visualising transformation support services direct visualising transformation deming forum 12 th may...

1Visualising Transformation Support Services Direct

Visualising Transformation

Deming Forum 12th May 2010


What is Visualising Transformation?• It is an holistic change management method• Addressing operations & strategy

– Based on Deming• Statistical Process Control• System of profound knowledge• 14 points of management• Deming chain reaction, and….

– Toyota Production System– Seddon: Check, Plan, Do +– Checkland, Ackoff, Buzan – Embracing IT where-ever suitable


Development history• This shows

– Statistical approaches at the top

• Shewhart, Deming• Ohno, Womack, Seddon

– Soft systems and computing designs

• Stafford Beer, Jenkins, Checkland, Ackoff

– Management theory• Ford, Taylor, Bono,

Senge, Maslow, Drucker, Keynes…

– Inspiration / genius• Einstein, Da Vinci, Dali,

Newton, Brunel, Darwin and Nightingale.


It is designed to:• Address the issues of the service sectors

by:– Enabling a desire to add value– Creating information from data– Reducing failure demand to create capacity– Investing capacity into adding value– Developing genuine holistic win-win working– Enable natural partnership working– Addressing IT and business opportunities– Saving money, by improving services +– Without reducing jobs


It addresses wide issues• VT addresses these

– Mass production• Minimise variation• SPC and 14 points

– Reduce fear of crime• Affinity diagrams• Social engineering• Boundary conditions

– Operational improve• Efficient, Effective

– Strategic development• Embrace variety

– Local Area Agreements – Partnerships– Business Management– Future proofing


It is extremely visual!

• Most organisations are:– Data rich– Information poor– Confused

• They have ‘information’

• They make decisions• Things go wrong…

• In the public sector– Accounts are a mix of:

• Fact: costs incurred• Belief: activities happened• Estimations: we believe…

– Guesswork is never mentioned!


So what’s different?

• Appraise– Is the process of

adding even more value to: • consider the

business• deal with future

demand• delight customers!

– It is about reinvesting capacity created to: • add further value• improve the

environment• do even more

change• not simply cutting

costs.

Visualising Transformation

Check

PlanDo

Appraise


How is Transformation achieved?


Evolution is expected!

Prince 2 version


Starting from Check• Check is basically the joining of Study/ Act• It is used to find out:

– What the host needs and wants– How the host is performing– What opportunities there are– What the customers want and need– What will be wanted in the future– What the capacity is for improvement– To draw the boundaries for the E2E project– Initially: to define what success may look like!


Check will include:• Establishing the boundaries

– The who, what, why, where, when (how)• Setting up a Transformation Team

– External, internal, sponsor• Setting up training, facilities, awareness• Forming the Intervention Team• Starting data gathering and cleansing• Training team members• Workshops to understand ‘As Is’

Boundaries and teams


Building on where the host is• Understand the current paradigm• Build on their ways of working• Develop charts, graphs, visual aids• Celebrate the good stuff• Improve data, clean it, combine it, map it• Show duplications and cul-de-sacs• Seek early ‘Quick-wins’• Be ready for training and the first workshop• Check for (transferable) skills in other areas


Not simply cloning good ideas!


Principles of design• Design against value demand• Customer defines quality• Only do the value work• Minimise number of handoffs• Put information in the hands of front line staff• Decisions about the work should be made by

people who do the work• Do the work perfectly (leave it clean)• Challenge “dirt” and “failure demand”• Pull ICT to further improve flow only once the work

is clean


Training and first workshop• All the Intervention Team will attend 4 day

training courses (Some may assist the trainer)

• Courses will include local data• Practicable example of CPAD included• Workshops uses PowerPoint approach to:

– Reinforce training discoveries– Work on issues in smaller groups– Reflect on data found so far– Determine current ways of working, issues,

performances, opportunities, barriers.– Flow-chart core work, understand variation!


Host tools and practices• From fact finding and workshops develop:

– Risk register, for the intervention and work– Project plan, including critical issues– PiD?… hopefully high level, to wean off– Benefits Analysis, update constantly– Issues log, recorded at every session

• Effectively … anything that the host finds comforting to begin with, but:– Make them aware of value losses, the cost of

governance and lost opportunities*– *The more restrictions and control, the less will be achieved.


Plan• Starts with a workshop

– Blue sky thinking– Unrestrained core designs– Building on analysis of previous findings– Understanding core and secondary designs– Pareto, C&E, GIS, spaghetti, mind-maps, run-

charts, control charts, affinity diagrams….– Core flow chart + major secondary works– Consider constraints, must do items.– Evaluate value, value adding & non-value– Report to board, coloured flow, and pie chart.


Appraise• Is carried out at the end of Plan

– Plan creates capacity for primary / secondary areas– Increases in capacity come from:

• Creating less errors, high quality services are cheaper• Having less duplication or redundant work• Having better information enabling immediate work• Having less hand-offs and no work queues.

– This is re-invested to:• Introduce additional services• Add value to existing services or materials• Enable greater outputs or improved partnering


Visually stimulating


Discussions with Board• Why so much non-

value?– Constraints:

• Call Centre• Current IT system• Legislation

• Could we save 20% costs?– Not due to activity

reduction, but perhaps more is possible

• How soon could this start?– Some things have

started– After communication

• What more could be done?

Value enabling work 44%

Value added work 36%

Non-value added work 20%


• Defined by the customer

• Find ways to understand

& delight customers

• Design systems & processes

against purpose & demand

• Learn to manage the

organisation as a

system

• Understand variation

• Decisions based on

data

• Measure what

matters

to customers

• Model for

improvement

• Design the business

properly

CPAD

• Common understanding

• Cooperation not

competition

• Experiment and learn

• Visibility of the whole

• Appreciation of impact

• Belief in people; treat

with dignity, trust &

respect

• Reinvest in the future

• Use initial capacity to

add valueScientific Approach

All One Team

Quality

Joiner Triangle

Voice of the

ProcessVoice of

the People

Voice of the

Customer


Do• Is very easy to carry out:

– The Check, Plan Appraise processes addressed:• Core and secondary designs• Training, communications, inter-dependencies• Roles and responsibilities, interim needs• Testing, probing and improving• Creating temporary resources during transition• Union, HR, IT, Finance, Management approvals

• So you have an eager workforce, hungry to start their new ways of working.– Starting is easier than waiting!


Practicable example• Many examples:• Car park management• Highways maintenance• Insurance claims • ASB• Housing maintenance• School transport x 2• Integrated street-scene

• Waste & Recycling– Task:

• Improve operations• Halt increases in costs• 20% more recycling for

£300,000 a year more.

– Background:• Conservative council• Entirely DSO provided• Reasonable

performances• New call centre (bees

knees)• Town Hall/ depot friction• Questionable VfM• Getting worse?


(Pre) Check• Fragmented management• Moderate customer care• Call c. / back off. / ops splits• Unusable computer system• Fair amount of data• Virtually no information• Development lost in process• Pressures to change• Costs escalating• Accounts very wrong• Controls not working• Masses of fire-fighting

• Impossible failure demands• Information ferretable• IT development difficult!• IT system, new! Incomplete• No IT affinity in depot• Loads of unconnected IT• IT opportunities unrealised• Integrating data = info?• Graphs amassed on walls• C&E seen in info• Hope from quick wins• Improve and reduce


Information: failure demandMissed collections 2006 ~ 2009

0

200

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1200


Information: recycling diversionRecycling and Compost

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Recycled CompostedLinear (Recycled) Linear (Composted)12 per. Mov. Avg. (Recycled)


Information: LearningRecycling - Missed R34THU 21/06/2007 33 Tilers Close

Refuse - Missed Bin W34THU 21/06/2007 33 Tilers Close


Recycling - Missed R34THU 07/08/2007 33 Tilers Close

Recycling - Missed R34THU 09/08/2007 33 Tilers Close


Green - Missed Bag 18/01/2008 33 Tilers Close

Side Waste Missed Collection W12TUE 30/10/2007 33 Tilers Way

Recycling - Missed R52TUE 10/01/2007 34 St Leonards Road

Green - Missed Bag G12TUE 12/01/2007 34 St Leonards Road

Recycling - Missed R21MON 12/12/2006 35 Harrison Close

Refuse - Missed Bin W21MON 12/12/2006 35 Harrison Close

Refuse - Missed Bin W21MON 14/12/2006 35 Harrison Close

Recycling - Missed Assisted R65FRI 20/10/2006 36 Manor Way

Recycling - Missed Assisted R65FRI 20/10/2006 36 Manor Way

Green - Missed Bag G15FRI 13/04/2007 36 Manor Way

Refuse - Missed Bin W65FRI 29/10/2007 36 Manor Way


Evolving ideas via A3


Evolving strategy


A3 Planning


A3 workplans


Intervention start• End to end waste collection (for the

customer and for the business)• The intervention started in November

– Transformation team started– It was due to start with ‘Christmas blip’– Followed by start Check (data gather and improve)– Then training and form ‘Intervention Team’

• However….– The new Garden waste service was in melt-down– It was dragging all capacity into fire-fighting– Something had to be done!


Garden waste problemWaste Failures 2008

0

50

100

150

200

250

300

350

400

Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08

Refuse Recycling Garden


Quick win one• New Garden Waste service

– Prince 2 led project– Finance and IT dominated– 8 people a day failure demand– Melt-down getting worse

• First day of intervention– Three people used:– SPC, C&E, Pareto, mapping

issues by round, week ++– Found one round, one week– Initial database set up flawed– Hand corrected day sheets– Showed where to correct– Issues halved in two days

• Designed new day sheets• Altered database• Worked with operations:

– Back office– Supervision & management– Operatives– Gave them info ‘they’ needed

• Issues halved again in a week• Size of service doubled 5 months• Amount of issues halved• All learned that THIS works• Created capacity + support• Enabled pull for demand


Garden waste outcomes


Quick win two• Christmas blip

– This was the planned starting point• Christmas was a special cause• 600 defects every Christmas (> 4 times normal)• Used all SPC tools and dealt with

– Advertising and communications– Work schedules and resources– Timings of collections– Secondary training and process reinforcement

• Outcomes– Less than 250 defects– Prime cause, free paper distributor, dumping papers!– Future plans established to further improve


Overall system performance


Check Plan Appraise Do• Strategy and Operations E2E• Call centre to be retained• Good lead director & sponsor• Great lead member• Very open waste board• Supportive VfM board• Project ‘red tape ridiculous’• Gross misconduct analogy• Lack of empowerment• Latter pressures to save £s• Leader support:

– “I don’t how you are managing this, but we want more of it!”

• Broad no loss of jobs• Evolution of benefits• Growing awareness of IT issues• Early wins, then far more wins• Services improved, costs reduced• All outcomes improving• Meeting customer needs & wants• Reduced issues enabled:

– More capacity– Improving IT– Improving information– More income– Less stress and conflict


Benefits evolution Activity based savings

Details of incremental savings showing what can be saved in terms of people and resources as per a traditional project with suggested operational

areas to focus on utilising that time. This does not include none growth items shown as 'Value Added'.

Traditional Third year

Description Current resources Costs Proposed resources Cost Saving £Value added

Saving £

Trace / Agresso link Elaine D 1 hour per day £5,747 None £2805 £2,942 Grow commercial waste -£200,000

Reduced volume of refuse errors BSO's 36 hours a week £27,744 BSO's 18 hours a week £13,872 £13,872 Grow commercial waste

Reduced volume of refuse errors Rec. Mgt. 25 hours / wk £44,886 Rec. Mgt. 10 hours / wk £17,954 £26,932 Increase recyclates value -£15,155

Reduced volume of refuse errors Ref. Mgt. 18 hours / wk £32,318 Ref. Mgt. 10 hours / wk £17,954 £14,363Helps enable round less

Reduced volume of refuse errors 10% of Cust Serv. £35,000 5% of Cust. Serv. £17,500 £17,500 Capacity to expand -£17,500

Domestic Refuse rounds 8 rounds, Dr. + 2 £1,169,422 7 rounds, Dr. + 2 £1,023,245 £146,178 7 rounds, Dr. + 2 -£137,000

Collect recyclates from flats 7 rounds, Dr. + 2 7 rounds, Dr. + 2 £0 Sell recyclates -£28,291

Stop over-servicing refuse Collecting wrong side waste Increase rec / less wst. Sell recyclates -£33,802

Reduce double handling comm wst 7 people involved 3 people involved Comm waste system -£9,908

Align all weighbridge data From 7 people 50% more data, less people Back Office system -£16,362

Use vehicle tracking to reduce vehicles Parts of many Better use, reduces OH's Vehicle tracking -£92,378

Increase Garden Waste services Diversify and grow services More work same resources -£109,155

Improved information / dashboard Nearly all NS officers £46,899 BSO's , then by design £15,633 £31,266 Not 6 people on same job

Total Savings Traditional £253,053 Value added-

£659,551


Benefit DetailsOriginal 'Budget plan'

Budget Flow 2008/09 2009 / 10 2010 / 11 2011 / 12 2012 / 13 2013 / 14Base Budget Expenditure £3,339,200 £3,449,330 £3,535,563 £3,623,952 £3,714,551 £3,807,415 Income -1,626,500 -1,667,163 -1,708,842 -1,751,563 -1,795,352 -1,840,235

Original Net Budget £1,712,700 £1,782,168 £1,826,722 £1,872,390 £1,919,199 £1,967,179

Changes from base budget:Removal of growth refuse round -£135,000 -£135,000 -£272,000 -£272,000 -£272,000 -£272,000

Removal of growth recycling round -£52,000 -£52,000 -£52,000 -£52,000 -£52,000Increase in commercial waste surplus -£75,000 -£118,689 -£187,133 -£275,000 -£275,000 -£275,000

Increase in recyclates income -£372,781 -£465,778 -£465,778 -£465,778 -£465,778 -£465,778Improvement in garden waste position -£149,945 -£230,000 -£287,000 -£317,500 -£331,000 -£349,000

Improved vehicle utilisation -£7,667 -£16,100 -£23,000 -£23,000 -£23,000Increase plastics and values -£8,851 -£17,702 -£46,502 -£46,502 -£46,502

Improve values of recyclates -£15,686 -£31,529 -£47,058 -£47,058 -£47,058Increases in recycling to flats + marketing -£10,104 -£28,291 -£40,416 -£40,416 -£40,416

Tracking, back office and comm waste system £160,000 -£201,972 -£201,972 -£201,972

Recycling Blueprint via phasing (3 a high) -£229,526 -£459,052 -£459,052Systems Thinking intervention and training £150,000

Increase in haulage and collection costs £72,000 £73,436 £77,842 £82,512 £87,463 £92,711Unknown and contingency costs £75,726 £55,000 £56,375 £57,784 £59,229 £60,710

Additional costs £153,832 £100,000 £100,000Revised Forecasts

Forecast net budget £1,277,700 £1,020,661 £763,406 £141,934 -£47,886 -£111,178


Financial benefits

2008/09 2009 / 10 2010 / 11 2011 / 12 2012 / 13 2013 / 14

-£200,000

£200,000

£600,000

£1,000,000

£1,400,000

£1,800,000

Net waste budget proposal

Original Net Budget Forecast net budget


14 Points applied• Constancy of purpose To involve all parties to improve• Adopt the new philosophy Not improve and cut jobs. Add value• Cease need to inspect Start to trust front line staff• Form partnerships Long term relationships started• Improve constantly Phased improvement by design• Institute training on the job Systems Thinking / upgrades• Institute leadership Better use existing, not blame• Drive out fear No job cuts as a result of changes• Integrate departments All working together 1st time!• Eliminate slogans Pushed back on arbitrary, used

capacity• Eliminate arbitrary targets Demonstrated benefits 1 by 1• Enable pride in work Understanding created belief• Education & self improvement Internal train, promote, develop• Everyone work to transform Whole teams involved & spreading


Achievements to date• Missed collections from 115 per 100,000 properties to 17 (test)• Reduced recycling and residual waste rounds by one each• Reduced cultural barriers between services• Reduced non-value work in back office• Improved service designs for Bank Holidays• Improved weights spreadsheet• Improved management information and use of• Improved ‘assisted lists and round sheets’• Introduced commercial recycling• Reduced recycling and residual rounds by a crew each• Introduced specific designs for flats• Saved £1m in years one and two• Highest levels of recycling ever +++


Questions?

visualising transformation support services direct visualising transformation deming forum 12 th may...

Documents

version slide

transformation team

value work

check check

training discoveries

work project plan

value demand customer

workshop check