AN INTRODUCTION TO LEANPRESENTED BY KRISTI ROWLAND, CITY OF RENTONSEPTEMBER 14, 2017

WFOA 62nd Annual ConferenceThree Rivers Convention Center

September 12-15, 2017

OBJECTIVES FOR THIS HOUR1. Lean principles2. Basic lean tools to try3. How to learn more…

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WHAT IS LEAN?

Customers: Lean provides a means of improving processes to provide VALUE to customers. Value is defined as providing what is needed, whenit is needed, and without error.

Employees: Lean empowers the people who do the work to continuously improve processes. It’s not about perfection but the practice of always looking for a better way to work.

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WHAT I LOVE ABOUT LEAN…

Continuous Learning

Continuous Improving

Respect for People

“Learning how to improve is as important as the improvement itself”

~John Shook

“A bad process will beat

a good person every time”

~ W. Edwards Deming

“Continuous Improvement is better than delayed perfection.”

~ Mark Twain

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LEAN HELPS US UNDERSTAND:

• What adds value to our customers• How work gets done• How we can identify root causes of problems• What an “ideal” process looks like• How we can improve performance• Whether process changes were successful

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WHAT I LOVE ABOUT LEAN…

Lean = happy workforceHappy workforce = improved customer service

improved customer service = happy customers

Lean = happinessSlide 6

WHAT LEAN IS NOT…

• A manufacturing tool (exclusively)

• A quick fix• A “gotcha” hammer

• A solution to manage personnel issues• A cost-cutting initiative

• An acronym(Less Employees Are Needed)• “Doing More with Less”

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NOT ABOUT REDUCING COSTS! The moment you link Lean or any improvement effort to reductions-in-force or budget (even casually) is the moment you will stop improving.

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A BRIEF HISTORY OF LEAN SIX SIGMACredit to: WSDOT

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WHY LEAN MAKES SENSE FOR FINANCE

Our Mission StatementProvide systems and processes that enable efficient, effective, transparent and accountable management and operations of the City.

Look familiar?

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WHY LEAN MAKES SENSE FOR YOUIf I had a regular, uninterrupted hour every week to dedicate to any work I choose, I could accomplish ___________________.

If I had a regular, uninterrupted hour every DAY to dedicate to any work I choose, Icould accomplish _______________.

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LEARN TO SEE….WHAT IS A PROCESS?

EVERYTHINGWe

did it!You do

thatI do this

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PRINCIPLES OF LEAN

• Customer Focus• Respect/Employee Empowerment• Standardization• Continuous Improvement (PDCA)• Data Driven Decisions

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PRINCIPAL: CUSTOMER FOCUS

• When they want ‘it’

• How they want ‘it’• The speed they want ‘it’

• What the purpose ‘it’ serves• How to treat them along the way

• How much they are willing to pay for ‘it’

The Voice of the Customer tells us…

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LEARN TO SEE VALUE

• Customer is willing to pay for it

• Actually transforms a productor service

• Done correctly the first time

• Consumes resources withoutcreating value for the customer(often CYA)

• Low percent of the time work iscomplete and accurate

• Requires extra time, effort, orresources

Value-added vs. Non Value-added*

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Credit: WSDOT

“There is nothing so useless as doing efficiently that which should not be done at all.” Peter Drucker

*Some of these may be REQUIRED

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LEARN TO SEE VALUE AND ASK….

Does this ADDvalue?

Yes

No Is it required? Yes

No

Improve!

Optimize

Eliminate

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PRINCIPAL: RESPECT/EMPLOYEE EMPOWERMENT

• Drives problem solving and decision making to thelowest possible levels.

• Celebrates improvement efforts (success/fail).• Seeks to increase capacity for high value work.

A lean culture…

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THOSE CLOSEST TO THE WORK ARE SUBJECT MATTER EXPERTS!

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CELEBRATE ALLEFFORT TO IMPROVE!

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Software updates

New GASB Implementation

Employee Turnover

Code updates

Chart of Account updates

Budget process

Special Project Forecasting

Bond IssuanceCustomer complaints

Policy updates

Correcting errors

Researching old mistakes

Software integrations

Can you…?

Could you…? Pleaseexplain…

TransparencyPublic Record Requests

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PRINCIPAL: STANDARDS MATTER

Standard work is important for…

• predictability• quality

Standards are not permanent! • measurability

• Processes naturally adapt over time• Technology and environment always changing

“Where there is no standard, there can be no improvement. For these reasons, standards are the basis for both maintenance and improvement.”Masaaki Imai

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PRINCIPAL: CONTINUOUS IMPROVEMENT

“Relying on periodic improvements and innovations alone – only improving when we make a special effort or campaign – conceals a system that is static and vulnerable.

[…] the normal operating condition of an organization – its nature – is not improving.”

Toyota Kata, Mike Rother

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PRINCIPAL: CONTINUOUS IMPROVEMENT

• Execute plan insmall increments

• Study the results

• Plan ahead for change

• Take action tostandardize orfurther improve

Act PLAN

DOCheck

The Deming Cycle

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PRINCIPLE: DATA-DRIVEN DECISION MAKING

“Without data you’re just a person with an opinion.” W. Edwards Deming

• Identify actual performance with data

• Verify complaints, anecdotes and feelings with data

• Prototype processes – using data to measure impact - tomake decisions about improvements

Skillful use of metrics is important

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WHY DATA?

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TOOLS YOU CAN USE ON MONDAY

• 8 Wastes

• Visual Management• Kanban

• 5S• Poke Yoke (Error-Proofing)• Single-Piece Flow• Fishbone Diagram (Root Cause)

• Value Stream Mapping

• Five Why’s

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VALUE STREAM MAPPING

Request received

Review Request

Process Request

Seek Approvals

Issue Requested

Item

30 seconds 3 minutes 10 minutes 10 minutes 30 seconds

1-5 days

0-1 days

3-5 days

1 day

If PERFECT, this process takes 24 minutes of actual work time5-11 days of waiting time

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Go from this……to this

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TYPICAL REAL LIFE PROCESS LOOKS LIKE…

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From…

Department email to Finance

Grant desk review A/R review Delivery per

instruction

To….

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MONDAY MORNING:

Prepare a value stream map for a simple process that you are part of – include others if you can! Identify waste. Identify poor flow. (prove it! what’s your data?)

• Plan to Improve the problem

• Do your plan (one improvement at a time)

• Check to see the impact (using your metrics!)

• Adjust and repeat

Helpful video: Lean Simplified -Value Stream Mapping https://www.youtube.com/watch?v=3mcMwlgUFjU

Make the invisible visible

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8 TYPES OF WASTE

DOWNTIMEDefects, Rejects,

Re-workOver-Production Waiting Non-Utilized People

Transportation Inventory Motion Extra Processing

Any activity that consumes resources without creating value for the customer Credit: SAO-LGPC

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Overproduction

Too much information Duplicate data sources A graph or memo that is too

complicated Too many copies

Non or under-utilized talent

Computer systems Information Customer response Review or approval

The Eight Wastes

Waiting

Unbalanced workload Not considering suggestions for

improvement Watching machines work People not using their knowledge

and skills

Data entry errors Pricing errors Missing information Lost records Equipment breakdowns

Defects

SAO - LGPC

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Inventory

Files waiting to be worked on Unused records in a database Excess supplies Emails waiting to be read

Extra-processing

Searching for files Excess paperwork handling Extra steps

Spreadsheets with the sameinformation

Repeated manual entry of data Redundant reviews or approvals Email reminders

Motion

The Eight Wastes

Retrieving files Carrying documents Circulating documents for signatures Excessive email or electronic files

Transportation

SAO - LGPC

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MONDAY MORNING: Take out the trash!

Take a peak at ONE process that you control and try to identify the waste.

• Plan to Improve it, Optimize it or Eliminate it

• Do your plan

• Check to see the impact

• Adjust, as needed.

Helpful video: 8 Wastes of Lean https://www.youtube.com/watch?v=ud-GPOB9Nz0

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FISHBONE DIAGRAM (ROOT CAUSE)

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FIVE WHY’S (ROOT OF THE ROOT)

Why?

Because…

Why?

Because…

Why?

Because….

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MONDAY MORNING: “Fishbone” a problem that has you stumped, with a group of stakeholders (all levels),

• What can you measure in each “bone” to verify ifit is a problem (or not)

• Plan to Improve the problem

• Do your plan

• Check to see the impact (using your metrics!)

• Adjust and repeat until root is found and improvement isdemonstrated

Helpful video: Lean Cause and Effect: How to Create a Fishbone Diagram https://www.youtube.com/watch?v=11_pvMrWnks&feature=youtu.be

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SINGLE PIECE FLOW?• Batching versus single piece flow exercise

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MONDAY MORNING: Make a quick inventory of process you do that are batched. Choose one process and experiment.!

• Time and record how long a batch takes and how many in a batch,start to finish.

• Calculate your time/item (data!)

• Next try one-piece-flow for a period of time, recording how longeach item takes, start to finish.

• Add up the total time, divide by number of items (data!)

• Compare your results.

• PDCA!

Helpful video: Lean - One-Piece Flow is Simplehttps://www.youtube.com/watch?v=rJCFKIzzIAY

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VISUAL MANAGEMENT provides immediate understanding of a situation / condition are efficient, self-regulating and worker-managed

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IS THIS VISUAL MANAGEMENT?

Immediate understanding? NOPE!Efficient? NOPE!

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PERSONAL KANBAN provides immediate understanding of tasks efficient, self-regulating and maintained

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PROJECT/TEAM KANBAN provides immediate understanding of a status/task ownership/lagging work, load balance efficient, self-regulating and worker-managed Daily Huddle framework

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MONDAY MORNING:

Build a Personal Kanban for yourself on a wall, door or window.

• Limit Work in Progress to only 2-3 items.

• When you finish a project, pull another stickynote into your WIP.

• You choose what to pull into WIP.

http://www.personalkanban.com/pk/

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5S“5S”1. Sort2. Set in order3. Shine4. Standardize5. Sustain6. Safety

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MONDAY MORNING:

5S your office or your email inbox (within your control)

• Sort

• Set in Order

• Shine

• Standardize

• Sustain

Helpful video: 5s office - high speed https://www.youtube.com/watch?v=MPkMK2q78qc

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ERROR-PROOFING IS EVERYWHERE!

Spellngi

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MONDAY MORNING: Error Proof one problem form.

• Make it impossible to enter incorrect info

• Share with a test group and ask them to break it(reporting the ways they could make errors)

• Problem solve and create the most error-proofform possible.

• PDCA!

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WHO I LEARN (AND BORROW) FROM: Many thanks to:

Larisa Benson, Government Performance ConsortiumWendy Fraser, UW-TacomaMegan Gregor, RentonJennine Griffo, SAO LGPCDeb Needham, RentonBrian Willet, VancouverSam Wilson, WSDOT and other Lean Six Sigma Black Belt Classmates at UWT

Government Performance Consortium UW Tacoma Keybank Professional Development Center staffSAO Local Government Performance Center staff WSDOT Lean Program

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RESOURCES: Recommended Books:

• Extreme Government MakeoverKen Miller

• Lean Six Sigma Pocket Tool BookGeorge/Price/Rowlands/Maxey

• Toyota KataMichael Rother

• Building the FIT OrganizationDan Markowitz

• The Checklist ManifestoAtul Gawande

• Personal KanbanBenson/Barry

• The Machine That Changed the WorldWomack/Jones

Websites I use:

• SAO Local Government Performance Centerhttp://portal.sao.wa.gov/PerformanceCenter/

• Lean Enterprise Institutehttps://www.lean.org/

• Government Performance Consortium hosted by MRSChttp://mrsc.org/Home/Explore-Topics/Management/Performance-Management/Government-Performance-Consortium.aspx

• Minnesota Office of Continuous Improvementhttps://mn.gov/admin/continuous-improvement/

You can reach me at: KRowlandRentonwa.gov

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