introduction to lean methodology - wcma annual...
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Office of the Washington State Auditor
Introduction to Lean Methodology: Making and Sustaining Organizational Improvements
Debra Hentz, BSME, MPALean Specialist
Local Government Performance Center
Office of the Washington State Auditor
Why choose Lean methodology?
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• Employee
empowerment
• Organizational capacity
• Sustainable success
• Short-term fixes
• Time to delivery
• Waste
Lean is a holistic
PROCESS
IMPROVEMENT
approach to reduce the
unnecessary and
increase value for the
customer.
Eliminates
Grows
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SAO Performance Center Lean Academies
San Juan CountyIsland CountyPort TownsendSequimGrays Harbor CountyJefferson County
BellinghamSnohomish CountyMarysvilleBurlingtonLynnwoodAlderwood Water District
Kittitas CountyGrant CountyGrant Integrated ServicesBBCCollege
Whitman CountyWalla Walla CountyBenton CountyBenton-Franklin Health DistrictFranklin County
Cowlitz CountyRidgefieldBattlegroundVancouver
KirklandBothellEdmondsAuburnBurien
BremertonOlympiaYelmLaceyAWCThurston County
Skamania CountyKlickitat CountyCamas
C-TranPort of Camas Washougal
SCOREPierce CountyTacomaDupont
PermittingLicensingLeasingHiringPayingBillingPurchasingReceiptingReconcilingEnrollingGrant-trackingImmunizingIT-supporting
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Lean: simple and straightforward
Creating “flow” through the elimination of waste
Lean is about processes in a
system.
RECEIVE something from
someone
DO something that adds “value”
GIVE something to someone
Process is a repeatable series of activities:
FlowHow do we determine VALUE??
Lean is a word, not an acronym.
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Lean focuses on VALUE of process activities.
Process Activities
Value Add
Flow
Non Value Add
Unnecessary
Eliminate
Non-Value Add
Required
Optimize
Customer Supplier Waste
INPUT Received Gives OUTPUT
CustomerSupplier
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Lean focuses on VALUE of process activities.
Process Activities
Customer Determined Value Add
Flow
Non ValueAdd
Unnecessary
Eliminate
Non-Value Add
Required
Optimize
Customer Wants It
Supplier Needs It
Waste
INPUT received creates OUTPUT
Supplier Customer
Is it easy to identify waste?
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Lean identifies WASTE, then determines change.
Waste
Is it easy to identify waste?
Small• Impacts only me• Internal changes
System
• Not shifting work to others
• Subject-Matter-Expert team
$$$• Long term vision• Optimize current
state✓ Lean doesn’t solve all problems.✓ Transformation takes time.✓ Lean is simple, but it’s not easy.
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Lean focuses on VALUE of process activities.
Process Activities
Customer Determined Value Add
Flow
Non ValueAdd
Unnecessary
Eliminate
Non-Value Add
Required
Optimize
Customer Wants It
Supplier Needs It
Waste
INPUT received creates OUTPUT
Supplier Customer
But who is the customer?
Office of the Washington State Auditor
Lean focuses on input & output to create “FLOW”
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“Value Stream” creating a Product or ServiceInput Output
Supplier Customer
Lean confirms needed steps and eliminates unnecessary ones thereby creating more capacity for employees.
Customer Outcome
A Chain of Suppliers & Customers Creating a Product or Service for the End Customer.
S C
SS
CC
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Lean: more in-depth and critical foundation
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Building Lean “Culture”
Discipline+
Playfulness
Experts+
Broad Thinkers
Focused+Chaotic
High Standards
+Tolerates
Failure
Lean Culture
Lean is 90% culture-based, 10% tools-based.
Culture:
✓ is learned and shared,
✓ is often unconscious,
✓ structures our perceptions,
✓ and shapes our behavior.
Action Oriented
+Strategic
Future
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Lean is a Cultural System of Management
Lean is a set of principles and tools that help people learn-to-see and eliminate waste following a methodology that is customer focused and employee driven.
Lean as a Management
System
Principles Tools
Office of the Washington State Auditor
Leader Guided & Supported, but Employee Driven
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✓ Select where to focus improvement efforts
✓ Define process excellence and set goals
✓ Assign resources with realistic expectations
✓ Monitor progress and accountability
✓ Clear obstacles for team
✓ Recognize and celebrate accomplishments
✓ Subject Matter Experts
✓ Work together as a team
✓ Collect data
✓ Speak truth to power
✓ Propose solutions
✓ Implement plans
Leadership Role
Leadership establishes & sustains the Lean culture.
Office of the Washington State Auditor
“Learn-to-See” Needs Cultural Support
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▪ Gemba is the Japanese word for "actual place". Lean encourages "going to Gemba" - to understand the true nature of the work.
▪ Go to the Source!? Where is it written?? Who said it?? What evidence shows your belief to be true?
Office of the Washington State Auditor
Alignment Around Common Principles
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Customer defines Value
Systems, not Silos
Processes, not People
Tops Down; Bottoms Up
Identify and Eliminate Waste
Measure and Prove it
Slow down to go Fast
Iterate and Experiment
Principles are a System
Coaching Leadership is Key
Fail Fast ForwardTime for Training
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➢ No one right way to build a lean culture. (identify your organization’s unique needs and strengths)
➢ Can’t policy and procedure your way to passion of purpose. (#1 job is motivating people; written statements are not the answer)
➢ Experts believe that 30% or less of Lean initiatives succeed. (success through planning; realistic expectations; beware change fatigue)
➢ Lean makes small changes resulting in large improvement. (aka slow and steady wins the race; eliminate individual frustrations)
➢ Lean does not focus on monetary savings; it’s about building capacity in your current workforce. (save money over time by building a stable, motivated and knowledgeable staff)
Starting and continuing your Lean journey
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In Summary
Lean is about →
Clarity• Vision, mission, and goals• Roles and responsibilities• Targets and expectations (what success looks like)
Visible• Metrics and progress• Customer involved processes• Accomplishments and celebration
Sustainability• Slow and steady wins the race.• PDCA [Plan – Do – Check – Adjust]• Long term commitment
Office of the Washington State Auditor
SAO Performance Center
The State Auditor's Office has created the Performance Center to help local governments evaluate their programs and services, and improve results.
The Performance Center website provides more than 100 tools, templates and resources you can browse, share and download to use or customize for your own jurisdiction.
Contact the Center
www.sao.wa.gov/performancecenter
(360) 725-5621
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Debra HentzLean Specialist
Sherrie ArdManager
Local Government Performance Center(360) 725-5552
[email protected]: www.sao.wa.gov
Twitter: www.twitter.com/LocalGovPerform
Heidi WalterProgram Specialist
[email protected](360) 725-5621