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

Therefore:Therefore: Any activity that does not directly produce the output is Any activity that does not directly produce the output is wastewaste

Non Value Added

This is a more objective judgmentThis is a more objective judgmentThis is a more objective judgmentThis is a more objective judgment

Non Value Added sometime called waste.Non Value Added sometime called waste.

Waste is:Waste is:"anything other than the minimum amount of equipment, materials,parts, "anything other than the minimum amount of equipment, materials,parts, and working time absolutely essential to work."and working time absolutely essential to work."

The Rough Guide to Waste is:The Rough Guide to Waste is:

Difficult to get a team to agree what is absolutely essential!Difficult to get a team to agree what is absolutely essential!Difficult to get a team to agree what is absolutely essential!Difficult to get a team to agree what is absolutely essential!

This is objective, accurate and challengingThis is objective, accurate and challenging- giving a strong basis for agreement- giving a strong basis for agreement

This is objective, accurate and challengingThis is objective, accurate and challenging- giving a strong basis for agreement- giving a strong basis for agreement

Every activityEvery activity should be considered as waste, should be considered as waste, unlessunless it: it:

• Meets an explicit customer requirement Meets an explicit customer requirement • Cannot be shown to be performed more economicallyCannot be shown to be performed more economically

If the activity does not meet a known customer requirement or could be If the activity does not meet a known customer requirement or could be performed more economically, why continue in the same manner?performed more economically, why continue in the same manner?

If the activity does not meet a known customer requirement or could be If the activity does not meet a known customer requirement or could be performed more economically, why continue in the same manner?performed more economically, why continue in the same manner?

Definition of What Is Not Waste

The 7 Wastes

• Waiting

• Over-produce

• Rework

• Motion

• over-Processing

• Inventory

• Conveyance

Waste is everywhere!Waste is everywhere!The elimination of waste is a massive opportunity!!The elimination of waste is a massive opportunity!!

Lean Strategy is the best way to eliminate wasteLean Strategy is the best way to eliminate waste

Elimination of 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 CHARTPROCESS CHART

ReceiveReceiveapplicationapplication

InspectInspect

Table ATable A

Wait for Wait for checkcheck

ApproveApprove

KeepKeep

0:00 0m0:00 0m

0:40 5m0:40 5m

2:15 35m2:15 35m

8:00 35m8:00 35m

8:10 36m8:10 36m

9:00 48m9:00 48m

CumulativeCumulative Time DistTime Dist

Process Mapping

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

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ApplicationApproval

Standard application in Hand

Applicatio nApproval

Standard Sapplication in Hand

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1 Staff1 Staff

One Piece Flow - FlexibilityBaton passing zoneBaton passing zone

3 Staffs3 Staffs

4

Implement Pull

Kanban: A Simple Real Example

CustomerCustomerTillsTillsBurgerBurger

RegulatorRegulatorKitchenKitchen

As one type of burger is consumed . . .As one type of burger is consumed . . .They are removed from the regulator . . .They are removed from the regulator . . .And then replenished by the kitchen . . . And then replenished by the kitchen . . . Not made to a forecast and pushed at the customerNot made to a forecast and pushed at the customer

5

Deployment Plan

Executive/ Top Management BriefingExecutive/ Top Management BriefingExecutive/ Top Management BriefingExecutive/ Top Management Briefing

Lean Deployment Committee FormedLean Deployment Committee Formed Lean Deployment Committee FormedLean Deployment Committee Formed

Deployment Plan PerformedDeployment Plan PerformedDeployment Plan PerformedDeployment Plan Performed

Projects Identified (Top 3 wastes)Projects Identified (Top 3 wastes)Projects Identified (Top 3 wastes)Projects Identified (Top 3 wastes)

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Pursue perfection by CompletePursue perfection by Complete EliminationEliminationPursue perfection by CompletePursue perfection by Complete EliminationElimination

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Lean Deployment Plan

Phase 1

Lean Awareness

Phase 2

Waste Identification

Phase 3

Improve Flow

Phase 4

Implement Pull

Phase 5

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 measureApproach:• 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

0,01,02,03,04,05,06,07,08,09,0

10,0

Order levelling

Material Control

Continuous Flow

Visual Controls

TPM

Quality

5S

Training

Team Member

Involvement

Flow

Assessment Score Target Score

Lean Assessment Radar Chart

Self-evaluation tool based

on questionnaire

Gap-analysis: current vs.

future lean state

Lean - Conclusions

Being Lean is Fun !