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OPERATIONAL EXCELLENCE IN YOUR OFFICE: HOW TO ACHIEVE AUTONOMOUS VALUE STREAM FLOW
Kevin Duggan, Author Founder, Institute for Operational Excellence
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KEVIN J. DUGGAN
• Renowned expert in applying advanced leantechniques to achieve Operational Excellence
• Author of four books on the subject• Kevin has guided many major corporations
worldwide, including FMC Technologies,Chromalloy, Aetna, SpaceX, Caterpillar, Pratt &Whitney, Singapore Airlines, Sikorsky, IDEXCorporation and Parker Hannifin
• Featured on CNN and the Fox Business Network• Frequent keynote speaker, master of ceremonies,
and panelist at international conferences
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KEVIN J. DUGGAN
• Kevin has assisted many major corporations worldwide including FMC Technologies, Chromalloy, Aetna, SpaceX, Caterpillar, Pratt & Whitney, Singapore Airlines, Sikorsky, IDEX Corporation and Parker Hannifin
• Frequent keynote speaker, master of ceremonies, and panelist at international conferences, and has appeared on CNN and the Fox Business Network. copyrig
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IMPROVING FLOW IN OFFICES
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CONTINUOUS IMPROVEMENT
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THE NORMAL PATH TO BETTER
Sustain Improve
Sustain Improve
Sustain Improve
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OPERATIONAL EXCELLENCE
Mature lean company
TIME IN YEARS
LEVE
L O
F IM
PRO
VEM
ENT
1 5 10
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OPERATIONAL EXCELLENCE
OPERATIONAL EXCELLENCE
TIME IN YEARS
LEVE
L O
F IM
PRO
VEM
ENT
1 5 10
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Answering the Tough Questions…
THE “JUMP” TO OPERATIONAL EXCELLENCE
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Why do you do continuous improvement?
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What is the best way to do continuous improvement?
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How do you know where to improve next?
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Why do you strive to create continuous flow?
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What causes the death of flow?
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What would your office look like if you applied every continuous improvement tool?
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Where will your improvement journey will take you?
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1. Why do you do continuous improvement?
2. What is the best way to do continuous improvement?
3. How do you know where to improve next?
4. Why do you strive to create flow?
5. What causes the death of flow?
6. What would your shop floor look like if you applied every continuous
improvement tool?
7. What would your office look like if you applied every continuous
improvement tool?
8. What would your supply chain look like if you applied every continuous
improvement tool?
9. Where will your improvement journey will take you?
NINE QUESTIONS FOR OPERATIONAL EXCELLENCE
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You have 30 seconds…GO!
WHAT IS OPERATIONAL EXCELLENCE?
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DEFINING OPERATIONAL EXCELLENCE
“When each and every employee can see the flow of value to the customer, and fix that flow before it breaks down.” SM
Kevin J. Duggan
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THE EIGHT PRINCIPLES OF OPERATIONAL EXCELLENCE
1. Design lean value streams. 2. Make lean value streams flow. 3. Make flow visual. 4. Create standard work for flow. 5. Make abnormal flow visual. 6. Create standard work for abnormal flow. 7. Have employees in the flow improve the flow. 8. Perform offense activities.
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DESIGN LEAN VALUE STREAMS: OFFICE FLOW
• Eight guidelines for end-to-end value stream design.
• Ten guidelines for the mixed model pacemaker.
• Six guidelines for shared resource flow. • Nine guidelines for office flow. • Seven guidelines for supply chain flow.
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SERVICE FAMILY DEFINITION
• A service family is a group of activities or services that follow similar processing steps.
• It is a critical first step in determining which services can follow the same flow.
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SERVICE FAMILY MATRIX
A service family matrix containing many services and activities
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0 Days 0.5 Days 0.5 + 2 Days 1 Day 2 Days 1.5 +1 Days
15 Min. 5 Min. 20 Min. 30 min. 90 min. 45 Min.
L/T
P/T
8.75 Days + 205 min
205 Minutes
0 Req.
Customer Customer
(Clarify)
P/T=20 min. P/T=90 min. P/T=45 min. P/T= 5 min. P/T=15 min. P/T=30 min.
1 Designer
1 Sales Rep 1 Planner 1 CSR 1 Sales Assist. 1 Estimator
email Mail Truck
Sales Database
Design Pkg. Create File
Log File
1 Day (Clarify)
6 Req.
8 Files 3 Files 2 Days 4 Files 2 Files
Request Form Cust. File Validate Estimate Verify L&M Prep Quote
I I I W I D I
80 quotes/mo.
4 quotes/day
1 File I
(Clarify) 60%
75%
75% Rework 60% Rework
I
RAPID PARTS, INC. CURRENT STATE MAP - QUOTING/ESTIMATING PROCESS
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THE 9 GUIDELINES FOR THE OFFICE
• Takt capability • Continuous flow • FIFO • Workflow cycles • Integration events • Standard work • Single-point initialization • Pitch (visual management timeframe) • Changes in demand
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TAKT CAPABILITIES
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Continuous Flow – Make One Move One
2) CONTINUOUS FLOW
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3) FIFO – FIRST IN FIRST OUT
FIFO is similar to ping pong balls going through a pipe. They always come out in the same order, and the pipe is only so big. Once you fill it, the supplying process stops.
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4) WORKFLOW CYCLES
Establish intervals at which information will flow.
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5) INTEGRATION EVENTS
• Integration events pull work forward when information comes from several different areas.
• Integration events have matching outputs and inputs.
• Knowledge is captured and retained at integration events.
• Integration events are not status meetings, and no decisions are made.
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INTEGRATION EVENT
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6) STANDARD WORK
• Activity or process level • Flow level
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7) SINGLE-POINT INITIALIZATION
• How do each of the processes along the value stream know what to work on next?
• Who sets the priority? • Is the priority based on supporting the value
stream flow? • If everything flowed through at a guaranteed
time, would there be a need for priorities?
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SINGLE-POINT INITIALIZATION
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9) CHANGES IN DEMAND
What happens when the customer demand exceeds the capability of the lean value stream?
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Inbox
Go To Plan “B”
CHANGES IN DEMAND
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THE 9 GUIDELINES FOR THE OFFICE
• Takt capability • Continuous flow • FIFO • Workflow cycles • Integration events • Standard work • Single-point initialization • Pitch (visual management timeframe) • Changes in demand
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Customers Customers
Sales Database
Design
Pkg. Create File
Log File
P/T=15 min.
1 CSR
Request Form
FIFO
4 Hrs.
4 Estimates per Day
L/T
P/T
1.5 Days + 185 min
185 min. 15 Min. 170 Min.
Max = 1.5 days
P/T=170 min.
PC/T=55 min.
Op = 3
Takt = 60 min.
Estimating
Cell
Searching Waste 5S Needed
Work Content <=
170 min
Searching Waste 5S Needed 4-Hr Work-Flow Cycle
Searching Waste 5S Needed
Error-Proof & Standardize Form
Searching Waste 5S Needed Standard Work
Post Office
Takt=60 min.*
Searching Waste 5S Needed
Cross- Training
Pitch =60 min.
0 – 1.5 days
Searching Waste 5S Needed
Eliminate Sales Sign-Off
RAPID PARTS, INC. FUTURE STATE MAP – QUOTING / ESTIMATING PROCESS
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THE EIGHT PRINCIPLES OF OPERATIONAL EXCELLENCE
• Design lean value streams. • Make lean value streams flow. • Make flow visual. • Create standard work for flow. • Make abnormal flow visual. • Create standard work for abnormal flow. • Have employees in the flow improve the flow. • Perform offense activities.
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LIVE TRAINING EVENTS
Each year the Institute for Operational Excellence produces training events throughout the U.S. and Europe. For more information, including a complete list of 2017 locations and dates for these events, please visit www.instituteopex.org/events
Orlando, FL February 13-15, 2017
Orlando, FL February 16, 2017
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