U sing LEAN to enrich SME ’ s views - creating sustainable value using known techniques and ICT!!! Jørn W.Phigalt CEO – ITM Europe Baltic IT&T 2007, Riga,

UUsing sing LEANLEAN to enrich to enrich SMESME’s’s views views - creating sustainable value using known techniques and ICT!!!- creating sustainable value using known techniques and ICT!!!

Jørn W.PhigaltJørn W.PhigaltCEO – ITM Europe

Baltic IT&T 2007, Riga, LatviaBaltic IT&T 2007, Riga, Latvia

ITM Europe Baltic IT&T 2007Baltic IT&T 2007 Riga, LatviaRiga, Latvia

TPSTPSToyota Production System

TQMTQMTotal Quality Management

LEANLEANTrimming a process flow

Jim Womack og Daniel Jones

QQualityuality C Circlesircles

CRMCRMCustomer RelationShip Management

ERPERPEnterprise Resource Planning

LLEAN in a EAN in a BBusiness usiness CConcept for oncept for SMESME’s’s

SMESME’s ’s BBusiness usiness OOpportunitypportunity

CLMCLM - - CCustomer ustomer LLifecycle ifecycle MManagementanagement


CCustomer ustomer LLifecycle ifecycle MManagementanagement……

TThis is the his is the MMost ost IImportant mportant PPerson in your erson in your LLifeife

HHe e GGenerates your enerates your IIncome, your ncome, your PProfit, your rofit, your LLifeife

IIn principle he n principle he ONLYONLY pays for pays for VValuealue

Your Paying CustomerYour Paying Customer

He will not pay for your mistakes, your wrong decisions, your lack of He will not pay for your mistakes, your wrong decisions, your lack of efficiencies, your discrepancies on the stock, your loss on debtors, your neglect efficiencies, your discrepancies on the stock, your loss on debtors, your neglect

or your investment in any activities that is not linked to improvement of your or your investment in any activities that is not linked to improvement of your business – THAT HE CANNOT BENEFIT FROMbusiness – THAT HE CANNOT BENEFIT FROM


CCustomer ustomer LLifecycle ifecycle MManagementanagement……

Imag

e &

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g

TotalTotalEvaluationEvaluation

Bu

sin

ess

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elo

pm

ent

Marketing

SalesOperation

CustomerOrdersPurchase &

Delivery

Pro

du

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alit

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Logi

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CustomerService

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Value EnrichmentValue Enrichment


LEANLEAN in practical use… in practical use…

Put emphasis on value creation for CustomersPut emphasis on value creation for CustomersFocus on what the customer will pay for and how the activity you will Focus on what the customer will pay for and how the activity you will perform will give him benefitsperform will give him benefits

Map the value stream and reduce wasteMap the value stream and reduce wasteFocus on where there is activities that is old or build without adding Focus on where there is activities that is old or build without adding anything to the customers value experience. Waste is in many cases not anything to the customers value experience. Waste is in many cases not goods but timegoods but time

Create flow – the Customer process shall be smoothCreate flow – the Customer process shall be smoothAvoid redundancy in the process and that staff handle the same item Avoid redundancy in the process and that staff handle the same item again-and-again, and limit the distance to the end-productagain-and-again, and limit the distance to the end-product

Build focus – produce only the necessaryBuild focus – produce only the necessaryTry to avoid ‘mini warehouses’ in the organization – it ties up capital and Try to avoid ‘mini warehouses’ in the organization – it ties up capital and are time consumingare time consuming

Implement a culture – hunting for improvementsImplement a culture – hunting for improvementsSecure that there is an on-going process that tracks all ‘non-value’ Secure that there is an on-going process that tracks all ‘non-value’

creating activities and correct them (Kaizen)creating activities and correct them (Kaizen) Design back-office solution that reflect true CustomerShipDesign back-office solution that reflect true CustomerShip


TTraditional raditional LEANLEAN PPerspectiveerspective……

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Delivery

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taffThis is where weThis is where weis lead to believeis lead to believe

that LEAN can workthat LEAN can work

This is where weThis is where wesee that LEANsee that LEAN

can be used effectfullcan be used effectfull


ITIT and and LEANLEAN PPrinciplesrinciples……

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Delivery

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stic

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ent

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pp

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taffThis is where weThis is where weis lead to believeis lead to believe

that LEAN can workthat LEAN can work

This is where weThis is where wesee that LEANsee that LEAN

can be used effectfullcan be used effectfull

This is whereThis is whereICT TechnologyICT Technology

can give benefitscan give benefits


IImplementing LEAN based IT…mplementing LEAN based IT…

Chosen a too difficult or low-impact project Chosen a too difficult or low-impact project

Neglecting administrative proceduresNeglecting administrative procedures

Training, thinking, evaluating – not doingTraining, thinking, evaluating – not doing

Missing Customer Lifecycle Management focusMissing Customer Lifecycle Management focus

Improvements methodology not in placeImprovements methodology not in place

Cultural changes not includedCultural changes not included

ProcessProcessWalk-throughWalk-through

Faults..Faults..


Info

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ven

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Pr o

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ct,

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Web-restricted access

Order Confirmation

Offerings and Supply dialogues

Evalu

ati

on

as

Part

ner

Information

packageto Leads

Upgrade toProspekt

Tra

de C

on

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sPayment Procedure

Han

dlin

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r ders

Sh

ipp

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In

str

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on

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Seri

al N

um

bers

Tr a

ckin

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um

bers

Identifying Potential Partners

PartnerShip Demands & Issues

Partner Product Inspection

Complaints

Warranty and Service

Lost

Marketing Development

Invoic

ing

Pr i

ces a

nd

Paym

en

t Term

s

Regular Partner Meetings

Delivery

In

f orm

at i

on

Product Development

Ordering Productsand Services

Knowledge TransferWeb-site Informationto Leads. prospects

PartnerSearch MeetingsLeads OwnInterest

PProcess walk-through for rocess walk-through for PPartnerartnerSShips…hips…


EExamples on Common Area’s of wastexamples on Common Area’s of waste

Returns Returns – (wrong ordering, wrong knowledge, wrong handling,

wrong shipment) TIME – COSTS – INSPECTION – DELAY – COMMUNICATION

– Knowing the customer’s purchase pattern (CRM)

Service calls due to poor qualityService calls due to poor quality– (saving money on purchases, discount purchase)

ARGUMENTATION – TIME – COST – STOPS – NEGATIVE

– Expectation management, customer handling (CRM)

To conclude…To conclude…

LEAN can be used by everyone

It is a set of logical decisions thattakes of in the complex world of the customer.

The key question is always

WHAT WILL HE PAY FOR….

Documents

U sing LEAN to enrich SME ’ s views - creating sustainable value using known techniques and ICT!!! Jørn W.Phigalt CEO – ITM Europe Baltic IT&T 2007, Riga,