Implementing Continuous Process Improvement in Our Schools

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Implementing Continuous Process Improvement in
Our Schools

• John Helbling, PE, CLSSBB
• Director, Lean and Six Sigma Outreach
• Alliant Energy

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Objectives

• Be able to
• Explain the Principals of Lean
• Explain the difference between Value Added and
  Non-Value Added activities.
• Describe the seven types of waste and give
  examples of each type in your processes.
• Explain the key steps in Lean Business Process
  Improvement Process
• Explain the key steps in a 5 S event.
• Identify a Business Process Improvement
  opportunities in your area.

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Principles of Lean Thinking

• Precisely define value from the customer's
  perspective
• Identify the value stream for each process
• Allow value to flow without interruptions
• Let the customer pull value from the process
• Continuously pursue perfection

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When is Lean Used?

• Applies to any process where an employee
• Chases information in order to complete a task
• Must jump through multiple decision loops
• Is constantly interrupted when trying to complete
  a task
• Is engaged in expediting (of reports, purchases,
  materials, etc.)
• Does work in batches
• Finds work lost in the "white space" between
  organizational silos
• Doesn't know what they don't know"
• From Lean Six Sigma for Service by Michael L.
  George

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What are the Benefits of Using Lean?

• Using Lean tools an organization can expect to
• Eliminate or dramatically reduce backlogs
• Reduce lead times by more than 50
• Decrease the complexity of processes
• Improve the quality of applications and the
  consistency of reviews or inspections
• Allocate more staff time to mission critical
  work
• Improve staff morale and process transparency

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Lean Tools

• Strategic Tools Determines WHAT
• Vision Mapping Kaizen Event - Value Stream
  Mapping (VSM)
• Tactical Tools Determines HOW
• 5-S Kaizen Workplace Organization
• Work flow Kaizen
• 2 P Process Preparation / Replication Kaizen
• 3 P Product Process Preparation Kaizen
• Safety Kaizen
• Changeover Kaizen
• Total Preventive Maintenance Kaizen

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5 S

• Discuss the main concepts and benefits of
  workplace organization
• Discuss what constitutes a 5S

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Why is Workplace Organization Important?

• Safe, clean and neat
• Place for everything, everything in its place (Go
  APE A Place for Everything)
• Only what is needed to support the employee

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Definition of 5S

• Step 1 Sort - Remove unnecessary items keep
  only what is needed.
• Step 2 Set - Assign and label for ease of use
  designate a home for everything (a.k.a.
  Straighten/Store).
• Step 3 Shine Keep area clean on a continual
  basis.
• Step 4 Standardize Create a process that is
  easy to follow and maintain.
• Step 5 Sustain Training and discipline stick
  to the rules and maintain motivation.

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5S Applies to Everyone
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1. Sorting Decide What is Needed

• Definition
• Sort out necessary and unnecessary items
• Dispose of items that are not needed
• Why
• Removes waste
• Safer work area
• Gains space
• Easier to visualize process

The Mess
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1. Sorting (Cont) Decide What is Needed

• Things to remember
• Start in one area, then sort through everything
• Discuss removal of items with all persons
  involved
• Use environmental/safety procedures
• Items that cannot be removed immediately should
  be tagged (red-tagged)

Is This Item Needed?
Is This Item Needed?
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2. Set Arranging the Workplace

• Definition
• Arrange all necessary items
• Why
• Have a designated place for everything
• Visually shows what is required or is out of
  place
• More efficient to find items/documents/files
• Saves time by not searching for items
• Shorter travel distances (motion)

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3. Shine Sweep and Cleanliness

• Definition
• Keeping areas clean on a continual basis
• Why
• A clean workplace (office) is indicative of a
  quality process, product or service
• Helps to identify abnormal conditions

New Labels are Now On File Cabinets!
Everything in its place
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4. Standardize

• Definition
• Create a new process that is easy to follow and
  maintain
• Why
• Maintain the workplace/office at a level which
  uncovers and makes problems obvious
• Need to sustain the improvements
• Sustain sorting, storage and shining activities
  every day

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5. Sustain Trained Disciplined Culture

• Definition
• We need to practice and repeat until it becomes a
  habit
• Why
• To build 5Ss into our every day process

• Things to Remember
• Develop schedules, check lists
• Good habits are hard to break
• Commitment and discipline toward housekeeping is
  essential in taking the first step to world class
  performance

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Before After
A Place for Everything!
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So, Why Dont We Just Do It?

• It is a habit issue sounds easy, difficult to
  implement and sustain
• Discipline exists only if there is commitment on
  all levels

A well organized 5S program delivers significant
results with minimum investment
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Value-Add vs. Non-Value-Add Definitions

• Value-Adding Activities
• ...transform materials and information into
  products services which the customer wants.
• Customer must be willing to pay for it.
• Must transform the product or service in some
  way.
• Must be done correctly the first time.

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Value-Add vs. Non-Value-Add Definitions

• Non-Value-Adding Activities...
• consume resources, but don't directly contribute
  to the product or servicewaste (muda) !
• Type 1 Business necessary does not add value
  but we do not know how to eliminate it right now.
• Type 2 Unnecessary.

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Improvement Objectives

• ELIMINATE Type 2 Non-Value Added steps
• REDUCE Type 1 Non-Value Added steps
• OPTIMIZE Value Added

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Waste and its two cousins!

• Muda Waste divided into seven types.
• Mura Unevenness consists of all resources
  that are wasted when quality cannot be predicted
  (testing, inspection, rework, returns,
  unscheduled travel, etc).
• Muri Overburden/overdoing unnecessary or
  unreasonable overburdening of people, equipment
  or systems.

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Categories of Waste

• Production of Defects
• Overproduction ahead of demand
• Unnecessary Transport of materials
• Waiting for the next process step
• Inventories (Excess material/information)
• Unnecessary Movement by employees
• Over Processing due to poor tools and product
  design

Lead time reduction is achieved by identifying
and eliminating waste.
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Defects

• Internal or external suppliers providing
  incomplete or incorrect information or material.
• Evidence CAC Correcting information that has
  been supplied. Adding missing information that
  should have been supplied. Clarifying information
  that should have been clear when supplied.
  Material that does not work. Handling customer
  complaints.
• Risks Errors become defects that require rework.
  Produces dissatisfied customers, frustrated
  workers, lost productivity, and extended lead
  times. Make decisions based on incorrect or
  incomplete data.

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Overproduction

• Producing too much, too fast or too soon.
• Evidence Build up of work-in-progress (WIP)
  between process steps. Build up of queues,
  people waiting, filled in-boxes or email queues,
  etc.
• Risks Excessive lead times. Unnecessary
  complexity and confusion due to reprioritization
  of tasks and the development of multiple tracking
  systems.

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Transportation

• Movement of things paperwork, electronic
  information, material, drawings, equipment, and
  supplies.
• Evidence Hand carrying. Traveling to shared
  equipment. Searching for information seeking
  information clarification. Searching for
  material.
• Risks Damage or loss during transport. Delay in
  work being available.

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Waiting

• People waiting for people. Information, product,
  or equipment waiting for people. People waiting
  for information. Product, or equipment. Idle time
  created when
• Evidence The Thing passing through the system
  stops. Idle people. Idle bottleneck equipment.
  Waiting for meetings to begin. Waiting for
  information, input, decisions, approvals or
  authorization to proceed.
• Risks Extended lead times, long work days, and
  paid overtime. Unnecessary capital expenditures
  for equipment.

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Inventories/WIP

• Excess paperwork, supplies, materials, equipment,
  etc. Work waiting in que. Work partially
  completed. Work completed but not utilized.
• Evidence Stockpiles of supplies, forms,
  materials, etc. Disorganized storage areas.
• Risks Reduced cash flow. Lost productivity due
  to searching. Excess space. Damage. Obsolescence.

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Movement

• Movement of people.
• Evidence Hand carrying work product. Functional
  layout. Traveling to shared equipment. Searching
  for information seeking information
  clarification. Excess reaching, repositioning,
  stacking. Not car-pooling. Meeting face-to-face
  instead of teleconferencing.
• Risks Reduced capacity to perform value-adding
  work, which results in increased staffing
  requirements. Injury.

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Over Processing

• Doing more to anything than the customer is
  willing to pay for. Effort that adds no value
  from the customers point of view.
• Evidence Inspections, audits, and reviews..
  Redundant task. Duplicate data entry. rewriting,
  etc. Too many handoffs. Multiple
  approvals/signatures. Unnecessary meetings.
• Risks Excessive lead times. Low productivity.
  Frustrated workforce.

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Waste Examples

• In your group identify examples of waste in your
  area.
• Identify an group spokesperson
• As a group identify at least one example of each
  of the seven types of waste.
• Time limit 10 minutes

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Waste Examples
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Waste is a Symptom

• Waste is merely a symptom of an underlying root
  cause.
• To permanently eliminate waste, we must determine
  the root cause of that waste and elimininate it!

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Root Causes of Waste

• Functional Silos
• Technology Gaps
• Excessive Controls
• Dated Process Design
• No Back-up/Cross Training
• Unbalanced Workload
• Batching of Forms /
• Applications
• Data Entry Batching
• Just-in-case logic
• Mistrust

• Changing Government
• Practices and Policies
• No Decision Rules
• Poor Visual Control
• Disorganized Workplace
• Lack of Training
• Obsolete Forms or Form Design
• Poor Layout
• Government Regulations w/ Ambiguous
  Interpretation

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Business Process Kaizen(Change Good)
Lean Transformation A Time-Based Strategy
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Kaizen Methodology

• Is focused on lead-time and variation reduction
• Is measurement focused
• Is data driven, and fact based
• Provides a baseline for future improvements
  (Kaizen)
• Drives cultural change

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Time-Based Impacts on Processes and Delivery of
Services
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Steps to ImplementingBusiness Transformation

• Identify who is the customer.
• Identify what is the value add to the customer.
• Identify the areas of pain or dissatisfaction.
• How do we know?

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Steps to ImplementingBusiness Transformation

• Create a business process map to identify areas
  of opportunity.
• Identify value adding and non-value adding
  activities and set new performance targets
• Create process flow
• Reduce variation and improve quality
• Intense focus on daily performance management and
  visual control

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Steps To Implementing Business Transformation
Gathered from your Data Display
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Event Identification

• In your Group
• List the various department processes.
• Identify the value of each process and how the
  process links up with and advances the Districts
  and Departments goals.
• Identify who are the customers.
• Identify areas of customer pain with the
  processes.
• Pick the process with the greatest pain or impact
  on your Departments goals.
• Complete the Lean Activity Checklist.
• Time Limit 20 Minutes

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Questions
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References and Acknowledgments

• State of Iowa, Department of Management, Lean
  Enterprise - http//www.dom.state.ia.us/planning_
  performance/lean/index.html
• Lean Enterprise Institute - www.lean.org
• Rand Corporation, Organizational Improvement and
  Accountability, Lessons for Education from other
  sectors - http//www.rand.org/pubs/monographs/200
  4/RAND_MG136.pdf
• Lean Education www.leaneducation.com
• Alliant Energy
• Kaizen Event Planner, Karen Martin and Mike
  Osterling, Productivity Press

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5 S Examples
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What are we trying to solve?

• Problem Statement - Cluttered Work Room, File
  Cabinets, Supplies, Empty Cubicles, Etc.
  resulting in inefficient use of space.
• Objective - Complete 5S in order to
• 1. Assign designated storage area for files,
  supplies
• and documents and label accordingly.
• 2. Eliminate congestion and clutter.
• 3. Review old files for long-term storage or
• destruction/removal.
• 4. Designated work area for total compensation
• department.
• Defect - Disorganized, unattractive work area.

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What are we trying to solve?
Cabinets cluttered and disorganized
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How did we dispose of the excess material?
Several methods of disposal were utilized.
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How many pounds of excess material was removed?
A total of 2,270 pounds or 56,750 pieces of paper
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What did the team accomplish?

• Completed Kaizen Event in 8 hours
• Thorough review of all materials
• Total Compensation
• Staffing
• Document Management
• Legal
• Facility Services
• Supply Cabinet
• 5-to-1
• Moved to centralized location

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What did the team accomplish?

• Files Relocated
• Coat Closet relocated closer to employees
• Cabinets
• Moved storage cabinets to cubicles
• Total Compensation Work Room
• No longer excess storage area
• Conference Room
• Work Space New work area created
• Hoteling Workstation
• Safety
• Disposed of coat rack from aisle way