Adding value to your business - Xero Value-Added – Necessary Waste Value-Added Activities Non Value-Added – Absolute Waste An activity that transforms or shapes material or information,

Creating lean efficiency Adding value to your business

Creating lean efficiency Adding value to your business

Ben RichmondNZ Partner Director

@benrichmond1

Emma Crawford-FalekāonoPartner Consultant Manager

@emscrawfs

Agenda

What is lean and why do I need to lean up?

How will lean help my practice?

Waste Activity Identification

Map out your processes

Ideal state

Timeline

What is lean?

It is a long term commitment in a new way of working. Not a tool or initiative.

A day by day improvement of processes that your

consumers value.

This improvement is best run by those who do the work, who know the work and who are most affected by the work.

Creating more for customers with Less

What does being lean mean to you?

Value

Identifying Waste

Voice of Customer Exercise

Identify and map the value stream

Continuous Improvement Culture

Map Ideal State

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What does being lean mean to you?

Aligning your processes with customer needs

Delivering value from your customers perspective

Eliminating waste

Continuously improving your processes

How does your customer feature in your current process?

Quality of data vs Time & CostGST rec out by $100

Workpapers that you love

Identify your customers & what they expect from youTax returns only

Advice? Help? Reports?

Map out your current processes

Preparing accounts

Workpapers

Recoding transactions

Contacting clients

Waiting on information

Picking up & putting down jobs

Getting sign off

Importing data

Multiple versions of same data

Waste identificationWaste Identification includes assigning activities the following labels:

Identifying which label these tasks fall under can allow you to remove the "Non-Value Added and not needed" tasks,

therefore improving the overall process.

Non-Value Added but needed

Value-Added Non-Value Added and not needed

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Non Value-Added –Necessary Waste

Value-Added Activities Non Value-Added – Absolute Waste

An activity that transforms or shapes material or information,

And the customer wants it,

And it's done right the first time.

Activities causing no value to be created, but which cannot be eliminated based on current state of technology or thinking.

Required (regulatory, customer mandate, legal).

Necessary (due to non-robustness of process, currently required; current risk tolerance).

Activities that consume resources but create no value in the eyes of the customer.

Pure waste.

If you can't get rid of the activity, it becomes a "Non-Value Added - Needed Activity."

To remember the 8 wastes, you can use the acronym DOWNTIME

DefectsEffects caused by rework, scrap, and incorrect information

OverproductionProduction that is more than needed or before it is needed

WaitingWasted time waiting for the next step in a process

Non-utilised talentUnderutilising peoples talents, skills, & knowledge

TransportationUnnecessary movements of products & materials

InventoryExcess products and materials not being processed

MotionUnnecessary movements by people (eg. walking)

Extra-processingMore work or higher quality than is required by the customer

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Multi-tasking activity

Lets Talk Ideal State