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“Encouraging innovation in how the State of New Hampshire provides essential public services is a critical aspect of maintaining fiscal responsibility and protecting taxpayer dollars. I strongly support the continued use of Lean process improvement tools as a proven means to ensure that public funds are used as efficiently effectively as possible. We owe the citizens of the Granite State a government that is committed to eliminating waste. By focusing on collective problem-solving in order to deliver services as efficiently as possible, Lean is helping us build a stronger, more innovative New Hampshire." Governor Maggie Hassan

LEAN Process Improvement

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Page 1: LEAN Process Improvement

“Encouraging innovation in how the State of New Hampshire provides essential public services is a critical aspect of maintaining fiscal responsibility and protecting taxpayer dollars.

I strongly support the continued use of Lean process improvement tools as a proven means to ensure that public funds are used as efficiently effectively as possible. We owe the citizens of the Granite State a government that is committed to eliminating waste.

By focusing on collective problem-solving in order to deliver services as efficiently as possible, Lean is helping us build a stronger, more innovative New Hampshire."

Governor Maggie Hassan

Page 2: LEAN Process Improvement

LEAN Process Improvement

Organized Common Sense

LEAN increases efficiency & decreases waste • Using empirical methods to decide what

matters, rather than uncritically accepting pre-existing ideas.

• Adding value to the customer

Page 3: LEAN Process Improvement

Lean is an organizational performance management system characterized by a collaborative approach between employees and managers to identify and minimize or eliminate activities that do not create value for the customers of a business process, or stakeholders.

Government Finance ReviewDecember 2011(Kavanagh & Krings, p. 19)

Page 4: LEAN Process Improvement

The thought process of lean was described in The Machine That Changed the World (1990) by James P. Womack, Daniel Roos, and Daniel T.

Jones Subsequently in Lean Thinking (1996), Womack and Jones distilled lean principles to five:

1. Specify the value desired by the customer 2. Identify the value stream for each product providing that value and

challenge all of the wasted steps (generally nine out of ten) currently necessary to provide it

3. Make the product flow continuously through the remaining value-added steps

4. Introduce pull between all steps where continuous flow is possible 5. Manage toward perfection so that the number of steps and the

amount of time and information needed to serve the customer continually falls

Source: www.Lean.org

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Faster, Better, Cheaper

• Typically, businesses trying to speed up production must pay more, or produce an inferior (rushed) product, or both. – If you need it fast, you have to pay more, or be

prepared to trade off quality for speed.

• LEAN combines methodology with philosophy to do all three: get things done faster, better & cheaper.

Page 6: LEAN Process Improvement

The people who do the work are on the Lean team

• Responsibility & Empowerment – No more “they won’t let us”– “They” “We”

• Quality is everyone’s responsibility• Workers have ownership• Management has trust

Page 7: LEAN Process Improvement

Lean success is dependant on empowering employees at all levels

o Frontline workers see many more problems and opportunities that management does not see

o Lean recognizes that every one (with rare exceptions) wants to do a good job

o Lean taps into the intellectual and creative capital of the employees who are responsible for completing the work

o Lean is about deciding what matters and what does not

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Team Roles• Sponsor - Administrator

– Authorizes the Lean event, including the time of all team members– Approves changes recommended by the team

• Value Stream Manager (VSM) – Unit manager of business process to be improved– Works with the facilitator to organize the event and the team.– Responsible for assuring implementation of approved changes

• Team Members & Subject Matter Experts - Employees who execute the process and customers of the process– Document the current state process and design a future state – Propose an implementation plan for presentation to the Sponsor– Work with VSM to implement approved changes

• Fresh eyes – employees unfamiliar with the process who will ask why .

Page 9: LEAN Process Improvement

Elements of a Charter

Indicate sponsorship Identify the team members Identify and describe the process to be improved Clearly identify the bookends (first to last step) Describe the problem to be solved Identify the customers of the process Articulate any explicit management goals List the resources authorized for the project team Identify decision-making authority of the team and

expectations of each role

Page 10: LEAN Process Improvement

Projects in the Gwinnett County, Georgia Dept of Financial Services

Twelve successful projects, including

• Tax Returns: Processing time cut in half• Residential appeals: Reduced 14 steps to

6; processing rate went from 65/day to 209/day

• Fleet management: reduction of 35 steps to 16

Page 11: LEAN Process Improvement

The Lean Philosophy

Many people associate Lean with tools for mapping business processes, identifying improvement, and charting progress.

However, Lean is an attitude and philosophy about continuous improvement and striving for a state of perfection where every action created value for customers and citizens.

Perfection is an unobtainable idea, of course, but the Lean organization is always looking for ways to do things better.

(Kavanagh & Krings, p. 19)

Page 12: LEAN Process Improvement

A turbo-charged bad process?

The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency.

The second is that automation applied to an inefficient operation will magnify the inefficiency.

- Bill GatesQuoted by the Maine Lean Collaborative

Page 13: LEAN Process Improvement

Compliance Pyramid

Fail Safe

Visual and Audible Control Tools

Visual Aids

Procedures, Instructions & Manuals

Only one way to do it

Warning when a variation occurs

Graphical instructions

Writtencontrols

(Kavanagh & Krings, p. 23)

Page 14: LEAN Process Improvement

Identify your Customer

The customer for the process you have selected is the end user - at the final step of the process boundary you have established for this project.

You also have internal customers at each step of the process, as the work is passed forward.

Page 15: LEAN Process Improvement

Future State Report to Sponsor

• Review your Charter – what were you authorized to do?

• Is the Team’s Future State within the scope of authorized work?

• Do you want to propose an Ideal Future State & Interim Future State?

• Do you want to recommend multiple options for timing or scope of the implementation?

• Resource considerations?

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Communication Plan

Share information on status of project activities, lessons learned and critical dependencies to ensure success. The Communication Plan includes:– The type of information to be produced – With whom the information will be shared– When the information will be shared– Mechanisms for the project team and

stakeholders to provide feedback to project management.

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Page 17: LEAN Process Improvement

7/30/60/90 Day Reviews

Project Team meets with the Sponsor to confirm that deliverables are on target.

Value stream manager or Lean facilitator reports the progress to the agency’s Lean coordinator

Celebrate each milestone

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Pre-Training

Day One Day Two Day Three Post-Training

Identify Sponsor & Process

Select Team

Intro to Lean

Charter

Current State Value Stream Map

Complete the current state map

Data Sheets

Future State Map

Complete the future state map

Implementation Plan

Guest Lean Practitioners

The “sell” to the Sponsor for adoption of plan

30/60/90 day reviews

Communicate gains

Celebrate

Sponsor Driven

Facilitated Facilitated Facilitated Project Manager Driven

Page 19: LEAN Process Improvement

NHES Project Results

Beginning March 2011, NH met federal time lapse standards for the first time in 2 years.

Average age of a pending appeal was reduced from 163.6 to 18.4 days.

At the end of 2011, NH had moved from 50th to 16th nationally for case aging.

Page 20: LEAN Process Improvement

Options to Initiate Lean Programs

• Send a project team and/or a pro-active employee to Lean Process Improvement Techniques. Cost: $210/participant.

• Conduct an on-site program – Contact BET at [email protected] Cost:

$300/half day, plus mileage. – Contact the NH Lean Network for a guest

facilitator

Page 21: LEAN Process Improvement

Lean Process Improvement Techniques

NH Bureau of Education & Training3-Day Program

Hand-on Training Blend of theory & practice

Register in project teams or as individuals

January 28, 30 & 31, 2014March 4, 7 & 11, 2014

Page 22: LEAN Process Improvement

Continuous Improvement Practitioner (CIP) Program

• Introductory 3-day class• Lean Facilitator Training• Lean Change Management• Practicum: 2 Days of Facilitation

Page 23: LEAN Process Improvement

Appoint an Agency Lean Coordinator

A motivated change agent who will:• Get a CIP certificate • Participate in the Lean Network• Identify processes for Lean projects in your

agency - at training and/or on-site• Coordinate facilitators, prepare charters• Track progress and report to management • Communicate Lean success & build Lean

culture

Page 24: LEAN Process Improvement

Spreading Lean Management

• Lean Summit by invitation of the Governors

• Recognition of outstanding Lean projects

• Leadership on Lean initiatives• Building a Lean Network of state,

municipal and non-profit practitioners - quarterly meetings

http://Lean.nh.gov