This talk presents a case report about a business process improvement initiative implemented using a Lean approach. The talk introduces briefly the Lean concepts before describing how value stream mapping was used to improve an "Order to Cash" process.
Adopting a Lean Approach to Improve Business Processes: A Case Report
1. Adopting a Lean Approach
to Improve Business Processes: A Case Report
Karim Riad MAZOUNI
Business Consulting
karim.mazouni@elca.ch
Geneva, June 3rd, 2016
2. ■ Founded in 1968 as Electro-Calcul for monitoring
the Grande Dixence dam
■ Employees Over 700 employees, mostly highly skilled
(IT) professionals with university degrees
■ Offices Lausanne (headquarters), Zurich, Geneva, Bern,
Madrid, Paris, Ho Chi Minh City (Vietnam)
■ Turnover CHF 107,1 million in 2015 (+5.2% growth)
■ Quality Standards ISO 9001 (since 1993), ISO 14001 (since 2011),
CMMI level 3 (since 2007)
■ Project Experience > 1‘000 customer projects in ten years
■ Awards
ABOUT ELCA
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ELCA is one of the biggest independent Swiss IT solution providers in Switzerlandʼs
and a leader in the fields of software development, system integration, business
consulting and application management.
4. ABOUT YOU
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LeanVSM
Toyoda
Kanban
Gemba
Yokoten
Ohno
Kaizen
5. GOALS OF THIS TALK
■ Raise awareness
■ Share experience
■ Yokoten !!!
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https://creativecommons.org/licenses/by-nd/2.0/
6. AGENDA
Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
• Lean Thinking
• Value Stream Mapping
• Case Report
• Lessons Learned
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7. 14 PRINCIPLES
Long-Term
Flow
Pull
Less Variability & Overburden
Stop & Fix
Master Norms
Simple Visual Management
Good Technology
Leader-Teachers from Within
Develop Exceptional People
Help Partners to Be Lean
Go See
Consensus
Reflection & Kaizen
PRODUCT DEVELOPMENT
Long-Term Great Engineers
Manager-Teacher
Cadence
Cross-Functional
Team Room
Entrepreneurial Product
Manager
Set-based Concurrent
Development
Create More Knowledge
THE LEAN HOUSE
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based on “Scaling Lean & Agile Development” by Craig LARMAN & Bas VODDE
FOUNDATION
Management applies and teaches lean thinking
Management bases decisions on this long-term philosophy
RESPECT FOR PEOPLE
Respect your Customer
Develop People, Build Products
No Wasteful Work
Teams Improve Their Practices
Build Stable Partners
Develop Teams
CONTINUOUS IMPROVEMENT
Go See
Kaizen
- Spread Knowledge
- Small, Relentless
- Retrospectives
- 5 Whys
- Eyes for Waste
Perfection Challenge
Work Toward Flow
GOAL
Sustainable Shortest Lead Time
Best Quality and Value
Most Customer Delight
Lowest Cost
High Morale
Safety
8. AGENDA
Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
• Lean Thinking
• Value Stream Mapping
• Case Report
• Lessons Learned
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10. VALUE STREAM
■ “A value stream is the sequence of activities required to design, produce,
and deliver a good or service to a customer, and it includes the dual flows of
information and material.”
■ A value stream map is a highly visual storyboard of how work progresses
Comes from “material and information flows” a visual mapping
technique used at Toyota
At the core of the Lean thinking
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13. MEASURING QUALITY UPSTREAM
■ Percent Complete and Accurate (%C&A)
% of the time work delivered is “usable as is” by the next in chain
usable as is => no need to CAC (Correct, Add, Clarify)
Assesses the quality upstream
■ Example:
I am at the back office, my job is to fulfill customer’s orders
I receive customer’s orders from the front office
If 30% of the time I have to CAC, I assess the front office quality as 70%
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19. AGENDA
Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
• Lean Thinking
• Value Stream Mapping
• Case Report
• Lessons Learned
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21. IMPROVE “ORDER TO CASH” PROCESS FOR A SERVICE COMPANY
■ The Service Company provides services to its customers by sending workers
to customers’ premises
■ The Service Company needs to improve its “Order to Cash” (O2C) process in
order to:
shorten the lead time
improve accuracy
improve efficiency
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22. ESTIMATED PLANNING & EFFORT: 30 MAN-DAYS DURING 3 MONTHS
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Initiate Examine Envision Recommend Finalize
s23
01.06.2015
s26
22.06.2015
s28
06.07.2015
s37
07.09.2015
15 M-D
Kick-Off Project Status Project Status Closing
Current State Future state Roadmap
s35
24.08.2015
Project Status
Executive
Summary
Planning
s24
08.06.2015
5 M-D 5 M-D 3 M-D2 M-D
Project Status
EFFORT
DELIVERABLES
23. INTERVIEW GOALS
■ Understand how the O2C process actually works in each region
■ Feel the atmosphere in the field
■ See the IT tools in action
■ Gather improvement ideas
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24. INTERVIEW SYNOPSIS
■ Key Questions
What is your vision of the «Order to Cash» (O2C) process ?
What role do you play at each step of the process ?
What tools do yo use ?
What problems do you encounter ?
What solutions do you see to these problems ?
How does the process perform ? (Process Time, Lead Time, %C&A)
■ Setup
1 hour discussion and interactive post-it board
Short demos of the tools that you use
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25. LAU — SALES SUPPORT: INTERVIEW BOARD
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26. FINDING TYPES
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ICON MEANING
• Good practice
• Pain point
? • Open point
! • Improvement idea
• Worth to mention
27. LAU — SALES SUPPORT: KEY POINTS
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ID TYPE DESCRIPTION
LAU-001
• Offer data from the “Fiche Projet” is entered multiple
times in several documents (Pipeline, Reporting).
• Sales Support does not have access to PCE.
• In parallel, Planning enters the same data in PCE.
LAU-002
• Sales Support cannot know which offers/orders are
actually planned (10% of offers bypass Sales Support).
LAU-003
• An offer can be done in 15 mn and sent after about 48 h.
• The signature process for an offer can take up to 3 days.
LAU-004 !
• If Accounting would have access to Reporting it could
monitor offers/orders.
LAU-005 • “Fiche Projet” data is generally good (80%).
28. INTERVIEW HIGHLIGHTS
■ People
Cooperative
HAPPY to be involved
Engaged
■ Processes & Tools
Processes are complicated
Tools are not reliable
Each region found its own path to operate
■ Organization
Put back the focus on customers AND employees
Support functions MUST develop a culture of service
Organization structure and roles should be clarified AND communicated
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29. MAIN BARRIERS TO FLOW
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DESCRIPTION RELATED FINDING IDS
• Offer/order data is entered multiple times in
several tools.
• LAU-001, GVA-001, GVA-006
• Offer/order data must be approved at
multiple levels.
• LAU-003, GVA-004, GVA-018,
• ZRH-003, BSL-003, BRN-002, BRN-003
• Customer address checks are time
consuming.
• LAU-006, LAU-010, LAU-017, GVA-013,
ZRH-010, BSL-004
• HMY-related issues hinder productivity. • LAU-008, LAU-013, GVA-011, ZRH-008
• PCE-related issues hinder productivity. • LAU-014, GVA-020, ZRH-002, ZRH-009,
ZRH-015, BRN-004, BRN-014, PCE-001
• Pre-planning is done in separate tools and
re-entered in HMY.
• LAU-009, BRN-005, BRN-009
Barriers to flow are issues which slow down the O2C process.
Each barrier to flow relates to findings described in the next slides.
30. VALUE STREAM MAPPING WORKSHOP
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31. VALUE STREAM MAPPING WORKSHOP
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32. FUTURE O2C PROCESS: KEY DESIGN PRINCIPLES (1/2)
■ Minimize Multiple Inputs
Data is entered only once in one tool
■ Standard Documents
All areas use standard document templates (offers, order confirmations)
PCE use these templates to automatically generate the documents
=> no more manual editing for simple offers
■ Simplified Signature
The new signature policy enforces delegation and enables quicker
feedback to customers
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33. FUTURE O2C PROCESS: KEY DESIGN PRINCIPLES (2/2)
■ Accounting Approval < 4 Hours
Accounting approves all offers and all new customers in less than 4 hours
■ Unique Planning Tool
All pre-planning and planning activities use a unique tool (PPS)
■ Unique Approval for Monthly Invoices
Branch Managers only approve the delivered service hours
=> no more approval of invoices
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34. FUTURE O2C PROCESS: ZOOM I
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Zoom I
35. ZOOM I. DIRECT ORDER FROM AN EXISTING CUSTOMER
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36. STEP A.2.1. «TAKE ORDER»
■ A customer order can reach CUSTOMER via several channels
E-mail
Phone
Alarm Partner’s tools
■ Several roles can take orders
Branch Manager (BM)
Sales Support
Pre-Planning
Planning
■ BM is responsible of the content of the Project Form and the Calculation Sheet
The Project Form and Calculation Sheet are standard documents used in
all areas
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38. ROADMAP WORKSHOP
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Organisation Stream
Training Stream
IT Stream
39. ROADMAP: SUMMARY
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Organisation Stream
Training Stream
IT Stream
2015-Q4 2016-Q1 2016-Q2 2016-Q3 2016-Q4
DEFINE ROLES
(ORG-1)
DEFINE
DOCUMENTS
(IT-1)
ALIGN ORG.
(ORG-2)
IMPROVE
HR PROCESSES
(ORG-3)
PCE ORDER
FORM
(IT-2)
GENERATE
DOCUMENTS
(IT-1)
DO
O2C TRAINING
(TRN-1)
REVIEW PCE
PERMISSIONS
(IT-3)
PCE
USER LICENSES
(IT-4)
DEFINE
PCE TRAINING
(TRN-2)
DO
PCE TRAINING
(TRN-2)
ADJUST PCE
PERMISSIONS
(IT-3)
SANITIZE
CUSTOMER DB
(IT-5)
40. AGENDA
Adopting a Lean Approach to Improve Business Processes: A Case Report | K.R. Mazouni | BAFS 2016
• Lean Thinking
• Value Stream Mapping
• Case Report
• Lessons Learned
40| 03.06.2016 |
41. ■ Changing corporate culture is a long process
■ It is essential (but not easy) to convince the whole management
team
■ “Go See” is really a powerful tool
I wish I could actually do it with the workgroup
■ “Forcing” people to collaborate in workshops is a game changer
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42. RECOMMENDED READING
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