by David Brunt of Lean Enterprise Academy shown at the 1st Lean Service Summit on 23rd June 2004 run by the Lean Enterprise Academy

1. ICDP Forum 1999
Creating the Lean Car DealerCreating the Lean Car Dealer
David Brunt

2. Creating the Lean Car DealerCreating the Lean Car Dealer
A Value Stream Mapping WorkshopA Value Stream Mapping Workshop
Purpose
To introduce how lean can be applied in a
service organisation
– Through applying 5 Lean Principles
To share a road map for implementation

3. Presentation FrameworkPresentation Framework
AgendaAgenda
Introduction & Industry Background
Value & Waste applied to the dealer
A Value Stream Map for servicing a car
How manufacturers and dealers can
achieve the change
Conclusion

4. Presentation FrameworkPresentation Framework
AgendaAgenda
Introduction & Industry Background
Value & Waste applied to the dealer
A Value Stream Map for servicing a car
How manufacturers and dealers can
achieve the change
Conclusion

5. Autos: “The Industry ofAutos: “The Industry of
Industries”Industries”
A hugely competitive industry
A “soap opera” where its business
leaders are celebrities
Where companies spend millions to
create and preserve their brands
The industry where lean production
can’t be questioned!

6. Better service at lower cost
How?
Autos: “The Industry ofAutos: “The Industry of
Industries”Industries”
No such thing as a “bad car”
Much wider choice basket for consumer
Therefore customer interface (selling &
servicing) plays an increasingly vital role
As does competitive pricing –
which demands competitive cost

7. Lean ProductionLean Production
Toyota has been using the ‘Toyota Production
System’ to improve quality, service and
reduce cost for decades
– It’s competitors have tried to apply the tools &
techniques as well
It has been applied systematically through
the supply base upstream and the Parts
system downstream of the assembly plant
– Highest service level, fastest response, highest
productivity and lowest stock

8. Lean DealerLean Dealer
Despite this success, Dealer Processes are still difficult to
manage
Often run by “individuals” or anonymous “groups”
Hampered by complex computer systems, staff skills
issues, staff turnover, etc. etc.
– And Dealers have to deal with end customers & people from
head office!!
In an industry where lean production can’t be questioned
& the customer interface (selling & servicing) plays an
increasingly vital role ………. this is not good!
So, do the Lean Principles apply to all the
dealer processes?

9. Lean ThinkingLean Thinking
A RefresherA Refresher
Specify what creates value from the
customers perspective
Identify all steps across the whole
value stream
Make those actions that create value
flow
Only make what is pulled by the
customer just-in-time
Strive for perfection by continually
removing successive layers of waste

10. Presentation FrameworkPresentation Framework
AgendaAgenda
Introduction & Industry Background
Value & Waste applied to the dealer
A Value Stream Map for servicing a car
How manufacturers and dealers can
achieve the change
Conclusion

11. What Consumers WantWhat Consumers Want
How the industry sees it
New Service BodyUsed Parts

12. What Consumers WantWhat Consumers Want
How they see it
Mobility
Acquisition Maintenance

13. ValueValue
- in the Eyes of the Consumer- in the Eyes of the Consumer
Acquisition
“The right car in the
right place at the
right time”
At the right price
Maintenance
“Fixed right first
time on time”
At the right price
Not Measured!Not Measured!
Quality &
Delivery
Quality &
Delivery
“Customer
Fulfilment”

14. Service
How
customers
are treated
Information,
Care,
Consideration
Convenience
Ease of the
Event
Distance,
Time,
Remembering,
etc.
Value:Value:
ExtendingExtending thethe ConceptConcept
Quality &
Delivery
Acceptable
Price
Right First
Time
On Time
Ref: J.S. Kiff, International Car Distribution Programme (ICDP)

15. Value and Its Flipside:Value and Its Flipside:
Value - what customer wants to pay for
Wastes: The Flipside of Value:
Worker
Movement
Waste
Net Work
Value Added
Work
Non-Value Added Work
Not needed at all
in doing the work
Waiting
Transport
Sorting
Rework
No added value
but must be done
Walking to
another location to
receive parts
Removing
packaging
Removing parts
from a pallet
Ref: Taiichi Ohno (1988): Toyota Production System

16. WastesWastes
(Things that don’t add value from the customer’s perspective)(Things that don’t add value from the customer’s perspective)
Re-do cars or jobs
…or paperwork
Search for tools,
parts or equipment
Clean cars twice +
Move cars on site
Wait for the next job
Re-input data on DMS
Haven’t enough space
– Parking workshop cars
– Old equipment / tools
Buy in batches, then…
…write off stock
Pay customers to take
the ‘wrong’ car
How many of you…
How much does
it cost???
Lean is simply about
eliminating waste…
to release resource

17. Presentation FrameworkPresentation Framework
AgendaAgenda
Introduction & Industry Background
Value & Waste applied to the dealer
A Value Stream Map for servicing a car
How manufacturers and dealers can
achieve the change
Conclusion

18. Value Stream MappingValue Stream Mapping
Follow a product’s production path from beginning to end
and draw a visual representation of every process in the
material & information flows
Then draw (using icons) a “future state” map of how value
should flow
Helps us see flow
VALUE STREAM: All the steps, VA & NVA, required
to bring the product from raw material to customer

19. Process
Box
Data
Box
Inventory
“Push”
VSM from “Learning to See”VSM from “Learning to See”

20. What are Your Value Streams?What are Your Value Streams?
Develop Manufacture Assemble
Distribution
Distribution
Manufacture
Sub Assemble
Suppliers CustomersDistributionR&D Manufacture Assembly
HRMarketing
Primary
“What people pay for”
Secondary
“Support the Primary
Value Streams”

21. Using the Value Stream Mapping ToolUsing the Value Stream Mapping Tool
Product Family
Current State Drawing
Future State Drawing
Work Plan
Understanding how the
value stream currently
operates
Designing a lean flow

22. Focus on One Product FamilyFocus on One Product Family
Process Steps & Equipment
Products/Services
Determine product/service families via
– Similar downstream steps & equipment
Valet
Test
Car
Book in
Car
Cust.
Meet’g
Order
Parts
Work-
shop
Service
Letter
Cust.
H-over
Invoice
Service
(car dropped off)
Repair
(car dropped off)
Service
(collect / deliver)
Repair
(collect / deliver)
Service
(loan car)
XXX X X XX
XXX X X
XXX X XX
XXX X
XXX X X XX
XX
XX
X
X
XX
Repair
(loan car)
Breakdown
(service provider del.)
XXX X X
XXX X
XX
X
We often think
“every job is
different”

23. Distribution of Time Taken per JobDistribution of Time Taken per Job
0
5
10
15
20
25
30
35
Jobs
Time(Hours)
Planned Taken

24. Cumulative Time Taken per JobCumulative Time Taken per Job
0
50
100
150
200
250
300
350
400
Jobs
Time(Hours)
Cumulative Planned Time Cumulative Taken Time

25. Cumulative FrequencyCumulative Frequency
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Hours
Occurrences
Cumlative %age (Planned) Cumlative %age (Actual)

26. Current State DrawingCurrent State Drawing
Material & information flows
Draw using icons
Start with the “door to door”
flow
Have to walk the flow & get
actuals
– No standard times
– Draw by hand, in pencil
Foundation for the
Future State
Product Family
Current State Drawing
Future State Drawing
Work Plan
Understanding how the process
currently operates

27. Cars
Mins15
240
Cars
Mins32
240
Cars
Mins32
240
Cars
Mins34
240
Cars
Mins95
A/W
A/W
Additional Work
(A/W)
Inform Parts
AppointmentManufacturer
Parts Warehouse
Service Reception
3SA, 1 Books
Service Reminder
Park Car Inspect Car Carry out
Work
Road Test Valet Handover
Parts Workshop Control
15 Mins 50 Mins 15 Mins 10 Mins
34
240
Mins 32
240
Mins 32
240
Mins 15
240
Mins95 Mins
Customer Requirements
Cars 1-7 years old
1,2,3,4 Class, 1500 hours
sold/month.
Lead Time = 7 Days
50% Service, 20%
Service & Repair, 20%
Warranty, (20% of all
jobs have MOT), 10%
Breakdowns
Time up Job
A/W
Cycle
Time
Min
s
5 Cycle
Time
Min
s
15
sss
Cycle
Time
Min
s
50
Cycle
Time
Min
s
15
Cycle
Time
Min
s
20
Distance m30 Distance m30Distance m30 Distance m120 Distance m30
Reserve
C/T
Min
s
5
A/W Inf C/T Mins1
20 Mins
Cycle
Time
Min
s
10
A/W C/T
Min
s
5
Give Job C/T Mins5
Drop off C/T Mins10
Booking C/T Mins5
Cost & Inform
C/T
Mins9
A/W Job C/T Mins3
Cycle
Time
Min
s
10
Invoice
Cycle
Time
Min
s
5
5 Mins
5 Mins
1 Day1 Day

28. BOOK
IN
CUST.
DROP
OFF CAR
PARTS
RESERVED
INSPECT
+ A/W
INFORM
TECH
CUSTOMER
PARK
CAR
CHECK
STOCK
GO
AHEAD
DO JOB
GIVE TO
TEST
GIVE TO
VALET
TIME
UP
INVOICE
HAND
OVER
Current StateCurrent StateCustomer Requirements
Cars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days
50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
CT=5 min
Dist.= 0
Q = N/A
1 A/W510
ADMIN.
3 A/W510
SERVICE
ADVISOR
1 A/W510
ON SITE
DRIVER
1 A/W510
WORKSHOP
CONTROL
10 A/W510
TECHS.
1 A/W510
TESTER
2 A/W510
VALET
2 A/W510
PARTS
CT=10 min
Dist.=30m
Q = N/A
CT=5 min
Dist.=30m
Q = N/A
CT=5 min
Dist.=30m
Q = N/A
CT=3 min CT=2 min
CT=2 min
CT=2 min
CT=5 min
CT=5 min
Dist.=0m
Q = N/A
CT=15 min
Dist.=30m
Q = N/A
CT=2 min CT=2 min CT=10 min
CT=10 min
Del.=N/A
Q = N/A
CT=5 min
CT=1 min
Dist.=120m
Q = N/A
90 min
5 min
2 min
3 min
1 min
1 min
30 min
30 min
VALET
INFORM
TIME
JOB
COST &
INFORM
TEST
CT=60 min
Dist.=120m
Q = N/A
CT=15 min
Q = N/A
CT=20 min
Dist.=30m
Q = N/A
GIVE TO
TECH
CT=15 min
GET
PARTS

29. BOOK
IN
CUST.
DROP
OFF CAR
PARTS
RESERVED
INSPECT
+ A/W
INFORM
TECH
CUSTOMER
PARK
CAR
CHECK
STOCK
GO
AHEAD
DO JOB
GIVE TO
TEST
GIVE TO
VALET
TIME
UP
INVOICE
HAND
OVER
Current StateCurrent StateCustomer Requirements
Cars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days
50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
CT=5 min
Dist.= 0
Q = N/A
1 A/W510
ADMIN.
3 A/W510
SERVICE
ADVISOR
1 A/W510
ON SITE
DRIVER
1 A/W510
WORKSHOP
CONTROL
10 A/W510
TECHS.
1 A/W510
TESTER
2 A/W510
VALET
2 A/W510
PARTS
CT=10 min
Dist.=30m
Q = N/A
CT=5 min
Dist.=30m
Q = N/A
CT=5 min
Dist.=30m
Q = N/A
CT=3 min CT=2 min
CT=2 min
CT=2 min
CT=5 min
CT=5 min
Dist.=0m
Q = N/A
CT=15 min
Dist.=30m
Q = N/A
CT=2 min CT=2 min CT=10 min
CT=10 min
Del.=N/A
Q = N/A
CT=5 min
CT=1 min
Dist.=120m
Q = N/A
90 min
5 min
2 min
3 min
1 min
1 min
30 min
30 min
VALET
INFORM
TIME
JOB
COST &
INFORM
TEST
CT=60 min
Dist.=120m
Q = N/A
CT=15 min
Q = N/A
CT=20 min
Dist.=30m
Q = N/A
GIVE TO
TECH
CT=15 min
5 min 15 min
10 min
15 + 3 + 5 + 5 + 2 + 2 + 1
15 min 50 min 15 min 20 min 10 min
15 min7 min7 min
VA NVA
0 5
20 12
0 5
0 34
65 16
15 2
20 2
0 11
12087
GET
PARTS

30. BOOK
IN
CUST.
DROP
OFF CAR
PARTS
RESERVED
INSPECT
+ A/W
INFORM
TECH
CUSTOMER
PARK
CAR
CHECK
STOCK
GO
AHEAD
DO JOB
GIVE TO
TEST
GIVE TO
VALET
TIME
UP
INVOICE
HAND
OVER
Current StateCurrent StateCustomer Requirements
Cars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days
50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
CT=5 min
Dist.= 0
Q = N/A
1 A/W510
ADMIN.
3 A/W510
SERVICE
ADVISOR
1 A/W510
ON SITE
DRIVER
1 A/W510
WORKSHOP
CONTROL
10 A/W510
TECHS.
1 A/W510
TESTER
2 A/W510
VALET
2 A/W510
PARTS
CT=10 min
Dist.=30m
Q = N/A
CT=5 min
Dist.=30m
Q = N/A
CT=5 min
Dist.=30m
Q = N/A
CT=3 min CT=2 min
CT=2 min
CT=2 min
CT=5 min
CT=5 min
Dist.=0m
Q = N/A
CT=15 min
Dist.=30m
Q = N/A
CT=2 min CT=2 min CT=10 min
CT=10 min
Del.=N/A
Q = N/A
CT=5 min
CT=1 min
Dist.=120m
Q = N/A
90 min
5 min
2 min
3 min
1 min
1 min
30 min
30 min
VALET
INFORM
TIME
JOB
COST &
INFORM
TEST
CT=60 min
Dist.=120m
Q = N/A
CT=15 min
Q = N/A
CT=20 min
Dist.=30m
Q = N/A
GIVE TO
TECH
CT=15 min
5 min 15 min
10 min
15 + 3 + 5 + 5 + 2 + 2 + 1
15 min 50 min 15 min 20 min 10 min
15 min7 min7 min
VA NVA
0 5
20 12
0 5
0 34
65 16
15 2
20 2
0 11
12087
GET
PARTS
NVA 82 min
VA 120 min

31. BOOK
IN
CUST.
DROP
OFF CAR
PARTS
RESERVED
INSPECT
+ A/W
INFORM
TECH
CUSTOMER
PARK
CAR
CHECK
STOCK
GO
AHEAD
DO JOB
GIVE TO
TEST
GIVE TO
VALET
TIME
UP
INVOICE
HAND
OVER
Current StateCurrent StateCustomer Requirements
Cars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days
50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
CT=5 min
Dist.= 0
Q = N/A
1 A/W510
ADMIN.
3 A/W510
SERVICE
ADVISOR
1 A/W510
ON SITE
DRIVER
1 A/W510
WORKSHOP
CONTROL
10 A/W510
TECHS.
1 A/W510
TESTER
2 A/W510
VALET
2 A/W510
PARTS
CT=10 min
Dist.=30m
Q = N/A
CT=5 min
Dist.=30m
Q = N/A
CT=5 min
Dist.=30m
Q = N/A
CT=3 min CT=2 min
CT=2 min
CT=2 min
CT=5 min
CT=5 min
Dist.=0m
Q = N/A
CT=15 min
Dist.=30m
Q = N/A
CT=2 min CT=2 min CT=10 min
CT=10 min
Del.=N/A
Q = N/A
CT=5 min
CT=1 min
Dist.=120m
Q = N/A
90 min
5 min
2 min
3 min
1 min
1 min
30 min
30 min
VALET
INFORM
TIME
JOB
COST &
INFORM
TEST
CT=60 min
Dist.=120m
Q = N/A
CT=15 min
Q = N/A
CT=20 min
Dist.=30m
Q = N/A
GIVE TO
TECH
CT=15 min
5 min 15 min
10 min
15 + 3 + 5 + 5 + 2 + 2 + 1
15 min 50 min 15 min 20 min 10 min
15 min7 min7 min
VA NVA
0 5
20 12
0 5
0 34
65 16
15 2
20 2
0 11
12087
GET
PARTS
NVA 82 min
VA 120 min
Incorrect
Diagnosis
Parts not
Available
Difficult
to Park
Car Hard
to Find
Parts
Waiting
Delay for
Authorisation
Delay for
Authorisation
Wait for
Next Person
Wait for
Next Person
Wait for
Parts Search for
Tools
Wait for
Tester
Wait for
Valet
No Parking
Spaces
Incorrect
Billing
Available
Loan Cars?

32. Future State QuestionsFuture State Questions
What is the Takt Time?
Where can we use continuous flow
Where do we have to use supermarket pull systems?
At what single point in the production chain do we
trigger production?
How do we level the production mix at the
pacemaker process?
What increment of work will we release and take
away at the pacemaker process? (levelling the
volume)
Supporting Improvements
What process improvements will be necessary?
(e.g. uptime, changeover & training)

33. TAKT TimeTAKT Time
Available
Work Time
480 min
Demand 30 cars
34% of
Demand
10 cars
Standard
Time Slot
30 min
60 90 120 240
No. of Jobs
Booked in
4 3 2 2
Time
Required
1st
Year
2nd
Year
3rd
Year
4th
Year
Totals
Total Time
Booked in
240 270 240 480 1230
No. of
Work Cycles
8 9 8 16 41
TAKT Time 60.0 53.3 60.0 30.0 11.7
Manpower 0.5 0.6 0.5 1.0 2.6

34. After Sales Future State Value Stream
TECHNICIAN
Physical Flow
Information Flow
TIME
1
2
3
KEYS
TECH
CUSTOMER
SERVICE
ADVISOR
P/D
TECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 min
Dist.=60m
Q = 99%

35. After Sales Future State Value Stream
TECHNICIAN
Physical Flow
Information Flow
TIME
1
2
3
KEYS
TECH
CUSTOMER
SERVICE
ADVISOR
P/D
TECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 min
Dist.=60m
Q = 99%
PARTS
PARTS

36. After Sales Future State Value Stream
TECHNICIAN
Physical Flow
Information Flow
TIME
1
2
3
KEYS
TECH
CUSTOMER
SERVICE
ADVISOR
P/D
TECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 min
Dist.=60m
Q = 99%
PARTS
PARTS
CUSTOMER
PDT
BOOKING
CT=5 min
Dist.= 0
Q = 100%
PRE-
DIAGNOSIS
CT=30 min
Dist.= 0
Q = 100%

37. After Sales Future State Value Stream
TECHNICIAN
Physical Flow
Information Flow
TIME
1
2
3
KEYS
TECH
CUSTOMER
SERVICE
ADVISOR
P/D
TECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 min
Dist.=60m
Q = 99%
PARTS
PARTS
CUSTOMER
PDT
BOOKING
CT=5 min
Dist.= 0
Q = 100%
PRE-
DIAGNOSIS
CT=30 min
Dist.= 0
Q = 100%
VALET
VALET
CT=20 min
Dist.=60m
Q = 100%

38. After Sales Future State Value Stream
TECHNICIAN
Physical Flow
Information Flow
TIME
1
2
3
KEYS
TECH
CUSTOMER
SERVICE
ADVISOR
P/D
TECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 min
Dist.=60m
Q = 99%
PARTS
PARTS
CUSTOMER
PDT
BOOKING
CT=5 min
Dist.= 0
Q = 100%
PRE-
DIAGNOSIS
CT=30 min
Dist.= 0
Q = 100%
VALET
VALET
CT=20 min
Dist.=60m
Q = 100%
HANDOVER
CT=10 min
Del.=N/A
Q = N/A
INVOICE
CT=5 min

39. After Sales Future State Value Stream
TECHNICIAN
Physical Flow
Information Flow
TIME
1
2
3
KEYS
TECH
CUSTOMER
SERVICE
ADVISOR
P/D
TECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 min
Dist.=60m
Q = 99%
PARTS
PARTS
CUSTOMER
PDT
BOOKING
CT=5 min
Dist.= 0
Q = 100%
PRE-
DIAGNOSIS
CT=30 min
Dist.= 0
Q = 100%
VALET
VALET
CT=20 min
Dist.=60m
Q = 100%
HANDOVER
CT=10 min
Del.=N/A
Q = N/A
INVOICE
CT=5 min
NVA 145 min
VA 120 min
VA NVA
10 10
30 0
0 0
60 0
20 0
12010
5 min 60 min
30 min 60 min 20 min 10 min
20 min60 min5 min 60 min
30 min 60 min 20 min 10 min
20 min60 min

40. Additional Work
(A/W)
Arrival
Appointment
Slots
Inform Parts
AppointmentManufacturer
Parts Warehouse
Service Reception
3SA, 1 Books
Pre
Diagnose
Carry out
Work
+ Road Test
Valet Handover
Parts
30 Mins 60 Mins 10 Mins
60 Mins 20 Mins95 Mins
Customer Requirements
Cars 1-7 years old
1,2,3,4 Class, 1500 hours
sold/month.
Lead Time = 7 Days
50% Service, 20%
Service & Repair, 20%
Warranty, (20% of all
jobs have MOT), 10%
Breakdowns
Cycle
Time
Min
s
15
Cycle
Time
Min
s
15
Cycle
Time
Min
s
15
Cycle
Time
Min
s
30
Cycle
Time
Min
s
60
Cycle
Time
Min
s
20
Distance m30Distance m30 Distance m120 Distance m30
Reserve
C/T
Min
s
5
Drop off C/T Mins10
Cycle
Time
Min
s
10
Booking C/T Mins5
A/W C/T
Min
s
5
Cycle
Time
Min
s
15
5 Mins
5 Mins
1 Day1 Day 5 Days
Service Reminder
FIFO x3
OXOX
0-4
8+
4-8 FIFO
Time up &
Invoice
60 Mins
20 Mins

41. Presentation FrameworkPresentation Framework
AgendaAgenda
Introduction & Industry Background
Value & Waste applied to the dealer
A Value Stream Map for servicing a car
How manufacturers and dealers can
achieve the change
Conclusion

42. Work Plan & ImplementationWork Plan & Implementation
Step by step - when, what, who
Clear review points
– Real deadlines
– Named reviewers (clear responsibility)
– Reviewable deliverables
Able to see if we are behind or ahead
Contract - a commitment to
accomplish something by a specific
time
Product Family
Current State Drawing
Future State Drawing
Work Plan
Detailed plan of how to get there

43. TECHNICIAN
Physical Flow
Information Flow
TIME
1
2
3
KEYS
TECH
CUSTOMER
SERVICE
ADVISOR
P/D
TECHN.
PLANNING
TECHS.
VALET
PARTS
CT=60 min
Dist.=60m
Q = 99%
PARTS
PARTS
CUSTOMER
PDT
BOOKING
CT=5 min
Dist.= 0
Q = 100%
PRE-
DIAGNOSIS
CT=30 min
Dist.= 0
Q = 100%
VALET
VALET
CT=20 min
Dist.=60m
Q = 100%
HANDOVER
CT=10 min
Del.=N/A
Q = N/A
INVOICE
CT=5 min
NVA 145 min
VA 120 min
VA NVA
10 10
30 0
0 0
60 0
20 0
12010
5 min 60 min
30 min 60 min 20 min 10 min
20 min60 min5 min 60 min
30 min 60 min 20 min 10 min
20 min60 min
Value Stream LoopsValue Stream Loops
Technician Loop
Parts Loop
Invoice &
Handover Loop
Booking &
Pre-Diagnosis Loop
Valet Loop

44. 1.2
1.3
1.4
1.5
1.6
1.1
2.2
2.3
2.4
2.1
3.1
3.2
4.1
4.2
5.1
5.2
5.2
Site Level Objective
Value Stream
Manager
Site Manager
Date:
Harry Bamford
Dave Johnson
20/12/02
Yearly Value Stream Plan: After Sales
Signatures
Site Manager
D. Johnson
Sales
T. Plant
After Sales
H. Bamford
Parts
A. Harvey
Person
Responsible
Related
Individuals/
Departments Reviewer DJ
Date
Reviewer DJ
Date
Review ScheduleMonthly Schedule
2 3 4 51 6 7 8 9 10 11 12
Value
Stream
Loop
No Value Stream Objective Goal (Measurable)
Proposed Start
Proposed Completion
Actual Start
Actual Completion
Review
Review Complete
On Target
Behind Target
TroubleX
“right first time, on
time, at the right
price.”
Quality = 99%
Delivery
on Time = 91%
Productivity = 100%
Lead Time = 3 days
1
Technician
31.3 ○ 31.5
31.3 ○ 31.5
28.2 ∆ 31.5
30.4 ○ 31.5
30.4 ∆ 31.7
30.4 ○ 31.5
31.3 ○ 30.4 ○
31.3 ∆ 31.5
28.2 ○ 31.5
30.4 ∆ 31.5
30.4 ○ 31.5
31.5 30.6
31.7 30.9
31.7 30.9
31.10 31.11
31.10 31.11
31.11
2
Booking
&
Pre-
Dia-
gnosis
3
Parts
4
Valet
5
Invoice &
Handover
H. Bamford
Adm Parts
SA Tch Wco
TAKT = 39 Mins
2 Technicians
Develop pull system
from car park
1 car WIP
Eliminate searching
for tools
100%
Productivity
Eliminate waiting for
workshop control
100%
Productivity
Eliminate waiting for
authority
Reduce additional
work sheets by
50%
Develop pull for parts 100%
Productivity
Develop flow in after
sales to TAKT & 30
minute slots
Pre diagnose to a
standard cycle time with
the customer
Pre-diagnose on
collection & delivery cars
Develop planning
board
Develop a proactive
booking process
Pre-pick parts for
each job to TAKT
Deliver parts to
technician
Valet to a standard
cycle time
Develop handover parking
area for finished cars
Eliminate billing
errors
Allocate handover
slots
Minimise debtors list
100% of jobs
50% of cars
30 Mins C/T
100%
Productivity
100% of jobs
TAKT = 39 Mins
1 parts person
99% parts
availability
100% of cars
20 Mins C/T
100% of cars
100% accurate
C/T = 15 Mins
100% of customers
C/T = 15 Mins
100% of customers
T. Kent
Sales, Parts
SA, Val
H. Whittle Tch Wco
S. Wilson Tch, Wco
S. Wilson
Wco, Tch,
SA, Parts
A. Harvey
Parts, Tch,
Wco
T. Kent SA, Adm
S. Wilson Tch, Wco
H. Whittle
Tch, Wco,
SA
S. Wilson Tch, Wco
A. Harvey Parts
A. Harvey
Parts, Wco,
Tch
B. Cox Val, Wco
T. Kent
Sales, Parts
SA, Val
T. Kent
Wco, Tch,
SA, Parts, Fi
T. Kent SA
H. Bamford SA, Fi

45. Implementation via PointImplementation via Point KaizenKaizen
Process
Point
Kaizen
Eraser
Future State Map

46. But How do we Really ImplementBut How do we Really Implement
& Sustain a Change?& Sustain a Change?
Develop a ‘cadre’ of dealers from a network
– Six dealers per club
– Drive improvement through competition within the
group
Teach these pioneers to see their business as
a series of processes
– Measure how well these processes deliver what
customers want
– Look at the costs and time spent fixing processes
that don’t work
And recognise that the answer is to redesign
each process – not push people harder!

47. Progress MeasureProgress Measure
Time will tell…
Progress will be evident from…
– Dealers’ attitudes and efforts, and
– Level of change achieved
…whether they’ll become self-sustaining
i.e. motivated to continuously improve:
– Processes
– Knowledge of Lean tools & techniques
Once there are some examples it will be
easier for others to follow

48. Presentation FrameworkPresentation Framework
AgendaAgenda
Introduction & Industry Background
Value & Waste applied to the dealer
A Value Stream Map for servicing a car
How manufacturers and dealers can
achieve the change
Conclusion

49. Creating the Lean Car DealerCreating the Lean Car Dealer
A Value Stream Mapping WorkshopA Value Stream Mapping Workshop
Purpose
To introduce how lean can be applied in a
service organisation
– Through applying 5 Lean Principles
To share a road map for implementation

50. ConclusionConclusion
Always start with the principles
– Teach your own people how to add value &
eliminate waste
Design the system so that value flows & so
that problems can be flushed out
– People need to be able to solve rather than be
blamed for problems
Today nobody has to do this…….unless one
of your competitors starts…….then the
agenda will change from “if” to “how” as
it did in manufacturing over 10 years ago

51. ICDP Forum 1999
Creating the Lean Car DealerCreating the Lean Car Dealer
David Brunt

52. BiographyBiography
David’s journey down the lean path started in the automotive industry at Rolls-Royce Motor Cars
where he held a number of roles in the fields of Purchasing, Supplier Development, Quality and
Customer Service. In 1993, his interest in Lean Thinking led to studying for the part-time MBA in
Supply Chain Management at Cardiff Business School under the guidance of Professor Daniel T.
Jones.
He joined the Lean Enterprise Research Centre at Cardiff Business School as a Senior Research
Associate in February 1997 to further research, develop and implement lean principles. There he
was involved in a number of research projects:
The Lean Processing Programme (LEAP), a three-year initiative focused on mapping steel to component value streams to
identify significant gains in competitive advantage for the UK upstream automotive industry.
Projects with individual firms to research and apply Lean Thinking outside the automotive industry in areas such as FMCG
and non-automotive based manufacturing.
The International Car Distribution Programme (ICDP), the world’ leading co-operative research programme into the future
of car distribution and retailing. Research focussed on the application of Lean Thinking to car distribution and car
dealerships.
In addition, David has written a number of reports and publications including “Supply Chain Management And The British
Metals Industry” for The Metals Industry Competitive Enterprise (MICE) and the book “Manufacturing Operations and
Supply Chain Management – The Lean Approach” with David Taylor.
In 2001 he took up the part-time role of PVP (Porsche Improvement Process) Manager at
Porsche Cars Great Britain. At Porsche, David has carried out work to develop lean in after sales,
used car processing and the parts operation as well as conducting a number of other business
process improvement projects.
David has helped Dan Jones set up the Lean Enterprise Academy (LEA) – a non-profit Academy
established to develop knowledge of Lean Thinking and its implementation and to disseminate
this knowledge through publications and workshops. He currently divides his time between work
for LEA, ongoing research with ICDP and helping firms make a lean transformation.
David can be contacted at:
The Lean Enterprise Academy, 17, Church Street, Ross-on-Wye, Herefordshire. HR9 5HN
+44 1989 764440, +44 7703 538083 (M), or by e mailing dave@leanuk.org www.leanuk.org