Workflow in Lean administration: A practical example
It’s a common comment: Lean is nice for production departments where you can move physical stuff around. After all, that’s where you can actually create “junk,” which affects the efficiency of the department. Stuff gets lost, there are waiting times in the warehouse … and that’s where Lean can help. But good news: administrative processes can also benefit greatly from Lean methodologies. I’d like to share with you a recent experience in this regard.
The situation
At a manufacturing company with 20 employees in the Netherlands, part of a larger multinational, the rule is that each local branch submits its monthly report to headquarters no later than the fifth of the month. However, this reporting depends on data from various departments, such as sales, logistics and production. The local organization collected this information with a variety of Excel and Word files. At the end of the month, it took the accounting department no less than four full working days to compile the necessary data into a usable report for headquarters!
The waste
In consultation with all involved, we mapped out the entire process from data collection to monthly reporting. It soon became clear that there were six (!) different Excel files in circulation, often containing largely the same information. Data was being copied from one file to another and sometimes manually, which proved error-prone. Different departments also used different codes for the same terms. This unnecessary complexity created input errors that sometimes did not come to light until weeks later, which made tracing the cause difficult. This whole process was a clear example of waste – something Lean is trying to eliminate.
The workflow
After an open and honest analysis of the problems, all involved gained insight into each other’s challenges. This quickly led to a shared desire to structurally improve the process. We started with an inventory of essential information: what was really needed to support the monthly reporting? In what form and when? This was immediately a useful “5S exercise” (Sort, Arrange, Clean, Standardize and Stand): many input fields in the Excel files turned out to be unnecessary, and we used a common code list instead of multiple lists. The simplified Excel template was born…. almost.
Digital transformation and information management
Although Excel is powerful, the team realized that having three departments working on the same file simultaneously would not be a Lean solution. This would lead to wait times, phone calls to release files, and the risk of data loss due to overwrites – all forms of waste and sources of error. So the team decided to implement a digital system in which each department could enter its data, which was automatically stored in a database and immediately available to administration. The digital transformation offered a real breakthrough here: by digitizing processes and streamlining information logistics centrally, monthly reporting became simple and error-free.
The data was processed in real-time and accounting was able to provide immediate feedback and correct any errors. This information management-centered solution not only improved data accuracy but also encouraged more efficient collaboration between departments.
The result
The result was impressive: the monthly report, which used to take four full working days and even take vacations, was now ready within two hours.
Lean administration
This practical example shows that Lean principles are also valuable within administrative and information-intensive environments. The idea that Lean is only useful for production is thus outdated. Information flows can also be made Lean, by eliminating waste in work processes and data transfer. By applying the right digital transformation and effective information management principles, administrative departments can streamline their processes and operate significantly more efficiently.
Still not convinced? Try the “paperclip method”: Follow an information piece that has to go through several departments. Experience the workflow for yourself and find out what can be improved. Sometimes the solution is simple-such as replacing a staple with a paperclip-but through small steps like these, an organization can realize big improvements in efficiency and collaboration.
Wondering how Lean methodologies and digital transformation can help your organization? We’d love to help you get started.
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