2. Objectives for Today
County Executive Office
Learn how to achieve the greatest value for your
customer through continuous process improvement
Learn how Lean Six Sigma can lead to improved
organizational performance
Gain a basic understanding of Lean Six Sigma tools
and principles
3. Employees County Executive Office
Solutions
1. More employees
2. Improved employees
• Training
• Multitasking
• Incentives
• Accountability
3. Customers have to wait
Process • “Manage”
Complaints expectations
•What took so long?
• Can’t you go any faster?
• Who dropped the ball?
Customers
9. Traditional Response County Executive Office
Cut hours
Cut people
Cut services
Cut programs
Across the board budget cuts
Hiring freezes
Travel restrictions
The illusion of numbers
10. Problem with Traditional Response County Executive Office
Staff overwhelmed trying to get through
the same system with less people.
Can’t get the outcomes needed by doing
what we have always done.
11. Introductions
County Executive Office
Introduce yourself.
If your team knew how to find time or
money through process improvement:
What would you do with the extra time?
What would you do with the extra money?
12. County Executive Office
Service Excellence Program
Objective
Encourage a county-wide culture of service
excellence, continuous improvement and
empirically based decision making as a
means of improving quality, consistency,
speed and cost of County Services.
14. Lean Government Exchange County Executive Office
Des Moines, Iowa 2009 and beyond
• Iowa • Hawaii • City of Appleton, WI
• Minnesota • County of Ventura, CA
• Vermont
• Kentucky • City of Cape Coral, FL
• Georgia • City of Fort Dodge,
• Kansas
• Delaware • Washington, Iowa
• Ohio DC • Shasta County, CA
• Toronto • California • Los Angeles County
• Arkansas • Arkansas DPSS, DCSS
• Alabama • Kitsap County,
• Colorado
• Nebraska Washington
• Connecticut • Cal State Channel
• New Hampshire
• South Carolina • Maryland Islands
• Illinois • Rhode Island • RTC, Washoe County,
• Oregon • Washington Nevada
• Oklahoma • CalPoly, SLO, CA
14
15. Where is CPI Applied County Executive Office
Environmental permits / Air Quality / Wastewater/Floodplains /
Landfills / Manure management
Corrections - Offender Re-entry /Forensics
Procurement
Board of Medical Examiners Investigatory process
Veterans Home Admissions / Medical Appointments / Medication
Administration / Pharmacy
Patient flow / Hospital discharge/Health facilities
Human Services processes and services
Animal Services
Child Abuse Appeals / Foster Child placement across state lines
15
17. Get the Scoop County Executive Office
PWA and GSA optimizing their heavy equipment tracking
and eliminating the need to purchase this equipment.
1 Grader = $225,000
1 Roller = $ 54,000
1 Backhoe = $150,000
$429,000
Breaking down silos and having teams
constantly thinking of ways to save. Priceless!
18. Sheriff Forensics Dry Drug Analysis County Executive Office
THEN NOW
• 64 days to complete • 17 days
• Backlog over 200 cases • Backlog down 50%
• Productivity up – more
cases per scientist
20. Mean Number of Days to Process Planning County Executive Office
Director-Approved Discretionary Permit Applications
Baseline Metric: New Metric:
Average Processing Average Processing % Change in
Permit Type
Time (days) Time (days) Processing Time
Planned Development
Permit
285 101 64.6%
Minor Modification Permit 251 119 52.6%
Parcel Map Waiver/Lot
Line Adjustment
191 83 56.5%
Parcel Map Waiver
Merger
102 39 61.8%
20
21. Canal Clean Up County Executive Office
Cost Savings – by eliminating over processing
$600,000 – re-purposed to canal repairs
22. High Level Y: Critical to Process - Disposition
Inputs (X's)
Controlled/Not controlled
X Applications (9)
Process Step
(Activity)
Outputs (Y's)
Y Information or Product
SIPOC
Type Noise Receive Requests
for Apps (5) County Executive Office
X C opy of Apps -3
Type
X C ustomer Application Form 9
C ontrollable Receive and
Process
Y Processed and Accurate Application
The SIPOC map provides a means
to further clarify which of the
Type Noise Applications (5)
X Notificationof Hearings 9 Y Final App in Portal and Filed
Type C ontrollable
Enter Data (5)
X Software and internet -3
Type
X C ompleted Apps 1
Noise Distribute Apps
Y Distributed Apps
inputs have the greatest “push”
on the outputs.
(3)
Type C ontrollable
X Hard C opy Apps - 1 Y Application Image
Type Noise
Scan (1)
X Hard C opy Apps -9 Y Accurate Electronic Data
Type Noise Input and
X Info - Electronic and Hard copy 3 Reconcile Data
Type C ontrollable into STAR (5)
X Application Assignment Sheets 1 Y Work Item, Electronic List of C ases
Based on this ranking system, the
Type C ontrollable Assign Appriaser
X Site Lode List (1)
Type C ontrollable
following processes had the greatest
X C ontact Information 1 Y Hard C opy for Apprisers
Type Noise Create Folders Y C entral Repository
and Central
Maintenance (5)
Prepare Appraisal
(2)
Y Decision
impact:
X Recommendation Information 9
Type
X Forms 9
C ontrollable
Communication to
Applicant
(Stipulation,
Y Resolved C ases or Hearing
•Receive requests for application
Type C ontrollable Withdraw, option
for Hearing) (5)
X List from Renee 9
Type C ontrollable Provide Memo to
Set Hearing to
Y Hard copy of memo to set •Receive and process applications
COB (5)
X Secured Property Database 1
Type
X Memo 9
Type
C ontrollable
C ontrollable
Receive Memo of
Hearing and
return
confirmation to
Y List of Apps to Schedule for Hearing
•Enter data (Clerk of the Board)
Assessor's office
(5)
X C ompleted Application 9
Type
X Assessor's Memo to Set 9
C ontrollable
Notification of
Hearing to
Y Letter Package
•Reconcile and enter into Star
(Assessor)
Applicant/Agent
Type C ontrollable (4)
X Blue C ard 9 Y Final Decision
Type Noise Board Hearing
X Agenda 3 Preparation
Type Noise Process (5)
X Supplies 3
Type
X Applications 3
Type
C ontrollable Coordinate Board
C ontrollable
Hearing (4)
Y Agenda
•Communication to Applicant
•Memo to set processes
X Agenda 1 Y Record of Meeting
Type C ontrollable Attend and Clerk
Hearing (2)
X Board Decision 0 Y C losed C ase
•Assessment Board Hearing
Type Noise Close Out Process Y Updated STAR
X Summary and Disposition 9 (4)
Type Noise
X Summary and Disposition 9
Type C ontrollable Close Out Process
(4)
Y Summary
Y Minute Orders
Y C losed C ase
Y Updated Portal
preparation process
23. Admin Side – Current State County Executive Office
Swimlane Map 1 of 2
24. County Executive Office
COB CURRENT STATE (Swimlane Map 2 of 2)
Total Steps 92
Min. Touch Time/Hours 55.46 Max Touch Time/Hours 73.31
Min. Process Cost/ 1 Appl. $2,723.70 Max. Process Cost/ 1 Appl. $3,592.40
Minimum Cycle Time/Days 136 Maximum Cycle Time/Days 218
(Admin only)
25. Admin Side - Future State County Executive Office
Metric (Admin only) Current State Future State Difference
Total Steps 92 45 -47
Average Touch Time 64 hours 23 hours -41
hours
Average Cost/Appeal $3,158 $1,152 -$2,005
Average Cycle Time 177 days 77 days* -100
days
* 70 days required for notifications and responses
26. Found Money in Infrastructure
County Executive Office
GSA Project Management Fee
reduced from 12.5% to 9.9%
Cost Savings - $480,000
Cost Savings - $600,000
Annual Savings - $350,000
…and growing
27. County Executive Office
BASIC CONCEPTS OF LEAN
SIX SIGMA
“It’s never too late to become what you might have
been.” – George Eliot 27
28. Origin of Lean
County Executive Office
Japan – post WWII – struggling economy
Edwards Deming – Quality guru
Brought radical ideas not yet implemented in America
Acceptable quality level. cost/quality not a trade off
Daily incremental improvement (everyone involved).
Don’t seek perfection…yet (80/20).
Focus – Don’t improve work, eliminate waste
29. Focus County Executive Office
Focus can help you see more clearly.
30. Paradox County Executive Office
We can accomplish more,
by doing less.
31. Lean Six Sigma is . . .
County Executive Office
A Combination of two schools of thought:
1. “Lean” - eliminating waste, creating process steps
that add value to the customer
2. “Six Sigma” - reducing variation to ensure a
standard, quality output
32. Cycle of Lean Principles
County Executive Office
Seek Specify
Perfection Customer
Value
Identify and
Remove
Waste=
Establish Identify
“Pull” SPEED Value Stream
Achieve
Flow
33. Knowledge Work 8- Wastes Product Work
Work not meeting requirements.
Defects
Scrap, rework, lost capacity due to
County Executive Office
Missing information. Rework. mistakes, inaccurate SOP’s.
Too many reports, reviews, approvals.
Overproduction
Running equipment to keep equipment
Batching paperwork. and people busy.
Waiting for meetings to start.
Waiting
Waiting for equipment, people or
Information, paperwork and process to cycle, waiting for materials
approvals. and tools.
Over or under staffing, talents not
Non utilization of
Over or under staffing, talents not
utilized, work load not balanced. utilized, work load not balanced.
people/talent
Paper- based data vs. electronic
Transportation
Long travel distances, unplanned
transfers. Routing of unnecessary premium postal.
approvals/processing.
Excessive backlog of work to be
Inventory
Making what we can instead of what
processed. Too much paper to be customers need. High obsolescence
handled, processed or filed. and write offs.
Walking to deliver paperwork, poor
Motion
Repetitive/unnecessary movement
ergonomics, chasing information. caused by poor ergonomic design.
Unnecessary steps. Too many
Extra or Over
Incapable equipment and processes.
handoffs, lack of SOP’s. Equipment with unbalanced flow. 33
Processing
35. Lean Process Improvement
County Executive Office
Inspect
Inspect Re-work Wait Transport
Transport Wait Work Reinstall
Work Work
Disconnect
Start Finish
FLOW TIME
= Value = Non-Value-Added
Added Time Time (WASTE)
Value-Added time is only a very small percentage of the total Time
36. DMAIC County Executive Office
Cycle of Six Sigma Phases
Define the Problem
Measure Performance CONTROL DEFINE Define Scope /
Boundaries
Identify and Remove
Variation=
Current State Map
Baseline Measures
QUALITY
Lean Tool Kit
IMPROVE MEASURE
ANALYZE Root Cause Analysis
Find Waste, Variation,
and Value/Non-
Value
40. County Executive Office
Our Customers Need Us More Than Ever
Divide into groups
Use the easels and post-its
What are your customers complaining
about right now?
41. Value Customers Want County Executive Office
The 3 most popular flavors:
Faster Cheaper Better
Do you know which one is your customers favorite?
42. Where Does Value Come From? County Executive Office
Value for customers is generated in the “value stream”.
Value Stream
A value stream usually consists of several processes
which each have many individual process steps that result
in a service that is delivered to a customer.
42
43. The Lean View of Your Organization County Executive Office
Getting to your value streams:
1. Every agency has customers
2. Every customer gets a product/service
3. Products/Services result in outcomes
4. All outcomes and product/services are driven by
processes
Conclusion
If you want to improve value to customers, improve the
value streams/processes.
43
44. 1. Every Agency has Customers County Executive Office
Who are your customers?
(Everybody has customers)
•Who buys it
•Who uses it
•Who requires it
•Two types: Brokers and End-users
•Example: License Plate, Grandpa and grandchild red
rider BB gun 44
45. County Executive Office
2. Every Customer gets Products/Services
What products do
What is a product?
you produce?
Products: •Permits
1. Can be counted •Determinations
2. Are specific •Miles of road
3. Are nouns •Tax credits
4. You can deliver them •Vaccinations
-Ken Miller
•Probation visits
•Licenses
•Welfare checks
•Treatment plans
•Jobs
•Educational sessions 45
46. 3. Products Produce Outcomes
County Executive Office
What are the outcomes of your work?
•Healthy families
•Safe communities
•A fair criminal justice system
•Better communication
•Maintained roads
•Improved fire protection
•Easier access to public services
“Outcomes” are more difficult to measure and improve than
“products”.
46
47. 4. All Outcomes and Products/Services
County Executive Office
are Driven by Processes
What are your processes?
•Every organization provides products to customers.
•Processes and systems create these products.
•All Work is a process.
•Process steps in the value stream should flow and be
designed to meet the customer’s desires.
•L6S methodology is centered around improving
processes not people.
47
50. County Executive Office
How We Select What to Improve
Burning Platforms
Customer Complaints
Grass Roots
Organizational Product Maps
• Performance Assessments (data analysis)
Strategic Planning
50
51. Pick Chart
County Executive Office
There are four categories on a 2*2 matrix; horizontal is
scale of payoff (or benefits), vertical is ease of
implementation.
By deciding where an idea falls on the pick chart four
proposed project actions are provided:
Possible
Implement
Challenge
Kill
*(thus the name “PICK” chart) 51
52. PICK Chart
County Executive Office
Low Payoff, easy to do - Possible
High Payoff, easy to do - Implement
High Payoff, hard to do - Challenge
Low Payoff, hard to do - Kill
52
53. County Executive Office
Strategic Approach to Value Streams
See it! – Strategic Perspective
Focus Area: COMMUNITY HEALTH
Focus Area Goal: To be the premier health
care provider in the industry.
Objective #1: Schedule surgeries within 24 hrs.
Strategy #1: Increase the capacity for surgical
procedures by 40%.
53
54. County Executive Office
What is a Value Stream Approach?
NON-VALUE STREAM VALUE STREAMS
(Lean Perspective)
• Increase the number
of surgery rooms • Patient flow from
schedule to discharge
• Staff up for new
rooms o Scheduling the rooms
o Preparing the room,
• Upgrade equipment trays, equip, meds
o Prep-ing the patient
o Information flow
54
57. Change for the Greater Good County Executive Office
Leadership is the art of getting
someone else to do something you
want done, because he wants to
do it.
-President Dwight D. Eisenhower
Kaizen 57
58. Just Do It
County Executive Office
Not every idea needs a team
Champions – do not ask for a team solution
if you already have one
Solution flags
• More Training/Incentives
• Add Staff
• Improve P&P’s
• Add Inspections
59. Team Roles
County Executive Office
Board of Supervisors
CEO
Agency Heads
Deployment
Champion
Value Stream
Champion
All Employees Team
Leaders
Provides inputs to how to
improve their own jobs and
work areas
Team
Belts Members
59
61. Process Improvement Filter County Executive Office
1. Y = f (x1, x2…)
2. Define Y (Charter)
3. Identify the X’s (tribal knowledge)
4. Identify the red X’s (tribal knowledge) (Vital Few)
5. Validate the red X’s (Gemba/data)
6. Analysis
7. Solution
Don’t accelerate the
excavation until you are sure
your digging in the right
place.
62. Candy Metrics County Executive Office
Customer Order (How do you know what they want?) 5000 wrapped candies
Total Candies Processed (Effort-Quality) 15,000
Total Failures/Defects (Do customers care?) 10,000
Yield (Customer Order/Total Processed) 33.3%
Percent of Customer Complaints 98%
Lean Metrics: Financial, behavioral, and core-process
measurements that help you monitor your organization’s progress
toward achieving the goals of the lean initiative.
62
63. Date Initiated:
PH Clinic Registration and Billing Process Revision Date: County Executive Office
Event Start Date:
DEFINE
Event End Date:
Project Information
ROLE Phone No. LAST NAME FIRST NAME AGENCY
Contract with the
Department Champion
Value Stream Analysis Champion
Team Lead
Subject Matter Expert
Subject Matter Expert team
Green Belt
Green Belt
Total Man Hours Provides guidance.
Event Type I Kaizen
Event Type II Part of GTEP
Business Case
Be sure you have
the right team,
Opportunity or Problem Statement/Business Impact that the problem is
scoped, and you
Goal Statement
have measurable
Project Deliverables
goals.
In Scope Out of Scope
Value Stream Champion Date
64. Gemba/Walk the Process
County Executive Office
Means to “GO SEE”
THE FIVE ACTUALS
1. Go to the actual workplace.
2. Engage the people who do the actual
work.
3. Observe the actual process.
4. Collect the actual data.
5. Understand the actual value stream.
64
65. Exercise: What Went Wrong?
County Executive Office
What went wrong with the process?
No solutions allowed yet; only problems
10 min
65
66. County Executive Office
Model SIPOC Y?
Suppliers Inputs Process Outputs Customers
X X Y
Y
X X Y
X X
66
68. Knowledge Work 8- Wastes Product Work
County Executive Office
Work not meeting requirements.
Defects
Scrap, rework, lost capacity due to
Missing information. Rework. mistakes, inaccurate SOP’s.
Too many reports, reviews,
Overproduction
Running equipment to keep
approvals. Batching paperwork. equipment and people busy.
Waiting for meetings to start.
Waiting
Waiting for equipment, people or
Information, paperwork and process to cycle, waiting for
approvals. materials and tools.
Over or under staffing, talents not
utilized, work load not balanced. Non utilization of
people/talent
Paper- based data vs. electronic
Transportation
Long travel distances, unplanned
transfers. Routing of unnecessary premium postal.
approvals/processing.
Excessive backlog of work to be
Inventory
Making what we can instead of what
processed. Too much paper to be customers need. High obsolescence
handled, processed or filed. and write offs.
Walking to deliver paperwork, poor
Motion
Repetitive/unnecessary movement
ergonomics, chasing information. caused by poor ergonomic design.
Unnecessary steps. Too many
Extra or Over
Incapable equipment and processes.
handoffs, lack of SOP’s. Equipment with unbalanced flow.
Processing
69. Analyze for VA/NVA steps County Executive Office
Value added time (VA) – Time engaged in an activity
performed that increases its value to the customer. Must
be done right the first time, the customer must be willing
to pay for it, and it transforms or shapes the material or
information.
Non value added time (NVA) – Time engaged in an
activity performed that does not increase its value to the
customer
Non value added time (NVA) but ESSENTIAL - Meets
the definition for NVA time, but cannot be removed.
69
70. Exercise County Executive Office
Value-Added and Non-Value-Added work
Value-Added Activities Non Value-Added Activities
An activity that transforms Activities that consume resources
or shapes material or but create
information no value in the eyes of the customer
Customer wants it Pure waste
Done right the first time If you can’t get rid of the activity, it is
(no rework) necessary
Non Value-Added – Essential Activities
Activities causing no value to be created but which
E cannot be eliminated based on current state of
technology or thinking
Required (regulatory, customer mandate, legal)
Necessary (due to non-robustness of process,
currently required; current risk tolerance)
71. Lean Tool Kit
County Executive Office
Error-proofing
Push/Pull
Set-up Reduction
5-S
Cellular Work Processing
Work Standardization
Reduce Variation
72. Control Plan Template
County Executive Office
Target
Who Description When How Why Corrective Action
Level
Perform Root Cause Analysis:
1. Re-Evaluate Process and Rework.
2. Retrain Personnel.
3. No Change Necessary.
Addendum #20, 21
72
73. County Executive Office
Future State
Minimized Waste and Variation
Steps add value
Error-proofed
Measurement plan in place
74. County Executive Office
After the Pilot/Implementation of
Future State
Ask for the results
Communicate results with pride
Adjust where necessary
Look for ways to continuously improve
76. County Executive Office
Dogmas of the quiet past are inadequate to the stormy present.
The occasion is piled high with difficulty and we must rise with it.
As our case is new, so we must think anew and act anew. We must
disenthrall ourselves and then we will save our country.
77. County Executive Office
Ideas Government is Enthralled With
1. Not driven by profit – We’re different
2. No competitive pressure – We don’t have Customers
3. Decreasing funds means decreased service (Cut!)
4. Decreasing cost can mean decreasing budgets or de-
obligating funds (Use it or lose it)
5. Quality, Cost, and on-time delivery are not normally
measured (Perverse incentives: Cost recovery, WIA,
grants vs. unit cost, yield, throughput)
6. We don’t have control of our environment or our
customers
7. Often no process owners, may cross MANY divisional
areas (Control vs. Cooperation)
78. People - Culture Trumps Tools
County Executive Office
Process, Results and Focus
Improvement Tools
Operations
Metrics
Must address BOTH Processes
Culture and Tools
to avoid unintended
consequences & Invisible:
less than desirable Hard to Measure & Change
long-term success with Blind Spots
Resistance
Process Management History
Mindsets
Norms
Assumptions
Habits
Perceptions
80. Prepare the Field
County Executive Office
More important than changing what
employees do, is changing how employees
think
Unwavering commitment from leadership
Mastery, Autonomy, and Purpose (Daniel Pink)
81. HIGH PERFORMANCE County Executive Office
VALUE
EMPLOYEES CHANGE
LEADERS
VALUE
CUSTOMERS
STREAMS
81
82. The Paradoxical
Commandments of Government
County Executive Office
1. The reward for doing good work is more work. Do
good work anyway.
2. All the money you save being more efficient will get
cut from your budget now and forever. Find
efficiencies anyway.
3. All the bold reforms you make will be undone by the
next administration. Make bold reforms anyway.
4. There is no time to think about improving what we
do. Make time anyway.
5. Employees may fight the change every step of the
way. Involve them anyway.
83. The Paradoxical
Commandments of Government
County Executive Office
6. The future is unpredictable and largely out of your
hands. Plan anyway.
7. The press only cares when something goes wrong.
Share your success stories anyway.
8. Legal will never let you do it. Simplify it anyway.
9. If you develop your people they will move on to
better jobs. Train them anyway.
10. Your ideas will at best make someone else look
good and at worst get you ostracized by your co-
workers. Share your ideas anyway.
-Ken Miller
84. You Have a Choice
County Executive Office
“Change is inevitable,
growth is optional”
- Charles Darwin
84
Editor's Notes
Think about your program: what could you do with these benefits?
In the Public Works and General Services Agencies, they asked themselves why aren’t we sharing equipment? The answer? Because we’ve always done it this way.There was in fact no reason not to schedule and share some equipment and when they did, they saved over $400,000.
When our forensic scientists heard that there may be ways to get test results to the District Attorney faster, they knew this was a fine opportunity for improvement. The conducted a Kaizen and reduced their time to complete drug analysis from 64 to 17 days. This reduced their backlog, allowing the scientists to complete more cases every day. Because the analyses were completed sooner, people stayed in jail for less time and cases were heard in a more timely manner.
Social workers were sending cases to the District Attorney. It was full of error and rework.They make the process error free, relegated the work to an assistant and freed up a full social worker.50 more people get services with no added staff costs.
Reality – bureaucrats work too hard!SIPOC - Assessment appeals –citizen has a right to appeal the valuation of their property for purposes of taxesEconomy – 5x more appeals – challenge is to process all within mandated time frames without adding staffApplication – manual between two agencies – see the red bullets? This is where the staff saw waste – mostly duplication!
Looking at the current state – we found a great deal of non-value added steps
There were 92 steps to hand of each and every application at a cost of about $3,600. Just on the front end, the average cycle time was 177 days. (the total number of days averaged 580 days)
You can see the improved process is much lighter. – cut 100 days off, 47 steps, and lopped off about $2000 in staff processing cost. (SLIDE)
There are so many examples of agenices finding ways to cut costs without cutting services, but simply looking in all the known places – but with a lean lens!
Once we have decided where to focus – products, value streams, problemsWhat do we look for? What do we do?
Now talk about quality – six sigmaMeasure, Analyze and Improve is what makes six sigma unique (powerful)In Lean looking for waste, in Six Sigma looking for variation
(complete the exercise)First person reads the first box. Should be easy as the words and colors match.Next person must say the color (not read the word)*Be sure to tell them to read one column at a time from left to right* *Time both participantsSometimes, even if you know what to look for, it takes practice when we are not used to it. When it is not what we have been trained to look for in the past.
Now lets start with the foundations of using it.
Here is a video about a customer who needs something.You will see a leader who makes a small change, that causes people to shift what they want to do. (After watch)What other things could she have done?Why is what she did effective (she didn’t talk to a single person)<you just made a list of things you can do to empower people.>(ex. Steve Jobs bathroom)Why did she do it? – because she wanted to help the customerNow lets talk about our customers.
Divide into groups.Use easels and post-its to document what customers need.(later will sort ideas by type) – time, quality, cost, other (policy…)It’s important to design a product to meet the needs of the customer – so know who your customer really is. There can be multiple customers with competing interests. Understand the nature of the interests of the customer.All customers need value from the product or service you are providing.Value A product or service provided to a customer at the right time, at the appropriate price, and with sufficient quality.Various Needs:When you deliver the service – what is important to them.What do they all have in common: value (the things you just described is what LSS calls value)
It’s important to design a product to meet the needs of the customer – so know who your customer really is. There can be multiple customers with competing interests. Understand the nature of the interests of the customer.Image: swimmers in a swimlane: kick, stroke, breathing, ; multiple vs’s;
Tell group to slow down, we will do one step at a time together.Here’s and example of fixing a problem with the customer in mind. – GSA billing invoice- faster: made it electronic. Also asked customer, what would be helpful to you? The customers wanted to know what they paid last year. Now GSA gets paid faster. Where else if gov’t guilty of not thinking about their customers?: silos, single service multiple billing, web pages – complete but not in logical order, instructions in government language. (find an example)(do you have customers with conflicting needs? Ex. Speed vs. quality) Can you meet both?Exercise: Each group will work together. Each person will have their own “modified SIPOC” form to documentExplain form and use payroll example on form:-Each phase has multiple process steps in it.What do you think is most important to employee? (on time correct)Does employee care about system processing steps?Which steps add value to the customer.-Sometimes customer has input into own process.Step 1 – who are your customers?It’s important to design a product to meet the needs of the customer – so know who your customer really is. There can be multiple customers with competing interests. Understand the nature of the interests of the customer.** INTRODUCE Value Stream Exercise: Start by identifying a key product/service here.
Let’s just practice:(use an admin example in class, ask a student – name a customer…)*whatever it is that you identify as the product: the litmus test is can you measure it in time, cost, quality? Because that’s what customers most care about? We provide services is vague, it is like saying we make “stuff”. It’s harder to measure a “service than a product”.Services we provide actually result in a product: as a manager you should clear about your products. One way to know is to ask yourself: Can what you listed be counted, is it specific is it a noun, can you deliver it? Value Stream Exercise: who is the customer
“Outcomes” are more difficult to measure and improve than “products”.
L6S is a set of tools for process improvement. Today is about what the process is and the role you play. Value Stream Exercise: What are the process steps/phases?
Discussion:Now we have a way to view our organization through the Value Stream lens.We have also identified what is of value to the customer. ($, Time, Quality)Performance should be based on your customers point of view: when it’s not, that’s where you want to improve performance.How do we decide what to improve first?
Object similar to OutcomesStrategy similar to a more specific goalEx. Burning platform of Permits: Must look beyond just the portion that your agency does, every part of the value stream that delivers the product to the customer must be considered. This is what Champions do. If you were to look at your products, what are your target performance in these 3 categories (or what are your state standards), where are the gaps?What if you meet the state standards, but it takes you a large number of resources? Is that OK. Instead of hiring staff do you need to increase capacity with existing staff?
Object similar to OutcomesStrategy similar to a more specific goal
Non- Value Stream = add staff or resources to increase capacityValue Stream = Focus on improving the current process used in the value streamStrategy to increase capacity.Other side of coinBusiness sees capacity as an issue/objective - in lean, improving speed/quality (what customer cares about) will improve your performance (profit or capacity) If you think about the customer, you will also improve your own performance.
Lucy videoFill out V.S. Form after watching video. (will they write what they see or what the “know” must be involved in V.S.?)Process map exercise: what do you seeHow much of the process did you actually see:They only see their part, they are guessing at the other parts of the VS.What leadership style did you see?Which part of the process needs to be improved? - can see some things, but can you see all? Do you know that the customers experiences is? - which lever to push on “system view”***You could improve all of them, but which problem do you want to solve:
Before you engage in a Kaizen – check yourself…Do you already know the solution? Maybe you have a JDI.
Change mental model of your role as a manager (get others to think)Point direction and remove obstaclesKnow how change impacts people and what to expect
Quote from Abraham Lincoln 1862 “Dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty and we must rise with it. As our case is new, so we must think anew and act anew. We must disenthrall ourselves and then we will save our country.”What I love about this quote is the concept of disentralling ourselves. So, this revolution, then, is a personal one that starts in your mind.
Summary: (puzzle pieces)CustomersEmployees are expertsValue streams = products (not departments = products)Neopolitan Ice cream: time, quality, cost = valueChange needs to managed, management starts before the change<how is this all going to happen?.....needaLeadership!!!!>CustomersEmployeesValueValue streamsChange***leadership***
What should government leaders do to create a lean revolution? – they need to get in their heads…and be dangerous. Our culture is about staying within the lines – Bureaucracy is built on regulations and rules.But if our cultural safety zone continues to stay this tight, – we remove the opportunity to learn by mistakesExperience a loving relationshipMeasure twinkling eyes – who am I being that that is not happeningDiscover their true spiritExploit the Value proposition of JoyPlay, dream, relax – best ideas come from a free mindGo slowMake a lot of mistakesIf you’re not prepared to be wrong you are not prepared to be innovative.
The problems we have and drivers for change are not unexpected, they are inevitable. Over the life of the County we will go through many ups and downs.It is how we adapt to those changes that defines our success.There are two things that can change: you and your environment.Your environment will changeYou have a choice