using lean six sigma principles to prepare for and improve...
TRANSCRIPT
Dustin Hostetler LSS Master Black Belt Office: 330-345-1646
Mobile: 614-288-6426 Email: [email protected]
Twitter: @Flowtivity
Using Lean Six Sigma Principles to Prepare for and Improve Busy Season
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Agenda
Introduction to Lean and Six Sigma
9 Categories of Waste
5-Step Process Improvement Model
3 Universal Lean Strategies to Improve Processes
Challenging the Status Quo in CPA Firms (Case Study Examples)
Roadblocks to Avoid
Focus on Client Satisfaction
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What is Lean?
• Velocity!
• Efficiency
• Capacity
• Value
“Moving fast is not the same as going somewhere”
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What is Six Sigma?
• Quality!
• Consistency
• Capacity
• Value
“There’s never time to do a job right, but always time to do it over”
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5 Principles of Lean
• Customers define value
• Identify the value stream – what is value
added and what is “waste”?
• Make the process flow
• Implement “pull” to the process
• Continuous Improvement
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9 Categories of Waste in Processes D efects
O verproduction
W aiting
N ot utilizing people’s talent
T ransporting
I nventory
M otion
E xcess Processing
+
A ttitude
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Lean Thinking - Summarized
• Definition:
The focused elimination of wasteful activities
“The wise do only what needs to be done”
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Powerful Model for Process Improvement
• “Begin with the End in Mind” Define
• What is the Current State? Measure
• Put the process under the microscope
• Beat it up! Analyze
• Target improvement ideas to create the Future State Improve
• Develop and Sustain Buy-In Control
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The Lean Six Sigma Team
TOPS model Lean Companies Use:
• Team-Oriented Problem Solving – Champion
– Team leader
– Facilitator
– Cross-Functional Subject Experts
“No one knows the work like the people doing the work” – Henry Ford
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Lean Six Sigma
• Challenge the Status Quo
– Avoid saying: “We’ve always done it this way?”
– Why?
“Progress requires change. If you never change, you’ll never progress.”
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Lean Six Sigma
Let’s Summarize by Getting back to Basics:
• “Voice of the Customer” (VOC)
• “Voice of the
Process” (VOP)
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3 Key Lean Strategies
• Leverage technology • Level Loading the Work
• Focused on constraints • Smoother Process Flow
• Reducing the Batches (what you’re juggling)
• Controlled WIP
Challenging the Status Quo
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Expectations and Accountability
• Are you building in quality from the start?
• Are you effectively and consistently setting expectations?
• Who’s taking ownership and when?
• Your people want some expectations set!
• E.g. Quick Checks
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One-Way Workflow • Why do we love circles?
• Can you think of a client that has as many circles as you have?
• No Egos Allowed – we know you’re smart!
• Is that Point helpful in any of the following ways?
• Helping the firm make money?
• Helping a client make money?
• Meeting a Standard?
• E.g. Collaborative Review
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Safety Nets
• What is a “Safety Net”?
• How many do you have?
• Why don’t you build a stronger one at the top (earlier in the process)?
• More safety nets = more quality issues
• E.g. Level Loading
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Managing the Front Door • Quit blaming the client
• Make it easier to do business with you
• Invest time to save time
• Is your team on the same page before starting?
• E.g. Gatekeeper
• E.g. Planning Meeting
“Invest time to save time”
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Project Management
• Are your managers “managing”?
• Staff
• Partners
• Workload
• Client
• Do you promote based on a) years of experience or b) demonstration of management skills and capabilities?
• Who’s the manager on the job?
• E.g. First question staff ask is not about the client
“Being chargeable can really get in the way of being productive.”
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Dealing with Exceptions
• Do you let your technical personalities dictate a new process / add on to the process for every exception?
• How many processes do you have inside your firm for the same product line?
• Set up your process for the majority
• Don’t let them say “But this client is unique because…”
• E.g. Rollout excuses
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Roadblocks to Avoid
• Tax Processes: • One-size fits all approach to Organizers & PBC Lists; Starting Prep without enough data; “pushing” the work to review without focus on quality; endless review process loops; excess professional time in administrative steps/reviews
• Assurance Processes: • Going in blind to fieldwork (e.g. not verifying client readiness); putting off more difficult sections; failing to develop a last-day game plan; not taking advantage of collaborative review; excess wrap up touches
Kano Model of Client Satisfaction
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Benefits of Lean Implementation
• Increased throughput and capacity
• Better quality from the start
• Improved morale and work-life balance
• Less partner time in “the mud”
– allows time for high level activities and identifying value-add solutions for clients
• Increased Client Service & Satisfaction!
Are you ready to grow?
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Specific Firm Results • Increased realization from 87% to 101% over a 2-year period (Top
100 Firm, Multi-Office)
• Increased throughput results (Top 150 Firm)
– Increased throughput by 9% by March 15
– Increased throughput by 6% by April 15
– 3 Less FTE’s compared to previous year
– Fewer Chargeable Hours
• Increased realization from 79% to 91% in 1-year (Top 200 Firm, One-Office)
• Decreased Cycle Time from Fieldwork to F/S Issuance by 10 days in first year (average 2 week turnaround)
Are you ready to grow?
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