Lean for Service. Presented by: Dennis Sowards, Quality Support Services, Inc
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1 Lean for Service Presented by: Dennis Sowards, Quality Support Services, Inc
2 DENNIS SOWARDS 15 years experience in mechanical contracting 35 years helping companies improve the quality of how they manage 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 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 University Office: dennis@yourqss.com
3 Workshop Objectives At the end of this session you will be able to: Understand the benefits and principles of Lean thinking including how Value and the 7 types of Waste apply to Service Understand Lean techniques and how these tools work in Service operations Know the 4 rules for improving Service using Lean Learn the key measures to evaluate Service Start Thinking Lean
4 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
5 FACT: Lean works in Construction. BUT Does Lean work in Service?
6 Good News - Lean does work in Service! The opportunity - This is a new frontier. Applying Lean can give a real competitive advantage.
7 What is Value? Transforms the product/service to what the customer is actually willing to PAY for (USEFULNESS/COST) Includes Functions, Features, Time & Pi Price Is done right the first time. Relates to the whole product or service received Is the opposite of WASTE.
8 The Key Value Principles in Service are: Solve my problem completely Don t waste my time - it s not Free! Provide exactly what I want Provide value when I want it Provide value exactly where I want it Reduce the number of problems I need to solve Minimize my total cost (price+time+hassle) and the provider s total cost too.
9 7 Basic Types of Waste (Muda) Defects in products/services: Rework, Call-backs & Punch Lists Overproduction: Fabricating material or ordering it too soon, JIC thinking -ordering too much, doing more PM work than is required Inventory: Material stored at site, yard or in vans, work in process, unused tools & parts, forms and stashes Unnecessary processing: Redundant or unnecessary steps to restock the service van/truck, multi signatures on forms, material requisitions or job ticket, any non-value added steps Unnecessary movement of people: Treasure hunts, looking for files, tools, parts or even the customer. Transport of goods: moving material, tools or parts, or leaving the job to buy material Waiting: Technicians waiting for equipment, plans, approvals or material, or Customers waiting!
10 Lean Principle Lean focuses on maximizing the whole job NOT on maximizing m individual dual performance. Top Priorities 1. Keep Technicians i doing value added work 2. Reduce inventory 3. Reduce other costs
11 Lean Principle PDCA & Experimentation Plan Do Act Check How does this apply to Service work? Plan Do Act Check Plan Do Act Check Plan Do Act Check
12 Basic Lean Tools & Techniques Which tools apply best to Service? Five S s Muda Walk - Chalk Watch Process Mapping/Value Analysis Spaghetti Chart
13 Lean Tools & Techniques The 5 S's Sorting Simplifying Sweeping Standardizing Self-discipline
14 The 5 S's SORTING Sort out the necessary from the unnecessary, discard the unnecessary. What to sort in Service?
15 How to Sort? NO VALUE & EASY TO DISPOSE OF DISPOSE OF IMMEDIATELY UNNECESSARY ITEMS (NOT USED OR NOT LIKELY TO BE USED) SOME VALUE NO VALUE BUT COSTLY TO DISPOSE LOOK FOR BEST USER TO GIVE OR SELL FIND LEAST COSTLY WAY TO DISPOSE RED TAG USE AUCTION RARELY USED (1-2 times per year) NECESSARY ITEMS USED OR LIKELY TO BE USED OCCASIONALLY USED (1-2 per month) FREQUENTLY USED (daily or weekly use) When in doubt - move it out.
16 Opportunities to Sort
17 Opportunities to Sort
18 The 5 S's SIMPLIFYING Create and identify a place for everything based on how often we use it
19 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 goes. Consider: Shadow board Marking the item and the location Color-coding Labels on drawers with list of contents inside 3. Develop ways to replace usable items daily Establish lead times for replacement of daily usage supplies Determine minimum and maximum supply levels and mark them [Kanban - signal to replace]
20 Simplifying a Service truck
21 The 5 S's SWEEPING Physical and visual control of the work area
22 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 5S s activity responsibilities and expectations. Post area cleaning guidelines and schedules. Perform safety inspections on a regularly l schedule.
23 STANDARDIZING is creating standard ways to keep the work areas organized, clean and orderly and documenting agreements made during the 5S s.
24 What to Standardize? Labeling Tools & equipment Forms Truck/vans Key processes such as - how vans are restocked Location of tools & material on vans
25 Not all vans are the same but the location zones can be!
26 The 5 S's SELF-DISCIPLINE Follow through with the 5Ss agreements
27 Self Discipline often includes an Self Audit/ Score Card # Checklist Area Done Progress Started Action 1 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 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? In Not Do 30 second test!
28 Some 5S Examples Before 5S After 5S - Cleaned, organized and drawers labeled (less time and frustration hunting)
29 Service Truck Before After
30 HVAC Van Before After
31 UMEC Tool Crib Before 5S s
32 UMEC Tool Crib After 5S s
33 What does 5S s do for Service Companies? One company applied the 5S s to parts & tools carried in their service vehicles and reduced overall the weight of excess material by 7,000 pounds or about 50 to 100 pounds per vehicle. 5S s saves about 5 minutes per hour per 5S s saves about 5 minutes per hour per employee!
34 Basic Lean Tools & Techniques Five S s Muda Walk - Chalk Watch Process Mapping/Value Analysis Spaghetti Chart
35 Do a Muda Walk in Service Go to Gemba & do Chalk Watch Flow (Don t watch the work - watch for what gets in the way of value!) Treasure Hunts Wastes Standards/systems/methods (can t improve if no standard way exists) Equipment maintenance & utilization Ask Why? (5 times) Ask: How can we make it easier for you to do your job? Fix Problems Now
36 Basic Lean Tools & Techniques Five S s Muda Walk - Chalk Watch Process Mapping/Value Analysis Spaghetti Chart
37 Process Mapping/Analysis What you think your process looks like: What your Customer is willing to pay for (Value added) What the real process looks like:
38 SERVICE CALL VALUE STREAM C u s t o m e r 5 min. 15 min. 5 min min min. 5 min Call for Book Talk to Tech. Hear Service Service Signs problem & Call paperwork. approve work? min. 5 min. Wait for bill Pays bill
39 SERVICE CALL VALUE STREAM C o m p a n y 5 min. 15 min min. 5 min min min min. 5 min Answer call Service Book Service Call? min. Process records & invoice Finish work/drive to facility Contacts facility rep. 5 min. Receive payment Determine the problem Explains problem & gets approval Makes repair & completes paperwork Obtains signature.
40 C u SERVICE CALL VALUE STREAM 5 min. 15 min. 5 min min min. Call for s Book Talk to Tech. Hear Service Service problem & Call approve work t o m e r?min min. Wait for bill 5 min. Pays bill 5 min Signs paperwork. C o m p a n y 5 min. 15 min min. 5 min min min min. 5 min Answer call Finish Obtains Book Contacts Determine work/drive Explains Makes repair signature. Service Service facility rep. the to facility problem & & completes Call problem gets approval paperwork? min. Process records & invoice 5 min. Receive payment Box Score 1st call Total Customer time: 360+ Value Added time: 50+ Value/total time: 14% Technician time: 360+ Value Created time: 90+ Value/total time: 25%
41 Basic Lean Tools & Techniques Five S s Muda Walk - Chalk Watch Process Mapping/Value Analysis Spaghetti Chart
42 Yard Layout Parking Lot Parking Lot
43 Yard Layout Parking Lot Parking Lot
44 How to Improve Service Work Apply Lean tools 5S s to reduce treasure hunts Go to Gemba & Observe Focus on ways to Increase Value Map the Value Stream - look for Waste vs Valueadded times (customer & tech views) Follow 4 Rules for Improving Service - develop your own answers
45 Lean Solutions applied to Service The Key Value Principles are: Solve my yproblem completely Don t waste my time - it s not Free Provide exactly what I want Provide value when I want it Provide value exactly where I want it Reduce the number of problems I need to solve Minimize my total cost (price+time+hassle) and the provider s total cost too.
46 How to Improve Service Work Develop Key Measures Average time per service job & % Value-added time Number of times we are out of material % of Jobs delivered on time - as promised Response time 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
47 Lean Solutions applied to Service Apply these 4 Rules for improving i 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 making the internal service functions efficient and effective.
48 Examples of Applying the 4 Rules: 1. Create a knowledge dialogue with the customer up-front to gain a greater understanding d of the problem. 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 information i about their equipment and its history of failures. Not strangers serving strangers.
49 Examples of Applying the 4 Rules: 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. 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 the right material and tools to solve the problem. Store some parts & material at customer s locations.
50 Examples of Applying the 4 Rules: 3. Level demand d wherever possible to allow more reliable promises of meeting the customer s time requirements. Evaluate the hours the Service department is actually open & rates charged for after hours and weekend work in light of what is value to the customer. Group service calls into different value streams: 1. High-volume but quick work 2. Complex jobs that can be accurately prediagnosed 3. Jobs where problem is unknown prior to job site investigation
51 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. 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 parts are and stocking levels. Make it easy for technicians to see work order history not just most recent.
52 Need Engaged Employees Involvement + Communications= i Engaged Employees Part of Solution Part of Problem How are you engaging your employees? Lean Continuous Improvement Me
53 Change Management Rule Critically Against Virtually Everything
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