The 8 Common Wastes in an Office That Cause Downtime

Applying Lean to office processes is an often misunderstood concept. Many efforts at lean office often fall by the wayside since measuring improvement is nearly impossible. It is important to analyze the office processes themselves to determine how to apply lean appropriately. The best way to accomplish this is to first understand how the seven wastes of manufacturing apply to office processes to identify improvement opportunities.

To identify and eliminate the waste that plagues your office, learn to identify the 8 wastes in their manifestations.  Here is a list of the 8 common wastes of Lean, and some ideas about how they manifest in the office environment.

Defects & Inspection

This is work that you thought was complete but requires to be touched again due to not meeting the customer's needs. Inspection is the same as review and this is in the flow because our internal customer doesn’t trust that we can deliver what they want. This leads to more reworking of defects, but we have to fix the process to produce a good product.

Examples:

•       Order entry errors

•       Design errors or engineering change orders

•       Invoice errors

•       Lost files or records

•       Bad or Missing information

Over Production

This is the act of producing more than what the customer wants instead of providing what they need or actually paid for.  This is a fast way to lose customers as it requires more time and resources, something that is in short supply.

Examples:

•       Producing reports that no one reads or needs

•       Making extra copies just-in-case

•       Producing more to avoid set-ups

•       Entering repetitive information on multiple documents

•       Memos or email to everyone

Waiting

A period of time delay spent while expecting something to happen or ready for something to happen. Waiting waste is idle time created when material, information, people or equipment is not ready.

Examples:

•       Waiting for approvals or signatures

•       Attendees not all on time for meeting

•       Slow system response time

•       Delays in receiving information

•       Printer or computer break-down

Non-Utilized People or Knowledge

People’s skill, abilities, and knowledge are not effectively or appropriately used. This happens frequently in large organizations where the skills and backgrounds of everyone are not common knowledge. The biggest crime in this category is not empowering or enabling the people most intimate with a process to improve the process.

Examples:

•       Bypassing procedures to hire a favorite candidate

•       Start using software without prior training

•       Not providing opportunity for professional development

•       Limited authority and responsibility for basic tasks

•       Inadequate business tools / training available

Transportation

This is where you have to take the product you are working on and move it somewhere.  That act of moving does not change fit, form, or function.  We are usually taking it to the boss to drop it off on their desk be reviewed, so we can rework it later.  I see a pattern developing here.

Examples:

•       Moving product in and out of storage

•       No signs identifying areas or departments

•       Multiple hand-offs or approvals

•       Bad area layout

•       Excessive filing of documents

Inventory

Inventory is a common result of multi-tasking and otherwise un-balanced workloads.  It can be found in e-mail or work order in-boxes, to-do lists, product development pipelines, and resource assignment charts.  If a person has three tasks to complete, it is guaranteed that two of them are waiting (in inventory) while that person performs the third.  If you want to be able to see inventory like you do on the factory floor, you must make the lists, in-boxes, resource assignments, and project pipelines visible in your workspace.

Examples:

•       Excessive office supplies

•       Files piled up between desks

•       No storage space because its filled with stuff not needed

•       Batch processing transaction & reports

•       Obsolete files or office equipment

•       No sufficient cross-training

Motion

Excess motion primarily refers to people having to walk to office equipment or (even more importantly) having to walk to find people. Meetings are motion in the sense that they are work without producing, unless a decision is made or information is produced during the meeting. Motion shows up as people search for files they can’t find, in phone calls to track down information, or from unnecessary button clicks to get to the bottom of a work order to update the to-do list.

Examples:

•       Looking for items without a defined place

•       Searching for files on computer

•       Employees not working to a standard method

•       Poor work area layout

•       Sorting through materials

Excess Processing

Excess processing often results from the creation of multiple versions of a piece of work that now must be reconciled into the true work.  It shows up in additional signature approvals, data entry or data format changes, frequently revising documents or information, or complex forms or databases that require information to be entered repeatedly. 

Examples:

•       Multiple signatures

•       Unused or unnecessary information collected

•       Re-entering data

•       Different software working on same document

•       Expediting

•       Unnecessary or excessive reports

My best advice for finding and eliminating waste in the office is to find what bugs you.  Hunt down the rework, the overtime, the stress and frustration, and you will quickly begin putting your fingers on the waste and its causes. Address the causes of the waste.  Eliminate them.  In doing so, you will not only make your business more productive, but it will be a much better place to work.

Quality Control is Not Quality Assurance

The terms “quality assurance” and “quality control” are often used interchangeably to refer to ways of ensuring the quality of a service or product. The terms, however, have different meanings.

Control: An evaluation to indicate needed corrective responses; the act of guiding a process in which variability is attributable to a constant system of chance causes.

Quality Control: The observation techniques and activities used to fulfill requirements for quality.

Assurance: The act of giving confidence, the state of being certain or the act of making certain.

Quality Assurance: The planned and systematic activities implemented in a quality system so that quality requirements for a product or service will be fulfilled.

At its simplest, quality control is inspecting, testing or checking something (service or product) to make sure it's OK.  The intent is to identify anything that isn't OK, and either fix it or eliminate it, to make sure it conforms to the specifications, and has/does/functions as required.  Quality control is typically done at the end of the line, before it 'goes out the door'. If the something isn't OK, this is called 'nonconformity' or a nonconforming service/product.

Quality control does not ensure quality, it only finds instances where quality is missing.  Obviously it's better than nothing, but it has its limitations.  The most important of these is that you only find out that things aren't OK at the end of the process.

Quality assurance developed from the realization that quality could be improved by looking 'further up the line'.  Quality assurance activities are determined before production work begins and these activities are performed while the product is being developed. It is aimed at preventing nonconformities/defects.

Quality assurance focuses on processes and their continuous improvement. Its goal is to reduce variance in processes in order to predict the quality of an output (final or interim product), gather best practices for the company, reduce cost, and reduce time to market. Quality assurance  is strongly linked to innovation and creativity. Quality Assurance neither imposes nor defines processes for other people, but it provides advice and support to the process owner, which leads to the ability to measure success and make decisions based on facts.

Quality control is concerned with examining the product or service — the end result and quality assurance is concerned with examining the process that leads to the end result. A company should use quality assurance to ensure that a product is manufactured in the right way, thereby reducing or eliminating potential problems with the quality of the final product.

Lean Quote: Management Commitment is the Driving Force Behind Quality and Productivity Improvement

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"It is only when management supports, in both word and deed, the goal of continuous improvement, that it will begin to see increases in both quality and productivity." — Wheeler and Chambers

In my experience I have learned that the single most important element for success in Lean is the human element.   First and foremost Lean managers have the critical role of motivating and engaging all people to work together toward a common goal. Management must define and explain what that goal is, share a path to achieve it, motivate people to take the journey with them, and assist them by removing obstacles.

All managers are teachers, and their actions determine company capability. Whether consciously or not, with their everyday words and actions all managers are teaching their people a mindset and approach. So it makes sense to ask, “What patterns of behavior and thought do we want to be teaching in our organization?”

Commitment from management is a “MUST”. In fact, it is the driving force. Procedures, tools, and database are all useless if the management does not want to see an improvement culture in the organization. The employees of the organization will not care, if the management themselves do not show the attitude to follow the right path.

The truth is demonstrating commitment is hard work. Wavering commitment is usually seen as no commitment at all. The only way to achieve a reputation for commitment is through determination and persistence. Genuine commitment stands the test of time.

Commitment is demonstrated by a combination of two actions. The first action is called supporting. The second action underlying commitment is called improving.

It is the combination of both supporting and improving behaviors that makes up the practice of commitment. Company leaders demonstrate their commitment to change and improvement by making these behaviors visible to everyone. Leading by example is the ultimate demonstration of your commitment. 

 

Taiichi Ohno’s Workplace Management: Special 100th Birthday Edition

TaiichiOhno’s Workplace Management was directly written by Taiichi Ohno, founder of the Toyota Production System. Many of his writings were transcriptions and interpretations of the man himself, leaving the reader to wonder how accurately it reflected the thoughts of this transformational leader. Jon Miller, both an experienced lean expert and fluent in Japanese, provides this latest translation and re-release of what should be a staple of every lean library.

This small book is a compilation of 38 short chapters each one or two pages that originally were spoken narratives with Taiichi Ohno. The book is not written by him, but is the result of these several discussions from Ohno. Some of the chapters are extremely insightful in the way of thinking Taiichi Ohno used when thinking up ideas for the Toyota Production System. There's also an excellent Publisher's Foreword and even better Afterword taken from Taiichi's 1st TPS textbook.

Although much of the learning comes in the form of specific nuggets of knowledge and subtle points and hints, a major theme throughout the book is the focus on the “gemba” or real place. The message is that you can’t effectively lead, manage, solve problems or improve without a relentless focus on the gemba. This means not only is this where you spend your time, where the work is done, but also it is what you seek to understand. He asks you to put aside your assumptions and see what is really occurring.

Unfortunately, this book is devoid pictures and illustrations which would bring clarity to the teachings. However, Ohno uses a combination of direct logical arguments, stories and analogies to paint a picture for his audience, the same you might expect to do in coaching his employees during the transformation of Toyota.

There is not a clear flow to the book, it is not easy to draw the intended conclusions and there is a substantial amount of redundancy throughout the book. Furthermore, there are chapters on unrelated topics such as one about issues within Japanese politics from the 1980s which is clearly not within the focus of the book.

TaiichiOhno’s Workplace Management is a must read for anyone serious about understanding Lean manufacturing in general and the Toyota Production System in particular. Word of caution, this book may have you seeking more answers than it gives. If you are seeking these answers, as many readers are, this is not the book to start with. It is particularly helpful if you are already be familiar with TPS concepts in order to fully grasp the teachings of the Lean Mastermind

This unique volume delivers a clear, concise overview of the Toyota Production System and kaizen in the very words of the architect of both of these movements, Taiicho Ohno, published to mark what would have been his 100th birthday. Filled with insightful new commentary from global quality visionaries, Taiichi Ohno's Workplace Management is a classic that shows how Toyota managers were taught to think.

What Makes A Happy Worker VS A Sad Worker?

There is a lot of discussion and focus on employee happiness and whether happy employees are more productive or harder working. Maybe employers should begin taking a look at their sad or disengaged workers to determine if it is their position or job they are happy performing or not. Many companies use HR training in order for management and others to implement workplace wellness training as sad workers can cause more problems than just low productivity.

Sad workers have a tendency to cause interoffice problems with other coworkers and with management. Workshift is the new type of office work environment. Workshift is essentially mobile office work saving commuting time, providing less interruption to upper level management, happier workers who are engaged in the actual work they are required to handle.

This happy vs sad worker infographic provides extensive data showing how an employees emotional well-being has a direct correlation with their work ethic, not necessarily their work productivity.

• Over seventy percent of employees are just going through the motions while at work, not fully engaged in the work atmosphere. 
• Eighty-six percent of current office workers desire workshift employment which is work done mobile rather than in the office. Those who workshift are more engaged, have less struggle working with management and coworkers.

Employers face a high turnover rate in employees and may need to become more flexible with employees reporting to the office to work. Company workplace stress training can be used to help employees feel more engaged while at work.

Featured By: Compliance and Safety

Lean Metrics Should Accurately Reflect the Process to Maximize Performance

On The Lean Edge Blog, last week was a discussion on Lean metrics. The question was, “Is there a Lean way to measure productivity?”  I thought I would add my thought to the conversation.

It is not enough to simply create a numeric measure. The measure should accurately reflect the process. We use metrics to base decisions on and to focus our actions. It is not only important to measure the right indicators, it is important to measure them well.

Metrics generally fall into two categories:

Performance Metrics are high-level measures what you are doing; that is, they assess your overall performance in the areas you are measuring. They are external in nature and are most closely tied to outputs, customer requirements, and business needs for the process.

Diagnostic Metrics are measures that ascertain why a process is not performing up to expectations. They tend to be internally focused and are usually associated with internal process steps and inputs received from suppliers.

A common mistake is to start first with your diagnostic measures - measuring yourself internally, rather than beginning with an external focus, namely your customer.

Metrics drive behavior, and the wrong metrics drive the wrong behavior. Direct labor productivity is not a good metric. It doesn't matter whether each worker is producing as much as possible. What matters is whether the plant is producing the amount of product the customer wants. And that is not the same thing. Don't talk about direct labor productivity.

Too many metrics create chaos and unnecessary work. Too few metrics will not provide enough measurement to ensure you’re your strategies are supported. Your metrics should provide insights into the progress your agency is making.

One of the biggest metrics mistakes is random selection. The best metrics start with the big picture. Identify the overall objective of your company or initiative. State it quantitatively. It should answer the question: "We'll know this is successful when we see _____ happen."

Metrics at the lowest layer of an initiative or organization have the highest actionability. A focus on the most actionable metrics is essential for 'moving the needle' of big picture metrics. When you identify a problem or opportunity that needs to be addressed, this is the symptom that you will explore for root cause analysis. Start with the observable problem or opportunity, not with possible solutions.

Organizations should figure out the story the metrics are supposed to tell and then stick with that outline. The metrics should describe the extent to which your organization is performing its mission. Metrics should explain your intentions and objectives.

Without good performance measurements, it is easy for companies to fall into a very common trap: Employees keep busy with all kinds of activities but achieve few of the desired results. Effective performance measurement is the compass that guides management toward meaningful results at the process level, results that will tie directly with the company's goals

Although there may never be a single perfect measure, it is certainly possible to create a measure or even multiple measures which reflect the performance of your system. If the metrics are chosen carefully, then, in the process of achieving their metrics, managers and employees will make the right decisions and take the right actions that enable the organization to maximize its performance.