implementing innovative process improvement & lean practices january 23, 2014

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  • Slide 1
  • Implementing Innovative Process Improvement & Lean Practices January 23, 2014
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  • 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
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  • 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 expectations 3.Managing workforce transitions 4.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
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  • 2. Laying the Groundwork LEAN THINKING The 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
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  • 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
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  • 2. Laying the Groundwork 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 Wont work in my area e.g. Engineering department
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  • 2. Laying the Groundwork 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
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  • 3. Developing well-defined Goals & Objectives: Setting the Stage 1.What is the overall business challenge? What problems does the business need to resolve? 1.What is the local problem youre trying to resolve? 1.How will you measure this problem? 1.Did the solution work or not?
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  • Starts with an assessment of current performance where are we now? Seven Deadly Wastes TIMWOOD T ransportation I nventory M otion W aiting O ver- Production O ver- Processing D efects 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:
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  • 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 KCBs experience is that clients can recover a minimum of 50% of the Non Value Add activity Opportunity 10 Facilities Management Services e.g.
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  • 3. Developing Well-defined Goals & Objectives: Current State Supervisory Study - Facilities Management Services Typical Day-in-the-Life 11
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  • Information space maps reveal complexity added to the value stream through inefficient system and data flows 3. Developing Well-defined Goals & Objectives: Current State
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  • 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
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  • 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.
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  • 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 whove had some exposure and training on the application Lean tools & techniques, in particular Value stream mapping Observations (Day-in-life)
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  • 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 organizations 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.
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  • 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, theyre accepted, theyre one of the group.
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  • 5. Organizational Buy-in: The Engaged Difference 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, theres 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 theyre doing is unquestionably connected to making a difference in the lives of other people. If hes engaged, the librarian who repairs books believes that hes saving history for future generations. The hotel employee who sets up the breakfast bar believes shes helping the business person prepare for a successful day.
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  • 5. Organizational Buy-in: The Engaged Difference 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 supervi


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