Monday, June 25, 2012

Lean Thinking - Customer Pull Value

We are continuing into the fourth step of our Lean Office transformation journey by linking customer demand to our start signal.




4. As flow is introduced, let customers pull value from the next upstream activity.






Let's look where the Lean Journey has taken us so far. We have chosen one of the information products we create, map out how it flows, identified and eliminated the waste and variation in the flow, and now moving toward a predictable and repeatable process.  A method to help control quality, inventory costs, and throughput is to link input of work to customer demand, or a concept called one-piece flow.

One-piece flow is movement through the system, of the things we create, one at a time as opposed to moving in batches. Batch production is a concept from mass production where products move through the system with lots of friends. One-piece flow is cheaper because there is less Work-In-Process (WIP) in the system and WIP can represent the dollar value of labor and material used in the things we create.

This reduction in WIP also creates the ability for us to see problems in the flow.  Problems like to hide behind massive amounts of material, old processes that don't work, teams that feel trapped and have no hope, and metrics that don't tell us the real story.  Reduce the waste and variation and you will reduce the time from order to deliver.

Linking to customer demand requires a signal to start.  We don't create reports and analysis without that delivery being linked to a customer.  This signal may be on a visual management board, a work flow control system, or the boss drops a thick file on your desk.

Visual management is a method that helps us see what work is where, what is the priority, where are there problems, or if we're winning.  The concept of level loading can be applied here with the team and point to areas in the process flow that may need help.  While you are evaluating your condition, think about how extensive you are setup in little kingdoms or rice bowls and remember the examples of transportation and motion wastes.

The books "Learning to See" and "Seeing the Whole" are spot on with methods to think strategically about seeing flow and ability to see the representation of the relationship with us, our suppliers, and our customers.

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