City of Salina-Public Works Webinar About Continous Process Improvement & Lean Six Sigma

This Webcast is sponsored by the League of Kansas

MunicipalitiesAugust 6, 2015

How the City of Salina, Kansas is applying CPI

(Lean Six Sigma) principles within the

Public Works Department

ModeratorsBryon JohnsonDirector of ProcessImprovementCity of Salina, Kansas

Jim TeutschOperations ManagerPublic Works DepartmentCity of Salina, Kansas

CONTINUOUSPROCESS IMPROVEMENT

FOR CITIES SALINA, KANSAS MODEL

Salina2015 YTD Results

2012 2013 2014 2015 YTD

0

50

100

150

200

250

24

88

223

88

# Improvements Per Year

Total = 423


Comparison of the total hours spent on CPI Activities to the total hours saved

2012 2013 2014 2015 -

5,000

10,000

15,000

20,000

25,000

Increased Capacity CPI Activities

This equals a cumulative ratio of 2.44 hours saved for every hour spent on CPI Activities


2012 2013 2014 2015 YTD

0

2000

4000

6000

8000

10000

12000

222

5,098

10,017

5,103

Increased CapacityTotal = 20,440 hours= the equivalent of

11.5 employees

Ongoing

Plus Cost Avoidance = $339,307


2012 2013 2014 2015 2016 2017 2018

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$8,456 $68,587

$314,329

$784,206

$373,346

$603,346

$783,346

Total net CPI Benefit 2012-2018

$2,935,616

6Sigm

a

CPI Basics

Key Strategies for CPI in

Cities

3-Engage everyone in eliminating waste 4-Engage

management in applying lean principles

5-Use small teams of

experts to work on

high impact

projects

1-Standardize efficient processes2-Identify workload

requirements

Lean

CONTINUOUSPROCESS IMPROVEMENT

FOR CITIES SALINA, KANSAS MODEL

Implementing CPI in Public

Works

Public Works

82 Improvements (thru June 2015)

1,079 Hours of Increased Capacity

$99,639 Ongoing Reduction in Costs

$747,819 One-Time Cost Reduction

$339,281 One-Time Cost Avoidance

Plus $640,000 more cost reductions between 2016-2018

Total Benefit = $1,826,739

Quick FixCriteria: < $1,200 in annual

savings < 104 hours of

increased capacity within supervisor’s authority does not conflict with current

policy

Methodology: Describe waste removed,

customer service improved or problem solved

Indicate equipment costs/other expenses, $ amount of savings (money), hours of increased capacity (time), other benefits

A3 Problem Solving

Criteria: Used for problem

solving >$1,200/yr. > 104 hrs Requires dept. head

approval

Methodology: Describe current situation Identify the root cause Select solutions Implement an action plan Follow-up to ensure success

Process Review Report

Criteria: Review a singleprocess, single position, or an entire unit (divisionor department)

Methodology: Define: creates objective Measure: collect/display data Analyze: discussion points Improve: ID all improvements Control: “Plan, Do, Check, Act”

Identifying Waste in Government

Waiting Mistakes Excess Movement or

Motion Do it Right the First Time Inefficient Processes Always Do the Right Thing Transporting Work Excess Inventory

Waiting

Occurs anytime these sit idle: people paperwork information supplies equipment

It is symptomatic that something isn’t right; delays or queue time built into the

process.

Waiting

HHW (Quick Fix): Added a caller ID system to the facility phone line Allows staff to retrieve telephone

numbers versus missing calls Staff can contact citizens who

leave messages without leaving a phone #

Results: Other benefit: Improved

communications and customer relations; reduced waiting time

Mistakes

Mistakes typically occur due to: human error ineffective methods defective materials defective equipment environmental conditions

These can occur any time, any where; create need for re-work or

additional inspections.

MistakesEN (Quick Fix): Clarified criteria that

help staff identify sidewalk code violations

Added guidelines to make sidewalk violations easier to spot such as presence of brick, missing sidewalk, vegetative growth and problems with driveway approaches

Results: Other benefit: Reduced staff errors;

improved appearance of community; reduced potential slips, trips and falls.

Excess Movement

Needless motion or movement to pick up: supplies/materials tools/equipment others

Typically Caused by: poor worksite design poor method or process

Elimination improves efficiency; reduces errors, delays and costs;

improves safety.

Excess Movement

CG (Quick Fix): Purchased mobile service carts for mechanics Reduces the # of trips to and from the

mechanics’ main tool box, parts room, metalwork area, fluid and filter storage locations, etc.

Results: Increased capacity: 89 hrs/yr.

Excess MovementLF (Process Review): 6S Project: Sort, Set in order, Shine, Safety, Standardize and Sustain Created specific

locations for tools, equipment and supplies

Results: Increased capacity: 88.4 hrs/yr. Other benefit: Reduced friction

among workers; reduced reaction time for pumps & hoses; improved customer experience; reduced time separating trash in roll-off container

Do it Right the 1st Time

Build quality into processes w/right: equipment people place time preparation

Error-proof each step to: remove potential mistakes provide service faster

ID best practices & standardize them for everyone’s use.


LF (A3 Report): Rebuilt 20-year old

old truck scale in lieu of replacement

Installed prefab deck and replaced structural & mechanical parts as needed

Results: $ Saved: $42,590 (cost avoidance) Other benefit: Reduced

inconvenience to landfill customers (less time to repair than replace)


TC (A3 Report): Repurposed an old

trailer as a recycling container for aluminum

Increased revenue into the general fund - aluminum is more valuable than mixed metals, which are sold as “scrap iron”

Results: $ Increased Revenue: $800

Inefficient Processes

Occur when entire process or step is: unnecessary lacking value shouldn’t be done able to be

done better

It is anything that results in: duplication of effort friction or chronic annoyance

Includes work a customer wouldn’t pay for if they knew

about it.


LF (Process Review): Right-size cells Survey internally Pre-excavate cells New leachate pond Gravity line vs.

force mains Electrical vs. pneumatic pumps Reduce sand for leachate

conveyance CAT-certified rebuild vs. new Open 1 hour later on Saturdays Balance workload of LF staff Reduce tire punctures Adjust tipping fees

Results: $ Saved: $1,077,114

Inefficient ProcessesStreets (A3 Report): Improved City Code

for turf, grass, vegetation and weed ordinance

Reduced total acreage of the right-of- way mowing contract and placed more equitable responsibilities on property owners to maintain the ROW.

Results: $ Saved: $70,500/3-yr. contract Other benefit: Improved community

standards, developed FAQ, sent individualized letters to about 800 affected citizens


Streets (Quick Fix): Avoided costs by

converting a 1999 dump truck with a chassis-mounted salt spreader into a flat-bed truck by using salvaged bridge planks enabling it to be used as a salt- spreader, water truck or a flat-bed utility truck.

Results: Other benefit: Extends its useful

life and expands its capabilities


Streets (A3 Report): Repaired & modified

a 2003 Sanitation packer truck into a leaf collection truck

Avoided the need to purchase a used truck or new leaf system

Results: $ Saved: $46,333.40 (cost

avoidance) Other benefit: Extends its

useful life and expands capacity over previous truck, packer unit can be reinstalled

Always Do the Right Thing

Always do/enforce what is correct: morally ethically legally safely

This includes always being: professional & courteous considerate & helpful

“The way you treat a customer, when you don’t owe them

anything, is the ultimate test of character.”


Streets (A3 Report): Built a post driver

that attaches to front of a wheel loader to set posts during special events

Employee no longer must hold pole while its being driven

Reduces the number of bent poles Enables faster installation Results: Increased capacity: 8 hrs/year Other benefit: Reduced employee

safety risks considerably


DPW (A3 Report): Created directional

traffic flow within Public Works grounds to improve line-of -sight when employees exit

Reduced the likelihood of accidents for employees and the public

Preserved 4 much-needed employee parking spaces

Results: Other benefit: Reduced likelihood

of employee/public accidents

Transporting of Work

No (little) value in transporting: materials products information services

Each time, there is risk of: loss or damage inadvertent change

In many service processes, paperwork loops back multiple

times & it waits in a queue.

Transporting of WorkDPW/EN (Quick Fix): Added scan

capability to office copier/printer

DPW: Eliminated need to drive to another building for scanning

EN: Scans/emails excavation permits in lieu of printing/distributing them

Results: $ Saved: $6/year Increased capacity: 4 hrs/year Other benefit: Increased

productivity

Transporting of WorkCG (Process Review): CG: Eliminated need

to print/distribute monthly reports for fuel/parts/labor reports to depts.

CG: Created electronic reports, developed dept. files, imports files & notifies depts. automatically

EN: scans/emails excavation permits in lieu of printing/distributing them

Results: $ Saved: $74.22/year Increased capacity: 49.2 hrs/year Other benefit: Faster response

Excess Inventory

Anytime materials, work, goods aren’t: immediately consumed worked on shipped to final customer

Typically results from: overproduction over-purchasing

Negotiate for just-in-time shipping vs. ordering bulk

quantities that require storage over time.

Excess Inventory

CG/Admin/EN: CG: Reduce quantities

of on-hand parts and implement a just-in -time inventory system

Admin/EN: Implement retention and electronic imaging policy (scan/save documents to Laserfiche) to improve records management

Results: To Be Determined

Other Projects: CG

Built Portable Welding Screens

Built Gas Bottle

Storage Cage

V&E Salvage Rebuild Program

FC, Streets, TCBuilt Flood

BarricadeTrailer

Built Mowing/

Landscape Trailer

Replaced Traffic

Loops/ICW

Pavement

StreetsBuilt StakePulling Device

6S Project for Streets Quonset

Hut

Concrete /Tire Fence Poles for

Pavement

Future Projects

10% 20%

40%

30%

Hike & Bike Trail Composition

Course Road Sand1/4" Stone ChipsCS-2 Existing MaterialAB-1 Aggregate Base

Standardize mix design & eliminate cost of hiring contractor for hike/bike trail by using City staff.

Future Projects

Hike & Bike Trail Composition

Reduce the amount of staff time spent collecting litter by 50 percent annually. Potential Increased Capacity: 750 - 875 hours

Questions

Bryon JohnsonDirector of Process

[email protected]

785-309-5790

Jim TeutschPublic Works

Operations [email protected]

785-309-5750

For More Information

City of Salina-Public Works Webinar About Continous Process Improvement & Lean Six Sigma

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Transcript of City of Salina-Public Works Webinar About Continous Process Improvement & Lean Six Sigma