Download - Implementing Innovative Process Improvement & Lean Practices January 23, 2014

Implementing Innovative Process Improvement & Lean

Practices

January 23, 2014

Agenda

1. Introduction: Challenges facing the Public Sector

2. Laying the groundwork for a successful implementation

3. Developing well defined goals & objectives

4. Team Selection

5. Getting organizational buy-in

1. Introduction: Challenges facing the Public Sector

Public organizations face at least five key challenges:

1. Creating a truly transformational government 2. Meeting heightened constituent expectations3. Managing workforce transitions4. Minimizing the risks of implementing new technologies, and,5. Monetary issues, which are much more of operating realities

that color all decisions, are the fifth challenge.

Lean manufacturing processes have emerged as a means to help break the politicized cycle and short term pressures

2. Laying the Groundwork

LEAN THINKINGThe relentless effort to systematically reduce waste while improving the flow of value to the customer”

•Focused on eliminating waste•Provides principles, for improving work•Provides levers to drive system improvements

2. Laying the Groundwork - The Six Overarching Principles & Practices:

Partnership between supplier and producer

• Fewer, better managed suppliers

• Quality at the source• Shared destiny

relationships• Supplier development

LEAN WORK METHODS

Tactical shop-floor policies used to implement Lean• Service oriented production• Standard work• Visual control• Good housekeeping/5S • Set-up time reduction• Total Preventive Maintenance

• Education and development

• Flat organizations• Decentralized

management

ORGANIZATION & CULTURE

Progressive employee relations and change leadership• Workplace safety • Multi-skilled, flexible

workforce• Worker job security• Improvement incentives

• U-shaped lines• Autonomation• Line stops and andons• Error proofing

PULL

Everything produced at the rate of production of the final product -- “pull” production control

• Just-In-Time production and delivery • Linked production at Takt time• Kanbans• Level scheduling• Machines available on demand

PURSUING PERFECTION

Continuous improvement attitude and empowerment• Kaizen events and continuous improvement • Self-inspected quality, not inspected in quality • Process ownership and responsibility• Advanced quality concepts and measures

– Hardware Variability Control (HVC)– Statistical Process Control (SPC)

SOURCING & SUPPLIER INTEGRATION

FLOW

Maximizing value by producing only what is desired in the shortest time possible with the least resources

• Single piece flow• Physically and visually linked operations• Consolidated operations• Simplified and standardized processes

Some lean operations principles and tools may not apply, but the methodology will identify and help you to eliminate waste, thereby making your value streams leaner


However, adopting Lean means getting past some of the misunderstandings and misperceptions surrounding Lean:• “Another management fad that will disappear within a year”• “Cost cutting”• “Headcount reduction” • “Won’t work in my area” e.g. Engineering department


The Benefits of Lean• The percentage of patients being met within the target of 62 days rose from

around 40% to 75-80%.• A reduction in the average time to first appointment from 23 to 12 days.• The average time taken for processing a planning application was reduced from 5

days to 2 days.• A reduction in flow time of patients of 48%.• More calls answered at first attempt (30% - 85%)• More queries answered without the need for passing the customer to another

department• Cutting end-to-end time for adaptations to housing for disabled people from over

200 days to 12 days.• Reducing payroll errors from 75% to 2%.• Reducing backlogs in lost and found departments by 80%.• Reducing the time taken in report preparation in the Justice system from 77 to 6

days.Source: International Public Sector Research & Case studies

3. Developing well-defined Goals & Objectives: Setting the Stage

1. What is the overall business challenge? What problems does the business need to resolve?

2. What is the local problem you’re trying to resolve?

3. How will you measure this problem?

4. Did the solution work or not?

Starts with an assessment of current performance – where are we now?

Seven Deadly Wastes

TIMWOOD

Transportation

Inventory

Motion

Waiting

Over-Production

Over-Processing

Defects

e.g. Fire Inspection Services“Violation Orders”

Searching for information

Defects/Rework

Approval Wait Time

Meetings & Conference

Calls

Value-Added ~35%

Other

3. Developing Well-defined Goals & Objectives - Current State:

3. Developing Well-defined Goals & Objectives: Current State

Mechanic:

Electrician:

Operator:

• Client sets the expectation on how much of the gap they want to close

• Bench mark against “best in class”

KCB’s experience is that clients can recover a minimum of 50% of theNon Value Add activity

Opportunity

Opportunity

10

Facilities Management Services e.g.

3. Developing Well-defined Goals & Objectives: Current State Supervisory Study - Facilities Management ServicesTypical “Day-in-the-Life

11

Intra-site FlowInformation Flow

Inter-site Flow

Denotes site change

Denotes building change

Intra-site FlowInformation Flow

Inter-site FlowIntra-site FlowInformation Flow

Inter-site Flow

Denotes site change

Denotes building change

Sample Part: XXX

Transactional Statistics

Total Systems Employed: 19

Total Info Transactions: 399

- Manual Trans: 277

- Systems-based Trans: 122

Information Pathway Distance

- Inter-site: 4,105 miles

- Intra-site: 44,960 feet

- Time Variation: 3 hoursD

M

Program Off ice

Eng-Design

Drafter-CentaurDrafter-Booster

Eng-StructuresEng-Av ionics

Eng-Fluids

Eng-Checking

Eng-Mission Int

Eng-Sof tware

Supplier Data

Eng-Chief

Conf iguration Management

Admin

Saf ety

Eng-Sy stems

Model Control

ReleaseMission Success

Order Control

Quality

Contracts

Subcontract-AdminMaterial

Planning0

Eng-Production

Process Planning

Eng-QA

Asset SpecialistsPrint Crib

Machinist-Tool

Eng-Mechanical

Eng-Test

Production Planning

Product AssuranceReproduction

Repro-Data Entry

Repro-Lead

Reproduction-Photographer

Repro-Copy

Repro-Distribution

Receiv ing

Receiv ing-Asset Specialist

Receiv ing-Data

Receiv ingQuality Inspection

Truck Driv er

Mission Integration

Cape Receiv ing

Eutelsat

Purchasing-Planning

Buy er-Labarge Eng-Labarge

CSC Harlingen

CODS EDE

ProE

TRMS

CODSProE

CODS

CODSCVSPADR

CODSProE

ProEPADR

TSOCODSPADR

Support

Support

Support

MACPAC

MPPS

Support

CODS

MACPAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Ref lections

CADS

CADS

CADS

Support

Support

Support

Support

MACPAC

Liv eLink

TSO ELC

DM

Program Off ice

Eng-Design



Eng-Fluids

Eng-Checking

Eng-Mission Int

Eng-Sof tware

Supplier Data

Eng-Chief


Admin

Saf ety

Eng-Sy stems

Model Control


Order Control

Quality

Contracts


Planning0

Eng-Production

Process Planning

Eng-QA


Machinist-Tool

Eng-Mechanical

Eng-Test

Production Planning


Repro-Data Entry

Repro-Lead


Repro-Copy

Repro-Distribution

Receiv ing


Receiv ing-Data


Truck Driv er

Mission Integration

Cape Receiv ing

Eutelsat

Purchasing-Planning


CSC Harlingen

CODS EDE

ProE

TRMS

CODSProE

CODS

CODSCVSPADR

CODSProE

ProEPADR

TSOCODSPADR

Support

Support

Support

MACPAC

MPPS

Support

CODS

MACPAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Ref lections

CADS

CADS

CADS

Support

Support

Support

Support

MACPAC

Liv eLink

TSO ELC

DM

Program Off ice

Eng-Design



Eng-Fluids

Eng-Checking

Eng-Mission Int

Eng-Sof tware

Supplier Data

Eng-Chief


Admin

Saf ety

Eng-Sy stems

Model Control


Order Control

Quality

Contracts


Planning0

Eng-Production

Process Planning

Eng-QA


Machinist-Tool

Eng-Mechanical

Eng-Test

Production Planning


Repro-Data Entry

Repro-Lead


Repro-Copy

Repro-Distribution

Receiv ing


Receiv ing-Data


Truck Driv er

Mission Integration

Cape Receiv ing

Eutelsat

Purchasing-Planning


CSC Harlingen

CODS EDE

ProE

TRMS

CODSProE

CODS

CODSCVSPADR

CODSProE

ProEPADR

TSOCODSPADR

Support

Support

Support

MACPAC

MPPS

Support

CODS

MACPAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Ref lections

CADS

CADS

CADS

Support

Support

Support

Support

MACPAC

Liv eLink

TSO ELC

DM

Program Off ice

Eng-Design



Eng-Fluids

Eng-Checking

Eng-Mission Int

Eng-Sof tware

Supplier Data

Eng-Chief


Admin

Saf ety

Eng-Sy stems

Model Control


Order Control

Quality

Contracts


Planning0

Eng-Production

Process Planning

Eng-QA


Machinist-Tool

Eng-Mechanical

Eng-Test

Production Planning


Repro-Data Entry

Repro-Lead


Repro-Copy

Repro-Distribution

Receiv ing


Receiv ing-Data


Truck Driv er

Mission Integration

Cape Receiv ing

Eutelsat

Purchasing-Planning


CSC Harlingen

CODS EDE

ProE

TRMS

CODSProE

CODS

CODSCVSPADR

CODSProE

ProEPADR

TSOCODSPADR

Support

Support

Support

MACPAC

MPPS

Support

CODS

MACPAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Ref lections

CADS

CADS

CADS

Support

Support

Support

Support

MACPAC

Liv eLink

TSO ELC

Findings• Sign-off processes lack system

efficiency and result in manual reproduction effort (44 of the 56 change order steps are manually completed)

• Non-interfaced systems require re-keying of data

• Multiple systems generate additional work to maintain and update data (EBOM vs. MBOM configuration)

• Local application used to track and manage data flowing through the release and configuration management areas duplicates work in CODS (File Maker Pro)

Information space maps reveal complexity added to the value stream through inefficient system and data flows

3. Developing Well-defined Goals & Objectives: Current State

3. Developing Well-defined Goals & Objectives

Lean goals & measures need to reinforce the new configuration of work and encourage the minimization of “distance, friction, space and time”.

Sample Lean Metrics

• Cycle times

• Customer service levels (e.g., late orders, delivery performance)

• Total product throughput time

• Resources consumed per unit of output

• Resources employed per unit of output

• Inventory / working capital turns

• Return on assets

• Hand-offs in critical processes

• Distance parts/materials, travel

• % of workforce cross-trained

3. Developing Well-defined Goals & Objectives - A Radical Thought

• In most businesses, do managers contemplating improvement need to measure at all?

• A gemba walk through an end-to-end value creating process is often sufficient to grasp the situation , identify the problem and the opportunities, and envision a better future state.

• Because no customer thinks there is value for them in measurement, or counting. Lean measurement should mean:– The least possible counting – mostly of physical measures– Summarizing the current state of value creating processes and

measuring improvements in the future state due to specific changes in the process.

4. Team Selection• Cross-functional and include customers and suppliers

– People who have a “stake” in the value stream• Customers: e.g. Hospital Patients, Building owners (Fire Prevention Services)• Suppliers e.g. Facilities maintenance, Procurement

• People who actually “do” the work• Managers who are prepared to go the gemba and “roll up

their sleeves” (you may have to “help” prepare them)• Ideally, people who are familiar with the PDCA cycle

– Plan, Do, Check, Act (See Appendix for explanation of the PDCA cycle)

• People who’ve had some exposure and training on the application Lean tools & techniques, in particular– Value stream mapping– Observations (Day-in-life)

5. Organizational Buy-in: The Roots of Engagement

So what is it that prevents an organization from implementing its Lean Strategy?

In our experience responses can generally be categorized into one of the two following gaps:

1. The first gap occurs when an organization tries to execute its lean strategy despite its people, rather than through them.

2. The second gap is formed by the organization’s failure to create a process that clearly outlines how the strategy will be executed, and most important, connects the people to each other in that execution.

5. Organizational Buy-in: The Engaged Difference

1. PEOPLE WANT TO BE PART OF SOMETHING BIG. They must understand the big picture workings of the business and

the overall purpose that it serves. Both of these contexts help people realize that what they can achieve with others is greater than what they could do by themselves.

2. PEOPLE WANT TO FEEL A SENSE OF BELONGING When people are truly engaged, they believe that they really belong.

They have a sense of meaning or validation when they feel that they “fit”, they’re accepted, they’re one of the group.


3. PEOPLE WANT TO GO ON A MEANINGFUL JOURNEY We all want to be on some kind of purposeful adventure that matters.

As part of moving forward, there’s a feeling of excitement, pioneering, discovery – and a sense of accomplishment that comes from achieving something that matters.

4. PEOPLE WANT TO KNOW THAT THEIR CONTRIBUTIONS MAKE A SIGINIFICANT IMPACT OR DIFFERENCE Engaged people feel that whatever they’re doing is unquestionably

connected to making a difference in the lives of other people. If he’s engaged, the librarian who repairs books believes that he’s saving history for future generations. The hotel employee who sets up the breakfast bar believes she’s helping the business person prepare for a successful day.


Questions for Answer:

1. Do employees understand the big picture workings of the business and the overall purpose that it serves?

2. Do managers, front-line supervisors and workers see where they belong in executing the strategy of the business?

3. Are employees asking themselves “How can I improve the performance of our business?”

4. Do employees know or believe that their contributions can make a significant impact or difference?

How many employees would answer “Yes” to the above?Is Management working on this?

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5. Organizational Buy-in: An Engagement Technique

“Oranging” it: An innovative Problem Solving and Value Stream Improvement Technique

Michael Rosenberg – Author of “The Flexible Thinker”

Download - Implementing Innovative Process Improvement & Lean Practices January 23, 2014

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