Abstract

Summary form only given. There has been considerable success in applying lean techniques to manufacturing. Lean techniques focus on reducing cycle time, reducing defects, reducing inventory, reducing travel time for parts through sequential operations and in general reducing waste and nonvalue added activity. Lean techniques can also he applied to services, although not always in the same way as applied to manufacturing. For example, a manufacturing process may require an inventory of parts. Excessive inventory results in unnecessary storage costs, unnecessary time value of money costs for purchase before need, risk of obsolescence or risk of spoilage for perishable items. A service function may not have a parts inventory, but it can have a backlog of service requests. It does not take warehouse space to hold that backlog, but it does impact customer relations. In the case of both internal and external customers, unfilled requests impact that customer's business. In the case of external customers, unfilled requests impact revenue if you are not paid until the request is completed. At Boeing, a method called Accelerated Improvement Workshop (AIW) has been used to implement lean techniques. Most AIWs have been in the manufacturing area. However, a few have been tried in other areas. Results achieved are shown in a table. Lean techniques can be applied to services. Process improvements can be made and sustained. When the large increase in workload (without increase in staff) is considered, sustaining a small gain over the baseline is significant.

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