How can Lean Manufacturing be applied to non-manufacturing areas?

Taiichi Ohno, the main architect of the Toyota Production System, is credited with defining the 7 mudas or types of waste (overproduction, waiting, transportation, over-processing, inventory, movement, and defects). Wastes are contextual and vary from one setting to the next. Just because Ohno identified seven types of waste for manufacturing doesn’t mean that these are the only types of waste and that they will be the same for your organization. The point is to identify the waste in your processes. Waste is best defined as the “factors that don’t add value and only serve to increase production costs” (Yamada, 2011, p. 58). Waste is better described as anything that does not add value to the product or service being created or processed.

Oh this is simple. Learn the philosophy and not the tools. Lean is a way of life. Therefore if the thinking is standardized and everyone is aligned to approach a situation scientifically, then it is the culture to drive lean in any function. The issue is people think Lean is only for manufacturing process, which is what makes it fail in the non manufacturing areas. Standardization, customer supplier connect, material or information flow and problem solving for improvement is common across any functions. If this thinking is used to eliminate waste, then lean could be applied in areas of work

Although non-manufacturing areas are seen differently compared to manufacturing processes, the common points are huge. We tend to approach both manufacturing areas with a different eyes, because the non-manufacturing tasks are, usually, not highly repetitive, non cadence or not standardized, and that is exactly the issue. To make a correct assessment and improvement on non-manufacturing areas, we need to start with the same basics: 5S, Standard Work, Routines and Lean (wastes elimination) as a foundation.

For instance, in the administrative division, redundant data entry processes led to overproduction of paperwork and defects due to human errors. Additionally, poor scheduling in a corporate setting often meant waiting for decisions or approvals, stalling processes downstream. Moreover, in the HR domain, non-utilized talent became evident when highly skilled employees spent time on mundane tasks below their skill level. I firmly believe that recognizing and addressing these wastes, even outside of a manufacturing context, can significantly enhance operational efficiency and job satisfaction.

One thing I have found useful is optimization or simplification of processes, well defined SOPs and DOA in place. Automation of workflows are good example of office automation helps to bring transparency, and clarity to people in non-manufacturing areas.

In the production environment, it’s much easier to see, measure, and improve the work. Knowledge flow can be more difficult. I’ve found that a significant contributor of waste, and thusly an opportunity for waste reduction, is completeness and accuracy. A measure of “goodness” for non-production flow might include ‘sufficiently complete and accurate knowledge presented to the right person/group at the right time, in the right format, at the right place’ - etc. We can measure C&A at each step and calculate a rolled throughout yield for the span of focus. We can also measure inventory, such as number of incomplete engineering change orders or drawings waiting for sign-off. Our lean tools can be applied to improve RTY and velocity.

To apply Lean principles effectively in non-manufacturing areas 1. Identify Waste: Analyze processes to identify non-value-added activities such as waiting, unnecessary movement, or over-processing 2. Streamline Workflows: Simplify and standardize workflows to reduce complexity and improve efficiency. 3. Enhance Quality: Implement measures to ensure accuracy, reliability, and consistency in service delivery or administrative tasks 4. Employee Involvement: Engage employees in identifying improvements and implementing changes through continuous feedback and empowerment 5. Adapt Lean Tools: Utilize tools like value stream mapping, 5S for workplace organization, and Kaizen for continuous improvement tailored to non-manufacturing contexts.

As a lean leader in a transactional environment, I'm pleased to report that the application of lean principles keeps us busy. Some noteworthy examples include standardization, value stream mapping, and our commitment to continuous improvement. Given the abundance and intricacy of processes in non-manufacturing settings, it's hardly surprising that lean methodologies find even greater relevance here. According to PwC, 80% of tasks in typical manufacturing processes are wasteful because they don't add any value for the customer.. However, when we look at business processes, it's actually up to 90% non-value-add and 10% value-add. So both have a ton of opportunity for improvement!

Implementing lean processes in manufacturing as well as non manufacturing areas is fairly simple, so much waste is around us, on factory shop floors and offices. From value steam mapping, to 5s- not just physical 5s of people desks, but digital 5s of pcs, laptops, phones etc. Eliminating waste by relooking a layouts of the spaces to make them more efficient. List can go on. I suggest reading "Lean Thinking- banish waste and create wealth in your cooperation" by Womack and Jones. Some amazing examples of Lean processes introduction.

My go-to tools to eliminate waste in a non-manufacturing (transactional) environment are: (1) Value Stream Map: this ensures we capture the entire process and quantify the level of waste. (2) SIPOC: to know who needs what information and for what purpose, as well as who needs to approve and why.

1.Identify all applicable "Critical to Quality" parameters based on the business / process type. 2. Define how they will be measured against its set target, this could be agreed with client or internally benchmarked. 3. Conduct Quality checks based on Sample size internally to avoid any impact on final service 4. Prepare FMEA for all processes & Train people 5. Adopt creating RCA for each failure mode & sustain actions.

The first step to improve quality in a non-manufacturing area is to understand the customer's expectations, requirements and needs. Then we translate them into specifications that can be measured objectively to get a clear understanding of the quality criteria.

In the procurement department of a foam & spring mattress company, poka-yoke was implemented to error-proof order entries, significantly reducing wrong orders. In the finance department of a beverage enterprise, regular root cause analysis was used to address discrepancies in financial reports. Prioritizing quality in these areas, therefore, has a ripple effect on the overall organizational excellence.

It is crucial to foment a quality mindset among your company. This can be done by promoting training in quality tools, presentation with advantages of implementing quality in all different areas inside a company, examples of how people can act in a way to perform their tasks in an effective way. For this, motivational sections and programs which incentive employees to give suggestions and ideas about how to improve processes in different departments can be used as strategy.

For long time quality was considered to do lime promised, according to the procedure, like boss asked for, … however it could create limitations on employee, making them to don’t use the creative ideas. Make a quality is currently make sure that team understands the needs and goals, in order to deliver solutions for the objectives. Simple like that.

The value steam map (VSM) model shows the entire sequenced arrangement of materials in and all the way up to dispatch to the customer. The different segments can be broken down into non-manufacturing and manufacturing activities within the VSM alongside breaking it down as value-add/non value-add. Now, we can focus specifically on non-manufacturing areas such as dispatch times, customer loading/unloading material delays, RM inward logistic delays and IT systems response and focus on pull, batch size increase, takt time and flow optimization either through computer algorithm based software or data analytics based inferences to improve efficiencies.

In Metrology and measurement ‘over production’ can mean many things, over capable equipment that inevitably costs more to buy and maintain, to over measurement of features and which features are true value. Bottlenecks are very common with little flow planning in offline measurement, and downtime and equipment maintenance not mapped / controlled effectively. With measurement often not linked to single manufacturing cells, more a catch all post manufacturing process, it can be a tangled web to sort. And so it is often skipped over or just ignored.

These ‘tools’ all help change the process. To improve efficiency you have to measure efficiency. If you are not tracking output and effort you will not know if these process changes impact efficiency. Two key challenges to overcome first are making the work visible and measuring the process.

Lean principles can boost efficiency in non-manufacturing areas by promoting streamlined processes, waste reduction, and continuous improvement. Start by mapping out current workflows, identifying bottlenecks, and eliminating unnecessary steps. Implement standard procedures and visual management techniques to enhance clarity and consistency. Encourage cross-functional collaboration and empower employees to suggest and implement improvements. Regularly collect and analyze data to monitor performance and make data-driven decisions. By applying Lean principles to non-manufacturing processes, organisations can achieve greater efficiency, reduce lead times, and deliver higher-quality services or products to their customers.

When discussing the efficiencies in the non-manufacturing area, it can be divided into two parts. Individual activities and the overall process. In individual activities, it is required to break down the activities into simple elements and to understand the VA and NVA elements. If required to enhance the efficiency only way is to reduce the NVA part. When considering the overall process, It is good to think about VSM. VSM can identify the Information and Material flow. However, in non-manufacturing areas can understand the connectivity of each process. focusing on information flow can enhance several things and enhance the process connectivity also using Kanban, Takt time, etc. all those things are support to enhance the overall efficiency.

Think of a lean culture as continuous improvement. It applies to everything we do. It's not about changing everything the way we do things. It's about making one small change at a time so that one change per day becomes 30 changes per month, and those 30 changes per month accumulate over time. That's what makes the difference.

I've noticed that the non-manufacturing areas, such as human resources or administration, often have untapped potential for efficiency gains. In the sales department of a foam & spring mattress company, the implementation of a kanban system for processing orders streamlined operations and reduced backlog. My personal insight here is that the principles of lean and efficiency aren't restricted to the factory floor. Even in departments like marketing or finance, process improvements can lead to significant savings and productivity boosts

Top management should Lead by example, they should care first then different levels in the hierarchy will care. * Train every one * Make a visualization for Lean and its tools * Use the tools and its documents in your daily work and reports. * link it with their targets and bonus scheme can help by a saving target through lean tools.

Como cualquier situación que involucre cultura organizacional, el liderazgo es fundamental. Es en este ambiente de trabajo esbelto que el ejemplo se vuelve fundamental. Las caminatas Gemba y una actitud de “ver y resolver” provocan cambios en la cultura y la mantienen en el largo plazo.

Without leadership commitment, it is completely impossible to create a lean culture in the workplace, be it manufacturing or non-manufacturing areas. During my job as a Lean Six Sigma Consultant, I was assigned to identify the root causes of waste in a diamond company and I observed that owner used to visit various countries for identifying raw materials which eased the management and they were not very much considerate about maintaining the workplace time management which led to delays. Now, owner had to be busy but I advised him to either bring another director with a long-term perspective or conduct gemba walks whenever he came back and have a holistic discussion with the employees in presence of management officials.

In non-manufacturing work, the quality improvement interventions should be adapted to the people working the process. They often have more freedom in the way they work, it might take more effort to convince them of the necessity of change. We need to be mindful of the autonomy level and professional skills of the audience when presenting Lean techniques as they can be perceived as infantile because of their simplicity. However, they are grounded in scientific and neuroscientific principles and have proven their efficiency. When working with highly educated people or leaders, it is helpful to : - explain the tools and techniques - refer to scientific evidence - present the benefits - offer some reading suggestions so they can learn more

Whether manufacturing or service industries, the most important elements in developing and nurturing a "Lean" culture are leadership and empowerment. Lead by example, and foster a culture of innovation balanced with discipline. Empower your team first through education, then subsequently by effective delegation.

Creating guidelines & modules with specific examples will help their team members to identify wastes in their processes. Few examples for service orgs: Transport - ineffective routes for pick and drop can be a waste inventory - Extra storage of data will consume more space and can be a waste Motion - repetitive of work can be a waste Waiting - Pending decisions can be a waste Overproduction and over processing - Creating something which is not required or out of the scope can be a waste Delay - unnecessary approval layers can be a waste Skill - Right skills are not utilised for the right tasks can be a waste Likewise Org. shall have modules, guidelines with simple examples and train people to identify wastes to improve their processes.

In non-manufacturing work, I like to start by asking, "What's frustrating about the work you do?" Since the workflow is often done inside someone's head, the answers to that question usually bring forth some element of waste.

First of all, what are the priorities of the company and other functions to do? For example, strategic objectives to solve and routine operations to improvement,etc. And I think everywhere there is a process and flow, but members who work in the non-production functions treat them as a single task, so value stream mapping is very useful to identify the process and timing as well as wastes. So how to identify the problems and opportunities for them to improve is very important, both value adds and non value added process are there for people to identify and solve, but does people have the skill and capability to change? They need the support from internal expert with wider business understanding or external consultant, and standardize.