Lean for Service - Amazon S3 · Lean for Service Presented by: Dennis Sowards, Qualityypp Support...
Transcript of Lean for Service - Amazon S3 · Lean for Service Presented by: Dennis Sowards, Qualityypp Support...
Lean for Service
Presented by:Dennis Sowards,Quality Support Services, Inc.y pp480 [email protected]
DENNIS SOWARDS
15 years experience in mechanical contracting
35 years helping companies improve the quality of how they manageg g
A judge for the Arizona State Quality Awards program
Guest writer for Contractor Magazine, SNIPS & Plumbing & Mechanical
Lead author of the SMACNA book Creating the High-Performing Contracting Lead author of the SMACNA book – Creating the High-Performing Contracting Company
Major research projects for the New Horizons Foundation including Thinking Lean: Tools for decreasing costs and Increasing Profit and Measuring Customer Loyalty
Holds a BSE and MBA from Arizona State UniversityOffice: 480 835-1185 Email: [email protected]
Workshop ObjectivesAt the end of this session you will be able to:
Understand the benefits and principles of L thi ki i l di h V l d th Lean thinking including how Value and the 7 types of Waste apply to Service Understand Lean techniques and how these Understand Lean techniques and how these tools work in Service operations Know the 4 rules for improving Service p gusing Lean Learn the key measures to evaluate Service
Start Thinking Lean
What is Lean?Lean Thinking is a concept of Continuous Quality Improvement
Lean Thinking is a shift in management's focus to differentiate between Value and Waste
FACT: Lean works in Construction.
BUTBUTDoes Lean work in
Service?
News -
Good News
Lean does
work
ice!
The opportunity - This in Servic
e!
pp u yis a new frontier. Applying Lean can give a real competitive a real competitive advantage.
What is Value? Transforms the product/service to what
the customer is actually willing to PAY for (USEFULNESS/COST)
Includes Functions, Features, Time & P iPrice
Is done right the first time.
Relates to the whole product or service receivedreceived
Is the opposite of WASTE.
The Key Value Principles in Service are:y pSolve my problem completelyDon’t waste my time - it’s not Free!yProvide exactly what I wantProvide value when I want itProvide value exactly where I want itReduce the number of problems I need to Reduce the number of problems I need to solveMinimize my total cost (price+time+hassle) y (p )and the provider’s total cost too.
7 Basic Types of Waste (Muda)Defects in products/services: Rework, Call-backs & Punch ListsOverproduction: Fabricating material or ordering it too soon, JIC thinking - ordering too much, doing more PM work than is J g g m , g mrequiredInventory: Material stored at site, yard or in vans, work in process, unused tools & parts, forms and stashesp , p , f mUnnecessary processing: Redundant or unnecessary steps to restock the service van/truck, multi signatures on forms, material requisitions or job ticket, any non-value added stepsq j , y pUnnecessary movement of people: Treasure hunts, looking for files, tools, parts or even the customer. Transport of goods: moving material tools or parts or Transport of goods: moving material, tools or parts, or leaving the job to buy materialWaiting: Technicians waiting for equipment, plans, approvals or material or Customers waiting!material, or Customers waiting!
Lean Principle
Lean focuses on maximizing the whole job NOT on maximizing individual performance.NO on max m z ng nd v dual performance.
Top Priorities1 K T h i i 1. Keep Technicians
doing value added work
2 Reduce inventory2. Reduce inventory3. Reduce other costs
Plan Do
Lean PrinciplePDCA & Experimentation
Plan Do
Act Check
How does this apply How does this apply to Service work?
Plan Do
Act Check
Plan Do
Act CheckAct Check
Plan Do
Act Check
Basic Lean Tools & Techniques
Which tools apply best to Service?
Five S’sMuda Walk - “Chalk Watch”Process Mapping/Value AnalysisSpaghetti Chart
Lean Tools & Techniques
S tiThe 5 S's
SortingSimplifyingp y gSweepingStandardizingStandardizingSelf-discipline
The 5 S's
SORTINGS t t th f th Sort out the necessary from the
unnecessary, discard the unnecessary unnecessary.
What to sort in Service?
How to Sort? NO VALUE & EASY TO DISPOSE OF
DISPOSE OF IMMEDIATELY
UNNECESSARY ITEMS (NOT USED OR NOT LIKELY TO BE USED)
DISPOSE OF
SOME VALUE LOOK FOR BEST USER TO GIVE OR SELL
TO BE USED)
NO VALUE BUT COSTLY TO DISPOSE
FIND LEAST COSTLY WAY TO DISPOSE
REDTAG
USEAUCTION
NECESSARY ITEMS USED OR LIKELY TO BE
RARELY USED (1 - 2 times per year)
OCCASIONALLY USED (1 - 2 per month)LIKELY TO BE USED
FREQUENTLY USED (daily or weekly use)
OCCASIONALLY USED (1 2 per month)
When in doubt - move it out.
Opportunities to Sort
Opportunities to Sort
The 5 S's
SIMPLIFYINGSIMPLIFYINGCreate and identify a place for everything
based on how often we use itbased on how often we use it
Simplifying Steps:1. Put the most frequently used items closest to the
work area, those used less often, further away.
2 Develop a way to label or show where everything 2. Develop a way to label or show where everything goes. Consider:Shadow boardMarking the item and the locationMarking the item and the locationColor-codingLabels on drawers with list of contents inside
3 Develop ways to replace usable items daily3. Develop ways to replace usable items dailyEstablish lead times for replacement of daily usage suppliesDetermine minimum and maximum supply levels and mark them [Kanban - signal to replace]them [Kanban signal to replace]
Simplifying a Service truck
The 5 S's
SWEEPINGPhysical and visual control of the
work areawork area
Sweeping ActionsSweeping is done when regular sweeping actions Sweeping is done when regular sweeping actions
occur and areas are clean, safe and neat.
Actions:· Determine regular schedule for cleaning the yard,
parts storage areas and trucks/vans.· Orient everyone including new employees with daily · Orient everyone including new employees with daily
5S’s activity responsibilities and expectations.· Post area cleaning guidelines and schedules.
f f l l h d l· Perform safety inspections on a regularly schedule.
STANDARDIZINGSTANDARDIZINGis creating standard ways to keep the work areas organized, clean and orderly and documenting agreements made during the 5S’s 5S’s.
What to Standardize?
• Labeling• Tools & equipment• Tools & equipment• Forms• Truck/vansTruck/vans• Key processes such as - how vans are
restockedrestocked• Location of tools & material on vans
Not all vans are the same but the location zones can be!
The 5 S's
SELF-DISCIPLINEFollow through with the 5Ss
agreements
Self Discipline often includes an Self Audit/ Score Cardan Self Audit/ Score Card
# Ch kli t AIn Not
A ti# Checklist Area Done Progress Started Action1 Are work areas, warehouse storage areas, gang boxes an
yard free of unnecessary items?2 Are service trucks/van free of unnecessary items - if not us
i 6 th t d 't it?in 6 months to a year don't carry it?3 Are there "stashes" in the Service truck/van or at the
warehouse that can be eliminated?
D 30 sec nd test!Do 30 second test!
Some 5S ExamplesSome 5S Examples
After 5S - Cleaned, organized and drawers labeled (less time and
Before 5S(
frustration hunting)
Service Truck
Before After
HVAC VanHVAC VanBefore After
UMEC Tool Crib Before 5S’s
UMEC Tool Crib After 5S’s
What does 5S’s do for Service Companies?What does 5S s do for Service Companies?
One company applied the 5S’s to parts & tools carried in their service vehicles and tools carried in their service vehicles and reduced overall the weight of excess material by 7,000 pounds or about 50 to y , p100 pounds per vehicle.
5S’s saves about 5 minutes per hour per 5S s saves about 5 minutes per hour per employee!
Basic Lean Tools & Techniques
Five S’sMuda Walk - “Chalk Watch”Process Mapping/Value AnalysisSpaghetti Chart
Do a Muda Walk in Service
Go to Gemba & do “Chalk Watch”Flow (Don’t watch the work - watch for what Flow (Don t watch the work watch for what gets in the way of value!)Treasure HuntsWastesWastesStandards/systems/methods (can’t improve if no standard way exists)Equipment maintenance & utilizationAsk Why? (5 times)Ask: How can we make it easier for you to Ask: How can we make it easier for you to do your job?Fix Problems Now
Basic Lean Tools & Techniques
Five S’sMuda Walk - “Chalk Watch”Process Mapping/Value AnalysisSpaghetti Chart
Process Mapping/AnalysisWhat you think your process looks like:
What your Customer is willing to pay for (Value added)
What the real process looks like:What the real process looks like:
SERVICE CALL VALUE STREAM
Talk to Tech. Hearbl & Signs
Call for
Service
5 min. 5 min 15 - 240 min. 60 - 480 min.
Book Service
15 min. 5 min
Cust problem &
approve work
gpaperwork.
? min.
Service Callt
ome
Wait for bill Pays bill
5 min.r
SERVICE CALL VALUE STREAM
5 min. 240 -1440 min. 5 min 15 -240 min. 15 - 240 min. 60 -480 min.15 min. 5 minCo
Finish work/drive to facility
Contacts facility rep.
Determine the
problem
Explains problem &
gets approval
Makes repair& completespaperwork
Obtains signature.
Answer call
Service Book
Service Call
ompa
Process records & Receive payment
? min.
5 min.
ny
invoice
Talk to Tech HearCall for
5 min. 5 min 15 - 240 min. 60 - 480 min.
Book
15 min.
SERVICE CALL VALUE STREAM
5 min
Cus Talk to Tech. Hear
problem & approve work
Signs paperwork.
Service
? min
Book Service
Calltome
Wait for bill Pays bill
? min.
5 min.er
Finish work/drive Contacts
facility rep.Determine
the Explains Makes repairObtains
signature.Answer call
Service
5 min. 240 -1440 min. 5 min 15 -240 min. 15 - 240 min. 60 -480 min.
Book Service
15 min. 5 minCom
to facility facility rep. the problem problem &
gets approval& completespaperwork
Service
? i
Service Callp
any Box Score 1st call
Process records &
invoiceReceive payment
? min.
5 min.
yTotal Customer time: 360+
Value Added time: 50+
Value/total time: 14%
Technician time: 360+Technician time: 360+
Value Created time: 90+
Value/total time: 25%
Basic Lean Tools & Techniques
Five S’sMuda Walk “Chalk Watch”Muda Walk - “Chalk Watch”Process Mapping/Value AnalysisSpaghetti ChartSpaghetti Chart
Yard Layout
Parking Lot
Parking Lot
Yard Layout
Parking Lot
Parking Lot
How to Improve Service WorkApply Lean tools
• 5S’s to reduce treasure hunts
• Go to Gemba & Observe
Focus on ways to Increase Valuey
• Map the Value Stream - look for Waste vs Value-added times (customer & tech views)
• Follow 4 Rules for Improving Service - develop your own answers
Lean Solutions applied to Service
The Key Value Principles are:Solve my problem completelyy p p yDon’t waste my time - it’s not FreeProvide exactly what I wantyProvide value when I want itProvide value exactly where I want ityReduce the number of problems I need to solveMinimize my total cost (price+time+hassle) and the provider’s total cost too.
How to Improve Service WorkDevelop Key Measures
• Average time per service job & % Value-added time
• Number of times we are out of material
• % of Jobs delivered on time - as promisedp
• Response time
• Daily Mobilization (Time to Leave - TTL) in minutes• Daily Mobilization (Time to Leave TTL) in minutes
• Number of call backs
C F lfill•Customer Fulfillment = % Jobs RFT (no call backs) times (X) % jobs delivered on time
Lean Solutions applied to Service
A l th 4 R l f i i V lApply these 4 Rules for improving Value:1. Create a knowledge dialogue with the customer up-front to gain a greater understanding of the problem. 2. Pre-diagnose the problem by taking extra time to learn exactly what tools, parts, skills, knowledge and time are likely to be needed to fix the problem.3. Level demand wherever possible to allow more reliable promises of meeting the customer’s time requirements.4. Save the time of your employees who serve the customer by 4. Save the time of your employees who serve the customer by making the internal service functions efficient and effective.
Examples of Applying the 4 Rules:1. Create a knowledge dialogue with the customer
f d d f hup-front to gain a greater understanding of the problem.
Determine the questions a technician would ask if he/she Determine the questions a technician would ask if he/she were the dispatcher & design a system that captures the most information in the initial call. Change hiring & training methods.
Creating incentives for customers, especially commercial and industrial customers, to provide advanced and detailed i f i b h i i d i hi f f il information about their equipment and its history of failures. Not “strangers serving strangers.”
Examples of Applying the 4 Rules:
2 P di th bl b t ki t ti t 2. Pre-diagnose the problem by taking extra time to learn exactly what tools, parts, skills, knowledge and time are likely to be needed to fix the yproblem.
Develop a database that captures more detailed information about the customer’s problem and does historical analysis of similar problems with that customer or others to help the right technician show up on the job with th i ht t i l d t l t l th blthe right material and tools to solve the problem.Store some parts & material at customer’s locations.
Examples of Applying the 4 Rules:
3 L l d d h ibl t ll 3. Level demand wherever possible to allow more reliable promises of meeting the customer’s time requirements.q
Evaluate the hours the Service department is actually open & rates charged for after hours and weekend work in light of
h i l h what is value to the customer.Group service calls into different value streams:
1. High-volume but quick workg q2. Complex jobs that can be accurately pre-
diagnosed3. Jobs where problem is unknown prior to job site investigation
Examples of Applying the 4 Rules:
4. Save the time of your employees who serve the customer by making the internal service functions efficient and effective.efficient and effective.
Map the value stream to identify where the customer’s time is wasted because we assume it is free.Stock the Service trucks/vans with the right tools and parts and implementing a system to keep them stocked. But not over stocked! Use data to tell what the ‘right’ tools and gparts are and stocking levels.Make it easy for technicians to see work order history not just most recent.j
Need Engaged Employeesl i iInvolvement + Communications=
Engaged EmployeesPart of
SolutionPart o
f
Problem
How are you engaging LeanHow are you engaging your employees?
LeanContinuous
Improvement
MeMe
Change Managementg g
20 60 20 Rule20 - 60 -20 Rule
Critically
AgainstAgainst
Virtually
Everything