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People, not working in manufacturing, often tell me they don’t think this Lean “stuff” is
applicable to their service context. Particularly not when their service involves servicing a
physically present customer that is, therefore, an intrinsic part of the process. Still, I see them
struggling (as a consultant or customer) with reducing their service lead times or turnaround
times. I am thinking of vessel turnaround times in a port, truck turnaround times at a
warehouse, airplane turnaround at an airport, a visit to the outpatient department, performing
scheduled maintenance, or the duration and length of roadworks resulting in traffic jams, just to
name a few. To me, they all share the same challenge. Namely, to ensure the shortest, reliable
time span in order not to waste any of the (internal) client’s valuable time. So why not use quick
changeover principles in reducing these turnaround times?
Wasting Time
When service lead times are long (and unpredictable), customers suffer. The service provider
wastes their valuable time, even irritates their clients. Afterward, customers speak negatively of
the organization towards others. Chances are that customers walk out on their service
provider, or potential customers are turned off by what they hear.
But not only customers feel the impact. Long turnaround times also affect the organization
itself. Then long lead times imply a high occupation of service personnel and means. Think of
cranes, docks, forklifts, counters, ticket windows, tools, waiting areas and so on. Ultimately,
this means you need more of them. So, long lead times typically imply higher cost compared to
organizations that have shorter service times. And as the service experience also suffers as
indicated, both the top and bottom line quickly deteriorate.
Quick Changeover
In these situations, the approach to quick changeover (QCO) in manufacturing can very well
help service providers to significantly reduce their turnaround times. This approach is
commonly referred to as SMED, Single Minute Exchange of Die, referring to its origin as it
focused on quick die change or QDC.
Shigeo Shingo’s SMED method basically consists of analyzing the changeover process of a
machine (while changing from one product type to another). It calls for separating so-called
internal from external operations, convert internal operations to external, and to then improve
each changeover operation to reduce its time. Internal activities can only be performed when a
machine is stopped. External ones can be done while the machine is still running.
In a service environment, this changeover method very well translates to operations. There are
activities that need to be done with the customer present (“internal” operations). And there are
operations that can be done without the customer truly being required (“external” operations).
Typical external operations in a product changeover are machine settings, tool and parts
preparation and staging, data and document collection and preparation, reporting, transport,
and checks. Organizations can perform these either before the actual vessel, truck, car or
client arrives on-site or after it or he/she leaves.
Speeding Up Service Using Quick
Changeover
In service environments, applying quick changeover or QCO techniques implies providing data
before actual service provision, instead of including data collection during the service provision.
Advanced Shipping Notice (ASN) or Dispatch Advice (DESADV) messages through EDI do
exactly so, providing the receiving warehouse with shipment data well in advance of the actual
delivery. Capturing required client data from patient files or via secured web portals before the
actual hospital visit is another.
Stop multi-tasking is another important element in speeding up service. When starting with a
client, finish it before starting work on another client. As the saying goes: “stop starting and
start finishing”. Multi-tasking lengthens the lead time of all individual clients. So, focus and
finish.
It implies performing quality checks at the supplier to eliminate the need for checks during
receiving or discharging. Or assessing the status of required equipment before the actual work
commences. Separating diagnosis from repair activities, to enable improved “off-line”
preparation of the actual maintenance job, is yet another example. Companies that pre-stage
skids in truck images, ready for loading when the truck arrives, greatly reduce their truck
turnaround times. And there is a reason why you pre-board before the arrival of the plane at
EasyJet. It allows EasyJet to quickly turnaround the plane.
Road construction provides ever-better examples (accompanied by impressive time-lapse
videos). Road construction companies pre-cast elements and transport these to the
construction or road work areas or even produce these elements on-site. And they move these
into position during the night or weekend. This significantly reduces the nuisance to traffic.