4/17/2017

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David Talcott, PE, PMPDi t f E i i S i

LEAN for Public Works

Stevan GorcesterTransportation Advisor, LEAN PractitionerPerformance Plane LLC

Director of Engineering ServicesExeltech Consulting, Inc.

Lean for Consultants

• What?

• Why is it important?

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What is LEAN and Why is it Important in Public Works?

• Functionalityy

• Accountability

• Public support

• Council communication

• Multi agency supportg y pp

• Continual improvement

O d ti W iti

Common Areas of Waste

Over-production Waiting

Inventory Defective Outputs

Transportation

Unnecessary Movement

Over-processing

Unused employee creativity

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The 15 Sec. Story

LEAN is a WAY OF THINKING about CONTINUOUS IMPROVEMENT byDESIGNING PROCESSES that EXTRACT GREATER VALUE

Make things better

What LEAN Government Means

Protect the people’s money from waste and misuse

Grow value, value is public sector profit

Leverage worker know how

Ensure performance to purpose

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THE LEAN PURSUIT:Gaps in performance to purpose

PursueValue

Eliminate Waste

CreateFlow

Work to a Standard

Make Visual

PERFECT THE PARTS TO BUILD A BETTER WHOLE

You can’t go directly to a generalized vision like “build a better car” or “have a better environment.” You must

perfect the parts to build a better whole.

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The PDCA Cycle

Pl • Establish Clarity of PurposePlan • Establish Clarity of Purpose• Formulate Theory• Determine Success Metrics

Do • Implement Plan• Test and Practice

Check • Determine if Performing to Purpose• Look for PDCA opportunities

Act • Implement Adjustments based on Findings

• Fine Tune• Close the Cycle

PDCA is Deming’s simple formula for the improvement of almost anything.

The Improvement Kata

2 3 14Encountered

VisionObstacleCurrentCondition

NextTarget

Condition

Source: Toyota Kata, Mike Rother

Understandand Overcome

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GOING STRAIGHT TO DO?Shorting the Plan step impairs our value proposition in purely avoidable waysavoidable ways

Key differences between LEAN Government and LEAN Manufacturing

• Distributed decision-making, leaders may differ on true northnorth.

• Profit is easier to see than value. Value may be in the eye of the beholder.

• Tolerances - cost, schedule and fault tolerance.• Marginal time savings is more difficult to monetize.• Intended performance to purpose (P2P) may be

unclear.• Harder to see waste, intangible, hidden in broken

policy.• Pay incentives don’t positively reinforce outstanding

work, must rely on altruism

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The Target

Risk

The Hoshin Compass

• Define goals• Implement the right strategies• Measure• Adjust

Risk

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The Performance Plane

Examples from Public Works

• The Capital Squeezep q

• TIB Small City Paving

• Olympia Capital Projects Visual Management Board

• Redmond Phase Gates Flowchart

• Payments Process Flowchart

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The Capital Squeeze

Start with a Problem Statement

• Small cities do not raise sufficient funding gto maintain streets.

• Many streets historically constructed without base.

• Small scale preservation projects equal l ipoor scale economies.

• 165 cities with 1,600 miles of streets averaging 62pcr.

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State a Clear Purpose

• Well maintained streets, over good gutilities, with stable base.

• Sidewalks in business district and out to generators.

• A great Main Street that’s business ready.

• Efficiently produced with respect for the natural environment.

Work to a Standard

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Measure and Improve

Olympia Improving Capital Project throughput with Visual Management

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Redmond Using Process Design to Improve Project Flow

Flow charting payments processes found over-processing