mtb International Consulting

It is easy to identify the need for Lean Manufacturing methods on the shop floor; excess inventory, piles of WIP (Work in Process) everywhere and parts shortages. But what does the need for Lean look like in an office environment? In a manufacturing organization, office functions such as quoting, order entry, scheduling, design and engineering, purchasing and accounting, often eat up 70% to 95% of the time that goes into manufacturing a product. With today’s competitive marketplace, these organizations cannot afford these types of delays. They need to be as efficient and responsive in the supporting areas as they do on the shop floor.

But what about the organizations that do not have a production department? Well, in an office environment, the customer could be a consumer purchasing a product, a citizen receiving a service at a government agency or a call center responding to technical support calls. The primary goal of Lean is improved customer service. By working to eliminate “waste” that is not valued by the customer, we are better able to provide exactly what the customer wants, when the customer wants it and in the way the customer wants it.

What are some of the common wastes in an office environment? Here are some examples:

Defects: Lots of data entry errors

Over-Production: Paperwork printed before it is needed.

Waiting: computer system is down too often or is too slow

Underutilized people: Minimal authority/responsibility for basic tasks

Transportation (information): Excessive circulation of paperwork

Inventory: Too many office supplies

Motion (movement of people): Going to the printer or copier too often

Extra-Processing: Making extra copies.

Lean Office & Administration is a method for reducing waste that applies the same powerful principles of Lean Manufacturing to the office functions. One of the very first steps is documenting the office material/information flow using Value Stream Mapping (VSM). This tool assists in identifying potential bottlenecks and sets up continuous improvement events, also called Kaizen events.

Applying additional Lean tools such as Work Area Management (5S), Visual Controls,  Office cells/teams, Standardized Work etc. will allow an organization to turn things around quicker and to improve first-pass yield on paperwork. This ultimately leads also to cost savings from the reduction in paperwork and overall improved efficiency.

Just as with Lean Manufacturing and Lean Healthcare, a successful Lean Office & Administration implementation includes the involvement of all office employees in carrying out the changes and strong leadership that clearly defines the new direction.