Prepared by the NH Lean Executive Committee - Fall 2016

State of New Hampshire Lean Continuous Process Improvement

Introduction and Overview

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Objectives

Gain a basic understanding of Lean theory and practices

Learn and be able to explain at least two examples of Lean process improvement methods

Understand the Bureau of Education and training model for Lean

Access at least one resource for Lean materials and training

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What is Lean/Continuous Process Improvement? Lean is a set of tools used by public, private and

non-profit sectors to improve processes by removing waste, increasing efficiency and elevating quality.

Lean enables agencies to work more effectively and efficiently to serve the citizens of New Hampshire.

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State of NH Lean’s Secret Lean Formula Bureau of Education and Training

+ Agency leadership supporting and promoting Lean

+ Lean Executive Committee

+ Lean Network

+ Lean Practioners “telling the story”

+ Mentoring/continuing education & training

= A Lean State Government State of New Hampshire Lean (10/14/16) 4

DAS Bureau of Education’s Lean Training Model

Introduction to Lean and basic overview

A hands-on program using Kaizen projects to apply Lean tools and concepts

Training for Lean facilitation of events and change management

Black Belt Advanced training for Lean practioners, includes theory and

practice State of New Hampshire Lean (10/14/16) 5

Lean Works!

Defects – typos, missing data, errors

Overproduction – Extra copies, multiple reviews, multiple signatures

Waiting – approval cycles, missing information, bottlenecks, batching

Non-utilized/underused employees – front line employees who are not included in problem-solving

Transportation – routing for approvals

Inventory – backlog of work, emails needing responses

Motion – trips to copier, file cabinets, meetings

Excess processing – multiple reviews, approvals, duplicate data entry

Examples of waste identified with Lean methods:

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What are the Benefits of Lean /Continuous Process Improvement?

By using Lean tools, an agency can expect to: Eliminate or dramatically reduce backlogs Improve Cycle times Decrease the complexity of processes and

eliminate unnecessary process steps Improve the quality and consistency of work

products and activities

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Click on underlined text for definitions

What are the Benefits of Lean/Continuous Process Improvement? (Continued)

Improvements made using Lean activities can provide: More staff time allocated to ‘mission critical’

work; Staff morale and teamwork improvement; and Enhanced process transparency to internal and

external audiences.

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Lean Methods

The following slides identify some Lean methods and tools, from simple to more complex, and provide examples of when they may be used.

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Lean Methods (Continued) JDI (Just Do It) A simple action that

can be taken immediately to fix a problem

Use anytime there is a easy solution that can be implemented right away

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Lean Methods (Continued)

• Observe

• Engage

• Improve

Process Walk Cross-functional team

walks through the work area, identifying opportunities to reduce waste

Use to identify immediate and/or easy changes that require consensus

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Lean Methods (Continued) 5S is method for

maintaining an orderly workplace and reduces time looking for items. Sort – remove unnecessary

items. Store – arrange and label

items so they are easy to find.

Shine – regularly straighten and tidy workspaces.

Standardize – spread improvements to all work areas.

Sustain – maintain standards.

HINT: Post the “after” picture

where everyone can see it as an incentive to keep it neat!

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Lean Methods (Continued)

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Visual Controls Provide visual feedback on process performance Use to reinforce 5S improvements Use to give immediate feedback Use to establish a Kanban system

Lean Methods (Continued)

Standard Work Ensure that all employees understand and

consistently implement processes (aka Standard Operating Procedure)

Use to document and sustain improvements made using Lean methods

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Lean Methods (Continued)

ROOT CAUSE ANALYSES

5 Whys Ask “why?” five times 1st Why = Symptom 2nd Why = Excuse 3rd Why = Blame 4th Why = Cause 5th Why = Root Cause

Fish Bone Diagram

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Lean Methods (Continued) A3

Use the form below on 11x17 format to depict a problem and generate solutions Concisely communicates continuous improvement activities. Background Target Condition/Goal Statement

Describe the problem and indicate how it affects business. Use data whenever possible.

Indicate what you are trying to achieve and by when. Predict the expected improvement, specifically and quantitatively.

Current Condition/Problem Statement

Indicate the magnitude of the problem on a qualitative scale. Use graphics if possible.

Implementation Plan

List of actions that will be taken and by whom and by when.

Root Cause Analysis Why are we experiencing this problem? Dig deep to find the root cause using Pareto diagram, fishbone diagram or 5 why’s analysis

Follow-Up How will the effectiveness of the improvement be measured and by whom?

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Lean Methods (Continued) A3 Example

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Lean Methods (Continued)

Kaizen Event Structured event led by a trained

facilitator. A kaizen event is the primary implementation tool for Lean, where process changes for practical implementation are identified by a select team of participants.

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Lean Methods (Continued) Value Stream Mapping Structured event led by a trained facilitator. Maps out

an entire process in detail from beginning to end, identifying areas for future process improvement efforts

Prioritization and planning tool to gain high-level understanding of processes and identify areas for improvement

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Lean in New Hampshire Government These agencies employ Lean methods for continuous process improvement:

Adjutant General Administrative Services Banking Corrections Cultural Resources Employment Security Environmental Services Health and Human Services Information Technology Insurance

Judicial (Courts) Labor Lottery Public Utilities Commission Resources & Economic Dev. Revenue Safety Transportation UNH

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Cumulative Growth of Lean Deployment in New Hampshire Government

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0

2

4

6

8

10

12

14

16

18

2009 2010 2011 2012 2013 2014 2015

5 6 8

11

14

16

18

Number of State Agencies Participating in Lean

0

20

40

60

80

100

120

140

160

2009 2010 2011 2012 2013 2014 2015

13 26

41

67

96

126

148

Number of State Lean Events

Showcasing Lean Work

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A3s are developed at the conclusion of each Lean project

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DoIT Commissioner Denis Goulet provides opening remarks at Lean 2016 Summit

Governor Maggie Hassan recognizes the Dept. of Revenue for their Lean project at the Lean 2013 Summit

Attendees at the Lean 2014 Summit

Governor John Lynch with panelists at the Lean 2012 Summit

Showcasing Lean in State Government

Lean Resources (copy and paste in browser)

Lean Enterprise Institute http://www.lean.org/

Lean Government Center http://leangovcenter.com/

Environmental Protection Agency’s Lean in Government https://www.epa.gov/lean

Washington State Lean http://www.results.wa.gov/

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For more questions:

Please contact your agency’s Lean Coordinator. For a complete list visit: http://lean.nh.gov/

For Lean training visit the NH Bureau of Education and Training’s website: https://das.nh.gov/hr/trdev.html

Thank you for your time!

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Lean Lexicon (left click, Last viewed to return to slide)

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A3 – a structured problem-solving approach that entails the following steps: Identify a problem or need; gather data to understand the current situation; conduct root cause analysis; devise countermeasures to address root causes; identify a future state; create an implementation plan; develop a follow-up plan with predicted outcomes

Current state – a value stream map that illustrates a process as it exists

Cycle time – the time it takes to successfully complete the tasks required for a work process

Fishbone diagram (also known as Ishikawa diagram) - an analysis tool that provides a systematic way of looking at effects and the causes that create or contribute to those effects

5S – a method of creating a clean and orderly workplace that exposes waste and errors

5 why’s – a method for determining the root cause of a problem that entails asking “why?” at least 5 times

Implementation plan – A living document that outlines and addresses essential elements to a successful Lean project

Future state – a value stream map that illustrates theoretical process improvement that will result in the completion of the implementation plan

Kaizen – Kaizen is a Japanese word that means “improvement.” Kaizen, also known as continuous improvement, is a long-term approach to work that systematically seeks to achieve small, incremental changes in processes in order to improve efficiency and quality.

Kanban – a visual signal used to trigger an action Process walk (also known as Gemba walk) - a form

of management in which leaders walk around the work area to gain firsthand insight into how processes are done

Standard work – a detailed definition of the most efficient method to perform a service at a balanced flow to achieve a desired output rate by breaking down the work into organized, sequenced elements

Value stream – all the activities that an organization must do to deliver its services to its customers

Value stream map – an illustration that uses graphics or icons to show the sequence and movement of information and materials in an organization’s value stream. The terms “lead time,” the time it takes to complete an activity start to finish, and “wait time,” the time in between steps, are often used with the value stream map