The Service Excellence Programme

1
The Service Excellence Programme

• Application of Business Improvement Techniques
  NVQ level 2 to achieve improved business
  performance.

2

• Who are we?
• Don Burn Senior Lean Consultant
• Who do we work for?
• NAC Group are a North East based productivity
  development and training organisation working
  closely with further educations Colleges
• Link productivity consultancy with innovative
  workforce development
• NVQ Level 2 in Business Improvement Techniques
• We currently work with
• 9 colleges 4 in North East, 5 nationally
• 4 sectors manufacturing, health service, local
  government, finance
• 5 regions North East, Yorkshire, Midlands,
  Central London, South Wales

3

• Who do we work with?
• Manufacturing
• Nissan Motor Manufacturing
• Doncasters Group
• Medical Tech, Precision Forge, Bramah
• Cummins Engines
• Local Government
• North East County and District Councils (15)
• West Midlands County and District Councils (19)
• South East Regional Improvement Partnerships (4)
• NHS
• Newcastle Hospitals NHS Foundation Trust
• City Hospitals Sunderland NHS Foundation Trust
• Barnet Chase Farm Hospital NHS Foundation Trust

4
Aims and objectives of the programme

• Business Performance
• To improve business performance by applying
  productivity or lean techniques and also to
  provide evidence of improvement to assist in the
  achievement of the Business Improvement
  Techniques level 2 NVQ
• Sustainability
• The aim of the NVQ is to give a wide
  understanding of modern productivity principles
  and improvement techniques to a significant part
  of the operational organisation, front office,
  back office and frontline services
• Lean culture
• Focused on reducing waste and non-value added
  activities to create a lean environment. Staff
  make measurable improvements in their own
  functions.

5
Structure of BIT NVQ2

• Contains 6 Units
• Health and safety
• Effective team working
• 5S/5C including standard operations
• Applying continuous improvement
• Visual management
• Flow process analysis

6
Mechanism

• As many people as the organisation requires to
  enrol on BIT NVQ to ensure a common understanding
  of the process
• The BIT programme supports the change management
  process, project management and productivity
  intervention activities
• Trained workforce applies the tools and
  techniques in focused interventions to improve
  productivity of the chosen topic
• Training is applied to the real working
  environment, no going off to a college

7
Mechanism

• Productivity Needs Analysis (PNA) to identify
  real key areas of opportunity in process to be
  focused on
• The PNA includes a Training Needs Analysis
  element
• PNA and TNA used to measure the progress of
  improvement and training
• Flexible approach to the delivery of the Service
  Excellence Programme
• Project management and implementation support
  from NAC
• All activities focused on achieving targets
  identified at PNA stage

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Public Sector Delivery Plan
12-16 weeks
PNA
Productivity Needs Analysis
1 Day
QCD
Quality, Cost Delivery Storyboard
1 Day
Communication Day
½ Day
Business Improvement Techniques NVQ
Service Excellence Needs Analysis
SENA
2 Days
Activity 1
2 Days
Activity 2
2 Days
Activity 3
1 Day
Intervention
2 Days
Review
1 Day
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Public Sector Delivery Plan
PNA
QCD
QCD
QCD
QCD
QCD
QCD
SENA
SENA
SENA
SENA
SENA
SENA
10

• NECE Pilot Project (2006)
• Gateshead
• Purchase order Invoice processing
• Durham
• Payroll Department
• Post Room
• Tynedale
• Housing Applications Process

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• NECE Service Excellence Pilot Project Outputs
• Improvements to quality, cost, process time and
  customer satisfaction
• Learners completed NVQ 32
• Total savings identified gt211,000 pa
• Average savings per learner 6,600 pa

12
Intervention Activity Summary
SERVICES AND CUSTOMERS
CONTRACT NUMBER
ENGINEER NAMES
WORKSHOP DATES




Democratic Corporate Services Post Room
Durham Post Room Activity
Durham County Council, County Hall, Durham,
DH15UL
Peter Behan
10th July 16th August 2006
1. Aims Objectives
5. Maps and action plans
Corporate Services Post Room Team

• As defined by the team
• Make more efficient use of staff time
• Reduce Postal process waste
• Streamline postal process

2. Activity Plan

• Map Process Flow (SENA)
• Identify concerns
• Undertake BIT NVQ training
• Develop Future State Map
• Produce Action Plan

• To achieve the future state a detailed action
  plan was developed.
• A number of the actions were completed as part of
  the teams NVQ training and process improvement
  activities
• Key Actions
• Define reliable post arrival time
• Reduce the number of post rounds from 4 to 2
• Implementation of a fair use guide
• Standardisation of the process

The Future State was generated by identifying
concerns with the current process and developing
improvements. This yielded a potential
reduction in process time of 80 minutes
processing time per day. From improvements
identified between 3.5 - 4.5 hours per day can be
released from the post room schedule if the post
delivery time could be standardised.
3. Service Excellence Needs Analysis
Issues identified from the Current State Map were
tackled by the team through application of the
learning from the Business Improvement Techniques
(BIT) NVQ activities. This resulted in
standardisation of the process, development of a
fair use guide, development of skill matrix and
5S activity within the post room process
problem solving.
A Current State Map was generated from analysis
of the daily postal process. This showed that the
30 steps covered a total daily process time of
550 mins with a total distance covered of
8,140m Labour utilisation was at 43 due to
issues with morning delivery time issues
A total of 30 steps were mapped out from the
start of the process to the end. Only 13 of these
steps directly added value.
Concerns and improvements were identified by the
team at each step of the process and expressed in
terms of process waste, distance, time cost
6. Summary
7. Sustainability

• Potential Improvements
• Labour Saving (3 persons 3.5 4.5 hrs/day)
  18,100 - 23,274 pa
• based upon defined delivery time at a cost of
  2,661 per annum across all 8 services
• Simplified process - Work content of 550 mins per
  day reduced to 470 mins per day
• Standards developed
• Improved morale (Time available for staff
  development)
• More efficient service - Earlier/more reliable
  1st delivery - 830-930am

A detailed action plan has been developed to
ensure all identified improvements are realised
understand and follow the improved process. The
action plan must be closely adhered to in order
to generate the improvements and savings
identified. To ensure sustainability of the
improvements, data collection methods including
tally charts have been implemented to monitor
effectiveness. The transferability of these
Improvements to other Post Rooms requires further
investigation, as there is potential to multiply
the improvements identified.
4. Scope
Democratic Corporate services Post Room
process Analysis of daily activities from
receipt of morning post through to collection of
final post
13
Intervention Activity Summary
SERVICES AND CUSTOMERS
CONTRACT NUMBER
ENGINEER NAMES
WORKSHOP DATES




Purchasing Invoice Processing Team
Community Based Services, Learning Children,
Learning Culture
Gateshead Purchasing Invoice Processing Team
Peter Behan
5th July - 1st August
1. Aims Objectives
5. Maps and action plans

• As identified by the team
• Simplify standardise the process
• Increase customer satisfaction
• Provide a faster more efficient service
• Reduce paperwork storage
• Reduce queries duplication
• Reduce unit costs
• Improve data accuracy
• Improve performance indicators

2. Activity Plan

• Map Process Flow (SENA)
• Identify concerns
• Undertake BIT NVQ training
• Develop Future State Map
• Produce Action Plan

Issues identified from the Current State Map were
tackled by the team via the Business Improvement
Techniques (BIT) NVQ activities. Particular
focus was placed on standardisation of both the
documentation the overall process across
departments. This allowed and simplified the
development of electronic document formats with
increased data accuracy and reduced processing
delay time. Prototypes of these documents and
user guides were developed by the team.
To achieve the future state a detailed action
plan was developed. A number of the actions were
completed as part of the teams NVQ training and
process improvement activities. The Action Plan
provides details of countermeasures to address
the identified concerns, including
responsibilities and priorities.
3. Service Excellence Needs Analysis
The Future State Map was generated by identifying
concerns with the current process and developing
improvements. This resulted in a reduction in
process time of almost 2 hours and reduction in
delay of over 88 hours. Postage costs, paperwork
and required storage space were also
significantly reduced.
A Current State Map was generated from analysis
of the process from raising a request for goods
services through to payment of a supplier
invoice. This showed that the 38 steps covered a
total of 10.7 hours of processing time and up to
495 hours of delay from beginning to end.
A total of 38 steps were mapped out from the
start of the process to the end, i.e. a customer
requesting goods/services, through to supplier
payment. Only 9 of these steps directly added
value.
Concerns and improvements were identified by the
team at each step of the process and expressed in
terms of process waste, distance, time cost
6. Summary
7. Sustainability
Standard processes were developed across the
departments. including documentation (both
electronic paper based) and operating
procedures. Potential reduction in processing
time from 10.7 hours to 8.9 hours. Based on
current annual volumes of requisitions, purchase
orders and invoices processed equates to a
reduction in processing time of over 25,000 hours
per annum up to 71,152 per annum Faster
response to customers potential reduction of
88 hours of delay time. Over 90 reduction in
required paperwork and storage. up to 2,530
per annum Reduction in postage costs of up to
2,371 per annum Increase in data accuracy and
reduction in time spent resolving concerns
A detailed action plan has been developed to
ensure all stakeholders understand and follow the
improved process The action plan must be closely
adhered to in order to generate the improvements
and savings identified. To ensure sustainability
of the improvements, key performance indicators
of 3 day response time and unit costs for both
invoices and purchase orders must be monitored
regularly. The transferability of these
Improvements to other departments involved in
purchasing invoicing requires further
investigation, as there is potential to multiply
the improvements identified
4. Scope
Purchasing Invoice Processing across the
following services Learning Children and
Community Based Services
14
Intervention Activity Summary
SERVICES AND CUSTOMERS
CONTRACT NUMBER
ENGINEER NAMES
WORKSHOP DATES




Tynedale Council, Prospect House, Hexham. NE46
3NH
Processing Housing Applications within Tynedale
Tynedale Housing Application Team
Peter Behan
27th June - 11th August
Housing Application Team
1. Aims Objectives
5. Maps and action plans

• As identified by the team
• Release Resource
• Identify reduce duplication
• Improve reliability of data
• Reduce data errors
• Identify eliminate process waste

2. Activity Plan

• Map Process Flow (SENA)
• Identify concerns
• Undertake BIT NVQ training
• Develop Future State Map
• Produce Action Plan

Issues identified from the Current State Map were
tackled by the team via the Business Improvement
Techniques (BIT) NVQ activities. Improvements
were identified releasing time, paperwork and
improving data accuracy. Standardisation of the
process was identified by the team Along with
improved visual management systems
The Future State Map was generated by identifying
concerns with the current process and developing
improvements. This resulted in a reduction in
process time, a reduction in delays required
paperwork. The standard change in circumstances
form was reduced from 12 pages to 4 Standard
letter production was analysed identifying a
saving of 16 hours of processing time per month
A Current State Map was generated from analysis
of the process from beginning to end. The process
steps were analysed, with concerns and
improvements identified. Particular focus was
placed on accuracy of data within the housing
database. Reduction of duplication and paperwork
and reduction of processing time per application.

3. Service Excellence Needs Analysis
To achieve the future state a detailed action
plan was developed. In total 50 actions were
highlighted, the majority of which were classed
by the team as low cost/high benefit. The
majority of the actions were within the control
of the team
A total of 32 steps were mapped out from the
start of the process to the end, i.e. a housing
application being submitted, through to a housing
decision. Only 9 of these steps directly added
value.
Concerns and improvements were identified by the
team at each step of the process and expressed in
terms of process waste, distance, time cost
6. Summary
7. Sustainability

• The team analysed the root causes behind
  inaccuracies within the housing database and
  identified methods to improve quality and reduce
  processing time and time spent confirming data
  accuracy.
• Data entry reduction and improvements to the
  database identified a saving of up to 40 hours
  per month 4,520 p.a.
• Postage costs, paperwork and required storage
  space were also significantly reduced.
• The team developed a standard change in
  circumstances form, which was a reduction from 12
  pages to 4, with a standard method for completion
  simplifying the process for the end user,
  reducing processing time and cost
• Duplication of paperwork within the process was
  highlighted, in some cases triplicate paperwork
  could be reduced to single copies.

A detailed action plan has been developed to
ensure all stakeholders understand and follow the
improved process The action plan must be closely
adhered to in order to generate the improvements
and savings identified. A number of the actions
were completed as part of the teams NVQ training
and process improvement activities. The Action
Plan provides details of countermeasures to
address the identified concerns, including
responsibilities and priorities. To take on the
improvements identified within the database the
authority are using external expertise to
implement the changes.
4. Scope
Housing Application Process
Regeneration Communities Housing Application
Process Analysis of complete process covering
both administrative and assessment areas
15
Intervention Activity Summary
SERVICES AND CUSTOMERS
CONTRACT NUMBER
ENGINEER NAMES
WORKSHOP DATES




Treasurers Payroll Department
Durham Payroll Activity
Durham County Council, County Hall, Durham,
DH15UL
Peter Behan
18th July 21st August 2006
1. Aims Objectives
5. Maps and action plans
Treasurers Payroll Team

• As defined by the team
• Understand current state of processes
• Define standard best practice processes
• Define process ownership
• Improve efficiency / streamline processes
• Release time
• Reduce costs to increase business
• Reduce paperwork duplication
• Improve quality
• Celebrate achievement

2. Activity Plan

• Map Process Flow (SENA)
• Identify concerns
• Undertake BIT NVQ training
• Develop Future State Map
• Produce Action Plan

• To achieve the future state a detailed action
  plan was developed.
• A number of the actions were completed as part of
  the teams NVQ training and process improvement
  activities
• Key Actions
• Standardisation and amalgamation of payrolls
• Standardisation of the process
• Electronic timesheet trial
• Implementation of data quality monitoring system
• Implementation of visual management system
• Analysis of the sickness reporting process

The Future State was generated A new payroll
system is currently in implementation phase.
Many of the process improvements identified are
being integrated into the roll out of the
system. Automated transfer of payroll data for
example, results in reduction in processing
time. 53 Payrolls were analysed and opportunity
for amalgamating the payrolls was identified,
simplifying the process and reducing total time
and cost in one example reducing from 14 payrolls
to 1
Issues identified from the Current State Map were
tackled by the team through application of the
Business Improvement Techniques (BIT) NVQ
activities including Standardisation of the
mileage and additional claim formats Development
of a comprehensive visual management system
highlighting payroll deadlines Identification of
data quality problems data capture system
developed Electronic timesheet concept developed
3. Service Excellence Needs Analysis
The Current State Map was generated from analysis
of the monthly payroll process. This highlighted
a number of concerns with supplied data quality,
process variation and duplication. Data was
gathered in terms of quality, cost and time.
A total of 46 steps were mapped out from the
start of the process to the end. 21 of these
steps directly added value.
Concerns and improvements were identified by the
team at each step of the process and expressed in
terms of process waste, distance, time cost
6. Summary
7. Sustainability

• Potential Improvements
• Self certification process for mileage claims
  developed by the team - this removed the need for
  the proposed process which required 4 extra staff
  , saving 100,000 p.a.
• Reduction in supplemental run costs and improved
  data accuracy
• Significant reduction in processing time
• Standardised O/T form, releasing up to 12,500
  labour per payroll - Released time to be used to
  expand external business. Team currently
  gathering data on revised capacity across
  individual payrolls

A detailed action plan has been developed to
ensure all identified improvements are realised
understand and follow the improved process many
of the actions are already in pilot/implementation
phase. To ensure sustainability of the
improvements, data collection methods including
tally charts and regular have been implemented to
monitor effectiveness the key measures are cost
per payroll, processing time and payroll
accuracy. The team identified the opportunity for
several further activities within the payroll
department to accelerate the achievement of
improvements identified and expand their impact
into other areas.
4. Scope
Payroll process Analysis of complete monthly
payroll activities from data collection through
to payment including supplemental runs
16
Delivery

• NVQ delivered by appropriate college of further
  education
• National reputation for vocation training
• Experienced in NVQ delivery
• Provide QA systems for NVQ (Internal
  verification)
• Materials developed by NAC
• Delivered BIT to NMUK (Nissan)
• Assessors trained in delivery modules by NAC

• Change Management and Interventions delivered by
  NAC
• Strategy development including objectives and
  KPIs
• Communications
• Productivity interventions
• Focused support and mentoring
• Project review and evaluation

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Examples of Focus Areas

• Planning
• Building Control
• Leisure Services
• Policy and Development
• Housing Business Development
• Maintenance
• Carelink
• Community Services
• Tenancy Enforcement Team

• Car Parking and Concessionary Travel
• Finance and Procurement
• Council Tax Registration and Billing
• Directorate Admin Support
• Courier Services
• Development Control
• Invoice processing/Payroll
• Performance Indicators

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Programme overview
Detailed PNA
Determine company targets strategy
Productivity Interventions
Workforce Development delivery
Mentoring, Support Review
Evaluation
Interim report
Final report
19
Summary

• Pilots in North East Local Authorities delivered
  6,600 per person 70/30 split
  cashable/non-cashable
• NVQ delivered by college of further education
  currently fully funded by the further education
  colleges
• Project management and interventions delivered by
  NAC
• Timing places secured for this academic year if
  enrol by Mid March, further places for next
  academic year
• Next steps agree projects/process areas, enrol
  individuals, agree delivery plan