Month: March 2017

A common misconception is that lean is only suitable for manufacturing but have a look at the article below and see how lean can be applied in the creative world and professional services.

Lean – first of all, what is it?

The core philosophy of lean is the elimination of waste. While it is easy to identify physical waste the greater challenge in most organisations is to identify the waste of time and resources. Most organisations are extremely busy, fire-fighting and pressure to meet deadlines are a way of life. Lean provides a structured approach and tried and trusted methodologies to eliminating wasted effort in organisations. It goes beyond the sloganeering of “work smarter not harder” and shows people how to analyse the true value of their work and eliminate non-value added activities.

A popular misconception is that lean is suited only for manufacturing. Not true. Lean applies in every organisation and every process. It is not a tactic or a cost reduction program, but a way of thinking and acting for an entire organisation.

The starting point of any lean programme is Value Stream Mapping. This involves the people working in the process stepping back and mapping the process to identify the value and non-value activities they regularly engage with. From here several techniques are employed to get to the root cause of the non-value add activities. The result is an increase in the effectiveness of the individuals or team performance.

Lean is not a stand-alone programme but supports the implementation of policies and procedures in a meaningful way. It is a change management programme and as such will require the engagement of employees fully. Therefore, it is important that a lean initiative is not seen as the “flavour of the month” or something that is imposed by senior management. Key to success will be introducing a lean programme in such a way that employees see the benefits of the programme and that it is fully supported by the leadership of the organisation. All successful lean initiatives recognise that people are the key to success and as such LEAP are well equipped to support the people development element of the programme.

Examples of Lean in practice.

  A Design Studio

A design studio in a printing company kept five fully committed designers very busy. When we analysed how many hours of their working week was billed to customers (Value add work) we discovered that they were 52 efficient. The remaining 48 of their time was non-value added work. This was the time spent answering queries from production, requesting further information from clients, clarifying issues with the sales teams etc.

The first thing we did was create an “Interruptions Board” We assigned one of the five designers to deal with all interruptions. Each of the five were assigned one day per week as their day to deal with interruptions. On their assigned day, they would deal with the call or visitor and place their query on the board under the name of designer the query was directed towards. That designer would then deal with the query when he/she was taking a break or at the end of the day. This allowed four designers to work uninterrupted every day.

Following on from this, the designers could look at the nature of the interruptions and through using lean techniques were able to establish the root cause of the interruptions. Working together with production, clients and sales team they developed systems to reduce the non-value added activities.  The increase in value added activity in the studio increased from 52 to 83 within months and they continue to uses the methodology for continuous improvement.

 Accountancy Practice

When you visit an accounts office the “work” is invisible, in other words you see lots of people sitting at computer terminals. It is impossible to determine how effective the operation is or how efficient each individual is. There is no doubt that everyone is “busy”.

By undertaking Value Stream Mapping, we were able to see that most of the work that came into the office had incomplete paperwork, forms missing, items not attached etc. This meant that when employees started a job they were not in position to complete it. This necessitated making a phone call or emailing a client to request the full information. The job was set aside until the information was made available. They then started another job and the same thing happened. This resulted in a huge amount of Work In Progress. There was confusion as to the status of individual jobs, clients not returning information, forgetting to chase up etc. This kept everyone busy.

When we demonstrated this by graphing the workflows we then set about doing a root cause analysis to develop systems and processes to prevent incomplete jobs entering the system. We also created a visual system that could measure the improved efficiency of the department. It resulted in much better management of peak times in the business such as year-end accounts. There was less stress for the staff and the necessity to work late in the evenings disappeared.