Lean Service

Read an interesting post on Lean Service , a concept which draws parallel with Lean Manufacturing , popularised from Toyota experience. In the manufacturing world, complexities arise when disruption in smooth flow arises. Historically , and several decades ago, what was manufactured got sold. It was a sellers market. With progress in technology, skills and processes, people got smarter and consumers were enticed with better offerings. Take, our own automotive industry, when Maruti came in , on road performance far exceeded the expectations of the then genre of Indian cars. Those no longer exist. The point here , is about a new standard of product performance. Likewise, when the automotive industry in the west was struggling with large sedans , Toyota showered the market with a choice of colours and options, tailoring more closely to the buyers needs. This was possible with Lean Manufacturing system which introduced the concept of waste in processes and elimination of the same. Not only did it result in improved cycle time but also resulted in higher quality due to simplicity of processes and was able to meet product variation with minimal alteration of processes.

So, how does this relate to Lean service in a Services business ? Experience , shows that processes which were simple were made complex with the advent of IT. More than 93% of processes generate information as outputs with only 7% of process touching the client. So , when processes are developed with IT in mind , cycle times can go off the roof or result in policy level contradictions that can get resolved only by escalation processes. Each of which will be disguised seperately under approval sub-processes. Try changing an insurance plan or even redeem your credit card points , airline mileage points etc., and you would have your answer. Consider an alternate scenario, as I experienced in Walmart , where the touch point of only one interaction, resulted in a product replacement in less than 5 minutes with minimal documentation and process steps. The process consisted of the following :-acceptance of the product with proof of purchase, reference of the new product, and raising of the new invoice. Routine steps, except that a floor guide pointed out the appropriate counter resulting savings in time and spinning around across multiple locations. Customers do not wish to pay for flab. They desire value and soon, we will see times when services will be redefined to meet customer demands for increased performance. Pre-Paid mobile charge card is a great example of such new initiatives. This is a classic case of learning and performance of demonstrated capability.