LEAN THINKING & CONTINUOUS IMPROVEMENT

2

Water UK

Energy

Managers UK

Forumnergy

Managers

Forum

WORKING ACROSS INDUSTRIES – APPLYING BEST PRACTICE

3

“It’s about engaging with the hearts and minds of our teams in order to help them

turn vision and ideas into sustainable change”

“Simple can be harder than complex: You have to work hard to get your thinking

clean to make it simple. But it's worth it in the end because once you get there, you

can move mountains”

Its not just about engaging your teams its about engaging your teams and those who

they need to work with to achieve the objectives of Northumbrian Water

ENGAGEMENT AND ALIGNMENT

CONTINUOUS IMPROVEMENT

4

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

RECOGNISED INDUSTRY LEADING WAYS OF WORK

• Trade effluent

• Maintenance

• Scientific support

5

Fully Automated Information Sharing Process

Operational

Interventions

Prioritisation of

effort

Asset

Investment

CP0

Process Support

Water Quality

Maintenance

Site Walk Boards

SQCDP (Team Shift by shift review)

NWG

Score card

WTW Score Card

(monthly review)

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

ALIGNMENT & PERFORMANCE MANAGEMENT

Philosophy:

• Visible communication which is quick and simple

• Common goals, alignment of depts

• Standard approach used in many industries

• Changes behaviours

7

STRATEGY DEPLOYMENT

CREATING THE LINE OF SIGHT

C-M

ex

D-M

ex

Wat

er P

ove

rty

Ind

epen

den

t Tr

ust

Su

rvey

C-S

at o

f cu

sto

mer

s w

ho

nee

d a

dd

itio

nal

su

pp

ort

Aw

aren

ess

of

add

itio

nal

su

pp

ort

Vo

ids

Res

po

nse

tim

e to

vis

ible

leak

s

Inte

rup

tio

ns

> 3

ho

urs

Inte

rup

tio

ns

> 1

2 h

ou

rs

Rep

eat

Sew

er F

loo

din

g

Pro

per

ties

flo

od

ed in

tern

al

Pro

per

ties

flo

od

ed e

xter

nal

Sew

er B

lock

ages

Net

Pro

mo

ter

Sco

re

dis

colo

ure

d W

ater

Co

mp

lain

ts

Nb

urs

ts

CR

I

ERI

Tast

e an

d o

do

ur

com

pla

ints

Sun

day

Tim

es B

est

Co

mp

any

Surv

ey

Emp

loye

e En

gage

men

t In

dex

Ap

pra

isal

s co

mp

lete

Att

end

ance

leve

ls

Lost

tim

e ac

cid

ents

Lost

tim

e re

po

rtab

le a

ccid

ents

% m

ajo

r in

juri

es

Turn

ove

r

Dir

ect

Op

erat

ing

Co

sts

Tota

l net

cap

ex

Inco

me

colle

ctio

n p

erfo

rman

ce

Leak

age

No

rth

Leak

age

Sou

th

Dis

char

ge P

erm

it c

om

plia

nce

Cat

ego

ry 1

& 2

po

lluti

on

eve

nts

Cat

ego

ry 3

po

lluti

on

eve

nts

Sew

er c

olla

pse

s

Bat

hin

g W

ater

s m

eeti

ng

suff

icie

nt

std

Gre

enh

ou

se g

as e

mis

sio

ns

Just

an

ho

ur

Stak

eho

lder

tru

st

WS1 SPOT ITS

WS2 IMS

WS3 WS FLEET

WS4 6O SEC

WS5 SOP

WS6 BEHAVIOUR

WS7 DPHO

WS8 REGULATORY Failures

WS9 INTERNAL Failures

WS10 Outstanding AUDIT action

WS11 LOSSES ML

WS12 LOSSES

WS13 COAGULANT

WS14 SLUDGE

WS15 ENERGY

WS16 RED ZONE

WS17 £/ML (P + C)

WS18 PS no Unit Cost Models verified

WS19 PS Costs saved on Procurement requests

WS20 PS Procurement Compliance

WS21 AVAILABILITY (Critical Asset)

WS22 CLEANING Process Units/structures

WS23 INSPECTION PIT

WS24 INSPECTION PAT

WS25 INSPECTION PVLE

WS26 OPERATOR ASSET CARE

WS27 MAINTENANCE Urgent Jobs late

WS28 Unplanned Outages

WS29 PRODUCTION PLAN

WS30 PS No of maintenance service contracts delivered

WS31 PS No of RCA sessions attended

WS32 PS No of Site Scorecards attended

WS33 People DEVELOPMENT

WS34 TRAINING

WS35 PS No of Competency Assesments done

WS36 5S

WS37 JAH

8

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

COMMON GOALS AND FOCUS

Rigour and empowerment

• Every day, every month

• Involvement of team

• Continuous Idea Generation

• Open / Honest conversations of how to improve

Focus to deliver value

• Standardisation

• DPHO for leading and lagging

• Rigour on internal audits

• Project delivery

Asset

Planner

WQ

Scientist

M’tce team

leader

Capital Insourcing

team leader

Water Supply

SupervisorInvestment

Project

manager

Water

Supply

Regional

Manager

Water Supply

Area

Manager

9

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

VISUAL & PERFORMANCE MANAGEMENT

Rigour and empowerment

• Every day, every month

• Involvement of team

• Continuous Idea Generation

• Open / Honest conversations of how to improve

Focus to deliver

• Standardisation

• DPHO

• Internal & audit actions

• Project delivery

NOT• A bunch of lagging indicators which you have minimal influence over

INSTEAD

• A set of leading indicators when achieved will ensure lagging indicators will also

be good

e.g. Not “no of discoloured water complaints”

Instead “DPHO pH of final water leaving WTWs”

SELECTING YOUR PERFORMANCE INDICATORS

KPI’S

NOT• A meaningless measure which secretly you know you will achieve and which

you think will make you look good

INSTEAD

• A meaningful measure within which there is capacity to improve

e.g. Not “no of corrective reports issued within 10 days”

Instead “no of corrective reports issued”

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

KPI’S

NOT• An admin task of collecting easy to get numbers at the end of each month

because you have been told to do it. (Management)

INSTEAD

• A meaningful measure of how you are contributing to the success of the

business which motivates your team and helps them to focus (Leadership)

e.g. Not “no of late “clock ins”

Instead “no of samples not analysed in time”

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

KPI’S

NOT• A document held somewhere in sharepoint

INSTEAD

• The basis of an ongoing conversation between people

“The management are sorry to inform its customers that there is no access to WiFi

in this establishment we suggest you imagine it is 1976 and actually talk to each

other”

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

KPI’S

NOT• A set of measures which we get stressed about and then use to beat people up

with

INSTEAD

• An integral part of the continuous improvement process where we spot

something early and coach and support to overcome challenges

(this is when Leaders need to be able to demonstrate their contribution)

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

KPI’S

CLEARLY DEFINED MANAGEMENT

REVIEW PROCESS

Investment Prioritisation

• MIPS triggers

• DWI notification

• EA notification

• Reg failure / comp

• Internal failures

• Env. Audits

• DWI. audits

• Root cause analysis

actions

• Treated water charter

audits

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

IMPROVED TARGETING OF INVESTMENT AND PROJECT DELIVERY

Multiple idea

Generation !!

Closing gap to

objective

Understand and agree

the solution

Standard in place?

What is the root cause?

Cost & Value to delivery

route understood

ShortTerm

Medium term

Deliver with asset

owner involvement

(multiple projects based

on standards and

innovation)

“I have seen a marked

improvement at the speed of

delivery of investment in the

last 12 months – Joe Miller”

18

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

DEFECTS PER HUNDRED OPPORTUNITIES (DPHO)

• DPHO clear and defined for sites

• Top 3 highlighted and broken down

on monthly basis

• Root cause of problems

• 16 months = 32% reduction in risk

19

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

PREDICTIVE AUDIT PROCESS

• Rigor of audit frequency and action

completion

• Structured timetable and

methodology for internal audits

• Twice as many actions

completed/mth 2018 v 2017

3 5 2 2 2 1 7 7 4 4 3 7 2 4 1 2 5 8 3 10 4

26

31

13

38

29

14

9

18

23

36

7

33 33

136

66

32

12

51

21

46

30

80

22

150

68

41

0

20

40

60

80

100

120

140

160

01

/08

/20

14

01

/09

/20

14

01

/10

/20

14

01

/11

/20

14

01

/12

/20

14

01

/01

/20

15

01

/02

/20

15

01

/03

/20

15

01

/04

/20

15

01

/05

/20

15

01

/06

/20

15

01

/07

/20

15

01

/08

/20

15

01

/09

/20

15

01

/10

/20

15

01

/11

/20

15

01

/12

/20

15

01

/01

/20

16

01

/02

/20

16

01

/03

/20

16

01

/04

/20

16

01

/05

/20

16

01

/06

/20

16

01

/07

/20

16

01

/08

/20

16

01

/09

/20

16

01

/10

/20

16

01

/11

/20

16

01

/12

/20

16

01

/01

/20

17

01

/02

/20

17

01

/03

/20

17

01

/04

/20

17

01

/05

/20

17

01

/06

/20

17

01

/07

/20

17

01

/08

/20

17

01

/09

/20

17

01

/10

/20

17

01

/11

/20

17

01

/12

/20

17

01

/01

/20

18

01

/02

/20

18

01

/03

/20

18

01

/04

/20

18

01

/05

/20

18

01

/06

/20

18

01

/07

/20

18

01

/08

/20

18

No of internal and external WQ Issues completed per month

20

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

STANDARDISATION

• Behavioural, task based standards

and reviews

• Common goal standardisation

throughout group

• 100s + example of procurement

standards

• Equipment standardisation

• Agreed Operator Asset Care

Program

• Standardisation and simplification is deployed within water supply.

• We are now more results focused both behaviourally and physical.

• Team working has improving but there is more to be done

• Leadership challenge is rigour, accountability and delivery

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

THE WATER SUPPLY JOURNEY

SUMMARY

• IDENTIFICATION – of best x industry practice

• INFORMATION – right people right time - automated

• INVOLVEMENT – conversations and line of sight

• IMPLEMENTATION – rigour/prioritisation/structure

ken.black@nwl.co.uk

DEVELOPING A CONTINUOUS IMPROVEMENT CULTURE

THE CHALLENGE