Analysing the potential effect of selected lean practices on performance in a service department of a tertiary institution

Abstract

The service environment is not always the typical controllable environment that is desired by the business sector. Service is seen as the process that is normally at the end of the typical value chain which adds little value to an organisation. This is, how-ever, not the case where service is the primary organisational objective or primary value proposition. How many times have we heard that a good product is badmouthed only due to poor service delivery? We also see service as an unnecessary monetary burden because we feel that the product should care for itself after it has been obtained. The question is whether service and service delivery can be optimized especially by using the same phenomenon called “lean” that has helped many production compa-nies to obtain that edge needed for a superior competitive advantage? This study tests the possible application of production lean principles to the service environment. The study also makes use of the Value Stream Map (VSM) to identify wastes and the effect of these wastes on the normal day to day operations of the service department mentioned in the case study. Typical lean elimination tools such as total quality management, 5S methodology and others are also used in the case study and the possibility of applying these tools to the service environment is also discussed. In the service environment resources are sometimes either not applied efficiently enough or service is not rendered effectively according to customer requirements. These tools can enable the service environment to optimise productiveness by re-moving wastes from the input (efficiency) and optimising output (effectiveness)