Professional Documents
Culture Documents
• This Lean Study was carried out during April – July 2008
targeting different industries within the service sector and
service related processes at manufacturing companies, e.g.
procurement, sales and business development units.
The study aims to get a “pulse check” regarding state-of-
the-art development of Lean at selected service companies
in the Nordic and Japan.
The study is based on 44 interviews with key persons at the
companies, e.g. business developers, process owners, Vice
Presidents, Lean Managers etc.
Key findings
• 79% of the companies working with Lean said to have achieved bottom line results, compared to 47% of the companies working
with other continuous process improvements.
• 53% of the companies currently not working with Lean are planning to implement Lean in the future.
• Lean is regarded as a mean to achieve cost efficiency and customer satisfaction.
• Lean is a well recognized concept in the Nordic Service industry: 95% are familiar with Lean as a concept.
• Various Lean tools are used when working with Lean, 5 S and Value Stream Mapping being the most common tools.
• Main challenges when working with Lean incorporate having the right leadership, creating a sustainable employee commitment,
having the right communication, establishing clear work process, roles & a toolbox as well as linking the bottom line effect to the
Lean work.
Î About Cordial
Î About the study
Î A few words about Lean
Î Results of the Lean Study 2008
Î Conclusions and reflections
Î Contact information
Business Architecture
Î Design of flexible business models
Î Service oriented business and IT-architecture
Î Structure and control for efficient IT
Î Lean Proof-of-Concept for a selected Companies already working with Lean face various
process/area challenges. Cordial can offer the following support:
3. Establish
4. Remove waste
benchmarks and
and transform
ideals
Re-calibrate Re-visualize
New needs
Lean Educate
Thinking
1. Understand - coaching leadership 6. Educate and
customer needs and culture train everyone
Motivate
Investors/
owners
Large
Companies
Growth
Companies
Public
Authorities
Î About Cordial
Î About the study
Î A few words about Lean
Î Results of the Lean Study 2008
Î Conclusions and reflections
Î Contact information
Definition of
Lean in this Î Continuous process improvement work based on Lean principles or Lean inspired methods
study
Comments:
Î Focus lies on the service sector
and service related processes at
7% manufacturing companies, e.g.
5% 15% procurement, sales and
Healthcare
Telecom & Media
business development units
Retail Î The interviewed companies
11%
represent 11 different industry
Public organizations
segments
14% IT Consulting
Î At each company, Cordial has
Transport & Logistics interviewed key persons, e.g.
7%
Manufacturing business developers, process
Construction owners, vice presidents, Lean
7% Banking
Managers etc.
11%
Energy
7% Hospitality & travel
7% 9%
Total: 44 companies
Î About Cordial
Î About the study
Î A few words about Lean
Î Results of the Lean Study 2008
Î Conclusions and reflections
Î Contact information
Place the customer as • Always doing or making the choices that are best for
number 1 the customer
Overproduction Performing a task that a colleague is going to Producing too much information related to a given
perform anyhow purpose
Overwork Over-working delivery to a new customer Performing too much research for a given objective
Transports Traveling to different meetings instead of e.g. using Information transport through long office turnaround
telephone conferences time, several authorization levels etc
”Lean
”Lean Management” ”Lean Services” Manufacturing”
735 000 17 200 000 2 800 000
Î About Cordial
Î About the study
Î A few words about Lean
Î Results of the Lean Study 2008
Î Conclusions and reflections
Î Contact information
Comments
Are you familiar with the concept of Lean? Î Most of the respondents are
familiar of the Lean origin from
5% the manufacturing industry and
Toyota
Î The curiousness for Lean
services is high in general
among the respondents
95%
Total: 44 companies
No
65%
Comments
Î Nearly all companies (98%) claim to work with continuous improvements (not always expressed as Lean)
Î A majority (65%) work with continuous process improvements based on Lean principles/methods
Comments
Are you planning to work with Lean in the future?
Î Out of the 15 companies (35%)
that doesn’t work with Lean,
53% plan to start work with Lean
in the future
Total: 15 companies*
53% of the companies not currently working expressed with Lean are planning to implement Lean in the
future
What’s the main reason(-s) for your Lean work?* What’s the main reason(-s) for your continuous process
improvements work?
12%
12% 32%
0%
30%
Cos t ef f i c i enc y
Cost ef f iciency 8%
16% I nc r eas ed c us t omer f oc us
Incr eased cust omer f ocus
St r ong c ompet i t i on
St r ong compet it ion
0%
Qualit y 16% Qual i t y
All of t he above A l l of t he abov e
Ot her
12% 20% Ot her
42%
Comments
Have you achieved bottom line effects due to your work with continuous process Î Cost efficiency and increased
improvements? revenues are some examples of
success gained through using
19% continuous process
improvements work
Yes
Total: 43 companies*
67% have achieved bottom line results from their work with continuous process improvements
47%
Yes
No
Yes
Do n't kno w/do n't measure
53% No
Don't know/don't measure
79%
0%
Comments
Î Among the 29 companies working with Lean, 79% have seen bottom line results
• Out of the 21% who hasn’t seen bottom line results, some have not yet started to measure and some don’t measure fiscal
results
Î Among the companies working with general continuous process improvements only 47% achieved bottom line results
79% of the companies working expressed with Lean achieved bottom line results compared to 47%
working with ordinary continuous process improvement work
Comments
How does your employees react to continuous process improvements?* Î A vast majority, 84%, claims that
the continuous process
improvement work has been
positively received by the
employees
Î Some companies have received
both reactions
84% * Quotations from interviews:
”If the workers are part of the
process change and have the ability
2% Positively to influence it, the change is received
much better”
Negatively ”Initially we get a negative reaction
Mixed but when the employees see that the
14% change works the reactions turn
positive”
”How the process change is received
depends on what kind of change it
Total: 43 companies**
is”
84 % believe that their employees are positive towards continuous process improvement work
* Only key persons have been interviewed except from 7 companies where in depth interviews have been made with employees
** One company does not work with continuous improvements
33%
11%
Priority on the Management agenda in Priority on the Management agenda with general process
companies working with Lean Improvements
3%
10% 20%
High
High Average
Average Low
Low 53%
27%
87%
87% consider their continuous process improvement work to be highly prioritized by management in
Lean companies compared to 53% in companies working with general process improvements
Comments
How extensive is your Lean work? Î The most common processes to
start with are core processes,
52% product & service development
48% and administrative processes
Total: 29 companies*
… but many plan to expand their process improvement work to other units/the entire organization
utilizing the “power of successes”
Comments
Do you follow a given method within your process improvement work? If yes, which one? Î More than 60% are using Lean
tools
64% • Value Stream Mapping
(VSM) & 5S are the most
5S common tools
Number of responses
64 % of the companies working with a given method in their process improvement work choose Lean
basic tools
* Not all companies work with Lean, possible to chose multiple alternatives for the ones who did reply on this question
Establishing clear work process, roles & a toolbox Communication Strategy & Plan
Î A well thought-through communication plan (top-down
Î To establish proper structure (roles, responsibilities and approach), connected to a stakeholder analysis, will
mandate) before, during and after the Lean implementation in minimize resistance and maximize acceptance within the
order to achieve permanent effects. organization.
Î To know which tools to use and how to apply them effectively
in the work process
Let the customers be one of the driving forces
Î Continuous improvements should not be driven by
Linking the bottom line effect to the Lean work customer complaints but rather by a understanding of
Î To be able to link the process KPIs to the bottom line effect customer needs.
resulting from the Lean work.
Î 64% of the companies working with continuous process improvement use methods
commonly recognized as Lean tools
• 5S and VSM are the most common tools
VSM and 5S are
the most Î 28 % of the companies use Six Sigma method
commonly
used Lean
tools
Î About Cordial
Î About the study
Î A few words about Lean
Î Results of the Lean Study 2008
Î Conclusions and reflections
Î Contact information
Process oriented
All-
This approach is about streamlining
embracing prioritized processes which are
approach considered to generate the largest
impact on the overall performance.
All-embracing
This approach is about establishing a
plan for how the total enterprise shall
be transformed in order to increase
overall performance.
Early
Enterprises that have worked with
LEAN and process improvement less
than one year.
Process Mature
oriented Enterprises that have worked with
approach LEAN and process improvement
more than five years.
The common denominator is to increase customer orientation and to obtain cost rationalization.
Î In recent times the concept of Lean has found its way in the service industry probably because the challenges
facing the service industry are on an overall level similar to those in the traditional manufacturing industry. The
service industry has, by looking at the manufacturing industry, realized the great potential that Lean can
release within the organization, helping it to stay competitive on a increasingly harsh market by focusing on
customer value and reducing waste. Waste typically found in the service industry relates to the collaboration
abilities between its value network, e.g. customers, suppliers and partners.
Î The majority of the companies state that they have achieved concrete results while working with Lean.
Moreover, the study reveals that companies experience that it is more likely to achieve bottom line results when
working with Lean, rather than working with continuous process improvements. The reason for the strong
‘belief’ in the payoff by Lean might be put in relation to the rather tedious process work conducted by major
companies in the 80s and 90s when BPR was introduced in the Nordics.
Î In order for the employees to get involved and stay involved in the Lean work, the companies need to develop
a common and company specific Lean language in order to provide the organization with a positive vocabulary
that engages the employees. Crucial for the success is to keep the employees motivated, and thus the need to
answer the employees’ question of “What’s in it for me?”. Kaizen is in Japanese business context often seen as
a peer together with investment. Kaizen together with continuous investment in company resources and
competencies, wherein the growth and development of employees is an important part, increases the chances
for the sustainability of Lean programs.
Î It is a major challenge for the companies to make Lean imbedded in the company culture. A commonly held
view is that current organizational culture is rather acting as a barrier than a possibility when it comes to fully
implementing a culture that supports continuous improvements. This suggests that companies working with the
implementation of Lean need to also think about how to support the ongoing Lean work partly by incorporating
the cultural dimensions, partly by actively working with management of change and building a learning
organization. The preferred leadership style holds key elements such as trust and coaching – a culture which
allows employees “to raise their hands to identify mistakes made” without fear.
Î About Cordial
Î About the study
Î A few words about Lean
Î Results of the Lean Study 2008
Î Conclusions and reflections
Î Contact information
Göteborg sanja.miteva@cordial.se
Rosenlundsgatan 3 +46 706 10 45 33
411 20 Göteborg
Tel: 031 711 04 50
Fax: 031 750 90 99 Responsible for Lean at
Cordial:
Linda Bradley
Tokyo linda.bradley@cordial.se
3-31 Kioicho n-KI1, Chiyoda-ku +46 708 50 55 22
Tokyo 102-0094 JAPAN
Tel: +81 (0)3 3556 0481 (building reception) +81 80 5512 9722 (Japan)
www.cordialasia.com
www.cordial.se