Post on 28-Jul-2020
1Q6σLean
PIC, LLC Implementing & Sustaining Government LEAN Initiatives
Continuous Improvement in Government:
Applying LEAN Principles
2Implementing & Sustaining Government LEAN Initiatives2
2Q6σLean
PIC, LLC
Discussion OutlineDiscussion Outline
• Firms Overview• LEAN Overview• Approach to Serving Clients• Next Steps Discussion
3Implementing & Sustaining Government LEAN Initiatives3
3Q6σLean
PIC, LLC
About QPIC & Daniel Penn About QPIC & Daniel Penn hh 55 Combined Years Consulting Experience55 Combined Years Consulting Experiencehh Government ExperienceGovernment Experiencehh Diverse MultiDiverse Multi--National Fortune 1000 and National Fortune 1000 and
Government Client BaseGovernment Client Basehh Wide range of LEAN Six Sigma and Process Wide range of LEAN Six Sigma and Process
Improvement Services.Improvement Services.hh Outstanding Rating by our Clients Outstanding Rating by our Clients hh USUS--SBA certified SDB, GNEMSDC certified MBE, SBA certified SDB, GNEMSDC certified MBE,
and DAS certified CT Businessesand DAS certified CT Businesseshh Focused Approach for Addressing Focused Approach for Addressing
ClientClient’’s Needss Needs
4Implementing & Sustaining Government LEAN Initiatives4
4Q6σLean
PIC, LLC
Holistic LeanHolistic Lean
LEAN ToolsMWM – Measure What Matters
Kaizens
5Implementing & Sustaining Government LEAN Initiatives5
5Q6σLean
PIC, LLC
LEAN is based on:LEAN is based on:
The GoalThe GoalTo deliver continuously improving valueTo deliver continuously improving value--added added services (quality and speed of service) to customers services (quality and speed of service) to customers (taxpayers) at lower costs.(taxpayers) at lower costs.
Process ImprovementProcess ImprovementTo be able to identify key processes, how they are To be able to identify key processes, how they are performing and apply LEAN tools to make performing and apply LEAN tools to make improvements in reducing costs/wastes and improvements in reducing costs/wastes and enhancing revenues.enhancing revenues.
People are the BusinessPeople are the BusinessThere needs to be a high respect for people. A There needs to be a high respect for people. A constant search for how to improve things and reduce constant search for how to improve things and reduce errors vs. who’s responsible for the error. errors vs. who’s responsible for the error.
6Implementing & Sustaining Government LEAN Initiatives6
6Q6σLean
PIC, LLC
LEAN CONCEPTSLEAN CONCEPTS
Build on client skills to get faster results Build on client skills to get faster results ––more output from the same peoplemore output from the same peopleFocus on continuously improving processes Focus on continuously improving processes –– both Internal & Externalboth Internal & ExternalIncrease speed by eliminating waste and Increase speed by eliminating waste and reducing errors reducing errors –– 50%+ improvements are 50%+ improvements are commoncommonIs constraint freeIs constraint freeWe are targeting the frequency (more) of We are targeting the frequency (more) of doing things, not the persondoing things, not the person
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7Q6σLean
PIC, LLC
The Classic WastesThe Classic WastesHandling/Unnecessary MotionHandling/Unnecessary Motion
Inferior MethodsInferior Methods
InspectingInspecting
Transporting/MovingTransporting/Moving
CountingCounting
Delaying/WaitingDelaying/Waiting
StoringStoring
All Rework LoopsAll Rework Loops
Multiple SignaturesMultiple Signatures
Waste of Underutilized PeopleWaste of Underutilized People
8Implementing & Sustaining Government LEAN Initiatives8
8Q6σLean
PIC, LLC
Why is Money Saved?Why is Money Saved?Target best $$ opportunitiesTarget best $$ opportunities
Less transaction times = more Less transaction times = more transactionstransactions
Reduced cycle times = faster throughput, Reduced cycle times = faster throughput, info, decision making, etc.info, decision making, etc.
Less errors = less rework and checking, Less errors = less rework and checking, accurate informationaccurate information
Easier processes = greater employee Easier processes = greater employee satisfactionsatisfaction
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9Q6σLean
PIC, LLC
“Just the facts, M’am. Just the facts.”“Just the facts, M’am. Just the facts.”
The Foundation for Improvement is Built on Facts/Data
Sgt. Joe Friday
“In God We Trust”everybody else,
please bring data.
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10Q6σLean
PIC, LLC
AAchieving chieving CChange hange EEffectivenessffectivenessTo Successfully Implement and Sustain LEANTo Successfully Implement and Sustain LEAN
LEA
DER
SHIP THE VISION:
THE DESIRED OUTCOME OF CHANGE IS CLEAR, LEGITIMATE, WIDELYUNDERSTOOD AND SHARED. THE 90-SECOND SPEECH.
PROOF OF THE NEED:THE REASON TO CHANGE, WHETHER DRIVEN BY THREAT OROPPORTUNITY, IS INSTILLED WITHIN THE ORGANIZATION AND WIDELYSHARED THROUGH DATA, DEMONSTRATION OR DEMAND. THE NEEDFOR CHANGE MUST EXCEED ITS RESISTANCE.
DEVELOPING COMMITMENT:THERE IS A STRONG COMMITMENT FROM KEY CONSTITUENTS TOINVEST IN THE CHANGE, MAKE IT WORK, AND DEMAND AND RECEIVEMANAGEMENT ATTENTION.
SUSTAINING CHANGE:ONCE CHANGE IS STARTED, IT ENDURES, FLOURISHES AND LEARNINGSARE TRANSFERRED THROUGHOUT THE ORGANIZATION . W E MUST BEABLE TO SUSTAIN THIS LONG TERM.
MONITORING PROGRESS:PROGRESS IS REAL; BENCHMARKS SET AND REALIZED ; INDICATORSESTABLISHED TO GUARANTEE ACCOUNTABILITY . PROCESS OWNERS ,PERFORMANCE REVIEWS , ETC.
INFR
AST
RU
CTU
RE
The Elements of ACEHaving a champion who sponsors the change
CHANGING SYSTEMS AND STRUCTURES:Making sure that the management practices are used to
complement and reinforce change
Culture = “the way we
do things around here”
Actions,Behaviors, Systems &
Structures driveCulture
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11Q6σLean
PIC, LLC
When something is new or a significant When something is new or a significant change use ACE Tools:change use ACE Tools:
If something is new or a change, question #1 is: Should there be an elevator speech?- what is the change?- why are we doing it?- what do you expect from me?- what's in it for me (WIIFM)?
This provides the unified "talking points" for consistency of message.
Question #2 is: Who are the stakeholders, where do they stand,and where do we need them to be?
- stakeholder analysis sheet- strategies to address key stakeholders - communications strategy, etc.
12Implementing & Sustaining Government LEAN Initiatives12
12Q6σLean
PIC, LLC
Stakeholder AnalysisStakeholder AnalysisGetting BuyGetting Buy--In from the Key Stakeholders in the ProcessIn from the Key Stakeholders in the Process
ACE ACE –– Achieving Change EffectivenessAchieving Change Effectiveness
StakeholderStronglyAgainst
-2
ModeratelyAgainst
-1
Neutral
0
ModeratelySupportive
+1
StronglySupportive
+2Type of Resistance Plan to Address
Key: X = Current Support LevelO = Level Stakeholder Needs to be
STAKEHOLDER ANALYSIS
1
2
3
4
5
6
7
8
X O
XO
XO
XO
X
X
X
X
O
O
O
O
Communication throughout process; educate/train
Involve in solution; educate/train; clarify roles & responsibilities - accountabilities; give credit for the change
Involve in solution; educate/train; clarify roles & responsibilities - accountabilities; give credit for the change
Involve in solution; give credit for the change
Involve in any technology solutions
Skepticism; preconceived solutions
Skepticism; change
Skepticism; change
Skepticism; change
Potential resource impact
13Implementing & Sustaining Government LEAN Initiatives13
13Q6σLean
PIC, LLC
Cycle Time
Cycle Time
SalesSales SigmaSigma
COPQCOPQ
Accuracy Defects
Accuracy Defects
Cycle Time
Cycle Time
SalesSales SigmaSigma
COPQCOPQ
Accuracy Defects
Accuracy Defects
Cycle Time
Cycle Time
SalesSales SigmaSigma
COPQCOPQ
Accuracy Defects
Accuracy Defects
Cycle Time
Cycle Time
SalesSales SigmaSigma
COPQCOPQAccuracy Defects
Accuracy Defects
“Measure What Matters” (MWM)
Level 0Total Business
Level 1Core Processes
Level 2Sub-processes
•Focus on what are the key metrics to support our desired outcomes•MWM creates a results based organization•Metrics identify improvement opportunities•Metrics drive higher accountability
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14Q6σLean
PIC, LLC
Some LEAN Government Metrics: Some LEAN Government Metrics:
Output based: Output based:
BacklogBacklog
Work in ProcessWork in Process
InventoryInventory
Cost Based:Cost Based:
Cost per TransactionCost per Transaction
Total Process CostTotal Process Cost
Labor SavingsLabor Savings
Quality Based:Quality Based:
Customer SatisfactionCustomer Satisfaction
Rework Steps/TimeRework Steps/Time
First Pass Yield First Pass Yield -- Done Right the Done Right the First TimeFirst Time
% Complete & Accurate% Complete & Accurate
Organization Based:Organization Based:
Employee SatisfactionEmployee Satisfaction
TurnoverTurnover
Lean Events ConductedLean Events Conducted
Lean Event ParticipationLean Event Participation
Lean TrainingLean Training
Process Based:Process Based:
# of Process Steps# of Process Steps
# of Decisions Required# of Decisions Required
# of Signatures Required# of Signatures Required
# of Delays# of Delays
# of Handoffs# of Handoffs
Time Based:Time Based:
Lead Time Lead Time -- To Accomplish the To Accomplish the JobJob
% On Time Delivery% On Time Delivery
Total Processing TimeTotal Processing Time
Value Added TimeValue Added Time
NonNon--Value Added TimeValue Added Time
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15Q6σLean
PIC, LLC
PP--DD--CC--A LEAN Thinking ProcessA LEAN Thinking ProcessSelect the Targeted Process:
Value Stream Mapping
Plan – What needs to be done.
Do – “Trystorming”Check – Reflect on Results
Act - Adjust
16Implementing & Sustaining Government LEAN Initiatives16
16Q6σLean
PIC, LLC
KAIZENKAIZEN
KaiKai ZenZen
To break apartTo break apart ThinkThink
To modifyTo modify Make goodMake good
To changeTo change Make betterMake better
KaizenKaizen
Change for the betterChange for the better
ImprovementImprovement
Continuous ImprovementContinuous Improvement
17Implementing & Sustaining Government LEAN Initiatives17
17Q6σLean
PIC, LLC
Principles for Kaizen ImprovementsPrinciples for Kaizen Improvements
1.1. Think about how the new ideas will work, not Think about how the new ideas will work, not how they won’t work.how they won’t work.
2.2. Don’t seek perfection Don’t seek perfection –– 80% right, 100% 80% right, 100% implemented.implemented.
3.3. Fix mistakes the moment they are found.Fix mistakes the moment they are found.
4.4. Make improvements with minimal Make improvements with minimal investment.investment.
5.5. Continue to ask “Why?”.Continue to ask “Why?”.
6.6. Don’t except excuses.Don’t except excuses.
7.7. “Just do it” “Just do it” –– make it happen.make it happen.
18Implementing & Sustaining Government LEAN Initiatives18
18Q6σLean
PIC, LLC
Why is our approach different?Why is our approach different?
1.1. We are driven by data and facts from what the We are driven by data and facts from what the process tells us. We like to use “visual process tells us. We like to use “visual techniques” as much as possibletechniques” as much as possible
2.2. We integrate Achieving Change Effectiveness We integrate Achieving Change Effectiveness (ACE) and Business Process Management (ACE) and Business Process Management (BPM (BPM –– Measure What Matters)Measure What Matters)
3.3. We get the job done fasterWe get the job done faster4.4. We transfer sustainable skills to the Client We transfer sustainable skills to the Client
organization much fasterorganization much faster5.5. We offer a comprehensive service We offer a comprehensive service –– not just not just
one “niche”one “niche”
19Implementing & Sustaining Government LEAN Initiatives19
19Q6σLean
PIC, LLC
Why is our approach different?Why is our approach different?
6.6. We have trained groups in LEAN globally We have trained groups in LEAN globally ––US, Europe, Japan, and ChinaUS, Europe, Japan, and China
7.7. We have “handsWe have “hands--on” developed, implemented on” developed, implemented and managed comprehensive LEAN and managed comprehensive LEAN initiativesinitiatives
8.8. We have benchmarked best practicesWe have benchmarked best practices9.9. We integrate LEAN, Six Sigma, and We integrate LEAN, Six Sigma, and
Specialized Techniques (Bhote), as Specialized Techniques (Bhote), as appropriate appropriate –– a unique tool seta unique tool set
10.10. We don’t use as many of the traditional We don’t use as many of the traditional “Quality Tools” “Quality Tools” –– brainstorming, fishbones, brainstorming, fishbones, NGT, SPC, etc. as often as othersNGT, SPC, etc. as often as others
20Implementing & Sustaining Government LEAN Initiatives20
20Q6σLean
PIC, LLC
Our LEAN Rollout PlanOur LEAN Rollout Plan
1.1. Preliminary Meeting to review scope of work Preliminary Meeting to review scope of work ––no chargeno charge
2.2. One day Overview/Launch Session One day Overview/Launch Session
3.3. Three day Leadership Team Session Three day Leadership Team Session –– 1 day for 1 day for ACE and 2 days for LEANACE and 2 days for LEAN
4.4. Five day Kaizen Events for each identified Five day Kaizen Events for each identified ProjectProject
5.5. OnOn--going Project Management Supportgoing Project Management Support
21Implementing & Sustaining Government LEAN Initiatives21
21Q6σLean
PIC, LLC
Project ResultsProject Results
Collected $750K+ and Collected $750K+ and streamlined the processstreamlined the process
Collect $250K+ in back Collect $250K+ in back revenuesrevenues
Police Private JobsPolice Private Jobs
Reduced from 89Reduced from 89-->48 >48 days days –– impact $600K+ impact $600K+ --eliminated penalties, able eliminated penalties, able to have time for more to have time for more negotiations, etc.negotiations, etc.
Total process reduce from Total process reduce from 8989-->70days>70days
Purchasing RequisitionsPurchasing Requisitions
Reduced by $450K+/QtrReduced by $450K+/QtrReduce by $250K/Qtr.Reduce by $250K/Qtr.Police OvertimePolice Overtime
$4M+ of Grant monies $4M+ of Grant monies “found” and able to be “found” and able to be usedused
Centralize and manage Centralize and manage better better –– Generate $1M+ in Generate $1M+ in useful spenduseful spend
Grants administrationGrants administration
97% within 24 hours of 97% within 24 hours of reportingreporting
95% within 2 days of 95% within 2 days of reportingreporting
Pothole repairs Pothole repairs -- DPWDPW
3030--> 1 day, cash in bank > 1 day, cash in bank making $250K+/yearmaking $250K+/year
3030-->3 days non lockbox >3 days non lockbox checkschecks
Tax Collection Tax Collection –– time to time to put cash in the bankput cash in the bank
ResultsResultsImprovement GoalImprovement GoalKaizen or ProjectKaizen or Project
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22Q6σLean
PIC, LLC
What Do Clients Receive? What Do Clients Receive? What Do Clients Receive?
Knowledge…
• Transfer LEAN Six Sigma DNA into the organization
• Deliver right tools and techniques to solve business problems
• Train with simple, easy to understand intellectual material
Self-sustenance…
• Build and leave proven deployment strategy in place
Culture of excellence…
• Shape a data-driven employee base…every discussion,
meeting, decision
• Produce a process-focus mentality…everything is a process
• Institute a common language…
Results…Results…Results
23Q6σLean
PIC, LLC Implementing & Sustaining Government LEAN Initiatives
www.www.leangovcenterleangovcenter.com.com
24Implementing & Sustaining Government LEAN Initiatives24
24Q6σLean
PIC, LLC
Contact InformationContact Information
QPIC (Quality and Productivity Improvement Center), LLCQPIC (Quality and Productivity Improvement Center), LLC21 Apache Lane21 Apache Lane
Marlborough, CT 06447Marlborough, CT 06447860860--295295--91349134
www.leangovcenter.comwww.leangovcenter.comqpicllc@comcast.netqpicllc@comcast.net
Daniel Penn Associates, LLCDaniel Penn Associates, LLC47 Foxridge Road47 Foxridge Road
West Hartford, CT 06107West Hartford, CT 06107860860--232232--85778577
www.danielpenn.comwww.danielpenn.comInfo@danielpenn.comInfo@danielpenn.com