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HSA Conference Cardiff 2009

HAS Conference Cardiff 2009 Samuel, Evans

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HSA Conference Cardiff 2009

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    1. HSA Conference Cardiff 2009 Rethinking for radical improvement in the delivery of housing services: the application of lean systems thinking in the housing sector Donna Samuel Barry Evans Paul Helyar

    2. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 2 Who are we? Donna Samuel – Researcher in Lean Enterprise Research Centre (CARBS) currently completing her PhD Barry Evans – Senior Research Associate in Lean Enterprise Research Centre (CARBS) Paul Helyar – Asst Corporate Director (Maintenance), Charter Housing

    3. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 3 What is Lean Systems Thinking Systems Thinking was the approach to business management and improvement espoused by W. Edwards Deming His approach was adopted by Taichi Ohno and became the foundation for the Toyota Production System Womack & Jones popularised the term “Lean Thinking” in their book “The Machine that changed the World” which described Toyota and other exemplars LERC has researched the dissemination of Lean Thinking in manufacturing and service sectors over the last 15 years John Seddon has in the same time frame shown how Systems Thinking can be successfully applied in service business in the private and public sectors

    4. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 4 Seddon – characteristics of Lean Systems Thinking Review the “true purpose” of an organisation It’s definition isn’t the regulatory targets forced upon them It should reflect the experience of the customer that the organisation is supposed to be provisioning Traditional organisations often focus on activities rather than purpose Systematic analysis of demand facing the service organisation Differentiate between value and failure demand Reduce failure demand (which can be as high as 80%) Redesign the system around value demand Study the flow of work end-to-end, identify the causes of variation and where possible remove the causes in order to reduce time and improve service Time-series analysis identifies “common cause” & “special cause”

    5. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 5 Seddon – critical features of Lean Systems Thinking Customer regulation Workers responding to customer need Managers making it easier for workers to do their jobs Sounds simple ……. But extraordinarily elusive !

    6. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 6 Lean Systems Thinking does it work? - evidence from Housing sector Secondary evidence from work undertaken by OPDM in 2005 Follow-up to OPDM report 2005 by NHC 2006 Case studies of two Welsh Housing Associations

    7. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 7 Lean Systems Thinking in the Housing Sector: the work to date 2005 – Office for Deputy Prime Minister - reported In response to “Gershon review 2004” Application of systems thinking in housing undertaken with guidance by Seddon and colleagues Three pilot organisations / range of services Reported “ the work undertaken in all three pilots demonstrates cashable and non-cashable efficiency gains and significant service improvements” 2006 – Northern Housing Consortium Follow-up to investigate the sustainability of the approach in the three pilots

    8. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 8 OPDM (2005) & NHC (2006) results - 1 THG = Tees Valley Housing Group LSEH = Leeds South East Homes PCC = Preston City CouncilTHG = Tees Valley Housing Group LSEH = Leeds South East Homes PCC = Preston City Council

    9. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 9 OPDM (2005) & NHC (2006) results - 2 NHC report 2006 Systems thinking has become embedded in two of the three pilot organisations Remission in the third pilot explained by organisational merger Report concludes that early results have shown the potential for substantial gains

    10. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 10 Case Study 1 – Coastal Housing Association, Swansea Interventions have included the following processes Lettings Maintenance Transfers Rental incomes

    11. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 11 Case Study 1 – Coastal Housing Association, Swansea Findings at “check” Demand analysis – 60% failure & 40% value (typical at “check”) 50% of people sent an appointment did not confirm – hence follow-up letters! Of those who did confirm only 75% kept the appointment End-to-end process time enormous – median 207 days (transfers median 587 days!). Some cases took up to 750 days (2 years+) Processes involved lots of failure demand – batching, checking, audit trails and acceptance of partial information from applicants

    12. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 12 Case Study 1 – Coastal Housing Association, Swansea Improvements Lettings process is telephone based. Applicants receive initial decision within 10 minutes. During that call successful applicants are offered a home visit at a time to suit them Elapsed time from application to home visit reduced FROM 47 days TO 6 days Customer Satisfaction increased & fewer complaints Significant savings

    13. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 13 Interventions – started 2 years ago Maintenance and repairs Lettings Customer Services intervention is imminent Case Study 2 – Charter Housing Association

    14. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 14 Case Study 2 – Charter Housing Association Maintenance & Repairs Intervention

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    17. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 17 Case Study 2 – Charter Housing Association Allocations & Lettings Intervention

    18. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 18 Conclusions Growing interest in Lean Systems Thinking in the Public Sector It has been applied successfully in Housing Secondary evidence (OPDM etc) Primary case study evidence (Coastal & Charter HAs) Both case study organisations have visionary leaders and an inclination towards innovation and experimentation Lean Systems Thinking is a practical way forward for organisations seeking improvements in effectiveness & efficiency

    19. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 19 References - 1 Advice UK., (2008), It's The System, Stupid, Radically Rethinking Advice, Report of Advice UK's Radical Advice Project 2007-2008, supported by the Baring Foundation Bagely, A. & Lewis, E., (2008), Why Aren't We All Lean? Public Money and Management, (Chartered Institute of Public Finance and Accountancy), February Bartezzaghi E., (1999), The Evolution of Production Models: Is a New Paradigm Emerging? International Journal of Operations and Production Management, Vol. 19, No 2, pp. 229-250 Beata, K., Jens, J. D. & Per-Olaf, B, (2007), Measuring lean initiatives in health care services: issues and findings, International Journal of Productivity & Performance Management, 56, 7-24 Bhasin, S. & Burcher, P., (2006), Lean Viewed as a Philosophy, Journal of Manufacturing Technology Management, 17, 56-72 Bushell, S., Mobley, J. & Shelest, B., (2002), Discovering Lean Thinking at Progressive Healthcare, Journal for Quality & Participation, 25, 20-25 Chapman, J., (2004), System Failure: Why Governments Must Learn To Think Differently, DEMOS London Essex, S., Smith, B. & Williams, P., (2008), Final Report of the Task and Finish Group, Commissioned by the Deputy Minister for Housing, WAG Hines, P., Holweg, M. & Rich, N., (2004), From Strategic Toolkit to Strategic Value Creation: A Review of the Evolution of Contemporary Lean Thinking, International Journal of Operations and Production Management, 24, 994-1011 Jackson, M., Johnston, N. & Seddon, J., (2008), Evaluating Systems Thinking in Housing, Journal of the Operational Research Society, 59, 186-197 Katayama, H. & Bennett, D., (1996), Lean Production in a Changing Competitive World: A Japanese Perspective, International Journal of Operations and Production Management, 16, 8-23 Krafcik, J. F., (1988), Triumph of the Lean Production System. Sloan Management Review, 30, 41-52 McQuade D., (2008), New Development: Leading Lean Action to Transform Housing Services. Public Money and Management, (Chartered Institute of Public Finance and Accountancy), February NHC, (2006), A Systematic Approach to Service Improvement - An Update: Evaluation the Sustainability of Systems Thinking in Housing, Northern Housing Consortium

    20. References - 2 OPDM, (2005), A Systematic Approach to Service Improvement, Office of the Deputy Prime Minister Papadopoulos, T. & Merali, Y., (2008), Stakeholder Network Dynamics and Emergent Trajectories of Lean Implementation Projects: A Study in the UK National Health Service, Public Money and Management (Chartered Institute of Public Finance and Accountancy), February Papadopoulou, T. & Ozbayrak, M., (2005), Leanness: Experiences from the Journey to Date, Journal of Manufacturing Technology Management, 16 Radnor, Z. & Boaden, R., (2008), Lean in Public Services - Panacea or Paradox? Pubic Money and Management (Chartered Institute of Public Finance and Accountancy), February Radnor, Z., Walley, P., Stephens, A. & Bucci, G., (2006), Evaluation of the Lean Approach to Business Management and Its Use in the Public Sector, Warwick Business School Seddon, J. & Brand, C.,(2008), Systems Thinking and Public Sector Performance, Public Money and Management (Chartered Institute of Public Finance and Accountancy), February Seddon, J. & Caulkin, S., (2007), Systems Thinking, Lean Production and Action Learning, Research and Practice, 4, 9-24 Seddon, J., (2005), Freedom from Command and Control: a better way to make the work work, the Toyota system for service organisations, Vanguard Education Ltd. Seddon, J., (2008), Systems Thinking in the Public Sector: The Failure of a Reform Regime and a Manifesto for a Better Way, Triarchy Press Shingo, S., (1989), A Study of the Toyota Production System from an Industrial Engineering Viewpoint, Cambridge, MA, Productivity Press Spear, S. & Bowen, H., (1999), Decoding the DNA of the Toyota Production System, Harvard Business Review, Sep-Oct Spencer, C. & Guide, V., (1995), An Exploration of the Components of JIT - Case Study and Survey Results, International Journal of Operations and Production Management, 15, 72-83 Swank, C., (2003), The Lean Service Machine, Harvard Business Review, October Womack J. and Jones D., (1996), Lean Thinking, Simon and Schuster, London Womack J. and Jones D., (2005), Lean Solutions: How Companies and Customers Can Create Value and Wealth Together, Simon and Schuster, London Womack J., Jones D. and Roos D., (1990), The Machine That Changed The World, Rawson Associates, NY

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