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Lean Thinking A business success story
Kathy Alexander
CEO
1. Why Lean Thinking at CoM?
2. What is it?
3. How did we start?
4. Our lean journey and how we introduced
lean into the city.
5. The impacts and what we’ve learned.
Today
• 2007 External consultant review found $7m
savings in 3 months.
• How clever is that???
Why Lean Thinking at CoM?
Lean thinking seemed a better way
Some observations about councils
recruitment, travel, construction
zone permits, childcare, stakeholder
management, executive
correspondence, council reports,
issues management, marketing and
communications, property services,
aged care, security, planning and
building – lean worked everywhere.
“We’re different;
Lean won’t work here”
Lean Thinking in an Organisation?
Org
an
isa
tio
na
l im
pa
ct
Use of Lean Thinking
Lean Tools
within
improvement
systems Low
High
Lean Thinking
as one
improvement
system
Lean Thinking
as the
improvement
system
Lean Thinking
as a
management
system
Improving high volume
processes (end to end) Problem solving
Lean Thinking for improvement
2 main areas where improvement is focussed
Process for improvement and
problem solving Establish
Continuous
Improvement
Define
Problem /
ScopeEvaluation
and
Share
Implement
Change
Current
State
to
Future
State
Deep
Discover
Current
State
Preliminary
1
23
4
56
D
S
P
A
D
S
P
A
D
S
P
A
Projects to prove concept:
• Lean Thinking is Process Thinking
– Pick a winner
– Go See
“But we are above benchmark!”
96% uptime, target is 95%
Started in the typical way
Improving Parking Meter Uptime
Revenue Cross silo productivity
Improving services for the young and
the old - pick something important
Maternal Child Health
A top 10 ‘high volume’
process for CoM with
>11,000 occasions of
service each year
•Made the flows visible
•Understood the processes
and the work
Review and Improve
•increased administration support
•established AGREED process
•Improved IT with cost effective
cloud based system
•Triaged to identify at risk / complex
•Improved nurse schedule
templates to maximise capacity
Outcomes
•Nurses with clients 9% more
( 53% to 64% of day)
•36% increase in clients seen
(older children)
•Do Not Attends reduced by 6%
(10% to 4%)
•Customers remain satisfied and
nurses satisfaction increased
•Nurses thinking changed
Process: new baby referral,
registration and appointment
scheduling
•processes performed variably with
wrong people doing the wrong work
•85% simple, but process evolved
for complex (at risk)
•IT not fit for purpose
•nurses spending only 50% of time
in consultations
•Clients happy with service
Older People
•Home care assessment team so busy reviewing new referrals that they never reviewed existing
clients, until something went wrong
•Review of 100 patient files revealed 80% were simple. Process was designed for complex.
•Go see revealed that documentation took longer than assessment
IMPROVE
•Triage then flow segmentation and AWOW for documentation provided capacity to review patients
•28% of reviews resulted in a change to care
•Unplanned reviews reduced by 75%
Process Improvement
Show it works everywhere
Aged care, child care, maternal child health, rubbish collection
Permits, parking fines, restaurant inspections, food sampling
Council planning, strategies, issues management, stakeholder management
Capital works, signage, park rangers, tree planting
Events in parks, arts and culture grants, event planning, corporate marketing
Recruitment, business planning, document management, IT requests
Improvements for Customers & CoM
EASIER BETTER FASTER CHEAPER
Show respect
every improvement is worthy
every improvement counts
People: Lean improvement requires
people development
800 staff (75%)
150 staff
100 staff
Graduation and celebration
Where are we now? Leadership development
Coaches and develops others
Leads improvement
Collaborates and builds
partnerships
Aligns services to customer
needs
Thinks strategically
Manages resources well
Develops self
Builds effective teams
Manages performance
Leadership Capability
Lean Leader Essentials
People started to ask:
“Why are we doing this at all?”
“What’s our purpose?”
Purpose: True North led to CoM Pyramid
So What?
> $5 million >2000
days productivity
released
FASTER
Benefits the external customer/community
=
BETTER CHEAPER EASIER
WINLOG
Over 450 recorded
wins
The macro measure
23%
rise
The macro measure
20%
rise
The macro measure
16%
rise
Intangible outcomes – hate turns to love
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