Title: Creating New Competitive Advantages
1Creating New Competitive Advantages
Executive Overview for
2- TBM LeanSigma Business Process
- Transformation
Rapid, dramatic new efficiencies and performance
improvement for Ryan Companies
3Overview
- Business Processes
- Differentiation
- Value Innovation
- Lead-time reduction
- Reduce costs
- Increase efficiency
- Improve quality, delivery and customer
satisfaction - Harder to visualize and control than
manufacturing processes - LeanSigma rapid business process improvement
4Our Consistent Focus
Time-Based Management
Kaizen Breakthrough Methodology
LeanSigma Value Chain Transformation
5Evolution of LeanSigma
TBMs fusion of todays most powerful improvement
programs
RQM at Ryan Began Here
6Time-Based Strategies
Lead-Time Reduction
Reducing Operational Lead Time Across Your Value
Chain
Time
Site Control
Development Services
Property Sales
Property Asset Mgmt
Pre-Con
Occupancy
Construction
Admin
Admin
Business Process Kaizen
Business Process Kaizen
Job Site Kaizen
Dev Svcs
Const
Pre-con
Occ
Mgmt
Sale
S-C
Operational Lead Time
Critical for driving improvement to your customers
7Time-Based Strategies
Lead-Time Reduction
The Key is to Reduce Your Processes to Core Value
Wasted Time and Activity Core Process Value
Excessive Motion (Walking to Next Task, etc.)
Defects (Warranty, Punchlist)
Over/Under Capacity
OPERATIONAL LEAD TIME
Waiting (Often Result of Unbalanced Tasks)
Transformation (Administrative Excessive
Reporting)
Unneeded Processing Time
PITAs
The key is to reduce your processes to core
value
8Time-Based Strategies
- Value-Adding Activities
- Matching customers needs with land, development
and design/build services - Non-Value-Adding Activities
- Consume resources, but don't directly contribute
to product or service
9Time-Based Strategies
Lead-Time Reduction
- Identify and eliminate waste
- Defects and re-work
- Hand-offs loop-backs
- Over-engineering
- Unnecessary processing
- Decisions in process
- Excess movement
- Waiting
10Time-Based Strategies
Typical Payoff
Increased to 95-99 Increased to 90 or
more Reduced from days to hours, with fewer
errors Increased to 15 per year At least 3-5x
industry average At least 2-4x industry average
Customer service levels Customer
retention Service lead time Productivity
improvement Sales growth Earnings growth
11Our Approach
Kaizen Breakthrough Experience
Team-based energy and creativity drives immediate
process improvement
Day 1
Day 2
Day 3
Day 4
Day 5
Present results and celebrate
Conceptual training on - LeanSigma Transformatio
n - Lean Business System - Kaizen Breakthrough
Methodology - Standard Operations
Cross-functional teams Identify areas of focus
Analyze current work process Team formulates
process improvement Hands-onworkplace
improvement One-piece flow implementation
Continue hands-on workplace improvement
ConductPoint Kaizen Additional process
improvements
Refine improvements Establish standard work
results Simulate and Train
Implementation Document new standard operation
At the end of the week, each Kaizen team has
achieved dramatic operational improvements
12Business Process Kaizen
- Walk the process steps
- Create spaghetti map to uncover waste
- Create detailed process flow map
- Identify hand offs and loop backs
- Identify non value-adding activities and
unnecessary process steps - Identify decision delay points
- Collect data
- Transaction history and samples quality, product
and daily volume information, etc.
13Client Successes
- Company
- First Data/Western Union
- Process
- New agent set-up
- Problem
- Process taking 90 days, 15 attrition between
sign-up and completion - Department was bottleneck
- Approach
- Kaizen teams attacked process segments over
six-month period
Western Union BEFORE
Western Union AFTER
14Kaizen Results Achieved
First Data/Western Union Example
15Business Process Kaizen
Three Types of Maps
Enhanced Spaghetti
Value Chain
Business Process Flow
16Example of Value Chain Map
17Example of Value Chain Map
18Example of Value Chain Map
19Example of Process Flow Map
Mail Room Process
Value Add
Bring cages
Start
into mailroom
Mail Courier
Unload bins
from cages
Non-Value Add
Put envelopes
Slice thin
in trays pull
small envelopes
out label sheets
in machine
Sort the thicks
w/ machine count
from the thins
Sorter
the smalls
Count thick
envelopes, then
put envelopes
label sheets
on shelf
stack in trays
Thick envelopes are
opened manually
then claims are
extracted sorted by
Pick up tray
Put claims
from shelf,
claim type
Mail Extractor
in trays by
return to desk
claim type
Thin envelopes have
claims extracted
from them sorted
by claim type
Pick up trays
QC each
take trays to
Lead
End
place on cart
tray
input prep
20Example of Enhanced Spaghetti Map
Mail Room
21Process Flow Maps
22Launch Model
TBM LeanSigma Launch Model
Translate Operational Improvements into Growth
Organizational / Culture Change
LeanSigma / Kaizen Operational Improvement
Improvement Plan Launch
Assessment
Awareness / Consensus
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
23Getting Started
- Conduct Business Process Assessment
- Develop Go-Forward Plan
- Develop and Train Internal Resources
- KPO Staff
- Training Plan
24Business Process Improvement Plan
25TBM Business Assessment
- Cultural Transformation Plan
- PSE workshop
- Kaizen Breakthrough workshop
- TBM Executive Exchange
Senior Management
- KPO Exchange
- Outside Kaizen events
- Public
- Other clients
- KPO workshop
Corporate CI Manager
- Outside Kaizen events
- Public
- Other clients
- LeanSigma Black Belt training
- Kaizen instructor training
CI Facilitators
- Lean Management Accounting workshop
Finance/Accounting Managers