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1Lean Introduction

Implementing & Sustaining Government LEAN InitiativesQ6σLean

PIC, LLC

Continuous Improvement Continuous Improvement through the relentless through the relentless

elimination of wasteelimination of waste

2Q6σLean

PIC, LLC Lean Introduction

Implementing & Sustaining Government LEAN Initiatives

What is our Current Situation?What is our Current Situation?

1.1. Worst economy since the Great DepressionWorst economy since the Great Depression

2.2. High unemployment rateHigh unemployment rate

3.3. Decreasing property values coupled with Decreasing property values coupled with high foreclosure ratehigh foreclosure rate

4.4. Increasing revenues is extremely difficultIncreasing revenues is extremely difficult

5.5. Costs are escalating at an alarming rateCosts are escalating at an alarming rate

6.6. Healthcare and Pension costs are Healthcare and Pension costs are escalating even faster.escalating even faster.

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Holistic LeanHolistic Lean

LEAN ToolsMWM – Measure What Matters

Kaizens

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AAchieving chieving CChange hange EEffectivenessffectivenessTo Successfully Implement and Sustain LEANTo Successfully Implement and Sustain LEAN

LEA

DER

SHIP THE VISION:

THE DESIRED OUTCOME OF CHANGE IS CLEAR, LEGITIMATE, WIDELYUNDERSTOOD AND SHARED. THE 90-SECOND SPEECH.

PROOF OF THE NEED:THE REASON TO CHANGE, WHETHER DRIVEN BY THREAT OROPPORTUNITY, IS INSTILLED WITHIN THE ORGANIZATION AND WIDELYSHARED THROUGH DATA, DEMONSTRATION OR DEMAND. THE NEEDFOR CHANGE MUST EXCEED ITS RESISTANCE.

DEVELOPING COMMITMENT:THERE IS A STRONG COMMITMENT FROM KEY CONSTITUENTS TOINVEST IN THE CHANGE, MAKE IT WORK, AND DEMAND AND RECEIVEMANAGEMENT ATTENTION.

SUSTAINING CHANGE:ONCE CHANGE IS STARTED, IT ENDURES, FLOURISHES AND LEARNINGSARE TRANSFERRED THROUGHOUT THE ORGANIZATION . W E MUST BEABLE TO SUSTAIN THIS LONG TERM.

MONITORING PROGRESS:PROGRESS IS REAL; BENCHMARKS SET AND REALIZED ; INDICATORSESTABLISHED TO GUARANTEE ACCOUNTABILITY . PROCESS OWNERS ,PERFORMANCE REVIEWS , ETC.

INFR

AST

RU

CTU

RE

The Elements of ACEHaving a champion who sponsors the change

CHANGING SYSTEMS AND STRUCTURES:Making sure that the management practices are used to

complement and reinforce change

Culture = “the way we

do things around here”

Actions,Behaviors, Systems &

Structures driveCulture

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The Body Rejects the Foreign ObjectThe Body Rejects the Foreign Object

CurrentCulture

Lean LeanCulture

We need to move from this: To this:

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Continuous Improvement (CI) Continuous Improvement (CI) Draft Elevator SpeechDraft Elevator Speech

_______ is facing serious fiscal challenges for the future. In _______ is facing serious fiscal challenges for the future. In order to help order to help address these issues, we are initiating a Continuous Improvementaddress these issues, we are initiating a Continuous Improvement (CI) (CI) Process throughout _____ to increase service to all of our constProcess throughout _____ to increase service to all of our constituents, ituents, reduce wasteful activities, improve our financial stability and reduce wasteful activities, improve our financial stability and enhance enhance _______ as a place to live and work._______ as a place to live and work.

We will be working with all departments to identify key departmeWe will be working with all departments to identify key department nt processes to be able to select CI projects to generate positive processes to be able to select CI projects to generate positive results. We results. We need your help to recommend CI opportunities; participate on proneed your help to recommend CI opportunities; participate on project ject teams, as needed; and provide your support and cooperation. CI teams, as needed; and provide your support and cooperation. CI will be will be successful based on the support of all _____employees successful based on the support of all _____employees –– we canwe can’’t do it t do it without you.without you.

CI will help to provide better job satisfaction, work on the rigCI will help to provide better job satisfaction, work on the right things that ht things that truly matter to our constituents, and increase pride in being a truly matter to our constituents, and increase pride in being a key member key member of the _______ community.of the _______ community.

CI will help us all enhance ______ for itCI will help us all enhance ______ for it’’s employees, residents, and s employees, residents, and future.future.

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When something is new or a significant When something is new or a significant change use ACE Tools:change use ACE Tools:

If something is new or a change, question #1 is: Should there be an elevator speech?- what is the change?- why are we doing it?- what do you expect from me?- what's in it for me (WIIFM)?

This provides the unified "talking points" for consistency of message.

Question #2 is: Who are the stakeholders, where do they stand,and where do we need them to be?

- stakeholder analysis sheet- strategies to address key stakeholders - communications strategy, etc.

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Cycle Time

Cycle Time

SalesSales SigmaSigma

COPQCOPQ

Accuracy Defects

Accuracy Defects

Cycle Time

Cycle Time


COPQCOPQ

Accuracy Defects

Accuracy Defects

Cycle Time

Cycle Time


COPQCOPQ

Accuracy Defects

Accuracy Defects

Cycle Time

Cycle Time


COPQCOPQAccuracy Defects

Accuracy Defects

MWM “Measure What Matters”

Level 0Total Business

Level 1Core Processes

Level 2Sub-processes

•Focus on what are the key metrics to support our desired outcomes•MWM Creates a results based organization•Metrics identify improvement opportunities•Metrics drive higher accountability

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The Lean Road to World Class The Lean Road to World Class GovernmentGovernment

TaktTime

WorkSequence

StandardWIP

5S

StandardWork

Product/Process

Mapping

Waste Identify &Quantify

WorkerRealign

SetupReduction

WorkplaceReorganize

VisualControls

Small LotProcessing

PullSystems

One Piece Flow

Lines/Cells

TPM

Short CycleTime

MinimumInvestment

RapidResponse

To Change

HighestQuality

ShortestResponse

BestProcess

Reliability

SixSigma

The Lean “Toolbox”- Powerful tools to make improvements

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You could select one of your highest leveraged You could select one of your highest leveraged problemsproblems…… ??Identify your best people to work on it . . . ?Identify your best people to work on it . . . ?Provide that person with all the training, tools, Provide that person with all the training, tools, and resources they needed to fix it . . . ?and resources they needed to fix it . . . ?Guarantee them uninterrupted time and focus Guarantee them uninterrupted time and focus to work on itto work on it……? ? Require a well thought out, objective, data Require a well thought out, objective, data driven solution. . . ?driven solution. . . ?And sustain the benefits of the solution over And sustain the benefits of the solution over time . . . ?time . . . ?

That is

Lean!That is

Lean!What If . . .?What If . . .?

Lean in a Nutshell

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Focus on the Customer Focus on the Customer Customer

(The Taxpayer)

What does my customer need

from our process?

How is our process

performance from the customer

perspective?

How does my customer

measure my process?

How would my customer like

for our process to perform?

What can we do better?

How does my customer view my process?

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LEAN is based on:LEAN is based on:

The GoalThe GoalTo deliver continuously improving valueTo deliver continuously improving value--added added services (quality and speed of service) to customers services (quality and speed of service) to customers (taxpayers) at lower costs.(taxpayers) at lower costs.

Process ImprovementProcess ImprovementTo be able to identify key processes, how they are To be able to identify key processes, how they are performing and apply LEAN tools to make performing and apply LEAN tools to make improvements in reducing costs/wastes and improvements in reducing costs/wastes and enhancing revenues.enhancing revenues.

People are the BusinessPeople are the BusinessThere needs to be a high respect for people. A There needs to be a high respect for people. A constant search for how to improve things and reduce constant search for how to improve things and reduce errors vs. whoerrors vs. who’’s responsible for the error. s responsible for the error.

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The GoalThe Goal

Organizations effectively solve customer problems by Organizations effectively solve customer problems by satisfying customer needs, on a timely, cost effective satisfying customer needs, on a timely, cost effective basis.basis.

Solving customer problems adds value and is what the Solving customer problems adds value and is what the customer wants. Using LEAN allows this to happen, customer wants. Using LEAN allows this to happen, while reducing costs.while reducing costs.

Delivering continuously improving valueDelivering continuously improving value--added services added services (quality and speed of service) to customers (taxpayers) (quality and speed of service) to customers (taxpayers) at lower costs. We want to do things better, faster, and at lower costs. We want to do things better, faster, and cheaper.cheaper.

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Process ImprovementProcess Improvement

Understanding the Value Streams in your Understanding the Value Streams in your processes and continuously improving processes and continuously improving them are key to creating greater value for them are key to creating greater value for your customers.your customers.

Eliminating wastes/reducing costs using Eliminating wastes/reducing costs using LEAN while supporting the Goal.LEAN while supporting the Goal.

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What is a LEAN Process?What is a LEAN Process?

Valuable to the CustomerValuable to the Customer

Capable to produce good results all of the Capable to produce good results all of the timetime

Have enough capacity Have enough capacity

Flexible to switch between tasksFlexible to switch between tasks

Available whenever neededAvailable whenever needed

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People are the BusinessPeople are the Business

Teach everyone to view the processTeach everyone to view the processProvide problem solving skillsProvide problem solving skillsHave MWM (Measure What Matters) in Have MWM (Measure What Matters) in place place –– visibility in visibility in ““What I Do MattersWhat I Do Matters””Make everything visible, especially Make everything visible, especially problemsproblemsPush responsibility to the people in the Push responsibility to the people in the processprocess

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PP--DD--CC--A LEAN Thinking ProcessA LEAN Thinking ProcessSelect the Targeted Process:

Value Stream Mapping

Plan – What needs to be done.

Do – “Trystorming”Check – Reflect on Results

Act - Adjust

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The Administrative Classic WastesThe Administrative Classic Wastes((Value Added = What is the Customer Value Added = What is the Customer

Willing to Pay For?)Willing to Pay For?)

1.1. Handling/Unnecessary Motion Handling/Unnecessary Motion –– anytime we anytime we handle things, ithandle things, it’’s nons non--value added.value added.

2.2. Inferior Methods Inferior Methods –– How is work done? What is How is work done? What is the training method? Is there a better way?the training method? Is there a better way?

3.3. Inspecting Inspecting –– Any inspection functions do not Any inspection functions do not add value. Theyadd value. They’’re mainly in place to catch re mainly in place to catch errors.errors.

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The Administrative Classic WastesThe Administrative Classic Wastes(continued)(continued)

4.4. Transporting/Moving Transporting/Moving –– Anytime things are Anytime things are moved, there is no value.moved, there is no value.

5.5. Counting Counting –– This operation is another step to This operation is another step to make sure something is right make sure something is right –– no value added.no value added.

6.6. Delaying/Waiting Delaying/Waiting –– Cycle and process time is Cycle and process time is key to provide services to customers faster. key to provide services to customers faster. Many times, weMany times, we’’re waiting for something before re waiting for something before we can proceed.we can proceed.

7.7. Storing Storing –– Storing is an extra, nonStoring is an extra, non--value added value added step in combination with itstep in combination with it’’s partner Retrieval.s partner Retrieval.

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The Administrative Classic WastesThe Administrative Classic Wastes(continued)(continued)

8.8. All Rework Loops All Rework Loops –– Something isnSomething isn’’t done right t done right the first time and then we have to rework it to the first time and then we have to rework it to correct the problem.correct the problem.

9.9. Multiple Signatures Multiple Signatures –– Signatures get added over Signatures get added over time, without understanding the need. In fact, time, without understanding the need. In fact, the more signatures that are required, the less the more signatures that are required, the less scrutiny happens. scrutiny happens.

10.10. Waste of underutilized people Waste of underutilized people –– the greatest the greatest waste of all. Ideas for improvement are waste of all. Ideas for improvement are suppressed = suppressed = ““Check your Brains at the DoorCheck your Brains at the Door””

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Elements of WasteElements of Waste

SearchingSearching WalkingWalking MovingMovingHaulingHauling CarryingCarrying Storing Storing RetrievingRetrieving CountingCounting WanderingWanderingWonderingWondering AskingAsking InterruptingInterruptingStopping Stopping BendingBending AdjustingAdjustingLooking Up Looking Up EnergyEnergy

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Lean Culture Lean Culture ––““The way we do things around hereThe way we do things around here””

1.1. Respect for People Respect for People –– People want to do a People want to do a good job and want to be successful.good job and want to be successful.

2.2. Behavior Behavior -- what we do and how we do it.what we do and how we do it.3.3. Focus on building Quality, provide the Focus on building Quality, provide the

necessary Support, and cultivate Ownership.necessary Support, and cultivate Ownership.4.4. ““No Problem is a ProblemNo Problem is a Problem”” –– Make it easy to Make it easy to

see and solve problems and learn from see and solve problems and learn from mistakes.mistakes.

5.5. Move from the 5 Move from the 5 ““WhosWhos”” to the 5 to the 5 ““WhysWhys””6.6. Environment Environment –– Free of FearFree of Fear

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Identifying and Addressing ProjectsIdentifying and Addressing Projects1.1. What should we focus on?What should we focus on?

•• What has the greatest impact on our customers What has the greatest impact on our customers –– and/or better service?and/or better service?•• What gives us the greatest financial leverage?What gives us the greatest financial leverage?•• What do our key metrics and data reveal? What do our key metrics and data reveal? –– Is it the right data, good operational Is it the right data, good operational

definitions, etc.?definitions, etc.?•• WhatWhat’’s the highest priority for improvement?s the highest priority for improvement?

2.2. How do we do it?How do we do it?•• Develop a unified, clear problem statement (and Project Charter,Develop a unified, clear problem statement (and Project Charter, as necessary) as necessary) ––

everyone needs to know what the everyone needs to know what the realreal problem isproblem is•• ““Learn to SeeLearn to See”” via a via a detaileddetailed review:review:

Develop the Value Stream Map Develop the Value Stream Map –– What steps add value, are value enabling, or are wasteWhat steps add value, are value enabling, or are wasteWhat are the details with each step What are the details with each step –– how long does it take, time between steps, how long does it take, time between steps, frustrations, ideas, etc.frustrations, ideas, etc.

•• Then, develop the future state with improvements:Then, develop the future state with improvements:DonDon’’t accept excuses as to why it cant accept excuses as to why it can’’t happen or be done t happen or be done –– the questions are the questions are ““How do How do we make it happen?we make it happen?””, , ““How do we remove the obstacles?How do we remove the obstacles?””, etc., etc.Use Lean Tools where appropriate: 5S, Visual Controls, SpaghettiUse Lean Tools where appropriate: 5S, Visual Controls, Spaghetti Maps, Standard Work, Maps, Standard Work, etc.etc.

•• Then, establish accountability Then, establish accountability –– Who is doing what by when?Who is doing what by when?

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Lean SummaryLean Summary

Continuous Continuous Improvement through Improvement through

the relentless the relentless elimination of elimination of WASTEWASTE

continuous improvement through the relentless elimination ...leangovcenter.com/pdf/ct...

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