Title: Value Stream Management for the Lean Office: Eight Steps to Planning, Mapping, and Sustaining Lean Improvements in Administrative Areas

Authors: Don Tapping and Tom Shuker

Publication Year: 2002

Categories: Process Improvement

Introduction

“Value Stream Management for the Lean Office” by Don Tapping and Tom Shuker is a practical guide to applying Lean principles in administrative and office settings. The authors extend Lean concepts typically used in manufacturing to office environments, where waste and inefficiencies are often overlooked. They introduce an eight-step methodology to help organizations plan, map, and sustain lean improvements in their administrative processes. This guide is not only theoretical but also filled with actionable advice and real-life examples to illustrate its principles.

Major Point: Lean principles, originally developed for manufacturing, are equally applicable to administrative processes.
Actionable Advice: Begin by understanding the seven types of waste (transportation, inventory, motion, waiting, overproduction, over-processing, and defects) and identify instances of these wastes within your office.

Example: In an HR department, over-processing waste might include redundant approval steps in the hiring process, which can be streamlined.

Major Point: Clearly defining what constitutes value in office processes is crucial.
Actionable Advice: Assemble a cross-functional team to map out the current process flow and identify which steps add value and which constitute waste.

Example: For an insurance company, mapping the claims processing procedure might reveal multiple reviews and approvals that do not add value. By analyzing each step, such as verifying the same information multiple times, the team can identify and eliminate redundant tasks.

Major Point: A Value Stream Map (VSM) is a visual representation of the workflow that identifies bottlenecks and waste.
Actionable Advice: Use sticky notes or software tools to create a VSM of your current process. Engage the entire team in this exercise to capture every aspect of the workflow accurately.

Example: In a customer service center, a VSM might show that customer inquiries are frequently handed off between departments, causing delays. By simplifying handoffs, the process can become more efficient.

Major Point: Analyzing the current state of the mapped process helps identify specific areas for improvement.
Actionable Advice: Conduct a thorough analysis using Lean tools such as the Cause-and-Effect Diagram (Fishbone Diagram) and the Five Whys technique.

Example: In a financial services firm, delays in loan approval might be due to multiple managers needing to approve a request. Using Five Whys, you may discover that this policy was implemented due to a past error but is no longer necessary considering recent system upgrades.

Major Point: The future state map is a blueprint for how the process should ideally operate without the identified wastes.
Actionable Advice: Brainstorm with your team to redesign processes, remove non-value-added steps, and streamline workflows based on Lean principles.

Example: A purchase order process might currently require multiple sign-offs. In the future state, a single sign-off policy could significantly reduce processing time and enhance efficiency.

Major Point: A detailed plan is essential for transforming the current state into the future state.
Actionable Advice: Create an implementation plan with clear milestones, assign responsibilities, and define metrics for success.

Example: A hospital might create an implementation plan to reduce patient admission times, with milestones such as digitizing patient records, training staff on new systems, and setting a target time for patient admission.

Major Point: Initiating and executing changes requires both a strategic approach and effective change management.
Actionable Advice: Start with small, manageable projects or pilot programs to test and refine changes before a full rollout.

Example: An engineering firm could pilot a new document management system in one department to address delays caused by searching for design documents, then expand the system firm-wide after evaluating its success.

Major Point: Continuous improvement ensures that Lean practices become part of the organizational culture.
Actionable Advice: Regularly review processes, seek feedback, and make necessary adjustments. Ensure the team remains committed to Lean principles through consistent training and communication.

Example: A retail company’s accounts payable department might establish monthly review meetings to assess process efficiency, address any emerging issues, and celebrate improvements to sustain Lean achievements.

“Value Stream Management for the Lean Office” offers a comprehensive framework for applying Lean principles to office settings. By following Tapping and Shuker’s eight steps, organizations can systematically identify waste, streamline processes, and sustain improvements. The book’s emphasis on practical, actionable steps, illustrated with real-world examples, makes it an invaluable resource for anyone looking to enhance efficiency in administrative areas.

In a legal firm, the process of drafting and finalizing contracts was bogged down by multiple revisions and back-and-forth communications between lawyers and clients. By forming a cross-functional team, mapping the process, and using Lean tools, the firm identified unnecessary steps and implemented a standardized contract revision process. This not only reduced the turnaround time but also improved client satisfaction.

A global consulting firm faced delays in project kickoff meetings due to disorganized scheduling practices. By involving employees in Lean training sessions and encouraging their input, the firm developed a centralized scheduling tool that streamlined the process. Employees felt more engaged and empowered, which contributed to a smoother and more efficient scheduling system.

By systematically applying these steps, organizations can transform their administrative operations into lean, efficient systems that deliver increased value to customers and stakeholders.