change is good! - ohio housing finance agency...

Change Is

Good!

What is LeanOhio? • Office within Ohio Department of

Administrative Services

• Staff of 6

• More than 100 process improvement

projects using Lean & Six Sigma

• More than 70 Kaizen events

On average, process time and process

steps reduced by more than 50%

lean.ohio.gov

What is a

Kaizen Event?

Change for the Better

Kaizen Event • Customer focused

• Folks who do the work, supervise the work,

customers, fresh perspective

• One week of focused action

• Needed resources readily available

• Scope 3 weeks prior to event

• 30, 60, 90, 6 month, 1 year follow ups

Why a Kaizen Event?

Processes Tend to be Invisible

Resolution

Request

In Manufacturing or Government,

Whatever your results …

• Lead time

• Cycle time

• Errors

• Costs

• Customer satisfaction or frustration

…your process is PERFECTLY designed to achieve those results

Symptoms of a Broken Process • Customers are unhappy

• Some things just take too long

• The process wasn’t done right the first time

• Management throws people at the problem, but it

doesn’t improve

• Employees report high frustration

• Processes span several departments, and there

is finger-pointing and blaming

• Processes are not measured or controlled

SIMPLER. FASTER. BETTER. LESS COSTLY.

Ohio Housing Finance Agency

Compliance Review – “Site Prep”

February 23 – 25, 2016

“PC Regulators”

Baseline Data PC is responsible for monitoring

almost 1,500 projects

2015

• 430 reviews occurred

• 93,000 units

• 16,000 buildings

Day One -Level Setting

-Scope of Event

-Stakeholder

Identification

-Current State

Mapping

Day Two -Waste

Identification

-Lean Training

-Brainstorming

-Process

Redesign

-Future State

Process

Development

Day Three -Discussion and

Consensus

-Implementation

Planning

-Celebration

-Sharing the

Results

Future State

Simpler

• Specific timeframes that work for the

analyst and outside partners customer

• Utilizing more of DevCo functionality

• No longer requesting documents that we

already have

Faster • Ability to upload documents

• Accurate information available in one

place

Better

• No longer requires extensive research just

to set a date

• More lines of communication between

OHFA departments and outside partners

• Able to spend more time on mission

critical and value added work

Less Costly

• Potential decrease in travel cost

• Less paper, ink and postage used

Summary Scorecard Measure Current

Level

NEW Change

Process Steps 62 21 66%

Decision Points

Handoffs

Loopbacks

9

10

2

3

5

1

66%

50%

50%

Process Lead Time

30 days 14-30

days

up to

50%

Ohio Department

of Taxation

Tax Appeal Process

Current State = 143 steps, 4 entry points

Future State = 96 steps, 1 entry point

Lead time reduced from 32 months to as few as 7 - 20 days

Ohio Department

of Transportation

Real Estate

Records Retention

Process

Current State = 61 steps, 22 handoffs

Future State = 11 steps, 8 handoffs

Cost to process each records box fell from $705 to $1 by processing electronically

Highway Patrol

Trooper Recruitment Process

Ohio

Department of

Public Safety

Current State = 235 steps, 28 decisions, 76 handoffs, 50 delays

Future State = 34 steps, 8 decisions, 11 handoffs, 15 delays

Lead time reduced from a range of 191 days to more than a year, down to 61 days

Kaizen Events

Top 10 List

Reasons why a Kaizen Event

is the “sledge hammer” of the

LeanOhio toolbox and works

best to achieve the biggest results as quickly as possible

Top 10 Reasons Kaizen Events Work

Number 10: No Kaizen event is held

without first developing

a meaningful yet

appropriately sized

scope to ensure success

“If we pull this off we’ll eat like kings!”


Number 9:

Each Kaizen event has a

detailed charter that

provides operational

definitions and clearly

defines the purpose and

goals so everyone is on

the same page “Ha ha ha Biff. Guess What? After we

go to the drugstore and post office,

I’m going to the vet’s to get tutored.”

Number 8: The people who do the

work and therefore know

the work best are involved

in making the

improvements


“It’s always ‘Sit,’ ‘Stay,’ ‘Heel’ –

Never ‘Think,’ ‘Innovate,’ ‘Be

Yourself.’”


Number 7: Through team work,

more creative solutions

are tried and all have

ownership of the new

process


Number 6: Customers are part of

the improvement team

so their needs are more

accurately identified

Number 5:

The team is taught the

science of flow,

sequencing and pull

systems so they can

design their own

processes to work more

efficiently

”

“I’ve got it too, Omar. A strange

feeling like we’ve just been going

around in circles.”



Number 4:

Decisions are made

based on the data,

so facts trump

opinions

“OK, Williams, we’ll vote…how

many here say the heart has four

chambers?”


Number 3:

The process creates a

blameless environment

to help overcome

defensiveness and

resistance to change

Number 2:

Implementation of

the new process

begins immediately

so momentum is not

lost


“Again? Why is it that the revolution

always gets this far and then

everyone just chickens out?”

Number 1:

Management is totally

committed to

implementing the new

process

“Men, I want you to

fight vigorously and

then run. And as I

am a little bit lame,

I’m going to start

running now.” - General George Stedman

U.S. Army (Civil War)


Not there yet, but... Since January 2011

• More than 100 Lean improvement efforts including over

70 week-long Kaizen events

• Kaizen event teams on average eliminated 54% of the

process steps they identified, meaning thousands of handoffs, loopbacks, decisions, and unnecessary red

tape was eliminated

• More than 300 Lean Six Sigma Black and Green Belts

graduated

• $165 million in cost savings / cost avoidance

• Teams average a 52% reduction in process lead time

• Millions of hours citizens and businesses must wait on government has been eliminated

Lean.Ohio.gov

Contact Info

Website: lean.ohio.gov/ Email: [email protected]

Telephone: 614-995-0945

http://lean.ohio.gov/

mailto:[email protected]

Staying Inspection

Ready

Presented By:

Karen Wyatt

Operations Manager

RLJ Management Co.

Regional Manager

• Educate your site staff

• Develop an atmosphere where site

staff can operate proactively

• Discourage site staff operating

reactively

Regional Manager

• Stress the importance of

– Staying on top of maintenance needs

– Developing maintenance checklist

– Maintaining organization

– Effective communication about needs

– Being prepared with vendor information

– Knowing the needs of their property

Regional Manager

• Perform site inspections as frequently as possible

• Don’t just inspect the physical, pay attention to managers office

• Pay attention to the small stuff

• Small needs can turn into big problems if left unresolved

Regional Manager

• Stress cost savings of proactive

maintenance

• Negative impact of deferred or

reactive maintenance

• Share some examples…

Example: If you had replaced this

leaking toilet….

Example: Versus allowing it to

develop into this….

The cost difference would have

been $130.00 versus $13,000.00

Regional Manager

• Develop a set standard for file

organization

• Establish guidelines on how managers

office is to be organized

• Insist managers follow these guidelines

daily

Regional Manager

• Provide tools for success

• Provide reasonable timelines for

project completion

• Establish and maintain expectations

• Communicate with staff effectively

• Provide guidance

Regional Manager

Inspire your staff to conduct

business each day as if their

inspection was TOMORROW!

Site Manager

• Know your property needs

• Inspect units and common areas

frequently

• Identify problem residents and

confront

• Keep track of maintenance needs

and resolve as they occur

Site Manager

• Develop maintenance game plan

• Meet with maintenance staff regularly

• Know their projects

• Don’t assume they are on the same

page with you

• Monitor their progress

• Check in on the final product

Site Manager

• Develop a file maintenance routine

• Audit files regularly

• File as you go

• Don’t let it become a daunting task

• Keep paperwork organized and easily

accessible

Site Manager

• Remember, if you can’t audit your files,

due to disorganization, how do you

expect the Auditor to?

• An organized file, office, maintenance

shop reduces unnecessary time

spent……LOOKING!

Benefits to being Inspection Ready

• Less stress in preparing for the big day

• No action needed if there are no

findings

• Lower repair costs based on good

management

• More confident/happier employees

• Happy OHFA Auditors!!!!!

The End

CHANGE

IS GOOD

Using Kaizen to Improve

Program Compliance

Review Process

Program Compliance Team

• Director

• Betsy Krieger

• Compliance Managers

• Todd Carmichael

• Athena Lunsford

• Tonya Rankin

Program Compliance Team • Asset Manager

• Jeremy Myers

• Compliance Training & Operations

• Christine Bennett

–Kristine Youngmeyer

–CJ Elswick


• Policy, Technology, Devco, AFHMP

• Rachel Grass

–Ashley Walker


• Compliance Analyst • Patty Blair Tara Campbell

• Michelle Carrol Clarissa Collins

• Ruth Collins Robin Dotson

• Jessica George Marlena Lowe


• Compliance Analyst

• David Mcloud Lavern Sanford

• Edward Skipper Kimberly Smith

• Dani Stallman Katherine Webb

• Nancy Weilbacher Pam Zinn

Kaizen Improvements • Approval of Lease, Tenant Selection Plan

(TSP) , Affirmative Fair Housing Marketing Plan (AFHMP), and other leasing documents.

• OHFA will approve theses documents and will store them in one place.

• Management questionnaire is available online

• Management will only have to send this information once and each analyst can access this information when needed.

Critical Documents

• Site staff, Management Company,

and Owner • Tax Credit Application

• 8609’s (8609A for properties with Market units)

• Restrictive Covenant

• Amendment (s) to the Restrictive Covenant

• Funding Agreement

• Amendment (s) to the Funding Agreement

Critical Documents • Home/Trust units

– Date the unit became a Home/Trust unit

– Date the unit was no longer a Home/Trust unit

• Lease –Lease-up lease and addendums

–New lease and addendums because of management company change

–New lease and addendums because of policy change or other change

Critical Documents

• TSP

–New TSP due to management

change

–New TSP due to policy change

• AFHMP

–Send approved plan

–HUD property provide statement if

the plan is over 5 years

Critical Documents

• Utility Allowances

–Lease-up to current year

• Certificates

–Elevators, Boilers, Pool, Sprinkler

Systems, Alarms Systems etc

Critical Documents

• Income Limits (Hera Special or

HUD) and effective dates

–From lease-up to present

• Management Questionnaire

–Available online for completion

–Keep copies from every review

Critical Documents • Rent roll with move-in dates

– Lease-up rent roll with move-in dates

– Current rent roll with original move-in date

• Other important documents – Copies of OHFA Compliance Reviews

– Copies of Management Questionnaire

• By having a critical document folder you will cut down on time spent sending information requested to your analyst to prepare for a Compliance Review.

Day of the Review

• Items to have prior to your analyst

arrival the day of the review

• Keys/files for selected units pulled

• Current rent roll effective day of review

• Work order and/or work order log

Day of the Review • List of any bed bug/ other infestation

units that has occurred since

management sent the prep docs to

OHFA

• AFHMP should be visible for

applicants/ OHFA to review

Tips to prepare for a review • Suggestions for files

– Separate HUD information from tax credit information in the files

– Put a colorful blank sheet to separate the years

– Only have one folder for analyst to review

– If tenant has been at the property for years, always have a copy of the move-in information in the current file.

Tips to prepare for a review • Maintenance suggestions

– Keep a detailed maintenance work order log or system

• Be able to explain why work order took longer than 3 days to complete

• Have invoices and/or work orders for work repaired by vendors

• All work orders must have work requested, date requested, work performed, signature from maintenance or management and date completed

Partners working with OHFA • IDEAS

• Identifying

• Duplicate

• Efforts

• Approaches

• Success

• OHFA would like to work with our partners to Identify Duplicate Efforts and Approaches for everyone’s Success.

Department of Administrative ServicesRobert Blair, Director

LeanOhio • lean.ohio.govTim Krall • 614-466-7521 • [email protected]

SIMPLER • FASTER • BETTER • LESS COSTLY

The LeanOhio Mission: Lead and support efforts that make government services simpler, faster, better, and less costly.

Vision: To be recognized as a national leader and the go-to resource in Ohio for making government more efficient and effective.

Visit lean.ohio.gov for detailed information, results, and resources.


RESULTS SUMMARY

2015

To download the LeanOhio Information Kit, go to lean.ohio.gov/info

7

LeanOhio Information KitIncluded are seven documents that provide extensive information about Lean, Kaizen, and Six Sigma in Ohio state government.

1. 7 Steps for Implementing Lean (1 page)These steps provide a strategic overview of how Lean is being implemented in Ohio state government. The end in mind is to have Lean become the routine way of doing business.

2. 2015 Results Summary (1 page)Review a set of meaningful measures that show the positive impact of LeanOhio in state government.

3. LeanOhio Service Overview (1 page)See the full range of services and programs that the LeanOhio Office is delivering to state agencies -- in order to make government simpler, faster, better, and less costly.

4. Kaizen Event Services (1 page)Some of the biggest savings and gains in efficiency are through Kaizen events – but they require careful guidance before, during, and after the event to ensure success. Learn about LeanOhio services that support this comprehensive approach.

5. All About Kaizen Events (1 page)Learn what happens during a Kaizen event – and how the Kaizen approach is far better than previous approaches to improvement.

6. Kaizen Event Go/No-Go Checklist (3 pages)If you’re considering a Kaizen event for your agency, this checklist is an essential first step. Use it to get your event set up for success.

7. Lean Routine (1 page)While full Kaizen events tackle major processes, the Lean Routine is for projects that are more narrowly scoped. It can be faster and more flexible – but just as results-driven.

ROUTINELEAN







7 Steps for Implementing Lean in State Government in Ohio 71. Learn and test the effectiveness of

“Lean Manufacturing” to improve state government systems.

Do not invest in fadsA team of state employees works with business experts to learn and experiment with Lean Six Sigma tools and principles to determine their effectiveness in improving government services.

———————————————————————————————————————————————————————————————————————————————————

2. Focus preliminary Lean efforts on major Kaizen events to ensure significant results.

Selling results is easier than selling theorySelect high-opportunity projects and champions who will do what it takes to succeed, and accumulate a variety of significant, transformative results throughout state government.

———————————————————————————————————————————————————————————————————————————————————

3. Communicate and celebrate those first tangible results to increase interest and demand for Lean.

If you improve it, they will comeUse website, articles, and meetings to share results and recognize and reward excellence.

———————————————————————————————————————————————————————————————————————————————————

4. Develop a network of additional practitioners to meet the increased demand for Lean efforts.

Matching supply and demandAs more people and agencies wish to use Lean, increase capacity by developing a variety of opportunities for training, mentoring, and gaining experience – both within the LeanOhio Office and interested agencies.

———————————————————————————————————————————————————————————————————————————————————

5. Ensure that major improvement efforts are prioritized, aligned, and managed with appropriate visual metrics.

From random projects to aligned system improvementsWiden the focus to include strategic planning, understanding and improving systems through value stream mapping, creating efficient processes the first time, and building visual management systems to better ensure complete success.

———————————————————————————————————————————————————————————————————————————————————

6. Support opportunities for greater use of Lean tools by everyone.

Push Lean down and outPromote bottom-up improvement efforts so everyone is improving all the time (and not just through Kaizen events), and ensure that new Lean champions in all agencies have support from experienced practitioners.

———————————————————————————————————————————————————————————————————————————————————

7. Lean thinking becomes the normal routine rather than something done just during an event.

Lean embedded in state government’s DNAHow else would you do any state business except by using the best practices for improvement and efficiency? Lean is naturally a part of all meetings, projects, day-to-day work activities, and new employee orientation.







SIMPLERLean Six Sigma is about cut-ting red tape and making pro-cesses simpler. For process improvement projects reported in 2011-2015, implemented improvements will lead to:

• 67% average reduction in the number of process steps

• 7,640 process steps eliminated

• 51% reduction in handoffs for projects reporting this metric

Number ofProcess Steps

BETTERWhen transforming processes to make them simpler and faster, Lean Six Sigma teams free up staff time that can be redirected to other work. Improvement teams from 2011-2015 identified 949,987 potential redirected hours, to be realized when the new processes are fully in place.

FASTERLean is about serving custom-ers faster. According to cal-culations done by the project teams, implementation of the improvements will lead to:

• 68% average reduction in start-to-finish process time

• 70% reduction in delays for projects reporting this metric

• 96% of backlogs eliminated for projects with backlogs

BEFOREIMPROVEMENTS

68%REDUCTION

Process Time

LESS COSTLYSaving money and making better use of taxpayer dollars are major priorities. Since January 2011, Kaizen teams have identified millions of dollars in potential savings, to be realized when the new processes and other improvements are fully implemented.

BEFOREIMPROVEMENTS

AFTER

67%REDUCTION

RESULTS SUMMARY

2011- 15

Projects 135 reported projects led and facilitated by Lean-trained state employees.These improvement projects have been at 34 state agencies, boards, and commissions.

Kaizen Events Included are 64 Kaizen events led by Lean Six Sigma Black Belts from the LeanOhio Office. In a Kaizen event, staff map the current process, identify inefficiencies, and build a new process that is far simpler, faster, better, and less costly. Details at lean.ohio.gov/results

Internal Expertise Powering these gains are 46 embedded Black Belts and 170 Green Belts trained in-house by LeanOhio staff. Meet them at lean.ohio.gov/network

Results from January 2011 through December 2015Since the launch of LeanOhio in January 2011, the methods and tools of Lean Six Sigma have been used extensively to make state government simpler, faster, better, and less costly. Below is a summary of key five-year measures.

AFTER







LeanOhio OverviewHere’s how the LeanOhio Office is making government simpler, faster, better, and less costly.

Major ProcessImprovement

Consultants from the LeanOhio Office lead major process-improvement events. In 5-day Kaizen events, teams transform key processes – eliminating red tape, removing bottlenecks, reducing process time, strengthening service, and saving money. Since January 2011, LeanOhio has led nearly 70 Kaizen events. (See “before” and “after” photos above.) lean.ohio.gov/results

———————————————————————————————————————————————————————————————————————————————————

Lean Six Sigma Consultation

LeanOhio consultants assist agencies in using Lean Six Sigma tools to find major improvement opportunities (through value-stream mapping), mistake-proof their forms (poka-yoke), reorganize the workspace (5S), analyze data, hear from customers, and more. lean.ohio.gov/consult.aspx

———————————————————————————————————————————————————————————————————————————————————

Training and Development

The LeanOhio Office has a robust program of training, development, and mentoring. Offerings include LeanOhio Boot Camp (1 week), Green Belt Training (2 weeks + project), and Black Belt Training (5 weeks + project). lean.ohio.gov/training

———————————————————————————————————————————————————————————————————————————————————

LeanOhioNetwork

The LeanOhio Network unites State employees who have attended LeanOhio training. The group is 700 people strong, with 70 Black Belts and 170 Green Belts. Among state governments, Ohio leads the nation with the most in-house Lean expertise. lean.ohio.gov/network

———————————————————————————————————————————————————————————————————————————————————

Entrepreneur in Residence

The EIR Program has three small-business owners working with the LeanOhio Office. This is bridge-building at its best. EIRs and their businesses gain process-improvement know-how, and state government gains private-sector insights and best practices. lean.ohio.gov/EIR

———————————————————————————————————————————————————————————————————————————————————

Lean in Local Government

Designed for Ohio’s political subdivisions, the Local Government Efficiency Program includes scholarships for training and grants for improvement projects. The training is tailored to the public-sector workplace. lean.ohio.gov/local

———————————————————————————————————————————————————————————————————————————————————

Resources To power new thinking and higher levels of improvement, the LeanOhio Office routinely adds to its library of improvement resources. lean.ohio.gov/resources.aspx

———————————————————————————————————————————————————————————————————————————————————

lean.ohio.gov Since its 2011 launch, lean.ohio.gov has become the nation’s largest public-sector Lean website.

BEFORE: Created during a Kaizen event, the map above shows how the process used to look.

AFTER: On the right is the simpler and faster “future state” process designed by the Kaizen team.

CURRENT STATE

FUTURE STATE







BEFORE: The above process map, created by a Commerce team during its Kaizen event, shows how the Unclaimed Funds claim process used to look.

1. Present an overview of Lean and Kaizen events to management. optional

2. Conduct a “pre-scope” on potential issues, core processes, and opportunities. optional 3. Meet with management for scoping session (at least 4 weeks before Kaizen event).4. Collect and analyze baseline data (after scoping session).5. Conduct customer satisfaction survey (after scoping session).6. Conduct “voice of the customer” focus group(s). optional

1. Present statistical analysis of current process data.2. Present results of customer satisfaction survey.3. Provide just-in-time training on Lean and Six Sigma principles and tools.4. Identify and document all steps in the current process, mapping it in detail.5. Analyze the current process to uncover value-added steps and waste.6. Identify, evaluate, and reach consensus on best ideas for improvement.7. Create and reach consensus on a new ideal process based on a pull system and

proper flow.8. Use Lean tools as needed to increase speed and reduce waste in the process.9. Create implementation plans with action registers for communication, training, IT, etc.10. Develop a scorecard to track implementation progress and results.11. Prepare a presentation on results and plans that’s delivered to leadership and staff.

1. Write an article that highlights results, posting it to lean.ohio.gov in Web and PDF form.2. Coordinate with the Ohio Certified Public Manager program to assign a project

manager to help the team implement the innovations.3. Conduct update checks at 30-day, 60-day, 90-day, 120-day, 6-month, and 1-year intervals.4. Conduct customer survey 6-9 months after Kaizen to identify progress and needs.5. Promote recognition opportunities for successful teams.

Putting Lean and Kaizen to workThe LeanOhio Office can provide crucial guidance and faciliation.

“I was skeptical.... I thought, there’s no way we’re going to be able to do this in a week. But by the second day, I was starting to realize, we’re getting it done! It’s amazing. We did it in four days.” Brenda Gerardi, Office of the Ohio Attorney General, Bureau of Criminal Investigation

“We’re at the lab working and work-ing, but we’ve never been able to take a step back, look at our process, and make the process better. But Kaizen allowed us to do that. Stepping back has made all the difference. We’ve had time to think and figure out, how can we do this?”Tammy Qualls, Highway Patrol, Crime Lab

“This is an unbelievably effective tool to help get work done more effi-ciently and effectively. I’m also a tax-payer, so I’m thrilled we have reduced program costs without spending any additional state dollars.”Diane Luff, DAS

“The great thing about this event and Kaizen is that this is going forward beginning Monday morning. We have something that will actually work because we can put the changes into process right away.”Dana Warner, Ohio Department of Public Safety, Bureau of Motor Vehicles

BE

FO

RE

KAIZ

EN E

VENT

DU

RIN

GKA

IZEN

EVE

NTA

FT

ER

KAIZ

EN E

VENT

Here’s what Kaizen team members are saying about their experience...

AFTER: The team leaned up their process in a major way. The “future state” process has 82% fewer steps and serves customers up to 150 days faster.

CURRENT STATE

FUTURE STATE







A Kaizen team typically involves 10-18 people. This includes staff who work the process, managers or supervisors of the process, one or more customers or other stakeholders, and even an outsider with no knowledge of the process who can bring a fresh perspective.

On the right is a snapshot of a Kaizen event on its fourth day. Here’s what’s happening:

A. A subgroup fine-tunes plans to develop informational materials and training to support the improvements.

B. A LeanOhio consultant fine-tunes the new process map based on input from the team.

C. One of the Kaizen participants consults with a subgroup for clarification.

D. The group on the right is working on details of an especially complex part of the new process. They will report their findings to the whole group in order to build consensus.

E. Stretching from the wall on the right and continuing on the left is a complex map of the current process. On the facing wall (B) is a map of the new approach – with 101 fewer steps!

Improvement has always been a priority in state government, but Kaizen takes it to a new level. Here’s how:

INTENSITYA Kaizen team does all its work in a nonstop stretch from Monday through Friday. This compressed time frame ensures continuity and efficiency.

IMMEDIACYToo often in the past, teams generated recommendations that never got implemented. With Kaizen, implementation is more immediate. While some improvements may need to be phased in, many changes are put in place during the Kaizen week. Agency directors, assistant directors, team sponsors, and other key leaders visit with the team as the week unfolds to get updates, give input, make decisions, and remove barriers.

IMPORTANCEKaizen has its biggest measurable impact when used to improve major processes. The best candidate for a Kaizen event is a costly, complex, delay-ridden process that is crucial to customers and integral to the agency’s strategic priorities.

Here’s how Kaizen is different...and better A Kaizen event begins with just-in-time learning on Monday...and ends with a celebration and

presentation of plans and projected results on Friday. In between, team members dive deeply into their work process. They question their assumptions, apply their experience, exercise their creativity, analyze the data, and build a process that’s far simpler, faster, better, and less costly.

Here’s what happens during a Kaizen event

The term KAIZEN is Japanese, meaning to change (kai) for the better (zen). Kaizen teams do just that, analyzing every part of a work process, then rebuilding it to be simpler, faster, better, and less costly.

Kaizen EventsA Kaizen event is a one-week improvement blitz aimed at overhauling a core work process. Used extensively at leading private-sector companies and public-sector agencies, Kaizen is an approach of choice for increasing efficiency, boosting customer satisfaction, and cutting costs.

In Ohio state government, Kaizen teams are on the move and getting great results: streamlined processes, reduced red tape, greater efficiency, increased customer satisfaction, and big savings.

“This is powerful stuff,” said Ohio Tax Commissioner Joe Testa, speaking at a Kaizen team’s concluding presentation. “I can’t believe how much you accomplished in a week.” The team reduced its overall process time by 92% – and crushed its backlog







Kaizen Event Go/No-Go Checklist Is the scope complete and appropriately sized?

___ Is the scope too large to achieve success? (Don’t try to boil the ocean.)

___ Is the scope so small that success will not be transformational? (Don’t spend this kind of time and energy unless you can achieve significant results – at least a 50% improvement.)

___ Are you improving a complete system instead of putting Bandaids on parts of the process?

___ Is there any info/decisions made about future plans, “sacred cows,” or past or potential problems that the team needs to understand and to be fully empowered to implement change?

Are the right people on the team?

___ Do you have all the areas of the process being improved represented on the team?

___ Do you have the horsepower needed to make critical decisions on the team?

___ Do you have customers on the team, or have you surveyed or discussed the event with process users so the “voice of the customer” is represented?

The above photo shows a complex core process that met its match during a Kaizen event. The team eliminated 103 steps, reducing overall process time by as much as 70%.Kaizen is a powerful philosophy, methodology, and tool set. Kaizen events are a proven best practice for analyzing processes, identifying waste, understanding roots causes, creating new processes that are far simpler and faster, and achieving major results.To date, more than 50 Kaizen events have been conducted in state government. They’ve reduced the number of process steps and the start-to-finish process time by more than 50% on average. Kaizen is cutting the complexity in half while delivering service in half the time.Over the course of all these events, we have seen that what happens before the Kaizen event is often the biggest key to success during and after the event. Care must be taken to clarify the focus of the Kaizen event and to scope the initiative properly.That’s why this Go/No-Go Checklist. It spells out crucial questions that need to be answered in order to set up a Kaizen event for success.

Continued...







lean.ohio.govGo/No-Go Checklist page 2 of 3

___ Have you included thoughtful organizational thinkers with little or no knowledge of the process to pro-vide a fresh perspective to the team?

___ Are the team members strong, well respected, knowledgeable employees – and not simply the people you can most afford to do without for a week?

Is the necessary data and information to ensure and measure success available?

___ Is there baseline data (monthly, yearly volumes; number of FTE’s assigned to the process; etc.) avail-able for current lead time / cycle time / performance measures?

___ If there was a data-gathering plan developed, has the information been collected?

Is the agency ready to implement significant improvements and changes immediately?

___ Are there decisions to be made by management before the team can implement change?

___ Is there a strong mandate to do things differently the Monday following the Kaizen event?

Is the event a top priority of the agency for that week?

___ Is the entire team committed and scheduled to spend the full week focused on the event?

___ Is a large meeting room and breakout rooms available the entire week?

___ Is the team leader committed to change, available all week, and able to put in the time before, during, and after the event to ensure success?

___ Are subject matter experts able to be on standby to support the team as needed?

___ Is the sponsor committed to implementing the results and available to help remove barriers during the course of the week?

Within the agency, is there a common understanding and commitment to the Kaizen process?

___ Is there an understanding within the agency that the team is not just making recommendations – but that it will make decisions in consultation with management during the week that will begin to be implemented immediately?

___ Are all levels of the organization (management, unions, and affected workers) aware of the Kaizen event and understand that there will be significant changes as a result?

___ Is there a commitment to designing and implementing the best solution and improvements for the customer by using data, Lean tools, and the process?

Continued...







lean.ohio.govGo/No-Go Checklist page 3 of 3

Out of Scope MoneyWe will not improve by throwing money at the problem. The focus will be on eliminating waste, though after redesigning the process the team may consider and make a business case for an investment that increases effectiveness or has a positive return on investment.

PeopleWe will not improve by simply assigning more people to do the work. This does not mean that people may not be redistributed to other parts of the process when it makes sense as part of the redesigned flow, or to temporarily reduce a backlog.

IT SolutionsWe will not improve by automating the existing process. After the team has eliminated waste and designed a more efficient work flow the team may consider and develop a business case for implementing an IT solution. In fact, a Kaizen Event can be an effective way to develop the requirements for an IT project.

Job LossJob duties may change as a result of the team’s redesign of the process, but in no case will any team members become unemployed as a result of their improvement efforts.

Laws, Statutes, Regulations, and ContractsThe team will focus its improvement efforts on opportunities in their control. The team will not try to change rules, laws and regulations outside their control, but will very carefully examine the language to ensure existing interpretations are accurate.







Lean Routines FAQs How long does it take?Lean Routines are flexible. When properly scoped, they can be completed in one full day – or in five 90-minute meetings over the course of several weeks, or in two half-day meetings, and so on. The breaks in between meetings can be a big positive because they allow for discussion, idea generation, reinforcement, and consensus-building. All of this keeps the momentum alive.

Who is involved?The process owner serves the key role at the start, working with the Lean facilitator to clarify the scope and develop a charter. This planning step is vital. The team itself should consist of people who do the work of the process or sub-process that’s being improved.

How do I get started with this?First, identify a small part of a process that is a true “pain point.” It needs to be in your control or your team’s control. Narrow in on specific steps of the process – 8-15 steps is an ideal range, involving 2-4 different functions. The scope should be narrow enough to allow for quick improvement, yet big enough that improvement will make a significant difference.

What are some of the keys to success?• Narrow the focus of what you’re trying to improve. The Lean Routine should not be

used with large, complex processes that cross many sections or agencies. (With those, you need a full Kaizen event.)

• Work with a skilled Lean facilitator from the very start. They can help you scope the project, plan the meetings, and ensure that the meetings run smoothly and stay on track.

• Plan your way to a successful outcome. A well-scoped project won’t guarantee success, because there are other factors involved as the Lean Routine unfolds. But a poorly scoped project guarantees frustration, confusion, and a lack of results.

• Make sure that the people who do the work are the people who make up the team. They have the know-how that’s needed to analyze the current approach and identify meaningful improvements.

• Do the hard work of sustaining the improvements. While the Lean Routine process moves quickly and has a clear end point, implementation of the changes often requires ongoing work. The process owner has lead responsibility for maintaining the momentum and ensuring that everyone sticks with their implementation timetable.

The Lean RoutineWhen it comes to improvement, week-long Kaizen events are the approach of choice for achieving big-hitting results. But there’s a quick-hitting approach as well – an approach that can be faster, more flexible, and more grassroots in nature.

We call it the Lean Routine. It uses many of the same tools that are put to work in a full Kaizen event. But it uses them on smaller processes and sub-processes. That’s the key distinction: With Lean Routine, you narrow the scope of the improvement effort, focusing on clearly defined “pain points” that call for permanent improvement.

PREP MEETINGFacilitator and process owner conduct pre-scope, identify team, and finalize logistics. Outputs can include first draft of charter and first draft of SIPOC.

STEP 1 – SCOPE ITScope the issue to ensure it’s the right size. Outputs can include a charter, SIPOC, clarity on what is excluded from the project, a set of metrics, etc.

STEP 2 – MAKE IT VISIBLEMake that part of the process visible. Gather data (lead time, cycle times, error rates, costs, etc.) for steps being studied. Outputs can include a process map, data collection plan, etc.

STEP 3 – ANALYZEAnalyze data, identify waste and non-value added activities. Tools includes TIMUWOOD, NVA-NVAN, root-cause analysis, brainstorming, etc.

STEP 4 – LEAN IT UPTeam creates a clean-sheet redesign, mistake-proofs key forms, standardizes the work, etc.

STEP 5 – IMPLEMENT AND SUSTAINImplement the improvements, and sustain the changes over time. Tools include action registers and control plans. Also key are project management and training and education.

The Lean Routine in Action

ROUTINELEAN