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Lean Study 2008 Nordic service industry - Cordial

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<strong>Lean</strong> <strong>Study</strong> <strong>2008</strong><br />

<strong>Nordic</strong> <strong>service</strong> <strong>industry</strong><br />

By <strong>Cordial</strong> Business Advisers<br />

Stockholm, September <strong>2008</strong>


1<br />

About <strong>Cordial</strong> <strong>Lean</strong> study <strong>2008</strong> A selection of participating companies<br />

• This <strong>Lean</strong> study was carried out during April – July <strong>2008</strong><br />

targeting different industries within the <strong>service</strong> sector and<br />

<strong>service</strong> related processes at manufacturing companies, e.g.<br />

procurement, sales and business development units.<br />

� The study aims to get a “pulse check” regarding state-of-theart<br />

development of <strong>Lean</strong> at selected <strong>service</strong> companies in<br />

the <strong>Nordic</strong> and Japan.<br />

� The study y is based on 44 interviews with key yppersons<br />

at the<br />

companies, e.g. business developers, process owners, Vice<br />

Presidents, <strong>Lean</strong> Managers etc.<br />

Key findings<br />

• 79% of the companies p working g with <strong>Lean</strong> said to have achieved bottom line results, , compared p to 47% of the companies p working g<br />

with other continuous process improvements.<br />

• 53% of the companies currently not working with <strong>Lean</strong> are planning to implement <strong>Lean</strong> in the future.<br />

• <strong>Lean</strong> is regarded as a mean to achieve cost efficiency and customer satisfaction.<br />

• <strong>Lean</strong> is a well recognized concept in the <strong>Nordic</strong> Service <strong>industry</strong>: 95% are familiar with <strong>Lean</strong> as a concept.<br />

• Various <strong>Lean</strong> tools are used when working with <strong>Lean</strong>, 5 S and Value Stream Mapping being the most common tools.<br />

• Main challenges when working with <strong>Lean</strong> incorporate having the right leadership, creating a sustainable employee commitment,<br />

having the right communication, establishing clear work process, roles & a toolbox as well as linking the bottom line effect to the<br />

<strong>Lean</strong> work.<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

<strong>2008</strong>-05-08 Projektnamn och konsult Fil: filnamn.ppt


2<br />

Table of contents<br />

�� About the study<br />

� A few words about <strong>Lean</strong><br />

� Results of the <strong>Lean</strong> study y <strong>2008</strong><br />

� Conclusions and reflections<br />

� Contact information<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


3<br />

Background and purpose of <strong>Cordial</strong>’s <strong>Lean</strong><br />

<strong>Study</strong> <strong>2008</strong><br />

� <strong>Lean</strong> is one of the most far-reaching management philosophies when it comes to process<br />

improvement. The manufacturing <strong>industry</strong> has for a long time been the pioneering <strong>industry</strong> in<br />

which <strong>Lean</strong> has been developed and successfully implemented.<br />

BBackground k d<br />

� In recent years <strong>Lean</strong> has made the leap to the <strong>service</strong> <strong>industry</strong>. In order to support our<br />

Purpose<br />

Definition of<br />

<strong>Lean</strong> in this<br />

study<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

customers in further developing their businesses, we wish to gain an understanding of the<br />

status of <strong>Lean</strong> programs and the relation to other process improvement initiatives at <strong>Nordic</strong><br />

<strong>service</strong> companies.<br />

� To perform a “pulse check” regarding state-of-the-art development of <strong>Lean</strong> in selected<br />

<strong>service</strong> i companies i iin N<strong>Nordic</strong> di and d JJapan tto get t an understanding d t di of f how h these th companies i<br />

work with process improvements<br />

� Pinpoint overall trends, challenges and success factors for companies working with <strong>Lean</strong><br />

� Continuous process improvement work based on <strong>Lean</strong> principles or <strong>Lean</strong> inspired methods


4<br />

The study includes a wide range of industries in the<br />

<strong>Nordic</strong> <strong>service</strong> sector…<br />

11%<br />

7%<br />

7%<br />

5%<br />

7%<br />

7%<br />

7%<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

9%<br />

15%<br />

11%<br />

14%<br />

Healthcare<br />

Telecom & Media<br />

Retail<br />

Public organizations<br />

IT Consulting<br />

Transport p & Logistics g<br />

Manufacturing<br />

Construction<br />

Banking<br />

Energy egy<br />

Hospitality & travel<br />

Total: 44 companies p<br />

Comments:<br />

44 interviews with key persons of <strong>Nordic</strong> companies have been conducted<br />

�� Focus lies on the <strong>service</strong> sector<br />

and <strong>service</strong> related processes at<br />

manufacturing companies, e.g.<br />

procurement, sales and<br />

business development units<br />

� The interviewed companies<br />

represent 11 different <strong>industry</strong><br />

segments<br />

� At each company, <strong>Cordial</strong> has<br />

interviewed key persons persons, ee.g. g<br />

business developers, process<br />

owners, vice presidents, <strong>Lean</strong><br />

Managers etc.


5<br />

… and interviews have been conducted with some<br />

major players in each segment<br />

Healthcare Retail Banking<br />

Telecom & Media Transport & Logistics Other<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


6<br />

Table of contents<br />

�� About the study<br />

� A few words about <strong>Lean</strong><br />

� Results of the <strong>Lean</strong> study y <strong>2008</strong><br />

� Conclusions and reflections<br />

� Contact information<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


7<br />

What is <strong>Lean</strong> all about?<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

<strong>Lean</strong> is about optimizing a company’s processes and working<br />

methods by counteracting waste, focusing on the value-adding<br />

activities ti iti and d creating ti a culture lt characterized h t i d bby continuous ti<br />

improvements.


8<br />

<strong>Lean</strong>’s basic principles – <strong>Lean</strong> Thinking<br />

Place the customer as<br />

number 1<br />

Remove obstacles<br />

Competence & mandate<br />

Source: <strong>Cordial</strong> research<br />

Involvement<br />

Eliminate waste!!!<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

• Al Always ddoing i or making ki th the choices h i th that t are bbest t ffor<br />

the customer<br />

• Remove all obstacles that are preventing the customer to<br />

get what they want.<br />

• Make sure that all employees have the relevant skills and<br />

competence which makes it possible to meet the<br />

customer’s expectations.<br />

• Leaders involve their co-workers in the decisions that<br />

affect their work and coach them on a daily basis.<br />

• Always be on the look out for waste and when the<br />

waste is discovered it must be eliminated.


9<br />

Where is <strong>Lean</strong> applicable in the <strong>service</strong> <strong>industry</strong>?<br />

� <strong>Lean</strong> can be used to improve people and information intensive<br />

processes such as:<br />

• Sales processes<br />

• Service (delivery) process<br />

• After-sales / customer support pp pprocesses<br />

• Front-office processes (meeting customers)<br />

• Administrative processes<br />

• IT processes p<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

Example: Visualization of the workflow<br />

at a Japanese fabrics manufacturer in<br />

Kansai 2005


10<br />

The 7+1 wastes: the manufacturing <strong>industry</strong><br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

Overproduction<br />

Manufacturing<br />

To manufacture more or earlier than necessary<br />

Waiting To wait for something to happen<br />

Stock To keep larger stock than necessary<br />

Motion<br />

Re-work<br />

Overwork<br />

Transports<br />

Th The unexploited l i d<br />

creativity of the staff<br />

UUnnecessary movements t and d actions ti which hi h are<br />

performed in order to fulfill a task<br />

Repairs and re-work which do not<br />

add value to the customers<br />

To do more work than the customer requires<br />

Unnecessary transports<br />

This was not part of the original wastes,<br />

but has been added as the eight waste


11<br />

The 7+1 wastes in the <strong>service</strong> <strong>industry</strong> - examples<br />

Overproduction p<br />

Waiting<br />

Stock<br />

People<br />

Performing a task that a colleague is going to<br />

perform anyhow<br />

Waiting for answers from customers, partners or for<br />

a decision to be taken by management<br />

Hiring more employees than there is occupation for<br />

MMotion ti Educating new people when senior people leave<br />

Re-work<br />

Overwork<br />

Transports<br />

The unexploited<br />

creativity of the staff<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

Constantly recapitulating results from the last<br />

meeting if too much time has elapsed between from<br />

the previous one<br />

Information<br />

Producing too much information related to a given<br />

purpose<br />

Waiting to receive important information<br />

Scattered information which is stored in different<br />

locations but which is not compiled for optimal use<br />

Sending documentation physically instead of using<br />

digital formats<br />

Discarding already collected information and<br />

compiling new information if needs have changed<br />

Over-working delivery to a new customer Performing too much research for a given objective<br />

Traveling to different meetings instead of e.g. using<br />

telephone conferences<br />

Unexploited knowledge among the staff as for<br />

instance language g g skills, , earlier experience, p ,<br />

academic records<br />

Information transport through long office turnaround<br />

time, several authorization levels etc<br />

Unexploited information of already performed<br />

studies studies, earlier experience experience, reuse of ideas etc


12<br />

There is currently a large interest for <strong>Lean</strong> Services<br />

”<strong>Lean</strong> Management”<br />

735 000<br />

Source: www.google.com [<strong>2008</strong>-09-03]<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

”<strong>Lean</strong>” <strong>Lean</strong><br />

65 million hits<br />

”<strong>Lean</strong> Services”<br />

17 200 000<br />

”<strong>Lean</strong><br />

Manufacturing”<br />

2 800 000<br />

• Toyota received 600 000<br />

suggestions for improvement<br />

during 2006 from their<br />

employees. 91 per cent of these<br />

were implemented.<br />

• How many suggested<br />

improvements has your<br />

company implemented?


13<br />

<strong>Lean</strong> is also a hot topic in the business press<br />

Financial<br />

Times*<br />

� 1022 articles<br />

Harvard<br />

Business<br />

Review**<br />

* Archive search Jan 1st 2003 and onwards<br />

** Complete online publications about <strong>Lean</strong><br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

<strong>Lean</strong> Management <strong>Lean</strong> Production<br />

<strong>Lean</strong> Services<br />

� 1022 articles �� 626 articles<br />

�� 1023 articles<br />

� 286 FT comment &<br />

analysis<br />

� 122 FT comment &<br />

analysis<br />

<strong>Lean</strong> Management <strong>Lean</strong> Production<br />

� 263 FT comment &<br />

analysis<br />

<strong>Lean</strong> Services<br />

� 186 articles � 113 articles � 188 articles


14<br />

Table of contents<br />

�� About the study<br />

� A few words about <strong>Lean</strong><br />

� Results of the <strong>Lean</strong> study y <strong>2008</strong><br />

� Conclusions and reflections<br />

� Contact information<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


15<br />

<strong>Lean</strong> is a well recognized concept in the <strong>Nordic</strong><br />

Service <strong>industry</strong><br />

Comments<br />

Are you y familiar with the concept p of <strong>Lean</strong>? �� Most of the respondents are<br />

familiar of the <strong>Lean</strong> origin from<br />

5%<br />

the manufacturing <strong>industry</strong> and<br />

Toyota<br />

� The curiousness for <strong>Lean</strong><br />

<strong>service</strong>s is high in general<br />

among the respondents<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

95%<br />

Yes<br />

No<br />

Total: 44 companies p<br />

95% are familiar with <strong>Lean</strong> as a concept<br />

Quotations from interviews:<br />

“II have heard about The Toyota<br />

way and <strong>Lean</strong> in the manufacturing<br />

<strong>industry</strong> sector”<br />

“I’m familiar with the concept and it<br />

is exciting to see what results it can<br />

bring”


16<br />

<strong>Lean</strong> is used by 65% of the companies working with<br />

continuous process improvements<br />

Do you feel that your processes are optimized today or do<br />

you y work with continuous process p improvements?<br />

p<br />

2%<br />

Comments<br />

98%<br />

Continuous process improvement<br />

Optimized p pprocesses<br />

Do you currently work with continuous process improvements<br />

based on <strong>Lean</strong> principles? p p<br />

� Nearly all companies (98%) claim to work with continuous improvements (not always expressed as <strong>Lean</strong>)<br />

�� A majority (65%) work with continuous process improvements based on <strong>Lean</strong> principles/methods<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

Total: 44 companies<br />

35%<br />

65%<br />

Total: 43 companies<br />

Yes<br />

No


17<br />

<strong>Lean</strong> is also of high interest for companies currently not<br />

working with <strong>Lean</strong> methods<br />

Are you y planning p g to work with <strong>Lean</strong> in the future?<br />

47%<br />

Comments<br />

�� OOut t of the 15 companies (35%)<br />

that doesn’t work with <strong>Lean</strong>,<br />

53% plan to start work with <strong>Lean</strong><br />

in the future<br />

Quotations from interviews:<br />

Yes<br />

”We will definitely work with<br />

something <strong>Lean</strong>-inspired in the future”<br />

Plats för diagram eller tabell<br />

53% No<br />

“It It is an interesting method and we<br />

will definitely evaluate it later on”<br />

“We will start working with <strong>Lean</strong> next<br />

year. We are currently working with<br />

an extensive overview of our<br />

processes”<br />

Total: 15 companies* p<br />

53% of the companies not currently working expressed with <strong>Lean</strong> are planning to implement <strong>Lean</strong> in the<br />

future<br />

* 15 companies doesn’t work with <strong>Lean</strong> principles today<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


18<br />

<strong>Lean</strong> puts a greater emphasis on customer focus as<br />

opposed to other continuous improvement initiatives<br />

What’s the main reason(-s) for your <strong>Lean</strong> work?*<br />

16%<br />

0%<br />

0%<br />

Comments<br />

12%<br />

42%<br />

30%<br />

Cost efficiency<br />

Increased cust omer ffocus ocus<br />

St rong compet it ion<br />

Qualit y<br />

All of t he above<br />

OOt<br />

her<br />

16%<br />

� Main reason for the <strong>Lean</strong> work is increased customer focus (42%)<br />

and continuous process improvements concentrates mainly on cut<br />

costs<br />

� Other reasons include: increased productivity, reduced waste,<br />

engage workers etc.<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

8%<br />

What’s the main reason(-s) for your continuous process<br />

improvements work?<br />

12% 32%<br />

12%<br />

20%<br />

Cost ef f iciency<br />

Incr eased customer f ocus<br />

Str ong competi ti on<br />

Quality<br />

Al l of the above<br />

Other<br />

Quotations from interviews:<br />

“Everything we do aims to increase customer focus”<br />

“Management is pushing hard on costs, but for me<br />

customer focus is most important important”


19<br />

Bottom line results can be achieved through general<br />

continuous process improvement work…<br />

Have you y achieved bottom line effects due to yyour work with continuous pprocess<br />

improvements?<br />

Comments<br />

�� Cost efficiency and increased<br />

revenues are some examples of<br />

19%<br />

success gained through using<br />

continuous process<br />

Yes<br />

improvements work<br />

Don't know , don't<br />

14% measure<br />

67%<br />

No<br />

Total: 43 companies*<br />

Quotations from interviews:<br />

”Increased revenues thanks to<br />

<strong>Lean</strong>!”<br />

”Cut costs have resulted in<br />

increased profitability”<br />

”We have achieved better managed<br />

costs as well as cost efficiency”<br />

“We have reduced waiting-time in<br />

our emergency room which leads to<br />

reduced costs”<br />

67% have achieved bottom line results from their work with continuous process improvements<br />

* One company does not work with continuous improvements<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


20<br />

…but it’s more likely to achieve bottom line results working<br />

with <strong>Lean</strong>!<br />

Bottom line results achieved by <strong>Lean</strong> Bottom line results achieved by general process<br />

improvements work (a part from <strong>Lean</strong>)<br />

0%<br />

21%<br />

Comments<br />

79%<br />

Yes<br />

No<br />

Don't know/don't measure<br />

53%<br />

� Among the 29 companies working with <strong>Lean</strong>, 79% have seen bottom line results<br />

0%<br />

47%<br />

Yes<br />

No<br />

Don't know/ don't measure<br />

• Out of the 21% who hasn’t seen bottom line results, some have not yet started to measure and some don’t measure fiscal<br />

results<br />

� Among the companies working with general continuous process improvements only 47% achieved bottom line results<br />

79% of the companies working expressed with <strong>Lean</strong> achieved bottom line results compared to 47%<br />

working ki with ith ordinary di continuous ti process improvement i t workk<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


21<br />

Employees are overall positive towards the implementation<br />

of continuous process improvements<br />

Comments<br />

How does your y employees p y react to continuous pprocess improvements?* p<br />

�� A vast majority, 84%, claims that<br />

the continuous process<br />

improvement work has been<br />

positively received by the<br />

employees<br />

�� SSome companies i hhave received i d<br />

84%<br />

*<br />

both reactions<br />

Quotations from interviews:<br />

”If the workers are part of the<br />

process change and have the ability<br />

2%<br />

Positively<br />

to influence it, the change is received<br />

much better”<br />

Negatively ”Initially we get a negative reaction<br />

14%<br />

Mixed<br />

but when the employees p y see that the<br />

change works the reactions turn<br />

positive”<br />

”How the process change is received<br />

Total: 43 companies** p<br />

depends on what kind of change it<br />

is” is<br />

84 % believe that their employees are positive towards continuous process improvement work<br />

* Only key persons have been interviewed except from 7 companies where in depth interviews have been made with employees<br />

** One company does not work with continuous improvements<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


22<br />

Greater involvement of employees in <strong>Lean</strong> initiatives<br />

How does your organization seek improvement of processes?<br />

Companies working with <strong>Lean</strong> Companies working with general process<br />

improvements<br />

39% Employee driven<br />

Comments<br />

11%<br />

50%<br />

Management driven<br />

Both<br />

� “Management-only”-driven improvement work is less common<br />

among companies working with <strong>Lean</strong><br />

�� It is common for the management to setup guidelines but the<br />

employees execute and optimize specific processes<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

33%<br />

20%<br />

47%<br />

Fråga Linda B!!<br />

Checka titel!!!<br />

Employee driven<br />

Management driven<br />

Both<br />

Quotes from interviews:<br />

“The decision to work with <strong>Lean</strong> came from management but<br />

the “pull” from employees keep on increasing”<br />

“Each Each employee can make a suggestion directly to a process<br />

owner who evaluate and decide on what to do”


23<br />

Process improvement work is more prioritized by<br />

Management in companies working with <strong>Lean</strong><br />

How is the work with continuous process improvements prioritized on the management’s agenda?<br />

Priority on the Management agenda in<br />

Priority on the Management agenda with general process<br />

companies working with <strong>Lean</strong><br />

Improvements<br />

Comments<br />

10 %<br />

3%<br />

87%<br />

� A vast majority consider their continuous process<br />

improvement work as a top issue by management<br />

�� Only 3% consider the work with <strong>Lean</strong> as a low priority by<br />

Management compared to 20% in companies working with<br />

general process improvements<br />

20%<br />

High<br />

High<br />

Average<br />

Average<br />

Low<br />

Low<br />

53% 3%<br />

27%<br />

Quotations from interviews:<br />

”Without the strong commitment from the management it<br />

wouldn't been possible to launch <strong>Lean</strong> so widely”<br />

”<strong>Lean</strong> is a top priority by our management management, it is a critical<br />

success factor”<br />

87% consider their continuous process improvement work to be highly prioritized by management in<br />

<strong>Lean</strong> companies compared to 53% in companies working with general process improvements<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


24<br />

There is an equal share in how companies choose to<br />

implement their <strong>Lean</strong> work…<br />

How extensive is your y <strong>Lean</strong> work?<br />

Comments<br />

�� The most common processes to<br />

48%<br />

52%<br />

start with are core processes,<br />

product & <strong>service</strong> development<br />

and administrative processes<br />

Selected processes<br />

Plats för diagram eller Whole tabell organization g<br />

Total: 29 companies* p<br />

Quotations from interviews:<br />

”We’ve used pilots so far but have<br />

a very good impression and our<br />

ambition is to take it to the whole<br />

organization”<br />

”We’ve started with <strong>Lean</strong> in our<br />

emergency rooms and now we will<br />

expand to other departments as<br />

well”<br />

… but many plan to expand their process improvement work to other units/the entire organization<br />

utilizing the “power of successes”<br />

* 29 companies work with <strong>Lean</strong><br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


25<br />

5S and VSM are the most common tools for<br />

companies working with <strong>Lean</strong><br />

Do you y follow a given g method within yyour pprocess improvement p work? If y yes, , which one?<br />

Comments<br />

�� More than 60% are using <strong>Lean</strong><br />

tools<br />

64%<br />

• Value Stream Mapping<br />

(VSM) & 5S are the most<br />

11<br />

5S<br />

VSM<br />

Standards<br />

common tools<br />

� DMAIC is the most common tool<br />

when working with Six Sigma<br />

9<br />

Plats för diagram eller tabell Whiteboard meetings g Quotations from interviews:<br />

4<br />

2<br />

9<br />

28%<br />

5<br />

8%<br />

3<br />

Other<br />

DMAIC<br />

Other<br />

”We use a combination of both<br />

methods, we choose what fits our<br />

organization best”<br />

”The two systems (<strong>Lean</strong>, Six<br />

Si Sigma) ) complement l t each h other th<br />

well”<br />

”We have our own methods based<br />

<strong>Lean</strong> Tools Six Sigma Other<br />

Total: 43 responses* responses<br />

on the more traditional <strong>Lean</strong> tools”<br />

Number of o responsess<br />

64 % of the companies working with a given method in their process improvement work choose <strong>Lean</strong><br />

basic tools<br />

* Not all companies work with <strong>Lean</strong>, possible to chose multiple alternatives for the ones who did reply on this question<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


26<br />

There are challenges and success factors to consider when<br />

working with the implementation of <strong>Lean</strong><br />

CHALLENGES SUCCESS FACTORS<br />

Having the right leadership<br />

� To have a coaching leadership that makes room for a <strong>Lean</strong><br />

culture to grow as well as creating a leadership characterized<br />

by trust toward the employees.<br />

Achieving a sustainable organisational commitment<br />

� To break down the process’ KPI to an individual level.<br />

� Invest in long-term employee development<br />

Having the right communication<br />

� To communicate early and in the right way to both direct and<br />

indirect involved stakeholders.<br />

Establishing clear work process process, roles & a toolbox<br />

� To establish proper structure (roles, responsibilities and<br />

mandate) before, during and after the <strong>Lean</strong> implementation in<br />

order to achieve permanent effects.<br />

� To know which tools to use and how to apply them effectively<br />

in the work process<br />

Linking the bottom line effect to the <strong>Lean</strong> work<br />

� To be able to link the process KPIs to the bottom line effect<br />

resulting from the <strong>Lean</strong> work.<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

100% management attention & commitment<br />

� Management needs to understand, support and believe in<br />

<strong>Lean</strong> for successful implementation.<br />

Keeping the employees motivated<br />

� Share success stories, good impressions and experiences<br />

from customer meetings with the rest of the organization.<br />

To answer “What’s in it for me?<br />

Ed Education ti & training t i i<br />

� Continuously train and educate during the implementation<br />

and tailor it for every phase of the implementation.<br />

Communication Strategy gy & Plan<br />

� A well thought-through communication plan (top-down<br />

approach), connected to a stakeholder analysis, will<br />

minimize resistance and maximize acceptance within the<br />

organization.<br />

Let the customers be one of the driving forces<br />

� Continuous improvements should not be driven by<br />

customer complaints but rather by a understanding of<br />

customer needs.


27<br />

Summary of results from the <strong>Lean</strong> study <strong>2008</strong> (1/2)<br />

There is<br />

currently a<br />

large interest<br />

for <strong>Lean</strong><br />

Services<br />

� <strong>Lean</strong> is a well recognized concept in the <strong>Nordic</strong> Service <strong>industry</strong><br />

• 95% are familiar with <strong>Lean</strong> as a concept<br />

� There is currently a high interest in <strong>Lean</strong> Services in the <strong>Nordic</strong> <strong>service</strong> sector<br />

• 65% of the companies working with continuous process improvements are using<br />

<strong>Lean</strong> principles<br />

�� <strong>Lean</strong> is also an up up-and-coming and coming opportunity for companies currently not working with <strong>Lean</strong><br />

methods<br />

• 53% of the companies not currently working with <strong>Lean</strong> are planning to implement<br />

<strong>Lean</strong> in the future<br />

� <strong>Lean</strong> puts a greater emphasize on customer focus opposed to general process<br />

improvements<br />

� General continuous process improvements is foremost used for cost efficiency<br />

The <strong>Lean</strong> work<br />

� It’s more likely to achieve bottom line results working with <strong>Lean</strong><br />

often show<br />

• 79% of the companies working with <strong>Lean</strong> achieved bottom line results compared to<br />

great t results lt 47% working orking with ith general process impro improvement ement work ork (not <strong>Lean</strong>)<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


28<br />

Summary of results from the <strong>Lean</strong> study <strong>2008</strong> (2/2)<br />

Employees are<br />

frequently<br />

involved in the<br />

<strong>Lean</strong> work and<br />

the priority on<br />

th the<br />

Management<br />

Agenda is high<br />

VSM and 5S are<br />

the most<br />

commonly<br />

used dL <strong>Lean</strong><br />

tools<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

� Process improvements are mainly suggested by employees in a <strong>Lean</strong><br />

environment<br />

• “M “Management-only” t l ” ddriven i approach h iis lless common iin L<strong>Lean</strong><br />

cases.<br />

� Process improvement work is higher prioritized by Management in companies working<br />

with <strong>Lean</strong><br />

• 87% consider their continuous process improvement work to be highly prioritized by<br />

management in <strong>Lean</strong> companies compared to 53% in companies working with<br />

general process improvements<br />

� 64% of the companies working with continuous process improvement use methods<br />

commonly y recognized g as <strong>Lean</strong> tools<br />

�5S and VSM are the most common tools<br />

� 28 % of the companies use SixSigma method


29<br />

Quotations from the interviews (1/2)<br />

Working with <strong>Lean</strong><br />

made it possible p to<br />

expand without<br />

taking on new staff<br />

Healthcare<br />

Revolutionary results!<br />

Healthcare<br />

We’ve seen a prominent<br />

improvement in<br />

productivity as a result of<br />

<strong>Lean</strong><br />

T t & L i ti<br />

The management has<br />

to work in it themselves<br />

to fully understand what<br />

<strong>Lean</strong> is about in reality<br />

Retail<br />

Management has their<br />

own result board for their<br />

<strong>Lean</strong> work<br />

Energy<br />

At the same time as the costs<br />

have been reduced, the quality<br />

has increased<br />

Telecom & Media<br />

Our productivity has increased with<br />

5-10% per year and during the<br />

same time the complaints have<br />

Transport & Logistics diminished<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

We’ve We ve managed to<br />

attract contracts thanks<br />

to our <strong>Lean</strong>-thinking<br />

IT & Consulting<br />

Retail<br />

The easier it is to see concrete<br />

results, the higher g interest in<br />

the organization<br />

Transport & Logistics<br />

A critical success factor is<br />

the interest and high priority<br />

from management<br />

IT & Consulting<br />

Dramatic cut in costs<br />

and increased<br />

control at the same<br />

Retail<br />

As long as the staff can be part of<br />

the planning of a change they are<br />

satisfied when it arrives<br />

Manufacturing


30<br />

Quotations from the interviews (2/2)<br />

Quotations on employee level Quotations on PL and Top Management level<br />

I was stripped of<br />

my responsibility<br />

when the <strong>Lean</strong><br />

implementation<br />

started<br />

WWorking ki with ith L<strong>Lean</strong><br />

has given us a<br />

new mindset even<br />

in other areas<br />

The success<br />

of <strong>Lean</strong><br />

ddepends d<br />

75% on the<br />

leadership<br />

and 25% on<br />

the project<br />

lleaders d<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

Th The project j t lleaders d<br />

must possess<br />

empathy and<br />

experience<br />

We have to find<br />

time outside regular<br />

working hours<br />

(evenings (evenings,<br />

weekends) in order<br />

to work with <strong>Lean</strong> –<br />

it is difficult<br />

Service in is all about<br />

timing – e.g. to know when<br />

it is i suitable it bl to t refill fill the th<br />

water to a restaurant<br />

customer, that is what<br />

makes the difference in the<br />

customer experience!<br />

<strong>Lean</strong> has had a<br />

small effect on the<br />

culture<br />

We don’t see<br />

<strong>Lean</strong> as a<br />

mindset but<br />

rather as a tool<br />

800 opinions<br />

from customers<br />

in 3-4 months<br />

which stimulate<br />

the continuous<br />

improvements<br />

It is important to<br />

know “HOW” to<br />

motivate others<br />

The goal is to create<br />

a new culture<br />

standing above quick<br />

fixes (delivering<br />

bottom line results) )<br />

<strong>Lean</strong> in our company p y is<br />

more about cutting costs<br />

than creating satisfied<br />

customers<br />

The halo must change:<br />

it has to sit on the<br />

person that who finds<br />

and solves problems<br />

and not on the person<br />

who hides them away<br />

We plan to include EQ tests in<br />

our recruitment process


31<br />

Table of contents<br />

�� About the study<br />

� A few words about <strong>Lean</strong><br />

� Results of the <strong>Lean</strong> study y <strong>2008</strong><br />

� Conclusions and reflections<br />

� Contact information<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


32<br />

Final conclusions and our reflections<br />

� In recent times the concept of <strong>Lean</strong> has found its way in the <strong>service</strong> <strong>industry</strong> probably because the challenges<br />

facing the <strong>service</strong> <strong>industry</strong> are on an overall level similar to those in the traditional manufacturing <strong>industry</strong>. The<br />

<strong>service</strong> i i<strong>industry</strong> d t hhave, bby llooking ki at t th the manufacturing f t i i<strong>industry</strong>, d t realized li d th the great t potential t ti l th that t L<strong>Lean</strong><br />

can<br />

release within the organization, helping them to stay competitive on a increasingly harsh market by focusing on<br />

customer value and reducing waste. Waste typically found in the <strong>service</strong> <strong>industry</strong> relates to the collaboration<br />

abilities between its value network, e.g. customers, suppliers, and partners.<br />

� The majority of the companies state that they have achieved concrete results while working with <strong>Lean</strong>.<br />

Moreover, the study reveals that companies experience it is more likely to achieve bottom line results when<br />

working with <strong>Lean</strong> than working with continuous process improvements. The reason for the strong ‘belief’ in<br />

payoff by <strong>Lean</strong> might be put in relation to the rather tedious process work conducted by major companies in the<br />

80- and 90ties when BPR was introduced in the <strong>Nordic</strong>s.<br />

� In order for the employees to get involved and stay involved in the <strong>Lean</strong> work, the companies need to develop<br />

a common and company specific <strong>Lean</strong> language to provide the organization with a positive vocabulary that<br />

motivates and engages the employees. Crucial for the success is to keep the employees motivated, and thus<br />

th the need d tto answer th the employees’ l ’ question ti of f “Wh “What’s t’ in i it for f me?”. ?” KKaizen i iis iin JJapanese bbusiness i context t t<br />

often seen as a peer together with Investment. Kaizen together with continuous investment in company<br />

resources and competencies, wherein the growth and development of employees is an important part,<br />

increases the chances for the sustainability of <strong>Lean</strong> programs.<br />

� It is a major challenge for the companies to make <strong>Lean</strong> imbedded in the company culture. A commonly held<br />

view is that current organizational culture is rather acting as a barrier than a possibility when it comes to fully<br />

implementing a culture that supports continuous improvements. This suggests that companies working with the<br />

implementation of <strong>Lean</strong> need to also think about how to support the ongoing <strong>Lean</strong> work partly by incorporating<br />

the cultural dimensions, actively working with management of change and to built a learning organisation. The<br />

preferred leadership style has key elements as trust and coaching – a culture which allows employees “to raise<br />

their hands to identify mistakes made” without fear.<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


33<br />

Table of contents<br />

�� About the study<br />

� A few words about <strong>Lean</strong><br />

� Results of the <strong>Lean</strong> study y <strong>2008</strong><br />

� Conclusions and reflections<br />

� Contact information<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB


34<br />

44 interviews have been conducted with some major<br />

players in various <strong>industry</strong> segments<br />

Healthcare:<br />

� Centralsjukhuset i Kristianstad<br />

� Universitetssjukhuset MAS<br />

� Karolinska Universitetssjukhuset<br />

� Kronans Droghandel<br />

� Capio S:t Görans sjukhus<br />

� Universitetssjukhuset i Lund<br />

� SATS<br />

Telecom & Media:<br />

� Ericsson<br />

� Teracom<br />

� 3<br />

� Canal Digital<br />

� Talentum<br />

�� TTele2 l 2<br />

Transport & Logistics:<br />

� SJ<br />

�� Scania<br />

� Volvo Logistics<br />

Manufacturing:<br />

�� Perstorp AB<br />

� Partnertech<br />

� Sandvik Materials Technology<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

Public organizations:<br />

� Vara kommun<br />

� Mittuniversitetet<br />

� Migrationsverket<br />

� Apoteket<br />

Retail:<br />

� Indiska<br />

� Coca-Cola<br />

� Dagab<br />

� COOP<br />

� Oriflame<br />

IT & Consulting:<br />

� Solectron<br />

� FujitsuServices<br />

�� SWECO<br />

Construction:<br />

� Skanska<br />

�� Arcona<br />

� NCC Construction<br />

Banking:<br />

� Swedbank<br />

� GE Money Bank<br />

� Nordnet<br />

� Nordea<br />

� SEB<br />

Energy:<br />

� Telge Energi<br />

�� FFortum t<br />

Hospitality & Travel<br />

� Sheraton<br />

� Fritidsresor<br />

�� Granvia


35<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB<br />

Stockholm<br />

Kungsgatan 26<br />

111 35 Stockholm<br />

Tel: 08 723 87 00<br />

Fax: 08 723 87 01<br />

Contact information about<br />

the <strong>Lean</strong> <strong>Study</strong> <strong>2008</strong>:<br />

PProject j t leader: l d<br />

Sanja Miteva<br />

Göteborg<br />

sanja.miteva@cordial.se<br />

Rosenlundsgatan 3<br />

+46 706 10 45 33<br />

411 20 Göteborg<br />

Tel: 031 711 04 50<br />

Fax: 031 750 90 99 Responsible for <strong>Lean</strong> at<br />

<strong>Cordial</strong>:<br />

Linda Bradley<br />

Tokyo<br />

linda.bradley@cordial.se<br />

3-31 Kioicho n-KI1, Chiyoda-ku<br />

+46 708 50 55 22<br />

Tokyo 102-0094 JAPAN<br />

Tel: +81 (0)3 3556 0481 (building reception)<br />

+81 80 5512 9722 (Japan)<br />

www.cordialasia.com<br />

di l i<br />

www.cordial.se<br />

<strong>2008</strong>-05-08 Projektnamn och konsult Fil: filnamn.ppt


36<br />

----------------------------------<br />

© <strong>2008</strong> <strong>Cordial</strong> Business Advisers AB

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