Methods to Office Eliminates Waste - VRDS

1. Office Waste 101 Darian Rashid Managing Director, VRDS Inc. (732) 219-7001 darian.rashid@vrds.com http://www.vrds.com/ @VRDSinc

2. Office Waste 101 Topics • Value • Waste • Waste in the Office • Data and Information Waste • Workflow Waste • Employee Waste • Resource Waste • Methods to Eliminate Waste • Questions

3. Value Main Entry: val·ue Pronunciation: \’val-(,)yü\ Function: noun a: Something that adds form, feature or function b: Something that a customer is willing to pay for

4. Waste CVA Any task, function, item, etc. that does not add value to the customers or shareholders BVA NVA NVA CVA CVA BVA BVA ransportation T I M W O O D nventory otion BVA NVA aiting verproduction verprocessing efects

5. Types of Office Wastein the Office • Data and information waste • Workflow waste • Employee waste • Resource waste WARNING: Only waste IF it doesn’t add value

6. Data and Information WasteWorkflow WasteEmployee Waste Resource Waste To counter cronyism, Max Weber (1864-1920) created the "rational-legal system" form of organization - its structure and processes designed to achieve certain goals. The bureaucracy is designed for optimum functional performance and unity of purpose, and authority is exercised by rule and procedural systems.

7. Data and Information Waste • Redundant input and output of data • Manual checking of electronic data • Missing data • Unavailable data • Incorrect data • Incompatible information systems • Data dead ends

8. Redundant Input and Output of Data • Identical data inputs or outputs occur more than once without adding any extra (customer) value • Filling out multiple forms that have the same fields of information • New patient forms / new school year forms • Automated call asking you to enter information and then having call rep ask for same information • Receiving multiple reports or emails that have essentially the same information; forwarding of emails • Distribution lists that included unnecessary recipients • Generating the same report in different formats for different internal customers

9. Manual Checking of Electronic Data • Electronic or electronically generated information is manually checked for accuracy, completeness, and so on • Manual checking of data that has been entered electronically • Manual checking of results that have been computed electronically • Manually remove incomplete entries • Removing bogus entries i.e., stores that ask your phone number • Printing electronic media to check or file • Software development and validation rules • No idea that validation rules are required • No access to developers of the software to write in validation rules • Legacy systems that cannot be tampered with, even if development resources are available

10. Missing Data • Required fields are missing which invalidates the entire record • Results in incomplete data sets which are analyzed leading to invalid or suspect decisions • Data collection methods are suspect or biased • Analysis performed with an insufficiently small sample size

11. Unavailable Data • Data that is needed but not logistically possible to collect • Data that is available but cannot be obtained for political reasons – e.g. IT doesn’t have time to run the query for me so I have to wait

12. Incorrect Data • Wrong, biased, unreproducable, unrepeatable, unstable, or inaccurate data • Unsure about data source • Unknown sampling plans • No traceability • Multiple manual entries and hand-offs • Complicated, redundant, and lengthy input, forms, and screens • Verbally transmitted data

13. Incompatible Information Systems • Systems that are used in the same process but require human intervention to share data • Manual transference from one system to another • Literally transferring the same data from one screen to another • Manual translation of outputs from one system into another • Reformatting the output into the new input • 123456789  123-45-6789 • 2345678901  (234) 567-8901 • Delimiting in Excel • Performing calculations on the output into the new input • Pivot tables and summary data for the second system • Transposing columns to rows • Paralysis – can’t transfer or translate

14. Data Dead Ends • Occurs when data flows through a system and then stops, not serving any purpose • Metrics that are collected but never looked at • Reports that are run but never looked at • ‘Write-only’ data • Downstream process no longer needs data but is still collected upstream • Call center systems that track every aspect of call but data is never used for process improvement. i.e., timestamps for individual segments of a call • Airline asking for passport information for domestic flights

15. Data and Information WasteWorkflow WasteEmployee Waste Resource Waste

16. Workflow Waste • Hand-offs • Batches, stacks and queues • Micromanagement and approvals • Branching • Extra or over processing

17. Hand-Offs • Turning over information, data, tasks, etc.to a colleague, group, department, etc. • Both horizontal (functional) and vertical (hierarchy) • Swim-lane map is the best way to see this interfaces • Dragging bags from check-in over to security check • Restaurant: different person taking order, delivering drinks, and delivering food • Hospital emergency room • Bank manager approval • Call center transfers • Help desk

18. Batches, Stacks and Queues • Sets of information, requests, people, materials, etc. that are stalled and building up mid-process • Data waiting to be processed or refreshed • Projects, portfolios, or files in queue • Data and reports waiting to be batched • Unread emails

19. Micromanagement and Approvals • Supervision, monitoring, checking, auditing, and inspecting • Supervision and management interactions with employees • Controls and redundancy • Approvals for expenditures over budget • Required waste • Regulatory and legal • Business value add

20. Branching • Deviating from the standard workflow • Employee inconsistency (nonstandardized work) • Unbalanced work (bottlenecks) • Customer demand or order fluctuations • Supply chain variation • Audits/checks • Approvals

21. Extra Or Over-Processing • Doing more than is required by the customer • Multiple reports formats, all with the same information • Creating reports and charts for decision making • Supplemental manual entry of data • Use of different software in different departments • Paperwork and duplicate forms • Bad design • Overlapping system capabilities

22. Data and Information WasteWorkflow WasteEmployee Waste Resource Waste

23. Employee Waste • Busy work • Motion • Ignoring ergonomics • Underutilization of talent

24. Busy-work • Assignments and tasks that are time-consuming but not useful • Multitasking • Task interruptions • Issue resolution • Firefighting and problem solving • Outside interruptions (visitors, phone, email, etc.) • Training • Low or no investment in training • Training materials and trainer unavailable • Wall to wall meetings • “Meetings to eliminate meetings”

25. Motion • Human movement • Reaching, lifting, pushing, pulling, … • Manually searching and gathering data and files • Extra clicks, key strokes, and code • Travelling to other buildings • Travelling to other sites across town, the state, the country, etc.

26. Motion

27. Ignoring Ergonomics • Waste from the interaction of humans with objects, tasks, jobs, products, systems, and the environment that lowers performance, increases errors, and decreases user satisfaction through discomfort and poor aesthetics • Bad design of tasks and work areas • Operator fatigue and discomfort • Also called biotechnology, human engineering, and human factors engineering • Safety, time and motion, workplace design … • Keyboards, mice, pads, chairs, handles, displays, …

28. Underutilization of Talent • Not using people’s creative and analytical skills to their potential • Low or no investment in training or cross training • Unclear qualifications, roles, or responsibilities • Old guard thinking, politics, the business culture • Not providing opportunity for growth • Start using software without prior training • Poor hiring practices • Low pay, high turn over strategy • Politics and corporate culture • Cronyism

29. Data and Information WasteWorkflow WasteEmployee Waste Resource Waste

30. Resource Waste • Hoarding and Stockpiling

31. Hoarding and Stockpiling • Holding on to more material, information or resources than what is needed • “Just in-case” • Supply closets, cabinets, and drawers • Sales literature and materials • Unused databases, data, and software • Raw materials

32. How Many Do You have? • Data and Information Waste • Redundant input and output of data • Manual checking of electronic data • Missing data • Unavailable data • Incorrect data • Incompatible information systems • Data dead ends • Resource Waste • Hoarding and stockpiling • Workflow Waste • Hand-offs • Batches, stacks and queues • Micromanagement and approvals • Branching • Extra or over processing • Employee Waste • Busy work • Motion • Ignoring ergonomics • Underutilization of talent

33. Methods to Expose Waste • Process mapping • Spaghetti diagrams • Value add analysis • Eliminating non-value add • Eliminating or reducing business value add • Reducing value add “time” • Value stream mapping • 5S initiatives • Resource leveling

34. Methods to Eliminate Waste • Flow control systems • Work-in-process (WIP) caps • Visual management / information radiators • Cellular groups • Push vs. Pull systems • More advanced methods appropriate on some occasions • Kanban and supermarkets • Time trap analysis (bottlenecks) • Order entry levels, safety stock, service levels, demand intervals … Beaver Dam Copyright © 2007 VR Data Systems, Inc. All rights reserved. Copyright © 2007 VR Data Systems, Inc. All rights reserved.

35. Summary Value – Something a customer is willing to pay for Waste – Any action, task, function, etc. that doesn’t add value to the customer or the shareholder There are different types of waste in the office Data and information waste Workflow waste Employee waste Resource waste Process mapping and Value-Add analyses are powerful ways to expose these wastes

36. Return Remail Retest Reapply Retype Reship Redraw Reposition Resell Rebook Reissue Reject Rerelease Resign Revert Resistance Rework Relapse Review Redesign Resubmit Recall Recount Questions? Eliminate the ‘Re’s If you enjoyed this presentation, please blog and/or tweet about it