State of Michigan Air Permit Process

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State of Michigan Air Permit Process Value
Stream Mapping
Steve Chester Director MDEQ Jim Sygo Deputy
Director MDEQ
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Reason 1 for Participating
Circle of
Circle of Influence
Concern
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Reason 2 for Participating

• Trained, Impartial Facilitator
• Stakeholders Part of the Process
• Have interest in making it a success
• Something Would Have Been Required
• Needed Buy-in of All

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Strategic Planning

• A 5-Point Model

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Background
Peter F. Drucker is a writer, teacher, and
consultant specializing in strategy and policy
for businesses and social sector organizations.
He has consulted with many of the world's largest
corporations as well as with nonprofit
organizations, small and entrepreneurial
companies, and with agencies of the U.S.
government. He has also worked with free-world
governments such as those of Canada, Japan, and
Mexico. He is the author of thirty-one books
which have been translated into more than twenty
languages. Thirteen books deal with society,
economics, and politics fifteen deal with
management. Two of his books are novels, one is
autobiographical, and he is a co-author of a book
on Japanese painting. He has made four series of
educational films based on his management books.
He has been an editorial columnist for the Wall
Street Journal and a frequent contributor to the
Harvard Business Review and other periodicals.
Drucker was born in 1909 in Vienna and was
educated there and in England. He took his
doctorate in public and international law while
working as a newspaper reporter in Frankfurt,
Germany. He then worked as an economist for an
international bank in London. Drucker came to the
United States in 1937. He began his teaching
career as professor of politics and philosophy at
Bennington College for more than twenty years he
was professor of management at the Graduate
Business School of New York University. The
recipient of many awards and honorary degrees,
Peter Drucker has, since 1971, been Clarke
Professor of Social Sciences at Claremont
Graduate University. Its Graduate Management
School was named after him in 1984. Peter
Drucker has been hailed in the United States and
abroad as the seminal thinker, writer, and
lecturer on the contemporary organization. In
1997, he was featured on the cover of Forbes
magazine under the headline, "Still the Youngest
Mind," and BusinessWeek has called him "the most
enduring management thinker of our time. Mr.
Drucker has received honorary doctorates from
universities around the world. He is Honorary
Chairman of the Leader to Leader Institute. He is
married and has four children and six
grandchildren.
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Planning Model
Each successful organization must know and
understand, or establish its Mission Vision Core
Values
It must also be able to develop and implement
the Objectives and Methods/Action Steps It will
use
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Planning Model Five Points
Mission Vision Core Values Objectives Methods/Acti
on Steps
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Planning Model Point One - Mission
The Mission of an organization is simply the
reason why it exists Therefore, the Mission
Statement must express the answer to the
question, Why do we exist?
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Leadership Model Point Two - Vision
The Vision is the picture of what the desired
future will look like An organization must be
working towards some goal some preferred
future Without an expressed Vision, the
organization will adopt a number of small visions
that each group or individual will work toward.
These may complement one another or contradict
one another. Achieving the Vision is
leaderships primary function
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Leadership Model Point Three - Core Values
The Core Values of an organization are those
deeply held convictions, priorities and
underlying assumptions that make each
organization unique Much like the individuals
value system directs his or her lifes decisions,
so do the Core Values direct the decisions of the
organization. Understanding these Core Values is
imperative for leadership. Bringing change to
the Core Values is exceptionally difficult, but
sometimes necessary.
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Leadership Model Point Four - Objectives
With regard to the Vision of a preferred future,
Strategies answer the question, How will we get
there?
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AQD Permit SectionStrategic Plan (Part 1)

• Mission (why we exist)
• Vision (what we want to become)
• Core Values (what we hold dear to us)

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Discussion of Mission, Vision and Values
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Key Core Value Independent Technical Review
Applicants Perception
What is it? The Regulated Communities perception
of AQDs Independent Technical Review involves an
analysis of the application to arrive at an
independent conclusion.
Review
DATA
Undefined Outcome
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Key Core Value Independent Technical Review
Reality
AQDs Independent Technical Review involves an
analysis of the application, including all
supporting documentation, to determine whether it
adequately supports its own conclusions.

Defined Outcome
DATA Review
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Air Permitting Team

• Strategic Plan

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State of Michigan Air Permit Process

• Leadership Panel
• Steve Chester MDEQ, Jim Sygo - MDEQ, Ray
  Tessier General Motors, Tom Breneiser
  DaimlerChrysler, Andy Hobbs Ford, Robert
  Swanson MLEG, Mike Johnston MMA, Vince
  Hellwig - MDEQ
• Workshop Participants
• AQD Lynn Fiedler, Steve Zervas, Bill Presson,
  Bob Byrnes, MaryAnn Dolehanty, Paul Collins,
  Cathy Simon, Steve Kish, Dennis Armbruster, Scott
  Klipa
• Ford - Dennis Karl
• DaimlerChrysler - Mary Snow-Cooper, Debra Rowe
• General Motors - Steve Tomaszewski, Nick Ramos,
  Mike Zielke, Sue Bracciano, Chris Bates, Frank
  Kodrack
• MMA Mike Johnston
• MDEC Susan Holben
• Value Stream Mapping (VSM) Coaches
• Tim Connors, Carrie Saville

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Purpose Statement

• The purpose of the Air Permit Team is to 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 6 months and ensure requirements are
  identified clearly prior to submittal reducing
  rework in the process by 90 .

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Framework for VSM Air Permit Process

• Suppliers
• 1.   Applicants
• 2.   Regulations
• a.   EPA
• b.   MDEQ
• 3.   Public
• 4.   Consulting firms supporting applicant

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Framework for VSM Air Permit Process

• Inputs
• 1.   Application
• 2.   Regulation and Policies
• 3.   Project Related to Applicant
• 4.   Data related to project
• 5.   Schedule / Project Timeline
• 6.   Site selection
• 7.   Citizen Complaints
• 8.   Environmental, Legislative and Local
  Government
• 9.   DLEG Other State Agencies

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• PROCESS START POINT
•   Pre-Application Meeting
•  
• PROCESS END POINT
•   Permit Issuance
•  
• Process Name
• Process Owner
•  
• Outputs
• 1.   Permit with Value Added Special Conditions
• 2.   Response to Comment Documents
• 3.   Permit Evaluation Form
• 4.   Public Announcement of Final Decision

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Benefactors 1.   Applicant 2.   Public
  Benefactors Requirements 1.   Requirements
are clearly defined and communicated at Start of
Process 2.   Permit Issuance in less than 6
months 3.   Manufacturing flexibility with
environmental protection 4.   Permits with
achievable, demonstrable and value added special
terms and conditions 5.   Permits that are in
compliance with State and Federal
Requirements 6.   Permits process that is
efficient, minimizes waste, and is clear,
transparent and concise 7.   Supports Final
Decision
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Workshop Dates
Pre-Scoping Session March 1, 2004 VSM
Training March 29, 2004 Scoping
Session April 1, 2004 Workshop April 26,
27, 28, 2004
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What is Our Current Process?

• Well take some time to draw our process.
  Afterwards, well look at what the Air Permitting
  Team developed.

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Current State Map

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Types of Waste

• Mura waste of inconsistency, unevenness
• Muri waste of unreasonableness o overburden
• Correction rework, work done because of errors
  in the previous process
• Overproduction Making more than is necessary,
  working ahead
• Motion Unnecessary people motions
• Material Movement Unnecessary Handoffs
• Waiting People waiting for information
• Inventory Information waiting in queue
• Processing Redundant or unnecessary processing

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Root Cause Analysis
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Root Cause Analysis
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Root Cause Analysis
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Measurable Metrics Performance
Estimated during Scoping
Responsiveness Cost
Responsiveness
Quality
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Future State Map

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Highlights of Future State Air Permit Process
Permit scoping meeting

• Future
• MDEQ Permit Engineer Assigned
• One-Three day intensive application scoping
  meeting with applicant
• Inputs
• Project description
• Proposed BACT, LAER et al
• New Toxics screening
• Suggested/Potential conditions
• Outputs
• Preliminary BACT, LAER agreement
• Timing Charts with Milestones
• Draft Permit Conditions
• Follow up work punch list
• Issue identification

• Current
• Technical Information requests 62 days average

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Highlights of Future State Air Permit Process
In the first 21 days

• The MDEQ will
• Begin new toxics screening as necessary
• Technical evaluation
• Emission calculations
• Control Technology
• Regulation/ Rules
• Refine Draft conditions

• The Applicant will
• Reply to requests for information clarification

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Highlights of Future State Air Permit Process
Complete Permit Evaluation

• Current
• 98 days average
• Letters and emails often one way

• Future
• 21 49 days
• Following Look See 1 another all day intensive
  outstanding issues
• 14 days to resolve outstanding issues,
  deficiencies
• intent to deny notification after Second
  iteration

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Highlights of Future State Air Permit Process

• Eliminate rework / waiting in permitting process
  ensuring requirements, issues, and goals are
  identified and clearly communicated prior to
  application submittal and/or initiating
  engineering review
• Ensure review process is on schedule and meeting
  established goals
• Provide to all permit applicants a clear,
  efficient, written process for resolving
  outstanding, permit-related issues
• Clearly defined conditions review process to
  eliminate rework and waiting
• An informed final permit decision in a timely
  manner
• New permit process is effectively communicated
  and training is provided to interested parties in
  a timely manner.

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Expected Results
SPQRC IMPACT

• Quality
• Improve FTQ of Air Permit Process from 0 to gt
  than 70
• Responsiveness
• Improve lead time of Air Permit Issuance from
  avg. 367 392 days per permit to avg.147 182
  days for permits utilizing permit scoping process
  and avg. 175 210 days for all other applicants.

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AQD Permit SectionStrategic Plan (Part 2)

• Objectives (where and how we want to make an
  impact)
• Methods/Action Steps (how we get it done)

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Planning Model Point Four - Objectives
With regard to the Vision of a preferred future,
Strategies answer the question, How will we get
there? Because establishing and achieving the
Vision is leaderships primary role, leadership
must be able to establish the Objectives that
will move the organization to fulfill the Vision.
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Leadership Model Point Five Action Steps
Methods/Action Steps include the work products,
tools or abilities that will need to be developed
and used to successfully implement the Objectives
to achieve and live-out the Vision
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If You Dont Do Anything, You Cant Do Anything
Wrong!
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Implementation Plan
ACT
CHECK
PLAN
DO

• Objective Desired Outcome
• Methods/Action Steps What to do to get there

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Objectives
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Next Steps

• Complete Methods/Action Steps
• Meet at 30, 60, 90, and 120 Day Intervals with
  Leadership Team to Review Status
• Implement New Process September 1