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Lean Six Sigma Webinar Efficient Processes For The Public Sector

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Webinar presentation demonstrating how Lean & Six Sigma are being used in Public Service …

Webinar presentation demonstrating how Lean & Six Sigma are being used in Public Service

e-Zsigma is Canada’s leader in Six Sigma and Lean Enterprise coaching and deployment. Our completely integrated program of in-class and e-learning training, tools, methodology and technology enables you to rapidly customize and implement a quality improvement system and strategy that delivers the results that your Hospital and clients demand.

Our team of world class instructors and practitioners combined with our experience in Healthcare makes e-Zsigma your first choice for Six Sigma and Lean Enterprise strategies.

e-Zsigma is a Canadian based Management Consultancy, specializing in Lean Six Sigma, Project Management, and Supply Chain.http://www.e-zsigma.com

e-Zsigma is the Sponsor for the Canadian Society for Quality http://www.linkedin.com/groups/Canadian-Society-Quality-4233535

e-Zsigma is a partner of the International Standard for Lean Six Sigma (ISLSS) and Manager of the LinkedIn Lean Six Sigma Group http://www.linkedin.com/groups/Lean-Six-Sigma-37987

Follow e-Zsigma Company on LinkedIn http://www.linkedin.com/company/1017597 where you will find a list of our Lean Six Sigma Training and Certification Classes, both online and onsite.

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  • 1. 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
  • 2. 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 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 2 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 3. THE DEMAND CURVE WE ARE FEELING Source: Understanding Canada’s Health Care Costs, Health Canada, 2000 3 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 4. 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 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 4 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 5. SOME OF TODAY’S PARTICIPANTS Financial Services Commission of Ontario Government of Alberta Government of Saskatchewan Government of Yukon 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 5 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 6. SO... WHAT’S KEEPING YOU UP AT NIGHT? 6 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 7. THE 5W2H TOOL 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) 5W 4. Who is impacted? (customers, businesses, functions) 5. When did we first observe the problem? 1. How did we observe the problem? Symptoms 2H 2. How often do we observe the problem? How many defects do we observe? Magnitude and trend. 7 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 8. 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”? Customers bring alignment to cross-functional organizations: What drives purchasing behaviour? What is a defect; what constitutes value for the customer? 8
  • 9. QUANTIFYING NEEDS I hope I don’t have to wait too long to see the doctor! Quantitative: “total minutes lapsed until meeting the doctor” Subjective: “Too Long” 9
  • 10. 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? 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) 10
  • 11. TWO POWERFUL APPROACHES… Six Sigma & Process Variation Lean & Process Efficiency • Describe variation! • Define customer value! • Analyze it! Y = f(x) • Identify waste! • Reduce it! • Eliminate waste! • Control it! • Increase flow of value! Example • wait times Reduced Reduced • cost variation average • handling • minutes, hours, days… After Lean Before Lean 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 Before 6S After 6S Predictable, Controlled, Capable Efficient, High-Value, Low Cost Breakthrough Improvement! 11
  • 12. 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 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” 12 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 13. LEAN 101: FIVE PRINCIPLES OF LEAN 13 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 14. 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 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”) 14 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 15. NON-VALUE ADDED: WASTE Waste is defined as anything that does not add value for the customer. “Lean Thinking” requires an organizational culture that is intolerant of all forms of waste. The goal of Lean is to banish waste. 15
  • 16. 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 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 16 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 17. LEAN 101: MAKING WASTE MORE VISIBLE Process Flow Maps Spaghetti Diagrams Value Stream Maps Cause and Effect Diagrams Five “Whys?” Pareto Charts Workplace Organization 5S (Sort, Set, Shine, Standardize, Sustain) Visual Workplace Process Reports, Audits and Assessments 17 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 18. LEAN 101: PROCESS MAPS 18 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 19. LEAN 101: SPAGHETTI DIAGRAMS 19 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 20. LEAN 101: VALUE STREAM MAPPING • Current state? • Future State? Observing the process, Capturing data & Looking for waste…. 20 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 21. LEAN 101: CAUSE & EFFECT 21 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 22. 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 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?” 22 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 23. LEAN 101: PARETO CHARTS 23 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 24. 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 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. 24 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 25. 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. 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. 25 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 26. EXAMPLE: VISUAL WORKPLACE “Access to information and tools to do the job” 26 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 27. 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 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! 27 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 28. LEAN 101: ELIMINATE WASTE BY… • Reduction/elimination of batches • Five S – Visual Workplace • Single piece flow • Quick Changeover • Continuous flow • Standardized Work • Improved process control • Andon System, Pitch • Reduced process variation • Materials replenishment • Faster reaction to problems • Kanban, FIFO • Shorter lead times • Supermarket Pull System • Reduced forecasts • Total Productive Maintenance • Takt time and demand leveling • Cellular Design/Layout • Just in Time • Work cells • Touch once principle • Error Proofing • “Pull” systems design • Kaizen improvement events 28 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 29. BUT… LEAN REQUIRES CULTURAL TRANSFORMATION! Lean strategies fails as a result of not recognizing this key element for success. 29 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 30. 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 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 30 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 31. SIX SIGMA 101: THE IMPORTANT QUESTIONS 1. Do I fully understand the customer requirements? 1 (Target and Tolerance) 2. How much variation is in the process I use to meet 2 my customer’s needs? 3. How well does my process meet my customer’s needs? How often? What is the impact on Cycle 3 time? Safety? Customer Satisfaction? 4. What are the root cause(s) of the process variation? 4 Y = F(X1..Xi) 5. Can I reduce variation within the process to reduce 5 the defects? (If not, get a new process.) 6. Can I center the current process on target? 6 31 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 32. 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. 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 32 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 33. SIX SIGMA 101: THE HIDDEN FACTORY No matter how hard we try we Just can’t seem to catch all the Service Step 1 Good? Step 2 Good? Mistakes and errors. Ooops! There goes another one. Let’s Delivered Try harder. Let’s double inspect. Correct Analyze Correct Analyze The “Hidden Factory” Extra cost? Delays? Customer Satisfaction? Frustrated Personnel? Risk?... 33 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 34. LEAN SIX SIGMA 101: ROBUST “TOOL BOX” Define Phase – Key Tools •VOC (Voice Of the Customer) •Cost of poor quality •“Critical To” Tree (CT Tree) Define •Project scoping and problem statement •Change management •High level process map •Team identification •Project contract Measure Phase – Key Tools •Process Mapping (including SIPOC) •Control Charts Basics •Binomial Distribution Statistics •Rolled Throughput Yield (RTY) •Measurement System Analysis •Graphical Analysis and Techniques •Basic Statistics (MSA) •Data Collection Plan Measure •Central Limit Theorem (CLT) •Process Capability •Failure Mode & Effects Analysis (FMEA) •Cause and Effect (C&E) Matrix •Cause and Effect (C&E) Diagram Analyze Phase - Key Tools •Advanced Graphical Analysis •Statistical Analysis •Confidence Intervals oMulti-Vari Studies oHypothesis Testing •Power and Sample Size oMain Effects Plots Means Analyze oInteraction Plots Variation Chi Square Non-normal data oCorrelation Proportion Analysis of Variance oRegression Counts Analysis of Means Improve Phase - Key Tools •Modeling Designs of Experiments •Robust Design of Experiments •Screening Design of Experiments Improve •Response Surface Design of •Survey Design of Experiments •Multiple Regression Experiments Control Phase – Key Tools • Process Control Plans • Mistake Proofing • Statistical Process Control Control • Gage Control Plans • 5S • Business Case Simulation Exercise • Preventative Maintenance Control Plans • Standard Operating Procedure 34 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 35. 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 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 35 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 36. 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; Government of New Brunswick • Lean Six Sigma Strategic Deployment Government of Alberta • On-site Lean Six Sigma Training Government of Saskatchewan • Lean Six Sigma Project Management Health Canada • Open Enrollment (Public) Training • Process Design, Modeling & Simulation Ministry of Transportation • Master Black Belt Project Coaching Service Canada & Mentoring Office of the Auditor General • Lean Six Sigma Certification WSIB • Comprehensive e-Learning Program 36 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 37. 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 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 37 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 38. COURSE OVERVIEW The Five Key Principles of Lean Data Collection and Sampling techniques Value-Added Assessment Graphical Tools for Process Analysis 8 Sources of Waste & Tools to Identify Assessing Process Capability Waste Process Analysis and basic statistical tools Introduction to Six Sigma DPMO and Process Variability Risk Analysis (FMEA & FTA) DMAIC Problem-Solving Methodology Rapid Process Changeover Basic Quality & Process Management Work leveling, cellular layout, flow & Kanban Tools Visual Workplace and Standardized Work How to Successfully Lead a DMAIC Facilitating Kaizen events Project Workplace organization (5S) Critical Quality and SIPOC analysis Value Stream & Process Mapping Error-Proofing Techniques Cause & Effect and Root Cause Establishing and maintaining process Analysis management controls Pareto Analysis 38 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 39. COURSE OVERVIEW 39 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 40. 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. 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. 40 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010
  • 41. CONTACT INFORMATION E-Zsigma (Canada) Inc. One Dundas St W, suite 2500 Toronto, ON www.e-zsigma.com O: 416.593.8026 F: 416.204.1939 Thank you for joining us today! 41 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010