Value Stream Mapping the Delaware Air Quality Permitting Process

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Value Stream Mapping the Delaware Air Quality
Permitting Process

• Bob Zimmerman
• Innovation Action Council
• April 26, 2006

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Overview of Administrative Efficiency Processes

• Techniques are variations of Japanese
  manufacturing systems which look for waste and
  inefficient approaches to administrative (permit)
  timelines.
• These lean processes include Value Stream
  Mapping, Kaizen, and Six Sigma different names
  and slightly different approaches to reach the
  same bottom line.

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Delaware Value Stream Mapping Project Partners

• Delaware Economic Development Office
• Delaware Manufacturing Extension Partnership
• DNREC Office of the Secretary
• DAWM Air Quality Management
• General Motors
• Daimler Chrysler
• CIBA Specialty Chemicals
• ILC Dover, Inc.
• PPG Industries
• DuPont

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Delaware Value Stream Mapping Process Objectives

• Improve the permitting process without weakening
  regulatory requirements.
• Capture the experience of those who have to meet
  the regulatory requirements.
• Process redesign activity would be transparent to
  the public and the regulated community.

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Why Did DE Engage in a Value Stream Mapping
Process?

• Listening to voice of customer
• DEDO report on industry clusters to Governor -
  early 2005
• DNREC asked to identify specific process - AQ
  construction permitting selected
• Stakeholders (Public/ Industry/ DNREC)
• Improve permitting process
• Reduce processing time/effort
• Create greater business certainty
• Optimize DNRECs resources for other functions
• Improve environmental quality

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Perspectives from Delawares Business Community

• Cost issues due to
• Cumbersome and slow permitting process
• No allowance for green companies that are
  proactive and stay in compliance

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Using the Value Stream Mapping Tool
Value Stream Scope
Determine the Value Stream to be Improved
Understand How Things Currently Operate. This
is the Foundation for the Future State
Current State Drawing
Future State Drawing
Design a Lean Flow
Standardize for Later Improvement
Develop a Detailed Plan of Implementation to
Support Objectives (What, Who, When)
Implementation Plan
Implementation of Improved Plan
The Goal of Mapping!
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Focus of Value Stream Mapping

• Process Versus People
• Customer Requirements Versus Weve Always Done
  it that Way
• Value-Added Activities Versus Waste
• We Can Versus We Cant

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Points to Remember About Waste

• Consider Waste in the Context of the Value that
  the Process Provides to the Customer
• Waste is Really a Symptom Rather than a Root
  Cause of the Problem
• Waste Points to Problems within the System
• Find and Address Causes of Waste to Improve Flow
• Waste is Most Prevalent in the Information Flow
  of Non-manufacturing Processes
• Experts Suggests up to 40 of What We do Adds no
  Value

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What is a Value Stream?

• A Value Stream involves all the steps, both Value
  Added and Non Value Added, required to complete a
  product or service from beginning to end.

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What is a Value Stream Map?

• Visual Representation of a Value Stream
• Pencil Paper Tool
• Helps Reveal Waste Problems with Flow
• Establishes a Common Language to Document
  Processes
• Provides a Blueprint for Improvement

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History of DNREC / DEDO Value Stream Mapping
Process

• June 05 Initial Scoping Meeting
• July 05 Planning Session
• Aug 05 3 Day Training / Action Plan
• Sept 05 30 Day Progress Review
• Oct 05 60 Day Progress Review
• Nov 05 90 Day Progress Review
• Jan 06 120 Day Progress Review
• March 06 180 Day Progress Review
• May 06 240 Day Progress Review

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Delaware Value Stream Mapping

• For public transparency we created a web page for
  the DNREC/ DEDO Value Stream Mapping project
• http//www.dnrec.state.de.us/DNREC2000/VSM/Index.h
  tm
• All materials are available on the web page

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Mapping the Current State

• Created the goal for the session
• Defined what was in scope and out of scope
• Mapped the current state of the Air Quality
  Construction Permitting Process.

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Goal for VSM Project

• Develop and implement an air permitting process
  that results in expeditious issuance of
  environmentally sound, operationally flexible and
  achievable permits in a timeframe not to exceed
  90 days and ensure requirements are identified
  clearly prior to submittal reducing re-work in
  the process to 50

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Mapping the Current State

• Lessons learned
• Majority of process problems stem from the permit
  applications!
• First pass quality yield was lt 1
• Assuming perfect customer input, first pass
  quality yield was 18
• Re-work was nearly 100!
• Construction permits issued within 180 days

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Mapping the Current State

• Identified opportunities for improvement called
  Kaizen Bursts.
• Kaizen are rapid improvement processes
  focused on eliminating waste, improving
  productivity, and achieving continual
  improvement.
• Kaizen Bursts were used to help create the
  Future State.

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Creating the Future State

• Defined our future state where we wanted to be
  in one year
• Internal first pass quality yield - 80
• Customer information quality - 80
• Administrative completeness - 100
• Technical completeness - 80
• Re-work less than 50
• Construction permit issued within 90 days

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Achieving Our Future State

• Identified and scheduled specific tasks to
  accomplish. These tasks included
• create visual tracking boards
• implement a First-In-First-Out system
• create permitting checklists
• seek applicant feedback
• modify our applications to make them more user
  friendly
• modify application review process and
• collecting new performance metrics.

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Visual Tracking Board
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Project Highlights

• Surveyed applicants to discuss why they submitted
  incomplete applications and learned important
  information
• Reduced our permitting backlog from 199 AQ
  construction permits on 8/24/2005 to 48 on
  1/11/2006
• Implemented a First-In-First-Out system
• Now issuing AQ construction permits within 61
  days of receiving a complete application

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What We Learned from Applicants

• Difficult to know which form to complete
• Difficult to know where and how to obtain
  information that is requested
• Difficult to know which questions to answer and
  which ones are not applicable
• Applicants would like help with engineering
  calculations
• Applicants would like to know why specific
  information is requested

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Important Process Improvements

• Future State includes three important changes to
  the permitting process
• Pre-Submittal Meeting
• Administratively Complete Gate
• Technically Complete Gate

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DNREC Value Stream Mapping Air Permitting Process
Future State

• PLUS
• Top Down Commitment
• Cross Functional Communications
• Employee Involvement
• First Time Quality
• Partnership Support
• Customer Focus and Communications

SEPTEMBER, OCTOBER NOVEMBER 05

• MINUS
• Reduced Waste in
• Motion
• Waiting
• Processing
• Rework
• Lead time

Current State
Created a permitting process that is
environmentally sound, operationally flexible and
achievable.
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Next Steps

• We are still working on some of the action items
  required to implement the process.
• Weve enlisted volunteers (especially our
  permittees) to participate in the permit
  application redesign.
• We are reviewing/revising the metrics for permit
  processing, e.g. return rates

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Schedule

• Feb 06 - Complete drafts of all VSM action items
• Mar-April 06 - Train regulated community on new
  processes and documentation
• May-June 06 Debug new processes
• July 06 complete full implementation of new
  processes

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For more information

• Robert J. Zimmerman
• Office of the Secretary, Director of External
  Affairs
• Robert.Zimmerman_at_state.de.us
• 302-739-9000
• Ali Mirzakhalili
• Program Administrator, Air Quality Management
• Ali.Mirzakhalili_at_state.de.us
• 302-739-9400
• Amy Mann
• Environmental Engineer III, AQM
• Amy.Mann_at_state.de.us
• 302-323-4542

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State use of lean principles in administrative
process

• Michigan
• Delaware
• Iowa
• Nebraska
• Minnesota

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Common Lessons Learned by Delaware, Nebraska,
Michigan, Minnesota and Iowa

• Worth the effort
• Carefully select the situation or process
• There is a lot more waste than you realize
• Eliminating waste doesnt mean eliminating people
• Goal-setting is critical
• Communications (before, during and after)
• Active and visible management support
• Be prepared for resource issues
• Follow- thru essential to keep on track