ROI Case File No.317 | 'Aqua's Invisible Waste'

Chapter 1: The Chaos of Inconsistency—Same Work, Different Methods

The week after Marukyu's PDCA case was resolved, a consultation arrived from Kanagawa regarding business efficiency at a cleaning chain. Case File 317 of Volume 26, "The Pursuit of Reproducibility," tells the story of unifying operations that varied by store through waste elimination.

"Detective, we operate 8 stores, but business flows are inconsistent across stores. Store A takes 5 minutes for reception, Store B takes 3 minutes. Store C takes 10 minutes for inspection, Store D takes 15 minutes. It's the same work, but I don't understand why it's so different. And I don't know which is correct."

Makoto Mizuno, Operations Manager of Aqua Laundry Co., born in Yokohama, visited 221B Baker Street unable to hide his confusion. In his hands were work time records from 8 stores and, in stark contrast, an operations manual marked "no standards."

"We operate a cleaning chain in Kanagawa. Established 28 years ago. We have 8 stores and 42 employees. However, we haven't been able to standardize operations. Each store operates with its own methods."

Aqua's Operational Variations: - Established: 1997 (cleaning chain) - Annual Revenue: 420 million yen - Number of Stores: 8 - Employees: 42 (32 store staff, 10 factory staff) - Daily Reception Volume: About 320 cases across all stores - Problem: Business flows not unified across stores

Mizuno's voice carried deep frustration.

"The problem is that each store manager believes 'my way is correct.' Store A's manager says 'careful customer service is important' and takes 5 minutes for reception. Store B's manager says 'speed is important' and finishes in 3 minutes. Which is correct...?"

Typical Store-to-Store Differences:

Store A (Manager: Veteran, 15 years of service):

Reception Work (receiving clothes): 1. Confirm customer name and phone number (1 min) 2. Confirm clothing types (shirts, suits, coats, etc.) (1.5 min) 3. Check stains/damage, take photos (1.5 min) 4. Explain pricing (0.5 min) 5. Communicate expected delivery date (0.5 min) 6. Total: 5 minutes

Store B (Manager: Young, 3 years of service):

Reception Work: 1. Confirm customer name and phone number (30 sec) 2. Confirm clothing types (1 min) 3. Check stains/damage (visual only, 30 sec) 4. Communicate pricing and delivery date (30 sec) 5. No photos taken 6. Total: 3 minutes

Mizuno sighed deeply.

"Store A's customer satisfaction is 4.6/5. Store B is 3.8/5. Store A has higher satisfaction, but Store B processes more cases. Which should be the standard...?"

Furthermore, inspection work (checking clothes at factory) also differs by store:

Clothes sent from Store C: - Pocket contents checked (tissues, coins, etc. removed) - Button looseness checked - Factory inspection time: 2 minutes per item

Clothes sent from Store D: - Pocket contents unchecked - Button looseness unchecked - Factory inspection time: 5 minutes per item (factory doing what store should do)

Factory Manager's cry: "Store D's clothes take too much inspection time! Tissues left in pockets even caused washing machine failure!"

Chapter 2: The Wall of Person-Dependency—Can't Teach Without Standards

"Mizuno-san, how is training for new staff conducted?"

To my question, Mizuno answered.

"Each store manager teaches their own methods. But teaching methods differ by manager. New hires trained at Store A get confused when transferred to Store B because 'methods are different.' And they make mistakes in customer service."

Current Approach (Person-Dependent Type): - Operations: Each store manager decides independently - Training: Managers teach their own methods - Problem: Not unified across stores, confusion during transfers

I explained the importance of waste elimination and standardization.

"Inconsistent operations hide waste. LEAN—Lean production. Identify 7 wastes and keep only value-adding work. Then standardize it. This is the essence of reproducibility."

⬜️ ChatGPT | Catalyst of Conception

"Don't pride yourself on person-dependency. Expose 7 wastes with LEAN. Standardization creates reproducibility."

🟧 Claude | Alchemist of Narrative

"Eliminating waste means creating margins. A 3-minute workflow creates customer satisfaction."

🟦 Gemini | Compass of Reason

"LEAN is waste elimination technology. Identify 7 types: overproduction, waiting, transportation, processing, inventory, motion, defects."

The three members began their analysis. Gemini unfolded "LEAN's 7 Wastes" on the whiteboard.

LEAN's 7 Wastes: 1. Overproduction Waste: Producing more than needed 2. Waiting Waste: Time spent waiting 3. Transportation Waste: Unnecessary movement 4. Processing Waste: Excessive processing 5. Inventory Waste: Excess inventory 6. Motion Waste: Wasteful movements 7. Defect/Rework Waste: Redoing work

"Mizuno-san, let's observe all 8 stores and find the 7 wastes."

Chapter 3: The Discovery of Observation—7 Wastes Hidden in 8 Stores

Phase 1: Field Observation (2 weeks)

We observed staff work at all 8 stores.

Observation Method: - Spend 2 days at each store - Record all processes: reception, inspection, delivery - Record work time, workflows, tools used

Waste 1: Overproduction Waste

Store A Discovery: - Takes 5 photos of clothing during reception - But only 1 photo actually used (evidence when trouble occurs) - Remaining 4 photos never reviewed, eventually deleted

Waste Scale: - Photo time per case: 1.5 minutes - Actually necessary photo time: 0.5 minutes - Waste: 1 min/case × 320 cases/day = 320 min/day (5.3 hours)

Waste 2: Waiting Waste

Store B Discovery: - Clothes returned from factory received at store at 3 PM - But customer pickup peak is 6-7 PM - 3 hours from 3-6 PM, clothes just sit at store (doing nothing)

Waste Scale: - Even if delivered early, customers pick up 3 hours later - Changing factory delivery to 5 PM could reduce delivery frequency

Waste 3: Transportation Waste

Store C Discovery: - 15m from reception counter to clothes storage location - With 40 daily receptions, 80 round trips (1,200m walking) - Layout change could reduce to 5m

Waste Scale: - 1,200m/day × 8 stores = 9.6km/day

Waste 4: Processing Waste (Excessive Quality)

Store A Discovery (again): - Spends 1.5 minutes checking stains/damage during reception - But factory also does same check (duplication) - Store only needs "visual check"

Waste Scale: - Duplicate work time: 1 min/case × 320 cases/day = 320 min/day

Waste 5: Inventory Waste

All Stores Common: - Stores keep large inventory of hangers and vinyl covers - Store 3 months of monthly usage - Storage space becomes cramped, reducing work efficiency

Waste Scale: - Reducing inventory to 1 month can eliminate 67% of storage space

Waste 6: Motion Waste

Store D Discovery: - Manual entry of customer information into PC during reception - Name, phone number, address... all manual entry - Using tablet to retrieve customer info takes only 30 seconds

Waste Scale: - Manual entry time: 1.5 min/case - Tablet entry time: 0.5 min/case - Waste: 1 min/case × 320 cases/day = 320 min/day

Waste 7: Defect/Rework Waste

Store E Discovery: - Clothing type entry errors ("Shirt" vs "Blouse" confused) - Factory notices and calls store to confirm - 5 minutes per call × average 12 cases/month = 60 min/month

Phase 2: Quantifying Waste (1 week)

We converted the 7 wastes into time.

Total Daily Waste Time Across 8 Stores:

Waste Percentage: 34%

Mizuno was stunned.

"One-third is waste...? Then what work is truly valuable?"

Chapter 4: The Reproducibility of Standards—Shortest Workflow for All Stores

Phase 3: Standard Business Flow Design (3 weeks)

We designed a "standard business flow" that eliminated the 7 wastes.

Standard Reception Flow (3 minutes): 1. Retrieve customer info on tablet (30 sec) 2. Confirm clothing types and enter into tablet (1 min) 3. Visually check stains/damage, take 1 photo only if needed (1 min) 4. Communicate pricing and delivery date (30 sec) 5. Total: 3 minutes

Key Points: - Stop excessive photography (reduce overproduction waste) - Abolish manual entry with tablet input (reduce motion waste) - Assuming factory duplicate check, store does visual only (reduce processing waste)

Standard Store Layout: - Reception counter to storage location: Within 3m - Consolidate printer, tablet, hangers at reception counter - Minimize workflow (reduce transportation waste)

Inventory Optimization: - Hanger and vinyl cover inventory: 3 months → 1 month - Weekly replenishment (reduce inventory waste)

Delivery Time Optimization: - Factory delivery: 3 PM → 5 PM - Match customer pickup peak (reduce waiting waste)

Phase 4: Standard Flow Implementation (2 months)

We implemented the standard flow at all 8 stores.

Implementation Procedure: 1. Gather all store managers and explain standard flow 2. Pilot at model store (Store A) (2 weeks) 3. After confirming results, deploy to remaining 7 stores (6 weeks)

Model Store (Store A) Results: - Reception time: 5 min → 3 min (40% reduction) - Daily processing volume: 40 cases → 52 cases (+30%) - Staff movement distance: 1,200m → 280m (77% reduction) - Customer satisfaction: 4.6/5 → 4.7/5 (maintained)

Store A Manager's voice: "At first I thought 'I can't provide careful service in 3 minutes.' But when I actually tried it, just wasteful movements decreased, and conversation quality with customers didn't change. Rather, satisfaction increased because waiting time decreased."

After 2 months, implementation completed at all 8 stores

Chapter 5: The Power of Standards—Organizational Change After 6 Months

Results After 6 Months:

Dramatic Operational Efficiency Improvement: - Reception time: Average 4 min → Average 3 min (25% reduction) - Daily processing volume: 320 cases → 420 cases (+31%) - Staff movement distance: 9.6km/day → 2.2km/day (77% reduction) - Waste time: 21.7 hours/day → 5.8 hours/day (73% reduction)

Financial Results: - Annual revenue: 420 million yen → 510 million yen (+21%) - Processing volume increased without staff increase - Investment: Layout changes, etc. 2 million yen - Investment recovery period: 1.4 months

Customer Satisfaction: - Average satisfaction: 4.0/5 → 4.5/5 - Particularly "short waiting time" was praised

Organizational Change:

New Hire Training Standardization: - Created standard manual - Same training possible at any store - New hire ramp-up period: 2 months → 3 weeks

Smooth Store Transfers: - Before: Confusion during transfer because "methods differ" - Now: Immediately productive at any store due to same flow

Improvement Proposals from Field: - Field now submits improvement proposals based on standard flow - Monthly aggregation of improvement proposals, update standard flow

Mizuno's Reflection:

"Before LEAN implementation, each store thought 'my way is correct.' But that was just 'what we're used to,' not optimal.

By finding the 7 wastes, 'what's value and what's waste' became clear. Taking 5 photos wasn't value, it was waste. Walking 15m was also waste.

By creating a standard flow, all stores can provide service at the same quality and same speed. And customer satisfaction increased.

LEAN isn't a tool for cost reduction. I understood it's a design philosophy that doesn't steal people's time."

Chapter 5: The Detective's Diagnosis—Eliminating Waste Means Creating Margins

That night, I contemplated the essence of LEAN.

Aqua's 8 stores were each operated with their own methods. But that wasn't standardization, it was person-dependency.

By identifying and eliminating the 7 wastes with LEAN, a standard flow was born. And the standard flow created reproducibility. Any store, whoever is in charge, can provide service at the same quality and same speed.

"Eliminating waste means creating margins. Those margins create dialogue with customers and create satisfaction."

The next case will also depict the moment when LEAN eliminates waste.

"Don't pride yourself on person-dependency. Expose the 7 wastes. Overproduction, waiting, transportation, processing, inventory, motion, defects. Standardization creates reproducibility"—From the Detective's Notes

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