Lean Office Twelve Steps to Creating Money-Saving … · Lean Office – Twelve Steps to Creating...

Lean Office – Twelve Steps to Creating Money-Saving Company-Wide Efficiencies

John Berger VP of Quality and PI

March 19, 2014

© 2012 Fiserv, Inc. or its affiliates. 20140319 – Enterprise MN – Lean Office

Overview

• What is Fiserv?

• Lean in the Office?

• What are the Twelve Steps?

• What’s Next?

2


About Fiserv

3

• Fiserv provides financial services technology solutions to financial institutions and businesses worldwide

• More than 16,000 clients trust Fiserv to help them achieve their goals for growth and efficiency • Financial institutions

• Retail establishments

• Telecommunications and utility companies

• Healthcare and insurance providers

• Payroll companies

• Government


About Fiserv Output Solutions

4

Card Manufacturing & Personalization Prepaid Debit Credit Contactless EMV ID Cards

Transaction Document Printing & Mailing Statements Checks/EOBs Business Documents Tax Forms

Electronic Document Delivery eArchive eStatement ePresentment

Marketing Solutions Acquisition, Activation & Retention Programs Campaign Strategy Commercial Print Database Analytics

http://www.istockphoto.com/stock-photo-6334514-consumerism.php


Fiserv Output Solutions – National Presence

5

St. Paul, MN Secure card Indianapolis, IN

Secure card & print

Hartford, CT Technology Center

Nashville, TN Secure card manufacturing

Houston, TX Headquarters Print & Card

Seattle, WA Print

St. Louis, MO Marketing Solutions

Austin, TX EDD

Walnut, CA Print


Fiserv Output Solutions – Scale

6

During 2013…

• Mailed nearly 1 billion first class envelopes

• Manufactured, personalized and mailed over 250 million cards

• Mailed over 700 million printed statements

• Quality ratings nearly 100% • Timeliness ratings nearly 100%


Overview

• What is Fiserv?



• What’s Next?

7


“Office Space” (1999) – The TPS Reports Process

8

Bill Lumbergh: Hello, Peter. What's happening? Uh…we have sort of a problem here. Yeah. You apparently didn't put one of the new coversheets on your TPS reports. Peter Gibbons: Oh, yeah. I'm sorry about that. I, I forgot. Bill Lumbergh: Mmmm...yeah. You see, we're putting the coversheets on all TPS reports now before they go out. Did you see the memo about this? Peter Gibbons: Yeah. Yeah. Yeah. I have the memo right here. I just uh...forgot. But, uh, it's not shipping out till tomorrow, so there's no problem. Bill Lumbergh: Yeah. If you could just go ahead and make sure you do that from now on, that will be great. And uh, I'll go ahead and make sure you get another copy of that memo. Mmmkay? Bye bye, Peter. Peter Gibbons: No, I...I have the memo. I've got it. It's right... [Lumbergh isn't listening and walks away from Peter's cubicle]


How an Office IS like the Factory

9

• Both have processes to map • Both involve people • Both have goals

• Both have waste


How an Office is NOT like the Factory

10

• Processes can be unclear • People “own” their space • Metrics are uncommon

• Waste is hidden


Overview

• What is Fiserv?



• What’s Next?

11


What are the Twelve Steps?

12

1. “Busy” cannot be a crutch 2. Commit resources 3. Involve the key people 4. Macro manage 5. Identify value to the customer 6. Target waste 7. 5S 8. VSM 9. Problem Solving 10. Faster, better, cheaper – do all three 11. Productivity is O/I 12. Achieve year-over-year

Management support Identify the target Use the tools Measure success

Sustain and repeat


Management Support

13

“Busy” cannot be a crutch

• What would happen if you stopped maintaining your home?

• There is always too much work or a crisis to consume your time

Commit resources

• What happens if you never assign an improvement task?

• Given time, the right people on the right problems will fix them


Form the Right Team

14

Involve the key people

• What if someone cleaned your desk drawers without asking?

• If you don’t get buy-in the improvement won’t sustain

Macro manage

• Do you like it when your boss tells you how to do a task?

• Tell the team what needs to get done and let them figure out how


Example: Improve Postage Billing Process

15

• Client sends in file for processing • Includes personalization data • Billing is based on counts,

weights, and rates for each item • Contracts set agreed-upon rates

• Info is routed to several teams • Data Processing: process the data • Operations: make the statement • Shipping: apply the postage • Implementations: setup system • Client Services: create the bill • Accounting: enter the bill

• Billing depends on many inputs • Contracts / rates • Counts • Rates • Weights

• Billing is a manual effort

• Billing must be done to get paid

• Challenge: Do on-time for

every client, every month without making errors!

© 2012 Fiserv, Inc. or its affiliates. 20140319 – Enterprise MN – Lean Office 16

Original Postage Billing Process VSM

Client File

Data Processing

Output Processing

Job Tracking

Contract Rates

Manual Data Entry

Counts Weights Counts

Excel Bill

Client Bill

Acct Entry USPS Rates


Postage Billing Process Questions

• Why so many data sources? • Why use manual entry? • How can we eliminate reports? • How can we eliminate manual entry? • Can we automate the process? • Where can we combine steps? • Which steps can we eliminate? • How can we better coordinate? • What if we involved fewer systems? • How can IT help us simplify? • Where can we reduce errors?


Current Postage Billing Process VSM

Client File

Output Processing

Contract Rates

Billing Table

Standard Counts and

Weights

Linked Excel Bill

Client Bill

Standard Acct Entry

USPS Rates


Postage Billing Process Changes Made by the Team

• Eliminated multiple data sources in the process • Revised remaining report to streamline information • Gained accounting agreement on accuracy of billing • Replaced manual entry with standard linked report • Single source of truth for data simplifies maintenance • Standard fields in report simplify the billing process • Replaced repeated manual entry with a Rates Table • Faster billing for completed client orders • Reduced oversight of the client billing

• Results: Saved Many CSR Hours every Month Captured over $100K in Added Billings!


Identify the Target

20

Identify value to the customer

• What do customers want when they buy your product?

• Identify what your customers are willing to pay for

Target waste

• Where does your company waste resources?

• Identify what your customers are NOT willing to pay you for


Use the Tools

21

VSM, 5S, and Problem Solving

• Which tool is the right one and how do I know when to use it?

• 5S for clutter, VSM to identify value and waste, then problem solving

Faster, better, cheaper – do all three

• How can I get all three without needing a trade-off?

• Game-changers establish a whole new level of performance


• Client faxes setup information • Describes products they want • Use for configuration settings • Provides billing information

• Info is routed to several teams • Sales: log and coordinate activity • Graphics: create logos, etc. • Proofing: obtain approvals • Implementations: setup system • Accounting: setup billing • Operations: make test card

• Must complete all tasks to go live • Challenge: Coordination!

22

Example: Improve Order Processing


Original Order Processing VSM

ITS

L/T Wks2

Account Manager

Process Time Mins15-25

% C&A %70

System

Priority

Implementation

Process Time Mins

% C&A %

System

Priority=Go Live

Keys

Process Time Mins5

% C&A %

Priority

Build New Product ID

Process Time Mins5

% C&A %90

Unify

Priority=Go Live

Staff Staff1

Control Files


% C&A %90

System

Priority

Staff Staff1

PCA

Process Time Mins5

% C&A %

System

Priority

Staff Staff1

Build Proof


% C&A %60

Priority=Go Live

Staff Staff1

Internal Approval


% C&A %90

Priority=Go Live

Staff Staff1

Gadget

Data

ITS Approval

W/T Hrs0.1

Staff Staff1

Client Approval

% C&A %

Visa

Process Time Mins3

On-line BMAS

Graphics Approval

Process Time Mins3

Staff Staff1

Test File

Process Time Mins2

% C&A %

CCP

Test Card

Process Time Mins15

% C&A %

ITS Approval

Client Approval

Implementation

Process Time Mins1

% C&A %

System

Priority

New Customer Sticker1st Live Sticker

Process Time Mins5

% C&A %

Run

Implementation Approve Run #1

Process Time Mins1

% C&A %98

Staff Staff1

Ship & BillW/T Hrs24 W/T Hrs1.5

W/T Days2

W/T Days3-14

New Client Setup Form

Email/Fax

Artwork

Billing


% C&A %50

Unify

AccPac

Staff Staff1

W/T Days1-7

Implement:Collect Approvals

Process Time Mins1

Staff Staff1

W/T Days1W/T Hrs3

W/T Days1-10

W/T Days1-10

W/T Days1-5

W/T Hrs24

ITS Value StreamCurrent State MapNovember 8, 2007

5 Mins

0 Hours

5-10 Mins

0 Hours

5 Mins

24 Hours

5 Mins

Hours

Mins

Hours

15-25 Mins 1 Mins

Hours

10-30 Mins

Hours

5-7 Mins

72-336 Hours

3 Mins

Hours

3 Mins

Hours

1 Mins

2 Mins

24 Hours

15 Mins

24-240 Hours

0 Mins

0 Hours

1 Mins

24-120 Hours

5 Mins

24 Hours

5-10 Mins

40 Hours

Staff Staff2

100 Hours

3 Hours

1 Mins

24 Hours

Takt = 6-7/ Wk

Operations

Billing Gra

phic

s

Implementations Sales


Order Processing Questions

• Why involve Sales? • What are the green folders for? • How can we eliminate paper? • How can we eliminate faxes? • Can we work in a workcell? • Where can we combine steps? • Which steps can we eliminate? • How can we better coordinate? • What if we worked in the same area? • How can the client help us? • Where can we reduce errors?


Current Order Processing VSM

ITS

L/T Wks2

Takt Wks7

ImplementationGraphics

Cell

Process Time Mins

% C&A %90-95

System

Priority

Gadget

Data

ITS Approval

W/T Hrs0.1

Staff Staff1

Client Approval

% C&A %

Visa

Process Time Mins3

On-line BMAS

Test File

Process Time Mins2

% C&A %

CCP

Priority

Test Card

Process Time Mins15

% C&A %

ITS Approval

Client Approval

Implementation

Process Time Mins1

% C&A %

System

Priority

Run Ship & Bill

W/T Days2

W/T Days3-14

New Client Setup Form

Email/Fax

Artwork

Billing


% C&A %70

Unify

AccPac

Staff Staff1

W/T Days1-7

Implement:Collect Approvals

Process Time Mins1

Staff Staff1

W/T Days1W/T Hrs3

W/T Days1-10

W/T Days1-10

W/T Hrs24

ITS Value StreamFuture State MapNovember 9, 2007

Hours

45-82 Mins

40 Hours72-336 Hours

3 Mins3 Mins

2 Mins

24 Hours

15 Mins

24-240 Hours

0 Mins

0 Hours

1 Mins

24-120 Hours 24 Hours

0 Mins

5-10 Mins

0 Mins

3 Hours

#8New Customer Sticker

#2Customer Agreement

#3 Update ITS Form

#5Group Mailbox

#7Green Folder

#1Reassign Account Mgr

#4ITS Cell

#6Scanner

Customer Order

24 Hours

Operations Bi

lling

Graphics Implementations

Sales


Order Processing Changes Made by the Team

• Eliminated Sales involvement in the process • Revised client form to streamline information • Gained client agreement on accuracy of submitted forms • Replaced client faxes with emails to a shared email box • Shared access to the email box allows parallel work • Folders in shared email box organize incoming requests • Work in process is identified with flags reflecting status • Shared drive archive for completed project documents • Reduced oversight of the initial test and production orders

• Results: Eliminated hours of Sales effort

50% Reduction in Lead Time!


Measure Success, Sustain, and Repeat

27

Productivity = Output / Input

• How will I know I’ve made a difference?

• Monitor input resources and output metrics to see productivity

Achieve year-over-year

• How do I make sure and sustain a key process change?

• Make the metric visible and audit the process changes


Overview

• What is Fiserv?



• What’s Next?

28


Lean Office is the Next Frontier

29

90% of companies are using Lean and

making progress

But… Service productivity lags

Manufacturing productivity


Get Started Now… and Stay Ahead of the Lion

30

Every morning in Africa, a gazelle wakes up. It knows it must run faster than the

fastest lion or it will be killed.

Every morning a lion wakes up. It knows it must outrun the slowest

gazelle or it will starve to death.

It doesn’t matter whether you are a lion or a gazelle: when the sun comes up,

you’d better be running.

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