Lean for environmental remediation portfolio manager successBethany Zinni, P.G. Haley & AldrichJeffrey Baker, P.E. Tesoro Corporation
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1 Lean Overview
2 What was the challenge?
3 Lean Approach
4 Improvements to Date
5 Tesoro LSS Initiative, Results & Impact to Portfolio Manager
Agenda
Lean overview - originsFord Assembly
Toyoda Loom
Venice Galleys
Continuous Improvement
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Lean overview - principles
Lean is a system of thinking and acting that:
Increases Value
Reduces Waste Respects People
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Lean overview – value and waste
• What is “value”?– What customers want,– When they want it, – In the amount they want it, – And where they want it delivered
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Lean overview – value and waste
• What is “value”?– What customers want,– When they want it, – In the amount the want it, – And where they want it delivered
• What do we mean by “waste”?– Resource waste / Defects– Overburden– Unevenness– UNUSED EMPLOYEE CREATIVITY,
CAPABILITIES and CAPACITY
All waste obstructs value in some way.
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Lean overview – respect for people
By engaging people who do the work every day, we can collectively:
• Learn about pain points
• Share and create knowledge
• Find hidden resources
• Begin to envision ideas for improvement
• Create ownership and consensus
• Develop problem solvers – Lean ‘eyes’
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Lean overview - kaizen
Kai - take apart and make new/better
Zen - think about so as to help others
A Kaizen is driven to two imperatives:1. Solving Problems2. Eliminating waste
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Tesoro portfolio management challenges
Lacked consistent regulatory
reports
Nothing standarde.g. 15 consultants= 15+ report
formats
No good way to compare sites across
the portfolio
Tesoro PM - too much time
on ‘admin’; not enough on strategic work
No good way to track key
metrics (spend,
progress, etc.)
Lack consistent, effective
remedial system O&M/alignment
on goals
Potential for portfolio
expansion was
significant
Impacts to Tesoro Project Manager• Work was reactionary – no proactive thought
– Constant firefighting – too much ‘noise’ in the portfolio
• No standard approach to portfolio/project management = no way to strategically make spend decisions
• Report reviews were time-consuming, awkward and boring; lacked advocacy/focus – merely ‘data dumps’
• Invoice, budget and reserve review and tracking ate up significant time (35%)
Countermeasure: Use Lean to ‘go slow to go fast’ & invest a little (time/$) to save a lot
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Approach – Kaizen 1 - May 2007• First step was to ‘kaizen’ Tesoro
portfolio management as a whole– ID Tesoro value– Map the process
• ‘See’ together what actually happens– ID problems
• Where is value not being met?• Assess level of waste & ability to improve
– Ideas to increase value/remove waste
Look at value – decide
where to focus
Map out the process
Prioritize what to work on first…..
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Approach – Kaizen 2 - Aug 2007• Regulatory Reporting
– Get the right people in the room– Start with Tesoro value– Map the reporting process
• ID the gaps between what happens and what the customer values
– Develop plan to improve • Implemented on 50 sites for 8 years
– Check and Adjust (Feb 2015)• Applied to acquisition portfolio and new
Tesoro PMs and consultants (200 sites)
Understand what Tesoro values…and
deliver it!
Approach – Kaizen Regulatory Reporting - results
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>$3M annually in
savings
$250K annual
savings –admin
(rev/mgmt)
Template used @
~200 sites by 75
consultants
Template approved
by >90% of regulators
Reports are visual & succinct
Advocacy built in; Site closure rate
increase 50%
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Improvements to date• It’s the way Tesoro and their team
do their work – day to day activities and building
into our culture– everyone is learning to work this
way • ID-ing waste/seeing opportunities• Understanding customer value
Terminal Site Technical Review – November 2015
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Improvements to date
Reserves mgmt,
tracking & reporting
Standardize financial
management and documents
Site closure strategies
Site strategy program
development
Spill response & remedial planning
Sustainability program design
Acquisition planning /
mgmt
Remedial system O&M optimization
Results - summary
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Increased site closure rate
(50%) = millions saved
Reduced risk across the
portfolio by 30%
33% faster report
submittal & turnaround
Decreased ‘admin’ time for Tesoro PMs by 50%+
Increased collaboration across Tesoro
team
Tesoro Environmental Remediation
Reserve Accounting
System
Portfolio
Evaluation Tool
Standard Regulatory Reporting
Standard remedial
system O&M
process and
reporting
Streamlined Acquisition Planning
Processes (lease or buy)
Internal Audit &
Site Strategy
Program
Metrics:
Standard Work Developed:
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• Early adopter shift in role from project work to long term portfolio strategy/special projects
• Spending significantly more time on project strategy & planning
• Regulatory advocacy has resulted in improved standing with agencies
• ‘Brain trust’ / optimized consultant team
Results – the portfolio manager
May seem like we’ve spent a lot on Lean…but ROI has shown a more than worthwhile investment of
time and resources.
Tesoro Corporate Lean Journey• Recent company-wide initiative to
implement Lean Six Sigma (LSS) to improve business processes across organization
• Jeff has been leading the implementation of Lean to his environmental portfolio since 2007
• Today, Lean approaches are actively being applied to the management of the entire remediation portfolio
Jeffrey M. Baker, P.E.Lead Engineer, [email protected]
Bethany Zinni, P.G.Haley & Aldrich, Inc.Lean Practitioner, Project [email protected]