Presentation Transcript

1. Process Improvement Techniques

   An Introduction to Lean
2. What Can Lean Do For You? GFOA Lean Training: Module 1
3. Irving’s Results Began in 2007: Eliminated 50,000+ hours Saved $44 million Cost savings and avoidances Businesses & Residents: Improved service and satisfaction Faster services Employees’ Increased: Productivity Job satisfaction Communication Collaboration / teamwork Development/leadership opportunities GFOA Lean Training: Module 1
4. Results Commercial Permit Process Plan review time reduced by 76% (15.7 to 3.7 days) Maximum plan review time reduced 88% (49 to 6 days) Street Cut Repairs Reduced repair cycle time from average of 14 weeks to <6 weeks Utility Locates Reduced process steps from 32 to 7 Reduced cycle time by 48% (from 75 to 39 hours) Animal Services Processes Decreased shelter processing time by 50-66%, saving 1,120 hours annually Decreased field officer time by 50-66%, saving 2,330 hours annually GFOA Lean Training: Module 1
5. A Brief History of Lean What we think of as Lean originated with the Toyota Motor Company Toyota was looking for a way to provide variety with limited capital equipment Popularized in the West and dubbed “Lean” by an MIT study of the global car industry The Machine that Changed the World Lean has since spread far and wide Now virtually de rigueur in the auto industry and spread to many other manufacturing industries Extremely popular in many industries outside of manufacturing, from health care to fast food. Now making inroads into government GFOA Lean Training: Module 2
6. A Definition of Lean Lean is… A system of thinking and way of working that emphasizes providing value to the customer of a service and eliminating waste found in the workplace. Often thought of as “process improvement” and is known for its expansive toolset. These tools are important, but at its best Lean becomes a way of life for an organization where there is a continuous journey toward perfection. Lean is not something that is done once or a few times per year, rather it is ingrained into the DNA of the organization. GFOA Lean Training: Module 2
7. In Lean Waste is the Enemy Lean postulates there are 8 forms of waste that occur in business processes Lean teaches employees to recognize these forms of waste Kaizen and lean tools are used to make the waste visible and to eliminate it Gradually, employees are able to recognize waste immediately, so they can continually strive to eliminate it. GFOA Lean Training: Module 3
8. What “Waste” Means in Lean Waste is where to begin looking for process efficiencies It stimulates thinking about new ways to serve the customer It helps focus the search for efficiencies Lean does not suppose that all “waste” can be eliminated Some steps may be required by law or necessary for administrative purposes It is physically impossible to eliminate 100% of waste World-class companies still have 50-75% waste in some of their processes! However, through continuous improvement, we can consistently reduce waste to move towards the ideal process GFOA Lean Training: Module 3
9. Examples of Tricky Areas of Government “Waste” Answering the public’s questions To what extent are questions related to first-time inquiries vs. failure to resolve the question earlier? Applicant wait times Applicants (e.g., permits) are annoyed by waiting, but… does the wait allow for review by other citizens impacted by the request? Subsidy of services A subsidy means citizens do not pay the full cost of a service, but … does the service have a larger public benefit? GFOA Lean Training: Module 3

10. The 8 Forms of Waste

    “The most dangerous kind of waste is the waste we do not recognize.” Shigeo Shingo
11. 8 Forms of Waste Defects Over-Processing / Inspection Waiting Inventory/backlog Transport Motion Over-production Underutilizing people’s abilities GFOA Lean Training: Module 3
12. Defects Ideally work is performed correctly the first time. A defect happens when incorrect or incomplete work is sent to the next step in the process or to the customer. Avoiding defects starts with understanding the customer’s definition of service quality. Once the definition of quality is understood, the process must be controlled to consistently deliver services that are free from defect. GFOA Lean Training: Module 3
13. Defects = Rework Examples of defects and rework Defective instructions on forms, requiring customers to call for assistance Failure to provide individualized attention to students-at-risk requiring more costly remediation later Services not performed when scheduled, requiring customers to call to chase progress GFOA Lean Training: Module 3
14. Over-Processing / Inspection Over-processing is putting more work into a product or service than is necessary to meet the customer’s requirements Inspection/checking is a particularly prevalent form of this waste, especially in government Over-processing can come in other forms Overly elaborate reports Collecting too much information from constituents GFOA Lean Training: Module 3
15. Over-Processing / Inspection You can not inspect your way to quality Because work should be done right the first time, inspection and checking is a form of waste. A good process is designed with controls in place that are judicious and strategic. Consider the compliance pyramid as an alternative (2 slides later) When checks are necessary consider if peer checks or self-checks are an option
16. Fun Fact A global study of automotive manufacturing showed that it took one German luxury car manufacturer more time to inspect and correct for defects than it took a Japanese luxury car manufacturer to build an entire car* *See: Womack, et al. 2007 GFOA Lean Training: Module 3
17. The Compliance Pyramid* *Teeuwen, 2011 GFOA Lean Training: Module 3
18. Waiting The idle time created when employees wait for invoices, copiers, parts, materials, machines, information from coworkers, help, etc. Wait time = downtime Causes include: Unbalanced workloads Too few office machines Quality problems or bottlenecks GFOA Lean Training: Module 3
19. Waiting Waiting could also apply to customers Citizens waiting in line is a waste of taxpayer time Other departments waiting is delaying the value stream the public Students waiting is time not spent learning GFOA Lean Training: Module 3
20. Inventory / Backlog In an administrative process, the sum of all tasks waiting to be processed is considered inventory or backlog A primary culprit is batch processing Lean advocates continuous flow of work Poor housekeeping may also contribute “5S” is a simple but powerful Lean tool for improving the organization of the work environment – from one’s own work area, to a vehicle, to an entire office or department GFOA Lean Training: Module 3
21. Inventory/Backlog Physical inventory is a waste too Must be stored and insured Is not a liquid asset Physical inventory could be a great opportunity for hard-dollar savings Example: Fort Wayne reduced street light inventory budgets and actual expenditures by over 50% ($250,000) over three years* *Richard, 2008 GFOA Lean Training: Module 3
22. Transport Transporting anything that does not directly add value to a final product or service is a form of waste. Documents, materials, customers Hand-offs could be a major source of transport waste Improper electronic workflow could be a culprit Beware simply doing the wrong thing faster however Suboptimal office layout may also play a role Consider spaghetti diagrams. GFOA Lean Training: Module 3
23. Spaghetti Chart* Before After *Courtesy of Gwinnett County, GA GFOA Lean Training: Module 3
24. Motion Excess motion to complete a task causes waste Poor ergonomics can lower productivity Searching is another form of motion waste Consider 5S to help with this Train employees to use computer short-cuts Develop standard, easy-to-read formats for policies and procedures GFOA Lean Training: Module 3
25. Follow Basic Workplace Design Principles Chairs Ergonomic, adjustable Consider if chairs are necessary – standing may be better in some cases Storage Provide enough so that frequently used items are within reach, without twisting or turning. Avoid excess storage Use gravity to move materials Avoid requiring jerking motions, excess reaching U or L-shaped desks are good GFOA Lean Training: Module 3
26. Over-Production This kind of waste results when a product is made in greater amounts than necessary Root cause is poor understanding of customer’s requirements Common examples Distributing information that isn’t read Creating services or rules that aren’t needed Information overload! Producing any service that constituents don’t need GFOA Lean Training: Module 3
27. Underutilizing People’s Abilities The most insidious form of waste is failing to make use of employees’ full talents and skills Big example: Using sworn police officers to perform administrative tasks that could be performed just as well by civilians Smaller examples Lack of cross training to allow idle employees to help resolve temporary bottlenecks Lack of skill monitoring and professional development Not promoting a healthy workplace GFOA Lean Training: Module 3
28. Recognizing Waste Taichii Ohno said… Eliminating waste is easy, recognizing waste is difficult Use tools like value stream maps, swim lanes, or 5S to make waste visible – or be creative One school made student transport waste visible Buses were delayed up to two hours trying to get all students on the right bus Instead, all buses left on time, leaving stragglers. This made the causes of the delay visible and easier to deal with. The stragglers were put on a spare bus and even ended up getting home earlier than usual! Now a little practice… GFOA Lean Training: Module 3
29. Exercise for Identifying Waste Example: Accepting an application for a business license Instructions Identify the non-value adding activities For each non-value adding activity, identify the type of waste 5 minutes to complete GFOA Lean Training: Module 3
30. Identify Waste Instructions. Identify which steps are waste & what kind of waste Open envelope_____________________ Review application for completeness______________________ Contact applicant for missing info___________________ File application until info is received__________________ Examine history of applicant for violations, etc._________________ Process application_________________________ Print embossed license________________________ Get city clerk to sign the license*_________________ Get mayor to sign the license**__________________ Mail the license________________________ Applicant receives license______________________ *Legally required to run a business **Mayor wants to know what businesses are operating in town GFOA Lean Training: Module 3
31. The End GFOA Lean Resources June 2013 issue of Government Finance Review All Lean issue Lead article available for free on-line GFOA Lean training I have attended several GFOA training programs over the years. In my opinion, this was not among the best - the "Lean" program was clearly THE BEST training program I have ever attended! Tim Kelso, Douglas County, Nebraska