Presented to
Delta LTMS Regulatory
Technical Work Group
Presented by
Dr. Joshua Burnam and Mr.
Steve Cappellino
April 24, 2007

• Lean Six Sigma is a statistical concept that measures a process in terms of defects, with the goal of reducing variability, decreasing defects and increasing efficiency using rigorous quantitative methods.
• Value Stream Mapping and Analysis (VSA) is one application of the Lean method designed to reduce waste and inefficiency for both the process owner and customer by “mapping” a process flow and looking for areas that can be improved.

• VSA in our potential application would be applied to the agency “web” for project approvals, and would look for ways to unify/improve the application process; reduce inefficiencies such as feedback loops and do-overs; and improve public perception.
– We would essentially walk the “web” as an applicant.
•
The unified process map would be a starting point for an ad-hoc, or formal,
DMMO; a consolidated permit application; or other process improvements for agencies.
•
It will help applicants know what the order of operations is; what the information they need is the first time through; what works and what does not.
• Initial success would be defined by:
– A process map
– Agency recognition of their role in the larger web
– Applicant recognition of their role in the process

Inputs
Process Outputs
Suppliers:
Permit Applicants
Applicant Agents
Interested Members of the
Public
Resource Agencies
HQACE
Local Gov’t.
What:
Application
Project Information
Opinions
Private Design
Applicability of Rqmts
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Major Elements of the
Regulatory Process:
Public Notice
Endangered Species
Review of Completeness
Section 106
Jurisdictional determination
Scope of Analysis
Alternatives Analysis
404(b)(1) Guidelines
NEPA Analysis
Public Interest Determination
Develop the Package
401 Certification
CZMA
Consultation with Indian Tribes
Public Hearings
Customer:
Permit Applicants
What:
Permit Decision
Trigger:
J.D. Request or Application
Received
Done:
Permit Decision Issued

1. Business Case… Why are We Here?? How will this Benefit us??
Efficiency must be increased to maintain the quality of permit decisions and improve public perception.
2. Key Requirements (Musts)…
Requirements That
Can’t
Be Changed
Existing Statutory and Regulatory Requirements
3. Value Statement…
Total Value Stream Examined in This VSA
Efficient entry into the process by applicants, and timely permit decisions that comply with State and Federal laws and regulations and, if a permit is issued, enables the applicant to proceed with a practicable project.
4. Key Measurements… 2 to 3 Metrics which we will measure future success by
1.
Turn-a-round Time – i.e. elapsed time from date a complete application is received by all agencies to issuance of final permits. Goal is 120 days.
2.
First Pass Yield of Applicant Submittals – Percent complete and accurate the first time. Goal is to increase FPY to <90%

• Not a delegated activity
• Minimum requirement is “value stream” Leadership Team
– KEY LEADERS
– PM, PROCESS OWNER(s)
– MANAGERS/SUPERVISORS of the PROCESS
– SME’s
– KEY STAKEHOLDERS
– CUSTOMERS of the VALUE STREAM
– SUPPLIERS to the VAULE STREAM
• Limit attendance to no more than 20 people
• Schedules are cleared for full-time participation (3.5 days)
• Hang time - not an 8 to 5 activity - plan on long days

• In our case – a Case Study
• Performance metrics
– CURRENT YEAR-TO-DATE
– PREVIOUS FISCAL YEAR
• Demand (historical and projected)
– BY END-ITEM DELIVERABLE
– $’s AND #’s
• Voice of the customer
– Key issues
– Key Opportunities
• Current organization chart
• Facility block layout

• centrally located team room with lot’s of wall space
• LDC projector
• DVD player and TV
• 2 paper flip charts on sturdy stands
• colored markers (both wide tip and fine point)
• roll of butcher paper
• roll of masking tape
• roll of scotch tape
• post-it notes (various sizes and colors)
• sticky dots (“nickel sized” red and green in color)
• name tags (sticky paper-type are fine)
• drinks and snacks

1: DEFINE THE B OUNDA RIES
2: DEFINE THE VA LUE.
3: SET UP THE M A P .
prepare
4: OB SERVE A ND GA THER DA TA
5: M A P THE FLOW OF ITEM S
6: M A P THE FLOW OF INFORM A TION
7: A DD DA TA B OXES A ND HIGHLIGHTS current co nditio ns visio n plans
8: GO B A CK TO THE GA RA GE
9: CHOOSE NA TURA L GROUP S
10: DEVELOP IDEA L STA TE M A P breakthro ughs
11: DEVELOP FUTURE STA TE (6-12 M O. M A P )
12: DEVELOP A CTION P LA NS A ND TRA CKING

• Define (2-3) measures you want to impact by
10-50% in the next 12 months through the application of VSA
– WHAT? HOW MUCH? BY WHEN?
– GO NOWHERE, START NOTHING UNTIL
EXPECTATIONS ARE CLEARLY DEFINED
– MAKE SURE YOU AGREE WHAT YOU WANT FROM
LEAN AND HOW TO MEASURE IT
Step 1: Define “what” you want from Lean

Day One
08:00 – 08:30 Process Owner Kick-off & Introductions
08:30 – 11:00
Value Stream Analysis Briefing
11:00 – 12:00 Define the Boundaries Step 1
12:00 – 13:00 Lunch
13:00 – 15:00 Set Up the Map - Steps 2-3
15:00 – 1700
Walk the Process - Observe and Gather Data Step 4
Day Two
08:00 – 08:30
Review Day 1 and Plan for Day 2
08:30 – 10:00 Continue to Observe and Gather Data - Step 4
10:00 – 12:00 Build the Current State Map – Steps 5-7
13:00 – 14:00 Go Back to the Garage – Step 8
14:00 – 15:00 Choose Natural Groups – Step 9
15:00 – 1700 Develop Ideal State Map – Step 10

Day Three
08:00 - 08:30
08:30 - 12:00
12:00 - 13:00
13:00 - 17:00
Day Four
08:00 - 10:30
10:30 - 11:30
11:30 - 12:30
12:30 - 15:30
Review Day 2 and Plan for Day 3
Develop Future State Map – Step 11
Lunch
Develop Action Plan and Tracking - Step 12
Prepare Outbrief
Outbrief
Lunch
Prep for First Rapid Improvement Event

Value Stream Analysis Charter
Value Stream Output and Description
:
(What is the value provided to the customers of this Value stream?
Provide a comprehensive list of deliverables)
Event Dates:
Preliminary Objectives
:
(What are the key objectives for improving the Quality,
Delivery/Responsiveness, Cost/Productivity of the value stream.
Objectives should be SMART = specific, measurable, achievable, realistic, tangible)
Team Leader:
Co-Leader:
Team Members:
Customer Requirements (TAKT Time):
(Demand on this value stream, i.e., the number of items requested by the customer.)
Current State Process Information: are valuable so include where possible)
(General description of the how the process current performs
– metrics
Process Owner:
Sensei:
Current Situation and Issues:
Why are you conducting this VSA event?
What is your
“burning platform”)

Date: Prepared By:
Event
Name:
Value Stream
3rd Week Before Event:
1: Select area and topic. (Complete VSA Charter Form)
2: Meet with Process leaders(PL) or /Functional Leaders(FL) to:
- Prioritize Value Streams within Area
- Secure Full Time Participation of Team Members
- Obtain PL/FL Commitment to Event Follow-up
3. Prioritize Value Streams within Area
4: Define team leader, co-leader and the team members.
5: Would like site leadership and key site personnel involved
- Team size of 15 - 20 are recommended per Value stream
6. Identify Event Facilitator(s)/Consultant(s)
- Obtain External Consultant Seport As Req'd
7: Define the deliverables expected from the
Event team (eg. Quality Improvement, Reduced
Flow Time, Reduced Cost etc.)
8: Select 2 -3 measurements and targets for the team
that will help define success for the team.
9: Review deliverables, measurements and targets with
the external or internal consultant. Revise if needed.
10: Ask a few hard questions (then revisit 1, 2 and 3):
- Will this team improve your Process/Functional performance?
- Are you focusing your scarce resources on the right priorities?
- what is the business case for analyzing this Value Stream?
2nd Week Before Event:
1: Review "3 weeks before" list, resolve open items
2: Gather data/identify sources on current state
- Identify sources of data on current process (Financial Reports,
Flow Charts, Command Media etc)
- Run reports on actuals etc.
3: Determine current customer steady state demand
4: Determine actual output (if not available use most current
predicted or budgeted figures)
5: Determine top 5-10 categories of problems noted from the
information collected (eg. Shortages,schedule misses...).
6: Review actual customer issues, audit results, etc.
List top 5 issues.
7: Determine key individuals needed to support on ad hoc basis:
- Brief on upcoming VSM Event (non team members that may get involved)
- Secure ad hoc support based on proposed event schedule
8: Secure Conference Room(s) For Event
- Ideally room should be located near work area
- Room must be available for entire duration of event
9: Obtain all necessary supplies for event
- Post it Notes, small square multi color 2 /78x2-7/8 and 3-7/8 5 7/8
- Flip Charts , Markers, tape , scissors
- LCD PROJECTOR
- Butcher Paper (rolls)
- Access to laptop to document event
- Etc.
10: Issue written invitiation to team members. Include
event particulars, time expectations and deliverables.
11: Review and confirm Event team leader, co-leader
and members.
- Make sure team members are committed for the whole event!!!
12: Brief team co-leaders and members: Event schedule,
measurements, targets and deliverables.
13: Review packages from any previous events in this area.
Pay special attention to time observations, layouts
(spaghetti diagrams), accomplishments lists, lessons learned.
14: Brief facilitator/consultant on event
- Review checklist status
- For external consultants review program, key events and individuals
- Provide read ahead material to external consultants on business
& program
Value Stream Mapping (VSA)
Event Checklist
1st Week Before Event:
1: Review "3 weeks before" and "2 weeks before"
checklists. Resolve open items.
2: Revisit Items 8 & 9 from 3 weeks before has anything
changed?
3: Define clearly the boundaries of the Event:
- who are the customers?
- what are the outputs?
- what triggers the area to do something for a customer?
- who are the suppliers? what are the inputs?
4: Hold final prep meeting with Team lead & co-leaders,
resolve any open issues or concerns
5: Arrange for working lunches for team
6: Review event status with facilitator/consultant.

Business Case
In light of increasing workload and complexity associated with the regulatory program, efficiency must be increased to maintain the quality of permit decisions
Value Statement
Timely issuance of a permit decision that comply with Federal laws and regulations and, if a permit is issued, enables the applicant to proceed with a practicable project
Key
Requirements
Domestic Statutory and
Regulatory Requirements
·
·
·
Measurements
Turn-a-round Time – i.e. elapsed time from date application is received to permit issued Goal is 100% within 120 days
Total Application Backlog - i.e. number of applications in process and/or waiting to be processed at any given time. Goal is to reduce by 50%
First Pass Yield of Applicant Submittals – Percent Complete and accurate the first time. Goal is to increase FPY to <90%
·
·
·
·
Ideal State
On-Demand
Defect Free
1-By-1
Lowest Cost
Jurisdictional Determination
I
Applicant
M fo l In rm tio
JDs
I
Field Visit
I
Sec Chief assigns to PM
I
PM Review for completeness
30%
Complete
?
No
Csll/Email
Applicant for more info.
I
Receive
Additional
Applicant Info
Yes
25%
Site Visit
75%
Review
Application
I
Set up Field
Visit
Court and/or
Appeal
I
Division
Process
Correct
I
Y
I
Appeal
Mtg.
Send Additional
Info to District
More Info.
N
Field Visit
Verify
Letter
Developed
Y
I
I
I
I
Office Visit
Verify
Delineatio n
Letter
Developed
Division
Review
Applicant
Appeals
I
Admin
Records Prep
I
2 nd
Applicant
Appeal
I I 1%
PM
Signs
Letter
PM Issues
Letter
I
Develop
Disclaimer Letter
I
Sec Chief
Review
I
Office of Council
Review
I
No permit or
Jurisdiction
Required
A
Indvidual Permit Process
Indvidual Permit Process
Applicants
A
Incomplete
I
Application
Complete
I
Public Notice
Drafted
I
Public Notice
Issued
I
Corp Review
Comment Ltr
I
Ltr to Appl.
I
Letter or Phone
Call to Applicant
I
Recv. Add.
Info
Water
Quality Certif I
Endangered
Species
I
Essential
Fish Habitat I
Coastal Zone
Mgt.
I
Cultural/Tribal
Assess
ESA info.
Review
Response
Contact
Applicant
Effect?
Y
I
No/Maybe
Services
Review
I
Coord w/
Arch/Corps,
Cultural
Resources I
Complete
?
Y
N
Sec 106
Determ
I
I
N
Effect?
Maybe
Generate
Ltrs
I
SHPO Rev
Sec 106
Complete
?
N I
Decision
Document
Complete
?
Y
Consultation
and Draft BD
I
I
Appl and Corp
Review draft
BO
N
Service
Completes BO
Ledgend
External
Organization
MOA
Complete
SHPO signs MOA
Corps forwards
Corps forwards
MOA to SHPO MOA to Tribes
SHPO Drafts
MOA
I
Draft
Decision
Doc and
Permit Ltr.
I
Sec Chief
Review
80%
I
Put in
Final Form
I
Branch Chief/
Distr Eng.
Review
Permit
Decision
Issued
Applicant
Sign
Corps
Sign
Total Flow Time = 152 - 383 days
Total Touch Time = 105 - 132 hours

Value Stream Map
Business Case
In light of increasing workload and complexity associated with the regulatory program, efficiency must be increased to maintain the quality of permit decisions and improve public perception of the regulatory program
Value Statement
Timely issuance of a permit decision that comply with
Federal laws and regulations and, if a permit is issued, enables the applicant to proceed with a practicable project.
Key Requirements
Domestic Statutory and
Regulatory Requirements
Measurements
1. Turn-a-round Time – i.e. elapsed time from date application is received to permit issued Goal is 100% within 120 days
2. Total Application Backlog - i.e. number of applications in process and/or waiting to be processed at any given time. Goal is to reduce by 50%
3. First Pass Yield of Applicant Submittals
– Percent Complete and accurate the first time. Goal is to increase FPY to <90%
Ideal State
·
On-Demand
·
Defect Free
·
1-By-1
·
Lowest Cost
Applicants
Ele ctro nic I nfo rm atio n
Applicant Request
Supermarket
FIFO
Key Changes to Create Future State
- Requirement on applicant is significantly greater
- Applicant is to provide all required info up front
Application is “complete” after application info is verified by PM
- Measure of throughput /turn-around time will include time from application received
- Created one piece flow (uninterrupted concentration on task)
- Reduced the amount of wait time
- Placed permit decision and signature authority on PM
- Included 15 day public notice versus 30 day standard
- Reduced rework by improving the application submittal process
- Corporate policy and regulation need to be re-visited
- Process quality must be addressed
Abandon the “Current State” process
Command must support the new process including “turned back” applications (request for additional applicant info)
-Must establish (mistake proof) guidelines for application submittals
PM reviews and approves for site visit
Schedule site visit
I
Site Visit
Verify
Deliniation
Avoidance/ minimization
Write Public
Notice and
JD ltr.
Permit decision
issued by PM
Complete
Y
N
Public notice
issued
Issue JD verification ltr
One level of review for lower grade PM’s
I
15 day comment period
Start decision document
ESA
Required?
Y
Start ESA
Sec 7 consultation
N
90 Days
45 Days
PM finalizes
Decision Doc.
One Level of review for lower grade PM’s
I
Review draft BO
for signature
Applicant responds to comments to PM
I
30 Days
Comments
Received and sent to Applicant
Continue writing
Decision Doc.
Value Stream Path

Metric
Regulatory
Flow Time (days)
Touch Time (hours)
# People
# Approvals
# Handoffs
Items in Inbox
% Yield of the IP Process
Current
State
Future
State *
Delta
# % Improvement
152-383 77-156 minus 75 - 227
105-132
32
15
30
174-686
1.47
80
11
3
7
*Projected
minus 25-52 minus 21 minus 12 minus 23
10 minus 164-676
56.00
plus 54.53
49 - 59
24 - 61
66
80
77
94
97.4

• “VSA Lite” - 2 Day Process led by SPD Expert Dr. Aaron Allen without consultant
• First Day:
1. Introductions (30 minutes)
2. Brief Introduction to VSA (30 Minutes)
3. Define the Boundaries (2 Hours)
4. Walk the Process and Build Current State Map (4-6 hours)
• Second Day
1. Complete Current State/Review Current State (30 minutes)
2. Develop Ideal State Map (1 hour)
3. Requirements for the Future State (1 hour)
4. Develop Future State (4 hours)

– Prepare our case study, charter, and goals
– Get room for 2-4 days
– Deal with logistics of paying the consultant