"What is Lean Customer Service?"

1. "What is Lean Customer Service?" Michael T. Walsh, CPIM, LSSBBThe Quality Solutions Groupwww.QSG.net ISM NY/NJ Forum – General Session – October 28, 2011

2. OBJECTIVE To bring back one great idea for immediate implementation!

3. WhatIs LEAN? “A philosophy that emphasizes the minimization in the amount of all the resources (including time) used in the various activities of the enterprise. It involves identifying and eliminating non­value adding activitiesin design, production, supply chain management, and dealing with the customers. . .”

4. Entering order Ordering materials/supplies Preparing drawings Assembling Shipping to customers Processing customer deposits Examining patients Filing insurance claims Dispensing event tickets Fueling airplane Waiting/sorting Moving Kitting/staging Counting Inspecting Checking Recording Obtaining approvals Testing Reviewing Copying Filing Revising/reworking Tracking work Value­ Versus Non­Value­Added Value­Added Activities Non­Value­Added Activities

5. Service Fact Cost of services are inflated by a minimum of 30% due to wasteful practices. Some service costs are inflated by 60%!

6. Factory Fact Up to 75% of all activities in the typical manufacturing organization are non-value-added.

7. Workplace Organization A safe, clean, neat arrangement of the workplace which provides a specific location for everything, and eliminates anything not required.

8. 5 S Housekeeping • Sort, clean out • Simplify, configure • Sweep, clean, and check, (includes visual sweeping) • Standardize, conform • Self­discipline, custom, and practice training and routine.

9. 5 S Is More than Housekeeping • Basis of safety • Directly cuts waste, particularly waste of motion • Reduces variation • Basis for improvement—building on reduced variation • Helps recognize further waste • Changes the mindset

10. Benefits of 5 S For the Employees: • A more pleasant work environment • More satisfying jobs • Process that makes the job easier • A process that makes sense • Pride in the workplace • Employee and customer respect • Positive mental attitude 5 S creates a better place to work

11. Benefits of 5 S For the company: Higher quality, lower costs, easier maintenance, greater customer satisfaction, and higher profitability • Sales • Savings • Safety • Standardization • Satisfaction FOUNDATION FOR OTHER CONTINUOUS IMPROVEMENT PROCESSES

12. Customer Focus Organizations….both manufacturing and service providers…. are turning to: Customer Service and Customer Satisfaction….. to provide the competitive advantages that will hopefully lead to: Customer Success

13. GOAL agree? DELIGHTING THE CUSTOMER through CONTINUOUS & RAPID IMPROVEMENT in QUALITY COST SERVICE LEADTIME FLEXIBILITY & INNOVATION

14. What is a Company’s Culture? • A company's culture is like its personality. It is the special way that people in the company do things. A company culture is everything that makes up the organization and how all the parts work together. • A company does not have a separate part called its culture. A company is a culture.

15. Will you be back? Of course, our customers are loyal. They will be back. They (Fox Books) discount but they don’t provide any service.

16. How Do You Build A Culture? Most companies focus intensely on operational issues, leaving their human sides undeveloped, and their cultures unbalanced. The unbalanced culture is the opportunity for development.

18. "Walmart started out with a single discount store in Northwest Arkansas and in less than 50 years grew to become the world’s largest retailer, with thousands of stores and clubs and millions of associates. Our culture of ethics and integrity has been a constant throughout that transformation. From the beginning, it has defined who we are as a company, and how we as associates treat each other, our suppliers and our customers"

19. “We train all of our employees to be focused on the customer and respectful of our suppliers” We make people first and in addition, we make electrical products”

20. WHO ARE THE CUSTOMERS? Customers… Are human beings like ourselves, with the same feelings and emotions.

21. Customers… bring us their wants, and it is our job to fill those wants.

22. Customers… are not people to argue or match wits with.

23. Customers… are deserving of the most courteous and attentive treatment we can give them.

24. Customers… do us a favor when they call us - we are not doing them a favor by serving them

25. Customers… are not dependent on us -but we on them

26. Customers… are not an interruption of our work – they are the purpose of it

27. Customers… are the people who make it possible to pay our salaries, whether we are truck drivers or managers Or parents.

28. Customers….. are part of our business, not outsiders from it

29. Customers… are the most important persons in any business - REALLY

30. Customers… are the lifeblood of this and every other business

31. “It's not what you look at that matters, it's what you see” Henry David Thoreau

32. Which? A B

33. Questions? Who put this lime on my head? NEXT ?

34. The Quality Solutions Group • 508-367-9257 • Mikewalsh.QSG@comcast.net Please leave us your Business Card • Lean Six Sigma Check List • Copy of this presentation