west michigan hdi october 10 th, 2012 amways lean office journey
TRANSCRIPT
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West Michigan HDIOctober 10th, 2012
Amway’s Lean Office Journey
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Agenda• Welcome
Jill Bierens – Manager, Global IT Service Desk• Lean Office Overview
Stephen Sweers – Manager, OPX Lean Office• Amway IT Results
David Drake – Lean Leader, ITJill BierensDaniel Uecker-Herman – Lead Service Desk Technician
• Q&A• Optional Tour: IT Operations, ITAM, Lean Cell
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About Amway• Founded in 1959• Second largest direct-selling company in the world
Annual sales of more than $10 billion in 2011 More than 450 products 80 countries and territories 20,000 employees Six million entrepreneurs selling Amway products around the world More than 900 patents granted and more than 800 pending
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The Heart of Amway
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Amway’s Global Service Desk
• Metrics Nearly 6,000 customers in North America and SE Asia Average 13,000 incoming contacts per month (all channels) Average 5,000 calls per month Live answer = 85% First Contact Resolution = 75% Eight Service Desk Technicians Four User Management Technicians
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• Current State
• Strategy• Four regions• Follow the Sun• Standardized processes
Caller
Ada HQ6:30am–7:30pm
Malaysia7:00am-7:00pm
Amway’s Global Service Desk
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• Identify and eliminate wasteful process steps in a systematic way• More than 60% of the cost of a product or service is attributable to administrative processes.
• Quality and service improve• Turnaround time shortens• Costs go down and profits go up• The customer is ultimately delighted• Resources (people and money) become available to be redeployed to further grow the
business
WHY LEAN OFFICE?
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KAIZEN DEFINED
KaiKai“changechange”
(revolutionary) (revolutionary)
zenzen“goodgood”
(sacrifice)(sacrifice)
Self
Whipped Back
Sheep
Altar
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• Quality: How to improve it?• Cost: How to reduce it?• Delivery: How to ensure it?• Talent: How to develop it?
LEAN OFFICE ISSUES
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ELIMINATE WASTE• The 8 Wastes
DefectsOver-productionWaitingNot engaging peopleTransportationInventoriesMotionExcess processing
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ELIMINATE WASTE
• Unevenness Can often be eliminated by managers through level scheduling and
careful attention to the pace of work.
• Overburdening Workers by requiring them to operate at a higher pace, with more
effort and for a longer period of time than appropriate workforce management allows (target utilization @ 85%).
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• Right 1st time Quality Improvement• Delivery/Lead Time/Flow Improvement• Cost/Productivity Improvement• Talent Development
• Right 1st time Quality Improvement• Delivery/Lead Time/Flow Improvement• Cost/Productivity Improvement• Talent Development
TRUE NORTH METRICS
“These are a select few measures, and if you improve them each year, ‘good things’ will happen.”
– George Koenigsaecker
“These are a select few measures, and if you improve them each year, ‘good things’ will happen.”
– George Koenigsaecker
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LEADERSHIP BEHAVIOR
It can and must be taughtSome have it, some do notProblem Solving Skills
People will feel empowered if they receive positive support for solving problems
People will not accept blame unless forced to
What are the assumptions about people?
Call attention to the problem for assistance, to learn & to avoid the problem in the future
Solve the problem on your own if at all possible
What should the individual who makes a mistake do?
Management (95% of the time)The person who makes the mistake (5% of the time)
Who is responsible?
The “System” (“5 Why’s”)The “Individual” (“5 Who’s”)What is the cause?
A deviation from StandardThe result of someone messing upWhat is a problem?
Lean ManagementTraditional ManagementCritical Questions
It can and must be taughtSome have it, some do notProblem Solving Skills
People will feel empowered if they receive positive support for solving problems
People will not accept blame unless forced to
What are the assumptions about people?
Call attention to the problem for assistance, to learn & to avoid the problem in the future
Solve the problem on your own if at all possible
What should the individual who makes a mistake do?
Management (95% of the time)The person who makes the mistake (5% of the time)
Who is responsible?
The “System” (“5 Why’s”)The “Individual” (“5 Who’s”)What is the cause?
A deviation from StandardThe result of someone messing upWhat is a problem?
Lean ManagementTraditional ManagementCritical Questions
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THOUGHT-PROVOKING QUESTIONS• To what extent are your Function’s goals linked to Enterprise Goals? • Can you identify all of your Function’s internal and external customers?
• Do you know all of the products and/or services your Function provides its customers?
• Do you know your customer’s requirements for your Function’s products and/or services?
• Do you measure Functional performance on the basis of how well your products and/or services meet your customer’s requirements?
• Can you identify your Function’s internal and external suppliers?
• Do you establish clear goals for the products and services provided to your Function by your suppliers?
• Do you have documentation of your Function’s role in the cross-functional value streams to which it contributes?
• Do you measure your Function on the degree to which it contributes to cross-functional value streams?
• Do you measure the “upstream” performance of the processes that flow through your Function?
• Do you have tracking and feedback systems that effectively and efficiently gather performance information and provide it to the people who need it?
• Do you have the skills to troubleshoot (remove the root causes of) performance gaps in your systems?
• Do you spend a large percentage of your time working to improve the interfaces between your Function and other Functions and between sub-units within your Function?
• Do employees in your Function work in an environment where their job design, job goals, feedback, rewards, resources and training enable them to make their maximum contributions to process efficiency and effectiveness?
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Factors for success:• Clear Business Case• Leadership Endorsement• Clear Roles & Responsibilities• Dedicated Internal Resources• Structured, Systematic Method• Simple, True North Metrics• Frequent Reviews
SUCCESS FACTORS
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What:• Improve Internal Process Workflows and Reliability• Standardize Work Processes• Improve Process Throughput Time • Reduce Clerical Errors (implement mistake-proofing techniques)• Establish “Lean Plans”
Where:• Transactional Business Processes (ex: Idea-to-Market, Procure-to-Pay, etc.)• Key Functional Areas (ex: Planning, Procurement, QA, R&D, IT, Sales, Finance)
Impact on:• Throughput Time Variation (Operational Lead Time Improvement)• Right 1st Time Quality Improvement
DEPLOYMENT MODEL: PHASE 1 “STABILITY”
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LEAN OFFICE SPECIALIZATION: INSTABILITY
• Specialized work• No level loading• Work duplication• No realization of waste
OFFICE EMPLOYEES SPECIALIZATIONBreadth of Knowledge
Employees typically retain 80% of the process knowledge.
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LEAN OFFICE SPECIALIZATION: STABILITY• Multi-Skilled• Multi-Process Handling• Level loaded @ 85% of Capacity
OFFICE EMPLOYEES GENERALISTShared Knowledge
Skills/Training MatrixSkills/Training Matrix
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LEAN LEADER STANDARD WORK• Assess efficiency of Functional & Cross-Functional business processes.• Develop Functional “Lean Plans” aligned with Enterprise Strategy.• Enable improvement by providing kaizen breakthrough method & support.• Create expectation for annual improvement in:
• Right 1st Time Quality• Productivity (Cost)• Delivery (Lead Time)• Talent
• Encourage active sharing & adoption of best practices.
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1. What are the top 2 or 3 most costly outputs (products or services) your “lean office” makes and delivers to your customers? Or, what causes you the most pain? Brainstorm!
2. Select one output (product or service for your customer), assemble a team and together explore using the SIPOC Tool (Supplier/Input/Process/Output/Customer).
3. Plan your 3-5 Day Kaizen Event using your completed SIPOC as a guide (hint: you may want to include the voices of suppliers, processors, customers and “outside eyes” as well).
4. Execute the Kaizen Breakthrough Method…. again, again and again (5X)!
1. What are the top 2 or 3 most costly outputs (products or services) your “lean office” makes and delivers to your customers? Or, what causes you the most pain? Brainstorm!
2. Select one output (product or service for your customer), assemble a team and together explore using the SIPOC Tool (Supplier/Input/Process/Output/Customer).
3. Plan your 3-5 Day Kaizen Event using your completed SIPOC as a guide (hint: you may want to include the voices of suppliers, processors, customers and “outside eyes” as well).
4. Execute the Kaizen Breakthrough Method…. again, again and again (5X)!
GETTING STARTED: ACTIVITY
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SIPOCSupplier Inputs
(Requirements)Process
(Transformational, Value-Creating Steps)
Outputs(Requirements)
Customer
• Meijer• Kitchen
• 36 Minutes Total Time • 2 ea Eggs• ¼ Cup Water• ½ Cup Vegetable Oil• 8” X 8” Pan• Shortening or Cooking Spray• Large Mixing Bowl• Wire Whip or Large Spoon• Electric or Gas Oven capable of reaching 350F• Cooling Rack• Knife• Spatula• Serving Plate
1. PREHEAT: oven to 350F for glass or metal pans, 325F for dark or non-stick pans.
2. GREASE: bottom of pan with shortening or cooking spray.
3. MIX: empty brownie mix, eggs, oil and water in large bowl.
4. STIR: until well-blended (about 50 strokes).
5. SPREAD: in greased pan and bake immediately.
6. BAKE: following times listed per pan size (ex: 8” X 8”: 42-45 Minutes. Add 3-5 minutes for dark or non-stick pans.
7. DONE: when inserted toothpick 1” from edge of pan comes out clean.
8. COOL: completely in pan before cutting and serving.
• 2” X 2” Fudgy Brownie• Warm & Gooey• Served on 6” Serving Plate
• Annie Sweers
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1. Pre-Event Planning
1. Pre-Event Planning
2. Event Execution
2. Event Execution
3. Post-Event Monitoring
3. Post-Event Monitoring
Kaizen Sponsor Secured?
Kaizen Team Leader assigned?
Kaizen Target Area Selected/Scoped?
Kaizen Dates & Times Scheduled?
Kaizen Team Room Scheduled?
Kaizen Team Members Assembled (Rule of 1/3’s, SIPOC)
Kaizen Supplies Collected?
Kaizen Pre-Work/Data Collected?
Catering Scheduled?
Kaizen Training Material Prepared?
Management Report-Out Scheduled?
Kaizen Sponsor Secured?
Kaizen Team Leader assigned?
Kaizen Target Area Selected/Scoped?
Kaizen Dates & Times Scheduled?
Kaizen Team Room Scheduled?
Kaizen Team Members Assembled (Rule of 1/3’s, SIPOC)
Kaizen Supplies Collected?
Kaizen Pre-Work/Data Collected?
Catering Scheduled?
Kaizen Training Material Prepared?
Management Report-Out Scheduled?
Kaizen Team Trained, Ground Rules Established.
Current State Condition Identified.
Opportunities for Improvement Defined.
Future State Improvements Implemented & New Process Standardized.
Management Report-Out Created & Delivered.
Adhere to the Improved Process, Continue to Improve & Retrain After Each Improvement.
Kaizen Team Trained, Ground Rules Established.
Current State Condition Identified.
Opportunities for Improvement Defined.
Future State Improvements Implemented & New Process Standardized.
Management Report-Out Created & Delivered.
Adhere to the Improved Process, Continue to Improve & Retrain After Each Improvement.
Visual Controls are in place, Maintained & Continuously Improved.
Standard Work Audits are Conducted, Economic Benefits calculated & Results Communicated.
Weekly Kaizen Newspaper Accountability Meetings Conducted.
Visual Controls are in place, Maintained & Continuously Improved.
Standard Work Audits are Conducted, Economic Benefits calculated & Results Communicated.
Weekly Kaizen Newspaper Accountability Meetings Conducted.
KAIZEN BREAKTHROUGH METHOD
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KAIZEN BREAKTHROUGH METHOD: RESULTS
(2 Days)(2 Days)
Current State Process (7 Days)
KaizenKaizen
V/C 56
Minutes
WASTE 7 Days
V/C 10 Mins
WAITING2 Days
Value-Creating WorkValue-Creating Work
WasteWaste
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Lean IT: Impact on Amway• Service Desk• Data Center• IT Asset Management• Operations• Voice Telecom• Release management• Application Development
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Service Desk• Corporate data stores
Average of 100 requests per month Original process plagued with excessive active and wait times Active time reduced from 45 minutes to 15 minutes SME provides clear direction on users’ needs Process to be leveraged globally
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Service Desk• Granting Remote Access
Focused on providing correct access without hand-offs Ensuring we meet PCI compliance requirements Decision tree developed and training provided for SD staff Standard work reduces training time
• Returned capacity = 1,400* hours (Jan-Aug 2012)
* Includes time savings in IT Security and Network Services
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What Have We Learned?• New concept to IT
Lean is traditionally associated with manufacturing Many of the things we do have a production flow to them
• Balance between focusing on results vs. learning• Staff hesitation to act without management direction
Empowerment is critical Innovation, learn by doing
• Quantified improvements vs. observed improvements
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What Have YOU Learned?
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QUESTIONS
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Tours• Service Desk• IT Operations• PC Lifecycle Lean Cell
…Please gather in the lobby…David will be your guide