Expanding Lean into the Vertical. Laurie El-Naggar North America Customer Service Operations Capability Leader Procter & Gamble

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1 Expanding Lean into the Vertical Laurie El-Naggar North America Customer Service Operations Capability Leader Procter & Gamble

2 Procter & Gamble

3 P&G Customer Service Operations Part of Supply Network Operations 2 Sub-Organizations in North American CSO Order Management Order Acquisition Order Processing Customer Communication / Care Accounts Receivable Billing Receivables

4 CSO s Role in the Supply Chain ORDERS Order Mgt Accounts Receivable CASH TO P&G Ship Delivery DC Shelf

5 CSO s Role in Service

6 BEFORE Laurie s Past Perception Customer Orders = Lightning Bolt

7 AFTER Customer B Order Processing VSM Current State Laurie s Current Reality Customer Orders = VSM with Lots of Waste!!!

8 What To Do and Where To Start???

9 In the Vertical for Capability and Stability Customer Shelf Distribution Centers Customer Team Customer Service Transportation Customization Quality Organization Manufacturing Sites Suppliers Lean Is Needed For BOTH Across the Horizontal for Integration and Synchronization

10 Align Leadership This is the way we do work Link to Business Strategies and Plans Identify Critical Daily Work Implement Standard Work for Critical Daily Work Involve All Employees

11 Leadership Alignment Tactics Look for Waves to Ride and a Critical Mass Gain Quick Wins Under the Radar Educate Leaders with Facts from Quick Wins Keep It Simple Start Small and Build

12 Link Business Strategies and Plans to Lean Look for specific strategies that seek to: Improve customer results Solve chronic problems Deliver breakthrough results Make the connection in action plans: Lean approach to close gap

13 Identify Critical Daily Work What tells me if we had a good day? How do we measure if we had a good day or not? Which measures are highest in priority? What work processes deliver or enable the most important measures?

14 Critical Work = Standard Work All critical work processes have: System Owner Single work process as the standard Built-in Quality: In process/output measures Scorecards Visual controls Standards management PDCA process for improvement

15 Total Employee Involvement All Employees Trained and Qualified Standard Work Methodology Continuous Improvement Tools Specific skills to execute critical daily work All Employees Report and Own Their Daily Results Cascading checks of critical standard work Ownership and problem-solving at the lowest level Leadership role: problem-solving coaches

16 CSO Leadership Standard Work Strategy Development & Deployment Informal & Formal Checks Organizational Action Plans Standardization Individual Annual Work Plans Execution

17 CSO Leadership Standard Work Informal and Formal Checks Cascading Audits Daily Meetings Monthly Reviews Quarterly Reviews Quarterly Work Plan Reviews/Updates Strategy Development & Deployment Corporate Goals and Strategies Customer Priorities OP Model Assessment Action Plan Development Organization s Focus Areas Business Specific Metrics Individual Annual Work Plans My measurable contribution Dynamic Contract with Manager Standardization Standard Work Visual Management Standards Management Execution Skills Development and Qualifications VSM teams Kaizen teams

18 IT WORKS The Results Are Proof 4 Year Journey Comparison: Costs and Headcount 40% Service Level 35% Order Quality Interventions - 21% Employee Satisfaction 15% (benchmark for P&G) Customer Service Support #2 vs Competition

19 In the Vertical for Capability and Stability Customer Shelf Distribution Centers Customer Team Customer Service Transportation Customization Quality Organization Manufacturing Sites Suppliers Lean Is Needed For BOTH Across the Horizontal for Integration and Synchronization

20 Expanding Lean Into the Horizontal Modify tools to learn to see and collaborate Apply PDCA concepts from the vertical Build capability in all verticals

21 Synchronization Tool VSM for the Office Leverage Applicable Metrics for Information Flow Process Time Delay Time Lead Time Complete and Accurate Identify and Eliminate Work Flow Problems Quantify and Meet Requirements for both End Use and Internal Customers

22 REFLECTION What specifically exists in your culture today to enable sustained success in delivering your business results? What could be improved? How would focus on building a lean culture and capability throughout both the vertical and the horizontal make a difference in the results you are achieving today?

23 QUESTIONS?

24 Thank You! Please complete the session survey at: Session: ThP/46 Expanding Lean into the Vertical Laurie El-Naggar Procter & Gamble