Sandwell LEAN experience saves £1.5 million over 3 years

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Irfan Choudry, Group Manager, Highways Assets, Sandwell Metropolitan Borough Council

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Sandwell LEAN experience saves £1.5 million over 3 years

  1. 1. THE SANDWELL LEAN EXPERIENCE IRFAN CHOUDRYService Manager - Highways 4th May 2012
  2. 2. This presentation will look at:Reasons For Sandwell Joining the LeanprogrammeThe Sandwell ProjectThe initial WorkshopKey IssuesRe-design of The SystemBenefits Achieved
  3. 3. Reasons For Sandwell Joining the Lean programme• Highways division was facing considerable financial pressures• Achieving efficiencies of £1.5M• A major reorganisation of the Highways Division structure• Didn’t fundamentally challenge how functions operated• Nor did it change the culture of those working within the system• Improvement and Efficiency West Midlands (IEWM) had initiated a Highways Improvement Programme• Early in 2011 Sandwell Highways submitted a business case
  4. 4. The Sandwell Project• The nine months project commenced in February 2011• Backing of senior management and political members• Focused on challenging and improving the current operations around: • Highways Maintenance • Assets Management • Street Works • Traffic management • Licensing, permits, enforcement • Footway crossings • Street scene inspections
  5. 5. The initial Workshop• One week workshop involved all team members• Examined end to end processes from a customers’ perspective.• Based on data rather than assumption or perception
  6. 6. The initial Workshop• One week workshop involved all team members• Examined end to end processes from a customers’ perspective• Based on data rather than assumption or perception• Identify which elements in the flow were “waste” which were of “value”• Understanding the system in terms of what worked well and what got in the way of service delivery
  7. 7. Key IssuesIdentified as getting in the way of performance were:• Excessive waste & significant processing within the system
  8. 8. Potholes•Resident phone to report it•Member of staff would take call•Record it – write it down•Email to Highways engineer•Highways engineer send a request for inspection to have a look, to determine itwas a pothole•Inspector visits, yes it’s a pothole•Inspector notifies Highways Maintenance Depot•Administration Clerk records the request passes to Highway Supervisor•Highways Supervisor writes work ticket and gives it to operatives to undertakerepair (fill pothole)•Operative completes work on ticket, hands ticket back to supervisor at end of day•Supervisor records job complete•Supervisor notifies Highways Engineer at end of week•Job is then closed and entered onto database13 transactions to fill a pothole•Excluding the cost of filling the pothole, each request for a reported pot holecosts circa•£50.00 in non productive processes x 3000 requests per year•= £150K non productive time.
  9. 9. Key IssuesIdentified as getting in the way of performance were:• Excessive waste & significant processing within the system• Lead times were excessive due to multiple handling• Incorrect information flowing through the system• Customer calls answered in a multitude of locations• Defects in the roads (e.g. potholes) were not always fixed once
  10. 10. Key IssuesIdentified as getting in the way of performance were:• Excessive waste & significant processing within the system• Lead times were excessive due to multiple handling• Incorrect information flowing through the system• Customer calls answered in a multitude of locations• Defects in the roads (e.g. potholes) were not always fixed once• Lack of coordination between Street Works and Traffic Management activities• Utility companies were seen as an income generating opportunity• The enforcement activity- developed into one of confronting individuals and businesses• Significant relationship issues existed between individuals within the group- LACK OF TRUST
  11. 11. The Purpose:• The deep rooted relationship issues within the group had a potential of derailing the whole process• Participants were encouraged to come up with a single statement defining the purpose of the systemThe Purpose “Provide a safe and available road network” and that if problems occurred, customers wanted them to be resolved as quickly as possible.
  12. 12. Re-design of The SystemThe plan initially focussed on the following areas:• The identification and fixing of highways defects once first time
  13. 13. Re-design of The SystemThe plan initially focussed on the following areas:• The identification and fixing of highways defects once first time• Reducing unnecessary inspection from utility companies work• Creating a trial of taking highways calls through the corporate contact centre• Reducing the number of visits to the same street for different activities
  14. 14. Benefits AchievedEnormous benefits for both customers and the Council•Working on “Right First Time Principle” on average only one visit perpothole instead of 2-3 visits.•Average cost to repair a pothole has reduced by 40%The call centre benefits:  have been single known access for customers  improved customer experience demonstrated by 93% customer satisfaction level and 75% of calls received are answered first time less disruption for highways staff which has released time to focus of service delivery•Greater consistency in response times, quality of repairs, almost 100%removal of repeat and abortive visits•Improved team moral with a realisation that we all can make a difference•Cost savings of £500k per annum are being achieved through measuresimplemented through the LEAN process
  15. 15. Thank youAny Questions?

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