VEHICLE IMPOUND FACILITY

DENVER SHERIFF DEPARTMENT

Vehicle Investigations & Auction Prep Process RIE

June 23 - 27, 2014

VEHICLE INVESTIGATION & AUCTION PREP PROCESS

Dates June 23-27, 2014

Executive

Sponsor

Captain Coyle

Process

Owners

Sergeant Zarnow

Team Lead Scott Johnson

Facilitators Jerraud Coleman &

Emily Lauck

Team Members: Renee Chavez, Tonya

Chapman, Aaron Feese, Scott Johnson, Phil

Mangeri, Ed Valenzuela

3 Simpler Business System® 11.0 ©1996-2010 Simpler Consulting, L.P. All Rights Reserved

Why Change is Needed

• The auction process results in the release (by sale) of approximately 20% of the vehicles impounded into the facility, but results in roughly 50% of the revenue generated by the VIF.

• The current process is cumbersome and has too many redundancies and defects. There are existing performance metrics, but they need to be evaluated and the current performance is not being validated by data and metrics.

Vehicle Investigations & Auction Prep Process

Metric Baseline

Total Vehicles Impounded per Year: 12,000

Total Vehicles Sold at Auction per Year: 2,500 – 3,000

Avg. # of Vehicles per Sale 110 Vehicles

Avg. # of Days a Vehicles Stays at VIF Before Selling at Auction (Cycle Time):

39 Days Holds Add Indefinable Amount of Time Junkers “Float” (May Not be Sold Right Away)

Avg. # of Pieces of Paper Printed During Process: 12,000 per Year (500 Pieces of Paper per Auction)

Avg. # of Holds per Year: ~ 1,000 at Any Given Time

Customer Window (Mandatory Waiting Time Until Vehicle Eligible for Sale):

240 Hours (30 Days)

Cost per Vehicle Prepped per Auction: $15.18

Amount of Touch Time Employees Spend Investigating/Prepping a Vehicle:

Deputies: 42 hours ASA’s: 11 hours Command: 16 hours Others (Forklift Operator, Cashiers): 5 hours TOTAL: 74 hours per Auction 1,776 hours per Year

INITIAL STATE

INITIAL STATE

Value # %

VA 15 17

BNNVA 16 19

NVA 57 64

TOTAL 88 100

Initial State Process Map

Vehicle Investigations & Auction Prep Process

Metric Baseline Target

Total Vehicles Impounded per Year: 12,000 12,000

Total Vehicles Sold at Auction per Year: 2,500 – 3,000 2,500 – 3,000

Avg. # of Vehicles per Sale 110 Vehicles 110 Vehicles

Avg. # of Days a Vehicles Stays at VIF Before Selling at Auction (Cycle Time): 39 Days 38.3 Days

Avg. # of Pieces of Paper Printed During Process: 12,000 per Year (500 Pieces of Paper per Auction) 6,000 per Year (250 Pieces of Paper per Auction)

Avg. # of Holds per Year: ~ 1,000 at Any Given Time 1,000

Customer Window (Mandatory Waiting Time Until Vehicle Eligible for Sale):

240 Hours (30 Days) 30 Days

Cost per Vehicle Prepped per Auction: $15.18 $13.63

Amount of Touch Time an Employee Spends Investigating/Prepping a Vehicle:

74 hours 66 hours

FUTURE STATE

FUTURE STATE Future State Process Map

•88 Steps in Current State

•70 Steps in Future State

•Key NVA Steps Eliminated:

• OSI History Printing

• Unbatching and Automating of Sale and Add-on List

• Elimination of Extra Quality Control Check

• Emailing not Faxing Final Sale List to CAO, ACS, and DMV

GAP ANALYSIS/ASSUMPTIONS

•14 Wastes Identified

•9 Addressed = 64%

The 8 Wastes Analysis The Voice of The Customer

Fishbone Diagram

GAP ANALYSIS/ASSUMPTIONS

Communication Circle

Barriers to a streamlined and

efficient auction prep process

Ideal State Comic

GAP ANALYSIS/ASSUMPTIONS

1. Seamlessly integrate & update all operating systems so that there’s no

duplication of effort/docs across the process

2. Get a front loader

3. Eliminate Saturday and Sundays at the VIF

4. Generate more revenue for the General Fund – happier public/customers

If we… Then we Expect…

1 Create shared folders on the shared drive for the Add-On Sale List

Real-time tracking and more accuracy

2 Eliminate the first printing of OSI history Less paper waste (at least 12,000 pieces per year)

and time savings (15 minutes per day)

3 Create a production board We expect others to visually know where we are

in the auction prep process

4 Eliminate the #’s on the top of reports More efficiency and less waste in the process

5 Use a larger magnifying glass Less eye strain and fewer defects/mistakes

6 Change the way we check and mark reports To eliminate an extra quality check

7 Change the number and size of binders More space, the elimination of paper, and to save

more time overall

8 Email the final sale list to the City Attorney’s Office and ACS

To eliminate processing time and waste (paper, etc.)

9 Cross-train others to complete the Ward Lucas check on Sunday before the sale

More accurate and updated verification of vehicle ownership

10 Send Purchasing the Auction Documentation via Inter-Office Mail

Eliminate 85 minutes of motion, transportation costs, and wear and tear on the vehicles

BRAINSTORMING

Number Experiment Anticipated Effect Adopt

Y/N 1 Reduce # and size of binders More space, the elimination of paper, and to

save more time overall Y

2 Create a production board

We expect others to visually know where we are in the auction prep process Y

3 Bigger font or adding magnifying glass We expect others to visually know where we

are in the auction prep process Y

4 Create shared folder Real-time tracking and more accuracy Y

5 Reduce printing of OSI histories Less paper waste (at least 12,000 pieces per

year) and time savings (15 minutes per day) Y

6 Email the final sale list to the CAO and ACS To eliminate processing time and waste (paper,

etc.) Y

7 Stop writing numbers on the top of reports More efficiency and less waste in the process Y

8 Change the way we check and mark reports To eliminate an extra quality check Y

9 Cross-train to complete Ward Lucas on the Sunday before the sale

More accurate and updated verification of vehicle ownership Y

10

Send Purchasing the Auction documentation via Inter-Office Mail

Eliminate 85 minutes of motion, transportation costs, and vehicle wear and tear

Y

EXPERIMENTS

Action Items Owner Due Date Status

1 Eliminate the First Print of OSI

History Team June 27th Complete

2 Eliminate the Numbers on the

Top of Reports Team June 27th Complete

3 Change the Way We Check,

Mark, Report Team June 27th Complete

4

Cross-Train Others to

Complete Ward Lucas on

Sunday Before the Sale

Team June 27th Complete

5 Email Final Sale List to CAO,

ACS, and DMV

Ed, Renee,

Tonya, and

Phil

June 27th Complete

6 Use a Bigger Font or Better

Magnifying Glass Renee June 27 Complete

7 Create Shared Folders for Add-

On and Sale Lists

Aaron &

SGT.

Zarnow

June 27 Complete

ACTION PLAN

Action Items Owner Due Date Status

8 Create a Production Board Aaron and

Scott July 27th In Progress

9 Reduce Number and Size of

Binders

Renee, Phil,

Ed, Tonya July 27th In Progress

10

Send Purchasing the Auction

documentation via Inter-Office

Mail

Ed, Renee,

Phil, Tonya July 27th Complete

ACTION PLAN

80% of Action Plan

is Complete!

PRODUCTION BOARD

15

Real-Time Status in the Auction Prep Process

Automated Real-Time Add-On List Created in the Shared Drive

Standard Work

EFFICIENCY SAVINGS

18

Metric Baseline Target Savings

Avg. # of Pieces of Paper Printed During Process:

12,000 per Year (500 Pieces of Paper per Auction)

6,000 per Year (250 Pieces of Paper per Auction)

1.2 Cases of Paper at $52.26/Case = $62.71

Amount of Touch Time Employees Spend Investigating/Prepping a Vehicle:

74 hours per Auction 1,776 hours per Year

66 hours per Auction 1,584 hours per year

8 hours per Auction = $170.80 192 hours per year = $4,099.92

Gasoline Costs to Deliver Bills of Sale to Purchasing (Fuel Efficiency = 8 Miles/Gallon)

8.8 miles roundtrip x $2.93/Gallon = $3.22/Auction

0 miles roundtrip $77.28 per Year

Total Soft Dollar Savings: $4,099.92 Hard Dollar Savings: $139.99

What did you learn?

• There’s always room for improvement

• When everybody comes together we can accomplish a lot

• Our current state is 188 inches long and our future state is 168 inches long (20 inch difference)…

• The event wasn’t as stressful as we thought it would be

How do you feel about the whole

event?

• It was very productive and enlightening

• It was an eye opener

• The event was enjoyable

• We got to hang out with the Sergeant

What will you do differently going

forward?

• Continuously improve the process

• Look for more ways to automate the system of computers

• Have more of an open mind

INSIGHTS

FACILITATOR INSIGHTS

20

Facilitator Insights

•This team is one of the bright spots in the City & County of

Denver

•Was very impressed by the teams’ camaraderie, collaboration

and use of the lean tools

• The team has leaned their process and made some very

valuable steps

•This team has built a great foundation to continuously improve

upon

•The voice of the customer resonates with this team as their

central driver

• This team is full of leaders governed by the right thing to do

rather than fear

SPECIAL THANKS

Consultants Michael Joyce

Colleagues Danny Christ, Michael Schaefer,

Penny Price, Pete Padro

Executive Sponsor Captain Coyle

QUESTIONS?

APPENDIX

Investigations Auction Prep Process RIE

June 23 - 27, 2014

Cost for Employees to Investigate and Prepare a Vehicle for Auction

Employee Classification Average Hourly Salary Touch Time per Auction Salary Cost per Auction (Ave. Hourly Salary x Touch Time)

Deputy Sheriff

$31.74 Current: 42 Future: 41

Current: $1333.08 Future: $1301.34

Clerk (ASA IV)

$19.87 Current: 11 Future: 4

Current: $218.57 Future: $79.48

Forklift Operator (Heavy Equipment Operator)

$ 23.75 Current: 1 Future: 1

Current: $23.75 Future: $23.75

Cashier (ASA IV) $21.13

Current: 4 Future: 4

Current: $95.00 Future: $95.00

TOTAL: Current: 74 Future: 66

Current: $1,670.40 Future: $1,499.57

METRICS

Prep Cost Savings per Vehicle Prep Cost Savings per Auction Prep Cost Savings per Year

$1.55 1.55 x 110 = $170.83 170.83 x 24 = $4,099.92

Current State Cost ($15.18) – Future State Cost ($13.63) = $1.55

74 Hours – 66 Hours = 8 Hours 8 Hours x 24 Auctions = 192 Hours/Year

2013 Auction Revenue:

$3,118,750.00

2013 Vehicles Sold at Auction:

2,634

Average Sale Cost of Vehicle

at Auction: $1,184.04

Sample Breakdown of Vehicles Pulled From Sale After Marking

Sale Vehicles Marked Vehicles Pulled After Marking

05/21/2014 121 21 •14 Releases •1 Fleet Conversion •1 New Owner ID’ed by Release Section •2 for Year •2 for Command •1 Ward Lucas

06/04/2014 145 17 •10 Releases •1 Certified Letter Not Sent •2 for Year •3 for Command •1 MOS Review

06/18/2014 170 19 •10 Releases •2 New Addresses ID’ed by Release Section •1 Fleet Conversion •5 for Year •1 Ward Lucas •2 Active Holds

METRICS