Download - Amway Lean Office Hdi 2
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West Michigan HDI
October 10th, 2012
Amways Lean Office Jou
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Agenda Welcome
Jill Bierens Manager, Global IT Service Desk Lean Office Overview
Stephen SweersManager, OPX Lean Office
Amway IT Results
David DrakeLean Leader, IT
Jill Bierens
Daniel Uecker-HermanLead 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 More than 900 patents granted and more than 800 pend
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The Heart of Amway
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Amways Global Service D
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 HQ
6:30am7:30pm 7:0
Amways Global Service D
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Identify and eliminate wasteful process steps in a systematic
More than 60% of the cost of a product or serviceis attributab
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 redepfurther grow the business
WHY LEAN OFFICE?
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KAIZEN DEFINED
Kai
change(revolutionary)
zen
good (sacrifice)
Self
WhippedBack
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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
Defects
Over-productionWaiting
Not engaging people
Transportation
Inventories
MotionExcess processing
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ELIMINATE WASTE
Unevenness
Can often be eliminated by managers through level schedu
careful attention to the pace of work.
Overburdening
Workers by requiring them to operate at a higher pace, wit
effort and for a longer period of time than appropriate wor
management allows (target utilization @ 85%).
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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
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LEADERSHIP BEHAVIOR
It can and must bSome have it, some do notProblem Solving Skills
People will feel e
receive positive s
problems
People will not accept blame
unless forced to
What are the assumptions about
people?
Call attention to t
assistance, to lea
problem in the fu
Solve the problem on your own if
at all possible
What should the individual who
makes a mistake do?
Management (95The person who makes the
mistake (5% of the time)
Who is responsible?
The System (5The Individual (5 Whos)What is the cause?
A deviation from The result of someone messing upWhat is a problem?
Lean MaTraditional ManagementCritical Questions
It can and must bSome have it, some do notProblem Solving Skills
People will feel e
receive positive s
problems
People will not accept blame
unless forced to
What are the assumptions about
people?
Call attention to t
assistance, to lea
problem in the fu
Solve the problem on your own if
at all possible
What should the individual who
makes a mistake do?
Management (95The person who makes the
mistake (5% of the time)
Who is responsible?
The System (5The Individual (5 Whos)What is the cause?
A deviation from The result of someone messing upWhat is a problem?
Lean MaTraditional ManagementCritical Questions
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THOUGHT-PROVOKING QUESTIONS To what extent are your Functions goals linked to Enterprise Goals? Can you identify all of your Functions intern
Do you know all of the products and/or services your Function provides
its customers?
Do you know your customers requirements
and/or services?
Do you measure Functional performance on the basis of how well yourproducts and/or services meet your customers requirements?
Can you identify your Functions internal and
Do you establish clear goals for the products and services provided to
your Function by your suppliers?
Do you have documentation of your Functio
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 performanc
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 (remo
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 en
design, job goals, feedback, rewards, resourc
to make their maximum contributions to pro
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
DEPLOYMENT MODEL: PHASE 1
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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
Key Functional Areas (ex: Planning, Procurement, QA, R&D, IT, Sa
Impact on: Throughput Time Variation (Operational Lead Time Improveme
Right 1st Time Quality Improvement
DEPLOYMENT MODEL: PHASE 1
STABILITY
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LEAN OFFICE SPECIALIZATION: INS
Specialized work No level loading
Work duplication
No realization of w
OFFICE EMPLOYEES SPECIALIZATION
Breadth of Knowledge
Employees typically retain 80% of tknowledge.
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LEAN OFFICE SPECIALIZATION: STA Multi-Skilled
Multi-Process Handling
Level loaded @ 85% of
OFFICE EMPLOYEES GENERALIST
Shared Knowledge
Skills/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 & sup
Create expectation for annual improvement in: Right 1stTime 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) you
makes and delivers to your customers? Or, what causes you the mostp
Brainstorm!
2. Select one output (product or service for your customer), assemble a t
together explore using the SIPOC Tool (Supplier/Input/Process/Output
3. Plan your 3-5 Day Kaizen Event using your completed SIPOC as a guide
want to include the voices of suppliers, processors, customers and out
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
Meijer
Kitchen
36 Minutes Total Time
2 ea Eggs
Cup Water
Cup Vegetable Oil
8 X 8 Pan
Shortening or CookingSpray
Large Mixing Bowl
Wire Whip or LargeSpoon
Electric or Gas Ovencapable of reaching 350F
Cooling Rack
Knife
Spatula
Serving Plate
PREHEAT: oven to 350F for glass ormetal pans, 325F for dark or non-stick
pans.
GREASE: bottom of pan with shortening
or cooking spray.
MIX: empty brownie mix, eggs, oil and
water in large bowl.
STIR: until well-blended (about 50
strokes). SPREAD: in greased pan and bake
immediately.
BAKE: following times listed per pan
size (ex: 8 X 8: 42-45 Minutes. Add 3-
5 minutes for dark or non-stick pans.
DONE: when inserted toothpick 1 from
edge of pan comes out clean.
COOL: completely in pan before cuttingand serving.
2 X 2 FudgyBrownie
Warm & Gooe
Served on 6Serving Plate
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1. Pre-Event
Planning
1. Event
Execution
1. Post-EventMonitoring
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 1/3s, SIPOC)
Kaizen Supplies Collected?
Kaizen Pre-Work/Data Collected?
Catering Scheduled?
Kaizen Training Material Prepared?
Management Report-Out Scheduled?
Kaizen Team
Established
Current Sta
Opportunit
Future Stat
New Proces
Manageme
Delivered.
Adhere to t
to Improve
Improveme
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
KAIZEN BREAKTHROUGH METHOD:
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KAIZEN BREAKTHROUGH METHOD:RESULTS
(2 Days)
Current State Process (7 Days)
Kaizen
WASTE
7 Days
V/C
10
Mins
WAITING
2 Days
Value-Creating
Work
Waste
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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 tim
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 directio Empowerment is critical
Innovation, learn by doing
Quantified improvements vs. observed improvemen
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What Have YOULearned?
QUESTIONS
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QUESTIONS
T
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Tours
Service Desk
IT Operations
PC Lifecycle Lean Cell
Please gather in the lobby
David will be your guide