| Non-manufacturing industries have not embraced lean | | | | Obviously the 5S and SMED tools are also relevant, as |
| manufacturing to the same extent as those producing | | | | well as root cause problem solving to eliminate the |
| a product. Some service industries have found the | | | | complaints. |
| same principles apply, although the use of lean | | | | Service industries often use kanbans without knowing |
| manufacturing tools is different. | | | | it, such as ordering supplies. The same pull systems |
| For example, a value added analysis is just as easily | | | | can be used in service industries as the manufacturing |
| conducted with a worker talking on the telephone as | | | | sector. The supply distribution center is one obvious |
| someone using one. | | | | example. Inventory waste can be eliminated using pull |
| The 5S tool can be used to organize the surroundings | | | | systems beginning with the end downstream |
| in the telemarketing office. All materials the | | | | customer. |
| telemarketer uses should be organized and within | | | | When implementing lean manufacturing in a service |
| reach without having leave the area. This 5S | | | | industry, it is important to tailor the training to the |
| organization enables the telemarketer to continuously | | | | business. Most SMED (single minute exchange of die) |
| utilize any material in front of them as well as keep an | | | | training is developed using examples of setup activities |
| eye on a computer. | | | | for equipment. It is easier for people to understand and |
| The same SMED tools can be used with a | | | | see the waste in their processes when the training has |
| administrative assistant as a machine operator. The | | | | obvious applicability. |
| process map and movement will show the waste in | | | | One of the best long term lean manufacturing tools to |
| each. The assistant's travel shows the motion waste. | | | | apply in a service industry is the kaizen event. Kaizen |
| The waiting waste is often huge in any white collar or | | | | means "incremental improvement" in Japanese. The |
| service job. For example, the waste from waiting on a | | | | kaizen team is comprised of a cross functional team |
| colleague, manager, supplier, or anyone else can be | | | | developed to quickly and substantially improve a |
| eliminated. There are ways to minimize it by removing | | | | business issue. For example, a kaizen might be |
| the root cause as well as finding activities to fill the | | | | developed to reduce hospital check in time for testing. |
| time. These activities should be of short duration, such | | | | The team might include the individuals conducting the |
| as data entry, filing, or printing. | | | | check-in, a nurse, manager, an IT representative, and a |
| Line balancing is easy in a service environment. The | | | | couple customers. If the average check in time is 35 |
| key is flexibility. For example, two tellers at a bank may | | | | minutes (the elapsed time from walking into the building |
| be required 6 out of 8 hours per day, but the trained | | | | until seated in a private room), the kaizen objective |
| lean expert or industrial engineer is required to notice it. | | | | might be to reduce the check in time to 20 minutes |
| The additional two hours of waste comes in buckets | | | | within 5 days. |
| of 1-2 minutes throughout the day. Again, this time must | | | | Cellular manufacturing can be used in many service |
| be filled with value added activities in a standard work | | | | businesses. Rather than placing individual pieces of |
| format. If the job isn't standardized, the two individuals | | | | equipment such as the postage meter, copier, fax, and |
| may absorb the time and appear 100% busy. There | | | | file drawer throughout the area for everyone to use |
| are many other instances where job combinations are | | | | (and wait on), consider placing these items together in |
| obvious. | | | | a U shaped cell to minimize movement. |
| The value stream map is an excellent tool for service | | | | The "One Piece Flow" concept is a great tool for |
| industries. Rather than the traditional macro level view | | | | processing items such as quotes, bills, or mail pieces. |
| of the system, the value stream map can be used in a | | | | For example, if four people must review a quote, and |
| department or area of the business. An example | | | | the first person processes 500 prior to moving to the |
| would be the service desk at a department store. | | | | second individual, and so on, the cycle time is going to |
| Begin with the information flow and trigger for activity, | | | | be very long. Also, if the fourth person notices a |
| which might be a customer. Break the map into | | | | mistake the other three missed, all 500 are bad and |
| various segments showing the few activities that | | | | much labor was spent unnecessarily. Moving the piece |
| comprise 90% of the work, such as returned goods, | | | | in a flow of "one" or in small batches minimizes the |
| request for information, or complaints. Standardized | | | | error cost and reduces cycle time. |
| Operations should be utilized for returned goods to | | | | Service industries have a terrific opportunity to reduce |
| minimize motion and waiting, such as a decision flow | | | | waste. Sometimes it is simple and obvious, while other |
| diagram. If the manager is called a large percentage of | | | | times it takes the same creativity as in the factory. |
| the time, the decision flow diagram needs improved. | | | | |