Expanding Lean into the Vertical

Laurie El-Naggar North America Customer Service Operations

Capability Leader Procter & Gamble

Procter & Gamble

P&G Customer Service

Operations

Part of Supply Network Operations

2 Sub-Organizations in North American CSO

Order Management

• Order Acquisition

• Order Processing

• Customer Communication / Care

Accounts Receivable

• Billing

• Receivables

Shelf

Order Mgt

Accounts Receivable

Ship DC Delivery

CASH

TO

P&G

ORDERS

CSO’s Role in the Supply Chain

CSO’s Role in Service

Laurie’s Past Perception

Customer Orders = “Lightning Bolt”

BEFORE

Laurie’s Current Reality

Customer Orders = VSM with Lots of Waste!!!

AFTER

Customer “B” Order Processing VSM Current State

What To Do and Where To

Start???

Lean Is Needed For BOTH…

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Across the “Horizontal”

for Integration and Synchronization

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• Align Leadership – “This is the way we do work”

• Link to Business Strategies and Plans

• Identify Critical Daily Work

• Implement Standard Work for Critical Daily Work

• Involve All Employees

Leadership Alignment

Tactics

• Look for “Waves to Ride” and a Critical Mass

• Gain Quick Wins “Under the Radar”

• Educate Leaders with Facts from Quick Wins

• Keep It Simple…Start Small and Build

Link Business Strategies

and Plans to Lean

• Look for specific strategies that seek to:

– Improve customer results

– Solve chronic problems

– Deliver breakthrough results

• Make the connection in action plans: Lean approach to close gap

Identify Critical Daily Work

• What tells me if we had a good day?

• How do we measure if we had a good day or not?

• Which measures are highest in priority?

• What work processes deliver or enable the most important measures?

Critical Work = Standard Work

All critical work processes have:

– System Owner

– Single work process as the standard

– Built-in Quality: In process/output measures

– Scorecards

– Visual controls

– Standards management

– PDCA process for improvement

Total Employee Involvement

• All Employees Trained and Qualified

• Standard Work Methodology

• Continuous Improvement Tools

• Specific skills to execute critical daily work

• All Employees Report and Own Their Daily Results

• “Cascading checks” of critical standard work

• Ownership and problem-solving at the lowest level

• Leadership role: problem-solving coaches

Strategy Development

& Deployment

Standardization

Organizational Action Plans

Execution

Informal & Formal Checks

Individual Annual Work Plans

CSO Leadership Standard Work

Strategy Development

& Deployment Corporate Goals and Strategies

Customer Priorities

OP Model Assessment

Standardization Standard Work

Visual Management

Standards Management

Action Plan Development Organization’s Focus Areas

Business Specific Metrics

Execution Skills Development and Qualifications

VSM teams

Kaizen teams

Informal and Formal Checks “Cascading Audits” – Daily Meetings

Monthly Reviews

Quarterly Reviews

Quarterly Work Plan Reviews/Updates Individual Annual Work Plans “My” measurable contribution

“Dynamic Contract “ with Manager

CSO Leadership Standard Work

IT WORKS…The Results Are

Proof 4 Year Journey Comparison:

• Costs and Headcount – 40%

• Service Level – 35%

• Order Quality Interventions - 21%

• Employee Satisfaction – 15% (benchmark for P&G)

• Customer Service Support – #2 vs Competition

Lean Is Needed For BOTH…

Cu

sto

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ion

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Man

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ctu

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tes

Sup

plie

rs

Qu

alit

y O

rgan

izat

ion

Cu

sto

me

r Te

am

Across the “Horizontal”

for Integration and Synchronization

Cu

sto

me

r Sh

elf

In the

“V

ert

ical”

for

Capa

bili

ty a

nd S

tabili

ty

Cu

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miz

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Expanding Lean

Into the Horizontal

• Modify tools to “learn to see” and collaborate

• Apply PDCA concepts from “the vertical”

• Build capability in all “verticals”

Synchronization Tool

VSM for the Office • Leverage Applicable Metrics for Information Flow

– Process Time

– Delay Time

– Lead Time

– Complete and Accurate

• Identify and Eliminate Work Flow Problems

• Quantify and Meet Requirements for both End Use and Internal Customers

REFLECTION

• What specifically exists in your culture today to enable sustained success in delivering your business results? What could be improved?

• How would focus on building a lean culture and capability throughout both “the vertical” and “the horizontal” make a difference in the results you are achieving today?

QUESTIONS?

Thank You!

Please complete the session survey at:

www.ame.org/survey

Session: ThP/46

Expanding Lean into the Vertical

Laurie El-Naggar

Procter & Gamble

elnaggar.lm@pg.com