TOC IN GOVERNMENT: CHALLENGES AND OPPORTUNITIES

Utah Department of Workforce ServicesPresented By: Greg Gardner, DWS Deputy Director

OVERVIEW

• Who we are• Public sector demand• Challenges• Theory to action• Results

THE STATE OF UTAH

GOVERNOR GARY HERBERT’S VISION FOR UTAHUtah will lead the nation as the best performing economy

DWS MISSION STATEMENTWe strengthen Utah’s economy by supporting the economic stability and quality of our workforce

DWS COMMITMENT TO UTAH TAXPAYERSTo provide quality, accountable, and streamlined services that connect a world-class workforce with meaningful employment

WORKFORCE SERVICES ORGANIZATIONAL MODEL

DISTRIBUTION OF TOTAL CUSTOMERS SERVEDTotal Distinct Customers = 752,465 (includes children)

THE PERFECT STORM

• “The Great Recession”

• State budget reductions

• New computer system

THEORY OF CONSTRAINTS

• Founded by Eli Goldratt and Bob Fox• Made popular by “The Goal” in 1984• Initially focused on manufacturing systems

(drum-buffer-rope) and often still seen as a production methodology

• Process for improving complex systems

TOC MANAGING SYSTEMS

THE FIVE STEP TOC PROCESS

1) Identify the constraint2) Decide how to squeeze the most out of

the constraint3) Subordinate other areas to the

constraint4) Elevate the constraint5) Go back to step #1

INTEGRATED, TOC, LEAN AND SIX SIGMA

LEAN• Kaizen• Value Stream

Mapping• Tools

SIX SIGMA• Analysis• Tools• DMAIC

TOC APPS• Throughput

Rounds• Critical Chain• Logical Thinking

Process

MAKING IT HAPPEN

ROADMAP Throughput Operating Strategy

FOCUS TOC

THEORY TO ACTION:THE PUBLIC SECTOR

Decrease Operating Expenses

Increase Quality

Increase Throughput

Deliver continuously improving services at

lower costs

KEY LEVERS:INTERFERENCE DIAGRAM

KEY LEVERS:THE “FULL KIT”

KEY LEVERS

• The key areas for improvement that will have the biggest impact on performance:• Employee success

• Pay for Performance• Co-production and automation

• myCase• Customer education• Workflow management and production control

PAY FOR PERFORMANCE

• Pay for Performance is an employee incentive program designed to provide bonus money to top performers

• In order to participate, employees must meet minimum performance standards ,as well as additional accuracy standards and workload volume

• Employees participating in the Pay for Performance program are required to sign up and there is an annual limit on how much employees can earn

• Employees are paid bonuses monthly based on the previous month’s work

MY CASE• myCase is DWS’ online customer portal• Customers can find benefit information on myCase, as well

as complete their reviews, report changes, and read notices• myCase automatically enters information into DWS’

eligibility system, thus eliminating the need for staff intervention and entry

• Since myCase was launched, there have been more than 5.1 million visits to the site• More than 111,000 changes have been reported online• More than 66,000 customers have completed reviews online• Almost 1 million notices have been read through myCase• More than 44,000 applications have been completed through

myCase

RESULTS

• Cost per determination DECREASED• From $57.66 down to $36.91 (Target = $31.86)

• Quality INCREASED• From 90% up to 94.7% accuracy rate (Target = 95%)

• Call wait times DECREASED• From 22 minutes down to 7 minutes

(Target = All calls answered under 15 minutes)• Days to determination DECREASED

• From 16 down to 14 days (Target = 12 days)• Determinations per FTE INCREASED

• From 5.0 up to 6.7 (Target = 8.5)

RESULTS

SUCCESS FRAMEWORK

Set measurable goals and targets

Use thinking tools and principles

Create your system

Create your organization

Engage staff at all levels

Synchronize policy and projects

Stay focused

SET MEASURABLE GOALS AND TARGETS

Throughput Thinking

Set Measurable Goals and Targets

UnitMeasures

Translation Targets

Dashboards, Savings Ledgers

DASHBOARDMeasure Baseline Target

Most Recent Results

Month Quarter

UI Benefits Jan 2010 - Sept 2011   Jul-12 2012-2

Cost per determination $14.64 ≤ $14.50   $14.78

Quality of benefit timeliness 94% ≥ 95%   96.9% (2012-1)

Timeliness of first payments 94% ≥ 95% 95.6%  

UI claim duration (all claimants) 15.3 weeks ≤ 13 weeks   13.6 weeks

UI claim exhaustion rate 51.6% ≤ 35%   41.7%

Re-employment rate (all claimants) 59.8% ≥ 65%   62.3% (2011-3)

UI Tax Jan 2010 - Sept 2011     2012-2

Cost per $100 deposit $3.36 ≤ $2.00/$100 deposit   $1.17

Timeliness of employer payments 88.1% ≥ 95%   93.3%

DASHBOARDMeasure Baseline Target

Most Recent Results

Month Quarter

ESD Original 2011     Jul-12 2012-2

Cost per determination $57.66 $39.26 ≤ $31.86(FTE Reduction - 119)

≤ $31.86(FTE Reduction -

119)

  $36.91

Performance Review Team Accuracy

90% 94.4%(Oct ’11 - Jun ‘12)

≥ 95% ≥ 95% 95.3%  

Days to determination     ≤ 12 days ≤ 12 days 14 days  

Determinations per FTE/day 5.0 6.5 ≥ 8.5 determinations≥ 8.5

determinations  6.7

Average Wait Time     ≤ 15 minutes ≤ 15 minutes 8 min 19 sec  

Touch Time In progress In progress In progress In progress    

DASHBOARDMeasure Baseline Target

Most Recent Results

Month Quarter

WDD Jul 2011 - Mar 2012   Jul-12 2012-1

Cost per placement (all) $189.69 In progress    

Cost per intensive placement $1,055.15 In progress    

Cost per mediated placement $175.08 In progress    

Cost per self-service placement $8.34 In progress    

Performance Review Team Compliance 86% (Sep 2010 –

Jun 2012)≥ 90%    

Total placements per quarter 47,057 (Jan 2010 - Mar 2012) ≥ 50,000   62,910 

Placements per FTE 81 In progress    

Training related placements In progress In progress    

Self-service placements 24,256/51.5% of all placements In progress    

Market share of employers 14.7% (Jul 2010 - Sep 2011) ≥ 16.2%   14.9%

Total case-managed employment closures 58.2% (Jun 2011 - May 2012) ≥ 70% 69.4%  

Training completion rate 39.9% (Jul 2011 - May 2012) ≥ 50% 34.1%  

Total TA closures for employment 41,406 (Jan 2011 - Dec 2011) 50,000 per year In progress  

USE THINKING TOOLS

Root Cause Analysis

Use Thinking Tools

TOC Five Steps

ReduceMulti-tasking

Full Kit

MULTI-TASKING

Multi-tasking is stopping work on a task before it is completed in order to work on another task

MULTI-TASKING

• Multi-tasking significantly lengthens lead times, reduces overall throughput, and masks the presence of available capacity

• Starting tasks earlier doesn’t lead to earlier finishes, but instead leads to later finishes

• Individuals cannot prevent the efficiency losses of bad multi-tasking

• Reducing the number of open jobs (WIP) reduces the pressure to multi-task and significantly accelerates completions

TOC TOOLS: CONFLICT CLOUD

CREATE YOUR SYSTEM

Develop Throughput Operating Strategies

Create Your System

StrategyContainment

KeyLevers

CapacityFlow

CREATE YOUR ORGANIZATION

Administrative Framework

Create Your Organization

ReduceLayers

Increase SpansOf Control

Administrative/Operational Ratios

ENGAGE YOUR ORGANIZATION

PublishTOS

Engage Your Organization

TOCTraining

ThroughputRounds

Pay forPerformance

WHAT ARE THROUGHPUT ROUNDS?• Regular, short, stand-up meetings to link the frontlines

to the improvement process (daily, weekly, TBD)• Led by a supervisor with a team• The TOS is the focus of the meetings• We want everyone to compare how things are actually

going to the TOS and identify where there are gaps and generate ideas and strategies for closing those gaps

• We want to keep everyone thinking in a throughput mindset and keep them mindful of the TOS and metrics

• It is also a communication link for systematic changes being made and for filtering good ideas upward to be spread to other teams

SYNCHRONIZE POLICY AND PROJECTS

Align policy and IT around strategy

Synchronize PolicyAnd Projects

Eliminate misaligned projects/policy

Gatekeepers/Portfolio

Critical Chain/Agile Development

ROAD MAPS AND LEVER TRACKING

WHAT ARE TIGER TEAMS?

• Weekly meetings focused on driving swift and substantial improvement to work the lever of an operation

• Teams consist of:• Manager of the area• Supervisors of the area• Select staff members responsible for parts of the process• Other players identified as important in delivering

improvement• Facilitated by an internal or external expert• Weekly meetings are held for 2-3 hours

• The initial meeting includes some TOC training and thus is longer

STAY FOCUSED

Executive Meeting Management

Stay Focused

Lever Control

Recognition

Stakeholders

LEVER CONTROL

QUESTIONS?

State of UtahDepartment of

Workforce Services

Greg Gardner, DWS Deputy Directorgreggardner@utah.gov

THANK YOU!