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Lean Administration

Date post: 02-Jul-2015
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Lean Administration is a successful management tool to reduce your overhead costs in a sustainable manner with long term effects.
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Dr. Stefan Schwarzfischer Cost Reduction In Your Administration Brämenstallstrasse 10 CH-8184 Bachenbülach 1
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Page 1: Lean Administration

Dr. Stefan Schwarzfischer

Cost Reduction In Your Administration

Brämenstallstrasse 10!CH-8184 Bachenbülach

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Page 2: Lean Administration

Lean Administration❖ “Lean Administration” prevents a

company of organizational overhead waste and provides optimal synchronisation of business. !

❖ “Lean Administration” focuses on the optimization of the value-added processes by using the following methods:!❖ Cost and functional analysis!❖ Activity structure analysis!❖ 5S method!❖ Value stream anlysis!❖ Interface analysis

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Page 3: Lean Administration

The Way Forward

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Cost/functional analysis

Process analysis!(value stream and interface

analysis)

Workspace analysis

Method Area Content

Total range of analysis

Priority areas with the greatest potential

Analysis of individual selected workspaces

Cost analysis: • Identifying cost types and their amounts • Cost structure analysis • Identifying cost drivers Functional analysis: • Value creation factor for each function • Activities with time apportionment • Cost drivers for each function

• Analysis of key processes and their share of waste •  Identification of redundant interfaces •  Interface analysis with respect to friction losses •  Identification of areas needing process definition

Identification of: •  Opportunities for increasing efficiency at workplace and at team level •  Optimisation potential through effective time- and self-management, DP and skills training

Goal

• Creating transparency •  Eliminating redundant work •  Eliminating unused services • Minimising cost drivers •  Identifying areas of action

Integration, parallel processing, synchronisation and minimisation of activities

Optimisation of the workspace layout and time management

Page 4: Lean Administration

The Multi-Project Overview reduces the Complexity of a Lean Administration Project

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๏ Standardisation

๏ Product Development Process

๏ Order Fullfillment Process

๏ SCM (IT)

๏ Discount and Condition System

๏ Maintenance

Likelihood of complying with deadline

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❖ Monthly summary of status reports from sub-projects !!

❖ Visualisation of the entire project landscape for management!!

❖ Analysis of deadline compliance and achievement of goals => deviation management!!

❖ Basis for regular communication in the steering committee/core team

Page 5: Lean Administration

Sustainable Achievments

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Range and average of the improvements (as %)

Increase in Efficiency

Reduction of Lead Times

Cost Reduction

Other positive effects

0 20 60 40 80 100

0 20 60 40 80 100

•  Improvement of (internal) customer satisfaction •  Improvement of employee satisfaction •  Improvement of internal/external customer focus • Creating room for strategic/value-generating activities

Range Average

Page 6: Lean Administration

The Seven Success Factors1. Creation of a uniform analysis methodology that is communicated prior to

the project start.!2. Prioritization of projects according to savings potential, speed of

implementation and resource compatibility.!3. Overcoming insular thinking within departments by deploying neutral

consultant.!4. Avoiding time windows that are too small – in practice, everything takes

longer than planned.!5. Training key staff in the lean philosophy.!6. Management providing reinforcement/support for project leaders – lean

is a managerial task.!7. Implementing routine communication protocols and motivating the

employees.

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Page 7: Lean Administration

The Management Role in a Change Prozess

❖ A „Lean Administration“ project cannot be implemented successfully without the active support and guidance of the whole management team, as the will for change, particularly in the overhead areas, are less pronounced than in other areas like the production.!

❖ Ongoing communication of project tasks and partial results.!❖ “You must lead by example and demand the lean office philosophy

or the project will fail!”!❖ Management must be a team player and not a power factor or

administrator.

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Page 8: Lean Administration

Stefan Schwarzfischer, Ph.D.Stefan was born in April 1966 and holds a Ph.D. in Process Engineering of the Technical University if Aachen, Germany.!!

Stefan hold several C-Level positions such as CEO, CFO and COO in the FMCG environments. He ist specialized in international business development and change management.!!

He worked for KPMG Deutsche Treuhand-Gesellschaft in the area of corporate restructuring in Frankfurt and Johannesburg.!!

Email: [email protected]

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