Lean Thinking in Service Industry

Lean Thinking
Applying the Lean Principles of Improving Performance at less Cost to the Office and Service Industry
Professor Peter Hines Lean Enterprise Research Centre Cardiff Business School
Agenda
Professor Peter Hines The Lean Principles How do they apply in the Office Environment Examples and cases from Europe Andrew Stewart Examples and cases from Australia Where do we go from here?
Lean in the Office & Service Sector
Lean Enterprise Research Centre

Formed in 1994 by Prof Dan Jones & Prof Peter Hines
c. 30 staff now Mission
Researching, applying, Researching, applying, & communicating & communicating lean thinking lean thinking
S A Partners
En Lea ter n pr ise
Strategic Management
Inspiring success through pioneering, process-based solutions

Working in Australia with:
Supply Chain Development
x Si a gm Si
The Lean Principles
Lean Principles
1 Specify what does & does not create value from the customers perspective
not individual firms, functions
or departments
Lean Principles
2 Identify all the steps necessary to design, order, & produce the product/service across the whole value stream
to highlight non-adding value waste
Overproduction Overproduction Waiting Waiting Defective Defective products products Material Material movement movement Unnecessary Unnecessary processing processing Operator Operator movement movement
Inventory Inventory
Lean Enterprise Research Centre
Lean Principles
3 Make those actions that create value flow
without interruption, detours, waiting
Lean Principles
4 Only make/produce what is pulled by the customer just-in-time
Lean Principles
5 Strive for perfection
continually remove successive layers of waste as they are uncovered
10
Value Stream Management Framework

Shared Vision
l na tio nc Fu ms s- ea os T Cr
De Po pl lic oy y m en t
Common Goals
Value Stream Management
Pr Lea To oc n ol ess -K it
Extended Enterprise
in ha C on ly a t i pp gr Su Inte
Tools aligned to need
11
Lean in an Office Environment
Lean in the Office & Service

UK is Predominantly service based economy
Service sector provides 71% of Gross Value Added 79% of all jobs (National Statistics)
Significant growth of application of lean in services Much initially concerned back office manufacturing
i.e. that support manufacturing
Now spreading to pure service industries

Retail, health, repair & overhaul, financial services, insurances
13
Tangibility Spectrum
Salt Soft Drinks Detergents Cars Fast food Cosmetics outlets
Intangible Dominant
Tangible Dominant
Fast food outlets
Advertising agencies Airlines Consulting Teaching
Source: Shoestack (1977) in Services Marketing, Zeithaml & Bitner
Your Organisations
In groups Thinking about lean principles & the nature of service based organisations, consider:
What might be the challenges for applying lean thinking principles in an office or service organisation?
Score these challenges in terms of importance (1 - not very, 5, Very)
15
Symptoms of Information Waste

Bottleneck Departments No Standard Work Practices Errors and Rework Long Unpredictable Lead Times Many Validation Checks Official/Unofficial Fast-Tracks Ineffective Workload Scheduling No Root-Cause Analysis
16
STORAGE - When the item is stored
DELAY - When the item is waiting
Store documents and records or data in a computer file
Waiting for the computer system to process the application
TRANSPORT - Movement of an item

Customer
INSPECTION - Insuring that everything is correct by overseeing

Please could you sign this
The distance an application travels within the organisation
Obtaining a signature to permit the next step
Services Challenges
Understanding customer needs and expectations for services Tangibilising the service offering Dealing with a myriad of people & delivery issues Keeping promises made to customers Variation & capacity
18
Nature of Demand
Value demand: the demand you want Failure demand:
demand caused by a failure to do something or do something right for the customer Mistake in treating all demand as units of production Planning tools developed some time ago. Now variety of demand v different cannot see demand
19
Failure Demand - Examples

Sorry, I pressed 2 and I thought it would get me to the claims department Youve sent me the wrong one The goods you sent me are damaged
The water is too cold Its broken down again I dont understand the letter you send me Waiter, wheres my soup? Ive been waiting in all morning, you said youd be here where are you You said youd repaired the fault in my car but it still does not work
The consequence of excess failure demand?
Examples from Europe
Simple Case
Welsh Legal Services Commission Mapping the Correspondence Process
Part of the Mapping Team

not sure about this lean stuff, dont think it will work here
24
and the rest of the Lean Team

Its good to involve everyone and it seems to be making sense
25
Customer Service Team

Monicas Table
Finance
Charge C/W Non Charge C/W
Filing
Reception
Senior Time Finance C/W
Resource
Standards & Comments
2 - 7.5 2 hrs hrs

No Finance Yes
Variance depends on Case Worker, variable location of sort
Legal/Means Phase 2
Finance Phase 2A
No Charge Yes Charge Non Charge
Finance Phase 2A: LSC Current State
2 hrs 1 wk 34 wks 1 hr
Backlog calculated using oldest date (worst case scenario) Not FIFO
Tag
1 hr
Reception Tag & Filing All file requests dealt with at the same time
Pull Need Yes File No No Skills Yes Process Post Post Bucket Skills Yes Process Post Post Bucket Post Bucket No 4 Senior Case Work Get File
0.25 hr 39 hrs 0.1 2 hrs
Assume 1 person processing post
Unable to quantify referral time
1 wk
0.5 hr
13 to 248 days
3:20 to 5:15 hrs
Total
26
Charge
Non Charge
Filing
Senior Case Worker
Time
Resource
Standards & Comments
Charge with files
Non Charge With files
Training needed / cultural issues to be addressed
Read Letter
Read Letter
Finance Phase 2A: LSC Future State

No Referral
Charge post is sent to C/W with 10 15 10 15 File (no need to pull file at later stage)
mins
mins
Finance Phase 2A
No Skills Yes Skills Yes
Need No File Yes Get File
Need File Yes Get File
No
Referral process: Matter would always be passed back to C/W after the Senior C/W has considered it, either with a work solution or guidance notes. This box to be emptied once daily 5 mins 5 mins (allocation rota)
Pull File
Non Charge post, where file 2 hrs if 5 mins needed, files to be supplied by rqrd filing 4 times daily (2 am, 2 pm) 10 mins10 mins from a tray in each pod. This activity is a priority
Process
Process
Process
2 hrs
2 hrs
Post Bucket
Post Bucket
Post Bucket
5 mins 5 mins
Calculated per piece of post Post split into 1st, 2nd, Dx
30 mins 30 mins to 4 hrs to 2 hrs 25 mins 30 mins
Total
27
After the Lean Thinking Event Reduced by 197 and age clear
Complex cases Mixed cases
28
Cases Awaiting Attention

700 800 500 400 600 900 300 200 100 0
Non Charge Correspondence Weekly Carried Forward Figures (by week)
Week 1 Week 2 Week 3
Date 2004 - 2005

Week 4 Week 5 Week 6 6+
2n d A 16 pr th A 30 pr th A 14 p r th M 28 ay th M a 11 th y Ju n 25 th e Ju ne 9t h J 23 uly rd Ju 6t ly h A 20 ug th Au 3r g d S 17 ep th Se p 1O 1 5 ct th O 29 ct th O c 12 th t N 26 ov th N 10 ov th D 24 ec th D e 7t c h Ja 21 n st Ja n 4t h F 18 eb th Fe 4t b h M ar 18 th M ar

29
Summary of key benefits

Turnaround time from 7 months to max time of 5 days (3 day for simple) Remove Waiting, Unnecessary backlog and Inappropriate processing Improved staff morale Improved customer relations and satisfaction Lack of waste/efficient processes
30
Detailed Case European Insurance

Company
Setting the Context

Major Insurance player in Global market with Offices in over 20 countries Total turnover of approx 1.2 billion worldwide UK & Ireland accounted for 145m approx. Looking to grow the business to 200m by 3 years and profit from 0% to 15% ROS
32
Value Criteria
Rank
Insurance Company Performance Vs

Your Expectations Our Competitors Your best Other Supplier
Better than Same as Worse than Better than Same as Worse than Better than Same as Worse than
Quality Decision
1
Quick Decision
4
Price
2
Cover
3
Support
5
33
Competitive Environment
Factor
Products
Issue?
Products are not differentiated for our customers Little Innovation
Significance Short Term?

Compete on price
Significance Long Term?

Constrains growth
Competitors
New Players Changing main competitors
Stops ability to increase price Consuming new business
Competition hits critical mass/market share Opportunity to lead
Brokers
Dominated by two players who do not add value Brokers become competitors Self Insurance dont buy it Credit Information
Quoting Nett transparency Lost business and devalue our product Lost business and inability to increase price walk away
Redefine distribution channels Reduced distribution costs
Substitutes
Shrinking market and potentially invalidates the market Need for repositioning as a broader offer
34
Internal Environment
Strengths Knowledge and expertise of people systems, process, country risk, Geographical coverage Pay and conditions. Integrated IT systems Multi national proposition Centres of expertise. Insolvency and recovery expertise Depth and breadth of product range Good relationship with existing customers Opportunities Market is looking for an efficient producer. Weak competitors New owners? Weak Brokers. Direct distribution Quoting Net Trade sector activities. Cross unit alignment Group leverage on sales. Weaknesses Skill sets around buyer underwriting Operating Model Too many people in the comfort zone Flexi time Pay structure inflexible. Systems are inflexible Centres of expertise. Lack of one culture Group shackles? Play by the rules too often Lack Threatsof team working of this team Re-insurance pull out of market. Re-insurance New competitors More sophisticated customers. Self imposed constraints. Global economic situation.
35
Ansoff Matrix Where will we grow?

Existing Products /New Consumers Trade sector alignment efficiencies New Products /New Consumers SME product
Specialist capacity issues
20m in Years 1- 4
Existing Consumers /Existing Products.
6m in Year 2-4
Existing Consumers / New Products
New business replaces lost business

MRA income Price increases Additionality.
SME product trade finance Integrated recovery fee. Specialist capacity issues
0m in Year 1- 4
5m replace lost business
9m in Year 2-4
36
The Implications of these choices!

Existing Products /New Markets New Products /New Markets
Sales Acquisition Process
H ig h
r is k
Existing Markets /Existing Products

Order Fulfillment Supply Chain NPI
Existing Markets / New Products
NPD Process
37
Strategic Direction Statement

We will: Grow the Credit Insurance business to 200m by 2006, delivering 15% return on sales. Delivering outstanding service at reasonable prices and delivering greater retention Delivering significant growth from new sales Developing integrated and aligned new offerings and then taking them to new markets. Achieving greater trade sector alignment Creating a culture of innovation and performance within our business. Turn the UK business into a leading performer within the Group, securing its future and the future of our people
by:
in order to:
38
Our Critical Success Factors

The ability to.
manage the relationship with the wider group successfully understand, achieve and proactively manage customers expectations operate joined up, cost effective processes agree a common goal, through supportive culture and trust in our people. spot and convert growth opportunities in sales in current and new markets innovate in new offerings. identify and respond to changes in market conditions deliver the right number of appropriately skilled, motivated people.
39
The Appropriate Measures

Critical Success Factor
manage the relationship with the wider business successfully understand, achieve and proactively manage customers expectations operate joined up, cost effective processes agree a common goal, through supportive culture and trust in our people. spot and convert growth opportunities in sales in current and new markets
Measure
STRATEGIC ISSUE Customer Perception index. Speed Quality Profit Claims ratio. Cost ratio Culture index
Got one?
N Y N Y Y Y N
Customer retention % sales from new markets % sales from current markets Portfolio value % sales from new offerings Speed to Market STRATEGIC ISSUE People satisfaction index Skills index
Y N Y Y N N
innovate in new offerings identify and respond to changes in market conditions deliver the right # of appropriately skilled, motivated people.
N N
40
Lean Order Fulfilment Process

We will:
by:
Grow the Credit Insurance business to 200m by 2006, delivering 15% return on sales. Delivering outstanding service at reasonable prices and delivering greater retention. Delivering significant growth from new sales developing integrated and aligned new offerings and then taking them to new markets. achieving greater trade sector alignment Creating a culture of innovation and performance within our business.
in order to:
Turn the UK business into a leading performer within GERLING NCM, securing its future and the future of our Lean in the Office & Service Sector people
42
The Current State
See the wall charts

43
Current State Summary

Time Line (days) Resource (man-days)
Min Typical (BUS) Typical (JUMP) Worst case (BUS) Worst case (JUMP) 1 7.25 33 40
Max 18 65 199 281
Min 0.1 0.2 3.6 3.6
Max 0.4 17.7 27.2 27.4

44
Features of the current state

Customers information comes in to many possible locations. Lots of delays Lots of reworking information key information not available when required. Dont talk to each other across departments Authorisation based on value, not on risk causing significant delays We have 77,500 applications for 5k or less (26%)
64% are for SME customers
45
Features of the current state

Customer doesnt follow rules and neither do we!. Risk averse at the moment automatic underwriting not being applied. Using the wrong measures and targets driving departmental behaviour. Cross-country targets and standards / criteria are different. Currently employing 1 FTE person just to input applications
46
Analysing the map

Major Wastes / Issues Root causes Process
Multiple points of entry. Some get delayed and some may get lost causing delays and lost applications (10% of applications
dont use the on-line system) * No overall single point of entry for customers.
Opportunities Process
Enforce a single point of entry for customers that do not use the on-line system. Ensure that all possible customers use the system on all possible occasions.
Cultural
People dont like saying NO to customers.
Cultural
Educate internal staff and customers to help to build relationships.
47
Future State Summary

Time Line (days) Resource (man-days)
Min Typical (BUS) Typical (JUMP) Worst case (BUS) Worst case (JUMP) 1 2 18.67 19.67
Max 2 2 99.25 100.25
Min 0.0 0.1 1.7 1.7
Max 0.1 0.2 6.5 6.5

48
The Benefits
Time Line Current Future 1.5
Resource
Current 0.3
Future 0.1
Bus
Typical Worst Case
9.5
Average of 116.0 72% reduction59.0

36.1 160.5 2.0 60.0
Average of 15.4 5.0 69% reduction

9.0 15.5 0.2 5.0
Jump
Typical Worst Case
49
Lean Sales Acquisition Process

We will:
by:
Grow the Credit Insurance business to 200m by 2006, delivering 15% return on sales. Delivering outstanding service at reasonable prices and delivering greater retention. Delivering significant growth from new sales developing integrated and aligned new offerings and then taking them to new markets. achieving greater trade sector alignment Creating a culture of innovation and performance within our business.
in order to:
Turn the UK business into a leading performer within GERLING NCM, securing its future and the future of our Lean in the Office & Service Sector people
51
The plan
We had already completed mapping work within the UK division and had identified major savings within their Order Fulfilment process Having improved the speed & quality of their existing offering to existing customers, they then needed to turn their attention to growing new business The plan was to map their current Sales Acquisition Process and look at designing an improved process at no additional cost to the business
52
REFCLA Goes Into Working Tray Receiving Information
Phases
RS
REFCLA into W/F Tray
Participants/Stakeholders
CST AM * IF
Policy Breach
Time Line CUST BUYER Min Max
Resources ALLRS All info available
Standards/Criteria
Pol Decision
1 10 days
+2-3 days Meeting + 1-2 days Meeting +1day Meeting
1 min
Before it is looked at query 10 day print?! All info either + or Info available online, in system Within Authorities Within TPE levels sub
+2-3 days Take Decision Y
+2-3 days Meeting
Meeting
15-25 mins
Ring Customer
21-26
Decision Taken
Y
Ring Customer for further info Meeting for further Info Ring Buyer? Y
70% of cases we have enough info to underwrite on
Current state Four Fields map
Meeting with Buyer Info can be provided
Info to CST Info to U/W Analyse Info Decision Taken Y Decision Taken
Info to CST
Info to CST
Y Info to CST
5-10 mins 2-3 days Issue: Cancellation of CLA why would U/W? 3-13 days 26-36 mins
Confirmation of Decision
Phases
Risk Services
RECLA into Tray
Future State REFCLA goes into Workflow Tray & Receiving Information Time Resources Participants/Stakeholders Line Account Mngr Customer Buyer 0
Policy Breach
Standards
Automatic allocation (to Invo. U/W) Within Authorities Within TPE levels Mandate to enable U/Ws to divulge customer name (our insured) when contacting buyer for information Customer & Buyer details are correct on the system Buyer/UW contact encouraged to help build relationships for portfolio control (Feasibility of someone else sourcing info for UW work already completed not practical in this context) Process in place to capture up to date info for active buyers AU Principles & practicalities agreed
Look at Case & Analyse
6-16 mins
Take Decision?
Meeting for Info
Meeting for info
10 mins
Future state map
Credit Limit Decision Issued
Info is provide
Info to Underwriter
Analyse Info
5-10 mins
Take Decision?
Y
Credit Limit Decision Issued Credit Limit Decision

Letter 1 21-36mins
Across group - What if examined to ensure max % (X) automatically underwritten Main speed of service target =no REFCLA in any tray older than X days Fully utilise credit check facility (review threshold of 10K? & price differential between credit check & credit limit) Group wide agreed priority progress in place Authority thresholds are value at risk & lay with nominated individuals rather than committee Interface system errors resolved within 24hrs Small limits thresholds reviewed Reduce amount of paper sent to imaging Quality measure to be defined
53
Mapping the Sales Acquisition Process
54
The maps
55
What we found
The business operated almost 100 % via brokers to whom they were paying commission of 15% direct to the brokers - 15.5m The brokers were not giving good value for money and were not accurately interpreting the VOC The conversion rate for enquiries was very low On the very odd occasion where they dealt with the customer direct, the level of conversion was very high over 80% No cohesive marketing strategy to support the Sales Acquisition Process hence low enquiry level The company were effectively order takers as opposed to order getters
56
The process current state

Phase 1
Setting Direction
Phase 2
Market Research
Phase 3
Making Contact
Phase 4
Selling In
Phase 5
Selling On
100 %
50%
t ra teg
0 %
g tin rke Ma No
Enquiry rate 25%
Conversion rate 8%
Retention rate 75%
No S
current
57
What we did
We devised a new future state Sales Acquisition Process with the team which removed their sole reliance on brokers and enabled them to get a clear understanding of the Voice of the Customer We devised a new sales structure to help them achieve this We identified the skills required at each phase of the process We identified the need for measures & targets at each phase of the process The new process will enable major sales performance improvement at no additional cost to the business
58
How the future state compared

Phase 1
Setting Direction
Phase 2
Market Research
Phase 3
Making Contact
Phase 4
Selling In
Phase 5
Selling On
100 % 50%
ot a
0 %
st ra te gy
G ot
Enquiry rate 25% 50% Conversion rate 8% 50% Retention rate 75% 95%
a pl an
G
Current Future
59
The Process Benefits

Credit Insurance
Time Days Per TS 50 ( 700) 96 1.2 Reg & SME Key Acct Global Min Max Min Max 91.5
Current
Resource s Days 14 9 0.090.12 5.25
Future
Time Days See 2 217 See 4 35 84 84 33 47 59 30.40 47.8 Resourc es Days See 2 25.4 See 4
Change
Time Days See 2 0.72% See 4 Resources Days See 2 10.00% See 4 -88% -24% -24% 50%
Phases 1. Trade Sector Development (per TS) 2. Strategy - targeting customers/sectors 3. Enquiry Received (accepted/rejected) 4. Enquiry accepted to closure
5. Servicing
Average of 128 5.25 180 40% 7.9 reduction 44 1.15 Sales Closure 145 13.5 speed 13.5 145
91 121.5 0.5 1
0.65 -38% 4.00 -38% 4.00 -65% Average of 0.75 2.20 3 0.40 0.80
reduction in -25% man hours -35%

-68% -59% -84% -78% 0.67% 0.61% 0.46% -10% -20%
6.1 Renewal process (Reg & SME) 6.2 Renewal Process (key acct & global)
94
4.5
51
-0.33%
60
Business Benefits Summary

Much improved levels of enquiry from 25% to 50% Substantial conversion rate improvements from 8% to 50% Much improved bottom line performance (15.5m Commission) Major reduction in Customer waiting time identified over 40% Dramatic reduction in man hours identified - over 50% Planned Sales growth being achieved - 145m to 200m by 2006
61
Australian Case
Type One Orders Current State Level 2 Summary

Australian Wine Producer
Number TRIGGER 1 2 3 4 Total Step RECEIVE ORDER (PHONE) WRITE ORDER TO STARTRACK CREATE DESPATCH LABEL ENTER ORDER PROCESS PAYMENT & TO DESPATCH Area ADMINISTRATION ADMINISTRATION ADMINISTRATION CELLAR DOOR CELLAR DOOR Distance (Metres) 6 8 49 51 114 Ave Time (Minutes) 2.4 1.6 16.8 13.3 21.8 56 People O 7 11 10 3 10 41
Examples of the Underlying Cost
1.6
FLOW (MINUTES) T I 2.2 0.2 1.0 0.2 1.7 0.1 1.2 2.4 8.5 0.5
D 0.4 15.0 10.5 19.4 45.3
1.6
Average process time 56 minutes Delays 45.3 minutes (81%) Transport 8.5 minutes (15%) 41 people actions
63
Type One Orders Current State Identified Areas of Opportunity
Geographic location of functions (Admin, Cellar Door, Despatch) Separation of order taking and order entry Delays due to the manual transportation of information Frequent small transportation steps of information
64
Type One Orders Future State Level 2 Summary

Number Step Area ADMINISTRATION ADMINISTRATION ADMINISTRATION Distance (Metres) 6 8 14 Ave Time (Minutes) 1.9 0.6 36.2 39 People 6 5 10 21 O 1.1
TRIGGER ENTER ORDER & PROCESS PAYMENT 1 WRITE TO STARTRACK 2 CREATE DESPATCH LABEL & TO DESPATCH Total
FLOW (MINUTES) T I 0.7 0.1 0.6 1.7 0.1 3.0 0.2
34.4 34.4
1.1
Lead time reduced by 17 minutes (30%) from 56 minutes to 38.7 minutes Delay reduced by 10.9 minutes (24%) Transport reduced by 5.5 minutes (64%) People interactions reduced by 20 (48%) Due to removal of one geographical location the movement of people is reduced
65
Type One Orders Future State Summary
Average Process time (mins) Current State Future State Reduced by 56 39 30%
Delay Time (mins)
Transport Time (mins)
Delay Frequency (steps) 4 2 50%
Transport Frequency (steps) 38 20 47%
Geographic Locations
45.3 34.4 24%
8.5 3.0 64%
3 2
66
Type Two Orders Current State Level 2 Summary
Average process time 4418 minutes Delays 4318 minutes (98%) Inspection 14 minutes (0.003%) Picking transport 62 minutes (1.5%) Manual transport 22.8 minutes (0.5%) 36 people interactions
67
Type Two Orders Current State Identified Areas of Opportunity

Order visibility. Stock visibility to allocation sheet. Manual transportation of information. Visibility of up to date stock on hand and location. Manual creation of picking slip. Stock accuracy. Warehouse space.
Aged and obsolete goods (150 pallet positions identified) Broken pallets at fronts of rows (due to Cellar Door).
68
Type Two Orders Future State - Estimated Level 2 Summary
Lead time reduced by 1,576 minutes (36%) from 4418 minutes to 2842.1 minutes Delay reduced by 1558 minutes (36%) Transport reduced by 4.8 minutes (5%) Inspection reduced by 13.3 minutes (92%) People interaction reduced by 21 (58%) Distance travelled reduced by 241 metres (80%) All wasteful activity has been minimised
69
Type Two Orders Future State Summary
Average Process time (mins) Current State Future State Reduced by 4418.2 2842.1 36%
Delay Time (mins)
Transport Time Inspection Time Delay (mins) (mins) Frequency (steps) 84.8 80.0 5% 14.4 1.1 92% 8 3 62%
Transport Frequency (steps) 25 11 56%
Inspection Frequency (steps) 7 1 85%
Geographic Locations
4318.0 2760.0 36%
2 1
70
Where do we go from here?
Any Questions?
72

Lean Thinking in Service Industry

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Lean Thinking

Lean Enterprise Research Centre

Lean in the Office & Service Sector

Inspiring success through pioneering, process-based solutions

Supply Chain Development

Lean in the Office & Service Sector

The Lean Principles

Lean in the Office & Service Sector

Lean Enterprise Research Centre

Lean in the Office & Service Sector

Lean in the Office & Service Sector

Lean in the Office & Service Sector

Value Stream Management Framework

Value Stream Management

Tools aligned to need

Lean in the Office & Service Sector

Lean in an Office Environment

Lean in the Office & Service

Now spreading to pure service industries

Lean in the Office & Service Sector

Fast food outlets

Advertising agencies Airlines Consulting Teaching

Source: Shoestack (1977) in Services Marketing, Zeithaml & Bitner

Score these challenges in terms of importance (1 - not very, 5, Very)

Lean in the Office & Service Sector

Symptoms of Information Waste

STORAGE - When the item is stored

DELAY - When the item is waiting

Store documents and records or data in a computer file

Waiting for the computer system to process the application

TRANSPORT - Movement of an item

INSPECTION - Insuring that everything is correct by overseeing

The distance an application travels within the organisation

Obtaining a signature to permit the next step

Lean in the Office & Service Sector

Lean in the Office & Service Sector

Failure Demand - Examples

The consequence of excess failure demand?

Examples from Europe

Part of the Mapping Team

Lean in the Office & Service Sector

and the rest of the Lean Team

Lean in the Office & Service Sector

Customer Service Team

Charge C/W Non Charge C/W

Senior Time Finance C/W

Standards & Comments

2 - 7.5 2 hrs hrs

Variance depends on Case Worker, variable location of sort

No Charge Yes Charge Non Charge

Finance Phase 2A: LSC Current State

0.25 hr 39 hrs 0.1 2 hrs

Assume 1 person processing post

Unable to quantify referral time

3:20 to 5:15 hrs

Lean in the Office & Service Sector

Senior Case Worker

Standards & Comments

Charge with files

Non Charge With files

Training needed / cultural issues to be addressed

Finance Phase 2A: LSC Future State

No Skills Yes Skills Yes