An introduction to lean service at Areva T&D FSSC
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This session was presented at '15 Secrets to Shared Services Success" conference organised by sharedserviceslink.com. To find out more about forthcoming conferences check http://www.sharedserviceslink.com
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An introduction to lean service at Areva T&D FSSC
- 1. An introduction to T&D FSSC Lean Service Marcus Pinnegar & Laetitia Simpson London, March 18th
- 2. Agenda Introduction Lean Foundation Methodology Continuous Improvement Results & Key Success Factors 2 Areva T&D FSSC Lean Service –– Copyright Areva T&D 2
- 3. Introduction to Areva & Areva T&D 2/3 Nuclear Countries 100 Employees* 25 248 Sales revenue* €4.33 billion 1/3 Transmission & Distribution Operating Income* €397 million *2007 figures 3 Areva T&D FSSC Lean Service –– Copyright Areva T&D 3
- 4. Introduction to Areva T&D FSSC Organisation – Northern Europe example Locations CFO 10 Regional VP Finance Employees Finance Systems & Director process 400 M.Pinnegar J.Lambert Market Share North Europe Global FSSC FSSC Manager Director 70% of 250 T&D Units Main activities in all FSSC Total costs Accounts payables €12 millions T&E Accounts receivables – cash application General Ledger, Fixed Assets AP invoices Treasury 0.8 million + in some FSSC : C&Collection, Reporting 4 Areva T&D FSSC Lean Service –– Copyright Areva T&D 4
- 5. Lean Foundation - Commitment from Management 5 Areva T&D FSSC Lean Service –– Copyright Areva T&D 5
- 6. Lean Foundation - Lean Culture Training « Forget any pre-conceived ideas." Shigeo Shindo 6 Areva T&D FSSC Lean Service –– Copyright Areva T&D 6
- 7. Lean Service Roadshow 06-07 NOV 06 OCT 06 OCT 06 JUL 07 AUG 06 FEB 07 JAN 07 DEC 06 SEP 06 OCT 06 JUL 07 NOV 06 OCT 06 JUL 06 Lean Service Training + workshop achieved 7 Areva T&D FSSC Lean Service –– Copyright Areva T&D 7
- 8. Lean Foundation – Genba, Genbutsu, Genjitsu “Genshi Genbutsu” “Go & See for yourself” Kiichiro Toyoda “If we can’t measure it, we can’t improve it” Lord Kelvin 8 Areva T&D FSSC Lean Service –– Copyright Areva T&D 8
- 9. Value Stream Mapping – Example 1/2 Supplier Supplier Project Site Manager Project Site Manager Leadtime Receive Material Issue Good Receipt Check Quality Inspection Report 5 days Receptionist Receptionist Receive mail if courrier Sourcing Secretary Sourcing Secretary “receipt date” Sort Invoice by day Prepare & Print Excel 21 First Map & Measure based sheet of invoices Days Sourcing Manager Sourcing Manager on interviews Accounts Executive dispatch AP in office, AP Accounts Executive Collect Invoice & Post in SAP & write Post in SAP & write Check documents Check documents Sourcing Sourcing Internal Control Check as per dispatch instruction posting N° posting N° Check weekly in SAP Check weekly in SAP Assessement, data extracts OK No the payments due the payments due Average Yes Clear payment in SAP Clear payment in SAP 6 10 from system … GR in SAP Write Cheque N˚ Write Cheque N˚ days Parking days PA Prepare invoice Create Cheque in SAP Create Cheque in SAP covering letter Print Cheque & Print Cheque & Sign PA only Sign PA only Sign attach with doc attach with doc Unit FSSC Unit FSSC Sign PA only Sign PA only Sourcing Manager Sourcing Manager Check & Sign Unit FC Unit FC Sign Cheque Sign Cheque Project Manager Project Manager Approve & Sign Senior Manager Senior Manager Areva T&D FSSC Lean Service –– Copyright Areva T&D Sign Cheque Sign Cheque 9 9
- 10. Value Stream Mapping – Example 1/2 Supplier Supplier Project Site Manager Project Site Manager Leadtime Receive Material Issue Good Receipt Check Quality Inspection Report Eliminate Make GR as 5 days Receptionist Receive mailsoon as Receptionistregister if courrier possible Sourcing Secretary Sourcing Secretary Sort Invoice by day “receipt date” Remove Prepare & Print Excel this list sheet of invoices 21 Days Sourcing Manager Sourcing Manager Collect Invoice & AP Accounts Executive AP Accounts Executive Check documents Check documents Quick dispatch Post in SAP & write Post in SAP & write posting N° posting N° Sourcing Sourcing Check as per wins dispatch instruction No Check weekly in SAP Check weekly in SAP the payments due the payments due OK GR preparation Average Yes Clear payment in SAP Clear payment in SAP 6 10 by Reception area GR in SAP Eliminate Parking Remove Write Cheque N˚ Write Cheque N˚ register days days parking PA Create Cheque in SAP Prepare invoice Create Cheque in SAP Reduce these covering letter control to min. Print Cheque & Print Cheque & Sign PA only Sign PA only Sign attach with doc attach with doc ⇒Target 100% PO Remove invoices – sign PO Unit FSSC Unit FSSC Sign PA only this control Sign PA only Sourcing Manager Sourcing Manager Check & Sign ⇒ Control of remaining non PO Unit FC Sign Cheque Sign Cheque Project Manager invoices & invoices Approve & Sign Unit FC Project Manager with variance vs PO Senior Manager Sign Cheque Sign Cheque 10 Senior Manager Areva T&D FSSC Lean Service –– Copyright Areva T&D 10
- 11. Lean Foundation - Standard “Where there is no Standard there can be no Kaizen” Taiichi Ohno C D A P Standard 11 Areva T&D FSSC Lean Service –– Copyright Areva T&D 11
- 12. 5S – Standardize offices » SEIRI // SORT – classify between necessary and SEIRI SORT – classify between necessary and unnecessary unnecessary » SEITON // STORE – keep needed items in the right place for SEITON STORE – keep needed items in the right place for easy retrieval easy retrieval » SEISO // SHINE – keep your office clean SEISO SHINE – keep your office clean » SEIKETSU // STANDARDIZE – SEIKETSU STANDARDIZE – Set as a standard the first 3S Set as a standard the first 3S » SHITSUKE // SUSTAIN – Make a habit of maintaining SHITSUKE SUSTAIN – Make a habit of maintaining established procedures established procedures 12 Areva T&D FSSC Lean Service –– Copyright Areva T&D 12
- 13. Why 5S is key ? Employee Satisfaction EHS, Friendly environment Full Standardization for more flexibility =>efficiency Archiving Work station Cabinets Mailing room Visual Management Visibility of non standard Dashboards
- 14. Continuous improvements Kaizen “A journey of a thousand miles start with a single step” Confucius 14 Areva T&D FSSC Lean Service –– Copyright Areva T&D 14
- 15. Continuous improvement Methodology Satisfaction Survey FSSC Kaizen Metrics Workshop Lean Service Actions 15 Areva T&D FSSC Lean Service –– Copyright Areva T&D 15
- 16. Lean Service Temple LEAN LEAN SERVICE SERVICE On Time Delivery On Time Delivery 0 Defect 0 Defect POKA POKA FMEA FMEA YOKE YOKE MULTISKILLS MULTISKILLS VISUAL VISUAL MATRIX MATRIX CONTROL CONTROL KAIZEN KAIZEN STANDARD : VALUE STREAM MAPPING, 5S STANDARD : VALUE STREAM MAPPING, 5S SAN GEN SHUGI // TEAM WORK SAN GEN SHUGI TEAM WORK LEAN CULTURE LEAN CULTURE MANAGEMENT COMMITMENT MANAGEMENT COMMITMENT 16 Areva T&D FSSC Lean Service –– Copyright Areva T&D 16
- 17. What about Results ? FSSC China Pilot BEFORE AFTER Office Lay out % staff satisfied 43% 80% AP Posting Lead time 22 d. 12 d. Average nb of days T&E claims payment Lead time 12 d. 4 d. Average nb of days AP+T&E documents / p. / 2 500 7 500 year 17 Areva T&D FSSC Lean Service –– Copyright Areva T&D 17
- 18. What about resources needed to be successful? T&D experience 07/06 07/07 07/08 Kick Off »Lean Service Lean Service Roadshow Roadshow »1 FTE 1 FTE »FSSC China Pilot FSSC China Pilot »1 FTE Lean facilitator 1 FTE Lean facilitator »FSSC India Pilot FSSC India Pilot »1 FTE Lean facilitator 1 FTE Lean facilitator Lean Service deployment Lean Service deployment 18 Areva T&D FSSC Lean Service –– Copyright Areva T&D 18
- 19. What could have been done differently ? 12 months 6 months Kick Off »FSSC China Pilot FSSC China Pilot »FSSC India Pilot FSSC India Pilot »Lean Service Lean Service Roadshow Roadshow Lean Service deployment Lean Service deployment 19 Areva T&D FSSC Lean Service –– Copyright Areva T&D 19
- 20. Key Success factors Identify « burning platforms » and be opportunistic Don’t try to build the ultimate programme Make it a « workfloor » tool not a HQ programme Identify quick wins and standardize fast Sell once first success come Step by step improve 20 Areva T&D FSSC Lean Service –– Copyright Areva T&D 20
- 21. Conclusion “Improvement has no limit” C D A P Standard 21 Areva T&D FSSC Lean Service –– Copyright Areva T&D 21