4. GOVERNOR GARY HERBERT’S VISION FOR UTAH
Utah will lead the nation as the best performing economy
DWS MISSION STATEMENT
We strengthen Utah’s economy by supporting the
economic stability and quality of our workforce
DWS COMMITMENT TO UTAH TAXPAYERS
To provide quality, accountable, and streamlined services
that connect a world-class workforce with meaningful
employment
7. THE PERFECT STORM
• “The Great Recession”
• State budget reductions
• New computer system
8. THEORY OF CONSTRAINTS
• Founded by Eli Goldratt and Bob Fox
• Made popular by “The Goal” in 1984
• Initially focused on manufacturing systems
(drum-buffer-rope) and often
still seen as a production
methodology
• Process for improving
complex systems
10. THE FIVE STEP TOC PROCESS
1) Identify the constraint
2) Decide how to squeeze the most out of
the constraint
3) Subordinate other areas to the
constraint
4) Elevate the constraint
5) Go back to step #1
11. INTEGRATED, TOC,
LEAN AND SIX SIGMA
FOCUS
TOC
ROADMAP Throughput Operating Strategy
LEAN SIX SIGMA TOC APPS
• Kaizen • Analysis • Throughput
MAKING IT • Value Stream • Tools Rounds
HAPPEN Mapping • DMAIC • Critical Chain
• Tools • Logical Thinking
Process
12. THEORY TO ACTION:
THE PUBLIC SECTOR
Decrease
Operating
Expenses
Deliver continuously
Increase
improving services at
Quality
lower costs
Increase
Throughput
16. KEY LEVERS
• The key areas for improvement that will have the
biggest impact on performance:
• Employee success
• Pay for Performance
• Co-production and automation
• myCase
• Customer education
• Workflow management and production control
17. PAY FOR PERFORMANCE
• Pay for Performance is an employee incentive program
designed to provide bonus money to top performers
• In order to participate, employees must meet minimum
performance standards ,as well as additional accuracy
standards and workload volume
• Employees participating in the Pay for Performance
program are required to sign up and there is an annual
limit on how much employees can earn
• Employees are paid bonuses monthly based on the previous
month’s work
18. MY CASE
• myCase is DWS’ online customer portal
• Customers can find benefit information on myCase, as well as
complete their reviews, report changes, and read notices
• myCase automatically enters information into DWS’ eligibility
system, thus eliminating the need for staff intervention and
entry
• Since myCase was launched, there have been more than 5.1
million visits to the site
• More than 111,000 changes have been reported online
• More than 66,000 customers have completed reviews online
• Almost 1 million notices have been read through myCase
• More than 44,000 applications have been completed through
myCase
19. RESULTS
• Cost per determination DECREASED
• From $57.66 down to $36.91 (Target = $31.86)
• Quality INCREASED
• From 90% up to 94.7% accuracy rate (Target = 95%)
• Call wait times DECREASED
• From 22 minutes down to 7 minutes
(Target = All calls answered under 15 minutes)
• Days to determination DECREASED
• From 16 down to 14 days (Target = 12 days)
• Determinations per FTE INCREASED
• From 5.0 up to 6.7 (Target = 8.5)
21. SUCCESS FRAMEWORK
Set measurable goals and targets
Use thinking tools and principles
Create your system
Create your organization
Engage staff at all levels
Synchronize policy and projects
Stay focused
22. SET MEASURABLE GOALS
AND TARGETS
Throughput
Thinking
Unit
Measures
Set Measurable Goals
and Targets
Translation
Targets
Dashboards, Savin
gs Ledgers
24. DASHBOARD
Most Recent Results
Measure Baseline Target
Month Quarter
ESD Original 2011 Jul-12 2012-2
≤ $31.86
≤ $31.86
Cost per determination $57.66 $39.26 (FTE Reduction - $36.91
(FTE Reduction - 119)
119)
Performance Review Team 94.4%
90% ≥ 95% ≥ 95% 95.3%
Accuracy (Oct ’11 - Jun ‘12)
Days to determination ≤ 12 days ≤ 12 days 14 days
≥ 8.5
Determinations per FTE/day 5.0 6.5 ≥ 8.5 determinations 6.7
determinations
Average Wait Time ≤ 15 minutes ≤ 15 minutes 8 min 19 sec
Touch Time In progress In progress In progress In progress
25. DASHBOARD
Most Recent Results
Measure Baseline Target
Month Quarter
WDD Jul 2011 - Mar 2012 Jul-12 2012-1
Cost per placement (all) $189.69 In progress
Cost per intensive placement $1,055.15 In progress
Cost per mediated placement $175.08 In progress
Cost per self-service placement $8.34 In progress
86% (Sep 2010 –
Performance Review Team Compliance ≥ 90%
Jun 2012)
Total placements per quarter 47,057 (Jan 2010 - Mar 2012) ≥ 50,000 62,910
Placements per FTE 81 In progress
Training related placements In progress In progress
Self-service placements 24,256/51.5% of all placements In progress
Market share of employers 14.7% (Jul 2010 - Sep 2011) ≥ 16.2% 14.9%
Total case-managed employment closures 58.2% (Jun 2011 - May 2012) ≥ 70% 69.4%
Training completion rate 39.9% (Jul 2011 - May 2012) ≥ 50% 34.1%
Total TA closures for employment 41,406 (Jan 2011 - Dec 2011) 50,000 per year In progress
26. USE THINKING TOOLS
Root Cause
Analysis
TOC Five
Steps
Use Thinking Tools
Reduce
Multi-tasking
Full Kit
28. MULTI-TASKING
• Multi-tasking significantly lengthens lead times,
reduces overall throughput, and masks the
presence of available capacity
• Starting tasks earlier doesn’t lead to earlier
finishes, but instead leads to later finishes
• Individuals cannot prevent the efficiency losses
of bad multi-tasking
• Reducing the number of open jobs (WIP)
reduces the pressure to multi-task and
significantly accelerates completions
30. CREATE YOUR SYSTEM
Develop Throughput
Operating Strategies
Strategy
Containment
Create Your System
Key
Levers
Capacity
Flow
31.
32. CREATE YOUR ORGANIZATION
Administrative
Framework
Reduce
Layers
Create Your
Organization
Increase Spans
Of Control
Administrative/
Operational Ratios
33. ENGAGE YOUR ORGANIZATION
Publish
TOS
TOC
Training
Engage Your
Organization
Throughput
Rounds
Pay for
Performance
34. WHAT ARE
THROUGHPUT ROUNDS?
• Regular, short, stand-up meetings to link the frontlines
to the improvement process (daily, weekly, TBD)
• Led by a supervisor with a team
• The TOS is the focus of the meetings
• We want everyone to compare how things are actually
going to the TOS and identify where there are gaps
and generate ideas and strategies for closing those
gaps
• We want to keep everyone thinking in a throughput
mindset and keep them mindful of the TOS and
metrics
• It is also a communication link for systematic changes
being made and for filtering good ideas upward to be
spread to other teams
35. SYNCHRONIZE POLICY
AND PROJECTS
Align policy and IT
around strategy
Eliminate misaligned
projects/policy
Synchronize Policy
And Projects
Gatekeepers/
Portfolio
Critical Chain/
Agile Development
37. WHAT ARE TIGER TEAMS?
• Weekly meetings focused on driving swift and
substantial improvement to work the lever of an
operation
• Teams consist of:
• Manager of the area
• Supervisors of the area
• Select staff members responsible for parts of the process
• Other players identified as important in delivering
improvement
• Facilitated by an internal or external expert
• Weekly meetings are held for 2-3 hours
• The initial meeting includes some TOC training and thus
is longer
38. STAY FOCUSED
Executive Meeting
Management
Lever
Control
Stay Focused
Recognition
Stakeholders
