Using Visual Management to Identify Office Waste

Transcription

1 Using Visual Management to Identify Office Waste Tenmast Software Case Study Nick Katko, Vice President of Finance & Lean Agenda Introduction to Tenmast Software Overview of Process Tenmast Used Case Study: Contract Delivery Value Stream Case Study: Client Support Value Stream Wrap Up & Questions 1

2 Tenmast Software Tenmast Software 16 years old Sells, installs & supports software for Public Housing Authorities (ERP-type system) Tenmast s market Public Housing Authorities Non-profits Limited budgets Compliance with Federal laws is important Began Lean journey July, 2015 Tenmast Software Business Model Sell software to new clients New installation revenue On-going annual support revenue Long selling process Convert data, Configure system & train client Respond to support tickets & software updates 2

3 Tenmast Software Primary Value Streams New installation revenue On-going annual support revenue Contract Delivery Client Support Convert data, Configure system & train client Respond to support tickets Process to Create Visual Management 3

4 Current State of most Office Work Internal Focus No Visibility Individuality Technical focus Work done on computers Products are not tangible People work on their own Multi-tasking in rewarded Creating Flow: The Golden Rule The Flow time through any process in determined by the queue of work in the process The larger the queue the longer the Flow time Manage the queue by limiting the work in the process 4

5 Visual Management: Creates Flow & Identifies Waste Define the process Identify valueadded work Define a Unit of VA work Define the batch size Set Scheduling Rules Create Flow Identify waste Contract Delivery Case Study 5

6 Answers to Interview, Demos, Documents OBR - Interview By Dept & Subsidy Type Business Review Document Coaches Trainers PM Requirements Verification Document I.T. Infrastructure Review Client Confirmation Hardware, software, connection info, contract Setup Client Environment 2+ Environment Run Legacy Reports,Screen Shots - households, Pre-DCO Customers- Landlords, Vendors, Applicants Initial Data PullData Analysis Initial Data Load on Converter PM, IT, Client I.T. Client DCO, Coach, Trainer, Client DCO Destination Set-Up Validation & Server Destination Set-Up DO Reports, Data, Biz Requirements Initial Foundation Coaches & Client Changes Approved to: Approved COA COA Projects, Projects Developments Developmens, Units, Waiting Units, Waiting Lists, Bank Lists Accounts Foundation Configuration Coach Foundation Configuration Approved COA Projects Project Policy, COA, Projects, Developments Voucher, TAR, Developments, Units Waiting Users, Waiting Units, Waiting List lists Lists Coaches, Client S T O P u n t i l F O U N D A T I O N i s F i n a l i z e d Project Policy, Voucher, TAR of Persons Households, Customers, Applicants De-duped persons Households, customers, applicants w/addrsses De-Duped Persons, Households, Customers, Applicants w/addresses & units. Quality Check: Households, Customers & of Applicants vs Certifications Screen Shots (sampling) Errors or Missing Data Current HAP Contracts & Leases, Housing Specialists, Intake VALIDATION Certifications of Ports, FSS, TAR Balances Port Contracts, FSS case List, Account Balances, FSS Caseworkers VALIDATION Applicants, Vendors, of App details, AP, FA Rank Report, FA listing, Listing, Aging Report VALIDATION Initial Data Pull, item, Qty, Value, P.O.'s, open & historical WO CI, PO, WO inventory list & value, Open list of PO's, Open & completed WO's VALIDATION IDP, S8 check register, outstanding check listing, holds & abatements. AP history, S8 check history, S8 holds, Abatements, CR S8 Check Register, 1099's, Hold code report, abatement report. Coaches VALIDATION 8/22/2016 Before Lean: Contract Delivery Problems was blamed for everything Each employee prioritized their own work Backlog mentality: Work pushed downstream to get to next task Someone else would fix quality problems Pressure to meet billing milestone tasks Having a feeling of meeting the milestone was the reason to invoice client Contract Delivery SIPOC 208 Value Added Process Steps Supplier Client Client I.T., Client, PM Client Sales Input Process Output What we learned Not everyone in value stream was aware of all steps Awareness of connections between Outputs & subsequent Inputs Length of Rework Loops Customer 6

7 Board? 8/22/2016 Current State Value Stream Map Bottleneck Discovery Foundation Initial Configuration Training Go Live Independence Day Rework Loops Define the Unit of Value Added Work WBS Status Resource Phase Task Start Date Finish Date B 1.00 [Client Name] - Tenmast Implementation - Project # 4.00 Staging Executing B 4.01 Incomplete Team Executing Staging: WO Config B 4.02 Incomplete Team Executing Staging: Units/Building/Entrance (each Subsidy) B 4.03 Incomplete Team Executing Staging: Persons Contact, HOH, Members (each Subsidy) B 4.04 Incomplete Team Executing Staging: Customers (each Subsidy) B 4.05 Incomplete Team Executing Staging: Households (each Subsidy) B 4.06 Incomplete Team Executing Staging: Person Ethnicity, Race, & Phone (each Subsidy) B 4.07 Incomplete Team Executing Staging: Customer Remittances- HOH & Owner/Landlord B 4.08 Incomplete Team Executing Staging: Customer Remittances (each Subsidy) B 4.09 Incomplete Team Executing Staging: Person Income, Assets, Expenses (each Subsidy) B 4.10 Incomplete Team Executing Staging: Unit Project & Rent (each Subsidy) B 4.11 Incomplete Team Executing Staging: Certification Details (each Subsidy) B 4.12 Incomplete Team Executing Staging: Ports- Incoming B 4.13 Incomplete Team Executing Staging: Ports- Outgoing B 4.14 Incomplete Team Executing Staging: Consumable Inventory B 4.15 Incomplete Team Executing Staging: Unit Amenities & Utilities B 4.16 Incomplete Team Executing Staging: App List Detail B 4.17 Incomplete Team Executing Staging: TAR Detail B 4.18 Incomplete Team Executing Staging: FSS B 4.19 Incomplete Team Executing Staging: Purchase Orders B 4.20 Incomplete Team Executing Staging: Fixed Assets B 4.21 Incomplete Team Executing Staging: Notes- Person, Customer, HH B 4.22 Incomplete Team Executing Staging: Notes- Unit B 4.23 Incomplete Team Executing Staging: GL History B 4.24 Incomplete Team Executing Staging: Work Orders B 4.25 Incomplete Team Executing Staging: S8 Check History B 4.26 Incomplete Team Executing Staging: AP Checks B 4.27 Incomplete Team Executing Staging: AP Invoice Detail B 4.28 Incomplete Team Executing Staging: Check Recon B 4.29 Incomplete Team Executing Staging: Property Security B 4.30 Incomplete Team Executing Staging: Community Service Before Lean: Project Plan Task Lean: VA Steps within Project Plan Tasks 7

8 Define the Batch Size 1 task What we learned 3 Iterations of board to get this right Project management step contained many VA process steps Using PM step had many tasks in waiting column due to flow interruptions Unable to do good root cause analysis Prioritizing Demand & Scheduling Unpredictable DEMAND Predictable Flow Manager & multiple team meetings Daily team meeting Daily team meeting Weekly team meeting Poor Quality needs to be addressed immediately Queue of projects means priorities can change during the day Unplanned demand impacts priorities Short CYCLE TIME Long 8

9 What we have learned 250 Interruptions to Flow: Quality Rework Overproduction Inventory Overporcessing Waiting Motion Transportation Defects / Rework: Missing Data Requirement De-Dup Issue Staged Data Incorrectly Missed Exception Client Config Change Other What we have learned Interruptions to Flow: Coaches Quality Rework Overproduction Inventory Overprocessing Waiting Motion Transportation Defects / Rework: Coaches Program Issues Config Changes after Go Live Assistance to other VS Other CDVS Resource Assistance Quote Re-Work Other 9

10 Client Support Case Study 10

11 Before Lean: Support Problems Not enough people CSR s chose which tickets to work on (cherry-picking) CSR s pushed many tickets into their queue to look busy CSR s consistently asked to assist each other & help other departments Expediting of tickets Management, Sales, others could change priority of tickets Current State Value Stream Map - Support Value Added Activity All activities which incrementally create value 11

12 Current State Value Stream Map - Support Non-Value Added Activity Necessary Waste No value is created, but cannot be eliminated based on current technology, policy, or thinking Current State Value Stream Map - Support Non-Value Added Activity Pure Waste Wait time 12

13 Defining a Unit of Value Added Work Not all tickets are created equal Providing assistance to other value streams must be scheduled Define the Batch Size 5 Tickets Poor quality of ticket information requires callback to client 90% of the time Allowed 4 waiting for client to call back 5 th ticket must be worked 13

14 Prioritizing Demand & Scheduling Unpredictable DEMAND Predictable Flow Manager & multiple team meetings Flow Manager & Daily team meeting Daily team meeting Weekly team meeting Value stream manager prioritizes tickets each morning Team meeting to review: Schedule attainment Flow Interruption root cause analysis Short CYCLE TIME Long What did we learn? 14

15 What do we continue to learn? Productivity has remained flat 3 Productivity - Tickets Completed/Hours Worked y = x R² = /12/15 1/31/16 3/21/16 5/10/16 6/29/16 8/18/16 15

16 Ticket Analysis: 70% Tickets are SIMPLE Simple & Complex Flows for future state 2x to 3x Productivity by 12/31 Create Value & secure our annuity 16

17 Wrap Up Future State: Flow Boards create Visibility Schedule Daily work schedule for team Long-term plan Prioritization Daily schedule Pull System as work is completed Performance Daily performance measures Issues & problems 17

18 Future State: Pull System Identifies Waste Prioritize Demand Before work in released into value stream Determine frequency of prioritization Small Batch Size Release work into value stream in smallest batch size possible Single Piece Flow Each process step completes all work on a batch before moving to next batch Create rules to manage defects Future State: Deliver Value Productively External Focus Visual Workplace Teambased work Flow work with minimal waste Maintain Quality Maintain technical standards Scheduling Demand Issues & problems Pull System Self-directed work teams 18

19 Benefits of Office Flow Improved Performance Productivity reduces spending over time Customer Satisfaction Improved quality & delivery Satisfied internal & external customers Continuous Improvement Problem solving Manage Flow & Waste Question Time & Contact Information Nick Katko Tenmast Software W