transforming the public sector - muskingum valley educational service … manual 4-18-14 _3.pdf ·...

Transforming the Public Sector

Service · Support · Solutions

Department of Administrative Services

The Ohio Department of Administrative Services is an Equal Opportunity Employer.

Revised April 2014

3 / LEANOhio Bootcamp

LEANOhio Boot Camp: Transforming the Public Sector

Course Purpose and Objectives:PurposeEfficiency is taking on new meaning in Ohio state government. People are teaming up to streamline and simplify their work processes, cut red tape, save money, and deliver quality services in a cost-effective way. The results are generated from utilizing tools of Lean, Kaizen, and Six Sigma. These are the same tools that top companies are using to increase efficiency, cut costs, and strengthen customer satisfaction.

Lean Six Sigma is a transformation processImplementing Lean is all about focusing on what the customer wants and needs, not solely on how to cut costs. Lean seeks to eliminate that which delivers no value to the customer. Sometimes this does involve cutting expenses, but ultimately the organization improves through better customer service. This breakthrough improvement methodology focuses on utilizing a cross-functional team-based process with rapid improvement.

How to use this ManualThis manual has been developed to accompany LEANOhio Boot Camp (Camo Belt) Training. This manual is not meant to be a standalone document.

Course ObjectivesLEANOhio Boot Camp: Transforming the Public Sector• Distinguish Lean and Six Sigma• Identify customers and their needs • Identify and scope an Improvement project• Map a process• Identify and remove waste from a process• Prepare an action register• Apply at least two lean tools • Be ready to be on an improvement team!


LEANOhio BackgroundLEANOhio is about working smart and achieving results – Making state government in Ohio simpler, faster, better and less costly.

LEANOhio is committed to creating efficiency in Ohio state and local government. LEANOhio has been working to create a network of motived people to team up, streamline and simplify work processes, cut red tape, save money, and deliver quality services in a cost-effective way. This is being accomplished using the tools of Lean, Kaizen, and Six Sigma. These are the same tools that top companies are using to increase efficiency, cut costs, and strengthen customer satisfaction. With Lean, agencies focus on their critical priorities and core processes. And when it comes to improvement, the Lean approach involves and engages the workforce, so change is done by employees and not to them.

The mission of LEANOhio is to lead and support efforts to make government services in Ohio simpler, faster, better, and less costly. Using continuous improvement methods such as Lean and Six Sigma, Ohio’s state agencies are cutting red tape, removing inefficiencies, improving customer service, and achieving measureable results.

The LEANOhio Network includes hundreds of employees who have been involved in Kaizen events, trainings, or continuous improvement efforts in both local and state government. They have analyzed and transformed major processes in order to better serve the public. Many state employees have gone on to earn advanced skills through Green Belt or Black Belt training. The Network includes state and local employee unions and members who promote Lean, improve processes, and partner with the state to provide regular opportunities to learn new Lean tools and strategies.

LEANOhio is coordinated by the LEANOhio Office, located within the Department of Administrative Services. Office associates are Lean experts who serve as internal consultants. Services include training, strategic planning, meeting facilitation, data collection and analysis, and Lean event leadership.

Lean Ohio is an approach to simplifying government processes to eliminate red tape and create processes that efficiently and effectively meet customer needs… and the customer is in the end, the citizens and taxpayers of Ohio.LEANOhio is also a group of internal consultants in state government who help state agencies to learn and apply the principles and practices of Lean and Six Sigma. They come from a wide variety of experience in government and are all Six Sigma Black Belts with skills in facilitation, data management, project management, training and more.

Results:

See www.LEANOhio.gov for results of many LEAN improvements in government.


DAY 1 Course OverviewGround RulesGround rules are utilized in training and team meetings to ensure a productive process and outcome. They are displayed for the group to refer to throughout. The ground rules we will use for this training are:

• Everyone participates

• Open and honest dialogue

• Respect Opinions

• Consensus decision making *

• Leave rank at the door

• Blameless Environment

• Other?

* Consensus means that the participants have had an opportunity to voice their concerns, be heard and can support what the team decides, not that everyone will agree 100%.

Lean Mantras• Make The Invisible Visible

• It’s not the People, It’s the Process

• Consensus – Go West

• Batching is Bad

• Listen to the Voices

• Creativity before capital

Day 1 Day 2 Day 3 Day 4 Day 5

Introduction and Overview

Making the Invisible visible

Analyze and Improve

Achieving transformation: Process redesign

Leveraging results

• Lean Six Sigma Overview

• Listening to the Voices

• DOP Simulation• SIPOC –

Introduction to Scoping

• Project Charter• Metrics and Data

Collection • Operational

Definitions• Process Mapping• Identify Waste

and Value-Add • Interpret the

Process Map

• 5 S + safety• Batching, Flow,

Push – Pull, Standard work

• Poka Yoke, pareto diagram

• Brainstorming, Affinity diagram, Impact-Control matrix

• Clean sheet redesign

• Create future state

• Making the future state happen

• Implementation plans and tools

• Measures of success

• Team management

• Change management

• Taking Lean back to your workplace


DAY 1 Lean Six Sigma OverviewWhat is Lean?Ohio’s Approach To Lean: Simpler, Faster, Better and Less Costly

Department of Administrative ServicesRobert Blair, Director

LeanOhio • lean.ohio.govSteve Wall • 614-644-9654 • [email protected]

SIMPLER • FASTER • BETTER • LESS COSTLY

The LeanOhio Mission: Lead and support efforts that make government services simpler, faster, better, and less costly.

Vision: To be recognized as a national leader and the go-to resource in Ohio for making government more efficient and effective.

Visit lean.ohio.gov for detailed information, results, and resources.

SIMPLERKaizen teams rip through red tape. In FY 2013, Kaizen teams cut an average of 56% of the steps in the processes they improved – resulting in far fewer delays, decision points, loopbacks, handoffs, and frustration for the users of government services.

BEFOREIMPROVEMENTS

AFTER

56%REDUCTION

Number ofProcess Steps

BETTERA primary goal of Lean is to improve services to the customer. By eliminating activities that don’t add value, Kaizen teams have redirected more than 500,000 staff hours to higher-priority efforts that improve customer service. That’s equivalent to 250 fulltime employees who are now available for mission-critical work.

FASTERLean is all about speed. In FY 2013, Kaizen teams made their processes twice as fast, from when a customer asks for a service to when that service is delivered. They reduced pro-cess time by 53% on average, ensuring far faster service to customers. And they eliminated backlogs of work in process.

BEFOREIMPROVEMENTS

AFTER

53%REDUCTION

Process Time

LESS COSTLYSaving money and making better use of taxpayer dollars are major priorities. In FY 2013, the projected cost savings produced by Kaizen teams when their improvements are fully implemented exceeds $125 million. The return on investment for LeanOhio activities is greater than 40 to 1.

RETURN ON INVESTMENT: In FY2013, for every $1invested in LeanOhio activities, the state gained more than $40 in projected savings.

The LeanOhio Mission in action:


Lean is defined as a systematic approach to identifying and eliminating waste through: Continuous Improvement and sequencing the service or product at the pull of the customer. Lean focuses on speed without sacrificing quality for the customer. Lean is focused on developing quality people who continually improve processes.

Lean thinking is based on two assumptions: Elimination of waste improves performance and many minor improvements can lead to perfection.

Lean shines a spotlight on waste (muda)

Lean BasicsLean aims to optimize costs, quality, and customer service. It does so by engaging and equipping employees to focus on creating and delivering value in the eyes of the customer and eliminating whatever doesn’t contribute to this goal (waste). A key characteristic of a Lean organization is its ability to improve itself constantly by bringing problems to the surface and resolving them.

While Lean was developed for manufacturing, the application of Lean production principles and methods to identify and implement the most efficient and value added way to provide government services has been quite successful. Government agencies have found that Lean methods enable them to better understand how their processes work, to quickly identify and implement improvements, and to build a culture of continuous improvement.

Foundations of Lean• Two pillars of Lean

- Pursuit of continuous improvement

- Philosophy of respect for people

The true value of continuous improvement is creating an atmosphere of continuous learning and an environment that embraces change and a culture focused on developing quality people who continually improve processes.

Seven Key Principals of Lean • Specify value in the eyes of the customer• Identify the value stream for each product• Make value flow without interruptions• Reduce defect in products and deficiencies in processes• Let customer pull value• Pursue perfection – Six Sigma levels• Drive out variation (short and long term)

(From Juran’s Quality Planning and Analysis for Enterprise Quality fifth edition) ASQ: Steps of Lean


ASQ: Steps of Lean• Define: Defining Value – Value must be determined by the customer• Identify the Value Stream: The sequence of activities contributing value; identify non-value added

activities to determine if they are necessary• Enhance Value Flow: Flow is the moving of the product uninterrupted through the system to the

customer.• Maximize Customer Flow: Create the product upon customer requests• Optimize the Process: efforts to remove waste and improve flow never cease.

What is Six Sigma?Six Sigma is a collection of the best of the best tools that seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in processes.

The basic premise of Six Sigma is that sources of variation can be identified, quantified and eliminated or controlled. Six Sigma is a data driven approach that is focused on strategic or core processes. At its core Six Sigma can be thought of as three different levels: metric, methodology and management system.

• As a metric the term Sigma is often used as a scale of quality. Six Sigma equates to 3.4 defects per one million opportunities. A Six Sigma process is one in which 99.99966% of the products are statistically expected to be free of defects.

• As a methodology Six Sigma is an improvement methodology that is focused on customer requirements, data analysis to minimize variation in the process, and continuous improvement. At the heart of the methodology is the DMAIC model (Define, Measure, Analyze, Improve, and Control).

• As a management system Six Sigma is devoted to aligning process metrics and structured methodology to the organizational strategy. Six Sigma includes emphasis on the culture of the organization, improvement tools and support system for the tools..

The term “six sigma process” comes from the notion that if one has six standard deviations between the process mean (average) and the nearest specification limit, as shown in the graph, practically no items will fail to meet specifications.

-6

I.S.I.

N(0.1)

μ = 0σ = 1

U.S.I.

-5 -4 -3 -2 -1

μ-σ0

μ1

μ+σ2 3 4 5 6


Here are some features that set Six Sigma apart from previous quality improvement initiatives:

• A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project. • An increased emphasis on strong and passionate management leadership and support.• A special infrastructure of “Champions,” “Master Black Belts,” “Black Belts,” “Green Belts”, etc. to lead

and implement the Six Sigma approach.• A clear commitment to making decisions on the basis of verifiable data, rather than assumptions

and guesswork.

DMAICDMAIC is a five-step data-driven process that is the key methodology of the Six Sigma approach for improving processes.

1. Define the problem, the voice of the customer, and the project goals, specifically. “Where are we now?”

2. Measure key aspects of the current process and collect relevant data. “Can we count or observe?”3. Analyze data to investigate and verify cause-and-effect relationships. Determine what the

relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation. “Let the data speak.”

4. Improve or optimize the current process based upon data analysis and using techniques such as value stream mapping, poke yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability and check that the change actually improves things. “Transformation”

5. Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as planning registers, visual boards, electronic dashboards, and continuously monitor the process. “Sustainability”

DMAIC

Define Define the problem clearly and related to customer

Measure Measure what’s important, know your measure is good

Analyse Look for root causes; generate a prioritized list of improvements

Improve Installing the optimal solution and transitioning to process owner

Control Ensure the problem doesn’t come back – Sustain the Gain


Differences between Lean and Six Sigma

“The lines between Lean and Six Sigma have become blurred. With greater frequency, we are hearing about terms such as ‘Lean-Sigma’ because process improvement requires aspects of both approaches to attain positive results.”

(According to Kubiak in The Certified Six Sigma Black Belt Handbook, second edition)Process improvement requires aspects of both Lean and Six Sigma approaches. Both are:

• Customer focused• Quality focused• Require strong management support• Data driven decisions• Proven continuous improvement methods

The most successful users have begun with the lean approach: making workplace efficient and effective as possible, reducing the wastes, use value stream maps. When process problems remain – the more technical Six Sigma statistical tools may be applied.

LEAN Six Sigma

Two Pillars: Continuous Improvement & Respect DMAIC Methodology

Reduce Time and Waste Reduce Defects and Variation

Reduce cycle time and bottlenecks with an emphasize of flow and pull Six Sigma Goal: 3.4 Defects per million opportunities

Process Mapping, 5S and 7 Wastes – and more Data and Root Cause Analysis Tools – and more

Achieves goals by use of less technical tools such as kaizen, workplace organizational and visual controls (ASQ)

Achieves goals by use of statistical data analysis, design of experiments and hypothesis testing (ASQ)

*Start with Lean!


What are Kaizen Events? One of the main components of LEANOhio is the Kaizen Event. Kaizen is among the most powerful tools in the Lean tool kit. Kaizen is a Japanese term, meaning to break apart or change (kai) for the better (zen). Kaizen is a practice of choice among successful private-sector organizations, with a proven record of reducing waste, increasing efficiency, saving money, and increasing customer satisfaction.

In a typical Kaizen event, team members meet for five straight days to overhaul a core work process. Their week begins with just-in-time training in the Kaizen methodology. Then they map out the current state of the process, analyzing every step to find all forms of waste: over processing, delays, loopbacks, handoffs, excessive inventory, defects, and so on. They use their findings to develop a new process that is simpler, faster, better, and more cost-effective. Action plans address all aspects of implementation, including training and communication.

A Kaizen event brings together not only the people who do the work of the process, but also some of their representative customers and stakeholders along with objective outsiders who have no knowledge of the process. This builds important perspectives and fresh ideas into every event.

Also with Kaizen, implementation of the improvements begins as soon as the team completes its week of work. There’s nothing theoretical or hypothetical about Kaizen. It’s all about real change. The efficiencies and savings start adding up right away. The results are significant - to date in Ohio state government, more than 60 Kaizen events have produced big results that benefit employees, customers, and the agency bottom line.

*Direct translation for Kaizen is: to break apart or change (kai) for the better (zen)








A Kaizen team typically involves 10-18 people. This includes staff who work the process, managers or supervisors of the process, one or more customers or other stakeholders, and even an outsider with no knowledge of the process who can bring a fresh perspective.

On the right is a snapshot of a Kaizen event on its fourth day. Here’s what’s happening:

A. A subgroup fine-tunes plans to develop informational materials and training to support the improvements.

B. LeanOhio’s Bill Demidovich fine-tunes the new process map based on input from the team.

C. One of the Kaizen participants consults with a subgroup for clarification.

D. The group on the right is working on details of an especially complex part of the new process. They will report their findings to the whole group in order to build consensus.

E. Stretching from the wall on the right and continuing on the left is a complex map of the current process. On the facing wall (B) is a map of the new approach – with 101 fewer steps!

Improvement has always been a priority in state government, but Kaizen takes it to a new level. Here’s how:

INTENSITYA Kaizen team does all its work in a nonstop stretch from Monday through Friday. This compressed time frame ensures continuity and efficiency.

IMMEDIACYToo often in the past, teams generated recommendations that never got implemented. With Kaizen, implementation is more immediate. While some improvements may need to be phased in, many changes are put in place during the Kaizen week. Agency directors, assistant directors, team sponsors, and other key leaders visit with the team as the week unfolds to get updates, give input, make decisions, and remove barriers.

IMPORTANCEKaizen has its biggest measurable impact when used to improve major processes. The best candidate for a Kaizen event is a costly, complex, delay-ridden process that is crucial to customers and integral to the agency’s strategic priorities.

Here’s how Kaizen is different...and better A Kaizen event begins with just-in-time learning on Monday...and ends with a celebration and

presentation of plans and projected results on Friday. In between, team members dive deeply into their work process. They question their assumptions, apply their experience, exercise their creativity, analyze the data, and build a process that’s far simpler, faster, better, and less costly.

Here’s what happens during a Kaizen event

The term KAIZEN is Japanese, meaning to change (kai) for the better (zen). Kaizen teams do just that, analyzing every part of a work process, then rebuilding it to be simpler, faster, better, and less costly.

Kaizen EventsA Kaizen event is a one-week improvement blitz aimed at overhauling a core work process. Used extensively at leading private-sector companies and public-sector agencies, Kaizen is an approach of choice for increasing efficiency, boosting customer satisfaction, and cutting costs.

In Ohio state government, Kaizen teams are on the move and getting great results: streamlined processes, reduced red tape, greater efficiency, increased customer satisfaction, and big savings.

“This is powerful stuff,” said Ohio Tax Commissioner Joe Testa, speaking at a Kaizen team’s concluding presentation. “I can’t believe how much you accomplished in a week.” The team reduced its overall process time by 92% – and crushed its backlog 68% within six months of the Kaizen event.


Kaizen ApproachPreparation:

• Informational Overview• Pre-scoping meeting• Scoping meeting• Team On-Boarding• Final Go-No Go Review

After Day Five: Follow-ups at 30, 60, 90 days and 6 and 12 months.

Top 10 reasons why Kaizens work

Day 1

• Introduction• Training• Walk Through

Day 2

• Discovery• Improvement

Ideas• Brainstorming

Day 3

• Improvement• New Process• Commitment

Day 4

• Design • Implementation• Planning• Registers

Day 5

• Results• CELEBRATION• Follow-up

1. People who do the work know the work best

2. Teach people the science of Lean and let them apply it to their own process

3. An ambitious yet attainable scope

4.A charter that clearly defines goals, communicates purpose and gets everyone on the same page

5. A focus on the customer and what is important to them

6. Team work creates better ideas, and ownership of the new process means implementation

7. Designed to facilitate change management

8. Data-based decision making

9. Begin implementation immediately

10. Management is committed to implementing the new process


Prep

arat

ion

Scop

ing

and

SIPO

C

Curr

ent M

apPr

oces

s

Impl

emen

tatio

nPl

ans

- A

ctio

n Re

gist

ers

Team

Form

atio

nBr

ains

torm

ing

and

Eval

uatio

nRe

port

ing

- CE

LEBR

ATIO

N

Proj

ect

Char

ter

Iden

tifica

tion

of W

aste

Poke

Yok

eCo

nsen

sus

onPr

ojec

t Cha

rter

and

SIPO

C

LEA

N P

rinc

iple

sin

Pro

cess

Des

ign

Proj

ect

Man

agem

ent

Iden

tify

Team

Inde

ntifi

catio

n of

VA, N

VA, N

VAN

Visu

alM

anag

emen

t- D

ashb

oard

Revi

ew B

asel

ine

Dat

aCl

ean

Shee

tRe

desi

gnCh

ange

Man

agem

ent

Dat

a Co

llect

ion

Plan

(Bas

elin

e D

ata)

Ana

lysi

s of

Curr

ent S

tate

Proj

ect

Savi

ngs

Dat

aA

naly

sis

Futu

reSt

ate

Mon

itori

ng a

ndFo

llow

-up

Leve

lSe

ttin

g

Curr

ent S

tate

:M

ake

the

Invi

sibl

e Vi

sibl

e

Impr

ovem

ent

Des

ign

Impl

emen

tan

d A

ctio

nCo

ntro

l and

Sust

ain

Lea

n P

roje

ct F

low


Sponsors/ Leadership

Creates the vision for Lean Six Sigma initiatives. Define strategic goals and measures of the organization, establish targets and create an environment within the organization that will promote the use of Lean Six Sigma methodology and tools.

Project Champion:

Leads in project identification, prioritization and defining scope. Selects and mentors team members. Removes barriers. Aligns resources. Communicates progress to stakeholders.

Master Black Belt:

Is an expert on Lean Six Sigma tools and methods. Trains Black Belts and ensures they are properly applying the methodology and tools. Coaches and mentors Lean practitioners. Maintains training material and works on high level projects. Typically spend 100% of their time on Lean Six Sigma.

Black Belt:

Is responsible for leading, executing, and completing Lean Events and projects. Teaches team members the methodology and tools. Assists in identifying project opportunities and refining project details and scope. Mentors and transfers knowledge to others in the organization. Reports progress to stakeholders. Typically spends 50% of their time on Lean Six Sigma projects.

Green Belt:Is trained in a subset of the Lean Six Sigma methodology and tools. Works on smaller scope projects, typically in his/her respective work area. Works on various Lean Events/projects. When experienced, can mentor others.

Mentor: A Lean Six Sigma Mentor provides guidance and advice to Green Belts or Black Belts to provide support throughout a project.

Camo Belt:Boot Camp graduate. Is trained in a subset of the Lean methodology and tools. Works on smaller scope projects, typically in his/her respective work area. Works on various Lean Events/projects.

Stakeholders:Anyone who has an interest in the agency or project (customers, vendors, employees, government).

Improvement Project Facilitator(s)

Is responsible for scoping, preparing and running process improvement projects. The facilitator trains team members in the elements of Lean Six sigma and facilitates and captures the results of the event.

Improvement Team Leader

Is typically the leader of the process under investigation. Assists with the Facilitators and is the main contact for the event facilitators.

Improvement Team Members

Members of the process improvement team. Team members are typically those who do the process including management. A fresh perspective and customer are often part of the team.

Subject Matter Expert (SME)

A SME is an individual who exhibits the highest level of expertise in performing a specialized job, task, or skill within the organization. SME may be IT, Human Resources or Legal or anyone with in-depth knowledge of the process you are attempting to improve.

Fresh Perspective

Team member that hos now prior knowledge of the process. This person can give new eyes and ask insightful questions. This person is a full team member and expected to participate fully in the process improvement project.

Lean Six Sigma Roles and Responsibilities:


Quality Pioneers: Seven Founders of Six Sigma

Philip Crosby (1926-2001): Business Person of Quality• Basis of quality is based on DIRFT “Do it right the first time” • Made quality meaningful and accessible to American executives.• Promoted addressing quality problems through existing management structures rather than from

statistical basis.

W. Edwards Deming (1900-1993): Credited with Starting the Modern quality Improvement Movement• Introduced statistical methods to American industry during World War II. • Quality is whatever the customer needs and wants. P• Process-oriented approach• Acknowledge and involve of workers’ expertise• Believed you understand variation using statistical analysis• Believed that 95% of quality problems are due to system, while only 5% are due to employees

Armand Feigenbaum (1920-): Credited with developing the concept of “total quality control” while at General Electric.

• Emphasizes the need for everyone to focus on serving external and internal customers• Quality is an organization-wide process• Total customer focus• Focus on serving external and internal customers

6σ


Kaoru Ishikawa (1915-1989): “Father of Japanese Quality Control Efforts”• Made quality movement a nationwide phenomenon.• Company-wide quality control (CWQC) to distinguish the Japanese approach from Total quality

control. • Use 7M Tools: Seven Management and Planning Tools• Affinity Diagram• Interrelationship digraph• Tree Diagram• Prioritization Matrices• Matrix Diagram• Process Decision Program (PDPC) Chart• Activity Network Diagram

Joseph M. Juran (1904-2008): “Co-founder of the 20th century quality movement”• Worked with Japanese to introduce quality concepts.• Quality control as a management tool rather than specialist’s technique.• Cost of Quality – The further you get away from the source the greater the cost

Walter A. Shewhart (1891-1967): “Father of statistical quality control”• Developed control chart techniques – common cause and special cause. • PDCA Cycle (Shewhart Cycle or Deming Cycle): Plan, Do, Check, Act

Genichi Taguchi (1924-2012): “Father of Quality Engineering”• Developed specific quality engineering techniques to optimize the process of engineering

experimentation and product design.• Quality should be designed into a product, not inspected into it


DAY 1: Four VoicesYou own a local Movie Theatre and you are going on vacation for 10 days. You have asked your theatre manager to email you 5 data items every other day. List your five data points below:

1.

2.

3.

4.

5.

Four Voices:• Voice of the Customer - VOC• Voice of the Business - VOB• Voice of the Process - VOP• Voice of the Employees – VOE

Voice of theCUSTOMER

(VOC)

Voice of thePROCESS

(VOP)

Voice of theEMPLOYEES

(VOE)

Voice of theBUSINESS

(VOB)


Voice of the Customer - VOCBefore beginning any project or process map it is important for the team to determine the customer (s). Lean Six Sigma is a customer driven methodology and your customer needs should be forefront in every decision (including project selection) you make. Customer focus is one of the foundation blocks of Six Sigma. Furthermore, it is imperative that you identify your customer needs including:

• What you customers want?• What are we doing that they don’t want?• What do your customers think of the current services?

- Are the services fast enough? - Additional services? - What are their reactions to the staff?

You may obtain the Voice of the Customer in several ways; whenever possible focus on immediate feedback. The closer the feedback is to the service the more valuable or trusted the feedback. VOC feedback examples:

• Written Survey (surveymonkey.com)(Novisurveys.com(• Phone calls• Complaints• Focus Groups• Utilize Social Media• Web utilization• Twitter

The voice of the customer tells us what the customer wants. Often the Voices of Customers (VOC) are not specific and not in technical language. Sometimes the Voices of Customers are stated solutions; therefore VOC needs to be translated to the Critical Customer Requirements (CCR).

A Critical Customer Requirement (CCR) is a requirement that is necessary for customer satisfaction. For the Voice of the Customer to be useful, we must ultimately convert the VOC data into Critical Customer Requirements (CCRs) that can be used to assess the performance of our processes. If CCRs are not defined to the point that a clear target with specifications is established, they are not useful in determining our current defect levels. CCR can be measured whereas the VOC may not be measurable. CCR also establishes a target, customer specifications, and an acceptable range of performance.

Voice of the Business - VOBThe voice of the business can be looked at in two ways: Top-Down Approach and the Bottom-Up approach.

The Top-Down Approach is driven by Key Business Goals and Objectives:• Key Objectives not being met• Changing business conditions• New objectives that challenge current reality


Bottom-Up Approach is driven by known problems and operational issues:• Activity-level objectives not being met• Excessive use of resources• New objectives that challenge current reality• Changing business conditions

A valuable tool to use in capturing the Voice of the Business is conducting performance benchmarking and process benchmarking. Performance benchmarking is the process of determining what other organizations are doing at providing products and services. It helps an organization assess its competitive position. Process benchmarking is the process of finding how “world-class” organizations provide their products and services to determine opportunities for improvement. It relies on process improvement efforts to produce bottom-line results

Voice of the Process - VOPVoice of the Process: is what we observe from the process and what the data tells us. The Voice of the Process leads us to areas that need attention and to best practice areas. You need to continually scan your processes and observe areas for improvement. A Scorecard/Dashboard can be employed to help quickly identify out of spec metrics or areas that need improvement. The goal is to proactively prevent problems based on “listening” to the data?

Voice of the Employee - VOEThe voice of the employee is crucial to carrying out the message and mission of the agency. The employee voice brings about personal ownership and a sense of responsibility that employees are directly contributing to success of the agency. Through their voice, employees provide a dialogue with management that sheds light on areas of success within the agency or areas of concern. The voice of the employee is also linked to the voice of the process in that problem areas can be identified along with the voice of the customer and voice of the business to identify potential opportunitiesDAY 1: Department of Prevention Simulation Intro


The Department of Prevention (DOP) is a Government Organization. DOP reviews applications from other Government Organizations. You will be working in the Application Processing Section. This Section receives applications from government organizations requesting permission to conduct process improvement activities. DOP processes two types of applications: Renewal and Initial. The section goals are to process applications as quickly and efficiently as possible without losing quality. The section must process 16 applications every day in order to meet customer demand and avoid a backlog (a day lasts 6 minutes).

Department of Prevention Rules• DOP needs to process 16 apps every day (6 min) • Each DOP employee is required to work until the end of the day• Every position has written instructions that must be followed• Each DOP employee is responsible for getting their own materials• Materials cannot be shared and must be transported in the authorized folders only• Each folder can hold only two applications• Extra materials can be found in the Supply Area • Running is not permitted• All DOP employees are responsible for moving their completed work to the next worker• Folders cannot be moved across the table. All work must travel around the outside of the table • Forms will be processed in batches of two• You are required to follow the written instructions

Job Assignments:• Mail Carrier• Mail Opener• Renewal Processor• Initial Processor• Legal• Approval• Auditor• Addressor• Quality Assurance

DAY 1: Department of Prevention Simulation Intro

DOP Motto: “Keeping bad things from happening”


DOP: Simulation Debrief

My job title is: __________________________________________________________________________

Number of application processed: _________________________________________________________

Time to complete first application: _________________________________________________________

Initial thoughts of DOP Process:

DAY 1: SIPOC 101 “If you’re doing something the same way you have been doing it for ten years, the chances are you are doing it wrong.” – Charles Kettering

A SIPOC diagram is a fundamental tool Lean tool employed in practically every Lean project or event. SIPOC is a type of process map to identify the primary elements of a process. SIPOC provides a macro view that defines and documents the: Suppliers, Inputs/Requirements, Key Process Steps, Outputs/Requirements, Customers, and Critical-to-Quality elements of a business process.

SIPOC Procedure:

• Identify the steps: Typically 4-5 high level steps. The SIPOC is viewed at a 50,000 foot level.• Identify the outputs of the process.• Identify the customers who will receive the outputs of the process.• Identify the inputs needed by the process.• Identify the supplies of the required process.

It is often used when scoping a project and aids the team in documenting the process name, process owner, start/stop “triggers”, assumptions about the process, operational definitions of key terms, and ensures level setting for the team. Consensus on the process should be reached before moving on to complete the rest of the SIPOC.

50,00 Feet View

10,00 Feet View

1,000 Feet View

SIPOC

BusinessProcess

Map

StandardWork


Start with the Process

Suppliers Inputs Process Outputs Customers

Individuals or organizations that provide inputs to the process.

Material, information and/or services that are required by the process to produce the outputs

The step by step method that produces the output, defined at a very high level- only 4-5 steps

Products, information, services and/or decisions that are produced by the process

Those who receive the process output, pay for it or are directly impacted by the process output



DOP: SIPOC ExerciseComplete a SIPOC for the DOP exercise: Don’t forget to start with the process



Day 2 – Lean Projects/CharterLean Six Sigma is an umbrella of tools and methodologies all focused to make your agency and processes better. There are several different types of Lean Six Sigma projects and a facilitator will not know what type of project until a scoping meeting or scoping document has been started. Scoping a project often takes experience and assistance from those with Lean Six Sigma experience.

Scoping Meetings are held at the beginning of a Lean Six Sigma Project. At this time the Team Lead and Sponsor meet with the facilitator to discuss the scoping document and pinpoint the type of project. The type of project will depend on the span of control, size of process and if the process is currently stable. A project type may change as more information becomes available.

Project Types might include:• 5s project• Poke Yoke (Error Proofing)• Data Collection• Voice of the Customer Collection• Lean Routine• DMAIC Projects• Kaizen Event• Value Stream Mapping

This manual will focus on 5S projects, Data Collection, Voice of the Customer Collection and Lean Routines. DMAIC, Kaizen Events and Value Stream Mapping should only be taken on by designated experienced facilitators. LEANOhio Boot Camp (Camo Belt) can assist and, with experience, co-facilitate a Kaizen Event.

Project SelectionThere are four basic approaches to lean six sigma project selection.

• Blatantly Obvious: Things that clearly occur on a repetitive basis and present problems in delivering our service(s) or product(s).

• Brainstorming Approach: Identifies projects based on individuals “experience” and “tribal knowledge” of areas that may be creating problems in delivering our service(s) / product(s) and hopefully tie to bottom-line business impact.

• Structured Approach: Identifies projects based on organizational data, provides a direct plan to effect core business metrics that have bottom-line impact.

• Early Adopters: Identifies projects based sponsor/process owner need and are requesting improvement project.

The most popular process for generating and selecting projects is by holding brainstorming sessions. In brainstorming sessions a group of people get together, sometimes after polling process owners for what “blatantly obvious” problems are occurring, and as a team try to identify and refine a list of problems that MAY be causing issues in the organization.

Brainstorming falls short of being a systematic means of identifying projects. Brainstorming often does not ensure that we are dealing with the most important high-impact problems, but rather what happen to be the recent fire fight initiatives. Lean Six Sigma experts often look to the four voices to identify projects.


The Four Voices can lead to identifying improvement projects:

Voice of the Customer• Complains - Surveys• Interviews - Focus Groups• Scorecards• Plus Delta• Phone Calls

Voice of the Business• Business Ys• External benchmarking• Internal benchmarking• Project leveraging• Financial Data• Mission, Vision and Goals

Voice of the Employee• Suggestions Boxes• Verbal suggestions/meetings• Brainstorming• Surveys

Voice of the Process• Process Time• Errors in Process• Rework• Safety data• Backlog

Making government in Ohio simpler,

faster, better and less costly

Evaluating Potential ProjectsWhen evaluating potential Lean Six Sigma projects there are several Do’s and Don’ts that should be taken into account:

Project Don’t’s• Tackle moral, communication or something equally big.• Pick pet peeves• Pick preconceived solutions for the team to implement• Try to solve other people’s problems.• Select a process where you are the primary customer• Address collective bargaining issues: salaries grievances, benefits.

Project Do’s• The project deals with a process • The process has not been recently changed.• Project is small enough to be workable, yet big enough to be meaningful.• There are available data (baseline data) related to the process.• The project fits the organization’s vision and mission.• Improvement of the process is something that the customers would applaud.• The organization is ready to devote the necessary time.• The project has leadership support.


What makes a Good Project?

Project Charter Project Charter is a written commitment ideally approved by management stating the scope of authority and is recognized by all parties involved in the project. The charter is a “living” document that is constantly being reviewed and updated at new data becomes known. The project charter is a means to formally document and approval projects.

Helps Hinders

Project sized correctly Tries to solve “World hunger”

Clear objectives No clearly defined benefits

Available baseline data Long lead time to detect improvements

Process under your control Subject matter experts not available

Small number of outside resources needed Valid data not readily available

Change is under project team’s authority Unsupported by stakeholders - Decision-makers not engaged

Easy to calculate benefits Process owner not engaged

Management support A lot of recent change in section

Directly effects customer

Project (or Event) Title The name of the project. Ideally, descriptive of the problem or opportunity. What process is going to be improved?

Project Facilitator: The name of the Lean Practitioner conducting the project

Agency/Organization: The agency or division or section in which the project is being conducted

Project Background Describe the process which is the focus of the project. What has been happening, why it is being chosen? How are customers are being impacted?

Project Mission or Aim Goal of the project; Describe why you are conducting this project

Problem/Opportunity Statement

Detail the issue that the project wants to improve. Effective statements quantify the magnitude and impact of the problem or opportunity

Goals These are the specific goals for the project is. Should include numerical goals based on the measured defect.

Project Scope The first step and the last step of the process that is the focus of the project

Performance MetricsWhat will you measure to know if your project is successful?This is the key metric that will be tracked for the project. Typically performance metrics fall into three categories: Quality, time, and cost

Project Benefits Other than measures what benefits are anticipated from improving this process? Project Benefits should include both financial and intangible benefits.

Project Boundaries Any limitations, off-limits parts of the process, etc.

Project Team List the Team Lead, Team Champion/Sponsor, Process Owner, Team Members and any Subject Matter Experts.

Project Champion/ Sponsor Sign-Off An area for the sponsor and process owner to sign-off on the charter if needed.


Other Project Charter Terms:

Scope Creep: Uncontrolled changes or continuous growth in a project’s scope.

Goals and Objectives: The outcomes of the project. The goals should relate to the problem and defect definition. It is what will be achieved by the process, sets targets and is the criteria to know if the project was successful. Goals should be SMART.

SMART GoalsGoal Statements: Goals should be SMART

• Specific: Specific goals are required instead of more general goals. This means the goal is clear and unambiguous; without vagaries and platitudes. To make goals specific, they must tell a team exactly what is expected, why is it important, who’s involved, where is it going to happen and which attributes are important. A specific goal will usually answer the five “W” questions.

• Measurable: A goal needs concrete criteria for measuring progress toward the attainment of the goal. If a goal is not measurable, it is not possible to know whether a team is making progress toward successful completion. Measuring progress is supposed to help a team stay on track, reach its target dates, and experience the exhilaration of achievement that spurs it on to continued effort required to reach the ultimate goal. A measurable goal will usually answer questions such as: How much? How many? How will I know when it is accomplished?

• Achievable/Attainable: Goals should be realistic, achievable and attainable. While an attainable goal may stretch a team in order to achieve it, the goal is not extreme. The goals are neither out of reach nor below standard performance, as these may be considered meaningless. The theory states that an attainable goal may cause goal-setters to identify previously overlooked opportunities to bring themselves closer to the achievement of their goals. An attainable goal will usually answer the question: How can the goal be accomplished?

• Realistic/Relevant: Choose goals that matter. A bank manager’s goal to “Make 50 peanut butter and jelly sandwiches by 2:00pm” may be Specific, Measurable, Attainable, and Time-Bound, but lacks Relevance. Many times you will need support to accomplish a goal: resources, a champion voice, someone to knock down obstacles. Goals that are relevant to your boss, your team, your organization will receive that needed support.

• Time-bound: Goals need to be grounded within a time frame, giving them a target date. A commitment to a deadline helps a team focus their efforts on completion of the goal on or before the due date. This part of the S.M.A.R.T. goal criteria is intended to prevent goals from being overtaken by the day-to-day crises that invariably arise in an organization. A time-bound goal is intended to establish a sense of urgency.


DOP: Project Charter ActivityIn small groups – complete the charter for the DOP Simulation.


Day 2 – Data CollectionWhen scoping your project or event is the beginning of the data collection. Data collection is important because it provides a baseline for your current process and will lead to data driven decisions and root cause analysis. You will begin to ask for data or begin collecting data surrounding the process under examination.

Measurement guides the improvement process. Important questions to ask for implementing measurement:

• What should be known?• What is the purpose of measuring?• What will be measured?• How will the measurement occur?• When will the measurements take place?• How accurate is the collection instrument?• How accurate are the data?• How reliable are the data?• How sensitive are the data?

Data Collection Method

STEP ONEDevelop Operational Definitions

for Measure

STEP TWODevelop Measurement Plan

STEP THREECollect Data

STEP FOURDisplay and Evaluate Data

Identify Measure


Collecting DataPerformance MetricsProcess Performance Metrics establish the process’s current situation (or baseline) to allow a comparison to the target or goal. Metrics drive project decisions and help make strategic management decisions. Examples of process metrics include: cycle time, takt time, back log, defect rates, quality, cost, and rework rates.

The Primary Metric is the quantified measurement that is the primary focus of the project and serves as the indicator of project success. Secondary Metrics is a second measure(s) identified in a project to help avoid sub-optimization. For example - the project does not lose quality at the expense of speed.

What gets measured gets done!

Balancing Measures: When identifying measures facilitators should strive to have balancing measures (Primary and Secondary Measures) to avoid sub-optimization. Examples of balancing Measures are:

• Quality vs. Cost• Errors vs. Time• Speed vs. Cost• Speed vs. Quality• Customer Service vs. Time

Sub-optimizationWhen scoping and conducting any Lean Project the lead must be aware of sub-optimization. Sub-optimization is improving one process at the expense of another. The team should avoid sub-optimization unless it is agreed that the overall benefits outweigh the negative impact on other processes.

Step 1. Develop Operational DefinitionsData collection is a key component of Lean Six Sigma and clear operational definitions can help ensure the data we are collecting is accurate and reliable. An operational definition, when applied to data collection, is a clear, concise detailed definition of a measure. Operational definitions are fundamental when collecting all types of data and important when a decision is being made about whether something is correct or incorrect. When collecting data, it is essential that everyone in the system has the same understanding and collects data in the same way. Operational definitions should therefore be made before the collection of data begins. Operational definitions are written any time data is being collected because data that is not defined will usually be inconsistent or wrong.

”An operational definition puts communicable meaning into concept.” W. Edward Deming


Good operational definitions help guide the team’s thinking on what they need to measure and ensures any person using the agreed-on definition will be measuring the same thing. They add consistency and reliability built in to the data collection process and describes the scope of the measure (what is included and what is not included).

How to Write Operational Definitions• Identify the characteristic of interest to be measured. • Describe the procedure for taking the measurement.• State the decision criteria: Does the problem exist? Is the item correct? A clear definition of acceptable

versus unacceptable is essential. Physical examples or photographs of acceptable and unacceptable, together with written support, are the best definitions.

• Document the operational definition: It is important that the operational definition is documented and standardized. Definitions should be included in training materials and job procedure sheets.

• Test the operational definition before implementation: Input from those that are actually going to complete the tests is particularly important.

Operational definitions should include a precise description of the: - Specific criteria used for the measures (the what) - The methodology to collect the data (the how) - The amount of data to collect (how much) - Responsibility to collect the data (the who)

Operational definitions help ensure that the team does it right the first time when it comes to data collection.

Important questions for data collection:• What do we want to know?• From whom do we want to know it?• What will we do with the data?

Who What How Where When

Data (1)

Data (2)

Data (3)

Data (4)


Step 2. Develop a Measurement PlanSample Measurement Plan Form

Operational Definitions Exercise:In Small groups write your Operational Definition for a “Sweet.”

PerformanceMeasures

OperationalDefinition

Data Sourceand

Location

SampleSize

Who willcollect the

data?

When will the data becollected?

How willthe data becollected?

Other datathat shouldbe collectedat the same

time


Step 3. Collect DataCheck SheetsA check sheet is a structured, prepared form for collecting data. Check Lists are easy to use and are good at identifying common problems. Check Sheets need to be carefully constructed to provide clarity for those who are collecting the data. Here is an example of a check sheet.

Step 4. Analyze and Display DataThere are many tools to use to analyze and display data. You will find these in the Tool Kit. Some will be covered during this course.

DOP: Data Collection ExerciseList the metrics or measures you would like to know about the Department of Prevention Simulation.

In small groups review the forms, collect the data and visually display the metrics (hand written charts are acceptable).

Application Rejects

Measure/Reason Time 1 (count) Time 2 (count) Time 3 (count) Total

No Signature IIII IIII IIII IIII III IIII 27

Missing Documentation IIII IIII IIII IIII IIII I IIII IIII II 37

No ID# IIII IIII II 10


Day 2 – Process MappingA process map is a picture of the process that illustrates functional areas, flow, tasks, decisions, and delays in a process.

LEAN Mantra - Make the Invisible Visible

Process Maps are used to: • Capture current & new process information• Identify flow of transaction• Identify responsibility of different business functions• Clearly show hand-off between functions• Identify VA & NVA activities• Train associates in new process

Four Steps to Create a Process Map:1. Create macro level flow of process2. Determine functional areas3. Detail the steps4. Connect the arrows


Process Mapping Key

Process Mapping Shapes Process Mapping Arrows

Functional areas within a process. Single straight arrow

– used between tasks performed by sameperson or area, but no physical movement has occurred.

Beginning and end points of the process.

Any task/activity where work is performed. Usually written as a noun and a verb. Box arrow – indicates

physical movement of information / product from one person / function to another.

Places where information is checked against established criteria (standards) & decision made on what to do next.

Any time information is waiting before the next process or deci-sion (i.e. in-baskets, out-baskets, waiting to be batched).

Jagged arrow – indicates electronic movement of information from one person / function to another.When information /

product is placed in inventory (i.e. a file cabinet, directory).

Function

Beginning and

End Points

Task

Inspect &Decision

Delay

Store


Value-Adding Activities (VA)Transform materials and information into products and services the customer accepts. To be considered Value Add the step must pass all three of these statements:

• Done right the first time• Transformational – changes form• Customer is willing to pay for!

Non-Value-Adding Activities (NVA)Consume resources, but does not directly contribute to product or service (customer does not care about or is not willing to pay for).

Non-Value-adding, but Necessary (NVAN)Customer does not care, but we are required to perform the step by current statute or law.

DOP: Process Mapping Activity

In your DOP groups map the current state.

Current state number of Steps: _____________________________________________________________

Current state number of Decisions: __________________________________________________________

Current state number of Functions: __________________________________________________________

Current state number of Handoffs: ___________________________________________________________

Current State number of Delays: _____________________________________________________________


Day 2 – Identifying Waste: Tim U. Wood

TI

MUWOOD

Transportation: Involves unnecessary movement of materials from one operation to another.

Inventory/ Information: Consists of excess materials. Costs are incurred for environmental control, recordkeeping, storage, and retrieval. Run the risk of gathering dust, deteriorating, becoming obsolete, or getting damaged.

Motion: The inefficient and unnecessary movement of workers and machines. Workers should not have to walk excessively, lift heavy loads, bend abnormally, reach, or repeat motions.

Underutilization: Underutilizing employee talent, office space, technology, or any available resources.

Waiting: Periods of inactivity in a downstream process occur because an upstream activity does not take place or deliver on time.

Overproduction: The visible storage of material, producing more than demanded, or producing it before it is needed. Producing to anticipated demand, making earlier, or making faster than is required by the next process.

Defect: This waste involves products or services that do not meet the customer expectations or requirements, resulting in returns, rework, or repair.

Overprocessing: Due to additional steps or unnecessary activities in a process, such as rework, reprocessing, or rehandling.


DOP: Identifying Waste ActivityIdentify TIM U WOOD in the DOP process

• Use the designated stickers/post-it notes• Identify steps in your current state that represent (TIM U WOOD)

Identify VA in the DOP process• Use the designated stickers • Identify steps in your current state that are value added (must meet the three requirements)

- Done right the first time - Transformational - Customer is willing to pay for

Calculate the current state:

Current state number of waste points: ________________________________________________________

Current state number of Value Add Steps: _____________________________________________________


Day 2 – Interpreting our Process MapRoot cause analysis is a method that separates the symptoms from the true cause of the issue or problem.

• Several Lean Six Sigma Root Cause Analysis Tools: - 5 Whys - Fishbone Diagram - Pareto Chart - FMEA

5 Whys:One of the most powerful tools for problem solving does not require number-crunching, graphing or analysis. We refer to that old standby question: “Why?” By asking “Why,” we can peel back the layers to discover the root cause of a problem. The answer to the first why becomes the second question. Why did this happen? The answer to that becomes the next question and so on. Keep going deeper to find why the problem is occurring. After five whys you will likely have arrived at the root cause.


Day 3 – 5S







The 5S Improvement Method 5S is a Lean tool that can be used anytime, anyplace. It’s the foundation for continuous improvement, zero defects, cost reduction, and a safe work area. In order to produce high quality, you have to maintain standards and eliminate the things that interfere. The 5S method enables increased quality, waste identification, standard process, visual con-trol, and promotes employee satisfaction.

The intent of 5S is to have only what you need available in the workplace, a designated place for everything, a stan-dard way of doing things, and the discipline to maintain it. Created in Japan, the components of 5S are seiri, seiton, seiso, seiketsu, and shitsuke. Translated into English:

• Sort: Remove all items from the workplace that are not needed for current production.

• Set in Order (or Straighten): Arrange needed items so they are easy to find and put away. Put commonly used items closer to the employee’s workspace.

• Shine: Make sure everything is clean, functioning, and ready to go.

• Standardize: This is the method you use to maintain the first three S’s.

• Sustain: Make a habit of properly maintaining correct procedures.

———————————————————————————————————————————————————————————————————————————————————

Step 1 – Sort • Survey the work area and red tag things that are broken or unused.• Remove all trash.• Move out the unnecessary items to a red tag (holding) area.• When in doubt, move it out.

———————————————————————————————————————————————————————————————————————————————————

Step 2 – Set in order for ease of use

• Define item placement by frequency of use. Ask: What do I need to do my work? How many do I need? Where should I put it?

• Label as appropriate.• Note minimum and maximum quantity (if appropriate).• A place for everything and everything in its place.

———————————————————————————————————————————————————————————————————————————————————

Step 3 – Shine • Identify cleaning activities and routine maintenance required.• Develop standard operations and work standards.• Implement a daily 5S checklist.• A clean workplace enhances quality, safety, and pride.

———————————————————————————————————————————————————————————————————————————————————

Step 4 – Standardize • Conduct frequent 5S audits to uncover 5S abnormalities.• Determine root cause(s) of any 5S abnormalities.• Implement countermeasures for abnormality prevention.• Do it daily.

———————————————————————————————————————————————————————————————————————————————————

Step 5 – Sustain • As a team, develop daily (or weekly) 5S checklist.• Make sure a score sheet and performance board are visible to all.

———————————————————————————————————————————————————————————————————————————————————


DOP: 5S ActivityIn your DOP groups go and 5S your work area - the winning team will have used and demonstrated the most 5S tools.

Day 3 – Lean ToolsPush vs. PullIn a push system items are pushed upon our customers. In lean we want to create a pull system that allows our customers to pull what they want when they want it. A pull system puts the customer in charge and leads to increased customer satisfaction.

Pull system: The customer withdraws the items it needs and the supplying process produces to replenish what was withdrawn; used to avoid push.

First Time Quality First Time Quality means creating a culture and process in which a defect or error is never passed on in the process. Defects or errors are Fixed immediately and root causes for the error are identified so they can mistake proofed and not happen in the future. In order to accomplish First Time Quality means building a system with appropriate information, poke-yoke (mistake-proofing) processes for common problems, and establishing clear decision rules.

Quality at the SourcesQuality at the Source is a Lean foundation that tries to create or maintain processes that catch defects as close to the source as possible. This is based on the concept that the further you get from the source the more expensive it is to correct the mistake and the more burden the mistake will burden the customer. There are several techniques to help maintain quality at the source:

• Standard Work -Procedures (both work process & requirements)• Poka-Yoke: Mistake Proofing (automatic error detection)• Visual controls (for normal verses abnormal comparisons)• Process Checks (checklists)

Cost of Poor Quality (COPQ)Cost of Poor Quality (COPQ) represents the financial opportunity of your improvement effort (Voice of the Business). In order to have a successful project you need to estimate COPQ for your process. COPQ helps us understand the financial impact of problems created by defects. COPQ is a symptom, not specifically a defect itself. Projects that fix defects are then reducing, improving, and eliminating symptoms. The four foundations for COPQ are: External, Internal, Prevention, and Detection.


Standard Work Exercise: Use the Area below and draw a picture of a pig using the requirements provided. You must complete the drawing in 40 seconds.


Standard WorkStandard work is a lean concept that maintains that each activity should be performed the same way every time. Standard work is the term used to systematize how a part is processes, and includes man-machine interactions and studies of human motion. Standard work operations are most efficiently and safely completed with all tasks organized in the best known sequence, using the most effective combination of these resources:

• People• Materials• Methods• Machines• Mother nature• Measurements

Within standard work, each operation is broken down into small pieces and analyzed. Each worker is then given all the tools to make the part quickly, with the highest quality. The process is documented in writing and with photographs. Standardization must occur across the entire agency or state to work. Standard Work is so important; it is described in the first rule of the Toyota Production System.

Standard Work defines the resources, steps, and time required to provide a service to the customer. Furthermore, Standard Work provides the baseline for continuous improvement and stability through reduced variation.

Standard Work is composed of:• The steps of required to provide the product or service to customer• The sequence or order in which elements need to be executed to produce the product.• The expected time to complete the steps based on the lowest repeatable time observed to complete

elements in the defined sequence. • The quality criteria

The first step in Standard Work development is to understand the customer requirements. To provide goods and services “in the right quantity, at the right time”, customer demand must be understood.


Day 3 – Poka-YokePoka-Yoke is mistake proofing. Poka-yoke is a Japanese term that means “to avoid inadvertent errors”. A poka-yoke devise is one that prevents defects from occurring in a process. Often referred to as “error-proofing”, poka-yoke is actually the first step in error-proofing a system. Examples of poka-yoke include:

• Childproof caps on prescription medicine bottles• Different size fuel dispensing nozzles to prevent cross-fueling• Design of parts so that they cannot be exchanged by mistake• Color-coded parts

Error-proofing also uses shutdowns, controls, or warnings to detect errors and stop them before they become defects.

Others you can think of?

Government Forms and Poka-YokeFirst Step to Mistake-Proofing Forms is to collect data answering these types of questions:

• What percentage of times is the form completed with no errors?• How many errors are made?• How much time is spent reviewing the form and correcting errors• Create checklist to breakdown errors by type or by question• Create Pareto Diagram and start with big leg• Look for Root Causes • Test / Implement solutions• Review how many, how often, what kind and how long.

Concentration DiagramA Concentration Diagram is one tool that can aid in data collection of forms. A Concentration diagram is a graphical tool that is useful in analyzing the causes or area of defects. It is a drawing or copy of the form, onto which locations and frequencies of defects are shown.

Concentration Diagrams puts data in a visual form so the team can see what is being tracked. It visually helps employees prioritize issues and develop ideas to eliminate root causes.

After capturing the data review missed questions with employees and with customers. Review statute, code, rules to see if the question is necessary. Use software to test the age level and readability of forms. Develop or Benchmark a good checklist for creating useable forms and ask every question before form is approved.

Forms Potential Improvements• Remove unnecessary questions• Explain questions that may seem unnecessary• Eliminate unnecessary typing with pull down menus if online, or boxes to check if a paper form


• With pull down menu, ensure most common answers are first• Highlight required fields• Online forms can’t be sent if information is left blank• Create an FAQ or checklist to accompany the form that explains to customers exactly what is needed.

(Make most frequently missed questions the first thing on the checklist)• The most important questions are highlighted or in a prominent location

DOP: Poka-YokeExercise: Review the Form

1. Prioritize most common errors from concentration diagram2. Consider the root causes of the errors3. Develop Poka-Yoke ideas to prevent future errors4. On a flip chart page, draft a new form that incorporates those ideas 5. Point system will be used to select winning team


Name: ____________________ Agency: ________________________________Department: ____________________ Agency Reference #: ______________________OAKS ID: ____________________________________________________________Program: ____________________________________________________________Send to: ____________________________________________________________Bill to: ____________________________________________________________Approval Date Requested ____________________________________________________________Phone Number: ____________________________________________________________Email: ____________________ Fax Number: _____________________________

Additional Information

Name: ____________________ SSN#: __________________________________Department: ____________________ Phone Number: __________________________Address: ____________________________________________________________Date of Request: ____________________________________________________________Number of Times Reviewed: ____________________________________________________________Improvement Initiative: ____________________________________________________________Form Type: ____________________________________________________________

Approver Signature: ____________________________________________________________Title: ____________________________________________________________Date: ____________________________________________________________

Supervisor Signature: ____________________________________________________________Title: ____________________________________________________________Date: ____________________________________________________________

Director Signature: ____________________________________________________________Title: ____________________________________________________________Date: ____________________________________________________________

Provide attachement forAdditional justification:

Prevention is Our Game

Dep

artm

ent of Prevention

SLOW Form for Renewal Process


Day 3 – BrainstormingBrainstorming is a technique, generally used in a group setting to quickly generate a large number of ideas about a specific problem or topic. The goal of brainstorming is to generate ideas and make sure everyone in your group understands the importance of postponing judgments until after the brainstorming session is completed. Silent brainstorming and the impact control matrix are used in a typical Kaizen Event.

Silent Brainstorming• Have participants write ideas individually on Post-it notes or small slips of paper.• Collect the papers and post them for all to see.• Review and all ideas (eliminate duplications)• Rank ideas (P.I.C.K. Chart)

Impact Control MatrixBy deciding where an idea falls on the Impact Control Matrix four regions are used:

I. High Impact/Low ControlII. High Impact/High ControlIII. Low Impact/Low ControlIV. Low Impact/High Control

High ImpactLow Control

Low ImpactLow Control

Low ImpactHigh Control

High ImpactHigh Control

I

III IV

II

Control

Impa

ct


DOP: Brainstorming

In your DOP Groups brainstorm ideas and evaluate the ideas using the Impact Control Matrix.

Day 4 – Clean Sheet RedesignClean Sheet Redesign is a process of using the analysis of the current state, the brainstormed ideas, and the principles of effective work structure to create an ideal future state. The goal of clean sheet redesign is transformation of the process

Transformational Goal:• Create a new process that’s significantly better than the old one• Reduce process steps, cost, time by 50%• Delight the customers of the process• Put aside the “as is” model

Before Completing Clean Sheet Redesign your team should have: • Completed the Current State• Gained Consensus on Current State• ID Waste (TIM U. WOOD) on Current State• Document Value Add on Current State Map• Brainstormed New Ideas • Evaluated and Prioritized the Brainstorm Ideas• Reviewed Work Structure Principles

Work Structure Principles• Design process around value-adding activities• Work performed where it makes the most sense• Provide single point of contact for customers and suppliers• If the inputs coming into the process naturally cluster, create a separate process for each cluster• Ensure a continuous flow of the “main sequence”• Reduce waiting, moving, and rework time• Reduce or eliminate batching• Reduce checks and reviews• Push decision-making down to the lowest reasonable level• Build quality in to reduce inspection and rework


DOP: Clean Sheet Redesign

• Get in your DOP groups and create two Clean Sheet Redesigns• Report out the 2 clean sheet designs with the whole group • List Common and Unique

Day 4 – Future StateTransforming the Three Clean Sheet Redesigns to the Future State:

• One team composed of a subset of members from each of the three clean sheet teams create the Future State.

• This team is chosen carefully (the team lead and sponsor may be consulted).• The team can refer to the three clean sheet redesigns with the aim to take the best ideas from the

three sheets to create an ideal future state.

While the future state team is completing the future state, the rest of the team is assigned to various work groups: ex. Poke Yoke forms, Website redesign, Communication, Brainstorming ideas.

The challenge to the group is to make transformational changes and reach consensus.

Common Unique


Day 4 – Implementation Plans: Action RegistersAction Registers are often used during Kaizen Events and Lean Six Sigma projects to ensure the event gains are sustained, accountability for actionable items, and momentum is continued after the event is complete and the facilitators are no longer in the room. Action registers are also used in strategic planning, green belt projects and meetings.

Action registers record anticipated plans that will begin in the near term future and will serve to remind the team of the actions necessary as a result of the event. Examples of Action Registers are:

• Technology or I.T. • Policy or Procedures • Forms • Dashboard• Human Resources • Communications • Checklists • 5S Team• Facilities • Training • Overall Implementation • $ saved/redirected

Action Registries are very simple and easy to use and facilitate. They list:• WHAT action or objective needs to be accomplished• WHO will take the lead in seeing that a team accomplishes the objective• WHEN – a specific date for beginning the objective and completing the objective

Please note that in most areas of Continuous Improvement our mantra tells us “It’s not the people, it’s the process.” This is one of the few places in which you should identify the person by name that is responsible for the item.

Common Who When


Day 4 – Visual ManagementVisual ControlsVisual controls are a key lean manufacturing principal, but are being used more and more in government and office setting. Visual Controls are simple signals that provide an immediate understanding of a situation or condition. The goal of visual controls is to allow all team members to easily see normal from abnormal conditions and ultimately react quickly to the abnormal conditions. The intent of a visual controls is that the whole workplace is set-up with signs, labels, color-coded markings, etc. such that anyone unfamiliar with the process can, in a matter of minutes, know what is going on, understand the process, and know what is being done correctly and what is out of place. Visual displays and controls help keep things running as efficiently as they were designed to run. Sharing information through visual tools helps keep production running smoothly and safely. Visual controls describe workplace safety, production throughput, material flow, quality metrics, or other information. Visual controls supply the feedback to an area. A visual factory allows the people operating the process to stay on target.

Examples:• Schedule or status boards• Color Coded files / transactions• Appropriate signage to direct people to areas

Visual Controls can be used to track key agency metrics and task lists. To be effective visual controls should not be ‘hidden away’. Key metrics should be defined and tracked with targets or goals and corrective action should be taken if any metric or target is off track. Visual Controls do not need to be high tech to be effective.

DashboardsDashboards are concise visual indicator that displays: clear, measureable and valid metrics for each objective, targets for each metric, and the status of each metric. Dashboards are used to tell stories, evaluate alternatives, understand trends or find-out if everything is normal.

Dashboards show a high-level overview of the agency to give a status and make informed decisions. They provide analysis, insight and alert issues or positives in a timely manner and are an excellent communication tool.

Dashboards should include Key Performance Indicators and metrics, operational definitions and key visuals and graphs. Measurements should not be too complicated on the dashboard only 5-7 key visuals and graphs. Dashboards should include only vital issues to maintain focus, current measurements and should be designed to avoid unnecessary work or burden to employees who are maintaining dashboards. Dashboards work best with dynamic data – or data that changes in real-time and influences our behaviors. Interpretation of dashboards and a context should be included on the dashboard. When creating a dashboard:

• Choose metrics that matter• Keep it visual• Make it interactive• Keep it current or don’t bother• Make it simple to access and use


Day 5 – Measures of SuccessCycle Time ReductionCycle Time is the amount of time needed to complete a single task or activity for the product or service. If cycle-time variation can be reduced, the process becomes more predictable. Often, cycle time can be reduced by breaking down a single task and analyzing the amount of time that it takes to complete each sub-activity of that task. After this breakdown, it is easier to tell which sub-activities may be contributing to a slower cycle time. Ultimately, nonvalue-added activities can be eliminated, and value-added activities can be performed more quickly and efficiently.

Takt TimeTakt is the German word for metronome. Takt Time enables your organization to balance the pace of its production outputs with the rate of customer demand. The term Takt time is used to indicate the desired rhythm of the process.

Takt Time = available resources (hours) / demand (units)

Takt Time = Time available Number of units processed

Cycle TimeCycle time is the average time for a particular step to complete one item. If cycle time is greater than takt time, the required number of items will not be output. If several people can be performing the step, we can compute the number of people required as follows:

Number of People = Cycle Time Takt Time


Lean Six Sigma Metrics


Day 5 – Team Management

Agenda Template

Date: ___________________________________ Time: __________________________________________

Meeting/Team Name: ____________________________________________________________________

Meeting Purpose: ________________________________________________________________________

Attendees: ______________________________________________________________________________

Time TopicPerson

ResponsibleExpectedOutcome

Check-In

Review action items

Evaluate meeting


Meeting Minutes Template

Date: ___________________________________ Time: __________________________________________

Meeting/Team Name: ____________________________________________________________________

Attendees: ______________________________________________________________________________ Topic Discussion Decision / Action / assignments


Action Register Template

Team Name: ____________________________________________________________________________

Meeting Date

Task WhoDate to be Completed

Action taken or Status


Day 5 – Lean Routine







Lean Routines FAQs How long does it take?Lean Routines are flexible. When properly scoped, they can be completed in one full day – or in five 90-minute meetings over the course of several weeks, or in two half-day meetings, and so on. The breaks in between meetings can be a big positive because they allow for discussion, idea generation, reinforcement, and consensus-building. All of this keeps the momentum alive.

Who is involved?The process owner serves the key role at the start, working with the Lean facilitator to clarify the scope and develop a charter. This planning step is vital. The team itself should consist of people who do the work of the process or sub-process that’s being improved.

How do I get started with this?First, identify a small part of a process that is a true “pain point.” It needs to be in your control or your team’s control. Narrow in on specific steps of the process – 8-15 steps is an ideal range, involving 2-4 different functions. The scope should be narrow enough to allow for quick improvement, yet big enough that improvement will make a significant difference.

What are some of the keys to success?• Narrow the focus of what you’re trying to improve. The Lean Routine should not be

used with large, complex processes that cross many sections or agencies. (With those, you need a full Kaizen event.)

• Work with a skilled Lean facilitator from the very start. They can help you scope the project, plan the meetings, and ensure that the meetings run smoothly and stay on track.

• Plan your way to a successful outcome. A well-scoped project won’t guarantee success, because there are other factors involved as the Lean Routine unfolds. But a poorly scoped project guarantees frustration, confusion, and a lack of results.

• Make sure that the people who do the work are the people who make up the team. They have the know-how that’s needed to analyze the current approach and identify meaningful improvements.

• Do the hard work of sustaining the improvements. While the Lean Routine process moves quickly and has a clear end point, implementation of the changes often requires ongoing work. The process owner has lead responsibility for maintaining the momentum and ensuring that everyone sticks with their implementation timetable.

The Lean RoutineWhen it comes to improvement, week-long Kaizen events are the approach of choice for achieving big-hitting results. But there’s a quick-hitting approach as well – an approach that can be faster, more flexible, and more grassroots in nature.

We call it the Lean Routine. It uses many of the same tools that are put to work in a full Kaizen event. But it uses them on smaller processes and sub-processes. That’s the key distinction: With Lean Routine, you narrow the scope of the improvement effort, focusing on clearly defined “pain points” that call for permanent improvement.

PREP MEETINGFacilitator and process owner conduct pre-scope, identify team, and finalize logistics. Outputs can include first draft of charter and first draft of SIPOC.

STEP 1 – SCOPE ITScope the issue to ensure it’s the right size. Outputs can include a charter, SIPOC, clarity on what is excluded from the project, a set of metrics, etc.

STEP 2 – MAKE IT VISIBLEMake that part of the process visible. Gather data (lead time, cycle times, error rates, costs, etc.) for steps being studied. Outputs can include a process map, data collection plan, etc.

STEP 3 – ANALYZEAnalyze data, identify waste and non-value added activities. Tools includes TIMUWOOD, NVA-NVAN, root-cause analysis, brainstorming, etc.

STEP 4 – LEAN IT UPTeam creates a clean-sheet redesign, mistake-proofs key forms, standardizes the work, etc.

STEP 5 – IMPLEMENT AND SUSTAINImplement the improvements, and sustain the changes over time. Tools include action registers and control plans. Also key are project management and training and education.

The Lean Routine in Action

ROUTINELEAN


Day 5 – 7 Steps







7 Steps for Implementing Lean in State Government in Ohio 71. Learn and test the effectiveness of

“Lean Manufacturing” to improve state government systems.

Do not invest in fadsA team of state employees works with business experts to learn and experiment with Lean Six Sigma tools and principles to determine their effectiveness in improving government services.

———————————————————————————————————————————————————————————————————————————————————

2. Focus preliminary Lean efforts on major Kaizen events to ensure significant results.

Selling results is easier than selling theorySelect high-opportunity projects and champions who will do what it takes to succeed, and accumulate a variety of significant, transformative results throughout state government.

———————————————————————————————————————————————————————————————————————————————————

3. Communicate and celebrate those first tangible results to increase interest and demand for Lean.

If you improve it, they will comeUse website, articles, and meetings to share results and recognize and reward excellence.

———————————————————————————————————————————————————————————————————————————————————

4. Develop a network of additional practitioners to meet the increased demand for Lean efforts.

Matching supply and demandAs more people and agencies wish to use Lean, increase capacity by developing a variety of opportunities for training, mentoring, and gaining experience – both within the LeanOhio Office and interested agencies.

———————————————————————————————————————————————————————————————————————————————————

5. Ensure that major improvement efforts are prioritized, aligned, and managed with appropriate visual metrics.

From random projects to aligned system improvementsWiden the focus to include strategic planning, understanding and improving systems through value stream mapping, creating efficient processes the first time, and building visual management systems to better ensure complete success.

———————————————————————————————————————————————————————————————————————————————————

6. Support opportunities for greater use of Lean tools by everyone.

Push Lean down and outPromote bottom-up improvement efforts so everyone is improving all the time (and not just through Kaizen events), and ensure that new Lean champions in all agencies have support from experienced practitioners.

———————————————————————————————————————————————————————————————————————————————————

7. Lean thinking becomes the normal routine rather than something done just during an event.

Lean embedded in state government’s DNAHow else would you do any state business except by using the best practices for improvement and efficiency? Lean is naturally a part of all meetings, projects, day-to-day work activities, and new employee orientation.


Taking Lean back to your workplace: Next Steps

Project Selection

PAGE1

1 In my work area, we spend too much time looking for the items we need to do our jobs: files, materials, equipment, and so on. If the physical work area was better organized, we’d be more productive and less frustrated.

1 2 3 4 5

2 When we get inputs from customers or from other sources (such as incoming forms or web-entered application information), we often find that it’s incomplete or inaccurate. We have to circle back to people to get the information we need. If we received complete information from them the first time around, we’d be a lot more efficient.

1 2 3 4 5

3 We find ourselves wondering what our customers are thinking. Are we meeting their needs and expectations? Are they happy with our work? Are there things we can do to increase their satisfaction? If we had answers to these questions, we could serve our customers better.

1 2 3 4 5

4 My co-workers and I don’t really know whether our day-to-day work is having a positive impact. We can’t tell for sure whether it’s meeting customer expectations, helping the agency achieve larger goals, or contributing in some other way. If we had a set of meaningful measures that were easy to see and understand, we’d have a better sense of how our work makes a difference.

1 2 3 4 5

5 I work with good people, but it sometimes seems like one person doesn’t know what the other person is doing, even though we all work in the same work process. If we had a better sense of what each person does and how we all fit together as one system, we’d be more productive and probably even happier.

1 2 3 4 5

6 We’ve been getting complaints from our customers. We respond the best we can, but it’s on a case-by-case basis. If we dug deeper to understand what’s causing the complaints – and if we went on to fix those underlying causes – we would end the complaints and set the stage for some compliments.

1 2 3 4 5

7 The work process that I work in moves too slowly. If we took the time to step back and fully analyze the process, we’d come up with major improvements to the workflow.

1 2 3 4 5

8 When my co-workers and I talk about our work and our overall work process, we talk mostly about negative things: delays, rework, overwork, red tape, confusion, and so on. If we as a group had the opportunity and guidance to dig deep and rework the process, we’d develop some big improvements.

1 2 3 4 5

Complete this page first.

Instructions: Read each item, then check a box on the 1-to-5 scale to show how often this occurs in your workplace: 1 = never 2 = rarely 3 = sometimes 4 = often 5 = very often

With this quick-take template, you can find the best opportunities for putting your new Lean know-how to work.


Project Selection

PAGE2

1 In my work area, we spend too much time looking for the items we need to do our jobs: files, materials, equipment, and so on.

5S+5S+ stands for sort, straighten, shine, standardize, sustain, and safety. The 5S+ process, which can be used individually (for your own work area) or by a group, is used to create and maintain well-organized work areas.

2 When we get inputs from customers or from other sources (such as incoming forms or web-entered application information), we often find that it’s incomplete or inaccurate.

Poka-YokeFrom the Japanese term for mistake-proofing, poka-yoke is all about putting easy measures in place to prevent delays and other inefficiencies. In government, one of the biggest improvement opportunities relates to forms, because forms that arrive without all the needed info require extra processing time.

3 We find ourselves wondering what our customers are thinking. Are we meeting their needs and expectations? Are they happy with our work?

Voice of the CustomerWhen it comes to improvement, understanding the customer’s spoken and unspoken requirements is essential. You can develop different approaches, including interviews, surveys, polls, focus groups, and complaint logs.

4 My co-workers and I don’t really know whether our work is having a positive impact. We can’t tell for sure whether it’s meeting customer expectations, helping the agency achieve larger goals, or contributing in some other way.

Meaningful Metrics & Visual ManagementIf you keep an eye on the scoreboard when watching sporting events, you know what this is about. By having a select few measures that show how well the process is doing, and by developing a dashboard or some other visual to make those measures readily visible and easy to comprehend, everyone can feel a greater sense of ownership.

5 I work with good people, but it sometimes seems like one person doesn’t know what the other person is doing, even though we all work in the same work process.

Process MappingA well-constructed process map makes the entire workflow visible. It shows inputs, work steps, decisions, work flows, outputs, and more. This allows people who work in one part of the process to see how their works fits into the larger system – and it gives people the visual they need to pinpoint occurrences of inefficiency.

6 We’ve been getting complaints from our customers. We respond the best we can, but it’s on a case-by-case basis.

Process ImprovementProcess improvement can be scaled to fit your situation and intended outcomes. • A full Kaizen Event typically involves five straight days of work. The Kaizen team consists of people who work in all the various stages of the process, and there’s usually a customer or two. With guidance from a Kaizen facilitator, the team maps the process, pinpoints inefficiencies, identifies improvement opportunities, develops a redesign of the process, and builds action plans to ensure implementation.• A Lean Routine uses many of the same tools that are put to work in a full Kaizen event. But it uses them on smaller processes and sub-processes. This narrower scope focuses on clearly defined “pain points” that call for improvement. When properly scoped, they can be completed in one full day – or in five 90-minute meetings over the course of several weeks, or in two half-day meetings, and so on.• You can use process improvement tools on an even smaller scale. Perhaps you want to develop your own process map to see and improve the work steps for which you are solely responsible. Or perhaps you get together with two co-workers to map out and improve the a small process that you are responsible for together.

7 The work process that I work in moves too slowly.

8 When my co-workers and I talk about our work and our overall work process, we talk mostly about negative things: delays, rework, overwork, red tape, confusion, and so on.

Continued... With your quick-take assessment from the previous page, you can get a better idea of which Lean-related tools and methods are most needed in your workplace. This will help you as you move closer to identifying a worthwhile project where you can successfully put your Lean know-how to work.

If you gave a very low rating here Then you should consider

Service · Support · Solutions

Department of Administrative Services

The Ohio Department of Administrative Services is an Equal Opportunity Employer.

transforming the public sector - muskingum valley educational service … manual 4-18-14 _3.pdf ·...

Documents