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West Michigan HDI October 10 th, 2012 Amways Lean Office Journey.

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Presentation on theme: "West Michigan HDI October 10 th, 2012 Amways Lean Office Journey."— Presentation transcript:

1 West Michigan HDI October 10 th, 2012 Amways Lean Office Journey

2 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, IT Jill Bierens Daniel Uecker-Herman – Lead Service Desk Technician Q&A Optional Tour: IT Operations, ITAM, Lean Cell

3 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

4 The Heart of Amway

5 Amways 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

6 Current State Strategy Four regions Follow the Sun Standardized processes Caller Ada HQ 6:30am–7:30pm Malaysia 7:00am-7:00pm IT Operations Weekends & Holidays Amways Global Service Desk

7 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?

8 KAIZEN DEFINED Kai change (revolutionary) zen good (sacrifice) Self Whipped Back Sheep Altar

9 Quality: How to improve it? Cost: How to reduce it? Delivery: How to ensure it? Talent: How to develop it? LEAN OFFICE ISSUES

10 ELIMINATE WASTE The 8 Wastes Defects Over-production Waiting Not engaging people Transportation Inventories Motion Excess processing

11 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 85%).

12 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

13 LEADERSHIP BEHAVIOR

14 THOUGHT-PROVOKING QUESTIONS To what extent are your Functions goals linked to Enterprise Goals?Can you identify all of your Functions internal and external customers? Do you know all of the products and/or services your Function provides its customers? Do you know your customers requirements for your Functions products and/or services? Do you measure Functional performance on the basis of how well your products and/or services meet your customers requirements? Can you identify your Functions 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 Functions 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?

15 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

16 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 1 st Time Quality Improvement DEPLOYMENT MODEL: PHASE 1 STABILITY

17 LEAN OFFICE SPECIALIZATION: INSTABILITY Specialized work No level loading Work duplication No realization of waste OFFICE EMPLOYEES SPECIALIZATION Breadth of Knowledge Employees typically retain 80% of the process knowledge.

18 LEAN OFFICE SPECIALIZATION: STABILITY Multi-Skilled Multi-Process Handling Level 85% of Capacity OFFICE EMPLOYEES GENERALIST Shared Knowledge Skills/Training Matrix

19 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 1 st Time Quality Productivity (Cost) Delivery (Lead Time) Talent Encourage active sharing & adoption of best practices.

20 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

21 SIPOC SupplierInputs (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: 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

22 1.Pre-Event Planning 2.Event Execution 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 1/3s, 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. 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

23 KAIZEN BREAKTHROUGH METHOD: RESULTS (2 Days) Current State Process (7 Days) Kaizen V/C 56 Minutes WASTE 7 Days V/C 10 Mins WAITING 2 Days Value-Creating Work Waste

24 Lean IT: Impact on Amway Service Desk Data Center IT Asset Management Operations Voice Telecom Release management Application Development

25 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

26 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

27 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

28 What Have YOU Learned?

29 QUESTIONS

30 Tours Service Desk IT Operations PC Lifecycle Lean Cell …Please gather in the lobby… David will be your guide


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