Lean administration – the fight against waste in administration (Part 2)
The basics of lean administration can be found in the first part of this article Lean Administration – Combating waste in administration (Part I). The procedure and the project process are explained in this article.
Project process for the implementation of Lean Administration
The approach and methodology is divided into four main phases:
- 1. Project setup
- 2. Analysis phase
- 3. Definition of target state
- 4. Implementation
During project setup, it is important to define the objective, the project team and the project organization and to set a realistic but ambitious schedule that is supported by all those involved.
The analysis phase should analyze the current situation, identify weaknesses and initiate immediate measures to achieve measurable success as quickly as possible.
When defining the target state, a target value stream for the “administrative products” is defined in addition to the classic optimization and these metrics and key figures for the quality of the new processes are determined. The term “administrative product” is crucial to the success of the project, because consistent and complete optimization is only possible when employees recognize a vacation request or an incoming order as a “product”. In addition, a concrete catalog of implementation measures with tasks, deadlines and responsibilities is drawn up in this step, which serves as the basis for further action.
The aim of the implementation phase is to implement new processes and procedures and ensure sustainability. Coaching tasks and employee training on lean administration methods are also carried out.
Analysis as a prerequisite for sustainable optimization
An intensive analysis phase is a prerequisite for the successful introduction of lean administration. For example, many complex administrative processes are often closely interlinked, from the receipt of an order to the processing of the transaction and invoicing, and must be examined in detail. In order to design a sensible, transparent and efficient target process, the actual situation must first be examined from various angles and the critical areas for action identified.
The systematic approach makes it possible to examine every area of the company in detail. The analysis begins with a company structure analysis in which the organization, personnel, customers and competition are examined and a classic strengths and weaknesses analysis can be carried out.
The second step is the order structure analysis, which provides an overview of the products of the respective area and the quantity structure of the various services in order to later determine the required capacities and allocate tasks appropriately. At the same time, the potential of the individual administrative activities is identified and prioritized in this step.
In the process analysis, the actual processes are analyzed and presented in detail using the methodology of value stream mapping with the help of standardized symbols. In addition to the visual representation, a time recording and evaluation is also carried out, which breaks down the duration of a process and reveals possible time wasters. The analysis therefore identifies the typical waste characteristics within business processes.
The activity structure analysis is used to determine the results of the value stream analysis in detail and at the same time. For example, the distribution and workload of tasks in the individual functions, which activities the employees of a function perform and what proportion of time they take up. In addition, the individual activities are evaluated according to their contribution to value creation.
Finally, the information structure analysis examines the various information flows as well as the use of communication tools and IT in the organization and thus determines the necessary information requirements and the existing information supply. Both information gaps and the overproduction of information, e.g. through unnecessary reporting, are identified.
The optimization of business processes
Processes are optimized on the basis of the analysis results. Lean administration goes beyond the selective improvement of business processes and continuously pursues a holistic approach that takes into account the entire value creation system. The aim of optimization remains the design of an efficient value creation system in which the processes function stably with the shortest possible throughput time, so that the customer receives the services as quickly as possible and in high quality and at the same time the effort in the company is limited to the necessary level. A fundamental understanding of current performance is necessary to ensure that adherence to deadlines and other quality features do not remain mere coincidences. In addition to delivery reliability, delivery capability, degree of processing and throughput time, key performance indicators to be established can also include the costs and quality of an order and internal and external customer satisfaction.
Employees are crucial to the successful introduction of lean administration. It is essential that the target definition is clearly communicated by management and that all employees are committed to the new direction of “customer orientation”. However, this can only succeed if every employee in a company starts to think holistically and breaks through the barriers imposed by functions and departments.
Conclusion
Lean administration can be applied in all sectors and across all organizations, regardless of the process content. The aim is to eliminate any waste that does not increase the value of a service from the customer’s perspective and to achieve a consistent customer focus. The resulting potential is immense.
The sustainable optimization of administrative areas requires both the implementation of the flow concept in indirect areas and transparency across the entire process.
This increases productivity and efficiency, reduces throughput times, increases availability and significantly improves customer satisfaction. In addition, the application of lean methods creates a high level of transparency in processes and procedures in order to reduce their complexity and thus make them more manageable.
Companies that allow their administrative processes to be influenced or shaped by lean thinking at an early stage have a considerable cost advantage. They can also position themselves better on the market thanks to the competitive advantage of a higher level of service.
For more information, see Lean management: the 5S method.
Image source: © Wassermann AG