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Lean Office FAQ:  Lean Management

1. Where is the best place to start a Lean Office project?

2. How is Lean Office different from other process improvement techniques?

3. What is the difference between six sigma and Lean Office?

4. What are the differences between the following improvement approaches: PDCA, DMAIC, and the Five D's?

5. What are Lean Office values?

6. How does Lean Office enhance value alignment?

 

1. Where is the best place to start a Lean Office project?

There are three drivers to customer value creation. They are people, process, and tools. In the office environment tools consist primarily of paper and computerized information systems. To power an effective value stream these three drivers must be synchronized - none overpowering the others.

The best place to start a Lean Office project is with a value stream where one of these three value drivers is obviously out of alignment with the other two. The fact that the driver is obviously out of alignment will help its stakeholders realize the need for change and create a clear target for improvement. Under this scenario, Lean Office techniques can be applied to bring the misaligned value driver back in line without having to make significant changes to the other two; greatly simplifying an initial project.

Of the three value drivers it's usually easier to change a process than it is to change people or tools. The focus of Lean Office is to maximize value added activities while minimizing waste or non-value added activities. When applied to processes this means evaluating each activity of the process to see how it can be modified to either increase its value to stakeholders or reduce its waste.

The following are indicators of a good process candidate for a Lean Office project:

  • So ineffective it would make a good candidate for a Dilbert cartoon
  • Does not cross functional or organizational boundaries
  • Has 8 to 16 separate roles, performed either sequential or in parallel
  • Is somewhat standardized and repeatable with a steady flow of work
  • The total work time to complete all of the activities is significantly less than time from the start to finish
  • Can be segmented so that the initial implementation impacts less than 20 people

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2. How is Lean Office different from other process improvement techniques?

  1. Lean Office takes a system wide view of the drivers of operational performance. Process (methods) is only one of the five M's that impact performance. (See the Lean Office Glossary for a description of terms) The others are men and women, machines (information systems), materials, and measures. Lean Office techniques help to optimize all of the performance drivers, not just process. This is why Lean Office is generally referred to as performance improvement not process improvement.
  2. The objective of Lean Office is not to improve processes. It is to increase customer value and reduce waste. The name of a project has an incredible impact on the results of that project. Name a project process improvement and the result will be improved processes, but possibly with no financial benefit to the organization. Lean Office may improve certain process in order to increase customer value. However, if improving a process improvement didn’t increase customer value or reduce waste, then with Lean Office there'd be no reason to do it.
  3. Lean Office is not about finding one answer or optimum result. Lean Office is about engaging employees in continuous improvement. Office systems are complex systems. Lean Office assumes that for all but the most trivial environments it's impossible to fully understand all of the upstream and downstream dependencies on a single task. Lean techniques are designed to enhance operational performance a bit at a time, let things settle to understand both the intended and unintended consequences, and then make additional improvements.

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3. What is the difference between six sigma and Lean Office?

Both six sigma and Lean Office were originally developed for the manufacturing shop floor and have found application in the office environment. Both take a continuous improvement approach to making operating performance better everyday. Both are customer focused and have their roots in quality improvement; though both have evolved to not only improve quality but also increase responsiveness, throughput, and employee and customer satisfaction.

Although their roots are similar, six sigma and Lean Office are two different tools; just as a hammer and a saw are two different tools. Each has sweet spots where they works the best, areas where they are OK, and areas where they are a waste of time. Over time the two approaches are adopting techniques of the other, as organizations realize that there is no more reason to build a house with just a hammer, as there is to build a house with just a saw.

Six sigma's primary focus is on the reduction of variation. Six sigma uses statistical mathematics to measure and predict variation. Once identified, reducing variation reduces defects and costs; thereby increasing performance. As an approach, six sigma does not specify techniques for reducing variation once discovered. Lean Office techniques can be one of the tools to reduce the variation monitored by six sigma.

Lean Office's primary focus is on maximizing value creation and minimizing waste. Lean Office assumes that the job of enhancing value creation and waste reduction is never done. There are always incremental improvements to be made. Lean Office relies on measurements such as six sigma or balanced scorecards to establish the status quo and evaluate the impact of change. But Lean Office is more of an approach for defining how systems should operate to maximize throughput while minimizing cycle times and waste.

Therefore, six sigma is more of a measurement tool to help identify problems and establish when they are resolved. Lean Office is more of an operations tool to help define from a system-wide perspective the most effective way for work to be performed.

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4. What are the differences between the following improvement approaches: PDCA, DMAIC, and the Five D's?

Each of these continuous improvement approaches are defined in the Lean Office Glossary. As approaches for conducting continuous improvement programs each represents a cycle of implementation steps or stages; and all are typically represented as wheels. Although each defines what is included in each stage/step slightly differently, the overall contents of each are roughly identical. Whether you use one of these approaches or some other variation, it’s important that:

  • It be done continuously
  • There are sufficient measurements to insure progress is made
  • Nothing else is broken

There is an interesting continuum where each of these particular approaches exists when it comes to problem solving. Consider a scale from one to five where one is "eliminate the negative" and five is "accentuate the positive". On this scale six sigma would rate a one, PDCA would rate a two, and the Five D's would rate a five. Depending on the organizational culture, one of these approaches or its derivatives may be more appropriate than another.

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5. What are Lean Office values?

Value is a popular term within the vocabulary of Lean Office. Like many popular terms it means different things to different people. The Lean Office Glossary defines value as something of worth in usefulness or importance to the possessor. To paraphrase another saying: value is in the eye of the beholder. So there is nothing simple about establishing the value of something. It depends on the context and the individual or group assigning the value.

In Lean Office there are two primary uses of the word value:

  1. The value of culture or community
  2. The value of products or services

The value of culture or community represents the worth of maintaining the organization to the individuals that comprise the organization. These values establish a common sense of purpose, direction, and execution; why the organization exists, where it is going, and how is it going to get there.

The value of products or services represents the worth produced by the activities of the organization. The customers of this value can be both internal and external customers of the organization. These values help to sustain the long term viability of the organization.

There is a tendency to establish the overall value of an organization solely by the value of its products or services. Lean Office recognizes that both are important and that the two must be closely aligned and continually enhanced to maximize organizational performance.

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6. How does Lean Office enhance value alignment?

High performance organizations are able to tightly align the values of their culture or community with the values of their products and services. (See Lean Office Values for additional information) As work is performed in high performance organizations the worth of each value set is reinforced and enhanced.

If cultural or community values are not aligned with product and service values, or if the values of each are not commonly shared, business friction increases and the organization will literally be at cross purpose to itself. Decisions seem difficult to make, customers believe you are hard to do business with, employees are de-motivated bureaucratic barriers, etc. Attempting to solve each of these symptoms individually doesn't work. As soon as one symptom is pushed down, another pops up.

Lean Office techniques were developed to address both cultural and community values as well as product and service values and:

  1. Establish shared values throughout the organization
  2. Enhance the activities performed by the organization to maximize those values
  3. Minimize waste or non-value added activities

Performance principles are a Lean Office technique to incorporate cultural and community values into day-to-day decision making. Value stream mapping is a Lean Office technique to define and analyze the product and service values produced by the organization. Implementing waste reduction programs is another Lean Office technique to tackle the other half of the value equation and eliminate non-value added activities.

Aligning performance principles with waste-free value streams establishes clear value priorities and consistent tradeoffs that reduce business friction. In a Lean Office environment, management and employees can 1) clearly identify the shared values and 2) how the activities they perform enhance values of culture and community as well as product and service values.

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