lean thinking in government services
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UMANT - August 8, 2008
Local Governments Thinking Lean:
An Overview of Applying Lean Principles
to Government Services
Ben Thatcher
2 /Lean Overview
May 9, 2006UMANT - August 8, 2008
•What is lean?
•Why implement lean in local government?
•How has Southlake implemented lean in local government?
•How can I learn more about lean?
3 /Lean Overview
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“The relentless pursuit of the elimination of waste from every process with the ultimate goal of providing world-class quality, delivery and service to our customers at the lowest possible cost.”
What is Lean?
“It’s about the process – not the employee”Think about the “thing” going through the process – not “who” does it.
4 /Lean Overview
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Cultural Change: A Change in Mind-set
Lean Thinking is a cultural change, it’s a change in mind-set: a continuous strive for perfection to eliminate all the waste.
SeeAct
Get
To get the results, you have to act different.To act different, you have to see the difference.To see different, start with learning Lean Thinking.
Change in mind-set
5 /Lean Overview
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Shingijutsu
Lean
Jido
ka
Just
-in-T
ime
ToyotaProduction System
Heijunka
1978
1996
1943 - 1978
History of Lean
A principle driven, tool based philosophy that focuses on eliminating waste so that all activities/steps add
value from the customers perspective.
Lean Thinking:
People
People
People
Deming & Ford
6 /Lean Overview
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How Does Lean Work?
7 /Lean Overview
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The continuous movement of products, services and information from end to end through the process
3Establish Flow
Nothing is done by the upstream process until the downstream customer signals the need
4Implemen
tPull
The complete elimination of waste so all activities create value for the customer by continuous improvement. Use all principles again, and again.
5Work to Perfectio
n
Define value from the customers perspective and express value in terms of a specific product
1Specify Value
2 Map the
Value Stream
Map all of the steps…value added & non-value added…that bring a product of service to the customer
Lean Thinkin
g
Lean Thinking Principles
Lean Thinking Principles guide you through lean implementation
8 /Lean Overview
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What Satisfies the Customer?
Non-Value Added
Process:
Those process steps that take
time, resources, or space, but do not add value to the
product or service.
Value Added Process:
A process step that transforms
or shapes a product or
service which is eventually sold to
a customer.
Value Enabling Process:
A process step which must be
performed in order to make it possible
to perform value adding activities.
9 /Lean Overview
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What is Waste?
•Activities that Create No Value, but Add Cost and Time
•Focus: Find the Root Cause(s) and Eliminate Them
•Typical Process = 1-10% Activities Create Value
Non-value
added work
or Pure
wasteValue-
enabling
work
Value-added
work
10 /Lean Overview
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Overproduction
Inventory
Extra Processing
Motion
Defects/Rework
Waiting
Transportation
• Processing that the customer does not need or want
• Duplication• Processing a small deal the same as a large deal
• Navigating multiple screens to input data• Printing material• Looking/researching for data/info
• Incorrect data on application• Missed customer due dates• Rework (the “R” words)
• Application waiting approval• Waiting on information from customer• Waiting on information from 3rd party
• Receiving hardcopies from customer• Shipping hard copies for customer signature• Manually walking the application for approval
7 Wastes Characteristics
• Staff Members waiting• Multiple applications awaiting approval
What does Waste Look Like?
11 /Lean Overview
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Kaizen \ Ki-zen \ a continual improvement mindset. Everything that we do today can be improved. Kaizen has no end.
Kai = Change Zen = For the Better
A Healthy Dissatisfaction with the Status Quo
Definition of Kaizen
12 /Lean Overview
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Toast Kaizen Video
13 /Lean Overview
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Highly Skilled and Trained
Empowered
Own their processes (improve them)
Action oriented
Boundary less/ Open Mindset
Live Teamwork
Creative
Challenge Management
Feel valued, rewarded and recognized for their accomplishments
The journey starts with the People
PeoplePeoplePeople
At the start of the Journey It Is All the People !
14 /Lean Overview
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What is a Value Stream Map?
15 /Lean Overview
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What is a Lean Workout?
Product/Process Family Definition
Current State Map
Future State Map
Implement!
(Action Workout)
Identify waste• Delays• Over-processing• Rework loops
Eliminate waste & create flow
Create flow chart w/ times between & within steps
Define value from customer perspective
16 /Lean Overview
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How can Municipalities Apply Lean?
• Building Application Approval• Emergency Response• Planning• Utility Billing• Payroll• Field Maintenance• Purchasing• Budget Process
Any process where time or customer satisfaction matters!
17 /Lean Overview
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How has Southlake Utilized Lean?•Development review process
(entitlement phase to permitting phase)– Total process time reduced by 323%
(220 days to 68 days)
18 /Lean Overview
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How has Southlake Utilized Lean?•Budget development process (budget
kickoff to submittal of proposed departmental budgets)
– Total process time reduced by 33% (3 months to 2 months)
19 /Lean Overview
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Focus on the Future
Things to Consider:
• Eliminate Queue’s & Stopping Points (Flow)
• Try to limit the waste designed into the new process
• Minimize “Rework/Review” Steps where possible
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Focus on the Customer!
• Think about what the customer feels!
• Think outside the box!
• Think about growth while balancing risk.
• Have some fun!
21 /Lean Overview
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How can I learn more about Lean?•ICMA
– Public Management article; September 2006– Workshop: “Lean Thinking and Government: An
Oxymoron?”– ICMA consulting services – Craig Rapp
– www.icmaleanthinking.blogspot.com• TechSolve – David Krings (past ICMA president)
– www.techsolve.org• Lean Enterprise Institute
– www.lean.org• Celerity Consulting – David Baird
22 /Lean Overview
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Questions?
Ben Thatcher
817/748-8005