Lean Manufacturing Work

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How Services Can Become Lean
Introduction
I recently took a vehicle into Liberty Ford in Parma Heights, OH for service to be
completed on the vehicle due to the check engine light being displayed and then
disappearing from the instrument panel. This problem did not seem normal so I would
need an experienced and reputable technician to look into the problem and fix it.
Process
The first process for me, as the customer, was to locate a nearby dealership that could
service the vehicle. I first searched online for local Ford dealerships. I then narrowed
down the search by proximity to where the vehicle was located. After searching and
getting information on each dealership, 15 minutes had passed. I then called the Liberty
Ford to explain my problem and booked an appointment to take the car in on Friday at 8
AM to be serviced. This part of the process was very quick and only took approximately
5 minutes.
Tuesday arrived so I drove the vehicle to Liberty Ford taking roughly 30 minutes.
Once at Liberty Ford I parked the vehicle and walked inside into the service department.
I was greeted by the three gentlemen at the counter and informed them my name and
there for my 8 A.M. appointment. They acted like they had never talked to me before
and got all my information and what was wrong with the vehicle. It seemed the phone
call and research was useless. To my disappointment, I was informed their computer and
phone systems were not functioning due to the severe weather from last night. They did
inform me they would get to the vehicle as soon as possible. The guy at the counter
wrote out a bill of work for the maintenance and went outside to get more information

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about the problem and get more vehicle information. I handed him the keys to the
vehicle and waited for at least 15 minutes until he came back. He pulled the vehicle to
the front bay door of the maintenance garage and came back inside to inform me he
didn’t see the problem as well. He mentioned there was a red brake light lit up on the
instrument panel as well and they would be happy to check that out. I politely informed
him that was the light for the emergency brake of the vehicle. We discussed cost to do an
initial diagnostic of the vehicle. He went to pull the vehicle inside and could not get back
in the vehicle. The associate had left the keys in the car when he shut the door which
caused the automatic locks to activate resulting in keys locked inside the car. I stood
around the building for at least an hour watching associates run around and not informing
me of what is going on. Finally, I went back to the counter and asked another associate
what the problem was and learned that they were having trouble getting a key because the
computer software contained the type of key information was not accessible. I asked
where my shuttle ride was and informed them to call me when they could get to the car.
The next day I made and received multiple calls to become informed of the diagnostic
results, how to fix it, along with time needed and total cost. This step of process took
around two hours time after combining all the calls made. The following day, I make
several calls to find out the status of the car and learn that the parts were delivered broken
and unusable. It would take another day before they would get their shipment of parts
and be able to fix the car. So waiting another day, I finally get a phone call informing me
of the cars completion. A trip to the dealership is done and payment is made to get the
keys and car. The car was finally driven back home.
The first step in the process, from the dealerships perspective, was to answer the phone
and get the details like my name, problem, and appointment time and input this

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information into their database. At the day of the appointment, they greeted me at the
door and found out why I was there. They did mention the difficulties that day and
manually used a system to get my information and problem of the vehicle since the
database was down. The associate processed the form and went to get more information
from the vehicle like the VIN, mileage, plate number, etc. He moved the vehicle to the
entry of the garage and exited the vehicle to come inside and explain his findings to me.
The vehicle was to be moved inside for an initial diagnostic test but the keys were locked
inside so everything was put on hold. The associate was running around and trying to
find a way to get the keys out of the vehicle. They asked me if I had a spare as well.
Eventually, the associate arranged for a lower level employee to step aside and drive me
back home.
I would assume the vehicle was eventually opened by a lockout tool (Slim Jim) and
moved to the parking lot since many vehicles were delayed and backlogged in the
process. The next step would be run a diagnostic on the vehicle and find out what is
wrong with the vehicle. This was done the next day and called the customer later that
day to get authorization to order the parts. This was completed and the parts were
delivered the next morning. They discovered that the parts were broken in transit so a
reorder for the parts was completed. The following morning the parts arrive and the
vehicle was moved inside where a technician repaired the faulty airbag wire and relay
switch. The vehicle was taken on a road test before final inspection of the vehicle was
made. The passed inspection would be passed to the main office where the customer
would be called and informed that car was ready to pick up. When the customer arrives,
the bill is retrieved and payment is taken. The keys are given back and the process is
closed out on the system.

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Process Maps
Figures 1 and 2 are included below to display the processes for the consumer and
provider. Figure 1 is of the current state of processes at Liberty Ford. Figure 2 is an
improved map that reflects what all the processes would be like in a future state. As
Figure 2 shows, the whole system is more efficient and precise. The delays from waiting
and redefining the problem are eliminated. The consumer simply drops the car off and
makes sure the technician understands what happened. The keys are given and a shuttle
ride is given. Meanwhile, the car has a diagnostic done a short time later that day and the
results are given. The parts are approved and properly delivered. The car is fixed and
returned the next day.
Figure 2 also displays the provider’s overall steps in the process. The elimination of
waiting and reordering parts is eliminated in the system. The reworking of inputting the
data is also eliminated from the system. The overall process of fixing the car is
simplified and corrected in the future state. A major factor of time is something that is
going to be an issue in this type of industry. Since the parts are ordered and delivered
only once a day, it causes a delay for both the consumer and provider. An ideal state
would correct this but the future state is making small changes and excluding the parts
supplier in this figure must be done for now.
Waste Streams
There were many forms of waste present in the processes of Liberty Ford. The forms
of waste range from waiting, transportation, incorrect processing, unnecessary
movement, and unused employee creativity. There may be more waste in the current
system. However, being unable to go behind the counter and into the garage where the
technicians limits the transparency of waste in defects.

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The first form of waste was waiting. The customer had to wait when they first arrived
because the technician went outside to gather more information about the car. A large
portion of waiting occurred in the process when the keys were locked in the car and the
associate didn’t know how to get back in the car. A normal wait occurs in the system
because they are backlogged and running behind because of all the work in process. The
parts being delivered only one time a day is also a significant point to consider when
analyzing why waiting happens. If they received shipments multiple times a day then the
delay and holding cars overnight would not result. This would allow the workers to be
more productive as well. Taking a technician off the line and making them give rides to
customers also caused waiting. The customer had to wait a significant time before a
shuttle ride was available. Waste occurs because an established driver was not ready to
leave and the customer stood around until someone was ready.
Another form of waste was the transportation that occurred in the service department.
The transportation of vehicles to and from the garage was unbelievable. The car was
taken to and from the garage many times during the maintenance process. The initial
diagnostic was performed and then car back to the lot. Then, car back to the garage after
parts are delivered. Broken parts being delivered caused the car to go back to the lot until
the next batch is delivered for final repairs. This transportation of back and forth from
the garage to lot caused a lot of waste in the system.
The incorrect processing of the documentation also causes waste in the system. If I
would not have known better, the representative would have documented a brake light
was lit up on the instrument panel. The emergency brake being engaged caused this but
who knows how what kind of waste would have occurred because he notated this. In
addition, if errors are made with documenting what is wrong with the vehicle then the

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technician will waste time trying to correct the wrong problem. A service representative
could also over process what is wrong with the car and cause a lot of wasted time of
fixing the wrong problem.
There was a lot of unnecessary movement in the processes at the dealership. The
service representative at the counter was running around everywhere in the garage. He
disappeared for a very long period of time when the keys were locked in the car. Due to
him being away from the counter, a back up of other customers resulted in the lobby.
The computers and phones also being unavailable resulted in many different employees
with the service department running around and getting orders. I would also think that
there is unnecessary movement by the technicians working on vehicles as well. If parts
are broken or missing, then they would have a lot of waste.
Based on the data and processes seen, an assumption could also be made that the
organization has a top down strategy and there is a lot of unused employee creativity in
the service department. The strategies and processes in place are not in touch with the
everyday work flow that occurs in the system. The breakdown of the computers and
telephones put their system in a complete breakdown. The system could definitely be
improved if the technicians would be allowed to submit their input and make the system
more efficient.
Sources of Variation
The causes of variation in the system can be due many factors. Since this is a customer
driven business, variation can arise at any point in time because of the difficulties that
surface. These difficulties can be from delays due to process inefficiencies, change in
supply and demand, or change in process capacity. Each factor will cause some sort of
problem for the overall system and result in delays or waste.

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The first source of variation results from delays due to process inefficiencies. The
break down of the computer system and phones at Liberty Ford caused a major disruption
in the system. The processes that normal work did not and caused disruptions in work
flow. These inefficiencies lead to longer wait times to check your car in and find out
what was wrong with it. Usually the representative would be able to enter your car into
the database system and this information would be able to be seen by a technician. Since
this was unavailable, a delay resulted because a paper bill of work was made and filed
instead. With a paper bill of work being done, the sense of time was lost and a longer
wait time resulted from it. Another factor to consider is the set up times required for each
vehicle. Since there is a lot of work in process, the cars are moved into the lot and have
to be pulled back into the garage when the technician is ready to work on each vehicle.
This adds waste to the system and amounts to a lot since they have to go to the key box to
get the keys and then find the vehicle. After driving it back into the garage they then will
have to find out what is wrong and then start the process over again. A lot of waste is
happening here. The inefficiencies in each process add up and caused very long wait
times like I had to experience. From the customer’s point of view, this is unacceptable
and very frustrating.
The change in supply and demand of customer’s also causes issues for the service
department. Since the check in process is relatively easy for the service representative at
the desk, it should not cause a pile up of people waiting. This is an incorrect assumption
because many people decide spur the moment on what day to take their vehicle and not
make an appointment. The customers with an appointment and delayed because of the
change in vehicles needing to be serviced. This variation causes the associate at the desk
to become overwhelmed since the walk in person is not familiar with the problem they

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are having with their vehicle. The confusion and unexpected guest will cause a simple
check-in to become confusing and difficult resulting in a stockpile of guests waiting. In
addition, the change in supply and demand will also affect the availability of parts the
facility will have to fix a problem. If a stock out occurs, then the car will set until the
new parts can be delivered. The wait that occurs will make the customer become
frustrating since they are without a vehicle during that time period.
The service department may also experience a change in process capacity as well.
Since the computers and phones were down the day of my appointment, I witnessed a
very low capacity at the service department because the workers were frazzled and
seemed to be at a loss on how to get the vehicles done without a computer system
informing them of the details and work order. The changes from hour to hour caused
major delays in productivity that day.
How to reduce variability
After finding and reviewing the waste identified above, Liberty Ford can develop
different strategies on how to minimize the effect from waste and variability. The
potential gains from eliminating waste are huge in services. This concept is done through
implementing different tools of lean.
The first step in reducing the effect that variability has on the system at Liberty Ford is
to determine the lead time required. Michael George in Lean Six Sigma for Service
informs us that this is “how long it will take any item of work to be completed (lead time)
simply by counting how much work is sitting around waiting to be completed (work in
process) and how many ‘things’ we can complete each day, week, etc. (average
completion rate)(26).” This is especially important to know at Liberty Ford because the
time it took them to complete the vehicle I brought them makes me believe that they have

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an extremely high amount of work in process at their location with a low average
completion rate. My belief is backed by the fact that it took four days to complete my
vehicle when a future state may have taken two days at most. This process is also
important because it will help define how many customer requests or phone calls to
return as well. I had to call three times one day to find out what was wrong with the
vehicle from the diagnostic taken that day. By defining these tasks in process, the system
will benefit by cutting waiting time and incorrect processing. By cutting the waiting time
the customer will be more happy and delighted with the turn around time to complete
their vehicle. This can be managed by implementing a pull system.
Currently, Liberty Ford has a system in place that does not resemble a pull system. I
know this because their system can be politely described as a train wreck. The
technicians push the cars in the system by starting a bill of work and do an eye
inspection. From there, the system falls apart and the car disappears to the parking lot. A
pull system is sort of used because the technicians go and get the car when they are ready
but this is due to the natural flow in the system. This could be considered a good
discovery if they would correct the system to take advantage of the flow. This method of
lean is very important because it allows the system to flow smoothly and without
stockpiling a lot of work in process. In addition, all the appointments that they currently
take by phone are essentially worthless because it seems like they don’t remember you on
the date of your appointment when you arrive with your car. If they would only accept so
many appointments by phone and then take names along with phone numbers and put
those in a “waiting to be booked” file, they would condense their work in process because
those waiting are not in the system yet. This would reduce the number of customers in
the system and allow their technicians to complete a certain amount of vehicles per day

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and also allow so many walk in vehicles to be serviced per day. This would no longer
cause long stockpiles in their system but rather a more efficient and synchronized pull
system. The technicians would finish their appointment and it would result in a
representative being signaled to call a potential client and book an appointment in the
future. However, a more realistic approach might need to be taken because they have a
consumer base that consists of people with difficulty dropping everything and driving to
the dealership and leaving their car there. With that said, Liberty Ford could increase
their average completion rate because they will still face a changing demand from
sporadic customers. This can be offset by using Queuing Theory. At this company, the
number of technicians in the office could be designed to target key times when demand is
high. This could be done by setting up a triaging scheme. High difficult vs. low difficult
maintenance could be determined so productivity could be increased. The cross training
of technicians could help with more difficult maintenance as well. Another way to face
demanding customers is to look into the data like queue times, lead time, takt time, and
cycle time and come to a strategy of how to send quicker fixes to certain mechanics and
more detailed and lengthy fixes to more experienced technicians. This way the difficult
job gets done as quickly as possible without rework needing to be completed. A way to
get high productivity would be to rate the cars in queue from more difficult to quick
fixes. The easier fixes may get priority because they can be done in 30 minutes to an
hour whereas a longer fix may occupy a lift for days. Another related concept that could
be used to increase the average completion rate is through the use of a giant takt board in
the garage. The board would have the times of operation listed in a defined interval. The
interval would show the actual number of cars completed compared to the scheduled

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number of cars that should have been completed. This would motivate the technicians to
increase their work count.
Using motivation as a tool to increase productivity is a difficult task to accomplish.
The management staff at the dealership should look into creating a more standardized
process for the technicians and front counter representatives. The current system in
process is right at the edge of having evolutionary creativity but it will require opening
their eyes to see the problem and seeking continuous improvement instead of having all
kinds of banners praising the current award winning service they guarantee to their
customers. The current system is a guarantee that the consumer won’t go back to their
dealership. The dealership was justifying their service by the money being spent into the
technology involved. However, I soon found out that didn’t mean the service was any
better. They were using a push system the day I took my vehicle in. The system had too
many complex problems involved. The use of technology had caused a dependency by
everyone in the staff and the whole process crashed that day due to that dependency. Due
to the crash, nothing was being completed. The counter personnel had no way to
communicate with technicians and vice-versa. They had to walk back to the shop in
order to speak to someone. This caused a lot of waste by the unnecessary movement. A
way to correct all this complexity would be to have a supervisor oversee the production
in the garage and complete a bill of work ticket and bill of materials ticket for each
vehicle. With the technology down, this person would deliver it to the clerks at the front
who would communicate with the customer. This would have saved so much time
instead of trying to bring the database back online only to find out it wasn’t working.
The use of each ticket would allow the counter associate to document all the details of the
vehicle and time into the system. The technician would pull the vehicle when they are

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ready to do a diagnosis and repair it as well instead of pushing it in the system and then
letting it sit outside in queue. A simple process would work better because the
information flow would be more efficient and timelier. The system would no longer
require the car being pushed into the system and then being taken back and forth from the
garage to the lot. In addition, a more simplified approach can be taken because a garage
supervisor is between the technician and the front desk clerk and could control the
information being moved from the technician to the front desk. This would allow rework
and defects as well as unnecessary movement of the technician. The standardization
would create consistency because fewer errors would result as well as more production
since the time required would decrease. The consistency would eliminate the guess work
as well. The technician would have a second person checking them and making sure the
problem is actually being fixed. This would allow a better way to control the process as
well.
With standardization of the system completed, the improvements of the processes
should be monitored and controlled. The first step is to allow the system time and let it
play out to see the results. In addition, the garage supervisor should not be standing right
next to the technicians and causing disruptions in the work being completed. This will
make errors to happen and the maintenance quality to be abnormal. Once some time has
passed, the management staff should look at the data to see if the direct flow of
information and simplified processes are better for the customer. The staff and garage
manager could do a kaizen event or conduct weekly meetings to get feedback as well as
to discuss key issues that the staff should be aware of. These steps will allow the system
to be controlled better. The data collected could be used to educate the staff that certain
processes are not being met and should be focused upon so the process becomes more

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efficient. Hopefully, the quality of the maintenance has improved and become more
consistent. The more detailed and difficult tasks given to more experienced technicians
would allow for faster service for those that have minor issues and quick fixes to be made
to their vehicle. The leveling of the tasks is a key concept that could also be used in the
standardized process. The kaizen and meetings would show the efficiency or waste in the
process. The staff would be able to understand how to fix this and become more
productive.
Potential Issues and/or Barrier to Implementation
A large portion of risk involved with redoing the system at Liberty Ford would be
getting the technicians and staff to buy in to the process. These guys work hard and are
always behind in the system (I believe that management makes it this way so they have
no idle time causing profits to be lost). Since they are used to being over worked and
under paid, making changes that show increased productivity may spark anger and walk
outs. They will be thinking that the system will have even more cars sitting around and
their efforts to be pushed even more. Getting them to understand that a standardized and
efficient system will actually cause them to give an equal amount of effort but have more
cars being completed. This will be a difficult task since many of the technicians will be
guys of habit due to their many years of experience doing their job. The technician
knows best ego may surface and cause difficulty for any change to be implemented. In
addition, many of the workers may be used to sandbagging and causing delays
intentionally because of the nature of the work. They know the process will get done
when it is done since no one else can do the work. Management will need to either
account for these delays when designing the new processes or fire the obstacles. The
management may overcome these issues by including the workers in the steps of

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designing a new efficient process. By including them, a sense of ownership will occur
and transparency between the management and workers will be seen.
Another potential barrier to implementation is the need to push cars into the system.
This type of business makes a business to want to push more into the system since the
owners will have no option but to wait until the process is over. The desire to do this
makes sense but also causes a stockpiling of work in process. A potential solution would
be to allow customers to be put on a wait list for that day. The wait list would show how
many vehicles are to be pulled into the system before that customer. This would give a
realistic figure so the client could decide if they should leave their vehicle or not. This
would eliminate the “we will get to you as soon as we can attitude” and develop a new
consumer based logic of thinking. This wait list would be for walk-ins only. All booked
appointments would be done accordingly and give priority. The walk-in customer would
be put in this wait list which would be a way to pool customers and allow technicians to
pull from when they are ready.
In addition, this type of business will always have demand since cars are always
needing repaired. A system to control the demand is very tricky and not always going to
be successful. It may be difficult to have a full pull system since the demand is
unpredictable. The level of demand maybe too much and additional staff may be need to
be hired in order to handle it. Or, the demand may not be very much at certain times.
Having a leveled staff or cross-trained staff to offset the peaks and valleys of demand is
needed. A plan will need to be developed for each type of demand though.
Another potential problem is the type of maintenance needing to be completed. One
day may have all oil changes needing to be done. The next day may have several
transmission rebuilds to be done. The type of maintenance is unpredictable and difficult

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to account for. Again, having a cross-trained staff will be necessary. The more
experienced technicians will be able to take most of the work, but they may need help at
certain periods.
Concluding Remarks
The overall system that is in place at Liberty Ford does not meet the current demand
that is being presented. The company needs to look at restructuring the processes that are
currently in place. The current system in place causes all sorts of waste which ultimately
ends up with customer frustration. I would recommend that company decreases the
waiting time because this is the most important factor that the customer encounters. With
the waste being cut from the processes, Liberty Ford could seek to try a pull system that
will have an end result of less wait and with efficiency. The standardization that will be
put in place for the overall maintenance department will allow the dealership to increase
the number of vehicles seen per day which in turn will increase profitability.

16. How Services Can Become Lean
Jason Gass
OSM 517