1. government agencies working smarter and faster jamie burnett u.s. environmental protection agency...

Government Agencies Government Agencies Working Smarter and Working Smarter and

FasterFaster

Jamie BurnettJamie Burnett

U.S. Environmental Protection AgencyU.S. Environmental Protection Agency

OSHA OSHA

February 7, 2008February 7, 2008

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Presentation OutlinePresentation Outline

What Is Lean?What Is Lean? State and Federal Lean State and Federal Lean

ExperienceExperience Why Do LeanWhy Do Lean Lean in Government ResourcesLean in Government Resources

44

What Is Lean?What Is Lean?

Lean: Lean: – Lean is a set of principles and tools that Lean is a set of principles and tools that

improve the speed and quality of any improve the speed and quality of any process by eliminating wasteprocess by eliminating waste

– Developed by Toyota, adapted for other Developed by Toyota, adapted for other sectorssectors

““Common sense uncommonly applied”Common sense uncommonly applied”– Methods include value stream mapping Methods include value stream mapping

and kaizen eventsand kaizen events– Kaizen = “change for the good of Kaizen = “change for the good of allall””

55

Lean at Environmental Lean at Environmental Agencies Is Rapidly Agencies Is Rapidly ExpandingExpanding

- State Lean Events Completed- States Interested in Lean

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Example State Results:Example State Results:Iowa Air Quality New Source Iowa Air Quality New Source Construction Permits Kaizen Construction Permits Kaizen EventEvent Before Lean:Before Lean:

– Issue ~ 2,000 permits per yearIssue ~ 2,000 permits per year– Average lead time: 62 daysAverage lead time: 62 days

After Lean:After Lean:– Lead time reduced to 12 days (down to 6 Lead time reduced to 12 days (down to 6

days after 6 months)days after 6 months)– Steps cut by 70%Steps cut by 70%– Handoffs cut from 18 to 4Handoffs cut from 18 to 4– 600 permit application backlog eliminated 600 permit application backlog eliminated

in 6 monthsin 6 months– Process became more customer friendlyProcess became more customer friendly

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Federal Agency Lean EffortsFederal Agency Lean Efforts

EPA Lean EventsEPA Lean Events– State-EPA Region 7 Water Quality Standards State-EPA Region 7 Water Quality Standards

ReviewReview– Performance Track ProgramPerformance Track Program

Other Federal AgenciesOther Federal Agencies– Dept. of Defense—Army, Navy, Air Force, Dept. of Defense—Army, Navy, Air Force,

MarinesMarines– Depts. of Agriculture, Energy, Homeland Depts. of Agriculture, Energy, Homeland

Security, Housing & Urban Development, & Security, Housing & Urban Development, & Veterans AffairsVeterans Affairs

– FBI, National Security Agency, NIST, PBGC, U.S. FBI, National Security Agency, NIST, PBGC, U.S. Mint, U.S. Postal ServiceMint, U.S. Postal Service

88

State-EPA Water Quality State-EPA Water Quality Standards Review Kaizen Standards Review Kaizen EventEvent

Participants:Participants: EPA Region 7, EPA HQ, Iowa, EPA Region 7, EPA HQ, Iowa, Kansas, Missouri, and NebraskaKansas, Missouri, and Nebraska

Process:Process: Water Quality Standards Submittal, Water Quality Standards Submittal, Review, and ApprovalReview, and Approval

Methodology:Methodology: 5-Day Kaizen Event5-Day Kaizen Event Results:Results:

– Process steps reduced from 50 to 26, cut timeProcess steps reduced from 50 to 26, cut time– 50% drop in number of EPA decisions needed50% drop in number of EPA decisions needed– Common understanding of processCommon understanding of process– Clarified roles & responsibilities, built trustClarified roles & responsibilities, built trust– Documented new improved processDocumented new improved process

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Why Would Regulatory Why Would Regulatory Agencies Try Lean?Agencies Try Lean?

BacklogsBacklogs eliminated or drastically eliminated or drastically reducedreduced

Lead timesLead times reduced reduced ComplexityComplexity decreased decreased QualityQuality & & consistencyconsistency improved improved More More “mission critical” work“mission critical” work Staff moraleStaff morale improved improved TransparencyTransparency improved improved

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Common ReactionsCommon Reactions

Expect initial staff resistance:Expect initial staff resistance:

– ““We’ve already tried that.” We’ve already tried that.”

– ““The focus on streamlining The focus on streamlining processes may erode processes may erode environmental protections.”environmental protections.”

– ““We don’t have time to focus on We don’t have time to focus on process improvement.” process improvement.”

Proactive communication and Proactive communication and demonstrating positive results can demonstrating positive results can alleviate these concernsalleviate these concerns

C.A.V.E. People: Citizens Against Virtually Everything

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What’s Powerful About LeanWhat’s Powerful About Lean

ResultsResults AccountabilityAccountability EmpowermentEmpowerment ActionAction ExcellenceExcellence

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EPA & State Lean in EPA & State Lean in Government ResourcesGovernment Resources

““Working Smart for Working Smart for Environmental Protection” Environmental Protection” Primer Primer www.epa.gov/lean/toolkit/primer.pdfwww.epa.gov/lean/toolkit/primer.pdf

Lean in Government Starter Kit, Lean in Government Starter Kit, www.epa.gov/lean/starterkit/www.epa.gov/lean/starterkit/

Iowa Lean Website, Iowa Lean Website, http://lean.iowa.gov/http://lean.iowa.gov/

ECOS Lean Government ECOS Lean Government Website,Website, www.ecos.org/section/projects/?id=2292www.ecos.org/section/projects/?id=2292

http://www.epa.gov/lean/toolkit/primer.pdf

http://www.epa.gov/lean/starterkit/

http://lean.iowa.gov/

http://www.ecos.org/section/projects/?id=2292

February 7, 2007

Executive Overview

Thomas J. Morin

Managing Director

Transforming Government

The challenge and opportunity of the 21st century

U.S. Department of Labor

Occupational Safety & Health Administration

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© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 15

Guidon Performance Solutions: Who We Are

Change agents for rapidly improving responsiveness and

increasing value in the new economy for all stakeholders

Using time-based strategies, we help government agencies

establish a competitive advantage, which contributes to the

economic growth and an efficient & effective utilization of

resources while improving quality of life for all the state’s

constituents.

Transforming Government for Improved ResponsivenessTransforming Government for Improved Responsiveness

15© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.


Evolution of LeanSigma®

The fusion of today’s most powerful improvement programs



Our Heritage

Toyota Production SystemToyota Production System

Taiichi Ohno Shigeo Shingo

“One thing you can’t recycle is wasted time.”

Yoshiki Iwata with Anand

Toyota Roots

Taiichi Ohno



What is World Class Government?

A organization that is:A organization that is:

Lean, agile & connected to the actual constituents demand

Responsive to the constituents needs for new programs & services

Improving continuously to enhance all stakeholder values

Transforming culture to sustain improvements



4

StakeholdersFinancial return • ReliabilityIncome growth • Survival

1

Constituents

Quality

Responsiveness

Cost advantage

The New Government Challenge

Partners

Involvement

Stability

3Employees

Job security

Self esteem

Recognition

Rewards

2



Time-Based ManagementTime-Based Management

Kaizen Breakthrough MethodologyKaizen Breakthrough Methodology LeanSigma® Value Chain TransformationLeanSigma® Value Chain Transformation

Our Consistent Focus



The Common Element

“Today, it’s all about speed.”Tom Peters

Lean = speedLean = speed

Lean tools and techniques are the most effective way to speed up every part of your

operations

Time: Today’s Most Powerful Competitive Time: Today’s Most Powerful Competitive AdvantageAdvantage



OPERATIONAL LEAD TIMEOPERATIONAL LEAD TIME

Wasted Time and Activity

Core Process Value

Excessive Motion Defects & Loop Backs

Hand-offs Waiting Unnecessary Processing

Excessive Backlog

Overprocessing

Time-Based Strategies

Lead-Time ReductionLead-Time Reduction

The key is to reduce your processes to “core value”The key is to reduce your processes to “core value”



Introduction to LeanSigma

MinorImprovement

TraditionalImprovement

0.5%

99.5%

10%

Kaizen WasteReduction

MajorImprovement

90%

Typical Organization

OriginalLead Time

1%

99%

Value-Adding Activities Non-Value-Adding Activities



What is the Kaizen Breakthrough Methodology?

A cross-functional team based process for rapid improvement with:

Bias for action

Creativity before capital

Focus on results

Promote Rapid Change Through Involvement!

Focusing on physical transformation Learn by doing Overcome resistance Instill change culture



Step One – Pre-Kaizen “Preparation”

Select project area Product line focus

Strategic business need

Large improvement potential

Establish project objectives Collect base-line data, set quantitative improvement goals

Select team members Enthusiastic Team Leader and Sub Team Leader

Team makeup 1/3, 1/3, 1/3

Pre-event communication Full-time, five-day participation

Communications session with work area team



Team-based energy and creativity drives immediate process improvementTeam-based energy and creativity drives immediate process improvement

Day 1Day 1 Day 2Day 2 Day 3Day 3 Day 4Day 4 Day 5Day 5

Day of Training &

UnderstandingDay of Discovery Day of

Improvement

Day ofDesign

Implementation&

Documentation

Day of Celebration&

Results

Kaizen Breakthrough ExperienceKaizen Breakthrough Experience

At the end of the week, each Kaizen team has achieved dramatic operational improvements

The Kaizen Approach



Step Two - Kaizen Implementation

Key PrinciplesKey Principles

• Clear objectives

• Team process

• Tight focus on time (one week)

• Quick and simple, action first

• Necessary resources available right away

• Immediate results (new process functioning by end of week)



Step Three – Post-Kaizen “Sustainment”

30-day home work requires part-time involvement by team leader and selected team members

Management must provide adequate resources to complete all homework items

Train area leaders and associates

- Standard work

- Visual controls

- Countermeasures for abnormality and problem resolution

Post suggestion board in the work area and make sure that they are attended to



Introduction to LeanSigma

Productivity 20 - 30% +

Defects 40 - 50% +

Lead Time 70 - 90% +

Backlog 70 - 90% +

Floor Space 30 - 50% +

Without spending major capital

Rapid, Sustainable Improvements



Steps to Implementing LeanSigma

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

Pace work to customer demand

Reduce variation and improve quality

Intense focus on daily performance management and visual control



Process Flow Map




Value-Adding Activities• Transform materials and

information into programs and services the customer wants and it is done right the first time

Non-Value-Adding Activities

• Consume resources, but do not directly contribute to a program or service


© 2007 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.


Identify and eliminate waste

• Defects and loop-backs

• Hand-offs

• Over-producing

• Unnecessary processing

• Decisions in process

• Excess transportation

• Waiting

Lead-Time ReductionLead-Time Reduction



Spaghetti Diagram Example

Desk

Table

Desk

Desk

Desk

Desk

Table

Desk

Table

Desk Desk

Table Table Staging Area

6, 7, 8, 96, 7, 8, 9

Desk

6, 7, 8, 96, 7, 8, 9

6, 7, 8, 96, 7, 8, 9

DeskDesk

Table

Table

Start

Table Table

1

12

4c

4a

3

2

11 10

cart

4b

Mail Room



Process Must Be Repetitive

Customer must always get the same answer no matter who they ask

Customer must get the same answers no matter what time of the day, or day of the week they ask

Customer must always get on-time, complete, and accurate information



Reduce Variation

Sources and causes of variation make standard business processes appear to be random, non-standard work

Missing information

Wrong information

Wrong work sequence

Non-standard training processes

Non-standard decision aids



Assuring First-Time Quality Means…

Build the system with appropriate information

Build mistake-proofing devices for common problems

Never passing a defect on to the next process;

Detecting abnormalities

Responding immediately

Eliminating root causes

Establish clear decision rules



Cultural Transformation

Cultural change: long-term process requiring

- Deliberate change in management attitude

- Participation and empowerment

- Fundamental policy changes

Sustaining change requires - Align performance measures

- Constant communications



Life In the Government Silo

KaizenKaizen

LaserLaser



ManagementManagement attentionattention

Managing Resistance

Critical mass

Management Management attentionattention

Promoting ChangePromoting Change

Increasing Increasing resistanceresistance

Increasing Increasing cooperationcooperationNeutralIncreasing Increasing

resistanceresistanceIncreasingIncreasing cooperationcooperation

Neutral

Early adopters

Traditional SituationTraditional Situation

Anchor Anchor draggersdraggers

"Uncommitted Mass"

Strong pull from early adopters



Physical transformation that improves responsiveness, quality, cost & customer service

Cultural Transformation that energizes the workforce, releases creativity and encourages teamwork to sustain the improvements

Energy, enthusiasm, efficiency and effectiveness that delivers excellence to all stakeholders

In Summary

What to Expect from Your LeanSigma® Transformation



Questions?

Thank You

Questions?

Thank You


1. government agencies working smarter and faster jamie burnett u.s. environmental protection agency...

Documents

lean slide

state lean events

federal lean experience

new improved process

epa hq

kaizen events kaizen

federal agencies

approval process