Department of Environmental Quality

Lean – Kaizen Overview

APICSThe Association for

Operations Management

Portland Chapter26 March 2009

APICS builds operations management

excellence in individuals and enterprises through

superior education and training, internationally

recognized certifications, comprehensive

resources, and a worldwide network of

accomplished industry professionals.

Department of Environmental QualityLean – Kaizen Business Process Improvement

Lean - Kaizen

Business Process ImprovementOregon Department of Environmental Quality

John L. Reel

Management Services Division

Process Improvement Coordinator

Oregon Department of Environmental Quality

Overview

DEQ‟s 2008 launch was directed with the understanding that

the Lean – Kaizen methodology must prove itself.

Our results… Lean – Kaizen has proven

itself to DEQ by eliminating resource waste,

excessive processing steps, ambiguous

understandings, corporate and region

miscommunications, and just down right

stupid stuff that no one could figure out.

DEQ‟s Implementation Strategy

• Strong Upper Management SupportDeputy Director is the DEQ Lean Champion

• Management and Staff EmpowermentLean – Kaizen teams are empowered by signed contract

• Oregon DEQ and DHS Lean collaborationExpanded ECOS Lean methodologies

• Establishing a distributed Lean cultureCoaching, mentoring, training, and dispersing knowledge

• Both private & public sector collaborationPrivate and public sector Lean – Kaizen team members

Oregon Lean CollaborationEnvironmental Council of the States

DEQ Implementation relies upon…

• “most-pain” and “highest gain” the first 2 years

• implementing “ROI” project selection in 2 ½ years

• “applying common sense, uncommonly”

• delivering the most bang for our resource investment

• not relying upon technology for solutions

2008 2009 2010 2011

Most-Pain Selection Method

Logical Selection Method

2008 – 2009: Implement an 18 month “most-pain,” cognitive style

plan that is commonly in the early Lean business implementations.

2009 – 2010: Implement a phasing in logical project selection plan

that will significantly increase DEQ‟s Return on Investment (ROI.)

DEQ Implementation relies upon… continued

• least implementation costs

• cultural “Lean Tipping Point”

• rapid measurable improvements

• distributed Lean culture

• Lean empowered management/staff team

Lean Path

• We have the two optional

events; the “5S” and

“Visual Display Board”

• All of the “Pre” and “Post”

events are ½ day

• The “Lean – Kaizen 5 Day Event”

can take anywhere from 40 – 50 hours,

depending on the self determination of

the assembled team

Team Selection

• Team selection is based upon experiential criteria

• Active “doers;” individuals that accomplish under all situations

• Individual that are people “connectors” of trust and discipline

• Individuals, neither strongly opposed nor strongly pro event

• Individuals with a “let this process prove itself”

• A mix of management, supervisors, and staff

• A mix of logical and gut thinkers

• Two or three “wildcards” that come from outside the organization

“Wildcards” are Individuals that are from both the

private and public sectors… outside of the field

Favorite Tools

• Project Charter

• What is developed is implemented “Contract”

• Exhaust the empowered team every day

• Exposing the elephants in the room

• “Frankenstein” Map

• 5S and Red Tag

• “Visual Display Board”Continuous Process Improvement

Favorite Tools… continued

• Issues / Solutions Brainstorming

• Impact / Difficulty Metric

• RACI (Responsible – Accountable – Consulted – Informed)

• Spaghetti Maps

• Kaizen Newspaper

• SharePoint

• Group Dynamics

• Participant Ground Rules(Responsible – Accountable – Consulted – Informed)

Team Member Ground Rules:

• Know it‟s not about people; it‟s about process

• Keep an open mind to change

• Maintain a positive attitude

• Never leave in silent disagreement

• Create a blameless environment

• Practice mutual respect everyday

• One person – one voice – no position or rank

• There is no such thing as a dumb question

• Understand the business process and simplify it

Observer Ground Rules:

• Silent Observation

Stealth… there, yet not there

Back of the Mind…Event - Issues Complexity:

• Simple Event

• Discrete or Entangled Event

•Tame or Wicked Issue

• Core Symptoms and Issues Known

Core Event Reason:

• Process Pain Level

• Business Criticality Level

Intellectual Resources Availability:

• Subject Area Experts

• Work Group Manager

• Work Group Staff

• Non-DEQ Participants

• Non-Work Group Participants

DEQ Support and Commitment:

• Executive Management Team

• Identified Stakeholder

• Work Group Manager

• Work Group Staff

• External Work Groups

Volatility / Risk Assessment:

• Pubic Political Volatility

• DEQ Political Volatility

• Identified Stakeholder Volatility

• Work Group Manager Volatility

• Business Volatility

• Financial Volatility

Work Group Expectations:

• Reduce "In-Process" Steps

• Reduce Operational Cost

• Reduce Processes Time

• Reduce Process Wastes

• Reduce Process Lead Time

• Reduce Process Complexity

• Increase Customer Satisfaction

• Increase Work Group Job Satisfaction

Group Dynamics:

• Group Cohesion

• Number of Sub-groups (splinter groups)

• Work Environment Rating (work rating)

• Empowered vs. Not Empowered

• Hierarchal or Egalitarian

Funding Availability:

• DEQ Available Funds

• EPA Available Funds

• DAS Available Funds

• Other Available Funds

Time Availability and Time Constraints:

• Event Start Date – Proposed

• Event Stop Date – Proposed

• Event Length Days - Duration

Process Information and Data Availability:

• Availability of Historical Data

• Availability of Current Data

• Confidence of Existing Data

• Complexity of Data Collection

• Work Group Process Knowledge

Lean – Kaizen Projects:Current Lean – Kaizen Projects

• Office of Compliance and Enforcement (OCE)

Concluded Post 6 Month Event Review

• Laboratory and Environmental Assessment Division (LEAD)

Concluded Post 60 Day Event Review

• Business Systems Development (BSD)

Concluded 5 Day Event

Office of Compliance

and Enforcement (OCE)

OCE Lean – Kaizen Event

Jane Hickman

OCE Administrator

Oregon Department of Environmental Quality

The Office of Compliance and

Enforcement

Office of Compliance and Enforcement

Scope:

This event will address the formal enforcement process from issuing Pre-

Enforcement Notice (PEN) to issuing Formal Enforcement Action (FEA).

Goals:

• Reduce lead time by 50%

• Reduce the number of incomplete referrals

• Streamline review process by 50% and ensure 100% review

Objectives:

• Maintain consistency in process

• Better working relationship between OCE and Regional staff (one team)

• Better communication and transparency of process

• Ability to track progress or status of cases

• Improve quality of work product (drafts, comments, referrals, etc)

• Ability to increase number of enforcement actions each year

• Improve perception of agency enforcement process

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The old way of doing business

The “Current

State” Map

What does our

process currently

look like right

now?

The new way of doing business

48.7% Reduction in process steps

42.9% Reduction in “required” decisions

28.6% Reduction in process loop backs

61.3% and 16.7% Reductions in hand-offs

52.6% Reduction in waiting

95% Improvement in Value Added Steps

State of O regon Dept of Environm ental Q uality – PEN to FEA Future S tate Process

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Results accomplished within 6 Months:

• High impact, very little implementation costs business improvements

• New uniform Pre-Enforcement Notice (PENS) form

• Implementing “standard work” processes for field inspection staff and

environmental law specialists. Staff training on the new form and requirements will

provide consistency

• Managers/staff share the same definition of quality

• Implemented “job shadowing”

• Simplified “Formal Enforcement Action” notices to environmental

violators. The large number of citizen‟s monthly phone calls asking the

environmental law specialists for clarification of the mailed notice, has dropped to

zero

Laboratory Evaluation and

Assessment Division (LEAD)

LEAD Lean – Kaizen Event

Gregg Pettit

LEAD Administrator

Oregon Department of Environmental Quality

Laboratory Evaluation and Assessment Division

Laboratory Evaluation and Assessment Division

Scope:

Project scoping is key to the success of the Kaizen process. The scope of this

Kaizen exercise focused on the turnaround time from receipt of a sample at the DEQ

laboratory through release of the case report.

Goals:

• Improve sample turnaround time by 50 percent

• Reduce steps by 40 to 55 percent

• Improve client satisfaction by 10 percent

Objectives:

• Identify reliable metrics and establish incremental goals

• Meet holding times

• Establish reliable end-to-end turnaround times and case-measurement cycle times

• Define client expectations for timeliness

Laboratory Evaluation and Assessment Division

What does our process look like right now?

Here is what our process will look like

in 90 Days (90%) and finally within 6 Months (98%)

New Processes Improvements

42% Reduction in process steps

53% Reduction in “required” decisions

56% Reduction in process loop backs

60% and 85% Reductions in hand-offs

38% Reduction in waiting

Current State Future State % Change

Steps 93 54 - 42%

Decisions 17 8 - 53%

Electronic hand-offs 10 4 - 60%

Physical hand-offs 26 4 - 85%

Loop backs 9 4 - 56%

Waits 16 10 - 38%

Value Add steps 3 3 N/C

Value Add % 3.2% 5.6% 72%

Results accomplished within 60 days:

• bar code system for water quality samples. The system uses the lab‟s

three electronic barcode readers cutting processing time and increasing lab accuracy.

• Re-examination and retooling of an internally-developed, yet unused

electronic Lab Information Management System. The system

implementation date is March 2009.

• Incorporating a program to upload data directly into the databases and

eliminating multiple human-error related quality checks.

• Creating a new, easy-to-understand Quality Control Report.

• New electronic tools to track samples and their movement within the

various sections.

Lean Lessons Learned

• Strong sponsor‟s support is essential

• Empowering the team is effective

• External team members brought new ideas

• Laboratory staff, outside the Kaizen event stepped up to support the team

• Weekly assigned task check-ins kept the momentum at full throttle

• Managers/staff became increasingly more excited with improvements

• There can never be too much communication… the more, the better!

Business Systems

Development (BSD)

BSD Lean – Kaizen Event

Sohng Shin

BSD Manager

Oregon Department of Environmental Quality

Business Systems

Development

Business Systems Development

Scope:

Process improvement for requests for scheduled and unscheduled maintenance,

error correction, enhancements and ad hoc reports from the time the request is

received and completed.

Goals:

• Reduce/rework interruptions and multiple entries of requests

• Eliminate unnecessary wait times

• Increase BSD performance and productivity

• Improve client satisfaction and increase available development time

• Redefine and restructure Help Desk

Objectives:

• Clearly define BSD roles and prioritize tasks

• Develop metrics for measuring success

Business Systems Development

Current “Maintenance” Process:

BSD is an

Entangled

System(only 3 of 5 systems)

Current “New Development” Processes:

Future Map

There was no

known consistent

“maintenance”

system in place

when we started

the Kaizen process

The core issues

were identified as

“interruption”

driven

20% Reduction in process steps

12.5% Increase in “required” decisions (from 7 to 8)

66.7% Increase in process loop backs (from 1 to 3)

100% Reduction in physical hand-offs

60% Increase in electronic hand-offs

100% Reduction in waiting

Kaizen Newspaper

• Assigned Task ownership and accountability

• SharePoint Server as central information centerWhat Who When Status %

Triage Protocol for Help Desk including urgent request Lewis 4/27/2009

Help Desk Develop/Determine Issue Tracking Log System Ted Now 100

Help Desk Reporting: Protocol & Schedule Determination Dave 5/1/2009

BSD LEAN-Kaizen PowerPoint Presentation William Now 50

Current/Future State Maps (Visio) James Now 100

RACI: Current & Future Responsible metrics Jeffery Now 100

Maintenance/Operations and New Development Metrics Scott 3/13/2009 75

IT/ BSD Ideas Flip Chart Bruce 4/14/2009 25

Define BSD Roles Sohng 6/1/2009 50

"Policy" and Roll Out of Help Desk Single Contact Sohng 6/15/2009

Rotating "On-Call" Developer System Plan Sohng 4/13/2009

Recruit & Research Participation for Help Desk (LAN/MSD) Sohng 6/15/2009

Restructure & Implement Help Desk Dave 5/1/2009

Update Q-Net Web Page(s) -- Eliminate BSD contact information Elle 3/17/2009

Provide help desk phone number Sohng 6/15/2009

Step By Step Procedure(s) for future map Anu 4/12/2009 75

Develop Operation Matrix Dave 5/1/2009

Add Q-Time Numbers for Task (Expand Program Tracking) Scott 4/15/2009

Communicate BSD project status on Q-Net William 4/15/2009

Help Desk Request Form(s) Dan 3/27/2009

List of BSD application Contacts for Help Desk Elle 4/12/2009 75

New system Development procedure Template Ernie 3/27/2009

Emergency Response Protocol Sohng 4/13/2009

Implement Time Management Suggestions (for ex: working from home, checking phone, email every 2 hours)

All Now

Implement Meeting Control Strategies All Now

Public Relations for BSD (Attain meeting when needed) William Ongoing

Definition of Maintenance Dave 3/11/2009 100

Current BSD developers time development/maintain Data Collection for 2 weeks/ six months

Anu 3/10/2009 100

Creating SharePoint for BSD Lean Kaizen team Elle 9/27/2009

Current/ future BSD work flow Visio Maps James 9/12/2009 25

Definition of Quality work Bruce 9/11/2009

Task assignments are immediate,

ownership is swift, and deliverable

date set.

Improvement Opportunities

Interruptions Staff Utilization

Surprise Meetings Recognize Operations Workload

Too Many Meetings Workload Management is Difficult

Distractions: Email & Phone Staff Used Inefficiently

Daily & Unscheduled BSD Doing Non-BSD Work

Communications Identify All Non-BSD Tasks

Internal Marketing Needed "Maintenance" Isn't Very Sexy

Visibility to Clients Balance Needed for Maint. & New Projects

Manage Client Expectations Scoping

IT/BSD Poor Coordination Identify Stakeholders and Responsibilities

Unclear Roles/Resp in Project DEQ Staff Don't Know How to Scope

Program "Champions" Needed BSD Staff Don't Know What to Scope

Team Players Needed Clients Do Not Define Business Rules

Guard Dog Data Analyses Often Incomplete

Requests Must Be Prioritized Clients Miss Items During Testing

Unable to Control New Work Flow Issues Underestimated

Requests Often Conflict Inappropriate Assumptions Made

Production Problem Intake Process Resources Required Over/Under Estimated

Need 'phase gate' approvals Project Size and Scope Varies Widely

Help Desk Project Types Need to Be Clearly Defined

BSD is the Go to for Computer Help Solutions Have Unintended Consequences

Developers Become Point of Contact Clients Driven to Seek Outside Help

DEQ Staff Unaware of IT vs. BSD

A Help Desk Needs Correct Skill Set

Need to Log & Track Requests

Lean Lessons Learned

• Process Improvements must have visible executive management support

• External DEQ team members bring fresh ideas

• Team dynamics and composition is essential

• Address concerns and issues positively

• Communication, communication, communication… the more, the better!

• The entire event must be transparent to all staff and managers

• The “Lean – Kaizen Ground Rules” are effective

• Empower your team to implement the needed

changes which validates their efforts and contributions to the health of DEQ

PowerPoint Presentation

Review of why we are here tonight?

Western Union… Before(6 minutes)

Western Union… After(2 minutes)

Do you have any additional

comments, suggestions,

insights, or questions?

What can we learn from you?

John L. ReelOregon Department of Environmental Quality

503.229.6066 Reel.John@deq.state.or.us