lean six sigma webinar efficient processes for the public sector

LEAN & SIX SIGMA:

Welcome to…

LEAN & SIX SIGMA:

Efficient Processes for the Public Sector

PRESENTED BY E-ZSIGMA (CANADA) INC.

CANADA’S LEADER IN LEAN, SIX SIGMA AND INNOVATIVE PRACTICES

CHALLENGES FOR CANADIAN HEALTHCARE?� Primary care reform

� the way in which primary care and primary health care services can be organized to best serve population health needs

� Health human resource planning� the way in which a variety of health professions should be

deployed to provide health care services to the population

� Cost and sustainability

Thursday, May 13, 2010Lean & Six Sigma: Efficient Processes for the Public Sector 2

� Cost and sustainability� the way in which health care services are funded and the costs for

the future

� Role of the private sector� the way in which health care is delivered and funded privately

� Quality of Care and Measurement� the way in which decisions about healthcare interventions are

based on evidence of effectiveness to improve quality.

Source: Canadian Policy Research Networks, January, 2004

THE DEMAND CURVE WE ARE FEELING

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Source: Understanding Canada’s Health Care Costs, Health Canada, 2000

Thursday, May 13, 2010Lean & Six Sigma: Efficient Processes for the Public Sector

DEMAND ACCELERATORS & RESPONSES

ACCELERATORS

� Emerging and New Technologies

� major joint surgery, neonatal and fetal technologies, dialysis, organ transplantation, genetic testing and therapy

� Increased Incidence and earlier onset of Chronic and New Diseases

� heart disease, diabetes, tuberculosis, Hepatitis C, HIV, and AIDS

� Increased demand from an aging population

� New Pharmaceuticals

� Declining Productivity Gains & Changing Expectations

RESPONSES

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RESPONSES

� Improved management of health care systems and delivery

modes

� Increased process and treatment efficiency and effectiveness

� A public that is capable of making informed & appropriate

choices

� aka “Help me to help you”, Movie: Jerry Maguire, TriStar Pictures 1996


SOME OF TODAY’S PARTICIPANTS

� Financial Services Commission of Ontario

� Government of Alberta

� Government of Saskatchewan

� Government of Yukon

� House of Commons

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� House of Commons

� Industry Canada

� Ministry of Community and Social Services

� Ministry of Community Safety and Correctional Services

� Province of Manitoba

� The Regional Municipality of York

� Dept of Health, PEI


SO... WHAT’S KEEPING YOU UP AT NIGHT?


Ask 5W questions & 2H questions to ensure you have

covered all the key information:

1. What is the problem?

2. Why is it a problem? Highlight the “pain”

3. Where do we observe the problem? (location, products)

THE 5W2H TOOL

5W3. Where do we observe the problem? (location, products)

4. Who is impacted? (customers, businesses, functions)

5. When did we first observe the problem?

1. How did we observe the problem? Symptoms

2. How often do we observe the problem? How many defects do we

observe? Magnitude and trend.

5W

2H


EVER-INCREASING CUSTOMER FOCUS

� Organizations provide goods and services for customers – they

define needs, quality and price

� Customer focus drives such questions as:

� Why are we in business?

� Where do we need to be in the future?

� What is the source of our “Competitive Advantage”?� What is the source of our “Competitive Advantage”?

� Customers bring alignment to cross-functional organizations:

� What drives purchasing behaviour?

� What is a defect; what constitutes value for the customer?

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QUANTIFYING NEEDS

I hope I don’t have

to wait too long to

see the doctor!

Subjective: “Too Long”

Quantitative: “total

minutes lapsed until

meeting the doctor”

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MEETING TARGETS BASED ON CT’S?... � Capability to meet/exceed customer

expectation?

� Reliability and stability of key

(process) inputs resulting in

predictable outcomes for

customers?customers?

� Need to “shift” the average?� Increase production rate/capacity

� Reduce cycle time and cost

� Need to reduce variation?� More “robust” processes

� Less non-conforming results (eliminate defects)

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TWO POWERFUL APPROACHES…Six Sigma & Process Variation

• Describe variation!

• Analyze it! Y = f(x)

• Reduce it!

• Control it!

Lean & Process Efficiency

• Define customer value!

• Identify waste!

• Eliminate waste!

• Increase flow of value!

Reduced

Example

• wait times

Before 6S After 6S

Predictable, Controlled, Capable

Before Lean

Efficient, High-Value, Low Cost

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

After Lean

Reduced

variation

Reduced

average

• wait times

• cost

• handling

• minutes, hours,

days…

Breakthrough Improvement!

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LEAN & SIX SIGMA

LEAN

� Customer/Community Focused

� A Paradigm Shift in the Way Value is Defined

� 5 Key Principles & Eight Associated Sources of Waste

� A Value-Stream Based Approach: The “Flow” of Value (velocity)

� Tools & Techniques to Improve Value Creation

� Turn everyone’s “waste radar” on

� Reduce or Eliminate the Inhibitors to Value Creation

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� Reduce or Eliminate the Inhibitors to Value Creation

� Extremely Participative Problem-Solving , Event Driven, & Culturally Transforming

SIX SIGMA

� Focus on process “problems”: Errors, Quality, Robust Process Design

� Key to Success: Focus on Understanding Process Variation

� Emphasis on data and analysis: Profound Knowledge!

� Project-Centric: Well Defined Goals & Measurable Results

� Rich & Diverse “Tool Box” for Analysis and Problem-Solving

“At e-Zsigma, we teach people to do Six Sigma and we CHANGE people to do Lean”


LEAN 101: FIVE PRINCIPLES OF LEAN

13 Thursday, May 13, 2010Lean & Six Sigma: Efficient Processes for the Public Sector

LEAN 101: DEFINING VALUE

Lean Thinking: Any process step, activity or task that transforms the deliverables of a

process such that the customer is aware of it AND is willing to pay for it is considered

value added. Value is always stated in the eyes of the customer.

© 1996 “Lean Thinking”, Womack & Jones

Healthcare? Any activity or task that moves the patient through the diagnosis,

treatment and prevention process, is performed correctly the first time, and the

customer and/or community is willing to pay/fund for that activity or task since it does

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customer and/or community is willing to pay/fund for that activity or task since it does

create value.

Public Service? Any process step, activity or task that transforms the deliverables of a

process such that the customer and the community is aware of it and is willing to fund

and/or pay for it is considered value added.

How do you or your organization define value? Because… If it is not value-added, then it

is waste (aka “Muda”)


NON-VALUE ADDED: WASTE

Waste is defined as anything that does not add value

for the customer.

“Lean Thinking” requires an organizational“Lean Thinking” requires an organizational

culture that is intolerant of all forms of

waste.

The goal of Lean is to banish waste.

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LEAN 101: THE EIGHT SOURCES OF WASTE

� Inventory & Storage: Brochures/booklets printed, stored and perhaps becoming obsolete

(scrapped)

� Waiting or Delays: Delay in getting security clearance for a new hire

� Over-producing:

� Transportation: The movement of people, equipment, materials etc between building, cities,

regions, provinces, etc

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� Motion: Poor office layout (departments) resulting in people having to move around to get their

regular work done

� Errors/Mistakes: Missing or incorrect information on a form or application resulting in rework

and delays or even lost opportunity

� Over-processing: Producing reports in advance of when the information is needed, or

information that may not be needed at all

� Underutilized human capability: People working on non-value added (see above) and not

leveraging their talent and capability


LEAN 101: MAKING WASTE MORE VISIBLE

� Process Flow Maps

� Spaghetti Diagrams

� Value Stream Maps

� Cause and Effect Diagrams

� Five “Whys?”

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� Five “Whys?”

� Pareto Charts

� Workplace Organization

� 5S (Sort, Set, Shine, Standardize, Sustain)

� Visual Workplace

� Process Reports, Audits and Assessments


LEAN 101: PROCESS MAPS


LEAN 101: SPAGHETTI DIAGRAMS


LEAN 101: VALUE STREAM MAPPING

• Current state?

• Future State?

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Observing the process, Capturing data & Looking for waste….


LEAN 101: CAUSE & EFFECT


LEAN 101: FIVE WHY’S

A simple, investigative line of questioning to begin understand

any problem.

� Start with an effective problem statement (current situation)

� Start asking the questions… the “Five Whys”… (doesn’t have to be five

questions – could be more)

� Usually done in a team problem-solving environment consisting of


� Usually done in a team problem-solving environment consisting of

subject-matter experts

� Keep asking exploratory questions until you

arrive at the ROOT CAUSE

� “Test” the answers by asking such questions

as, “If that didn’t happen, would the problem

go away?”

LEAN 101: PARETO CHARTS


LEAN 101: THE 5S EVENT

1. Sort: Separate what is needed in the work area from what is not. Then…

get rid of what isn’t needed!

2. Set in order: Organize what remains – in the order that it is required for

the process or task

3. Shine: Clean and inspect the work area/workplace

Standardize: Standardize the cleaning, inspection,

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4. Standardize: Standardize the cleaning, inspection,

and safety practices – make it part of the job

5. Sustain: Establish an environment, including audits and visual cues, that

ensure the culture of 5S “sticks”

Note: Lean organizations have a standard that any “tool” must be able to be found within X

seconds (example: 60 seconds). A tool can be a piece of equipment, a document, a file, etc.

necessary for the work to proceed and value to be created.


LEAN 101: VISUAL WORKPLACE

The Challenge: People not having access to the knowledge they need to do

their jobs effectively and efficiently. What tasks? What priority? What

target? The “correct” way? Which tools and where can I find them?

Waste: Searching, asking, waiting, retrieving, reworking!

Visual workplace: Providing vital information when and where it is needed.

� Easily understood & unambiguous work instructions on what to do,

when, and how.

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when, and how.

� Tools and methods to easily and reliably identify process errors ad

omissions as quickly as possible - at the source.

� Real-time performance feedback so employees know where they stand in

terms of meeting goals or targets.

� Encourage alignment of activities across and up and down the

organization so that they congruent with strategic goals and objectives.

� Promote and communicate cultural change in the organization,

specifically the lean evolution.


EXAMPLE: VISUAL WORKPLACE


“Access to information and tools to do the job”

LEAN 101: ASSESSMENTS & AUDITS

� Creates accountability & encourages shared commitment for

performance

� Tracking trends and (lean) improvement activities

� “We measure our performance”: a part of our culture

� “You can’t manage what you don’t measure”� Measures help control the processes


� Measures help control the processes

� Metrics aligned to corporate goals and strategy

� Ex. Customer survey data

� Using & reporting the “wrong” metric can be more damaging than having no metric at all!

LEAN 101: ELIMINATE WASTE BY…

• Reduction/elimination of batches

• Single piece flow

• Continuous flow

• Improved process control

• Reduced process variation

• Five S – Visual Workplace

• Quick Changeover

• Standardized Work

• Andon System, Pitch

• Materials replenishment


• Reduced process variation

• Faster reaction to problems

• Shorter lead times

• Reduced forecasts

• Takt time and demand leveling

• Just in Time

• Touch once principle

• “Pull” systems design

• Materials replenishment

• Kanban, FIFO

• Supermarket Pull System

• Total Productive Maintenance

• Cellular Design/Layout

• Work cells

• Error Proofing

• Kaizen improvement events

BUT… LEAN REQUIRES CULTURAL

TRANSFORMATION!

Lean strategiesfails as a result ofnot recognizing thiskey element for


key element forsuccess.

SIX SIGMA 101: “Y IS A FUNCTION OF X”

� The heart of “Six Sigma” thinking

� The phrase “Y is a function of X" means that the value of Y (process

outcome) depends upon the value of x (process inputs), so Y can be

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outcome) depends upon the value of x (process inputs), so Y can be

written in terms of X.

� This philosophy has evolved into a robust, powerful problem-solving and

process improvement methodology used by hundreds of thousands of

organizations world-wide

� Automotive, aerospace and manufacturing

� Banking, insurance and financial services

� Hospitality and service industries

� Healthcare

� Government and public sector


SIX SIGMA 101: THE IMPORTANT QUESTIONS

1. Do I fully understand the customer requirements?

(Target and Tolerance)

2. How much variation is in the process I use to meet

my customer’s needs?

3. How well does my process meet my customer’s

needs? How often? What is the impact on Cycle

1

2

3

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needs? How often? What is the impact on Cycle

time? Safety? Customer Satisfaction?

4. What are the root cause(s) of the process variation?

5. Can I reduce variation within the process to reduce

the defects? (If not, get a new process.)

6. Can I center the current process on target?

Y = F(X1..Xi)

3

4

5

6


SIX SIGMA 101: DMAIC APPROACH

� Define… process improvement goals that are consistent with customer

demands and the enterprise strategy.

� Measure… key aspects of the current process and collect relevant data.

� Analyze… the data to verify cause-and-effect relationships. Determine

what the relationships are, and attempt to ensure that all factors have

been considered.

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been considered.

� Improve… or optimize the process based upon data analysis using

techniques like Design of Experiments.

� Control… to ensure that any deviations from target are corrected before

they result in defects. Set up pilot runs to establish process capability,

move on to production, set up control mechanisms and continuously

monitor the process.

Source: www.isixsigma.com


SIX SIGMA 101: THE HIDDEN FACTORY

Step 1 Step 2Good? Good?Service

Delivered

No matter how hard we try we

Just can’t seem to catch all the

Mistakes and errors. Ooops!

There goes another one. Let’s

Try harder. Let’s double inspect.


AnalyzeCorrect AnalyzeCorrect

The “Hidden Factory”

Extra cost? Delays? Customer Satisfaction? Frustrated Personnel? Risk?...

LEAN SIX SIGMA 101: ROBUST “TOOL BOX”

Define

Measure

•VOC (Voice Of the Customer)

•Project scoping and problem statement

•Team identification

•Cost of poor quality

•Change management

•Project contract

Define Phase – Key Tools

•“Critical To” Tree (CT Tree)

•High level process map

•Process Mapping (including SIPOC)

•Rolled Throughput Yield (RTY)

•Basic Statistics

•Central Limit Theorem (CLT)

•Cause and Effect (C&E) Matrix

•Control Charts Basics

•Measurement System Analysis

(MSA)

•Process Capability

•Cause and Effect (C&E) Diagram

Measure Phase – Key Tools

•Binomial Distribution Statistics

•Graphical Analysis and Techniques

•Data Collection Plan

•Failure Mode & Effects Analysis (FMEA)

Analyze Phase - Key Tools

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Analyze

Improve

Control

•Advanced Graphical Analysis

oMulti-Vari Studies

oMain Effects Plots

oInteraction Plots

oCorrelation

oRegression

•Statistical Analysis

oHypothesis Testing

�Means

�Variation

�Proportion

�Counts

•Confidence Intervals

•Power and Sample Size

�Chi Square

�Non-normal data

�Analysis of Variance

�Analysis of Means

•Modeling Designs of Experiments

•Response Surface Design of

Experiments

•Robust Design of Experiments

•Survey Design of Experiments

Improve Phase - Key Tools

•Screening Design of Experiments

•Multiple Regression

• Process Control Plans

• Gage Control Plans

• Preventative Maintenance Control Plans

Control Phase – Key Tools

• Mistake Proofing

• 5S

• Standard Operating Procedure

• Statistical Process Control

• Business Case Simulation Exercise


YOUR EXPECTATIONS FOR LEAN SIX SIGMA

� Improved customer experience and satisfaction

� Faster response to client needs

� Increased job satisfaction & reduced stress for staff

� Improved, standardized & repeatable processes that are more predictable

� Between 20% and 60% reduction in Process Cycle Time

� Ability to focus resources on more value-added activities

� Greater than 50% Improvement in resource utilization

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� Greater than 50% Improvement in resource utilization

� Improved asset utilization: people, equipment & technology

� Reduced unit costs through increased capability

� Improved flow through elimination of bottlenecks (delays) and constraints (limiters)

� Greater than 30% gain in process capability

� Dramatic improvement in scheduling predictability – better process management

� Participative problem-solving

� Engaging the people who know and do the work… the team

� Recognition of the “human” side of lean and the need to manage change


E-ZSIGMA (CANADA) INC.

� Canada’s leader in Lean, Six Sigma & Innovation strategy, consulting and training

� Canada’s only Certificate in Lean Six Sigma for Public Service

� Schulich School of Business Lean Six Sigma Centre of Excellence

� Some of our Public Service clients;

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� Some of our Public Service clients;

� Government of New Brunswick

� Government of Alberta

� Government of Saskatchewan

� Health Canada

� Ministry of Transportation

� Service Canada

� Office of the Auditor General

� WSIB

• Lean Six Sigma Strategic Deployment

• On-site Lean Six Sigma Training

• Lean Six Sigma Project Management

• Open Enrollment (Public) Training

• Process Design, Modeling & Simulation

• Master Black Belt Project Coaching

& Mentoring

• Lean Six Sigma Certification

• Comprehensive e-Learning Program


RAPID START: GREEN BELT FOR PUBLIC SERVICE

The Lean Six Sigma Green Belt for Public Service Certificate will

enable you and your team to leverage the power of proven

problem-solving, process improvement and management tools

and methodologies to rapidly and effectively achieve your

organizational goals, and ultimately achieve the bar of

excellence envisioned for all 10 criteria identified in the

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excellence envisioned for all 10 criteria identified in the

Management Accountability Framework (MAF).

Lean Six Sigma Green Belt for Public Service is a blended learning

program that incorporates five days of high impact classroom

sessions led by Canada’s foremost trainers in Lean Six Sigma

for Public Service Excellence, blended with an additional

twelve hours of on-line, independent study


COURSE OVERVIEW

� The Five Key Principles of Lean

� Value-Added Assessment

� 8 Sources of Waste & Tools to Identify Waste

� Introduction to Six Sigma

� DPMO and Process Variability

� DMAIC Problem-Solving Methodology

� Basic Quality & Process Management Tools

� Data Collection and Sampling techniques

� Graphical Tools for Process Analysis

� Assessing Process Capability

� Process Analysis and basic statistical tools

� Risk Analysis (FMEA & FTA)

� Rapid Process Changeover

� Work leveling, cellular layout, flow & Kanban� Basic Quality & Process Management Tools

� How to Successfully Lead a DMAIC Project

� Critical Quality and SIPOC analysis

� Value Stream & Process Mapping

� Cause & Effect and Root Cause Analysis

� Pareto Analysis

� Visual Workplace and Standardized Work

� Facilitating Kaizen events

� Workplace organization (5S)

� Error-Proofing Techniques

� Establishing and maintaining process

management controls


COURSE OVERVIEW

Thursday, May 13, 2010Lean & Six Sigma: Efficient Processes for the Public Sector39

E-ZSIGMA SERVICES

PUBLIC SECTOR SPECIFIC TRAINING PROGRAMS

� E-Zsigma has designed an 5-day Blended Lean Six Sigma for Public Sector program tailored specifically for the Canadian Public Service industry. This program is the first of its kind in Canada.

CUSTOMIZED SOLUTIONS

� Our training programs can be customized to suit your needs and be delivered at your location.

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delivered at your location.

PROJECT MANAGEMENT & LEADERSHIP

� Allowing our senior Master Black Belts to help you lead rapid and highly successful lean six sigma improvement projects

E-LEARNING SOLUTIONS

� We understand the hectic schedule of the healthcare professional. Therefore we offer a comprehensive eLearning program designed to meet your needs on your schedule.


CONTACT INFORMATION

E-Zsigma (Canada) Inc.

One Dundas St W, suite 2500

Toronto, ON

www.e-zsigma.com

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www.e-zsigma.com

O: 416.593.8026

F: 416.204.1939

Thank you for joining us today!
