The Path to the Lean City - Methods and Best Practices

LEAN MANAGEMENT INSTITUT

Dr. Jorgo Chatzimarkakis

and

Dr. Bodo Wiegand

THE WAY TO LEAN CITYMETHODS AND EXAMPLES


Starting Position

Lean Thinking

Lean Management methods in the public sector

- Lean Administration

- Lean Maintenance and Service

- Lean Management

Lean City Club

Examples from German local government

Agenda


Income and Expenditures Continue to Diverge

New York City is closing its zoos, turning off the street lights on bridges, closing pediatric clinics and public schools; 4,500 public sector jobs are being cut – allbecause the city budget cannot be financed on credit.

Costs for the Swiss public healthcare system are rising attwice the rate of GDP.

Budget balance for local government in Germany

Healthcare system costs in Switzerland

The financial balance sheet for Germanlocal government continues to deteriorate

The advertising revenues at ARD (Germanpublic television) fell to 300.4 million marksin 1996 compared to 576.7 million marks in 1992Source: ARD-Werbung Sales & Services


Cities: A Case for Revitalization (1)

Freezing expenditures for investment, touch-uprepairs, and limiting activities to the bare necessities

Reorganizing all processes and reducing expenses

Releasing employees to help reduce outsourcingand improve service

Starting marketing programs to increase attractiveness and to boost income

Short-term measures


Cities: A Case for Revitalization (2)

Examining legal rules at the federal state (German: Land) and regional level with an inverted burden of proof.

Why do we need that particular law, rule, or regulation?

Testing the efficiency of all tax-relevant laws in terms of ROI.

What does it cost; what are the benefits?

Determining how useful laws, rules, and regulations are in terms of enforcement; analyzing the costs of enforcement in terms of cost and benefit.

Do we really need the law if we can’t verify it?

Radically simplifying complicated laws and regulations at the national level.

Medium- and long-term measures


The Four Competitive Factors of Business on Demand also Apply to Cities.

A = Availability of service

Q = Quality of process

I = Individuality towards the customer

C = Cost savings in all areas

Business on

Demand

Only Lean Business offers simultaneous optimization of all four competitive factors.

LEAN MANAGEMENT INSTITUTLean M

anagement

LEAN Thinking

Lean Maintenance

and Service

Lean Administration

Lean Innovation

Lean Supply ChainCreate value without waste

Lean Production System

LEAN THINKING – THE LEAN BUSINESS SYSTEM


Starting Position

Lean Thinking




- Lean Management

Lean City Club


Agenda


anagement

LEAN Thinking

Lean Maintenance

and Service

Lean Administration

Lean Innovation





The Five Principles of Lean Thinking

Applying the five principles step by step comprehensively and permanently eliminates waste.The central vision is of a value flow with no waste beyond the boundaries of each individual company.These principles apply the same way to industry, services, and administration as they do to development, production (performance), and order processing (sales).

Define the value of a product or service from the customer’s point of view

Identify the value flow

Create a continuous flow

Switch to a demand-driven system: “Pull instead of Push”

Strive for perfection

1

23

4

5


Defining the Value of a Product or Service from the Customer’s Perspective

Longer office opening hours24-hour operation of light rail public transportationOne call, one visit one decision, one result

Availability of service: this means that services have to be performedin the least amount of time possibleand then provided to the customer.

Value specification from the customer’s perspective

Qualitatively perfect service

Individual service: everyone receives the services they need

Costs have to be reasonable

No incorrect treatments for patientsNo erroneous documentsNo late buses or trains

Provision of infrastructure tailored to the specific industry when new firms openSimplified approval processes for smaller construction projects

Citizens and residents should be able to understand fees and surchargesPrices must be comparable to those in the private sector

Examples


The Philosophy of Lean Thinking: Eliminate all Waste (muda)

Optimize!

Value-creating activities

Any activity that takes materials or information and converts or transforms them in a way that meets customers’ needs and that the customer is also willing to pay for.

Reduce!

Non-value-creating

Any activity that is needed due to thesystems or processes in use today but that does not contribute any value tothe product or service or to customer satisfaction.

Eliminate immediately!

Waste

Activities, processes, time, materials, space, etc.,that do not increase the value of the product or service and that are not needed for the system or process.

MudaType I

MudaType II

Valuecreating


Taiichi Ohno’s Seven Types of Waste are also Found in Public Services

Overproduction1

Inventory2

Unnecessary transport3

Waiting/storage time4

Improper techniques/work processes5

Unnecessary moves6

Repair and material waste7

Examples

Documents and reports with no audienceProjects left filed away in drawers

Unnecessary patient stays in clinicsConstruction material stored for use years in advance

Ambulance transports between clinics or wardsProcedures sent back and forth between departments

Procedures waiting for a clerk with available capacityPatients in the waiting room

Expensive and oversized IT systemsComplicated approval processes for such simpleconstruction as errecting an arborEmployees working in public bodies who have to walkgreat distances to get to the only copierBusiness trips with a poorly defined purpose

Wrongful approvals

Improper treatment of patients


Creating a Continuous Flow

Flow means providing a complete service from beginning to end and without delay

Customers, residents, and patients experience no waiting times

The completion time for each action corresponds to the required process time

There are no stocks (stacks of waiting files)

Examples of flow in the public sector

A Residents’ Agency rather than various public offices

Polyclinics instead of various independent medical specialists that patients have to consult one after another

A Residents’ Agency rather than various public offices

Infrastructure repaired by interdisciplinary teams rather than specialist teams


Switching to a Demand-InducedSystem (Pull instead of Push)

Implementing this principle in practice in the public sector can mean:

Stelle dem Bürger die Wasser-, Strom-, Gasmengen zur Verfügung, die er benötigt.

Stelle dem Bürger die Leistung zur Verfügung, die er nachfragt.

Schaffe eine Infrastruktur, die den Bedürfnissen des Bürgers entspricht.

Mache Gesetzte, die er versteht und die er nachvollziehen kann.


Striving for Perfection

Perfection is an ideal state that is never attained

Public administration cannot rest on their past achievements

Repeat the principles:1. Define value from the customer’s

perspective2. Identify the value flow3. Create a continuous flow4. Pull system

Top-down and bottom-up implementation


Starting Position

Lean Thinking




- Lean Management


Lean City Club

Agenda


Lean Management methods in public sector

Lean

Adm

inis

tratio

nLe

an C

onst

ruct

ion

Lean

Mai

nten

ance

& Se

rvic

e

Residents’ services

Building authorities

Public construction

Administrative bodies

Municipal utilities

Facility management

Lean

Man

agem

ent

Applications


anagement

LEAN Thinking

Lean Maintenance

and Service

Lean Administration

Lean Innovation





Starting Position

Lean Thinking




- Lean Management


Lean City Club

Agenda


Analysis Modularization Integration Implementation

Establishing a businessmodelOrganization analysisValue flow analysisOrder structure analysisProcess analysisActivity structure analysisCost structure analysisStarting to implementimmediate measures

Module definitionModule optimizationStandardizationDescribing andstandardizing interfaces

Defining the product creation processAssigning andintegrating the modules into the processes

Capacity adjustmentImplementing the processesOrganization adjustmentIntroducing process cost managementIntroducing CIP

Serviceauftragabschließen

Fakturafreigeben

kaufmännischabschließen

Projekt externabschließen

Fakturaanforderungaus Service/Projekt

ist vorhanden

FakturarelevanteBelege aus

Fakturavorratauswählen

Sammelfakturaist zu erstellen

Einzelfaktura istzu erstellen

Zu fakturierendePosten

zusammen-stellen

Fakturaanforde-rung ist inOrdnung

Einzelfaktura istnachzuarbeiten

Fakturapositionenund -konditionen

nacharbeiten

Fakturasperrelöschen

Fakturabuchen

Faturadrucken

Faktura mitAnlage

versenden

Faktura istKunden

zugestellt

Einzelkontraktanlegen

Faktura zuEinzelauftrag

erzeugt

Faktura gem.Fakturaplan

erzeugt

Lean Administration – The Method


Analyzing the Value Flow of the Main and Partial ProcessesValue stream mapping

Auf

trags

-m

anag

emen

t

40 % Auftrags-annahme

18 4

RQ: 33 % / 5 min

PZ = 2 min

5002,5 d

Dis

posi

tion


8 4

RQ: 10 % /10 min

PZ = 3 min

Ø

Hau

smei

ster


30 4

RQ: 5 % / 10 min

PZ = 10 min

1000,5 d

Ser

vice

team

Lief

eran

ten

ÜZ

RZ

Auftragbearbeiten

18 5

PZ = 6 min

1000,5 d

10 %

5 min

60 %

15 m

in

Auftragdisponieren

20 8

RQ: 10 %/10 min

PZ = 12 min

9505 d

Servicedurchführen

80 13

VZ = 105 min

PZ = 10 min

9505 d

RQ: 10 %/20 min

Auftragabschließen

20 4

PZ = 8 min

195010 d

RQ: 40 %/10 min

14 4

PZ = 15 min

250013 d

RQ: 20 %/10 min

X-Produkt

Kunde

PZ

13.572Aufträge pro Jahr

Verfügbar: 5/12 25 %15 minAuftrags-zentrum

StandardisiertesAuftragsformular

1,1Tage

StandardisierteAuftragsbezeichnung

EDI@home

2,5Tage

Rückmelde-standards

2,5Tage

JIT-Vorbestellunggewerbespez.

Materialmodule 4 Ta

ge15

%55

min

Selbst-kontrolle

3,6min

4,4min

0,5Tage

7,2min

6min

5Tage

3min

12min

5,8Tage

6min

18min

12,5Tage

6min

8min

13Tage

2min

15min

37,9 Tage Übergangs-/Liegezeit

27,8 Minuten Rückfragezeit (30 %)

63,4 Minuten Prozesszeit (70 %)

ca. 38 Tage Durchlaufzeit

Fakturierung


ABC analysis XYZ analysis

Value proportion

Quantity proportion

A: 70%

B: 20%

C: 10%

A: 70%

B: 20%

C: 10%

Demand

Z products

Y products

X products

Time

The ABC analysis helps identify the orders with the largest potential for modularization.

The XYZ analysis identifies the standardization potential.

Order and Activity Structure Analysis


Geschäftsvorfall Instandsetzung (Fremdleistung) aus Wartung (Eigenleistung) - GMG

Lief

eran

tO

bjek

t-m

anag

emen

gtS

ervi

ce (T

P1)

Ein

kauf

+ L

ogis

tik(T

P4)

AKM

(TP

2)

Serviceleistungerbringen und inRechnung stellen

Zahlungseingangverfolgen

S

E

Auftrag anlegenund Fremdleistung

aus RV abrufen

Leistungfakturieren

M 2.1 M 2.2

M 1.1 M 1.2

M 4.1

M 5.1

Qualitätmonitoren

M O.1

Phase I (Bedarfsidentifizierung und Beauftragung) Phase II (Leistungserbringung) Phase III (Zahlungsabwicklung)

S 1.1

S 1.2

S 1.4

S O.1

S 1.3

Instandsetzungs-bedarf bei IspW

identifizieren

Neuen RVabschließen S 4.1

S 2.1

S 5.2Serviceleistungzurückmelden

S 5.1

S 1.5

M 1.3

KEINE Hausmeister-Aufträge

Keine HM-Aufträge

Haus-meister-Aufträge


Keine HM-Aufträge

CS-Aufträge < 250 €(ohne eindeutige HM-Produkte, ohne evtl. HM-Produkte, ohne Wartungen)

48.592 3.904 T€

Evtl. Hausmeister-Produkte

38.843 13.690 T€

116.066 44.194 T€

Hausmeister-Aufträge

Eindeutige Haus-

meister-Produkte

Wartungen< 50 €

Wartungen≥ 50 €

Wartungen

CS-Aufträge≥ 250 €

(ohne eindeutige HM-Produkte, ohne evtl. HM-Produkte, ohne

Wartungen)

optionale Leistungen (Service)

Alle CS-Aufträge 2002Anzahl: 180.799 Kosten: 52.511 T€

Anzahl: 67.290 Kosten: 9.840 T€Anzahl: 113.509 Kosten: 42.671 T€

41.8169.274 T€28.230 4.301 T€

22.0203.320 T€

6.000940 T€

26.154 1.636 T€13.912997 T€

8.914558 T€

10.349 2.380 T€

5.3151.060 T€

4.9401.292 T€

Gesamt: 64.733 8.317 T€Nutzer/Dritte: 19.854 2.790 T€GMG: 41.247 5.377 T€

25.474566 T€

15.72522.697 T€

22.4382.268 T€

10.6139.389 T€

KEINE Hausmeister-Aufträge

Keine HM-Aufträge



Keine HM-Aufträge


48.592 3.904 T€


48.592 3.904 T€


38.843 13.690 T€


38.843 13.690 T€

116.066 44.194 T€

Hausmeister-Aufträge

Eindeutige Haus-

meister-Produkte

Wartungen< 50 €

Wartungen≥ 50 €

Wartungen

CS-Aufträge≥ 250 €

(ohne eindeutige HM-Produkte, ohne evtl. HM-Produkte, ohne

Wartungen)

optionale Leistungen (Service)

Alle CS-Aufträge 2002Anzahl: 180.799 Kosten: 52.511 T€

Anzahl: 67.290 Kosten: 9.840 T€Anzahl: 113.509 Kosten: 42.671 T€

41.8169.274 T€28.230 4.301 T€

22.0203.320 T€

6.000940 T€

28.230 4.301 T€22.020

3.320 T€6.000

940 T€

26.154 1.636 T€13.912997 T€

8.914558 T€

26.154 1.636 T€13.912997 T€

8.914558 T€

10.349 2.380 T€

5.3151.060 T€

4.9401.292 T€

10.349 2.380 T€

5.3151.060 T€

4.9401.292 T€

10.349 2.380 T€

5.3151.060 T€

4.9401.292 T€

Gesamt: 64.733 8.317 T€Nutzer/Dritte: 19.854 2.790 T€GMG: 41.247 5.377 T€

25.474566 T€

15.72522.697 T€

22.4382.268 T€

10.6139.389 T€

Activity Structure AnalysisValue Flow Analysis Order Structure Analysis

Timeframe for activitiesTimeframe for secondary andcore processes

Quantitativeframework

Duration and frequencyFunctions and offices involved Jobs and orders

Result

+ +

Nr.Aufgabenbereich /

Aufgaben

Anzahl Vorgänge

[pro Monat]

Zeitaufwand pro Vorgang

[Min.]

Zeitaufwand[Stunden pro

Monat]Wieder-holung Min. Max.

1 Ersatzempfänger erfassen 100 5 8,3 Täglich 2 62 Taxen setzen/Ändern 40 15 10,0 Täglich 1 33 Bemerkungen erfassen 50 10 8,3 Wöchentlich 0 04 Risikomerkmale erfassen 20 25 8,3 Wöchentlich 1 15 Sonstige Daten erfassen 30 15 7,5 Täglich 0 06 CTV-Brief veranlassen 5 10 0,8 Wöchentlich 2 87 Internes Telefonat führen 200 3 10,0 Täglich 2 158 Externes Telefonat führen 200 10 33,3 Täglich 2 69 Teambesprechungen 4 60 4,0 Wöchentlich 0 0

10Bearbeiten Mails (lesen, bearbeiten, sortieren, speichern, löschen etc.)

100 3 5,0 Täglich 0 0

11 Lehrgänge/Seminare 1 1.000 16,7 Jedes Halbjahr 0 0

Result Result

Cause-justified process cost allocation

Process Cost Analysis




Fakturafreigeben




ist vorhanden






zusammen-stellen




nacharbeiten


Fakturabuchen

Faturadrucken

Faktura mitAnlage

versenden

Faktura istKunden

zugestellt



erzeugt


erzeugt







What are process modules?

Process modules are standardizedsubprocessesThey include several related activitiesThey can be used in several product creation processesProcess modules include

1. Job instructions/assistance2. Process times3. Manpower needed4. Qualification requirements5. Aids (equipment, material,

documentation)

What do process modules provide?

Transparency

Measurability

Quality improvement

Comprehensibility

Process-internal flexibility

Structured approach

Clearly defined input and output

Clear allocation of responsibilities

Description of the resources used

Unambiguous definition of interfaces

Customized product creation processes can be represented by standardized modules

Structuring - Modularization


Module Matrix

Numeric identification

Brief description

Description of task sequence

Required resources

Staff required /manpower planning

Standard operation

times for taskexecution

Rules and directives

Modulnummer Modul Modulinhalt Maschinen, Geräte, zusätzliches Personal

Mitgeltende Unterlagen

Modulzeit/Einheit in Fh/Einheit

(Format hh:mm:ss)

Anzahl Mitarbeiter bzw. Maschinen,

MINDEST Qualifikation

Fb In 1.1. Prüfungen der Gleisgeometrie

Fb In 1.1.1. Prüfung mit Gleismeßfahrzeug OMWE

keine Modulsarsierung DS 820 01 15 Ril 821. 2001

1. Bezl Fb

Fb In 1.1.2. Prüfung mit Gleismeßfahrzeug OMW


1. Bezl Fb

Fb In1.1.3. Prüfung mit Gleismeßfahrzeug GMTZ


1. Bezl Fb

Fb In 1.1.4. Handmessung

Fb In 1.1.4.1. Längshöhe in Gleisen und Weichen mit Gleisvermarkung

Messen der Längshöhe in Bezug auf Gleisvermarkungspunkte mit optichem Visiergerät einschließlich Anschreibung der Bezugspunkte und deren Dokumentation vor Ort

Gleisüberhöhungsmesser, Nivelliergerät, Visiergerät, CEMAFER- bzw. BRIESEMEISTER-Messlatte oder Geodimeter, Bandmaß, (Sakra/Sipo entsprechend der örtlichen Rahmenbedingungen

DS 820 01/ 03 Ril 820 / 821/ 824

00:00:10 Fh/m/Gleis 2 MA (1 M Fb, 1 Bua)

Fb In 1.1.4.2.Längshöhe in Gleisen und Weichen ohne Gleisvermarkung

Messen der Längshöhe mit optischem Visiergerät durch Festlegung von Hochpunkten einschließlich Anschreibung der Bezugspunkte und deren Dokumentation vor Ort

Gleisüberhöhungsmesser, Visiergerät, Bandmaß, (Sakra/Sipo entsprechend der örtlichen Rahmenbedingungen )

DS 820 01/ 03 Ril 820 / 821/ 824 00:00:08 Fh/m/Gleis 2 MA (1 M Fb, 1 Bua)

keine Modularisierung




Specified by process modules

Exchange data between modules

Define data quality, volume, and transfer format

Lay down clear agreements between customer and supplier concerning data quality

Describe the internal and external customer-supplier designations

Define complaint and escalation levels

Consistent implementation solves data quality problems

Processservicerequest

PlanCS order

Interface

CSorder

Process Interfaces Basis for exchanging data and information effectively




Fakturafreigeben




ist vorhanden






zusammen-stellen




nacharbeiten


Fakturabuchen

Faturadrucken

Faktura mitAnlage

versenden

Faktura istKunden

zugestellt



erzeugt


erzeugt







Product Creation Process

Interlinking the functional areas – integrating process modules

Product creation processes

A B

C D

PRODUCTION

E F

G I

CONTROLLING

H

J L

M N

FINANCE

K

Process modules

e.g. providing services

B

E F

D

O

OC

MB

MO

M

A

Prepare incidental leasing cost sheet

B

D

N

OC

MB

MK

FM A

Cus

tom

erC

usto

mer

Cus

tom

erC

usto

mer


TABG

Invoicerequest

Report backservice

Convertservice toaccount

Removeinvoice block

FASL

KFA

Billingcycle

Print anddispatchinvoice

FGEB

Commercialcompletion

Fulfilservice order

Releaseinvoice

Commercialcompletion

Completeproject externally

Invoice requestfrom service/project

is present

Select invoice-relevant documents

from invoicestore

Collective invoicemust be created

Individual invoicemust be created

Assembleitems to be

invoiced

Invoicerequest isin order

Individual invoicemust be reworked

Rework invoiceitems and

terms

Removeinvoice block

Bookinvoice

Printinvoice

Dispatchinvoice withenclosure

Invoiceis deliveredto customer

Create individualcontract

Invoicegenerated for

individual order

Invoicegenerated as per

invoicing plan

Process module before

Throughput time approx. 10 days

Interfaces withinmodule = 3

Offices involved = 3

Individual activities = 8

Throughput time approx. 3 days

Interfaces within module = 0

Offices involved = 1

Individual activities = 5

High complexity Low complexity

Structuring - ModularizationProcess module after

EXAMPLE




Fakturafreigeben




ist vorhanden






zusammen-stellen




nacharbeiten


Fakturabuchen

Faturadrucken

Faktura mitAnlage

versenden

Faktura istKunden

zugestellt



erzeugt


erzeugt







Time taken Module 2 = ... h

Calculating Capacity on a Modular Basis Example

Activity Structure AnalysisCore activityFile a report 5 minOpen a CS order 7 minFactor performance 5 min

Process module

Process time = module time = 17 min

Process 15 min

Process 27 min

Process 35 min

+

+

637.5 hTime taken per module andmonth

75%Probability of the module in business occurrence

3,000Business occurrences permonth

17 minModule time 1Quantitative framework

Object structure

Order structure

=

Time taken Module 1 = 637.5 h

Time takenModule n = ... h

Total time taken for core activities

per function


The secondary activities in particular hold high optimization potential because they are mainly attributable to deficiencies at the process interfaces

Project Potentials

Avoiding waste

Main activities Secondary activities

Organizational activities

Potential

Currentstatus

Targetstatus

Capacity requirement

Reduction to a necessary amountOptimizing

Individual procedures


Industrializing Business Processes with Lean Administration

Increases transparency and quality,

Enables clear and measurable processes,

Describes areas of responsibility and resource use,

Clearly defines input, output, and interfaces,

Enables individual and customer-specific solutions based on standardized process modules,

Enables clear capacity planning and process cost accounting,

Reduces organizational and IT costs.


Starting Position

Lean Thinking




- Lean Management


Lean City Club

Agenda


Lean Maintenance and Service

Disposition of maintenance

and services

Complete services

Modularization,

standardization

Lean

Adm

inistr

ation

Module

-supp

orted

plann

ing

Techn

ical e

quipm

ent

manag

emen

t

Logistics of materials

and spare parts

Module

-supp

orted

purch

asing

Implementation

of work organization

Manag

emen

t of

exter

nal s

ervice

s

Increasing Efficiency of Maintenance Processes


Lean Maintenance and Service

MODULARIZATION AND INTEGRATION

Process analysisModularization and standardizationProcess optimization- Creating integrated

teams- Defining complete

services- Harmonizing schedules- Consolidating space- Harmonizing capacity- Increasing productivity

1 3PURCHASING

MANAGEMENT AND PLANNING

Purchasing management - Module-supported

purchasing- Optimized warehouse

planning- Optimized outsourced

servicesMake-or-buy decisionsPlanning/dispatchSupport base concept

TECHNICAL PLANT/EQUIPMENT

MANAGEMENT

2 4

IMPLEMENTATION

Project managementProject controllingAdjusting capacityAdjusting the support organizationProcess cost accountingIntroducing CIP

Plant/equipment managementSeparating loss classes for plant/equipment modulesMaintenance strategyComplexity managementCost analysis


Number of employees: 16,000

Establishments: 7

Local offices: 35

167 maintenance areas

Project DB Netz AG

Reducing maintenance costs

Locking in the maintenance-quality at a high level

Reducing purchasing costs

Higher level of transparency for planning maintenance processes

Increasing the availability of tracks

Objectives

Enhancement of order processes

Standardized and lean purchasing processes (-20 % costs)

Higher planning reliability

Optimized technical equipment

Productivity improvement +30%

Reduction of costs 225 million €/year

ResultsApproach

Modularization

Module-supported purchasing

Central order management

SAP R/3

Technical equipment management


Starting Position

Lean Thinking




- Lean Management


Lean City Club

Agenda


anagement

LEAN Thinking

Lean Maintenance

and Service

Lean Administration

Lean Innovation





Waste in Indirect Areas

Waste caused by- the flood of papers and documents- looking for files, etc.- unneeded trips around the office (for

copying, faxing, printing, etc.)- unnecessary copying and filing- lengthy training periods due to

increasingly complex systems- lengthy approval processes- inefficient meeting scheduling- inefficient telephone conversations- disturbances at the workplace- poor design of computer workplaces

The waste category criteria also apply to indirect work areas


Continuous Improvement Process (1)

CIP is a business philosphy:

Improving the competitiveness of the firm by increasing

quality and efficiency, with all employees constantly helping

to provide solutions to problems

in small steps.

time

Pro

duct

ivity

Sta

ndar

d

5. Evaluate

1. Identify

Problem-lösungs-prozess

4. Implement 2.

Analyze3.

Plan


Source: Agnus Consult, 1996

Continuous Improvement Process (2)Improving business performance with CIP

80%

11%

27%

94%

94%

98%

21%

3%

36%

0% 25% 50% 75% 100%

CIP reduces throughput times

CIP reduces inventories

cost reductions of over 20%

cost reductions of up to 20%




CIP lowers costs

Profits from CIP exceed costs

Example

Studies at 113 firms showed that


Starting Position

Lean Thinking




- Lean Management

Lean City Club


Agenda


Optimizing processes on the basis of tried and tested Lean Management methods

Creating transparency in internal processes and showing their strengths and weaknesses

Creating cost transparency and a clear view of costs and benefits

Providing concrete and practice-based ideas for improving efficiency

Conveying the Lean Thinking frame of mind and point of view

Supporting active implementation

Providing the foundation for fundamental customer orientation for internal administrative, service, and maintenance organizations

Lean City Club

Objectives


Lean City Club

The objective of the Lean City Club is to continue pursuing the reform efforts that have already been realized in many local governments and government bodies.

In keeping with the industrial model, the rationalization potentials found in public administration need to be utilized, allowing cities and municipalities to be refounded as enterprises for the purpose of

- city revitalization,

- debt reduction,

- improved orientation to residents,

- achieving a more promising starting position in the race to attract private enterprise and residents

- regaining a forward-looking orientation in cities and municipalities.

Benefits


Reorganizing communal work processes with the aidof the tried and tested tools of Lean Business Systems

Fees for the cities = €1 per resident

Conducting an EU-funded project* in cooperation with the Lean Management Institutes in the Netherlandsand England

Management of the project is led by the Lean Management Institut Deutschland.

Procedure

Lean City Club

* Forthcoming


Lean

Adm

inis

tratio

nLe

an C

onst

ruct

ion

Lean

Mai

nten

ance

& Se

rvic

e



Public construction

Administrative bodies

Municipal utilities

Facility management

Reorganizing on the Basis of Lean Business Tools

Lean

Man

agem

ent


Creating Thematic Teams



Public construction

Public transport

Municipal utilities

Facility management

Seel

zeDü

ssel

dorf

Neue

nkirc

hen

Hom

burg

City

5

.....

..... City

20

Short- and medium-term measures

Long-term efforts atchanging the law


Lean City Club

Short-term immediate measures to optimize processes

Process costs for the processes studied

Modules and interfaces that can be assembled – like Lego bricks – to form the necessaryadministrative, service, and maintenance products individually into complete services

Optimization recommendations for legislative solutions

Results of the Workgroups


NOTE:Some pages which were shown at the Lean Service Summit 2004 are notpublished in this documentation.These documents included dates from customers and were not released.Please do not hesitate to contact us for questions and further information.

LEAN MANAGEMENT INSTITUTContact person: Heiko von DamnitzSteinbachstraße 25D - 52074 AachenTel: +49(0)241-89 49 99 93Fax: +49(0)241-89 49 99 94E-Mail: [email protected]

THE WAY TO LEAN CITY

The Path to the Lean City - Methods and Best Practices

Education

Transcript of The Path to the Lean City - Methods and Best Practices