creating the lean car dealer
TRANSCRIPT
ICDP Forum 1999
Creating the Lean Car DealerCreating the Lean Car Dealer
David Brunt
Creating the Lean Car DealerCreating the Lean Car DealerA Value Stream Mapping WorkshopA Value Stream Mapping Workshop
PurposeTo introduce how lean can be applied in aservice organisation– Through applying 5 Lean Principles
To share a road map for implementation
Presentation FrameworkPresentation FrameworkAgendaAgenda
Introduction & Industry BackgroundValue & Waste applied to the dealerA Value Stream Map for servicing a carHow manufacturers and dealers canachieve the changeConclusion
Presentation FrameworkPresentation FrameworkAgendaAgenda
Introduction & Industry BackgroundValue & Waste applied to the dealerA Value Stream Map for servicing a carHow manufacturers and dealers canachieve the changeConclusion
Autos: “The Industry ofAutos: “The Industry ofIndustries”Industries”
A hugely competitive industry
A “soap opera” where its businessleaders are celebrities
Where companies spend millions tocreate and preserve their brands
The industry where lean productioncan’t be questioned!
Better service at lower cost
How?
Autos: “The Industry ofAutos: “The Industry ofIndustries”Industries”
No such thing as a “bad car”
Much wider choice basket for consumer
Therefore customer interface (selling &servicing) plays an increasingly vital role
As does competitive pricing –which demands competitive cost
Lean ProductionLean ProductionToyota has been using the ‘Toyota ProductionSystem’ to improve quality, service andreduce cost for decades– It’s competitors have tried to apply the tools &
techniques as well
It has been applied systematically throughthe supply base upstream and the Partssystem downstream of the assembly plant– Highest service level, fastest response, highest
productivity and lowest stock
Lean DealerLean Dealer
Despite this success, Dealer Processes are still difficult tomanageOften run by “individuals” or anonymous “groups”Hampered by complex computer systems, staff skillsissues, staff turnover, etc. etc.– And Dealers have to deal with end customers & people from
head office!!
In an industry where lean production can’t be questioned& the customer interface (selling & servicing) plays anincreasingly vital role ………. this is not good!So, do the Lean Principles apply to all thedealer processes?
Lean ThinkingLean ThinkingA RefresherA Refresher
Specify what creates value from thecustomers perspective
Identify all steps across the wholevalue streamMake those actions that create valueflowOnly make what is pulled by thecustomer just-in-time
Strive for perfection by continuallyremoving successive layers of waste
Presentation FrameworkPresentation FrameworkAgendaAgenda
Introduction & Industry BackgroundValue & Waste applied to the dealerA Value Stream Map for servicing a carHow manufacturers and dealers canachieve the changeConclusion
What Consumers WantWhat Consumers Want
How the industry sees it
New Service BodyUsed Parts
What Consumers WantWhat Consumers Want
How they see it
Mobility
Acquisition Maintenance
Value Value- in the Eyes of the Consumer- in the Eyes of the Consumer
Acquisition“The right car in theright place at theright time”At the right price
Maintenance“Fixed right firsttime on time”At the right price
Not Measured!Not Measured!
Quality &DeliveryQuality &Delivery
“CustomerFulfilment”
Service
Howcustomersare treated
Information,Care,
Consideration
Convenience
Ease of theEvent
Distance,Time,
Remembering,etc.
Value:Value:ExtendingExtending thethe Concept Concept
Quality &Delivery
Acceptable
Price
Right FirstTime
On Time
Ref: J.S. Kiff, International Car Distribution Programme (ICDP)
Value and Its Flipside:Value and Its Flipside:
Value - what customer wants to pay forWastes: The Flipside of Value:
WorkerMovement
Waste
Net Work
Value AddedWork
Non-Value Added Work
Not needed at allin doing the work
Waiting Transport Sorting Rework
No added valuebut must be done
Walking toanother location toreceive parts
Removingpackaging
Removing partsfrom a pallet
Ref: Taiichi Ohno (1988): Toyota Production System
WastesWastes(Things that don’t add value from the customer’s perspective)(Things that don’t add value from the customer’s perspective)
Re-do cars or jobs…or paperworkSearch for tools,parts or equipmentClean cars twice +Move cars on siteWait for the next job
Re-input data on DMSHaven’t enough space– Parking workshop cars– Old equipment / tools
Buy in batches, then……write off stockPay customers to takethe ‘wrong’ car
How many of you…
How much does it cost???
Lean is simply abouteliminating waste…to release resource
Presentation FrameworkPresentation FrameworkAgendaAgenda
Introduction & Industry BackgroundValue & Waste applied to the dealerA Value Stream Map for servicing a carHow manufacturers and dealers canachieve the changeConclusion
Value Stream MappingValue Stream Mapping
Follow a product’s production path from beginning to endand draw a visual representation of every process in thematerial & information flowsThen draw (using icons) a “future state” map of how valueshould flow
Helps us see flow
VALUE STREAM: All the steps, VA & NVA, requiredto bring the product from raw material to customer
ProcessBox
DataBox
Inventory“Push”
VSM from “Learning to See”VSM from “Learning to See”
What are Your Value Streams?What are Your Value Streams?
Develop Manufacture Assemble
Distribution
Distribution
Manufacture
Sub Assemble
Suppliers CustomersDistributionR&D Manufacture Assembly
HRMarketing
Primary“What people pay for”
Secondary“Support the Primary
Value Streams”
Using the Value Stream Mapping ToolUsing the Value Stream Mapping Tool
Product Family
Current State Drawing
Future State Drawing
Work Plan
Understanding how thevalue stream currentlyoperates
Designing a lean flow
Focus on One Product FamilyFocus on One Product Family
Process Steps & Equipment
Prod
ucts
/Ser
vice
s
Determine product/service families via– Similar downstream steps & equipment
ValetTestCar
Book inCar
Cust.Meet’g
OrderParts
Work-shop
ServiceLetter
Cust.H-overInvoice
Service(car dropped off)
Repair(car dropped off)
Service(collect / deliver)
Repair(collect / deliver)
Service(loan car)
XXX X X XXXXX X X
XXX X XXXXX X
XXX X X XX
XXXX
XX
XXRepair
(loan car)
Breakdown(service provider del.)
XXX X X
XXX X
XX
X
We often think“every job is
different”
Distribution of Time Taken per JobDistribution of Time Taken per Job
0
5
10
15
20
25
30
35
Jobs
Tim
e (H
ours
)
Planned Taken
Cumulative Time Taken per JobCumulative Time Taken per Job
0
50
100
150
200
250
300
350
400
Jobs
Tim
e (H
ours
)
Cumulative Planned Time Cumulative Taken Time
Cumulative FrequencyCumulative Frequency
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Hours
Occ
urre
nces
Cumlative %age (Planned) Cumlative %age (Actual)
Current State DrawingCurrent State Drawing
Material & information flowsDraw using iconsStart with the “door to door”flowHave to walk the flow & getactuals– No standard times– Draw by hand, in pencil
Foundation for theFuture State
Product Family
Current State Drawing
Future State Drawing
Work Plan
Understanding how the processcurrently operates
Cars
Mins15240
Cars
Mins32240
Cars
Mins32240
Cars
Mins34240
Cars
Mins95
A/W
A/W
Additional Work(A/W)
Inform Parts
AppointmentManufacturerParts Warehouse
Service Reception
3SA, 1 Books
Service Reminder
Park Car Inspect Car Carry outWork
Road Test Valet Handover
Parts Workshop Control
15 Mins 50 Mins 15 Mins 10 Mins
34240
Mins 32240
Mins 32240
Mins 15240
Mins95 Mins
Customer RequirementsCars 1-7 years old
1,2,3,4 Class, 1500 hourssold/month.
Lead Time = 7 Days50% Service, 20%
Service & Repair, 20%Warranty, (20% of alljobs have MOT), 10%
BreakdownsTime up Job
A/W
CycleTime
Mins5 Cycle
TimeMins15
sss
CycleTime
Mins50 Cycle
TimeMins15 Cycle
TimeMins20
Distance m30 Distance m30Distance m30 Distance m120 Distance m30
ReserveC/T
Mins5
A/W Inf C/T Mins1
20 Mins
CycleTime
Mins10
A/W C/T Mins5
Give Job C/T Mins5
Drop off C/T Mins10
Booking C/T Mins5
Cost & InformC/T Mins9
A/W Job C/T Mins3 CycleTime
Mins10
InvoiceCycleTime
Mins5
5 Mins
5 Mins
1 Day1 Day
BOOKIN
CUST.
DROPOFF CAR
PARTS RESERVED
INSPECT+ A/W
INFORM
TECH
CUSTOMER
PARKCAR
CHECKSTOCK
GO AHEAD
DO JOB
GIVE TOTEST
GIVE TOVALET
TIMEUP
INVOICE HAND OVER
Current StateCurrent StateCustomer RequirementsCars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
CT=5 minDist.= 0Q = N/A
1 A/W510
ADMIN.
3 A/W510
SERVICEADVISOR
1 A/W510
ON SITEDRIVER
1 A/W510
WORKSHOPCONTROL
10 A/W510
TECHS.
1 A/W510
TESTER
2 A/W510
VALET
2 A/W510
PARTS
CT=10 minDist.=30mQ = N/A
CT=5 minDist.=30mQ = N/A
CT=5 minDist.=30mQ = N/A
CT=3 min CT=2 min
CT=2 min
CT=2 min
CT=5 min
CT=5 minDist.=0mQ = N/A
CT=15 minDist.=30mQ = N/A
CT=2 min CT=2 min CT=10 min
CT=10 minDel.=N/AQ = N/A
CT=5 min
CT=1 minDist.=120mQ = N/A
90 min
5 min
2 min
3 min
1 min
1 min
30 min
30 min
VALET
INFORMTIME JOB
COST &INFORM
TESTCT=60 minDist.=120mQ = N/A
CT=15 minQ = N/A
CT=20 minDist.=30mQ = N/A
GIVE TOTECH
CT=15 min
GETPARTS
BOOKIN
CUST.
DROPOFF CAR
PARTS RESERVED
INSPECT+ A/W
INFORM
TECH
CUSTOMER
PARKCAR
CHECKSTOCK
GO AHEAD
DO JOB
GIVE TOTEST
GIVE TOVALET
TIMEUP
INVOICE HAND OVER
Current StateCurrent StateCustomer RequirementsCars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
CT=5 minDist.= 0Q = N/A
1 A/W510
ADMIN.
3 A/W510
SERVICEADVISOR
1 A/W510
ON SITEDRIVER
1 A/W510
WORKSHOPCONTROL
10 A/W510
TECHS.
1 A/W510
TESTER
2 A/W510
VALET
2 A/W510
PARTS
CT=10 minDist.=30mQ = N/A
CT=5 minDist.=30mQ = N/A
CT=5 minDist.=30mQ = N/A
CT=3 min CT=2 min
CT=2 min
CT=2 min
CT=5 min
CT=5 minDist.=0mQ = N/A
CT=15 minDist.=30mQ = N/A
CT=2 min CT=2 min CT=10 min
CT=10 minDel.=N/AQ = N/A
CT=5 min
CT=1 minDist.=120mQ = N/A
90 min
5 min
2 min
3 min
1 min
1 min
30 min
30 min
VALET
INFORMTIME JOB
COST &INFORM
TESTCT=60 minDist.=120mQ = N/A
CT=15 minQ = N/A
CT=20 minDist.=30mQ = N/A
GIVE TOTECH
CT=15 min
5 min 15 min10 min
15 + 3 + 5 + 5 + 2 + 2 + 115 min 50 min 15 min 20 min 10 min
15 min7 min7 min
VA NVA
0 5
20 12
0 5
0 34
65 16
15 2
20 2
0 1112087
GETPARTS
BOOKIN
CUST.
DROPOFF CAR
PARTS RESERVED
INSPECT+ A/W
INFORM
TECH
CUSTOMER
PARKCAR
CHECKSTOCK
GO AHEAD
DO JOB
GIVE TOTEST
GIVE TOVALET
TIMEUP
INVOICE HAND OVER
Current StateCurrent StateCustomer RequirementsCars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
CT=5 minDist.= 0Q = N/A
1 A/W510
ADMIN.
3 A/W510
SERVICEADVISOR
1 A/W510
ON SITEDRIVER
1 A/W510
WORKSHOPCONTROL
10 A/W510
TECHS.
1 A/W510
TESTER
2 A/W510
VALET
2 A/W510
PARTS
CT=10 minDist.=30mQ = N/A
CT=5 minDist.=30mQ = N/A
CT=5 minDist.=30mQ = N/A
CT=3 min CT=2 min
CT=2 min
CT=2 min
CT=5 min
CT=5 minDist.=0mQ = N/A
CT=15 minDist.=30mQ = N/A
CT=2 min CT=2 min CT=10 min
CT=10 minDel.=N/AQ = N/A
CT=5 min
CT=1 minDist.=120mQ = N/A
90 min
5 min
2 min
3 min
1 min
1 min
30 min
30 min
VALET
INFORMTIME JOB
COST &INFORM
TESTCT=60 minDist.=120mQ = N/A
CT=15 minQ = N/A
CT=20 minDist.=30mQ = N/A
GIVE TOTECH
CT=15 min
5 min 15 min10 min
15 + 3 + 5 + 5 + 2 + 2 + 115 min 50 min 15 min 20 min 10 min
15 min7 min7 min
VA NVA
0 5
20 12
0 5
0 34
65 16
15 2
20 2
0 1112087
GETPARTS
NVA 82 min
VA 120 min
BOOKIN
CUST.
DROPOFF CAR
PARTS RESERVED
INSPECT+ A/W
INFORM
TECH
CUSTOMER
PARKCAR
CHECKSTOCK
GO AHEAD
DO JOB
GIVE TOTEST
GIVE TOVALET
TIMEUP
INVOICE HAND OVER
Current StateCurrent StateCustomer RequirementsCars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
CT=5 minDist.= 0Q = N/A
1 A/W510
ADMIN.
3 A/W510
SERVICEADVISOR
1 A/W510
ON SITEDRIVER
1 A/W510
WORKSHOPCONTROL
10 A/W510
TECHS.
1 A/W510
TESTER
2 A/W510
VALET
2 A/W510
PARTS
CT=10 minDist.=30mQ = N/A
CT=5 minDist.=30mQ = N/A
CT=5 minDist.=30mQ = N/A
CT=3 min CT=2 min
CT=2 min
CT=2 min
CT=5 min
CT=5 minDist.=0mQ = N/A
CT=15 minDist.=30mQ = N/A
CT=2 min CT=2 min CT=10 min
CT=10 minDel.=N/AQ = N/A
CT=5 min
CT=1 minDist.=120mQ = N/A
90 min
5 min
2 min
3 min
1 min
1 min
30 min
30 min
VALET
INFORMTIME JOB
COST &INFORM
TESTCT=60 minDist.=120mQ = N/A
CT=15 minQ = N/A
CT=20 minDist.=30mQ = N/A
GIVE TOTECH
CT=15 min
5 min 15 min10 min
15 + 3 + 5 + 5 + 2 + 2 + 115 min 50 min 15 min 20 min 10 min
15 min7 min7 min
VA NVA
0 5
20 12
0 5
0 34
65 16
15 2
20 2
0 1112087
GETPARTS
NVA 82 min
VA 120 min
IncorrectDiagnosis
Parts notAvailable
Difficultto Park
Car Hardto Find
Parts Waiting
Delay for
Authorisation
Delay for
Authorisation
Wait for
Next PersonWait for
Next Person
Wait forParts Search for
Tools
Wait forTester
Wait forValet
No ParkingSpaces
IncorrectBilling
AvailableLoan Cars?
Future State QuestionsFuture State QuestionsWhat is the Takt Time?Where can we use continuous flowWhere do we have to use supermarket pull systems?At what single point in the production chain do wetrigger production?How do we level the production mix at thepacemaker process?What increment of work will we release and takeaway at the pacemaker process? (levelling thevolume)
Supporting ImprovementsWhat process improvements will be necessary?(e.g. uptime, changeover & training)
TAKT TimeTAKT Time
AvailableWork Time 480 min
Demand 30 cars
34% ofDemand 10 cars
StandardTime Slot 30 min
60 90 120 240No. of JobsBooked in 4 3 2 2
TimeRequired
1stYear
2ndYear
3rdYear
4thYear Totals
Total TimeBooked in 240 270 240 480 1230
No. ofWork Cycles 8 9 8 16 41
TAKT Time 60.0 53.3 60.0 30.0 11.7
Manpower 0.5 0.6 0.5 1.0 2.6
After Sales Future State Value Stream
TECHNICIAN
Physical FlowInformation Flow
TIME123
KEYS
TECH
CUSTOMER
SERVICEADVISOR
P/DTECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 minDist.=60mQ = 99%
After Sales Future State Value Stream
TECHNICIAN
Physical FlowInformation Flow
TIME123
KEYS
TECH
CUSTOMER
SERVICEADVISOR
P/DTECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 minDist.=60mQ = 99%
PARTS
PARTS
After Sales Future State Value Stream
TECHNICIAN
Physical FlowInformation Flow
TIME123
KEYS
TECH
CUSTOMER
SERVICEADVISOR
P/DTECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 minDist.=60mQ = 99%
PARTS
PARTS
CUSTOMER
PDTBOOKING
CT=5 minDist.= 0Q = 100%
PRE-DIAGNOSIS
CT=30 minDist.= 0Q = 100%
After Sales Future State Value Stream
TECHNICIAN
Physical FlowInformation Flow
TIME123
KEYS
TECH
CUSTOMER
SERVICEADVISOR
P/DTECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 minDist.=60mQ = 99%
PARTS
PARTS
CUSTOMER
PDTBOOKING
CT=5 minDist.= 0Q = 100%
PRE-DIAGNOSIS
CT=30 minDist.= 0Q = 100%
VALET
VALET
CT=20 minDist.=60mQ = 100%
After Sales Future State Value Stream
TECHNICIAN
Physical FlowInformation Flow
TIME123
KEYS
TECH
CUSTOMER
SERVICEADVISOR
P/DTECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 minDist.=60mQ = 99%
PARTS
PARTS
CUSTOMER
PDTBOOKING
CT=5 minDist.= 0Q = 100%
PRE-DIAGNOSIS
CT=30 minDist.= 0Q = 100%
VALET
VALET
CT=20 minDist.=60mQ = 100%
HANDOVER
CT=10 min
Del.=N/A
Q = N/A
INVOICE
CT=5 min
After Sales Future State Value Stream
TECHNICIAN
Physical FlowInformation Flow
TIME123
KEYS
TECH
CUSTOMER
SERVICEADVISOR
P/DTECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 minDist.=60mQ = 99%
PARTS
PARTS
CUSTOMER
PDTBOOKING
CT=5 minDist.= 0Q = 100%
PRE-DIAGNOSIS
CT=30 minDist.= 0Q = 100%
VALET
VALET
CT=20 minDist.=60mQ = 100%
HANDOVER
CT=10 min
Del.=N/A
Q = N/A
INVOICE
CT=5 min
NVA 145 min
VA 120 min
VA NVA
10 10
30 0
0 0
60 0
20 0
120105 min 60 min
30 min 60 min 20 min 10 min20 min60 min5 min 60 min
30 min 60 min 20 min 10 min20 min60 min
Additional Work(A/W)
Arrival
AppointmentSlots
Inform Parts
AppointmentManufacturerParts Warehouse
Service Reception
3SA, 1 Books
PreDiagnose
Carry outWork
+ Road Test
Valet Handover
Parts
30 Mins 60 Mins 10 Mins
60 Mins 20 Mins95 Mins
Customer RequirementsCars 1-7 years old
1,2,3,4 Class, 1500 hourssold/month.
Lead Time = 7 Days50% Service, 20%
Service & Repair, 20%Warranty, (20% of alljobs have MOT), 10%
Breakdowns
CycleTime
Mins15Cycle
TimeMins15Cycle
TimeMins15Cycle
TimeMins30 Cycle
TimeMin
s60 CycleTime
Mins20
Distance m30Distance m30 Distance m120 Distance m30
ReserveC/T
Mins5
Drop off C/T Mins10
CycleTime
Mins10
Booking C/T Mins5
A/W C/T Mins5
CycleTime
Mins15
5 Mins
5 Mins
1 Day1 Day 5 Days
Service Reminder
FIFO x3
OXOX
0-4
8+
4-8 FIFO
Time up &Invoice
60 Mins
20 Mins
Presentation FrameworkPresentation FrameworkAgendaAgenda
Introduction & Industry BackgroundValue & Waste applied to the dealerA Value Stream Map for servicing a carHow manufacturers and dealers canachieve the changeConclusion
Work Plan & ImplementationWork Plan & Implementation
Step by step - when, what, who
Clear review points– Real deadlines
– Named reviewers (clear responsibility)
– Reviewable deliverables
Able to see if we are behind or ahead
Contract - a commitment toaccomplish something by a specifictime
Product Family
Current State Drawing
Future State Drawing
Work Plan
Detailed plan of how to get there
TECHNICIAN
Physical FlowInformation Flow
TIME123
KEYS
TECH
CUSTOMER
SERVICEADVISOR
P/DTECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 minDist.=60mQ = 99%
PARTS
PARTS
CUSTOMER
PDTBOOKING
CT=5 minDist.= 0Q = 100%
PRE-DIAGNOSIS
CT=30 minDist.= 0Q = 100%
VALET
VALET
CT=20 minDist.=60mQ = 100%
HANDOVER
CT=10 min
Del.=N/A
Q = N/A
INVOICE
CT=5 min
NVA 145 min
VA 120 min
VA NVA
10 10
30 0
0 0
60 0
20 0
120105 min 60 min
30 min 60 min 20 min 10 min20 min60 min5 min 60 min
30 min 60 min 20 min 10 min20 min60 min
Value Stream LoopsValue Stream Loops
Technician Loop
Parts Loop
Invoice & Handover Loop
Booking & Pre-Diagnosis Loop
Valet Loop
1.2
1.3
1.4
1.5
1.6
1.1
2.2
2.3
2.4
2.1
3.1
3.2
4.1
4.2
5.1
5.2
5.2
Site Level Objective
Value Stream Manager
Site Manager
Date:
Harry BamfordDave Johnson
20/12/02Yearly Value Stream Plan: After Sales
Signatures
Site ManagerD. Johnson
SalesT. Plant
After SalesH. Bamford
PartsA. Harvey
PersonResponsible
RelatedIndividuals/Departments Reviewer DJ
DateReviewer DJ
Date
Review ScheduleMonthly Schedule
2 3 4 51 6 7 8 9 10 11 12Value
StreamLoop
No Value Stream Objective Goal (Measurable)
Proposed Start
Proposed Completion
Actual Start
Actual Completion
Review
Review Complete
On Target
Behind Target
TroubleX
“right first time, on time, at the right
price.”Quality = 99%
Delivery on Time = 91%
Productivity = 100%Lead Time = 3 days
1Technician
31.3 ○ 31.5 31.3 ○ 31.5 28.2 ∆ 31.5 30.4 ○ 31.5 30.4 ∆ 31.7 30.4 ○ 31.5 31.3 ○ 30.4 ○
31.3 ∆ 31.5
28.2 ○ 31.5
30.4 ∆ 31.5
30.4 ○ 31.5
31.5 30.6
31.7 30.9
31.7 30.9
31.10 31.11
31.10 31.11
31.11
2 Booking
&Pre-Dia-
gnosis
3Parts
4Valet
5Invoice &Handover
H. Bamford Adm PartsSA Tch Wco
TAKT = 39 Mins2 Technicians
Develop pull systemfrom car park
1 car WIP
Eliminate searchingfor tools
100%Productivity
Eliminate waiting forworkshop control
100%Productivity
Eliminate waiting forauthority
Reduce additionalwork sheets by50%
Develop pull for parts 100%Productivity
Develop flow in aftersales to TAKT & 30minute slots
Pre diagnose to astandard cycle time withthe customer
Pre-diagnose oncollection & delivery cars
Develop planningboard
Develop a proactivebooking process
Pre-pick parts foreach job to TAKT
Deliver parts totechnician
Valet to a standardcycle time
Develop handover parkingarea for finished cars
Eliminate billingerrors
Allocate handoverslots
Minimise debtors list
100% of jobs
50% of cars30 Mins C/T
100%Productivity
100% of jobs
TAKT = 39 Mins1 parts person
99% partsavailability
100% of cars20 Mins C/T
100% of cars
100% accurate
C/T = 15 Mins100% of customers
C/T = 15 Mins100% of customers
T. Kent Sales, PartsSA, Val
H. Whittle Tch Wco
S. Wilson Tch, Wco
S. Wilson Wco, Tch,SA, Parts
A. Harvey Parts, Tch,Wco
T. Kent SA, Adm
S. Wilson Tch, Wco
H. Whittle Tch, Wco, SA
S. Wilson Tch, Wco
A. Harvey Parts
A. Harvey Parts, Wco,Tch
B. Cox Val, Wco
T. Kent Sales, PartsSA, Val
T. Kent Wco, Tch,SA, Parts, Fi
T. Kent SA
H. Bamford SA, Fi
Implementation via Point Implementation via Point KaizenKaizen
Process
PointKaizen
Eraser
Future State Map
But How do we Really ImplementBut How do we Really Implement& Sustain a Change?& Sustain a Change?
Develop a ‘cadre’ of dealers from a network– Six dealers per club– Drive improvement through competition within the
groupTeach these pioneers to see their business asa series of processes– Measure how well these processes deliver what
customers want– Look at the costs and time spent fixing processes
that don’t workAnd recognise that the answer is to redesigneach process – not push people harder!
Progress MeasureProgress Measure
Time will tell…Progress will be evident from…– Dealers’ attitudes and efforts, and– Level of change achieved
…whether they’ll become self-sustainingi.e. motivated to continuously improve:– Processes– Knowledge of Lean tools & techniques
Once there are some examples it will beeasier for others to follow
Presentation FrameworkPresentation FrameworkAgendaAgenda
Introduction & Industry BackgroundValue & Waste applied to the dealerA Value Stream Map for servicing a carHow manufacturers and dealers canachieve the changeConclusion
Creating the Lean Car DealerCreating the Lean Car DealerA Value Stream Mapping WorkshopA Value Stream Mapping Workshop
PurposeTo introduce how lean can be applied in aservice organisation– Through applying 5 Lean Principles
To share a road map for implementation
ConclusionConclusion
Always start with the principles– Teach your own people how to add value &
eliminate wasteDesign the system so that value flows & sothat problems can be flushed out– People need to be able to solve rather than be
blamed for problemsToday nobody has to do this…….unless oneof your competitors starts…….then theagenda will change from “if” to “how” asit did in manufacturing over 10 years ago
ICDP Forum 1999
Creating the Lean Car DealerCreating the Lean Car Dealer
David Brunt
BiographyBiographyDavid’s journey down the lean path started in the automotive industry at Rolls-Royce Motor Carswhere he held a number of roles in the fields of Purchasing, Supplier Development, Quality andCustomer Service. In 1993, his interest in Lean Thinking led to studying for the part-time MBA inSupply Chain Management at Cardiff Business School under the guidance of Professor Daniel T.Jones.He joined the Lean Enterprise Research Centre at Cardiff Business School as a Senior ResearchAssociate in February 1997 to further research, develop and implement lean principles. There hewas involved in a number of research projects:
The Lean Processing Programme (LEAP), a three-year initiative focused on mapping steel to component value streams toidentify significant gains in competitive advantage for the UK upstream automotive industry.Projects with individual firms to research and apply Lean Thinking outside the automotive industry in areas such as FMCGand non-automotive based manufacturing.The International Car Distribution Programme (ICDP), the world’ leading co-operative research programme into the futureof car distribution and retailing. Research focussed on the application of Lean Thinking to car distribution and cardealerships.In addition, David has written a number of reports and publications including “Supply Chain Management And The BritishMetals Industry” for The Metals Industry Competitive Enterprise (MICE) and the book “Manufacturing Operations andSupply Chain Management – The Lean Approach” with David Taylor.
In 2001 he took up the part-time role of PVP (Porsche Improvement Process) Manager atPorsche Cars Great Britain. At Porsche, David has carried out work to develop lean in after sales,used car processing and the parts operation as well as conducting a number of other businessprocess improvement projects.David has helped Dan Jones set up the Lean Enterprise Academy (LEA) – a non-profit Academyestablished to develop knowledge of Lean Thinking and its implementation and to disseminatethis knowledge through publications and workshops. He currently divides his time between workfor LEA, ongoing research with ICDP and helping firms make a lean transformation.David can be contacted at:The Lean Enterprise Academy, 17, Church Street, Ross-on-Wye, Herefordshire. HR9 5HN+44 1989 764440, +44 7703 538083 (M), or by e mailing [email protected] www.leanuk.org