Why so many systems & handoffs – vertical / horizontal ??

1. Muda in Service Industries
“Why so many systems & handoffs
– vertical / horizontal ??”
Anand Subramaniam

2. “Why waste time learning, when ignorance
is instantaneous? ”
- Bill Watterson
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3. Increase Velocity by Waste Elimination
Speed Flexibility
= +
Cost
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4. Why Eliminate Waste ?
 Don’t throw money away $$
 Keep customers– cheaper to retain than to acquire
 To avoid high operating and production costs that
are ultimately passed on to the customer
 To maximise opportunity to have a significant
financial impact on the business
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5. Service Waste - NVA
1. Information
2. Energy and Water
3. Defecting customers
4. Untapped Human Potential
5. Materials
96% Non Value Add
6. Customer Time
7. Service and Office
8. Inappropriate Systems
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6. Types of Service Waste
1. Information 5. Materials
2. Energy and Water 6. Customer Time
3. Defecting customers 7. Service and Office
4. Untapped Human 8. Inappropriate
Potential Systems
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7. # 1 - Information
 Should not take very much time
 Should not require double checking
 Figuring out what to do and when to do it
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8. # 2 - Energy and Water
 Fixing leaks
 Shutting down the machine
 Turning off a dripping faucet
 Shutting off unnecessary lighting
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9. # 3 - Defecting Customers
 Loss of existing customers resulting from:
 High costs
 Poor quality
 Poor service
 Late deliveries
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10. # 4 - Untapped Human Potential
 Create / develop thinking people
 The power of using the thoughts of all
employees; not just managers
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11. # 5 - Materials
 Recovery, remanufacturing, and recycling
 Conserving materials during design,
manufacture, customer usage, and more
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12. # 6 - Customer Time
 Forced to wait in value-adding services
 Customer inconvenience: waiting for a
delivery or traveling for a service not
offered locally
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13. # 7 - Service and Office
 Wasted food  Excess emails
 Copies in triplicate  Excess
or more !! photocopying
 Unnecessary  Overly fancy
meetings presentations
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14. # 8 - Inappropriate Systems
 Record keeping
 Remove waste before automating
anything
 Include manual as well as computerised
systems
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15. If the above waste are ignored….
 Higher operating costs
 Higher production costs
 These costs will eventually be passed on
to the customers….and
 You loose them to your competition
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16. How can this waste be removed ?
 Start with TOC, SDCA and then to PDCA
 Solved through “Lean Thinking”
 “Lean Thinking” = elimination of all forms
of waste from an operation
 Utilise = Lean, Kaizen, JIT, Jidoka and 5S
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17. Where does one start ?
 Theory of Constraints (TOC)
 There is a single point in any process operating at
100% capacity
 Making improvements anywhere else will not improve
overall flow
 Thus, start at the bottleneck
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18. “Computers may save time but they sure
waste a lot of paper. About 98 percent of
everything printed out by a computer is
garbage that no one ever reads.”
- Andy Rooney
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19. Good Luck
http://www.linkedin.com/in/anandsubramaniam
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