Lean Office: - Payroll & TM project - March 2015.

Lean Office: - Payroll & TM project -

March 2015

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

Agenda

Scope & Goal

Analysis phase

Implementation phase

Results and next step

3

Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

The scope of this Lean Office Project is the payroll departments at the head office and at the manufacturing sites. In the intention of the Sanofi HR Director, this scope represents the pilot project to start a Lean journey in the offices.

Payroll Project Scope

HEAD OFFICEBRINDISI

GARESSIO

ANAGNI

ORIGGIOSCOPPITO

-Pilot: payroll departments at the head office and at the manufacturing sites-

NOVENTA PADOVANA

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

By implementing the Lean Office approach, executives’ goal is to streamline process activities (less waste in the process).

To achieve the set goal:• To map the core processes in order to:

- identify opportunities for improvement- identify any overlaps / redundancies between head office and sites

• To identify gaps between IT tools and the “what is expected”

• To develop the customer / supplier approach: to get in time and quality the standards required infos to manage payroll activities

The goal

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

In accordance with Lean Sanofi approach, the set roadmap includes two main phases: the analysis and the implementation phases as shown in the below action plan

The roadmap

Lean Office Payroll path

Implementation of plans towards improvement

Training, Change Management

Sharing action plan Standard in place

Consolidation and auditing

Analysis of the current state and to-be model (VSM tool)

Phase 1 Phase 2

May – July 2014

LA1-TM11a-VSM Current s tate.V4 | 4

Conduct of the VSM

Preparation Current state Futur stateCreation of an

action plan

Implementation of the Action

Plan

Step 1 Step 2

Sano

fi St

anda

rd L

ean

appr

och

Sep 2014 – March 2015

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

Agenda

Scope & Goal

Analysis phase

Implementation phase

Results and next step

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

The first analysis step consisted of two training sessions (theoretical - practical) on Lean Office

Training

Training goals:• To know the basic Lean principles (5 principles, value / non-value adding, Lead Time, Process Time, Waste)• To implement the approach in office processes (waste value in offices)• To know the tools for measurement (stopwatch, camera, recording times, interviews…)• To understand how to measure the process performances (indicators)• To understand how to set activities towards improvement in the short and long term• To understand the importance of teamwork

-Lean office Team session - -Lean office Team session -

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

During the analysis, following the Sanofi standard, we used Value Stream Mapping tool, to detect value adding and non value adding activities, critical issues and the estimated timeline.

Processes mapping

By means of interviews the following data were collected:• Value adding and non value adding activities (taking into consideration all activities defined as waste:

unnecessary controls, unnecessary printing and filling, reminders, search for information missing, inadequate training, etc.…)

• Aspects to focus on/critical issues• Process times (time required to carry out activities and number of people involved)

LA1-TM11a-VSM Current state.V4 | 3

VSM Basic signs

Value added operation

Movement or transportation

Inventory

Control or inspection

Information

Electronic Information

Issue Identification Action Plan

Non Value added operation

Information system

-Standard VSM Sanofi--An example-

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

Projects towards improvements identified

• S y s te m o f m o n th ly c o n t r o l l in g a n d s h a r in g o f K P Is fo r a n o m a lie s

• S y s te m to a t ta c k w a s te b a s e d o n th e s e in d ic a to rs (P D C A )

• System of monthly controlling and sharing of KPIs for anomalies

• System to attack waste based on these indicators (PDCA)• To d e f in e B e s t (c o m m o n ) P r a c t ic e s a b o u t :

- t im e m a n a g e m e n t

- t e m p o r a r y s ta f f m a n a g e m e n t in S A P

- p a y ro ll v a r ia n c e s m a n a g e m e n t

• To define Best (common) Practices about:- time management- temporary staff management in SAP- payroll variances management

• To d e f in e f r o n t o f f ic e o p e n in g h o u r s

• To d e v e lo p a s e l f - s e r v ic e s y s te m fo r f r o n t o f f ic e a c t iv i t ie s

• To define front office opening hours

• To develop a self-service system for front office activities

• T o s t r e n g th th e u s a g e o f E S S ( e .g . c o m m u n ic a t io n d e a d lin e s , … )

• To s t r e n g th th e u s a g e o f T M ( e .g . m a n a g e m e n t s h if ts . . . )

• E le c t ro n ic f i l in g o f p a y s l ip s

• To strength the usage of ESS (e.g. communication deadlines, …)

• To strength the usage of TM (e.g. management shifts...)

• Electronic filing of pay slips

• To ra t io n a liz e a n d s ta n d a rd iz e re p o r ts

• To rationalize and standardize reports

- Project -

2. Best practices

(TM and pay slips)

3. Rationalizing reports

4. Strengthening IT

system

- Operative objective -

1. First Time Through

Four the project identified to reach the goal:

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

The implementation of the identified actions on the four projects strive to free up time dedicated to non-value adding activities (NVA) to focus on value adding activities (VA) actually not adequately valued

Savings to be achieved

The time so saved can be focused on:

- To increase time for self training

- To increase time for training to operators

- To launch activities towards continuous improvement

- To decrease the gap between worked and theoretical hours

- Ratio between value adding (VA) and non value adding (NVA) timing -

43% 43%

22%57%

35%

0%

50%

100%

% AS IS % TO BE

VA VA TO BE NVA

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

Agenda

Scope & Goal

Analysis phase

Implementation phase

Results and next step

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

The implementation activities have been conducted with dedicated operative team

Project team

1. First Time Through

2. Best practices

3. Rationalizing

reports

4. Strengthening IT

system

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

Agenda

Scope & Goal

Analysis phase

Implementation phase

Results and next step

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

Two main results so far:

Soft results:- Sens of belonging increasing (payroll community view)- Awareness that “Things can change”- Development of a continuous improvement approach

Hard results:- Decreasing of waste activities in line with expectation (ex. less rework, less expediting

activities, less paper, …)- Process / activities standardization

Results

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Scope & Goal

Analysis phase

Implementation phase

Results & Next steps

To sustain the results:

- Process auditing approach: to monitor and verify and fine tune

- Communication and involvement: to enlarge the knowledge about the Lean Office approach and to transform a “project” in a “day by day activity”

Next step

Thank you

March 2015