Construction Procurement Process

Kaizen Event Report Out

By: Team MC2 (Energy)

April 30- May 4, 2007

“It’s Show Time”

Team Members Christine Brittain

• Don Dietenzbach – DNR, Budget & Finance • Jennifer Nelson – DNR, Budget & Finance • Richard Wilson – DNR Engineering & Realty Services • Janet Savick - DNR, Customer Service • Mike Heldenbrand – DNR Budget & Finance • Basil Nimry - DNR Engineering & Realty Services • Michelle Wilson – DNR, Conservation & Recreation • Kelley Myers, DNR, Legal Services • Ann Preziosi, DNR, Legal Services • Sherry Arntzen, DNR, Parks • Angela Corio, DNR, Parks • Dawn Connet - DNR, IT • Facilitator : Mike Rohlf, DOM and Teresa Hay-McMahan • Co Facilitator: Christine Brittain, DNR

Background Jennifer Nelson

Enhance succession planning and staff allocation.

Eliminate overtime.

Lean the current process.

Ensure legal compliance.

Objectives Jennifer Nelson

• Standardize the process.

• Reduce the number of decisions in the overall process.

• Make the process more transparent.

• Improve customer service.

• Eliminate duplication.

• Ensure legal compliance, including permits.

• Improve coordination and communication with all roles in the process to ensure successful project completion.

Goals Jennifer Nelson

• No project is withdrawn due to funding issues.

• 100% of all reporting documents are prepared to meet customer’s needs.

• Reduce overtime by 80%.

• Reduce the decision points by 50%.

• 100% of all agenda packets are prepared by the day the agenda is set.

• All necessary documents are in order a minimum of one week prior to the commission meeting

Kaizen Methodology Mike Rohlf

• Clear objectives

• Team process

• Tight focus on time

• Quick & simple

• Necessary resources immediately available

• Immediate results (new process functioning by end of week)

• 5S “mindset”, use the steps to support the event activities

Old Process Kelley Myers

New Process Kelley Myers

Results Mike Heldenbrand

Old New % Change (Saved)

# of Steps 258 139 46%

# of Handoffs 104 40 62%

# of Decisions 27 12 56%

% of Value-Add 18.6 % 32.4% 13.8%

# of Value-Adds 48 45 7%

Results

Mike Heldenbrand

Old New % Change

# Loop Backs 1

# of Delays

Lead Time Best and Worst 13hrs/53 hrs

39

Delay Days -Best 224 days

Delay Days - Worst 439 days

7

0 100 %

20 days

43 days

4 hrs/6hrs

82%

91%

91%

69% / 89%

Homework Basil Nimry

Item Item Description Person Responsible Due Date

1 Setup Post Bid Opening Approval Process Kelley, Michelle June 6

2 No special bid lettings <2 days rior to Commission Meeting Basil June 6

3 Notify Paper of Ad 25 days prior to letting Don June 6

4 Spec Book available at time of ad placement Basil June 6

5 Website Training Basil June 6

6 Use Sharepoint for Construction Process Team Dawn October 1

7 Post Bid Opening Meeting Mandatory Kelley, Michelle June 6

8 Establish Minimum Statutory Information Kelley June 6

Homework Basil Nimry

Item Item Description Person Responsible Due Date

9 Karen emails bid stakeholders 24 hours after meeting Kelley, Michelle June 6

10 No Advertising until Plans Signed Basil/Team Meeting June 6

11 Quarterly Prioritization of Cap. Plan Angela/Mike H. June 6

12 Create Checklist of Federal Form Requirements Mike June 6

13 Script for bid letting Kelley/Don June 6

14 Checklist on back of Envelope Kelley/Don June 6

15 One Bid Box Done June 6

16 Pre-qualified bidders list Mike/Basil June 6

Homework Basil Nimry

Item Item Description Person Responsible Due Date

17 Scan documents to store in Engineering application Basil/Dawn June 6

18 Create automated Forms (scripting) Kelley/Don June 6

19 Electronic Faxing Janet June 6

20 Minimize Electronic Routing – Create One Stop Shop Basil/Michelle June 6

21 Shorten Notice to Bidders – Create Standard Language Kelley/Don June 6

22 Advertisement Period 21-45 days (30 days) Don June 6

23 Advertise Electronically to Needed by Law Don June 6

24 Print Checklist on Envelopes Kelley/Don June 6

Homework Basil Nimry

Item Item Description Person Responsible Due Date

25 Survey Contractors on effectiveness of mailed bid process; determine what percentage goes through regular mail

Janet June 6

26 Outside Vendor Research Don/Janet June 6

27 December ’08 – link expires to DAS website Jennifer June 6

28 Create FAQ/QA on bidding process for DNR website Kelley/Don June 6

29 Overhaul Notice to Bidders (Kelly/Don) Kelley/Don June 6

30 Definitions Page of Thresholds Jennifer/Kelley June 6

31 Develop Printing Contract Don June 6

32 Train on new process to direct all bid status inquiries to the web (FAQ/Q&A)

Kelley/Don June 6

Homework Basil Nimry

Item Item Description Person Responsible Due Date

33 Develop Protocol for bid letting meetings and C&R team

Kelley/Michelle June 6

34 Investigate Outside Printing Sources Don/Janet/Kelley June 6

35 Re-negotiate process with DAS Janet/Jennifer June 6

36 Electronic Notification of NOB/Adds w/contractors Janet June 6

37 Stuffing Machine Basil/Janet June 6

38 Scanner to upload Info to disseminate Basil/Don June 6

39 Faxing from Computer Janet June 6

40 Send out final info by email or form letter Janet/Don/Kelley June 6

1

Homework Basil Nimry

Item Item Description Person Responsible Due Date

41 E-mail group lists need to be designed Michelle June 6

42 Form emails Kelley/Don June 6

43 Pre-sch. Meetings for bid lettings Kelley/Michelle/Janet June 6

44 Monthly meetings w/C & R and Engineering Michelle June 6

45 Training & feedback on

Parking Lot Don Dietzenbach

• Record Retention Handling

• Substantial Project Changes (more than 20%)

• Signature for Progress Payments (legal review)

• Bid letting coincide w/agenda mailing to be addressed at future Kaizen

Parking Lot – Mini Jennifer Nelson

• Witness bid opening

• 48 hours before issuance of bids

• Field inspector not receiving email on TSB posting

• Faxed signatures

• Record retention/handling

• Notice to Proceed/Letter Contractor Work

• What reports are generated?

• Plan signatures for design team

• Post-it Note in document that may become a contract

Team Member’s Experience Dawn Connet

Sherry Arntzen Janet Savick

Comments Mike Rohlf – Department of Management

Destination Excellence Continuous Improvement

We welcome your questions and comments!

Destination Excellence Continuous Improvement

Ideas to be Implemented Angela Corio

Standardization • Script for bid letting (stat min) I10-D2 (Quad I)

• Form letters for award I10-D1 (Quad I)

• Check list on back of envelope I7-D2 (Quad I)

• Use engineering application – modify for add needs. I8-D4

(Quad I)

• One bid box I7-D1 (Quad I)

• Pre qualified bidders list I6-D4 (Quad I)

• Website training I5-D2 (Quad I)

Ideas to be Implemented Michelle Wilson

Establish Business Rules • Change orders approved by inspectors after budget validation. Eliminate

DA approval and B.C. I7-D1 (Quad I)

• GAX for payment engineering PM to fiscal CC interested partners I7-D1 (Quad I)

• Setup post bid opening approval process and define participants. I10-D1.

(Quad I)

• No special bid lettings, greater than 2 days prior to CM. I6-D1(Quad I)

• Define acceptable bid. I8-D4 (Quad I)

• Notify paper of ad 25 days prior to letting I9-D2 (Quad I)

• Spec book available at time of ad placement. I8-D3 (Quad I)

Ideas to be Implemented Michelle Wilson

Communication • Web site training I5-D2 (Quad I)

• Use share point for Cons process team I6-D5 (Quad I)

• Post bid opening meeting mandatory I10-D1 (Quad I)

• Capital plan adjustments I8-D2 (Quad I)

• Establish minimum stat information I8-D3 (Quad I)

• Map and publish decision matrix I10-D2 (Quad I)

• Karen emails bid stakeholders 24 hours after meeting I6-D1

(Quad I)

Ideas to be Implemented Janet Savick

Communication • E-mail group lists need to be designed I10-D1 (Quad I)

• Form e-mails I10-D1 (Quad I)

• Pre schedule meetings for bid lettings I10-D1 (Quad I)

• Monthly meetings with C&R & Engineering. All bid projects

corrected I10-D1 (Quad I)

• Cross training I10-D1 (Quad I)

• Notice of C & R staff changes in a timely manner to update web system I10-D1 (Quad I)

• Combine all process into 1 job I10-D6 (Quad I)

Ideas to be Implemented Janet Savick

IT Solutions • All databases spreadsheets evaluated and compared to existing

engineering web and make simple changes I8-D4 (Quad I)

• Scan documents necessary to process to keep with eng web I10- D4 (Quad I)

• Move everything to electronic submittal I5-D1 (Quad I)

• Create automated forms – scripting. I5-D1 (Quad I)

• Electronic faxing I10-D2 (Quad I)

• Minimize electronic routing, create a one stop shop. I8-D4 (Quad I)

• 2nd phase expansion of eng web system I8-D6 (Quad III)

Ideas to be Implemented Jennifer Nelson

Compliance • Shorten notice to bidders; create form with only needed info. I10-D2

(Quad I)

• Create forms, automated scripting. I10-D2 (Quad I)

• Advertising period 12-24 days (30 days) I10-D1 (Quad I)

• Advertise electronically to needed by law I10-D1 (Quad I)

• Print checklist on envelopes so know what is required by law I10-D2 (Quad I)

• Communicate with Contractors I10-D1 (Quad I)

• Pre-qualified bidder I8-D6 (Quad III)

• Return bid security (Quad I)

Ideas to be Implemented Jennifer Nelson

Printing • Outside sources I8-D4 (Quad I)

• Re-negotiate process with DAS I8-D6 (Quad III)

• Electronic notification of NOB-addresses with contractors I9-D2

(Quad I)

• Stuffing machine I8-D1 (Quad I)

• Scanners to upload unto to disseminate I8-D1 (Quad I)

• Faxing from computer I8-D1 (Quad I)

• Send out final info by e-mail or through form letter I9-D2 (Quad I)