Mail-Returns Process Optimization Using Lean Thinking Principles at The Swedish Tax Agency

Abstract: Lean Thinking has been widely implemented in various industries in the production context. Lately a number of companies in the service sector have developed lean systems within their organisations to improve efficiency, productivity, and quality of their services. In our study we are putting forward an approach for operational excellence using Lean Thinking principals in the public service context. The study was performed at the Swedish Tax Agency and the main process examined was mail-returns handling process, the main goal was to improve business process by eliminating non value adding activities within the mail-returns handling process. A thorough investigation of the Swedish Tax Agency process was carried out, primary (core) business process was identified. We examined the supporting processes and how they can affect the primary process performance, and we defined the activities associated with mail-returns handling process and the costs incurred, which led to having a fact-sheet that examined the entire process. Process mapping for the current state was carried out and Root Cause Analyses was performed. We identified root causes of the problem and process elements with high improvement potential, and we presented an optimisation proposal for the current state. Based on the optimisation proposal, an improvement proposal for the whole process was developed. Some of the notable attributes of this redesigned strategy were substantial cost savings and reduced process time. The proposal was approved by the Swedish tax agency and practical implementation is initiated.