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Transactional Change in Action - Using Lean Principles

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Presentation on theme: "Transactional Change in Action - Using Lean Principles"— Presentation transcript:

1 Transactional Change in Action - Using Lean Principles

2 Presenter Karen Kusler Process Improvement for UCO Lean Facilitator
Formerly with Institutional Assessment Lean Facilitator University of Central Oklahoma 100 N. University Drive Edmond, OK 73034 (405)

3 Lean Enterprise is…. A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement.

4 History Began in the Manufacturing Industry
Executive VP Kreidler introduced Lean to UCO in 2002 Methodology to improve efficiency, reduce waste, and streamline processes Result in employee satisfaction, clarity of role in process, and standardize work where appropriate

5 Words To Live By “Do not believe that it is very much of an advance to do the unnecessary three times as fast” – Peter Drucker “Bureaucracy defends the status quo long past the time when the quo has lost its status” – Laurence Peter

6 Lean Thinking Fundamental Objective:
To create the most value while consuming the fewest resources Define value from the customer’s perspective Identify which process steps create value and which are only waste Work to eliminate the root causes of the waste and allow for continuous flow of work and tasks

7 Lean is Not… A headcount reduction program A toolbox
A method for reducing resources that are needed to support the “customer”

8 Goal is Quality of Service
Quality is not a program – it is an approach. Quality’s goal is excellence – anything less is an improvement opportunity. Quality implemented properly – increases customer satisfaction, reduces time and cost.

9 and adds no value to the product or service for the customer.
Waste (Muda)– anything that is more than the minimum amount of process, workers’ time, materials, space, or equipment and adds no value to the product or service for the customer.

10 Lean and Eliminating Waste
Typically 95% of lead time is non value-added

11 8 Wastes in Processes Overproduction – producing more sooner, or faster than is required by the next process. Office examples – printing paperwork out before needed, purchasing items before needed (results in inventory storage, processing paperwork before the next person is ready for it

12 8 Wastes in Processes Inventory (Inbox) – any form of batch processing
Office examples – filled in boxes (electronic and paper), office supplies, sales literature, batch processing transactions and reports.

13 8 Wastes in Processes Waiting
Office examples – System downtime, system response time, approvals from others, information from customers

14 8 Wastes in Processes Extra Processing
Office examples – Re-entering data, extra copies, unnecessary or excessive reports, transactions, cost accounting, expediting, labor reporting, budget processes, travel expense reporting, month-end closing activities

15 8 Wastes in Processes Correction – any form of defects
Office examples – Order entry errors, design errors and engineering change orders, invoice errors, employee turnover

16 8 Wastes in Processes Excess Motion – movement of people
Office examples – Walking to/from copier, central filing, fax machine, other offices

17 8 Wastes in Processes Transportation – movement of paperwork
Office examples – excessive attachments, multiple hand-offs, multiple approvals.

18 8 Wastes in Processes Underutilized People – people’s abilities, not their time Office examples – Limited employee authority and responsibility for basic tasks, management command and control, inadequate business tools available

19 Lean Project Phases – Lean Team!
Agreeing on the process to study, how to map it, who will participate, and logistics. Preparation Agreeing on a well understood map of the current situation. Current State Agreeing on a shared vision of a Lean future state. Future State Agreeing on how to implement the future state vision. Planning

20 Project Preparation Select potential project with sponsor/Champion
Scope effort with functions represented in the selected value stream Confirm business objective Identify measures of success Develop SIPOC Identify participants & decision panel Confirm scope with Decision Panel Walk the flow

21 Case Study – Fixed Assets
Reason Selected The current process results in undocumented and over-documented assets in the computer system. Customer Accounting staff that needs the information to prepare end of year reports and respond to external auditors is the customer.

22 Case Study Goals Capitalize all qualified fixed assets.
Create processes to capture qualified fixed assets. Identify miscoded fixed assets when ordered. Validate Procard purchases of qualified fixed assets. Define the process to write-off disposed assets.

23 Current State Whenever there is a product or service for a customer, there is a value stream. The challenge lies in seeing it. Draw a Current State Value Stream Map (VSM) Visualize work Point to problems Focus direction Ask the 7 review questions


25 Review Questions What does the customer really need?
How often will we check our performance to customer needs? Which steps create value and which are waste? How can we flow work with fewer interruptions?

26 Review Questions How do we control work between interruptions? How will work be prioritized? How will we balance the work load and/or different activities? What process improvements will be necessary?

27 Future State Draw a Future State Value Stream Map based on responses to the review questions




31 One Change through Teamwork
Commodity Codes were not being used effectively Train staff on consistent coding Expand and clarify description codes used to determine commodity codes


33 Finding Sources of University Assets Vary
Foundation Purchases Grants Items under $2500 not captured for capitalization

34 Response Consistent information gathered
Foundation – link form to document donations Purchases – expand inventory management input to include as capitalized items (even under $2500) Grants – train staff to document assets

35 Result End of year report and asset capitalization is more accurate

36 Making the Change in a Process
Establish the main objectives Kaizen bursts Create master plan (Lean Team) Create detail plan (breakout groups) Emphasis who, what, when, and why Establish project review dates Present the plan to the Decision Panel

37 No Pain – No $Gain When the pain of staying put is greater than the pain of changing, then you have a chance to make cultural change. Can you find employee and customer pain and help them out of it in a less painful way? The pain I know is almost always less than the pain I don’t know. But I can imagine that it is pretty bad.

38 Learn More About Lean UCO offers educational programs on “Using Lean Principles for Transactional Change” Next seminar is April 12 (registration fee $49) For details go to or call (405)

39 Some Books That Helped Us Along the Way
“Execution” “The Agenda” “Good to Great” By – Larry Bossidy, Ram Charan By – Michael Hammer By – Jim Collins

40 Some Books That Helped Us Along the Way
“Using Lean For Faster Six Sigma Results” “Leadership On The Line” “Lean Thinking” By – Ronald Heifetz, Marty Linsky By – James Womack, Daniel Jones By – Mark Nash, Sheila Poling & Frony Ward


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