Presenters: Laurie Klupacs, Deputy Director & Toni Smith, - - PowerPoint PPT Presentation

Presenters: Laurie Klupacs, Deputy Director & Toni Smith, Education Director Association of Minnesota Counties

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er:

How and Why AMC started a LEAN education effort in Minnesota. Portions of AMC’s training program we use in Minnesota so you understand basic components of LEAN. Examples of how counties are approaching LEAN in Minnesota. Examples of how Kaizen events have saved Minnesota counties time and money.

This workshop will introduce you to LEAN’s basic concepts to see if it’s a good fit for your ur coun unty, y, bu but wi will ll not tea each h you u ho how w to cond nduct uct an actua ual l LEA EAN even ent.

1. Welcome – Who is Audience? 2. What is LEAN? 3. Why LEAN now in county government? 4. How is LEAN used in Minnesota Counties? 5. Question and Answer

Declining budget dollars and a shrinking workforce mean that many counties are being asked to do more with less.

How do counties continue to provide quality services to citizens as demand grows and resources become more scarce? Baby-Boomers are retiring and that means institutional memory is walking out the

• door. How much of their work is

How often do you believe your county staff have done serious examination as to why county processes are designed the way they are? In many counties the

We say: “You don’t have time to NOT do that analysis and LEAN can help.”

Why hy Sho houl uld d You

• u Care

e Ab Abou

• ut LE

LEAN AN?

Using “person-on-the- street” interviews, we introduce county employees to a cast of characters that not

• nly share how we

should deal with change, but encourage them to put their thoughts into action.

What’s You

• ur

Per erspec pective ive

• n
• n

Ch Chan ange? ge?

LEAN is a time-tested set of tools, and an organizational desire to improve its operations by engaging employees to reduce waste and defects within processes to increase productivity, reliability, staff morale, and customer service. LEAN characterizes activities as value-added

• r non value-added from the customer’s view.

What are the value-creating elements of your process? Define the Value Stream.

LE LEAN N Emp mphasiz hasizes

Efficiency Reducing Cost and Time Action

What at is LE LEAN? AN?

An Acronym The Newest “Fix All The County Problems” Program A Quick Fix An Org Chart Shuffle Changing Lines On The Org Chart Does Not Improve Process! Easy It’s Simple, But Easy Does Not Exist! About Laying Off Staff Staff may need to do different work.

LEAN is NOT…

Most closely associated with Toyota; sometimes referred to as the Toyota Production System (TPS). Now being applied in

• ffice and manufacturing

environments; private and public sectors.

Wher ere e Di Did d LE LEAN AN Co Come e Fr From

• m?

“If I were given one hour to

save the world, I would spend 59 minutes defining the problem and

• ne minute

solving it.”

• Albert Einstein

Wh Why y Foc

• cus On E

On Exam amining ining Proc

• cesse

ses In In You

• ur Co

Count nty? y?

Nearly every tangible output; service or product, is created as the result of a process or series of processes (a system). It’s been shown that over 85% of the

• pportunity to improve those outputs,

while reducing time and cost lie within the process itself.

Proc

• cess for
• rms

ms the e bas ase of e of the e ma majo jority y of

• f yo

your cou

• unty

y ser ervic ices. s.

County Department

Program within that department Processes that make that program work

“A bad process will beat a good person every time.”

• W. Edwards Deming

“The work of government is noble. Government employees are amazing. The systems of government are a mess.”

• Ken Miller, “Extreme Government Makeover”

St Strai aighte ten n th the Pipe e Pipes! s!

Ken Miller’s Ideas Are the pipes crooked in your county? How did they get that way? What can you do to straighten them?

Cu Cust stom

• mer

ers s Ju Judge dge Se Serv rvic ices s By: By:

SPEED – How quickly do I receive it once I request it? ACCURACY – The information is correct, and relevant to my request. UNDERSTANDABLE – The information is easy to read and understand. CONVENIENT – I can get it when I want it, not when you are willing to give it to me.

We W e Wor

• rk

k To

• Ide

Identif ify WASTE In Our Systems…..

Waste is:

Any action, task, process or product that adds time and cost, without adding value as perceived by the customer.

Non

• n-Value

alue Add Added = ed = W Was aste e

Typ ypic ical al Sy Symp mptom

• ms of W

s of Was aste: e:

Excessive Cycle, Lead or Flow Time Excessive costs Poor quality Excessive inventories Dependency on work-around methods Reactive fire-fighting Daily management by exception

Val alue ue-Add Added ed Act ctiv ivitie ies

Transform materials and information into products or services per the needs

• f the customer.

Operations that consume resources (labor and materials), but don’t create value for the customer.

8 Wastes We Focus On…

• 1. Overproduction
• 2. Transportation
• 3. Motion
• 4. Defects
• 5. Waiting
• 6. Inventory
• 7. Extra processing
• 8. Underutilized creativity

WASTES DEFINITION WORK AREA APPLICATIONS

Generating more information and products than needed

• Creating reports no one reads
• Batch production
• Unnecessary meetings

Movement of products and information that does not add value

• Retrieving or storing files
• Carrying documents to and from

Movement of people that does not add value

• Searching for files
• Clearing away files on the desk
• Gathering information
• Looking for tools, parts, and

Idle time created when material, information, people or equipment is not ready

• Waiting for the system to come back

• Waiting for inspection
• Waiting for paint or seal to dry
• Copy machine
• A handed-off file to come back

WASTES DEFINITION WORK AREA APPLICATIONS Processing Efforts that create no value from the end-users viewpoint

• Creating reports
• Use of inappropriate software

Inventory More information and/or material on hand than the end-user needs right now

• Files waiting to be worked on
• Open projects
• Just-in-Case inventory anticipated
• E-mails waiting to be read
• Unused records in the database

Defects Work that contains errors, rework, mistakes or lacks something necessary

• Missing information
• Lost records

Follow the Bouncing P aperwork…

Ka Kaiz izen en Toa

• ast

st Vi Video deo

• 1. Watch for examples of

the seven wastes in the following video.

• 2. Make a note of what

you would do differently if you were making the toast.

Wh What at is is 5S 5S?

Methodology for creating a clean, safe, orderly, high performance work environment

The 5 “Ss Ss”

Sort Set In Order Shine Standardize Sustain

Before…

After…

“When in doubt, move it out.”

SORT SORT

1S

So Sort rt: : El Elec ectroni

• nic

c fi file les

Email Files on:

• Hard drive
• Personal drive
• Shared Drive

Archiving

1S

Sh Shar ared ed Dr Driv ive

• 1. Develop a file structure to include

projects, meeting minutes, commonly shared files, etc.

• 2. Develop a consistent file naming

scheme for folders.

• 3. Assign responsibility to clean out on a

monthly basis.

1S

SET SET IN IN ORDE ORDER

“A place for everything, and everything in its place.”

2S

Se Set in in Or Order der – Wh Why? y?

• Immediately recognize items out of place,

and an excessive or insufficient amount of items. Eliminate time wasted locating items. Improve customer service.

2S

A communication device that tells, at a glance, how work should be done. 1. Where items belong 2. How many items 3. Standard procedure 4. Work in progress There is only one place to put each item.

Vi Visu sual al Man Manag agem emen ent

2S

SHI SHINE NE

“The best cleaning is to not need cleaning.”

3S

• Boost employee

morale.

• Improve health and

safety of employees.

• Develop sense of
• wnership in the office.
• Identify and eliminate

root causes of cleanliness issues.

3S

Sh Shin ine

STAN TANDARD ARDIZE IZE

“See and recognize what needs to be done.”

4S

Stan andar dardiz dize e – Wh What at is is it?

• Makes “Sort,” “Set in order” and “Shine”

habitual.

• Commitment from team members.
• Incorporate 5S into regular work

routine.

4S

SUS SUSTAI TAIN

• Effective, ongoing application of 5S in order

to improve organizational performance.

• Maintaining a commitment to 5S.
• Sustaining improvements is the most difficult

part.

5S

Su Sust stain ain – Proc

• cess

ss St Steps eps

Keep it fun!

• Friendly competition
• Teamwork
• Before and after

photographs

• Positive reinforcement
• Individual recognition or

rewards

5S

Ar Are Y e You

• u Rea

Ready dy To

• Be

Be A A L LEAN AN Lea eade der?

 Become a skeptic who is unwilling to accept either the status quo or the newly defined process that materializes from a Kaizen event. Once in place, it becomes another target for improvement.  An optimist who sees

• pportunity everywhere.

 A critical thinker who relies on substantiating data and information, and never assumes anything.  An analyst who is able to dissect a process down to its core elements.  A modest leader who is never

• verly impressed with success

and is not deterred by failure--- things can always be done better, and usually are, by someone else.  A team player who doesn’t rely

• n himself or herself.

 A servant who is willing to share knowledge for the most important reason….selfless servitude.

“Where there is no standard, there can be no Kaizen.”

• Taiichi Ohno

Vice-President, Toyota Motor Company

STAN TANDARDIZ ARDIZA TION ION

“To standardize a method is to choose out of the many methods the best one, and use it.” “Today’s standardization, instead of being a barricade against improvement, is the necessary foundation on which tomorrow’s improvement will be based.”

No Not Eve Everythi thing g is is a Ka a Kaiz izen en Ev Even ent

Fi Fish shbone Diag bone Diagram am

Wha What is is Kai Kaizen en? ?

• A facilitated, rapid

improvement event.

• Employee-driven

improvements.

“To take it apart, and put it back together in a better way.” Follows Deming’s cycle of Plan, Do, Check, Act (PDCA)

• peration to

• peration

• peration

• peration

Kaizen

When en Sh Shou

• uld

ld You

• u Us

Use e Ka Kaizen? en?

A LEAN Kaizen event aims to systematically improve a process. Pick a process or portion of a process that meets all the following criteria.

Kaizen Criteria:

• Suffers from chronic customer (internal or external

“customers”) complaints or issues.

• Involves medium to high volume of workload.
• Is highly visible to staff or customers.
• Has obvious potential for dramatic improvement.
• Has data already available or that can be obtained.

Det eter ermin mine e When en To U

• Use

e Ka Kaizen en

The ideal process should have the potential of reaching all the following goals after the Kaizen. Kaizen Goals:

• Reduce staff workload and/or reduce product/service

lead time.

• Improve customer (internal or external “customers”)

satisfaction.

• Simplify the process.
• Ensure staff and customer safety.

Ka Kaiz izen en Ev Even ent

• Select Sponsor
• Set Goals
• Determine Team
• Gather data/metrics
• Maps a current

process

• Identifies waste
• Brainstorms

improvements

• Maps future process
• Assigns tasks

3-5 day improvement event:

We Use “Swim Lane Mapping” To Br

• Brea

eak Dow

• wn

n The e Proc

• cess

ss

Three Elements: 1. Time 2. People (job functions) 3. Tasks/Process

Helps us see all components of the process documenting every TASK, DECISION,WAIT,STORAGE, and HANDOFF. We do that by documenting the CURRENT STATE and the FUTURE STATE with…

Sw Swim m La Lane ne Ma Mappi pping ng

Sw Swim im Lan Lane Ico e Icons

DECISION

(Y or N)

Task

Time to Complete (in minutes)

Storage / File

Wait / Delay

Wait Time (in days

• r weeks)

Sw Swim im Lan Lane e Ic Icon

• ns

Handoff

Electronic, phone, or fax

Physical (e.g. passing a paper item back and forth)

Sw Swim im Lan Lane Ico e Icons

Mi Minn nnesot sota a Cou

• unt

nty y Ka Kaiz izen en Ev Even ent

Example of a Kaizen Scope

FOCUS: Improving Septic System Permitting Process

From the point of the first contact by the applicant; whether phone, email, website, in person, etc. To the point the completed permit, after all inspections, is filed in Land Services Office.

Obs Obser ervat ations ions of

• f Cu

Curr rren ent t St Stat ate

What they knew about the current septic process.

Key Points Supported Through Data/Metrics: Long process with many tasks. Zone inspectors are performing repetitive required tasks. Very labor intensive. A lot of hand offs in the recording process.

Bl Blue ue Eart rth h Cou

• unt

nty, , MN MN, , Ka Kaizen en Even ent

Mi Mille lle La Lacs Cou

• unt

nty, y, MN MN, , Ka Kaiz izen en Even ent

Cu Curren ent t & Fu & Future e Proc

• cess

Sw Swim m La Lane ne Me Metrics

76.2 % reduction in total process time!

Re Recom

• mmen

endat dations ions

Issue: The initial application process was lengthy, confusing, and

• ften incomplete

Issue: Contractors were waiting for the permit and the Certificate of Compliance for up to one month

Issue: Multiple onsite visits for inspectors

Issue: Recording document was very time consuming, costly, and of little benefit

What are your ideas for Kaizen

• r 5S Events?

LEAN methods and tools apply to any process where an employee:

USI SING NG LE LEAN AN IN IN YOU OUR COU R COUNT NTY

What could be the benefits in your county?

Using LEAN tools an organization can expect to:

Eliminate or dramatically reduce backlogs. Reduce lead times by more than 50%. Decrease the complexity of processes. Improve the quality of applications and the consistency of reviews or inspections. Allocate more staff time to "mission critical" work. Improve staff morale and process transparency.

USI SING NG LE LEAN AN IN IN YOU OUR COU R COUNT NTY

5S

Strategy Leadership Sustainment Kaizen Training Planning LEAN Transformation

Bu Building ding A A Su Succ ccessfu ful l LE LEAN AN Tran ansfor

• rmat

mation ion

LEA EAN St Stat atewi wide de in in Min Minne nesot sota

Collaborative with the State of Minnesota, Department of Administration, Office

• f Continuous

Improvement. Sponsored multiple three-day “Train the Trainer” sessions. Consisting of one day LEAN 101 training and two day Kaizen facilitator training. New Kaizen experiential training. Development of state website. Increase pool of facilitators and encourage cross county sharing.

Mi Minn nnesot

• ta

a Co Count nty y LE LEAN AN Eff ffor

• rts

ts

Crow Wing County LEAN Video:

http://crowwing.us/MediaCenter.aspx?VID=Lean-for-County-Government-16

Winona County LEAN Impact PowerPoint:

http://www.co.winona.mn.us/sites/winonacounty.new.rschooltoday.com/file s/LEAN_Update_to_Board_04-09-13.pdf

Add Addition ional al Re Reso sour urce ces

LOOK FOR AMC’S LEAN WEB SITE COMING SOON!

The e LE LEAN AN Ph Philosop

• sophy

hy is is Bas ased ed

• n
• n Three

ee Simpl mple e Ten enet ets:

• 1. Be humble enough to see

the need to improve.

• 2. Be courageous enough to

improve.

• 3. Be disciplined enough to

never stop improving.

Con

• ntact

act Inf nfor

• rmat

matio ion

Laurie Klupacs AMC Deputy Director lklupacs@mncounties.org 651-789-4329 Toni Smith AMC Education Director tsmith@mncounties.org 651-789-4335

Q & Q & A