Lean University The Skinny On Getting Lean CACUBO 2005

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Lean UniversityThe Skinny On Getting
LeanCACUBO 2005
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Introductions

• Steve Kreidler is the executive vice president at
  the University of Central Oklahoma
  (www.ucok.edu), a master's degree granting
  university with 15,950 students. Kreidler is
  responsible for administrative duties including
  budget, human resources, physical plant, legal,
  accounting, purchasing, public safety, and fund
  development. He brought the Lean concept to the
  university from his prior career working to help
  improve the profitability of corporations in
  Oklahoma and adapted the principles to meet the
  needs of the academic environment.

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Introductions

• Mark Nash is a managing director with Argent
  Global Services, a process engineering and
  management consulting firm specializing in
  productivity improvement, quality control, and
  cost reduction strategies for a variety of
  industries. Argent and UCO partnered to create
  The Lean University to great success. Argent's
  customers range from Johns Hopkins and Zenith to
  Dayton Tire and Tinker Air Force Base.

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Agenda

• Why Did UCO Need To Get Lean? 15 minutes
• Set Up Lean Simulation 5 minutes
• Dynamics of Lean University/ Simulation In
  Process 15 minutes
• End Simulation and Get Results 5 minutes
• Implementation of Lean University 15 minutes
• Q A 5 minutes

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UCO Overview
Snapshot

• The University of Central Oklahoma is ranked
  among the top 5 of universities across the US by
  number of students enrolled. UCOs current
  enrollment is 15,950 students.
• Originally a Normal school, UCO has grown to 5
  colleges, a sizable graduate college, and has
  students from all 77 counties in Oklahoma, all 50
  States, and 84 foreign countries.
• 16 of all college degrees in Oklahoma are
  granted by UCO. For FY 05 UCO granted over 2,500
  bachelors and masters degrees.

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UCO Overview UCO Student Demographics

• 67 are full time students
• 72 are under the age of 25
• In the past five years, the fastest growing
  portion of the student population is the 20 and
  under group
• UCO is ethnically diverse over the past five
  years
• African-American enrollment is up 32
• American-Indian enrollment is up 41
• Hispanic enrollment is up 30

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UCO Overview UCO Growth
Pattern
Fall Semester Enrollment
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
1891 1901 1911 1921 1931
1941 1951 1961 1971 1981
1991 2001
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State Appropriations History
State Appropriations/FTE
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State Appropriations History Gap in /FTE
UCO Compared to Regionals and OU/OSU

• UCO receives 20 less State appropriation
  (915/student FTE) than the average of the
  regional universities in Oklahoma. The funding
  gap is 10,465,000 per year.
• UCO receives 32.5 (1,717) per student FTE less
  than the comprehensive universities.

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The Set Up For Getting Lean(Or, OK, Now Im
Really Ticked Off)

• FY 02 Headcount 14,741
• FY 06 Headcount 15,953 1,212
• FY 02 FTE 10,995
• FY 06 FTE 12,297 1,302
• FY 02 State Allocation 46,292,366
• FY 06 State Allocation 45,408,297 lt884,069gt

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UCO Overview
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Lean University

• Operating System We are problem solvers
• Basic Human Values govern our actions
• Civility
• Respect
• Inclusiveness
• Integrity The Light of Day Rule
• Public-Private partnership
• Using the knowledge of the university
• Leveraging private sector world-class practices

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Workplace Expectations

• Timely response to contacts
• Timely resolutions to problems and opportunities
• Communication and training are our responsibility
• Empower our customers to do more
• Quality customer value

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Paths To Success

• Reduce red tape
• Simple to navigate, few moving parts
• Clear rules and regulations
• Create processes that reduce crisis management
• Strategic partners in every endeavor
• Long range and scenario planning
• Leadership development
• Cross training

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Words To Live By

• Do not believe that it is very much of an
  advance to do the unnecessary three times as
  fast
• Peter Drucker
• Bureaucracy defends the status quo long past the
  time when the quo has lost its status
• Laurence Peter

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Some Books That Helped Us Along the Way

• The Agenda

Good to Great
Execution
By Michael Hammer
By Jim Collins

• By Larry Bossidy,
• Ram Charan

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Some Books That Helped Us Along the Way
Leadership On The Line
Execution
By Ronald Heifetz, Marty Linsky

• By James Womack, Daniel Jones

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Four Stages of the Lean University

• Opportunity Identification
• Solution Design
• Implementation
• Continuous Improvement

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And Along Came AQIP

• Academic Quality Improvement Project
• UCO decision to follow AQIP path for NCA based
  upon 10 year accreditation
• Lean University begins within Administration and
  moves to all areas of campus as part of our
  quality initiatives.

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Opportunity Identification

• Campus wide diagnostic through direct customer
  meetings with over 200 personnel and students

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Solution Design

• Concepts Training
• Define Processes (as opposed to departments)
• Value Stream Mapping
• Assess customer needs for each process
• Benchmark current and best practices, then adopt
  and adapt
• Implementation

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Start Lean SimulationNeed Volunteers
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Defining Lean

• A systematic approach to identifying and
  eliminating waste through continuous improvement
  by flowing the product or service at the pull of
  the customer in pursuit of perfection.

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The Origins of Lean

• World War II
• Dr. W. Edwards Deming
• Taiichi Ono
• Shigeo Shingo
• Toyota Motor Company
• Georgetown, Kentucky

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The Eight Wastes of Lean

• Overproduction
• Excess Inventory
• Excess/Unnecessary Travel
• Unnecessary Processing
• Waiting
• Excess Motion
• Defects
• Under-utilized People

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Eight Wastes

• Excess Inventory
• Any supply in excess of a one-piece flow through
  your manufacturing process
• More forms than you need
• Surplus parts
• Excess office supplies

• Defects
• Causes of defects
• Weak process control
• Poor quality
• Inadequate education, training, or work
  instructions

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Eight Wastes

• Processing Waste
• Effort that adds no value to the product or
  service from the customers viewpoint
• Product changes without process changes
• Just-in-case logic
• Lack of communication
• Redundant approvals
• Extra copies or excessive information

• Waiting
• Waiting for what?
• Anything!

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Eight Wastes

• People Waste
• The waste of not using peoples mental, creative,
  and physical abilities
• Old guard thinking, politics, the business
  culture
• Poor hiring practices
• Low or no investment in training
• Low pay, high turnover strategy

• Motion Waste
• Any movement of people or machines that does not
  add value to the product or service
• Inconsistent work methods
• Unfavorable facility or cell layout
• Poor workplace organization and housekeeping
• Extra busy movements while waiting

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Eight Wastes

• Overproduction
• Making more than is required by the next process
• Making earlier than is required by the next
  process
• Making faster than is required by the next
  process
• Just-in-case logic
• Long process setup
• Unlevel scheduling
• Unbalanced workload

• Excess Travel
• Transporting people, paper, parts and materials
  around the campus
• Poor layout
• Poor understanding of the process flow for
  production
• Large batch sizes, long lead times, and off- site
  areas

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The Lean Toolbox
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Value Stream Mapping Current State

• Old Process - Flowchart

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Value Stream Mapping Current State

• New Process - Flowchart

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Visual Controls

• Simple signals that provide an immediate
  understanding of a situation or condition. They
  are efficient, self-regulating, and
  worker-managed.
• Examples
• Kanban cards
• Color-coded dies, tools, pallets
• Lines on the floor to delineate storage areas,
  walkways, work areas, etc.
• Andon lights

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Standardized Work

• Tasks safely carried out with all tasks organized
  in the best known sequence, and using the most
  effective combination of these resources
• People
• Materials
• Methods
• Machines

Doing the same thing the same way every single
time!
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Efficiency I versus We

• The Individual Approach
• Employees working at different speeds
• Lots of queuing time
• Often batch and island thinking takes over
• Difficult to keep the process on track

• The Team Approach
• Employees process similar amounts of work at
  similar speed
• No/Low queuing times
• Team mentality focuses on completing the work
  for the customer

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Continuous Flow

• The process of completely finishing one piece or
  item of the
• product or service, in process step order, before
  beginning the
• task of adding value to another item or
  occurrence
• Why?
• Eliminates double handling of paperwork,
  materials, etc.
• Maintains the quality focus on the current
  customer until they are satisfied.
• Reduces the amount of In-Process work
• Provides an environment that is both user and
  customer friendly

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End of Simulation
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Before
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After
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Implementation

• Pilot Project
• Work order system
• Incredible success
• Phased Rollout with parallel tracks
• Facilities Management
• Work order system, key control, motor pool
• Administrative Services
• Bids and contracts, crisis management, ID card,
  and hiring all underway
• Admissions
• International student admissions and enrollment

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Implementation

• Techniques and Tools
• Quality Concepts
• Lean Enterprise Concepts
• Employee Involvement
• Kaizen Events
• Focused Improvement Efforts
• Five Day Duration
• Continuous Improvement

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Pilot Project Results Work Order
System
Current State
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Pilot Project Results Work Order
System
Future State
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Tangible Results

• Before
• 3,000 open work orders
• Some more than 1 year old
• Non-emergency work average of 6 months response
  time
• 28 touches of paperwork from customer initiation
  to completion of job

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Tangible Results Event
Scorecard
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Tangible Results

• After
• Now at 300 open work orders
• Average response time to completion of all jobs
  under 3 days
• Most work orders completed day of request
• Only 5 touches of paper!

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Tangible Results

• After
• Saved 6,750 work hours per year, about 75,000
  worth of labor redirected
• Eliminated one job in front office which was
  moved to HR
• Extremely satisfied customers our 1 service in
  Administrative Services today

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Motor Pool Before Lean
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Motor Pool After 5S
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International Admissions

• International Graduate College Application
  Process
• Before Lean
• Most recent full-year application cycle completed
• 179 International graduate student applications
• 82 International graduate students accepted
• Takt Time 10.9 hours per application
• One every 1.36 days
• This is how often a decision must be reached on
  an application

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International Admissions

• Before Lean
• Process Lead Time is 68.9 days
• Total Work Content Time is 6.5 hours
• 18 different letters are generated
• Copied and filed at 2-4 locations
• Successful student will receive 11 different
  letters
• Travel path of application on campus is 7,096 ft.
• Application packet handed-off 17 times

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Tangible Results
International Admissions Event Scorecard
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What Went Wrong With International Admissions
Lean Process

• Did not successfully redefine processes over
  departments
• Did not get agreement from the top of the two VP
  divisions on the true customer needs for service
  improvement
• Personal antipathy between director of the
  Graduate Office and the Director of International
  Office scuttled the agreed upon work of their
  employees, who DID agree on solutions

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Extreme Success

• Work Order System
• Purchasing
• HR/Hiring
• Financial Aid/Bursar office merger

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On Deck

• Merger of Admissions, Advisement, Recruitment,
  Financial Aid/Bursar into new Enrollment
  Management office
• Capital projects process (AE, Budget, Board of
  Regents of Oklahoma Colleges, Oklahoma State
  Regents for Higher Education, State Legislature,
  Office of State Finance, Department of Central
  Services, and some more friends along the road)

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Closing

• Questions
• Comments
• Etc.
• Etc.
• http//administration.ucok.edu/admin/vp_present.ht
  m