

Average nb of days

43%

Office Lay out

% staff satisfied

BEFORE


What about resources needed to be successful?T&D experience

»Lean Service Roadshow

»1 FTE


»1 FTE

07/06 07/07 07/08

»FSSC China Pilot

»1 FTE Lean facilitator

»FSSC China Pilot


»FSSC India Pilot


»FSSC India Pilot


Lean Service deploymentLean Service deployment

Kick

Off


What could have been done differently ?

»FSSC China Pilot»FSSC China Pilot

»FSSC India Pilot»FSSC India Pilot

12 months

Kick

Off



6 months

Lean Service deploymentLean Service deployment


Key Success factors

� Identify « burning platforms » and be opportunistic

� Don’t try to build the ultimate programme

� Make it a « workfloor » tool not a HQ programme

� Identify quick wins and standardize fast

� Sell once first success come

� Step by step improve


Conclusion

“Improvement has no limit”

Standard

D

PA

C

Documents

An introduction to Areva T&D FSSC lean service - sharedserviceslink.com