expanding lean into the vertical - ame
TRANSCRIPT
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Expanding Lean into the Vertical
Laurie El-Naggar North America Customer Service Operations
Capability Leader Procter & Gamble
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Procter & Gamble
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P&G Customer Service
Operations
Part of Supply Network Operations
2 Sub-Organizations in North American CSO
Order Management
• Order Acquisition
• Order Processing
• Customer Communication / Care
Accounts Receivable
• Billing
• Receivables
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Shelf
Order Mgt
Accounts Receivable
Ship DC Delivery
CASH
TO
P&G
ORDERS
CSO’s Role in the Supply Chain
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CSO’s Role in Service
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Laurie’s Past Perception
Customer Orders = “Lightning Bolt”
BEFORE
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Laurie’s Current Reality
Customer Orders = VSM with Lots of Waste!!!
AFTER
Customer “B” Order Processing VSM Current State
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What To Do and Where To
Start???
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Lean Is Needed For BOTH…
Cu
sto
me
r Se
rvic
e
Tran
spo
rtat
ion
Dis
trib
uti
on
Ce
nte
rs
Man
ufa
ctu
rin
g Si
tes
Sup
plie
rs
Qu
alit
y O
rgan
izat
ion
Cu
sto
me
r Te
am
Across the “Horizontal”
for Integration and Synchronization
Cu
sto
me
r Sh
elf
In the
“V
ert
ical”
for
Capa
bili
ty a
nd S
tabili
ty
Cu
sto
miz
atio
n
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• Align Leadership – “This is the way we do work”
• Link to Business Strategies and Plans
• Identify Critical Daily Work
• Implement Standard Work for Critical Daily Work
• Involve All Employees
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Leadership Alignment
Tactics
• Look for “Waves to Ride” and a Critical Mass
• Gain Quick Wins “Under the Radar”
• Educate Leaders with Facts from Quick Wins
• Keep It Simple…Start Small and Build
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Link Business Strategies
and Plans to Lean
• Look for specific strategies that seek to:
– Improve customer results
– Solve chronic problems
– Deliver breakthrough results
• Make the connection in action plans: Lean approach to close gap
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Identify Critical Daily Work
• What tells me if we had a good day?
• How do we measure if we had a good day or not?
• Which measures are highest in priority?
• What work processes deliver or enable the most important measures?
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Critical Work = Standard Work
All critical work processes have:
– System Owner
– Single work process as the standard
– Built-in Quality: In process/output measures
– Scorecards
– Visual controls
– Standards management
– PDCA process for improvement
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Total Employee Involvement
• All Employees Trained and Qualified
• Standard Work Methodology
• Continuous Improvement Tools
• Specific skills to execute critical daily work
• All Employees Report and Own Their Daily Results
• “Cascading checks” of critical standard work
• Ownership and problem-solving at the lowest level
• Leadership role: problem-solving coaches
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Strategy Development
& Deployment
Standardization
Organizational Action Plans
Execution
Informal & Formal Checks
Individual Annual Work Plans
CSO Leadership Standard Work
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Strategy Development
& Deployment Corporate Goals and Strategies
Customer Priorities
OP Model Assessment
Standardization Standard Work
Visual Management
Standards Management
Action Plan Development Organization’s Focus Areas
Business Specific Metrics
Execution Skills Development and Qualifications
VSM teams
Kaizen teams
Informal and Formal Checks “Cascading Audits” – Daily Meetings
Monthly Reviews
Quarterly Reviews
Quarterly Work Plan Reviews/Updates Individual Annual Work Plans “My” measurable contribution
“Dynamic Contract “ with Manager
CSO Leadership Standard Work
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IT WORKS…The Results Are
Proof 4 Year Journey Comparison:
• Costs and Headcount – 40%
• Service Level – 35%
• Order Quality Interventions - 21%
• Employee Satisfaction – 15% (benchmark for P&G)
• Customer Service Support – #2 vs Competition
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Lean Is Needed For BOTH…
Cu
sto
me
r Se
rvic
e
Tran
spo
rtat
ion
Dis
trib
uti
on
Ce
nte
rs
Man
ufa
ctu
rin
g Si
tes
Sup
plie
rs
Qu
alit
y O
rgan
izat
ion
Cu
sto
me
r Te
am
Across the “Horizontal”
for Integration and Synchronization
Cu
sto
me
r Sh
elf
In the
“V
ert
ical”
for
Capa
bili
ty a
nd S
tabili
ty
Cu
sto
miz
atio
n
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Expanding Lean
Into the Horizontal
• Modify tools to “learn to see” and collaborate
• Apply PDCA concepts from “the vertical”
• Build capability in all “verticals”
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Synchronization Tool
VSM for the Office • Leverage Applicable Metrics for Information Flow
– Process Time
– Delay Time
– Lead Time
– Complete and Accurate
• Identify and Eliminate Work Flow Problems
• Quantify and Meet Requirements for both End Use and Internal Customers
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REFLECTION
• What specifically exists in your culture today to enable sustained success in delivering your business results? What could be improved?
• How would focus on building a lean culture and capability throughout both “the vertical” and “the horizontal” make a difference in the results you are achieving today?
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QUESTIONS?
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Thank You!
Please complete the session survey at:
www.ame.org/survey
Session: ThP/46
Expanding Lean into the Vertical
Laurie El-Naggar
Procter & Gamble