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The seven culture traits to take you to a customer-focused shared services op...
Make lean an innate way of thinking and increase purchase order compliancy
1. Make Lean An Innate Way of Thinking
and Increase PO Compliancy
Lucy Wilson & Jason McGovern
2. Marks & Spencer - A Brief history……..
1884 Michael Marks, a Russian born Polish refugee, opened a stall at Leeds
Kirkgate Market. All items were sold for one penny, including nails, screws,
soap, wooden spoons and luggage labels.
1928 The St Michael trademark was introduced as a guarantee of quality and
value.
1954 Operation Simplification – a project to streamline internal processes in
order to save paper and cut down on unnecessary administration– was
launched.
1975 In 1975 M&S made its first step into Europe, opening a store on Boulevard
Haussman in Paris.
1986 Our first edge of town store opened at the Metro Centre in Gateshead.
1999 Online shopping was launched on our website.
2003 Marks and Spencer Shared Services established
2007 Plan A launched - 100 point five-year ‘eco plan’ to address challenges in
the key areas of climate change, waste, sustainable raw materials, fair partner
and health
3. Marks and Spencer Shared Services
Marks and Spencer Shared Services Ltd
(MSSSL)
Location: Salford Quays, Manchester
110 FTE Finance, 120 FTE HR
5 Teams
5 core process areas
6 Years old
Manage:
c£10bn revenues
c£8bn payables
c£3bn receivables
Supports 65,000 employees and 600+
stores
4. Our Journey
Creating
Value with a
Passion for
Excellence
July 2008
March 2008 New
First year in business
April 2007 SAP complete migrated
SAP Go live 90% customer 100%
satisfaction customer
ERP platform satisfaction
ratings
December 2006 launched for ratings
AP, AR, NMP 66% average
New 79%
and core KPI rating
leadership average
financial
team £60m of KPI rating
January 2003 transactions
appointed annualised
cashflow Further
Finance Strategy set
generation £30m-
Shared
Move from support £40m
Services
accounting annualised
set up
centre to cashflow
Shared generation
Services targeted
begins
5. Why Lean in Marks and Spencer Shared Services?
New Business
Process efficiencies
Change
Business Foundation Programme
6. What is Lean?
Lean is a philosophy focusing on reduction of
waste to improve overall customer value. By
eliminating waste, quality is improved, production
time and costs are reduced.
The goal of Lean is to accelerate the velocity of
the process by reducing waste in all its forms.
Lean is not cost reduction, its finding a better way
to get the work done
7. What is Lean?
“ Lean is simply creating an environment where you
have the right amount of resources, where work is paced
and content targeted according to customer demand.
More importantly, Lean is having the ability to
rapidly respond to a signal from the customer
through a standardised process, which
means it is predictable, controllable and sustainable
”
8. Lean Principles
In their 1996 book ‘Lean Thinking’, Womack and Jones
defined a set of five basic principles that characterise a
lean enterprise.
Value in customer eyes
Identify all the steps
Flow
Customers pull value
Pursue perfection
9. History of Lean
Creating
Value with a
Passion for
Excellence
Self Sufficient
Embedded .Embedded
CPI culture within process
CPI / Lean areas
Discovery • Enthusiasm
• Appropriate BAU
Lean Project level of Automated
Shared Identified investment
Services Lean training • Enhanced
Introduction Benefits toolkit
CPI initiated realised
CPI culture
Early Years ERP Lean
implementation Workshops
CPI – Erratic
non defined Idea generation
Silo working
Little inter
department
communication
10. Roll-out in Finance Shared Services
Lean Training across management
Blitz Kaizen workshop
Roll out across Finance Shared Services
– Teaser campaign
– Project selection by management
– Monthly workshops (cross functional)
– Benefits tracker
– Monthly updates cascaded
– Governance process ensures return on investment
CPI Implementation
11. Project Selection tool
High Pure LEAN STARS
Return
CPI Control Issues
Low
Low High
Delivery Risk
12. Continuous Process Improvements
“ CPI is the ongoing effort within FASS to incrementally
improve how products & services are provided and
how operations are conducted to ensure we
maximise value and maintain control at all opportunities
”
13. CPI - Criteria
Reduction in variation
Removal of non-value add
Improves Customer Satisfaction
It reduces time / money / physical waste
Increases quality of our product
It enables us to improve activity measurement
It is required for statutory reasons
It enables the required level of control
14. Benefits from Lean in Finance Shared Services
Cash Management Process
KPI Reporting Process
NMP Procurement
Intercompany
15. PO Compliance – Our first Lean project ??
No PO, No Pay removed non-value add activity
Invoices scanned & recorded
Invoices with a PO keyed into SAP
No invoices parked
No PO – invoice returned
KPI’s monitor turnaround times
Vendors were advised how to comply
Go live: 55% compliant
Six months: 90% compliant
Impact on FTE is minimal
16. Key Learning’s?
Wins
Create a competitive atmosphere
Size of potential benefits
Cross functional teams
Team building
Learns
Clear Goal and Objectives
Not always a ‘Big Idea’
Don’t over commit
Biggest bang for your buck
Changes
Continually reassess scope
Pace of implementation
17. Make Lean An Innate Way of Thinking
and Increase PO Compliancy
Lucy Wilson & Jason McGovern