Muda, Mura,

Muri…

How can these concepts

impact the financial
services industry?
Context/History of Lean

• Definition of Lean

• Toyota

Slide 2 © 2009 GAMA International

Sources of Waste
• Muda, mura, muri

• 7 Sources of waste
– Overproduction
– Errors
– Needless movement
– Excess inventory
– Overprocessing
– Waiting time
– Transportation
Slide 3 © 2009 GAMA International
Lean Financial Services
Cutting costs while reducing risks

• Process improvement

• Performance Management

• Mindset & Capabilities

Slide 4 © 2009 GAMA International

Process Improvement
7 Design Practices of Lean
If you want to get lean, you might have to get a little mean.” - James P. Womack

• Place linked processes near one another

• Standardize procedures
• Eliminate loop-backs
• Set a common tempo
• Balance loads
• Segregate complexity
• Post performance results

Slide 5 © 2009 GAMA International

Performance Management

• Every employee has True North Metrics

• Daily meeting with team to review

metrics

• Regular review of metrics with

individuals

Slide 6 © 2009 GAMA International

Mindsets and Capabilities
• Serve the customer
• Pursue “active honesty”
• Decide carefully, implement quickly
• Candidly admit imperfections
• Speak honestly and with deep respect
• Go see and listen to learn
• Deliver on meaningful challenges
• Be a mentor

Slide 7 © 2009 GAMA International

Solutions to Waste – Part 1

• Overproduction

• Errors

• Needless movement

Slide 11 © 2009 GAMA International

 Weekly Huddle/Performance Board
Metrics Trends Actual
Target
Key AFO Week __ Auto Fire
Performance Targets Results
Indicators
Auto
Fire
Life
Bank
Mutual Funds Life Bank
% MLD All
Policy Types
Issues
Topic Action Owner Due Date

% MLD All Policy

Mutual Funds
Types

Recognition

For internal use only. Nothing contained in this document shall be disclosed outside State Farm unless proper authorization is obtained.
 Role Clarity/Critical Tasks
Role Clarity/Critical Tasks Identified

Tasks Leader Consultant Specialist Secretary

1) Reports X X
2) Promotions Tracking X X X X
3) Calendar Management X X
4) Company Car Management X
5) Supply Management X X

Auto Bank Marketing Training

 Retention  Acquisition  Auto, Fire, Bank  Technology

 Acquisition  Gain  Corporate  Prospector+
 Relationship  Product Training

Slide 13 © 2009 GAMA International

Defined systems/Continuity Manual

Slide 14 © 2009 GAMA International

Checkpoint System

Slide 15 © 2009 GAMA International

Solutions to Waste – Part 2

• Excess Inventory

• Overprocessing

• Waiting Time

• Tranportation

Slide 17 © 2009 GAMA International

Housekeeping

• Seri – Sort
• Seiton – Straighten
• Seiso – Shine
• Seiketsu – Standardize
• Shitsuke - Sustain

Slide 18 © 2009 GAMA International

Sales Process Diagnostic

Slide 19 © 2009 GAMA International

Weekly Huddle/Standing Agenda

Slide 20 © 2009 GAMA International

Producer -Role Clarity/Critical
Tasks

Slide 22 © 2009 GAMA International

Defined Systems/Continuity Manual

Slide 23 © 2009 GAMA International

OSOEz – Outlook Shared Office Efficiency

Slide 24 © 2009 GAMA International

Takeaways

• Sources of Waste

• Process improvement

• Performance Management

• Mindset & Capabilities

Slide 27 © 2009 GAMA International