Presentation NamePresenter’s Name

Best Start Up Business Process Excellence Program (Under 2 Years)

Landmark Group Centre for Value Improvement

NorQuest CollegePublicly funded comprehensive community college

Main Campus located in Edmonton, Alberta Canada

7 Campuses

778 Faculty, Staff and Employees

Supporting a diverse student diversity

55% outside of Canada

9% self-identified Aboriginal, Metis or Inuit

over 65% over the age of 24

80% Female

600 students with learning and physical challenges

37 post-secondary career credentials and foundational programs

2011/12 operating budget = $74 Million

2012/13 operating budget = $77 Million

2013/14 operating budget = $75 Million ($3 Million reduction)

Serving over 8,500 full-time, part-time and continuing education students

Over 1,200 graduates each year

Offering Diplomas, Certificates, Post-Basic Certificates and employment programs

Process challenges facing NorQuest post-secondary

Facing a 7.3% budget reduction from Campus Alberta operation grant (-$3.19 million) forces a deficit budget to be proposed in 2013/14.

College incurring a deficit of $1.4 million against operating budget.

Tuition freeze mandated for next three years.

Expected 0% grant increases until at least 2016.

Systems and processes prior to College VIP program implementation were confusing and complex.

Many systems had multiple versions and many departments had “shadow” systems that were being used for planning and reporting. These individual systems did not align with College systems creating confusion and waste.

Large geographical region to serve, creating many process and organizational issues.

College services and infrastructure not utilizing electronic workflows or on-line systems. Still primarily paper based reporting, filing, form control, ordering.

Student / customer engagement requires multiple touch points, contacts and paper work.

College has re-organized its departments/ Faculties multiple times in the past 3 years to deal with budget issues and consolidation of programming.

Staff turn-over has been dramatic and resulted in low employee engagement and trust.

72.3

81.2

2011-12

2010-11

Internal Staff Satisfaction scores

Drop in staff satisfaction by almost 10%

NorQuest Response to Process Challenges

Creation of new internal department (Landmark Group Centre for Value Improvement) to serve the needs of the College by:

Training internal staff in LEAN & Six Sigma concepts, tools and processes leading to:

• Identifying and quantifying process issues that exist throughout the College

• Improving outdated and ineffective systems

• Eliminating wastes and inefficiencies existing within College systems

• Reducing overall operating costs

• Improving student outcomes and experiences throughout the organization

• Implementing quick and sustainable “wins” that are identified and celebrated

The Landmark Group Centre for Value Improvement program will focus on the college’s vision to:

1. Enhance quality and delivery of offerings and services for NorQuest College students

2. Maximize productivity and profitability for business, industry and the public sector by providing value improvement training

3. Create unique practical solutions that help reduce waste and lost productivity in the workplace

Why Develop a “Value Improvement Centre”?

“To maximize College effectiveness, quality and funding”

(NorQuest College Comprehensive Institutional Plan)

Colleges business model principles include:Quality and continuous improvement (pg. 11)

• We define standards of quality and performance for all aspects of the College.

• We define expected outcomes and then measure and report our performance against those targets.

• We monitor our improvement and influence organizational behaviour through tools such as a balanced scorecard and performance feedback.

Our relationship with Government includes the Alberta priority (pg. 16)

Creating Opportunity by: Enhance value-added activity, increase innovation and build a skilled workforce to improve the long-term sustainability of Alberta’s economy.

The Landmark Group Centre for Value Improvement provides the tools, strategies, trainingand support to help organizations successfully implement any process improvementinitiative, utilizing a blend of Lean, Six Sigma, Business Process Management andEnvironmental Awareness as per International Organization for Standardization (ISO) toolsto achieve improved productivity. Six Sigma Canada Inc. is providing industry knowledgeto support NorQuest College’s initiative.

Aligning to College PlansStarted in 2011 the College identified Process Design and Improvements as a key initiative.

Creating a Centre allowed for internal improvements to take place with the future idea of developing lean/six sigma programming for students. The Centre would also contribute to the school and region external training, and applied research solutions.

These concepts align with the College’s 5 areas of focus:

1. Maximize College effectiveness, quality and funding

2. Rationalize College programs on the basis of workforce relevance or economic impact/contribution

3. Build and leverage investor/partner relationships for the purpose of innovation

4. Build a College brand consistent with a focus on workforce development, advancement and customer value

5. Align staffing and human resource strategies with the Strategic Plan, Comprehensive Institutional Plan and Five Areas of Focus

Aligning to educational strength in Health & Business, the LGCVI expands programming, reduces waste, improves customer experiences and returns financial resources to the College to operate with.

Targeted 3 Process Improvement Initiatives 2011/12 and exceeded dramatically by implementing 6(2011-12 annual report)

The LGCVI Approach

We implement our strategy by focusing on four interrelated services:

Value Improvement Program (VIP) – in the fall of 2011,the S&I Division formally launched the VIP to support processimprovement at NorQuest. This concept was used (and willcontinue to be used) to achieve key categories of the President’s Contribution Agreement. To be truly successful,this requires a fundamental cultural transformation at NorQuest.

Business Development – to explore and developcontinuing education and support for external businessclients. This also includes exploring the developmentof a shared service for all Alberta post-secondaryinstitutions.

Credit Program Development – to explore and develop credit programming to be offered at NorQuest.

Applied Research – to support/conduct applied research on process improvement related topics.

The LGCVI purpose is to empower our people to find solutions, eliminate waste and improve the quality of our services and relationships with our customers/students.

Internal VIP Program

External Training

Applied research

Credit Program

development

Training to Empower People

The Landmark Group Centre for Value Improvement is the provider for all Lean and Six Sigma training within the College.

To date, training programs have been offered at no cost to internal departments to improve processes, eliminate waste, reduce defects and provide exemplarity customer service to current and prospective students and college wide stakeholders.

778

386

NorQuest Staff

Total Trained

33

65

1

11

56

220

0 50 100 150 200 250

Champions

PDCA

Black Belt

Green Belt

Yellow Belt

Intro

Internal Participants

LGCVI Training Approach

Provide staff with training in yellow belt, green belt and they leave with a clear work plan

Provide lunch and learns, support meetings with MBB and GB, refresher workshops to support the completion of work plans

Celebrate successes in annual report out and utilize staff to support future projects

Roadmap for staff to followas they use the tools

For all tests:

P-Value>0.05 Fail to Reject Ho (Null)

P-Value<0.05 Reject HoHypothesis Testing

Roadmap

Hypothesis Testing

Roadmap

Two-Sample T-Test

(Variances Not Equal)

Two-Sample T-Test

(Variances Not Equal)

Two- Sample T-Test

(Variances Equal)

Two- Sample T-Test

(Variances Equal)

Contingency

Table (2)

Contingency

Table (2)

One Way ANOVAOne Way ANOVA

Test For Equal

Variances (Bartlett’s>2)

(f-test 2-samples)

Test For Equal

Variances (Bartlett’s>2)

(f-test 2-samples)

One Sample Test

of Proportions

One Sample Test

of Proportions

Attribute DataAttribute Data

Normal DataNormal DataNormality TestNormality Test

Continuous DataContinuous Data

Non-Normal DataNon-Normal Data

Test For Equal

Variances“Levene’s Test”

Test For Equal

Variances“Levene’s Test”

Two or More SamplesTwo or More Samples

Ho: P1 = P Target

Ha: P1 P Target Stat>Basic Stats> 1 Proportion

Ho: Two Factors are INDEPENDENT

Ha: Two Factors are DEPENDENT

Stat>Tables > Chi-Square Test

Ho: 1 = 2 = Ha: At least one is

different

Stat>ANOVA>one way

One Sample T-TestOne Sample T-Test

One

Sample

Ho: 1 = target

Ha: 1 or < or > target Stat>Basic Stats> 1

sample T

Ho: 1 = 2

Ha: 1 or < or > Stat>Basic Stats> 2 sample T

(Select Assume Equal

Variance)

Ho: 1 = 2

Ha: 1 or < or > Stat>Basic Stats> 2 sample T

(Deselect Assume Equal Variance)

Ho: Data is normal

Ha: Data is NOT normal

Stat>Basic Stats> Normality Test

(Use Anderson Darling)

Ho: 1 = = 3…

Ha: At least one is different

Stat>ANOVA>Test for Equal Variance

Testing Variance with Stacked Data

Two or more

samples

One Sample

(sign test)

One Sample

(sign test)

Ho: M1 = M target

Ha: M1M targetStat>Non parametric> 1 sample sign (OR)

Stat> Nonparametric > 1 sample - Wilcoxon

Ho: M1 = M2 = M3…

Ha: At least one is different

Stat>Nonparametric> Mann Whitney (2 samples) OR,

Stat>Nonparametric> Kruskal Wallis (>2 samples, stacked)

OR

Stat>Nonparametric> Moods Median (>2 samples, stacked)

OR

Stat> Nonparametric> Friedmans

One Sample

Two Sample Test

of Proportions

Two Sample Test

of Proportions

Ho: P1 = P2

Ha: P1 P2Stat>Basic Stats> 2 Proportions

2 or more

samples

2 or more samples

Categorical X

Variable Y

2 Samples

One Sample

Two

Samples

>=Two

Samples

Paired T-Test

(Paired Data)

Paired T-Test

(Paired Data)Paired Data

(run normality

on differences,

test for equal

variances not

req’d)

Ho: d = 0

Ha: d or < or > d=population mean of the differences

0 =hypothesized mean of the differencesStat>Basic Stats> Paired T

2 Samples

Ho: 1 = = 3…

Ha: At least one is different

Stat>ANOVA>Test for Equal Variance

Testing Variance with Stacked Data

Rev. date Jan. 21, 2002

CorrelationCorrelation

Ho: No Correlation

Ha: Correlation

Stat>Basic

Stat>Correlation

RegressionRegression

Ho: Coefficients Not Significant

Ha: Coefficients Significant

Stat>Regression > Fitted Line Plot;

OR

Stat>Regression>Regression Store

Residuals; Look at R2 value

Stat>Regression > Residual Line Plots

Value Improvement Program Project Approach

Innovation and Design Projects (3012 months

Com

plex

ity

Innovation and Design Projects(5->12 months)

Complex Cross Functional Projects(5-8 months)

Rapid Improvement Projects(3-5 months)

Just do it(<8 weeks)

Academic Advising

Tuition Revenue Allocation

Student Advising - Intake

Contract Management – Revenue Contract

Procurement

Time Tabling

Contract Management – Payable Contracts

The Value Improvement Program (VIP) services can be delivered in four ways:

Just Do it’s - Projects that can be done by LGCVI trained NorQuest staff. Quick wins.

Rapid Improvement – Training is provided by VIP Process Improvement Consultant(s). The project teams or individuals facilitate their project, produce the deliverables and implement the business solutions. The VIP team may provide Quality Assurance review as required.

Complex Cross Functional Projects –training and facilitation are provided by VIP Process Improvement Consultant(s). The cross functional project teams produce the deliverables and implement the business solutions (i.e. “Collaboratives”).

Innovation and Design Projects –training, facilitation and project delivery is fully supported by VIP Process Improvement Consultant(s). The cross functional collaborative project teams implement the business solutions. Full service support may be customized as required.

The LGCVI provides 3 levels of service directly to NorQuest staff

1. Self Service – training is provided by VIP Process Improvement Consultant(s) or through publicly available courses. The project teams or individuals facilitate their project, produce the deliverables and implement the business solutions. The VIP team may provide Quality Assurance review as required. Recommended for: Just-Do-It projects (project time: up to 3 months).

2. Facilitated Service – training and facilitation are provided by VIP Process Improvement Consultant(s). The cross functional project teams produce the deliverables and implement the business solutions (i.e. “Collaboratives”). Recommended for: Rapid Improvement Projects (project time: 3-5 months)

3. Full Service – training, facilitation and project delivery is fully supported by VIP Process Improvement Consultant(s). The cross functional collaborative project teams implement the business solutions. Full service support may be customized as required. Recommended for:Innovation and Design Projects (project time: 12+ months); Complex Cross Functional Projects (project time: 5-12 months).

CONTROL

Lean Six Sigma and Business Process Management Tools

Context models, business case, narrowed project scope, primary & secondary metrics, project team, Pareto

COPQ, timeline, fishbone, SIPOC, 5 Why Analysis Work plan, risk assessment, stakeholder

DEFINE1

MEASURE

ANALYZE

IMPROVE

Solutions matrix, pFMEA recommended actions

Error proof process, standardized work control plans, transition plan, Level 4 process maps

Defined customer requirements, I/O matrix, pFMEA, measurement system analysis, paper kaizen

Data collection requirements, calculated sigma level

Graphical analysis, hypothesis testing, narrow the X’s to vital few (2-6)

2

3

4

5As NorQuest VIP teams move through DMAIC - all tools are documented on report outs

Sustaining the Gains at NorQuest

Signed offControl Form

Quarterly process audits

RecognizingContinuous

Improvements

Transition Plan with Impact Analysis

The project is signed off to the Internal NorQuest Process Owners. Level 4 process maps, control plans, detailed transition plan with impact analysis are all created by the subject matter experts. The NorQuest Process Owner maintains visual boards in their areas to monitor key measures for 12 months, at a minimum.

The VIP program at NorQuest sustains improvements byempowering and training staff who do the work, to improve the work and sustain with continuous support from the program

Huddle boards

Project Highlights 2011-12Total Savings 2011- 12 $486,000

Project Celebration Report Outs to Staff

September 2012

Tollgate Review Report outs to Staff with improvements completed and next steps

May 2012

Kick Off Training Yellow Belts and Green Belts. Projects met 1.5 days per week on average

Jan 2012

Identify projects that align with

CIP, train Champions,

scope projects

Oct 2011 to Jan 2012

Project identification and Scoping

&

Team Training

Fund Development 2 projects

New process flow and software tool. standardized management of prospect accounts and account information

$45K Savings

Redesigned process

Intake Lead Time Reduction

Reduced number of scheduled appointments for Students from 2 to 4, eliminate rework, improved Students experience

$140K Savings

Lead Time 22.71 days to 9.5 days

Phone Lines Defect Reduction

Modify workflow increasing 1st call resolution from 24% to 64%, reduce call CT from 6 min to 1.4 min

$66K Savings

DPU from 0.82 to 0.0

Procurement Lead Time Reduction 124% improvement accurate requisitions, 23% LT improvement order to completion, 24% improvement LT order to payment

$41K Savings

23% LT improvement

Academic Advising Defect Reduction standardized key functions and processes, removed rework and duplication, new attendance

process, control plan increased savings by an additional $64K

$194K Savings DPU from 1.05 to 0.53

Project Highlights 2012-13Total Savings 2012-13 $434,269

Project Celebration Report Outs to Staff

September 2012

Tollgate Review Report outs to Staff with

Improvements Completed to Date

May 2012

Kick Off Training Yellow Belts and Green Belts Projects with built in

mentorship from MMB and BB

July 2012

Identify projects that align with

CIP, train Champions,

scope projects

March to June 2012

Project identification and Scoping

&

Team Training

Lab Standardization Standardized key functions and processes, created procurement strategy and standardized six Practical Nurse Labs

$175K Savings

DPU from 1.05 to 0.20

NEOS redesigning how staff access library services by increasing access to resources, improving delivery of resources and reducing expense to college

$60K Savings

Enrolment Lead time Reduction by improving communication, standardize process and training program for staff

Reduced lead time by 26 days

Enrolment AU Defect Reduction reduced process steps from 68 to 12, provided choice to students, utilized PeopleSoft more effectively, reduced hand offs

$12,987 Savings

DPU from .30 to .15

On Line Testing reduced 31 different staff touching the process to 1, standardized exam policies and procedures, standardized process, forms, created revenue stream for college

$89K Savings

DPU from 0.21 to .001

Asset Management Phase I completed 80% inventory count, develop standardized processes with controls

33K Savings

Reporting at all Levels

81.2

72.3

80.8

2010-11

2011-12

2012 -13

Internal Staff Satisfaction scores

Improvement of staff satisfaction to pre-challenge levels since VIP program implemented

Click to viewone projectstaff report outExecutive

Reporting

•LGCVI Dashboard - quarterly

•Project Summaries - monthly

•Internal Client Survey on LGCVI Services - annually

Leadership Reporting

•Project Summaries - monthly

•Tollgate Report Outs – bi annually

•Celebration Report Outs - annually

•NorQuest Newsletter – every two months

•Internal Client Survey on LGCVI Services - annually

Staff Reporting

•Tollgate Report outs – bi-annually

•Celebration Report Outs - annually

•NorQuest Newsletter – every two months

•Visual Dashboards on key project metrics - daily

•Process Audits by staff who do the work - quarterly

•Project repository for sharing project documents

Total VIP program savings for two years: $ 920,269

Contact info

Carolyn Selin

Principal – Landmark Group Centre for Value Improvement

780.644.5964

carolyn.selin@norquest.ca

Thank You