LEAN OFFICE
Your organization's Lean transformation will not be complete until Lean concepts and techniques are applied to its biggest Lean opportunity - the office!
While shop floor applicatons are a great beginning to your organization's Lean journey, it will never see the REAL Lean path until it addresses the high cost and leadtimes associated with the office. LTG partners have been applying Lean techniques and tools to the office function for over 15 years.
Administrative Lean™
LTG's Administrative Lean™ applies concepts and techniques of the Toyota Production System to office work (see LTG's Lean Office Case Studies) such as:
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• accounting
• engineering
• purchasing
• R&D
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• budgeting and planning
• human resources
• information technology/systems
• sales and marketing
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Administrative Lean™ makes use of Value Stream Mapping, a tool that shows how work is done and how to improve that work.
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In 2003, LTG helped pilot and launch Administrative Lean™ at a major automobile company resulting in annual savings of over $1 billion.
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What LTG's work has shown us about Lean office implementation
Most office processes were never formally designed — they simply grew up. "Patches" added along the way create more waste and confusion. There are so many work-arounds that no one fully understands the process. Office processes tend to be low volume, not repetitive, and have high variation.
Key output requirements are not well defined. The process purpose and value are not clear. There are no effective measures for managing processes, and if there are any metrics at all, they focus on end results rather than continuous improvement.
The principles and possibilities that Lean generates can be applied in all business areas. LTG clients who have implemented Lean thinking and techniques to their office functions have seen the following improvements:
• Order Entry from 2 days to 7 minutes
• Engineering changes from 7 months to 1 month
• Accounts Payable from 2 days to 4 hours
• New Product Quote 35 days to 10 days
Eliminating costly waste from administrative and office functions is a great way to increase your organization's profit margin and a vital part of its Lean transformation toward creating a total Lean organization.
LTG is committed to helping you enhance your operations with a Lean transformation - Contact Us today.
LEAN OFFICE CASE STUDIES
Steelcase was a client served by a few of our partners. They used lean thinking to change the way their office processes were designed, even in product development and information systems! Here is a case study covering some of their transformation:
- Learning How to Implement Customer-Focused, Enterprise-Wide Lean.
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