Lean Six Sigma at USCG Finance Center

1
Lean Six Sigma atUSCG Finance Center

• CAPT Larry R. White, CMA, CFM, CGFM, CPA
• Commanding Officer, USCG Finance Center

2
Impact to Date

• Backlogs/Work in Process 1 day or less
• Just 4 months ago 20 days or more
• Managing to daily inflow, not prompt pay deadline
• Redeploy 20 FTE, about 20 more likely
• Overtime 50 of prior year
• Most recently 20 of prior period

3
Outline

• Initiating a Lean Six Sigma Effort
• Deciding to Deploying
• Lean Six Sigma in Financial Processing
• Early Stages
• Deploying to Doing
• Next Stage
• Doing to Changing Culture
• Whats working, Whats not

4
Initiating LSS Deciding to Deploying

• Philosophy Strategy For Organization
• What does your organization need to be really
  good at?
• Methods Tools to achieve desired results

5
Discipline Model
CAM-I Process Based Management Section
Philosophy

• Vision
• Mission
• Values
• Management Approach

• Process Based Management
• Continuous Improvement
• Cost Management
• Brand Management

Business Model
Strategy, Operating Plan, Initiatives
Methods
ABC, Process Maps, SPC, Control charts, Strategy
maps
Tools
ABM, CAM-I Cross, Continuous Improvement, Target
Costing, ABB, Baldrige, ISO, Six Sigma, CMM,
Balanced Scorecard, EVA
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Initiating LSS Deciding to Deploying

• Evaluate Current Challenges
• Competitive Environment
• Financial Statement Audit
• Escalating Financial Regulations Requirements
• IT System Complexity
• Burning Platform for change?

7
Initiating LSS Deciding to Deploying

• Educating the Organization
• Senior Managers
• Small Group Discussions, Books, Articles
• Supervisors
• Intro Training, 8 hr Training, Plant Visit,
  Production Exercise
• Workforce
• Newsletter Articles, Intro Training, All Hands
  Speeches, Trial Projects
• Continued Employment Job Stability

8
Lean Six Sigma in Financial Processing

• What is large scale accounting?
• A series of repetitive processes.
• Measures
• Quality, Efficiency, Customer Satisfaction
• Constant Enemies
• Backlogs, Process System Complexity, Errors
• Opportunities
• Improve Supply Chain, Optimize, Simplify, Provide
  higher value, forward looking services and info

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Early Stages of LSS Deploying to Doing

• LSS Champion Training
• 45 Managers and Supervisors
• Green Belt Selection Initial Training
• Application Process Information Sessions
• Value Stream Mapping Project
• Green Belt Training (30)
• Black Belt Selection Initial Training
• Initial Project Selection
• Initial Project Execution
• Group Projects
• Coaching

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Whats Next? Doing to Changing the Culture

• Demand Side Issues
• Managers Supervisors
• Creating the measures and climate
• Supply Side Issues
• The Workforce
• Performance System
• Sending Signals
• Leadership Issues
• Pace of Projects
• Alignment of Effort
• Rewards

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Lessons Learned

• Successes
• Created Climate for Acceptance
• Used Contracting time well
• Focus on First Line Supervisors
• Changed Manager Performance Evals
• Use Contractor for Coaching
• Hire Black Belt for a Project
• Standardize Tollgate Briefings
• Use VSM for training
• Focus on Backlog

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Lessons Learned

• Improvements
• More More Aggressive Black Belts
• Project Scoping
• Very tricky for Greenbelt level projects
• More Kaizen type Events for Quick Results
• Visual Team Based Process Measurements
• Project Pace Set a standard for Tollgates
• Project Responsibility Champion/Mgr

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Conclusion

• View Operations as a Production Process
• Accounting mindset to production mindset
• Ultimate objective is self directed, self
  improving teams.
• Performance Targets (Quality Efficiency)
• Improvement Targets
• Customer Satisfaction Targets
• Respect for People
• Focus criticism on the process, not the people