charity effectiveness: lean charities
DESCRIPTION
Presented at NCVO's Trustee Conference on Monday 11 November 2014. The presentation was by Neil Fedden, Specialist Lean trainer and consultant. These slides highlight the importance of viewing our organisations as our customers/beneficiaries see us. Introducing an approach to understanding and improving core & support processes including the use of 'lean' tools, and we explore how these tools can best be applied within the voluntary sector To learn more about governance: http://www.ncvo.org.uk/practical-support/governance To find out about NCVO's Trustee Conference: http://www.ncvo.org.uk/training-and-events/trustee-conferenceTRANSCRIPT
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PM1: Charity effectiveness: lean
charities
Nigel Kippax, NCVO
Neil Fedden, Lean Expert & Trainer
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Introductions
• Nigel Kippax – Head of Consulting and Training at NCVO• Neil Fedden – Fedden USP (NCVO training partner)
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Today’s learning: Remember Pareto
are rooted in
20% of the content
80% of the benefits
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NCVO Consulting & Training
Programme Management
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Lean - Opening thoughts
• Lean is not just a toolbox for improvement, it’s a way of thinking which is relevant to all organisational levels.
• Much of the LEAN terminology has been developed in the corporate sector. We may need to develop the language to fit the voluntary sector and will certainly need to create case studies from the voluntary sector.
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It’s all about maximising the ratio
Lean - Opening thoughts
Resources
Impact
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Introduction to Lean approaches
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What is our USP?
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Challenges Facing UK Charities
• Pressure to deliver more impact with less resources.
• Need to be more innovative and responsive to the needs of beneficiaries.
• Need to introduce new service or product offerings more frequently.
• Increased competition from the corporate sector in the delivery of many service contracts.
• Others??
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Why the need to change?
Improve
Do nothing
Decline
Time
Improvement
Company X
Competitor
If you do nothing then you will fall behind your competition as they improve !!
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5 Principles of Lean
Value
Value Stream
Flow
Pull
Perfection
Process Mapping
Kanban
Kaizen
7 Wastes + 1
WorkplaceOrganisation
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Non Value AddingTransport
Inventory
Movement
Delays
Overproduction
Overprocessing
Defects
Skills & Talent
95-80%
Value Adding
5-20%
Value & Waste
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LEAN – elimination of information waste
Bottleneck Departments
Lots of signatures/validation checks
Multiple Uncontrolled documents
High levels of data
re-entry/keying
Production of reports that
nobody reads
Unofficial fast-track routes that cause
errors
Personal filing systems
Unpredictable process lead-
times
Batching of documents
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Step 1 – Current state process map
Step 2 – Identify and prioritise process waste
Step 3 – Process re-design to eliminate waste
Step 4 – Cost/benefit analysis
Step 5 – Action Plan and start implementation
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Plan
DoCheck
Act
Do:5. Understand currentpractice6. Analyse the facts7. Develop solutions8. Try out solutions
Act:10. Adopt the solution11. Review performance12. Consider further improvements
Check:9. Ensure goals are met
Plan:1. Project selection2. Explanation3. Setting goals4. Action plan
The PDCA Cycle – Plan Do Check Act
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Group Activity
• In small groups discuss the types of information waste you have within your business
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Legal Expert Before – Group Case Study
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Process Mapping - Receive Specification and Produce Legal Copy
Description Dist. (m) Time (mins) Staff Operation Transport Inspection Storage1 Delay until received spec. is picked up by Secretary 0 30 0 X2 Carry from mail area to Secretary's desk 5 1 1 X3 Wait until convienient to 'process' it 0 60 0 X4 Log receipt into Project Tracking system & create file 0 1 1 X5 Store file in Out-Tray 0 15 0 X6 Move file to Legal expert's In-Tray 5 1 1 X7 Await Legal expert's attention (busy) 0 1440 0 X8 Legal expert processes copy 0 20 1 X9 Store processed copy in Out-tray 0 2880 0 X
10 Move copy to Secretary's desk when convenient 5 1 1 X11 Delay until Secretary logs completion on Project Tracking 0 180 0 X12 Take copy file to photocopier 10 2 1 X13 Photocopy x 3 0 2 1 X14 Return with copies to desk 10 2 1 X15 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X16 Take 3 x envelopes to departmental Out-Tray 5 1 1 X
Totals 40 4651 9.7 daysValue Add 38
Non Value Add 3170Necessary Non Value Adding 1443
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Legal Expert After – Group Case Study
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Process Mapping - Receive Specification and Produce Legal Copy
Description Dist. (m) Time (mins)Staff OperationTransport Inspection Storage1 Red Envelope' delivered straight to legal experts desk by mail room 5 1 1 X2 Await Legal expert's attention (busy) 0 1440 0 X3 Legal expert processes copy and logs onto Project Tracking 0 21 1 X4 Move copy to Secretary's desk as soon as document is processed 5 1 1 X5 Take copy file to photocopier 10 2 1 X6 Photocopy x 3 0 2 1 X7 Return with copies to desk 10 2 1 X8 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X9 Take 3 x envelopes to departmental Out-Tray 5 1 1 X
Totals 35 1485 3.1 daysValue Add 38
Non Value Add 4Necessary Non Value Adding 1443 1481
Hines et al (2000) Value Stream Management
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Next steps
• The Lean Charity Tuesday 24th February1-day training at NCVO
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Thank you
Nigel Kippax
Neil Fedden
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NCVO/BWB Trustee Conference 2014