Lean consulting for Service Industry

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Two management models in the service industry:

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1. Central planning and assignment of orders - PUSH approach

2. Just In Time model - PULL approach

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1. Central planning and assignment of orders - PUSH approach

The main feature of this approach is the central receipt and assignment of work orders to others according to competencies and availability. This model requires that central employees know very well the competencies and availability of other employees, or if they do not know then assign to other organizations which in turn assign to their employees. This approach has several disadvantages:

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(1) As the number of orders increases, so does the number of central dispatchers

(2) Secondary dispatching creates additional time losses

(3) Central "scheduling" is not a reliable god of unpredictability of the duration of execution and travel

(4) Unknown availability and competencies of external contractors.

(5) Uneven loading due to the unpredictability of the species requires

(6) The problem of planning and distribution of stocks internally and to external

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This model is more common than model 2. because there are applications on the market, and many (unjustifiably) think that they have better execution control. It can be successful for companies that mainly use their own multi-functional employees, their own fleet and inventory management. The moment external partners are included in the supply chain, the model shows shortcomings, because it is not possible to monitor the availability and competencies of the partners.

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2. Just In Time model - PULL approach

The main feature of this model is the automatic (extremely manual) receipt and creation of work orders that the final executor independently takes over for execution in accordance with his competencies. Each team independently arranges time with the end user and creates their own "scheduling", and in case of need for travel, "routing". Filling teams with materials and equipment can be flexible and "on the go” and based on the "routing" of teams visible on the application. to the other team by taking over the services for execution, each team automatically identifies its competencies to the central supervision. With an adequate application integrated with the systems of external partners, Central Supervision can easily monitor the availability, competencies, efficiency, and quality of all teams, whether internal or external.

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Model preconditions:

(1) The introduction of the model requires organizational, process and changes in remuneration

(2) It takes time to adjust to this mode

(3) The introduction of the model is not possible without adequate application (poor choice on the market)

(4) Requires a flexible logistics system for spare parts and materials

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This model reduces time on inventory tracking, people administration, competencies, dispatching and other administrative activities without added value for the customer. If implemented properly, team efficiency increases, and employee monitoring becomes unnecessary. Each team represents a Mini Profit Center that generates revenue through greater efficiency and quality based on customer ratings. The result is greater efficiency per team (number of executed orders in the period), competitiveness of the teams, which results in greater customer satisfaction.

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Our offer

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Based on the analysis of the client's way of doing business, the market in which he operates and the size of the client, and the growth potential, we offer 3 sets of services from which the client chooses what is acceptable for him:

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1. Improving an existing model (Central or Dynamic) using Lean methods

Within the given existing frameworks, we will reduce inventory costs, increase efficiency by standardizing routines and automating processes, and increase efficiency by other Lean methods.

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2. Transformation from Model 1 (Central) to Model 2 (“Just In Time”) according to Lean principles

We are implementing the transformation of the service company together with partners from model 1 to model 2 in a "soft" way with a constant increase in efficiency and cost reduction. Together with the client, we communicate changes to employees and external partners. Ultimate goal is to achieve Just On Time.

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3. Introduction of an application for the "Just In Time" model by introducing Lean processes

In order for the "Jaus In Time" model to give the expected results, it is necessary to select and introduce an adequate application. We offer driving changes to the client's existing application (if there is potential) or creating your own application.

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