Lean Service
Lean in a service organisation is not the same as in manufacturing.
Stable flow to the "pull" of the customer is a key principle of lean. In manufacturing, stability is achieved through standardisation and level scheduling. In services, customer demand can rarely be "scheduled", but must be managed as the customer requires – that adds customer value.
In services value is created by responding differently to the varied needs of different customers. There is rarely a standardised "product" that can be delivered to the customer: instead the "service" varies with the needs of the customer to create value.
Thus, in lean services, customer value is not served by standardisation (though some elements of the process may be subject to standard work for consistency and efficiency): instead a highly skilled and versatile workforce is the key to optimising value by managing variety, and delivering lean improvement.
Five Step Approach to Lean Service Improvement
Each service is different, but, in general terms, we use a five stage approach to lean service:
- Define the purpose and parameters of the service. Set strategic objectives;
- Identify and map the Value Streams that make up the service. Link Value Stream measures to the strategic objectives;
- Analyse the variations in customer demand and in service performance;
- Measure the flow through the Value Streams, and identify the waste. Simulate the service process if necessary;
- Work with the Value Stream team to remove the waste, eliminate rework, create pull, and improve the process.
Lean Service is not about making people work harder or faster, it is about identifying and removing the waste from the process. How long does it take a service order, or service delivery, to be completed ? And how much of that time is spent on actual work? In many service organisations, the actual time spent working on the service is 25% or less of the total process time (flow time).
Please contact us for more information on our approach to lean service.