Amway Lean Office Hdi 2

8/22/2019 Amway Lean Office Hdi 2

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West Michigan HDI

October 10th, 2012

Amways Lean Office Jou


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Agenda Welcome

Jill Bierens Manager, Global IT Service Desk Lean Office Overview

Stephen SweersManager, OPX Lean Office

Amway IT Results

David DrakeLean Leader, IT

Jill Bierens

Daniel Uecker-HermanLead Service Desk Technician

Q&A

Optional Tour: IT Operations, ITAM, Lean Cell


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About Amway Founded in 1959

Second largest direct-selling company in the world Annual sales of more than $10 billion in 2011

More than 450 products

80 countries and territories

20,000 employees

Six million entrepreneurs selling Amway products around More than 900 patents granted and more than 800 pend


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The Heart of Amway


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Amways Global Service D

Metrics

Nearly 6,000 customers in North America and SE Asia Average 13,000 incoming contacts per month (all channels)

Average 5,000 calls per month

Live answer = 85%

First Contact Resolution = 75%

Eight Service Desk Technicians Four User Management Technicians


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Current State

Strategy

Four regions

Follow the Sun Standardized processes

Caller

Ada HQ

6:30am7:30pm 7:0

Amways Global Service D


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Identify and eliminate wasteful process steps in a systematic

More than 60% of the cost of a product or serviceis attributab

administrative processes. Quality and service improve

Turnaround time shortens

Costs go down and profits go up

The customer is ultimately delighted

Resources (people and money) become available to be redepfurther grow the business

WHY LEAN OFFICE?


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KAIZEN DEFINED

Kai

change(revolutionary)

zen

good (sacrifice)

Self

WhippedBack


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Quality:How to improve it?

Cost:How to reduce it? Delivery:How to ensure it?

Talent:How to develop it?

LEAN OFFICE ISSUES


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ELIMINATE WASTE The 8 Wastes

Defects

Over-productionWaiting

Not engaging people

Transportation

Inventories

MotionExcess processing


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ELIMINATE WASTE

Unevenness

Can often be eliminated by managers through level schedu

careful attention to the pace of work.

Overburdening

Workers by requiring them to operate at a higher pace, wit

effort and for a longer period of time than appropriate wor

management allows (target utilization @ 85%).


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Right 1st time Quality Improvement

Delivery/Lead Time/Flow Improvement

Cost/Productivity Improvement

Talent Development

TRUE NORTH METRICS

These are a select few measures, and if you improve them each year,

good things will happen.

George Koenigsaecker


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LEADERSHIP BEHAVIOR

It can and must bSome have it, some do notProblem Solving Skills

People will feel e

receive positive s

problems

People will not accept blame

unless forced to

What are the assumptions about

people?

Call attention to t

assistance, to lea

problem in the fu

Solve the problem on your own if

at all possible

What should the individual who

makes a mistake do?

Management (95The person who makes the

mistake (5% of the time)

Who is responsible?

The System (5The Individual (5 Whos)What is the cause?

A deviation from The result of someone messing upWhat is a problem?

Lean MaTraditional ManagementCritical Questions

It can and must bSome have it, some do notProblem Solving Skills

People will feel e

receive positive s

problems

People will not accept blame

unless forced to

What are the assumptions about

people?

Call attention to t

assistance, to lea

problem in the fu

Solve the problem on your own if

at all possible

What should the individual who

makes a mistake do?

Management (95The person who makes the

mistake (5% of the time)

Who is responsible?

The System (5The Individual (5 Whos)What is the cause?

A deviation from The result of someone messing upWhat is a problem?

Lean MaTraditional ManagementCritical Questions


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THOUGHT-PROVOKING QUESTIONS To what extent are your Functions goals linked to Enterprise Goals? Can you identify all of your Functions intern

Do you know all of the products and/or services your Function provides

its customers?

Do you know your customers requirements

and/or services?

Do you measure Functional performance on the basis of how well yourproducts and/or services meet your customers requirements?

Can you identify your Functions internal and

Do you establish clear goals for the products and services provided to

your Function by your suppliers?

Do you have documentation of your Functio

value streams to which it contributes?

Do you measure your Function on the degree to which it contributes to

cross-functional value streams?

Do you measure the upstream performanc

through your Function?

Do you have tracking and feedback systems that effectively and efficiently

gather performance information and provide it to the people who need

it?

Do you have the skills to troubleshoot (remo

performance gaps in your systems?

Do you spend a large percentage of your time working to improve the

interfaces between your Function and other Functions and between sub-

units within your Function?

Do employees in your Function work in an en

design, job goals, feedback, rewards, resourc

to make their maximum contributions to pro

effectiveness?


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Factors for success:

Clear Business Case

Leadership Endorsement Clear Roles & Responsibilities

Dedicated Internal Resources

Structured, Systematic Method

Simple, True North Metrics

Frequent Reviews

SUCCESS FACTORS

DEPLOYMENT MODEL: PHASE 1


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What: Improve Internal Process Workflows and Reliability

Standardize Work Processes

Improve Process Throughput Time

Reduce Clerical Errors (implement mistake-proofing techniques)

Establish Lean Plans

Where: Transactional Business Processes (ex: Idea-to-Market, Procure-to

Key Functional Areas (ex: Planning, Procurement, QA, R&D, IT, Sa

Impact on: Throughput Time Variation (Operational Lead Time Improveme

Right 1st Time Quality Improvement

DEPLOYMENT MODEL: PHASE 1

STABILITY


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LEAN OFFICE SPECIALIZATION: INS

Specialized work No level loading

Work duplication

No realization of w

OFFICE EMPLOYEES SPECIALIZATION

Breadth of Knowledge

Employees typically retain 80% of tknowledge.


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LEAN OFFICE SPECIALIZATION: STA Multi-Skilled

Multi-Process Handling

Level loaded @ 85% of

OFFICE EMPLOYEES GENERALIST

Shared Knowledge

Skills/Training Matrix


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LEAN LEADER STANDARD WORK

Assess efficiency of Functional & Cross-Functional business processes.

Develop Functional Lean Plans aligned with Enterprise Strategy.

Enable improvement by providing kaizen breakthrough method & sup

Create expectation for annual improvement in: Right 1stTime Quality

Productivity (Cost)

Delivery (Lead Time)

Talent

Encourage active sharing & adoption of best practices.


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1. What are the top 2 or 3 most costly outputs (products or services) you

makes and delivers to your customers? Or, what causes you the mostp

Brainstorm!

2. Select one output (product or service for your customer), assemble a t

together explore using the SIPOC Tool (Supplier/Input/Process/Output

3. Plan your 3-5 Day Kaizen Event using your completed SIPOC as a guide

want to include the voices of suppliers, processors, customers and out

well).

4. Execute the Kaizen Breakthrough Method. again, again and again (5X

GETTING STARTED: ACTIVITY


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SIPOCSupplier Inputs

(Requirements)

Process

(Transformational, Value-Creating Steps)

Outputs

(Requirements

Meijer

Kitchen

36 Minutes Total Time

2 ea Eggs

Cup Water

Cup Vegetable Oil

8 X 8 Pan

Shortening or CookingSpray

Large Mixing Bowl

Wire Whip or LargeSpoon

Electric or Gas Ovencapable of reaching 350F

Cooling Rack

Knife

Spatula

Serving Plate

PREHEAT: oven to 350F for glass ormetal pans, 325F for dark or non-stick

pans.

GREASE: bottom of pan with shortening

or cooking spray.

MIX: empty brownie mix, eggs, oil and

water in large bowl.

STIR: until well-blended (about 50

strokes). SPREAD: in greased pan and bake

immediately.

BAKE: following times listed per pan

size (ex: 8 X 8: 42-45 Minutes. Add 3-

5 minutes for dark or non-stick pans.

DONE: when inserted toothpick 1 from

edge of pan comes out clean.

COOL: completely in pan before cuttingand serving.

2 X 2 FudgyBrownie

Warm & Gooe

Served on 6Serving Plate


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1. Pre-Event

Planning

1. Event

Execution

1. Post-EventMonitoring

Kaizen Sponsor Secured?

Kaizen Team Leader assigned?

Kaizen Target Area Selected/Scoped?

Kaizen Dates & Times Scheduled?

Kaizen Team Room Scheduled?

Kaizen Team Members Assembled

(Rule of 1/3s, SIPOC)

Kaizen Supplies Collected?

Kaizen Pre-Work/Data Collected?

Catering Scheduled?

Kaizen Training Material Prepared?

Management Report-Out Scheduled?

Kaizen Team

Established

Current Sta

Opportunit

Future Stat

New Proces

Manageme

Delivered.

Adhere to t

to Improve

Improveme

Visual Controls are in place, Maintained &

Continuously Improved.

Standard Work Audits are Conducted, Economic

Benefits calculated & Results Communicated.

Weekly Kaizen Newspaper Accountability

Meetings Conducted.

KAIZEN BREAKTHROUGH METHOD

KAIZEN BREAKTHROUGH METHOD:


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KAIZEN BREAKTHROUGH METHOD:RESULTS

(2 Days)

Current State Process (7 Days)

Kaizen

WASTE

7 Days

V/C

10

Mins

WAITING

2 Days

Value-Creating

Work

Waste


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Lean IT: Impact on Amway

Service Desk

Data Center

IT Asset Management

Operations

Voice Telecom

Release management

Application Development


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Service Desk Corporate data stores

Average of 100 requests per month

Original process plagued with excessive active and wait tim

Active time reduced from 45 minutes to 15 minutes

SME provides clear direction on users needs

Process to be leveraged globally


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Service Desk Granting Remote Access

Focused on providing correct access without hand-offs

Ensuring we meet PCI compliance requirements

Decision tree developed and training provided for SD staff

Standard work reduces training time

Returned capacity = 1,400* hours (Jan-Aug 2012)* Includes time savings in IT Security and Network Services


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What Have We Learned? New concept to IT

Lean is traditionally associated with manufacturing

Many of the things we do have a production flow to them Balance between focusing on results vs. learning

Staff hesitation to act without management directio Empowerment is critical

Innovation, learn by doing

Quantified improvements vs. observed improvemen


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What Have YOULearned?

QUESTIONS


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QUESTIONS

T


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Tours

Service Desk

IT Operations

PC Lifecycle Lean Cell

Please gather in the lobby

David will be your guide

Amway Lean Office Hdi 2

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