Lean Office - Value Streams

1. Lean Office - Value Streams Lean Office Series

2. Outline • What are Value Streams? • History - Toyota • Identifying the Value Streams • Value Stream Mapping • The Current State • The Future State • Unique Situations • Enhancing the Future State • Implementing Change • Roadblocks

3. History of Value Streams - Toyota • Toyota is one of the most efficient manufacturers in the world • Building 2 million cars a year outside Japan • Aiming to become No 1 globally by 2010! • Not because of brilliant products – but because of a brilliant production system • Called Lean Production or Lean Thinking

4. Eight Service Industry Wastes • Errors in documents • Transport of documents • Doing unnecessary work not requested • Waiting for the next process step • Process of getting approvals • Unnecessary motions • Backlog in work queues • Underutilized employees

5. Examples of Office Process Waste • Too many signature levels • Unclear job descriptions • Obsolete databases/files/folders • Purchase Orders not matching quotation • Errors – typo’s, misspelling, wrong data • Waiting – for information, at meetings, etc. • Poor office layout • Unnecessary E-mails

6. Value Stream Improvement vs. Process Improvement Value Stream Process Process Process Customer 1 2 3 Start Finished Product

7. Roadblocks • Traditional approaches do not focus on the value stream • Create “perfect competition” at the next level of supply upstream, by attracting many bidders. • Improve bargaining power through scale economies in raw materials buys as well. • Turn up the competitive pressure with reverse auctions where possible. • Demand continuing price reductions in multi-year contracts whatever happens to volume. • Note the lack of process analysis of the value stream! • “Market will insure lowest costs & highest efficiency!”