Ken Roey

1
The definition of insanity is continuing to try
the same thing while expecting different
results

• Ken Roey
• Nov 20, 2009

2
Session Objectives

• What is Lean?
• Why use it?
• How do we get started?

3
Introduction

• Budget realities are forcing us to rethink the
  way we do business.
• Customer expectations are not changing.
• Cutting positions and/or budget without changing
  process invites chaos.

4
First Law of Thermodynamics

• Energy can neither be created nor destroyed.
• Corollary You cant do more with less!

5
A Personal Journey

• You get what you inspect, not what you expect!
• Theory X/Y, Total Quality Management, PDSA,
  Continuous Improvement, Six Sigma.
• Lean Manufacturing is based on principles of the
  Toyota Production System
• Adopted to above the shop floor or back office
  functions.

6
Customers Define Quality

• Learn to look at the process through the eyes of
  the customer.
• Value is in the eyes of the customer.
• What product / service attributes and features
• What quality level
• What delivery schedule
• What cost

7
Process Versions
Usually, there are at least three versions of any
process
What you want it to be
What it actually is
What you think it is
A clear understanding and communication of
thecurrent state is essential to establishing
the future state!
8
Benchmarks Cost and Productivity
9
HCPSS Approach

• Links to the Continuous Improvement cross
  functional strategy.
• Core group of eight.
• Went thru two days of training spread over six
  weeks for first event.
• Involved entire group in each event.
• Built off successes (celebrated at every
  opportunity).

10
What does our Customer Care About? (HS Permitting
Process)

• Accessibility to information.
• Many mentioned use of electronic means.
• Timeliness of approval.
• HCRP (primary customer) offered to take over
  function at own cost.
• Communications.
• Evidence of breakdown in communications was
  reflected in comments regarding HVAC,
  cancellations and other user problems.

11
Example of Macro Level Process Flow Map
Secretary inputs to EMS
When all else fails, read the tech manual
12
Example of Micro Level Process Flow Map
High School Use of Building Permits
(Perception)
CP Review
Mail to School
AAM review/ approval
Back to CO-Pony
CP Approval and EMS entry
Sort
Bundle by School
Apply
APPROVE
Wait 1 hour
HVAC
Distrubute 5 copies
SET UP
Custodian Scheduled
Custodian Arrives/opens
Custodian Monitors Event
Day Chief Review
DC Decision For OT
School Records OT
Custodian Cleans/Secures
Respond To concerns
COMPLETE
Pass to Finance
Bill in IFAS
BILL/COLLECT
Collect Revenue
Calculate
13
The Lean Team- Buy in for change vice management
announcing it.
14
The As is Process
15
Value Adding By Process (As Is)
AAM approval
Back to CO-Pony
CP Review
CP approval/EMS
Apply
Sort applications
Bundle by school
Mail to school
days
days
days
30 sec
30 sec
5 min
Lead time 65 days Value Add time 6
minutes Value Add
0.00006
6 min. 65 days x 24 hrs x 60 min.
16
Approval Process Takeaways

• Batch operations leading to severe bottlenecks.
• AAM set internal priorities in April, but dont
  review permits for conflicts until July.
• Using four databases to manage same information
  (EMS, CLC, Office Tracker, excel spreadsheets).
• Office space overwhelmed by paper, some of which
  is unreadable (5 carbons/permit).

Process was overwhelming people
17
The To be Process
18
Value Adding By Process (To be)
Apply
BV enters into EMS
CP review conflicts
CP Review
AAM enters school 1st priorities
CP approval
1 day
5 min
30 sec
Lead time 1 days Value Add time 5.5
minutes Value Add 0.004
5.5 min. 1 day x 24 hrs x 60 min.
19
Determine Current Process Metrics (Overall)
20
Implementation Plan
21
Implementation Task Tracker
22
Implementation Timeline

• Pilot at Centennial Long Reach HS for Fall 2009
  season.
• HCRP to enter all permits online for Fall 2009
  (20-30 of total applications).
• Implement at remaining high schools in Winter
  2009.
• Phase III (all ES/MS) implemented in two years.

23
What does our Customer Care About? (HS Permitting
Process)

• Accessibility to information.
• Many mentioned use of electronic means.
• This is FANTASTIC!! Know it's been years
  getting to this stage but worth the wait. This
  will be a huge help to those of us in the schools
  knowing that Chuck has approved events in our
  building.
• Timeliness of approval.
• HCRP (primary customer) offered to take over
  function at own cost.
• 60 days after deadline to prior to deadline.
• Has reduced our (customer) workload by 75!
• Communications.
• Evidence of breakdown in communications was
  reflected in comments regarding HVAC,
  cancellations and other user problems.
• Chuck did a great job negotiating with customers
  and making them feel like it was a win-win
  situation!

24
As Is Billing by Quarter ( of total revenue)
250K Allowance taken
6/30/09 AR 2.8M 9/30/09 AR 733K
25
Draining the Swamp
26
Issues Exposed

• Fees charged.
• PTAs and Boosters.
• Cancellations.
• Office or school?
• Custodial overtime.
• Required or entitlement based?

27
Workshops Held

• HVAC controls (two days).
• Dispatcher in place.
• Training plan created and implemented.
• Computer repair.
• Apple depot repair 41 days to 19 days.
• Established prioritized service level agreements
  w/customer.
• Vehicle repair.
• Consolidated two shops into one.
• Integrating refueling, parts and work order
  system w/HC Fleet Maintenance system.
• Human Resources next- Leave of absence.

28
Keys to Success

• Requires sustained commitment from stakeholders
  and senior leadership.
• Finding resources.
• Partnering w/Honeywell.
• Joined Maryland World Class Consortia.
• Ability of mid-level management to accept risks.

29
Minnesotas Enterprise Lean

• http//www.lean.state.mn.us/

30
?