Upload
phamtu
View
219
Download
2
Embed Size (px)
Citation preview
Department of Environmental Quality
Lean – Kaizen Overview
APICSThe Association for
Operations Management
Portland Chapter26 March 2009
APICS builds operations management
excellence in individuals and enterprises through
superior education and training, internationally
recognized certifications, comprehensive
resources, and a worldwide network of
accomplished industry professionals.
Department of Environmental QualityLean – Kaizen Business Process Improvement
Lean - Kaizen
Business Process ImprovementOregon Department of Environmental Quality
John L. Reel
Management Services Division
Process Improvement Coordinator
Oregon Department of Environmental Quality
Overview
DEQ‟s 2008 launch was directed with the understanding that
the Lean – Kaizen methodology must prove itself.
Our results… Lean – Kaizen has proven
itself to DEQ by eliminating resource waste,
excessive processing steps, ambiguous
understandings, corporate and region
miscommunications, and just down right
stupid stuff that no one could figure out.
DEQ‟s Implementation Strategy
• Strong Upper Management SupportDeputy Director is the DEQ Lean Champion
• Management and Staff EmpowermentLean – Kaizen teams are empowered by signed contract
• Oregon DEQ and DHS Lean collaborationExpanded ECOS Lean methodologies
• Establishing a distributed Lean cultureCoaching, mentoring, training, and dispersing knowledge
• Both private & public sector collaborationPrivate and public sector Lean – Kaizen team members
Oregon Lean CollaborationEnvironmental Council of the States
DEQ Implementation relies upon…
• “most-pain” and “highest gain” the first 2 years
• implementing “ROI” project selection in 2 ½ years
• “applying common sense, uncommonly”
• delivering the most bang for our resource investment
• not relying upon technology for solutions
2008 2009 2010 2011
Most-Pain Selection Method
Logical Selection Method
2008 – 2009: Implement an 18 month “most-pain,” cognitive style
plan that is commonly in the early Lean business implementations.
2009 – 2010: Implement a phasing in logical project selection plan
that will significantly increase DEQ‟s Return on Investment (ROI.)
DEQ Implementation relies upon… continued
• least implementation costs
• cultural “Lean Tipping Point”
• rapid measurable improvements
• distributed Lean culture
• Lean empowered management/staff team
Lean Path
• We have the two optional
events; the “5S” and
“Visual Display Board”
• All of the “Pre” and “Post”
events are ½ day
• The “Lean – Kaizen 5 Day Event”
can take anywhere from 40 – 50 hours,
depending on the self determination of
the assembled team
Team Selection
• Team selection is based upon experiential criteria
• Active “doers;” individuals that accomplish under all situations
• Individual that are people “connectors” of trust and discipline
• Individuals, neither strongly opposed nor strongly pro event
• Individuals with a “let this process prove itself”
• A mix of management, supervisors, and staff
• A mix of logical and gut thinkers
• Two or three “wildcards” that come from outside the organization
“Wildcards” are Individuals that are from both the
private and public sectors… outside of the field
Favorite Tools
• Project Charter
• What is developed is implemented “Contract”
• Exhaust the empowered team every day
• Exposing the elephants in the room
• “Frankenstein” Map
• 5S and Red Tag
• “Visual Display Board”Continuous Process Improvement
Favorite Tools… continued
• Issues / Solutions Brainstorming
• Impact / Difficulty Metric
• RACI (Responsible – Accountable – Consulted – Informed)
• Spaghetti Maps
• Kaizen Newspaper
• SharePoint
• Group Dynamics
• Participant Ground Rules(Responsible – Accountable – Consulted – Informed)
Team Member Ground Rules:
• Know it‟s not about people; it‟s about process
• Keep an open mind to change
• Maintain a positive attitude
• Never leave in silent disagreement
• Create a blameless environment
• Practice mutual respect everyday
• One person – one voice – no position or rank
• There is no such thing as a dumb question
• Understand the business process and simplify it
Observer Ground Rules:
• Silent Observation
Stealth… there, yet not there
Back of the Mind…Event - Issues Complexity:
• Simple Event
• Discrete or Entangled Event
•Tame or Wicked Issue
• Core Symptoms and Issues Known
Core Event Reason:
• Process Pain Level
• Business Criticality Level
Intellectual Resources Availability:
• Subject Area Experts
• Work Group Manager
• Work Group Staff
• Non-DEQ Participants
• Non-Work Group Participants
DEQ Support and Commitment:
• Executive Management Team
• Identified Stakeholder
• Work Group Manager
• Work Group Staff
• External Work Groups
Volatility / Risk Assessment:
• Pubic Political Volatility
• DEQ Political Volatility
• Identified Stakeholder Volatility
• Work Group Manager Volatility
• Business Volatility
• Financial Volatility
Work Group Expectations:
• Reduce "In-Process" Steps
• Reduce Operational Cost
• Reduce Processes Time
• Reduce Process Wastes
• Reduce Process Lead Time
• Reduce Process Complexity
• Increase Customer Satisfaction
• Increase Work Group Job Satisfaction
Group Dynamics:
• Group Cohesion
• Number of Sub-groups (splinter groups)
• Work Environment Rating (work rating)
• Empowered vs. Not Empowered
• Hierarchal or Egalitarian
Funding Availability:
• DEQ Available Funds
• EPA Available Funds
• DAS Available Funds
• Other Available Funds
Time Availability and Time Constraints:
• Event Start Date – Proposed
• Event Stop Date – Proposed
• Event Length Days - Duration
Process Information and Data Availability:
• Availability of Historical Data
• Availability of Current Data
• Confidence of Existing Data
• Complexity of Data Collection
• Work Group Process Knowledge
Lean – Kaizen Projects:Current Lean – Kaizen Projects
• Office of Compliance and Enforcement (OCE)
Concluded Post 6 Month Event Review
• Laboratory and Environmental Assessment Division (LEAD)
Concluded Post 60 Day Event Review
• Business Systems Development (BSD)
Concluded 5 Day Event
Office of Compliance
and Enforcement (OCE)
OCE Lean – Kaizen Event
Jane Hickman
OCE Administrator
Oregon Department of Environmental Quality
The Office of Compliance and
Enforcement
Office of Compliance and Enforcement
Scope:
This event will address the formal enforcement process from issuing Pre-
Enforcement Notice (PEN) to issuing Formal Enforcement Action (FEA).
Goals:
• Reduce lead time by 50%
• Reduce the number of incomplete referrals
• Streamline review process by 50% and ensure 100% review
Objectives:
• Maintain consistency in process
• Better working relationship between OCE and Regional staff (one team)
• Better communication and transparency of process
• Ability to track progress or status of cases
• Improve quality of work product (drafts, comments, referrals, etc)
• Ability to increase number of enforcement actions each year
• Improve perception of agency enforcement process
State of O regon D ept o f Environm enta l R eferra l to FEA „as is ‟ process
De
pu
ty
D
ire
cto
r“E
B” E
LS
Re
gio
na
l
Ma
na
ge
rL
ea
d E
LS
OC
E E
LS
OC
E A
dm
in
OC
E S
up
po
rt
Sta
ff
In
sp
ec
to
rR
eg
io
na
l A
dm
in
OC
E A
dm
in
HQ
M
ail R
oo
m
R eferra l
R ece ive re fe rra l Sort m a il R oute to O C E
R ece ive re fe rra l O pen m a il D ate stam pEnter rec‟d da te
spreadsheet
R eview
responsib le party
Search da tabase
fo r lega l en tityIn fo correct
C orrect in fo
D e liver to Jane
N o
Yes
Sort Skim re fe rra lC heck assignm ent
bookFill ou t cover sheet Assign to ELS W rite in the book
D e liver re fe rra l to
support sta ff
R ece ive re fa rra l C rea te db record C rea te file labe lM ake sing le sided
cop ies
M ake cop ies o f
cover page2 ho le punch P lace in fo lder
Put re fe rra l in file
fo lderD e live r to ELS
R ece ive re fe rra l
file
Fill ou t tim e liness
sheet
Em ail inspecto r
tha t ELS has
re fe rra l
R eview file Look in b inder Pu ll c losed files R eview prio rs C opy prio r actionsR eference d iv is ion
12C om ple te
R ece ive e-m a il
C ontact ou tside
sourcesC ontact inspecto r
Fill ou t tim e liness
sheetD ra ft no tice D ra ft exh ib it D ra ft cover le tte r D ra ft EB M em o
G ive EB m em o to
EB ELSFina lize d ra ft FEA
M ake cop ies o f
ru lesH igh ligh t ru les Put in red fo lder
U pdate tim e liness
sheetR oute fo r review
Provide ED va lues
R ece ive e-m a iled
FEA
R ece ive hard copy
FEA
R ece ive e-m a iled
FEA
R eview FEA
R eview FEA
FEA O K
FEA O K
Inspecto r
approved
Fo llow up w ith
inspecto rR eview FEA FEA O KN o
R eturn to ELS
C om m ent on FEA
N o
Yes
C om m ent on FEA
R eturn to ELS
Yes
N o
R eturn to ELS
C om m ent on FEA
Yes
N oYes
R ece ive FEAU pdate tim e liness
sheetU pdate FEA R oute fo r review H ard copy to O C E
R ece ive FEA B ig p ictu re review FEA O K
R eturn to ELS
C om m ent on FEA
N o
Yes
N o
Yes
R ece ive FEA
C om m ent on FEA
FEA O KBig p ictu re review
R eturn to ELS
U pdate tim e liness
sheet
R oute fo r
s igna tu reR ece ive FEA U pdate FEA
R ece ive FEA R eview FEA
N o
Yes
C orrect FEA
FEA O K
Sign FEA
S ign cover le tte rS ign 2 leg is la tive
cover m em os
G et red fo lderFina l c le rica l
reviewFEA O K
R eturn to ELS
M ake corrections
R esearch
leg is la to rs
Prin t labe lsS tick sign here
stickers
Yes
N o
O rgan ize fo lder G ive to deputy
The old way of doing business
The “Current
State” Map
What does our
process currently
look like right
now?
The new way of doing business
48.7% Reduction in process steps
42.9% Reduction in “required” decisions
28.6% Reduction in process loop backs
61.3% and 16.7% Reductions in hand-offs
52.6% Reduction in waiting
95% Improvement in Value Added Steps
State of O regon Dept of Environm ental Q uality – PEN to FEA Future S tate Process
All A
pp
ro
pria
te
Re
vie
we
rs
(R
eg
Mg
r, R
DA
,
De
pu
ty
D
ir,
Oth
ers
?)
Le
ad
E
LS
OC
E E
LS
OC
E A
dm
in
OC
E S
up
po
rt
OC
E M
ail
Ro
om
Re
sp
on
da
nt
Re
gio
na
l
su
pp
ort s
ta
ff
In
sp
ec
to
r
Sign penEnter in NO N
database
Enter reg iona l
trackingDeliver PEN
Send PEN
in terna lly via E-
M ail
Send certified
copy to
respondant
Provide hard copy
to incpestor
P lease in facility
file
Rece ive PEN
Please copy in
Chron file
Respond to PEN
Receive response Tim e date stam pDeliver to
inspector
Review responseEnter in fo in
shared fo lder
Ready for
re ferra l
Contact
respondant
Provide add itiona l
in form ation
No
G ather evidence
Yes
G ather evidence
Enter re ferra l
transm itta l in to
database
Com ple te NEW
re ferra l fo rm
E-M ail Reg M gr
and RDAM ake cop ies
Route to O CE
support
Rece ive m ail Sort m ail De liver m ail
Rece ive re farra l
(Rea lly 2 steps)Date stam p
Create file (Rea lly
6 steps)
Check respondant
nam e (Really 2
steps)
Deliver to O CE
Adm in
Rece ive re ferra lAssign case w ith
prio ritiza tion
Update tracking db
w ith assignm ent
Review re farra lReview ru les to
determ ine vio la tion
Can we
proceed
Return to inspector
CC Reg and O CE
M gr
No
In re ferra l
com ple te
Correct errors
Yes
W ork w ith
inspector
W ork w ith outside
sources
No
Check prio rs
Yes
Copy prio rsDraft EB
requ irem ent
Peer review
desired
Provide feedback
Yes
Draft docum entsEm ail d ra ft to
inspector
Rece ive docs Review FEA docsAble to
proceed
Return to O CE
ELS CC Reg and
O CE M gr
No
E-m ail com m ents
or ed its back to
ELS
Yes
Incorpora te ed its F ina lize FEASave to shared
fo lder
Em ail peop le to
a llow in terna l
d iscre tionary
review
Hard copy to
adm in
Rece ive hardcopy
fileReview FEA FEA O K
M ake notes
e lectron ica lly and
re turn to ELS
Incorpora te
changes in to
docum ent
No Deliver to support
Prin t FEA docs
(rea lly 2 steps)
Yes
Deliver hard copy
to inspector
Deliver hard copy
to Adm in
F ile fina l FEA
Sign FEA Return to Support
Update tracking
spreadsheet
E-m ail a ll
appropria te parties
In terna l
d iscre tionary
review
Results accomplished within 6 Months:
• High impact, very little implementation costs business improvements
• New uniform Pre-Enforcement Notice (PENS) form
• Implementing “standard work” processes for field inspection staff and
environmental law specialists. Staff training on the new form and requirements will
provide consistency
• Managers/staff share the same definition of quality
• Implemented “job shadowing”
• Simplified “Formal Enforcement Action” notices to environmental
violators. The large number of citizen‟s monthly phone calls asking the
environmental law specialists for clarification of the mailed notice, has dropped to
zero
Laboratory Evaluation and
Assessment Division (LEAD)
LEAD Lean – Kaizen Event
Gregg Pettit
LEAD Administrator
Oregon Department of Environmental Quality
Laboratory Evaluation and Assessment Division
Laboratory Evaluation and Assessment Division
Scope:
Project scoping is key to the success of the Kaizen process. The scope of this
Kaizen exercise focused on the turnaround time from receipt of a sample at the DEQ
laboratory through release of the case report.
Goals:
• Improve sample turnaround time by 50 percent
• Reduce steps by 40 to 55 percent
• Improve client satisfaction by 10 percent
Objectives:
• Identify reliable metrics and establish incremental goals
• Meet holding times
• Establish reliable end-to-end turnaround times and case-measurement cycle times
• Define client expectations for timeliness
Laboratory Evaluation and Assessment Division
What does our process look like right now?
Here is what our process will look like
in 90 Days (90%) and finally within 6 Months (98%)
New Processes Improvements
42% Reduction in process steps
53% Reduction in “required” decisions
56% Reduction in process loop backs
60% and 85% Reductions in hand-offs
38% Reduction in waiting
Current State Future State % Change
Steps 93 54 - 42%
Decisions 17 8 - 53%
Electronic hand-offs 10 4 - 60%
Physical hand-offs 26 4 - 85%
Loop backs 9 4 - 56%
Waits 16 10 - 38%
Value Add steps 3 3 N/C
Value Add % 3.2% 5.6% 72%
Results accomplished within 60 days:
• bar code system for water quality samples. The system uses the lab‟s
three electronic barcode readers cutting processing time and increasing lab accuracy.
• Re-examination and retooling of an internally-developed, yet unused
electronic Lab Information Management System. The system
implementation date is March 2009.
• Incorporating a program to upload data directly into the databases and
eliminating multiple human-error related quality checks.
• Creating a new, easy-to-understand Quality Control Report.
• New electronic tools to track samples and their movement within the
various sections.
Lean Lessons Learned
• Strong sponsor‟s support is essential
• Empowering the team is effective
• External team members brought new ideas
• Laboratory staff, outside the Kaizen event stepped up to support the team
• Weekly assigned task check-ins kept the momentum at full throttle
• Managers/staff became increasingly more excited with improvements
• There can never be too much communication… the more, the better!
Business Systems
Development (BSD)
BSD Lean – Kaizen Event
Sohng Shin
BSD Manager
Oregon Department of Environmental Quality
Business Systems
Development
Business Systems Development
Scope:
Process improvement for requests for scheduled and unscheduled maintenance,
error correction, enhancements and ad hoc reports from the time the request is
received and completed.
Goals:
• Reduce/rework interruptions and multiple entries of requests
• Eliminate unnecessary wait times
• Increase BSD performance and productivity
• Improve client satisfaction and increase available development time
• Redefine and restructure Help Desk
Objectives:
• Clearly define BSD roles and prioritize tasks
• Develop metrics for measuring success
Business Systems Development
Current “Maintenance” Process:
BSD is an
Entangled
System(only 3 of 5 systems)
Current “New Development” Processes:
Future Map
There was no
known consistent
“maintenance”
system in place
when we started
the Kaizen process
The core issues
were identified as
“interruption”
driven
20% Reduction in process steps
12.5% Increase in “required” decisions (from 7 to 8)
66.7% Increase in process loop backs (from 1 to 3)
100% Reduction in physical hand-offs
60% Increase in electronic hand-offs
100% Reduction in waiting
Kaizen Newspaper
• Assigned Task ownership and accountability
• SharePoint Server as central information centerWhat Who When Status %
Triage Protocol for Help Desk including urgent request Lewis 4/27/2009
Help Desk Develop/Determine Issue Tracking Log System Ted Now 100
Help Desk Reporting: Protocol & Schedule Determination Dave 5/1/2009
BSD LEAN-Kaizen PowerPoint Presentation William Now 50
Current/Future State Maps (Visio) James Now 100
RACI: Current & Future Responsible metrics Jeffery Now 100
Maintenance/Operations and New Development Metrics Scott 3/13/2009 75
IT/ BSD Ideas Flip Chart Bruce 4/14/2009 25
Define BSD Roles Sohng 6/1/2009 50
"Policy" and Roll Out of Help Desk Single Contact Sohng 6/15/2009
Rotating "On-Call" Developer System Plan Sohng 4/13/2009
Recruit & Research Participation for Help Desk (LAN/MSD) Sohng 6/15/2009
Restructure & Implement Help Desk Dave 5/1/2009
Update Q-Net Web Page(s) -- Eliminate BSD contact information Elle 3/17/2009
Provide help desk phone number Sohng 6/15/2009
Step By Step Procedure(s) for future map Anu 4/12/2009 75
Develop Operation Matrix Dave 5/1/2009
Add Q-Time Numbers for Task (Expand Program Tracking) Scott 4/15/2009
Communicate BSD project status on Q-Net William 4/15/2009
Help Desk Request Form(s) Dan 3/27/2009
List of BSD application Contacts for Help Desk Elle 4/12/2009 75
New system Development procedure Template Ernie 3/27/2009
Emergency Response Protocol Sohng 4/13/2009
Implement Time Management Suggestions (for ex: working from home, checking phone, email every 2 hours)
All Now
Implement Meeting Control Strategies All Now
Public Relations for BSD (Attain meeting when needed) William Ongoing
Definition of Maintenance Dave 3/11/2009 100
Current BSD developers time development/maintain Data Collection for 2 weeks/ six months
Anu 3/10/2009 100
Creating SharePoint for BSD Lean Kaizen team Elle 9/27/2009
Current/ future BSD work flow Visio Maps James 9/12/2009 25
Definition of Quality work Bruce 9/11/2009
Task assignments are immediate,
ownership is swift, and deliverable
date set.
Improvement Opportunities
Interruptions Staff Utilization
Surprise Meetings Recognize Operations Workload
Too Many Meetings Workload Management is Difficult
Distractions: Email & Phone Staff Used Inefficiently
Daily & Unscheduled BSD Doing Non-BSD Work
Communications Identify All Non-BSD Tasks
Internal Marketing Needed "Maintenance" Isn't Very Sexy
Visibility to Clients Balance Needed for Maint. & New Projects
Manage Client Expectations Scoping
IT/BSD Poor Coordination Identify Stakeholders and Responsibilities
Unclear Roles/Resp in Project DEQ Staff Don't Know How to Scope
Program "Champions" Needed BSD Staff Don't Know What to Scope
Team Players Needed Clients Do Not Define Business Rules
Guard Dog Data Analyses Often Incomplete
Requests Must Be Prioritized Clients Miss Items During Testing
Unable to Control New Work Flow Issues Underestimated
Requests Often Conflict Inappropriate Assumptions Made
Production Problem Intake Process Resources Required Over/Under Estimated
Need 'phase gate' approvals Project Size and Scope Varies Widely
Help Desk Project Types Need to Be Clearly Defined
BSD is the Go to for Computer Help Solutions Have Unintended Consequences
Developers Become Point of Contact Clients Driven to Seek Outside Help
DEQ Staff Unaware of IT vs. BSD
A Help Desk Needs Correct Skill Set
Need to Log & Track Requests
Lean Lessons Learned
• Process Improvements must have visible executive management support
• External DEQ team members bring fresh ideas
• Team dynamics and composition is essential
• Address concerns and issues positively
• Communication, communication, communication… the more, the better!
• The entire event must be transparent to all staff and managers
• The “Lean – Kaizen Ground Rules” are effective
• Empower your team to implement the needed
changes which validates their efforts and contributions to the health of DEQ
PowerPoint Presentation
Review of why we are here tonight?
Western Union… Before(6 minutes)
Western Union… After(2 minutes)
Do you have any additional
comments, suggestions,
insights, or questions?
What can we learn from you?
John L. ReelOregon Department of Environmental Quality
503.229.6066 [email protected]