Air Permitting : Process Improvement Kaizen EventJune 4 – 8, 2007

Transforming Government- the challenge and opportunity of the 21st centuryTransforming Government- the challenge and opportunity of the 21st century

2

Overview

Team Purpose and Scope Process Potential Improvements

For the Agency For Applicants

Implementation Plan Ongoing Improvement

3

Team

Cross Functional – Client and Agency

Name Company DepartmentKatherine D. Hodge HDZ/IERGDean Frommelt ADMDK Hirner IERGEd Bakowski IEPA PermitsCharlie Zeal IEPA PermitsLori Pennington IEPA PermitsRoss Cooper IEPA PermitsChris Romaine IEPA Air PermitsGenevieve Damico US EPA ARDRobb Layman IEPA LegalBradford Kohlmeyer Exxon Mobil

4

Purpose and ScopeScope: This event will address the Air Permitting process from point of receipt

application by IEPA to permit complete: Minor Construction Permits* at any source (900 Annually-60%)

• Lifetime• CAAPP (or title five)• FESOP

*Minor is defined as not a major project under NSR, not relying on netting to avoid NSR, not subject to Public comment period

Objectives and Goals Processing time: Improve processing time (Lead time) of air permits

within scope - receipt to issue in calendar days• Reduce processing time by 75%

Quality : Permits with no missing information• Reduce applications that are incomplete/inaccurate/admin requiring a call back

or NOI by 75%• Reduce issued permits that need to be corrected (re-issued) by IEPA by 90%

Cost : Maintain or reduce, increase output with same cost input

5

Team Approach and Activities

Training on Key Concepts of Time-Based Strategy and LeanSigma® Waste, Value add, hand-off Variability Straight through, one touch disposition, quality at the source

Define the Current State Flow Performance Metrics Volume and Capacity

Develop and Evaluate Alternatives Simulate/Pilot or Implement Alternatives Develop Standard Work Define Implementation and Deployment Plan Report-Out to Sponsors

6

En

gine

er

Detail 3 Receive to desk / chair

FileCorrect Fee?

Delay X days

YesNo

Draft Fee Letter

Deliver to Typing

Typ

ist

RecieveDelay X

daysType

Delay 1 days

Put in out box

Pickup from typing

Analyze(FIFO)

Correct?

Initiate Source Contact

Delay X days

Get Data?

Send info to typing

Detail 4

Yes

Yes

Request InfoRAI

RAI again?

DenyYes

No

No

End of Process

Detail 5

Detail 4

Eng

ine

er

Draft PermitPrepare Calc

SheetSend to manager

Prt

Un

it M

gr

Receive Permit

ReviewDelay 1

daysCorrect if needed

Send to Analyst

RecieveDelay 1

daysCorrect Permit

Deliver to typist

Typ

ist

RecieveDelay X

daysType

Delay 1 days

Put in out box

Eng

ine

er

Pick up Typing

Review Final Draft

Correct?

Yes

No

Typist Loop

Typist Loop

Log into ICEMAN

Deliver to Mgr

Final ReviewDelay 1

daysCorrect?

Typist Loop

Final ReviewSign, Logout

Send to Admin

Ass

itant

2

RecieveLogout of ICEMAN

Mail Out End of Process

Current State - Process

Documented current application processFrom

assit 2

Ass

ista

nt

3A

ssis

tan

t 4

Open in ICEMAN

Create Traveler sheet

file

Deliver to file room

New Create File

Pull Existing file

Send to Unit Mgr

Prt

Un

it M

gr

Receive Application

0-6 days

Sort & AssignDeliver to Analyst

Prt

Un

it M

gr Receive inbox

0-4 days

Screen Checklist

Complete

Yes

No

No

YesFee Review Deliver File

Draft NOI

Fe

e C

zar

Receive App .5 day Analyze fee Correct?

No

Yes

Prt

Un

it M

gr

2

Recieve AnalyzeCorrect &

send to Eng

Detail 3

Agree?Consult Fee Czar. Eng

Detail 5 NOI

Send to Eng

No

Yes

Detail 5

Ass

ista

nt 5

Receive Mail

Ma

il R

oom

Sort Mail by bureau

Deliver to Permits

Ass

ista

nt 1

Sort by Section

File in boxesDeliver

permits to Desk

Open & date stamp

ReviewNew

Facility?Assign ID

Enter Permit ID in ICEMAN

Construction?

Deliver Checks to

Budget

Check?Enter in ICEMAN

Make Copies if needed

Deliver to Assist 2

Yes

No

Yes Yes

Ass

ista

nt

2

Marge

Betty

Yvonne

Typ

ist

Check FeeWrite info on

feeDeliver to Assist 3

Prep reject letter

Deliver to typist

Type form letter for reject

fee

Return Final letter

Forward to Unit Magr

Final action on ICEMAN

Put Letter in Maibox

Ass

t Uni

t M

gr

Open and assign

Return to Yvonne

From assit 2

No

Leadtime days 66Steps count 108Handoffs lanes 27WIP apps 230Delays count 19Day Delay std 10Decisions 14

7

State of Lead time

Before

After

Conservative Estimate 40% Improvement– Expect greater improvement as data collected over the next few weeksLead

time 1 Days 30 Days 6 days 1 daysTotal 38

days

Admin

Lead time

Cycletime (hrs:min)

1-5 Days

Analyze Type Rev,Sign,Mail

45 Days 13 days 3 days

1:22

Assign

5:15 1:44 0:10

Total 66 days

Total 9 hours

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Impact / Difficulty Matrix

ID Impact / Difficulty Matrix Impact Difficulty4 Revised completeness checklist work form

accompanied by area for "follow-up," i.e., letter, call, email and response

H L

6 For simple apps only Eng do fee review Fee ProcessH L16 Jr Eng review & sign "simple" permits H L38 Change format of permits H L42 Internal External Training H L47 Detailed completeness checklist for both

staff & applicant for permits

H L

48 "Model" apps readily avaialble e.g., on the WEBH L49 Transfer permits in-house electoronically

use"track changes" function to streamline edits.

H L

1 New Form 200 (basic construction app form) cpver letter, email address, subject of app

H M

2 Redo forms H M15 Compartmentalize Std tasks e.g., like

FESOPsH M

30 Clear definition of work process & expectations whys

H M

31 Establish Perf Expect around non-subjective rework

H M

46 Better nhelp to DCEO for little guys H M52 Analyst sends to Unit Mgr indicating issues,

needsfor review or no need

H M

Hig

h Im

pact

Low

Im

pact

Low Difficulty High Difficulty

4 6

16

38

4249

1

2

15

30

3146

52

31

27

7

Sample only: complete list and quick hits in appendix

Ranked and prioritized 56 improvement ideas

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Major Themes - Improvements

Improved / fewer application forms Reduced process steps Reduced movement, hand-offs Combined administration steps Extra resource for typing Early “completeness review” Workspace organization Outreach and Communications Internal Scorecard with Process Metrics External Scorecard for public review

10

Goals for the Agency

Speed up internal processing, fixed dating documents, developing new forms & instructions, More uniform review guidance, outreach, improved permits, tracking data

Timeline – Some items initiated immediately, others ongoing. -Day 1 - eliminated some dead time, fixed dates & Admin

steps. -Week 3 – Earlier Completeness review, “Welcome Call/more

communication”, added Typing resources -Ongoing – Revised forms with clearer instructions,

Tracking System Seeking to reduce average processing time from 66 days to

38 days

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Goal for Applicants

By improving forms and describing what we need in applications should improve what comes in the door. This leads to less “re-work” by both parties and will improve the overall efficiency of the process.

Seeking to have 75% of applications approvable on the initial submittal vs. 35% previously

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Future State – Standard of Work

Example in Engineering

NEW ENGINEER’S TASKS1. Document Delivery2. Completeness Checklist3. Welcome Call4. Section Scorecard5. Final QA/QC6. Exit Screening Checklist7. Document Info Requests8. Construction Permit 1st9. New Forms10. A New Main Form11. Permits Assign Daily12 “Template” Permits

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Issues Mitigation Strategies

Contract Develop job descriptions Begin change process

Typing Re-allocated resourcesAdditional resourcesWork content / training

Technology Use of electronic deliverables (internal, external)

Outreach Help tools, training

14

What to watch for

More calls/communication New forms & instructions Posted on the web in Nov. Outreach seminars Web tracking system