Denver Peak Academy - City and County of Denver … FOR BLACK BELT TRAINING • Peak Framework o...

Denver Peak AcademyBlack Belt Training

Day 1 – Introduction to Innovation

Peak AcademyCourse Agenda & Group Norms

OBJECTIVES FOR BLACK BELT TRAINING

• Peak Framework

o Think Differently: Start with Why— Say It Importance of the Innovation Form to planning and delivering Innovations

o Tools to ID Waste— See Ito Tools to Eliminate Waste— Solve Ito Simulation

• Present your ideas for Innovationo What you might work on after completing Black Belt training

GROUP NORMS

• Take a couple post-it notes and write down one positive and one negative guideline for interaction during this week

• Think about:o How you want the group to act;o What guidelines you want the group to follow; and o What you want, or not want, to see during this week?

• Put them on the “Norms” poster – one on the smiley face part, the other on the frowny face part

GOALS

• Take a post-it note and write down your goal(s) for this week

• Think about:o What you’d like to accomplish this week;o What you expect will happen;o What do you want by the end of this week that you don’t currently

have; ando What you’d like to take away from this week

• Put it on the “What I Want” paper

TO COMPLETE YOUR CERTIFICATION

Attend Green Belt Training

Green Belt

ANDSubmit at least the 1st 3

sections (why, current state, future state) of an

Innovation Form with proof of attempted

implementation to Peak Academy

OR

Participate in an improvement event

(such as an RIE or Workshop)

Attend Black Belt Training

Black Belt

ANDSubmit a completed

Innovation Form (all boxes) with proof of attempted implementation to Peak

Academy

OR

Participate in an improvement event (such as

an RIE or Workshop)

PEAK ACADEMY: UPDATING YOUR WORK DAY GOALS• Initial Steps (within 1 month after Black Belt training)

o We will email you the language for your Work Day Goalso You and your supervisor will:

Update your goals to include the requirements for submitting and implementing innovation ideas

% weight of Innovation Outcome determined by you and your supervisor (or manager). Peak Academy will not dictate a %-weight requirement

• Jan – July Cohortso 2 ideas implemented (completed Innovation Forms) = “Meets Expectations”o 3 ideas implemented (completed Innovation Forms) = “Exceeds Expectations”o 4 ideas implemented (completed Innovation Forms) = “Outstanding”

• Aug – Oct Cohortso 1 idea implemented (completed Innovation Forms) = “Meets Expectations”o 2 ideas implemented (completed Innovation Forms) = “Exceeds Expectations”o 3 ideas implemented (completed Innovation Forms) = “Outstanding”

• Nov – Dec Cohortso No expectation for this year. You will update your Work Day Goals for the

following year using the Jan-July Cohort expectations above

7

WARNING!Innovation can lead to efficiency and effectiveness in areas no one

thought possible.

Black Belt training can result in spontaneous process improvement.

Black Belt training can lead to:

Addictive innovative behavior

Process improvement fixation

Obsessive desire for M.E.A.T.

A visual time management fetish

Visualizing opportunities around every corner

An overwhelming sense of accomplishment

10 MINUTE BREAK

9

Peak AcademyPeak Performance Framework

Our Approach to Innovation in the City

DENVER PEAK PERFORMANCE: WHY?

Why

We believe in improving outcomes by focusing City resources on:

Youth

Jobs

Safety Net

Customer Experience

Sustainability – Financial & Environmental

Mayor’s Vision Statement We will deliver a world-class city where everyone matters.

Citywide Strategic Framework

Sustainability

CelebratingStrategic Planning

StrategicPlan

Performance Metrics

Bene

fits

Trac

king

Financial

Hard $ Savings(budget impact)

Soft $ Savings

Youth Jobs SafetyNet

• Dashboard Development• ID Value Streams• ID & Prioritize Innovation

Opportunities• Create Innovation Plan

Customer Experience

Innovation

• JDIs – Just Do Its

• Workshops

• RIEs – Rapid Improvement Events

• Projects – Larger scope, usu. Multi-agency

• New/Updated Technology

• Strategic Resource Alignments (SRA)

HumanDevelopment

People

TechnologyProcess

Service LevelImprovements

DENVER’S PEAK PERFORMANCE FRAMEWORK

VALUE STREAM ANALYSIS

• A value stream is the core service of an organization

• DMV Example:

13

Titles Registrations Renewals

“Legal Documents” “Plates, Placards, Temp Permits”

“Stickers”

INNOVATIONS IN DENVER

Small Scope1 Day

One to a few people involved

Larger Scope1-3 Days

Few to several participants

Larger Scope3-5 DaysSeveral

participantsRequires up-front

analysis

Very Large Scope

Long-termMany

participants

Innovation Form-based, data-driven, & customer-focused

Black Belts Facilitated Events

Peak AcademySEE IT

Maze Exercise

MAZE EXERCISE: RULES

Everyone must complete the maze correctly1If you miss-step (defect) you must exit the maze and start over

2

You may not talk while someone is in the maze3

If you don’t beat the time, you are given a new maze

4

MAZE EXERCISE: DEBRIEF• What breakthrough ideas allowed your team to improve the most?

• What did you eliminate from the process?

• How much did your process of discovering the maze and then utilizing that process matter?

• Could you apply your process to different mazes?

• Did you:o Work as a team to ID the steps in the process?o Seek perfection?o Question the rules of the exercise in order to innovate?

Peak Academy

Process Improvement 101 (workbook pg 9-10)

WHAT IS PROCESS IMPROVEMENT• Continuous improvement methodology• Non-proprietary (i.e. Free)• Driven by the people who do the work (not top-down)• An investment in fellow employees• About delivering value to the customer on demand

• A set of tools to…

o Identify Waste – See Ito Eliminate Waste – Solve It

Is Waste a dirty word?

WASTE IS DISRESPECTFUL…• Waste is disrespectful of HUMANITY because it wastes scarce

resources

• Waste is disrespectful of CITIZENS because it asks them to endure and pay for processes with no value

• Waste is disrespectful of INDIVIDUALS because it asks them to do work with no value

FIVE PRINCIPLES OF INNOVATION

1. Identify the value that your customers demand

2. Map the steps required to deliver value to your customers

3. Deliver value to customers on demand (called “Pull”)

4. Deliver value to customers without waste (called “Flow”)

5. Seek perfection: standardize and solve to improve

HISTORY OF PROCESS IMPROVEMENT

1790 1890 1910 1930 1950 1970 1990

Eli WhitneyInterchangeable

Parts

Frederick Taylor

Time Studies & Standardized Work

Frank & Lillian Gilbreth

Motion Studies & Process Charts

Henry FordAssembly Lines

Shewhart, Deming, & Juran

Statistical Process Control

Kiichiro Toyoda &

Taiichi OhnoToyota Production

System

Womack, Jones, & Roos

“The Machine That Changed the World”

Variety of products

Staff-driven improvements

5 principles

10 MINUTE BREAK

23

Peak AcademySAY IT

Innovation Form Thinking (workbook pg 11-17)

Full Copy of Innovation Form (workbook pg 75)

START WITH WHY

https://www.facebook.com/MichaelJrComedy/videos/10156093604010253/

Michael Jr. – Comedy is “What” I Do

Discussiono Thoughts?o What is the “Why” of your

organization?o What is your personal “Why”?o Why start with “Why”?

“When you know your “why,” your “what” has more impact, because you are walking in or

towards your purpose.”— Michael Jr.

https://www.facebook.com/MichaelJrComedy/videos/10156093604010253/

INNOVATION FORM THINKING – SAY ITThe Innovation Form is a tool to…

o Communicateo Build Consensus

Front Back

o Solve Problemso Measure Progress

Sust

ain

the

Inno

vatio

n

Inno

vatio

n

Plan

ning

THE INNOVATION FORM MODEL – SAY IT

Problem - Why Change is Needed

Current State

Future State

Gap Analysis / Waste Observed

Brainstorming / Experiments

Action Plan

Results

Lessons Learned

DENVER’S INNOVATION FORM

Problem - Why Change is Needed

Sample Questions:• Why are we doing/changing this?

• Is there a circumstance or emergency demanding change?

• What is the impact of this issue on the customer?

1

Problem - Why Change is Needed--Example

• We can lose our funding if we don’t fix this

• Our top customer complaint is how long it takes to get the widget

• We can help more people get business licenses, improving the local economy

1


A current state process map or other supporting picture/drawing can go in the final section of the Innovation

Form (Additional Innovation Notes)

Current State (CS) CostsQualitative(Feelings)

Money

Errors

Amount

Time

Yearly Cost (Annualized)

Current State (CS) CostsQualitative(Feelings)

My disorganized workspace makes me frustrated & stressed.

Money $25/hour (labor) + $2,500 (materials)

Errors 5% of widgets are made incorrectly

Amount I make 15 widgets per day

Time It takes 30 minutes to make 1 widget


$187.50/day $51,250 annually($48,750 soft + $2,500 hard annually)

Example


Use the same metrics from box Current State!

Make apples-to-apples comparisons

Future State (CS) CostsQualitative(Feelings)

Money

Errors

Amount

Time


Future State (CS) CostsQualitative(Feelings)

My workspaces will be orderly and calm. Less stress

Money $25/hour (labor) + $1,000 (materials)

Errors 0% of widgets are made incorrectly

Amount I will make 20 widgets per day

Time 20 minutes to make 1 widget


$165/day $43,900 annually ($42,900 soft + $1,000 hard annually)

Example

Current State (CS) Costs Future State (CS) CostsQualitative(Feelings)

My disorganized workspace makes me frustrated & stressed. My workspace will be orderly and calm. Less stress

Money $25/hour (labor) + $2,500 (materials) $25/hour (labor) + $1,000 (materials)

Errors 5% of widgets are made incorrectly 0% of widgets are made incorrectly

Amount I make 15 widgets per day I will make 20 widgets per day

Time It takes 30 minutes to make 1 widget 20 minutes to make 1 widget


$187.50/day $51,250 annually($48,750 soft + $2,500 hard annually)

$165/day $43,900 annually ($42,900 soft + $1,000 hard annually)

Yearly Savings (CS Cost – FS Cost) $51,250 - $43,900 = $7,350 total savings($5,850 soft savings + $1,500 hard savings)

Yearly Savings to Customer(Value of Customers Time)

Example


MEATY!

MONEYHourly Rates

& Material Costs

ERRORSDefects

AMOUNTSHow many widgets

do you make?

TIMEHow long does it

take to make your widget?

Any wait time?

Yearly CostThe total cost of

your process over the course of the

year.

TYPES OF SAVINGS

Hard Dollar Soft DollarValue to

CustomerService Level Improvement

HumanDevelopment

Improvements that reduce

budget expenses

Improvements that save

people’s time (opportunity

cost)

Soft and hard dollar savings

to the customer

Improvements that add value to

people or processes, with no hard or soft dollar savings

Improvements that increase knowledge,

skills, & abilities of an

individual

CALCULATING HARD DOLLAR SAVINGS:DERP—STANDARD MAIL TO EMAIL

Heather DarlingtonAssistant Director

Systems & FinanceDERP


Money $0.75/letter for postage, envelopes, & paper; $250/month in toner + copy machine maintenance

$0 spent on printing letters

Errors no errors no errors

Amount 8,345 letters mailed per month 8,345 letters emailed per month

Time 12 hours/month <1 hour/month


$6,509/month x 12 months= $78,108 per year

$0 hard costs to email letters

Yearly Savings (CS Cost – FS Cost) $78,108 – $0 = $78,108


CALCULATING SOFT DOLLAR SAVINGS:EXL—BINDER TO SPREADSHEET

Julie WainwrightLicensing Tech

Excise and Licenses


Money $30/hour $30/hour


Amount 229 days/year 229 days/year

Time 75 minutes/day searching for documents 10 minutes/day searching spreadsheet


$8,587/year soft dollar costs to find documents

$1,145/year soft dollar costs to find documents

Yearly Savings (CS Cost – FS Cost) $8,587 – $1,145 = $7,442 Savings Per Year


CALCULATING VALUE TO CUSTOMER:EXL—WAIT TIMES AT EXCISE AND LICENSE

Stacie LoucksDirector of Excise and

Licenses


Money $25/hour= avg. citizen's hourly wage $25/hour= avg. citizen's hourly wage


Amount 25,000 customers 35,000 customers

Time 35 minutes = avg. customer wait time 21 minute = avg. customer wait time


$364,583 soft dollar costs to customers ($14.58/customer)

$306,250 soft dollar costs to customers ($8.75/customer)

Yearly Savings (CS Cost – FS Cost) $364,583 – $306,250 = $58,333.33 Savings


5 WAYS TO DEMONSTRATE VALUE SERVICE LEVEL IMPROVEMENT

• Definition: Improvements that add value to people or processes, without providing a hard or soft dollar savings

• Example: Denvergov-Purchasing Website Portal Cleanup

METRIC CURRENT STATE FUTURE STATE 30 DAYS 60 DAYS 90 DAYS

M Redesign Hours/Costs-83 No Cost ($2,221.91) No additional redesign required

No additional redesign required

E Bounce Rate-41.77% 25% 26.35% 26.16% 21.98%

E Did the Customer get what they wanted? - 53% Yes

Improve to 88% Yes 66.84% Yes 64.87% Yes 66.46% Yes

A Number of Website Pages-44 22 7 (Reduced

84.09%)7 (Reduced

84.09%)7 (Reduced

84.09%)A Page Visited - 4.42 9.63 5.2 5.57 4.68

T Visit Duration less than 10 seconds - 7.588 (47.57%)

Reduce 75%(Target 31.32%) 33.16% 35.13% 33.54%

TVisit Duration between 3 & 10 minutes - 2,082 (3.48

minutes)Improve 25% 4:56 minutes 5:13 minutes 4:24 Minutes

PURCHASING WEBSITE BEFORE CLEANUP PURCHASING WEBSITE AFTER CLEANUP

Jeff Walter Administrator I

Purchasing Administration

HUMAN DEVELOPMENT:EXL—TRAIN MORE NOTARIES


Money $25/hour= avg. citizen's hourly wage $25/hour= avg. citizen's hourly wage

Errors Most customers left without completingtheir transaction—needed to find a notary

0 customers need to leave to find notary—can find one at EXL

Amount 3 staff were trained notaries 76 people in the City are trained notaries

Time varied—depends on where citizen went to find a notary outside Webb no time spent looking for outside notaries


Yearly Savings (CS Cost – FS Cost)


SAVING SIGHT

https://www.youtube.com/watch?v=zHc5U38ZcU8

The Toyota Effect

Discussiono Why is change needed?o What was it like before

they innovated?o How did things change?

“I never would have thought that implementing the Toyota

Production System would help save lives… but it has”

— Pradeep Prasad, MD

https://www.youtube.com/watch?v=zHc5U38ZcU8

LET’S USE THE FIRST THREE SECTIONS OF THE INNOVATION FORM TOGETHER!

o Innovation Form based off of Saving Sight Video as a class

GROUP BREAKOUT: USE THE FIRST THREE SECTIONS!

o Pick a work-related process that you’d like to problem solve Should be small in scope and within your control to influence

o Fill out the first 3 sections of the Innovation Form and include metrics, according to below:

Please Note: We will use these Innovation Forms throughout the week for multiple exercises

LUNCH BREAK

Peak AcademySEE IT

Gemba Walks

Innovation Form 4th Section

GEMBA WALK – SEE IT

• What is a Gemba Walk?o Gemba: Japanese word for “the real place”

o Go watch WHERE the work is being done and ask… Who are the customers? What do they value? What are the steps in the process? When is the process complete? Are any steps not adding value for the customer? Where can you remove Non-Value Add steps? Where can you create/enhance PULL? Where can you create/enhance FLOW?

SEE IT

• Go to where the work is done versus discussing the work in a conference room

• The most powerful way to identify waste

SEE IT• Not an opportunity to find fault with others, enforce policy, or offer

advice for how you might do it better

• A chance to demonstrate humility and respect for another person’s job

• A time to appreciate the courage it takes to showcase areas in need of improvement

“I look only to the good qualities of men. Not being faultless myself, I won’t

presume to probe into the faults of others.” --Gandhi

Please be kind to our hosts

Peak AcademySEE IT

Process Mapping (workbook pg 18-20)

8 Wastes / Value Added Analysis (workbook pg 21-25)

PROCESS MAP EXERCISE – SEE IT• Group Discussion

• Sample Process: Going to see your Doctoro Let’s talk about the process

• Wait Time vs. Service Timeo Document wasted time (in minutes) for this process

NOTE – Wasted time is any step that’s not providing the value you seek

o Document actual service time (in minutes)

• Questions to discuss together:o Is waiting wasteful? o Wasteful for who? o And…. can that time be monetized?

PROCESS MAPS – SEE IT

• General rules of thumb…o Left to right is notionally when steps take placeo Mark milestones and/or time to deliver value to your customero Document volumes of “widgets” that go through the processo Boxes – Steps in a process (label “who” and use verbs)o Diamonds – Decisions (Yes/No, If/Then…)o Use pink stickies to represent waste/issues; other colors can be used

for different work groups or individualso Processes can occur at the same time, with one process shown

above or below the other (known as ‘swim lanes’)

• Remember… You’re not going to break anything!o Strive to ensure it’s accurate and reflects the work that’s actually

done!

PROCESS MAPPING – SEE IT

Licensing Application Process– Current State – 02/18/15

Tech 1 calls customer to counter and receives their

application packet

Tech 1 makes copies of all forms

Tech 1 gives packet back to the customer

and explains what they still need to

provide

Did they provide all needed forms?

Yes

No

Tech 1 files copies into appropriate license file and places originals in

Tech 2’s inbox

Tech 1 leaves the case open and waits for the customer to

return

The 8 Wastes Related Examples & Questions

1. Defects • Is there re-work because of errors, poor quality control, or lack of standards?

2. Overproduction• Pushing work downstream before the next person is ready• Producing reports no one needs• Entering repetitive information

3. Waiting• Waiting for info, resources, or approvals• Dependency on others to complete tasks• System response or down time

4. Non-utilized/underutilized human talent & things

• Underuse of people’s talents or skills• Printers, computers, & scanners not being used

5. Transportation• Email distribution lists not up-to-date• Unorganized work space• Multiple handoffs

6. Inventory• Extra office supplies or other inventory than is needed• Files awaiting task completion• Filled in-boxes (paper and electronic)

7. Motion • Unnecessary data entry or motion between areas• Searching for work documents or other supplies• Hand carrying paperwork to other departments

8. Excessive Processing • Can some tasks be combined or eliminated?• Is too much time spent on unnecessary tasks?

THE 8 WASTES – SEE IT

STEPS IN A PROCESS MAP –SEE IT

• Value Added (VA)o Any step in the process that

improves the product for the customer.

• Business Necessary Non Value Added (BN/NVA)o Activities ensuring that the value-

added steps have been properly completed. These are steps that are required by regulatory agencies and/or policies.

• Non Value Added (NVA)o Activities that do not contribute to

the product or the process and should therefore be eliminated. Non-value added steps are waste.

PROCESS MAPPING – SEE IT• A good process map not only outlines the steps, but also notes wastes in the

process (in pink); value-added, business necessary, and non-value-added steps; and how long each step takes

Note the different colors used for different individuals/groups in the process

We use pink post-its to signify waste – notice how they stand out!

Two processes occurring simultaneously = swim lane

Metrics are key

Remember to title & date the process map

10 MINUTE BREAK

Peak AcademySEE IT

Gap Analysis Tools (workbook pg 26-37)

Innovation Form 4th Section

SPAGHETTI DIAGRAMS – SEE IT

• Diagram (or layout) of the work area• Show the motion of how a customer and team members work• Identifies unnecessary movement• Can help ID better layouts

SPAGHETTI DIAGRAM - EXAMPLE

Checking the undercarriage of an RTD bus

FISHBONE DIAGRAMS – SEE IT

• Tool to help identify causes and conditions for an issue you are trying to solve or improve

Level 1 Cause

Level 2 Cause

Measurements Materials Man Power/People

Mother Nature/Environment

Methods Machines

EXAMPLE FISHBONE

OED Contract Development process from award letter to Peoplesoft

CAO – Waiting for Director Approval

THE FIVE “WHYS” – SEE IT

• Question asking technique to explore cause-and-effect• Ask “Why?” 5 or more times to get to the root cause of an issue• Use this tool in a respectful manner

• EXAMPLE of how to use the 5-Whys…o Issue: My car won’t start.o Why (#1): The battery in my car is dead.o Why (#2): The alternator isn’t working.o Why (#3): The alternator belt is broken.o Why (#4): I didn’t replace the alternator belt when I should have.o Why (#5): I’m not servicing my car on time.

Note: To test logic, use the word “therefore” to read back through each question (i.e. I’m not servicing my car on time… therefore… I didn’t replace the alternator belt…)

5 WHYS- EXAMPLE

Visiting the Doctor’s Office

COMMUNICATION CIRCLES – SEE IT• Identify all the major actors (or who) is in the process• Define all the types of communication that goes on and to who• ID’s possible bottlenecks and need for centralized communication

Zoning Administration Team Communication

COMMUNICATION CIRCLE - EXAMPLE

Provision of Parts for Fleet

COMMUNICATION CIRCLE - EXAMPLE

Contract Approval

GAP ANALYSIS EXERCISE• Now let’s do them in smaller break-out groups

o Go back to your Innovation Form groupso Get a couple sheets of flip-chart papero Choose two of the four Gap Analysis tools to use on your Innovation

Form process (i.e. Fishbone Diagram, the 5 Why’s, Communication Circle, Spaghetti Diagram)

o Choose one person to present your team’s analysis to the rest of the class

10 MINUTE BREAK

66

Denver Peak Academy

Prep for Day 2 Gemba Walk (workbook pg 38-40)

PREP FOR DAY 2 OF TRAINING

• Plan for Tomorrowo Choose your teamo Make sure you know how to travel to your site’s locationo Make sure you know who is leading your group (Peak Contact)o Be punctual for the Gemba Walk (please arrive at 8:30am)o Bring your workbook with you

• Return from the Gemba Walk to Training Room 4.F.2 by 11:00am

• Prepare a readout of your findings (11:00-1:00)o Create a Process Map (Including 8 Wastes, Time, and VA/BN/NVA),o Create 1st Three Sections of the Innovation Form (Why, Current State,

Future State)o Use All 4 Gap Analysis Tools

Denver Peak Academy

“Ignite Overview” & Close Day 1 (workbook pg 74)

FINAL “IGNITE” PRESENTATION• Format of the final presentations

o Must be between 3-5 minutes longo Must cover 3 Innovationso Must use the 1st 3 sections of the Innovation Form for each

Innovation (Why, Current State, Future State)o You may NOT use the clicker (You are not the first to ask)

• If you choose to use Power Point, you must use Auto-Advance

• Samples of the format available at: www.igniteshow.com

SUGGESTED FLOW FOR IGNITE:• ~30 seconds:

o Info about you and 2 of your favorite inspirational quoteso Be creative and have fun w/ these slides!

• ~30 seconds:o Information about your agency. Could include: size of your agency, budget, key value

streams, performance metrics for your work-group, key leaders in your organization, etc.o Be creative here!

• ~3 minutes: Presenting 3 innovation opportunities, 1st 3 sections for eacho You will have an opportunity during training to ID possible innovation opportunitieso Title/Intro to the Innovation, about/title of the process it addresses, and work-group(s) that

might be involved in the innovationo Innovation Form Box #1 – Why Change is Neededo Innovation Form Box #2 – Current Stateo Innovation Form Box #3 – Future State

• ~30 seconds:o Tell us why you want to be a Black Belt, how you anticipate keeping in touch w/ one

another after training, and how do you anticipate leveraging the Peak Academy after training?

o Add other items here about yourself, about innovation, and/or about Peak Academyo Have fun & be creative!

YOU MAY BE CREATIVE!We love all types of Ignite Presentations, including:

• Power Point

• Prezi

• Flip Chart Paper

• Storybooks

INSTRUCTIONS FOR AUTO-ADVANCE:

• If using PowerPoint:o Must auto-advance (e.g. every 15 seconds for 15-20 slides)

o Instructions for Office 2007 Animations: Set Advance Slide feature to go “Automatically after

00:15”

Slideshow \ Set Up Slideshow: Set “Advance Slides” to “use timings, if present”

o Instructions for Office 2013 Transitions: Set Advance Slide feature to go “Automatically after

00:15”

Slideshow \ Set Up Slideshow: Set “Advance Slides” to “use timings, if present”

Please Note: The timing of individual slides does not matter, as long as you are done within 3-5 minutes

DAY 1 WRAP-UP

• Let’s do a +/Δ exercise:o What things did you like about today?o What things do you think would make the rest of the days in training

work better?

Denver Peak Academy - City and County of Denver … FOR BLACK BELT TRAINING • Peak Framework o...

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