Implementing Continuous Process Improvement in

Our SchoolsJohn Helbling, PE, CLSSBB

Director, Field Engineering ProcessesAlliant Energy

Agenda

• Introduction

• Education’s Challenge

• Business Process Improvement Overview

• Introduction to Lean

• Business Process Kaizen as a tool to develop a Continuous Improvement Culture

Education’s Challenge

• Compete for funding.• Compete for talent.• Compete for students.• Compete for community

growth and quality of life.• Compete for the “hearts

and minds” of the general public.

• Do more with less….– Expand Services– Improve Student

Performance– Meet Increasing Public

Goals– Keep Students in School– Meet Workplace

Requirements

CRCSD’s Response

• Established Strategic Plan focused on Customer Satisfaction and Continuous Improvement.

• Vision, mission, values, goals and guiding philosophy of each department are aligned.

• Increased responsiveness

• Provides flexibility to meet changing customer needs without backlog

• Improves satisfaction of delivery of services

• Improves quality & reliability

• Builds customer trust & loyalty

• Gives a competitive advantage that is hard to match quickly

Business TransformationBusiness TransformationGrowth OpportunitiesGrowth Opportunities

Evolution of Process Improvement…

Haven’t we been here before?

Interchangable Parts

Ely Whitney

Assembly Line

Waste Elimination

Scientific Method(Data Driven

Problem Solving)

System Synchronization

Standard Costing

Mass/BatchAlfred P.

Sloan

Time & Motion Division of Labor

F. W. Taylor

Model Variety

Mass ProductionHenry Ford

SQCShewhart/

Western ElectricDOE

Taguchi et al

Total QualityW. Edwards Deming et al

Supermarket Systems

JidokaS. Toyoda

Just-In-TimeK. Toyoda

Employee PartnershipsP. Drucker

Toyota Production

SystemT. Ohno

Six SigmaMichal Harry/

Motorola

Lean Manufacturing

Lean Six SigmaManufacturing

Lean Six SigmaServices/Business

Processes

Lean Business Process

Improvement

Socratic Methods of Questioning

What is Lean?

• Lean as a business philosophy refers to a way of thinking that focuses on waste elimination.

• “Waste” describes the elements of a process that add no value to the service or product required by the customer.

• Lean thinking demands an organizational culture that is intolerant of waste in all forms.

All steps in a process can be categorized as waste or value added.

• 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

Principles of Lean Principles of Lean ThinkingThinking

Value Stream Management

Workplace Safety, Order,

Cleanliness(5S)

Rapid Business Process

Improvement (Kaizen)

Empowered Teams

Visual Management

Lean Thinking is used to eliminate waste in processes

Systematic Process

Improvement (DMAIC)

Data Driven Decisions

Effective Teamwork

Six Sigma is used to eliminate variation & defects in processes

Systematic Process Design (DFSS)

Financial Customer

Balanced Scorecard is used to track progress of organization

Learning & Growth

Baldrige as a management system integrates and aligns improvement initiatives with organization objectives

Leadership

Strategic Planning

Focus on Customers/Constituents

Staff Focus

Process Management

Information, Analysis, Knowledge Management

Internal Business

Processes

Inferential Statistics and

Design of Experiment

(DOE)

Establish a culture of

excellence

Six Sigma focus is

narrow and deep

Lean Thinking focus is

broad and shallow

Not just incremental

but breakthrough

results

Alignment of Business Process Improvement(BPI) Methodologies

Lean? Six Sigma? Lean Six Sigma?

• Lean Thinking is based on – Simple but powerful tools– Engages the creativity of the people doing the work– Rapid process improvement– Teaches people to see waste

• Six Sigma is based on– Data dependent– Deep analysis of data– Inferential Statistics– Processes need to be in control and waste eliminated

Recommendation: Adopt Lean as your BPI tool set and philosophy…Incorporating any existing TQM and other QC initiatives.

Lean Education

• In its landmark 2004 study, “Organizational Improvement & Accountability – Lessons for Education From Other Sectors”, the Rand Corporation concluded that Lean Process Improvement offers educators the most powerful improvement and accountability model available to meet the challenges of the 21st century.

Lean Culture

• Continuous improvement focus

• Bias for action

• Creativity before capital

• Total employee / stakeholder involvement

• Focusing on lead-time reduction to improve responsiveness

• Achieving simultaneous improvements in quality, cost, and delivery

• Leveraging improvements for competitive advantage

• Building a continuous improvement culture to sustain the gains

• Deploying Kaizen Methodology for rapid transformation

What Is Lean Education What Is Lean Education Transformation?Transformation?

Lean ToolsStrategic Tools – Leadership Heavy – Determines WHAT• Voice of Customer - VOC

– Kano Analysis– Quality For Deployment – QFD (aka House of Quality)

• Value Stream Mapping – VSM• Hoshin – Policy Deployment

Tactical Tools – Workforce Heavy – Determines HOW• 5-S• Kaizen Events:

– 5-S– Work flow– 2 P/Replication– 3 P - Mini DFSS– Safety– Changeover

Business Process Kaizen(Change – Better)

Lean Transformation:A Time-Based Strategy

• 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

Kaizen MethodologyKaizen Methodology

Quality & Time

Cost & Time

Delivery & Time

Time-Based Impacts onTime-Based Impacts on Processes and Processes and

Delivery of ServicesDelivery of Services

• Create a business process map to identify areas of opportunity

Steps to ImplementingSteps to ImplementingBusiness TransformationBusiness Transformation

A tool used to:A tool used to:• Display the current process and

information flow from the customer request through the delivery of the service to the customer

• Identify opportunities and establish project priority

• Identify and set the vision for the future state Business Process Map.

What is a BusinessWhat is a BusinessProcess Map?Process Map?

Process Flow MapProcess Flow Map

• Create a business process map to identify areas of opportunity

• Identify value adding and non-value adding activities and set new performance targets

Steps to ImplementingSteps to ImplementingBusiness TransformationBusiness Transformation

Value-Adding Activities…...transform materials and information into products

& services which the customer wants.

Non-Value-Adding Activities...

…consume resources, but don't directly contribute to the product or service…waste!

Value-Add vs. Non-Value-Add Value-Add vs. Non-Value-Add DefinitionsDefinitions

• 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.

Categories of WasteCategories of Waste

• Functional Organization• Technology Gaps• Excessive Controls• Dated Process Design• No Back-up/Cross Training• Unbalanced Workload• Batching of Forms /

Applications• Data Entry Batching

• 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

Causes of WasteCauses of Waste

Value Adding by Process:Value Adding by Process:Submittal of ApplicationSubmittal of Application

5 hrs.

5 mins.

3.0 hrs.

30 sec.

Lead time = 8 hrs.

Value Add time = 5.5 minutes

Value Add % = = 1.1%5.5 min.

8 hrs. x 60 min.

Open mailDate

stamp mail

Review packet for complete-

ness

Prepare fileAssign R&C

number

R&C log into

database

Submittal Complete?

Call applicant

Request update

info. & set file aside

Is the project

required?

Assign previous number &

pull file

Y

N

Y

N

• 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

Steps to ImplementingSteps to ImplementingBusiness TransformationBusiness Transformation

• Shows information flow• Shows staff flow

• Aids in identifying wasteful activities by viewing it from the basis of physical layout

• Shows what is actually happening versus what people think happens

• Familiarizes everyone with the process• Identifies variations in information

handling/storage

Enhanced Spaghetti Enhanced Spaghetti MapMap

Example Spaghetti Example Spaghetti MapMap

Desk

Table

Desk

Desk

Desk

Desk

TableDesk

Table

Desk Desk

Table Table Staging Area

6, 7

, 8, 9

6, 7

, 8, 9

Desk

6, 7

, 8, 9

6, 7

, 8, 9

6, 7

, 8, 9

6, 7

, 8, 9

DeskDesk

Table

Table

Start

Table Table

1

12

4c

4a

3

2

11 10

cart

4b

• 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

Steps to ImplementingSteps to ImplementingBusiness TransformationBusiness Transformation

• 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

Process Must Be Process Must Be RepetitiveRepetitive

• Sources and causes of variation make standard business processes appear to be random, non-standard work• Missing information• Wrong work sequence• Non-standard training processes• Non-standard decision aids

Reduce VariationReduce Variation

• Build system with appropriate information

• Build poke-yoke (mistake-proofing) devices for common problems

• Never passing a defect on to the next process;• Detecting abnormalities • Responding immediately• Eliminating root causes

• Establishing clear decision rules

Assuring First-TimeAssuring First-TimeQuality Means...Quality Means...

• 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

Steps to ImplementingSteps to ImplementingBusiness TransformationBusiness Transformation

Visual ManagementVisual Management

Shipping

Packing

Stock

Order Picking

Order Entry

Sales

Shipping

Packing

Stock

Order Picking

Order Entry

Sales

Function Action Steps

Obtain & write uporder from customer

Deliver order slip to order entry

Log, sort & prioritize

orders

Slips waitfor pick-up

Get slips from order

entryShoes

Available?

Send shoes to packing

Pack & send to shipping

Ship shoes

Order moreShoes from

factory

Informcustomerof delay

Alert stock& sales

Problem!Problem!

DCQSMN Shot Saw Timeline

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Time

% G

ood

Gri

t

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Am

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.001John Chapdelaine1/31/0110" Digital Caliper (Herman Mil l

Misc:

Tolerance:Reported by:Date of study:Gage name:

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120.05

120.00

119.95

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Part number

By Part number

%Contribution

%Study Var

%Tolerance

Part-to-PartReprodRepeatGage R&R

100

50

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Components of Variation

Pe

rce

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Gage R&R, Length, 1/31/01

Alert

PreventReact

Data Display

• Establish a clear vision of continuous improvement

• Communicate, communicate ……• Vision

• Implementation Plan

• Passion and commitment

• “Walk the Talk”

• Active participation – know the principles

• Constant reinforcement – daily, weekly, monthly

Management Team MustManagement Team Must

Lean Education Road Map

• Provide Directors, Managers, and Team Leaders with BPI Leadership Orientation.

• Conduct Proof of Concept Event: – Establish initial target for improvement– Conduct Kaizen event– Use “Borrowed” facilitation– “Public” event – observe event and reportout.

• Establish priority list of key areas of focus for improvement• Perform additional events:

– To further engage organization– Give more experience to internal facilitators– Expand internal facilitation skills

• Establish delivery model– Centralized– Decentralized– Hybrid

Questions

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/2004/RAND_MG136.pdf

• Lean Education – www.leaneducation.com • Alliant Energy