Implementing Continuous Process Improvement in Our Schools

1
Implementing Continuous Process Improvement in
Our Schools

• John Helbling, PE, CLSSBB
• Director, Field Engineering Processes
• Alliant Energy

2
Agenda

• Introduction
• Educations Challenge
• Business Process Improvement Overview
• Introduction to Lean
• Business Process Kaizen as a tool to develop a
  Continuous Improvement Culture

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Educations Challenge

• Compete for funding.
• Compete for talent.
• Compete for students.
• Compete for community growth and quality of life.
• Compete for the hearts and minds of the general
  public.

• Do more with less.
• Expand Services
• Improve Student Performance
• Meet Increasing Public Goals
• Keep Students in School
• Meet Workplace Requirements

4
CRCSDs Response

• Established Strategic Plan focused on Customer
  Satisfaction and Continuous Improvement.
• Vision, mission, values, goals and guiding
  philosophy of each department are aligned.

5
Business TransformationGrowth Opportunities

• Increased responsiveness
• Provides flexibility to meet changing customer
  needs without backlog
• Improves satisfaction of delivery of services
• Improves quality reliability
• Builds customer trust loyalty
• Gives a competitive advantage that is hard to
  match quickly

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Evolution of Process ImprovementHavent we been
here before?
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What is Lean?

• Lean as a business philosophy refers to a way of
  thinking that focuses on waste elimination.
• Waste describes the elements of a process that
  add no value to the service or product required
  by the customer.
• Lean thinking demands an organizational culture
  that is intolerant of waste in all forms.

All steps in a process can be categorized as
waste or value added.
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Principles of Lean Thinking

• Precisely define value from the customer's
  perspective
• Identify the value stream for each process
• Allow value to flow without interruptions
• Let the customer pull value from the process
• Continuously pursue perfection

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Alignment of Business Process Improvement(BPI)
Methodologies
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Lean? Six Sigma? Lean Six Sigma?

• Lean Thinking is based on
• Simple but powerful tools
• Engages the creativity of the people doing the
  work
• Rapid process improvement
• Teaches people to see waste
• Six Sigma is based on
• Data dependent
• Deep analysis of data
• Inferential Statistics
• Processes need to be in control and waste
  eliminated

Recommendation Adopt Lean as your BPI tool set
and philosophyIncorporating any existing TQM and
other QC initiatives.
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Lean Education

• In its landmark 2004 study, Organizational
  Improvement Accountability Lessons for
  Education From Other Sectors, the Rand
  Corporation concluded that Lean Process
  Improvement offers educators the most powerful
  improvement and accountability model available to
  meet the challenges of the 21st century.

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Lean Culture

• Continuous improvement focus
• Bias for action
• Creativity before capital
• Total employee / stakeholder involvement

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What Is Lean Education Transformation?

• Focusing on lead-time reduction to improve
  responsiveness
• Achieving simultaneous improvements in quality,
  cost, and delivery
• Leveraging improvements for competitive advantage
• Building a continuous improvement culture to
  sustain the gains
• Deploying Kaizen Methodology for rapid
  transformation

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Lean Tools

• Strategic Tools Leadership Heavy Determines
  WHAT
• Voice of Customer - VOC
• Kano Analysis
• Quality For Deployment QFD (aka House of
  Quality)
• Value Stream Mapping VSM
• Hoshin Policy Deployment
• Tactical Tools Workforce Heavy Determines HOW
• 5-S
• Kaizen Events
• 5-S
• Work flow
• 2 P/Replication
• 3 P - Mini DFSS
• Safety
• Changeover

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Business Process Kaizen(Change Better)
Lean Transformation A Time-Based Strategy
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Kaizen Methodology

• Is focused on lead-time and variation reduction
• Is measurement focused
• Is data driven, and fact based
• Provides a baseline for future improvements
  (Kaizen)
• Drives cultural change

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Time-Based Impacts on Processes and Delivery of
Services
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Steps to ImplementingBusiness Transformation

• Create a business process map to identify areas
  of opportunity

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What is a BusinessProcess Map?

• A tool used to
• Display the current process and information flow
  from the customer request through the delivery of
  the service to the customer
• Identify opportunities and establish project
  priority
• Identify and set the vision for the future state
  Business Process Map.

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Process Flow Map
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Steps to ImplementingBusiness Transformation

• Create a business process map to identify areas
  of opportunity
• Identify value adding and non-value adding
  activities and set new performance targets

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Value-Add vs. Non-Value-Add Definitions

• Value-Adding Activities
• ...transform materials and information into
  products services which the customer wants.
• Non-Value-Adding Activities...
• consume resources, but don't directly contribute
  to the product or servicewaste!

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Categories of Waste

• Production of Defects
• Overproduction ahead of demand
• Unnecessary Transport of materials
• Waiting for the next process step
• Inventories (Excess material/information)
• Unnecessary Movement by employees
• Over Processing due to poor tools and product
  design

Lead time reduction is achieved by identifying
and eliminating waste.
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Causes of Waste

• Changing Government
• Practices and Policies
• No Decision Rules
• Poor Visual Control
• Disorganized Workplace
• Lack of Training
• Obsolete Forms or Form Design
• Poor Layout
• Government Regulations w/
• Ambiguous Interpretation

• Functional Organization
• Technology Gaps
• Excessive Controls
• Dated Process Design
• No Back-up/Cross Training
• Unbalanced Workload
• Batching of Forms /
• Applications
• Data Entry Batching

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Value Adding by ProcessSubmittal of Application
5 hrs.
3.0 hrs.
30 sec.
5 mins.
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Steps to ImplementingBusiness Transformation

• Create a business process map to identify areas
  of opportunity
• Identify value adding and non-value adding
  activities and set new performance targets
• Create process flow

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Enhanced Spaghetti Map

• Shows information flow
• Shows staff flow
• Aids in identifying wasteful activities by
  viewing it from the basis of physical layout
• Shows what is actually happening versus what
  people think happens
• Familiarizes everyone with the process
• Identifies variations in information
  handling/storage

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Example Spaghetti Map
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Steps to ImplementingBusiness Transformation

• Create a business process map to identify areas
  of opportunity
• Identify value adding and non-value adding
  activities and set new performance targets
• Create process flow
• Reduce variation and improve quality

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Process Must Be Repetitive

• Customer must always get the same answer no
  matter who they ask
• Customer must get the same answers no matter what
  time of the day, or day of the week they ask
• Customer must always get on-time, complete, and
  accurate information

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Reduce Variation

• Sources and causes of variation make standard
  business processes appear to be random,
  non-standard work
• Missing information
• Wrong work sequence
• Non-standard training processes
• Non-standard decision aids

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Assuring First-TimeQuality Means...

• Build system with appropriate information
• Build poke-yoke (mistake-proofing) devices for
  common problems
• Never passing a defect on to the next process
• Detecting abnormalities
• Responding immediately
• Eliminating root causes
• Establishing clear decision rules

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Steps to ImplementingBusiness Transformation

• Create a business process map to identify areas
  of opportunity
• Identify value adding and non-value adding
  activities and set new performance targets
• Create process flow
• Reduce variation and improve quality
• Intense focus on daily performance management and
  visual control

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Visual Management
Problem!
Alert
Data Display
Prevent
React
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Management Team Must

• Establish a clear vision of continuous
  improvement
• Communicate, communicate
• Vision
• Implementation Plan
• Passion and commitment
• Walk the Talk
• Active participation know the principles
• Constant reinforcement daily, weekly, monthly

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Lean Education Road Map

• Provide Directors, Managers, and Team Leaders
  with BPI Leadership Orientation.
• Conduct Proof of Concept Event
• Establish initial target for improvement
• Conduct Kaizen event
• Use Borrowed facilitation
• Public event observe event and reportout.
• Establish priority list of key areas of focus for
  improvement
• Perform additional events
• To further engage organization
• Give more experience to internal facilitators
• Expand internal facilitation skills
• Establish delivery model
• Centralized
• Decentralized
• Hybrid

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Questions
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References and Acknowledgments

• State of Iowa, Department of Management, Lean
  Enterprise - http//www.dom.state.ia.us/planning_
  performance/lean/index.html
• Lean Enterprise Institute - www.lean.org
• Rand Corporation, Organizational Improvement and
  Accountability, Lessons for Education from other
  sectors - http//www.rand.org/pubs/monographs/200
  4/RAND_MG136.pdf
• Lean Education www.leaneducation.com
• Alliant Energy