City of Salina-Salina Gets Serious About Performance Efficiencies Presentation.

1. SALINA
GETS
SERIOUS
About
Performance
Efficiencies

2. OUR VISION
to be “best in class”
An ethical
organization
al culture
A performance
environment
with seamless
implementation
Open,
multidimensional
communication
Ingenuity
Being
the “place
to work”Employee
capacity
building
A customer
service
environment

6. IMPACT
of the
Great
Recession
.

11. INTRODUCTION
to Lean Six Sigma.

13. LEAN AND
SIX SIGMA
Methodologies
.

14. CONTINUOUS
PROCESS
IMPROVEMENT
Methodology
.

15. City of
Salina
CPI Model
Engage everyone in eliminating waste
Engage management in applying lean principles
Use small
teams of
experts to
work on high
impact
projects
Create
efficient
processes,
and identify
workload
requirements
L
e
a
n
CONTINUOUS
PROCESS
IMPROVEMENT
Hybrid Model Approach

16. #1 CPI
BASICS
Create
Efficient
Processes
By eliminating non-value
added tasks and
maximizing efficiency

17. The Foundation of
Process
Improvement
Frederick W. Taylor -- 1911
Wrote “Principles of Scientific
Management” which introduced time
studies, standardization of tools and
implements, standardization of work
methods, instruction cards for
workmen, task allocation…”
Henry Ford -- 1927
“To standardize a method is to
choose out of the many methods the
best one, and use it.”

18. “You may have any
color of car you
want, as long as it ‘s
black”
Henry Ford

19. Each process is documented, standardized,
and the annual baseline workload identified
Pure Production Time =
the sum of the Time Per
Task without any
interruptions, etc.
Takt Time = Pure
Production time, plus
allowances for breaks,
training, interruptions,
etc.
Document Each Process

20. Improve the Process
After identifying waste improve the process
and update the process documentation form
Every Process Documentation Form
is reviewed and improved, in any
way possible.

21. #2 CPI BASICS
Identify
Workload
Requirements
For every process,
position and work unit

22. Sealing Cracks
in Pavement
Takt
Time

23. • Takt time per square yard=0.01562 hours or 0.02819
hours per pound of materials
• Pounds per year (2013)=21,475
• Annual takt time estimate for a five man crew
=605 hours or 15.1 days
• Cost per pound = $1.56
Sealing Cracks in
Pavement Surfaces

24. Takt
Time
for
Government
The estimated
amount of time it will
take to complete an
entire process,
including allowances
for breaks, training,
routine interruptions
and etcetera.
It is a sample of work
performed which can
be used to estimate
annual workload
requirements and
establish a baseline
to compare
improvements against.

25. WORKLOAD
FORMULA
EXAMPLES:
• Prepare news release
• TT = 4.48 Hrs X 50 = 224 Hours Annually
• Reconcile credit card statements
• TT = 2.37 X 12 = 28.5 Hours Annually
• Process applications for sign permits
• TT = 1.67 Hours X 74 = 123 Hours
Annually
• Process special event permit requests
• TT = 5.4 Hours X 48 = 202 Hours Annually
• Pickup and process found bicycles
• TT = 1.08 Hours X 80 = 86.5 Hours
Annually
Takt time X frequency per year=annual estimate

26. Workload
Requirements
(one position)
Police Department Records Clerk
Community Service Technician
Central Garage Specialist
Accounting Clerk
Outreach Specialist

27. Workload Requirements
-Accounting Clerk
Admin / Clerical Account Clerk II - Central Garage (as of 8/2/13)
Number
Process Documentation
Summary
Pure
Time
(Min)
Takt
Time
(Min)
Frequency
Annual Takt
Time (Hrs)
790.100.001 Payroll 26 32.5 26 14.1
790.100.002 Poll Fuel Site 27 33.75 249 140.1
790.100.003
Repair Orders & Shop Time
Records
14 17.5 249 72.6
790.100.004 Fuel Delivery 7 8.75 52 7.6
790-100-005 Changes to Fleet Databases 17 21.25 25 8.9
790.100.006 VISA Accounts Payable 115 143.75 24 57.5
790.100.007 Customer Service 75 93.75 249 389.1
790.100.008 Office Janitorial 15 18.75 52 16.3
790.100.009
Training, Meetings & Office
Coverage
150 187.5 12 37.5
790.100.010
b
Monthly Report 153 191.25 12 38.3
790.100.011 KDHE Monthly Inform Reports 7 8.75 12 1.8
790.100.012 KDHE Annual Inform Reports 75 93.75 1 1.6
790.100.013
Changes to Fuel master
Database
30 37.5 12 7.5
790.100.014 NON-VISA Accounts Payable 30 37.5 52 32.5
Total 741.0 926.3 ─ 825.1

28. Workload
Requirements
-Work Unit
It was determined that the workload for this work
unit at the Landfill, required a staff of seven
employees.

29. #3 LEAN
Engage
Everyone
in Eliminating
Waste

30. TRAINING WITHIN
INDUSTRY
 Use standard operating
procedures
 Eliminate all forms of
waste
 Involve employees
in making improvements
 Do it right the first time
 Train employees
thoroughly
B-24 Liberator Bomber

31. Types
of
Waste
Motion
Any wasted
motion to pick up
parts or stack
parts. Also wasted
walking
Inefficient
Processes
Doing more work
than necessary
Defects/
Mistakes
repair or rework
Waiting
Any non-work
time waiting for
tools, supplies,
parts, etc.
Inventory
Maintaining
excess inventory of raw
materials parts in
process, or finished
goods
Over
Production
Producing more
than is needed
before it is
needed
Taiichi Ohno’s
Original 7 Muda
Transporting
Wasted effort to
transport materials,
parts, or finished
goods into or out of
storage or between
processes

32. WASTE IN
GOVERNMENT
W-MEDIATE
 Waiting
 Mistakes
 Excess movement or motion of workers
 Do it right the first time
 Inefficient processes
 Always do the right thing
 Transporting work or materials
 Excess inventory

33. #4 LEAN
Engage
Management
in Applying
Lean Principles

34. MAJOR TENANTS and supporting
strategies of Lean in government
Every point of
view is
important
Treat the
entire
organization
as one
system,
eliminate
silos
Create an
effective 6S
program (Sort,
Set in Order,
Shine, Safety,
Standardize,
Sustain)
Minimize
processing
time –
create a
continuous
flow system
Create a
vision
Use everyone’s
talents, skills,
and knowledge
to the fullest
extent?
Use a JIT
inventory
system, and
pull inventory
as it is
needed
Build quality into
the system -
Mistake proof
processes
VOC -
solicit
feedback
through
interviews,
surveys,
focus
groups, etc.
Schedule
opportunities
for
improvement
Use the right
employees, and
the right
number of
employees
Use work cells –
minimize your
steps, cross-train
employees,
share resources
Take action
and learn
from your
mistakes
Level the
workload
Implement TPM
(Total Productive
Maintenance)
Take frequent
Gemba walks
- Go and see
-
Measure
outcomes that
drive the right
behaviors
Celebrate
success
Use visual
displays
Labor Utilization Suppliers Efficient Processes Customers Mgt Habits

35. #5 SIX SIGMA
Use Small Teams of
Experts to Work on
High Impact Projects

36. SIX SIGMA
Certify key employees as CPI GREEN BELTS
that can serve as members on Lean
Design, process improvement teams.

37. SIX SIGMA
CERTIFICATION
Pass exam on frequently used CPI tools
Pass profiiecency interview
Complete required number of projects including
one high impact project

38. THE
INTENDED
Outcome

39. CREATE A
CULTURE
OF CONTINUOUS
IMPROVEMENT
Where all processes have been standardized
and improved
Where workload requirements are known for
every process, position and work unit
Where employees routinely contribute to
improving processes
Where management applies lean principles
Where high impact projects are focused on by
small groups of highly trained employees
Where combined results create an efficient and
effective city government

40. Documented &
standardized
728 processes
Identified
workload
requirements
for 14
positions
Reduced five
positions
SUCCESSES
& Projections

41. SALINA
2014 YTD
Results
0
20
40
60
80
100
120
140
160
180
2012
2013
2014 YTD
24
88
165
# Improvements Completed
277 Total

42. SALINA
2014 YTD
Results
0
1000
2000
3000
4000
2012
2013
2014 YTD
222
1,538
3,739
Increased Capacity
5,277 Hours Total

43. SALINA
2014 YTD
Results
(2014 only)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Ongoing
Scheduled
Savings
identified this
year
One Time
Savings/Cost
Avoidance
Total Savings
Identified 2014
Goal
$126,831
$302,801
$429,632
$350,000

44. SALINA
2014 YTD
Results
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2012 2013 2014 2015
2016
2017
2018
$8,456
$68,587
$429,632
$619,161
$329,161
$559,161
$619,161
Anticipated Savings
Over the Next 5 Years
$2,633,319

45. CHALLENGES
 LSS is not for government-
presumed to be for manufacturing
only
 Time and resources
 Unsure of outcomes
 Financial operational challenges are
not bad enough
 Focused use of LSS tools
 Application in an organization
 Culture

46. TIPS
 Always use the tools! (start with
basic tools only)
 Pay attention to organizational
feedback and culture
 Balance time and resources
 Focus from the bottom up
-involve everyone
 Be patient
 Communicate with sensitivity
 Ask for help
 Celebrate your accomplishments

47. TAKEAWAY
 LSS is in local government and will
quickly spread
 LSS results in saved time, saved
money, employee engagement and
functional training
 Efficiency is not measured by
confidence or local government wealth
 Success requires a legitimist effort
 Local government owe this “effort” to
our electorate before applying
significant increase or service cuts

48. QUESTIONS &
ANSWERS

49. FOR MORE
INFORMATION
Jason Gage
jason.gage@salina.org
785-309-5700
Bryon Johnson
bryon.johnson@salina.org
785-309-5700