Presentation on theme: "Amway’s Lean Office Journey"— Presentation transcript:
1Amway’s Lean Office Journey West Michigan HDIOctober 10th, 2012
2Agenda Welcome Jill Bierens – Manager, Global IT Service Desk Lean Office Overview Stephen Sweers – Manager, OPX Lean OfficeAmway IT Results David Drake – Lean Leader, IT Jill Bierens Daniel Uecker-Herman – Lead Service Desk TechnicianQ&AOptional Tour: IT Operations, ITAM, Lean Cell
3About AmwayFounded in 1959Second largest direct-selling company in the worldAnnual sales of more than $10 billion in 2011More than 450 products80 countries and territories20,000 employeesSix million entrepreneurs selling Amway products around the worldMore than 900 patents granted and more than 800 pendingFrom making soap in a garage to a global health and beauty leader
4The Heart of AmwayIn addition to the founding families’ generous support of this community and a variety of causes, Amway has always been a very strong supporter of volunteerism. A few years ago they focused their efforts to more effectively enable distributors and employees to support children here and around the world. This is a key part of who we are as a company.
5Amway’s Global Service Desk MetricsNearly 6,000 customers in North America and SE AsiaAverage 13,000 incoming contacts per month (all channels)Average 5,000 calls per monthLive answer = 85%First Contact Resolution = 75%Eight Service Desk TechniciansFour User Management TechniciansASA = 28 secondsAHT = 4:47Abandon Rate = 8%4 contractors on first phones4 employees on overflow, and web tickets4 workers on user management
6Amway’s Global Service Desk Current StateStrategyFour regionsFollow the SunStandardized processesCallerAda HQ6:30am–7:30pmMalaysia7:00am-7:00pmIT OperationsWeekends & Holidays
7WHY LEAN OFFICE?Identify and eliminate wasteful process steps in a systematic wayMore than 60% of the cost of a product or service is attributable to administrative processes.Quality and service improveTurnaround time shortensCosts go down and profits go upThe customer is ultimately delightedResources (people and money) become available to be redeployed to further grow the business
8KAIZEN DEFINED Kai “ change ” (revolutionary) zen good (sacrifice) SelfWhippedBackSheepAltar
9LEAN OFFICE ISSUES Quality: How to improve it? Cost: How to reduce it? Delivery: How to ensure it?Talent: How to develop it?
10ELIMINATE WASTE The 8 Wastes Defects Over-production Waiting Not engaging peopleTransportationInventoriesMotionExcess processing
11ELIMINATE WASTE Unevenness Overburdening Can often be eliminated by managers through level scheduling and careful attention to the pace of work.OverburdeningWorkers 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%).
12TRUE NORTH METRICS Right 1st time Quality Improvement Delivery/Lead Time/Flow ImprovementCost/Productivity ImprovementTalent Development“These are a select few measures, and if you improve them each year, ‘good things’ will happen.”– George Koenigsaecker
14THOUGHT-PROVOKING QUESTIONS To what extent are your Function’s goals linked to Enterprise Goals?Can you identify all of your Function’s internal and external customers?Do you know all of the products and/or services your Function provides its customers?Do you know your customer’s requirements for your Function’s products and/or services?Do you measure Functional performance on the basis of how well your products and/or services meet your customer’s requirements?Can you identify your Function’s 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 Function’s 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?
15SUCCESS FACTORS Factors for success: Clear Business Case Leadership EndorsementClear Roles & ResponsibilitiesDedicated Internal ResourcesStructured, Systematic MethodSimple, True North MetricsFrequent Reviews
16DEPLOYMENT MODEL: PHASE 1 “STABILITY” What:Improve Internal Process Workflows and ReliabilityStandardize Work ProcessesImprove Process Throughput TimeReduce 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 1st Time Quality Improvement
17LEAN OFFICE SPECIALIZATION: INSTABILITY OFFICE EMPLOYEES SPECIALIZATIONBreadth of KnowledgeEmployees typically retain 80% of the process knowledge.Specialized workNo level loadingWork duplicationNo realization of waste
19LEAN 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 1st Time QualityProductivity (Cost)Delivery (Lead Time)TalentEncourage active sharing & adoption of best practices.
20GETTING STARTED: ACTIVITY 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!Select one output (product or service for your customer), assemble a team and together explore using the SIPOC Tool (Supplier/Input/Process/Output/Customer).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).Execute the Kaizen Breakthrough Method…. again, again and again (5X)!
21Process (Transformational, Value-Creating Steps) SIPOCSupplierInputs(Requirements)Process (Transformational, Value-Creating Steps)OutputsCustomerMeijerKitchen36 Minutes Total Time2 ea Eggs¼ Cup Water½ Cup Vegetable Oil8” X 8” PanShortening or Cooking SprayLarge Mixing BowlWire Whip or Large SpoonElectric or Gas Oven capable of reaching 350FCooling RackKnifeSpatulaServing PlatePREHEAT: oven to 350F for glass or metal 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”: 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 cutting and serving.2” X 2” Fudgy BrownieWarm & GooeyServed on 6” Serving PlateAnnie Sweers
22Post-Event Monitoring KAIZEN BREAKTHROUGH METHODPre-Event PlanningEvent ExecutionKaizen 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 1/3’s, 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.Post-Event MonitoringVisual Controls are in place, Maintained & Continuously Improved.Standard Work Audits are Conducted, Economic Benefits calculated & Results Communicated.Weekly Kaizen Newspaper Accountability Meetings Conducted.
23Current State Process (7 Days) KAIZEN BREAKTHROUGH METHOD: RESULTS(2 Days)Current State Process (7 Days)KaizenV/C MinutesWASTE7 DaysV/C MinsWAITING2 DaysValue-Creating WorkWaste75% savings!
24Lean IT: Impact on Amway Service DeskData CenterIT Asset ManagementOperationsVoice TelecomRelease managementApplication Development
25Service Desk Corporate data stores Average of 100 requests per month Original process plagued with excessive active and wait timesActive time reduced from 45 minutes to 15 minutesSME provides clear direction on users’ needsProcess to be leveraged globally
26Service Desk Granting Remote Access Focused on providing correct access without hand-offsEnsuring we meet PCI compliance requirementsDecision tree developed and training provided for SD staffStandard work reduces training timeReturned capacity = 1,400* hours (Jan-Aug 2012)* Includes time savings in IT Security and Network Services
27What Have We Learned? New concept to IT Lean is traditionally associated with manufacturingMany of the things we do have a production flow to themBalance between focusing on results vs. learningStaff hesitation to act without management directionEmpowerment is criticalInnovation, learn by doingQuantified improvements vs. observed improvementsOther comments (Jill):Lean thinking begins to permeate everything you do; entire team begins to find and cut waste as part of their daily work; time saved is used to handle more work, participate in more kaizen events, work on projects (objectives)Kaizen events:Many “quick fixes” pop out right away and can be implemented immediatelyPeople are appalled by the number of steps in a process; they are compelled to make the changes because it seems ridiculous and irresponsible not to do soIt may take a long time (6-12 months) to implement the newly designed process, especially if programming and training are involved; people are already committed to other projects; some people are resistant to change unless they participated in the event