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Transcript of 1. Government Agencies Working Smarter and Faster Jamie Burnett U.S. Environmental Protection Agency...
Government Agencies Government Agencies Working Smarter and Working Smarter and
FasterFaster
Jamie BurnettJamie Burnett
U.S. Environmental Protection AgencyU.S. Environmental Protection Agency
OSHA OSHA
February 7, 2008February 7, 2008
33
Presentation OutlinePresentation Outline
What Is Lean?What Is Lean? State and Federal Lean State and Federal Lean
ExperienceExperience Why Do LeanWhy Do Lean Lean in Government ResourcesLean in Government Resources
44
What Is Lean?What Is Lean?
Lean: Lean: – Lean is a set of principles and tools that Lean is a set of principles and tools that
improve the speed and quality of any improve the speed and quality of any process by eliminating wasteprocess by eliminating waste
– Developed by Toyota, adapted for other Developed by Toyota, adapted for other sectorssectors
““Common sense uncommonly applied”Common sense uncommonly applied”– Methods include value stream mapping Methods include value stream mapping
and kaizen eventsand kaizen events– Kaizen = “change for the good of Kaizen = “change for the good of allall””
55
Lean at Environmental Lean at Environmental Agencies Is Rapidly Agencies Is Rapidly ExpandingExpanding
- State Lean Events Completed- States Interested in Lean
66
Example State Results:Example State Results:Iowa Air Quality New Source Iowa Air Quality New Source Construction Permits Kaizen Construction Permits Kaizen EventEvent Before Lean:Before Lean:
– Issue ~ 2,000 permits per yearIssue ~ 2,000 permits per year– Average lead time: 62 daysAverage lead time: 62 days
After Lean:After Lean:– Lead time reduced to 12 days (down to 6 Lead time reduced to 12 days (down to 6
days after 6 months)days after 6 months)– Steps cut by 70%Steps cut by 70%– Handoffs cut from 18 to 4Handoffs cut from 18 to 4– 600 permit application backlog eliminated 600 permit application backlog eliminated
in 6 monthsin 6 months– Process became more customer friendlyProcess became more customer friendly
77
Federal Agency Lean EffortsFederal Agency Lean Efforts
EPA Lean EventsEPA Lean Events– State-EPA Region 7 Water Quality Standards State-EPA Region 7 Water Quality Standards
ReviewReview– Performance Track ProgramPerformance Track Program
Other Federal AgenciesOther Federal Agencies– Dept. of Defense—Army, Navy, Air Force, Dept. of Defense—Army, Navy, Air Force,
MarinesMarines– Depts. of Agriculture, Energy, Homeland Depts. of Agriculture, Energy, Homeland
Security, Housing & Urban Development, & Security, Housing & Urban Development, & Veterans AffairsVeterans Affairs
– FBI, National Security Agency, NIST, PBGC, U.S. FBI, National Security Agency, NIST, PBGC, U.S. Mint, U.S. Postal ServiceMint, U.S. Postal Service
88
State-EPA Water Quality State-EPA Water Quality Standards Review Kaizen Standards Review Kaizen EventEvent
Participants:Participants: EPA Region 7, EPA HQ, Iowa, EPA Region 7, EPA HQ, Iowa, Kansas, Missouri, and NebraskaKansas, Missouri, and Nebraska
Process:Process: Water Quality Standards Submittal, Water Quality Standards Submittal, Review, and ApprovalReview, and Approval
Methodology:Methodology: 5-Day Kaizen Event5-Day Kaizen Event Results:Results:
– Process steps reduced from 50 to 26, cut timeProcess steps reduced from 50 to 26, cut time– 50% drop in number of EPA decisions needed50% drop in number of EPA decisions needed– Common understanding of processCommon understanding of process– Clarified roles & responsibilities, built trustClarified roles & responsibilities, built trust– Documented new improved processDocumented new improved process
99
Why Would Regulatory Why Would Regulatory Agencies Try Lean?Agencies Try Lean?
BacklogsBacklogs eliminated or drastically eliminated or drastically reducedreduced
Lead timesLead times reduced reduced ComplexityComplexity decreased decreased QualityQuality & & consistencyconsistency improved improved More More “mission critical” work“mission critical” work Staff moraleStaff morale improved improved TransparencyTransparency improved improved
1010
Common ReactionsCommon Reactions
Expect initial staff resistance:Expect initial staff resistance:
– ““We’ve already tried that.” We’ve already tried that.”
– ““The focus on streamlining The focus on streamlining processes may erode processes may erode environmental protections.”environmental protections.”
– ““We don’t have time to focus on We don’t have time to focus on process improvement.” process improvement.”
Proactive communication and Proactive communication and demonstrating positive results can demonstrating positive results can alleviate these concernsalleviate these concerns
C.A.V.E. People: Citizens Against Virtually Everything
1111
What’s Powerful About LeanWhat’s Powerful About Lean
ResultsResults AccountabilityAccountability EmpowermentEmpowerment ActionAction ExcellenceExcellence
1212
EPA & State Lean in EPA & State Lean in Government ResourcesGovernment Resources
““Working Smart for Working Smart for Environmental Protection” Environmental Protection” Primer Primer www.epa.gov/lean/toolkit/primer.pdfwww.epa.gov/lean/toolkit/primer.pdf
Lean in Government Starter Kit, Lean in Government Starter Kit, www.epa.gov/lean/starterkit/www.epa.gov/lean/starterkit/
Iowa Lean Website, Iowa Lean Website, http://lean.iowa.gov/http://lean.iowa.gov/
ECOS Lean Government ECOS Lean Government Website,Website, www.ecos.org/section/projects/?id=2292www.ecos.org/section/projects/?id=2292
February 7, 2007
Executive Overview
Thomas J. Morin
Managing Director
Transforming Government
The challenge and opportunity of the 21st century
U.S. Department of Labor
Occupational Safety & Health Administration
14
© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 15
Guidon Performance Solutions: Who We Are
Change agents for rapidly improving responsiveness and
increasing value in the new economy for all stakeholders
Using time-based strategies, we help government agencies
establish a competitive advantage, which contributes to the
economic growth and an efficient & effective utilization of
resources while improving quality of life for all the state’s
constituents.
Transforming Government for Improved ResponsivenessTransforming Government for Improved Responsiveness
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 16
Evolution of LeanSigma®
The fusion of today’s most powerful improvement programs
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Our Heritage
Toyota Production SystemToyota Production System
Taiichi Ohno Shigeo Shingo
“One thing you can’t recycle is wasted time.”
Yoshiki Iwata with Anand
Toyota Roots
Taiichi Ohno
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 18
What is World Class Government?
A organization that is:A organization that is:
Lean, agile & connected to the actual constituents demand
Responsive to the constituents needs for new programs & services
Improving continuously to enhance all stakeholder values
Transforming culture to sustain improvements
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 19
4
StakeholdersFinancial return • ReliabilityIncome growth • Survival
1
Constituents
Quality
Responsiveness
Cost advantage
The New Government Challenge
Partners
Involvement
Stability
3Employees
Job security
Self esteem
Recognition
Rewards
2
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 20
Time-Based ManagementTime-Based Management
Kaizen Breakthrough MethodologyKaizen Breakthrough Methodology LeanSigma® Value Chain TransformationLeanSigma® Value Chain Transformation
Our Consistent Focus
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 21
The Common Element
“Today, it’s all about speed.”Tom Peters
Lean = speedLean = speed
Lean tools and techniques are the most effective way to speed up every part of your
operations
Time: Today’s Most Powerful Competitive Time: Today’s Most Powerful Competitive AdvantageAdvantage
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OPERATIONAL LEAD TIMEOPERATIONAL LEAD TIME
Wasted Time and Activity
Core Process Value
Excessive Motion Defects & Loop Backs
Hand-offs Waiting Unnecessary Processing
Excessive Backlog
Overprocessing
Time-Based Strategies
Lead-Time ReductionLead-Time Reduction
The key is to reduce your processes to “core value”The key is to reduce your processes to “core value”
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Introduction to LeanSigma
MinorImprovement
TraditionalImprovement
0.5%
99.5%
10%
Kaizen WasteReduction
MajorImprovement
90%
Typical Organization
OriginalLead Time
1%
99%
Value-Adding Activities Non-Value-Adding Activities
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 24
What is the Kaizen Breakthrough Methodology?
A cross-functional team based process for rapid improvement with:
Bias for action
Creativity before capital
Focus on results
Promote Rapid Change Through Involvement!
Focusing on physical transformation Learn by doing Overcome resistance Instill change culture
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 25
Step One – Pre-Kaizen “Preparation”
Select project area Product line focus
Strategic business need
Large improvement potential
Establish project objectives Collect base-line data, set quantitative improvement goals
Select team members Enthusiastic Team Leader and Sub Team Leader
Team makeup 1/3, 1/3, 1/3
Pre-event communication Full-time, five-day participation
Communications session with work area team
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 26
Team-based energy and creativity drives immediate process improvementTeam-based energy and creativity drives immediate process improvement
Day 1Day 1 Day 2Day 2 Day 3Day 3 Day 4Day 4 Day 5Day 5
Day of Training &
UnderstandingDay of Discovery Day of
Improvement
Day ofDesign
Implementation&
Documentation
Day of Celebration&
Results
Kaizen Breakthrough ExperienceKaizen Breakthrough Experience
At the end of the week, each Kaizen team has achieved dramatic operational improvements
The Kaizen Approach
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 27
Step Two - Kaizen Implementation
Key PrinciplesKey Principles
• Clear objectives
• Team process
• Tight focus on time (one week)
• Quick and simple, action first
• Necessary resources available right away
• Immediate results (new process functioning by end of week)
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 28
Step Three – Post-Kaizen “Sustainment”
30-day home work requires part-time involvement by team leader and selected team members
Management must provide adequate resources to complete all homework items
Train area leaders and associates
- Standard work
- Visual controls
- Countermeasures for abnormality and problem resolution
Post suggestion board in the work area and make sure that they are attended to
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Introduction to LeanSigma
Productivity 20 - 30% +
Defects 40 - 50% +
Lead Time 70 - 90% +
Backlog 70 - 90% +
Floor Space 30 - 50% +
Without spending major capital
Rapid, Sustainable Improvements
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Steps to Implementing LeanSigma
Create a business process map to identify areas of opportunity
Identify value adding and non-value adding activities and set new performance targets
Create process flow
Pace work to customer demand
Reduce variation and improve quality
Intense focus on daily performance management and visual control
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Process Flow Map
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 32
Time-Based Strategies
Value-Adding Activities• Transform materials and
information into programs and services the customer wants and it is done right the first time
Non-Value-Adding Activities
• Consume resources, but do not directly contribute to a program or service
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
Time-Based Strategies
Identify and eliminate waste
• Defects and loop-backs
• Hand-offs
• Over-producing
• Unnecessary processing
• Decisions in process
• Excess transportation
• Waiting
Lead-Time ReductionLead-Time Reduction
© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 34
Spaghetti Diagram Example
Desk
Table
Desk
Desk
Desk
Desk
Table
Desk
Table
Desk Desk
Table Table Staging Area
6, 7, 8, 96, 7, 8, 9
Desk
6, 7, 8, 96, 7, 8, 9
6, 7, 8, 96, 7, 8, 9
DeskDesk
Table
Table
Start
Table Table
1
12
4c
4a
3
2
11 10
cart
4b
Mail Room
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 35
Process Must Be Repetitive
Customer must always get the same answer no matter who they ask
Customer must get the same answers no matter what time of the day, or day of the week they ask
Customer must always get on-time, complete, and accurate information
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 36
Reduce Variation
Sources and causes of variation make standard business processes appear to be random, non-standard work
Missing information
Wrong information
Wrong work sequence
Non-standard training processes
Non-standard decision aids
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 37
Assuring First-Time Quality Means…
Build the system with appropriate information
Build mistake-proofing devices for common problems
Never passing a defect on to the next process;
Detecting abnormalities
Responding immediately
Eliminating root causes
Establish clear decision rules
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 38
Cultural Transformation
Cultural change: long-term process requiring
- Deliberate change in management attitude
- Participation and empowerment
- Fundamental policy changes
Sustaining change requires - Align performance measures
- Constant communications
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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 39
Life In the Government Silo
KaizenKaizen
LaserLaser
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ManagementManagement attentionattention
Managing Resistance
Critical mass
Management Management attentionattention
Promoting ChangePromoting Change
Increasing Increasing resistanceresistance
Increasing Increasing cooperationcooperationNeutralIncreasing Increasing
resistanceresistanceIncreasingIncreasing cooperationcooperation
Neutral
Early adopters
Traditional SituationTraditional Situation
Anchor Anchor draggersdraggers
"Uncommitted Mass"
Strong pull from early adopters
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Physical transformation that improves responsiveness, quality, cost & customer service
Cultural Transformation that energizes the workforce, releases creativity and encourages teamwork to sustain the improvements
Energy, enthusiasm, efficiency and effectiveness that delivers excellence to all stakeholders
In Summary
What to Expect from Your LeanSigma® Transformation
41© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
Questions?
Thank You
Questions?
Thank You
© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.