Implementing Innovative
Process Improvement &
Lean Practices
January 23, 2014
Agenda
1. Introduction: Challenges facing the Public Sector
2. Laying the groundwork for a successful implementation
3. Developing well defined goals & objectives
4. Team Selection
5. Getting organizational buy-in
1. Introduction: Challenges facing the Public Sector
Public organizations face at least five key challenges:
1.
2.
3.
4.
5.
Creating a truly transformational government
Meeting heightened constituent expectations
Managing workforce transitions
Minimizing the risks of implementing new technologies, and,
Monetary issues, which are much more of operating realities
that color all decisions, are the fifth challenge.
Lean manufacturing processes have emerged as a means to
help break the politicized cycle and short term pressures
2. Laying the Groundwork
LEAN THINKING
The relentless effort to systematically reduce waste while
improving the flow of value to the customer”
•Focused on eliminating waste
•Provides principles, for improving work
•Provides levers to drive system improvements
2. Laying the Groundwork - The Six Overarching Principles
& Practices:
FLOW
LEAN WORK METHODS
Maximizing value by producing only what is desired in the
shortest time possible with the least resources
• Single piece flow
• Physically and visually linked operations
• Consolidated operations
• Simplified and standardized processes
Tactical shop-floor policies used to implement Lean
• Service oriented production • U-shaped lines
• Standard work
• Autonomation
• Visual control
• Line stops and andons
• Good housekeeping/5S
• Error proofing
• Set-up time reduction
• Total Preventive Maintenance
PULL
ORGANIZATION & CULTURE
Everything produced at the rate of production of the final
product -- “pull” production control
• Just-In-Time production and delivery
• Linked production at Takt time
• Kanbans
• Level scheduling
• Machines available on demand
Progressive employee relations and change leadership
• Workplace safety
• Education and
• Multi-skilled, flexible
development
workforce
• Flat organizations
• Worker job security
• Decentralized
• Improvement incentives
management
SOURCING & SUPPLIER INTEGRATION
Partnership between supplier and producer
• Fewer, better managed
suppliers
• Quality at the source
• Shared destiny
relationships
• Supplier development
PURSUING PERFECTION
Continuous improvement attitude and empowerment
• Kaizen events and continuous improvement
• Self-inspected quality, not inspected in quality
• Process ownership and responsibility
• Advanced quality concepts and measures
– Hardware Variability Control (HVC)
– Statistical Process Control (SPC)
Some lean operations principles and tools may not apply, but the methodology will
identify and help you to eliminate waste, thereby making your value streams leaner
2. Laying the Groundwork
However, adopting Lean means getting past some of the
misunderstandings and misperceptions surrounding Lean:
•
•
•
•
“Another management fad that will disappear within a year”
“Cost cutting”
“Headcount reduction”
“Won’t work in my area” e.g. Engineering department
2. Laying the Groundwork
The Benefits of Lean
•
•
•
•
•
•
•
•
•
•
The percentage of patients being met within the target of 62 days rose from
around 40% to 75-80%.
A reduction in the average time to first appointment from 23 to 12 days.
The average time taken for processing a planning application was reduced from 5
days to 2 days.
A reduction in flow time of patients of 48%.
More calls answered at first attempt (30% - 85%)
More queries answered without the need for passing the customer to another
department
Cutting end-to-end time for adaptations to housing for disabled people from over
200 days to 12 days.
Reducing payroll errors from 75% to 2%.
Reducing backlogs in lost and found departments by 80%.
Reducing the time taken in report preparation in the Justice system from 77 to 6
days.
Source: International Public Sector Research & Case studies
3. Developing well-defined Goals & Objectives: Setting
the Stage
1. What is the overall business challenge? What problems does
the business need to resolve?
1. What is the local problem you’re trying to resolve?
1. How will you measure this problem?
1. Did the solution work or not?
3. Developing Well-defined Goals & Objectives - Current
State:
Starts with an assessment of current performance – where are we now?
e.g. Fire Inspection Services
“Violation Orders”
Other
Searching for
information
Seven Deadly Wastes
TIMWOOD
Transportation
Inventory
ValueAdded
Approval
Wait Time
~35%
Motion
Waiting
Meetings &
Conference
Calls
OverProduction
OverProcessing
Defects/Rework
Defects
3. Developing Well-defined Goals & Objectives: Current
State
Facilities Management Services e.g.
Mechanic:
Electrician:
Opportunity
• Client sets the
expectation on how
much of the gap they
want to close
• Bench mark against
“best in class”
Opportunity
Operator:
KCB’s experience is that
clients can recover a
minimum of 50% of the
Non Value Add activity
10
3. Developing Well-defined Goals & Objectives: Current
State
Supervisory Study - Facilities Management Services
Typical “Day-in-the-Life
7%
39%
6% 2%0%
Active
Description
Active
Admin
Planning
Travel
Training
Inspection
Manual
Available
Admin
Planning
Travel
Training
46%
Inspection
Manual
Available
Code
Time
VA/NVA
Min.
36
202
32
10
0
0
0
236
Percent
7%
39%
6%
2%
0%
0%
0%
46%
11
3. Developing Well-defined Goals & Objectives: Current State
TRMS Eng-Design
ProgramProE
HarlingenOff ice
CODS
TSO ELC
EDE
Sample Part: XXX
CSC
Buy er-Labarge
EngPurchasing- MAC
Labarge
Planning
PAC
Sup
Liv e port
Eutelsat
Link
CODS Eng-Checking
ProE
Cape Receiv ing
Mission Integration
Truck Driv er
Eng-Mission Int
Receiv ing
Quality Inspection
Receiv ingData
Drafter-Centaur
Drafter-Booster
Eng-Structures
Eng-Fluids
Eng-Av ionics
Eng-Sof tware
Sup
port
Supplier Data
Receiv ing- Sup
Asset Specialist port
Sup
Receiv ing
port
CODS
Eng-Chief
Conf iguration
CODSCVSPADR Manag ement
Repro-Distribution
ProE CODS Admin
Repro-Copy
Saf ety
ReproductionPhotographer
Eng-Sy stems
ProE
PADR Model Control
Repro- CADS
Lead
ReproCADS
Data Entry
TSO
CODS
PADR Release
Mission
Success
Sup
port Order Control
CADS
Reproduction
Product Assurance
Sup
Sup port Quality
Ref lec
MAC port Contracts
Eng-Mechanical
tions
PAC
EMAS
CODS
MachinistMAC
MPPS
CODS
KSA
MAC
Tool
Print Crib
MPPS PAC
Sup SubcontractProcess
PAC
Asset Specialists
FMPPlanningMPPS
port
Admin
ELC
Material
Information Flow
PADR
Planning0
CVS
Intra-site Flow
Eng-QA CODS
Eng-Production
Inter-site Flow
PODSPIRS
Eng-Test
Denotes site change
Denotes building change
DM
Production Planning
Transactional Statistics
Total Systems Employed:
19
Total Info Transactions:
399
- Manual Trans:
277
- Systems-based Trans:
122
Information Pathway Distance
- Inter-site:
4,105 miles
- Intra-site:
44,960 feet
- Time Variation: 3 hours
Findings
• Sign-off processes lack system
efficiency and result in manual
reproduction effort (44 of the 56
change order steps are manually
completed)
• Non-interfaced systems require rekeying of data
• Multiple systems generate
additional work to maintain and
update data (EBOM vs. MBOM
configuration)
• Local application used to track and
manage data flowing through the
release and configuration
management areas duplicates work
in CODS (File Maker Pro)
Information space maps reveal complexity added to the value stream through inefficient
system and data flows
3. Developing Well-defined Goals & Objectives
Lean goals & measures need to reinforce the new configuration of work and
encourage the minimization of “distance, friction, space and time”.
Sample Lean Metrics
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•
•
•
•
•
Cycle times
Customer service levels (e.g., late orders, delivery performance)
Total product throughput time
Resources consumed per unit of output
Resources employed per unit of output
Inventory / working capital turns
Return on assets
Hand-offs in critical processes
Distance parts/materials, travel
% of workforce cross-trained
3. Developing Well-defined Goals & Objectives A Radical Thought
• In most businesses, do managers contemplating improvement
need to measure at all?
• A gemba walk through an end-to-end value creating process is
often sufficient to grasp the situation , identify the problem
and the opportunities, and envision a better future state.
• Because no customer thinks there is value for them in
measurement, or counting. Lean measurement should mean:
– The least possible counting – mostly of physical measures
– Summarizing the current state of value creating processes and
measuring improvements in the future state due to specific changes in
the process.
4. Team Selection
• Cross-functional and include customers and suppliers
– People who have a “stake” in the value stream
• Customers: e.g. Hospital Patients, Building owners (Fire Prevention Services)
• Suppliers e.g. Facilities maintenance, Procurement
• People who actually “do” the work
• Managers who are prepared to go the gemba and “roll up
their sleeves” (you may have to “help” prepare them)
• Ideally, people who are familiar with the PDCA cycle
– Plan, Do, Check, Act (See Appendix for explanation of the PDCA cycle)
• People who’ve had some exposure and training on the
application Lean tools & techniques, in particular
– Value stream mapping
– Observations (Day-in-life)
5. Organizational Buy-in: The Roots of Engagement
So what is it that prevents an organization from implementing its
Lean Strategy?
In our experience responses can generally be categorized into
one of the two following gaps:
1. The first gap occurs when an organization tries to execute its
lean strategy despite its people, rather than through them.
2. The second gap is formed by the organization’s failure to
create a process that clearly outlines how the strategy will be
executed, and most important, connects the people to each
other in that execution.
5. Organizational Buy-in: The Engaged Difference
1. PEOPLE WANT TO BE PART OF SOMETHING BIG.

They must understand the big picture workings of the business and
the overall purpose that it serves. Both of these contexts help people
realize that what they can achieve with others is greater than what
they could do by themselves.
2. PEOPLE WANT TO FEEL A SENSE OF BELONGING

When people are truly engaged, they believe that they really belong.
They have a sense of meaning or validation when they feel that they
“fit”, they’re accepted, they’re one of the group.
5. Organizational Buy-in: The Engaged Difference
3. PEOPLE WANT TO GO ON A MEANINGFUL JOURNEY
 We all want to be on some kind of purposeful adventure that matters.
As part of moving forward, there’s a feeling of excitement, pioneering,
discovery – and a sense of accomplishment that comes from achieving
something that matters.
4. PEOPLE WANT TO KNOW THAT THEIR CONTRIBUTIONS
MAKE A SIGINIFICANT IMPACT OR DIFFERENCE

Engaged people feel that whatever they’re doing is unquestionably
connected to making a difference in the lives of other people. If he’s
engaged, the librarian who repairs books believes that he’s saving
history for future generations. The hotel employee who sets up the
breakfast bar believes she’s helping the business person prepare for a
successful day.
5. Organizational Buy-in: The Engaged Difference
Questions for Answer:
1.
2.
3.
4.
Do employees understand the big picture workings of the business and
the overall purpose that it serves?
Do managers, front-line supervisors and workers see where they belong
in executing the strategy of the business?
Are employees asking themselves “How can I improve the performance
of our business?”
Do employees know or believe that their contributions can make a
significant impact or difference?
How many employees would answer “Yes” to the above?
Is Management working on this?
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5. Organizational Buy-in: An Engagement Technique
“Oranging” it:
An innovative Problem Solving and Value Stream Improvement Technique
Michael Rosenberg – Author of “The Flexible Thinker”