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'''Lean services''' is the application of [[lean manufacturing]] [[Methods of production|production methods]] in the [[service industry]] (and related method adaptations). Lean services have among others been applied to US health care providers<ref>{{cite journal | last=Ker | first=Jun-Ing | last2=Wang | first2=Yichuan | last3=Hajli | first3=M. Nick | last4=Song | first4=Jiahe | last5=Ker | first5=Cappi W. | title=Deploying lean in healthcare: Evaluating information technology effectiveness in U.S. hospital pharmacies | journal=International Journal of Information Management | publisher=Elsevier BV | volume=34 | issue=4 | year=2014 | issn=0268-4012 | doi=10.1016/j.ijinfomgt.2014.03.003|url=https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2466789_code2224115.pdf?abstractid=2430838&mirid=1 | pages=556–560}}</ref> and the UK [[HMRC]].<ref name=seddon>{{cite book | last=Seddon | first=John | last2=O'Donovan | first2=Brendan | last3=Zokaei | first3=Keivan | title=Service Design and Delivery | chapter=Rethinking Lean Service | publisher=Springer US | publication-place=Boston, MA | year=2011 | isbn=978-1-4419-8320-6 | issn=1865-4924 | doi=10.1007/978-1-4419-8321-3_4 |url=https://leancompetency.org/wp-content/uploads/2015/12/Rethinking-Lean-Service.pdf| pages=41–60}}</ref>
Refers to application of [[Lean Manufacturing]] [[Methods_of_production|production methods]] in the [[Services|Service industry]] and related method adaptations.
Lean Services have among others been applied to US health care providers<ref>Ker, J. I., Wang, Y., Hajli, M. N., Song, J., & Ker, C. W. (2014). Deploying lean in healthcare: Evaluating information technology effectiveness in US hospital pharmacies. International Journal of Information Management, 34(4), 556-560.</ref> and the UK [[HMRC]]<ref>{{cite journal|title=Rethinking Lean Service|date=July 2009|first1=John|last1=Seddon|first2=Brendan|last2=O'Donovan}}</ref>.
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higher education, software development, and public and professional services. Conceptually, these implementations follow very similar routes to those in manufacturing settings, and often use some of the same tools and techniques. There are, however, many significant distinctions and the same tools can be applied in different ways. -->
higher education, software development, and public and professional services. Conceptually, these implementations follow very similar routes to those in manufacturing settings, and often use some of the same tools and techniques. There are, however, many significant distinctions and the same tools can be applied in different ways. -->
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===Services===
===Services===
Lean principles have been successfully applied to various sectors and services, such as call centers and healthcare. In the former, lean's waste reduction practices have been used to reduce handle time, within and between agent variation, accent barriers, as well as attain near perfect process adherence.<ref>{{cite web |last1=Adsit |first1=Dennis |title=Cutting-Edge Methods Help Target Real Call Center Waste |url=http://www.isixsigma.com/library/content/c070611a.asp |publisher=iSixSigma.com |archiveurl=https://web.archive.org/web/20080414194658/http://www.isixsigma.com/library/content/c070611a.asp |archivedate=14 April 2008 |date=11 June 2007}}</ref>{{Request quotation|date=November 2017}} In the latter, several hospitals have adopted the idea of ''lean hospital'', a concept that priorizes the patient, thus increasing the employee commitment and motivation, as well as boosting medical quality and cost effectiveness.<ref>{{cite book|last1=Alkalay|first1=M.|last2=Angerer|first2=A.|last3=Drews|first3=T.|last4=Jäggi|first4=C.|last5=Kämpfer|first5=M.|last6=Lenherr|first6=I.|last7=Valentin|first7=J.|last8=Vetterli|first8=C.|last9=Walker|first9=D.|editor1-last=Walker|editor1-first=Daniel|title=The Better Hospital: Excellence Through Leadership And Innovation|date=2015|publisher=Medizinisch Wissenschaftliche verlagsgesellschaft|isbn=9783954662241}}</ref>{{Request quotation|date=November 2017}}
Lean principles have been successfully applied to various sectors and services, such as call centers and healthcare. In the former, lean's waste reduction practices have been used to reduce handle time, within and between agent variation, accent barriers, as well as attain near perfect process adherence.<ref>{{cite web |last1=Adsit |first1=Dennis |title=Cutting-Edge Methods Help Target Real Call Center Waste |url=http://www.isixsigma.com/library/content/c070611a.asp |publisher=iSixSigma.com |archive-url=https://web.archive.org/web/20080414194658/http://www.isixsigma.com/library/content/c070611a.asp |archive-date=14 April 2008 |date=11 June 2007}}</ref>{{Request quotation|date=November 2017}} In the latter, several hospitals have adopted the idea of ''lean hospital'', a concept that priorizes the patient, thus increasing the employee commitment and motivation, as well as boosting medical quality and cost effectiveness.<ref>{{cite book|last1=Alkalay|first1=M.|last2=Angerer|first2=A.|last3=Drews|first3=T.|last4=Jäggi|first4=C.|last5=Kämpfer|first5=M.|last6=Lenherr|first6=I.|last7=Valentin|first7=J.|last8=Vetterli|first8=C.|last9=Walker|first9=D.|editor1-last=Walker|editor1-first=Daniel|title=The Better Hospital: Excellence Through Leadership And Innovation|date=2015|publisher=Medizinisch Wissenschaftliche verlagsgesellschaft|isbn=9783954662241}}</ref>{{Request quotation|date=November 2017}}


Lean principles also have applications to software development and maintenance as well as other sectors of information technology (IT).<ref>Hanna, Julia. “[http://hbswk.hbs.edu/item/5741.html Bringing ‘Lean’ Principles to Service Industries]”. ''HBS Working Knowledge''. October 22, 2007. (Summary article based on published research of Professor David Upton of Harvard Business School and doctoral student Bradley Staats: Staats, Bradley R., and David M. Upton. “Lean Principles, Learning, and Software Production: Evidence from Indian Software Services.”. Harvard Business School Working Paper. No. 08-001. July 2007. (Revised July 2008, March 2009.)</ref> More generally, the use of lean in information technology has become known as [[Lean IT]].{{citation needed|date=June 2017}} Lean methods are also applicable to the public sector, but most results have been achieved using a much more restricted range of techniques than lean provides.<ref>{{cite book|last1=Radnor|first1=Zoe|last2=Walley|first2=Paul|last3=Stephens|first3=Andrew|last4=Bucci|first4=Giovanni|title=Evaluation of the Lean Approach to Business Management and ITs Use in the Public Sector|date=2006|publisher=Scottish Executive Social Research|isbn=0755960564|page=|url=http://www.gov.scot/Resource/Doc/129627/0030899.pdf}}</ref>{{Page needed|date=June 2017}}
Lean principles also have applications to software development and maintenance as well as other sectors of information technology (IT).<ref>Hanna, Julia. “[http://hbswk.hbs.edu/item/5741.html Bringing ‘Lean’ Principles to Service Industries]”. ''HBS Working Knowledge''. October 22, 2007. (Summary article based on published research of Professor David Upton of Harvard Business School and doctoral student Bradley Staats: Staats, Bradley R., and David M. Upton. “Lean Principles, Learning, and Software Production: Evidence from Indian Software Services.”. Harvard Business School Working Paper. No. 08-001. July 2007. (Revised July 2008, March 2009.)</ref> More generally, the use of lean in information technology has become known as [[Lean IT]].{{citation needed|date=June 2017}} Lean methods are also applicable to the public sector, but most results have been achieved using a much more restricted range of techniques than lean provides.<ref>{{cite book|last1=Radnor|first1=Zoe|last2=Walley|first2=Paul|last3=Stephens|first3=Andrew|last4=Bucci|first4=Giovanni|title=Evaluation of the Lean Approach to Business Management and ITs Use in the Public Sector|date=2006|publisher=Scottish Executive Social Research|isbn=0755960564|url=http://www.gov.scot/Resource/Doc/129627/0030899.pdf}}</ref>{{Page needed|date=June 2017}}


The challenge in moving lean to services is the lack of widely available reference implementations to allow people to see how directly applying lean manufacturing tools and practices can work and the impact it does have. This makes it more difficult to build the level of belief seen as necessary for strong implementation. However, some research does relate widely recognized examples of success in retail and even airlines to the underlying principles of lean.<ref name="ruffa" /> Despite this, it remains the case that the direct manufacturing examples of 'techniques' or 'tools' need to be better 'translated' into a service context to support the more prominent approaches of implementation, which has not yet received the level of work or publicity that would give starting points for implementors. The upshot of this is that each implementation often 'feels its way' along as must the early [[industrial engineering]] practices of Toyota. This places huge importance upon sponsorship to encourage and protect these experimental developments.{{citation needed|date=June 2017}}
The challenge in moving lean to services is the lack of widely available reference implementations to allow people to see how directly applying lean manufacturing tools and practices can work and the impact it does have. This makes it more difficult to build the level of belief seen as necessary for strong implementation. However, some research does relate widely recognized examples of success in retail and even airlines to the underlying principles of lean.<ref name="ruffa" /> Despite this, it remains the case that the direct manufacturing examples of 'techniques' or 'tools' need to be better 'translated' into a service context to support the more prominent approaches of implementation, which has not yet received the level of work or publicity that would give starting points for implementors. The upshot of this is that each implementation often 'feels its way' along as must the early [[industrial engineering]] practices of Toyota. This places huge importance upon sponsorship to encourage and protect these experimental developments.{{citation needed|date=June 2017}}


Lean management is nowadays implemented also in non-manufacturing processes and administrative processes. In non-manufacturing processes is still huge potential for optimization and efficiency increase.<ref>JANUŠKA, M., ŠŤASTNÁ, L. Industrial Engineering in the Non-Manufacturing Processes. In Proceedings of the 22nd International Business Information Management Association Conference. neuveden: International Business Information Management Association (IBIMA), 2013. s. 747-766. {{ISBN|978-0-9860419-1-4}}</ref>-->
Lean management is nowadays implemented also in non-manufacturing processes and administrative processes. In non-manufacturing processes is still huge potential for optimization and efficiency increase.<ref>JANUŠKA, M., ŠŤASTNÁ, L. Industrial Engineering in the Non-manufacturing Processes. In Proceedings of the 22nd International Business Information Management Association Conference. neuveden: International Business Information Management Association (IBIMA), 2013. s. 747-766. {{ISBN|978-0-9860419-1-4}}</ref>-->
==History ==
Definition of "Service": see [[Service]], [[Service_(business)|Business Service]] and/or [[Service_(economics)|Service Economics]]. Lean Services history, see [[Lean_manufacturing|Lean Manufacturing]] (Lean Services is based on Lean Manufacturing).


== History ==
Lean Manufacturing and Services has bee contrasted by Levitt; "Manufacturing looks for solutions inside the very tasks to be done... Service looks for solutions in the ''performer'' of the task." (T.Levitt, Production-Line Approach to Service, Harvard Business Review, September 1972) <ref>https://hbr.org/1972/09/production-line-approach-to-service</ref>.
Definition of "Service": see [[wikt:Special:Search/service|Service]], [[Service_(business)|Business Service]] and/or [[Service_(economics)|Service Economics]]. Lean Services history, see [[Lean manufacturing]].

Lean manufacturing and Services, contrasted by Levitt; "Manufacturing looks for solutions inside the very tasks to be done... Service looks for solutions in the ''performer'' of the task." (T.Levitt, Production-Line Approach to Service, Harvard Business Review, September 1972).<ref>{{Cite journal|url=https://hbr.org/1972/09/production-line-approach-to-service|title = Production-Line Approach to Service|journal = Harvard Business Review|date = September 1972|last1 = Levitt|first1 = Theodore}}</ref>
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not limited to office or administration, but also wider service situations that are not necessarily repetitive, where task time is not applicable, and where task times may be both long and variable. Service in this context could mean anything from a hospital to a university, from an office process to a consultancy, and from a warehouse to field service maintenance. "Service" refers to the service concept or product service bundle, which are all the activities that provide value to the customer along a value stream. {{citation needed|date=Feb 2020}}-->
not limited to office or administration, but also wider service situations that are not necessarily repetitive, where task time is not applicable, and where task times may be both long and variable. Service in this context could mean anything from a hospital to a university, from an office process to a consultancy, and from a warehouse to field service maintenance. "Service" refers to the service concept or product service bundle, which are all the activities that provide value to the customer along a value stream. {{citation needed|date=Feb 2020}}-->


==Method==
==Method==
Underlying method; [[Lean_manufacturing|Lean Manufacturing]].
Underlying method; [[Lean manufacturing]].


Adapted view on waste provided by Bicheno & Holweg ("waste", see [[Lean_manufacturing#Key_Principles_&_Waste|Lean Manufacturing, waste]] and [[The_Toyota_Way#The_14_Principles|The Toyota Way, principle 2]]):<ref>{{cite book | title = The Lean Toolbox | last1 = Bicheno |first1= John |last2 = Holweg | first2 = Matthias | publisher= PICSIE |year=2009 |isbn=978-0-9541244-5-8}}</ref>{{Page needed|date=January 2019}}
Bicheno & Holweg provides an adapted view on waste for the method ("waste", see [[Lean_manufacturing#Key principles and waste|Lean manufacturing, waste]] and [[The_Toyota_Way#The 14 principles|The Toyota Way, principle 2]]):<ref>{{cite book | title = The Lean Toolbox | last1 = Bicheno |first1= John |last2 = Holweg | first2 = Matthias | publisher= PICSIE |year=2009 |isbn=978-0-9541244-5-8}}</ref>{{Page needed|date=January 2019}}
# ''Delay'' on the part of customers waiting for service, for delivery, in queues, for response, not arriving as promised. The customer’s time may seem free to the provider, but when she takes custom elsewhere the pain begins.
# ''Delay'' on the part of customers waiting for service, for delivery, in queues, for response, not arriving as promised.
# ''Duplication''. Having to re-enter data, repeat details on forms, copy information across, answer queries from several sources within the same organisation.
# ''Duplication''. Having to re-enter data, repeat details on forms, copy information across, answer queries from several sources within the same organisation.
# ''Unnecessary Movement''. Queuing several times, lack of one-stop, poor ergonomics in the service encounter.
# ''Unnecessary Movement''. Queuing several times, lack of one-stop, poor ergonomics in the service encounter.
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# ''Service quality errors'', lack of quality in service processes.
# ''Service quality errors'', lack of quality in service processes.


Shillingburg and Seddon also adds the waste type "Value/Failure Demand".<ref>Seddon, John (2003) ''Freedom from Command and Control: A Better Way to Make the Work Work'', Vanguard Press.</ref>{{Page needed|date=January 2019}}<ref>Shillingburg, 2011</ref>{{Title missing|date=January 2019 and need to confirm this source}}
Shillingburg and Seddon separately provides an additional type of waste for the method:<ref>Seddon, John (2003) ''Freedom from Command and Control: A Better Way to Make the Work Work'', Vanguard Press.</ref>{{Page needed|date=January 2019}}<ref>Shillingburg, 2011</ref>{{Title missing|date=January 2019 and need to confirm this source}}
# Value Demand, services demanded by the customer. Failure Demand, production of services as a result of defects in the upstream system.
# Value Demand, services demanded by the customer. Failure Demand, production of services as a result of defects in the upstream system.
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==Criticism==
==Criticism==
[[John Seddon]] outlines challenges with Lean Services in his paper "Rethinking Lean Service" (Seddon 2009) using examples from the UK tax-authorities [[HMRC]].<ref>{{cite journal|title=Rethinking Lean Service|date=July 2009|first1=John|last1=Seddon|first2=Brendan|last2=O'Donovan}}</ref>
[[John Seddon]] outlines challenges with Lean Services in his paper "Rethinking Lean Service" (Seddon 2009) using examples from the UK tax-authorities [[HMRC]].<ref name=seddon/>
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===5S in the office===
===5S in the office===
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Critics of Lean Service have suggested that problems arise when companies try to apply "Lean principles" to areas where creativity, ability to react to rapid external changes, need to spend an extensive amount of time to convince external parties (typically lobbying) or ability to successfully negotiate are needed; and that the downsides of Lean are reduced / eliminated creativity and ability to cope with the unexpected.
Critics of Lean Service have suggested that problems arise when companies try to apply "Lean principles" to areas where creativity, ability to react to rapid external changes, need to spend an extensive amount of time to convince external parties (typically lobbying) or ability to successfully negotiate are needed; and that the downsides of Lean are reduced / eliminated creativity and ability to cope with the unexpected.


Proponents of Lean Service, however, suggest that these criticisms are a response to Lean implementations that have failed to properly understand Lean as a holistic, action based management and implementation system to provide enhanced customer value, a "Tools" mentality instead of an outcomes orientation and an inadequate knowledge of how to utilize and adapt Lean Manufacturing methods to the service environment.-->
Proponents of Lean Service, however, suggest that these criticisms are a response to Lean implementations that have failed to properly understand Lean as a holistic, action based management and implementation system to provide enhanced customer value, a "Tools" mentality instead of an outcomes orientation and an inadequate knowledge of how to utilize and adapt Lean manufacturing methods to the service environment.-->


==See also==
==See also==
* [[Lean Construction]]
* [[Lean construction]]
* [[Lean Government]]
* [[Lean government]]
* [[Lean Higher Education]]
* [[Lean Higher Education]]
* [[Lean IT]]
* [[Lean IT]]
* [[Lean Manufacturing]]


==References==
==References==
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[[Category:Lean manufacturing]]
[[Category:Lean manufacturing]]
[[Category:Customer service]]
[[Category:Customer service]]

<!-- HIDDEN NOTE, WILL INCORPORATE THIS INTO THE ARTICLE TOMORROW [note by another editor: article hadn't been edited for a year as of March 2022]
Womack & Jones (2005) for a correct use
of lean in services it is necessary to apply important
principles, such as: completely solve the customers’
problems by ensuring that all services operate and,
especially, work together, and do not waste the
customers’ time, provide exactly what they want,
exactly where and when wanted. Maister (1985)
also suggested two “service laws”: the first compares
customers expectations with their perceptions of
service delivery - if the perceived service is better
than the expectations, they turnout to become
happy customers. The second law states that the
first impression can influence the rest of the service
consumption experience. Based on this statement,
there are two fundamental variables in the relationship
of service delivery:-->

Latest revision as of 16:49, 13 December 2022

Lean services is the application of lean manufacturing production methods in the service industry (and related method adaptations). Lean services have among others been applied to US health care providers[1] and the UK HMRC.[2]

History

[edit]

Definition of "Service": see Service, Business Service and/or Service Economics. Lean Services history, see Lean manufacturing.

Lean manufacturing and Services, contrasted by Levitt; "Manufacturing looks for solutions inside the very tasks to be done... Service looks for solutions in the performer of the task." (T.Levitt, Production-Line Approach to Service, Harvard Business Review, September 1972).[3]

Method

[edit]

Underlying method; Lean manufacturing.

Bicheno & Holweg provides an adapted view on waste for the method ("waste", see Lean manufacturing, waste and The Toyota Way, principle 2):[4][page needed]

  1. Delay on the part of customers waiting for service, for delivery, in queues, for response, not arriving as promised.
  2. Duplication. Having to re-enter data, repeat details on forms, copy information across, answer queries from several sources within the same organisation.
  3. Unnecessary Movement. Queuing several times, lack of one-stop, poor ergonomics in the service encounter.
  4. Unclear communication, and the wastes of seeking clarification, confusion over product or service use, wasting time finding a location that may result in misuse or duplication.
  5. Incorrect inventory. Being out-of-stock, unable to get exactly what was required, substitute products or services.
  6. An opportunity lost to retain or win customers, a failure to establish rapport, ignoring customers, unfriendliness, and rudeness.
  7. Errors in the service transaction, product defects in the product-service bundle, lost or damaged goods.
  8. Service quality errors, lack of quality in service processes.

Shillingburg and Seddon separately provides an additional type of waste for the method:[5][page needed][6][title missing]

  1. Value Demand, services demanded by the customer. Failure Demand, production of services as a result of defects in the upstream system.

Criticism

[edit]

John Seddon outlines challenges with Lean Services in his paper "Rethinking Lean Service" (Seddon 2009) using examples from the UK tax-authorities HMRC.[2]

See also

[edit]

References

[edit]
  1. ^ Ker, Jun-Ing; Wang, Yichuan; Hajli, M. Nick; Song, Jiahe; Ker, Cappi W. (2014). "Deploying lean in healthcare: Evaluating information technology effectiveness in U.S. hospital pharmacies" (PDF). International Journal of Information Management. 34 (4). Elsevier BV: 556–560. doi:10.1016/j.ijinfomgt.2014.03.003. ISSN 0268-4012.
  2. ^ a b Seddon, John; O'Donovan, Brendan; Zokaei, Keivan (2011). "Rethinking Lean Service". Service Design and Delivery (PDF). Boston, MA: Springer US. pp. 41–60. doi:10.1007/978-1-4419-8321-3_4. ISBN 978-1-4419-8320-6. ISSN 1865-4924.
  3. ^ Levitt, Theodore (September 1972). "Production-Line Approach to Service". Harvard Business Review.
  4. ^ Bicheno, John; Holweg, Matthias (2009). The Lean Toolbox. PICSIE. ISBN 978-0-9541244-5-8.
  5. ^ Seddon, John (2003) Freedom from Command and Control: A Better Way to Make the Work Work, Vanguard Press.
  6. ^ Shillingburg, 2011