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Murray JamerSaskatoon
LEAN SIX SIGMAPRESENTATION TO CAMA
May 29, 2012
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OverviewTraditional ways to balance the municipal books
Some of our proactive toolsLean Six SigmaFrederictons Lean Journey
Our plan:Our commitment:Councils perspectiveResults to date:Questions
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Some of our proactive tools:BPIsIT projectsQMS (formerly ISO)
ean x gma
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What is Lean Six Sigma?Lean Sigma
Improve SystemEfficiencyIm rove Flow and
Six Sigma
Improve ProcessEffectivenessReduce Variation
StabilityEliminate Waste
Method of OperationFocus on Value forCustomer
Improve YieldProblem Solving
MethodFocus on Quality forCustomer
We will use combination of Lean Sigma and Six Sigma
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LeanFocuses on maximizing the flowof value by eliminating wasteProvides tools for analyzing
identification of wasteCenters on the separation of"value-added" from "non-value-added" work
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How is Lean different from Six Sigma?Lean
Waste EliminationStandard Work
Six Sigma
Variation ReductionsRework Elimination
SPEED STABILITY & ACCURACY
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Common Types of Waste in Organizations
Over Production -Producing more than what is needed
Waiting - DowntimeTransport - Items transferred from one location toanother
Motion Poor LayoutExtra Processing - Rework - HandlingDefects Defective itemsExcess Inventory
Underutilization of staff
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Goals of Lean Sigma
RED
INCR
CEEASE
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Lean/Six Sigma is NOT:A Cost Cutting Exercise
Job CuttingAn easy thing to do
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Although positions may be eliminated throughattrition or changed.
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Lean-Sigma OverviewLean-Sigma is about creating a culture thatdemands continuous improvement and thepursuit of perfection
Gives employees the tools to:1. Enable them to pinpoint performance gaps2. Make the necessary improvements
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What about QMS?We still have QMS; not ISOQMS has provided:
Structureocumen a on
A culture of continuous improvement
QMS is a foundation for Lean Six Sigma
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Lean Six Sigma Organization in City(Our Improvement & Innovation Team)
City Council
City Administrator
SteeringCommittee
Finance DeptI&I Team Members
DevelopmentServices Dept
I&I Team Members
Community ServicesDept
I&I Team Members
Engineering &Public Works Dept
I&I Team Members
Corporate ServicesDept
I&I Team Members
Police DeptI&I Team Members
Fire DeptI&I Team Members
Office ofContinuous
Improvement
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VisionWe will improve the Citys internal andexternal services by making them moreefficient and better able to withstand
Innovation teams using Lean Six Sigmatools and other change management tools, in
order to enhance continuous improvementwithin the framework of the City ofFrederictons overall Management System.
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ObjectivesShort-term (1-2 years)
1. Improvement and Innovation Teams, made up of staff from eachdepartment, will work on at least four Improvement and Innovationprojects per year, where trained team members will use newlyacquired Lean Six Sigma techniques.
2. Ever Cit em lo ee will have been ex osed to Lean Six Si ma
principles.3. Every department will participate in Improvement and Innovation
projects.4. 10% of City employees will have participated on Improvement and
Innovation projects where Lean and Six Sigma techniques are used.5. 1 City staff will have Black Belt designation in Lean Six Sigma.6. 4 City staff will have Green Belt designation in Lean Six Sigma.7. Improvement and Innovation Projects (Lean Six Sigma projects) will
have resulted in annual savings of $500,000.
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A Lean Six Sigma ProjectSelect a project
Select teamDefine Phase
easure aseAnalyze PhaseImprove Phase
Control Phase
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A Lean Six Sigma ProjectSimilar to BPI
Data is importantValue Stream Mapping
Future State
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The 5S Process
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What is 5SAn easy definition is:
A place for everything and everything in its place
s t e oun at on or ont nua mprovement anLean implementation
One tool in Lean SigmaReduces time waste (waiting & searching)
Reduces motion wasteIncreases operational efficienciesHelps increase value added time
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Traffic WarehouseBefore After
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Traffic WarehouseBefore After
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Traffic WarehouseBefore After
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Traffic WarehouseBefore After
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Traffic WarehouseBefore After
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Traffic WarehouseBefore After
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Before After
Property Services
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Before After
Property Services
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Before After
Property Services
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Before After
Property Services
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POLICE GARAGEPOLICE GARAGE
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POLICE GARAGEPOLICE GARAGE
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POLICE GARAGEPOLICE GARAGE
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Regent DepotBefore After
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Regent DepotBefore After
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Regent DepotBefore After
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Regent Depot
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Regent Depot
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Fleet
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Fleet
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Water & Sewer
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Water & Sewer
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Water & Sewer
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Water & Sewer
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Water & Sewer
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Our plan:
Make changes before we are asked to make
changesInvolve our staff
teams)
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Our commitment:
No layoffs as a result of a Lean Six Sigma Project
(staff savings through attrition)We will honestly measure results and cost savings
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Councils perspective
Didnt like our previously proposed cuts
Dont want higher taxesConcerned about simply deferring infrastructure
Pleased we are trying Lean Six Sigma
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Results to date:
5S done in 7 workplaces
Curbed requirement for more spaceCurbed requirement for more staffEstablished foundation for Lean Six Si ma Pro ects and
staff reductions / other efficiencies?)
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Summary
Looks like this is a good methodology
Our team in placeEmployees are motivated / engaged
e are we un erwayHard staff reduction targets?
Q i
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Questions